F.I.R.E.

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F.I.R.E. is an acronym. It stands for Financial Independence Retire Early. There’s a growing movement of people who are practicing FIRE principles and retiring decades earlier than expected as a result. Smart, often middle-income earners are using a simple formula of high savings rates (50-70% of their incomes) + frugal living (minimalism) + low-cost stock index fund investing (Warren Buffett’s standard investment advice) in order to reach financial independence within short–usually around 10-year periods–of time. For obvious reasons, FIRE is sometimes referred to as “the ultimate life hack.” (this definition taken from Playing With Fire). Look onward for these hot resources below!

  • Read: Vicki Robin wrote Your Money or Your Life in 1992, on the topic of personal finance. In this interview with MarketWatch, she expands her definition of financial independence to financial interdependence. Read more here in How Much is Enough?
  • Listen: Early retirement has become a popular dream, especially in the FIRE community, but many are spending too much to make it a reality. In this podcast episode, David Stein explores why the tendency to spend too much is such a large part of our culture. Listen the whole way through to learn about practical ways you can filter your spending for greater savings and earlier retirement.
  • Watch: There is a documentary on this entire FIRE movement that will be released soon. Watch the trailer here and sign up to be notified when it’s available to view full-form!

Just a reminder: we have an entire page dedicated to FIRE, other financial topics, as well as all of our archived newsletters on our Resources page.

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!

Loss/Grief

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We learned in mid-January that our third pregnancy resulted in miscarriage. Since then, we have been navigating the grief of this loss, and thought it poignant to address the topic of loss in general in a newsletter format. This month will be a little heavier on the “read” side of things:

  • Read: In Get it Together: Organize Your Records So Your Family Won’t Have To, Melanie Cullen provides a compassionate guide to end-of-life planning. No one wants to think about their own death or what happens once they’re gone; the same goes for thinking about the death of a loved one. But without proper planning, this grief-filled inevitability can be fraught with frustration, added pain, and legal issues for those left behind. Aside from the emotional weight, thinking through every element of a death and getting everything organized can be overwhelming. Cullen’s clear-eyed guide will help to make the process as smooth as possible.
  • Read: This very brief article from Dave Ramsey places emphasis on creating and maintaining a Legacy Drawer. He recommends having 11 things in said drawer, including a cover letter, funeral instructions, insurance policies, and monthly budget. It is worth noting that current clients have much of what is recommended to have in a Legacy Drawer through your subscription to Right Capital, but not everything is contained there. Take some time to fill in whatever gaps are present.
  • Read: Should you take out a life insurance policy on your child(ren)? I give an emphatic “no!” Read 6 Reasons Why NOT To Buy Life Insurance for Your Children for a series of excellent reasons why purchasing a policy is a bad idea.
  • Read: My wife and I found a lot of solace in reading through Grieving Together: A Couple’s Journey Through Miscarriage by Franco and Laura Fanucci. Not only did this couple experience similar grief as we in the realm of infertility and miscarriage, but they also chronicle the deaths of their identical twin girls at 22 weeks. It is an inspiring book, discussing the impact of grief on the physical, spiritual, and emotional planes of both father and mother.
  • Watch: In this touching tribute to his wife who died from complications of ovarian cancer, Jason Rosenthal offers candid insights on the often excruciating process of moving through and with loss — as well as some quiet wisdom for anyone else experiencing life-changing grief.

One last note: an incredible consolation we received through genetic testing was finding out our little one is a girl; we named her Dorothy Rose Michelle.

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!

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!

Financial Resolution

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Happy New Year! As we welcome the new year, you may find yourself putting together some resolutions in health, career, or finances. As we turn another calendar page, look to these following resources as encouragement–and perhaps inspiration–to meet some new goals:

  • Read: Though this was written four years ago, the concept is as fresh today as it was then. Mr. Money Mustache (Peter Adeney) writes about resolutions to utilize this year to Get Your Brain Back–he discusses the little habits he changed in his life to cut out brain junk food and instead replaced it with things good for mental function. Who couldn’t use that for the new year?
  • Listen: In this podcast, Joshua Sheats shares his complete framework for increasing your income. The show is heavy on strategy–you’ll have to fill in the specific tactics appropriate for your situation. He covers: the only 3 ways to increase your income; which to focus on in the short-term and which to focus on for the long-term; and specific strategies for each of the 3 ways, all to increase your income in the next year. 
  • Watch: Still working on your debt payoff? I recommend the use of YNAB to all clients, friends, family, and sometimes random people on the street. This YNAB Workshop video walks through how you can utilize the software to strategically create a debt pay down plan. Let this be the last year you have any debt!

