#82: Are annuities a good investment for retirement?With $250 billion in sales each year, and $2.5 trillion in retirement annuity assets under contract, annuities comprise a huge slice of US retirement assets.Understanding annuities – whether annuities are right for you, and how annuities fit into your retirement strategy – can get complicated given all the annuity options out there and the extreme uncertainty in today’s markets.So this week, I sat down with Stan Haithcock, aka “Stan The Annuity Man,” to deep dive on annuities. We chat about how annuities work, why annuities are not investments (in the portfolio sense), and why there is no such thing as “best annuities.”We discuss:What annuities are and what purpose they serveThe different types of annuity options (immediate annuity, deferred annuity, fixed annuity, variable annuity, indexed annuity, multi-year guaranteed annuity, life annuity)How annuities account for inflationThe mechanics of how to buy an annuityHow insurance companies that sell annuities make moneyThe different type of annuity fees you can expect, and typical all-in costs for different annuity typesHow to vet the insurance companies that sell annuitiesHow to vet an agent and questions to ask before buying an annuity from themHow agents who sell annuities are compensatedAnnuity taxes and the tax profile of annuitiesBasic protections your annuity gets if the insurance company you bought it from goes bankruptWho annuities are best suited for, and whether annuities are a good idea for early retirees (FIRE)Check it out here:https://hackyourwealth.com/annuitiesHave you purchased any annuities before, either for yourself or a family member? What kind of annuity did you buy, and why? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:The Annuity ManNational Organization of Life & Health Insurance Guaranty AssociationsSocial Security: How it works and optimal claiming strategies (HYW050)How Medicare works: eligibility, enrollment, cost, and coverage options (HYW048)How Social Security Works: The Ultimate Guide For LaypersonsRetirement withdrawal calculator: How long will your savings last in retirement?Schedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.

Hack Your Wealth

Annuities explained: are annuities a good investment for retirement?

#81: With the market rallying like crazy this past year, you might have significant capital gains on stocks right now.Now might be a good time for some of you investors to harvest some capital gains. Maybe you’re looking to buy a house. Or maybe you just want to rebalance your investments.But when you sell stock, you pay taxes on the sale.And capital gains taxes can get complex because the effective tax rate you pay when you sell stock depends on whether there are long-term vs. short-term capital gains, whether there are any long-term vs. short-term losses, what your marginal tax rate is, and even whether you are required to pay the Medicare Surcharge Tax.That’s why this week I invited CFA Scott Stratton to explain the intricacies of how capital gains taxes work. We discuss key rules and strategies you need to know to do thoughtful capital gains tax planning. If you want to learn how to minimize capital gains taxes, then don’t miss this episode.You’ll learn:What types of assets capital gains taxes apply toDifference between short-term vs. long-term capital gains tax treatmentHow capital gains and losses work in tandem come tax filing timeHow to harvest capital losses and harvest capital gainsCurrent proposed legislative changes to capital gains tax ratesWhat investors may want to consider doing now before potential changes take effectCheck it out here:https://hackyourwealth.com/capital-gains-tax-on-stocksWhat other tax planning questions do you have about capital gains taxes? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Good Life Wealth ManagementTax Loss Harvesting: Rules and Strategies with Bob Dockendorff (HYW022)How to take a year off, earn 6 figures, harvest capital gains, do Roth conversions…and pay zero taxes on it allHow to earn 6 figures and legally pay zero taxes (updated for 2020) (HYW021)Avoiding capital gains tax on real estate: how the home sale exclusion worksHow the Home Sale Capital Gains Tax Exclusion Works (HYW033)Schedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.

