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OG (aka The Other Guy from Stacking Benjamins) joins me to share the 8 Great Mistakes in Investing.

Under-diversification 

1. Over-diversification 
2. Euphoria 
3. Panic 
4. Leverage 
5. Speculating 
6. Investing for yield and not total return 
7. Cost basis dictating decision 

Thanks to OG for coming over. You can find him at http://StackingBenjamins.com – my favorite podcast.

Also mentioned in this episode:

The Great Beanie Baby Bubble – the latest book by Zac Bissonnette. Amazing stuff! Purchase using this link will help Joe & OG over at Stacking Benjamins.

Ponda from the Honda

Thoughts that I have while driving my paid for (with CASH) used Honda Civic

SPEND IT ALL (sort of)

Fractional and Automated Savings Accounts – are they a good idea?

Deanna Richardson from Richardson Accounting and Consulting, PLLC @ theCPA-4U.com asked

“Have you heard of Digit? Seems like a great way to build up an emergency fund and….it says it is free. Then their are bonuses for keeping $100 in it over 3 months. If I did my math right, the bonuses are over 2.5% interest (5 cents / week per $100). Would love to hear what you think.”

I tackle these new fractional, or automatic, savings accounts: Acorns, Digit and Betterment’s SmartDollar

ACORNS

Open an account: https://www.acorns.com or install the free IOS or Android app

Listen to my interview with the creators of Acorns http://SteveStewart.me/161

DIGIT

Open an account: https://digit.co

BETTERMENT’S SMARTDEPOSIT

Open an account: http://moneyplansos.com/betterment 

More information: https://www.betterment.com/resources/inside-betterment/product-news/smartdeposit-auto-deposit-but-smarter

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Matt Ham is an author, speaker, and small business owner. Five words uttered by a nurse changed the way he looks at life – and inspired him to redefine rich.

Takeaways from this interview:

It’s not how much you give – it’s how you give it (The Widow’s Mite)

We shouldn’t feel guilty to spend and, surprisingly enough, we feel richer when we give.

The History of #BowTieFriday (video)

Whole Life Matters Podcast: http://www.mattham.com/itunes

Twitter: http://www.twitter.com/matthamsr

Facebook: https://www.facebook.com/matthamsr

Redefine Rich book – Available on Amazon.com in Kindle and paperback

3 important things to remember when buying a car

This post first appeared on LibertyInvestor.com

Transportation is the third largest budgeting expense for most people. Housing and taxes can consume up to half of the average American’s income, with cars sucking up between 5-20 percent – depending on number of vehicles and if the consumer is carrying auto loans.

However, you can greatly reduce your vehicle costs by remembering these three things when buying a car:

1. It’s transportation
2. It’s a depreciating asset
3. It’s not forever

The way we get the biggest bang for our buck when we buy a car right is when we buy it outright.

Pay off your current car loan quickly, save what used to be your car payment for the next one, and pay attention – not a lease payment!

‘Ponda from the Honda

Free chips, salsa and bread sticks.

What do they have to do with rising prices at local restaurants?

I talk to myself and bring you along for the ride…

Are you tired of paying interest?

Do you want to get control of your finances?

Schedule a 30 minute consultation and let me help you make informed decisions on how you spend your values

http://SteveStewart.me/coaching

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The Ins and Outs of Robo-Investing

Today I am joined by Jon Stein: Husband, father, and founder of Betterment. He studied neurogenesis at Harvard, consulted for First Manhattan Consulting Group for a number of years before founding a game-changing company called Betterment, a wealth management company that uses a small list of ETF funds to help individuals invest their money quickly, easily, and rather inexpensively.

Thank you Jon Stein for coming on the MoneyPlan SOS podcast.

Open up an account with Betterment and receive the first 30 days of deposits FEE FREE

Subscribe to be notified about the launch of my new show http://SteveStewart.me/updates

Credit Scores Affect Insurance Premiums

M.J. Cossel send me an email about this article in the Dallas Morning News:

Bad credit score can double insurance premiums in Texas | Article by Terrence Stutz

Listen to my response by clicking here [29:14]

Yes. Poor credit scores equal higher insurance premiums – but that’s only one consequence of not paying bills and debts on time. Make it a priority today to get your checkbook balanced, organize your finances, and pay attention – not ___________.

If you want a sure-fire way to make every dollar work harder then get on a budget

http://SteveStewart.me/ynab

http://SteveStewart.me/budgetcourse

http://SteveStewart.me/coaching

One tip to help keep car insurance premiums from going up: Remember that steering wheels are not hands-free devices.

Be the first to hear about the new show being launched this year. Sign up for the Attention to Money Resource Guide, receive reminders for those times when it’s important to pay attention to your money, and get a link to be one of the first to hear the new show. It’s going to be huge!

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Do you know why stories of people with $.32 refund checks are in the news?

