“Proper planning and preparation prevents poor performance.”  - Stephen KeagueWhy does talking about this matter? What does it have to do with financial planning?They’re powerful. You can specify who should inherit your retirement and life insurance assets without making adjustments to your will or trusts. In fact, these designations take precedence over wills and trusts in most cases.They’re virtually probate-proof. Because these designations generally supersede will and trust instructions, they circumvent the probate process and ensure that assets can be transferred to heirs without delay. However, if a designated beneficiary predeceases the owner and there is no contingent beneficiary, probate will likely be required.They’re simple. Many institutions offer the convenience of updating these beneficiary designations online.Need help creating a plan?Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor

Financial Jargon

Beneficiary Designations

David and Ryan discuss the importance of knowing what Net Worth is and why it's an important "jargony" phrase you need to understand. What Is Net Worth?Net worth is the value of the assets a person or corporation owns, minus the liabilities they owe. It is an important metric to gauge a company's health, providing a useful snapshot of its current financial position. - InvestopediaNet worth is a quantitative concept that measures the value of an entity and can apply to individuals, corporations, sectors, and even countries.Net worth provides a snapshot of an entity's current financial position.In business, net worth is also known as book value or shareholders' equity.People with substantial net worth are called high-net-worth individuals (HNWI).Need help creating a plan?Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor. 

Understanding Net Worth

EPISODE SUMMARY“My wealth has come from a combination of living in America, some lucky genes, and compound interest.”-Warren BuffetIn this episode of Financial Jargon, Ryan and David discuss the Power of Compound Interest.EPISODE NOTESThe Rule of 72 is a great way to estimate how your investment will grow over time. If you know the interest rate, the Rule of 72 can tell you approximately how long it will take for your investment to double in value. Simply divide the number 72 by your investment’s expected rate of return (interest rate). Assuming an expected rate of return of 9%, your investment will double in value about every 8 years (72 divided by 9equals 8). - SEC websiteNeed help creating a plan?Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor. 

Power of Compound Interest

“As a competitor and an athlete, you have to believe in the people who believe in you.” - Tim TebowEpisode NotesWhat do you think of when you hear the name Tim Tebow?Champion.  Competitor.  Faithful.  Determined.  Gritty.  Athletic.  Giving. Man of God.  To just name a few.There's a lot we can learn by watching someone like Tim Tebow. His faith leads him; it's unwavering.  He's determined to compete and make a difference in whatever situation he finds himself in.  He has a heart for children, and it's shown through the founding of the Tim Tebow Foundation. At the age of 15, Tim visited a remote village that had never seen visitors. There he met a boy named Sherwin who would impact his life more than anyone he has ever met. Sherwin was born with his feet on backward and was viewed as “cursed” in his village. When the people saw Tim hold Sherwin, they realized that the good news of Jesus Christ applies to everyone. It was then that Tim's passion grew to help people. That’s why in 2010, he created the Tim Tebow Foundation with a mission to bring Faith, Hope, and Love to those needing a brighter day in their darkest hour of need.Take a listen to the episode.  You can't help be encouraged when listening to someone like Tim speak. Also, be sure to check Tim's Foundation here, and see how you can get involved.Need help creating a plan?Visit smplwealth.com and sign-up for a 15-Minute call with an advisor. 

Mindset and Conversion with Tim Tebow

“Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor.” - Wikipedia Debt is basically something, typically money, that is owed to someone else. Sometimes referred to as a financial obligation Debt is the “condition of owing” - “thefreedictionary.com” Types of loans: mortgages, car loans, credit cards, student loans, medical bills, personal loan (maybe from a mob boss) Here’s how it works: You need money, I will give it to you, You will pay me back over a defined period of months or years and I will (generally) charge you interest.Interest is money that is paid for the use of money Average CC interest rate in Sept 2020, according to the Federal Reserve is 14.52% - this has been rising over the past several years Average auto loans are at 4.21% ● What about “0%” interest? - it’s a marketing ploy for you still buy their product - psychologically we think we’re getting such a screaming deal Accessing loans is often tied to your credit score - this is a number that you get assigned that tells lenders if you will be good or bad at repaying a loan The higher your score the better terms you get! Common types of loans: mortgages, car loans, credit cards, student loans, medical bills, personal loan (maybe from a mob boss) Easy rules of thumb: ● If the debt increases your net worth (over time) or has future value, it’s good! If the debt decreases your net worth, it’s badTypes of “good” debt (so long as you can meet all monthly financial obligations): Mortgage Student loans Business loans Types of “bad” debt: Credit card debt Car loans The debt paradox: You have to take out loans (even CC or auto) in order to prove that you are responsible and capable of repaying loans.This might be like saying “in order to prove you are not an alcoholic, you must begin drinking”Need help creating a plan?Visit smplwealth.com and sign-up for a 15-Minute call with an advisor. 

