Ep. 40 Launch Financial- Does Money Buy Happiness with David Pearl

Overview:

Tune into this week’s episode of Launch Financial as we are joined by recurring special guest, Music City Pysch’s, David Pearl. We brought David on this week to discuss the question, “Does Money Buy Happiness?” David helps us define the meaning of money, how money can impact an individuals “happiness”, and how to be intentional about your spending.

Some more about David, he aims to provide a safe and supportive environment to strengthen self-esteem and facilitate more meaningful connections with family, friends, professional colleagues, or teammates.

David obtained his Master’s degree from The Silver School of Social Work at NYU and his Bachelor’s degree in Human Development and Family Studies from the University of Wisconsin-Madison. He is formally trained in Acceptance & Commitment Therapy (ACT), and has certifications in Imago Relationship Therapy and Prepare/Enrich Premarital and Marital Counseling. David is dual licensed in New York and Tennessee, and works with clients on an ongoing basis in both locations.

Prior to founding Music City Psych in Nashville, TN, David provided psychotherapy and performance coaching at Union Square Practice in NYC, counseling to individuals, couples, and families struggling with hematologic cancers at Mount Sinai Hospital, as well as psychodynamically oriented individual and couples counseling at The National Institute for the Psychotherapies (NIP).

What You’ll Learn: 

  • What money means to you
  • How money defines your happiness
  • How to be intentional about your spending
  • How inflation is impacting your family situation

Show Notes:

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Looking For Clarity About Your Equity Compensation At Work?

What is employee equity compensation? Equity compensation is non-cash pay that is offered to employees that many companies offer. While it might be clear to some, most people don’t fully understand the types and true meaning of their equity compensation. So let’s dive in. 

There are a few types of equity compensation that can be given to employees, such as stock options, ESPPs (employee stock purchase plans), and restricted shares. Further more, there are a few different types of stock options that people talk about being, Nonstatutory Stock Options (NSOs) and Incentive Stock Options (ISOs). Restricted stock is stock  that is not completely transferable until its rules have been met. Each of these options and stocks have different rules, characteristics, and caveats, so it’s important to inquire about each before making any decisions about them.

Can your equity comp harm you? Can it benefit you? Having equity comp means you are investing in the company which you work for, which hopefully means they are a good investment to take on. However, oftentimes owning too much can dilute your portfolio and bring on too much risk. If this is the case, you may want to speak to a financial professional to see if selling some of your stock or purchasing other types of assets is in the best interest of your portfolio.

It’s important to understand your your situation. The more information you have, the better you will be able to understand your equity compensation. 

Equity compensation can oftentimes be tricky and complicated, so it’s very important to discuss your particular situation with a financial professional to ensure you are making the most out of your investments. If you have equity compensation and have questions on what steps should be taken, email us at info@shermanwealth.com or schedule a 30-minute introductory meeting here. 

Investopedia 100 Top Financial Advisors of 2021

One of the core reasons I started the company was because financial literacy and empowerment was lacking in the US education system and big firms made you believe unless you had a lot of investable assets, finding conflict-free financial advice was impossible. Investopedia is a fantastic website full of educational resources and is doing such great work to bridge the financial literacy gap across the country. We are honored to be included in their 2021 top 100 list of financial advisors who are breaking barriers and pushing the ball forward in terms of financial literacy and empowerment of financial education.

The Investopedia 100 celebrates financial advisors who are making significant contributions to critical conversations about financial literacy, investing strategies, life-stage planning and wealth management. With more than 100,000 independent financial advisors in the U.S., the Investopedia 100 spotlights the country’s most engaged, influential, and educational advisors. Brad Sherman has been named to this list for the third year in a row.

About Investopedia

Investopedia is the world’s leading source of financial content on the web. They help investors understand financial concepts, improve investing skills, and learn how to manage their money.

