FLBC 018: Tackling your W-4

Podcast Details:

Podcast Title:  Tackling your W-4
Podcast Series: Financial Literacy Boot Camp

Full Illustrations available on YouTube Version here.

Questions/Issues We’ll Address on this Episode:

– IRS Formula for calculating your tax liability
– Reconciliation of taxable income can’t be done with front page of W-4 (YOU NEED TO USE THE WORKSHEET!)
-Increasing your taxable income will help to fund YOUR GOALS

 

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Click here for our Year-End Tax Planning Guide.

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Bio:

Dominique is owner of DJH Capital Management, LLC. a full service, comprehensive financial planning firm helping individuals build roadmaps to reach their financial dreams.

© 2016 DJH Capital Management, LLC.

Sound bumps provided by www.bensound.com

Post Election Portfolio Advice

“Which is more valuable–advice given in a noisy, crowded room or advice given in an empty forest? Neither, no one is listening…”

–The Maven of Financial Literacy

“Which is more valuable–advice given in a noisy, crowded room or advice given in an empty forest?  Neither, no one is listening…”
 –The Maven of Financial Literacy
I consistently read Howard Marks’ “On the Couch” memos as he is probably one of the best distressed investors of our time.  He and other investment sages have great wisdom that investors should heed.  The propensity to rush into a “buy or sell” decision in light of recent market volatility is compelling but not always rewarding.  Jason Zweig recently wrote about the post-election history of markets and how in some instances they were contrary to “conventional” wisdom. (It’s worth the read.)  Thus, setting the tone for this pre-Thanksgiving post about some things you should and should not do when it comes to your investment portfolio.

 

You SHOULD NOT react, but you SHOULD think…
If your investment strategy is long-term in nature, then there are probably no immediate adjustments that need to be made.  Stop and think about what investment goals you have for your entire portfolio of assets.  (See this post on Human Capital or this one on portfolio construction.) Long-term growth will likely be achieved regardless of current or interim political changes especially if your own a well-diversified portfolio.

 

You SHOULD NOT blow up your current plan, but you SHOULD strategize…

If you are working with a financial advisor, this is probably where your guy or gal really earns their fee. Many investors will do something in their portfolios they will regret (e.g. buy high and sell low) unless they are working with a financial professional that is giving good advice.  I’d highly recommend scheduling a strategy session with your person to work through different market scenarios.  Even if no action is ultimately taken, the meeting will likely give you peace of mind about your current plan that is in place.  (Shameless plug:  Get our free year-end tax planning guide here.)

You SHOULD NOT rush to a decision, but you SHOULD procrastinate…

This is likely the only time where advice to “procrastinate” is acceptable.  With the recent market volatility, it is probably good to sleep on what you feel is a good decision for a night or two.  Good ideas are usually good ideas two or three trading days later (especially in the case of long-term investors) and this allows time to consider any potentially impulsive, emotionally biased decisions.

Whatever your method for portfolio construction and investment, remember the wise words of Sir John Templeton:

“history shows that time, not timing, is the key to investment success.”

Invest Wisely!
#keystofinancialcontentment
#freeportfolioadvice

FLBC 017: Real Talk from the Trenches

The definitive interview with Marques Ogden, former NFL player turned best-selling author and motivational speaker.

Podcast Details:

Podcast Title:  Real Talk from the Trenches
Podcast Series: Financial Literacy Boot Camp

Full Illustrations available on YouTube Version here.

Questions/Issues We’ll Address on this Episode:

Segment 1 – Marques and I talk about his NFL career and how he transitioned into speaking

Segment 2 – Marques and I talk about how athletes need better financial literacy.

Segment 3 – Marques and I talk about how the current theme of “Athletes Gone Broke” can change.

Segment 4 – Marques discusses his speaking academy and how it can help individuals make that “next” step.

Marques Ogden’s website

Speaking Academy Link

Helpful Links:

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Where to Find Us:

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Bio:

Dominique is owner of DJH Capital Management, LLC. a full service, comprehensive financial planning firm helping individuals build roadmaps to reach their financial dreams.

© 2016 DJH Capital Management, LLC.

Sound bumps provided by www.bensound.com

FLBC 016: Making Better Financial Decisions-Part 3

Podcast Details:

Podcast Title:  Making Better Financial Decisions-Part 3
Podcast Series: Financial Literacy Boot Camp

Full Illustrations available on YouTube Version here.