Taxes on stock gains: how to avoid capital gains tax on stocks

#80: Teaching kids about money isn’t easy, but it’s crucial if you want to boot them off your payroll after they graduate from school.But while financial literacy is good, helping your kids build the mindset and momentum to achieve financial independence is even better.It requires that they internalize (and value) aggressive saving, investing, and compounding…not just living within their means.That’s why I was so excited to chat this week with Doug Nordman and Carol Pittner, father and daughter co-authors of a new book on how to teach next-generation financial independence.We discuss:Why it’s important to let kids make their own financial choices (and mistakes) when the stakes are lowWhy letting your kids buy “One Special Thing” per shopping trip is an effective teaching strategyWhy you might want to pay your kids for jobs, but not chores…and the difference between the twoWhy it might not be a good idea to pay your kids for getting good grades, and what you can do insteadWhy “profit sharing” is an especially powerful strategy to teach kids about savings and frugalityHow to create a “kid 401k” to teach your kid lasting lessons about compounding and long-term investingHow to incentivize your kid to contribute to a Roth IRA early onHow to handle the question of “how rich are we?”Check it out here:https://hackyourwealth.com/teaching-kids-about-money-financial-independenceWhat strategies do you use to teach your kids about saving, investing, and compounding? How are you helping them learn about financial independence, if at all? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Raising Your Money-Savvy Family For Next Generation Financial IndependenceThe Military GuidechildFIREFinancial literacy for kids: how to teach your kids about money (HYW077)9 Crucial Money Lessons Your Kids Must Learn to Succeed as Adults (HYW027)How to financially prepare for starting a family with Kevin Mahoney (HYW038)The best parenting guidance I’ve learned for raising successful childrenSchedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.

Teaching your kids about money and financial independence

#79: This one’s for you parents who have kids in college or soon going to college…In the COVID relief stimulus bill that passed at the end of 2020, there was a big chunk about federal student financial aid.New rules are bringing significant changes to college financial aid. This week, I deep dive with my friend Ann Garcia, aka The College Financial Lady, on what these changes are and how they will impact you and your family.We discuss:Overview of the federal student financial aid application process, including key datesImportant changes coming to the federal financial aid process: for the FAFSA application, families with multiple college-aged kids, grandparent 529 plans, divorced parents, and moreTimeline and phasing of these changes coming in 2021, 2022, 2023 and beyondCheck it out here:https://hackyourwealth.com/fafsa-federal-student-financial-aid-changesWill you be applying for college financial aid over the next few years? What one thing brings you the biggest worry when it comes to college financial aid? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:The College Financial LadyCollege financial aid tips and strategies, with Ann Garcia (HYW053)529 college savings plans: rules, tax benefits, & qualified expenses (HYW026)College financial aid strategies to optimize your assets, income & EFC (HYW025)Schedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.

College student financial aid changes coming to the FAFSA application

#78: For this episode, I polled other influencers in the personal finance community to ask for their best tip on teaching money lessons to kids.I had four different personal finance influencers weigh in – a range of bloggers, podcasters, authors, and community admins. All of them are parents themselves.I asked each person to answer one simple question:“When it comes to teaching your kids about money, what single method or strategy have you personally found to be most effective?”Check out their collective tips here:https://hackyourwealth.com/money-lessons-for-kids-tips-from-personal-finance-influencersWhat strategy have YOU found to be most effective when it comes to teaching your kids about money? Let me know by leaving a comment. Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Couple Money Podcast, Thriving Families FB groupRaising Your Money-Savvy Family For Next Generation Financial IndependenceKateHorrell.comPersonal Finance for U.S. Military Service Members and Families FB groupHer Dinero Matters podcastFinancial literacy for kids: how to teach your kids about money (HYW077)9 Crucial Money Lessons Your Kids Must Learn to Succeed as Adults (HYW027)How to financially prepare for starting a family with Kevin Mahoney (HYW038)Hey, rich people. Wealth management includes telling your kids how rich you are.The best parenting guidance I’ve learned for raising successful childrenHow to motivate your kid to win the national spelling bee (and excel in life)Schedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.

