Invest Smarter

Professional Athletes and Their Finances with Amobi Okugo

Today I have a special guest, Amobi Okugo. Amobi was drafted to the Philadelphia Union in 2010, which just happened to be the inaugural season for the Union. He spent 5 years in Philly and was a starter and an integral part of the team until he moved on in 2015. He then bounced around the MLS for a couple of years, before becoming a free agent and missing a whole year in 2018. He's now been back at it in Austin playing for their USL team, which is the second tier of professional soccer in the United States. I explored with Amobi what it was like playing in Philadelphia, which has some of the most loyal fans in the country. We then get into what it's like being an athlete and the challenges as well as benefits it brings. We dive into what it is like being drafted to play the sport you love, and then at the same time, we explore what it's like to then be released by a team and not know what your future holds. Amobi is very driven and has started a company called the Frugal Athlete which he hopes will be the go-to place for athletes to find resources that help them make smarter financial decisions. Amobi knows there have been too many athletes that have lost all their money, so we get into that and how he's trying to help. I think I’ve talked long enough, lets just get into this special episode, I think you will enjoy it. Here's my conversation with Amobi Okubo. Connect with Amobi A Frugal Athlete [https://www.afrugalathlete.com/] Twitter [https://twitter.com/amobisays]

Buying a Business for Retirement Income with David Barnett

On today's show, I talk with David Barnett, who is an expert in buying and selling business.  I wanted to come at the conversation from the angle of buying a business as an income generating asset in retirement. He had a lot of wisdom to share. We cover: * How did David become an expert in buying and selling "main street" businesses? * Should you buy or sell a business in retirement? * Aligning your business venture to your interests * Why buying a business and being "hands-off" is an unrealistic expectation * Don't be fooled by the promise of buying an "absent-owner" business * There is a lot more to owning a self-serve car wash than just collecting quarters * What are the most important things to think about when buying a main street business * Why do you need to make a proper cash flow projection * Three components of the typical financing for main street business transactions * Red flags when buying a business * How Seller Financing can help foster a successful transition * The fragile nature of businesses * Does the goodwill of a business reside with the business or the owner? Connect with David * YouTube [https://www.youtube.com/channel/UCbR8hQfFxBI4Idh4Zw65yZQ] New Website! The Invest Smarter Podcast has a new website! Go to www.investsmarterpod.com [https://www.investsmarterpod.com/] to check it out. You can subscribe to our newsletter right from there and get our eBook, "Successfully Navigating the Market Cycle. Connect with David DeWitt * Subscribe to the Invest Smarter Newsletter [https://www.investsmarterpod.com/] (Bottom of the page) * Connect on LinkedIn [https://www.linkedin.com/in/daviddewittdcm/] * Get a Free Financial Assessment [https://www.dewittcm.com/free] If you received any value from this podcast, please leave us a 5-star review on Apple! * Leave a review! [https://podcasts.apple.com/us/podcast/id1511050235?mt=2&ls=1]

Is Inflation Suffocating your Cash? Here's how to Combat It.

Today I talk about inflation. Specifically, I talk about where we stand today with inflation, reasons it may subside, and reasons it may continue. I then discuss why it is so damaging to our wallets and cover the specific ways we can combat inflation. Outline of the show Where do we stand with inflation? [1:25] How inflation hurts our wallets [11:45] How to combat inflation [15:00] Where do we stand with inflation? Inflation is currently running hot. The last official reading was 5.4% year over year. We've certainly seen much higher inflation at the grocery stores and the pump. The question is, are we going to have sustained high inflation, or will it subside? I talk about a few reasons for both outcomes. How inflation hurts our wallets Inflation is terrible for cash. It eats away at the value of our money. If you have $100,000 in the bank, and over the next twelve months, the price of goods inflates by 5%, you effectively are left with 95,000 dollars. That is the problem will inflation. How to Combat Inflation Starting from super conservative to adding on some risk, I cover the options to put our cash in places that will protect us better from inflation. From high-yield savings accounts to stocks, I talk about several choices we have. Articles Mentioned in the Show * Artificially Low Rates Are Risky, Says Howard Marks [https://www.bloomberg.com/news/videos/2021-10-19/this-investment-cycle-was-like-a-meteor-hitting-earth-says-howard-marks-video] *  US CPI Inflation Metric Rises 0.4% in September, More Than Forecasted [https://www.businessinsider.com/inflation-cpi-september-price-growth-index-economic-data-delta-wave-2021-10] * Food Industry Execs: Inflation Could Worsen Yet - The Food Institute [https://foodinstitute.com/focus/food-industry-execs-inflation-could-worsen-yet/] * Here Are Six Reasons Why Inflation Will Not Be Transitory [https://www.forbes.com/sites/adamstrauss/2021/07/30/here-are-six-reasons-why-inflation-will-not-be-transitory/?sh=1d563bc959ca] New Website! The Invest Smarter Podcast has a new website! Go to www.investsmarterpod.com [https://www.investsmarterpod.com/] to check it out. You can subscribe to our newsletter right from there and get our eBook, "Successfully Navigating the Market Cycle. Connect with David DeWitt * Subscribe to the Invest Smarter Newsletter [https://www.investsmarterpod.com/] (Bottom of the page) * Connect on LinkedIn [https://www.linkedin.com/in/daviddewittdcm/] * Get a Free Financial Assessment [https://www.dewittcm.com/free] If you received any value from this podcast, please leave us a 5-star review on Apple! * Leave a review! [https://podcasts.apple.com/us/podcast/id1511050235?mt=2&ls=1]

Why and How to Start a Roth IRA for your Child | Should You Wait for a Dip to Buy Stocks?

