# Leading Edge Financial > Providing Your Flight Plan for Financial Freedom ## Posts ### Flight #139: Should You Change Your Investments When Markets Feel Overvalued?  When headlines are shouting about AI, market highs, and economic uncertainty, how do you know what deserves your attention and what is simply noise? In this episode, we unpack listener questions that many investors are quietly asking: Is the market overvalued? Should I be more conservative? What should I do when uncertainty feels overwhelming? Listen in to learn how financial planners think about market valuations, diversification, risk tolerance, and the temptation to time the market. We explore whether AI is creating a bubble, why all-time market highs aren’t necessarily a warning sign, what history tells us about downturns, and how investors can focus on the things they can actually control. Whether you’re worried about market volatility or simply want a calmer, more disciplined approach to building wealth, this episode offers practical insights to help you invest with greater confidence. What You'll Learn In Today's Episode: Why investors often feel overwhelmed by market news. How to focus on what you can and cannot control. What market valuations actually mean. Why diversification matters across different markets. How risk tolerance should influence investment decisions. Why market timing is so difficult to do successfully. What history tells us about market highs and downturns. How missing the best market days affects returns. Whether AI is creating an investment bubble. How to build a long-term investment strategy with confidence. Ideas Worth Sharing: “Control what you can control.” - Jonathan Groover “Time in the market is more important than timing the market.” - Jonathan Groover “Part of what it means to be an investor is to accept that we’re going to have down years.” - Jonathan Groover Resources In Today's Episode: Jonathan Groover: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #138: Hope, Courage and a Different Perspective on Life with Mike Penn  What can eight months in a North Vietnamese prison camp teach you about hope, courage and putting the rest of life into perspective? Former Navy pilot and Vietnam POW Mike Penn shares the extraordinary story behind his book, Hope and Courage, from the mission that led to his capture and his time in the Hanoi Hilton to the experiences that shaped his life long after he returned home.  Listen in to learn how Mike made choices in moments when he had very little control, how fellow prisoners used humor, connection and small victories to keep going, and why hope can be a decision rather than something that simply happens. The conversation also explores Mike’s journey before and after Vietnam, including his time as a police officer, Navy aviator and Southwest Airlines chief pilot, as well as the unexpected life experiences that ultimately led him to write his book. Along the way, you’ll gain a different perspective on money, adversity, purpose and the things that matter most.  What You'll Learn In Today's Episode: Why money is a vehicle, not the end goal.   How Mike chose to pursue Navy aviation.   What his early career experiences taught him.   How he survived being shot down in Vietnam.   What life was like inside the prison.   How prisoners held onto hope and small victories.   Why connection and humor mattered in captivity.   How Mike adjusted after returning home.   Why vulnerability can be part of resilience.  What ultimately inspired Mike to write his book.  Ideas Worth Sharing: “You become part of something greater, and that's the secret.” - Mike Penn  “Once you make a decision to live, everything becomes normal and you just do what you’ve got to do to keep living.” - Mike Penn  “You can’t sweat the small stuff.” - Mike Penn  Resources In Today's Episode: Mike Penn: LinkedIn Hope and Courage by Mike Penn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #137: Indexing 101 with DFA Rob Harvey What if the index fund you thought was simple was actually shaped by a complex set of rules, decisions, and trade-offs? In this episode, we sit down with Rob Harvey, Co-Head of Product Specialists and Vice President at Dimensional Fund Advisors, to unpack what indexing really means. You’ll learn how indexes are constructed, who actually makes the rules, how index funds are managed, and why “passive” investing may not be as passive—or straightforward—as it sounds. Listen in to hear why different indexes tracking the same part of the market can produce dramatically different results, what fees and tracking error mean for investors, and how rules around rebalancing, free float, profitability, and company size can affect what you actually own. Using real-world examples, including SpaceX and small-cap indexes, this episode will help you look beyond the label and better understand the investments sitting in your portfolio. What You'll Learn In Today's Episode: How index funds actually work.  The difference between active and passive investing.   Who creates index rules.   What tracking error means.   Why index funds underperform their benchmarks.   How companies enter and leave indexes.   Why free float matters.   Why “small cap” doesn't always mean small cap.   How index rules can affect returns.   Why investors should look beyond an index's label.  Ideas Worth Sharing: “There’s no such thing as a passive investor.” - Andy Christopher “Outperforming the index is actually a bad thing. You don’t want to do it.” - Rob Harvey “When you choose to invest in an index fund, you are guaranteeing yourself a permanent level of underperformance.” - Rob Harvey Resources In Today's Episode: Rob Harvey: LinkedIn Dimensional Fund Advisors The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #136: How Much is Enough? with Eric Hubbard What does it really mean to have “enough”? And how do you know when you’ve reached it? In this episode, we're joined by Eric Hubbard, paraplanner at Leading Edge Financial Planning, to explore the difference between reaching a financial number and finding true satisfaction in life. We also discuss how pilots can prepare for retirement, not just financially but also emotionally, by understanding what they’re retiring to, not just what they’re retiring from. Listen in to learn key financial considerations for FedEx pilots following the new contract agreement, including pay increases, retroactive payments, tax planning opportunities, and important retirement plan decisions. You'll hear about the psychology of wealth, the hedonic treadmill, and how to define your own version of “enough.” What You'll Learn In Today's Episode: How to define what “enough” means for you.   Why retirement requires emotional preparation too.   How to retire to something, not just from something.   Key financial impacts of the FedEx pilot contract.   Important tax considerations for large lump-sum payments.   How retirement decisions can affect your future.   Why wealth does not always create contentment.   How the hedonic treadmill keeps moving the goalposts.   Why gratitude is essential for financial freedom.  How intentional reflection can guide life changes.  Ideas Worth Sharing: “Solitude and boredom are good for the mind.” - Charlie Mattingly  “You retire to something, not necessarily from something.” - Charlie Mattingly  “You can have everything and still not necessarily feel that, but you can also have very little and truly be happy and grateful for what you have.” - Eric Hubbard  Resources In Today's Episode: Eric Hubbard: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #135: The Truth About AI: What It Can (and Can't) Do for Your Future with Dr. Jay Jay Billings  Is artificial intelligence really replacing jobs, or is it simply changing the way we work? In this episode, Dr. Jay Jay Billings, CEO and co-founder of Band Gap, cuts through the hype surrounding AI to explain what it actually is, where it's already transforming industries, and why many of the biggest headlines miss the point. You'll learn the difference between traditional AI and today's large language models, how organizations are using AI to solve real-world problems, and why putting customer needs first—not the technology—is the key to successful innovation.  Dr. Jay Jay Billings also explores some of the biggest questions surrounding AI, including whether it will replace jobs, how it can improve everyday life, and the risks of relying too heavily on AI-generated information. From practical advice for beginners to insights into the future of work, this conversation offers a balanced, accessible look at artificial intelligence and what it means for businesses, professionals, and anyone wanting to stay ahead in a rapidly changing world.  What You'll Learn In Today's Episode: The difference between traditional AI and generative AI.  How AI helps businesses solve real-world problems.  Why customer-first thinking matters in AI.  Practical ways AI can improve everyday life.  Common misconceptions about artificial intelligence.  Whether AI will replace jobs.  How to start using AI with confidence.  The benefits and limitations of AI chatbots.  Why AI-generated recommendations need scrutiny.  How to future-proof your career in an AI-driven world.  Ideas Worth Sharing: "If you're creating happy customers, you're going to have a job." - Dr. Jay Jay Billings  "The important thing is to find something that you're good at and focus on doing it well." - Dr. Jay Jay Billings  “AI is a toolkit, and it can't do everything.” - Dr. Jay Jay Billings  Resources In Today's Episode: Dr. Jay Jay Billings: LinkedIn | Website The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #134: Cutting Through Market Noise and Investing with Confidence How do you stay focused when the headlines are shouting one thing, but the markets are doing another? In this quarterly market update, we unpack the biggest investment stories shaping the second quarter, helping investors separate fact from fiction. You'll learn what drove one of the strongest quarters for U.S. markets in years, why diversification is making a comeback, and what the latest economic data really means for your portfolio. We also break down the hype surrounding the SpaceX IPO, explain why investors should be cautious of speculative investments, and explore the relationship between inflation, interest rates, AI, and market performance. Whether you're trying to understand today's economic environment or become a more disciplined long-term investor, this episode provides practical insights to help you make better financial decisions with confidence. What You'll Learn In Today's Episode: What drove the strong second quarter.   Why diversification still matters.   Lessons from the SpaceX IPO.   How AI is impacting markets.   What consumer sentiment reveals.   How inflation affects investing.   The Fed's role in interest rates.   Why speculation can be risky.  How markets price in news.  Tips for long-term investing discipline.  Ideas Worth Sharing: “Businesses are making money right now. In the long run, that's really where stock market returns come from—corporate profits. There's always noise, but profitability is what ultimately drives markets.” - Charlie Mattingly “It elicits a lot of emotions when all this excitement is going on. That's where, as a disciplined investor, you've got to recognize there's a lot of hype and look at the data before making decisions.” - Charlie Mattingly "The market doesn't move because of one headline. It's hundreds, thousands, even millions of different factors influencing prices every single day. That's why it's so dangerous to oversimplify what's happening." - Andy Christopher Resources In Today's Episode: The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #133: 7 Money Moves That Can Help, Hurt, or Trap You What if the most “sophisticated” money moves you’ve been hearing about online are actually the least helpful for building real wealth? In this episode, we break down seven financial strategies that sound impressive on the surface but can range from genuinely useful tools to misleading traps or outright scams. From viral currency schemes to complex products like structured notes and annuities, the conversation is all about cutting through financial noise and focusing on what actually works.  You’ll learn how to spot red flags in investment pitches, understand the real trade-offs behind popular financial products, and recognize when complexity is being used to sell rather than serve. The episode also explores why “sophisticated” doesn’t always mean “smart,” how algorithms shape financial beliefs online, and how to think more clearly about risk, return, and simplicity when building long-term wealth.  What You'll Learn In Today's Episode: Why currency revaluation schemes are scams.  How online algorithms can reinforce dangerous financial beliefs.  Why “too good to be true” usually is.   How structured notes actually generate their returns.   The hidden risks and fees inside structured notes.   Why complexity is often used as a sales tactic.   The trade-off between yield and risk in “high-return” products.   Why liquidity matters more than most investors realize.   How annuities create guaranteed income streams.   When annuities can actually improve retirement spending confidence.  Ideas Worth Sharing: “There’s no free lunch in investing.” - Jonathan Groover “If it sounds too good to be true, it probably is.” - Jonathan Groover “Wealth does not emerge out of thin air.” - Jonathan Groover Resources In Today's Episode: A 13% Yield: What Could Go Wrong? The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas J. Stanley and William D. Danko The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #132: Blessing or Curse? How to Ensure Your Financial Gifts Help Without Hurting How can high-income professionals and first-generation millionaires support their adult children or grandchildren without creating a sense of entitlement? When does financial help empower the next generation, and when does it accidentally hold them back? In this episode, Charlie Mattingly sits down with Amelie Riendl, an Accredited Financial Counselor (AFC), to tackle the complex emotional and financial dynamics of giving to “adult-ish” kids. They break down the biological and psychological effects of giving, explore how to differentiate between helping and enabling, and offer a concrete blueprint of seven mindsets and practical strategies. From handling transition periods to matching down payments for a first home, this conversation cuts through the noise to help families build sustainable generational wealth. What You'll Learn In Today's Episode: Why financial support should also be viewed through a grandparent lens. How the hormone oxytocin creates trust during healthy gifting. Why establishing explicit strings attached to a gift destroys its benefits. The importance of giving strictly from a position of financial strength. How uneven financial distributions among siblings trigger deep family strife. Why solving every problem robs a young adult of self-efficacy. How to use matching gifts for milestones to teach financial lessons. Why first-generation millionaires need a game plan for raising kids. How putting names on specific family gifts fosters long-term gratitude. Why renting an apartment is often superior during early career transitions. Ideas Worth Sharing: “So, teaching them age-appropriate, you get to a point where you know that they're gonna be good with the money that you're giving to them, right? So I think if we teach them properly in the first place, then it will be a blessing for them and not a burden.” - Amelie Riendl “I think getting down to the root of the problem and helping to solve that would be more beneficial than a one-time fix because a one-time fix [is] not gonna help them for the long term.” - Amelie Riendl “If you help them this month with groceries, does it really help them in the long term? Does it solve the problem? I think getting down to the root of the problem and helping to solve that would be more beneficial than a one-time fix.” - Amelie Riendl Resources In Today's Episode: Amelie Riendl: LinkedIn “How to Help Your Child Buy a Home” by Jim Dahle The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas J. Stanley and William D. Danko The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #131: Do You Really Need an LLC? Tax Myths, Red Flags, and Business Structure Explained  What do pilots often get wrong about LLCs, taxes, and starting a business? And when does structure actually start to matter? In this episode, we break down some of the most common misconceptions around business formation, tax savings, and self-employment strategies for high-income professionals. Listen in to learn when an LLC is actually useful (and when it’s not), how tax savings really work across different entity structures like S Corps and C Corps, and why simply forming an LLC does not automatically reduce your tax bill. The conversation also dives into red flags the IRS looks for, as well as how pilots can think more strategically about side income, asset protection, and compliance without adding unnecessary complexity. What You'll Learn In Today's Episode: Why an LLC does not automatically reduce your taxes.  The real purpose of forming an LLC (and what it doesn’t do).   When S Corps may help reduce self-employment tax.   Why high-income pilots often see limited FICA tax savings.   The difference between tax avoidance and tax evasion.   How the IRS distinguishes a business from a hobby.   Why consistent losses can trigger audit risk.   Why record keeping matters more than software complexity.  How liability protection really works in practice.  Ideas Worth Sharing: “There are great stock prices, there are great returns, and there are great companies—and those three things are not necessarily the same thing.” - Andy Christopher  “LLC is a legal designation, not a tax designation. LLCs can be taxed in a variety of ways for tax purposes.” - Bailey Alleman  “The LLC itself is maybe not the tax saver that people believe.” - Bailey Alleman  Resources In Today's Episode: Andy Christopher: LinkedIn Bailey Alleman: LinkedIn Kevin Gormley: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #130: Help Looks Different for Everyone with Danielle Lewis What happens when you stop judging people by their circumstances and start seeing them as human beings first? In this powerful episode, Danielle Lewis shares her journey from her own upbringing to becoming the founder of Village Hope, serving the unhoused community in downtown Atlanta. Danielle opens up about the moment she realized she wanted to dedicate her life to helping people struggling with homelessness, addiction, and poverty, and why compassion often matters more than having all the answers. Throughout the conversation, Danielle shares inspiring stories from the streets, lessons she’s learned from people facing unimaginable hardships, and how her perspective on money, happiness, and generosity has completely changed over time. You’ll learn why “help looks different for everyone,” how meeting people where they are can create real impact, and why courage, empathy, and human connection are often the most powerful tools we have. What You'll Learn In Today's Episode: What inspired Danielle to help the unhoused community. The moment she knew this was her calling. How her upbringing shaped her perspective. Why she chose a different path from others around her. What life on the streets has taught her about people. Why addiction and homelessness are deeply complex. How her view of money and success changed. Why generosity doesn’t always require wealth. What “help looks different for everyone” really means. How empathy and courage can create real impact. Ideas Worth Sharing: “There is purpose in the pain.” - Danielle Lewis “I’m not afraid of losing it all because I don’t need a lot to be happy. I used to be motivated by not wanting to be poor and now I realize money isn’t everything.” - Danielle Lewis “Help looks different for everyone.” - Danielle Lewis Resources In Today's Episode: Danielle Lewis: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #129: What’s Really Moving the Markets Right Now What’s really driving the market right now, and are you paying attention to the right signals? In this episode, we break down what happened in the first quarter and unpack some of the global events quietly shaping investor sentiment, including the situation in Iran and how geopolitical tensions can influence market opportunities and risks.You’ll learn why trying to time the market rarely works, how recency bias can lead to poor decisions, and what diversification actually looks like in today’s environment. We also simplify big concepts like inflation, the role of the Federal Reserve, and the growing importance of private credit. Most importantly, this episode will help you refocus on what you can control when everything else feels uncertain.  What You'll Learn In Today's Episode: How global conflict impacts investing.  Why you can’t time the market.  The importance of diversification.  What recency bias is and how it affects decisions.  A simple explanation of inflation.  What the Federal Reserve actually does.  Why private credit is gaining attention.  How to think long-term in volatile markets.  What you can control as an investor.  Ideas Worth Sharing: “There are many reasons why you need to have diversity and diversification in your portfolio.” - Andy Christopher “You want to be a global investor.” - Andy Christopher “Focus on what you can control.”  - Charlie Mattingly Resources In Today's Episode: The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #128: Master Your Money Mindset for Long-Term Wealth with Jason Moore  What does it really take to be successful with money? And why do even high-income professionals still struggle? In this episode, you’ll learn why financial success has far less to do with knowledge and far more to do with behavior. Jason Moore, Certified Financial Therapist, breaks down the hidden patterns, biases, and emotional triggers that influence how we earn, spend, and invest, as well as how these can quietly derail even the most capable individuals.  Listen in to learn how industry-specific challenges (especially for pilots) can impact financial decision-making, and how to use the discipline, systems, and habits you already rely on in your career to build long-term wealth. From understanding authority bias to removing emotion from spending and using automation to your advantage, this conversation will give you practical ways to make smarter decisions and feel more in control of your financial future.  What You'll Learn In Today's Episode: Why behavior matters more than financial knowledge.   Common behavioral finance traps.   How emotional triggers impact spending.   Why high earners still struggle with money.  Industry-specific financial challenges for pilots.   What authority bias is and how it affects decisions.   How to choose the right financial advice.   The power of automation in building wealth.   How to remove emotion from purchases.  Why personal background shapes money habits.  Ideas Worth Sharing: “Behavior is how you build wealth, it’s not knowledge.” - Jason Moore “One mistake many people make is assuming that the same purchase made by two different people is for the same reason.” - Jason Moore “Go be a pilot and let your financial advisor be a financial advisor.” - Jason Moore Resources In Today's Episode: Jason Moore: LinkedIn Money Mixology Flight #118: Redefining Success, Struggle, and Purpose with Ryan Watson The Psychology of Money by Morgan Housel The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #127: Cutting Through the Financial Noise: Inflation, Energy, Bitcoin, and the Global Economy with James Angel There is a lot of financial noise right now, but what actually matters? In this episode, James Angel joins the show to cut through the headlines and explain what’s really happening with inflation, the strength of the U.S. dollar, global conflict, China’s economic impact, Bitcoin, stablecoins, and the future of the global economy.  Listen in to learn why energy is the foundation of the entire economy, how money printing leads to inflation, why the global economy is more connected than ever, and what makes today’s economic environment different from past recessions. We also discuss commodities like gold, the role of stablecoins and tokenization, and how everything in the economy—from costs to purchasing behavior—is connected.  What You'll Learn In Today's Episode: How to cut through financial and economic noise.  Why energy is the foundation of the economy.  What’s driving inflation right now.   Why printing money leads to inflation.   The importance of the U.S. dollar globally.   China’s impact on the global economy.   What makes this economy different from past recessions.   What stablecoins are and why they matter.  How gold and commodities follow economic cycles.  Where tokenization fits into the future of finance.  Ideas Worth Sharing: “We are locked into the global economy whether we like it or not.” - James Angel “Deglobalization might be dead.” - James Angel “Energy is the foundation of our economy.” - James Angel Resources In Today's Episode: James Angel: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #126: The Art and Science of Early Retirement for Pilots What does it really take to retire early as a pilot—and are you truly prepared for what comes next? In this episode, we break down both the financial strategies and emotional realities behind early retirement, specifically for those in aviation careers. You’ll learn the essential “science” of early retirement, including how to estimate your true spending needs, manage portfolio risk, plan distributions, and prepare for major costs like healthcare. But retiring early isn’t just about the numbers. It’s also about navigating a major life transition. We explore the emotional side of retirement, including the four phases most retirees experience, from the initial “vacation” feeling to eventual reinvention and purpose. Listen in to hear why many retirees feel lost after leaving their careers, how a hybrid or part-time retirement can ease the transition, and what it really means to “squeeze the juice” out of this next chapter of life. What You'll Learn In Today's Episode: How to estimate your true retirement spending needs.  Why understanding portfolio risk is critical before retiring early.  How to plan sustainable distributions from your investments.  The importance of having a clear investment game plan.  How to prepare for healthcare costs in early retirement.  Why a hybrid or part-time retirement can be a smart transition.  The four emotional phases of retirement.  Why many retirees experience a sense of loss after leaving work.  How to mentally prepare for life beyond your career.  What it means to maximize fulfillment in retirement.  Ideas Worth Sharing: “Most people spend 1/3 of their life in retirement.” - Nolan Clark “You have to know how much you're going to spend in retirement.” - Charlie Mattingly “The most challenging part of retirement is the first year.” - Charlie Mattingly Resources In Today's Episode: You Need to Be Bored. Here's Why. The Stock Market is Heartless The Four Phases of Retirement The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #125: What the Mind the Gap Study Reveals If you bought and held a mutual fund or ETF, what return should you earn—and why do some investors earn less? In this episode, we unpack the fascinating findings from Morningstar’s Mind the Gap study and explore the difference between total returns and actual investor returns. You’ll learn what the “investor return gap” is, why it exists, and how timing decisions, emotional reactions, and behavioral biases quietly erode performance over time. Listen in as we break down the real cost of fear of missing out, panic selling, and chasing trends and why understanding your own psychology may matter more than picking the “right” fund. We also discuss what thoughtful investing actually looks like in practice. By the end of this conversation, you’ll understand how to close the return gap and make decisions that support long-term success instead of short-term emotion. What You'll Learn In Today's Episode: What the investor return gap is. Total return vs. investor return explained. Why timing hurts performance. The cost of behavioral biases. How FOMO impacts investing. Why buy-and-hold often wins. What the Mind the Gap study reveals. How emotional decisions reduce returns. How to set realistic return expectations. How to invest with discipline. Ideas Worth Sharing: “There is a major cost to not knowing or understanding your behavioral biases.” - Charlie Mattingly  “We all have biases in life that serve us well; however, in the stock market, sometimes they don’t.” - Charlie Mattingly  “When it comes to investing, you have to be thoughtful about what is important to you, what your plan is and what you need to be successful.” - Charlie Mattingly  Resources In Today's Episode: Mind the Gap The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #124: Advanced Roth Strategies and New Changes  Are you missing opportunities to build tax-free retirement income? In Part 2 of this Roth series, we break down the latest changes and advanced strategies that could significantly impact your retirement plan. You’ll learn how the new Roth catch-up rules affect those 50 and over, what the Roth NEC means for high earners, and how the mega backdoor Roth works in practice. We cover the most common questions about backdoor Roths, including the pro-rata rule and why having other IRA balances could trigger an unexpected tax bill. You’ll find out when you may be heading toward a future “tax bomb,” how much you can defer into your 401(k), and why just because you can use a mega Roth strategy doesn’t always mean you should. What You'll Learn In Today's Episode: New IRS Roth catch-up changes.  How the Roth NEC works.  The 80% income deferral rule explained.  How the mega backdoor Roth functions.  Who should consider Roth contributions.  When estimated tax payments are necessary.  401(k) contribution limits and strategy.  Why Roth isn’t always the right answer.  Ideas Worth Sharing: “You have to live today, but you always have to plan for the future.” - Nolan Clark “Every financial decision is unique, so you do have to consider your own personal situation.” - Nolan Clark “Anyone, regardless of income, can contribute to an IRA. They just can’t deduct it from their taxes.” - Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn Nolan Clark: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #123: Roth Catch-Ups, NECs, and Smarter Airline Retirement Planning Recent changes to airline 401(k) plans—especially the Roth Nonelective Contribution (NEC) option—have created new opportunities and new confusion for pilots and airline professionals. In this episode, we break down what the Roth NEC actually is, how it works at airlines like Southwest, and why simply ignoring your elections could mean missing out on valuable catch-up contributions.  You’ll learn how much Roth might make sense for your situation, who should consider Roth (and who shouldn’t), and how to think about taxes without letting emotion drive the decision. We also walk through the catch-up rules, when Roth strategies help and how to balance today’s tax bill with your long-term retirement reality so you don’t end up worse off in retirement than you are now.  What You'll Learn In Today's Episode: What the Roth NEC option actually is.  How airline 401(k) changes affect you.  The difference between Roth and NECs.  How Roths are taxed today vs retirement.  The catch-up contribution rules explained simply.  What happens if you don’t make an election.  How much Roth may be appropriate.  When Roth strategies don’t make sense.  Ideas Worth Sharing: “There are many tools in the tool-shed to cover your particular financial goals and it’s important to consider them all.” - Andy Christopher “Tax is a very emotional issue.” - Charlie Mattingly “You don’t want to get to retirement worse off than you are right now in terms of taxes.” - Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn Andy Christopher: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #122: 2025 Market Review and Lessons Learned What can last year’s markets actually teach us beyond the headlines and noise? In this episode, we look back at the market lessons from the past year to better understand how markets behave and why short-term movements can be so misleading. Rather than trying to predict what comes next, this conversation focuses on learning from what already happened and why diversification remains one of the most powerful tools for managing risk. You’ll learn how behavioral finance impacts decision-making, especially during volatile periods, and why reacting to the most recent news can do more harm than good. We also explore practical ways to reduce stress around money, including limiting news consumption, practicing gratitude, and building an intentional financial plan that supports both your career and long-term retirement goals. What You'll Learn In Today's Episode: What last year’s markets can teach us today.  Why short-term market moves are unreliable signals.  How behavioral finance affects investor decisions.  Why diversification is essential for risk mitigation.  How to zoom out and see the bigger market picture.  Why predicting markets based on headlines rarely works.  How bonds are still subject to supply and demand.  The value of having a written financial plan.  How intentional planning improves outcomes.  Simple habits to reduce financial stress.  Ideas Worth Sharing: “Diversification is the best thing you can do. It’s a risk mitigation.” - Andy Christopher “Be very humble about trying to anticipate market directions based on events or news headlines.” - Charlie Mattingly “Everyone needs to have a plan, whether it’s a written plan for investing or preparing for retirement savings. The more intentionality and thought you put into that plan, the better.” - Charlie Mattingly Resources In Today's Episode: Stock Market Timing Game Flight #88: Understanding the Federal Reserve: Insights, Misconceptions, and the Power of Authenticity with Seema Sheth Charlie Mattingly: LinkedIn Andy Christopher: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #121: The Biggest Lessons We Learned in 2025 What if the lessons from 2025 could completely change how you approach the year ahead? In this episode, we reflect on the biggest epiphanies, revelations, and insights gained from our clients, our work, and our own lives last year. You’ll learn practical techniques to prioritize what matters most, avoid burnout, and separate your identity from your job. Listen in as we discuss putting first things first, as well as being intentional with your time, your energy, and your family—even when life demands your attention in multiple places at once. We also explore how to raise financially smart kids, when to step in vs. when to let them struggle, and how to prepare them for their 20s. From generosity and communication to asking better questions, this conversation sets the tone for building a meaningful, balanced, and intentional life in 2026. What You'll Learn In Today's Episode: The biggest lessons from 2025.  Techniques for prioritizing what matters most.  How to raise financially smart kids.  When to let kids struggle vs. when to step in.  Why communication about money matters.  How to avoid burnout and over-identifying with work.  The value of generosity with time and money.  How better questions can change your life.  Ideas Worth Sharing: “You can be present without being present.” - Andy Christopher “Traveling to places that aren’t always the most comfortable but that give your children exposure to new things can be life changing.” - Charlie Mattingly “Your job cannot be your identity.” - Charlie Mattingly Resources In Today's Episode: The 7 Habits of Highly Effective People by Stephen R. Covey The Psychology of Money by Morgan Housel Change Your Questions, Change Your Life by Marilee Adams Charlie Mattingly: LinkedIn Lisa Rosenthal: LinkedIn Andy Christopher: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #120: Why Stock Picking Is Harder Than You Think with Hank Bessembinder What if most individual stocks actually don’t outperform and a small handful of massive winners are doing all the heavy lifting? In this episode, renowned finance professor Hank Bessembinder joins the show to break down decades of research on market returns, stock picking, and why diversification matters far more than most investors realize. We unpack his groundbreaking findings on market skewness and explain why identifying winning stocks is far harder than social media and headlines suggest. You’ll learn how market randomness impacts even skilled investors, why broad diversification tends to outperform concentrated bets, and what Hank’s research means for long-term investors, retirees, and anyone managing portfolio withdrawals. From sustainable return rates and sequence-of-returns risk to the realities of active management and leverage, this conversation offers a research-backed framework for making smarter investment decisions—without chasing the next “sure thing.” What You'll Learn In Today's Episode: Why most individual stocks underperform. How market returns are positively skewed. What actually drives long-term market growth. Why stock picking is statistically difficult. The role randomness plays in investment results. How diversification reduces downside risk. When active investing might make sense. What sustainable return rates really mean. How sequence risk impacts retirees. Why “closet indexing” hurts investors. Ideas Worth Sharing: “Everything that you already heard about the benefits of being broadly diversified is true, and on top of that, the skewness tells us that if you venture away from that and form a concentrated portfolio, the odds are against you.” - Hank Bessembinder “There is a lot of randomness in the markets. So even if you have identified a skilled manager, there is still a good chance of under-performance because of the randomness.” - Hank Bessembinder “There are more people who profess to be the next Warren Buffett than there are people who are actually the next Warren Buffett. And the difficulty for the rest of us is telling which is which.” - Hank Bessembinder Resources In Today's Episode: Hank Bessembinder: ASU The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #119: Investing Through Peaks, Bubbles & Uncertainty with Nolan Clark and Andy Christopher What if we’re asking the wrong question about market peaks, bubbles, and crashes? Everyone wants to know what happens next, but this episode shifts the focus to what you can actually control: risk, timing, and smart decision-making. Today’s conversation breaks down the most common fears investors face — from AI bubbles to gold hype to stock market pullbacks — and gives you a grounded lens for evaluating what’s real versus what’s noise. You’ll learn how to recognize warning signs without predicting the future, why your investment goal should drive every decision, and how to prepare for the next downturn long before it arrives. We also explore the truth about gold as an inflation hedge, what a “lost decade” really means for your portfolio, and how to think clearly in an era of information overload. If you want clarity in a confusing market, make sure to tune in! What You'll Learn In Today's Episode: Why you can’t know a market peak until after it passes.  How to prepare for downturns without predicting them.  What a “lost decade” means and why it matters.  How to think about AI and whether we’re in a bubble.  Reasons you might want to own gold and reasons you shouldn’t.  Why gold is a poor long-term inflation hedge.  How volatility impacts long-term wealth preservation.  The importance of aligning investments with your actual goals.  How to manage risk when the future is uncertain.  Why clarity matters in an era of financial information overload.  Ideas Worth Sharing: “In terms of an inflation hedge, if that's the goal, you probably don't want to invest in something that can be as volatile as gold over such a long period of time. It's hard to grow, much less really preserve your wealth when you have a long stream of returns like that.” - Nolan Clark “Always think about what your goal is with the investment before you invest.” - Nolan Clark “The only time we are going to know that we were in a bubble is after the bubble bursts. So, we don’t know if we are in an AI bubble right now.” - Andy Christopher Resources In Today's Episode: Charlie Mattingly: LinkedIn | Email Nolan Clark: LinkedIn Andy Christopher: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #118: Redefining Success, Struggle, and Purpose with Ryan Watson  What happens when success, identity, and purpose collide with some of the hardest battles a person can face? In this powerful conversation with Ryan Watson, we explore the realities many pilots and high-performing professionals quietly carry: addiction, mental health struggles and the pressure to appear “perfect” in an industry where vulnerability can feel dangerous. Ryan opens up about the challenges he faced, the misconceptions around struggle, and the hidden cultural stigma that keeps so many silent. You’ll learn how Ryan rebuilt his life, business, faith, and definition of success after walking through addiction and recovery—and how those experiences reshaped the way he approaches money, leadership, and long-term planning. This episode brings you honest insight, emotional clarity, and meaningful reminders about what truly matters as you prepare for retirement, pursue purpose, or navigate your own hard seasons. What You'll Learn In Today's Episode: Why pilots often feel unable to talk about mental health.  How addiction can reshape your view of success.  The hidden pressures aviation professionals face.  How faith influenced Ryan’s recovery and perspective.  What Ryan learned about money after hardship.  How struggle can redefine your business priorities.  Why vulnerability matters in high-stakes careers.  How to find purpose beyond financial goals.  What resilience looks like during a personal crisis.  How to align success with values, not pressure.  Ideas Worth Sharing: “As we prepare for retirement, sometimes we get so laser-focused on the money. But it’s about more than that. And when you go through hard times, that purpose becomes a little clearer.” - Charlie Mattingly “I’ve learned that my business is not all about me.” - Ryan Watson “I want to always be able to bless others if I have the opportunity.” - Ryan Watson Resources In Today's Episode: Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #117: Public vs Private: Where Should You Really Be Investing?  Are private equity and alternative investments really the secret weapon of the wealthy or are public markets still your best bet? In this episode, we tackle one of the most common questions we hear: should you look beyond the stock market? We’ll break down what private equity really is, who it’s for, and why some companies stay private instead of going public. You’ll learn how these investments work, why they’re not always the golden ticket they appear to be, and how to think critically about diversifying your portfolio.  The conversation also explores the psychological side of investing—why complexity often feels safer but can lead to costly mistakes. You’ll hear about “unicorn” companies, venture capital, and how to evaluate whether private real estate or equity fits your financial goals. By the end, you’ll understand when it makes sense to branch out, and when sticking with simple, time-tested public investments may be the smartest move of all.  What You'll Learn In Today's Episode: What private equity and private real estate investing actually mean.  Why some companies stay private rather than going public.  The pros and cons of investing outside the stock market.  Who private equity investments are most suitable for.  How to evaluate your portfolio diversification strategy.  Why complexity doesn’t always equal better returns.  What to know about “unicorn” companies and their valuations.  How to balance risk and liquidity in alternative investments.  Why public markets remain strong, even at all-time highs.  Key questions to ask before pursuing private opportunities.  Ideas Worth Sharing: “I believe you can be wealthy and just invest in the public market.” - Charlie Mattingly “Sometimes we seek out complexity because we feel like we're supposed to, and I think that's the way we're wired because it makes us feel like we're doing something really good. But in the world of investing, I think that the opposite is probably true. Seek out simplicity. Complexity is not always the answer, and it's our natural inclination to do that. Sometimes it gets us in trouble.” - Andy Christopher “Public markets remain robust. They continue to provide value and have the same level of economic value as they did over the last 30+ years. So I have faith in the public markets that this is still a good investment.” - Andy Christopher Resources In Today's Episode: Andy Christopher: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #116: Inside the Economics of the Airline Industry with Volodymyr Bilotkach Why do airlines struggle to make money even when planes are full? In this episode, we unpack the surprising economics behind one of the world’s most essential yet fragile industries. From razor-thin profit margins to the ripple effects of global shocks like COVID-19, you’ll learn why airlines operate on such precarious financial ground and what it takes for them to stay in the air. Our guest, Volodymyr Bilotkach, explores the industry’s future: sustainable fuels, electric aircraft, and the modernization of air traffic systems. You’ll hear how soon we might see electric planes certified, whether pilot jobs are truly declining, and why the industry’s survival doesn’t just depend on innovation, it depends on economic resilience. What You'll Learn In Today's Episode: How COVID-19 exposed industry vulnerabilities.  When electric aircraft might become viable.  How sustainable fuel adoption is progressing.  Why air traffic control systems need modernization.  The economic future of U.S. airlines.  How pilot shortages affect the industry.  The impact of external shocks on aviation economics.  What the next decade of air travel innovation may look like.  Ideas Worth Sharing: “Unless there is another world war, the aviation industry will be fine.” - Volodymyr Bilotkach “In the end, it is about cost control and differentiating the revenue in such a way so that you can create revenue streams that are not as dependent on the business cycles.” - Volodymyr Bilotkach “Aviation is a great industry and I think we are in a wonderful time to be in aviation. And as long as we don't have some kind of major military conflicts, the industry is going to be fine.” - Volodymyr Bilotkach Resources In Today's Episode: The Economics of Airlines by Volodymyr Bilotkach Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #115: Roth Catch-Ups and the Secure Act 2.0 What do the new Secure Act 2.0 rules mean for Roth contributions and retirement planning in 2025? In this episode, we explore what pilots and high-income earners need to know about Roth catch-up contributions, required Roth designations, and the risks of in-plan Roth conversions. You’ll also learn how these changes may impact your taxes, your long-term retirement savings, and the best ways to prepare now. Whether you’re nearing retirement or fine-tuning your long-term plan, this episode will help you navigate Roth strategies with clarity and confidence. What You'll Learn In Today's Episode: How Roth catch-up contributions work in 2025. Super catch-up rules for ages 60–63. Tax impacts of Roth-only catch-ups for high earners. When to consider in-plan Roth conversions. The risks of converting too quickly inside a 401(k). Why healthcare costs make RHAs valuable. Options for Roth contributions beyond the 401(k). How to plan Roth contributions for the next 12 months. Ideas Worth Sharing: “If you are 50 or older, and you make more than $145K in income, which most of our pilots do, pretty early on, then your catch-up contribution must be Roth.” - Charlie Mattingly “You will have the option to designate what's catch-up and what's not. We recommend doing catch-up because the airline cannot do that for you.” - Charlie Mattingly “There are different ways to get money into a Roth now in the 401(k). You can also do a Roth in the IRA. You can do both of those. If you make too much money, you have to go the backdoor route. The key is just to figure out how much money you want to get into a Roth during the next 12 months, once we get to January, and make your plan that way.” - Kevin Gormely Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #114: The Science of a Happy Retirement with Dr. Michael Finke What actually makes for a happy, fulfilling retirement? Is it all about the numbers, or is there more to the story? In this episode, Dr. Michael Finke—professor, researcher, and one of the most respected voices in retirement planning—shares his groundbreaking research on what truly drives satisfaction in retirement. Drawing from decades of data, interviews, and insights from retirees themselves, Dr. Finke uncovers the three essential pillars of a rewarding life after work. You’ll learn why money alone doesn’t guarantee happiness, the critical role of health and relationships, and how small but intentional choices can completely reshape your retirement experience. From practical strategies like Roth benefits and investment risk management to lifestyle shifts that improve your healthspan, this conversation is packed with wisdom you can act on now to create the future you want. What You'll Learn In Today's Episode: The three key predictors of retirement satisfaction. Why retirement isn’t just about financial numbers. How healthspan matters more than lifespan. The role of strong relationships in long-term happiness. Lessons learned from real retirees’ experiences. Why prudent investment decisions matter. The benefits of Roth accounts in retirement. How to avoid common retirement planning surprises. How to tweak your financial plan to increase happiness. Ideas Worth Sharing: “If you look at the research of what makes people happy, it's doing things that you're good at, and doing things that are just enough of a challenge to keep you interested. Not hugely stressful, but something that you're good at, something that presents a little bit of a challenge.” - Dr. Michael Finke “One of the biggest mistakes we can make is isolating ourselves.” - Dr. Michael Finke “Think about what you’re going to accomplish during that period of your life where you’re most active in retirement and don't just sit on the money because you’re too afraid to spend it.” - Dr. Michael Finke Resources In Today's Episode:   Dr. Michael Finke: LinkedIn | Website Outlive by Dr. Peter Attia Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #113: The Pros and Cons of Private Equity What exactly is private equity, and why is it suddenly being linked to your 401(k)? In this episode, we break down the recent executive order that directs the Department of Labor to explore ways of including private equity in retirement plans. You’ll learn what sets private equity apart from the public markets you’re familiar with, why it excites some investors, and why others aren’t as enthusiastic.  We’ll also cover the potential benefits and risks of private equity, including how fees, transparency, and incentives play a role in investment outcomes. By the end, you’ll understand the key pros and cons, common misconceptions, and how to decide whether private equity might have a place in your financial strategy as a professional pilot.  What You'll Learn In Today's Episode: The difference between public and private markets. Why private equity is being considered for 401(k)s. The pros and cons of private equity investing. Common misconceptions about private equity. The role of fees in private investments. How valuations are determined in private equity. Why some investors, including Warren Buffett, are skeptical. Examples of private equity opportunities. The risks involved in private investments. How to decide if private equity is right for you. Ideas Worth Sharing: “You can do really well with a private investment, oil and gas, real estate, whatever it may be. Or guess what? You could lose all of your investment. Like any other investment, you could do really well, but there are risks and you could also not do very well.” - Charlie Mattingly “If private equity is right for you, you're an accredited investor, you've got the solid balance sheet and the money to be able to go out and take some extra risk, then there's other markets to be able to do that.” - Charlie Mattingly “You need to know valuation methods if you're going to be a private equity investor.” - Kevin Gormely Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #112: How NOT to Run Out of Money in Retirement How can you avoid running out of money in retirement and still live the life you want? In this episode, we break down the most important strategies for sustainable retirement spending, including the 4% rule, dynamic spending approaches, and the three-bucket strategy. You’ll learn how retirement spending actually works in real life and why your financial plan needs to adjust as your lifestyle and health change over time. Listen in to hear about the biggest risks retirees face, including sequence of return risk, poor planning, and relying too heavily on one-size-fits-all solutions like annuities. Whether you’re a do-it-yourself planner or prefer to delegate, you’ll walk away with practical steps for knowing your expenses, stress-testing your plan, and creating a retirement strategy that helps you spend confidently without fear of running out. What You'll Learn In Today's Episode: Why retirement spending follows the “retirement smile.” The risks of running out of money too soon. Pros and cons of the 4% rule. How dynamic spending strategies work. The three-bucket strategy explained. Why annuities are helpful—but not for everyone. The danger of sequence of return risk. How to stress-test your retirement budget. Why tracking expenses before retiring matters. Simple steps to build confidence in your plan. Ideas Worth Sharing: “You only get one shot at retirement, and if you mess it up, that’s too bad.” - Kevin Gormely “Because of the time value of money, the worst possible time to pull money out of investments is when they're down. The bucket strategy can help you prevent doing that, and I think that's a huge win in and of itself.” - Charlie Mattingly “That’s what planning is all about, thinking about all of the risks and positive outcomes.” - Kevin Gormely Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #111: Social Security Myths, Money, and the Truth Is Social Security really running out of money, or is that just a headline meant to scare you? In this episode, we cut through the noise to uncover the truth about its future, its viability, and how it actually works. You’ll learn how to separate political fear tactics from the facts, why the “trust fund bankruptcy” story isn’t the whole picture, and how your claiming strategy could mean hundreds of thousands of dollars gained or lost over your lifetime. We also dig into the nuances you might not have considered, such as how benefits work if you’re divorced or widowed, why the timing of your claim matters so much, and how Social Security acts as a form of long-term insurance for living longer than expected. Whether you’re approaching retirement, already claiming, or simply planning ahead, this conversation will equip you with the clarity and confidence to make smart, informed Social Security decisions. What You'll Learn In Today's Episode: The truth about Social Security’s “trust fund bankruptcy.” How political headlines fuel fear about Social Security. The difference between Social Security’s savings and income streams. Key rules for divorced individuals claiming benefits. Claiming benefits as a widow or widower. Why the timing of your claim can mean hundreds of thousands gained or lost. How Social Security acts as long-term insurance. The connection between Social Security and annuities. Why cost-of-living adjustments make Social Security unique. How to plan for longevity with your Social Security strategy. Ideas Worth Sharing: “A big percentage of America is getting Social Security in some way.” - Kevin Gormely “Break-even is incomplete if you're married.” - Kevin Gormely “What is a pension? It's an annuity. What is Social Security? It really is an annuity. The difference with Social Security, though, is that you get the cost-of-living adjustments. All the pensions you buy in the marketplace right now cannot be inflation-adjusted. So, Social Security is really a great pension.” - Kevin Gormely Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #110: Unpacking the “One Big Beautiful Bill Act” Are you wondering what the sweeping changes brought by the recently passed "One Big Beautiful Bill Act" (OBBBA) are? In this episode, we break down the new legislation, providing a clear overview of how it impacts individual income taxes, business provisions, and specific deductions. We'll explain the intricacies of standard deductions, the nuances of phase-outs (and why they're usually bad news!), and the critical updates to the State and Local Tax (SALT) deduction. Listen in as we break down the specifics, including how overtime pay has changed, new opportunities for charitable and EV deductions, and the particular implications for airline pilots. You'll learn how to identify key changes that directly affect your financial planning, ensuring you're well-informed about this significant tax reform. What You'll Learn In Today's Episode: Overview of the One Big Beautiful Bill Act (OBBBA). Impact of OBBBA on individual income tax brackets. Key business tax provisions introduced or changed by OBBBA. New charitable deductions available under the act. Changes (or lack thereof) in international and state tax provisions. Understanding how tax rates are staying the same. The concept and impact of "phase-outs" on your deductions. Updates to the State and Local Tax (SALT) deduction. How overtime pay provisions have changed. Eligibility for new EV (Electric Vehicle) deductions. Ideas Worth Sharing: “Phase outs are not your friend because the only time you ever hear about a phase out is when you phase out.” - Kevin Gormley “Junior First Officers are not going to have a lot of phase outs, however more senior FOs and Captains are going to have to watch their phase out ranges but taxes have not gone up.” - Kevin Gormley “First officers are going to have a higher standard deduction, which is good because a lot of them are not itemizing. If they are itemizing, they get the SALT. They get the charitable deduction. Some of them might be able to buy a new car and borrow money and use the interest on the vehicle.” - Kevin Gormley Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #109: Care Around the Block - Elderly Care Part 2 What do you do when your aging parent needs care, but you live across the country and don’t know where to start? In this episode, Casey Rausin, RN, CCM, and CEO of HOMECAREceo Forum, joins the show to help answer that question. With decades of experience in advanced aging and lifecare planning, Casey breaks down how her team acts like a “healthcare advisor,” helping families proactively manage aging-related care before it becomes a crisis. You’ll learn why executive functioning is often the first red flag in elderly decline, why it's critical to know your parents’ care team (just like you'd know their financial advisor or attorney), and how to approach care from a preventative, not reactive, mindset. Casey also explains the different care options available today, from independent and assisted living to in-home care and new AI-supported solutions that make frequent care more accessible. She addresses concerns like affordability, safety, and how to build a trusted care team when you can’t be physically present. Whether you’re facing a specific concern or just want to be better prepared for the future, this episode offers clear, practical steps to help you confidently navigate care for your loved ones. What You'll Learn In Today's Episode: Why proactive care planning matters. What executive function decline looks like. How home care compares to assisted living. How to know when to intervene. The role of a healthcare advisor. Using AI for affordable care solutions. How to choose the right care team. Addressing trust and safety concerns. Independent vs. assisted living. How to support aging parents from afar. Ideas Worth Sharing: “We’ve got to think of a way to take care of more people with less people because people need it. Assisted living is not the answer. We’ve got to figure out a way to provide care to people when they need it.” - Casey Rausin “You want to make sure that it is the right care team built around you. People that are knowledgeable and people that can drive that care.” - Casey Rausin “There is support out there for you. You just need to go out there and find the right support for you.” - Casey Rausin Resources In Today's Episode: Casey Rausin: LinkedIn Sensi.Ai Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #108: Understanding Medicare, Early Retirement & Health Insurance with Cole Craven Is Medicare more confusing than it should be? If you're nearing retirement or thinking about leaving your job early, the healthcare piece can feel overwhelming and expensive. In this episode, we sit down with Cole Craven, co-founder of Move Health, to demystify the complexities of Medicare, healthcare costs, and early retirement planning. Listen in to learn the difference between Medicare Advantage and Medigap, how to time your enrollment correctly, and what your healthcare options are if you want to retire before 65. Plus, we dive into how Tricare works with Medicare, when to appeal IRMAA, and why bad advice about healthcare costs might delay your retirement. What You'll Learn In Today's Episode: The basics of Medicare Parts A, B, C, D, and Medigap plans. Pros and cons of Medicare Advantage vs. Medicare Supplement. How your income affects your Medicare premiums. Steps to take if you want to retire before 65. How financial advisors and Move Health work together to simplify coverage. Why pilots may be surprised by Medicare’s benefits compared to their employer plans. What military retirees with Tricare need to know before enrolling in Medicare. Real-life stories that highlight what not to do and how to do it right. Ideas Worth Sharing: “Medicare is boring as heck for almost all individuals. And then you turn 64, and then it becomes super interesting because it's now your life.” - Kevin Gormley “Healthcare changes are at an all-time high, and healthcare literacy is at an all-time low.” - Cole Craven “Don't let healthcare be the one that stops you from retiring early.” - Charlie Mattingly Resources In Today's Episode: Cole Craven: LinkedIn | Website Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #107: Making Sense of Long-Term Care Insurance Options with Amy Arnett Does the phrase “long-term care” make you cringe? If so, you’re not alone, but it’s something we all need to think about eventually. In this episode, we sit down with Amy Arnett, VP of Insurance Solutions at DPL Financial Partners, who brings 36 years of experience in the insurance world to help us understand the evolving landscape of long-term care options. Listen in to learn why insurance isn’t all or nothing anymore and how you can now tailor coverage to your needs and budget. Amy also explains what assisted living typically includes, what happens if you choose not to purchase insurance at all, and how long-term care looks different for veterans or those with disabilities. Whether you're planning for yourself or a family member, this episode gives you clear, practical insights into the range of options available today. What You'll Learn In Today's Episode: The basics of traditional long-term care insurance. The pros and cons of annuities with long-term care riders. What a “rider” really means in insurance. The risks of not buying long-term care coverage. Options available to veterans and people with disabilities. What assisted living typically includes. Why insurance coverage today is more flexible than ever. Ways to avoid overpaying for unnecessary coverage. How to begin conversations about long-term care. Ideas Worth Sharing: “Insurance is no longer all or nothing. You don’t have to buy the Cadillac coverage anymore, you have a lot of options.” - Kevin Gormley “When you self-insure, you’re paying 100% for that care. When you use insurance, you’re paying closer to 30 cents on the dollar for that care.” - Amy Arnett “You have to be open with your physician and be realistic about the assistance you’re going to need.” - Amy Arnett Resources In Today's Episode: Amy Arnett: LinkedIn | Website CareScout Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #106: Understanding Market-Based Cash Balance Plans What is a Market-Based Cash Balance Plan (MBCBP), and why is it becoming the go-to retirement vehicle for pilots at major airlines like Delta? In this episode, we explain what an MBCBP actually is, how it's different from a pension or 401(k), how the investments work, and why pilots need to understand this model to make smart retirement decisions. You’ll hear how funds are pooled, what kind of returns to expect and why the guarantee provided by the airline makes this a powerful planning tool. Whether you're flying for Delta or another airline exploring similar models, this episode breaks down how the MBCBP protects your money while still allowing for long-term growth. You'll learn what control you do and don’t have over the funds, when you can move the money, and how it fits into your broader financial strategy. What You'll Learn In Today's Episode: What a Market-Based Cash Balance Plan (MBCBP) is. How it differs from a 401(k) or pension. How MBCBP investments are allocated. The airline's role in guaranteeing the funds. When you can move your money. What control you have over the account. Why this model is gaining traction with airlines. Why pilots are frustrated with other retirement plans. How to think strategically about your retirement assets. Ideas Worth Sharing: “A market-based cash balance plan (MBCBP) is not a pension or a 401(k), but it’s your money. If you have money in there, you can take it when you leave. You don’t have control over investing it, but you have control over moving it when you’re 59 and a half.” - Kevin Gormley “It’s not timing the market, it’s time in the market.” - Kevin Gormley “Every year, you have a new beginning. Every year, you get to make a choice about what you want to do with your tax balance pension. However, you really do have to have a plan.” - Charlie Mattingly Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #105: The Power of Gratitude Can a mindset of gratitude really change your financial life? In this episode, we explore how the power of gratitude directly influences your outlook, your decisions, and ultimately, your financial success. You'll learn why slowing down to reflect on what you’re thankful for can actually sharpen your focus and guide you toward a more meaningful retirement. Gratitude isn't just a feeling; it’s a practice that creates clarity, helps you define what really matters, and strengthens your ability to handle life’s challenges with resilience. We dive into how your beliefs shape your actions and why having a positive, intentional mindset leads to better long-term outcomes. This conversation is a reminder that the small choices we make—when fueled by gratitude—can create a ripple effect that shapes not only our future, but also the people around us. What You'll Learn In Today's Episode: How gratitude impacts financial success. Why mindset shapes outcomes. What it means to visualize retirement with intention. The link between gratitude and resilience. How to reframe negative experiences. Tips to build a daily gratitude habit. Why scarcity thinking holds you back. The butterfly effect of small actions. How to control what enters your mind. Ideas Worth Sharing: “An attitude of gratitude helps you get through tough times with resiliency.” - Charlie Mattingly “Exercising gratitude reflects in your financial circumstances and your financial success exponentially.” - Lisa Rosenthal “What we believe to be true turns into our actions.” - Charlie Mattingly Resources In Today's Episode: Nolan Clark: LinkedIn Lisa Rosenthal: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #104: How to Retire Confidently in a Volatile Market What if you're about to retire—and the market takes a nosedive? For those in their 60s, looking toward retirement at 65, market volatility can feel like a punch to the gut. In this episode, we dive into how to confidently retire into a turbulent market, what lessons we’ve learned from past downturns, and why market dips aren’t as rare—or as disastrous—as they seem. You'll learn why diversification matters, how to assess your true financial risk, and what practical steps you can take right now to protect your retirement plans. We also walk through seven actionable strategies to help near-retirees prepare for financial independence in any market climate. From tracking your spending habits and adjusting expectations to thinking through tax efficiency and building a solid cash “bucket one,” we’ll help you shift your mindset, reset your priorities, and enter this next phase with greater clarity and confidence. What You'll Learn In Today's Episode: Why retiring in a bad market isn’t the end of the world.  