Thoughts On Money [TOM]

This week's blogpost - https://bahnsen.co/3ZWJHYy I am excited and honored to introduce a guest writer today on Thoughts On Money. My good friend and colleague, Blain Carver, has prepared a wonderful entry for us today. We will talk road trips, finances, emotions, and the intersection of all of the above. Please join us for the written and the accompanying podcast – you won’t want to miss it. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3RGuE2U Before I gave financial advice, I pedaled bikes. Today, we will discuss the intersection of BMX racing and investing. Specifically, we will unpack how to measure results and some of the common pitfalls result-driven investors and athletes face. I am sure you will enjoy a stroll down my memory lane and the opportunity to grow as investors. So, without further ado, I present Results Driven. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3ZyGe1P Have you ever been scammed? Since the birth of the internet, we the American people, have become quite familiar with scams. We now know to delete any proposal for a financial exchange coming from a Nigerian prince. We dodge these scamming attempts daily. Yet, these scams are still in high production. Why? Unfortunately, because they still work; people are still being duped daily. These scams try to lure you in with a request for a small commitment in exchange for a big reward. Maybe a better way to say this, people are tempted by the opportunity to get something for nothing. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/467qQf8 I am guessing that most of us reading this article have moved at least once or twice in our lifetime. For me, I’ve moved four times over the last ten years. I’ve become familiar with this feeling I get, that tinge of anxiety as I’m preparing for or staring down the barrel of a move. The organizing, the packing, the lifting, the loading, the unloading, the unpacking, etc. It’s a big undertaking. I will say this, though, I’ve definitely matured as a mover. Good labeling and a solid process go a long way. This whole operation reminds me a lot of financial planning. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/44yuUnl Do you ever notice those habitual lane-changers in traffic? There is a lot of activity going on, but they make little progress. There doesn’t seem to be a correlation between how many times you switch lanes and a reduction in your drive time. Often you will observe “lane change regret.” The driver sees opportunity, so they get over, only to then realize that their former lane is now taking off. Investors today are trying to change lanes in traffic, and they will inevitably experience lane change regret. How do I know this? Because investors on average – myself included – are horrible at trying to time markets and what we are talking about is exactly that, market timing. The peaks and troughs of markets are driven by extreme sentiment; peaking in irrational exuberance or greed and reaching a trough at levels of excessive fear. Lane-changers aren’t enticed back into markets at the troughs, yet it is a fear that lures them back in, a fear of missing out (FOMO). This FOMO, or point of capitulation, tends to come after a rise or rally in markets, which is often an expensive re-entry point. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3OHt2Ti Legacy. Leaving a legacy. Your legacy. What a loaded finance word, right? We know it has depth and meaning, but we don’t always really know what it looks like practically. Join me as I walk through a real life story of legacy and share some practical steps for how you can leave a legacy. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3QDVM25 Suppose I wrote two different articles – one on how to improve investment returns and another on how to reduce your tax bill. Which article would you be most likely to read? Regardless of your answer, I think you will enjoy today’s discussion on Thoughts On Money. We will dive into ideas for improving investment returns by looking for opportunities to reduce your tax bill. Please join me as I bring some life to the topic of taxes and provide you with some basic real-life applications. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/47jPdrg Thank you for your faithful readership of Thoughts On Money. You and I, we are in this together. As iron sharpens iron, So one person sharpens another. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/44LNvxf We understand this idea of flourishing as individuals, but even furthermore in a corporate sense. Flourishing as a church community or flourishing alongside your colleagues in business, or flourishing as a family. This is an even deeper aspiration that we would prosper in and with our community. Yet, flourishing isn’t how all of us would describe our life and current status. So, what’s missing? If flourishing is the goal, what is the path to get there? I can’t claim to be able to pave that whole path in this article, but I do want to submit one key thought/idea for you to meditate on. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3Q8lStI I was filling in for David Bahnsen this week on DC Today, and I was reminded how much I enjoy the Ask David section. This is where readers send in questions, and David addresses one question a day on this published public platform. I remember an old teacher always used to encourage our class, “Ask, please ask all the questions you have. If you have a question on your mind, surely that same question is on the mind of a few others.” It was our civic duty to ask questions; it was for the greater good of the class. Our teacher actually used to give us [the class] an ultimatum – either ask questions for the entire period of the class, or he’d tee up a boring lecture. That’s right, an entire class, an entire semester, of just our questions. Sounds odd, right? But this professor knew the subject well, and our inquiries were based on the assigned reading, so it was our actual questions that made up the tapestry of his lecture. Yet, because we were the inquirers, we were much more engaged. Participation was a large portion of your grade, so it was also a motivator to complete the daily reading and be prepared for the discussion. It was quite a genius approach to teaching. In that vein, I should probably be better about sharing the questions that I get from clients, friends, and readers. Why? Because surely these questions are on the minds of many others. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3DdMjXk Today’s discussion was a lecture I was giving myself. Is there a place of vulnerability in my financial plan that needs to be addressed? Maybe your plan has some vulnerabilities and gaps, too. I encourage you to get a second pair of eyes on your plan and make sure everything is buttoned up and tidy. Why? Because everything can change in a moment. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3JLysv2 The Choice is Yours I recently watched the movie Race, the story of Olympian Jesse Owens. One particular scene stood out to me. Coach Larry Snyder is advising Owens on life/relationship decisions, and he warns, “The choices you’re making right now won’t even feel like choices until it’s too late.” I couldn’t shake that statement. The truth of it haunted me a bit. Whether we realize it or not, the micro-decisions we make today will have an impact on our future. Yet, the size of that impact can only be measured and realized in hindsight. Helping or Hindering These thoughts came on the heels of a discussion that Sean Latimer and I had on last week’s podcast about 529 plans. We wrestled with the reality that each of us – in one sense or another – struggled to pay our way through college and we both wanted to spare our kids from that same struggle. We wondered whether these 529 plans would be hindering or helping. Was it, in fact, these very struggles that built our character and work ethic? Where would we be today if we were eased from those struggles? As a parent, these are weighty decisions. Whether your kids are toddlers or young adults, or even nearing retirement themselves, you have to be conscious about how you teach them about money and how you help them with money. Why? Because “The choices you’re making right now won’t even feel like choices until it’s too late.” Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3qJPIu7 Don’t get me started on medical billing; we’ve got history. In all seriousness, the whole healthcare system has been a major frustration of mine for years. As a single guy, I never had to interact much with my health coverage – I rarely went to the doctor. With getting married and starting a family, much of this changed. Today I will discuss how I morphed these frustrations into a financial planning solution. My hope is that by sharing my approach and process, it will help to sharpen your planning mind as well. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3NlwmE8 Making pizza is all about timing. Do you know what else is all about timing? Roth conversions. Yup, just as the title alluded to, today we are discussing pizza dough and Roth conversions. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/45WjDzp In sports, a fair-weather fan is a term for fans who only show up when their teams perform well. We also have a term for fans that rotate their allegiance based on which team is winning and, in vogue, a bandwagon fan While you have to respect those whose fanhood runs deeper than the current performance of their beloved team, born out of loyalty to one's family heritage or hometown, however, your investment strategy must have deeper intellectual roots, and your commitment to that strategy can’t be “fair weather,” and it can’t be “bandwagon.” Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3BX4Fve The financial planning industry is obsessed with talking about (1) you not outliving your nest egg and (2) the proper planning on bequeathing your wealth. Yet, there is very little discussion about how one would enjoy their legacy during their lifetime. Today, we will discuss the reality of future financial leftovers and the importance of planning for those leftovers now. We will talk about the process of breaking your financial plan, setting dream goals, and much more. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3MILA6a From my vantage point, a lot of investors are sitting on their hands right now. There seems to be a hesitation to buy real estate, stocks, and any other risk assets. Everyone is in a sit-and-wait posture. I believe much of this is driven by fear, a fear that can be paralyzing for many. Yet, your financial goals do not sit-and-wait. They are dependent on prudent financial decisions and actions. Please join me as we unpack this further in today’s Thoughts On Money. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3Vy7trq Please join me today for a few fun stories. You will learn about the number one rule in our house growing up and how I absolutely butchered the catering order for my son's 1st birthday. As I typically do, these stories will bring us back to financial planning. I will explain why accurately estimating your expenses may be the most important component of your financial plan. Additionally, I will walk you through some practical steps for how you can keep a pulse on your actual spending. All of this and much more in today’s Thoughts On Money… Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - https://bahnsen.co/3oDKHlx I’m not sure if this is a cultural phenomenon or just how we are wired as humans, but I see so many people agonize and dwell on the minors while ignoring the majors. You can’t stop thinking about that nick on your new car, your teenage daughter can’t stop looking at that pimple in the mirror, your husband can’t stop complaining about that slightly crooked outlet in your home. We tend to obsess over the small (the minor) while failing to focus or even recognize the whole (the major). We even have an idiom in the English language to express this: missing the forest for the trees. And we bring this very paradigm to our finances. I see it all the time. Investors get tunnel vision on an investment or a planning item that has very little impact on their whole portfolio or plan. The energy, the emotions, and the time that gets committed to these obsessions are never commensurate with the attribution or impact. Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com

This week's blogpost - This may seem silly, but I do believe it’s important for you to be aware of who you are, how you operate, and what type of financial environment suits you best. Sure, we could poke fun at smaller plate sizes or coloring books during lesson time, but we also have to realize that our success will depend on these types of strategies and approaches that help protect us from our most common financial obstacles. For me, the art of earmarking is such a key component of my own financial plan. I’d actually argue that it’s often these types of concepts or habits that yield the most meaningful results. Sure, you are most interested in the complex tax strategies or the intellectually stimulating investment approaches, but in the end, it’s the simple blocking and tackling that differentiate financial success from the struggle. Give it a try. Make a list of what’s important to you - retirement, medical, charity, education, financial freedom, etc. Prioritize this list and see if you can begin to earmark and allocate your portfolio and income to match your priorities. Let me know how it goes… Links mentioned in this episode: http://thoughtsonmoney.comhttp://thebahnsengroup.com