Money lessons for kids: Tips from other personal finance influencers

#77: Teaching financial literacy for kids may seem like a tall order…when considering that financial literacy even for adults is a national deficiency.But teaching kids about money is crucial if you want your kids to grow up financially responsible and independent.As a parent, you will have a strong vested interest in it, because if you fail at it you’ll eventually pay the consequences (literally), e.g., if your adult kid can’t support themselves and move out of the house.And early retirement? You can probably kiss that goodbye if your kid is financially reckless.So, instilling good financial education for your kids is a wise investment…maybe even the wisest investment.This week, I spoke with Robin Taub, author of the book “The Wisest Investment,” about how to instill financial literacy for children. We discuss strategies, role modeling, and techniques for teaching personal finance and money lessons to your kids.What you’ll learn:Why teaching kids about money is hardWhat financially well-educated kids have in commonThe right age to start teaching kids about money in earnestThe crucial money lessons kids at each maturity level should know to have healthy skills, habits, and mindsets about moneyRobin’s core framework for teaching kids about moneyCommon mistakes parents make when teaching their kids about money, and the most effective role modeling parents can do to successfully teach their kids about moneyHow to get kids to become self-motivated to learn about money, saving, investing, and budgetingHow parents can create teachable moments in daily life and turn them into money lessons for their kidsHow to answer awkward questions like “how rich are we” and “how much money does our family make”How parents can help teach their kids to embrace impulse control and delayed gratification when it comes to moneyGuidelines for paying kids an allowance or paying kids to do choresHow to teach kids about budgeting (and when it’s age appropriate)For affluent families: how to make sure your kids don’t take money for granted or become spoiled entitled bratsWhat methods have you found to be effective when it comes to teaching your kids about money? If your kids are self-motivated to learn about personal finance – earning, budgeting, saving, investing – how did you get them to be self-motivated? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Related links:The Wisest Investment: Teaching Your Kids to Be Responsible, Independent and Money-Smart for LifeRobin Taub9 Crucial Money Lessons Your Kids Must Learn to Succeed as Adults (HYW027)Schedule a private 1:1 consultation with meHYW private Facebook communityIntro/Outro: Old Bossa by Twin Musicom.

Financial literacy for kids: how to teach your kids about money

#76: Retiring early to travel the world is a common goal for FIRE aspirants.But full-time travel can lose appeal quickly. Churches and temples quickly start to look the same. Gardens and palaces quickly look the same.When you’re responsible for creating all the structure to your day – every day for weeks and months on end – it gets exhausting and can feel purposeless.But what if you could design early retirement travel around language learning?By enrolling in language immersion courses at local language schools in countries you travel to, you not only learn how to communicate conversationally with locals. You also get structured and even vibrant exposure to local culture, food, people, and activities because being situated in a school or university environment creates that exposure and structure for you naturally.This week, I invited Ingrid, a software engineer turned early retiree and successful travel blogger, to share about her early retirement experience pursuing language learning through travel immersion courses. Making language learning the focus of early retirement has brought joy and purpose and structure to her travel experiences.We discuss:How Ingrid came up with and built strong confidence in her FIRE numberHer asset allocation and withdrawal rateHer blog’s revenue contribution (and what helped her blog get traction)How Ingrid plans travel around language immersion coursesHow she meets and connects with locals when she travels, plus her advice for solo female travelersHow she handles health insurance and healthcare costs as an early retiree and when she’s travelingHow she believes one’s emotional well being and personality change in early retirementHow she contemplated family and children alongside her early retirement plan, why she decided against having a family, and her thoughts on loneliness, dating, and companionship as an early retireeWhat Ingrid would have done differently if she could do it over againCheck it out here:https://hackyourwealth.com/language-learning-courses-retirement-travel-immersionHave you ever studied abroad or taken a language immersion course in another country? What do you think about the notion of pursuing language learning through travel immersion courses in early retirement? Let me know by leaving a comment!Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyI need your help, please leave a listener review :)If you liked this episode, would you please leave a review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Second-Half TravelsFirecalcCouchsurfingSquaremouthNomad CruiseRemote YearWiFi TribeSchedule a 1:1 consult with meHYW FB communityIntro/Outro: Old Bossa by Twin Musicom.