How diversification protects you during downturns.  7 things to do before you retire in a volatile market.  Why tracking spending now helps later.  How to estimate how long your money will last.  The importance of building a cash “bucket one.”  Why tax efficiency matters in retirement.  How to rethink withdrawal strategies.  Ways to reset your priorities before retiring.  When to seek professional financial guidance.  Ideas Worth Sharing: “Before your retirement, it is important to track what you’re spending and think about how that might change in retirement.” - Charlie Mattingly  “There are always risks in markets, it’s just easy to forget that sometimes.” - Kevin Gormley  “Start building your 'bucket one' where you have cash in the bank or in a brokerage account, because it’s nice to have a healthy amount of cash going into retirement. It sets you up to be able to ignore the bad stock market if you retire during a dip and it presents more conversion opportunities.” - Charlie Mattingly  Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #103: Thriving Through Market Uncertainty What do you do when the world feels unpredictable—and your financial future even more so? In this episode, we’re diving into how pilots can mentally and financially prepare for uncertain times. From industry shake-ups to unexpected announcements from new governments, uncertainty is the only constant. But it's not the events themselves that rattle the market—it’s the surprise factor. We explore how to manage fear-driven decisions, reframe risk, and maintain clarity during turbulence. Listen in to learn why mindset matters just as much as money, and how to develop habits that help you thrive—not just survive—when markets get shaky. We also talk about the power of cash reserves, reducing debt, and zooming out to see the long game. You'll hear why it’s about staying focused on why you started investing in the first place, as well as how to train your brain to rise above panic. What You'll Learn In Today's Episode: How the brain reacts to financial fear. The role of risk management in volatile times. Why low debt and cash reserves matter. How to shift your mindset during financial stress. The power of zooming out on long-term goals. How to avoid making emotional financial decisions. The impact of unexpected government changes on markets. Why hope is still a strategy (when paired with preparation). How to focus on your investment “why” during market dips. Ideas Worth Sharing: “It’s not the event itself that affects the market; it is the unexpectedness of it.” - Charlie Mattingly “The future is absolutely unknowable, and we have to get comfortable with that.” - Charlie Mattingly “Focus on what is important and why you’re investing in the first place.” - Charlie Mattingly Resources In Today's Episode: The Investor’s Manifesto by William J. Bernstein Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #102: How to Prioritize Health and Nutrition While Traveling with Mark and Adriana Covell What good is wealth if you don’t feel good? For busy professionals—especially pilots—maintaining health and nutrition while constantly on the go is a major challenge. In this episode, financial planner Mark Covell and his wife Adriana Covell, NBC-HWC, break down how small, intentional choices can lead to long-term health without feeling deprived. Adriana discusses the emotional connection we have with food, how to break unhealthy habits, and why understanding what your body actually needs is key to achieving both quality of life and longevity.  Listen in to learn why processed foods dominate the American diet, how to recognize ingredients your body will actually benefit from, and why healthy habits—not restrictions—are the key to lasting wellness. Adriana also shares the biggest food challenges she sees, the importance of meal prep for busy lifestyles, and how to create a system that works for you. Whether you're traveling for work or just trying to make better choices, this episode will help you take control of your nutrition without feeling overwhelmed.  What You'll Learn In Today's Episode: Why busy professionals struggle with maintaining good nutrition. How emotions influence food choices and habits. Why deprivation doesn’t work—and what to do instead. How to recognize processed foods and make better choices. The right way to cut back on sugar without feeling restricted. How food prep can help travelers maintain a healthy lifestyle. Why small, sustainable changes are better than extreme diets. How to dissociate emotions from unhealthy eating habits. The importance of being kind to yourself in your health journey. Simple rules for choosing healthier food on the go. Ideas Worth Sharing: “Wealth is important, but what good is it if you’re not healthy?” - Charlie Mattingly “We attach emotions to food but it isn’t the food that brings us happiness, it’s the memories associated with that food.” - Adriana Covell “The rule of thumb for healthy food is the less ingredients, the better.” - Adriana Covell Resources In Today's Episode: Mark Covell: LinkedIn | Leading Edge Adriana Covell: LinkedIn | Website Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #101: The Power of Direct Indexing and Tax Management with Shawn Jaberzadeh Is direct indexing the right investment strategy for you? In this episode, Shawn Jaberzadeh, Co-Head of Enterprise Group at Dimensional Fund Advisors, breaks down how direct indexing works and when it might be a better fit than off-the-shelf investment options. We explore the key differences between standard and aggressive tax management, the role of separately managed accounts (SMAs), and how tax loss harvesting can impact your portfolio. You'll also learn who direct indexing benefits most, the potential drawbacks to consider, and how market volatility plays into investment decisions. Plus, we cover taxation differences between foreign and U.S.-based plans and the three main investment buckets every investor should know. If you're wondering whether a customized approach to investing is right for you, this episode is a must-listen! What You'll Learn In Today's Episode: What direct indexing is and how it works. When a separately managed account (SMA) makes sense. The difference between standard and aggressive tax management. How tax loss harvesting can benefit your portfolio. Who direct indexing is—and isn’t—a good fit for. The impact of market volatility on investment decisions. How taxation differs between U.S. and foreign investments. Why direct indexing isn’t always the default choice. The three main investment buckets to consider. The potential risks and rewards of direct indexing. Ideas Worth Sharing: “There is a difference between investing in something that is off the shelf versus something that feels like it is curated for you.” - Shawn Jaberzadeh “Market volatility doesn’t happen every month or quarter, it happens when it happens.” - Shawn Jaberzadeh “The default isn’t that you need to have a separately managed account—it’s if you have particular circumstances, then you should consider whether it is right for your situation.” - Shawn Jaberzadeh Resources In Today's Episode: Shawn Jaberzadeh: LinkedIn Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #100: Raising Money-Smart Kids How can you teach your kids smart money habits without creating entitlement? In this episode, we dive into the essential lessons of raising financially responsible children. We explore the challenges first-generation wealth builders face, the guilt that often comes with financial success, and why many families lose their wealth by the third generation. You’ll learn why discussing money early and intentionally is key to long-term financial success. We also break down age-appropriate financial lessons, from simple money habits for young kids to investment and credit-building strategies for teens and young adults. Plus, we discuss practical ways to instill gratitude, work ethic, and financial literacy—ensuring your wealth lasts beyond your lifetime. What You'll Learn In Today's Episode: How to teach kids about money at different ages.  The biggest mistakes first-generation wealth builders make.  Why talking about money early is essential for long-term wealth.  Strategies to prevent entitlement while passing on wealth.  The difference between scarcity and abundance mindsets.  How to introduce budgeting, investing, and credit-building to teens.  The "Three Bucket" system for spending, saving, and giving.  Why financial resilience is just as important as financial knowledge.  The role of estate planning in generational wealth transfer.  Practical ways to model strong money values for your children.  Ideas Worth Sharing: “Good money habits do not happen automatically and they will not happen without good intention and a good game plan.” - Charlie Mattingly  “Knowledge and confidence in finances will set your children up for so much success later on.” - Lisa Rosenthal  “You’re not just passing along your wealth, you’re passing along your values.” - Lisa Rosenthal  Resources In Today's Episode: Lisa Rosenthal: LinkedIn Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index YNAB Goodbudget The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous and Smart About Money by Ron Lieber Lily Learns about Wants and Needs by Lisa Bullard Ella Earns Her Own Money by Lisa Bullard Shanti Saves Her Money by Lisa Bullard Good With Money by Emma Edwards Personal Management Merit Badge | Boy Scouts of America Flight #99: From Fighter Pilot to Author with Jack Stewart Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #99: From Fighter Pilot to Author with Jack Stewart What does it take to transition from a TOPGUN fighter pilot to a bestselling author? Jack Stewart, a former U.S. Navy fighter pilot with 23 years of service, joins the show to share his fascinating journey from flying combat missions to writing gripping novels. With five books under his belt, Jack dives into how he develops his stories, navigates classified information, and handles rejection in the publishing world. You'll hear about the mental challenges of writing, dealing with criticism, and overcoming fears of being uninteresting. Jack also reveals how he co-wrote a book, why the Silent Horizons series is so special to him, and the discipline required to succeed as both a military officer and an author. If you've ever dreamed of writing a book or are curious about the creative process behind military thrillers, this episode is a must-listen! What You'll Learn In Today's Episode: How Jack Stewart transitioned from fighter pilot to author. How he comes up with book ideas and characters. The challenge of writing about top-secret missions. How he handles rejection in the publishing world. The mental health challenges of being an author. His experience co-writing and collaborating on books. Why the Silent Horizons series is so special to him. How military discipline helps in his writing career. Advice for aspiring writers. Ideas Worth Sharing: “First and foremost, I write to entertain.” - Jack Stewart “Balance is key.” - Jack Stewart “Sometimes you need to say ‘no’ to things.” - Jack Stewart Resources In Today's Episode: Jack Stewart: Website | Instagram | X Your Money & Your Brain by Jason Zweig Charlie Mattingly: LinkedIn | Email The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #98: How to Move From Success to Significance With Anthony Thompson What does it take to redefine success and find joy in the journey, not just the results? In this episode, we’re joined by Anthony Thompson, CEO of Thompson Consulting & Advising, a mindset and performance coach, and author of The Unhurried Life: Discovering Peace and Purpose through Faith-Filled Living. With over 20 years of experience driving growth for Fortune 500 companies and non-profits, Anthony shares his proven strategies for achieving clarity, aligning your values with your goals, and transforming your life from the inside out. Anthony dives into the four pillars of total health—physical, mental, spiritual, and financial—and how these areas shape both personal and professional success. You’ll also hear actionable insights on stepping outside your comfort zone, creating lasting change, and defining success on your own terms. Whether you're looking to grow your business, deepen your faith, or simply create a more intentional life, this episode will inspire and equip you to take the next step. What You'll Learn In Today's Episode: How to find joy in the journey, not just the results. The four pillars of total health. Why mindset is the foundation for lasting fulfillment. How to align your values with your goals for authentic success. Strategies for stepping out of your comfort zone and embracing growth. The importance of lifelong learning for personal and professional success. How small, consistent actions create life-changing results. Defining success on your own terms and avoiding comparison traps. How to contribute meaningfully to others for greater fulfillment. The role of gratitude and intentional thinking in shaping your reality. Ideas Worth Sharing: “Your happiness is a choice.” - Anthony Thompson “What you repeat in your mind, you will begin to do in your day. What you think is what you become.” - Anthony Thompson “Envy is not a productive mindset to be in.” - Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn | Email Anthony Thompson: LinkedIn The Unhurried Life: Discovering Peace and Purpose through Faith-Filled Living by Anthony Thompson Wayne Dyer Tony Robbins James Clear Brendon Burchard Jim Rohn Tim Grover The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #97: Building Financial Success for Young Professionals Are you a young professional pilot looking to build a solid financial foundation? In this episode, we sit down with Lisa Rosenthal, COO, Nolan Clark, Associate Financial Planner, and Jon Schultz, Paraplanner, to discuss strategies tailored for young professionals aiming for long-term success. From understanding your unique financial behaviors to establishing savings priorities, you'll learn about the steps you need to take to secure your future. We'll also explore the impressive earning potential of pilots compared to other professions, the importance of mindset, and smart habits to incorporate, like utilizing Roth accounts and creating spending frameworks. Listen in to learn how disciplined financial behaviors can help you navigate life's uncertainties and set you on the path to financial stability. What You'll Learn In Today's Episode: The financial potential of a pilot's career. How mindset impacts financial success. Understanding personal financial behaviors. Strategies to counter consumerism. The importance of saving priorities. Benefits of Roth and Roth conversions. Creating a flexible spending plan. Investing in non-financial assets. Balancing tax savings and net worth. Preparing for a financial legacy. Ideas Worth Sharing: “Science proves that if you physically write something down, then the impact is huge on achieving those goals. So write goals down, visualize them, and review them.” - Charlie Mattingly “Don’t try to get rich quick.” - Nolan Clark “Budgeting has become a terrible word. Nobody needs to budget, but you need to be aware of your spending and be intentional about your money. It’s amazing the reward that can bring.” - Lisa Rosenthal Resources In Today's Episode: Charlie Mattingly: LinkedIn | Email Nolan Clark: LinkedIn | Email Lisa Rosenthal: LinkedIn | Email Jon Schultz: LinkedIn | Email Healthy Living Corner: Tips for Surviving “Quitter’s Day” in 2025 Pilot Career Earnings Top $13M, According to Flight School Flight #76: To Roth or Not to Roth? The Opposite of Spoiled by Ron Lieber The Psychology of Money by Morgan Housel Atomic Habits by James Clear The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #96: Replay - Is the Market Overvalued? Understanding Market Valuation and Investment Strategies *This is a re-release.* Is the market overvalued and on the brink of an implosion? Join us as we dive into the intricacies of market valuation and investment strategies. In this replay episode, we’re tackling some of the pressing questions about whether the market is currently overvalued, what market valuation metrics mean, and how investors can navigate these uncertain times. Listen in as we discuss real-world examples and actionable insights to help you understand the market better and make informed investment decisions. Whether you're concerned about market highs or looking for diversification strategies, this episode provides the clarity and guidance you need. What You'll Learn In Today's Episode: What market valuation means and how it is measured. The implications of the current market valuation metrics. Real-world examples of market overvaluation. How to diversify your portfolio to mitigate risk. The importance of staying disciplined with your investment strategy. Historical perspectives on market highs and lows and their outcomes. Ideas Worth Sharing: "The market really is pretty huge and we can slice and dice that any number of ways.” – Andy Christopher “There’s always a reason not to invest.” – Andy Christopher “The solution is diversification - you have to be diversified.” – Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn Andy Christopher: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #95: Replay - Should You Hire a Financial Advisor? *This is a re-release.* Are you contemplating whether to enlist the expertise of a financial advisor as your income rises? In this replay episode, we dive into the pivotal question: Should you hire a financial advisor? We discuss how to evaluate and question potential advisors, shedding light on the crucial questions you must ask before making a decision. From deciphering who would benefit from financial advisory services to understanding the significance of thorough due diligence, we share the path to sound financial stewardship. As your financial landscape grows in complexity with increased earnings, discover the invaluable role a trusted advisor can play in navigating these uncharted waters. What You'll Learn In Today's Episode: What is going on with FedEx? How to invest in AI. Who should consider hiring an advisor. The importance of doing your due diligence. How an advisor adds value. How to analyze your risk. The science of behavioral finance. How to appropriately spend money in retirement. How to hire a financial advisor. Ideas Worth Sharing: “The more money you have, the more complicated things get, so having someone to guide you is helpful.” - Jon Cremer “The biggest risk of doing your finances on your own is making one or two really big mistakes.” - Jon Cremer “If a financial advisor cannot make it simple and clear as to how they get paid, then there is a problem. If they tell you that you don’t pay them, then you should also run away.” - Charlie Mattingly Resources In Today's Episode: Jon Cremer: LinkedIn Charlie Mattingly: LinkedIn The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #94: Replay - Top 10 Things Retirees Wish They Would Have Done to Prepare for Retirement What truly makes for a fulfilling and happy retirement? In this episode, we explore the key pillars of health, relationships, and finances to help you create a retirement plan that aligns with your values. From understanding how deliberate planning impacts retirement satisfaction to practical tips on managing health, maintaining relationships, and navigating retirement finances, this discussion offers a comprehensive roadmap to prepare for a purposeful and joyful retirement. We also answer critical questions, such as how to balance saving and spending, manage taxes, and invest in relationships that matter. You’ll learn why intentionality in your retirement plan can make all the difference and gain insights into the emotional and financial strategies that lead to long-term fulfillment. What You'll Learn In Today's Episode: Why planning improves retirement happiness. How to identify spending habits that bring joy and cut wasteful expenses. The importance of health and fitness for cognitive and physical well-being. How to simulate and practice living on a retirement budget. Tax-saving strategies for retirement. The emotional benefits of planning for relationships in retirement. Why investing in your marriage and friendships is critical. How to create a legacy plan that aligns with your values. Balancing present enjoyment with future financial needs. Avoiding harmful comparisons and embracing your unique path. Ideas Worth Sharing: “Never spend more money than you make when you are in your working years.” - Charlie Mattingly “That is how people have the best quality of life in retirement is through solid relationships.” - Charlie Mattingly “Retirement is not a success just because you’re rich. A successful retirement is a life well-lived and a life that impacts others.” - Kevin Gormley Resources In Today's Episode: Charlie Mattingly: LinkedIn Kevin Gormley: LinkedIn Andy Christopher: LinkedIn YNAB EveryDollar I Will Teach YouTo Be Rich Flight #44: Cash Flow Planning for Potential Airline Disability with Amelie Riendl Flight #27: Budgeting with Amelie Riendl Flight #58: What Good is Wealth Without Health? Exercise and the Brain: The Neuroscience of Fitness Explored Where does retiree health care money go? The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #93: What You Need To Know About Inheritance Have you received an inheritance recently? Or have you been thinking about how to leave one? In this episode, Kevin and Charlie tackle key questions about inheritance, covering everything you need to know—whether you're inheriting or passing on assets. From new legislation to strategies that help both you and your beneficiaries maximize your wealth, this episode will give you a powerful roadmap for navigating the process today and in the future. Listen in to learn about the important RMD requirements that affect inheritances, as well as what has changed recently with the Secure Act. You'll hear what you can do to bypass the hurdles many people deal with when an inheritance isn’t planned as well as it should be. Don't miss uncovering what you can do to make the whole process go more smoothly for everyone involved. What You'll Learn In Today's Episode: What to do to prepare for your own death. What you need to look into before the end of the year if you have an LLC. What to do with your I Bonds. The drawbacks of not having beneficiaries. What to do if you inherit money today. What has changed with the Secure Act 2.0. What you need to know about RMDs and RBDs. Key rules to inheritances. Ideas Worth Sharing: “Do the simple things that can be done today … like leaving the money to your spouse and making them a beneficiary.” - Kevin Gormley  “If we don’t have beneficiaries, we’ve taken a very simple process and made it complex because now it becomes an asset that goes through probate. We don’t want that and it leaves a mess for our loved ones.” - Charlie Mattingly  “You really need to make sure your loved one takes the RMD in the year that they die, and there’s a whole set of rules about how to take that money.” - Kevin Gormley  Resources In Today's Episode: Charlie Mattingly: LinkedIn   Kevin Gormley: LinkedIn  FinCEN.gov   Beneficial Ownership FinCEN Reporting  The Pilot Wealth Index  Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #92: Tax Strategies, Future Savings, and Retirement Efficiency Curious about strategies pilots can use to maximize tax efficiency? In this episode, we’re tackling hard-hitting tax numbers, future-focused savings strategies, and essential tax changes on the horizon, especially for those over 60. You’ll learn the ins and outs of tax deductions, even on W-2 income, and tips for maximizing tax-efficient retirement income. We’ll also cover the benefits of backdoor Roth contributions, health savings accounts (HSAs), and charitable donations to reduce taxable income. Whether you’re aiming for tax-smart retirement income or looking to optimize current savings, this episode is packed with practical advice. Join us as we explore how to prepare for a financially secure retirement and why giving back can also lead to valuable tax deductions. What You'll Learn In Today's Episode: Tax-saving strategies for pilots. Key deductions for W-2 income. Tips for tax-efficient retirement income. Upcoming tax changes for individuals over 60. Pros and cons of backdoor Roth contributions. Charitable donations for tax savings. Benefits of health savings accounts (HSAs). Creating a future-focused tax plan. How giving back can benefit your finances. Roth strategies for long-term tax relief. Ideas Worth Sharing: “We’re not fans of Roth at any cost but we are fans of Roth to help with that future tax efficient income at retirement.” - Charlie Mattingly “The only way your money is going to make you happy is if you give it away.” - Charlie Mattingly “You can’t make decisions based off of taxes first.” - Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn  Andy Christopher: LinkedIn The Heart of an Organization Flight #76: To Roth or Not to Roth? The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #91: Real Estate Investing with Micah Porter Should you get into real estate investing? In this episode, we sit down with former Top Gun Navy and Air Force fighter pilot—and current UPS pilot—Micah Porter, aka Peachez. He joins us today to discuss his transition into real estate investing, sharing his motivation for entering the real estate market and why real estate became his side gig. Listen in as Micah talks about strategies to manage passive vs. active income and the common pitfalls to avoid when starting out in real estate. This episode provides practical insights for anyone considering diversifying their income streams or preparing financially for uncertain times. What You'll Learn In Today's Episode: What to do to prepare yourself for a natural disaster. The importance of carrying a small amount of cash at all times. Micah’s motivation for getting into real estate investing. The benefit of surrounding yourself with the right team. Why you have to be honest in real estate. The difference between passive and active income. Common misunderstandings around taxes and real estate. Mistakes to avoid when getting into real estate investing. Ideas Worth Sharing: “The recent hurricanes are a reminder that, wherever you are in the country, you should at least take a little bit of time to prepare yourself for whatever could come your way.” - Kevin Gormley “The best way to learn is from those who have gone before us, not from a book.” - Micah Porter “Always start with your mission objective in mind. You don’t go into real estate without thinking about it. You have to clearly define why you want to get into real estate and what your end goal is going to be.” - Micah Porter Resources In Today's Episode: Kevin Gormley: LinkedIn  Charlie Mattingly: LinkedIn  Micah Porter: LinkedIn  Flight #35  BiggerPockets  A Pilot's Guide to Real Estate Investing  Hold by Steve Chader, Jenine Doty, Jim McKissack and Linda McKissack  The Pilot Wealth Index Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #90: The Psychology of Money What does it really take to be successful with money? In this episode, we dive into key insights from The Psychology of Money by Morgan Housel, discussing principles that can help transform your relationship with money. Whether you're preparing for retirement or simply trying to make smarter financial decisions, these lessons apply to everyone. You’ll learn why discipline is crucial, how to face the reality of your financial choices, and why success can sometimes be your worst teacher. We’ll also explore the concept of moving goalposts and how constantly shifting your financial targets can keep you from feeling content. Listen in to learn how to establish meaningful goals, what true financial independence looks like, and why the happiest people are those who use money to gain freedom, fulfillment, and satisfaction in life. What You'll Learn In Today's Episode: The #1 attribute to being successful with money. The importance of behavior over knowledge. The power in having humility. Why you shouldn’t focus on your success to teach you things. How to make sure you’re not chasing an ever-moving goal. The importance of having a vision. Why you shouldn’t chase returns. Ideas Worth Sharing: “It’s okay to be content and have a vision at the same time.” - Charlie Mattingly “Your goals should be about the most important things in your life such as fulfillment or happiness and then we need to figure out how you can accomplish those things without any anxiety.” - Jon Cremer “With a moving goal post, you’ll work your entire life and your goal post will always be 10 steps ahead of you.” - Jon Cremer Resources In Today's Episode: Jon Cremer: LinkedIn Charlie Mattingly: LinkedIn Flight #88: Understanding the Federal Reserve: Insights, Misconceptions, and the Power of Authenticity with Seema Sheth  The Psychology of Money by Morgan Housel  Atomic Habits by James Clear  Pilot Wealth Index Link  Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #89: Presidential Powers and the Stock Market: What Really Drives Economic Change? How much influence does a president truly have over the stock market? In this episode, we dive deep into the relationship between presidential powers and market performance, examining how different administrations impact the economy. While many believe the president has significant control over the markets, we explore whether the data backs that up, and how much external factors really shape the financial landscape. You'll also learn how to navigate market volatility during uncertain times and why the economy is much bigger than any one leader. Tune in to uncover the facts and find out how to make sense of stock market shifts, regardless of who's in office. What You'll Learn In Today's Episode: How stock markets perform under different administrations. Why doesn’t the president have complete control over taxes? The importance of understanding politics and keeping informed. What we can do with this uncertain future that we have. Ideas Worth Sharing: “The economy is way bigger than any one president.” - Charlie Mattingly “There are a lot of hoops to go through to make a campaign promise come true because the president doesn’t control the taxes.” - Charlie Mattingly “Market volatility is going to happen regardless of who is president.” - Andy Christopher Resources In Today's Episode: Andy Christopher: LinkedIn Charlie Mattingly: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #88: Understanding the Federal Reserve: Insights, Misconceptions, and the Power of Authenticity with Seema Sheth How does the Federal Reserve shape the economy, and what should you really know about its role? In this episode, Seema Sheth, Senior Vice President and Regional Executive of the Federal Reserve Bank of St. Louis, joins the conversation to share insights on how the Fed looks beyond the data to understand the bigger picture. She discusses her unique path to success and the importance of focusing on what you truly want to achieve rather than conforming to others' expectations. You'll learn about the common misconceptions surrounding the Federal Reserve and how it utilizes its tools to influence the economy. Seema also shares her experiences as a woman in a male-dominated field and offers advice on finding ways to be authentically yourself without compromising the quality of your work. Plus, we explore the surprising aspects of inflation and how it can sometimes play a positive role in the economy. What You'll Learn In Today's Episode: What the Federal Reserve is. How the Fed looks into the stories behind the data. Why you shouldn’t judge a job before you try it. What it was like being a woman in a male-dominated workplace. The importance of being authentically yourself. The most common misconceptions about the Federal Reserve. How the Fed uses its tools to help the economy. If inflation can be a good thing. Ideas Worth Sharing: “Don’t judge a job before you try it.” - Seema Sheth “Find little places where you can be authentically yourself that doesn’t detract from the value of the work that you’re doing.” - Seema Sheth “You’re never going to ‘win’ finance. It’s not a game. However, if you can act with confidence and feel more aware, then that can be more positive.” - Seema Sheth Resources In Today's Episode: Seema Sheth: LinkedIn Charlie Mattingly: LinkedIn Kevin Gormley: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #87: The Multi-Millionaire Pilot Next Door How can you become the multi-millionaire pilot next door? In this episode, we discuss the principles of wealth building, inspired by the timeless lessons from the book The Millionaire Next Door. We’ll explore how pilots, with our unique income trajectories and financial challenges, can apply these principles to build substantial wealth over time. Tune in as we dive into the importance of living below your means, maximizing your 401(k) contributions, leveraging the new cash balance pension plans, and the power of the backdoor Roth IRA. We also discuss the challenges of maintaining discipline in a high-income profession and how to navigate the social pressures that come with the airline lifestyle. What You'll Learn In Today's Episode: Key principles from The Millionaire Next Door and how they apply to pilots. How to maximize your 401(k) and the new cash balance pension plans. The benefits of the backdoor Roth IRA and how to incorporate it into your savings strategy. The importance of maintaining discipline with spending in a high-income profession. How to prepare for retirement with a five-year countdown plan. Navigating the social pressures and maintaining financial discipline as an airline pilot. Ideas Worth Sharing: “Wealth is invisible. You may not see someone and go ‘hey, they’re wealthy,’ but that’s the whole point.” – Charlie Mattingly  “Millionaires valued financial independence over luxury or social status.” – Kevin Gormley  “If you can set up your accounts on automatic pilot, that is the key.” – Kevin Gormley Resources In Today's Episode: Charlie Mattingly: LinkedIn Kevin Gormley: LinkedIn The Millionaire Next Door by Thomas J. Stanley and William D. Danko Flight #45: What Is Sequence Of Returns Risk And Why Should It Matter To You? Avoid Running Out Of Money In Retirement   Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #86: Is the Market Overvalued? Understanding Market Valuation and Investment Strategies Is the market overvalued and on the brink of an implosion? Join us as we dive into the intricacies of market valuation and investment strategies. In this episode, we’re tackling some of the pressing questions about whether the market is currently overvalued, what market valuation metrics mean, and how investors can navigate these uncertain times. Listen in as we discuss real-world examples and actionable insights to help you understand the market better and make informed investment decisions. Whether you're concerned about market highs or looking for diversification strategies, this episode provides the clarity and guidance you need.  What You'll Learn In Today's Episode: What market valuation means and how it is measured. The implications of the current market valuation metrics. Real-world examples of market overvaluation. How to diversify your portfolio to mitigate risk. The importance of staying disciplined with your investment strategy. Historical perspectives on market highs and lows and their outcomes. Ideas Worth Sharing: "The market really is pretty huge and we can slice and dice that any number of ways.” – Andy Christopher “There’s always a reason not to invest.” – Andy Christopher “The solution is diversification - you have to be diversified.” – Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn Andy Christopher: LinkedIn   Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #85: Sunset of the Tax Cuts and Jobs Act As the sun sets on the Tax Cuts and Jobs Act, the financial landscape for many, including our pilot community, is poised for significant changes. Join us as we dive into the upcoming tax reforms set for 2026 and how they may impact your finances.  Listen in as we discuss the anticipated tax increases, the rollback of certain deductions, and strategies to mitigate the impact. We'll cover actionable insights such as Roth conversions and solo 401(k)s to help you prepare for the transition. Stay ahead of the curve and ensure your financial stability with our expert advice.  What You'll Learn In Today's Episode: The key changes in tax brackets and deductions post-2025. How the child tax credit and estate tax exclusions will be affected. Strategies for Roth conversions and maximizing your retirement savings. The benefits of solo 401(k)s and HSAs in the new tax regime. The role of annuities and life insurance in tax planning. Why understanding your tax obligations early can lead to better financial decisions. Ideas Worth Sharing: “If you get your expectations in line early on, you may not be miserable when you start to pay your taxes in 2026.” – Charlie Mattingly "The definition of happiness is the difference between our reality and our expectations." – Charlie Mattingly "I've always been a believer that annuities are good for very specific people." – Kevin Gormley Resources In Today's Episode: Charlie Mattingly: LinkedIn Kevin Gormley: LinkedIn Flight #45: What Is Sequence Of Returns Risk And Why Should It Matter To You? Avoid Running Out Of Money In Retirement   Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #84: Activist Investors What exactly is an activist investor, and how do they influence the companies they invest in? In this episode, we are joined by Andy Christopher, CFA, Lead Financial Planner, to explore the world of activist investors. You'll learn about their roles, the impact they have on companies, and whether they typically boost returns or create concerns. We'll discuss the tactics activist investors use, from advising management to restructuring companies or even replacing the board of directors. Discover how these investors differ from private equity firms and the strategies they employ to achieve their goals. This episode offers a comprehensive look at the power and influence of activist investors and the broader implications for companies and shareholders alike. What You'll Learn In Today's Episode: What is an activist investor? What do activist investors do? How activist investors change the company. What a passive investor does. When should shareholders have a say in how a company is run? Who activist investors are. What are these investors targeting? The importance of expecting change in life, business, and finances. Why you must have an emergency fund. Ideas Worth Sharing: “To improve performance, you either make more money or spend less of it.” - Andy Christopher  “What makes a good corporate governance? The owners and shareholders should have a say in how the company is run and have an informed decision.” - Andy Christopher  “Usually, activist investors are huge hedge funds, they’re wielding 10s of billions of dollars, and they can be very strategic and tactical in getting what they want, maybe even a little bit ruthless.” - Robert Eklund  Resources In Today's Episode: Robert Eklund: LinkedIn Andy Christopher: LinkedIn   Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #83: Stop Setting Goals, Instead Embrace the Suck and Find Your Joy Are you chasing the right goals and prioritizing what truly makes you happy? In this episode, we discuss the importance of setting goals that align with your joy and fulfillment. Often, we achieve goals only to find that they don't bring the happiness we expected. It's essential to consciously identify what brings you joy rather than blindly following the paths others are on. We'll explore how to avoid the pitfalls of setting the wrong goals and the impact it can have on your overall well-being. We'll also cover the importance of enjoying the process, even when it's challenging. Embracing the hard times and finding value in the journey is crucial for long-term satisfaction. You'll learn about the concept of "choosing your hard" and reflect on what you'll be proud of when looking back on your life. Listen in to learn how to align your goals with your true desires and create a fulfilling path forward. What You'll Learn In Today's Episode: Is it too late to invest in NVIDIA? Setting the right goals for success. The importance of finding your joy. How to ensure you’re pursuing the right goals for you. Why enjoying the process is essential. What choosing your hard might look like. How to balance growth with gratitude. Ideas Worth Sharing: “The hot and sexy investments are typically not where returns come from.” - Robert Eklund “If we go down the path of setting the wrong goals it can be destructive.” - Charlie Mattingly “You can have two ideas in your brain at one time. You can be content and grateful, and want to grow and get better all of the time.” - Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn Robert Eklund: LinkedIn Seeking Joy BrainTrustGrowth.com  Ed Mylett Podcast  Jon Gordon Podcast Kevin Gormley's mentioned photo       Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #82: Freedom Aviation Network How can aviation play a pivotal role in combating human trafficking? In this episode, Jared Miller, CEO and Co-Founder of Freedom Aviation Network (FAN), joins us to share the mission and impact of his organization. FAN is pioneering efforts to transport survivors of human trafficking and their advocates, offering their services completely free of charge. Learn how pilots volunteer their time and skills, and aircraft owners contribute their resources, to provide essential support for counter-human trafficking efforts, ensuring survivors reach safe shelters. Jared’s extensive background in disaster response and humanitarian aid informs his approach to this critical work. He emphasizes the importance of valuing human life and understanding the power of love and forgiveness. He also debunks common myths about human trafficking, discusses the most prevalent forms of trafficking in the USA, and highlights how men and women are affected. Tune in to discover the requirements for volunteering with Freedom Aviation Network and explore how you can contribute to this vital cause. What You'll Learn In Today's Episode: What Freedom Aviation Network does. How FAN is helping survivors get to safe shelters. The story of how FAN was created. What made Jared so passionate about this mission. How to bring humanity back into the world. The most common form of trafficking that happens in the USA. Several myths around human trafficking. The requirements to sign up as a volunteer for FAN. Ideas Worth Sharing: “If you’re not asking yourself ‘Am I a little crazy?’ along the way, then you’re probably not doing something bold enough.” - Charlie Mattingly “The human beings in your organization are hands down the single most important asset. You cannot function without the right people in your organization.” - Jared Miller “Learn to accept your own value. Learn to accept love and forgiveness.” - Jared Miller Resources In Today's Episode:   Jared Miller: LinkedIn | Website Charlie Mattingly: LinkedIn Lisa Rosenthal: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #81: Mastering Your Spending: Aligning Money with Values with Lisa Rosenthal Are you struggling to gain control of your spending and align it with your true values? In this episode, we explore a complete mindset shift to improve how you think about money. Lisa Rosenthal, Chief Operating Officer at Leading Edge Financial Planning, joins us to discuss how spending can impact marriages, lead to mistakes, and incur opportunity costs—both financial and emotional. Listen in as Lisa breaks down the importance of being intentional with your spending and introduces the concept of a spending plan rather than a strict budget. You'll learn five strategies to align your spending with your mindset, how to align your money with your goals, and why the connection between money and emotional values is so deep. We'll also explore how practicing gratitude can counteract the harmful effects of comparison, helping you find joy and clarity in your financial journey. What You'll Learn In Today's Episode: Whether crypto should be in an investment portfolio. The importance of diversification in your portfolio.  How to align your spending with your goals.  How money and emotional values are connected.  The benefit of practicing gratitude. Ideas Worth Sharing: “We don’t believe everyone needs to have a budget, but you need to have a framework and you need to know the math.” - Charlie Mattingly “Money and emotional values are deeply woven.” - Lisa Rosenthal “Comparison can be a really dangerous thing if you don’t have clarity on what your values are.” - Lisa Rosenthal Resources In Today's Episode: Charlie Mattingly: LinkedIn Lisa Rosenthal: LinkedIn I Will Teach You to Be Rich by Ramit Sethi Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #80: Should You Purchase an Airplane? Have you ever considered buying a plane? In this episode, we dive into the complexities of such a decision and why it can't just be about saving on taxes. Contrary to popular belief, setting up an LLC or another corporation may not provide the tax benefits you expect. We explore the criteria for tax deductions and why expenses must be reasonable and directly related to business purposes. Additionally, we discuss the importance of evaluating your plans for using the plane, frequency of use, and geographical considerations to determine if buying is the best option. Listen in as we talk about the benefits of renting a plane initially to understand the unique experience compared to commercial flying and the often-misunderstood operational costs associated with aircraft ownership. Ultimately, we emphasize that the right time to buy is when it aligns with your personal circumstances, regardless of market trends. What You'll Learn In Today's Episode: Why we shouldn’t rely on “saving taxes” as a reason to make a big purchase. Why setting up an LLC or another corporation may not be the answer. How to separate business from pleasure with tax deductions. How to decide whether you should buy a plane or not. Why renting a plane first might be a better option. Ideas Worth Sharing: “The expenses have to be ordinary, necessary and not extravagant. So, your expenses have to be reasonable and you have to be doing it for a business purpose. That is how you can deduct taxes.” - Kevin Gormley “We get asked all the time how much it costs to operate a plane by the hour and that is a question we can’t answer. Most of what an airplane costs is your fixed costs and everything else is fuel. You can’t put a dollar amount on it unless you’re actually flying the same hours every year.” - Jay Riendl “The right time to buy is the right time for you. Forget about the market and all of that. If it is the right time for you, then it is the right time.” - Amelie Riendl Resources In Today's Episode: Charlie Mattingly: LinkedIn Robert Eklund: LinkedIn Amelie Riendl: LinkedIn Jay Riendl: LinkedIn   Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, or by RSS! ### Flight #79: How Predictable Are Financial Markets? How do you navigate the complexities of the economy and stock market? Andy Christopher, CFA, joins the show to shed light on the relationship between the two and provide insights into predicting market entry points with precision. In this episode, we aim to dispel common myths surrounding market dynamics to help you to protect your investments. From clarifying the role of the Fed to debunking misconceptions about presidential influence on markets, Andy offers practical advice on understanding and preparing for market fluctuations. Listen in as we unravel seven prevailing myths, including the Fed's control over interest rates and the correlation between inflation and interest rates. You will learn why fearing a recession may perpetuate anxiety, how to proactively prepare for economic downturns, and how to navigate your financial future. What You'll Learn In Today's Episode: How the economy and stock market are related. Whether the Fed can print money. How much influence the Fed actually has. The correlation between inflation and interest rates. Whether the White House influences the stock market. How to prepare for a recession. Ideas Worth Sharing: “The Fed isn’t controlling the market; they’re reacting to the market to try to keep it controllable.” - Andy Christopher “Inflation and interest rates are not the same thing.” - Charlie Mattingly “If you’re scared of a recession in the future, you will always be scared because there will always be a recession. There will always be someone saying we are about to be in a recession and give them enough time and they will be correct.” - Andy Christopher Resources In Today's Episode: Charlie Mattingly: LinkedIn Andy Christopher: LinkedIn Flight #65: Mastering The Art Of Holistic Investing With Andy Christopher And Sunil Wahal US Stock Market Returns During Recessions Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #78: Should You Hire a Financial Advisor? Are you contemplating whether to enlist the expertise of a financial advisor as your income rises? In this episode, we dive into the pivotal question: Should you hire a financial advisor? We discuss how to evaluate and question potential advisors, shedding light on the crucial questions you must ask before making a decision. From deciphering who would benefit from financial advisory services to understanding the significance of thorough due diligence, we share the path to sound financial stewardship. As your financial landscape grows in complexity with increased earnings, discover the invaluable role a trusted advisor can play in navigating these uncharted waters. What You'll Learn In Today's Episode: What is going on with FedEx? How to invest in AI. Who should consider hiring an advisor. The importance of doing your due diligence. How an advisor adds value. How to analyze your risk. The science of behavioral finance. How to appropriately spend money in retirement. How to hire a financial advisor. Ideas Worth Sharing: “The more money you have, the more complicated things get, so having someone to guide you is helpful.” - Jon Cremer “The biggest risk of doing your finances on your own is making one or two really big mistakes.” - Jon Cremer “If a financial advisor cannot make it simple and clear as to how they get paid, then there is a problem. If they tell you that you don’t pay them, then you should also run away.” - Charlie Mattingly Resources In Today's Episode: Jon Cremer: LinkedIn Charlie Mattingly: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #77: Credit Card Points Today we're diving deep into credit card points, sharing highlights for both seasoned collectors and newcomers alike. Joining us is Mary Graves, who shares her journey into the world of point collection and how it can pave the way for a fulfilling retirement. Discover the strategic moves necessary to accumulate points without depleting your savings, and learn how to leverage them effectively for travel experiences. Listen in as Mary highlights the importance of viewing debt as a tool and offers guidance on who should—and shouldn't—get involved in credit card point accumulation. You will learn about travel hacking with credit card points, as well as how to avoid the pitfalls of hoarding points with the hope of future value appreciation. Mary also sheds light on the concept of devaluation and inflation in the points economy, emphasizing the significance of maximizing the utility of your points to reap the greatest rewards. What You'll Learn In Today's Episode: How Mary got involved in credit card points. The importance of having the right plan while you’re working for retirement. How to use credit card points to travel. Why debt should be used as a tool. Who should not get involved with credit card points. What cards are best for credit points. How to stay organized with credit card points. Ideas Worth Sharing: “If you’re guilty of hoarding credit card points, hoping that they will be worth more in the future, then this is probably not for you. There isn’t any point in you trying to earn points if you’re not going to use them.” - Mary Graves  “Devaluation of points is the same thing as inflation. It takes a lot more dollars to buy things.” - Kevin Gormley  “You have to stay very organized in order to utilize credit card points.” - Mary Graves Resources In Today's Episode: Mary Graves: Instagram The Frequent Miler Blog Award Wallet Kevin Gormley: LinkedIn Robert Eklund: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #76: To Roth or Not to Roth? With airlines finalizing new contracts and increased 401(k) contributions, the question of whether to invest in a Roth IRA has become a hot topic among pilots. In this episode, we aim to provide clarity on this complex decision and offer guidance tailored to various scenarios and limitations. From understanding who can contribute to a Roth IRA to delving into the concept of Roths, we explore considerations for first officers. Listen in as we weigh the benefits of investing in a Roth IRA, particularly during times of financial stability. We'll address concerns about accumulating too much wealth in a 401(k) and the potential tax implications during retirement, shedding light on the importance of tax-efficient investment strategies. What You'll Learn In Today's Episode: The importance of keeping good records. What a Roth is. What a first officer should consider when it comes to Roths. Whether it's possible to have too much money in a 401(k). How Roth can allow you some flexibility in retirement. Whether Roth money will ever be taxable. Ideas Worth Sharing: “When you get into retirement, you’re going to want to buy something big and when people don’t have a pile of tax-free money or brokerage money that is tax efficient, they pull money out of their 401(k)s or IRAs and jump a couple tax brackets in that process.” - Charlie Mattingly  “If you’re in your 50s and you don’t have a Roth IRA at all, then open one, put a few dollars in it because there is a 5-year seasoning rule on that account and you don’t want to wait until you’re 60 or 65 to start to deal with that.” - Charlie Mattingly  “With a non-elective contribution being all tax-deferred right now, if you want to put money into the 401(k) and you can afford it, now would be a good time to put it all in Roth.” - Kevin Gormley  Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn Robert Eklund: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #75: The Power of Legacy Planning Did you know that you're leaving a legacy, whether you realize it or not? Join us for an eye-opening discussion on legacy planning with Jon Cremer, Financial Advisor. In this episode, we dive into the impact of intentional legacy planning and why it's crucial to start thinking about it sooner rather than later. From understanding the importance of legacy planning to discovering the optimal time to begin, we discuss how you can leave a lasting impact on future generations. You will learn the significance of living each day with purpose and seizing opportunities to shape your legacy. With practical advice and seven actionable steps for legacy planning, you'll discover how to document your personal history, preserve family traditions, and foster open communication with your loved ones about your legacy aspirations. What You'll Learn In Today's Episode: Why legacy planning is so important. When the right time to start legacy planning is. The impact you can make by planning for your legacy. The power of reflection. Seven steps for legacy planning. The value of having gratitude. Ideas Worth Sharing: “We have the ability to impact not only our kids but their kids too. So the opportunity for impact is huge!” - Charlie Mattingly “Reflection is a big part of what can make you successful in leaving a legacy.” - Robert Eklund “It doesn’t matter how wealthy you are, you can out-spend your money.” - Robert Eklund Resources In Today's Episode: Jon Cremer: LinkedIn Charlie Mattingly: LinkedIn Robert Eklund: LinkedIn Atomic Habits by James Clear Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #74: Navigating Real Estate Investment Trusts (REITs) Are you ready to explore the dynamic world of Real Estate Investment Trusts (REITs)? Dr. John Worth is an expert in economics and the Executive Vice President of Research and Investment Outreach in a REIT, and he joins us to share his deep understanding of REITs, their crucial role in a diversified portfolio, and how they perform in today's economic environment. Tune in to learn about the operation of REITs within the real estate market, their interaction with other asset classes, and special features like taxation and income distribution. Dr. Worth also sheds light on the post-COVID commercial real estate scenario, discussing everything from data centers to healthcare facilities and the evolving office space sector.  