Jesse’s running the show solo this week, bringing with him some interesting perspectives on tax tricks, whether you should rent or buy, and college education. In this episode, you’ll hear why side hustles might just be a waste of time, what makes detailed budgeting overrated, and how you’re actually spoiled just by having a queen sized bed! This episode is great if you’re looking for a few reminders, grounding advice, or a few different opinions.

Key Takeaways:
• Reasons why you shouldn’t rely solely on your stocks for your early retirement.
• The 50% Rule for 529 College Savings Plans.
• What makes a side hustle a waste of time?
• Why renting might be the right decision.
• How perspective shows you’re actually spoiled!
• Is your advisor a professional? Or a hack?

Key Timestamps:
(02:51) Critique of the FIRE Movement
(05:50) Debunking Tax Hacks
(09:08) The 50% Rule for 529 Plans
(13:22) Primary Home: Not an Investment
(15:18) The Reality of Side Hustles
(19:41) Rent vs. Buy: A Balanced View
(25:21) Living a Life of Luxury
(32:10) Reevaluating Detailed Budgeting
(36:52) The Spectrum of Financial Advisors
(41:38) Pay Yourself First, But Not Too Much
(42:50) Essential Thoughts for True Wealth
(46:02) Conclusion and Final Thoughts

Key Topics Discussed:
The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance

Mentions:
Factfulness: Ten Reasons We're Wrong About the World--and Why Things Are Better Than You Think by Hans Rosling, Anna Rosling Rönnlund, and Ola Rosling
“I Wouldn’t Know Where to Start” – 16 Questions to Ask A Financial Advisor by Jesse Cramer
11 Essentials of Client Service

More of The Best Interest:
Check out the Best Interest Blog at bestinterest.blog
Contact me at jesse@bestinterest.blog

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

What are the long-term gains of educated investment decisions? The COVID pandemic triggered fear and uncertainty, with many wanting to sell everything amid the stock market's 30% drop. However, disciplined investors maintained their perspective and followed their investment policy. This approach, coupled with proper financial planning, often results in a stronger portfolio after market crashes, helping investors avoid costly mistakes. In contrast, a friend who sold his business for $10 million was initially hesitant to invest in the stock market due to a lack of education, but with advice to seek higher yields and follow a well-planned asset allocation strategy, he increased his earnings from 0.05% to 4.5% annually. Throughout Jesse’s monologue, he highlights examples where educated, deliberate, and disciplined decisions helped grow people’s portfolios and prepare them for their long-term goals.

Joe Saul-Sehy of Stacking Benjamins, returns to the podcast for the second half of the show. Jesse and Joe each brought 5 questions to ask before retirement - ideally long before retirement. Alternating, back and forth, they discover how few of these questions are about money. Sound investment and retirement planning isn’t just about the number going up, but also about what you’re going to do with the money you accumulate. Many of us plan to enjoy plenty of golfing during retirement, but, who among us can say we’d like to golf every day for 20 years? Join Jesse and Joe on an exploration of the questions you need to ask when planning your retirement.

Key Takeaways:
• Have you taken your mental and physical health into consideration when planning your retirement years?
• How long do you expect to be retired? And what do you plan to do with your time?
• Find something you can passionately be involved in during your retirement years.
• Why “chasing kids” isn’t a great retirement plan.
• How to simplify your savings plan and make the most of it.
• What engineers can teach us about planning for the unknown unknowns.

Key Timestamps:
(02:14) - Jesse’s Monologue: Putting a Dollar Sign on Financial Planning
(07:23) - Car Loan Decision Making
(08:24) - Backdoor IRA Contributions
(10:11) - Choosing the Right Home Location
(14:01) - Understanding Cash Balance Plans
(20:48) - Interview: Joe Saul-Sehy
(22:08) - Top Questions for Retirement Planning
(37:40) - Creative Solutions for Health Insurance in Retirement
(39:20) - Behavioral Aspects of Investing
(41:26) - The Fee Wars and Financial Planning
(45:36) - Asset Allocation and Investment Choices
(48:45) - Health and Healthcare in Retirement
(53:05) - Maintaining Relationships in Retirement
(57:46) - Protecting Yourself in Retirement
(01:01:06) - Giving Back to the Community
(01:07:58) - Conclusion and Podcast Information

Key Topics Discussed:
The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, retirement lifestyle, FIRE lifestyle, mental health, physical health

Mentions:
Website: https://www.stackingbenjamins.com/
LinkedIn: https://www.linkedin.com/in/joe-saul-sehy-b3426b31/
What Retirees Want: A Holistic View of Life's Third Age by Ken Dychtwald and Robert Morison
Keys to a Successful Retirement: Staying Happy, Active, and Productive in Your Retired Years by Fritz Gilbert

More of The Best Interest:
Check out the Best Interest Blog at bestinterest.blog
Contact me at jesse@bestinterest.blog

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jesse opens the show by sharing a personal anecdote about a former teacher's challenging investment choices, which were burdened with high fees from their financial advisor. He emphasizes the predatory nature of the financial advice teachers receive, encouraging teachers to seek better investment options from reputable firms like Vanguard and Fidelity. Finally, Jesse underscores the importance of being informed against the systemic issues in the retirement planning landscape for educators.

Dan Otter joins for the second half of the show. Dan is the co-founder of 403(b)Wise, which aims to make information about the 403(b) readily available to educators. Together, Dan and Jesse delve into the complexities and challenges of 403(b) retirement plans for public school teachers. They address the absence of Federal fiduciary protections, the prevalence of predatory financial options, and the stark differences between high-cost and low-cost providers. This episode features valuable resources, including Otter's book Teach and Retire Rich and the 403(b)wise website, offering practical advice on avoiding high fees and poor investment choices.

Whether or not you are a teacher, you’ll find this episode full of valuable education. And, be sure to share this with friends and family members who are teachers.

Key Takeaways:
• Be on the lookout for financial predators who’ll lure you into high fee accounts.
• The 403(b) is a great tool for your retirement.
• There’s a lack of federal fiduciary protections which allows for school teachers to be taken advantage of.
• How 403(b)wise is helping educate teachers on their best financial options.
• What to do if you’ve already invested your money in a high fee account.
• How sales agents are incentivized to harm teachers.

Key Timestamps:
(02:17) Jesse’s Monologue: Teachers Are Getting Taken Advantage Of
(03:51) Advice for Teachers
(09:24) Introducing Dan Otter and 403(b)wise
(11:51) The Problem with 403(b) Vendors
(18:03) Annuities in 403(b) Plans
(24:12) Wise Consumer Tips for Financial Products
(25:28) Understanding Fixed Income and Annuities for Teachers
(27:46) The Ethical Dilemma of Financial Advisors
(31:48) Advocacy and Resources for Teachers
(37:11) Navigating 403b and 457(b) Plans
(42:47) Conclusion and Final Thoughts

Key Topics Discussed:
The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, teachers, teacher finances, 403(b), 403b, 457(b), 403(b)wise

Mentions:
Website: https://403bwise.org/
LinkedIn: https://www.linkedin.com/in/daniel-otter-ph-d-0380a61/

Mentions:
Teach and Retire Rich: https://amzn.to/4dQloRi
Ten Rules for Retirement Investing: https://www.youtube.com/watch?v=_ewjha6cu1M https://www.nytimes.com/2016/10/23/your-money/403-b-retirement-plans-fees-teachers.html https://www.nytimes.com/2018/03/16/your-money/403b-annuities.html

More of The Best Interest:
Check out the Best Interest Blog at bestinterest.blog
Contact me at jesse@bestinterest.blog

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.