Debt

Clint shares his wisdom and insight with compassion and clarity. He spent the earlier part of the past decade managing a portion of a larger church budget at Desert Springs Church and now manages the entire budget at Christ Church Albuquerque. He earned his Bachelors Degree in Hydrology from New Mexico State University and his Master's Degree in Civil Engineering from The University of New Mexico. All that to say, he's good with numbers. Clint challenges listeners with the fundamental concept of personal and business accounting ('giving an account for the money you have'), as well as finding someone you can trust.Reach Clint:www.christchurchabq.comclint@christchurchabq.com Have financial questions?  Need some help with your small business or retirement planning.  Check out smplwealth.com to learn about Age-Based Financial Planning.

Budgeting - An Interview with Clint Moore

Dave is a very thoughtful individual. He is a hard worker and loves what he does. In fact, were money, not an issue, he’d probably still do what he does because it brings him joy helping people and businesses. He thrives on creativity and growth as a husband and father. Dave has helped lead McKee, Wallwork + Co. to win Advertising Age’s “SW Agency of the Year”—twice, Advertising Age’s “Best B2B Campaign of the Year,” and Advertising Age’s “Place to Work”—also twice.Needless to say, the dude is a deep well of wisdom and insight and we hope you are able to pull a couple of nuggets from what he brings to the conversation.Also, stick around for the After the Show Show (a record 24 minutes!) where Ryan dives further into Dave’s brain about defining “wealth,” “retirement,” and walking through “Kinder’s Three Questions.”Reach Dave:http://www.mckeewallwork.comdortega@mwcmail.comFollow on Instagram:@mckeewallwork Have financial questions?  Need some help with your small business or retirement planning.  Check out smplwealth.com to learn about Age-Based Financial Planning.

Consulting - An Interview with Dave Ortega

It's important for you to have financial confidence when facing a life change. Episode NotesLooking for an advisor to help you with your financial needs.  Be sure you're asking all the right questions.  Download the 7 Questions to ask a Financial Advisor HereIn this episode, David and Ryan discuss the importance of focusing on what we can control.  When uncertainly arises, especially if you're transitioning into retirement in this current environment, it's important to do what you can to minimize fear.For info on how Smpl Wealth has made it easy for you to get financial help and guidance, visit smplwealth.com. No hidden fees, 100% transparent pricing.  Easy peasy.FREE DOWNLOAD - Guide to Retiring in Uncertain TimesDon't forget to listen to the After-the-show show where we discuss "Don'ts".

Uncertainty

Looking for an advisor to help you with your financial needs.  Be sure you're asking all the right questions.  Download the 7 Questions to ask a Financial Advisor HereIn this episode,  David and Ryan discuss why it's important to ask smart questions to your financial advisor, or a prospective advisor.  It's important to find a financial advisor that is the right fit for you and your unique financial needs. Not all advisors are created equal. Some are independent, some are legally required to act in your best interest, and some are limited to the advice that they can give. There are different fee structures - some disclosed, some not. Understanding what questions to ask will put you in the driver seat from the very beginning.For info on how Smpl Wealth has made this really easy, visit smplwealth.com. No hidden fees, 100% transparent pricing.  Easy peasy.

Ignorance

Tish loves people.  She's a creative and values community.  She's a risk-taker (like opening a new store during a pandemic) but also has a good grasp on how important it is to have people around that she trusts to help in areas of her life that she's not as confident in. She's a social media influencer (follow her now on Instagram @nolongerwander), a photographer, mother, wife, and business owner.  But, she's amazingly honest, open, and optimistic.Oh, and she's excited about Albuquerque, where it's going and wants you to jump on the bandwagon.Follow Tish:@nolongerwander@nolongerwandershop@mattandtish@1964hausHave financial questions?  Need some help with your small business or retirement planning.  Check out smplwealth.com to learn about Age-Based Financial Planning. 