What You'll Learn In Today's Episode: The significance and size of the REIT market. How REITs contribute to a diversified investment portfolio. How COVID-19 impacted commercial real estate and REITs. The correlation between REITs, stocks, and bonds. The future outlook for REITs in various sectors, including residential and office spaces. Taxation and income considerations for REIT investors. Ideas Worth Sharing: "REITs represent a vital component in a diversified investment portfolio, offering unique benefits in terms of income and growth." – Dr. John Worth “The correlation between single-family housing and REITs generally is not actually that high. So just because you have a house, that doesn't mean you don't need commercial real estate in your portfolio.” – Dr. John Worth "REITs have come into this higher interest rate environment with very well managed balance sheets... that puts REITs in a position where they can start to be opportunistic as other investors need to get rid of properties because they've got debt coming due.” – Dr. John Worth Resources In Today's Episode: Dr. John Worth: LinkedIn Charlie Mattingly: LinkedIn Kevin Gormley: LinkedIn Robert Eklund: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #73: The Tax Man Cometh - Do Not Be Afraid! Join us for a deep dive into the complex world of taxes, where we'll dissect the mysteries of what's fraudulent, what's a gray area, and what's not only legal, but also incredibly smart. Discover why the allure of complexity may not be in your best interest and why trying to outsmart the tax man is a risky game.  We'll navigate through side hustles, farm taxation, deductions on vehicles, and even delve into deducting expenses related to airplanes. You will learn the dos and don'ts of reducing taxable income without jeopardizing your net worth and several smart financial moves, from backdoor Roth strategies to maximizing benefits from Health Savings Accounts and taxable brokerage accounts. What You'll Learn In Today's Episode: What you should do with a bonus check. Why we’re all drawn to solving the riddle of tax. What happens if you want to buy a second home. Why you shouldn’t reduce your NET worth to save on taxes. How to be smart about your taxes. What you need to know about the backdoor Roth. Ideas Worth Sharing: “Make a good investment decision first, think about taxes second.” - Charlie Mattingly “Don’t fool yourself into thinking that losing money to save on taxes is ever a good idea because it’s just not.” - Kevin Gormley “Real estate can be done correctly and can be a great investment if you enjoy it and are good at it, but don’t spend a dollar trying to save thirty cents.” - Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn Kevin Gormley: LinkedIn Robert Eklund: LinkedIn How Snowbirds Can Establish Residency in Florida for Tax Purposes Former Us Airways Pilot Sentenced in North Carolina  2024 Key Financial Numbers That You Need to Know | T. Rowe Price Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #72: Seven Lessons Learned from Markets in 2023 Kevin Gormley, CFP, CPA, PFS, and Lead Financial Planner at Leading Edge Financial Planning LLC., joins the show to help us explain the seven critical lessons learned in the tumultuous financial landscape of the past year. Brace yourself for a journey through bank failures, crypto turmoil, and market fluctuations that led to the collapse of major financial institutions, sending shockwaves through the industry. Listen in to learn about the emotional rollercoaster experienced by investors during the ups and downs of 2023. You'll discover the significance of diversification in weathering financial storms and the art of staying in the fight. We also share lessons on risk tolerance, capacity, and the art of ignoring forecasts in the quest for financial success. What You'll Learn In Today's Episode: What happened to the Tennessee Flygirl? Whether the bonus/retro should go to the 401(k). What caused the third-largest banking failure in U.S. history? What it felt like to be an investor this year. Why the S&P was high but portfolios were low. The importance of diversification in your portfolio. Why it is essential to think of our risk tolerance. The benefit of ignoring the forecasts. Ideas Worth Sharing: “Oftentimes, the good returns come right on the heels of very difficult times.” - Charlie Mattingly “As an investor, you never want to sell low and buy high, over and over again.” - Charlie Mattingly “The reason diversification is such a beautiful thing is because it isn’t always about making the most amount of money—it’s about being able to stay in the fight.” - Kevin Gormley Resources In Today's Episode: Charlie Mattingly: LinkedIn Kevin Gormley: LinkedIn Robert Eklund: LinkedIn “Five Ways You Managed to Lose Money this Year” by Josh Brown Winning the Loser's Game: Timeless Strategies for Successful Investing by Charles D. Ellis The S&P 500 moved 8.9% higher in November “Rich Author, Poor Readers” by Ben Carlson TNFlygirl Crash 7 Dec 2023 N5891J Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #71: A Tribute to Munger Unlock the secrets of successful investing as we pay tribute to the legendary Charlie Munger. A titan in the business world, Munger's principles for both investing and life are timeless lessons that can shape your journey to prosperity. Delve into the wisdom of a man who, alongside Warren Buffett, navigated the complex world of finance with hunger, humility and unmatched intellect. Listen in to discover why Munger believed that a mega-mansion could jeopardize your happiness, as well as why the real money lies in the patient waiting, not just buying and selling. We unravel the profound insights of Charlie Munger that go beyond investment strategies—principles that can redefine your approach to wealth and well-being. What You'll Learn In Today's Episode: What to expect long-term in investing. Charlie Munger’s background story. What you need to be good at investing. Why Charlie stayed in a modest house for his whole life. Why you can’t time the market. Ideas Worth Sharing: “Charlie Munger was hungry, humble and smart and that’s what you need to be good at investing.” - Charlie Mattingly “Charlie Munger warned that a mega-mansion can make you less happy. He stayed in the same relatively modest house for six decades.” - Charlie Mattingly “It’s about time in the market, not timing the market.” - Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn Robert Eklund: LinkedIn Charlie Munger on The Acquired Podcast Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #70: Marines Eat Glass and Love Bonds Explore the world of bonds with Jim Jackson, Co-Chief Investment Officer at Victory Capital. In this episode, Jim delves into the role bonds play in a diverse portfolio and the predictability of their performance compared to stocks. He also simplifies the complexities of bonds, emphasizing their mathematical nature in contrast to stocks, and challenges the financial industry's predictive shortcomings by opting instead for planning. Listen in as Jim highlights the importance of focusing on processes that lead to optimal returns. You'll learn about crisis alpha, the power of having an investment plan aligned with your risk tolerance—one that stands resilient through time—and more. What You'll Learn In Today's Episode: The role of bonds in a diverse portfolio. If we can predict when rates will go down or up. Why bonds are valuable. If stocks are better than bonds. The best crisis alpha to have. Ideas Worth Sharing: “Bonds offer diversification.” - Jim Jackson “The financial industry, in general, does a terrible job of predicting. So we have to focus on the processes that get the best returns.” - Jim Jackson “The only free lunch in finance is diversification.” - Jim Jackson Resources In Today's Episode: Charlie Mattingly: LinkedIn Robert Eklund: LinkedIn Jim Jackson: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #69: Do You Have a Wealthy Mindset? When it comes to creating a positive environment for success, it's not just about investment returns—it's about your mental framework and decision-making. In today's episode, we explore how to identify whether you have a wealthy mindset, as well as what it means to embrace the KISS principle. You’ll find out why being a lifelong learner is crucial and how treating all aspects of your life as investments can lead to both financial prosperity and happiness with a sense of abundance. Listen in as we focus on the interplay between financial security and mental well-being. We also explore the critical elements of setting yourself up for a prosperous retirement, the ultimate goal of achieving happiness alongside financial stability, and the significance of the right mindset and positive decision-making to achieve success and enjoy a fulfilling life. What You'll Learn In Today's Episode: What makes someone have a successful retirement. What wealth actually is. The importance of having the right mindset. Why you must have an emergency fund. The benefit of automating your savings. What the KISS principle is. Ideas Worth Sharing: “You’re not alone. If you think your profession doesn’t have any mental health issues, you’re wrong. Pilots are not any different.” - Robert Eklund “Along with money, we have to have the right mindset or we will be miserable.” - Charlie Mattingly “Be comfortable with being a life-long learner and you will do better.” - Robert Eklund Resources In Today's Episode: Charlie Mattingly: LinkedIn Robert Eklund: LinkedIn   Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #68: What To Do With Your Bonus Check What should you do with unexpected financial windfalls, such as a bonus check or unforeseen extra income? Today we answer this question and address the essential balance between celebrating your financial wins and planning for the future, sharing valuable tips to avoid financial pitfalls and the importance of building a robust emergency fund. Listen in to hear the benefits of having liquid assets and paying off debt, as well as insights into optimizing your 401(k) and leveraging real estate investment in your financial portfolio. You'll learn how to make the most of unexpected financial gains and secure a prosperous future. What You'll Learn In Today's Episode: What to do with your bonus checks. The benefit of celebrating your wins and bonuses. The importance of consulting your tax professionals. Tips to avoid getting in trouble with the IRS. Why it is essential to have an emergency fund. The importance of paying off your debt. How to maximize your 401(k). Where real estate investment can be used in your portfolio. Ideas Worth Sharing: “There is no spending like guilt-free spending.” - Robert Eklund “It is important to plan, but we can’t plan for tomorrow. We don’t know what tomorrow holds for us. So, take time to celebrate.” - Charlie Mattingly “The ability to have liquid assets is so advantageous we can’t even overstate it.” - Charlie Mattingly Resources In Today's Episode: Charlie Mattingly: LinkedIn Robert Eklund: LinkedIn   Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #67: Marriage and Money: Navigating Financial Harmony Discover the secrets to a harmonious marriage and a prosperous financial life in this engaging panel discussion. Join us as we sit down with our team members at Leading Edge Planning, including Betsy Wheeler, Paraplanner, Kevin Gormley, Principal, Jon Cremer, Financial Advisor, and Nolan Clark, Paraplanner, to explore the intricate relationship between marriage and money. Listen in to learn about the common causes of financial disputes in couples, as well as how to navigate opposing spending habits. You'll gain insights into the importance of understanding your partner's financial background and the significance of setting and sharing goals. We'll also discuss the role of designated date nights, the art of compromise, and the liberating nature of a well-crafted spending plan. What You'll Learn In Today's Episode: The importance of tracking your spending How to create a spending plan. The importance of understanding where your partner's habits come from. Why you must have open communication around financial goals. How to let the little details go in marriage money conversations. The benefit of designating a night for date night. Ideas Worth Sharing: “The ultimate goal should be to spend less than you make.” - Nolan Clark “Before you ever have the budget discussion in your marriage, have the discussion about goals. A good idea of where we’re heading to is vastly more important than how much we can spend at Starbucks.” - Jon Cremer “Your spending reflects what is important to your family. So, start with your values and start with those goals and then work backward.” - Charlie Mattingly Resources In Today's Episode: Kevin Gormley: LinkedIn Charlie Mattingly: LinkedIn Betsy Wheeler: LinkedIn Nolan Clark: LinkedIn Jon Cremer: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #66: Flying High with Fighter Pilot Roger Lance In this episode, we have the privilege of hearing the remarkable aviation journey of Roger Lance, a retired Air Force officer and Vietnam War veteran. Roger takes us on a captivating flight through his experiences, from his early days in aviation to the intense moments in the war. He provides a glimpse into the different aircraft he piloted and shares his favorites, shedding light on the competitive yet camaraderie-filled world of flying. Roger's insights into the importance of teamwork and humility in the Air Force underscore the collaborative efforts that keep aviators soaring. Join us for an engaging conversation that offers a unique perspective on the world of high-powered aircraft and the exceptional individuals who fly them. What You'll Learn In Today's Episode: Roger’s aviation journey. What got him interested in flying. Which planes he was in charge of flying. How he got into the Air Force. His favorite plane to fly. Ideas Worth Sharing: “When flying these high-powered airplanes, you have to think you’re the best to be the best even though you are not.” - Roger Lance “Flying is really competitive. You wish everyone well, but you want to beat the other guy.” - Roger Lance “You may think you're God's gift to aviation, but the ones before you were better.” - Roger Lance Resources In Today's Episode: Thud Ridge by Jack Broughton Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #65: Mastering the Art of Holistic Investing with Andy Christopher and Sunil Wahal Today we're joined by investment expert Andy Christopher, a Naval Academy graduate and F-35 Contract Instructor Pilot, and Sunil Wahal, a Professor at Arizona State University and Consultant to Avantis Investors. Together, they shed light on the intricacies of investing, emphasizing its profound connection to life itself, and the importance of self-awareness, helping you calibrate your risk tolerance and assess potential risks in your investment portfolio. Listen in as we discuss the critical aspect of diversification, particularly relevant for pilots, highlighting the lessons learned during the challenges of the COVID-19 pandemic. You will learn the art of asset allocation and its alignment with your future consumption plans, steering you toward smart investment decisions. What You'll Learn In Today's Episode: How to think about investing more holistically. The importance of diversifying your portfolio. Why you need to assess your risks in investments. How to approach asset allocation. Why re-balancing your portfolio is key. Where private equity fits in. Why index funds may be misunderstood. Ideas Worth Sharing: “Save today to consume something in the future. That is how investing works.” - Sunil Wahal “Re-balancing makes a big difference to investors' portfolios. It is one of the most valuable things financial advisors do for their clients—it helps them so much. Done thoughtfully, it can help on the tax side as well. ” - Sunil Wahal “The best way to think about private equity is to think about what risk you are taking.” - Sunil Wahal Resources In Today's Episode: Andy Christopher: LinkedIn Sunil Wahal: LinkedIn Share The Love: If you like The Pilot Money Guys podcast … Never miss an episode by subscribing via Apple Podcasts, Spotify, Google Podcasts, or by RSS! ### Flight #63: Dumb Things Smart People Do With Money Pilot Money Guys: Flight #63: Dumb Things Smart People Do With MoneyQuestions From the Flight Deck:• Next year all 401k catch-up contributions will be Roth.  How will this affect your taxes? • https://www.kiplinger.com/taxes/the-problem-with-401k-catch-up-contributions• Under SECURE 2.0, if you are at least 50 years old and earned $145,000 or more in the previous year, you can make catch-up contributions to your employer-sponsored 401(k) account.• But there’s a catch. You would have to make those extra contributions on a Roth basis, using after-tax money.• You wouldn’t be able to get tax deductions on those catch-up contributions as you would with typical 401(k) contributions, but you could withdraw the money tax-free when you retire. Dumb Things Smart People Do with Money• Vanguard’s Advisor’s Alpha – They say most value is from behavioral coaching.• https://advisors.vanguard.com/advisors-alpha#overview • Buy High – Sell Low – why? • Example: Value investment premium – Part of premium could be from our human behavior that seems to persist and is not arbitraged away. •  “According to the behavioral school of thought, human tendencies are behind the existence of the value premium. Many investors are lured by the appeal of companies with exciting growth stories and prospect of strong short-term returns, while being deterred by those that receive little fanfare or are unloved by the masses.”• From article by Investment Firm Robeco.• “Human instincts drive the Value premium” • Recency bias – Recency bias is the tendency to put too much emphasis on recent events, such as a stock-market rout, the meteoric rise of bitcoin or a meme stock such as GameStop, for example.•  The “Lost Decade” is mostly ignored due to lack of recency.     •  “The term “Lost Decade for Stocks” refers to the ten-year period from 12/31/1999 through 12/31/2009, when the S&P 500® generated an annualized total return of -0.9% over the period. This was only the second time that the market actually had a negative total return over a decade period.” • Average investor performance vs. The investment’s performance – ARKK.•   See Pilot Money Guys Podcast/Flight #30 “Chasing Hot Stocks – Investing in the Rearview Mirror” • Morningstar’s “Mind the Gap...”  https://www.morningstar.com/lp/mind-the-gap • Morningstar Article:  “Bad timing cost investors one fifth of their funds’ returns”  • Morningstar investor research firm recently published an article titled, “Bad Timing Cost Investors One Fifth of Their Funds’ Returns ### Flight #62: What is a Cash Balance Plan and is it Right For You? Pilot Money Guys: Flight #62: What is a Cash Balance Plan and is it Right For You?Airline/Aviation News:United AIP, American, FedEx AIP segwayQuestions From The Flight Deck:• What if age 67 passes? What is Hybrid retirement?• https://www.nbcnews.com/news/amp/rcna95349• The Senate still needs to pass its own version of the bill before the current authorization expires on Sept. 30.1. Make an intentional decision - I.e., plan.• Those that do not plan – life happens to them, and they get angry and bitter.2. If you’re squarely “in the green” - Retire!• 70% - 90%3. If you LOVE flying – fly part time.4. If you don’t love slipping the surely bonds BUT you’re on the financial bubble – Hybrid retire.• Do NOT save in your retirement accounts!• Additional $30k plus in your pocket for spending.• Fly part-time – 1-2 trips per month.• 2 years of NO retirement distributions:• ~8% improvement or more income• VSP ~ $1000 per month 5 years• Social Security Strategy – wait till 70?• Insurance against bad stock market• $7mm left over versus $4mmMeat of the Mission:What is a cash balance plan?• Cash Balance Plan Basics:• Pension-like, Hybrid...DC versus DB.• Big picture – a better way to save more money!• Is it guaranteed or not? Fiduciary responsibility.• Market-based plans are a type of cash balance plan where the account’s growth is tied to the actual return on plan assets. This contrasts with a traditional cash balance plan that typically has a fixed interest credit rate.• Pros/Cons in relation to 401k, in relation to Pension.• MBCBP – may underperform...• Think annuity-like versus market like...what does the average investor get for investment returns?• Flexible – unlike Non-Qualified “spill-over” plansDifferences at airlines? Decision points for FedEx, Delta, American etc.https://www.msn.com/en-us/money/companies/american-airlines-pilots-want-bargaining-do-over-after-united-bests-on-pay/ar-AA1e5RMo ### Flight #61: Facebook Confessions - Top 10 Things Retirees Wish They Would Have Done to Prepare for Retirement Pilot Money Guys: Flight #61: Facebook Confessions - Top 10 Things Retirees Wish They Would Have Done to Prepare for RetirementQuestions From the Flight Deck: • What do we do with large retro/bonus checks?• Is a cash balance plan any good? Meat of the Mission: 1. Never spend more than they make.a. How?i. Habit Patterns...ii. What type of spending actually makes you happy?1. Spend money on fun stuff; Leisure, fun, travel2. Don’t spend money on stuff that does not add value – cut it out.3. YNAB, EveryDollar or other apps.4. https://www.iwillteachyoutoberich.com/5. Amelie Riendle Podcast (Flight #44 and Flight #27) 2. Prepare more, plan more... a. What do you want to do in retirement? You can only sit on the beach or play golf so much.i. The #1 thing people do in retirement is watch television! Michael Finkeb. Know your retirement needs...it’s expensive!i. Start a financial plan now to know your “number” for how much to save to meet your retirement financial goals. Don’t let it be a lingering question.c. Simulate (software), practice...take some time off and live on the retirement budget.d. Deliberation, Planning and Intention in and of themselves make people happier in retirement: (Michael Finke)i. E.g., Those that retire in accordance with their plan vs. Forced retirement.1. Both experience happiness, but forced retirement is a delayed happiness (3- 4 years)ii. E.g., Those that move after retirement...not b/c they move but because they had a deliberate plan with intentionality.1. Control vs. Out of Control???2. Michael Finke says “Invest in Imagination” 3. Never compromise their health: exercise and eat right. a. Exercise not only helps you feel better in retirement but also helps mental capacity and cognitive health. i. Flight #58ii. Exercise and the Brain: The Neuroscience of Fitness Explored.1. “Exercise stimulates neurogenesis – the creation of new neurons – primarily in the hippocampus, influencing memory and learning while increasing key mood-regulating neurotransmitters. It also enhances brain plasticity, essential for recovery from injury and aging, and improves cognitive functions such as attention and memory.”iii. Estimated that average couple will need $315k to cover medical expenses in retirement, excluding LTC (https://institutional.fidelity.com/app/item/RD_13569_42402/retirement-planninghealth-care-costs.html) 4. Invest more in their relationships and always work to build new connections. (Michael Finke) a. “Dude...you’re not as good at retirement as the women are.”b. Invest in relationships outside of work.c. Strongest predictor of life satisfaction during retirement:i. Relationship with your spouse – huge impact, good and bad. Highest statistical significance.1. Marital counseling to prepare...? (Valuable investment)ii. Friends – Second highest statistical significance.iii. Your kids – not as significant...statistically and FB comments online.d. Takeaway – Invest in your marriage...invest in friendships outside of work.5. Plan, prepare for taxes...it is a large (frustrating) expense. a. What are the financial AND emotional costs of paying too much taxes in retirement?i. RMDs – when not needed?ii. Legacy planning: Roth, 529, Brokerage account.iii. Practical side: HSA, Roth, Cash, Taxable Brokerage6. The right mindset – what is money? It does not make you happy... a. Money is paper or numbers on a computer screen...E.g., bricks to build a house.Pre-Retirement: b. Don’t allow money to make you miserable...c. Examples of how money ALONE has made people miserablei. By chasing after it too much...like a trophy1. Airlines are great b/c fly more = more pay. BUT...ii. Money is a tool to reduce stress and increase your enjoyment...there are other tools!Post-Retirement:d. It’s okay to spend your retirement money on frivolous stuff...i. Example, people spend from pensions but not on IRAs, 401ks. Defined Contributions versus Defined Benefit.ii. Finke example: Mom has a pension and spends every dollar happily, but refuses/hates to draw from her IRAe. Understand what truly DOES make you happy in retirement – you must invest in these three things:i. Financesii. Healthiii. Relationships7. Realize there are things that you cannot control – Realize that you have more control (of other areas) than you realize: a. Example – Short term stock market gyrations versus your own personal inflation.b. Example – Our country's debt crisis – saving more to prepare.c. Example – Higher inflation and taxes in the future – save more to prepare.d. If things go really badly – you'll be glad you prepared, saved, etc.e. Example – MGP “bad timing” scenario – 2008-type retirement for airline pilots at age 60.Summary: Three Pillars: Health, Relationships, Money. Invest and plan for each!!! Facebook Group: Retired or Thinking Retirement – Michael Finke. “...Lurker for a couple of years...For those in retirement if they could turn back the clock five years what would they have done differently...Roth IRAs/HSAs all over the place.8. Be an Ant during working years and be a Grasshopper in retirement (up to a point). Though Aesop’s fable is regarded as a lesson in thriftiness, “grasshoppers” are likelier to smooth their spending over their lifespans. Don’t wear thriftiness as a badge of honor- you saved to consume later- hint, it is now later!https://www.aaii.com/journal/article/grasshoppers-and-ants-in-retirement9. Don’t compare (especially finances) – live someone else’s values. a. Comparison is the thief of joy!i. From this article:ii. “Feelings of jealousy, frustration, and hopelessness emerge if comparisons continue. If left unaddressed, chronic anxiety and depression can stem from such behavior.”iii. Avoid comparing other peoples' "outsides" to your own "insides"b. When, if ever, is it okay to compare yourself to someone else?c. How to prevent comparison from limiting your success and peace of mind?10. Even if we do not want to think about it, our mortality is real. Should we spend the money today or wait until tomorrow? How many pieces should I cut “the financial cake” into not knowing how many years we shall be here. Very few get to spend the last dollar at the last second of life. How do we create a good retirement under so much uncertainty?a. Consider your legacy not “at the end of life” but 50 years from now. Helps to consider mortality and legacy that you want to leave financially. ### Flight #60: Fighter Pilot Stories and College Savings Planning with 529s Pilot Money Guys: Flight #60: Fighter Pilot Stories And College Savings Planning With 529sQuestions From The Flight Deck:Introducing:Andy Christopher – F18 Navy Fighter Pilot and Investment Advisor.• Background• How’d you get interested in flying? Why the Navy?• Navy flight experience.• Ejection story – first flight!?! Meat of the Mission – 529sCommon Questions:• What if my kid gets a scholarship?• Do I need to invest in my state’s 529? No!• What if I overfund the 529?• Can I give my 529 to my child?• How does the 529 affect financial aid?• Can I use the 529 for United, Delta, SWA feeder schools – aka career development programs.• United Aviate• Delta Propel Program• SWA Destination 225• Should I just use the Roth IRA? Roth 401k?• The major difference between Roth IRA withdrawals and Roth 401k withdrawals:• There is one catch, though. Early withdrawals have to be prorated between (nontaxable) contributions and (taxable) earnings. To calculate the portion of the withdrawal attributable to earnings, simply multiply the withdrawal amount by the ratio of total account earnings to account balance. U.S. Department of Labor. “401(k) Plans for Small Businesses Supplement.”• Why save for college?• College Tuition Inflation Statistics | BestColleges• Tuition increases over time have traditionally outpaced inflation o Avoid student loan debt (for parents and children)• One of the most expensive “investments” in one’s life• 529 basics• Similar to Roth IRA: After-tax money in, tax-free money out when used for qualifying tuition expenses• FAFSA: Does a 529 plan affect financial aid? - Savingforcollege.com• Any parental assets beyond that amount ($10,000) will reduce a student’s aid package by up to a maximum of 5.64% of the asset’s value.• So, if a parent’s 529 account exceeds the Asset Protection Allowance by $10,000, his child’s financial aid award could be reduced by as much as $564.• Which plan to pick?• What Is a 529 Plan? - Savingforcollege.com• Don’t have to use your state’s plan, but may be reasons to use in-house plan• Unique plan rules for transfer of ownership, total account value limits for contributions• State tax benefits (OH)• E.g., Virginia residents – tax deduction PER ACCOUNT, age 70 rule and tax deductions carry forward...• Low-cost plans (Utah my529, W VA, etc.)• How much to save?• Vanguard Savings Calculator• Rule of thumb:▪ Public vs. Private▪ Scholarship▪ Other sources of funding: grandparents, GI Bill, etc.• “Superfunding”: 10 Rules for Superfunding a 529 Plan - Savingforcollege.com• How to invest the contributions?• Low-cost/index approach• Target-enrollment date (works like a 401(k) target-date fund)• What if you don’t use the funds?• Estate Planning Considerations: Dynasty 529 Plan For Multigenerational College Expenses (kitces.com)• Secure Act 2.0 Changes: The SECURE Act 2.0: The Most Impactful Provisions #10 — Moving 529 Assets to a Roth IRA - Fred Reish• Withdrawal Options: Penalty-free (not tax free) for service academies, scholarship, death/disability• Changing beneficiaries• Veteran Benefits• GI Bill Transfer• State Specific Benefits (CalVets, etc.)▪ Hazlewood Act - Through the state’s Hazlewood Act, originally approved in 1943, Texas promises its veterans or their survivors 150 free credit hours at any of the state’s public universities or community colleges, once their federal benefits have been exhausted. And vets may transfer hours they don't use to their children.• Hazlewood benefits are available to veterans who currently reside in Texas and who lived in Texas or had Texas as their home of record at the time of enlistment, or who simply enlisted in Texas.1. Vanguard college funding calculatorsa. https://vanguard.wealthmsi.com/csp.php2. Leading Edge 529 videoa. https://youtu.be/Br4ws8waxDQ3. Morningstar College report, comparison.a. https://www.morningstar.com/personal-finance/best-529-plans-2023 ### Flight #59: Airline News, Market Updates and Long-Term Care Insurance Primer Pilot Money Guys: Flight #59: Airline News, Market Updates and Long-Term Care Insurance Primer  Airline News: • Pilot retirement age 67!!! Maybe... • https://www.usnews.com/news/us/articles/2023-06-14/u-s-house-panel-votes-to-raise-commercial-pilot-retirement-age-to- 67#:~:text=%22While%20commercial%20airline%20pilots%20are,help%20address%20a %20pilot%20shortage.  • The pilot age proposal faces opposition from unions and an uncertain fate by a U.S. Senate committee, which will consider its version of the FAA measure on Thursday and does not currently include the pilot age hike. • The Air Line Pilots Association (ALPA) opposed raising the retirement age and says it could cause airline scheduling and pilot training issues and require reopening pilot contracts. Even if the proposal is approved, the union noted that international rules would still prevent pilots older than 65 from flying in most countries outside the U.S. ALPA called the proposal a "politically driven choice that betrays a fundamental understanding of airline industry operations, the pilot profession, and safety." • American Airlines pilot sues over ESG funds in his 401k. • “The complaint by American Airlines pilot Bryan Spence was filed on June 2, 2023, in federal court in Fort Worth, Texas, against American Airlines, its employee benefits committee, Fidelity Investments Institutional, and Financial Engines Advisors.”• “...the suit is significant because it concerns one of America’s largest pensions, takes aim at new federal guidance involving retirement plans, and may affect the plan’s self- directed brokerage account option, also known as the brokerage window. The brokerage window is the part of a plan that lets participants invest in funds and publicly traded securities outside the limited menu on offer. In 2021, the American Airlines plan brokerage window reportedly had 12% of the plan value.” • “What’s concerning about this lawsuit if it goes anywhere, is it suggests there is some sort of fiduciary obligation to vet individual funds and individual securities available through a brokerage window,” Hadley says. Attorneys for the plaintiff didn’t respond to requests for comment.”   Questions From The Flight Deck: 1. What are the best wealth-building habits we’ve seen and learned in our experience working with clients? 2. I’ve stopped investing...tired of throwing good money after bad...   Meat of the Mission: • How to think about LTC...mindset. • Hard to plan for your 85-year-old self... • Four options / basis types: • Standard LTC insurance – pay monthly, forever • Premiums increase, strict medical screening. • Use or lose...not totally true, always. • Annuity – increased payouts • Do you need an annuity? • Payout doubles for a few years... • Hybrid Life Insurance – 2nd to die...or individual policy. • Life insurance or LTC insurance. • Self-Funding... • Plan for it... • Set aside the funds and name it! • Tax Considerations • VA Benefits • https://www.va.gov/health-care/about-va-health-benefits/long-term-care/ • Private Pay: Even though VA, Medicare, Medicaid and other funding sources cover the costs of some long-term care services and settings, depending on eligibility, many people need to use their own income or savings to pay part of the costs for long term care services or settings they need or prefer. For example, people often use their own resources to pay for: • Residing in an Assisted Living Facility or Adult Family Home • Paid caregiver assistance with personal care needs, chores, or meals in their home • Medicaid Trusts? • Medicaid trusts are designed to help people qualify for Medicaid, the government health insurance program. Unlike Medicare, which is not means-tested, Medicaid is only available to people of limited financial means. • The program is administered by states, which determine their own Medicaid eligibility requirements in a variety of ways. In most, the annual income limit is $29,160 or less. This cap includes Social Security and pension benefits as well as wages and investment income. Financial resources such as bank accounts, investments, revocable trusts and real estate typically can’t total more than $2,000. People who have more income and more assets may have to spend their own assets to pay for nursing home care until their assets have declined to the point, they meet the Medicaid caps. • An irrevocable Medicaid trust is designed to help someone qualify for Medicaid without having to deplete their own assets. After creating the trust, they can transfer in enough assets to bring them below Medicaid’s caps. Once they have done that, assuming they have followed the rules, Medicaid will pay some or all of their nursing home costs. In this way, an irrevocable trust can protect assets from nursing home costs.   Sources https://www.morningstar.com/personal-finance/100-must-know-statistics-about-long-term-care-2023-edition Yahoo Finance on Irrevocable Trusts for LTC Is Long-Term Care Insurance Tax-Deductible? - SmartAsset Do You Have to Pay a Long-Term Care Tax? - SmartAsset https://www.va.gov/health-care/about-va-health-benefits/long-term-care/ https://www.aaltci.org/long-term-care-insurance/learning-center/long-term-care-insurance- partnership-plans.php ### Flight #58: What Good is Wealth Without Health? Pilot Money Guys: Flight #58: What Good is Wealth Without Health?Airline News:• American Airlines, FedEx Agreements in Principle: AIP... How To Think About Your Health And Improve Your Quality Of Life Now And In RetirementSources:1. Financial wellness can increase the quality of your physical health.a. High levels of financial stress manifest through physical symptoms like sleep loss, anxiety, headaches/migraines, compromised immune systems, digestive issues, high blood pressure, muscle tension, heart arrhythmia, depression and a feeling of being overwhelmed.2. Can induce feelings of happiness.3. Enhances the quality of your sleep.4. Physical activity is often associated with reduced symptoms of depression and anxiety.5. Exercising is critical for airline pilots due to the sedentary lifestyle of flying and traveling. How:1. You must be intentional.a. What’s the best diet/eating habits?b. What’s the best exercise routine?i. The one that you’ll do!ii. What you are able to make part of your lifestyle.c. Without a plan, you will drift... to bad nutrition and exercise habits.2. Hire a fitness instructor. Also, develop an eating plan.a. Especially plan for days on the road.b. It’s not your age that has you feeling the need to rest -- it’s that you’re not moving. Even older adults with serious health problems -- heart disease, diabetes, arthritis, and others -- can live better lives by getting up and moving. Resources:• https://neurosciencenews.com/fitness-neuroscience-23228/• https://www.purdue.edu/hr/CHL/healthyboiler/news/newsletter/2020-01/finances-health.php   ### Flight #57: Top Ten Reasons To Be Optimistic! Pilot Money Guys: Flight #57: Top Ten Reasons To Be Optimistic!Questions From The Flight Deck:  • What the heck is ChatGPT, and what jobs will most be impacted? • What is it...? https://en.wikipedia.org/wiki/ChatGPT • What jobs are at risk...? https://www.visualcapitalist.com/cp/which-jobs-artificial-intelligence-gptimpact/ • What about ChatGPT from an investing perspective? ETFs: AIQ, BOTZ, ROBT, AIEQ – see Kwanti.• https://www.visualcapitalist.com/how-smart-is-chatgpt/AI in the Cockpit? https://theaircurrent.com/technology/natural-language-processing-aviation-atccockpit/ Optimism – It's NOT cool!Have we always been pessimistic? Or is it a new phenomenon?“The preacher man says it’s the end of time and the Mississippi river, she’s goin dry...the interest is up and the stock market’s down and you only get mugged if you go downtown...”Great survival story...Hank Williams Jr.If Everything is Getting Better, Why Are People So Pessimistic?“...Those are three emotional biases toward pessimism. We also have cognitive biases that incline us that way, foremost among them being the “availability heuristic.” This is a feature of the psychology of probability also documented by Tversky, in collaboration with the Nobel Prize–winning economist Daniel Kahneman. Forty years ago, Kahnemanm and Tversky argued that one of the ways the human brain estimates probability is by using a simple rule of thumb: the more easily you can recall an example of something, the more likely you estimate it to be. The result is that anything that makes an incident more memorable will also make it seem more probable. The quirks of the brain’s ability to retain information will bleed into our estimates of a risk’s likelihood.”“...The bad‐ dominates‐ good phenomenon is multiplied by a second source of bias, sometimes called the illusion of the good old days.People always pine for a golden age. They’re nostalgic about an era in which life was simpler and more predictable. The psychologist Roger Eibach has argued that this is because people confuse changes in themselves with changes in the times. As we get older, certain things inevitably happen to us. We take on more responsibilities, so we have a greater cognitive burden. We become more vigilant about threats, especially as we become parents....At the same time, we see our own capacities decline. As we get older, we become stupider in terms of the sheer ability to process and retain information.There’s a strong tendency to misattribute these changes in ourselves to changes in the world. A number of experimental manipulations bear this out. If you have people try to make some change in their lives — say, to eat less fat — often they become convinced that there are more and more advertisements for fatty foods.” Ten Reasons Clients Should Be Optimistic About The Future:https://www.fa-mag.com/news/ten-reasons-clients-should-be-optimistic-about-the-future-72935.html?section=68&utm_source=FA+Subscribers&utm_campaign=d580b67712-FAN_IP_Next_Chapter_Parnassus_050422_COPY_01&utm_medium=email&utm_term=0_6bebc79291-d580b67712-240228216 1. The US is a net oil exporter.2. Higher short-term interest rates.3. Inflation is moderating4. Companies are great at passing along costs.5. Now is the time to seek out lower cost providers/products.6. The Federal Reserve is not a bunch of dummies.7. Companies know how to cut expenses to boost profits.8. The stock market has been the best way to make money consistently for decades.9. The US dollar is the world’s reserve currency.10. Riding High... Some Alternatives:  • https://www.nbcnews.com/business/economy/how-is-the-economy-doing-right-now-inflationinterest-rate-hikes-rcna73613• Inflation cooling – 4.9% in April – announced today – 10 May 2023• The Fed doesn’t have as much control as you think. And no more, QE!• https://awealthofcommonsense.com/2023/05/some-things-the-fed-doesnt-control/• US households are in excellent shape, the ratio of liabilities to net wealth has declined 50% since the 2008 financial crisis, and household leverage is currently at levels last seen in the early 1980s; see chart below. If the unemployment rate rises, consumer spending will slow down, but the starting point for US households is very strong.• Balance Sheets Are Barriers Against Contagion...Household, corporate and bank balance sheets are more resilient today than during past crises. Factfullness: Ten Reasons We’re Wrong About the World—And Why Things Are Better Than You Thinkhttps://www.amazon.com/Factfulness-Reasons-World-ThingsBetter/dp/1250123828/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=&sr=Author Hans Rosling QuotesThe first is from philosopher, historian, psychologist, William James: “Pessimism leads to weakness, optimism to power.” The second from the late former Chairman of the Joint Chiefs of Staff, Army General Colin Powell: “Perpetual optimism is a force multiplier.” Resources• https://www.theatlantic.com/newsletters/archive/2022/09/bill-melinda-gatesfoundation-goalkeepers-report-poverty/671415/• https://www.morningstar.com/articles/1103776/why-optimism-is-a-secret-weapon-ininvesting• https://www.forbes.com/advisor/investing/is-inflation-good-or-bad/• https://www.reference.com/world-view/inflation-good-bad-5bcd09b085e0a85d ### Charter Flight Special Edition: The Banking System Pilot Money Guys: Charter Flight Special Edition: The Banking SystemSpecial Test Flight Edition – The Banking System: How Do Banks Operate And What Happens When They Take On Too Much Risk – Silicon Valley Bank? - Exclusive! With Captain Rob “Rubber Mallet” Eklund.Where is the best cup of cappuccino in New York City, according to Rob’s new friend Luciano Pavarotti?!?• Actually, a friend of a friend of Pavarotti... Samir Sanbar. Previously served at the United Nations as International Communications and Media Consultant.How do banking systems work? How do they benefit the consumer and make our money safer?• In exchange for leaving your money with them, the banks pay you an interest on those dollars• What does fractional banking system mean?• What were some banking factors that led to the subprime mortgage crisis of 2008?• What did long-term government bonds have to do with the failure of Silicon Valley Bank?• What if your broker-dealer (aka custodian) goes bankrupt? What happens to your investments? “Banking is a very good business. If you don't do anything dumb.” - Warren Buffett“The good bankers, like good tea, can only be appreciated when they're in hot water.” - Jafar Hussein, a Malaysian banker. ### Flight #56: Is It Time To Buy Gold? What About I-Bonds? How To Vote Proxy If You Own Employer Stock And Tax Lessons Learned Pilot Money Guys: Flight #56: Is It Time To Buy Gold? What About I-Bonds? How To Vote Proxy If You Own Employer Stock And Tax Lessons LearnedAviation News:• Age 67 retirement? - - https://www.lgraham.senate.gov/public/index.cfm/2023/3/grahamsenators-reintroduce-bill-to-address-pilotshortage#:~:text=The%20legislation%3A,be%20renewed%20every%20six%20months. • Bill reintroduces Let Experienced Pilots Fly Act….• Pilot Incapacitation recent events, Southwest, Envoy and others• https://www.youtube.com/watch?v=hPUbr6SPcy8  Questions From The Flight Deck:• How to vote proxy if you’re a stock owner. • DFAS – Discontinue survivor benefit plan (SBP) for military retirement?• Pros/Cons• Tax season lessons learned: DFAS withholding, Social Security withholding – defaults to 8%...spouse earning money – 68 cents versus 76 cents. Safe harbor – 100% of this year or 110% of last year is a safe harbor to prevent penalties.• The stock market has been down – why not get 5% guaranteed T-bills.• Sell bonds? Sell stocks? What are your savings goals? What if rates drop?• US Dollar World Reserve Currency: https://realeconomy.rsmus.com/why-the-dollar-remainsthe-worlds-reserve-currency/ • “Why the dollar remains the world’s reserve currency, and will stay that way”...APR. 17, 2023 BY JOSEPH BRUSUELAS• We find the recent discussion around the end of the dollar dominance bereft of any linkage to the reality of international finance and understanding of the dollar’s role as the anchor of the rules-based order that governs global economics.• Economies like China that run surpluses need dollar-based demand from the United States to make up for their own weak consumption and high savings rates.• Rather, the recent conversation is stoked by global grievances about the relative disparity of economic power and the dead end in which some economies find themselves.• Pilot Money Guys Flight #55: US Dollar as World Reserve Currency• Here’s How Reserve Currencies Have Evolved Over 120 Years ▪https://www.visualcapitalist.com/cp/how-reserve-currencies-evolved-over-120- years/ • CDs (callable vs noncallable)• When to sell I-bonds• The composite rate for I bonds issued from November 2022 through April 2023 is 6.89• New rates are 4.3% composite: 3.4% Inflation component and 0.9% fixed rate.• Kevin “The Professor” Gormley:▪ https://www.youtube.com/watch?v=v1SACB6S7kQ  Meat of The Mission:Get up for health and wealth...Should you own Gold?Two things: Gold as an investment – diversification? Gold as a currency in times of economic collapse.• https://awealthofcommonsense.com/2015/07/a-history-of-gold-returns/ Why is gold attractive? Hot button issue...• Gold standard...vs. Fiat currency – us versus them. Very political and ideological. Three Options For Owning/Investing In Gold: 1. Physical gold in your home, safety deposit box.a. How could one use physical gold in an economic collapse?b. https://atlantagoldandcoin.com/how-will-gold-silver-coins-be-used-following-amonetary-collapse/ 2. Gold and/or Gold Miners ETF in your portfolio. Is it a diversifier?a. How has gold performed? What about bonds?b. https://awealthofcommonsense.com/2015/07/a-history-of-gold-returns/ c. Ben Carlson’s stance: “My stance on gold has always been that I have no idea what’s going to happen with it in the future. No one else does either.”d. As of 2015...Even after the most recent crash, gold is actually up around 10% per year over the past decade. But it’s unlikely many individuals actually participated in this rise unless they held physical gold. The Gold ETF (GLD) only had around $3 billion in assets in 2005. It then grew to nearly $80 billion by the peak in 2011-12, before falling back down to less than $25 billion more recently. Unfortunately, that means many of the bandwagon investors got sucked in very late to the bull market and lost a lot of money in the ensuing crash.3. Physical Gold in a Self-Directed IRA.a. Why?b. Can I own physical gold in my IRA?• If you opt for the actual metal, certain criteria apply for it to be held in an IRA. “The precious metal coins or bars must meet IRS fineness standards and must be held by the IRA trustee instead of the IRA owner,” says Moy. “The gold must be stored in an IRS-approved depository.”• https://www.investopedia.com/articles/personal-finance/091814/analysis-should-you-get-goldira.asp  Tax implications of Gold coins...28%• Physical gold (including the ETF – GLD) is tax as collectible.• However, the IRS considers physical quantities of metal to be a “collectible.” For collectibles, such as coins, art and bullion, the standard tax rate is 28%. As a result, owning physical gold, or owning funds that themselves own physical gold, means that you can pay a higher maximum capital gains rate of 28%.• https://smartasset.com/taxes/avoid-capital-gains-tax-ongold#:~:text=This%20is%20called%20the%20capital,a%20general%20rate%20of%2028%25.  The Ascent of Money: A Financial History of the World. - By Niall Ferguson ### Flight #55: US World Reserve Currency, Is Your Money Safe at Your Bank, Custodian and Pros/Cons of Private Equity Pilot Money Guys: Flight #55 US World Reserve Currency, Is Your Money Safe at Your Bank, Custodian and Pros/Cons of Private EquityQuestions from the Flight Deck:What if the US Dollar is not the dominant world currency?• https://www.visualcapitalist.com/cp/how-reserve-currencies-evolved-over-120-years/ Part 1:How to know how much FDIC insurance you have?• https://edie.fdic.gov/calculator.html?Should we be nervous about the banking system?• There is no safer place...How much can I actually hold in my bank account, FDIC insured? See FCIC calculator.Why are banks and brokerage firms different?• Banks accept deposits onto their balance sheet. When you deposit money, it becomes a liability for the bank.• Brokers are middlemen. They hold your money (custodial relationship) and then allow you to buy investments. These do NOT go onto the broker's balance sheet. They take a little to “broker the sales” but do not own anything. You own the underlying investments.What would happen if Schwab went bankrupt? FDIC, SIPC.• Rule 15c3-1, "Net Capital Rule" of the U.S. Securities and Exchange Commission (SEC), makes it mandatory for brokerages to maintain a minimum amount of prescribed capital in liquid form. Rule 15c3-3, “Customer Protection Rule,” requires brokerage firms to keep client assets (both cash and securities) in a separate account from the firm’s assets to avoid any confusion• What does a broker (Schwab) do with our money versus what a bank does with our money?• Bank invests and loans your money• Schwab puts it in stocks that YOU own. Schwab doesn’t hold them. Schwab can’t do anything with your money. It’s not even on their balance sheet. However, Schwab does have a banking component. A subsidiary of Charles Schwab. Schwab has several components, subsidiaries:• ETFs, Mutuals Funds• Custodian, Broker-Dealer• Bank Who controls money at ETFs, Mutual Funds...• Securities of underlying funds are not held at Schwab, Vanguard. They hire and pay a custodian to keep these securities separate...• Who WAS the same – Bernie Madoff. https://international.schwab.com/account-protection Broker collapsing versus broker theft...• Protected up to US$600 million. The combined total of our SIPC coverage and our "excess SIPC" coverage means Schwab provides protection up to an aggregate of US$600 million, limited to a combined return of US$150 million per customer, up to US $1.15 million of which may be in cash. This protection becomes available in the event SIPC limits are exhausted.• SIPC covers shares, not $$$ amounts: For example, if an investor is holding 200 shares of ABC Inc. originally purchased through a failed stock broker, SIPC will work to replace or restore the same number of shares to the investor. However, if the stock price plummets during the time the stock broker goes bust to the time that the SIPC steps in, the SIPC will not reimburse the money the investor lost.• Ron Berger: https://www.youtube.com/watch?v=wz64z1YuL0A&t=816s  Part 2: https://www.businesstrialgroup.com/practice-areas/securities-litigation/oil-gas-partnerships/ Why do we go after these types of investments? Are they necessary to be successful? Do they add diversification?• Private REITs• Land Investments• Mineral Rights• Oil and Gas LPsWhy do they look so attractive? 10-12% annual Yield...• Phoenix Capital Group...• What does Yield mean?Early bank run on Blackstone last December but it is NOT a bank. This guys says it is OK but if you wanted your money out of it- you cannot have it https://seekingalpha.com/article/4563565-the-truth-about-blackstone How do you value something?Are short sellers able to sell private securities easily.How do we know if the price is right, close to right or downright wrong.In public markets, is volatility a bug or a feature?“Fox watching the hen house”Fundrise claims that privately held outperform public markets but there are multiple issues with this kind of data:https://fundrise.com/education/why-private-markets-outperform-traditional-publicly-traded• Internal rate of return helps private equity firms but NOT always clients• Are losers in private equity always captured in data? survivorship bias.• What counts in private investment is the quality of people, trust, and the investments?• How many private firms are zombies that still show value on balance sheets• When the tide goes out... you see who swimming is nakedly.• ..."But I get my 8%, 9% or 10% dividend : ) “ Where does the dividend come from?• Wall Street moved from banks & public markets (active mutual funds) to private- why? Because that is where the story, the reputation, the glitz, can be manufactured- with out all this “nobody can beat the market stuff” That is where the money is in the roaring 20s.! ### Flight #54: Founder of Aero Crew News Craig Pieper & CEO of Aero Crew Solutions & Co-Founder of Aero Crew News Scott Rehn Pilot Money Guys: Flight #54: Founder of Aero Crew News: Craig Pieper & CEO of Aero Crew Solutions & Co-Founder of Aero Crew News: Scott RehnCraig Pieper Publisher & Founder of Aero Crew News Scott Rehn CEO of Aero Crew Solutions & Co-Founder of Aero Crew News Craig Pieper’s Linkedin Scott Rehn’s Linkedin Make sure to follow Aero Crew News on Facebook, Instagram, & Twitter Aero Crew Solutions Phone Number: 484-NEW-NEWS  ### Flight #53: Bonds are Sexy Again, and So is Giving! Pilot Money Guys: Flight #53, Bonds are Sexy Again, and So is Giving!Pilot News https://www.reuters.com/business/aerospace-defense/european-regulator-rules-out-single-pilot-flying-by-2030-2023-02-06/   Question from the flight deck: Question: Are all annuities Crap? Answer: Annuities are NOT investments; they are Insurance income products, and most of them are sold as something they are not- again not investments! People that hate annuities, compare them to investments- life insurance is used when people die. Annuities can help people that live too long or need mortality credits to decrease anxiety or smooth out the journey. LEFP is not licensed, nor makes commissions on annuities but we do sometimes recommend them through third parties. Find someone who does NOT make commissions on annuities but believes that they are sometimes necessary and EVEN helpful as a part of a financial plan. 2022 was the number one year of annuities sales in history • Contingent Deferred Annuities: CDAs, Retire One - “Constance” • No changes in taxation – Roth IRA, Taxable brokerage account • Remain invested in Mutual Funds, ETFs • Turn off anytime... A CDA acts as a sort of “risk wrapper” for your IRAs, Roth IRAs and taxable brokerage accounts, but the insurance portion is unbundled from the underlying accounts so that investments in ETFs and mutual funds may be covered. The amount of income you receive from the CDA (your coverage base) is calculated from the total of your initial investment, and will not drop below that amount, no matter what the markets do. In fact, your coverage base may go up, and those annual income payments can range from 3% to 6%. Keep in mind that excess withdrawals CAN impact your coverage base, however. The CDA’s income payments trigger when you need them and are paid by the insurance company for the rest of your life, even after your assets are depleted. https://www.financial-planning.com/news/2022-was-the-best-annuity-sales-year-in-history  https://awealthofcommonsense.com/2023/03/talk-your-book-lifetime-income/ Question: Should I own bonds? Answer: There are two reasons to own bonds. 