Disclaimers

Investopedia’s proprietary methodology focuses on awarding financial advisors who have demonstrated a top-of-the-industry ability to reach the largest and most diverse financial and investing audience. That reach is measured by the impact and quality of the advisor’s published work, public appearances, online following, and commitment to financial literacy across diverse communities. The 2021 Investopedia 100 also heavily weighed peer-to-peer nominations, highlighting the most influential advisors who were recommended by their peers. We receive no compensation from placing advisors on our list, nor does an advisor’s appearance on our list constitute an individual endorsement by Investopedia of such advisor.

Awards, third-party rankings and other recognitions are not indicative of future performance. Awards and other recognitions should not be interpreted as a guarantee or suggestion that a client or prospective client will experience a certain level of results if our firm is engaged, or continues to be engaged, to provide investment advisory services, or as an endorsement of our firm by any past or present client. Neither Investopedia nor any of its associates are affiliated with Plancorp, none of the awards or other recognitions are based on client evaluations of our firm, and we have not made any payments for or in anticipation of any award or other recognition.

Mistakes To Avoid As A First-Time Home Buyer

Purchasing your first home is an amazing accomplishment and a big milestone in your life. That being said, oftentimes, most first-time home buyers face many difficulties and even make mistakes. We want to discuss common mistakes that these first-time homebuyers make and how you can learn from them. 

  1. Not Thinking About Home Ownership Costs

While you probably saved up a large chunk of money to use towards the down-payment of your house, you may not have been thinking about the costs of these other pieces of owning a house. 

  • Repairs
  • Home maintenance (homeownership issues)
  • Furniture
  • Lawn equipment
  • Misc. Items

2. Only Paying the Minimum 

While some people try to avoid putting more money down for their down payment, they often regret it after-the-fact. Mortgage payments and daily life expenses can add up, so its good idea to pay as much off as quickly as you can. 

3. Not Having An Emergency Fund 

Another mistake home-buyers make is not having an emergency fund. We know buying a house can be daunting, but it’s important to always be prepared for an emergency regardless. At Sherman Wealth we recommend building an emergency fund that can cover your monthly expenses in case of an emergency or termination of income.

4. Not Understanding How Refinancing Works

As the market volatility continues and interest rates fall, it’s important to understand and consider refinancing. Especially given the current environment, you should think about refinancing in order to save some money and to get you one step closer to becoming debt free. 

We know purchasing your first home can be an overwhelming and intimidating process, which is why you should not have to do it alone. Discuss with mortgage and financial professionals to help map out your situation prior to making the big purchase. If you have any questions, email us at info@shermanwealth.com.

Advance Child Tax Credit Payments in 2021

There has been Important changes to the Child Tax Credit  that will help many families get advance payments of the credit starting this summer. The IRS will pay half the total credit amount in advance monthly payments beginning July 15. You will claim the other half when you file your 2021 income tax return. These changes apply to tax year 2021 only.

To qualify for advance Child Tax Credit payments, you — and your spouse, if you filed a joint return — must have:

  • Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; or
  • Given us your information in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool; and
  • A main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the year; and
  • A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; and
  • Made less than certain income limits.

The IRS will use information you provided earlier to determine if you qualify and automatically enroll you for advance payments. You do not need to take any additional action to get advance payments. The IRS also just started an online tool that will allow families to tell the agency they don’t want to receive advance monthly payments from the enhanced child tax credit, scheduled to start next month. For more information, head directly to the IRS website here. We will continue to follow and report on any further information released about the matter. If you have any questions for us and your particular situation, reach out to your tax professional or please email us at info@shermanwealth.com. 

 

Ep. 38 Launch Financial- Navigating The Current Insurance Environment as a Young Professional with Matthew Friedson

Tune into this week’s episode of Launch Financial as we are joined by Senior Insurance Consultant at Greenberg, Wexler, & Eig, Matthew Friedson. During this episode, Matthew shares great tips for young professionals to consider as they think about purchasing life insurance. He walks the audience through the pros and cons they might encounter and how to make smarter decisions for their situation. 