Language learning through travel immersion courses in early retirement

#75: Real estate investing might seem like something only wealthy people can do.It’s expensive, down payments can be high, and you may feel you don’t have enough income to afford it.Maybe you think: “I can’t even afford a house to LIVE in…how would I afford a house to invest in?”But the plain truth is: there are lots of average Joes who do it…and who build a lot of wealth from it!Today’s podcast guest is one such (inspiring) example.John and Rosalina Steiner reached out to me (after following the podcast!) to share their real estate investing story. I found it compelling and wanted to share their insights and wisdom with you, too. Hope you enjoy listening to their story as much as I did!We chat about:How and why the Steiners started investing in real estate in the first placeTheir 25-door real estate portfolio breakdown – what type of units, where they’re located, how many have mortgagesHow they financed the down payments and loans for each propertyWhy they chose the neighborhoods they invest inWhy they self-manage, and their best tips for managing tenants effectivelyTheir views on Section 8 and how they manage Section 8 tenantsWhy they never plan to stop investing…even though they’re 65!Check it out here:https://hackyourwealth.com/real-estate-investing-with-middle-class-incomeDo you wish to invest in real estate but feel like you don’t know how to get started? What’s the biggest factor you think holding you back? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:John & Rosalina SteinerMultifamily real estate investing: how to build a $175M portfolio in 7 years with Andrew Campbell (HYW029)Schedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.

How this middle income couple built a real estate portfolio of 25 doors (in expensive California!)

#74: This week, I chat with Caroline Ceniza-Levine, a career coach now early retired, whose own spouse wasn’t on board with early retirement for many years before she finally convinced him to get on the FIRE train.We talk about tips and advice for how to convince your spouse about early retirement – and all it entails...We discuss:Caroline’s own path to FIRE – from music, to strategy consulting, to corporate, to coaching, to FIREHer spouse’s main concerns when it came to early retirementHow she got her spouse on board, what she would have done differently, and her advice for others who are struggling to convince their partner about early retirementPlus: how Caroline handles healthcare / insurance as an early (pre-Medicare) retiree, her passive rental real estate portfolio breakdown and how she manages her rentals remotelyCheck it out here:https://hackyourwealth.com/retire-early-with-spouse-workingHave you ever been at odds with your spouse about early retirement? What were their main concerns? Were you able to change their mind – how? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Costa Rica FIREMoney issues in marriage: why spouses fight about money, how to fight with empathy, and how to convince your spouse to FIRE (HYW065)Schedule a private 1:1 consultation with meHYW private Facebook community   Intro/Outro: Old Bossa by Twin Musicom.

How to early retire (FIRE) if your spouse isn’t on board

#73: One big reason the tech industry attracts a lot of talent: you get partly compensated in stock, and if you’re early enough at a company that IPOs, your stock options or RSUs can make you a millionaire multiple times over when the company goes public.Google created >1000 millionaires at IPO. Facebook too. Microsoft has created >10k millionaires. Amazon probably even more.But with stock compensation, your taxes can quickly get complicated. You need thoughtful tax planning to make sure you don’t pay more in taxes than needed. As with other types of income, what matters isn’t what you earn – it’s what you keep.So this week, I spoke with Shane Mason, whose CPA firm specializes in advising entrepreneurs and tech workers, to share tips and strategies on stock option and RSU tax planning.We discuss:The different types of stock-based compensation and tax regime applicable to eachDeep dive on Incentive Stock Options + AMT + AMT “refund” rulesHow an 83(b) election works, and pros/cons of doing itKey tax planning strategies applicable to stock compensation (e.g. timing strategies, optimizing tax buckets)Check it out here:https://hackyourwealth.com/stock-option-rsu-tax-planningDo you earn stock-based compensation? What tax planning best practices have you followed? What do you want to know more about when it comes to stock tax planning? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Brooklyn FISchedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.

Stock option and RSU tax planning

#72: This week, I invited Bill Exeter to teach us about 1031 exchanges. He is the CEO of Exeter 1031 Exchange Services and has been doing 1031s for nearly four decades.You might know at a high level that a 1031 exchange means deferring real estate capital gains taxes. But the details are important to avoid dumb mistakes that will disqualify you.We discuss:Different types of 1031 exchangesKey criteria and deadlines + step-by-step process for executing a 1031How to optimize timing your buy/sell transactionsLike-kind replacement property rulesDomestic vs. foreign property exchangesWhat constitutes “Qualified Use” + holding period requirementsState tax consequencesWhy investors can’t do 1031s themselvesThe role of a Qualified Intermediary, how to vet one, and how much they costTax impact of converting a 1031 property into owner-occupied housing, and vice versaCommon mistakes that disqualify you from a 1031Proposed Biden administration changes to 1031s: likelihood of passage + actions you can take now to mitigate adverse tax impactCheck it out here:https://hackyourwealth.com/1031-exchangeEver done a 1031 transaction? What was your experience? Anything you would do differently next time? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Exeter Group1031taxreform.comHow to avoid capital gains taxes when selling your houseHow the Home Sale Capital Gains Tax Exclusion Works (HYW033)Schedule a private 1:1 consultation with meHYW private Facebook community   Intro/Outro: Old Bossa by Twin Musicom.