1. Decrease recovery time in your portfolio: TYPICALLY, (not 2022) bonds act as ballast. During a recession, Treasury bonds act as a flight to safety, plus Fed may lower interest rates which may cause bond prices to increase. See JPMorgan Chase Charts. • It’s all about the math...50% decline in your investment dollars requires a 100% increase to get back to even. • $100,000, 50% loss = $50,000. 100% gain = $100,000. • A 25% decline in stock prices requires • $100,000, 25% loss = $75,000. 33.3% gain required to get $100,000 • https://www.hughcalc.org/getback.php • Then why would anyone be 100% equity???2. There is actually yield, interest now. T-Billsa. Annuities, higherb. CD, Money Market higherc. Long-term investors are better off after bond price declines and interest rate increases from 2022. Main Topic – Tax-Efficient Giving Strategies• When to use a Donor Advised Fund - https://www.morningstar.com/articles/1039795/pros-andcons-of-donor-advised-funds • Pros: • The major benefit of donor-advised funds is the ability to take an immediate tax deduction on the amount contributed. Donors contributing cash can take a deduction of up to 60% of adjusted gross income...• Donors can also contribute a wide range of appreciated assets, including stocks, bonds, mutual funds, privately held business interests, restricted stock, and even bitcoin and other cryptocurrencies. Donors contributing securities or other assets can take a deduction of up to 30% of adjusted gross income.• Cons: • Donor-advised funds also come with an additional layer of annual administrative costs. Fidelity, Vanguard, and Schwab all charge a 0.6% administrative fee for accounts with balances up to $500,000. All three have tiered expense structures, so accounts with balances greater than $500,000 are subject to lower fees in percentage terms.• These charges are in addition to the fees on the underlying investments (operating expenses for mutual funds and exchange-traded funds, or trading commissions for individual stocks and bonds). All these fees come out of the amount donated, making donor-advised funds less cost-efficient than donating directly to a charity.• Gifting highly appreciated stockhttps://www.blackrock.com/us/financial-professionals/insights/donate-stock-to-charity-for-tax-savings Gift your star performers. Maximize your savings on capital gains taxes by donating your strongest performing stocks. They may be your favorite holdings, but this is not goodbye – replenish your portfolio by purchasing the same security (or a similar exposure). Because the stock has appreciated since your original purchase, your new cost basis will be higher, which creates the potential to harvest tax losses to offset gains in future years.• When do you get to deduct your giving on your tax return?https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/tax-deduction-wisdom-should-youitemize/L8Ln7K0Gp “Add up all of these taxes, but remember the IRS limits your state and local tax deduction to $10,000. Tip: Add your total state and local taxes (capped at $10,000) to the mortgage interest number you calculated above. If the total is larger than your standard deduction, you'll likely benefit from itemizing.”• Lump your giving?• Other reasons to give?The immediate effect on our physiology…Psychologytoday.com - Dr. Eva Ritvo - https://www.psychologytoday.com/us/blog/vitality/201404/the-neuroscience-giving “Neuroscience has demonstrated that giving is a powerful pathway for creating more personal joy and improving overall health...Dopamine, serotonin, and oxytocin make up the Happiness Trifecta…benefits are better moods, sleep, digestion, memory, learning, and appetite, blood pressure decreases…Oxytocin is known as the “cuddle hormone.” trust and empathy are enhanced. Oxytocin is also antiinflammatory and reduces pain and enhances wound healing. “So, if giving allows us to secrete all the chemicals at once, we owe it to ourselves to give as often as possible!” ### Flight #52: Gina Roth on How to Be a Real Estate Professional and Save on Taxes Pilot Money Guys: Flight #52: Gina Roth on How to Be a Real Estate Professional And Save on TaxesHow to Be a Real Estate Professional & Save on Taxes with Gina Roth • (4:30) How do you recommend selling your primary residence and ensure you don't pay taxes?- You have to live in it as your primary residence for two out of the trailing five years- Once you complete this, it is free capital gains Married: $500,000 exclusion- Single: $250,000 exclusion- These can include any improvements to the property •  (7:15) Requirements to be a Real Estate Professional for tax purposes- You must spend 750 hours/year doing some sort of real estate duties (brokerage sales counts towards this)- Documentation of hours is a necessity •  (17:15) Real Estate & Taxes- Passive income from real estate can often be offset with income from your main source of income- Depreciation is your superhero in real estate!- You can make your money from your main source of income, all of that income gets taxed as ordinary, and the real estate can be used as depreciation to offset some of that main source of income • (21:00) Gina’s Advice- If someone has the ability & willingness to keep their first starter home, it can be a great tool to use as rental income in the future- It can be a huge wealth builder, great for diversification, & helps with cash flow in retirement because you won’t have to touch your nest egg •  (26:30) Multiplex- They are very favorable because you have multiple tenants paying rent at the same time. If one person moves out, there is still some cash flows- Less maintenance typically on a multiplex •  (28:15) Other Real Estate Licenses-  Active in Real Estate License: For people that make less than $150,000 - Material Participation: Not having a rental unit, but a business • (29:00) Short Term Rental Benefits- A short-term rentals are anything that can qualify for anything less than 30 days of occupation- You can classify any losses associated with the business as offset to your ordinary income (you must own a short-term rental, you have to be material participation, & documentation!)- There are many tools today that allow you to manage short term rentals (even out of state) You have to be the one who is property manager and must document everything • (40:26) Breckendrige, CO has made it very complicated by putting different zone/resort zones. So, to buy a short-term rental, you would need a very qualified agent right now- Some alternatives to Breckenridge could be Keystone and Grand County • (46:20) Gina’s Book Recommendations/Resources- Rich Dad Poor Dad by Robert T. Kiyosaki- Short-Term Rental, Long-Term Wealth by Joseph Bafia •  The Seven Tests of Participation (Material Participation Tests: Definition, IRS Rules, Vs. Passive (investopedia.com))1. You participate in the activity at least 500 hours during the year.2. Your participation constitutes substantially all the participation for the year by anyone, including nonowners.3. You participate more than 100 hours and as much or more than any other person.4. The activity is a “significant participation activity” — that is, you participate more than 100 hours — but you participate less than one or more other people yet your participation in all your significant participation activities for the year totals more than 500 hours.5. You materially participated in the activity for any five of the preceding 10 tax years.6. The activity is a personal service activity in which you materially participated in any three previous tax years.7. Regardless of the number of hours, based on all the facts and circumstances, you participate in the activity on a regular, continuous, and substantial basis. Excerpt: Our guest is Gina Roth, a Texas native who earned a Finance degree from Texas A&M University. She spent 12 years in various roles as a commercial banker before turning her focus to her true passion, residential real estate in 2012. Gina now specializes in serving airline pilot families in the greater Denver area. ### Flight #51: Flying in the Face of Fear with Kim KC Campbell Pilot Money Guys: Flight #51 Flying in the Face of Fear with Kim "KC" CampbellQuote: Nelson Mandela once said: “I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.”Kim KC Campbell - "Fear can prevent us from achieving success or it can lead us to a greater path of growth and change if we harness it effectively."Your story:• Mother and father...encouraging• You developed a higher calling, higher purpose...?• Air Force Academy, the first time that a father and daughter both served as cadet wing commander• What values, principles about yourself, and others you admire are most valuable to you? The Flight - BagdadWhat?!? A-10 got shot down the next day??? Launched on CSAR mission?Retirement August 2021... Leadership Lessons for us, our audience:• Simultaneous fear and courage...you admit to fear.• Leadership lessons for airline pilots now - going through tough negotiations, multiple near misses...trying times• All of us can use these lessons with spouses, kids, friends, family. We all go through stuff!• How did/do you balance being a wife, mother, Group CC, Entrepreneur, etc?• As we get older and comfortable, having achieved things, how do we stretch ourselves???• How do I use your lessons in leadership and character with my kids?• What are some of the failures you've learned the most from?• Humility, courage, respect, balance. The greatest leadership attributes are courage, integrity and balance. Air Force Afterlife: What are you transitioning to in the business sector? Victory Strategies• https://www.victory-strategies.com/#services-section Keynotes speaking, center for leadership and character developmentHow do we create a culture of courage at our business?Links for show notes:• @kchawg987• https://kim-kc-campbell.com/• Flying in the face of fear; a fighter pilot’s lessons on leading with courage • https://www.amazon.com/Flying-Face-Fear-Fighter-Lessons/dp/1394152353 • Aiming Higher: A Journey Through Military Aviation Leadership (Military Mentorship Mastermind • Aiming Higher: https://www.amazon.com/Aiming-Higher-Leadership-Mentorship-Mastermind/dp/B0B1CP8G5X • Victory Strategies: • https://www.victory-strategies.com/#services-section  Excerpt: Kim "KC" Campbell. Keynote Speaker. Bestselling Author. Leader. Fighter Pilot. Kim Campbell is a retired Air Force Colonel who served in the Air Force for over 24 years as a fighter pilot and senior military leader. Today we talk with Kim about her passions, her life, and most importantly, her story. ### Flight #50: Embracing Stock Market Uncertainty with Dave Goetsch, co-executive producer and co-writer of The Big Bang Theory Pilot Money Guys: Flight #50 Embracing Stock Market Uncertainty with Dave Goetsch, co-executive producer and co-writer of The Big Bang TheoryDave Goetsch shares his fascinating story about his investing experience and journey. He started as an investor that was emotionally tied to every up and down the stock market experienced. He was known  as the “Chief Worrier.”  Through his own studies and the counsel of his financial advisor, he’s more at peace with the short-term craziness of the stock markets, and continuous news headlines of impending doom we all seem to hear daily. In many ways, Dave’s journey is very similar to all of ours. However, he’s better at telling the story since he’s a Hollywood writer!  Finally, Dave’s passion for helping others learn through his experience is contagious. It was truly an honor to have Dave on our podcast, and we’re grateful for his desire to share his personal story so others can learn and eventually come to be a bit more comfortable with the uncertainty of the stock market.  “...when you have a plan for the future, for kids and retirement...You don't know [everything]  exactly...but you have a plan. The effect of that is that you can feel better now. And that's the big, big  game changer, which is awesome to have less stress so that you can spend more time with your  family...spend more time on the things you care about.” ~Dave Goetsch Book that helped Dave Goetsch go from the “Chief Worrier” to the “Transformed Investor”: The Investment Answer: Learn to Manage Your Money & Protect Your Financial Future Excerpt: Dave Goetsch shares his fascinating story about his investing experience and journey. He started as an investor that was emotionally tied to every up and down the stock market experienced. ### Flight #49: The Story of a Father, The Markets Have No Memory and the Obsession with Recessions Pilot Money Guys: Flight #49: The Story of a Father, The Markets Have No Memory and the Obsession with RecessionsAirline News• Delta Airline Pilot Contract Updates:• https://www.cnbc.com/2022/12/03/delta-pilots-would-get-more-than-30percent-in-pay-raises-under-new-contract-deal.html• The agreement includes an 18% increase on the day the contract is signed, then a 5%  increase one year later and two 4% raises in each of the following years. It also includes  a one-time payment of 4% of 2020 and 2021 pay each, plus 14% of 2022 pay.Being a Father:• https://vitaliy.substack.com/p/being-a-father?utm_source=emarketing&utm_medium=email&utm_campaign=cid75618&utm_content=emailid143539 People have memories – markets do not.  “One of the best things about markets is that they don’t have memories. They don’t remember  what happened last week or last year. They don’t even remember what happened a minute ago.  Prices change based on what’s happening right now and what people think will happen in the  future.” ~David Bood, Chairman and Founder of Dimensional.  https://www.dimensional.com/us-en/insights/people-have-memories-markets-dont?utm_source=linkedin&utm_medium=organic&utm_campaign= Obsession with Recessions:• https://seekingalpha.com/article/4547443-the-recession-obsessionOther resources:   • Why can’t we time the market before a recession?• Flight #43 Myth vs Fact in Down Markets. What the evidence says with Apollo Lupescu,  VP Dimensional • Here what Kevin and Charlie say about a “Dead Cat Bounce”!• https://youtu.be/oI-DqJfD6Ho   ### Flight #48: Financial Highlights of 2022 in Review, new 401k IRA limits, Secure Act 2.0 RMD changes and more… Pilot Money Guys: Flight #48: Financial Highlights of 2022 in Review, new 401k IRA limits, Secure Act 2.0 RMD changes and more… Flight #48: New 401k, IRA Limits New SECURE ACT 2.0 Airline News: New IRA, 401k401(a)17 and 415 Limits Secure Act 2.0 Highlights: Setting Every Community Up for Retirement Enhancement (SECURE) Act...originally passed in December 2019. • December 23, 2022, passed the Consolidated Appropriations Act of 2023, an omnibus spending bill that includes the much anticipated and long-awaited retirement bill known as SECURE Act 2.0. o RMD 73,75...plus reduced penalty 73-1951-1959 / 1960+ RMD 75 What does this do...Roth Conversions??? Plus 10-year rule from Secure Act 1.0 Beware of higher RMD at 73/75 - jump tax brackets??? QCD no effect – still 70 and a half years old. o No Roth 401k RMD (2024)o Roth style SEP and SIMPLE IRAo 529 plans to Roth IRA transfers up to $35,000. Subject to annual Roth limits and 529 accounts in existence for 15 years. o Student loan payments count and qualify the employee for 401k matching. I.e., you’ll get matched in your 401k for student loan payments. Base matching contributions on student loan repayments. o Catch up contributions: 2025 – 60-63 – catch up contribution of 10,000 or 50% more than the standard catch-up contribution that year. Catch up contributions are now linked with inflation  2024 - $145k – catch-up contributions must be made in Roth • Roth basis if permitted by the plan sponsor SECURE Act 2.0 provides that all catch-up contributions to qualified retirement plans are subject to Roth tax treatment, effective for taxable years beginning after December 31, 2023, An exception is provided for employees with compensation of $145,000 or less (indexed) Resources: 1. https://www.kitces.com/blog/secure-act-2-omnibus-2022-hr-2954-rmd-75-529-roth-rollover- increase-qcd-student-loan- match/?utm_source=social&utm_medium=linkedin&utm_campaign=tagged_author 2. 10 Changes Coming To 401(k)s https://www.youtube.com/watch?v=i-PXuU_2wnA   ### Flight #47: Charlie and Rob’s Top 5 (Personal) Lesson’s Learned from 2022 Pilot Money Guys: Flight #47: Charlie and Rob’s Top 5 (Personal) Lesson’s Learned from 2022 Q&A: Most common client questions lately: The whole world is going into a recession! What is a recession? Schwab “dominoes” diagram...there’s only a few things missing to be in a recession – Labor market weakness, EPS growth falls, NBER (Nat’l Bureau of Economic Research) recession declared. See Flight #33 for “Inverted Yield Curve – Canary in the Coal Mine.” • https://podcasts.apple.com/us/podcast/inverted-yield-curve-canary-in-the-coal- mine/id1557278856?i=1000564180334   So, what does this mean...mild recession. Already priced in? • See DFA “...Official Announcements” graphic Why should we stay in the market? Why would we keep investing? • 1st - gotta have a plan...context for why you're doing what you’re doing. • Flight #43 Appolo from DFA • https://podcasts.apple.com/us/podcast/flight-43-with-dimensional-fund-advisors-vice/id1557278856?i=1000585072712 What if I’m near retirement? • Podcast/Flight #45 Sequence of Return Risk • https://pilotmoneyguys.libsyn.com/flight-45-what-is-sequence-of-returns-risk-and-why-should-it-matter-to-you-avoid-running-out-of-money-in-retirement What are the positives to the current environment? • No more quantitative easing. o “The Fed is propping up the markets/economy” • Higher future returns expected...fairly valued equities? • Higher yields on cash – great for short-term savers and retirees. o 4%-5% - CDs, T-Bills, Annuities • Housing was getting out-of-control – would soon become unaffordable for most Americans. • Two jobs for every one person is not a healthy job market. • The Fed is fighting inflation! That’s the real risk...unlike the Fed of the 70’s. So, what do we do...as investors • Stay globally diversified, don’t chase trends or recent trends, performance. o Bonds are back! • Quality investments: Profitability, Dividends... • Improve your balance sheet • Prepare/Insure for deep risks... o Flight #42 i. https://podcasts.apple.com/us/podcast/flight-42-why-is-the-fed-driving-us-into-a/id1557278856?i=1000583422605   Lessons Learned from 2022: 1. Rob’s Lesson Learned: a. Identify and accept what I cannot control. And realize that the only thing that I can control is how I react to the situation. i. When experiencing difficult times with family health it would be easy to get angry, frustrated and allow negative emotions to be destructive to yourself and those around you. ii. Instead, make a disciplined decision (with help from trusted friends, loved ones) to have a positive attitude and make the best of a difficult situation. iii. When going through difficult times thing about: “What does this make possible?” In Rob’s situation, he was able to spend focused time with his son and get help from the doctors that may improve his son’s health.   2. Charlie’s Lesson Learned: a. Time is the most valuable, precious resource. Become a protector and defender of your time. i. Time goes by so fast, take the time and be intentional about the impact you are having with your time. ii. Take time to plan your time and how you will be using it wisely, for the benefit of you and your family. 1. https://www.forbes.com/sites/kevinkruse/2016/07/18/successful-people-agree-this-is-their-most-valuable-asset/?sh=cf1f1aa42d78 a. Kevin Kruse: CEO of Leadx and author of Great LeadersHave No Rules.   3. Rob’s Lesson Learned: a. Treat others with respect and kindness. Even when it’s not easy. i. It’s easy to treat friends and people you like well. However, there will be many opportunities to treat people with respect and kindness that don’t treat you that way. ii. This takes intentionality and planning. You must think about how you will react when someone makes you angry. 1. How will you react with your personal values and principles in mind.   4. Charlie’s Lesson Learned: a. Choosing the meaningful over the urgent. i. Don’t let tasks drive your day and distract you from the meaningful things. 1. https://valorieburton.com/ a. “Choosing the meaningful over the urgent so that our life is unhurried, yet purposeful and reflects the values and the impact we want to make, takes reflection. It takes intention. It takes planning...” ii. Think about the analogy of filling the glass container throughout the week. Fill the container with the big rocks first. The most important things. Then the smaller rocks, sand will fill in around the larger rocks.   5. Rob’s Lesson Learned: a. Be present, stay on target, remain focused on the task at hand. i. Sometimes we get caught up on thinking of past wrongs and/or mistakes and it can negatively affect our present performance and quality of life. ii. Be present! iii. See Lesson Learned #1: Control what you can control. Sometimes the only thing you can control is only your reaction to difficult situations.   6. Charlie and Rob, Final Lesson Learned: a. Practice Gratitude! i. It will improve every aspect of your life and those around you. ii. Without practicing gratitude, other things in your life will suffer: 1. Mental health, physical health, quality of relationships, your positive impact on those around you. iii. By practicing gratitude, you become a person other people enjoy being around. Your positive influence grows as your gratitude, even during difficult times, encourages others who may be struggling.  ### Flight #46 – Ignore the Noise and Cultivate a Framework for Investment Decision-Making That Brings Peace of Mind Pilot Money Guys: Flight #46 – Ignore the Noise and Cultivate a Framework for Investment Decision-Making That Brings Peace of MindResources:https://awealthofcommonsense.com/2013/08/ignore-noise/https://podcasts.apple.com/us/podcast/stay-wealthy-retirement-show/id1260181429?i=1000470057040 The NarrativeThere’s a lot going on...in the past few years; Covid, Stock Market stress, impending recession, inflation, politics...crypto collapse???Our audience is especially vulnerable to information (news) overload: Traveling; downtime pick up the phone and review news, talk about it during the 3-hour flight, TV on in the hotel room, gym, etc.Where is the balance?What is the truth?Why does this matter – Why does the news and/or events make me angry.• Being disrespected or treated unfairly?o Examples? Higher taxes, wealth re-distribution• Fear...threatened, violated, offended?o Is my preferred way of life at risk?• Being interrupted when you are trying to achieve a goalo Retirement???• Feeling powerless...o Loss of controlo Can’t control the short-term gyrations of the market.o Uncertainty is a feeling of powerlessness...Being angry is a natural reaction. When experienced in excess, however, you might ask yourself "why am I feeling so mad?" and it can result in health problems, including depression, anxiety, high blood pressure, heart disease, and more. It's okay to ask yourself, "why am I feeling so mad?", but it's important to deal with those emotions.Example of uncertainty:All issues are about a million times more complex than we’d like to believe. We search for simplicity to help us cope and explain things. We hate uncertainty.Loss of control:https://dariusforoux.com/about/Does Social Media Leave You Feeling Angry? That Might Be IntentionalSeptember 13, 2022 - New York Times reporter Max Fisher took a deep dive into the impact of social media in his book, "The Chaos Machine: The Inside Story of How Social Media Rewired Our Minds and Our World." He shares with us how platform leaders have prioritized profit and growth over safeguards and how the polarizing effect of social media is only speeding up.“...This is because algorithms consistently select content that evokes anger and outrage from its users to maximize engagement. And sometimes, those extreme emotions turn into extreme actions.”Serenityrecovery.orgNeurobiology & AngerIn the moment anger feels good. It’s so powerful that it overrides our rational and moral frameworks we’ve established because it comes from our primordial, original limbic system: the center of the brain – where our most automatic emotions like fight or flight originate. This response system controls adrenaline, heart rate, alertness, and other instincts that prepare you for battle or a quick escape. Similar to other addictions like gambling, extreme sports, or even drugs like cocaine the brain releases a dopamine reward when you’re angry which clouds your judgment and can lead to terrifying consequences.Anger & the EgoAnger can often times be triggered by underlying feelings of weakness or insecurity. Anger is an easy way to feel powerful and get attention in the moment and overcome feelings of inadequacy. It also gives you a feeling of being in control of things that in reality you don’t have control over. The sad irony is when anger takes over, not only do you not have control of the things making you angry, you’ve also lost control of yourself. The cycle continues because it damages you in the eyes of the people who you want to connect with most which just adds to your ego insecurities.  So what do we do to tune out the noise and be happy?Guard your mind!“A man is but the product of his thoughts. What he thinks, he becomes.” Ghandi “I will not let anyone walk through my mind with their dirty feet.”What do we do?1. Know the science.a. Knowing what drives your emotionsb. Investment academic research2. Maintain A/C control...Focus on what really matters in your life. Focus on what you can control and realize there is a lot you cannot control.3. Be a long-term investor...in all aspects of life.4. Prepare for the inevitable:a. “Chairfly”b. Planning• Know the source and the motivation of the source of the informationyou’re taking in...o Read the financial news to take the emotion out of it.• How to avoid making decisions based on the noise?o From the book Decisive: How to make better choices in life and inwork. Chip and Dan Heath.▪ Normal decision process in four steps:• You encounter a choice. But narrow framing makes you miss options.• You analyze your options. But the confirmation bias leads you to gather self-serving information.• You make a choice. But short-term emotion will often tempt you to make the wrong one.• Then you live with it. But you’ll often be overconfident about how the future will unfold. ### Flight #45: What is Sequence of Returns Risk and Why Should it Matter to You? Avoid Running out of Money In Retirement Pilot Money Guys: Flight #45: What is Sequence of Returns Risk and Why Should it Matter to You? Avoid Running out of Money In RetirementQ&A: Most common client questions lately:Election Lessons Learned:“Vote with your ballot not yourlife savings.”~Dimensional founder David Boothhttps://my.dimensional.com/elect-to-leave-your-portfolio-aloneWill the stock market do worse now that xxx party has won and the election is over?What do the numbers show? Does the stock market do better or worse when “X” party is in office, power?  Lessons learned – do not anticipate or try to outguess the markets. Maintain discipline. Lots of advisors said: After the mid-terms, the markets will “pop.” After Biden was elected lots of folks said markets will tank.  Some things are unknowable...in the short-term. Luckily, we do not have to know.  “Did anyone predict that Joe Biden would be elected president and that the US stock market would have its strongest election-week results since 1932?”What the heck is FTX and how did Sam Bankman-Friedlose $16 billion in one day?https://www.visualcapitalist.com/ftx-leaked-balance-sheet-visualized/Founder and CEO Sam Bankman-Fried –FTX.What crypto companies went bankrupt?FTX's move marks the third crypto company to seek bankruptcy protection this year, following Voyager Digital and Celsius Network. The filing also clouds the fate of BlockFi, a crypto lender that FTX helped bail out with $400 million earlier this year.  ~CBS NewsBoring is beautiful!  TRUMPLOSE tokens –on the FTX balance sheet.  Created by FTX to enable a betting market on whether Donald Trump would win or lose the 2020 presidential election.https://awealthofcommonsense.com/2022/11/boring-is-beautiful-in-investing/“Those old stodgy blue-chip stocks in the Dow that pay dividends and have stable cash flows are crushing the innovation-led stocks that have more potential than profits in 2022.This is in stark contrast to the FOMO days of 2020 and 2021 when it felt like the only place to put your money was the most intoxicating of investments.French philosopher Blaise Pascal once wrote, “All of humanity’s problems stem from man’s inability to sit quietly in a room alone.”The investor play on words here would be: “All portfolio problems stem from investor’s inability to stick with a boring old asset allocation.”Successful investing should be boring. It should be long-term in nature. It requires patience and discipline and the ability to ignore the madness of the crowds.But you can’t brag about boring to your friends and co-workers. No one writes glowing profiles about normal people who diligently save and invest their hard-earned money, keep fees to a minimum and stay the course.That’s not sexy.Sexy is SPACs, meme stocks, IPOs and life-changing amounts of money in a short period of time.Why wait decades to build wealth when you witnessed someone else do it overnight?" Flight #45 –Retirement Income:The NarrativeWhy is investing during retirement very different from investing in the accumulation phase of your life?Example: A) You are an accumulator, and you invest $12,000 January 1, 2020.  You fall asleep and wake up on December 31, 2020.  B) You are in retirement taking monthly income.  You have $12,000 on January 1 and you are taking monthly income of $1,000 per month.Accumulators are like chickens and eggs...you’re involved in producing eggs. Retirees are like pigs, and they are producing bacon.  You are committed in retirement!How to avoid running out of money in retirement:1. Know your budget – Spending plan. a. Spend Conservatively. b. Spending flexibility. 2. Social Security timing.3. Keep investing! (In equities)a. Reduce volatility.b. Buffer Assets – Avoid selling at losses. 4. Taxes:a. Minimize RMDsb. Roth Conversions when income declines –65-70.5. Life expectancy – Longevity.  a. E.g., client age 85. 6. Sequence of return riska. https://www.schwab.com/learn/story/timing-matters-understanding-sequence-returns-riski. Avoid withdrawing assets in a down market.ii. Will I have to change my retirement goals or retirement income due to the down market?Part 2 – How to mitigate the above risks...especially #6.  1. Have a plan – Pick one or a combination of...a. Annuities?i. Annuities in general –Sales commissions! Fees...ii. SPIA –Best, but no access to principle.iii. Contingent Deferred Annuity –Constance from RetireOne1. Risk wrap: Same investments, income guarantee.2. Turn on –Turn off.b. Retirement Bucket approach?c. 4% Ruled. Target Date fundse. Dynamic spending, ongoing planning.i. Monte Carlo...MGPii. What’s wrong with online calculators?1. One said I’ll have $12,500 and the other said $19,500.2. Why does seeking advice pay off?a. Annual withdrawal rates can changeb. What about underspending in retirement?i. Don’t get to age 90 with millions left over...unless that’s your goal.ii. Spend more in the early part of retirement...the retirement smile.c. Mitigating the risksd. What if...!• Higher Inflation• Part-time job• Reverse mortgage• Long Term Care RisksFrom Retirement Researcher –Wade Pfau, Professor of Retirement Income at the American College. ### Flight #44: Cash Flow Planning for Potential Airline Disability with Amelie Riendl Pilot Money Guys: Flight #44: Cash Flow Planning for Potential Airline Disability with Amelie Riendl Q&A: Most common client questions lately:Will I have to change my retirement goals or retirement income due to the down market? • Short-term risk versus long-term risk, taxes, inflation, overspending○ Sequence of return risk...○ https://www.schwab.com/learn/story/timing-matters-understanding-sequence-returns-risk• Worst year ever for bonds?○ https://www.advisorperspectives.com/articles/2022/10/17/six-good-things-to-tell-clients-about-this-horrible-market Four Options Plus Combo Option for Preparing for Potential Airline Disability 1. Be ready to live on your maximum disability payout. a. Takes careful budgeting and cash flow management.b. For example: Be ready to freeze your “core” budget at FO pay. Or on one person’s salary if you are a dual-income family.2. Create a (mega) Emergency Fund. Work to self-insure. Becoming your own insurance company!a. We believe the six-month emergency fund is the minimum for airline pilots. One year is even better.b. An emergency fund of cash or cash-like investments gives you great flexibility.c. It can bridge the gap until you are able to get your FAA medical back.3. If appropriate and cost-effective, purchase additional disability insurance. a. Consider how a long-term disability would affect your retirement savings. For example, if you can live on the current disability insurance your airline offers, would you also be able to save for retirement?i. Your retirement plan assumes annual savings into tax-advantaged retirement accounts.4. Become financially independent! a. This most likely applies to the pilots that are nearer to retirement. If they lost their FAA medical, then these folks could more easily transition into early retirement.b. On the other hand, this is a great goal for all pilots to shoot for as soon as possible.c. This step encompasses working on all the steps listed here as well as saving in your retirement accounts.5. Combination of 2 or more options 1-4. a. Additionally, we suggest exploring other skill sets that may allow for additional income away from aviation in the case of long-term disability.i. What do you love to do outside of flying?ii. Have fun with it and dream a little!1. For example, become a financial planner!2. Pilots are much more marketable than they think.Mitigating the Risk of Potential Disability as an Airline Pilot:As airline pilot salaries continue to increase beyond the amount of disability insurance coverage available at most airlines, it is more important than ever to utilize every option available to mitigate the risk of becoming disabled and unable to fly.  MIL Money Coach, Amelie Riendl has developed the checklist below in order to help pilots understand all of the planning options available in addition to your airline employer’s disability insurance. You can learn more about cash flow planning in cash of a disability here: https://ccfinancialcoach.com/Click here to access the checklist! ### Flight #43: With Dimensional Fund Advisors, Vice President Apollo Lupescu Pilot Money Guys: Flight #43: With Dimensional Fund Advisors, Vice President Apollo Lupescu  Information about today’s podcast:Dimensional Fund Advisors (DFA) - https://us.dimensional.com/“The assets we(DFA)manage represent more than shares in a portfolio.  That money represents the savings, sacrifice, and dreams that investors have entrusted to us. We take this responsibility seriously. Founded in 1981, Dimensional has a long history of applying academic research to practical investing. We offer a full range of equity and fixed income strategies designed to target higher expected returns.” Apollo Lupescu, PhD, Vice President, Dimensional Fund Advisors:Apollo Lupescu is vice president at Dimensional Fund Advisors, one of the premier investment managers in the world, managing around $650 billion in assets. He is a nationally and internationally recognized speaker who has delivered hundreds of lectures and seminars to financial professionals and individual investors on various investment topics. Apollo is considered “secretary of explaining stuff”, because he has a knack for explaining complicated issues in a clear and understandable way.Apollo has been with Dimensional in Santa Monica for over 18 years, and prior to that he taught at the University of California. Apollo also served in a variety of roles with the US Department of State, from which he formed his own consulting firm, Apollo Consulting Group.He received his PhD in economics and finance from UC Santa Barbara. Apollo also holds a BA in economics from Michigan State University, where he competed and coached water polo. Rumor has it that even to this day he is still playing, and more recently he is not only in the pool, but also learning how to surf in the ocean. Top Investor Myths... Common Questions & Lessons Learned:What does the evidence tell us about what to do in down markets? What do our innate biases tell us to do and why are they the opposite?1. Myth -Successful advisors need to “time the market.”Common Question: “Clearly, the stock market is going down and going to get worse, why not just go to cash...?”The idea that an investor wants to avoid downturns in the market is an understandable and reasonable response. The challenge in the execution.  Most of the time, it turns into a bigger loss and more stress than staying invested. In summary, mistiming the market comes with punishing consequences.  From our experience, when someone sells their equity positions to relieve stress, they simply replace the stress of being in the market with the stress of being out of the market and wondering when they should get back in. There is no magic signal. In other words, they exchange one stress for another. We miss the best days in the market... therefore “portfolio performance could be decimated.”  See JPMorgan “The Case For (Always) Staying Invested” at https://www.jpmorgan.com/wealth-management/wealth-partners/insights/the-case-for-always-staying-invested#infographic-text-version-uniqId1663780633203.This chart shows the annualized performance of a $10,000 investment made between January 2002 and January 2022. A fully invested investment returned 9.4% or $60,253. When the investor missed the10 best days, the return is 5.21% or $27,604. When the investor missed the 20 best days, the return is 2.51% or $16,414. Finally, when the investor missed the 30 best days, the return is 0.32% or $10,651. An added fact is that seven of the 10 best days occurred within 15 days of the 10 worst days.   2. Myth - The Fed funds rate changes and impacts on bonds and stock returns. Common Question: “So, the Fed raises rates because the economy is strong enough to stand on its own and the stock market tanks? That doesn’t make sense?” The expectations of the Fed’s actions, commitment, and plan to fight inflation are very important.  For example, if consumers, employers, and investors believe inflation is here to stay, then in many ways, it becomes a self-fulfilling prophecy. If we have confidence and believe the Fed is going to take strong action to fight inflation, then people’s behaviors (spending patterns) will fall in line with those expectations as well. What does recent history tell us about stock market (S&P500) performance and rising interest rate environments? Rising interest rates can and will cause short-term pain in the economy and sometimes the stock market. However, in the most recent rising rate environments the stock market has been up. From January 2000 to December 2021, five out of six years of rising interest rates the market did not drop. As an investor, “...it is critical to remember that the stock market is about purchasing ownership in public companies. And the value of the ownership depends on the profits that the company expects to make. And we'll come back to this because it is a crucial concept. If you think in terms of the value of a company like Apple, Google, Facebook, you name it, Coca-Cola, etc., it is tied to the profits that they make. The question is, is the federal funds rate a primary variable that you can link directly to the profits of the company, and are they tied directly into what that interest rate does? And what the data seems to suggest is that it is quite likely that the fed fund rate does have some impact on the profits of a company, but there does not seem to be a primary connection there that you could say, if interest rates go up, profits go down.” ~Apollo Lupescu 3. Myth -Politics and the market (the President controls the markets) Common question or comment: “If X president was in office, we would not be in this mess.” The economy and the markets become an extension of investors’ emotions related to their personal politics. It is important to have personal values and political points of view; however, most investing decisions need to be data-driven. Being careful to differentiate between personal emotional biases and what the data tells us. For example: Is there an obvious pattern that would tell you that having a Republican or a Democrat is better or worse for the markets? Is there evidence to suggest which political party fared better? When you look at the historical data, it is not clear that having one president, or another is better or worse for the markets. “...In fact, President George W.Bush was extremely business-friendly, and cut taxes, specifically on investments. And yet during the eight years that he was in office, the market dropped. Should he be blamed for that? My answer is, absolutely not because 9-11 happened just as he came into office...” ~Apollo Lupescu Listen to the podcast to hear how the stock market performed when Republicans had a unified government (controlled the White House, the Senate and Congress) versus when the Democrats had a unified government.    Bonus: What is the difference between Index Funds (Indexing) and the investment approach used by Dimensional Fund Advisors? What emerged in the 1970s, With the advent of computers and more rigorous data was a different way to think about investing. And the idea back then was that, okay, well, let's look at these companies. There might not be any reason why not to hold them, so let's consider them. But the idea was that instead of trying to understand the behavior of these companies and form an expectation about these companies by themselves, the idea was to create a different way of looking...And the idea is that as an investor, you want to understand not the stock itself, as much as the category to which it belongs. An idea that became known as asset-class investing.  ### Flight #42: Why is the Fed Driving Us into a Recession and What is Deep Risk? Pilot Money Guys: Flight #42: Why is the Fed Driving Us into a Recession and What is Deep Risk? Q&A: Most common client questions lately: Headline of the day!  (See slide...)https://www.jpmorgan.com/wealth-management/wealth-partners/insights/the-case-for-always-staying-invested#infographic-text-version-uniqId1663780633203This chart shows the annualized performance of a $10,000 investment made between January 2002 and January 2022. A fully invested investment returned 9.4% or $60,253. When the investor missed the 10 best days, the return is 5.21% or $27,604. When the investor missed the 20 best days, the return is 2.51% or $16,414. Finally, when the investor missed the 30 best days, the return is 0.32% or $10,651. An added fact is that seven of the 10 best days occurred within 15 days of the 10 worst days. Topics we have been writing about, helping our clients with...Non-Airline Company Life Insurance and Portability...The limits of standard Disability Insurance and how to manage those limitsHow to stay disciplined in this battle...bad stock marketWhat’s the best path for young aspiring pilots?  Cargo, Passenger, Fractional, Military?Meat of the Mission: 1. Why is the Fed raising rates such that we could go into a recession? a. Why is inflation so dangerous?b. What role does psychology play in our economy, inflation, etc.?i. 1970, 1980’s...c. Why would we keep investing if we knew we were headed for a recession?i. Official dates of the Great Recession: December 2007 – June 20091. S&P 500 Market returnsa. January 1 – December 2009 – 26.5%b. 2010 – S&P 500....about 15%2. What is Deep Risk versus Shallow Risk? We are afraid of the wrong things.Book by ...Deep Risk: How History Informs Portfolio Design (Investing for Adults)a. William Bernstein - William J. Bernstein is an American financial theorist and neurologist.i. The Four Pillars of Investingii. If You Caniii. Deep Riskb. Deep Risk:i. Deep Risk are inflation, deflation, confiscation, and devastation... “any useful discussion of portfolio design of necessity incorporates their probabilities, consequences, and costs of mitigation.”1. For example, investment discipline, taxes, inflation, disability, death, spending, income...c. Shallow Risk:i. “The Biggest Lie” Leading Edge video, news media. CNBC.  Short-term market performance.1. You will experience shallow risk every few years...2. This down market does not help but it is factored in. It’s part of investment, a cost, not a risk. Something to be planned for...a. Ongoing, below average returns would be a big concern.   In other words, what did you plan for? What are your market expectations?b. For example, March 2020 – down 30%-ish. 35% from the high in February.3. Do not allow shallow risk to become deep risk... Investor discipline https://www.jpmorgan.com/wealth-management/wealth-partners/insights/the-case-for-always-staying-invested#infographic-text-version-uniqId1663780633203This chart shows the 20-year annualized return by asset class (2001–2020). REITs returned 10%. EM equity returned 9.9%. Small cap returned 8.7%. High yield returned 8.2%. The S&P 500 returned 7.5%. A 60/40 portfolio returned 6.4%. A 40/60 portfolio returned 5.9%. DM equity returned 5%. Bonds returned 4.8%. Homes returned 3.7%. The average investor returned 2.9%. Inflation ran at 2.1%. Cash returned 1.4%. Finally, commodities returned -0.5%. Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #41: What’s the Best Path for Young Pilots: Commercial, Cargo, Military, Fractional? Pilot Money Guys: Flight #41: What’s the Best Path for Young Pilots: Commercial, Cargo, Military, Fractional? 15 Lessons Aviation Can Teach You About Life:1. You are responsible.2. Attention is life. Inattention will be at least minimally harmful if not deadly.3. There is always a curriculum. Preparation is advised.4. A well-lived life, like flying, requires constant adjustments.5. Think before you speak or key the mic..... Listen for more.Q&A: Most common client questions lately:Headlines – Beware!▪ See housing market headline from RedfinHeadlines are meant to make you fearful. They have about three seconds to grab your attention in the world of fast-paced news. You will often see over-the-top headlines that are not even related to the article itself.For example, “Redfin predicts sharpest turn in housing market since 2008 crash”▪ If you actually read the article here is an example of the content: “...for the first time since 2021, the average home is selling forless than its list price...” OR “While home prices are still higher than a year ago, with the average home now selling for just under $370,000, inflation and high interest rates are slowing down the market.”Please sign up for our monthly Leading Edge-Read-Before-Fly Newsletter and Rate and Share our Podcast.1. Please sign up for our monthly pilot newsletter: Leading Edge “Read Before Fly”• Go to Leading Edge Planning.com and sign up for our monthly pilot newsletter.Pop up or click on contact us...• Scroll to the bottom of the podcast page, click on “The Pilot Money Guys” then “Subscribe” in the upper right corner.2. Please rate and review our podcast...• Step one – Hit “library” then “shows” then hit the thumbnail pic then, scroll down to the bottom of our podcast feed on iTunes• Step two – Hit the 5th star on the rating.• Step three: look slightly below that area and hit “Write a review” ...• Step four: type something (awesome and funny) in and hit “send.”I’ve learned that it knows when I've personally rated and reviewed the podcast more than a dozen times...What’s the best path for young aspiring pilots? Cargo, Passenger, Fractional, Military?Common questions and points-to-ponder when deciding which path is right for you.Do you enjoy long-haul flights that may last six to twelve hours?How long are you comfortable being away from home? Oftentimes, cargo pilots are gone for longer periods of time but they may also get large chunks of time off. For example, ten days on and ten days off. Fractional carriers like NetJets typically work seven on and seven off. Southwest Airlines' typical schedule would be three days on and four days off.What are the differences in pay? You’ll probably make more at the cargo carries since most of the flying is wide-body, international. You’ll probably make less than average at fractionals but you may enjoy the type of flying more. For example, it is much more dynamic and less rote from day-to- day. Many people that have a passion for general aviation love the type of flying at a fractional carrier.What type of commute should you expect? For example, if you fly for FedEx or UPS, your bases will be very limited. So you’ll probably be a commuter. NetJets will fly you on a commercial carrier from your home to wherever your trip begins. Either way, the panel of pilots agrees, living where you are based can greatly increase your quality of life and increase your income.Tune in for more details and differences in the types of commercial aviation. Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #40 - Lessons Learned from Captain Darren Ellisor and Southwest Flight #1380 Pilot Money Guys: Flight #40 - Lessons Learned from Captain Darren Ellisor and Southwest Flight #1380 Financial Q&A: Most common client questions lately:1. How to get some sort of return/interest for short-term goals? 1-5 years?  a. I-Bonds: Currently paying an annualized 9.62% for the next six months.https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm#:~:text=The%20composite%20rate%20for%20I,October%202022%20is%209.62%20percent.b. Treasury Bills: Payingabout 2.8%-3.4% depending on the term.https://ycharts.com/indicators/3_month_t_billhttps://ycharts.com/indicators/1_year_treasury_ratec. Treasury Bonds:https://ycharts.com/indicators/2_year_treasury_rate#:~:text=Basic%20Info&text=2%20Year%20Treasury%20Rate%20is%20at%203.42%25%2C%20compared%20to%203.37,long%20term%20average%20of%203.14%25. 2. Should I stop saving and investing since the market is tanking?  a. No!  This is the best time to save and invest. Buy low! Stay invested, even when it’s difficult because the stock market tends to recover quietly. There is no magic signal or announcement that the stock markets are doing better.   Special guest Darren Ellisor:Darren Ellisor is a Captain at SouthwestAirlines with over 11,000 flying hours. He started flying for Southwest in 2008 after serving more than 10 years in the active-duty Air Force. Darren graduated from the US Air Force Academy in 1997. In the Air Force he flew multiple versions of the Boeing707, accumulating the majority of his time in the E-3 AWACS as an Instructor and Evaluator Pilot. In the E-3, he flew numerous Combat Support flights during Operation NOBLE EAGLE and during middle east deployments for Operation NORTHERN WATCH, Operation SOUTHERN WATCH, and counter-drug operations. During tours at Tinker AFB, OK and Geilenkirchen NATO Airbase, Germany, Darren worked as Squadron Chief of Standardization and Evaluation, as well as Squadron Chief of Flight Safety. He was named Pilot of the Year at Geilenkirchen in 2004.On April 17, 2018, Darren was flying with Captain Tammie Jo Shults from LaGuardia to Dallas-Love on Southwest Airlines Flight 1380. Climbing through 32,500 feet, the number one engine exploded, causing shrapnel to damage much of the left wing and a passenger window to blow out. The aircraft banked more than 41 degrees to the left and experienced extreme aircraft vibration, hydraulic malfunctions, and an explosive decompression of the cabin. Darren, who was flying the aircraft at the time, recovered from the ensuing unusual attitude and started a descent. He worked alongside Captain Shults and their flight attendants Rachel Fernheimer, Kathryn Sandoval, and Seanique Mallory to safely make an emergency landing of the crippled jet at Philadelphia International airport—saving 148 lives. One passenger was unfortunately killed in the accident. In his free time, Darren has volunteered as a Cub Scout Pack Leader and as a Little League baseball coach. Darren and his wife, Jennifer, live in League City with their four children. Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #39: Roth 401k Contributions, Roth IRA Conversions, Mega Back Door Roth and more! Pilot Money Guys: Flight #39: Roth 401k Contributions, Roth IRA Conversions, Mega Back Door Roth and more! The Basics of Roth Conversions1. In General, young, lower income (e.g., new First Officer) expect a higher tax bracket in retirement...Roth can be a no-brainer.a. But there are other very important considerations that may go against this rule of thumb. 2. Important to know – Everyone, regardless of income, can contribute to an after-tax or nondeductible IRA. 3. What are my options if I only have pre-tax IRAs?a. Convert the pre-tax IRA to a Roth IRA, and you will be taxed at your marginal income tax rate. Or...b. Roll the pre-tax IRA into your 401k, then execute back door Roth the following calendar year. 4. What are my options if I have after-tax IRA contributions? Also known as “basis” in your IRA.a. Convert to Roth and pay fewer taxes than you would if all the IRA were pre-tax.b. But you must know your basis. Sometimes, that can be a challenge to figure out. 5. Roth Conversions are more advantageous when markets are down.a. You will pay less taxes on the conversion. Vanguard’s Article - “A BETR approach to Roth conversions”Click here for the full article. (see below for hyperlink address) 6. Three situations in which the BETR (break-even tax rate) is lower than the current marginal tax rate: In other words, making a Roth conversion when your future tax rate will be lower than your current tax rate.a. When a conversion tax is paid from a different account.In this case, the longer the investment horizon, the lower the BETR.How you pay the tax on the Roth conversion really matters. Paying the taxes from your cash flow or a tax-inefficient investment account is ideal.b. When the traditional IRA includes non-taxable basis.c. When the conversion of the traditional IRA opens the “back door” to future Roth contributions. 7. Future tax rates are only one consideration for Roth conversions. What are other valuable considerations?a. Flexibility in retirement; example, large purchases-house purchase, build.b. Estate planning – pass on Roth to your children – 10-year required minimum distribution RMD (Required Minimum Distributions) requirements.c. Tax diversification in retirement. “Most investors will benefit from tax diversification by holding taxable, tax-deferred, and Roth accounts” ... (also HSA (Health Savings Account)) Bonus!8. What is the Mega-Back Door Roth?a. Some employer 401ks allow for after-tax 401k contributions. If so, you can contribute above the normal 401k contribution limits and then convert those contributions to Roth 401k. 9. What is the next best option if I cannot save in Roth 401k or do Roth conversions?a. Health Savings Account (HSA) - The only account that is completely tax-free.b. Taxable Brokerage Account. I.e. a non-IRA investment account. WARNING: Tracking Roth IRA conversions on your tax return is not easy. Many tax professionals struggle in this area. If you do not document after-tax IRA contributions and Roth conversions correctly on Form 8606 in your tax return, you will highly likely get a letter from the IRS saying you owe some taxes. Even though this situation can be rectified with proper documentation, it is never fun to get a letter from the IRS!https://institutional.vanguard.com/insights-and-research/report/a-betr-approach-to-roth-conversions.html#:~:text=The%20traditional%20wisdom%20has%20been,investor%20indiff erent%20to%20a%20conversion Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #38: Seven Steps for High Performance Health High Energy Aging with Stuntman Base Jumper and Urban Building Climber Ron Broyles Pilot Money Guys: Flight #38: Seven Steps for High Performance Health High Energy Aging with Stuntman Base Jumper and Urban Building Climber Ron Broyles In this podcast, we discuss steps to maintain a high-performance, high-energy lifestyle as we get older. More specifically, creating a life where you feel great, more fulfilled, and more joyful as well as creating a legacy with not just your wealth but your health and outlook on life for generations to come.Our audience is high-performing professionals and pilots, BUT we all go through times where we are not performing at our peak; mentally, spiritually, physically. Especially as we age...Now is a unique and stressful time for airline pilots, corporate, cargo, and commercial pilots. Most major airlines are under contract negotiations –stressful! Flights have been full, chronically late with angry passengers. Flying has not been a fun place to be in the last 2 years –post-Covid.Ron Broyles is our guest today because he is walking the walk. He is 69 and full of life, energy, joy, and fulfillment.How do we as pilots maintain the mental and emotional toughness to maintain our quality of lives, enjoy our families and feel a sense of joy and peace during these difficult airline times?Why bother with health, nutrition, positive mental attitude?1. We are in a race...we are meant for growth. It is as if we are in a highly competitive game or fighting for our peace of mind, focus, finances, health, and joy and we don’t even know it.Every entity in our lives is fighting against us having those things, and we are not fighting back. We know this as being intentional or proactive.Marketing agencies, social media, news media are fighting for your time, money, attention –your mind and they are playing with PhD level minds and huge supplies of money.We are not equipping ourselves to win!We need to be intentional about training to win the fight.2. We need to take proactive, aggressive steps to live a life of purpose on purpose.3. Why not? Choose your “hard”...Life is hard when you eat right and exercise and choose to be joyful. Life is much harder when you simply drift along allowing life to happen to you.4. You will leave a legacy in every aspect of your life whether you know it or not.5. Your health is your wealth!Seven practical steps for maintaining physical, spiritual, and mental health:1. Realize you are one or two choices away each day for either building a great life or living a life of mediocrity or worse chronic unhappiness and bad health.2. Healthy relationships and accountability partnerships.Ask someone to help you stay on track. Similar to AA and Weight watchers. More importantly, someone you can share your feelings with –seriously!Men are especially bad at this and it’s bad for your health.Get a workout instructor.See a counselor.3. Don’t minimize your emotional health – Do not try to John Wayne through it!Be intentional about the feelings you want – Happy, joyful, peace, love, anger...Studies have even shown that unhealthy anger in its repressed state has been linked to cancer.Sigmund Freud – “unexpressed emotions will never die. They are buried alive and will come forth later in uglier ways.”This is one of the most underestimated keys to our quality of life.4. Nutrition - Read the labels on your food and understand what you are eating.You can’t outwork your bad eating habits as you get older!5. An attitude of gratitude leads to a healthy life!Write down three things a day6. Give! Give away some of your money, some of your time or both. Your perspective will change.7. The importance of physical activity and exercise!Links to some of Ron’s Adventures:https://coronadotimes.com/news/2013/07/17/1986-flashback-thrill-junkie-ron-broyles-jumps-from-coronado-bridge-from-limo-roof-video/https://www.youtube.com/watch?v=iaXM7WmIuQghttps://www.latimes.com/archives/la-xpm-2003-oct-15-me-bike15-story.htmlhttps://www.nytimes.com/1983/03/15/us/stuntman-scales-tower.htmlhttps://www.knoxnews.com/news/local/mad-jack-fielden-turned-furniture-sales-into-stunt-work-ep-360004879-356614601.htmlhttps://newspaperarchive.com/altoona-mirror-mar-15-1983-p-24/Books or Podcasts that we mentioned or recommend on this topic:Atomic Habits by James ClearThe Power of One More, The Ultimate Guide to Happiness and Success by Ed MylettThe Infinite Game by Simon SinekSalt Sugar Fat: How the Food Giants Hooked Us by Michael MossSickening: How Big Pharma Broke American Health Care and How We Can Repair It. by John Abramson, MD, MScCan’t Hurt Me by David GogginsFavorite podcasts:Ed Mylett –The Ed Mylett ShowJon Gordon –Positive University Podcast Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #37: I’m 60 Now What? You’re Cleared for Retirement! Pilot Money Guys: Flight #37: I’m 60 Now What? You’re Cleared for Retirement! Leading Edge’s own, co-founder and CFO, Kevin “The Professor” Gormley, CPA, PFS, CFP® is our special guest today. We think of a 5-year runway to take off for retirement.  