If you watch Brian and Bo's Money Guy Show, you can also just simply follow the FOO (Financial Order of Operations). Whether you have a regular job, a business, or whatever your income is, the FOO still applies. Deductibles, Matches, High interest debt, Emergency, Roth/HSA, Retirement Max, Taxable Brokerage, Pre-paid future expenses (529 etc.), Low interest debt (e.g. mortgage). Giving fits somewhere in taxable and future expenses.
I'd argue you should fund HSA before Roth IRA to minimize your tax liability assuming we're talking about post tax Roth conversions. Roth IRA is great if you have 7k burning a hole in your pocket that you don't otherwise need for anything
You said the Avalanche Method backwards. You want to line debts up from highest to lowest, not lowest to highest. Paying off the highest first gets rid of your debts fastest.
Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 100k to a decent 540k in the space of a few weeks... I'm especially grateful to Milton Harper, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..
Milton's analyses delve deeper than surface-level trends, encompassing technical, fundamental, and sentiment analysis to offer a comprehensive view of the market.
SE also needs to be careful about not overspending during those really good months/weeks😝 And, Renters Insurance if you're not a homeowner... I'll never rent again without it! ❤️♾️❤️😎
Question about cash… why so much money completely in cash? This recommendation seems to be universally 6-12mo, and everyone always says cash… But would it be ok to have, say 3 months cash and 9 months in a money market account or CDs? I have a hard time coming up with a scenario where you’ll need that money faster than 90 days.
When UA-camrs (& financial planners) say "cash," they mean "cash and cash equivalents" -- it's just awkward to always be saying the whole thing. The two requirements of a "cash" investment are 1. Liquid, thus easily accessible and 2. Not subject to market risk. Any investment that meets those requirements is acceptable. Money market mutual funds fit this category. I'm not a fan of a CD ladder because I've been burned by needing the cash early and having to pay a penalty. Right now money market mutual funds seem to be beating everything. (At least of the options I know about.) Another option that could work (although it doesn't earn as much as a money market fund right now) is T-bills. You could buy T-bills that will mature within a few months (T-bills are all of short duration anyway). If you have to sell them, there is a ready market. You lose the spread, but you don't have to pay an outright penalty. T-bills are bought using a discount, so there is no accrued interest as there is with T-Notes and T-Bonds -- that makes it less confusing to figure out the price of the securities when you want to buy them.
Since this is focused on self-employed people Tae pointed out their client base may be subject to large impactful negative changes. Also, their cash flow may be very irregular. 12 month in a high interest saving account or a CD ladder gives the self-employed enough time to recover from a lost major client or very slow payment.
@@martinyeager7948 isn’t that what I proposed in a nutshell? He said straight up cash in his video and I am just asking if traditional ”risk free” is an ok alternative for some of it. I get it that you don’t want to have anything that might be illiquid but just how liquid does it need to be, and why?
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Great video! Navigating finances as a self employed person is so hard and expensive!
If you watch Brian and Bo's Money Guy Show, you can also just simply follow the FOO (Financial Order of Operations). Whether you have a regular job, a business, or whatever your income is, the FOO still applies. Deductibles, Matches, High interest debt, Emergency, Roth/HSA, Retirement Max, Taxable Brokerage, Pre-paid future expenses (529 etc.), Low interest debt (e.g. mortgage). Giving fits somewhere in taxable and future expenses.
I pity the FOO
People, money is your life energy.
Only the real ones know this.
Well presented in a concise but thorough form. Easy to listen to with good graphic information. Thank you.
Great info 👍 👌 👏
I'd argue you should fund HSA before Roth IRA to minimize your tax liability assuming we're talking about post tax Roth conversions. Roth IRA is great if you have 7k burning a hole in your pocket that you don't otherwise need for anything
Can you please talk about cash-balance pension plans as tax advantaged investment vehicles for self employed?
Thank you for your videos
You said the Avalanche Method backwards. You want to line debts up from highest to lowest, not lowest to highest. Paying off the highest first gets rid of your debts fastest.
Thank you
You mentioned you like to have some mortgage debt. Can you please explain why? Thanks for your great videos.
Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 100k to a decent 540k in the space of a few weeks... I'm especially grateful to Milton Harper, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..
Milton Harper program is widely available online..
Nice info, i appreciate your concern this will help a lot especially to the young investors who have no or lesser knowledge on how the market works.
Productivity is never accidental; it is always the result of careful planning, dedication, and consistency.
Milton's analyses delve deeper than surface-level trends, encompassing technical, fundamental, and sentiment analysis to offer a comprehensive view of the market.
Best signal provider in the market. Knowledgeable, level headed no loss like some other traders who recently jumped on the bandwagon.
can I know which tool you using for make presentation slides ?
SE also needs to be careful about not overspending during those really good months/weeks😝
And, Renters Insurance if you're not a homeowner... I'll never rent again without it! ❤️♾️❤️😎
Thank you, Sir! Much obliged.
Forgot the DAF, bro! I just opened one on your advice.
Is a SEP/ Solo401 tax deferred? Any response is appreciated
Question about cash… why so much money completely in cash? This recommendation seems to be universally 6-12mo, and everyone always says cash… But would it be ok to have, say 3 months cash and 9 months in a money market account or CDs? I have a hard time coming up with a scenario where you’ll need that money faster than 90 days.
When UA-camrs (& financial planners) say "cash," they mean "cash and cash equivalents" -- it's just awkward to always be saying the whole thing. The two requirements of a "cash" investment are 1. Liquid, thus easily accessible and 2. Not subject to market risk. Any investment that meets those requirements is acceptable.
Money market mutual funds fit this category. I'm not a fan of a CD ladder because I've been burned by needing the cash early and having to pay a penalty. Right now money market mutual funds seem to be beating everything. (At least of the options I know about.) Another option that could work (although it doesn't earn as much as a money market fund right now) is T-bills. You could buy T-bills that will mature within a few months (T-bills are all of short duration anyway). If you have to sell them, there is a ready market. You lose the spread, but you don't have to pay an outright penalty. T-bills are bought using a discount, so there is no accrued interest as there is with T-Notes and T-Bonds -- that makes it less confusing to figure out the price of the securities when you want to buy them.
Since this is focused on self-employed people Tae pointed out their client base may be subject to large impactful negative changes. Also, their cash flow may be very irregular. 12 month in a high interest saving account or a CD ladder gives the self-employed enough time to recover from a lost major client or very slow payment.
@@martinyeager7948 isn’t that what I proposed in a nutshell? He said straight up cash in his video and I am just asking if traditional ”risk free” is an ok alternative for some of it. I get it that you don’t want to have anything that might be illiquid but just how liquid does it need to be, and why?
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