Questions/Issues We’ll Address on this Episode:

– Introduction to the Idea of what biases are and why our brains get in the way of good financial decision making.

– Heart: Emotional Biases
– OVERCONFIDENCE BIAS.

– Head: Cognitive Biases
– REPRESENTATIVENESS BIAS.

How do you move forward with these questions?

– When will I start my budget?
– When will I start paying down and eventually pay off that student loan?
– When will I take advantage of the 401(k) employer match?
– When will I complete my will?
– When will I check to see if I have enough life insurance just in case something happens to me?
– When will I build up my rainy day fund, just in case it rains?
– When will I hire a financial advisor to help me with some or all of the above?

Helpful Links:

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Where to Find Us:

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Bio:

Dominique is owner of DJH Capital Management, LLC. a full service, comprehensive financial planning firm helping individuals build roadmaps to reach their financial dreams.

© 2016 DJH Capital Management, LLC.

Sound bumps provided by www.bensound.com

Greed: A Life-Sucking Force

“Dishonest fortunes can be made but can’t be kept. The goal of attaining wealth shouldn’t be a primary consideration for anyone, because it soon becomes replaced with greed.” –The Maven of Financial Literacy

“Dishonest fortunes can be made but can’t be kept. The goal of attaining wealth shouldn’t be a primary consideration for anyone, because it soon becomes replaced with greed.”
–The Maven of Financial Literacy
 Some of buzz of the news world is around a newly released 60 Minutes piece “Thrown for a Loss” featuring former NFL running back Fred Taylor and current NFL tight-end Vernon Davis as individuals left holding “the bag” from another private investment deal gone bad.  Jeff Rubin, their then financial advisor, over-promised and under-delivered more than just returns for these guys and the several others he attracted to an electronic bingo deal in Alabama.  After reading the story, one wonders, “where’s the problem”?  With the players?  With the financial advisor?

 

Consider the following:

  • Undoubtedly, players need better tools to make decisions about choosing financial advisors, since there are dishonest players in the industry.  (In this case, the NFLPA had Rubin registered in its financial advisor’s program).  But this is not isolated to just the NFL.  Other sports have had bad advisors, and lest we forget, Bernie Madoff orchestrated one of the biggest ponzi scheme over the course of decades.

 

  • So, although the NFLPA’s program registered and kept a person like Jeff Rubin in the program, they are no more responsible than the securities industry as a whole, right?  Wrong.  I’d agree with some players that the NFLPA is more culpable and should be held to a higher standard when registering an individual to work with its players.

 

  • No matter where you place the blame it is evident that greed, pride, dishonesty have never led anyone to a successful outcome.  Greed will always lead a person to make bad decisions because greed is the problem.  Dishonesty will always lead a person to make bad decisions because dishonesty is the problem.  Pride prevents someone from asking for the forgiveness to restore a relationship.  No matter how you slice it, the solution starts with accepting personal responsibility and a change of attitude.
#keystofinancialcontentment
#greedrobbinglife

FLBC 015: Making Better Financial Decisions-Part 2

Podcast Details:

Podcast Title:  Making Better Financial Decisions-Part 2
Podcast Series: Financial Literacy Boot Camp

Full Illustrations available on YouTube Version here.

Questions/Issues We’ll Address on this Episode:

– Introduction to the Idea of what biases are and why our brains get in the way of good financial decision making.

– Cognitive Bias (Head) – mental misfire
– Emotional Bias (Heart) – avoid pain, produce pleasure “fight or flight”

Loss Aversion Bias – you want to avoid the loss

Examples: Not selling a losing stock in your portfolio because you’re emotionally tied to it…it represents something.

Confirmation Bias – This is the view that people generally look to confirm what they already believe about something ignoring evidence to the contrary.

Examples: holding too much employer stock in your retirement plan

Helpful Links:

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Where to Find Us:

Website
Blog
LinkedIn
Facebook
Twitter #FinancialLiteracyBootCamp

Bio:

Dominique is owner of DJH Capital Management, LLC. a full service, comprehensive financial planning firm helping individuals build roadmaps to reach their financial dreams.

© 2016 DJH Capital Management, LLC.

Sound bumps provided by www.bensound.com