Addiction and Money - E45 - a podcast by Fixed Cost Financial

Show NotesWe are traveling and this episode was recorded on the road. You do not need to wait until 70 1/2 to take money out of your IRA.Tax timing is a concept you must think about. Why? You want to pay taxes when the rates are low, not high.The failure to take enough our of your RMD (Required Minimum Distribution) will result in the tax plus a 50% penalty. Always take out more than the RMD to be safe.People actually forget about IRAs they have and thus there’s a problem with RMD calculations.Do you honestly think tax rates will be higher or lower in the next ten years?Define rich in terms of income and net worth.Buy low - Sell high - Pay taxes when rates are low.Go for tax advice to a professional accountant, not an insurance agent, investment advisor, broker, or jack-of-all trades financial planner.Phone use by children is a problem. Did you know that every school is dealing with the issue of burner phone dealers? You thought it was just drugs that they were dealing, wrong.Parents who do not know how to be parents. Both mommy, daddy, sis, and bro have phone addiction. No phone, name calling, and complete breakdown. Grow up and put the phone down.Use technology rather than allowing technology to use you.Sales pitches and alternative performance metrics being used by IPOs are not being bought by investors in the secondary market. If you are not profitable, why are you investing in the company? Shades of the 1999 tech bubble? Don’t be suckered by burn-rate pitches. You want a return of your money, then a return on your money.Beware of creative accounting methods.Focus on the bottom line.Guilt leads to spending more money. One has a problem and to feel better, the solution in the brain to make the pain go away is to spend more. Window shopping often leads to compulsive shopping. Like a drug, shopping is addictive. Pay in cash. In a world of digital everything, there’s a need to pay cash and keep it real. Addiction to drugs, alcohol, smoking, spending, and more. Who goes back to smoking and drinking after a heart transplant?50% of the population has an addiction issue of some type.Spending addiction will be an ongoing feature of Connecting Dots. Why do so many people have a spending problem? What are the common excuses? What are the neuroscience studies behind spending telling us?ADD - Concentration - Focus - You’re fired.Games, sporting events, sex, work, and spending. Some addictions are profitable others are not. Focus on those addictions that are profitable but balance life when possible. Mild to uncontrollable addictions.The survival addiction - yes, it’s needed.Those with and those without, who will you bet on?Wayne’s World - Not Worthy - We’re ScumModern Minimalist MethodsBlack, White, Gray Micro, Mezzo, Macro, Automatics, InstinctHigh Risk Investing - Pleasure & Pain - Related to Drug UseAssociated Power Rush - Love / Hate RelationshipInsecurityInvesting, Speculation, Gambling - Risk HighsPavlov’s Dogs - Tick Tock - Do you need to stab yourself?Stop the financial salivation. When you are in deep trouble, turn in to tune it out. Create the pain and shift the pleasure.Bonus FeatureClick on the blue Intercom button and we’ll invite you to our limited-run “Liquid Real Estate - Hands On” video presentation.

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