Money with Friends
Money with Friends
Nov 30, 2020
Museums Begin Selling Art: What's Going On?
Play • 25 min

Generally museums don't enter the high priced and sometimes high stakes world of art auctions, but lately that hasn't been the case. Today we collaborate with the head of Masterworks.io, Scott Lynn, to find out exactly why museums are moving front-and-center, and also why artwork is moving toward an asset class that more people are using to diversify their portfolio.

The Stacking Benjamins Show
The Stacking Benjamins Show
StackingBenjamins.com / Westwood One Podcast Network
Murder and Fortune at the Plaza Hotel (with Julie Satow)
What do New York City's richest residents, murderous unions, and world-famous guests like Marilyn Monroe and the Beatles have in common? The Plaza Hotel! Julie Satow, award-winning journalist and author of The Plaza, joins us today to share the century of fascinating stories the hotel holds between its walls. From fortunes beyond measure to the Great Depression, from the Golden Age of Hollywood to Home Alone 2, the Plaza Hotel has never been shy about its place in history. Plus, believe it or not, we're about to enter tax season! Tax expert Katherine Pomerantz joins us during today's headlines to share all-new tax rules. Between relaxed guidelines on charitable giving, new deductions for your student loan payments, and more savings than you'd think for your home office, this is one tax talk that'll keep you listening. Cole and his wife are DINKS, and are contributing heavily to their IRAs and Roth accounts. They're planning on semi-retiring early and are looking for some advice on how they can best invest for the long-term, keep money relatively liquid, and have enough cash for living expenses. Thoughts? (And OH BOY, does Joe have some thoughts on this one. You don't want to miss this). Of course, after a short and sweet rant, Cole gets plenty of great advice for the future. Of course, we'll also save time for Doug's trivia, and much, much more. Thanks for listening!
1 hr 13 min
The Power Of Zero Show
The Power Of Zero Show
David McKnight
My Interview with Former US Comptroller General David Walker (Part 1)
David Walker is a certified public accountant and has spent many years in public accounting. He’s run three federal agencies, two in the executive branch and one in the legislative branch. As the Comptroller General of the United States he was the chief performance and accountability auditor of the US. More recently, David Walker has run two non-profit companies and been a distinguished visiting professor at the US Naval Academy and has been on a number of boards and advisors groups dealing with a number of issues facing the US. Historically, there have been four things that have defined a superpower and the question is whether the US will still be a world superpower by the year 2040. The four main things are global economic, diplomatic, and military power, and global cultural influence. Under these definitions, in the years after World War 2 the US was the only country to qualify as a superpower, but in modern times China is beginning to overtake the US in many of those areas. China has already passed the US in terms of GDP on a Purchasing Power Parity basis. They have more embassies around the world than the US does. China is currently the #2 military power in the world today but they are dedicated to becoming #1, and they are spending a lot of money on it. Culturally, Chinese investors own the largest movie chain in the United States as part of their effort to have a cultural impact. Economics, demographics, and foreign alliances are starting to work against us instead of for us. It’s important that we wake up, learn from history, and heed the lessons from our nation’s founders, and that we start to change course so that we can remain a superpower and make sure our future is better than our past. The reasons that we are currently having problems today is because we have strayed from the values on which the US was founded. We have also not heeded the prescient warnings of George Washington: to avoid foreign wars, not have excessive debt, to avoid regionalism and factionalism. We are actually experiencing the same challenges as the Roman Empire did before it fell. It’s important that we learn the lessons of history so that we can do what is necessary to stay great and ensure greater opportunities for future generations. We were on an unsustainable fiscal path before Covid-19, and now we are in much worse shape. Debt-to-GDP in 2020 increased by 20% which is the most important metric we need to be paying attention to. It’s clear that additional legislation will be passed now that Biden will be President and the democrats control the House and the Senate. We will defeat Covid-19 but once we do, we need to put a mechanism in place that will allow us to make the tough choices that will get the debt-to-GDP ratio to a reasonable and sustainable level over the next 10 to 20 years. Prior to Covid-19, the Social Security and Medicare