Not Your Average Financial Podcast

Episode 31: How Do Bank Loans Work?

April 6, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

What is debt?
What are some of the common judgement calls about debt?
What are some religious thoughts around debt?
What did Solomon say about power?
What is the year of Jubilee?
Does debt lead to intergenerational slavery?
Are you more likely to be in debt if your parents are / were in debt?
Is debt evil?
Can debt cause trouble?
How can you severely limit your options?
Should we avoid all debt? Is it a black and white scenario?
What kind of debts do typical Americans carry?
How many people know that the first credit card wasn’t issued until 1951? How did people survive before 1951?
What is the average credit card balance and percentage?
Why is credit card debt so nasty?
By how much has Student Loan debt surpassed Credit Card debt?
How many people are supposed to be paying 100% in their annual salary to student loan debt?
What are some of the gotchas with student loan debt?
What are the implications for parents who have cosigned loans on their child’s debt?
Can you bankrupt student loans?
What about mortgage debt?
What is a good rule of thumb for housing costs?
Why can’t people save?
Why can’t people afford things?
What’s in the fine print?
Who can provide a second set of eyes for you, when you encounter fine print?
What about car loans?
Is vehicle debt going up or down?
How long does it take to pay these loans off?
What is the average savings rate?
What about vacations?
Why don’t most financial planners have a plan for life’s cashflow?
Why do you have to pay a bunch of penalties and taxes to access money?
Why do most financial advisors suggest that you eat rice and beans?
Why do financial advisors say to “not touch your money”?
Why are we forced into this crazy cycle where everyone is benefitting from your money but you?
How much cash will flow through your accounts in your life?
How will you work with your cash flow?
Can you avoid buying stuff?
Can you find a way to have uninterrupted compound growth and still be able to afford the stuff of life?
What is the bank doing with your money?
How do banks do more than one thing at a time with a dollar?
What is fractional reserve banking?
How do banks find the money for loans?
How do the banks get so wealthy?
How do you learn from the banks to harness your personal cash flow?

Episode 30: Will You Pay Tax on the Seed or the Harvest?

March 30, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

What is the “Rich People’s Roth?”
Are there required minimum distributions (RMDs) on ROTH IRAs?
What other elements make up a ROTH IRA?
What accounts have contribution limits?
What accounts can you contribute to tax free and take distributions tax free?
What’s smaller? The seed or the harvest?
Would you like to defer your taxes?
Would you like to pay your taxes now?
Are taxes going up?
How can you get access to a death benefit while you’re still alive?
How do Long Term Care policies work?
Do you need Long Term Care?
What is the average cost of a nursing home today?
Do you know how much your taxes are going to be this year?
Will you get a refund? What happens to the refund?
Can you use a Bank On Yourself policy for taxes?
What about Self Employed individuals?
Would you rather prefer a dollar today or a dollar tomorrow?
Do you have to prove to the IRS that that’s your money?
How will your bigger paycheck affect your taxes?
Have you gone to the IRS website to see what your estimated taxes will be?
Are you giving the IRS a no interest loan?
Are you proud when you receive a tax refund?