Tish Carlson - No Longer Wander

There often seems to be a disconnect between advisors and individuals.  Unfortunately, many don't seek out financial guidance because of three reasons:They don't want to be sold something or taken advantage of.They feel like they can do it themselves (with the help of Google and YouTube, of course).They think it's going to be too expensive.That's why we created Smpl Wealth, an Age-Based Financial Planning® comprehensive financial planning and portfolio management platform.  Say goodbye to high fees, account minimums, trade costs, sales pitches, and back-room deals.With 100% transparent pricing, fees are easy to understand.  We want more money staying in your investment pockets, working for you, and your goals.  Makes sense, right?Listen to the show to find out more and visit www.smplwealth.com to joint the Waitlist.For podcast listeners, join the Waitlist at www.smplwealth.com and enter the Promo code "Jargon" to receive 25% off your plan. 

Smpl Wealth

Mental accounting attempts to describe the process whereby people code, categorize and evaluate economic outcomes… in other words, we often tend to place a different value on our money, depending on where it comes from - think salary vs bonus - they way we treat different categories of money is different.Need to speak to a financial advisor? Visit www.oakmontadvisory.com.[5:32] - What is Mental Accounting[8:00] - Concept of Fungibility [12:42] - Who is more likely to avoid Mental Accounting traps[17:00] - Tips on how to avoid Mental Accounting After the Show-Show[28:15] - The After the Show-Show beginsHow to avoid mental accounting:Know what you haveCreate a purpose for inflows and outflowsStop keeping everything in your mind and write it downGet a budgetTranslate your goals from your brain to a binderGet an accountability buddy to help youTalk about itLabel your accounts! Actually label themEmergency, travel, baby, soccer, retirement 

Mental Accounting

Need to speak to a financial advisor? Visit www.oakmontadvisory.com.[4:48] - Social influences on your money making decisions[5:45] - First level of social influence - conformity [7:30] - How your environment influences your behaviors [11:30] - Second level of social influence - compliance[17:07] - Third level social influence - obedience After the Show-Show[22:40] - The After the Show-Show begins

Financial Mimicry

Fear, greed and stupidity.  "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former." - Albert Einstein The background info for this show comes from a study done in 1976 by a professor of economic history at the University of California, Berkeley. Carol M. Cipolla published an essay outlining the fundamental laws of a force he perceived as humanity’s greatest existential threat: Stupidity.Stupid people, according to Cipolla, share several identifying traits:they are abundant,they are irrational, and;they cause problems for others without apparent benefit to themselvesNeed to speak to a financial advisor? Visit www.oakmontadvisory.com.[5:12] - Definition of Stupidity[8:30] - The first law of Stupidity[11:39] - Try to take an unbias approach to your investment decisions[13:31] - How peer groups could you lead you [financially] astray[17:07] - Why the stupid person is the most dangerous type of personAfter the Show-Show[24:13] - The After the Show-Show beginsMarkets & Emotions Chart - https://www.forbes.com/sites/robisbitts2/2018/07/31/the-cycle-of-market-emotions-where-are-we-now/#4a910d293cf5Carl Richards, The Behaivor Gap - https://behaviorgap.com/

Stupidity

As was mentioned in the show, leave a review and comment about how Fear/Greed led you to making an investment decision, and we'll send you a FREE COPY of Carl Richards, The Behaivor Gap book (it may change your life!).Need to speak to a financial advisor, visit www.oakmontadvisory.com.[5:38] - Greedy outlooks could deceive you in thinking every outcome is only going to be positive[9:45] - Why we tend to get Greedy[13:00] - Greed creates (and leads) to overconfidence[18:50] - Questions to ask yourself before making your next finanical decision[21:30] - How an advisor can help you reduce the Fear or Greed emotionAfter the Show-Show[24:30] - The After the Show-Show beginsMarkets & Emotions Chart - https://www.forbes.com/sites/robisbitts2/2018/07/31/the-cycle-of-market-emotions-where-are-we-now/#4a910d293cf5Carl Richards, The Behaivor Gap - https://behaviorgap.com/

Greed

Welcome to Financial Jargon, where we aim to break down the wall between you and your financial advisor. Too many advisors speak over their clients' heads by using intelligent-sounding jargon that doesn't truly help. It's time for real conversions that lead to real change. We're here to simplify the financial world and help you become a smarter investor.

hubhopper

Financial Jargon

hubhopper