trustees estimated that the trust funds were supposed to go to 0 by 2035 and 2026, respectfully, but because of the economic effects of Covid-19, the years are now 2031 and 2023, respectfully. This means that revenue will still be coming in but any bills would have to be paid out of those funds. In the case of hospital insurance, payments will have to be cut 10-15% immediately and across the board, with cuts of 20-25% to Social Security benefits. All the more reason we need to recognize reality and start making the tough choices now. What are the implications of having debt balloon out of control? We have passed the all-time record for Debt-to-GDP which was previously set after World War 2. Unlike then though where we rapidly decreased Debt-to-GDP dramatically after the war, we are now adding Debt-to-GDP and plan to add more. Currently, our interest expense is not increasing because we are not experiencing regular market conditions. The Federal Reserve is buying significant portions of US debt and artificially holding down interest rates, which isn’t sustainable. The other problems stem from the proponents of Modern Monetary Theory, a theory that runs contrary to history and long established economic history. Politicians are already fiscally irresponsible, the last thing you want to do is give them an excuse to be even more fiscally irresponsible. History has shown that when debt as a percentage of the economy reaches unsustainable levels, it has an adverse effect on economic growth and this has a knock on effect on personal opportunity. Over 70% of the national budget is already on autopilot, the remaining 30% covers all the governmental responsibilities envisioned by the founding fathers. Modern Monetary Theory is dangerous and fundamentally flawed. The Biden administration will probably not adopt the theory, but even if that’s true we still need to make tough choices on spending and revenue. The problem can not be solved solely by controlling spending and economic growth, revenue will have to go up because of the reality of compounding and math. A wealth tax will enter the conversation, but it’s not possible to solve the issue only by taxing the rich. There is no question that the tax base will have to be broadened and that most individuals will have to pay higher taxes. One of the most important things to understand is that tax rates will never be lower than they are now. Assuming you will pay lower tax rates in retirement is no longer a viable plan. Tax rates may still have to double in the future, the longer we wait to make changes the more likely that’s going to be the case.
24 min
The FI Show
The FI Show
Cody of Fly to FI and Justin aka Saving Sherpa
Geoarbitrage Case Studies | Diving into the Numbers with Cody & Justin
Today's episode rounds out our series on utilizing your location as a tool to financial independence and is led by just thew of us hosts. You may hear this idea called geo-arbitrage. We wanted to pick two locations where we would actually like to take a test run of financial independence in a foreign country. Cody picked Santiago, Chile and Justin picked Porto, Portugal. This episode covers an honest and holistic look at what it would cost for a couple to live in these countries while still really exploring and enjoying them. Take a listen and consider where you'd move if you had the freedom. Santiago, Chile Housing - $500 for a one BR apartment - Comes with parking, laundry, gym, BBQ and pool Utilities (Electricity, Heat, Cooling, Water, Garbage) $135 per month Cost of Flights to Other Locations - Flights around South America starting as low as $35. - $385 to get back to  Cody's home in New England Restaurant Samplings - Simple meal at inexpensive restaurant costs $5 Grocery Samplings - $30-35 per week. With mostly fish, vegetables, beans, eggs, “healthy” pasta, fruits, and smoothies Phone/Internet - $45 per month Public Transportation - Taxis will take you anywhere for less than $10 - Average of $150 per month (per expat survey) Healthcare - Ranked 33 out of 190 countries (similar to Australia and Denmark and many of the doctors speak english) - $100-120 for healthy adult expat insurance Visa Requirements (how long can I stay?) - 90 days (plus can pay $100 for another 90 day extension) Weather - Coldest months are June and July with average highs of 61 degrees Fahrenheit - Only downside is that it rains 4-5 days per week Total cost = $1650/month 500 housing 135 utilities 120 groceries 250 restaurants 45 phone/internet 100 transport 120 healthcare 400 entertainment $19,800 per year   Porto, Portugal Housing - $833 for a one BR apartment in heart of the city - Comes with parking, laundry, wifi, all utilities Utilities (Electricity, Heat, Cooling, Water, Garbage) Included Cost of Flights to Other Locations - Flights around Europe starting as low as $25. Paris: $25 Barcelona $49 Milan $53 - $670 to get back to  Justin's home in Austin Restaurant Samplings - Simple meal at inexpensive restaurant costs $6 - Anthony Bordain visited restaurant