Episode 29: Tax Advantages with Bank on Yourself

March 23, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

Is there someone at the IRS who you’re particularly fond of?
Do you have more than one beneficiary on your IRA or 401(k)?
What did we mention over and over in our last episodes?
Are taxes likely to go UP or DOWN in 2025?
What changes can we anticipate?
What are the tax advantages from Bank on Yourself?
- How are distributions taxed from Bank on Yourself policies?
Would you like Tax Free Retirement Distributions and Withdrawals?
Would you like to take the anxiety and guesswork out of retirement?
Do I have to hold on to the S&P with white knuckles?
What are the two key unknowns in the government-sponsored qualified plans?
How do Bank on Yourself policies grow?
How are Bank on Yourself policies like ROTH plans?
How do dividends affect policy performance?
How do you access cash value tax free?
How do you pay your taxes now on life insurance premiums?
Will you get a 1099 for the growth in your life insurance policy?
How many withdrawals can you take from a policy without any tax consequences?
Once you’ve exceeded the cost basis, how can you get money from the policy tax free?
What about the possibility of a policy lapse?
What about the horror stories?
How do you know you’re working with the right advisor?
What are some ways we can avoid lapse?
What happens to couples who earn over $44K annually?
What’s the problem with required minimum distributions (RMDs)?
How does a Bank on Yourself plan affect your capacity to apply for student aid?
How do business owners use Bank on Yourself policies for paying taxes and financing big purchases?
What is the tax treatment for a death benefit?
What are the tax implications with an inherited IRA?
How are life insurance death benefits treated in probate court?
Can creditors and predators come after money in probate court?
Can creditors and predators come after death benefits?
Can you save as much as a death benefit?
What inheritance options are drama free?

Episode 28: Hug Your CPA and your IRS Agent

March 16, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

What is going on with the new tax law (the Tax Cuts and Jobs Act)?
What’s new with personal taxes?
What does the tax code encourage?
Where are the tax breaks?
How is the effective tax rate different from the marginal tax rate?
How does this affect the Mortgage Interest Deduction?
How much will this raise the federal deficit?
What about the Affordable Care Act / Obamacare tax?
How does this affect the socioeconomic structure in the U.S.?
What is the hope of the tax law?
What about the Estate Tax?
What about the Child Tax Credit?
What’s the difference between the credit and a deduction?
How do we stack up compared to the rest of the world in corporate tax rates?
What’s new with corporate taxes?
What are the updates with pass-through income?
What happens to the net interest deduction?
What about the carried interest loophole?
What are some of the areas where it’s all stayed the same?
Tax handling of Qualified Plans will continue unchanged (529s may be accessible for K-12 tuition needs, this varies by state.)
Will more people choose the standard deduction over itemized deductions?
Will people continue charitable giving?
Did the new law simplify the code?
Does the new tax law truly provide cuts?
Are you seeing an increase in take-home pay with the tax shift?
Why is the word “Jobs” in the title?
Are we in the lowest tax brackets of our lifetimes right now?
When do most of these changes expire?
What should we be doing with our money in light of these temporary changes?
Is this the best time to be deferring taxes?
How is every 401(k) being taxed?
What is something we can pay the tax on TODAY, so we don’t have to pay tax on it in the future?
How many trillion dollars is currently sitting in qualified accounts?
What is the amount of the government’s unfunded liabilities?

Note: We are not tax experts. Please consult your CPA, your attorney and your tax specialists as you navigate the new tax law.

Single filers, 2018-2025
Taxable income over	Up to	Marginal rate
$0	$9,525	10%
$9,525	$38,700	12%
$38,700	$82,500	22%
$82,500	$157,500	24%
$157,500	$200,000	32%
$200,000	$500,000	35%
$500,000	And up	37%
Heads of household, 2018-2025
Taxable income over	Up to	Marginal rate
$0	$13,600	10%
$13,600	$51,800	12%
$51,800	$82,500	22%
$82,500	$157,500	24%
$157,500	$200,000	32%
$200,000	$500,000	35%
$500,000	And up	37%
Married couples filing jointly, 2018-2025
Taxable income over	Up to	Marginal rate
$0	$19,050	10%
$19,050	$77,400	12%
$77,400	$165,000	22%
$165,000	$315,000	24%
$315,000	$400,000	32%
$400,000	$600,000	35%
$600,000	And up	37%
Married couples filing separately, 2018-2025
Taxable income over	Up to	Marginal rate
$0	$9,525	10%
$9,525	$38,700	12%
$38,700	$82,500	22%
$82,500	$157,500	24%
$157,500	$200,000	32%
$200,000	$300,000	35%
$300,000	And up	37%
Source: Joint Committee on Taxation.