1031 exchanges: what real estate investors need to know

#71: Tax deed auctions provide an opportunity to buy tax-delinquent properties at a discount, wipe away existing liens and mortgages, and earn sizable profits in the process.This week, I invited my friend Phil Kessler back to the podcast to teach us how this unique type of real estate investing works.If you’ve ever wondered how tax deed auctions work, how to win them, and how to due diligence this type of real estate, then don’t miss this insight-packed episode.What you’ll learn:How tax deed investing differs from tax lien investingHow tax deed auctions work, how they differ from other foreclosure auctionsThe most important things to due diligence when it comes to tax deed properties, and how to due diligence themThe most helpful online tools for property due diligenceHow to buy tax delinquent properties BEFORE they go to auction (and avoid competing against scores of other bidders)How redemption periods work, and which states have themHow a quiet title lawsuit works, how much it costs, and what happens if a title dispute arisesHow tax deed auctions affect existing mortgages and liens, and how to verify the rules in your stateCheck it out here:https://hackyourwealth.com/tax-deed-investingHave you ever bid in a real estate auction? What was your experience? What other questions do you have about tax deed investing that weren’t covered here? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:propertyonion.comThe Deed FeedVelocity REOsRealAuction.comGrant Street GroupCivicSourceAAR AuctionGovEaseHow tax lien investing works and how to buy tax lien certificates (HYW066)Real estate investing through house auctions and hard money lending with Ethan Gao (HYW032)Schedule a private 1:1 consultation with meHYW private Facebook community  Intro/Outro: Old Bossa by Twin Musicom.

Buying tax deeds to invest in real estate at a deep discount

#70: Last time, we talked about the pros and cons of the “yield shield” and the impassioned views on both sides of that debate.But what if you sidestep that entirely and generate your dividend yield through rental real estate instead?Unlike stock dividends, which can be cut by company management, rents are arguably way more stable. Plus, real estate can be leveraged with a mortgage to juice a higher capital return.Separately, regardless of which strategy you use, how should retirees think about the “crossover” point beyond which sequence risk effectively disappears?This week, in the final part of our 3-part series on asset allocation, we talk again with Karsten Jeske, CFA, about both these topics.We discuss:How rental real estate can change your optimal asset allocationWhether a bond tent strategy is still relevant if you have rental real estateHow to analyze the sequence risk crossover point after which you are guaranteed to outlive your savingsHow to visualize the relationship between “how much nest egg is left” vs. “how much retirement is left,” and how to know when you’re really “out of the woods”Check it out here:https://hackyourwealth.com/sequence-risk-analysisDo you think rental real estate is a more effective “yield shield” vs. dividend stocks? Would you change your asset allocation with rental real estate? How will you know when you’ve crossed the sequence risk “crossover” point?Let me know by leaving a comment!Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:ERN&apos;s "When Can We Stop Worrying about Sequence Risk?"Asset allocation: Does the “yield shield” really protect against sequence of returns risk? (HYW069)Asset allocation: How to use a bond tent to reduce sequence of returns risk (HYW068)The shockingly un-simple math behind retirement safe withdrawal rates (Part 1) (HYW035)The shockingly un-simple math behind retirement safe withdrawal rates (Part 2) (HYW036)Schedule a private 1:1 consultation with meHYW private Facebook community  Intro/Outro: Old Bossa by Twin Musicom.

Is rental real estate a safer type of “yield shield”?