A little more about Matthew, As a Life Settlements expert and a long time Insurance Consultant, Matthew Friedson offers his clients both perspective and confidence in managing their insurance portfolio and evaluating opportunities in retirement and life’s major events. Matt joined GWE as an Insurance Consultant in 2013. He holds his Series 6 securities license and is excited to help his clients find a retirement solution or an insurance fit for their business.

Matthew specializes in complex insurance applications of estate and business planning. His work consists of educating clients and helping them both develop and implement creative strategies to meet their objectives. Matthew has been voted by industry peers for the last five years (2017, 2018, 2019, 2020, 2021), Best Insurance Consultants in Washingtonian Magazine.

Matthew was born and raised in the Washington DC area. He is a graduate of the University of Maryland. He is a Board Member of The Jewish Federation of Greater Washington and University of Maryland Hillel. Matthew enjoys spending time with family, golf, yoga, travel and giving back to the community. For inquiries about the episode, reach out to info@shermanwealth.com. 

 

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Your Estate Planning Checklist

Most of us might not think we have enough money to be eligible and qualified to have an estate plan. But just know that it’s never too early to plan to protect your assets and estate. Your estate plan will help clarify your wishes for after your death and simplify an already difficult time. While these decisions are often-times difficult and not always top-of-mind, we have created a checklist that will help simplify the process for you. 

  1. Last Will and Testament 

A last will and testament is a legal document that states one’s wishes as to how their assets and property is to be distributed after their death and as to which person is to assume and manage those responsibilities.

  1. Powers of Attorney

Choosing your powers of attorney is a crucial part of estate planning, as you are deciding who will be handling your affairs for if and when you become incapacitated. For example, if you are no longer able to handle your assets, you can designate that role to someone else for them to act on your behalf.

  1. Advance Directive 

An Advance Directive or a Living Will, is a document that allows you to chose the more medical related decisions for once you are incapacitated. By establishing this, whoever you chose will know how to respond to your doctors based on your health care wishes. 

These are just a few documents and matters you should be familiar with as you start thinking about estate planning. To explore all of the estate planning documents you will need in your specific situation, we recommend contacting an estate planning attorney or professional to assist you. Estate planning is not something you should take lightly; it takes thoughtful consideration about who will respectfully live out your wishes once you are gone. If you have any questions about how to make these decisions for your future, email us at info@shermanwealth.com and we are happy to discuss your options with you. 

 

 

Here’s How You Will Be Able to Locate Your Lost 401(k) Accounts and Pensions

Did you lose your company 401(k) when switching jobs? Well, you may be in luck.   There is a proposed retirement legislation that’s pending in Congress that will be proposing a “lost and found database to help locate those accounts”. 

As people change their jobs from one company to another — “the average is 12 jobs, according to one government study”,  they tend to lose their company retirement plans. “More than 16 million accounts of $5,000 or less remained in workplace plans from 2004 through 2013″, according to a report from the Government Accountability Office

The provision in the congressional proposal would create “an office at the Pension Benefit Guaranty Corp. to oversee and administer the lost and found program”. It would accept account transfers of under $1,000 from plans and would try to locate the owner. They also mentioned that people would have the ability to search for their missing plans in the database as well. 

“If the company has moved to South Carolina or New Zealand or wherever, or is now Company Z not Company X, the lost and found will have that information,” said Karen Ferguson, president of the Pension Rights Center, a consumer advocacy group. 

If you have an old 401(k) account or pension you are unable to track down, you first should contact your former employer to see if you can track it down. Hopefully soon this new plan pending in Congress passes in order to help millions across the country stay on top of their hard earned money. If you have any questions about your 401(k) and how to take the next steps if you have started a new job, please let us know at info@shermanwealth.com or schedule a complimentary 30-minute call here.