It can take that long to mentally prepare for the end of your career.  It also may be enough time until retirement to make significant course corrections if necessary.  At a minimum, this is the time to make sure you run that last Before Takeoff (retirement) checklist, and you are ready for a great retirement!A quick peek into the discussion with the Pilot Money Guys and “The Professor.”Understand the difference between risk tolerance and risk capacity.  You may not have the capacity for investment risk at age 60 due to your income requirements in retirement.  You should have an idea, the more clarity the better, on how much you want or need to spend in retirement.  You need to know if your portfolio and other sources of income can support your desired level of lifestyle spending in retirement. What is the best way to ensure you do not run out of money in retirement?  One way is to use a Monte Carlo analysis.  But you must understand what the results actually mean.  As you head into retirement, it may be beneficial to have the required spending needs in retirement covered by guaranteed sources.  This includes military pensions, social security, and possibly annuities.  The good news is the annuity marketplace now offers commission-free annuities! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #36: Top 5 Lessons Learned from Value Investing Pilot Money Guys: Flight #36: Top 5 Lessons Learned from Value Investing In this episode, the Pilot Money Guys are talking about Value investing. We describe what value investing is, and talk about lessons learned as investors in value companies.Value Investing and Lessons Learned:1. Even though past returns are not indicative of future performance, Value investing has shown to do well during periods of higher inflation.   2. The recent poor performance of Value investing is almost unprecedented.  Therefore, making it difficult to stick with a disciplined, diversified portfolio.   3. Do not give in to FOMO when selecting your investment strategy.  The recent run-up in Growth Stocks was partly fueled by FOMO.  Most of the time when investing based on your emotions instead of a disciplined strategy, investors end up buying high and selling low.   4. There is no evidence that investors can use investment timing techniques to switch from growth to value to take advantage of higher returns.  You have to stay diversified even when it feels painful to own underperforming asset classes.   5. It is very dangerous as an investor to assume that you know things that are unknowable. For example, we do not know for certain which asset classes will outperform in the future.  Investors must remain humble, be prepared to be wrong and understand that there will always be information in the news, social media, YouTube, etc. that may seem to confirm our false beliefs. 6. When markets are volatile you may have opportunities to rebalance into the pain.  For example, when international or value asset class is performing poorly, you can sell your winning asset classes and purchase assets classes that have not performed as well.  This is counter-intuitive, and takes discipline but results in buying low and selling high.    Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #35: The REAL Top Gun ft. Peachez Pilot Money Guys: Flight #35: The REAL Top Gun Ft. Peachez In this episode of the Pilot Money Guys we sit down with Peachez, aka Micah Porter. Micah is a former Top Gun Navy fighter pilot turned Air Force fighter pilot and current UPS pilot who sheds light on what its really like in Top Gun and how he rates Tom Cruise's performance in the new movie. We hope you enjoy a break from the financial topics - this is a fun one!We'll be back next time talking Value Investing on the next episode.Thanks for listening!The Pilot Money Guys Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #34: Forever in Blue Jeans Pilot Money Guys: Flight #34: Forever in Blue Jeans We’re calling this episode of the pilot money guys “Forever in Blue Jeans” because as the famous song goes:  “Money talks But it don't sing and dance and it don't walk And long as I can have you here with me I'd much rather be forever in blue jeans” In this episode we discuss the Florida man who lands a plane with no experience, we have a Q&A segment, and we have a heart felt discussion about creating lasting and fulfilling success with finances. Thank you for listening! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #33: Inverted Yield Curve – Canary In The Coal Mine Pilot Money Guys: Flight #33: Inverted Yield Curve – Canary In The Coal Mine In this episode of the pilot money guys, we are talking about the yield curve inversion that has been the topic of many new articles recently. If you’re unfamiliar, an inverted yield curve is supposed to be the magic predictor of a looming recession. Recently the yield curve inverted, so is a recession on the horizon?Charlie and Rob dive into the yield curve topic and cover in this discussion:What is a yield curve?What if it points to a recession every time? If it was 100% reliable, would that change how we invest?Are there any actions steps that we can take now that the curve has inverted?With recession talk ramping up, inflation continuing to rise, and investments dropping rapidly, now is a good time to review your saving, investing, and retirement plans. If you are nervous about the current situation, please give us a call. We’d love to talk about your situation and how a plan will help give you peace of mind.Thank you for listening to our podcast,The Pilot Money Guys Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #32: We’re All Gonna Die... Someday Pilot Money Guys: Flight #32: We’re All Gonna Die... Someday We’re all going to die... Someday.Yes, this is not a fun topic to cover, but unfortunately we’ve dealt with a few deaths over the last 12 months and we want to talk about the lessons we’ve learned. We get philosophical in this one, but we think it’s extremely important!Top 5 things to do to make sure you take care of loved ones when you’ve gone:BeneficiariesLife InsuranceHow do you access each account? Where are physical documents located?Accounting – Financial Assets and LiabilitiesDevelop a Plan for Minor Children.Bonus: Write a letter... Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #31: Target Date Funds Pilot Money Guys: Flight #31: Target Date Funds The majority of 401(k) plans are invested in Target Date funds. These funds give diverse exposure in stocks and bonds, and as we get closer to the target retirement date, the fund automatically adjusts as to be more conservative. This has helped many people to avoid the stress of picking funds in their retirement plan, as well as helping to protect the funds as retirement gets closer. Many times, these funds has low expenses, and they often get close to market returns.So, are these funds right for you? In this episode, we are diving into target date funds and giving reasons why they may or may not be right for you.Thank you for listening!The Pilot Money Guys Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #30: Chasing Hot Stocks - Investing in the Rear View Mirror Pilot Money Guys: Flight #30: Chasing Hot Stocks - Investing in the Rear View Mirror In this episode, we are joined by The Professor aka Kevin Gormley CPA, CERTIFIED FINANCIAL PLANNER®. Where we discuss:The airline news segment for this podcast is on China’s Eastern Airline flight 5735, where we break down what we know so far.When rising inflation is coupled with slow economic growth and increased joblessness, that is known as Stagflation. Just recently the billionaire investor Ray Dalio said that we he believes we will have a period of Stagflation. So, is stagflation looming on the horizon? We share our thoughts and look at economic data to try and wrap our heads around this problem that is dominating the news as of late.Our financial topic today is on buying the recent best performing stock, index fund, or ETF. How does this strategy typically perform, and why do we avoid picking stocks through the rear-view mirror? When we see stocks or funds continue to grow in value, it can feel obvious that it will continue to go up. If you don’t invest in the fund or stock, it feels like you are sitting on the sidelines and missing out on returns. Today, we dive into the performance history of the most famous ETF from the last two years, the ARK Innovation ETF (ARKK). The fund rose to fame during the pandemic for its large investment in Tesla and the fund manager Cathie Wood, who was picking high growth stocks and making huge returns. We give insight into the investment flows into the ETF and how the typical investor performed.Thank you for listening! If you have any questions, thoughts, or concerns please give us a call at 865-240-2292 or send an email to info@leadingedgeplanning.com. Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #29: Where Do Investment Returns Come From? Pilot Money Guys: Flight #29: Where Do Investment Returns Come From? In this episode of the Pilot Money Guys, we discuss the Frontier - Spirit Airlines merger, where investment returns come from, and why Cowbell should permanently replace Rubber Mallet. (Ok maybe not this...). In this podcast, we are joined by Carson McLean, CFP®. Carson is a regional director with Dimensional Fund Advisors, and a true expert in the industry. We're so excited to share our conversation and want to give a big thank you to Carson for joining us. We cover everything from callsigns to the history of index funds, so sit down, buckle up, and enjoy the flight!If you have any questions, concerns, or feedback, please give us a call at 865-240-2292 or send us and email to info@leadingedgeplanning.com. If you feel uncertain about your financial future, we'd love to connect. Schedule a time to talk at https://www.leadingedgeplanning.com/bookmeetings/Thank you so much for listening!The Pilot Money Guys Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #28: Russia Ukraine Crisis What It Means For You Pilot Money Guys: Flight #28: Russia Ukraine Crisis What It Means For You We’re back in action with a new episode (recorded 3/11) of the Pilot Money Guys. In this episode Rubber Mallet is replaced by Cow Bell, the topic is the news of the markets: Russian’s Invasion of Ukraine, and Charlie tells us about getting chased by a lion, a water buffalo, and a hippo.On Ukraine and Russia:What can history tell us about investing through conflicts?What is the economic scale of the conflict?What do we expect from the markets going forward?What is the real risk in the markets?How to avoid scams when donating to Ukraine.We’d love you feedback and any topics you would like us to cover. Please email your comments to info@leadingedgeplanning.com or give us a call at 865-240-2292.Thank you for listening! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #27: Budgeting with Amelie Riendl Pilot Money Guys: Flight #27: Budgeting With Amelie Riendl A special episode of The Pilot Money Guys featuring an interview with Amelie Riendl:Amelie is a Financial Coach at Mil Money Coach and has spent years studying the best methods for budgeting. She graduated from Michigan Technological University, where she gives back to every year. She has a Master of Engineering in Chemical Engineering from Princeton University.She's worked for Johnson and Johnson as a Senior Scientist and Quality Engineer where she won multiple awards. She is a Project Management Professional® and worked as a Project Manager for FMC corporation and at Integrated Project Management, where she consulted for companies such as Dynavax technologies, PDL Biopharma, and Walmart.She was awarded a FINRA foundation Military Spouse Fellowship Scholar, through which she is an Accredited Financial Counselor® candidate. She's now a Financial Coach at Mil Money Coach in Colorado Springs, Colorado where she helps empower military families with information to help them eliminate debt, increase savings, and create a plan to reach their military retirement goals.If you or someone you know would like help with creating a savings, debt, and/or financial plan you can contact Amelie at https://ccfinancialcoach.com/schedule-discovery-call/.We want to say thank you to Amelie for being on the podcast. It was a great conversation, and we will have you on the podcast again soon! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #26: Should You Buy Life Insurance as an Investment? Pilot Money Guys: Flight #26: Should You Buy Life Insurance as an Investment? We often have clients contact us with unique investment ideas. We will evaluate them and give out honest thoughts and concerns. One of the more popular ‘investments’ that we have seen lately is insurance products that are pitched as investments. So, is it possible to use insurance as an investment? That would be the best of both worlds, right?Today, the Pilot Money Guys are joined by Kevin Gormley, aka the Professor, to discuss the idea that you can use insurance as an investment. We talk about how these products are pitched, sold, and the risks that come along with these ‘investments’.As Fiduciary financial planners, we do not sell insurance for commissions. However, we are able to advise and even connect clients with non-commission insurance products if they would like to get an insurance plan started.If you have questions on insurance, we would love to help. Please reach out to us with any questions that you have about insurance and we will give you our honest thoughts and concerns.As always, thank you for listening!The Pilot Money Guys Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #25: Seven Action Items for Market Downturns Pilot Money Guys: Flight #25: Seven Action Items for Market Downturns Why are the markets down year to date and what can we do about it?In this episode, the Pilot Money Guys reflect on the volatility that has been going on in the markets this year. We discuss the craziness with the ongoing situation in Ukraine, the Fed’s new changes, and inflation and how those are affecting the market.We are talking about 7 action items that you can do to in a market downturn.1. Tax loss harvesting2. Roth conversions3. Rebalance AND rebalance into the pain.4. Accelerate savings – 401k, IRA, Brokerage5. DCA works great too...6. Rely on your plan. 7. What are your plan’s assumptions – often investment return of 6-7%.  A bad year is expected.  8. Diversification works – foreign markets current outperforming US, Value currently outperforming Growth, Bonds, etc.9. What are two reasons we recommend bonds? Shallower lossesQuicker portfolio recovery times 8. Keep the faith...The economy will survive.9. Even if Stock Market Crashes, Dollar Crashes. As always, we are happy to discuss these topics with you. Please give us a shout if you have any questions or concerns.Thank you for listening,The Pilot Money Guys Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #24: The Dangers of Headline Investing Pilot Money Guys: Flight #24: The Dangers of Headline Investing Over the years, Charlie has tracked and compiled financial news headlines that made bold predictions. Looking back on them is comical - only in hindsight - the predictions were ridiculous. However, at the time of the articles were published, these headlines were straight-up scary. In this podcast we are talking:How do people get their news - specifically financial news? CNBC, FoxBusiness, Twitter?What are the biases? What about the Confirmation Bias?How can this biased information be a detriment to your financial plan - hint: fear, emotions, etc.How do news algorithms work? They feed you what you want to hear.What are the results of the prognosticators - 50-50...basically a coin flip. What does the research show?What do the prognosticators have to lose by making bombastic predictions? Nothing. Are they help accountable?What do you have to lose by listening to and taking action on their predictions? Everything!There will be a correction this year! We average -13.8% downturn every year!Thank you for listening! If you have any topics or information you'd like us to talk about please send your idea to info@leadingedgeplanning.com.Y'all take care now!The Pilot Money Guys Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #23: The Magic of Setting SMARTER Goals Pilot Money Guys: Flight #23: The Magic of Setting SMARTER Goals Happy New Year! It’s time to review our mission!Our mission is,“To help our clients build and protect wealth to achieve their dreams and goals.”Building wealth may actually be the easier part of that equation. Of course, it may not be easy but saving for the future is often started by default. 401(k)s are automatically set up with companies from the get-go and investing is automated. Social security is automatically deducted from your pay checks and will be paid to you in retirement. Most of our clients were savers from the start, they just may not have known exactly where the money should go.However, building wealth is only part of the equation. Creating goals, or even dreaming of the future can be a challenge. Looking ahead can be scary. It can bring up regrets, fears, and insecurities. However, facing those challenges and developing a vision of the future can free you from many mistakes that the average investor makes. If you can allocate dollars to a vision, you are much more likely to succeed in your goals.Today we are focusing on the last, often hardest, part of the mission: achieving dreams and goals. In this New Year’s podcast, we discuss our successes and failures with setting goals, and why goal setting is so important for living happily today and in the future.We would love to help you “build and protect wealth to achieve your dreams and goals”. If you would like to discuss more, please reach out to us at info@leadingedgeplanning.com or on our website leadingedgeplanning.comHappy New Year!The Pilot Money Guy Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #22: End of Year Checklist Pilot Money Guys: Flight #22: End of Year Checklist We're back with another checklist! But first, we honor the women listeners of the Pilot Money Guys podcast with a call sign reveal for a special listener Dr. Jane, aka call sign Arc!Since you loved the Quick Reaction Checklist so much, we thought we'd keep with the trend and bring you a podcast on the End-of-year Financial Checklist. Every year there are things you should consider doing before the end of the year, here's what we think you should review before the end of 2021!1. Max contributions to your tax deferred accounts.2. For 2021, consider buying I-Bonds.3. Tax loss harvesting - more on this in the podcast!4. Have you taken your Required Minimum Distribution?5. Simplify your accounts - rollover your old 401(k).6. Check your beneficiaries.If you are enjoying the podcast, please share it on your next trip! We'd love to hear any comments, questions, or concerns. info@leadingedgeplanning.com - https://www.leadingedgeplanning.com/https://pilotmoneyguyspodcast.com/savings-priority-checklist/Thank you for listening! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #21: The QRC (Quick Reaction Checklist) of Savings Priorities Pilot Money Guys: Flight #21: The QRC (Quick Reaction Checklist) of Savings Priorities 1. Emergency Fund - 1 months savings in the bank, cd, money market etc. (FDIC insured)2. Contribute to matching 401k3. Set aside savings for Health Deductibles and perhaps max out of pocket if a lot of healthcare needs. If you are in an HSA plan, contribute. $3,600, $7,200 per couple, if over 55, $1,000 catchup contribution.4. Set aside savings for Life Insurance Premiums (10x Income per year) and Disability Insurance5. Payoff all credit card and high interest debt.6. Emergency Fund (6 months to a year) If in a high furlough or layoff industry consider longer Emergency Fund. Also consider I-Bonds for the more sophisticated investor (very flexible 1-30 years).7. Fund your 401k, 403B, and/or 457s. 401k 19,500 some states protect retirement accounts more than IRAs (look at Roth and non-Roth. Over 50 65008. Education Savings (529 usually better than Coverdell, can out more in and more9. Fund Traditional or Roth IRA $6,000 (+$1,000 catchup)10. ESPP (not more than 5% of wealth) don’t want all eggs in one basket. Take advantage of the discount. Also consider your stock options, RSUs, ISUs and their tax implications here.11. Brokerage Account tax buckets for retirement (cost basis increases yearly)12. Real Estate Investments13. High Income/At Risk Plans14. Payoff low interest debt (Cars, Mortgage, etc.)15. Speculative Investments (Art, Cars, Bitcoin). No more than 5% of total wealth. Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #20: What’s Important About Money to You? Pilot Money Guys: Flight #20: What’s Important About Money to You?  Thanksgiving is right around the corner it’s a great time to evaluate what is truly important to you. For us, we want you to understand what is important about money to you.In this podcast we discuss how you can think about money to use it to accomplish the things that are important to you.We are talking about:Generosity versus scarcity - fear  Be generous and have a mindset of abundance.    Understand your higher purpose and get involved in contributing to something larger than yourself.Know what you want; set meaningful goals and write them down.Develop an attitude of gratitude.  Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #19: Financial Newsletters Pilot Money Guys: Flight #19: Financial Newsletters “There’s a lot of money to be made from financial newsletters that give investment advice. But the money comes from selling the newsletters, not from taking the advice.” ~Paul Merriman Investment newsletters are getting more popular every year and the returns they promote are extremely tempting. So, should you ditch your financial plan and subscribe?  We’re diving into newsletters to give you our honest opinion and concerns.  Unfortunately, anyone can create an investing newsletter, and because they are not actually managing your investment accounts, they have no regulatory agency monitoring their recommendations or investment performance accuracy.   Investment newsletters only fall under the 1st amendment right of free speech, so they can claim any returns over any time period regardless of actual performance.  From the article “The Truth About Financial Newletters” by Paul Merriman.   https://paulmerriman.com/the-truth-about-financial-newsletters/ “In a 35th anniversary edition of The Hulbert Financial Digest, publisher Mark Hulbert noted that when he began tracking newsletters in 1980, there were 28 of them. Of those 28, only nine have survived. The rest are gone. Of the nine newsletters for which he has continuous data back to mid-1980, only two have beaten the market (measured by the Wilshire 5000 Index) on a risk-adjusted basis. One newsletter has matched the market for 30 years, and the other six have lagged behind.”   Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #18: Kids and Money Pilot Money Guys: Flight #18: Kids and Money  This podcast is all about helping your kids take the first steps to financial freedom and independence. We discuss some of the steps we all wish we would have taken when we were first starting out as new savers and investors. We believe we should help our kids learn from other's successes and mistakes - We do not have time to make them all ourselves! In fact, life is a series of building off the successes and failures we all experience. Sharing those lessons with our kids is easy in some areas but with finances it can be tough. Don’t let that stop you from preparing them for a great financial future.“Children are sponges—they are going to absorb whatever is around them, so we need to be intentional about what surrounds them.” — Dave RamseyOur kids will learn from our money habits whether we like it or not. We encourage parents to communicate money matters to their kids as well as be honest and transparent as much as possible, so they don’t make the same money mistakes we made.In this podcast we cover the most important financial topics for getting started. We believe this content can help you have great conversations with your kids. They still won’t think your cool, but I bet they’ll listen and learn something.Our goal for our clients is to help their kids build a foundation of financial knowledge that will set them up for success in the future!Thank you for listening!Check out the market timing game here:https://www.leadingedgeplanning.com/money-advice-to-share-with-your-kids Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #17: New Tax Changes Pilot Money Guys: Flight #17: New Tax Changes  In this episode of the Pilot Money Guys, we are joined by the Professor, Kevin Gormley CPA & CERTIFIED FINANCIAL PLANNER, to discuss the latest proposed tax changes.Although these are subject to change, there are things that you need to know to be prepared. Some changes we discuss:1. Capital Gains tax increases.2. Roth Conversion changes3. Child Tax Credit ChangesWe would love to discuss these tax changes with you! If you have any questions for us, please send them to info@leadingedgeplanning.com. Or visit LeadingEdgePlanning.com to schedule a 1-hour consultation.As always, thank you for listening! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #16: The 4% Rule Pilot Money Guys: Flight #16: The 4% Rule  In this podcast, we are talking about a commonly used rule-of-thumb for taking retirement income distributions. The 4% rule is meant to help you easily determine how much you can withdrawal from your retirement accounts each year, without running out of money in retirement.The 4% rule goes like this:The year you retire, add up all of your retirement accounts, and withdrawal 4% of the total.Each subsequent year, take out only the 4% (of the total balance at time of retirement) + adjustments for inflation.At this withdrawal rate, your money should last 30 years.So, should you keep it simple and use the 4% rule? We don’t think so!In fact, this podcast is dedicated to help you understand why the “4% Rule” may not be the best solution for taking retirement income distributions. Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #15: Changing Your Domicile to Avoid State Taxes Pilot Money Guys: Flight #15: Changing Your Domicile to Avoid State Taxes  Your domicile is defined as your permanent home where you pay your state income taxes.For most people, your domicile is straightforward, however, for those with multiple residences domicile can be hard to establish. And maybe even a little tempting to lean toward the lower tax state. Our goal in this podcast is to help you understand how to have multiple homes and stay out of trouble with Uncle Sam!Furthermore, the IRS says your domicile is based on your intent, which can be tricky to prove. A famous example is from a New York corporate executive moving to Texas. Even after getting a Texas driver's license and registering to vote there, the New York Division of Tax Appeals performed an audit and found the man to be liable for thousands of dollars in New York state income taxes. The man had to use the veterinary records of his dog in Texas to prove that he was intending to stay in Texas for the long haul!Thank you for listening! If you would like to have a conversation with us about tax domicile questions you may have, please email info@leadingedgeplanning.com or call 865-240-2292.www.LeadingEdgePlanning.com Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #14: Winter Is Coming Pilot Money Guys: Flight #14: Winter Is Coming  I’ll admit I’m a sucker for survival reality shows, particularly shows about people living in Alaska and the Arctic. It’s always amazing to watch as spring starts, these folks must jump right into preparing for the next long winter. With months of darkness, freezing weather, and almost no food available to catch, these folks need to be proactive to have a chance of making it through a successful winter.There’s a winter coming in our financial lives too. Indeed, there is a chill in the air! It’s time to start preparing now, so that we not only survive the next market crash but thrive. There are plenty of actions we can take now to not only protect us from losing everything, but take advantage of the next crash.In this episode of The Pilot Money Guys podcast, we are going over how we go from reacting to acting, from surviving to thriving, from freezing and starving to sitting inside your cabin with a nice fire and a moose steak to boot.Thank you for listening! If you’d like to have a conversation with us about your financial life, please reach out at info@leadingedgeplanning.com or calling 865-240-2292.www.LeadingEdgePlanning.com Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #13: I'm Disabled, Now What? Pilot Money Guys: Flight #13: I'm Disabled, Now What? 1 in 3 airline pilots will experience 90 days or more of disability at some point during their career! (Disability Insurance Statistics Bank)Luckily, most airlines have good disability benefits available to help provide some relief and income. However, it doesn’t mean 100% of your income will be replaced if something happens. In most circumstances, even if you are able to pay bills and put food on the table, many people will NOT be able to continue saving for retirement once disabled without extra disability insurance.In part 3 of our estate planning series, "I'm Dead Now What", we are talking about the biggest risk that pilots face - Airline Pilot Disability.Let’s make sure you are protected and know what to expect if something were to happen to you! Give us a shout to schedule a complimentary, no-obligation phone consultation and learn more about how we help you achieve your personal financial goals (865) 328-4969 or email us at info@leadingedgeplanning.com to go over your disability plan. Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #12: I'm Dead, Now What? Pilot Money Guys: Flight #12: I'm Dead, Now What? In part 2 of our Estate Planning Series "I'm Dead, Now What?" we go over 3 steps to make sure you're estate is prepared. If you are unsure whether you have a good plan for the unexpected, this is the podcast for you.We discuss what documents you need to have in place, why getting organized is important, and how beneficiaries and trusts go together to protect your family.You heard us right! We are giving away copies of our Estate Planning tool "I'm Dead, Now What?" to the first 10 people to email us at info@leadingedgeplanning.com. We have also put together an Estate Planning Checklist, which is available to everyone. If you would like us to mail you our Estate Planning checklist, email us at info@leadingedgeplanning.com.As always, if you have any questions, comments, or would like help with your financial plan - reach out at info@leadingedgeplanning.com or call us at 865-240-2292.Thank you for listening! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #11: How Much Is Your Kid Worth? 2021 Child Tax Credit Payment Pilot Money Guys: Flight #11: How Much Is Your Kid Worth? 2021 Child Tax Credit Payment We apologize for interrupting your regularly scheduled podcast program. We have BREAKING NEWS! What is up with the new American Rescue Plan (ARP) CHILD TAX CREDIT payment?There is a new increased Child Tax Credit Payment via the American Rescue Plan (ARP) that's paying out right now. Like many of us, you may have received a payment that you weren't expecting.Will you have to pay it back?Will it cause your tax bill to be higher in April?Should you spend it now?What's the difference between the new increased ARP Child Tax Credit and the previous version of the Child Tax Credit?Typically, taxpayers with income under $400,000 MAGI, married filing jointly, received a $2,000 tax credit per child under the age of 17 to offset your tax bill. This year, instead of getting the credit on your taxes, a portion of the credit will be paid out in advance over the next 6 months. If you count on the tax credit to offset your tax bill, you could be in for a big surprise! In this podcast, Leading Edge's Co-Founder and CFO, Kevin Gormley CFP®,CPA aka "The Professor" covers all the details of the new increased Child Tax Credit as well as the existing credit. Plus, everything you need know to NOT be surprised at tax time! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #10: I've Inherited Money, Now What? Pilot Money Guys: I've Inherited Money, Now What? Hello folks! We are excited because this is the first podcast in a 3-part series called “I’m Dead, Now What?”. That’s right, we are covering the exciting topic of death! I've Inherited Money, Now What? – Should you spend it, save it, tax implications, your family legacy? I’m Dead, Now What? – A discussion on estate planning. How can you pass on money to your heirs in the most tax-efficient manner possible? I’m Disabled, Now What? – A discussion on becoming disabled during your career. What if you lose your medical? How much income will you have to live on? For how long?Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled.We’re thankful for the feedback we have received on the Pilot Money Guys podcast. We are striving to bring useful insight on important financial topics to you. If you have suggested topics, questions, or comments for us, please email us at info@leadingedgeplanning.com.See you next time! Excerpt: Although a very difficult subject to face, these topics are important to plan around. In this first podcast of the series, we discuss what happens when you inherit money. We talk about the emotional decisions that must be made, the tax consequences, and how we believe inheritances should be handled. ### Flight #9: Can I Get Rich With Options Trading? Pilot Money Guys: Can I Get Rich With Options Trading? You are on a trip and your fellow pilot says they have a new investment strategy that’s getting amazing returns. You are skeptical at first, but after talking about it for the next five hours on the way to LaGuardia you become convinced you must be missing out.We hear these stories often; we even experience it ourselves! That’s why we are starting a new podcast segment where we discuss some hot topics circulating the pilot lounges, crew vans, and cockpits. We are calling these episodes the Pilot’s Crew Lounge!In this episode, we are taking on the hot topic of Options Trading. We’ve had a few pilots come to us with questions about Option Trading after hearing about them on trips. We are here to address these questions and give our thoughts!Are you missing out by not using options? In this podcast we discuss our Top Five Considerations Before Trading Options.If you have questions, comments, or topics that you would like us to cover, send them to us at info@leadingedgeplanning.com.Get your peace of mind back this summer with a comprehensive financial plan! Give us a call at 865-240-2292! Excerpt: In this episode, we are taking on the hot topic of Options Trading. We’ve had a few pilots come to us with questions about Option Trading after hearing about them on trips. We are here to address these questions and give our thoughts! ### Flight #8: Should you invest in Real Estate Now? Pilot Money Guys: Should you invest in Real Estate Now? Are you thinking about investing in Real Estate? In our 8th podcast, we discuss the major challenges and considerations to look out for when you are deciding if rental real estate is right for you. We discuss:Tax advantagesUsing leverage for your rentalBecoming a landlordCosts of owning rental propertiesOwning rental property in your self-directed IRAIf you are considering investing in rental real estate and have questions or concerns, please reach out. We are happy to review and discuss how your rental property affects your financial plan!LeadingEdgePlanning.cominfo@leadingedgeplanning.com Excerpt: Are you thinking about investing in Real Estate? In our 8th podcast, we discuss the major challenges and considerations to look out for when you are deciding if rental real estate is right for you. ### Flight #7: Highway To The Financial Danger Zone Pilot Money Guys: Highway to the Financial Danger Zone This week we have been thinking a lot about behavioral finance. We all have behavioral biases, which are defined as irrational beliefs or behaviors that influence our decision-making process. As investors, its important that we understand what these behavioral biases tend to be and how to recognize them. Most importantly, we need to know what we can do as investors to avoid allowing them to drive our decision making. We are calling this post the "Highway to the Financial Danger Zone". Charlie wrote the article below originally as a report during his time in his MBA program. We also recorded our latest Pilot Money Guys podcast where we have a conversation about this topic. Please check those out and let us know what you think! As always, if you have questions, comments, or would like to discuss this further please give us a call at 865-240-2292 or send us an email to Info@leadingedgeplanning.com. Thank you for reading and listening! Highway to the Financial Danger ZoneCharlie Mattingly 2012Section I:  IntroductionAs behavioral finance gains traction in the financial planning industry we are starting to understand why the average investor struggles with emotional financial decision making in the heat of the battle known as market volatility.  In this paper I will discuss real world conditions that cause us to continue to make poor investment decisions under ever increasing market volatility.As a previous F-16 fighter pilot in the Air Force, I am accustomed to quick decision-making under stress.  I will attempt to draw on previous training experiences in order to adapt some techniques that may be useful when preparing our clients to deal with extreme market volatility.  Many times I have heard an experienced combat pilot say; “my training and instincts took over.”  Why is it then that under actual life and death situations a trained fighter pilot can trust his or her emotional reactions when it seems the opposite holds true for investors in the stock market?  Can we take fighter pilot training techniques and translate those to the investing world?  I believe there are lessons to be learned here.Before we move on to the investor training session, I will explore the brains evolutionary wiring system in order to understand why our primitive thinking processes cause us to make emotional decisions.  Following this brief overview, I will discuss real world situations that demonstrate how changes in technology and complexity of financial decisions can contribute to harmful emotional decision making.  Finally, I will provide tangible action items taken from military training strategies that if executed correctly can limit poor investor performance from faulty decision-making processes.Mind Over Money?  The human brain is an amazing machine that is designed to protect us from life-threatening situations. The brain is wired to help us survive while simultaneously recognizing opportunities that increase our quality of life.  Unfortunately, it is also wired so that during extreme stress our emotional brain dominates our decision-making process.  In a study by Doug Lennick, CFP ® and Kathy Jordan, Ph.D. called “Money on Your Mind:  The Brain’s Role in Financial Decision-Making.”1 They describe how the brain has three main sections that dictate our decision-making process; the Rational Center (Cortex), the Emotional Center (Limbic System), and the Habit Center (Basal Ganllia).  The brain uses these three sections to work together to dictate how we make decisions and form habits.  Because the brain has a basic fight or flight reflex, the emotional center of the brain tends to take over “operations” when we feel threatened.Section II:  Major Behavioral Influences on Financial Decision MakingInformation At Our Fingertips, LiterallyRapidly changing technology and the information age sometimes causes faulty emotionally based decisions.  Technology has provided us with the latest and greatest stock market information literally at our finger tips.  There truly is an “app for that.”  The technology available today allows all investors who own a smart phone to instantaneously know any stock price at the touch of a button.  This means that as soon as any financial news of significance, or perhaps insignificance, is reported the information will be fully incorporated into market transactions almost instantaneously.  This means we have to accept the speed at which the markets change and realize a 200-point swing in the markets doesn’t mean what it used to mean.In a recent Money Magazine article2, Andrew Lo, M.I.T.’s Economist and Professor of Finance discussed the increased volatility and its effect on investors.  The article shows that the number of sharp up-and-down days of the S&P stock index has been increasing.  Since 2008 the S&P stock index has had 47 days with swings of more than 4%.  There were only 26 days with swings of more than 4% from 1983 until 2007.   Due to this increased market volatility some experts believe that buy and hold strategies will be extremely difficult if not impossible for the average investor to successfully execute.  Andrew Lo says that “Buy-and-hold doesn’t work anymore.  The volatility is too significant.  Almost any asset can suddenly become much more risky...simply because of the nature of financial markets and how complex it’s gotten.”The Tyranny of ChoiceWe’ve probably all heard the saying “paralysis by analysis.”  This is a very real and serious condition that we should be concerned about with ourselves and our clients.  Certainly, the federal government is very interested to learn how they can help educate current employees in order for them to make better decisions when saving for retirement.  The future of retirement savings looks much different than the past thirty years.  Benefit (DB) plans are quickly being replaced by Defined Contribution plans (DC) and therefore employees must take on the sole responsibility of making smart decisions about savings rates, asset allocation as well as lifetime withdrawal strategies.Dan Ariely, Behavioral Economist and author of “Predictably Irrational” has conducted research on why seemingly simple choices to some are much more complex to others.  Mr. Ariely addressed this “tyranny of choice” in a presentation titled “Are We In Control of Our Own Decisions” at a Technology, Entertainment, Design (TED) presentation3 and demonstrated how learning about the decision to become an organ donor can also help us understand how we can encourage workers to contribute more to their retirement plans at work.  He demonstrated how individuals handle difficult decisions by referring to a study done by Eric Johnson and Daniel Goldstein4 called “Defaults and Donation Decisions.”Johnson and Goldstein constructed the graph below which shows the percentage of populations in various European countries that chose to become organ donors.They wanted to know why there was such a drastic difference in participation rates throughout countries that had relatively similar cultures.  Researchers learned that the difference in choice wasn’t because certain countries cared about people more than others, but it was simply how the choice was presented.  They discovered that the countries with the high participation rates decided to become organ donors because the decision to join was practically made for them.  It turns out the major difference between high organ donor participation rates was due to the question on the form at the Department of Motor Vehicles (DMV) when citizens applied for their driver’s license.  On the DMV form for the countries with high participation rates the questions was framed as follows; “Check the box below if you don’t want to participate in the organ donor program.”  And you guessed it, for the countries with the low participation rates the question was asked in a slightly different way; “Check the box below if you want to participate in the organ donor program.”  Dan Ariely surmises that low organ donor participation is not because people are too lazy to pick up their pencil and check the box, but because they are overwhelmed at the thought of deciding on such a question of immense consequences.  Simply put, people would rather not choose at all when the decision is complex.Section III:   Combating Behavioral Enemies to Win the War Against Mr. Market According to an annual study by Dalbar Inc., investor’s returns lagged market averages. For the twenty-year period leading up to 2011, asset allocation fund investors earned 2.56% compared to the S&P 500 return of 9.14%.5 This is a significant cost to our clients and could be the difference in a comfortable retirement or one filled with sleepless nights of worry.So what are the techniques to combating the enemy we call emotional investing?  I will discuss some techniques and strategies that will help advisors develop a training program for their clients so the market’s irrational behavior can be managed successfully and peacefully without leading to all out war on our client’s portfolios.Client Training StrategiesIn order to ensure a successful flying mission, significant time and effort was invested to develop specific, measurable, attainable, relevant, and time bound (SMART) goals.  SMART goals are an absolute must with our clients. Furthermore everything we do for our clients should center on the accomplishment of their stated SMART goals.Another important aspect of pilot training was learning to plan for contingencies or the unexpected.  We were all very proficient at the actual flying of the airplane, in fact it was like second nature to most pilots, nonetheless it was always extremely important to have a plan for contingency operations and to effectively communicate the plan.  Just as with financial planning, contingency planning is crucial to the success of our mission.  Communicating with and educating our clients on the wide range of outcomes, good or bad, is the foundation of a trusting relationship.  Furthermore, our clients need to hear from us that we don’t know exactly what’s going to happen in the markets.  Obviously, we cannot foresee the future.  The good news is that we can predict with confidence how we as investors will react emotionally under severe market stress.  We can take this human behavioral information and develop a defensive strategy to protect us from our own behaviors and we should develop an offensive strategy to take advantage of the behavioral tendencies demonstrated by the stock markets.Weapons Used to Combat Emotional InvestingIn this final section I will discuss seven weapons we can use to defeat the enemy of emotional investing.  Some are what I like to refer to as “embarrassingly simple, but amazingly effective” operations.  As we have seen from the above case studies, we must simplify the seemingly complex for our clients.  Just as with the world of training for aerial combat, things are often very complex and fluid.  However, we as advisors must break down the complex scenarios and help our clients prioritize the actions needed to meet their investment goals in order to hopefully one day achieve true financial peace of mind.The Financial Plan.  Helping our clients understand their current situation and the consequences of continuing their current course is absolutely essential.  Developing and updating a financial plan is one of the most important items to help clients achieve their goals and peace of mind.Develop a Behavioral Investment Policy Statement.  This policy statement can help set expectations and predict investor behavior.  The statement can be used to set asset allocation parameters to operate within.  The operating parameters give the client something to fall back on when they have emotional doubts due to typical stock market volatility.Develop a smart rebalancing strategy.  Charles Rotblut, CFA said it best in his article titled “Portfolio Rebalancing: Diversification, Risk Control and Withdrawals.”6 “Rebalancing reduces a portfolio’s risk by maintaining the benefits of diversification…and providing an alternative to panic in the midst of a bear market.”Develop a rapport with your clients.  There must be trust in order to make it through the gut wrenching volatility that investors will face going forward.  The advisor-client relationship must be a mutually respecting and trusting relationship in order for the client to follow your advice in the heat of the battle.Educate clients about the different sources of financial information.  It’s okay to watch 24-hour cable news shows, but understand that it is also entertainment. As a possible solution, ask clients (and yourself) to read about the financial news in a respectable newspaper or magazine instead of watching it on TV.Educate ourselves and our clients on the brains basic design and understand why we are vulnerable to very strong emotions that make it difficult to discern a wise and reasonable solution to one that was based purely on emotions.  Just as with flying airplanes, there are very few decisions, probably zero, that have to be made right now.Help our clients to remain focused on events and actions that present the biggest risk to achieving their goals.  Most of the time I find that clients, and people in general, are often afraid of the wrong things.  We often fear things that have the least impact on our personal financial lives.ConclusionThe statistics described in this paper4 clearly show that investors make emotional decisions repeatedly and will therefore lose much of the benefit of investing to psychological factors.  I believe we must take into consideration an investor’s emotional state when developing portfolio strategies.  Advisors have to meet the clients where they are emotionally in order to ensure they have the best chance to win the emotional battles ahead.References“Money on Your Mind:  The Brain’s Role in Financial Decision-Making.”   By Doug Lennick, CFP®, with Kathy Jordan, Ph.D.  Journal of Financial Planning April 2010Article from Money Magazine titled, “Wild Markets Are Here To Stay, Argues M.I.T.’s Andrew Lo.  If He’s Right, Buy-And-Hold Investing Will Be Harder To Stick With.”  Interview by Charles P. Wallace.  March 2012Adapted from TED Talk by Dan Ariely December 2008.  http://www.ted.com/talks/dan_ariely_asks_are_we_in_control_of_our_own_decisions.html“Defaults and Donation Decisions” Eric J. Johnson and Daniel G. Goldstein. January 7, 2009Dalbar Inc.  Article titled, “Investors Can Manage Psyche to Capture Alpha. DALBAR Study of Investor Returns Offers Ways to Improve Investor’s Alpha.”  April 1, 2011  http://www.dalbar.com/Portals/dalbar/cache/News/PressReleases/pressrelease040111.pdfAmerican Association of Individual Investors (AAII) article written by Charles Rotblut, CFA.  “Portfolio Rebalancing: Diversification, Risk Control and Withdrawals.”Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this Podcast will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 05/14/2021 and are subject to change at any time due to the changes in market or economic conditions. Excerpt: This week we have been thinking a lot about behavioral finance. We all have behavioral biases, which are defined as irrational beliefs or behaviors that influence our decision-making process. As investors, its important that we understand what these behavioral biases tend to be and how to recognize them. Most importantly, we need to know what we can do as investors to avoid allowing them to drive our decision making. We are calling this post the "Highway to the Financial Danger Zone". ### Flight #6: 737 MAX Update, The Top 5 Government Debt & Inflation Myths Busted! Pilot Money Guys: 737 MAX Update, The Top 5 Government Debt & Inflation Myths Busted!​ In Flight #6 of the Pilot Money Guys, we discuss the return of the Boeing 737 MAX, although it seemed short-lived, and the Top 5 Myths About Government Debt and Inflation. One of the Pilot Money Guys; Rob Eklund has just returned from the Boeing 737 MAX sim and recaps his take on the Boeing 737 Max MCAS training events. Even more exciting is the financial topic for today.  And the most misunderstood financial topic of all time – Government Debt and Inflation! The Pilot Money Guys address the Top 5 Myths About Government Debt and Inflation:  Does the Federal Reserve print money? The crash of the US Dollar is imminent.   The government and Federal Reserve control interest rates.  Due to the recent COVID-19 stimulus packages, inflation is inevitable.   Government spending and debt is the biggest risk to your retirement plan. Finally, what can we all do to hedge against these risks of government debt and inflation specifically? Please spread the word about our podcast.  Like and subscribe to help us get the podcast to more pilots like you. Let us know what you think! We are happy to discuss this topic more with you. Give us a call or shoot an email with your thoughts and questions! – info@leadingedgeplanning.com  Thank you for listening! Charlie MattinglyCharlie@leadingedgeplanning.comIntroduction! [00:00:32] Rob: Hey folks. Welcome to the pilot money guys, podcast, where we aim to bring some light-hearted financial fun to your day.[00:00:39] I’m your host, Rob Eklund. And with me today, we’ve got certified financial planner. Charlie Mattingly. And of course, a financial advisor, Ben Dickinson with us, who’s kind of our econ expert, uh, which is yeah. Important to today’s topic of Government Debt and Inflation.[00:00:52] Charlie: your day to shine, Ben. Uh, it’s[00:00:54] Rob: your day. I’m ready. I’m ready. It’s[00:00:56] Ben: your day. If I know anything about, uh, being an econ grad it’s that you don’t know anything, so[00:01:03] Charlie: yeah.[00:01:03] That’s econ PhD for tomorrow.[00:01:08] Rob: Awesome. Today we’re talking about. The return of the Boeing 737 MAX, which I just went through some training on that. So that’s some pretty cool stuff it’s back flying and then we’re going to get into Government Debt and Inflation. Whoa, very interesting topic, uh, appropriate right now with all the stimulus spending we have going on and we’re going to get into some myths and what we as investors can do about it.[00:01:32] So that’s, that’s the timeline we’ve got here. Um, what do you guys got? You guys got any questions about this Boeing 737 MAX? I’m pretty excited. It’s back flying.[00:01:42] Charlie: I did the trainees different time, man. You sound like you’re smooth.[00:01:47] Rob: Yeah. Oh yeah. I got this new microphone. Thanks. Oh,[00:01:53] Charlie: it’s sponsored by leading edge financial[00:01:54] Rob: planning.[00:01:55] I sound like Martha.[00:01:59] Ben: It’s good. We all, we all sound great. I[00:02:01] Rob: got to say. It’s better to sound good than to look at.[00:02:04] Yeah,[00:02:04] Charlie: I see. Absolutely.[00:02:05] Ben: That’s why this is a podcast. Not a video or a movie,[00:02:10] Rob: right? Right.[00:02:12] Charlie: Absolutely. So, we’ve been told we’ve got all our podcasts. We’ve got, we’ve got what? Four podcasts out now.[00:02:17] We’re like professionals. So no, but we have been told to be nicer to Ben today. Ben is going to be the man and he’s going to be talking to econ. Government debt and inflation myths today. I think we have five, maybe six of them, depending on how, how, how if we get rolled in or not. But first, like you said, Rob man, we’re dying to know. Rob’s Boeing 737 MAX Training [00:02:37] You just did the Boeing 737 MAX training. The Boeing 737 MAX is back online at American it’s back online. It’s a Southwest, several other alarms, of course. Maybe we should start like, Hey, tell us what you did. And then let’s back up and say, how the heck did we get here? This is a fascinating story, actually.[00:02:54] Rob: Yeah, it really is.[00:02:55] And it was a super exciting, I, you know, I’d been off, uh, on extended. Time off for a bit. So going back to retraining, it was a nine-day course overall. And at first, I was like, that’s way too long. And then I got back, and I was like, yeah, that’s actually probably about right. I need to, uh, knock some rust off.[00:03:13] So it was, it was really good, but the Boeing 737 MAX training in particular was just phenomenal. Um, I hate to say how easy it is to fly that aircraft now. Not that it was hard, you know, too terribly hard before, but some of those, um, Systems that they had in place, you know, caused some problems, but now they’ve fixed and put a lot of safety redundancies into that.[00:03:35] So they had us go through a lot of the scenarios and it’s a dream to fly. I got to say, at least in the simulator, I haven’t flown it, uh, for really, but yeah, it was, it was really good training and, uh, super easy in front of to, I,[00:03:50] it’s. Probably the most scrutinized plane maybe ever. And, uh, it, it showed, you know, going through the training and the simulator.[00:04:01] Charlie: So, Rob, I mean, thought was when I was flying, I was like, how can this training not be more than how can it be more than five minutes of stab, trim, cutout, switches cut out.[00:04:13] Um, but evidently it was, and you said it was useful. So can you give us an overview?[00:04:20] Rob: Yeah, a lot of them, you know, just the knowledge that Boeing’s put out, we went through a lot of them. The computer-based training modules on that, and just getting familiar with some of those systems that maybe weren’t explained as much as they could have been in the past.[00:04:34] And then now they’ve also been redesigned. So going through that training was good. Um, obviously did that before going down to the simulator and then getting in the simulator, you know, just getting comfortable with the little nuances that are the Boeing 737 MAX was helpful to just go out there and fly like a normal type, um, flight.[00:04:53] And then go through some of the scenarios of, Hey, what happens when the maneuvering characteristics augmentation system, the  system, you know, goes, goes back and they’ve got the redundancy systems put in with the angle of attack where if it senses, it’s got two of them now, whereas before it just had the one, and if it senses that those disagree, it just shuts off the speed trim system.[00:05:20] Which is what the MCAS system falls under. So, it’ll just be done for the flight and you just fly in. You’re just going to have to trim manually also, you know, you can kick it off really easily with, uh,[00:05:32] Charlie: so whereas before, and you said the redundant system, but before, if it was just the captains, um, indicator.[00:05:41] Which there’s an indicator on the left and, and an indicator on the right. We can talk about this specific, but, but now there’s both of the indicators have to be wrong for that system to kick in. Or they both have to read the same. Yeah. They got to[00:05:55] Rob: be, they got to be within the tolerances, uh, for it to go up to, to Pitt.[00:06:00] And that’s the big thing for those non pilots out there is the aircraft with pitch down, which obviously you don’t want when you’re close to the ground and taken off. And then, you know, that’s when those pilots got overwhelmed and yeah. Ethiopian flights there, um, there was lots of blame to go around, I think on it.[00:06:19] And, uh, you know, definitely pilot training was, it was a factor. I don’t think anyone can deny that also, you know, the design. Was flawed in some ways, which they fixed all that. And now pilots are better trained, and we have memory items for, you know, when they went through it, they didn’t have memory items that your immediate action items, whatever you want to call it, bold for air force guys that you immediately do with, from memory.[00:06:48] And you just do it and its base it’s real basic, right. You basically fly the aircraft and kick off the automation. And that’s what you do. And then if it continues, then you’re going to turn the staff stabilizer, trim, cutoffs, which is you’re going to shut those off so that you cut out anything that’s going on.[00:07:08] And if that still doesn’t work, which yeah. Uh, you know, I can’t, I don’t know what the statistics are, but that’s got to be in the, you know, a very, very, very small percentage. Then you just grab the, the, uh, the trim wheel itself, which isn’t that hard to do. And fly, fly the aircraft. That’s the[00:07:25] Charlie: first thing.[00:07:27] Yeah, that was one, one thing that got missed. Of course. And again, that happens in a lot of accidents, not just this one is that we forget to fly the airplane when things get crazy. But for those folks out there listening that that are not pilots or that, you know, this was a while ago. Now it seems like forever ago with all that’s happened in between, but basically an October 29, 2018, we had the lion air six, six one zero flight out of Jakarta Indonesia.[00:07:53] Crash. That was the first one. And then, you know, when that happened, I remember, um, a pilot error, of course, you know, about training, whatever inexperience, maybe, you know, just the typical quarterback in there, Rob, that you talked about that we shouldn’t do. Yeah. And[00:08:07] Rob: just to jump in there, Charlie,  I believe that was the one where it had actually flown did the flight right prior to the, to the crash was flown.