Investing in your Health

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There are many ways in which a person can invest; a most practical but seemingly unconventional way would be to invest in your health. Especially in light of the recent compromising health issues facing the globe with covid-19, placing care and attention on you own personal health can pay dividends. After all, “if you haven’t got your health, you haven’t got anything” (to quote my wife’s favorite movie, The Princess Bride): if you’re not healthy enough to enjoy the hard work on which you’ve you spent your life, you’re missing out! Check out the following three resources on this topic:

  • Read: States differ right now in their own response to covid, and while we in North Dakota have a lot more general freedom than many in the rest of the country with eased restrictions, there is still a great personal responsibility to reduce the opportunity for covid to spread. This Time article has great tips for staying physically and mentally healthy in the midst of staying at home.
  • Listen: Roger Whitney of The Retirement Answer Man presents how the quality of your health can have major financial implications on your financial wellbeing in retirement in 1) healthcare costs; 2) preventing Alzheimer’s disease; and 3) the possibility of work after retirement. Additionally, he outlines six areas of wellness (including physical, intellectual, emotional, social, spiritual, and occupational) and discusses the financial benefits of investing in them. It is important to start investing in this now before you reach retirement so that you can enjoy it!
  • Watch: We’ve heard it 100 times throughout our lives – how to improve your overall health. This handy video reminds us of the top five steps in doing so: maintain a healthy BMI, don’t smoke, exercise, eat more fruits and veggies, and get some good sleep! Start with building one small habit in these areas if you haven’t already, and reap the rewards of better health!

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

Factor Investing

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Factor investing is an investment approach that involves targeting quantifiable firm characteristics or “factors” that can explain differences in stock returns. Over the last fifty years, academic research has identified hundreds of factors that impact stock returns. The following three resources provide varying degrees of depth into this topic. Check them out below:

  • Read: Factor Investing Fact Check: Are Value and Momentum Dead? by Wes Gray, PhD. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago. His interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management firm that delivers affordable active exposures for tax-sensitive investors. You can also listen to this conversation between Wes Gray and Meb Faber.
  • Listen: Dr. Daniel Crosby touches on the psychology of investment momentum in this 14-minute podcast. He is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets.
  • Watch: What is factor investing? This handy article and accompanying brief video from Investopedia give an overview of this perspective in investing.

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

Budgets and Bear Markets

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Read. Listen. Watch.Times of crisis can bring with them unpredictability. We are all likely experiencing a change in our financial holdings, whether due to layoffs, reduced hours or wages, or through increased expenses as we navigate this current situation. We’ve put together some resources that will hopefully provide some financial solace and guidance as we enter a new month. Check them out below:Read: This article from a YNAB user highlights how utilizing a budget can change even a 75% reduction in pay from a crisis to an inconvenience. Some of you may be experiencing a similar trend in your finances right now from an income perspective – but if you’ve worked hard on your budget this situation doesn’t have to up-end your plans. YNAB also put together this video on budgeting in uncertain times. Trust your budget!Listen: Dr. Jim Dahle of White Coat Investor has a great podcast episode detailing a Bear Market Action Plan. He highlights what TO do in a bear market, and definitively what NOT to do in a bear market. He offers very steady advice for all of us where emotions may be running high with what to do given the current situation nestled in a pandemic.Watch: While this is not a video, the visual image is strong – check out this graphic that condenses the history of bear and bull markets since 1926. An interesting summary: the average bear market lasted 1.3 years with an average cumulative loss of -36%. The average bull market lasted 6.6 years with an average cumulative total return of 339%. Keep your eyes on the long-term view, not the short-term.If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

When Should I Hire a Financial Advisor?

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Talking about money and finances can be vulnerable. In a 2017 study, nearly 2/3 of Americans stated they would rather talk about their weight than their finances. But finances and its planning does not have to be hard–working with a financial planner can provide the peace of mind that you doing the right things with the money you make and that you can achieve the goals you have set out for yourself. The following three resources focus on the circumstances in which you may find yourself needing financial advice and where best to find it:

  • Read: James Dahle, MD, serves as a practicing emergency room physician. Midway through residency he taught himself financial literacy to avoid being the target of unethical financial professionals who were ripping him off. The result is White Coat Investor. While he tailors his information to those in the medical field, everyone can benefit from this podcast transcript, when to hire a financial planner.
  • Listen: Daniel Crosby is a psychologist and behavioral finance expert. In this very brief podcast episode, he discusses the 10 questions for your financial advisor, including “Are you a fiduciary?” and “How are you going to help me make smart decisions?”
  • Watch: We had this short video made that highlights Bona Fide Finance as a fee-only, fiduciary, and independent financial planning firm, three of the qualities recommended above!