In other news: We are thrilled to announce that we will be welcoming a new member to the Bona Fide Family–our third child will be born in August!

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!

Insurance

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As we enter into the month of November and all things to be thankful for, I want to mention–in an expression of gratitude–the joys of a young family. Our little girls have warmed our hearts many a time in these last few months! Additionally, our family will be traveling to Indiana for a family wedding this month; it is a wonderful opportunity to see the lovely autumnal colors and seasonal crispness in the air!

Onward to this month’s highlights, which focus on all things insurance. Mind you, as a fee-only financial planner, I do not sell any insurance products nor do I earn a commission by recommending specific insurance products. I advise what policies are best for your financial situation. The following resources can help you determine what types of insurance would be applicable for you: 

  • Read: Whether you are just starting your career, in your peak earning years, or enjoying retirement, your insurance protection needs may change over time. Life cycle planning helps identify insurance needs that are common to particular stages of life. This can help individuals and families examine their insurance requirements in order to make future plans.
  • Listen: In “A Mental Model to Analyze Methods of Dealing With Risk“, Joshua Sheats discusses how many of us have had exposure to various forms of insurance throughout our lives and shares how to make the initial decision whether insurance is appropriate for you. Joshua highlights a framework for considering various risks that you face and the various ways in which to deal with those risks.
  • Watch: The most common or misunderstood insurance policies is that of disability. If you fall into the camp of “I do not need disability insurance; I am healthy and plan to work until I retire”, take a couple of minutes to watch this video which gives a great overview and introduction to the purpose of disability insurance. It will be two minutes well spent with regard to your financial and insured situation!

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

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!

Financial Frugality and Simple Living

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This month, I want to focus on financial frugality and simplicity in living. If you want to build and keep wealth, one of the tried and true ways is through the exercise of frugality. This value–and dare I say virtue–of being frugal ultimately means being a good steward of your resources. Can you still have an enjoyable life if you are frugal? Absolutely! Does frugality mean living on beans and rice and only shopping at thrift stores? Hardly! Read, listen, and watch these resources below for inspiration and encouragement:

  • Read: This brief (I’m talking 134 words here!) blog post highlights Five Questions Worth Asking Before Buying, which are great rules of thumb to consider when making any purchase. 
  • Listen: Mr. and Mrs. Frugalwoods (note: not their real names) made a dramatic decision to leave their white collar 9-5 jobs to homestead on 66 acres in rural Vermont. In this podcast interview with Jesse Mecham of YNAB, learn more about what led this couple to make this move in their early 30s.
  • Watch: This short exchange between David Pakman and Peter Adeney (aka Mr. Money Mustache, who has been highlighted in the newsletter before) begs to answer the question of “Does money buy happiness?” Not only is the answer no, David and Peter discuss ways in which you can adjust your lifestyle to find more meaning in what you have, rather than filling your life with superfluous stuff.

For those interested, we did just complete the second quarter of 2018. Here is the market commentary for how things went.

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!

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Planning one’s estate is an important component of your financial outlook; however, most avoid acting on this aspect to the detriment of their loved ones after their death. Check out these three resources so that you can get your estate documents created:

  • Read: It’s natural to put off estate planning. After all, no one wants to anticipate his or her own death. You also may think that only the wealthy require estate planning. Not so! Read this brief article on Understanding the Estate Planning Process to see why everyone should get these tasks accomplished.
  • Listen: This podcast with Joshua Sheats is a simple overview of the major estate planning documents: a will, a living will, a medical power of attorney, and a durable power of attorney. See what they mean and why they’re important. Note that this is not a technical deep-dive into these documents; it is a light and friendly overview.
  • Watch: In this interview with an estate planning attorney, you will be introduced to ten common estate planning mistakes to avoid based on her experience with clients.

Services Spotlight: Everplans is a secure, digital archive of everything your loved ones will need should something happen to you. They offer secure sharing of your information, expert guidance and resources, a custom fit for your situation, and security you can rely on. Everplans contain wills, trusts, and insurance policies; important accounts and passwords; health and medical information; advance directives and DNRs; final wishes and funeral preferences; and more. All new users receive a free 30-day trial; annual subscription is $75.

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!