Episode 27: A College Degree from Bank on Yourself

March 9, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

What does the Wall Street Journal say about qualifying for student aid?
What is a 529 plan?
How does it affect aid on the Federal level? When colleges set up their own aid?
How do financial aid officers look at 529 funds? How do they treat it?
Do you know which college your kids / grandkids are applying for?
What are some ideas for managing the 529 plan as you approach paying for college?
How are the 529 plans like other qualified plans, for example the 401(k)?
What is one of the most predictable and reliable ways for saving for big purchases?
How do you maintain control of the money, so you can spend it without strings attached?
How do you eliminate the opportunity cost with this large amount of money?
Who does the money ultimately benefit with a Bank On Yourself college solution?
When do loans kick in for kids?
Who’s in charge of the loan payback schedule?
What about a parent matching program?
Who wants to leave an inheritance to Sallie Mae?
What about kids that don’t pay the parents back on these loans? What recourse do the parents have?
How do Bank On Yourself policies get reported on the FAFSA forms?
Where does your money live?
What if your money lives in a 529 plan? A savings account? A checking account?
What are the restrictions on a 529 plan?
What if you or your kid needs a laptop? To get married? To buy a car?
How does the money work double duty?
How can you pay for college tuition and long term care?
How can you pay for college tuition and retirement?
How can you pay for college tuition without going broke?
How can you pay for college tuition without being a burden on your kids, financially, as you age?
How can you get federal student loans that are subsidized?
How do subsidized loans work well with a Bank on Yourself policy?
Would you like 0% interest for four years?
How can you wipe out student loan debt with a Bank on Yourself policy?
What happens to your plan at the end? Do you have to work on it or does it self complete?

Episode 26: Paying for College? What are my options?

March 2, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

If college aid is so complicated, why are we expected to do this on our own?
Can an accountant help with college planning?
How do I find a college funding specialist?
How is paying for college like flying on an airplane?
What’s Holly’s story with flying?
What key questions should you ask a potential college specialist?
- What exactly are you going to do for me?
- Can you make this problem go away?
- Are you going to help me with my income and asset allocation?
- Will you help me pick a school?
- Will you help me fill out forms correctly?
- Will you help me negotiate?
- Will you make sure that I get a fair offer?
- Can you eliminate the administrative errors?
- Will you integrate sound financial strategies?
- Do you offer any guarantees?
- Do you offer a refund if we’re not happy?
- Will you coach my student?
How do the test results matter?
How old do my kids need to be to start considering college planning?
What years in high school do the financial aid offices look at potential students?
How can we get the lowest EFC (expected family contribution) possible?
How can we know the chances of a student getting into a certain school?
Does your student need an objective third party to talk to (other than parents) about college planning?
How can we get more merit-based aid?
What’s the difference between a full-ride and having to pay for college?
Do you have a negotiator in your corner?
Are you interested in knowing what your financial aid package is before you even apply to a certain school?
What questions do you have?
Would you like to meet with Holly to talk about your college planning needs?
- Book a college planning consultation on Holly’s calendar.
How much does the average family receive in financial aid?
What is the quote from T. Boone Pickens? “A fool with a plan is better than a genius with none.”
Is there life after college?
How do you get the best college aid plan possible?

Episode 25: Where Will I Get the Money for College?