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

The Value of Education

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As we approach the back-to-school frenzy that is typical in the month of August, I am focusing on the value of education for this newsletter. As we work with young professionals with growing families, we always want to implement a great plan that will help them reach their financial goals. As part of that plan, we want to assess the value of investing in your children’s education. Please consider the following three resources, which provide an alternative look at the commonly-understood educational system employed in the United States. This helps to flesh out, I think, what Benjamin Franklin meant in his quote, “An investment in knowledge pays the best interest.”

  • Read: Peter Adeney of Mr. Money Mustache writes of his and his wife’s experience with their son’s education in a standard schooling environment and how they used their FIRE status to begin homeschooling him instead. Their conclusion? Homeschooling turned out to be packed with freedom, requiring high effort in exchange for high reward, delivering a truly excellent education.
  • Listen: Joshua Sheats of Radical Personal Finance has a great listen in this podcast: he urges you to carefully consider the return on investment (ROI) you are getting on the money and time you and your children are investing in their education. Is it paying off? Are you getting a good deal?
  • Watch: The educational philosophy of Maria Montessori (1870-1952, Italy) is world-renowned in its application to the formation of children, which fully respects their dignity and allows their curiosity to be fostered in carefully designed environments. You can learn more in this 18-minute video summarizing What is Montessori?. I should note here that we feel very fortunate to be able to send our four-year-old daughter to a local Montessori school!

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

Index Funds

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As a tribute to Jack Bogle, index fund inventor and founder of Vanguard, this month’s newsletter focus is how good investing oftentimes is boring investing:

  • Read: From The Art of Manliness, this Know-Nothing Investing: How to Get Started is a brief, walk-you-through post on the basics of index funds, including 3 benefits of investing in said index funds. The author also recommends this book The Bogleheads’ Guide to Investing, forwarded by Jack Bogle.
  • Listen: This interview of Scott Malpass by Capital Allocators Ted Seides is a fascinating look at the esteemed Vice President and Chief Investment Officer of Notre Dame University, where he oversees the school’s $12 billion endowment. Scott earned his B.A. and M.B.A. degrees at Notre Dame, and returned to South Bend at the ripe age of 26 following a brief stint on Wall Street. His track record for almost 30 years, as defined by both performance and impact, place him indisputably in rare company at the very top of the field.
  • Watch: In this 20-minute video explaining Vanguard Index Funds for Beginners, Ryan Scribner discusses what an index fund is, why you should consider investing in it as a beginner, as well as the differences between index funds, mutual funds, and ETFs.

Just a reminder: you can view this newsletter and all of our archived newsletters on our Resources page, in addition to the plethora of other specific categories, like FIRE, Home, Insurance, etc.

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

Charitable Giving

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During this holiday season, it is the most common time of year during which folks spend not only large amounts of money on presents to celebrate Christmas with loved ones, but also on charitable giving. You may find yourself giving spare change in the red kettle for Salvation Army, providing gifts for a family in need through a Giving Tree, or gifting a large year-end sum to an organized charity of choice for both the pleasure of providing assistance as well as the tax benefits.

The following three resources provide information on starting the process of designating charitable beneficiaries, as well as how to plan your donation, and what steps you can take to develop the character of being a giver: 

  • Read: A successful charitable giving plan involves three steps: determine when to give, what to give, and how to give. This article from Vanguard examines some common charitable giving strategies, discusses the advantages and disadvantages of each, and presents examples to show their effects. 
  • Listen: In this 20-minute clip I’m Richly Blessed by the Social Economy, Joshua Sheats shares some simple thoughts around the social giving economy and some encouragement for you to focus on being a “Go-Giver” towards others.
  • Watch: Patrick Renn is a 35-year veteran of financial planning industry, and is the author of Finding Your Money’s Greater Purpose: How to Make Your Legacy Count. He runs a wealth management firm in Atlanta, GA and specializes in helping his clients develop well-designed charitable giving programs. This brief interview gives an overview of his book and how to give with the most benefit to your family, your charity(ies) of choice, and minimizing the amount of money the IRS will take.