also serves $1.80 martinis Grocery Samplings - $40 per week. $2.60/lb chicken, $1.30/lb pork, $0.75 fresh bread, $0.90 apples, $2.50 bottle of wine as examples Phone/Internet - Wifi is free, 22gb data and unlimited call cell phone for $18 Public Transportation -Amazing train system for very cheap which I factor into "Travel" Healthcare - Emergency room visits are free - Research shows ~$40 per month for plans Visa Requirements (how long can I stay?) - 90 days with just the passport - Full citizenship appears attainable if you can prove you have healthcare as well as stable income source to fund your retirement Weather - Lowest highs are 57 degrees December/January - Highest highs are 77 degrees in July/August Total cost = $1770/month (for a couple) 833 housing 140 groceries 300 restaurants 18 phone/internet 80 healthcare 400 entertainment (includes transportation) $21,240 per year   Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Grab our FREE Budget Planner Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please subscribe and leave a rating/review! >> You can do that by clicking here << Learn More About Your Hosts Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)
34 min
Retirement Answer Man
Retirement Answer Man
Roger Whitney, CFP®, CIMA®, RMA, CPWA®, AIF®
Retirement Plan Live 2021 - Unexpected Retirement: Counting It Up - Trish’s Resources
Last week in Retirement Plan Live, Trish dreamed up big dreams for her retirement. In this episode, we are going to outline her resources to see if she has the ability to fund those dreams. Organizing your resources is an important step in retirement planning. Listen in to learn how important it is to plan what you want to use your resources for, and let’s see if Trish has what it takes to build her retirement dreams. What is a resource? A resource is a natural source of wealth or revenue. It is also a natural feature that enhances the quality of life. It’s what you do with your resources that matters. If you are listening to this show you are probably over 50 which means that you have spent decades building your resources. You’ve built up all 3 categories of resources -- human capital, social capital, and financial capital. Human capital includes your skillset and reputation. Social capital includes pensions and Social Security. Financial capital doesn’t only include your money, it also includes houses and boats in addition to your retirement accounts. What will you use your resources for? When you look at your resources in retirement you have to ask yourself to what end are all these resources for? What is this money for? In retirement, your resources are meant to be used to express your values through your goals that you live out in the season of retirement. Dying with too much money is poor stewardship. It means that your resources were never harvested to live out your values. Think about what you want to do with your abundance. Be intentional and create the life that you want. Explore the options you have now so that you don’t leave your resources like a neglected crop left to be absorbed back into the earth. What kind of capital does Trish have? In our last episode, Trish dreamed big -- European vacations, a second and maybe 3rd home, a convertible, the works. Now that we’ve got her thinking big, we have to see what she can afford. It’s time to take stock of her resources. Just like you and I, Trish has social capital, human capital, and financial capital. She will collect Social Security when the time comes and would like to use her human capital in some capacity until she is 59. Listen in to hear how I walk her through her balance sheet and organize her resources. Check out the Rock Retirement Club to help you organize your own resources Have you been enjoying Retirement Plan Live? Would you like to have guidance as you organize your resources? In the Rock Retirement Club, we have a Retirement Masterclass that does just that. We walk you through all of this planning with worksheets and trainings and there is even an entire module that helps you organize all of your capital. Check it out at RockRetirementClub.com. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? * [1:30] What is a resource? PRACTICAL PLANNING SEGMENT * [11:02] What kind of social capital does Trish have? * [15:32] Trish plans on using her human capital * [25:35] We organize Trish’s financial capital Q&A WITH NICHOLE * [36:10] How did we do on our words for 2020? * [37:32] Lisa asks how the 4% rule changes if you retire at 55 * [40:35] Should Jackie stop saving in her Roth IRA since her husband got laid off? * [44:53] Can Jim’s mother transfer an IRA to him? TODAY’S SMART SPRINT SEGMENT * [48:43] What is your word for 2021? Resources Mentioned In This Episode BOOK - So Good They Can’t Ignore You by Cal Newport Social Security Detailed Calculator Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement by Roger Whitney Work with Roger Roger’s Retirement Learning Center
53 min
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