May 24, 2019
We live in an era of hot takes; that is to say, strong opinions.
Without becoming too controversial, Joel shares his opinions on
certain topics and explains whether they're overrated or underrated
What You'll Learn:
00:41 – Sell In May, And Go Away!
- It's an old saying meaning, "Don't expect the market to do well
the rest of the year, especially over the summer."
- Joel explains whether there's any truth to this saying.
- Remember, market timing doesn't work. You need a long-term
2:40 - Variable Annuities; Overrated Or
- It depends on who you're asking. Many people are pushed into
buying variable annuities and end up being stuck with high fees and
- Variable annuities are the ones you probably hear about the
most, but there are other types of annuities that could be useful
depending on your situation.
3:52 - Fireworks; Overrated Or Underrated?
- We pause for a heartwarming story Joel shares about growing up
watching fireworks at the park.
4:38 - Paying Off Your Mortgage Early; Overrated Or
- From an analytical standpoint, Joel shares why it's probably
overrated. Most people in retirement would be better off to have a
mortgage with a low interest rate.
- Retirement is more than numbers. Some people like the peace of
mind that comes from knowing they'll have no debt in retirement.
This is important to consider as well.
6:23 - Roller Coasters; Overrated Or
- Most definitely underrated! Joel shares a story about his bout
with the Colossus as a teenager.
7:00 - Sushi; Overrated Or Underrated?
- We quickly learn of Joel's personal distaste for raw fish.
7: 36 - Tax Refunds; Overrated Or
- Getting a tax refund just means you've loaned the government
money throughout the year, and you haven't earned any interest on
it. Large tax refunds are most definitely overrated.
9:46 - Roth IRAs; Overrated Or Underrated?
- Roth IRAs are underrated. Joel explains why that money is
- Roth IRAs allow you to pass wealth to your heirs,
12:38 - Implications Of The Trade War
- Joel explains the implications for the ongoing trade war with China.
- We're due for a market correction or recession. When the market
stumbles, people like to blame various events and people. However,
it's really normal for Wall Street to cycle between bull and bear
markets. That's why we stress the importance of being financially independent from Wall
16:02 - Mailbag - How To Use An Inheritance
- Jacqueline is about to sell a farm she inherited. She wants to
know whether to use the proceeds to pay off her mortgage or invest
the money and use investment income to pay off the house
- Joel explains why Jacqueline needs to assess how she feels
about debt, and why carrying mortgage debt isn't necessarily a bad
17:45 - Mailbag - Paying For College
- Richard wants to know whether he should be doing anything other
than investing in 529 plans to save for his kids for college
- Joel explains how 529 plans work and why they're a great tool
for saving for college.
20:48 - Mailbag - A New Advisor
- Lillian is considering a new advisor. She only wants to put
half of her wealth with the new advisor because she thinks it'd be
good to have multiple perspectives. She wants to know whether it's
a good idea.
- Unfortunately, this is not a good idea. You wouldn't play one
doctor against another, and you shouldn't risk complex and
conflicting opinions from multiple advisors.
“Now is your time to get across the finish line to retirement.
The worst thing that can happen is that your retirement plans are
blown up by poor investments or a lack of a financial plan.” – Joel
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For further exploration of this topic and additional resources,
check out our blog here: https://johnsonbrunetti.com/overrated-or-underrated/