[00:08:18] And they had a jump seat or they kind of helped them out and show them what to do and they wrote it up. But you know, it didn’t, didn’t get fixed obviously. And the next crew didn’t handle it as well. Yeah.[00:08:28] Charlie: So, the then we have had that one and then, and, uh, just a few months later, March 2019, Ethiopian airlines crashed at Boeing 737 MAX[00:08:38] And I’ll never forget when that happened. I walked in the kitchen and my, my wife said, Hey, another Boeing 737 MAX has crashed. And I said, no, no, that’s that happened in October. You know, that’s already happened. That’s old news. She goes, not a different one. So, I couldn’t believe it. So, when two of them have, you know, when that happens twice, you think, Oh, there’s something more here than just simple pilot error.[00:08:59] But, uh, you know, um, there’s tons of issues.  There were some pilot training things. There there’s some conflict of interest, you know, Boeing is trying to sell airplanes to a country, um, where their training program is, let’s say substandard.[00:09:17] And so they want to try to sell airplanes, but, but, uh, they also want to try to help them train. So there’s a lot of complex there. They’re trying to develop an airplane to keep up with the, the Airbus Neo. Remember the Neo came out. So then, uh, yeah. Boeing customers, meaning Southwest American, whoever else has the Boeing 737 MAX, I can’t remember.[00:09:37] United does basically said we want a competitor to that, and we don’t want it to be different. We don’t want a new type rating. We don’t want new training. We don’t want new Sims. So, Boeing goes back to the drawing board and says, all right, we’ve got this Boeing 737 MAX, bigger engines, more efficiencies, but there was a problem with that.[00:10:00] So the problem is. That the stall characteristics were different, different than the standard Boeing 737 MAX. So, this is a problem where while install, characteristics are different than we might have to have different training, different type rating, different airplane altogether, and that cost money for everyone.[00:10:19] So then the Boeing engineers came up with the M Cass to mimic the stall characteristics on the standard Boeing 737. So, but it was so. Um, you know, supposed to be so benign that they didn’t put it in the regulations, they didn’t talk about it. We didn’t train to it. We didn’t even know about it, but, but you know, one of the things Rob, I remember when those things happened was I was like, gosh, the, the flight regime that you have to be in for that system to, to start is first of all, some, a regime that will never be in an airplane at an, in an airline, or I should say clearly it kicked on because of what you said earlier in that, that captain’s AOA indicator was.[00:11:00] Malfunctioning and it was not redundant. So, it kicked on when they were not in that regime of flight and that’s where the troubles began. So, it’s fascinating. All these different factors come together. Rob, you’ve got a cultural factor. You got a training pilot training; you’ve got pilot error. You’ve got, you know, some, some bad, let’s just face it, bad leadership at Boeing.[00:11:21] You know, I think that was pretty well known that there was not good leadership at that time at the leadership has changed since then. Uh, obviously, so those are all those things came in to make that situation possible. Uh, unfortunately it’s terribly[00:11:36] Rob: tragic.[00:11:37] Charlie: So just to summarize this discussion, the training, I mean, again, I’m trying to re I’m trying to think about you’re in the SIM, uh, SIM instructor says here’s the M cast failure, the nose pitches down.[00:11:51] You maintain aircraft control you, I guess you turn off the autopilot, even though it works without the autopilot, right. That was one of the conditions. So, you turn off the autopilot anyway, cause that’s what we always do. And you reach down, and you touch, you flipped the stab trim, cutout, switches to cut out.[00:12:06] And then what do you do? What do you do with the other two hours of SIM time?[00:12:12] Rob: Oh yeah. Well, you, you practice that air speed unreliable, you know, I guess there’s different. There’s some different, uh, emergencies that they throw at you. Airspeed unreliable obviously is one of the things here I’ll get your attention.[00:12:25] Um, so all, you know, I guess I was talking more about running a runaway stabilizer when I was talking about how to handle that. Yeah. Which, you know, the M cast kind of was, so you can kind of throw that in there, but yeah. Yeah, it w it was interesting. It wasn’t a really long scenario by any means it wasn’t nine days of, uh, Boeing 737 MAX training.[00:12:43] That’s for sure. In[00:12:44] Charlie: past nine[00:12:45] Rob: days of no, it was a, um, uh, morning. Um, yeah. For us in addition to the community computer-based training.[00:12:54] Charlie: Well, anyway, fascinating stuff I’ve been, I’m glad it’s back. It’s an amazing airplane. And so,[00:12:58] Rob: and it was a joy. Charlie was, she could get in the same, maybe getting the Simpson diamond for it because you’re going to be like, oh my gosh, this is easy.[00:13:04] We did, you know, go arounds and, and, uh, all kinds of different things. You’re like, oh my gosh, this is. This is really[00:13:11] Charlie: easy. I did get to fly it last year. Is that any different than what it was before? I mean,[00:13:16] Rob: yeah, some of the characteristics are just different because of the, because of that trim that they’ve, they’ve redesigned and, and it is, is pretty easy and it’s nice.[00:13:27] It’s a nice, nice, uh, aircraft to fly. So, I’m excited to actually get out there and fly.[00:13:32] Charlie: Hey, let’s talk about something more exciting.[00:13:37] Rob: What could I segue? Yeah, they say we, Charlie, what could Top 5 Government Debt and Inflation Myths [00:13:40] Charlie: be more exciting than taxes? We could talk about taxes really. And talk. I was dying to talk about Government debt and inflation.[00:13:47] Anybody else? Oh my gosh. Yeah. I have been waiting a[00:13:51] Ben: long time for[00:13:52] Rob: this. Oh, Ben. You’re on deck[00:13:56] Charlie: buddy. We’ve got five government debt and inflation myth. The only change one word in that title, just so as not to completely copy off of. JP Morgan asset management. We’ll give them a lot of credit for this, some of this material, because we’ve been having this discussion.[00:14:12] Yeah, exactly. Copyright laws. Um, we’ve been having these discussions around government debt and inflation since about 2008, if you all remember. Yeah. Ben. Oh yeah. I remember that.[00:14:24] Ben: Were you, were you born[00:14:25] Charlie: here?[00:14:27] Ben: I was born, um,[00:14:29] Charlie: barely,[00:14:31] Rob: this one is a tough, dense topic.  Ben’s the biggest economist we have here. I, I am not an economist, so I’m just going to hit the high level, the low hanging fruit. If you will, that a hundred-thousand-foot view, what is inflation?[00:14:45] The price of a basket of goods and services as it increases that that’s kind of what we’re talking about here. That it’s the whole, the old saying of too many dollars chasing too few goods, two types of cost, push inflation and inflation and demand, pull inflation cost, push Gershwin businesses. You know, they’re, they’re going around long.[00:15:08] Uh, making products and they see that there that the cost to make that product or service rises. So, what do they do? They obviously raise the price. They pass that onto the consumer. And which may be another business. So that has a rippling effect throughout the economy. Uh, the other businesses raised their prices.[00:15:28] The consumer, then who’s working for a company, says, Hey, I want a pay raise to pay for the same and maintain that same standard of living for my family that I had prior to the price increase. Which causes the, the cost of the goods to go up because they’re working to produce some of those goods. And so, as a, uh, do another round of price increase that’s the cost push.[00:15:51] Anything to add on that? I didn’t understand a[00:15:52] Charlie: word you just said bad star.[00:15:56] Rob: You want me to say it again? Say all that again, please. Basically, cost more cost around supply and demand. It’s all about supply and demand Myth #1: The FED Prints Money [00:16:05] Charlie: Government debt and inflation myth. Number one, the fed prints money Ben true or false, false.[00:16:13] Ben: The fed does not print[00:16:15] Charlie: money. What does the fed do? What the heck? Why don’t we, why does somebody say the Fed’s printing money? What does that[00:16:21] Ben: mean? Yeah, I mean, and a little bit of that she’s tongue in cheek. People saying that I think, but, but no, they do not print money. Uh, that would be, uh, the treasury department.[00:16:29] They usually only do that to, to get out the old currency and make new, uh, Place old beat-up dollars. But, um, but no, before I do jump into that though, uh, I did want to just clarify that there’s, there’s two parts of the government that really affect the economy. Uh, the first one’s going to be a fiscal policy.[00:16:44] You’ve probably heard that term before. Um, we saw a lot of that this year. Uh that’s the government. Yeah. Specifically, Congress increasing government spending. Uh, again, we saw that a lot this year, uh, also controlling taxes, increasing, and decreasing taxes. Um, so when you think of fiscal policy, think Congress, um, now if we’re talking monetary policy, that’s the federal reserve.[00:17:05] And so this is where people get a little confused. Yes, they do affect the money supply. But that does not mean they print money. So, they have three real responsibilities. Um, now they can set the reserve requirement for banks.  Um,  they also control , the discount rate and that’s a, the rate that,  big banks,  , will have to pay to get money lint.[00:17:25] From the, uh, from the federal reserve banks. Um, and so, and then the last one, I know Charlie, you’re going to touch on this one here soon,  they also can buy and sell us treasuries and that’s, that’s a lot of what they do. Um, so buying and selling of government bonds,  And government treasuries.[00:17:41] And  that’s a pretty, pretty much an overview of what they do, but they do not  print money. They do affect the money supply. And I just wanted to  make sure,  that was clear that there are two separate,  Parts of the U S government do affect the economy. They work together to some degree.[00:17:55] Um, if you look at Congress, for instance, they’ll set budgets and, taxes, and then the federal reserve would say, okay, how do we stabilize the economy within  these limits here?  And just briefly their three main priorities are maximum employment, stable prices, and moderate long-term interest rates.[00:18:11] So, um, yeah,[00:18:12] Charlie: so, the print money is just a figure of speech. So, what the fed does is they buy and sell us. Treasury is the fed has its own balance sheet.[00:18:21] They’re like a person, a very wealthy person that buys and sells investments. So, when they buy treasuries and sell treasuries that are either injecting money into or out of the economy, this happens regularly. It happens all the time. Even before 2008. And during, and after the federal open market committee meets eight times a year,  and they decide, Hey, is there too much money floating around in the economy?[00:18:46] Is the money supply too much? Or is it too little? And  , if for example, they say, Hey, it’s, there’s too much money and it’s going to cause inflation, the economy is heating up and Rob, like you said, the demand is picking up along with a supply. You have to have both to have inflation by the way.[00:19:01] That’s why when the, when you can dump trillions of dollars into an economy, when there’s COVID the government’s shut down, excuse me, the economy shutdown. You cannot have inflation. There’s no demand. Now you can’t subsequently. So, so basically the federal open market committee says, Hey, we’ve got too much money in the economy.[00:19:19] We need to remove some; the economy is going to overheat. Inflation is going to, is going to increase significantly so they will sell some of their treasuries so that when they sell it, someone else is buying it and they’re removing money from the economy. So  that’s the one of the ways, the other way.[00:19:37]  , they also can control the reserve, uh, federal reserve bank. A reserve supply saying that, right. The reserve requirements, there we go. So, they, therefore they would encourage or discourage banks from loaning money essentially. So that’s another way that they can inject liquidity into the economy.[00:19:59] And the whole goal of that when they inject liquidity into the economy, meaning money is that people take that money, borrow that money at cheap rates probably, and they go do stuff. They build houses, they build factories. Therefore, putting people back to work , get,  unemployment where it’s supposed to be.[00:20:17] And, um, at the same time preventing what they’re really afraid of, which is deflation, right? Deflation is a really scary one because if you have deflation, you’re in a world of hurt. So. That’s my 2 cents on the, on the fed and money print. Yeah, a little, a[00:20:34] Ben: little confusing there, money supply, but uh, not printing money, but yeah, I just wanted to make sure, uh, monetary policy, fiscal policy and, and yet do not print out.[00:20:44] Charlie: Yeah. In the news we’ve got, uh, uh, we’ve got the big infrastructure bill going on, right? The $2 trillion infrastructure bill, uh, the Biden administration that would be. Fiscal, some kind of fiscal injection of money, which takes time. It’s going to take a long time for that to happen. That’s why the fed has much quicker weapons, so to speak.[00:21:03] When it comes to, uh, injecting liquidity into the economy, Rob, would you go?[00:21:08] Rob: Uh, the only thing I was going to mention is we’re talking inflation and just for, uh, folks new to the topic is inflation, but don’t, we always have inflation is inflation bad.[00:21:21]Charlie:  Yeah, you’re right.   They have an inflation goal. I think it’s about 2% right now that might change. Yeah. But they want a little bit of inflation, uh, cause you’re right. Cause it a little bit is healthy.[00:21:32] And again, the one that. Thing that they’re really afraid of is deflation where prices go down over time, which is, which is[00:21:40] Rob: Japan’s the big, uh, uh, warning sign of deflation, right? I think in the eighties, nineties, uh, there were, they had deflation in it. It is interesting and a behavioral, you know, uh, project on itself, but when it gets a hold of, of, uh, society, it gets pretty, pretty interesting to be expecting prices to go down so they don’t go out.[00:22:08] Charlie: There you go. You nailed it. That’s what I was going to say. I mean, can you, and I want a new truck. Ben knows I want a new truck. , if that brand new Silverado that I want was going down in price instead of up, I would certainly wait a while before I bought it.[00:22:24] Cause it’s going down in price. Why would I buy it now? So, can you imagine that kind of behavior on a macro scale? Yeah. And then what’s that you’re not[00:22:32] Rob: going to buy it. What’s that what’s that truck a company going to do to stimulate they lower the price even more. Yeah. It’s a[00:22:41] Charlie: downward[00:22:41] Rob: spiral downward spiral.[00:22:43] Anyway. My whole point with that is a little bit inflation’s good because it gives you. Um, you know, the central banks and the FOMC, the levers to help adjust so that we don’t get deflation.[00:22:55] Ben: Absolutely. Yep. And also, when people are buying products at a lower price, then they’re receiving less income because the prices are now lower.[00:23:04] So it’s a continual spiral. Then you have less purchasing. Purchasing power. You continue to spiral down. So[00:23:11]Charlie:  So that’s this number one Government Debt and inflation myth, the fed and we, we covered a couple more government debt and inflation myths, I think, in, in, uh, in that discussion, which is hard not to do, but government debt and Inflation myth number one, the fed, the fed does not physically  print money. Myth # 2: The Dollar Will Crash [00:23:23] That department of treasury does, uh, government debt and inflation myth number two, the dollar will crash. What the heck? That sounds scary. Has the dollar ever crashed before? Um, anybody know anywhere now has the dollar crashed. Yeah, I think it depends on what you define as a crash of the dollar. If you go Google it. Yeah. The dollar crashed in the eighties when interest rates went sky high, but you know, what is the, what is the, the strict definition it’s going to be hard to find, but basically, we’re not going to spend a ton of time here because  This is a confusing and tough one.[00:23:56] Basically there’s two conditions required. You need underlying weakness and that in the dollar we’re telling us dollar here. You need an underlying weakness in our government. You need an underlying weakness and the economy, and you need a viable alternative people probably thought we had the first two boxes checked there when I was talking, but a viable alternative.[00:24:16] So people think, um, our economy is in bad shape. People think our political system is crazy. Probably those are both true. But in our world, it is whose political system is the least crazy. And whose economy at this moment is the least. Bad.[00:24:37] Rob: That’s a technical term. Those are terms. Yeah. Yeah.[00:24:41] Charlie: Um,[00:24:42] you know, people say, does China own us?[00:24:45] China owns us. They own so much, so much of our treasuries. And, uh, they want our dollar to crash, I guess, maybe as an argument, uh, that’s not true. Uh, China owns right now about $1 trillion in us treasuries, which is a lot, but Japan owns 1.2 trillion in us. Treasuries. Should, you know, if anybody owns us as Japan now, The, the truth of the matter is that both of those countries want a strong dollar.[00:25:11] And   China really wants a strong dollar because they get to sell their goods, they get to export their goods. So, their biggest market in the world, which is the U S. So as long as they have a strong dollar, they’re happy now, if they dumped all those treasures, it would, it would cause the U S to go into a recession.[00:25:28] It would cause a dollar to decline significantly. It would cause problems, but it would cause justice just as many problems for China as it would for the U S so they don’t want that. So that’s, uh, you know, again, uh, the extent of my knowledge there, but it’s, it is dispelling a myth where, Hey, China owns us.[00:25:45] They control us, et cetera, et cetera, this kind of not true.[00:25:50] Ben: And in general, I mean, if you’re trying to crash the currency of a country whose treasuries you own, I mean, that’s just bad business right there as far as I’m concerned.[00:26:00] Charlie: Absolutely.[00:26:01] Rob: That’s a good point. Yeah. Myth #3: The Fed Determines Interest Rates [00:26:03] Charlie: Excellent, Government Debt and Inflation Myth Number three, the government.[00:26:06] Oh, and over the fed had been, this is what you were saying, you know, fiscal or monetary policy, the fed determines interest rates. The government or the fed determines interest rates, myth number three. So, this is kind of true and kind of false, whereas yeah, the fed can set short-term interest rates called the fed funds rate.[00:26:23] And so they tell the other federal banks what interest to loan money at  and that happens in the short term. However, uh, there are other types of interest rates out there. That the fed does not have control over, and they certainly do not have control over the long-term interest rates that is much more of a supply and demand situation.[00:26:43]Rob:  ,[00:26:43] that’s just one of those levers that we were talking about earlier. It’s exactly those levers that they control  , but they have more ways to affect the. Uh, economy and inflation than they used to, you know, in decades past.[00:26:59] Is that a true statement? Ben[00:27:01] Ben: certainly, seem to act quicker. Um, and they. Maybe use the precedent set in 2008, but I don’t know about[00:27:09] Charlie: new[00:27:09] Rob: tools, this one in particular, but I think they have more ways to, I think they’re more willing. Yeah. Or maybe more willing. Yeah, that[00:27:17] Charlie: might be, yeah. Uh, the great depression was an example of where the government did not step in, didn’t do anything.[00:27:23] And some people would argue. In fact, Ben Bernanke was his, uh, his thesis. His specialty was the great depression, just so happens that he was the. , the  fed chair in, the great recession 2008. So, if there was anybody in the world, that was a perfect person for that job, it was probably him. So, but that was, you know, since then that was an experiment.[00:27:44] We didn’t know what was going to happen. So maybe Rob, the answer is they’re more willing to pull these lovers than they used to be. Yeah,[00:27:52] Ben: I would agree with definitely willing, but also, I would argue, expecting, did, uh, to step in and pull those levers. , like you said, in 2008, they came in and helped to minimize that recession.[00:28:04], and now you’re expected as a politician, especially, you’ve got a lot of pressure you want. Yeah. The economy to be as strong as possible. So, you’re going to want to go in and act. , we obviously saw that a lot this year. , and then also I think you’ve got expectations from the people from, from our citizens, , that, Hey, last time they came in and helped out, they helped save my job.[00:28:24] So this time you better do that exact same thing. , we’re in the past, they may have been a little bit more hands-off and let the recession[00:28:31] Charlie: do its course. So, we’ve got three myths out of the way. Myth number one fed actually prints money. False dollar will crash. Well, what does a crash mean as it happened before? Myth #4: Inflation is Inevitable [00:28:40] Yeah, it could happen again. Maybe China does not want it though. Uh, Government Debt and Inflation myth number three, the government fed determined interest rates kind of. Yes. And the short-term kind of knowing the long term back to supply and demand there. Government Debt and Inflation Myth number floor, four ,not floor before inflation is inevitable. You know, where you’ve injected all this money into the economy.[00:29:01] We just had. Was that our second stimulus or third, I can’t even keep track anymore. These one you’re talking about. Yeah. These numbers are insane. So we just dumped another 2 trillion, uh, handed out checks and, and whatnot. So clearly inflation is inevitable. Is that  true or false.[00:29:22] Ben: Well, we’ll see.[00:29:27] Charlie: inevitable. It is absolutely not inevitable.[00:29:29] Ben: Yeah. And,  Charlie,   we’re looking right now at a lot of, uh, supply chain issues. These supply chains have been crushed during. Yeah. COVID uh, for instance, lumber prices, VC, how expensive lumber is, will. A lot of that has to do with the fact that there’s not much lumber out there.[00:29:45] Um, those lumberyards in Canada for instance, have been shut down. So, so we’re not seeing a lot of that, but that is not necessarily the backout of inflation. That’s more on the supply side, which does seem to be temporary. Yeah. Uh, and yeah,[00:29:58] Charlie: and again, we go back to the definition of inflation. You’ve got to have.[00:30:01] You’ve got to have a supply and demand subsequent demand with that supply. So, they’re just trying to prime the pump, so to speak, of demand. When the demand picks up, you’ll see prices rise. We’ve seen prices of fuel come up. We’ve seen prices of food come up and we could certainly have a short-term S uh, I don’t even want to use the word spike.[00:30:21] We could have a short-term increase. We probably will have a short-term increase in inflation, but the[00:30:25] Rob: longer the Suez Canal getting did you block that big shortage? Ben supply chain shortages. That disruption be[00:30:35] Charlie: helpful. That’s right. So, you know, the lows are, but those are short term short term.[00:30:41] And in most people would say, uh, experts, expert economists will say that the long-term outlook for inflation has not changed. And the outlook for inflation long-term is more dictated by believe it or not demographics, the aging population. You know, each country has different demographics. Japan is a great example.[00:31:01] They have an aging population, they have a very little, or a lot fewer natural resources and economic capability than the us has. So, they have less demand for money. So, they have no inflation. In fact, they’ve had deflation. So those things determine long-term, uh, Inflation and technology is a great example.[00:31:25] Look at what technology does to prices. You know, can you go buy something on Facebook marketplace, pretty cheap. I mean, do that, that holds prices down, you know, Craig’s list and all these online dealers. I mean, my, uh, my teenage daughter is selling clothes out of her closet on these online dealers. I mean that, those little things and that behavior on a macro level holds prices down, which is  anti-inflammatory[00:31:51] Rob: just the thought here, or I’m going to inject my own thought on this. Charlie too, is we’re talking about it. Yeah.  and it’s not necessarily a little bit of inflation is what we want, or at least the fed wants too much inflation. You don’t want hyperinflation. That’s the scary part.[00:32:07] That’s when it’s bad, it gets to the seventies and eighties. Talking to my dad. And he was telling me how you know that the gas shortage, um, Charlie, you probably remember those actually. Uh, but uh, you, you know, you had to wait in line for gas and they would fill their car up and get the, get a, get a gas can, which apparently was pretty hard to get in those times, but they got one, they put it in their trunk and then later on, they found out, well, the fumes could kill you.[00:32:32] Or if somebody hits you in the back, that could explode. So that’s probably not the best answer, but he still did it just so he could get, you know, get home to, uh, to me, I guess there you go. Pretty, pretty scary stuff, but a little bit of inflation and you know, isn’t terrible when you think about some things, right?[00:32:52] If you’re a worker and inflation is happening, you’re going to get a pay raise. And if you bought a house in locked in a locked in a rate 30-year fixed rate loan, say you got it in 2020 for 2.7, 5% or something like that. Inflation occurs over the next few years. You’re still paying that same rate, but you, your wages have increased.[00:33:10] So not everything’s terrible with inflation.[00:33:15] Charlie: Yeah, you’re right. Yeah, you’re right. I mean, it’s hard to have inflation if you don’t have wage increases. You know, we, we, uh, from 2008, till 2019 people said, well, where’s the inflation then? Well, we didn’t have a whole lot of wage increases until. Way down, you know, after the great recession 2008.[00:33:36] So that was one in vocational that nobody can afford to raise prices because nobody can, nobody’s getting a raise, you know, it took a long time for that to happen.[00:33:47] Rob: Yeah. The last few decades we’ve had very little inflation. Uh, so yeah. Interesting. Yeah. Yeah.[00:33:55] Ben: And I think every year people have predicted that we would see.[00:34:01] Potential hyperinflation over the last 10 years. I, I definitely have seen that on a lot of different articles and videos. And[00:34:09] Rob: I believe in terms of inflation are not as smart as they think. Yes. And inflation monitoring[00:34:16] Charlie: the inflation monitor. Yeah. There are studies done that show that if you are overly pessimistic on any topic, you appear to be smarter.[00:34:23] Just want to throw that out there. Optimist to not appear to be very smart at all. So[00:34:29] Ben: next podcast, hyperinflation coming. Now[00:34:36] Rob: that’s a fact. A half empty. Sorry. Myth #5: The Biggest Risk to Investors is Government Debt [00:34:40] Charlie: So, Government Debt and Inflation myth number five, we are number five already. So, this will be our last one. I know I’ve got six Government Debt and Inflation here. I think I’m missing numbered or something. I got confused, but I guess risk place, you will do[00:34:49] Rob: that to you right there.[00:34:51] Charlie: The biggest risk investors is the government debt. The biggest risk to investors is government debt. What do y’all think about that one?[00:34:59] Rob: Oh that[00:35:00] Ben: one’s yeah, we increased it a little bit this year. Yeah. It just depends on which economist you ask as we’ve learned at the beginning. Not always do they agree.[00:35:10] Charlie: That’s so, no, no, it’s not the biggest risk to investors.[00:35:14] Uh, it is a risk and it’s not good. In fact,   current debt to GDP is a hundred percent. Uh, that’s the highest since world war II, 108% in 1946. But we’re continuing to rise. I mean, we’re not showing signs of slowing down on that one, so that’s going to go up.  And the most important thing about the government debt level is the cost of servicing that debt.[00:35:36] , , let’s say you’re an individual and you’re paying interest on your credit card. Well, that takes the place of buying a new car. You know, if I got to a huge interest payment that I’m paying on my house or my credit card, Well, that just means I can’t do other things.[00:35:50] And that applies to the U S government too. If the, if the interest payment on the government debt becomes so large, that it squeezes out other projects that they want to do, then that’s when it becomes a problem. So, at some point interest rates will rise and government debt and inflation will have to be tackled through spending cuts and or tax increases.[00:36:12] Right? Yeah.[00:36:14] Rob: And I think a lot of the countries. In the world are in the same boat. They don’t want it. They don’t want, they’ve got government debt as well. And they don’t want to see their interest rates go up right now either. Yeah.[00:36:24] Charlie: Yeah. That’s right. Okay. So, you know, that’s the, that’s the risk, the risk is that it damages long-term growth,  , and it hurts the economy of your country.[00:36:34] So that’s the risk now to us, what’s the risk.   we just said it to us as the damages, our economy, that’s not good for us either. However, . We as investors, I think this becomes a distraction. I’ll be honest with you. I think it’s a big deal. We need to, you know, the thing we can do about it as a vote,  , vote with your values and go out there and do what you think you need to do.[00:36:58] But as, as an individual investor, you know, we cannot be afraid of the next big recession, the next big,  , government debt crisis. We have to do. What we would do for our own business, and that is spend less than we make, save our money, invest wisely. Um, and there are certain investments we can utilize to help us with inflation, which is the result of some of this stuff.[00:37:21] What, what do you all think about that types of investments? Yeah, How Can we Prepare for Inflation as Investors? [00:37:25] Rob: I was thinking, you know, as we go through this and whether inflation happens, or it doesn’t. You know, that’s up for debate, big brains, big, big economic brains, economists disagree about this. So, we don’t know, here are some of the facts that we talked about, and then this is maybe the, well, not, maybe this is the most important part of this podcast is what is you as an investor going to do about it.[00:37:52] And so we start thinking about what you’re going to invest in. Some things that people talk about right off the bat are gold. It is actually not the best protection against inflation at this point. Um, one thing that a lot of people are, are looking to is real estate and real material goods. So, uh, the real estate investment trusts you can get in on those and get on real, real, uh, real estate, if you will.[00:38:21] Uh, equities,  , as well as you know, those companies we were talking about when they write raise prices on those goods, uh, they inflate, well, that means they’re getting more money. So, their stock price also increases. So, it’s a pretty good, uh, holder of money when inflation happens as well.[00:38:39] And then the last one that I would throw out there. Is, uh, tips. Yeah.[00:38:44] Charlie: Which tips is given treasury inflation protected securities. So those are good if you’re nearer to retirement and   tips are a good, they’re a good diversifier for the bond portion of your portfolio.[00:38:56] , and all of us, regardless of what stage of our lives, we’re in retirement, pre-retirement, we’re going to have equities. We need to have equities. That is the number one way to outpace inflation. You know, that’s why, that’s the only reason why a retiree would have equities, why would you even bother with them at all? .[00:39:13] So again, even somebody that’s in retirement is going to have some equity so that they can continue to outpace inflation. And of course, like you said, Rob tips are REITs real estate investment trusts are great ways to do that. Um, you’ll see, uh, if you Google it, you’ll see gold. You’ll see commodities.[00:39:29] However. You’re going to have some of those holdings within your regular equity. You know, if you’re properly diversified, you’re going to own some of those materials. You’re going to own some of those things. And, and again, like you said, all, all of the equities normally are great, uh, protectors of inflation.[00:39:44] So that’s why you have to have a diversified portfolio globally. You know what if our dollar crashes, while you own global, you know, companies all over the world. So, uh, that is another protector for some of these things we’re talking about. And[00:39:56] Rob: that’s a, that’s a great point. Cause we were talking about this a little bit for, we can’t have a podcast without talking about Bitcoin, right?[00:40:03] Similar to those REITs and commodities and, and those kinds of things where you, if you own an S and P or an index fund, those companies are going to have those types of holdings within their company. Th some of the companies now are also, they have, they own Bitcoin or at least they’re accepting Bitcoin like Tesla.[00:40:19] So you do have some exposure. I’ll just throw it out there. Yeah. You’re right.[00:40:24] Charlie: Obligatory a Bitcoin, a[00:40:25] Rob: plug. Yup. Uh, mandated to do that. That’s right. That’s right.[00:40:29] Charlie: Uh, so anyway, uh, that’s, that’s the last of the myths. So hopefully we did some myth busting today, financial myth busting, or at least a different perspective.[00:40:40]Rob:[00:40:40] All right. Anything you want to add, Ben? No, I think we covered it all. I think we did. What else do you want to know about Government Debt and Inflation? What else you want to know about the Boeing 737 MAX?[00:40:49] . All[00:40:49] Charlie: right.[00:40:50]Rob:  . I’m going to leave you with the top gun quote, as opposed to a financial coach, although it could be used as a financial quote as well. And that comes from Viper. A good pilot is compelled to evaluate what’s happened so he can apply what he’s learned.[00:41:07] That’s all I got. Thanks for joining us for a discussion on government debt and inflation on THE PILOT MONEY GUYS PODCAST, if you have any questions, shoot me an email. Robert leading edge planning.com. If you liked what you heard hit that subscribe button. Remember, as Emerson said, the world makes way for those who know where they’re going. So, plan accordingly routing here.  Excerpt: Pilot Money Guys discuss the return of the 737 Max, although it seemed short-lived, and the Top 5 Myths About Government Debt and Inflation. ### Flight #5: Pilot Proof Bitcoin and Crypto Investing Pilot Money Guys: Pilot Proof Bitcoin and Crypto Investing "It's everything you don't understand about money combined with everything you don't understand about computers."  ~John Oliver, Host of the HBO series Last Week Tonight with John Oliver.    On the other hand... [Cryptocurrencies] may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system. ~Ben Bernanke Welcome aboard Flight #5 with the Pilot Money Guys as they provide a pilot-proof Bitcoin and Crypto Investing...shared mental model!In this pilot money guys episode we take on the topic of Bitcoin and Crypto Investing. Our token millennial and office wonderboy Ben, faces off with Charlie and Rob. Will he convince them to get rid of US Dollars and join the Crypto Revolution?The Pilot Money Guys attempt to shed some light on how to think about investing in Cryptocurrencies.  What the heck is Cryptocurrency? Should you consider Bitcoin and Crypto Investing or buying Dogecoin and what to expect if you take the plunge and invest.  Hint:  Don't invest any monies you can't afford to lose!We hope you enjoy our discussion. Please subscribe, share this podcast with friends, and let us know what topics you would like us to cover next! Flight 5: Pilot Proof Bitcoin and Crypto InvestingHey folks. Welcome to the pilot money guys, podcast. We're talking some flying stuff and we aim to bring you some lighthearted, financial fun. Our topic today on the financial side is Bitcoin and Crypto Investing. So we're pretty excited about this. I'm your host. Finally, we get to talk a Bitcoin. It has been hounding me for years on this.[00:00:51]Ben: [00:00:51] That's my generation. I like this.[00:00:54] Rob: [00:00:54] Ben Dickinson at the helm. All right. I'm your host, Rob, back then we got the core certified financial planner, Charlie Mattingly, and I already introduced our millennial advisor. Ben Dickinson. First before we get to the Bitcoin. Sorry to delay it a little bit, but a little cliffhanger for you.[00:01:14] We're going to talk a little bit. Radiation news, Charlie, what do you got on aviation news this week, man? You[00:01:19] Charlie: [00:01:19] know, it seems like there's good news. I seem there's good things going on in the world of aviation airlines, especially. So therefore there's not that much news, that's not fun to report good news and maybe I'm being too positive, but the one thing that That stuck out to us after we bragged on the news seven 37 max, a couple of weeks ago, they grounded some Holy cow.[00:01:42] So are they grounded? What 60 of them? I think I read for an electrical problem. I'm not sure, anything that, that happens to the max now is going to be reported and it's going to be big news. So I don't really know. It's hard to tell from my end, Rob if[00:01:56] Rob: [00:01:56] it's serious, right? Yeah. They talked about fasteners and it was just part of the fleet.[00:02:00] So not all of them. But it was a grounding problem with the fasteners that they chose. So rather than rivets, they use fasteners that didn't ground properly. And I, wow. It sounds to me like they just got to go back in and put the rivets that are grounding and hopefully that'll be it. It's the rivets[00:02:16] Ben: [00:02:16] that plane can not catch a break.[00:02:18] I know.[00:02:19] Charlie: [00:02:19] No kidding. Oh man. I saw two other note news Delta said they're going to be profitable by the end of the year. Squeak. That's amazing, even though they're not going to get back, they know they're not going to get back there. They're global business traveler for a while that we're still away a ways away from that.[00:02:36] But but there's been some significant domestic, good flying news. All the captains at Southwest airlines have been recalled all of them from the temporary leaves. Now there's still about 500 FO's out there. As of now that are. That are hanging on to the free money as long as they can.[00:02:51] Rob: [00:02:51] Yeah. Yeah. Oh, that's exciting. I heard that a United starting hiring again and SkyWest is hiring as well, edible.[00:03:00]Charlie: [00:03:00] Good. I'm glad for our young pilots out there that spent their 200 grand on their college degrees with their flying certifications and now they can go get jobs against him. I thought it was going to be longer for those folks.[00:03:11] Quite honestly.[00:03:13] Ben: [00:03:13] Soon enough. There'll be a little pilot shortage out there. Another one. Yeah.[00:03:16] Rob: [00:03:16] Yeah. It's probably right around the corner. Yeah.[00:03:19] Charlie: [00:03:19] Right back to where we started a couple of years ago until COVID 21 hits.[00:03:22] Rob: [00:03:22] Yeah. Oh, I was pretty excited this last week. I flew into a Houston Intercontinental, George Bush Intercontinental first time flying in there.[00:03:29] It was pretty cool. They treated us right to, it was[00:03:32] Charlie: [00:03:32] pretty big time now. Big time. Cool. Let her bound, I don't know of any other airline stuff. I can't think of anything. Interesting. Anyway, other than playing seem like they're full Rob, you would know better than I, but it sounds like planes are.[00:03:46] Rob: [00:03:46] Yeah. I It's getting back to, going through walking through the airport, it seems pretty darn fool. Oh, they in Denver. I do have to mention this because it was pretty awesome. I D I don't have the credit card, but I'm thinking about getting it. The Centurion club came to the Southwest side of things.[00:03:59]Terminal C there and it is nice. It's really, what does that mean? I don't know what you're talking about. The club for certain card holders, like the special clubs for special people, and they go out and have drinks and all that kind of stuff. Wow. It's pretty nice. Check it out.[00:04:14] Yeah, I think it's on the high side, the, towards the forties, if you ever get out there.[00:04:18]Charlie: [00:04:18] I got to admit,  I now have an Allegiant credit card. Oh, I have an allegiance. What? Southwest doesn't fly into Knoxville. Southwest is not flying to Knoxville. I've got an Allegiant credit card. So I'm going in all illusion.[00:04:31] That's our free commercial for today. Allegiance.[00:04:33]Rob: [00:04:33] Awesome. That's good. I'm glad we don't have that much. Airline news because really I want to get into Bitcoin. Anyways, Dan and I are chomping at the Bitcoin to get in this. I get it. My wife keeps calling it Bitcoin. So[00:04:50] I'm like, Oh my gosh, I'm a prescient there. Before you get in, let me just give a disclaimer here. Yeah, I know you guys probably already guessed this, but we're not Bitcoin experts. We're going to apologize up front if we misuse any of the terms, because there's so many, it's so fascinating and complex that the terminology out there is, it is a lexicon of its own, for sure.[00:05:12]If we make a mistake. Please shoot us an email and we'll try to correct it in the show notes or rerecord or whatever we have to do. For all the Bitcoiners out there, we know this is a passionate subject. We're going, gonna try to give it the due to due regard that it,[00:05:28] Charlie: [00:05:28] the good news is we're just as expert as anybody else.[00:05:33] Rob: [00:05:33] That's why we can talk about Ilan pretty much the same. That's[00:05:38] Charlie: [00:05:38] right. Nobody knows anything.[00:05:41] Rob: [00:05:41] Oh my God. Obviously what we're talking about is, does not constitute advice. And as meant for informational purposes only. That's all I got. Ben kick us off. This is fascinating. I'm really excited to get into it.[00:05:52] Mainly[00:05:53] Charlie: [00:05:53] entertainment purposes. Not even informational it's I gotta be careful. It's hard. It is fascinating. Sorry. I'm going to be the old guy in the room today, though. Everything you guys say today, I'm going to distract you say today. No,[00:06:04] Rob: [00:06:04] you're wrong today. You're going to be the old guy in the room.[00:06:07] Oh, you're not[00:06:11] Ben: [00:06:11] deal. Y'all are both the old guys to hear him, according to me.[00:06:15] Charlie: [00:06:15] Ben, what the heck is Bitcoin and Crypto Investing and why are[00:06:18] Ben: [00:06:18] you investing? Yeah. Yeah, no, that's a great question. And what is Bitcoin is probably the biggest and probably the hardest question to answer for almost anyone including myself, but I'll give it, I'll give a little bit of a history on the Bitcoin.[00:06:31] So Bitcoin. It was founded in 2008. It was based on a paper written by what is believed to be a group of people going under the name of S Toshi Nakamoto.   It is a open decentralized ledger system that is able to record and verify transactions. And they use that by creating this currency called Bitcoin.[00:06:54] And that's what they use to transact on this open ledger. The big difference between regular money and Bitcoin and Crypto Investing is the fact that it is decentralized, meaning that no one person controls the Bitcoin ledger system. There's no way to manipulate it in any way. As far as we know at the banks. No banks, no, no middleman.[00:07:16] It's there, there are people around the country that mine Bitcoin, and what that really is basically just using computing power and running different programs to basically verify these different transactions on the blockchain. And that's another. Term, you probably hear thrown around a[00:07:32] Charlie: [00:07:32] lot.[00:07:32] Yeah. Yeah. Ben, let me stop you there for a second before you get going too far, because the definition you gave mainly was the blockchain. You talked about an open ledger that is blockchain. And so that, it's interesting to me. And again, I'm going to be the biggest critic on the show today. I'm just get off my lawn.[00:07:50] Cause I don't get it. I don't get it. But anyway, I'm working, I'm having an open mind, but just to clarify. You talked about the open ledger that's blockchain. Yeah. And actually that to me is the most appealing thing of this whole deal. Yeah. There's tons of opportunity for that and in all kinds of different industries.[00:08:08]So it, it's interesting and And I'll read one as well. Just just to clarify this stuff at cryptocurrencies are a form of code made back computers and stored in a digital wallet in the case of Bitcoin. So now we're differentiating, Bitcoin in the blockchain, there is a finite supply of 21 million of which more than 18.5 million are in circulation transactions are recorded on the, again, Ben, you referenced that public ledger called blockchain.[00:08:34] Yeah. So[00:08:35] Rob: [00:08:35] that's Oh, black ledger. That's crazy.[00:08:39]Ben: [00:08:39] So one of the things about that is basically it's just like any ledger, it's a recording of the transactions. Hey, a Bitcoin transferred from bins. It doesn't say your name, but Ben tan and to Charlie, it would say, or, and then from Charlie to Rob and then from X to Y and all these different, that's basically what it is.[00:08:56] And then the blocks it's verified in these blocks of transactions. Like a list of maybe I don't actually know the number, but let's say five transactions in a block. Those get verified on the blockchain with the mining side of things, and that's what kind of keeps the ledger accurate and verifies that everything is accurate.[00:09:16] And that's that's done by people using millions of mining computers across the country in the world. And[00:09:22] Rob: [00:09:22] anyway, that is really fascinating because those mining computers, my nerd hat comes on for sure. And I guess they're solving. Difficult math problems is how they're doing this blockchaining and mining of the Bitcoin.[00:09:37] Yeah. Yeah.[00:09:39] Ben: [00:09:39] Great. Essentially from my understanding too, it's even almost more of a you just have to test these different numbers one at a time to find an output that verifies the transactions. And the only way to do that is to basically just plug and play different numbers, test out, one to it's 260 billion or trillion possibilities of these numbers. And you're just less like plug and play, trying to verify this. And when you do, and this is the incentive for those miners out there, when you do verify a block of transaction, that it is accurate and correct, then you are rewarded with Bitcoin as a reward.[00:10:15] And. And that number of Bitcoin that you get rewarded with is cut each every couple of years it gets cut down. And basically that limits the number of Bitcoin outstanding too. I think it's about 26 million out there.[00:10:29] Charlie: [00:10:29] 21 million. What do you want in there at nights with the financing plan?[00:10:33] Rob: [00:10:33] So there's only a million ish.[00:10:35] Left to mine[00:10:37] Charlie: [00:10:37] of which 20% has been permanently lost.[00:10:40] Rob: [00:10:40] Wow. That's crazy. Yeah. Which obviously[00:10:45] Charlie: [00:10:45] don't lose[00:10:45] Ben: [00:10:45] your password for those people who lost hundreds of millions of dollars for losing their password. I, I just,[00:10:51] Charlie: [00:10:51] yeah, it's gotta be a day. And again, I'm trying to understand that.[00:10:53] So I,  don't get the mining thing. Okay. But let's put that aside for a second because that's just as crazy talk. But as an investor, What do I do to get into Bitcoin and Crypto Investing? Do I buy and Rob, you just did this. Ben, you've done it. I've not dipped my toes in the water yet. And we'll talk about why in a minute, but I can buy Bitcoin directly, I think maybe through a trust of some sort.[00:11:14] And now[00:11:15] Rob: [00:11:15] it's an exchange. Charlie, you go through an exchange. Coinbase just came public Coinbase is an exchange that you can go buy Bitcoin, but you can't spend it there.[00:11:28] Charlie: [00:11:28] Yeah, but then you and what I was gonna say was you, if not at this very moment, but in the very near future, we'll be able to buy Bitcoin through an ETF, which I think is more understandable to people.[00:11:40] So you've got different avenues of purchasing right now, which has maybe some pros and cons, but what is it? And you all tell me, what is it that we think we're investing in?[00:11:50] Rob: [00:11:50] So I go, this is very philosophical. Question. I don't know that we can answer. You're going to have to get to some of the more passionate folks, it could potentially be a currency that you don't have to pay a bank governments don't control.[00:12:06] So you can go out there and buy all kinds of things with it, which is what got Bitcoin in trouble in the first place, which is. I don't know if you've heard the story of the silk road or not. Ben, have you heard of that? Yeah.[00:12:17] Ben: [00:12:17] Yep. Here did the hair to the that's[00:12:18] Rob: [00:12:18] on the dark web scary stuff. It was like, the the criminal element, the drug element, they were using Bitcoin, obviously, because it couldn't be tracked very easily by the government.[00:12:28] So they were out there doing the illegal behavior with it and they got out. Yeah, the FBI got them, but when was, it was funny about it. W from what I heard. The FBI caught them since the guy or Robert old brick. I think I said that, maybe a 26 year old dude from Texas, right? Yup. Yup. Send him to jail.[00:12:46] But then the Bitcoin that was out there that they seized, some of the police officers tried to then sell, but because it's an open ledger. They were able to track. And one of the investigators found out these guys were trying to sell the Bitcoin and arrests to them.[00:13:03] Ben: [00:13:03] Oh,[00:13:04] Rob: [00:13:04] I didn't know that it is fascinating.[00:13:07] Yeah. Yeah. It, is it getting back the Nakamoto you're asking back to your question, Charlie, about what it is. Yeah. It's a type of currency that can go above banks, but some people think of it  like a high-tech startup stock that just holds value. Yeah similar to gold, which is weird if you're talking about startup tech companies and gold, but also it's a currency of exchange. It's obviously a lot easier to use than gold. So that's what you would be buying. For instance,[00:13:36] Charlie: [00:13:36] that's the interesting part. Oh, I'm sorry, Rob, go ahead. I was just going to say, the interesting part is, and the reason I ask that question, which is an unanswerable question is because.[00:13:44] Nobody knows what they're buying when they buy everybody has a different opinion. Somebody will say, I'm buying it as an inflation hedge. Why is it an inflation hedge? Because it's a limited supply. Maybe not, it's a very volatile asset. This is a old guy, had, is coming on right now.[00:13:58] And I'm just being a little testy, it's a very volatile asset, so  what's going to happen and when we go through a recession are people going to flock to Bitcoin? Our is it going to keep up with inflation? Obviously it has the last few years if it's a gold substitute, gold has barely kept up with inflation.[00:14:12]So in other words, if I buy a Bitcoin, should I expect when times get tough to people to flock to Bitcoin or away from Bitcoin? If I have a, we have a recession from increased inflation and people run away from Bitcoin. It's not going to be, keep up with him. It's not going to be an inflation hedge.[00:14:31]Rob: [00:14:31] I can answer that. That's been tested a little bit already, Charlie. So back in 2013, if you remember the Cyprus crisis where they basically went in, the EU said, Hey the Cypress was over leveraged and got themselves into some troubles. And they use that. The only way we bail you out is if you give us this kind of, This money, which they seized from their people.[00:14:52] And I think this might be not exactly correct, but anything over about a hundred thousand dollars, they seized 50% of it. And most of those folks were rushing. And, a ton of wealth was just gone that the government stole an EU government, it could be said stole or at least taxed, or however you want to say that.[00:15:09] So right after that happened, Bitcoin jumped in value because people were like, Oh, if I can invest in Bitcoin and the government, can't go take half of it. That's where the value in, in some people's mind, that's a huge value. It's something that the government can't go in there and grab. Now that's obviously.[00:15:29] With today's regulations. One of the biggest risks that I think we're going to talk about is that's a risk to Bitcoin is the government regulation. That's a huge risk. Yeah.[00:15:40] Charlie: [00:15:40] Yeah. And, it's, to me, it's it's decentralized. Is that good? Or is that bad? Because in the end, the V the Fiat currency that we're currently on is only valuable because of the.[00:15:51]Reliability of the U S government, the U S capitalist system, which again, people are going to scoff at out it's terrible, but it's the best thing in the world right now until we found an altered tech that turned into that. So being decentralized, it could, I don't know if that's an advantage or not, and as much as we hate taxes, the government has to tax.[00:16:11]There has to be tax revenue, whether we like it or not. Some of the things that people say is great for these reasons. It's I don't know if it's great for that[00:16:17] Rob: [00:16:17] reason, Charlotte, there's some folks and I, if I had to be pressed, I'm with you, you've got to have roads.[00:16:23] You've got to yeah. Airports, all that good stuff. How are you going to do that? Some people say you can do it in the public sector. Some people say you can't the libertarians obviously say you can do it on, in the private sector. And that's one of the, I believe his name, correct me if I'm wrong. But a guy out there named there, all the Bitcoiners will know who I'm talking about.[00:16:43] I believe he's called the Bitcoin Jesus. It's a big libertarian and he would argue that staunchly, I think. Yeah, she's right behind Ben Dickinson.[00:16:58] Yeah. It's interesting. It's interesting. I'm gonna throw this in there real quick. You talked about decentralized versus centralized and obviously there's a lot that goes in there and I'm not going to solve that. But one of the interesting things that Bitcoin does throw at us is. They talk about it being a trustless system, meaning you don't need trust.[00:17:17]Yeah, because it's all public and it's all out there and it's transparent, which is mind blowing for me. But that's the last thing is yeah.[00:17:25] Charlie: [00:17:25] Yeah. And I think, I'm gonna, I'm gonna argue my own position, but as more. You know of the big banks and even the sec that they're trying to get on board, they're trying to figure out how to work with this asset.[00:17:37] They're not turning away from it. They are trying to figure out how to integrate this in how it's going to be useful. So I think, I don't think it's going away, I don't think it's going away. And I asked what we were buying and I was listening to Animal spirits podcast today.[00:17:51] They're awesome. Ben Carlson and Michael Batnick, but Ben Carlson said, Hey, it's a put option on human behavior. Meaning, I get to profit from that. You know which again, we can say that for the whole stock market, but. So again it's very interesting because it's all these different things that our minds are not used to processing and it's not going away.[00:18:11] No, it's going to be interesting. And again, the blockchain is fascinating. That is some very[00:18:16]Rob: [00:18:16] Heading for sure.[00:18:17] Charlie: [00:18:17] Cutting edge technology. That's going to be used in many times. Oh[00:18:19] Rob: [00:18:19] yeah. Industry's Dawn's is looking at currents for supply chains. All these different manufacturers are using it.[00:18:27] I guess they can even track, like what you might be able to even track, like we're an avocado came from which farmer picked it. Got it. Crazy stuff.[00:18:36] Ben: [00:18:36] Yeah, you can trace where it was went, but you can't trace who that individual was. There's something called a private key and a public key basically.[00:18:44] And that's how they verify the transaction. And people are losing their private key, which is what gives you access to the Bitcoin. And then the public key is what's out there where you can actually chase, trace those transactions back to where the Bitcoin originally came from. And so that, that's where it is.[00:18:59] There is that anonymity side to it. But there also is that public side where it's all verified by. By the people out there mining this Bitcoin. Yeah, it is interesting. So[00:19:08] Rob: [00:19:08] can you talk to that a little bit, Ben, like, how does that work? We talked about a little bit, like you go to an exchange, you buy it, then what happens?[00:19:15] What's the, if somebody wants to get in on Bitcoin and Crypto Investing, not that we're suggesting that, but if you want it to, how do you actually do it?[00:19:21] Ben: [00:19:21] Yeah, that's a great question. And there, there are multiple different ways to get into Bitcoin and Crypto Investing. I'm just going to say probably the easiest way and that's the way I do it because I'm not smart enough to do it.[00:19:28]The, probably the true Bitcoin or way I use I've used what is it, Coinbase?  Coinbase. And then there's also cash app. I think you can buy it through Robin hood now and a few of the, and a few of the others, but if you go in there, it really was almost as easy as.[00:19:43] It buying something from Amazon. Really, when you go in here and try and do this, you got to hook up your bank to it. Some banks, maybe you need to get approval from, but there, there are designated wallet for Bitcoin and Crypto Investing. And you'll see when you go into a Coinbase, but you'll see that there's a ton of different crypto coins.[00:20:01] And I don't think we have time to get into all the differences between them. I'll just say some of them. And one of the most popular ones going around right now is called doge coin. You may have seen. And that one is just really interesting. Yeah, exactly. It is just fun to say. And I think that's why Elon Musk pumps it up a little bit, but really it's just a completely joke coin.[00:20:20] But anyway I'll say this just back to the previous discussion. I think one of the big things about Bitcoin is that it is a true global core currency and that's something that people aren't talking about as much is the fact that if somebody in Russia, and again, I'm not advocating for this.[00:20:35] So I'm going in Moscow right now wants to send me money or needs to, they can do that pretty much anonymously. I'm not going to say who knows what the government can do these days? I don't know, but I would say pretty much anonymously and I can send money to them without anyone being able to really trace who sent it.[00:20:51] And from where. And so there's no more relaxed. It's, it can be instant and I've transferred Bitcoin to people before, not the Russians, but just to test it out. And and it was as simple as they have an ID to their wallet that they, I just pressed a button and it sent right to it almost exactly like you would through, a bank is there's Zelle out there.[00:21:11] Venmo. If you've heard of that, it really was almost that easy. And you don't have to, if you're doing this across borders, you don't have to convert that to any currency. And if you do convert to currency other currencies, there's fees involved in that and there's still some different currency fluctuations, but[00:21:29] Rob: [00:21:29] right.