#69: Last time we talked about using a “bond tent” strategy to reduce sequence risk in the years just before and just after retirement.In FIRE communities, an alternate strategy that has become popular is the “yield shield.”A yield shield strategy involves holding primarily investments that pay a high dividend yield.The theory is: if the investment pays a dividend yield of 3-4% that might be all you need to cover your safe withdrawal rate. If you don’t ever have to touch the principal, sequence risk might disappear entirely.But is it really that simple?This week, in part 2 of our 3-part series on asset allocation, we continue our discussion with Karsten Jeske, CFA, about the pros and cons of a yield shield strategy. We start by wrapping up our glide path discussion from last week, then dive into a critique of the yield shield.We discuss:How early retirees with kids should plan for key expense milestones during retirement that traditional retirees have already dealt with (college, buying a home, etc)Pros and cons of a yield shield strategyWhether investing in dividend kings or dividend aristocrats helps to address the consThe importance of looking at total return when analyzing the yield shield, and why a high dividend doesn’t translate into higher total returnReasons why the yield shield can fall short (and examples where it did)The right way to define success of a yield shield strategyWhy Karsten doesn’t fundamentally believe the yield shield does better than a plain vanilla stock indexCheck it out here:https://hackyourwealth.com/yield-shield-critiqueThis yield shield critique has been very controversial in FIRE communities. Are you persuaded by it? Or do you believe the yield shield performs better? Why or why not? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Dividend ETFs: VYM, NOBL, SDY, DVYERN&apos;s Yield Shield critiqueERN&apos;s critique of the dividends-only approachAsset allocation: How to use a bond tent to reduce sequence of returns risk (HYW068)The shockingly un-simple math behind retirement safe withdrawal rates (Part 1) (HYW035)The shockingly un-simple math behind retirement safe withdrawal rates (Part 2) (HYW036)Schedule a private 1:1 consultation with meHYW private Facebook community  Intro/Outro: Old Bossa by Twin Musicom.

Does a “yield shield” really protect against sequence of returns risk?

#68: This week, in part 1 of a 3-part series on asset allocation, I talk with Karsten Jeske, CFA, about how to implement bond/equity glide paths, both leading into retirement and in the initial years after retirement.Getting your asset allocation right, and shrewdly changing its composition in the years just before and just after retirement is one of the most impactful things you can do to offset sequence of returns risk.If you want to understand how to do this effectively, don’t miss today’s episode!We discuss:The intuition behind bond tents and equity glide pathsPros and cons of a bond tent strategy (what you gain, what you lose)How to determine the optimal % peak allocation of bondsHow long you should optimally stretch each glide path over (and why each side probably should be different durations)When is a longer vs. shorter glide path better in terms of returns and riskWhen is a bond tent NOT worth it and you should just stick with 100% equitiesCheck it out here:https://hackyourwealth.com/asset-allocationWhat do you think about the bond tent strategy? Let me know by leaving a comment.Don&apos;t miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:ERN&apos;s cashflow modeling spreadsheetERN&apos;s posts on glidepaths: part 1, part 2The shockingly un-simple math behind retirement safe withdrawal rates (Part 1) (HYW035)The shockingly un-simple math behind retirement safe withdrawal rates (Part 2) (HYW036)Schedule a private 1:1 consultation with meHYW private Facebook community  Intro/Outro: Old Bossa by Twin Musicom.

How to use a bond tent to reduce sequence of returns risk

As a lawyer / engineer / MBA, how can you achieve FIRE (financial independence, retire early) rapidly to quit the rat race, pursue your passions, and live life on your own terms? Andrew Chen – founder of the Hack Your Wealth Blog and lawyer, financial expert (CFA graduate), and tech industry veteran – shows you strategies and tactics to (1) earn, (2) save, (3) invest, and (4) protect as a high earner so that you can build massive wealth and create a portfolio that’s a FIRE machine. Through solo lessons, expert interviews, and side hustle profiles, you’ll learn about tax strategies, retirement account optimization, asset allocation & rebalancing, passive income (real estate investing, side hustling, online business, digital nomading), family finances (e.g., strategizing college education costs), travel hacking, estate planning, and career transitions. Andrew podcasts about the big picture concepts, then adds step-by-step implementation guides downloadable from the Hack Your Wealth website to help you FIRE strategically, methodically, and rapidly.

hubhopper

Hack Your Wealth

hubhopper