February 23, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

What are the four main sources of college aid?
- What does the Federal Government offer?
- What does a work study program offer?
- What about Stafford and Perkins loans?
  - Who borrows money on these loans?
  - Which loans require cosigning?
    - What happens if your kid quits school or the kid doesn’t find an income stream soon after graduation?
- What about Parent Plus loans?
- Which loans balloon or stack up?
- On which loans are the interest deductible?
- Is there a Parent Plus loan in your aid package?
- What does the State Government offer?
- What about the colleges themselves?
  - How do you get most aid from the college you want to attend?
How does one start to plan for sending kids to college?
What percentage of FAFSA forms are submitted incorrectly?
What happens on October 1st of your high schooler’s senior year?
What is the CSS profile form?
What paperwork does each higher education institution require?
What forms do you need to consider if you are divorced?
What happens to the Family Contribution when there are more than 2 parents involved?
How does this affect how much aid you’re eligible for?
What does each school require?
How do you navigate all of this on your own?
How might we help you with our tools?
Will you pay the sticker price for the school?
Are private schools always more expensive than public schools?
Do you have to take the award offer as it’s stated?
How do you negotiate your award offer?
Is your award offer fair?
Who do we partner with to review award offers?
What laws and amendment have recently been passed regarding education costs?
- College Cost Reduction Act (2007)
- American Recovery and Reinvestment Act (2009)
- American Opportunity Tax Credit Extension (2011)
- How do these impact how you plan, save and pay for college?
When should you start to plan?
Who needs to be on your college planning team?
What questions should you ask a potential college planning advisor?
How can you put you and your child in the best position possible?

Episode 24: How to Pay for College with as Little Out of Pocket as Possible

February 16, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

If you have a sophomore in high school, how much will college cost for a 4 year public university?
How does this affect your unique situation?
What are the biggest concerns of college planning?
What are the deadlines?
What mistakes are common?
How much time does the college planning process take?
How are you going to pay for college?
How might you hurt your kid’s chances for going to a certain school?
What about prepaid college tuition?
What are five ways people can pay for college?
- Savings
- Loans
- Scholarships
- Choose a more affordable school
- Avoid college entirely
How much will your existing savings ding you?
Are you going to borrow money?
Would you like a tax deduction?
Would you like a fixed payment or an increasing payment?
Would you rather have an interest free loan or a high interest loan?
How do subsidized loans work?
Of the $275 billion in aid, what percentage came out in the form of scholarships?
What is fastweb.com?
What are some myths about college planning?
Do you make too much money to pay for college?
Where does your money live?
How does my student’s academic performance affect scholarships?
How do schools factor home equity into the equation?
Why is college planning so time consuming?
Where does the anxiety come from, as we approach the college years?
What about the high school guidance counselor?
What’s the ratio of student to guidance counselor?
What about the college financial aid office counselor?
Did you know the IRS will help you prepare your taxes?
What’s the formula for determining the cost of college?
How do you determine the family need?
Who needs proper college planning?
How does college funding affect retirement?
How do you help your kids get through college without going broke in the process?

Episode 23: 3 Strategies for Becoming A Retirement Planning Expert

February 9, 2018 by Not Your Average Financial Podcast

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Android | RSS

In this episode, we ask:

How is “retirement” or receiving passive income like climbing a mountain?
How many people make it up Everest?
What is it like coming down a mountain?
How do we take this finite amount of money and make it last for this unknown number of years?
What are the secrets of the Sherpas?
What is investment planning designed to do?
Why aren’t AUM called Assets Turning into Income?
What guarantees are there?
What if you have a big IRA with a ton of mutual funds?
How long have annuities been around?
Which generation in your family was best prepared for retirement?
Why are we in a retirement crisis now?
What intergenerational cash plays provide security for years to come?
What do Congressmen and women have their portfolios wrapped up in?
What is our one-two punch strategy for retirement income?
How do we work with the problem of longevity?
How would it feel if you never ran out of income?
How do you know if an annuity is terrible or terrific?
How do you know you’re working with the right annuity?
How do we work with the need for liquidity?
How would it feel if you could access your money anytime without penalty?
How do Bank On Yourself® policies factor into retirement?
How do we set up pay raises in retirement?
How do we work with lump sums and turn that into retirement income?
What is laddering?
How do we use the “taming the bear” strategy during passive income stages?
How do we take income when the market is down?
How do you work with an IRA in retirement?
How do you work with life insurance loans?
Has Wall Street left us stranded at the top of the mountain?
Do you want to guess at your retirement income?
Do you want the entire pathway down the mountain to be question mark or a certainty?
How does retirement income affect quality of life?