Today we talk about Roth IRAs for your kids and why you shouldn't wait for a dip to invest. Outline of the Show Roth IRA for you kids [4:06] Don't wait for the dip [14:00] On today's show, we talk about why and how to open a Roth IRA for your child. Roth IRAs are super powerful. You put after-tax dollars into it, and you take the money out tax-free in retirement when you are over age 59 ½. Now if you have kids, I want you to consider opening a Roth IRA for them. And let me tell you why. Here are a couple of reasons: Education Opening a Roth IRA for your child can help them become smart with their money. You can have them engage in investment decision-making. Maybe they are really into video games. You can have them invest in the companies that make their favorite games. Maybe your daughter loves fashion. You can research fashion companies to invest in. The Power Of Compounding This is also a great way to teach your child the power of compounding. Show them how much their summer earnings could grow by investing it instead of spending it. We go in this and much more on today's show. Listener Question Michael wants to know if he should wait for a dip to put money to work. I break down my answer for him and illustrate why I think waiting for a correction is the wrong way to go about it. New Website! The Invest Smarter Podcast has a new website! Go to www.investsmarterpod.com [https://www.investsmarterpod.com/] to check it out. You can subscribe to our newsletter right from there and get our eBook, "Successfully Navigating the Market Cycle. Articles Mentioned in the Show * Time Horizon is Everything [https://awealthofcommonsense.com/2021/10/time-horizon-is-everything-for-investors/] * Personal finance legislation [https://www.cnbc.com/2021/06/03/25-states-have-introduced-personal-finance-education-bills-this-year.html] * Financial Literacy Study [https://www.nefe.org/_images/research/Effects-of-K-12-Financial-Education-Mandates/Effect-State-Mandated-Fin-Ed-June25-2018.pdf] Connect with David DeWitt * Subscribe to the Invest Smarter Newsletter [https://www.investsmarterpod.com/] (Bottom of the page) * Get a Free Financial Assessment [https://www.dewittcm.com/free]

Does Bitcoin Provide Portfolio Diversification? | Why are Rising Rates Bad for Tech Stocks?

Rising rates, in theory, are bad for tech stocks. Is that always true? I dive in with the help of a recent article from Ben Carlson. Next, I look into how adding a bit of bitcoin to your portfolio could mean you are investing like a Nobel Prize-winning economist. Finally, we answer a listener's question about retiring early before a feared financial disaster in the economy. Outline of This Episode [] Are rising rates bad for tech stocks? [] Can Bitcoin help you diversify your portfolio? [] What should Steve think about retiring early while he also fears a market crash? Why are Rising Interest Rates Bad for Tech Stocks? This year, there is a definite relationship between rising rates and falling stock prices. The other day, Ben Carlson put out a great piece on his blog showing the inverse relationship between yields and the QQQ, which is the 100 biggest stocks in tech-heavy NASDAQ. Sure enough, in 2021, rising rates have equaled weakness in the QQQ. Why is this happening? In theory, it's all about cash flows. Every single financial assets valuation is equal to the present value of future cash flows. To come up with a present value of future cash flows, you discount that future cash flows at prevailing interest rates (or some variation of it depending on the asset class). The higher the discount rate, the lower the present value. Can Bitcoin help you diversify your portfolio? What do Bitcoin and legendary economist Harry Markowitz have in common? They both advocate for modern portfolio theory. At least Bitcoin has up until now (that is subject to change without notice!). Modern Portfolio Theory says that a rational investor should choose an optimal portfolio that maximizes return but doesn't take too much risk. While Bitcoin on its own has the volatility that would make even the staunchest investor quake, when added modestly to a portfolio, it has displayed positive contributions to portfolios as a whole. Steven has a Question Steven asks whether he should consider delaying his early retirement because he has been reading articles and fears a financial crisis could be around the corner. Without speculating on the odds of a crisis, I attempt to help Steven think through some considerations and ultimately recommend that he may be well served to speak with a planner who can stress test his financial plan. Articles Mentioned * Why it is wise to add bitcoin to an investment portfolio [https://www.economist.com/finance-and-economics/2021/09/25/why-it-is-wise-to-add-bitcoin-to-an-investment-portfolio] * Are Rising Interest Rates Bad For Tech Stocks? [https://awealthofcommonsense.com/2021/09/are-rising-interest-rates-bad-for-tech-stocks/] Connect with David DeWitt * Subscribe to the Invest Smarter Newsletter [https://www.dewittcm.com/subscribe] * Get a Free Financial Assessment [https://www.dewittcm.com/free] Subscribe to the Invest Smarter podcast on your favorite platform Apple Podcasts [https://podcasts.apple.com/us/podcast/invest-smarter/id1511050235?uo=4], Spotify [https://open.spotify.com/show/11D4u97fB8KlKeRpxsbm67], Google Podcasts [https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xMzFiMzRkNC9wb2RjYXN0L3Jzcw], or Castbox [https://castbox.fm/channel/4526028?utm_campaign=ex_share_ch&utm_medium=exlink&country=us]