January 30th, 2006 Podcast from the Money Guy, J.Brian Preston, CPA CFP®, PFS

January 30, 2006

Episode #1 of Money-Guy.com Podcast



Articles of Interest:

Why Big Insurers Are Staying Away From This Year’s Hot Investment Product from the December 14th, 2005 Wall Street Journal by Jonathan Clements

Choosing a 529 College-Savings Plan: When It Makes Sense to Go Out of State from the January 4th, 2006 Wall Street Journal by Jonathan Clements

Additional Internet Resources:

College Savings Website with option analysis

Michigan Education Savings Program

Nevada / Vanguard 529 Plan

New York 529 Direct Plan

Utah Educational Savings Plan

Virginia / CollegeAmerica Plan (only purchase the F shares)

Georgia Higher Education Savings Plan (not mentioned in the article, but since most of my friends, family, and clients live in Georgia and could take advantage of the Georgia tax deduction I wanted to provide everyone with the link. The plan is very similar to the Michigan Plan that is managed by TIAA-CREF)

Five Best (IRS and Tax Planning Books) from the January 28th & 29th (Weekend), 2006 Wall Street Journal by Randy Blaustein

The Cash Back Card Face-Off from the January 28th & 29th (Weekend), 2006 Wall Street Journal by Ron Lieber

Additional Internet Resources:

Emigrant Savings Bank; Credit Card returns 1.25% on all purchases, but you have to keep a $10,000 money market account with their bank (in addition to offering a good cash back credit card this is a great bank to have a money market account with; they are currently paying 4.25%)

Fidelity Investments; Fidelity Investment Rewards Card that is attached to your personal investment account returns 1.50% (for every $5,000 you spend $75 is deposited into your Fidelity investment account) & the Fidelity Investments 529 College Rewards Card credits 2% to your Fidelity-managed 529 plan account

Bank of America Power Rewards card gives back a 2% statement credit once you have spent $50,000, but you get less if you spend less

Financial Chaos Topic for January 30th Podcast:

Retirement Planning and Building

True Financial Independence

After recording the Podcast on the importance of retirement planning I wanted to provide you with some suggestions:

ROTH IRAs are tremendous in saving for retirement because all of the earnings in your account accumulate completely tax free (meaning that when you retire you can pull money out of the account and thumb your nose at the IRS because you owe them nothing). For 2006 you can contribute up to $4,000 unless you are over 50 in which the government allows you an additional $1,000 Catch-up Contribution bringing your 2006 contribution limit to $5,000.

ROTH IRA providers that have great investment options and are down right cheap with no commissions:

Fidelity Investments


I also wanted to encourage you take full advantage of your retirement plan at work. If you are not participating at a minimum to receive the matching contribution from your employer you are throwing away free money. There are not too many things in life that are free so to pass on this benefit is only hurting yourself and your future retirement.

Please try to become a HYPER SAVER by putting away and saving between 15%-20% of your gross wages (that means before taxes and all of the other deductions that come out of your paycheck). Remember the average individual savings rate in America is actually a negative .5% (this is unacceptable and dangerous). Do the right thing and build financial independence and I promise that you will sleep better at night.


Most Recent Episodes

Top 4 Financial Mistakes We Saw This Year! (2022)

We saw some wild financial mistakes this year during the bear market. From making extreme changes to portfolio allocation, chasing the hot dot, and using too much leverage, we’ll talk about some of the biggest financial mistakes we saw in 2022 in this episode.   In...

How Millionaires Build Wealth! (With Dave Ramsey)

Join us for a very special episode as we welcome personal finance radio host and influencer Dave Ramsey to The Money Guy Show! There’s so much misinformation out there about building wealth. We had the pleasure of having a great conversation about how millionaires...

Do These 4 Things with Your Finances BEFORE 2023!

There are unique financial opportunities available at the end of the year - especially this year with the market down. In this episode, we’ll talk about what you need to do with your money BEFORE 2023! In this episode, you'll learn: What you need to do with your money...

How to Win When the Financial World is Burning!

Lately it’s felt like the financial world is in chaos, with rising interest rates, a falling stock market, and high inflation. Let’s talk about how to focus on what you can control and how to minimize the time spent worrying about what you can’t control. In this...

Financial Advisors React to RIDICULOUS Money Advice on TikTok!

The most powerful time to get serious about building wealth is when you’re young. So, what is the younger generation learning? Financial Advice (good and bad) is being produced in massive rates across online platforms and TikTok is the new frontier. Is there good...

Loss Harvesting: Why Wealthy People Love It (And You Should Too!)

Tax-loss harvesting: what is it and should you be doing it? In this episode, we’ll cover everything you need to know about tax-loss harvesting, including whether it makes sense for you, how much it could save you in taxes, and how to eliminate the downside of loss...

The Market is Crashing! (Where Should You Put Your Money?)

The stock market has not had a great year so far. You might be asking yourself, “Since the market is crashing, where should I put my money now?” In this episode, we’ll discuss how to invest when the market is dropping and how to make the most of your money. In this...

Will Rising Interest Rates Tank the Economy?!

The Federal Reserve is raising interest rates to combat inflation, and many are concerned about how it will affect the economy. In this episode, we’ll discuss what rising interest rates means for your wallet and how to make the best of it. In this episode, you'll...

How to Be Wealthy By Age! (Can You Catch Up?)

How much does it take for you to meet your retirement goals by age, and what are some common traps your peers fall into? Learn more about how to be wealthy, mistakes to avoid, and exactly what a little extra saving can do for your retirement income. In this episode,...

Can Money Buy Happiness? (Here’s the Truth)

Money and happiness aren’t directly correlated, but they are intertwined. Some believe that once they have a large, pie-in-the-sky amount of money, they will finally be happy. Others are working towards a more specific retirement number they hope will bring happiness....