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

Money Perspective

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Hello, October! This is my favorite month of the year, and it’s not just because of my wedding anniversary and birthday (the 25th and 28th, if you’re curious!). I love the sights and smells of autumn and feel that the month of October perfectly encapsulates that! 

Onward to this month’s highlights, which focus on the way you look at your money: from reviewing your current financial state, to simple financial planning in six principles, to the value of the money you earn. Enjoy these resources:

  • Read: Today, many people find themselves inundated by a constant stream of financial news from television, radio, and the Internet. Yet, does all this “information age” data really help you manage your finances any better than in the past? The truth often is that the “old-fashioned” practices, such as periodic financial reviews, lead to greater success in the long run.
  • Listen: Simple Financial Planning – The Only 6 Principles You Need to Know is a conversation between Todd Tressider of FinancialMentor.com and Philip Taylor from PTMoney.com. The goal of this episode is to make your financial life that much easier to manage by helping you focus on just the important issues that really matter.
  • Watch: This couple has a series of brief, clever, weekly videos about personal finance for Millennials and Generation Z. In Insta-Everything, Philip and Julia discuss the value of money and time in leveraging your funds versus using them towards luxury. It may give you pause to rethink some of your expenditures! 

Spotlight: I just returned from the annual XYPN LIVE Conference in St. Louis, which was preceded by a seminar on student loans and followed by a seminar with Dimensional Fund Advisors. It was a great opportunity to connect with fellow professionals and deepen my own expertise in the areas of student loans and investments.

Market Commentary: I will be sending out an email later this month with the third quarter market commentary. Stay tuned!

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!

Resources for Comprehensive Financial Planning

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Bona Fide Finance has exciting news to share this month! We now have a resource page available to use as a reference as needed. It’s creatively called the Resources page (original, I know!); we have numerous links to all the major subjects of personal finance. Within each subcategory you will find a number of links to other blogs, articles, websites, books, interviews, etc., all with the aim to help you be as informed as possible regarding these topics. Take a gander when you have a moment; we hope you are able to put it to good use. Enjoy!

  • Investments: Mutual funds, asset allocation, fixed income instruments, annuities, socially responsible investing, trivia
  • Taxes: Payroll tools, online tax preparation, 1031 exchanges, state tax rates
  • Budgeting: Software, debt management, managing money, saving and spending, credit cards, financial spreadsheets
  • Student Loans
  • Behavioral Finance
  • Insurance: Life, disability, health, auto, long term care, home, umbrella liability, trip, pet
  • Estate Planning: Trusts, executor, legal documents, ethical will, digital lockbox
  • Home Ownership: Mortgages, insurance, determining your home’s basis, reverse mortgages, homestead exemption
  • Car Buying
  • Retirement: Early retirement, retirement accounts and contributions, retirement calculators, social security
  • Lifestyle Design
  • Financial Independence

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Alternative Investing

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This month, I’m highlighting alternative investing. The following resources focus on three different ways in which you can explore this concept and its possible utilization in your own investment portfolio:

  • Read: Real estate has long been used as an investment tool. If you’re considering it for your own portfolio (whether direct ownership, partnerships, or REITs), check out this overview article.
  • Listen: Joshua Sheats interviews Kirk Chisholm in this podcast, which goes into great depth of alternative investing. In Kirk’s own words, “We take a step beyond the current industry definition and use it to describe assets or investments such as physical real estate, tax liens, physical gold and silver, structured settlements, horses, livestock, farmland, timberland, and more.”
  • Watch: Simon Cunningham, founder of Lending Memo, provides a brief overview of peer-to-peer lending. In short, it is the large scale lending of money between people online. In this video, he outlines this concept in detail, highlighting how it differs for borrowers and investors.

Services spotlight: We just started using Capitect, a tracking tool that provides real-time rates of return on the performance of your investment portfolio (for all accounts linked with this platform). If you’re a current client, you can expect to learn more at your next scheduled meeting. This is intended as an internal product for current clients, but if you would like to use it directly, please send us an email and we can help you set it up for your personal use.

For those interested, here is the market commentary for the first quarter of 2018.

If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website!

You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!