Because they are so rare!

Most people want to get a big tax refund. However…

Big tax refunds aren’t always a good idea

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Getting a huge refund is an extremely inefficient use of money – both for you and for the government.

I recommend adjusting your withholding so you can bring more money home and put it towards your goals:

• Pay off high-interest rate debt
• Building up reserves
• Saving or investing

How? By adjusting your tax withholding.

Did you know you could change withholding mid-year? All you need is to complete Federal Form W-4 and submit it to your employer (Benefits department or HR manager, etc).

What do I change it to?

To find the answer you need to run a mid-year income tax assessment.

Run a mid-year income tax assessment

Making course corrections in August helps steer your tax withholdings closer to the target – which is to owe nothing or get a small refund.

It’s almost impossible to be exact, there are too many moving parts, but you can bring your tax-boat closer to the dock in the last few months of the year.

Gather together the following items:

• Last year’s tax return
• Last year’s Schedule A (if you itemized deductions)
• Your last two pay stubs (include your spouse’s as well)

Note: If you have a small business or are an entrepreneur then you will need to run a Schedule-C calculation to estimate self-employment income. You may also want to see a tax professional.

Also, you will want to estimate any:

• Child/Dependent Care expenses
• Expected bonuses
• Expected interest, dividends, etc

I use tax preparation software to run my calculation but you could follow the prompts at the IRS website to complete a mid-year tax assessment:

http://apps.irs.gov/app/withholdingcalculator/

Federal forms and resources mentioned in this episode:

Federal tax withholding calculator: http://apps.irs.gov/app/withholdingcalculator

Federal form W-4 (change withholding): http://www.irs.gov/pub/irs-pdf/fw4.pdf

Federal form Schedule-A (Itemized Deductions) http://www.irs.gov/pub/irs-pdf/f1040sa.pdf

Federal form Schedule- C (Profit and Loss from Business) http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

*Disclaimer: I am not a tax preparer or tax advisor. This is a service I normally provide my U.S. clients as part of their coaching process. It is intended to provide valuable information only that you can use to improve your financial situation.

Ponda from the Honda

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Only 5 1/2 more house payments to go!

How $5 a week turns into $228,000

Begin playback at [27:07]

$5 a week for 45 years at 10% growth is $228,000.

Yes, really.

Easily open an IRA account or education fund for your kids with Betterment*

Below is a screenshot of my “$100 a month” experiment. I started the account in 2013 and it’s not doing too bad.

* Note: Your results will vary. Past results are not indicative of future returns

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Ace Chapman is a business owner, but not in the traditional sense. He buys business with the intent of selling them.

Although he has an entrepreneur’s heart, Ace doesn’t believe anybody should start their own business. It is much easier and profitable to buy an existing business, improve it, and sell it for a profit.

In this episode, Ace shares his stories, inspirations, and gives us insight on how we could pursue a business for sale.

Find more about Ace on his website: http://acechapman.com/

or follow him on Twitter: https://twitter.com/acechapman

Pick up his book on Amazon: The Ace Formula: How To Buy Profitable Business and Live Life On Your Term LIKE A BOSS

Don’t worry about your credit score

Do what’s RIGHT with your money

When it is time to prove your creditworthiness call on eCredable

(free recurring monthly membership when you use my link)

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Many people are being lured by the attractiveness of directing their own retirement plans. The trick is to do it right and have an asset, business, or income-producing entity that makes sense for YOUR retirement planning. Today we talk about what you need to know about self-directed IRAs

Interview with Kirk Chisholm [2:22]

Many people are being lured by the attractiveness of directing their own retirement plans. The trick is to do it right and have an asset, business, or income-producing entity that makes sense for YOUR retirement planning.

Kirk Chisholm is my guest today. Kirk is a Wealth Manager, Economist, & Principal at IAG. He is also an expert of investing in alternative investments in self-directed IRA / 401k

Key takeaways from our discussion:

• Self-directed IRAs are a great arrangements for making non-traditional items become tax-deferred investments
• There is no guidance for what you can put into a self-directed IRA
• There are some unusual things people have turned into self-directed IRA investments
• A 1031 exchange is not a self-directed IRA
• We learn where a wealth manager fits into an individual’s self-directed IRA plan
• There is no certification for someone to become a self-directed IRA administrator
• Kirk encourages you to pick things you know well

You can find more about Kirk Chisholm and his firm at http://www.innovativewealth.com

How taking one step back can make you feel a little bit richer [33:47]

• Stop
• Take a step backwards
• Close your eyes for 1 second
• Open your eyes

Imagine your life 10 years ago and tell me you don’t feel just a little bit richer

Ponda from the Honda [42:09]

She blew $20k of college savings on clothes and a European vacation.

I was a guest on Radical Personal Finance

Thanks to Joshua Sheats for having me on his podcast, Radical Personal Finance. I was on Episode 222