[00:21:29] Don't try doing it after five o'clock on a Friday or during the weekend. The banks are they're out having fun on the golf course,[00:21:35] Charlie: [00:21:35] right? Yeah. I think what you are talking about now is the most. Transformative and useful thing about this whole idea is that it's going to make things a completely different than we could have ever imagined as far as the way we've transacted money.[00:21:50]Earlier I asked, what are we buying? And now I'm going to ask, why should anyone buy Bitcoin or crypto, or even Coinbase? You can buy a stock and Coinbase, it just went. Public. And it is a brokerage platform, like you said, Rob earlier to the cryptos. So let's talk now about why would I buy this?[00:22:09]How do I make this decision as an investor and[00:22:11] Rob: [00:22:11] should I be doing Bitcoin and Crypto Investing? I that's, that is the crux of it right here. I'm going to circle back to that when I talk about rocks. But my answer on that one, Charlie, before I get off on another tangent is I think we have w we're going to put out a podcast pretty soon.[00:22:27]I'm hoping if less, Charlie. It says no it's called the financial freedom checklist, which is basically walking through, Hey, we have all these buckets, which ones do I fill first? Which ones? Don't I feel first. And we're talking about 401ks Roth, IRAs, you fill those buckets first kid's college fund five 20 nines.[00:22:45]Making sure you have your emergency fund set up all these different things that we'll get into in more detail. And that'll probably be episode 10 or 11 here, or flight 10 or 11, but. After you've done those things, then that's where your speculation and this is really speculative. And maybe you want to talk to this chart a little bit investment versus speculation.[00:23:05] That's where well, yeah,[00:23:07] Charlie: [00:23:07] for me. Yep. Yeah, man. I love it because this is the difference. Like just with us here on the call between me and you've been like in my life right now, we're building a house which is absorbing all of our extra money and then some, yeah. So anyway and I've got to. A few kids.[00:23:24] I've lost track of how many right now, because I've got a right now. We've got one kind of through school, mom, my stepdaughter. And we've got two that I've got to get through college and I'm joking about the number cause we're fostering right now. So yeah, we might need to plan for that one too.[00:23:41] I don't know. So I'm not being disrespectful to my wonderful children. I'm just. We've got a lot of stuff going on. So I'm thinking about college. I'm thinking about building a house I'm thinking about I'll just left the airlines. I'm thinking about building up more of an emergency fund than I already have.[00:23:57] So man, like you just said, Rob, Bitcoin falls way down the list falls off my list right now, as a matter of fact, and I think the way to frame this is, that your money that you're saving investing has to be attached and tied to your goals somehow. It has to have a purpose. Each of your dollars has to have a purpose.[00:24:12] So once those purposes run out, you might speculate, you could speculate on a stock individual stock. You could speculate by going to Vegas and playing blackjack. You might want some money. We don't know race cars and race cars, anything, but speculations, there's nothing wrong with speculation.[00:24:29] It just has to fit in your financial life. In other words, when all your other goals, important goals, the kids are going to school. Like I'm not going to invest my dollars co daughter's college fund on Bitcoin. It's too risky. And she may not go to college and I can't take that chance. Whereas Ben, you're younger.[00:24:43]By a couple of years. And so you don't have those things going on in your life right now. Man you're much more eager and it's much more appropriate for you to do Bitcoin and Crypto Investing right now than it has been. Yeah.[00:24:52]Rob: [00:24:52] With the cabinets, I would say even, no matter your age, my, my 2 cents here is be ready to, if you lost it all, don't be too surprised because it's so untested.[00:25:02] It's like one of those startup companies that, 90% fail or whatever, it, it could be one of those. And the other thing too is yeah. Which one are you gonna invest in? We've been talking about Bitcoin, which is the big , but there's all these different ones out there.  I think I heard something like there's 5,000 cryptocurrencies out there. Just like back in the.com era, who knew. Everyone knows in hindsight that Google and Netflix and all these, companies that are great now that become the fat tails. If you will, are out there and they're doing great, but Bitcoin, because of its $21 million cap, maybe that's not the best cryptocurrency.[00:25:33] That's going to come along. Maybe it's going to be a, what is it? A theory, the other second place one. And they've all back to your point earlier, Charlie, they're so volatile because.   They're computer-based so whether they can be hacked or not, there's a lot of differing opinions on that, but they've all had problems, right?[00:25:51] Ethereum lost 50 million cryptocurrency and they went back and rolled back the blockchain, which I think is the first rule of blockchain, which is. Don't tamper with the blockchain. He rolled it back and gave it back. They'd get back to the blockchain. Whereas I think Mt. Gox, which was the big exchange for Bitcoin and Crypto Investing prior to Coinbase and the other exchanges out there which was sounds like, just a bunch of folks getting together playing cards or playing a game.[00:26:17] And then they stumbled on the Bitcoin and came out with Mt. Gox and they had a a hack or somebody stole because they were able to. To manipulate the code or one of the holes in the code and they still like $850,000 worth of Bitcoin. So there's a lot of different, things out there that you gotta be careful about.[00:26:35] Hey, Robert,[00:26:36] Charlie: [00:26:36] I think that Mt. Gox thing is cool and I'm sorry to interrupt you, but it's it was actually 850,000 Bitcoins. Sorry. That we're currently, or that we're valued at 450 million at that time.[00:26:47] Rob: [00:26:47] Yeah. That's slightly different.[00:26:50] Charlie: [00:26:50] That's the only reason I interrupt you. I'm sorry, go ahead. That's great. Hey, but but I love this.[00:26:55] What we're talking about right now, I think is really important and And I want to frame this discussion a little bit more along that speculative discussion that you hit Rob, because I think that's totally appropriate and I'm done being crusty old guy. I just wanted it to be that for a second, but but I think it's interesting that let's pretend for a second.[00:27:10]This is a behavioral thing that we need to be ready for and you nailed it. Just like any other investment, Hey, be ready to lose your money.  So let's pretend that Bitcoin makes it and it becomes a great, a store of value, inflation, hedge, whatever we, whatever happens, who knows.[00:27:25]But that doesn't mean you're going to be profitable as an investor. So let me delineate those two things. That's very important for. So here's an example. There's a stock that is let's use quantum scape as an example. We're not invested in quantum scape, but I'm just gonna use that in his example.[00:27:39]It's amazing technology, potentially this could make battery lives like  10 times what they are right now, which would be, can you imagine the game changing technology that would be Volkswagen's involved in this this company per se and Gates is an early investor. So man, it is amazing.[00:27:54]And so let's, we don't know exactly what's going to happen, but there's an amazing technology. There's no doubt it's going to be around for a long time. No doubt about it, but that doesn't mean I'm going to be profitable as an investor. For example, if I bought quantum scape at the wrong time, in other words, these new concepts, these new things that their prices bid up so quick, when they come out sometimes maybe an IPO or whatever.[00:28:15] If I buy it at the wrong price. It's still a great company. It still has amazing potential, but it could be 10 years before if you bought the wrong price, it could be 10 years for this particular example before you become profitable. Again, let me give another example. If it's, and we've talked about gold before we came on, when gold first became an investible asset, if you bought gold and let's say the late seventies, early eighties.[00:28:42] You still have not recovered your value from gold as an investment in, in, 30 years later. Yeah. So in other words, gold is great. We sometimes use gold as an investment. There's nothing wrong with it. Great. But if people buy it, what's that is it great? Yeah, exactly. Yeah, exactly. That's another show, but that's my only thing is there, there's a very good chance and that's why I think what you said, Rob is so important.[00:29:07] Be ready to either have it go down in value for a long time, and we've already been through this with Bitcoin and Crypto Investing and I'm going to cherry pick some data right now. And I'll tell you that if you invested in Bitcoin in December of 2017, then three years later, December, 2020, you may have broken even, so that you gotta be ready for that as an investor.[00:29:27] And that's a long time, it's easy to now say three years. Yeah. No big deal, but. During that time you lost money and you didn't know if it was ever going to come back. True, but[00:29:36] Rob: [00:29:36] let me just be ready for that. Throw this at you, Charlie. If you invested $1 in Bitcoin in 2010, it would now be worth $90,000.[00:29:47] So crazy. Yeah, that's right. It was the best investment. Best save investment. I shouldn't say investment. I'm sorry. Best asset. Of the decade from 2010 to 2019, it made the most money. Yeah.[00:29:59] Charlie: [00:29:59] I there's no denying that. And I just think you gotta be ready to to stick with it no matter what. And that means you gotta be ready to part ways with that money that you've invested.[00:30:09] Because again, those people that invested in December 17, 2017, they're Hey, I think my money's gone. I don't think it'll ever come back,  I'm done ranting, so I,[00:30:16] Ben: [00:30:16] yeah, what I've  run up against when I was thinking about Bitcoin as well, is you can put in money into Bitcoin.[00:30:23] Yes. And, but Bitcoin doesn't make any products. It doesn't sell anything. It has no assets that. To liabilities. It has no property, no patents, no, nothing about it. It w I can, so I can put a, a hundred dollars into Bitcoin or I could put a hundred dollars into Apple and the Apple makes him great computers and probably will continue to do or at least fight to make more earn profits in the future.[00:30:48] Bitcoin doesn't do that. . That for me, gives me a lot of safety and comfort. Knowing that I have a business  that is trying to make as much profit as possible. They have to Bitcoin really has no intrinsic value at that.[00:31:00] I understand at least  . I think there, there is a chance that in the future, this could be a wonderful currency that we all use to transact. But as far as right now,  there's a big hype. There's some scarcity involved in that,  the value keeps going up and up. What is the, what's the peak. We don't know, we don't know what it will be. We don't know. Will it ever stable stabilize it all. We don't. We just don't know. And then, like you said, would another, if another coin could easily come over and be, wow, this takes half the energy to verify the blockchain, which another is a whole nother.[00:31:33] Issue about Bitcoin is the energy consumption it takes. But there could be another one that comes along with it's so much easier to mine and to keep track of this blockchain then maybe more popular. So we just don't know it's so new me, I personally, I do invest into it, but I would prefer to invest in something  that's trying to make products at selling a service, something along those lines, but I don't[00:31:54] Rob: [00:31:54] know. Yeah. I think it's important. You brought that up too is the ICO. So I may be wrong on the exact terminology, but it is as opposed to an IPO that they have ICS and so many get rich quick folks.[00:32:06] They say it's not a Ponzi and Bitcoin, I would say that's true. And there's a lot of cryptos out there that are trying to do the right thing, I would think. But there's a lot that are, there's quite a few that went public and, or went through one of these ICO's and made a bunch of money.[00:32:22] And then boom disappeared. So you gotta be really careful if you are going to invest. You're really careful about what you're doing because a lot of money has gone missing,  so that's amazing. Fascinating. I just think, yeah, it could be something. In the future, that takes a hold, but who knows, which one of these crypto's is, that's[00:32:39] Ben: [00:32:39] going to be speaking of which Ben coin is about to come out. It's about to be the next big thing. No, I'm just kidding.[00:32:46] I don't know if you've ever heard of Jim Mack, but he, the McAfee antivirus guy who's. Yeah, it seems absolutely crazy to me. I don't know much about him, but he came out with a coin and was pumping it up like crazy last year and then just took all the money and lives on like a boat now. And no one can get, in the international waters knowing.[00:33:03] So it's just, anyone can make these things. It's. It's definitely not something to get into. If you don't understand it, I would just recommend just avoiding it.[00:33:11] Rob: [00:33:11] And if you if you're really passionate about it and you think this is the next currency, it's the best thing. Since the, the internet was invented, then  my thought is you fill those other buckets and then you can invest in it. Just realize you might lose it. But if you're really passionate about, thank you, you have a big fear of missing out. And you need to scratch that itch. Go ahead and scratch it. After you've done the, the responsible things, if you put your kids through college.[00:33:34] Yeah, exactly. And we talked about stability, I guess there's a coin out there, a crypto coin out there now that is tied to the dollar, which may be could stabilize. So maybe that's one that will come up, but where maybe Ethereum will or what, you've got all these different kinds, but like you said, it goes back to 2008, which we should talk about that a little bit.[00:33:53] The timing of when the white paper by Satoshi Nakamoto, who is either a person or persons, no one knows who, but they're obviously a world-class programmer with economics background. And I'm not telling you, I wrote that. Did you write that bit? I knew it[00:34:15] Ben: [00:34:15] business partner kicked me out, but[00:34:18] Rob: [00:34:18] yeah, just fascinating stuff, but that was about six weeks after Lehman brothers failed.[00:34:22] It was when that paper came out. So re you know, the financial crisis 2008 is happening. That's when it came out to say, Hey, maybe, some people say that the banks have gotten too big to fail, or some people say too big to jail, they didn't jail any of those folks. So anyways, super fascinating. Yeah.[00:34:42] I think you[00:34:42] Charlie: [00:34:42] hit it though. Rob, and it's just we've got to be careful of fear of missing out.  We've got to make sure we understand it's a speculative investment, which is fine.[00:34:51]Rob: [00:34:51] Getting back to the volatility too, Tesla announced that they were at some point in the future going to accept, I think it's Bitcoin for a payment for Teslas.[00:34:58] Can you imagine that? People as volatile, it is right now, people just wait until it goes up or goes down and then, the price of a car in dollar value could be worth a hundred thousand one day and 30,000 the next. So just wait until it's 30,000 and buy it with Bitcoin. I don't know that seems like a problem that Tesla might have in the future.[00:35:18] Ben: [00:35:18] Yup. And market manipulation is another thing too. These influencers go out there, pumping up a coin here. They're I you on Musk, you see him pumping up doge coin, which again is literally a joke. It says, so in Encore invasion, its description on the, in the origination of it. But anyway, we just, that could also get you in trouble.[00:35:36] Just something that, something as simple as that. No,[00:35:38] Rob: [00:35:38] so it's fascinating. That is fascinating.[00:35:42] I'll wrap it up with a quick quote from Warren buffet.  Is quote is cryptocurrencies basically have no value and they don't produce anything. They don't reproduce. They can't mail you a check. They can't do anything. And what you hope is that somebody else comes along and pays you more money for them later on.[00:35:58] But then that person's got the problem in terms of value. Zero Warren buffet. That's what he said. And then I'll leave you with, the Elon Musk quote. I think Bitcoin is on the verge of getting broad acceptance by conventional finance people. And to that point, Charlie, you were talking yeah.[00:36:14] About the ETF. I'll just leave it at that, that the ETF I guess is in front of the sec. And if they can get the sec to sign off on it, there'll be a big coin or a cryptocurrency ETF. That's all I got. All right. Thanks folks. We've reached our final destination. Thanks for joining us here at the pilot money guys podcast as always.[00:36:34] If you liked what you heard, hit that subscribe button, and if you have any questions or want any topics covered. Hit us up@robertatleadingedgeplanning.com and as always remember what Emerson said, the world makes way for those know where they're going.[00:36:56] Voice Actor: [00:36:56] Thank you for listening to the pilot money guys podcast. It has been our pleasure to share some information with you today. Give us a call to discuss absolutely any investment question. You may have click on the subscribe button below to be notified when new episodes become available. Visit leading edge planning.com to learn more.[00:37:14] Take care.[00:37:18] The information covered and posted, represents the views and opinions of the guests and does not necessarily represent the views or opinions of leading edge, financial planning, LLC, leading edge financial planning, LLC bleeding edge is a registered investment advisor. Advisory services are only offered to clients or prospective clients where leading edge and its representatives are properly licensed or exempt from licensure.[00:37:40] The information provided is for educational and informational purposes only, and does not constitute investment advice and should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investors, particular investment objectives, strategies, tax status, or investment horizon.[00:37:59] You should consult your attorney or tax advisor. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-thinking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.[00:38:20] Any projections market outlooks or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. Always seek the advice of your financial advisor or other qualified financial service provider. With any questions you may have regarding your investment planning.Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this Podcast will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 03/31/2021 and are subject to change at any time due to the changes in market or economic conditions. Excerpt: The Pilot Money Guys attempt to shed some light on how to think about investing in Cryptocurrencies.  What the heck is Cryptocurrency? Should you consider investing in Bitcoin or Dogecoin and what to expect if you take the plunge and invest.  Hint:  Don't invest any monies you can't afford to lose! ### Flight #4: Are we in a Bubble, Investment Envy and Why Diversification Sucks Pilot Money Guys: Are we in a Bubble, Investment Envy and Why Diversification Sucks  In this podcast we discuss market bubbles (are we in a bubble?), the benefits of diversification (no, it doesn't suck), index mutual funds, and Exchange Traded Funds (ETFs). We discuss some causes of investment bubbles and whether we are currently in a bubble or not.  What happens when the bubble bursts and how it could affect us as investors? Learn why being an envious investor is one of the worst investment mistakes (FOMO) and why it causes us to continuously buy high and sell low, thus underperforming the actual investment we're invested in! We discuss how diversification can help combat both bubbles and investor envy as well as help us win in the long run.  But be warned, it is the least "sexy" of all investment strategies.  You can't brag to your friends at the bar about how diversified you are! We finish up discussing the potential 'gotchas' of index investing and warn investors to use caution with new, complex, and unnecessarily expensive index funds. Please share this podcast, and let us know of any topics you would like us to cover! Bubbles, Investment Envy and Why Diversification SucksVoice Actor: [00:00:00] ladies and gentlemen, welcome aboard the pilot money guys podcast, where our mission is to help clients build and protect wealth to achieve their dreams and goals. This podcast is brought to you by leading edge financial planning. Without further ado here is your host Robert Eklund.[00:00:32] Rob: [00:00:32] Hey folks, welcome to the pilot money guys.[00:00:34] Podcast  where we aim to bring you some lighthearted, financial fun. I'm Rob Becklin. Current airline transport pilot investment advisor representative with me today. We've got the former airline transport, pilot and certified financial planner, Charlie Mattingly. And of course, of course our producer and wonder boy.[00:00:51]Ben Dickinson planner, but it's more of a silent type[00:00:56] Charlie: [00:00:56] silent, but[00:00:57] Rob: [00:00:57] deadly, I was hoping you going to be in the silent role today. That's, that's the way I like to[00:01:04] Charlie: [00:01:04] speak when you're spoken to[00:01:10] and you know, what a good first officer or a wingman says. Right. See if you see how well we've trained, you. Yeah, you said, uh, don't say I forgot. We're[00:01:21] Ben: [00:01:21] recording. We're recording. I better[00:01:24] Charlie: [00:01:24] keep it clean. Keep it clean.[00:01:26] Ben: [00:01:26] Nice landing. That's that's[00:01:27] Charlie: [00:01:27] the only one I'll say no. You're right, right. You're right. Yeah.[00:01:32] Nice landing. Or in the case of the wingman, you know, wingman, uh, lead you're on fire. That's those are the things that, right.[00:01:39] Ben: [00:01:39] I heard the different one, but yeah,[00:01:41] Charlie: [00:01:41] that's a clean, that's a clean version of my mom listens to this podcast, so let's go. Good.[00:01:47] Rob: [00:01:47] Good. At least we got one listener. We've got at least one.[00:01:51] Charlie: [00:01:51] Yeah, that's right. Mom hit like, and subscribe. If you don't mind, please.[00:01:57] Rob: [00:01:57] Well today we're covering the topics of day bubbles and indexes, which almost sounds appealing. And Ben starts getting excited when we start talking bubbles and indexes. Yeah, that's a good teaser. That's what we're going to be talking about. But first we're going to jump into some aviation news. So, uh, the first thing that I saw, obviously we're recording this in early March.[00:02:20] So what had just happened the last couple of weeks was United's a triple seven going on to Hawaii. Uh, had an engine that basically blew up on him or at least shelled itself, and they had to return to the airport. So really interesting. Uh, they came back to the airport. I'm a heavy guy. So this one is, it was very interesting.[00:02:42] And former KC 10 DC tank guy. So I was wondering, you know, how heavy they were. Uh, there was all kinds of photos on YouTube and Facebook and videos would show that the, the, the engine callin was gone. It was completely blown away. Obviously parts were falling off people's neighborhoods and Broomfield, uh, up in Denver there.[00:03:03] And it was just a pretty interesting to see hats off after those pilots. I mean, we're, you know, we're going to talk about a little bit, but, uh, uh, I hate Monday morning quarterbacks. And those guys did a great job. They got them on the ground there, safe and sound. I mean, that's what pilots get paid. Pretty good money to do so.[00:03:19] Yeah.[00:03:20] Charlie: [00:03:20] And Rob the cowling, just for those who maybe are non-pilot. So pilots listening as that big round piece, they saw in the news, big round metal. Those are all my technical words that I'd know that was laying in someone's yard, which. I don't think anybody was hurt. Thank God. Right? I mean, that's a huge thing and correct me if I'm wrong.[00:03:40] Here's some more trivia. Somebody said that cowling itself on the triple seven engine was bigger than the fuselage on the seven three seven.[00:03:48] Rob: [00:03:48] I've heard that I've heard that that's huge.[00:03:50] Charlie: [00:03:50] That's huge. It's massive. Yeah. Yeah. So[00:03:54] Ben: [00:03:54] it's all a picture in that guy's yard and it was just like the size of his Toyota Tacoma in his driveway.[00:03:58] I'm like,[00:03:59] Charlie: [00:03:59] Lord. Yeah.[00:04:01] Rob: [00:04:01] That's not good. They're so, so thankful and lucky. No one got hurt.[00:04:05] Charlie: [00:04:05] That's incredible.[00:04:06] Rob: [00:04:06] One of the things I was thinking about was one of the, one of the videos had the engine, you know, obviously the cow's gone. And there's still fire, you know, going out like the engine is still burn it.[00:04:16] And it made me think, did they not shut down the engine? You know, what's going on there. If they're heavy, there's a reason they might not shut down that engine, you know, go into Hawaii. They're gonna have a lot of gas it's COVID times. So they might not have had a lot of people, but if you're heavy, loaded the gills, uh, I don't know, I'm not a triple seven guy, but you know, just thinking about it.[00:04:34] If you lose an engine you're in Denver, high altitude. Uh, you know, one of the things you talk about, at least in the DC 10 world was you might keep that engine running if it's putting out any kind of thrust at all. didn't, I wasn't sure they did that, but it could have been just residual fuel flow because the calendar's gone.[00:04:51] If they fire the retardant bottles that goes into the Cali. And would suppress the fire. But since the calendars, God, even if they did that, it wouldn't have necessarily happened. So they might, they might've shut it down. I didn't understand[00:05:01] Charlie: [00:05:01] all the stuff you said there, Rob, your technical, your technical knowledge is exceedingly impressive.[00:05:06] Yeah. Oh my God. Maybe we can have a wife's listening. Thank you. We have a triple seven guy call in. Got her girl call in right now. Is that possible? Yeah,[00:05:16] Ben: [00:05:16] let me get, let me check. You can do that[00:05:18] Charlie: [00:05:18] on a podcast, but, um, but no, I, I don't know. I was surprised at that too, Rob. I was like, why is there, why does it look like it's still running in fact, If it's not, even if they shut it down, it's not seized.[00:05:28] It could still be, it will still be spinning if it's not seized, but there were, like you said some flames coming out, but who knows when that video was taken? Maybe it was right at the beginning. Maybe they're in the process. It takes a while to run those checklists sometimes. And, but hats off to the crew, like you said, Rob, because, I came from the single engine world and I'll tell you what never did flying a single engine.[00:05:51] Seven 37 profile in the SIM. Luckily I never real appointing. Yeah, but never was that easy? Never was that easy. I mean, it's very challenging, especially when you've got a huge thrust in it's differential, a symmetric or whatever, all we say, all those, those things that I've already forgotten, but man, it's challenging.[00:06:10] In fact, Rob, I'm going to make a confession to you right now on my very first SIM at Southwest airlines. I crashed the SIM on a single engine ticket. That was my, that was my, what we call it. LOE. That was my, that was the one I crashed.[00:06:27] Rob: [00:06:27] That's why you[00:06:28] Charlie: [00:06:28] practice and maybe that's why I retired and I'm doing something different.[00:06:31] Maybe I'm glad to retire.[00:06:34] Rob: [00:06:34] So[00:06:34] Charlie: [00:06:34] there was that beat sweat that went down in my face and the captain looked over and he's like, dude, don't worry about it. You get another chance. You'll be fine. I was like, there's this? Why is there a sweat rolling down my face? It's[00:06:44] Rob: [00:06:44] cold. That was during your initial[00:06:47] Charlie: [00:06:47] new hire scary.[00:06:50] And the SIM the screen goes, red screen goes red. You probably didn't know that[00:06:56] Rob: [00:06:56] you're non pilot. Non-sales they're a airline guys. Yeah. That is. Your check, ride out, maybe one of the biggest check rides you're taking.[00:07:09] Charlie: [00:07:09] It's definitely one of the more nervous ones for sure.[00:07:11] Rob: [00:07:11] Yeah, absolutely. I know guys that get[00:07:14] Charlie: [00:07:14] super nervous during that funny story.[00:07:16] I won't, uh, deliberate too long, but, uh, this is seven years later and because every time I did the SIM like that, I would tell the, the Gower girls line with, Hey, look, I'm not good at the single engine stuff. It's, I'm working my butt off when we lose an engine. And usually it's right on. Take off. So I would always tell the person I was fine with.[00:07:35] Hey, Hey, feel free to help me with whatever you can do. Step on the rudder for me, what the heck. But anyway, so I told that to one guy and this is a seven or eight year fo at this point, the dude's like, Hey, you'll be fine. This is my technique,  well, we get in the SIM on our LOE and he crashes on takeoff.[00:07:55] So that made it even worse. Cause I was like, Oh no, this guy's crashed and I've got to go next. So anyway, yeah, it's challenging. The point of all that is hats off to the crew. Yeah, they did an awesome job. It's it can be challenging. And clearly no one, I think no one was hurt if I'm not mistaken. So how,[00:08:14] Ben: [00:08:14] how does that affect the drag?[00:08:16] I mean, that's gotta just put a huge amount of drag on that, that side. They're adjusting for that. Yeah. It's[00:08:23] Rob: [00:08:23] um, been, I was a former C1, 30 guy, so props are a lot more problematic. Than jet engines. So if you have a prop, you know, one of the things you got to do immediately is what they call feather, the prop, which is turning it sideways to the wind.[00:08:39] And since, since it's a jet engine, not as critical, but it's still, you lose all that thrust and you're right. There is definitely drag out there. So you got to get what, you know, you've got to get that rudder, they balance out the plane. For sure.[00:08:50] Charlie: [00:08:50] So, yeah, absolutely.[00:08:52] Rob: [00:08:52] You know, and it was something that I also thought about was that's an E that was an E stops flight going to a Y.[00:08:58] So that engine, obviously there were some things, no problems with that. Um, previously I think is what I had heard. We'll wait for the report to come out, but you know, that that engine was checked a little bit more critically than other engines or at least a little more dynamically. And that one. You know, one maintenance, uh, personnel would check the oil and I think another one would check the other engine also.[00:09:22] Not, not much, but at least some more consideration on those over-water flights like that. So it'd be interesting to see what comes out of this for[00:09:30] Charlie: [00:09:30] sure. Yeah, absolutely. Just,  glad that, uh, You know, again,  the engine casing, I guess, did his job because those fan blades stayed inside. They were contained.[00:09:39] And when they come outside of that casing, that's when it can strike the airplane and cause more damage. So that that's is all right, Charlie. I'm not[00:09:46] Rob: [00:09:46] sure that happened. I[00:09:46] Charlie: [00:09:46] think even while I'm saying it, Oh, you say, Oh, it did[00:09:49] Rob: [00:09:49] come out. Yeah. I think, I think it may have. Yeah, that's the, that's one of those things.[00:09:53] Where did the, you know, are we, are they doing everything they need to do? And obviously look at that and make it safer. Which is what we're we're good at. So, yeah. That's cool stuff. And the other thing, what else you got? You got any other airline[00:10:06] Charlie: [00:10:06] news, Charlie? Hey man. I thought a couple of things were interesting.[00:10:09] I'll go through the headlines here, you know,  United buying 24 more max seven 37. So that's good. Positive. Any positive dudes from the airlines, you know, it was just amazing. And like we talked about last time, about this time last year, we thought we were going to lose an airline or two. You know, and, and, uh, and we haven't yet.[00:10:30] Hopefully we won't. So that's good news. In fact, adding to that, Delta's recalling, recalling all of their pilots, I think, or it says, at least it says more pilots. I quite frankly, I didn't, I thought they avoided furlough, so I could've been mistaken on that , but the good news is they're coming right back.[00:10:45] They did.[00:10:46] Rob: [00:10:46] They had to let something go for a little bit.[00:10:49] Charlie: [00:10:49] That's good news or coming back. The last thing that I think is fascinating. And I need to learn more about this because it's just a, the headline and the quick article at this point. But net jets just ordered 20 of Ariens, never heard of very on before supersonic jets.[00:11:08] Their goal everyone's goal is to be able to connect it. Uh, any point. In the, in the world within three hours, any two points, I guess. Right. Are you going to start[00:11:17] Rob: [00:11:17] flooding? I'm[00:11:18] Charlie: [00:11:18] jumping back in, man. I I'm jumping back in and, uh, except for, I know flying supersonic is actually kind of boring, so there's really not, there's really nothing to it.[00:11:29] I would say that it sounds cool, but it really, really matters. It's not that[00:11:35] Rob: [00:11:35] cool, but anyway, that's awesome. Uh, something else, last thing, uh, for aviation news or at least that I was thinking here is. Southwest is now going to be flying to Bozeman Montana. They've opened up a couple more routes. Awesome. I think a couple of destinations in Florida as well.[00:11:52] Destined[00:11:53] Charlie: [00:11:53] the Destin area. Amanda Knoxville on to Knoxville, Southwest, Southwest, killing me.[00:12:00] All[00:12:00] Rob: [00:12:00] right. All right. Moving along. We've got the financial topics of bubbles.[00:12:06] Charlie: [00:12:06] Charlie. Yeah. Yeah. So bubbles is the topic.  And maybe that's just, uh, an attention getter. Cause I don't want to talk about bubbles that much, Rob.[00:12:13] I hope you're not disappointed in me.[00:12:16] Rob: [00:12:16] We're talking financial bubbles, financial bubbles. Thank you. Thank you. Not other bubbles[00:12:21] Charlie: [00:12:21] then was blowing bubbles for some reason. I was excited[00:12:24] Ben: [00:12:24] actually about this topic and now I'm a little disappointed.[00:12:27] Charlie: [00:12:27] So let me explain, let me explain this. Bubbles. We only know bubbles after the fact a bubble could be bursting right now.[00:12:35] Okay. , so,  let's keep that in mind, you know, w what the heck is a bubble? Well, basically prices get inflated, and then they crash,  , so did we have a bubble or not? Well, I don't know yet again, we could be in the middle of one, things have changed significant  as far as different asset classes, as far as performance since last summer.[00:12:55] Let me explain that a little bit more large growth, large us growth to be specific. Did phenomenal last year. I mean, phenomenal. There was some mutual funds  one in one of our profit sharing accounts. The 50 plus percent. So that's phenomenal. Then you look on the other end of that spectrum and you go, we're in a recession, we're in a pandemic.[00:13:17] People are losing jobs. Uh, we're we're pumping money into the economy. It just doesn't seem real. It seems artificial. It seems artificially ,  bid up.  So  the short story there is that. Potentially that is a bubble, maybe a micro bubble. We can call it potentially, you know, has it burst We don't know. Maybe the performance in those specific asset classes are lower than they were before. So maybe it's bursting as, as we speak. Is it going to affect all of us? Probably not. You know, will we even see it? Probably not. So we're not looking at a bubble, like the tech bubble in the late nineties, we're looking at some kind of micro situation where I'm probably not going to be.[00:13:56] A whole lot affected. There are bubbles.[00:14:00] Rob: [00:14:00] Bubbles are interesting to me because when I think about bubbles, we're, we're talking about, you know, you think of way historical type stuff with railroads and you know, obviously real lips to lips, a favorite topic of[00:14:15] Charlie: [00:14:15] mine. That was the first bubble by the way, financial history feels for the first moment.[00:14:21] It's[00:14:21] Rob: [00:14:21] true. So. You know, people talk about the housing bubble, some, you know, a lot of different back and forth on that. Some people say, well, was that a bubble in 2008? Because housing prices are back up. Is it a bubble? If it burst and now it's back up higher than[00:14:37] Charlie: [00:14:37] it was? Exactly. I think it's, I think it's a distraction.[00:14:40] I'll be honest with you. It's it's a distraction. A red herring, as I say, the really important thing here and let me transition to something called envy, right? Because last year we all had envy for those that invested only in Tesla, Bitcoin, uh, arc ETF.   They did awesome for that year.[00:15:00] Now let[00:15:01] me[00:15:01] Rob: [00:15:01] use that in a sentence. So, Charlie, yeah. Ben is envious of Rob. That's[00:15:08] Charlie: [00:15:08] okay. Just to a practical application, but, but Warren buffet said it best. Are you ready? Warren buffet said it best as an investor. You get something out of all the deadly sins, except for envy being envy of someone else is pretty stupid.[00:15:23] If you're going to pick a sin, go with something like lust or gluttony, that way at least you'll have something to remember the weekend for. So that's our favorite Warren buffet and silly. But true. There's so much truth in his little statements. And here's what I'm talking about. Did I miss out? We get this question a lot and Rob, I told you I was gonna talk a lot today, man.[00:15:43] I'm have six cups of coffee. I'm on fire. I'm[00:15:47] Rob: [00:15:47] like drop your, your, your button, your coffee. You got the[00:15:50] Charlie: [00:15:50] shakes right now. So that tells me I've had the right amount of coffee. But you know, the real question is, did I miss out as an investor? Should I have done differently? Um, I'm going to tell you that. I think the answer is no.[00:16:03] And here's why being a diversified investor. Uh, there will be times in fact, probably every single year where you will lose out to something. However, the reason we diversify is that over time, you've got different asset classes in there that do perform differently under different economic environments.[00:16:23] Right? So over time, your dollar amount. Should be higher if you stay diversified, if you stay to disciplined and let me talk about the antithesis of diversification, that is the investor that says, Oh, Teslas up, I'm buying it. AHRQ ETF is up. I'm buying it. Well, guess what you just did. You just bought high, you know, there's a great asset class called small cap value.[00:16:49] That is just one. I'm not saying put all your money there. Just one have some of it. It was down and it was getting the, you know, what, beat out of it. Maybe we should be buying that that's called buying low, right?[00:17:01] Rob: [00:17:01] Rob? Absolutely. Yeah. I love what you're talking about here at Charlie. One of the things that I keep thinking about,  folks or some kind of entity is beating the market, watch out for the fees that if you're paying a hedge fund or, or a broker or whatever.[00:17:19] Charlie: [00:17:19] Yeah. Yep. And the risk, I mean, am I taking the risk that's appropriate? In other words,  one of our retired pilots called newly retired said, Hey man, I think I should probably be in Bitcoin.[00:17:30] You know, it's really doing all on yourself.[00:17:32] Rob: [00:17:32] Again, Charlie,[00:17:34] Charlie: [00:17:34] I'm talking to myself and I, and I said, well, let's talk about that. You know, it's, it's very tempting. Gosh, Bitcoin has really been on a run lately and although it's crashed before, et cetera, et cetera. So I'm like, well, how would your life change if you were in Bitcoin right now?[00:17:47] And, and are you going to put everything you own? Are you gonna put a hundred percent of your money in Bitcoin? Heck no. Right. That's too much risk, right? Yeah. So how much are we going to put in there? Well, let's put in a little slice. Well, is it going to change? What if it doubles triples? Is it going to change anything in your life right now?[00:18:02] No. If it does double, triple, you know, is it really going to change your retirement of talking to this guy? No, it's not going to change anything. What if, what if you lose all of it? Is that going to change anything? Yeah, that's kind of, that's really going to hurt. So, you know, that's kind of an example of the risk reward, trade off in your personal life, but.[00:18:20] But, you know,[00:18:21] Rob: [00:18:21] that Bitcoin, that Bitcoin discussion is something that I've gotten a call to about that as well. And it's the way I kind of think about it. This is totally going off the rails here, but, uh, I kind of think about that the same way I do with speculating on art or cars or any, you know, , something like that.[00:18:42] If you're really into it and you really want to do that stuff, maybe it's, there's a place for it in your portfolio, but just a slice of it. Like you were talking about Charlie. Yeah,[00:18:50] Charlie: [00:18:50] absolutely. And understanding, and I'm not beating up Bitcoin there's there's like you said, there's a place for it. But understanding that there's a difference between speculating.[00:18:59] And investing, you know, we're, we don't know anything about,  what Bitcoin's going to do. It's a very emotional driven, just like any other commodity at this point, so that there's speculation there and that's okay. Just understand the difference. But you know, back to diversification a little bit, just to get us back on the rails.[00:19:17] I know we get excited and all that. Nice, nice of[00:19:20] Rob: [00:19:20] course. Direction[00:19:21] Charlie: [00:19:21] of course, direction, but. Diversification when you're really diversified in a year. Like last year, I'll be honest with you. I'm going to be vulnerable here, Robin and Ben, you kind of feel like a loser, like, Oh, I'm such a loser. I'm diversified and everybody else is everybody else is at the bar and they're talking about their Tesla.[00:19:37] I'm like, Oh, I'm diversified. That's pretty cool. No, not, but anyway. Let's look at 2000 to 2020 2002. Bear with me for a second. This is from BlackRock really interesting. And I'm going to compare a diversified portfolio . Rob, do I have time to do this? Okay, great. Great. Um, 2000 to 2002 diversification, one big time, you know, against the S and P 500.[00:20:04] In fact, I'll just go and, tell you the end of the story. From 2000 to 2010 S and P did not make money. If you invest it in the S and P 500, $2,000, and you didn't make money, which is hard to imagine because the most recent 10 year period, we just went through, there's nothing that beat the S and P 500.[00:20:21] So[00:20:21] Rob: [00:20:21] anyway, excluding excluding dollar cost averaging probably, but yes, I'm with[00:20:27] Ben: [00:20:27] excluding Bitcoin. Yeah.[00:20:28] Charlie: [00:20:28] Yeah, probably my theory is falling apart already. You guys have feet holding my theory. So from 2000, 2002 certification one, you know, that was a recession. It was long, and it was fairly painful. The beginning of our Rob is beating of our investing lives.[00:20:44] Um, but,  2003 to 2007,  diversification lost , 2008 diversification, one. Obviously 2009 to 2000, 19, 10 years. You, you were a loser in diversification. Okay. Say with me Q1 2020 diversification wins Q2,  the rest of the year or the rest of 2020 last year. Again, diversification, you're a loser. So here's how you felt during that time period.[00:21:17] If you're a diversified investor, I lost money 2000, 2002. You know, you did a little bit better than the S and P, but not much. You still lost. I didn't make as much, you know, the next few years I lost money. In 2008, you did lose money or not. You had a temporary price decline. Sorry. I didn't make as much as the S and P the next 10 years.[00:21:35] This is how you feel the whole time, but guess what, at the end of that period, and this is from black rock, we can share this in our show notes. If we have those at the end of that 10 year period, the growth of your a hundred thousand dollars in the S and P 500 was $368,000. And some change in the growth of a diversified portfolio was $375,000 and some change.[00:21:57] So it's just really fascinating to me. And again, that's a 20 year period. And people will say, I don't have 20 years, you know, I'm retiring next year, but, but you know, we're still have to think in a diversified way in a long-term fashion as well. But go ahead, Ben, you got something[00:22:12] Ben: [00:22:12] I was just looking at, BlackRock's a return map as well.[00:22:16] And I thought this was kind of interesting. Um, speaking of that and why diversification is so important, but, um, you know, if you break up your portfolio into different percentages of different asset classes, you know, last year in 2020, Uh, let's say you, you had a, you know, a certain percentage in commodities while they were down 9.3%.[00:22:35] And so that your percentage of your portfolio, the amount of commodities and that percentage, uh, of that asset class it has, has dropped. So what you do is you and that same year in 2020 U S equities Rose up. So what do you do to rebalance and to, to keep that diversified and also capture some of those gains, will you sell some of those us equities that have done.[00:22:57] Well, and you, you buy some of the commodities  to rebalance, and that's where that diversity really is, is able to provide you. You do actually capture returns. You do actually make money. You do  buy low, sell high. And. That's how you capture those returns, but, but if you were just in commodities, for instance, will 20, 20 you're down 9.3% year to date 2021, you're up 13.5%.[00:23:19] So it's just so you just never know, and you have to be diversified too, to be able to capture those gains and yeah.[00:23:25] Charlie: [00:23:25] Rob,[00:23:27] Rob: [00:23:27] uh, I don't, I don't have a whole lot, um, one of the things that kinda getting us almost back on the other set of rails, when we were talking about bubbles, Is, uh, you know, some things that Eugene Fama had brought up during the course of his research.[00:23:44] And actually he was just interviewed by Howard gold on, uh, one of his, platforms and gold asked him, did you also say you don't believe in bubbles? And he said, well, I believe in them, if you can tell me when they're going to burst, but in my world, the definition of a bubble is something that has a predictable end.[00:24:03] It's if it's just something you use to describe an up and down. Well, that has no context for me. Those things happen in random series. So things are going to go up. They're going to go down that may not barely, I mean, it's a bubble, or even if it is a bubble, do you really care? Because if you're diversified, like you're talking about Charlie and Ben, that's a way to really game the system you become.[00:24:24] It's almost like you become, you're playing with house money at that point. Yeah. That might be a stretch, but that's the way I think of it. You're diversified these bubbles. They're going to go up and down. Do you really care? Um, the housing bubble, again, we talked about it's back up. So was that a bubble?[00:24:40] It depends on your definition and economists would argue that until they're blue in the face. Probably.[00:24:46] Charlie: [00:24:46] Yeah. You know, I want to stress one thing on this topic and we've been bouncing around a little bit. Cause I want to get back to the question that we get a lot in it. Hey, did, did we miss out again? I didn't get an arc all of last year.[00:25:00] And did I miss out, is my retirement going to be hurt? I'm trying to save for retirement and now my neighbor's got more money than me. There's the envy part. Right. And we all have it, whether we admit it or not, but really the problem is not missing out on a high flying stock mutual fund or asset class.[00:25:16] The problem is buying into that strictly because it's doing well. That's a problem.  The other problem is not buying into great asset classes like emerging markets and small and international, because they're doing poorly. That's the other mistake, you know, because we've missed out then on the ability to buy those low.[00:25:37] So, so there's, there's some behavioral components in here, right? That NV causes bad, bad investor behavior, just like Warren buffet talked about.[00:25:47] Rob: [00:25:47] So Charlie, along those lines, I think. It's so important for diversification  you know, people will go back to what buffet and Bogle. I think of both said at one point or another is, Hey, I'm just investing in the U S however, that was maybe a different time.[00:26:01] And thoughts have evolved. What I would throw at you is, you know, do you drive a German car? Yeah. Have you ever, if you've been lucky enough to go to Japan and you've sat on their toilets, their toilets are way better. Yeah. Nice.[00:26:15] Charlie: [00:26:15] If you get nothing else out of this podcast, Japanese toilet,[00:26:20] Rob: [00:26:20] it's awesome.[00:26:22] There's all of this ingenuity and all of this great stuff going along around the world. Do you, you know, if you only invest in us stuff, you're going to miss out on some of that. So there's this there's a good place probably for international. Stocks or, um, funds in your portfolio and diversify that as well.[00:26:40] Obviously we don't know which, which country is going to do the best and that's always fluctuating up and down. So, uh, definitely us is a big part of your portfolio, but you want some exposure to those other over the other places that are coming up with great products and are emerging with great products.[00:26:57] Charlie: [00:26:57] Yeah.  These high flying against stock funds, mutual funds, whatever it stocks,  If you look at like a five-year look back performance of those particular funds and you go, man, I could have had that or look what those investors had. Well, the real fact is that the investors in those funds didn't actually get those returns a lot of the times because there.[00:27:18] They're jumping in high, jumping out low, in fact, Morningstar tracks this and they call it,  mind the gap or behavioral investment gap.  . And they look at the investment returns of these great funds. And then they look at the people that invested in them and they didn't get those returns because their behavior either envy prevented them from doing so.[00:27:38] They didn't have the discipline to stay with it. When they're, when their neighbors were, were, you know, enjoying a higher return and some other. Some other investment. They simply jumped ship from one to the other, constantly back and forth, like a dog chasing their tail. And in an unfortunately that is not the recipe for success.[00:27:57] Rob: [00:27:57] Yeah. I think.   Some of the investors have a stoic philosophy and start not being envious. Obviously that's easier said than done, but, uh, one of the quotes that I always think of when I think about envy is.[00:28:09] As iron is eaten by rusts or the envious consumed by MB. So if you can stop thinking about what your neighbor's doing, obviously you're going to be happier in the long run too. He who envies others does not obtain a peace of mind and is less happy. So I think all of that is so key. When you talk about FOMO, right?[00:28:29] Fear of missing out everyone's jumping on the Apple bandwagon, the Amazon bandwagon, you know? Who knows this, this, the four most dangerous words in investing this time. It's different. So,[00:28:39] Ben: [00:28:39] yeah, to have FOMO right now with social media and, and, uh, the news, I mean, what gets the headlines, I mean, is what you're going to see.[00:28:48] And you're, you're seeing right now, just this craze of people, uh, you know, I earned this much in GameStop or Bitcoin or, or just in, in whatever in Tesla and Amazon. I mean, you hear it all the time and, and it's really hard to resist that. Um, But they don't really talk much about diversified portfolios, uh, crushing it over the long run.[00:29:06] So[00:29:09] Rob: [00:29:09] how does it make the news channel diversification? Whoa, what else you got? We got anything else on bubbles[00:29:18] Charlie: [00:29:18] there? I think I'm coming down off my coffee. Hi. So, um, so I think I'm about spent and, uh, it's just fascinating though. I mean, and this is a fun conversation, so hopefully it's been useful in[00:29:30] Rob: [00:29:30] some way.[00:29:31] Absolutely. Well, let's jump into indexing and index index funds. I'll cover this a little bit and you guys jump in wherever you want to here. Uh, the big topic or the big push here is all index funds are not created equally. So you gotta be careful when you're, when you say indexing, obviously indexing has taken over, it's taken over the world.[00:29:52] Um, but we gotta be careful when we, when we talk indexes because. There's a lot of gotchas out there that can even happen because it's become so popular. Obviously there's lots of people out there that have noticed that, and they've started to come up with indexes a they index when, you know, when their dog is going to want run around the house.[00:30:09] So you've got to, I'm very careful about just because it's an index fund. Doesn't mean it's something you necessarily want to invest in. So first off, what is an index fund? An index fund is just either a mutual fund or, or an exchange traded fund and ETF that holds a stock or a bond. And does this designed to mirror some type of composition and a performance of the financial market index?[00:30:30] The best known one is the standard and Poor's S and P 500, right? Um, index funds. Generally we have lower expenses and fees than actively managed funds. So that's why a lot of people get into it. But then it's not always the case. That's why we gotta be careful. Uh, one of the things we look at here, uh, around, around the office or the offices we have at leading edge is we always are looking at expense ratios and it's something you need to do if you're going to be investing in anything, either have your financial advisor, make sure they're reading the prospectuses or you are to make sure you know, what those funds are doing.[00:31:06] So. Another thing about index is they have they follow more passive investment strategy. So everyone's talking about passive investment past investment. They don't try to beat the market rather. They try to be the market. That's what indexing is. So it can be a terrific, um, way to industrial money and it can be definitely diversify your portfolio and do all these great things.[00:31:29] But you gotta be okay.   With, , trying to beat the market for the most part. And, and you gotta be okay with that. Um, most index funds, they're not going to beat their market because of obvious reasons. They're just trying to match the market or that index funds.[00:31:44] So index, uh, uh, portfolio and they're just going to trade in and out to match whatever that index is, is tracking. If you're one of these people, you need to be aware that all index funds are created equal Schwab, Vanguard, fidelity BlackRock's I-Shares, uh, state street, spider indexes. They're all.[00:32:02] Well-known but you gotta be careful because, uh, before investing in any fund, you've got to do that research and see what's going on. One of the interesting things I saw when I was a research in this a little bit more big names, BlackRock, JP Morgan, Invesco, Guggenheim partners, and Wells Fargo. All of them have an S and P 500 fund should be pretty low expense ratio.[00:32:24] All of those folks have at least this is his back. As far as the 2018, uh, they all had funds that charge more than 1% expense ratio. Just to track the S and P 500 that's compared to Charles Schwab, you know, and others, others have, I think Fidelity's even got one that doesn't charge anything for, uh, tracking the S and P 500, but swabs is a 0.03%.[00:32:50] So 1%, obviously a hundred compared to three, you do the math on that one. That's pretty easy to do. Uh, one of the worst funds, it's an index fund and you say, Hey, I'm going into index funds and you see right X, S and P 500 C class. Index fund has an expense ratio of 2.3, 3%. That's a ton of money just to track the S and P 500.[00:33:13] So just because you're getting into an index fund doesn't mean, I mean, you're necessarily where you need to be. You got to look at those expense ratios that make sure your financial advisors looking at those now pay more than you need to. What do you guys got on that? Anything, anything to add?[00:33:26] Charlie: [00:33:26] Yeah, I'll tell you what we like.[00:33:28] We like indexes. I mean, they're, they're very tax efficient. They're very low cost, you know, in your riot, Rob, you, you just got to kind of watch out. Um, there are some apps there that are, uh, man, they've got every kind of index inverse, triple inverse, you know, this and that. So, you know, we're pretty conservative when we were using these index funds and it's a very,  contentious,  argument or debate, if you will, inside the nerd industry, , financial services world in that, you know, as an active, as a passive.[00:33:58] And, and you talked about it, Rob, I mean, indexing is, is called passive. And so you're active people and we're going to talk about how you're passive. You don't do anything. There's no way to protect downside risk. That's my favorite. Right? Well, you know, You're right. And they say that because of the index follows that it just tracks that index, whether it goes up or down, but that's why you diversify, you know, back to our, you know, I'm hung up on that today, Rob, as you can tell.[00:34:23] No, no, you're right. That's a weird argument to me. I'm like, well, what are you talking about? Like one person owns one index, you know, of course, you're going to add some in there. You're gonna diversify. That's what provides downside protection.  You gotta be careful.  Passive to me is a little bit of a misnomer because, um, You know, people take that as like, you're just doing nothing.[00:34:42] So, you know, people need to rebalance. People need to think about,  , are they taking the right risk?  When to make trades and when not to, you know, those are some things where,  , passive, I think, people equate that to  sitting on your hands being lazy.[00:34:56] Rob: [00:34:56] What else you guys got? Man. I think[00:34:58] Charlie: [00:34:58] we can have another podcast on active and passive. That's a big one, man. I I'm not even gonna comment on that because it w we could go down another rabbit hole. It's a good topic though.[00:35:08] Rob: [00:35:08] That's a good one. It really is. That's perfect. Good stuff. Well, I'll leave you guys with a quote from Eugene Fama. , I'd compare stock pickers to Austria astrologers, but I don't want to bad mouth astrologers, so[00:35:21]That's it. We've arrived at our final destination. Thank you for joining us here at the power and money guys podcast. If you have any questions, shoot me an email@robertatleadingedgeplanning.com. Of course, if you like to hit the subscribe button. And, uh, so we can reach more people there and we'll leave you with, as Emerson said, the world makes way for those who   know where they are going.[00:35:41] So plan[00:35:42] Charlie: [00:35:42] accordingly we're out.  .Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this Podcast will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 04/21/2021 and are subject to change at any time due to the changes in market or economic conditions. Excerpt: Today we are covering bubbles and indexes, which almost sounds exciting! We discuss what investment bubbles are, are we in a bubble? How would it affect us as investors, why being an envious investor causes one to continuously buy high and sell low, thus underperforming the actual investment we're invested in. Finally, we discuss how diversification can help but is the least "sexy", the most boring ways of investing thus the title "diversification sucks." ### Flight #3: Is a Roth 401(k) or Health Saving Account right for you? Pilot Money Guys: Is a Roth 401(k) or Health Saving Account right for you?Folks, we're going to be talking about 401ks today. I know you're all disappointed we're not talking about taxes again, tax donut holes, and all that good stuff, but we're going to be talking 401ks. Before that lets get into a little airline news.As we're writing this this, it appears that language is currently getting debated on roughly how much of a dollar amount is making its way into the budget reconciliation that big $1.9 trillion economic relief package.It does appear that payroll support for airline workers is likely to make it in. It is not official, but it looks as if some of the folks that are up on Capitol Hill are advocating for this industry to keep its head above water, that would hopefully keep everybody onboard through September of this year.Again, it's a kicking of the can, I'm not here to debate whether how good or bad some of this is, but from the government spending perspective, but I think keeping everybody on board is definitely a positive.While I was at the gym getting buffed this morning, or I should say not getting fat, I saw that United was working with Archer aviation to accelerate production of advanced short haul electric aircraft.How cool is that it says a workout with air mobility company. Archer is part of the airlines broader effort to invest in emerging technologies that decarbonized air travel, whatever they just want to save money. We know that, but anyway, rather than relying on traditional combustion engines, archers electric, vertical takeoff and landing aircraft are designed to use electric motors and have the potential future for air taxi and urban markets. I think its amazing.Let's get into our financial topic.What is a Roth 401k and how does it differentiate itself from a traditional 401k.Roth and traditional?Think about it this way. Uncle Sam is going to get their money on the front end or the backend.So you get to choose which one, which end it is so to speak.Roth, you're going to pay the taxes on the front end - Uncle Sam's getting the money on the front end. You pay taxes and then the money goes into the 401k and then the money is to never be taxed again.Never is a strong word in the financial industry and some people may question, whether that truly will never be taxed again, we can't make those types of guarantees, but that's what the rules and the regulations say at this point. You put money in, that's been taxed, it grows tax-free and then you withdraw in retirement tax rate.That's the Roth.The pretax or non-Roth is the exact opposite. It's deducted from your paycheck. Let's say you make a, just to keep the numbers easy a $100,000. You put $20,000 into a pre-tax, non-Roth 401(k). That essentially is the equivalent of making $80,000, a hundred thousand dollars, less than 20 that you put in the 401k.So therefore, You pay less taxes. However, when you pull that money out of the 401k in retirement, you will then pay tax on that amount.How does that grow? How does the Roth earning get taxed, if you paid your tax upfront for a Roth 401k.All the growth in both of those options are a tax-free growth. Maybe some people say tax deferred growth, maybe more technical way to say that. If you went online and did a calculator and said compare an investment that grows tax-free versus one that is taxed, you're going to get faster growth over time in a tax deferred growth vehicle, like your 401k, like your IRA.Later today, we're going to help people create, essentially tax-free growth in a taxable account. I'm being vague there because you can't exactly do it like you can in a 401k, but you can invest tax efficiently.So we've got this tax-free growth, a Roth 401k. What are the limits? Can we contribute as much as we want? Or what, how much is the amount we can actually contribute to a Roth 401k through our employer.You do get a catch-up if you're over 50, and that is an extra $6,500 now. So if you're 50 or over you get the catch up. Here's something that's important: A lot of people ask us this, “Hey, I'm contributing to my 401k right now. It's February. And but I turn 50 in December. Do I need to do anything to my 401k?”Your company will make that automatic adjustment for you and they know when your birthday is, even if it was December 31st. You don't have to worry about that not getting the catch-up.The only thing you need to make sure though, is that you're contributing the right percentage based on how much you're making. Just make sure that your percentage is adequate to get $27,000 in there.Now, some people ask “Can you contribute to both a Roth IRA and a Roth 401k?”Roth IRA and Roth 401k, the answer is yes. And I'm going to go ahead and expound on that a little bit. One of the major misunderstandings that I've been surprised at is that a lot of people think because they make over a certain amount of money, they cannot contribute to an IRA.That is false. Anyone at any income level can contribute to an IRA. It has to be a non-deductible IRA. Essentially a nondeductible traditional IRA. You can do that at any income. I don't care if you make a million more dollars. So that's the first thing that I think everybody should know.Now whether you should be doing that or not is a different question, but back to your question, yes, you can absolutely contribute to your 401k, whether that be Roth and or Non-Roth, and you can contribute to an IRA. Okay. Those are separate things once through an employer and one is through you personally. You can always still contribute to an after-tax non-deductible IRA.So you can still contribute to a Roth IRA, even if you were contributing to a Roth 401k, and then what if I make too much to contribute directly to my Roth IRA? Can I still contribute to my Roth 401k, even though I'm making pretty good money as a captain of a major legacy airline?You are going to be limited by your income on contributing directly to a Roth IRA. You are not limited by your income on contributing to a Roth 401k. So that is very important distinction there.So the other advantage in using Roth assets is that they don't have required minimum distributions for the most part. I guess if we get technical about it, a Roth 401k, if you keep them with your company after you retired, then they would be subject to required minimum distributions RMDs.What do you have to say about RMDs and Roth IRAs in particular? Is that something you recommend?The Roth is such a great tool that and the Roth 401k, obviously too. It's not a panacea because you're paying taxes right now. These are generalities and each person's situation is different, but we were talking to a single captain. He’s making good money, probably in one of the higher income brackets. So, it may not make sense for him to use a Roth at this point, Roth 401k at this point, cause he's paying taxes right now. So there's some pros and cons you, you gotta think about.As far as the RMDs are concerned, it's a great tool. It’s awesome to not have a requirement of a distribution. Envision yourself at 72 years old, and the government says, “Hey, you have to take this money out and you have to pay taxes on it.”We have clients that are in that situation, and they're not happy about it. It makes people mad and. Especially for our retired military people because they've got this military pension and they might not need to take that much money out. They, they'd probably rather let it stay invested and maybe pass it on to their children, then to be forced to take that RMD out and pay taxes. It is not a pleasant situation.We can plan for that. We can plan for that way in advance. In fact, if you don't plan for it in advance, there's nothing you can do about it if you don't get ahead of that curve. The last thing I'll say here, is that it's really a great estate planning tool because of the secure act that was passed.They got rid of the stretch IRA and we knew that was coming for a long time. The stretch IRA said if I inherited an IRA, I could stretch that out the rest of my life and take very small chunks out every year. Essentially it may just continue to grow in perpetuity.However, they got rid of that. They shrunk it down to 10 years. So now envision you or your children inheriting your taxable 401k or taxable IRA. They are forced to take that out over 10 years which means they're going to be in a higher tax bracket and that tax burden is on them.Sometimes that may make sense. Sometimes it may not, but with a Roth there's no worry about taking something out over 10 years because there's no tax anyway. So that's a really nice estate planning tool.How about, how does the backdoor Roth IRA work?This is a term that gets thrown around a lot, but some people say “that sounds illegal”.It's not illegal. Thankfully, because we do it a lot.Here's how it works. There's a lot of moving parts here, so I'll try to start with the most basic.The most basic is let's say that you have no other IRAs. You subsequently within contribute to an after-tax traditional IRA, because let's say your income limit is too high or your income is too high over the Roth contribution limit. So, you contribute to that after-tax, non-deductible IRA. Then you subsequently you probably want to invest that. At some point down the road, it makes sense to then convert those funds to Roth IRA.Now here's the rule. Anyone, regardless of income can convert a traditional IRA to Roth IRA. That rule was changed in 2010.The other rule that's important to remember is that if you've contributed to an after-tax IRA, you've already paid tax on that money. So that particular money, when converted, will not be taxed twice. So only the money that, let's say you invested and that investment grew, let's say it grew by a $500. That $500 will then be taxable at your ordinary income tax rate.That's the basic thing to remember about the Roth conversion, but in practice, they're very simple to execute. Just be very careful on your tax return to make sure that sequence of events gets documented correctly. The key IRS form there is the form 8606. If you do not document this correctly, you probably will get a letter or a call from the IRS and that's not fun.So, people who might be saying I've got a Roth 401k. I have to pay an RMD when I hit 72. Not, if you transfer it over to a Roth IRA, convert it to a Roth IRA. Then it's not, you don't have any RMDs. Just be aware of the timing there because if you don’t have a Roth IRA opened within five years, you could potentially run into some penalties there.So, you want to open that before you're going to use that money, with enough time that five years has passed. Buts soon as you transfer that money over from the Roth 401k into the Roth IRA, it inherits whatever time the Roth IRA has already had. So, if you had a Roth IRA open for three years, you transfer your Roth 401k money into it only has to sit there for two more years before you can touch it for that.What other vehicles, other than the Roth 401k and Roth IRA, might we use for our money? And it brings up the health savings account.Since we're using three letter acronyms, we'll talk about the HSA.I like to say the the two, three letter agencies I don't want to get a phone call from are the IRS and the FAA.Health savings account. I think there's a little bit of a potential misnomer with a way that you can actually use an HAS. It's more of a health investment account, which I recently started using an HSA. So, we'll talk a little bit about some of the pros and cons of going this route.The first is the biggest and it’s a con. You have to have a high deductible Insurance plan which for many people, is not going to fit for their current family’s situation with how they consume healthcare coverage. You're going to be paying a lower premium. But you're going to have a lot more out of pocket expenses when, depending on your family situation, if you consume lots of healthcare.So that is the biggest hurdle to overcome with adopting an HSA. Secondly, and this is a little bit more nuanced, but it might require a higher cashflow position because you're going to be able to save money and you're going to be spending more money up front.You're going to be spending more cash for any healthcare that you do consume over the course of a year. That might just put more of a burden on your cashflow scenario. So those two things are a couple big hurdles to overcome for some people. And for many, it doesn't make sense to go this route.A health insurance plan, a PPO provided by their employer makes the most amount of sense for them. There's lots of scenarios, and I'm not suggesting everyone should do an HAS, it does make a lot of sense. I think people that fall into the category of maybe they're younger, they're healthier. They're not consuming lots of healthcare currently, and they find themselves in a position where they can afford the extra cashflow bourdon and invest efficiently into their future.Here's why: Charlie was just talking about the differences between a traditional and Roth for both an IRA and a 401k. You get to make a choice whether Uncle Sam takes his share upfront or when you take the money out? The great thing about the HSA is this is the most efficient investment vehicle because you can take whatever you contribute is tax free just like a traditional 401k. You can invest this money through your insurance provider, who will set up an HSA account for you.There's lots of flexibility in how you invest it. And that will grow tax-free over a time. Then when you go to spend it in the future, as long as it's on qualifying health-related expenses, that money is going to be treated tax-free as well.One of the reasons why this makes a lot of sense is that the majority of the healthcare that we consume over the course of our life happens in the last few years of us being on this planet. It can make sense to take that money for healthcare and invest it in your known future healthcare expenses instead of paying higher premiums now for.Again, there are some hurdles for some people in order to do it, but that triple taxed advantage is a very efficient way to grow and invest for your future healthcare consumption.One of the statistics I read was the average couple in 2020 would spend almost $300,000 on medical costs during retirement. So, investing in an HSA is great, tax-free contributions, tax free growth, and then if it qualifies tax-free withdrawals, that's great.If you're looking at $300,000, you're going to want some kind of vehicle to help you with that. I also think that's really important, if by participating in one of these, you defer consuming beneficial care, than it is not a good fit for you.A lot of our audience are retired military folks that are going to have Tri-Care when they get older. That throws a different part in the equation, because you're not going to pay near as much on healthcare as someone who doesn't have that.I've been injured on it before, as you all probably know, I got on the health savings plan and then I broke my neck. I did it, but I did have to pay out of pocket.Here's a couple of quick things I get excited about. Besides just the tax advantages, which are awesome, you can actually treat it like a 401k.What I mean by that is you put your money in there and you've got to keep some cash. In fact, Optum bank requires $2,000 minimum. But then you can invest on top of that.What I did and what some people do is, if my daughter is sick and we go to the 24 hour clinic, I pay $100-$150 bucks out of pocket, and I don't touch my health savings account. I'll leave it alone. Now if there's an expense that starts to make me uncomfortable with my daily budget, then I'll pull out of my health savings account. But I like to let that go as much as possible. And I keep the receipts, keep all the receipts because there's no timeline essentially on reimbursing yourself.So, in other words, I could: Go to the clinic. Pay out of pocket. Keep my receipt and then five years down the road, I could reimburse myself.When I had my accident, I didn't have any money in the health savings account because I just started. I paid out of pocket. Then later on in the year, when I was able to accumulate enough, I literally sent myself money from Optum bank to my personal bank account. I reimbursed myself.The other thing that I'll say is that at age 65, it basically turns into an IRA. If at 65 I've got a hundred grand in my HSA, I'm going to go buy me a new car and pay tax on the withdrawal.The money is taxable but that's after age 65. Prior to that, if you spend it on a car, you are going to incur significant penalties. 20%, if I'm not mistaken and taxes.it's not a “use it or lose it”. It's your money. You always have access to it.Depending on your situation, a Taxable Brokerage account might be a great way to accumulate wealth as well. A lot of people say, “Oh but you don't have the tax advantages” which is true, however, it's not without some merits.There's no contribution limits. So, like we're talking about with the Roth 401k, $19,500, if you're under age 50 and then $6,000 for an IRA. But there's no contribution limits with a brokerage account. It also doesn't matter how much you make. You can always put it in there. You can still contribute to your brokerage account with no penalties for an early withdrawal.A lot of these programs we just talked about, have certain rules. If you withdraw too early, then you're going to have a penalty. Brokerage account, there's no such thing. So you're not going to get a penalty for withdrawing too early, nor will you have required minimum distributions.If you're looking at you accounts in an overview, you might want to have a taxable brokerage account because you can get to it quicker than you can a 401k or IRA.If you hold a security longer than a year, it becomes long-term capital gains. It's going to be taxed at a long-term capital gain rate versus a marginal tax rate.I came up with a little example, try to bear with me here, but for example, let's say you're retired and you need $80,000 to live on.Let's say you only have two accounts. You got a traditional 401k and a brokerage account. Now the traditional 401k will have required minimum distributions and will be taxed at your income rate, your marginal tax rate.In 2021. If you're married, filing jointly, you're going to be taxed on that money at 12% on the $80,000.Conversely, the brokerage account, you have no RMDs. And if you held your security investment for over a year it's long-term capital gains. The long-term capital gains under $80,800 right now is 0%. So, if you pull your funds out from the taxable account, you're not going to be taxed on that.This is where it gets interesting too, because it's a taxable income of 80,000 or less,what does that mean for your gross income? That means your gross income is $80,000 plus at least the standard deduction. If you're married filing jointly, which is where the 80,000 were comes from, then that means your gross income is over a hundred thousand depending on the standard deduction and the inflation adjustment.That's a pretty healthy income and still you're able to get a 0% capital gains tax rate, which is really pretty cool. If you get the math right, you could potentially get a better tax rate.Even if you don't get the 0% tax rate, it's just really nice to have. This tax diversification is really what we're looking for, between the Roth non-Roth health savings account, if it fits your medical situation. And then finally the brokerage, you're just really getting some great tax diversification. You really have a lot of flexibility in retirement to, to significantly reduce the taxes you pay in retirement. It's just opportunities there.I'm glad you brought that up, Charlie, because something that kind of came to mind while you're saying that is when you reduce your overall tax rate.That also helps you for other, I'm thinking about social security here, your social security, right? Although it may be, not that much for some people, it might be a lot for others. If you're reducing that, that taxable income, that's going to lower how much tax you're paying on that social security income as well. Social security is taxed percentages based on different factors, but overall lowering tax in retirement has a multiplier effect, if you will.[/et_pb_text][et_pb_divider _builder_version="4.9.2" _module_preset="default"][/et_pb_divider][et_pb_text _builder_version="4.9.2" _module_preset="default"]Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this Podcast will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 03/31/2021 and are subject to change at any time due to the changes in market or economic conditions. Excerpt: In this episode, we dive into the intricacies of 401ks, HSAs and more. We cover the differences between Roth vs non-Roth 401(k) and what might be right for you. We cover the Health Savings Account and the top things to consider when creating your investment gameplan. ### Flight #2: Kobe Crash and the Biden Tax Plan Pilot Money Guys: Kobe Crash and the Biden Tax Plan Featuring Special Guest Shane Rosenthal!Now the new administration is in, do you want to know more about the Biden tax proposals?In this episode, we talk about the Kobe Bryant helicopter crash with a guest helicopter pilot (Shane Rosenthal) and the potential Biden tax proposals.The discussion delves into spatial disorientation, VFR flying, donut hole Social Security taxes, long-term capital gains, and more! Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this Podcast will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 03/31/2021 and are subject to change at any time due to the changes in market or economic conditions. Excerpt: In this episode, we talk about the Kobe Bryant helicopter crash with a guest helicopter pilot (Shane Rosenthal) and the potential Biden tax proposals. ### Flight #1: The Dollar Ride Pilot Money Guys: The Dollar Ride In this inaugural episode, our financial planner pilots talk about the American Airlines and JetBlue agreement and why all financial planners are not the same. If you are looking to hire a financial advisor and want to know the differences between the various types, this episode is for you. ## Pages ### Part 91/135 Pilots Part 91/135 Pilots Resources and Advice Focused for Part 91/135 Pilots and their Families How We Help Part 91/135 Pilot Families How We Help Part 91/135 pilot families often face unique financial planning challenges due to variable income, diverse employment structures, and limited access to traditional employer-sponsored benefits.Retirement savings options may include a company sponsored 401 (k), SEP IRA, SIMPLE IRA, Solo 401(k), Traditional IRA, Roth IRA, Backdoor Roth IRA, and Health Savings Account (HSA). Navigating these choices, along with insurance and other company benefits, can be complex—especially when plans vary by employer or are sourced independently.At Leading Edge, we help you understand the nuances of each option and determine which strategies best align with your financial goals. Whether you're managing fluctuating cash flow, optimizing for tax efficiency, or preparing for career transitions, we provide personalized guidance to help you execute a plan that supports both your lifestyle and long-term vision.Our team understands the aviation lifestyle and offers tailored support to help you stay financially confident through every stage of your career. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for Part 91/135 Pilots Stay tuned! We are always adding more resources for our clients! Ready to get started? Schedule A Call ### UPS UPS Resources and Advice Focused for UPS Pilots and their Families How We Help UPS Pilot Families How We Help UPS pilot families have access to a range of retirement and health benefit options— including your pre-tax 401 (k), Roth 401 (k), and Backdoor Roth IRA. These plans come with unique contribution rules, company match structures, and strategic considerations that can be difficult to navigate alone.At Leading Edge, we help you understand the nuances of each option and make informed decisions aligned with your financial goals.Additionally, we offer investment management for your UPS 401(k) through BrokerageLink at Fidelity, helping you stay on course with your retirement strategy. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for UPS Pilots Stay tuned! We are always adding more resources for our clients! Ready to get started? Schedule A Call ### FedEx FedEx Resources and Advice Focused for FedEx Pilots and their Families How We Help FedEx Pilot Families How We Help FedEx pilot families have access to a range of retirement and health benefit options— including your pre-tax 401 (k), Roth 401 (k), and Backdoor Roth IRA. These plans come with unique contribution rules, company match structures, and strategic considerations that can be difficult to navigate alone.At Leading Edge, we help you understand the nuances of each option and make informed decisions aligned with your financial goals.We also offer investment management for your FedEx 401(k) through BrokerageLink at Fidelity, helping you stay on course with your retirement strategy. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for FedEx Pilots Stay tuned! We are always adding more resources for our clients! Ready to get started? Schedule A Call ### Other Airline Pilots Airline Pilots Resources and Advice Focused for Airline Pilots and their Families How We Help Airline Pilot Families How We Help Airline pilot families have access to a range of retirement and health benefit options—including a pre-tax and Roth 401 (k), Backdoor Roth, and other airline specific investment options. These plans often come with complex contribution rules, company match structures, and strategic considerations that can be difficult to navigate on your own.At Leading Edge, we help you understand the nuances of each option and make informed decisions aligned with your financial goals. With personalized guidance across retirement, health, and insurance planning, we empower you to make informed decisions that support your career and your family’s future. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for Airline Pilots Ready to get started? Schedule A Call ### United Airlines United Airlines Resources and Advice Focused for Pilots of United Airlines and their Families How We Help United Airlines Pilot Families How We Help United pilot families have access to a range of retirement and health benefit options— including your Pilot Retirement Account Plan (PRAP) 401(k), Retiree Health Account (RHA), Health Reimbursement Account (HRA), and Profit Sharing. These plans come with unique contribution rules, company contributions, and strategic considerations that can be difficult to navigate alone.At Leading Edge, we help you understand the nuances of each option and make informed decisions aligned with your financial goals. We also guide you through United’s complex health benefit offerings to ensure your choices support both your short- and long-term needs.Additionally, we offer investment management for your United Airlines 401(k) through Schwab, helping you stay on course with your retirement strategy. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for United Airlines Pilots Ready to get started? Schedule A Call ### Southwest Airlines Southwest Airlines Resources and Advice Focused for Pilots of Southwest Airlines and their Families How We Help Southwest Airlines Pilot Families How We Help Southwest pilot families have access to a variety of retirement savings options, including your company 401(k), Profit Sharing, 401(a), Excess Benefit, and Top Hat plans. These plans come with unique features—such as company contributions, contribution limits, and tax strategies—that can be complex to navigate. In addition, understanding Southwest’s health benefits and selecting the right insurance options adds another layer of decision-making.At Leading Edge, we help you navigate the nuances of your benefits and build a strategy that fits your financial goals—so you can make confident decisions for your future.We also offer investment management for your Southwest 401k through Schwab, helping you stay on course with your retirement strategy. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for Southwest Airlines Pilots Ready to get started? Schedule A Call ### NetJets/EJM NetJets and Executive Jet Management (EJM) Resources and Advice Focused for NetJets / EJM Pilots and their Families How We Help NetJets and Executive Jet Management (EJM) Pilot Families How We Help NetJets/EJM pilot families have access to several retirement savings options, including your pre-tax 401 (k), Roth 401 (k), and Backdoor Roth IRA. These plans can be complex, especially when factoring in company contributions, contribution limits, and coordination with outside accounts. Navigating health insurance and other company benefits adds another layer of decision-making.At Leading Edge, we help you understand the details of each option and determine how to best align them with your financial goals. Whether you're optimizing for tax efficiency, planning for retirement, or evaluating benefit choices, we provide personalized guidance to help you make confident, informed decisions.We also offer investment management for your NetJets/EJM 401(k) through Schwab, helping you stay on course with your retirement strategy. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for NetJets and EJM Pilots Stay tuned! We are always adding more resources for our clients! Ready to get started? Schedule A Call ### Delta Airlines Delta Air Lines Resources and Advice Focused for Pilots of Delta Air Lines and their Families How We Help Delta Air Lines Pilot Families How We Help Delta pilot families have access to several retirement savings options, including your company 401(k), Market Based Cash Balance Plan (MBCBP), and Mega Backdoor Roth. Due to the complexity of these plans, company contributions, and contribution limits, it’s important for you to understand which combination is right for your specific goals.In addition to retirement planning, we also help Delta pilot families navigate the complex health benefit options and evaluate life insurance choices—such as the Group Variable Universal Life (GVUL)—to ensure your coverage aligns with your family’s needs.At Leading Edge, we go beyond helping you understand these benefits—we guide you in executing a plan that supports your long-term goals with clarity and confidence.We also offer investment management for your Delta 401(k) through BrokerageLink at Fidelity, helping you stay on course with your retirement strategy. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for Delta Air Lines Pilots Stay tuned! We are always adding more resources for our clients! Ready to get started? Schedule A Call ### American Airlines American Airlines Resources and Advice Focused for Pilots of American Airlines and their Families How We Help American Airlines Pilot Families How We Help American pilot families have access to a range of retirement and health benefit options—including the company sponsored 401 (k) (pre-tax and Roth), and Backdoor Roth IRA. This plan includes unique features such as company contributions, contribution limits, and in-service Roth conversions—all of which can be complex to navigate. In addition, understanding and selecting from American’s health benefit options can be equally challenging.At Leading Edge, we help you understand the nuances of each of these benefits and make informed decisions aligned with your financial goals.We also offer investment management for your American Airlines 401(k) through BrokerageLink at Fidelity, helping you stay on course with your retirement strategy. Get Started Navigate Health Emergencies with Confidence Aviation professionals face unique stressors – especially when it comes to maintaining their medical certification. Even minor health issues can lead to major financial consequences if you’re not properly prepared. As aviation families ourselves, we understand the stakes and the stress. Pilots have several ways to protect their income and their families from the financial impact of health emergencies. These include: Short-term disability insurance Long-term disability insurance Loss of license coverage Accrued sick time Emergency savings We work with pilot families to evaluate their options and create a tailored plan that fits their unique needs. And when a health emergency does occur, we’re here to help you navigate the financial side—so you can focus on recovery. Resources for American Airlines Pilots Stay tuned! We are always adding more resources for our clients! Ready to get started? Schedule A Call ### Podcast The Pilot Money Guys Podcast The Pilot Money Guys discuss financial topics that matter to everyone in aviation, along with airline news and engaging aviation stories. The show is brought to you by fellow professional pilots and financial planners. It also welcomes a diverse range of guest hosts and topics, offering fresh perspectives in every episode. You can listen to the Pilot Money Guys anywhere you get your podcasts, including Apple Podcasts and Spotify. Search ... Results See all results Category Select... Charlie Kevin Mark Pilot Money Guys Pilots Rob Uncategorized ### Explore Schedule A Consultation Let's start the conversation. Book A Free Call We’d love to learn more about your financial goals and how we can help you achieve them. Schedule a complimentary consultation with one of our advisors to discuss your current situation, explore our planning process, and see if we’re the right fit for your needs. Our consultations are designed to give you clarity and direction — no pressure, no obligation. Simply choose a time that works best for you below. Already a client? Schedule here. Charlie Mattingly, CFP®, MBA If you have a time-sensitive issue, please call me directly at 865-328-4969 Book Now Kevin Gormley, CFP®, CPA, PFS If you have a time-sensitive issue, please call me directly at 865-217-7779 Book Now Andrew Christopher, CFA®, MSF If you have a time-sensitive issue, please call me directly at 901-664-3753 Book Now Nolan Clark, CFP®, B.S. (Finance) If you have a time-sensitive issue, please call me directly at 270-545-5880 Book Now ### Careers Careers Explore employment opportunities at Leading Edge Financial Planning. Current Openings See Full Job Description Apply Now See Full Job Description Apply Now Our Core Values At Leading Edge Financial Planning, we believe in a better approach to objective financial advice. Using a fee-only, no-commission business model focused specifically on meeting your goals, we provide unbiased fiduciary advice that is at all times in your best interest. Authenticity We bring our whole selves, act with integrity, and let our genuine care show in every client interaction.  Service We put others first, serving teammates and clients alike with humility and a servant’s heart.  Humility We recognize our strengths and limitations, always seeking to learn so we can better support each other and those we serve.  Abundance We choose optimism and gratitude, sharing generously with our clients and one another. Excellence We hold ourselves to the highest standards in every detail, striving for expertise so clients receive our very best. Ready to get started? Schedule A Call ### High-Income Individuals High-Income Individuals and Families Take control of your financial future. How We Help We turn your financial success into a comfortable and secure lifestyle. We understand and appreciate how hard you’ve worked to achieve success and accumulate wealth. But there’s a difference between high income and high net worth. You need a financial partner who can translate your income into a comfortable and secure lifestyle. At Leading Edge Financial Planning, we help you gain control over your financial planning, investments and taxes. We Understand Your Unique Financial Challenges... High tax obligations that gnaw away at your earnings A limited number of earning years Multiple financial priorities competing for your income A busy life that allows little time for financial planning The stress of unexpected situations that may derail your earning ability A Tax-Efficient Portfolio to Help Maximize Your Net Worth Did you know that if you earn more than $200,000 per year, taxes are likely your highest expense? If you’re not viewing every financial decision through a tax-efficient lens, you’re probably paying too much to Uncle Sam.At Leading Edge Financial Planning, our in-house CPA helps identify tax savings opportunities across all of your accounts and investments, and we incorporate a variety of tax strategies into your customized financial plan. We also work with your personal accountant to help ensure these strategies are integrated into your annual tax return. Our process is as follows: Step One We start by gaining an understanding of your current investments and their tax status. We identify which investments are considered tax preferred and which are subject to high tax rates.  Step Two Based on your specific financial situation, we determine whether it makes sense to put more assets in tax-deferred accounts or keep assets in the taxable accounts. Tax-deferred accounts may include traditional IRAs, Roth IRAs, 529 plans and low-cost variable annuities.  Step Three Our strategy is to minimize your tax obligations by putting tax-heavy assets into tax-deferred or tax-free accounts and tax-preferred assets into taxable accounts. Step Four We maximize the utilization of low-turnover strategies within taxable accounts. A mutual fund or ETF with a high turnover rate may provide a decent return, but that often comes with a high tax obligation. Passively managed index funds and EFTs can provide tax efficiencies in taxable accounts. Step Five Next, we consider tax-preferred investments such as master limited partnerships, municipal bonds and rental real estate, which can help offset investment income and provide a tax depreciation shield.  Step Six We incorporate charitable giving strategies to maximize both your deduction and the amount received by the charity.  Ready to get started? Schedule A Call ### Commercial Pilots Commercial Pilots We help pilots create, grow and protect wealth so they can have as much fun in retirement as they did flying airplanes! How We Help We are uniquely positioned to help you navigate the challenges of your profession because we face the same challenges. Our experienced professionals help commercial pilots navigate the unique challenges of their professional and personal lives. Three of our financial planners are commercial pilots who provide insight into the lifestyle, income and career path obstacles you face in achieving your financial goals. Your financial plan is designed with the following challenges in mind: Uncertain Industry The industry uncertainty facing pilots makes it absolutely vital to have a financial plan in place. We help you plan for multiple scenarios by implementing tax-efficient investment and asset protection strategies in order to provide you with the confidence of knowing your family has planned for the unexpected. Mandatory Retirement With a mandatory retirement age of 65, you don’t have the option of extending your career if you realize too late that you haven’t saved enough. We focus on accelerating your retirement savings with this end date in mind. Our goal is to help you establish a lifetime income stream to support your desired lifestyle in retirement and provide a financial legacy for those who matter most. Medical Certification Requirements You may face losing your job if you are diagnosed with a disqualifying medical condition during your annual FAA medical examination. Unfortunately, disqualifying conditions occur frequently and often catch pilots unprepared. We offer solutions to support your family in the event of an unexpected medical condition. High Income High-income earners have unique financial considerations related to tax planning, estate planning, saving and investing. We help maximize your savings and investments while considering how any decisions impact your tax and estate planning. Our goal is to help you maintain your desired lifestyle, both today and long into the future. Limited Time You spend much of your time in the air and away from family and friends. This makes your time with loved ones a precious commodity. Don’t waste it worrying about your finances. Let Leading Edge Financial Planning serve as your partner in planning for your financial future.  Ready to get started? Schedule A Call ### Links Schedule a Time to Chat Take the Pilot Wealth Index Quiz Read Before Fly Newsletter Leading Edge YouTube The Pilot Money Guys Podcast The Pilot Money Guys Podcast (Spotify) The Pilot Money Guys Podcast (Apple podcasts) Pilot Money Guys Instagram Pilot and High-Income Blog Submit a Suggestion ### Newsletter Email ### Subscribe ### Team ### Legal Disclosures Important Disclaimers Leading Edge Financial Planning, LLC ("LEFP") is a Registered Investment Advisor ("RIA") located in the State of Tennessee. LEFP provides investment advisory and related services for clients nationally. LEFP will maintain all applicable registration and licenses as required by the various states in which LEFP conducts business, as applicable. LEFP renders individualized responses to persons in a particular state only after complying with all regulatory requirements or pursuant to an applicable state exemption or exclusion. Terms of Use Please read these terms and conditions of use (“Terms”) carefully before using the website located at https://pilotmoneyguyspodcast.com/ (“Website”) or any of the information or services provided by LEFP (collectively “LEFP,” “we,” “our,” “us”) in connection with the website. By using the website, you acknowledge that you have read and understood these Terms and accept to be legally bound by them. If you do not accept and agree to these Terms, you are not an authorized user of the website or any of the information or services provided by LEFP in connection with the website and should promptly terminate all use thereof. The terms “you” and “your” mean you and any entity you may represent in connection with the use of the website. You may use your browser to download or print a copy of these Terms for your records. LEFP reserves the right to change, modify, add or remove portions of these Terms at any time for any reason. We suggest that you review these Terms periodically for changes. Such changes shall be effective immediately upon posting. You acknowledge that by accessing our website after we have posted changes to these Terms, you agree to these Terms as modified. These Terms were last updated on 11/21/2023. Risk Disclosure Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that the future performance of any specific investment or investment strategy will be profitable. Asset allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss. The performance of the asset allocation strategies depends on the underlying investments. This website is intended to provide general information about LEFP and its services. It is not intended to offer or deliver investment advice in any way. Information regarding investment services is provided solely to gain an understanding of our investment philosophy and our strategies and to be able to contact us for further information. Market data, articles, and other content on this website are based on generally-available information and are believed to be reliable. LEFP does not guarantee the accuracy of the information contained on this website. The information is of a general nature and should not be construed as investment advice. Please remember that it remains your responsibility to advise LEFP, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. LEFP will provide all prospective clients with a copy of our current Form ADV, Part 2A ("Disclosure Brochure"), Form ADV Part 2B, which is the Brochure Supplement for each advisory person supporting a particular client, and the Form ADV Part 3 (“Client Relationship Summary” or “Form CRS”). You may obtain a copy of these disclosures on the U.S. Securities and Exchange Commission’s (“SEC”) website at https://adviserinfo.sec.gov/firm/summary/27714, or you may Contact Us to request a free copy via .pdf or hardcopy. Privacy Disclosures LEFP is committed to safeguarding the use of the personal information of our Clients (also referred to as “you” and “your”) that we obtain as your Investment Advisor, as described in our Privacy Policy. LEFP does not collect personal nonpublic information through this website; however, the Advisor may collect information from you on application forms, agreements, profile or investment policy statements, and other documents received or processed in relation to services we provide. We also may collect information from other sources. We do not respond to "do not track" requests because we do not track you over time or across third-party websites to provide targeted advertising. We may track you across our website to help us improve our content. We may use "cookies" and similar online technologies to keep and sometimes track information about you regarding your usage of our website. Cookies are small data files sent to your browser or related software from a Web server and stored on your device. Cookies help us to collect information about your usage of our website, including date and time of visits, pages viewed, amount of time spent on our sites, or general information about the device used to access the site, such as the browser used. You can refuse to store or delete cookies by configuring your web browser settings. Most browsers and mobile devices have their own settings to manage cookies. If you refuse a cookie when on our website or delete cookies, you may experience some inconvenience in using our website, such as having to re-configure preferences. When you are on this website, you may have the opportunity to click through to other websites, including websites operated by unaffiliated third parties. These sites may collect nonpublic personal information about you. We do not control sites operated by these entities and are not responsible for the information practices of these sites. This Privacy Policy does not address the information practices of other websites. The privacy policies of websites operated by third parties are located on those sites. For a copy of the LEFP Privacy Policy, please Contact Us. Email Disclosures LEFP often communicates with its clients and prospective clients through electronic mail (“email”) and other electronic means. Your privacy and security are very important to us. LEFP makes every effort to ensure that email communications do not contain sensitive information. We remind our clients and others not to send LEFP private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery. PLEASE NOTE: LEFP does not accept trading or money movement instructions via email. As a registered investment advisor, LEFP's emails may be subject to inspection by the Chief Compliance Officer (“CCO”) of LEFP or the securities regulators. If you have received an email from LEFP in error, we ask that you contact the sender and destroy the email and its contents. If you have any questions regarding our email policies, please Contact Us. Social Websites LEFP may utilize third-party websites, including social media websites, blogs, and other interactive content. LEFP considers all interactions with clients, prospective clients, and the general public on these sites to be advertisements under the securities regulations. As such, LEFP generally retains copies of information that LEFP or third parties may contribute to such sites. This information is subject to review and inspection by the CCO of LEFP or the securities regulators. Information provided on these sites is for informational and/or educational purposes only. It is not, in any way, to be considered investment advice nor a recommendation of any investment product. Advice may only be provided by LEFP’s advisory persons after entering into an advisory agreement and providing LEFP with all requested background and account information. If you have any questions regarding our policies, please Contact Us. ### Single New ### Client Resources ### Pricing Pricing Simplified and transparent compensation methods to match your needs Fees and Expenses The financial industry has made fees mysterious and sometimes impossible for clients to discern. It’s very simple; if fees are not absolutely transparent you are probably paying too much. There are many great ways to minimize the cost of investing. The method of compensation should be clear to you before you sign our financial planning agreement. Blended Rate Fee Structure Managed Assets Annual Rate $1 – $250,000 1.00% $250,001 – $1,000,000 0.95% $1,000,001 – $2,000,000 0.85% $2,000,001 – $3,000,000 0.75% $3,000,001 – $5,000,000 0.65% $5,000,001 – $7,000,000 0.55% $7,000,001 and Above Negotiable Our wealth management services include both financial planning and investment management. Fees are based on a percentage of the assets we directly manage, using a tiered rate system. This means different portions of your assets are charged at varying rates, with higher asset levels benefiting from lower rates. The annual fee is divided into quarterly payments for convenience. We generally require a minimum annual fee of $2,400 to effectively deliver our services. Ready to get started? Schedule A Call ### FAQs Frequently Asked Questions Considering a Financial Adviser? Here are some great questions we can help you answer. What You Need to Know Before Choosing an Investment Adviser The Securities and Exchange Commission (SEC) receives many questions about investment advisers—what they are and how to go about choosing one. This page answers some of the typical questions we receive from investors about investment advisers. This Q&A is for the benefit of investors. You should not rely on it to determine if you need to register as an investment adviser. What is an investment adviser? An investment adviser is an individual or a firm that is in the business of giving advice about securities to clients. For instance, individuals or firms that receive compensation for giving advice on investing in stocks, bonds, mutual funds, or exchange traded funds are investment advisers. Some investment advisers manage portfolios of securities What is the difference between an investment adviser and a financial planner? Most financial planners are investment advisers, but not all investment advisers are financial planners. Some financial planners assess every aspect of your financial life—including saving, investments, insurance, taxes, retirement, and estate planning—and help you develop a detailed strategy or financial plan for meeting all your financial goals. Others call themselves financial planners, but they may only be able to recommend that you invest in a narrow range of products, and sometimes products that aren’t securities. Before you hire any financial professional, you should know exactly what services you need, what services the professional can deliver, any limitations on what they can recommend, what services you’re paying for, how much those services cost, and how the adviser or planner gets paid. What makes financial planning for pilots different from other professions? Pilots face unique challenges such as mandatory retirement age, fluctuating industry stability, and strict medical certification requirements. These factors require specialized planning to protect your long-term financial goals. How are you compensated for your services? We are a fee-only fiduciary firm, which means we are paid directly by our clients for our advice. We do not earn commissions or have hidden agendas—our advice is always in your best interest. What does it mean that you are a fiduciary? As fiduciaries, we are legally and ethically bound to put your interests first. Every recommendation we make is focused on helping you achieve your goals, not ours. What is your financial planning process like? We follow a proven step-by-step process: understanding your goals, building a personalized plan, and meeting regularly to adjust as your life and circumstances change. Where are you located, and can you work with clients in other states? We are based in Knoxville, TN, but we work with clients nationwide through secure video conferencing. An investment adviser is an individual or a firm that is in the business of giving advice about securities to clients. For instance, individuals or firms that receive compensation for giving advice on investing in stocks, bonds, mutual funds, or exchange traded funds are investment advisers. Some investment advisers manage portfolios of securities Most financial planners are investment advisers, but not all investment advisers are financial planners. Some financial planners assess every aspect of your financial life—including saving, investments, insurance, taxes, retirement, and estate planning—and help you develop a detailed strategy or financial plan for meeting all your financial goals. Others call themselves financial planners, but they may only be able to recommend that you invest in a narrow range of products, and sometimes products that aren’t securities. Before you hire any financial professional, you should know exactly what services you need, what services the professional can deliver, any limitations on what they can recommend, what services you’re paying for, how much those services cost, and how the adviser or planner gets paid. Pilots face unique challenges such as mandatory retirement age, fluctuating industry stability, and strict medical certification requirements. These factors require specialized planning to protect your long-term financial goals. We are a fee-only fiduciary firm, which means we are paid directly by our clients for our advice. We do not earn commissions or have hidden agendas—our advice is always in your best interest. As fiduciaries, we are legally and ethically bound to put your interests first. Every recommendation we make is focused on helping you achieve your goals, not ours. We follow a proven step-by-step process: understanding your goals, building a personalized plan, and meeting regularly to adjust as your life and circumstances change. We are based in Knoxville, TN, but we work with clients nationwide through secure video conferencing. Schedule A Call How to Select an Investment Professional SEC Guidelines Linked Below! Get the Facts The SEC’s Roadmap to Saving and Investing Invest Wisely Advice from your securities regulators Questions You should ask about your investments ...and what to do if you run into problems Schedule A Call Ready to get started? Schedule A Call ### Who We Serve Who We Serve We serve you, wherever you are. Our clients live all across the nation. Our Clients One of the most important roles we serve is to be a sounding board for you at all times to ensure your financial decisions align with your family’s goals and values. We provide thorough research and well-thought-out recommendations for most every situation that could affect your financial life. We will always put your interests first in our relationship and in the financial planning process. This is the true definition of a fiduciary standard. Commercial Pilots We are uniquely positioned to help you navigate the challenges of your profession because we face the same challenges. Learn More High-Income Individuals and Families We turn your financial success into a comfortable and secure lifestyle. A Tax-Efficient Portfolio to Help Maximize Your Net Worth. Learn More Proudly Serving Clients Across The Nation Add Your Tooltip Text Here Schedule A Call Ready to get started? Schedule A Call ### Who We Are About Us Delivering leading edge advice focused on helping clients. How We Help We deliver leading edge advice focused on helping clients arrive at their personal financial destination. Leading Edge Financial Planning is a fee-only, fiduciary advisory firm focused on helping clients achieve their long-term financial goals. We believe the best way to do so is by fostering authentic relationships built on a foundation of trust.We take the time to get to know you, your current situation, your hopes and dreams for the future, and any challenges you may face on your journey toward financial freedom. We use this knowledge to build a customized financial plan specifically designed to help you achieve your ideal lifestyle, both while you’re working and during retirement.Our team includes experienced professionals dedicated to helping you achieve your version of success, including commercial pilots, a CPA and CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals.Put simply, we serve as your partner in achieving your version of financial success. Meet The Team Charlie Mattingly, CFP®, MBA Principal, CEO, Senior Financial Planner Phone-alt Envelope Read Bio Originally from Louisville, Kentucky, Charlie earned his Bachelor of Science degree in Mechanical Engineering from the University of Tennessee. He then entered the United States Air Force where he served for ten years as an officer and F-16 fighter pilot.While serving in the Air Force Charlie shared his passion for personal financial planning by administering money management classes to his fellow military service men and women. After his ten years in the Air Force, Charlie wanted to begin a new career helping others understand and thrive in personal finance so he earned his Master of Business Administration in Financial Planning from California Lutheran University. Charlie also earned the CERTIFIED FINANCIAL PLANNER™ (CFP®) professional designation in 2012. In addition, Charlie was hired by Southwest Airlines in 2007. After flying commercially for 13 years, Charlie jumped at the opportunity to take the VSP (Voluntary Separation Program) in 2020 to focus on helping his clients.Charlie’s joy in life is to truly understand each client’s unique situation and their family’s goals and dreams for the future. His goal is to take the worry out of personal finance. He works hard to be worthy of his clients’ trust, providing absolute transparency, a high level of integrity and objective advice. His prior life and work experiences as an Air Force officer and pilot have helped him understand the discipline, knowledge and leadership it takes to be an effective financial advisor for his clients.Charlie enjoys watching his three girls grow up, (much too fast), spending quality time with his wife Leisa, reading, and taking care of the horse farm with any time left over.  Originally from Louisville, Kentucky, Charlie earned his Bachelor of Science degree in Mechanical Engineering from the University of Tennessee. He then entered the United States Air Force where he served for ten years as an officer and F-16 fighter pilot.While serving in the Air Force Charlie shared his passion for personal financial planning by administering money management classes to his fellow military service men and women. After his ten years in the Air Force, Charlie wanted to begin a new career helping others understand and thrive in personal finance so he earned his Master of Business Administration in Financial Planning from California Lutheran University. Charlie also earned the CERTIFIED FINANCIAL PLANNER™ (CFP®) professional designation in 2012. In addition, Charlie was hired by Southwest Airlines in 2007. After flying commercially for 13 years, Charlie jumped at the opportunity to take the VSP (Voluntary Separation Program) in 2020 to focus on helping his clients.Charlie’s joy in life is to truly understand each client’s unique situation and their family’s goals and dreams for the future. His goal is to take the worry out of personal finance. He works hard to be worthy of his clients’ trust, providing absolute transparency, a high level of integrity and objective advice. His prior life and work experiences as an Air Force officer and pilot have helped him understand the discipline, knowledge and leadership it takes to be an effective financial advisor for his clients.Charlie enjoys watching his three girls grow up, (much too fast), spending quality time with his wife Leisa, reading, and taking care of the horse farm with any time left over.  Kevin Gormley, CFP®, CPA, PFS Principal, CFO, Senior Financial Planner Phone-alt Envelope Lisa Rosenthal, BSBA (Management) COO & CCO Phone-alt Envelope Andrew Christopher, CFA®, MSF Financial Planner, CIO Phone-alt Envelope Betsy Wheeler, BS/MS Director of Client Services Phone-alt Envelope Nolan Clark, CFP®, B.S. (Finance) Associate Financial Planner Phone-alt Envelope Nidhi Grover, BS (Accounting), E.A. Director of Tax Services Phone-alt Envelope Jon Schultz, BS (Aeronautics) Paraplanner Phone-alt Envelope Brenda Hill, B.S.B.A (Financial Planning) Paraplanner Phone-alt Envelope Kelly Broderick, BS/MS Client Service & Operations Associate Phone-alt Envelope Mark Covell, MBA, BSME Financial Planner Phone-alt Envelope Jason Reagan, CFP®, RICP Financial Planner Phone-alt Envelope Whitney Abuzeid, B.S. (Intl Business) Client Service Associate Phone-alt Envelope Amelie Riendl, AFC®, PMP®, ME Client Service & Marketing Associate Phone-alt Envelope Our Core Values At Leading Edge Financial Planning, we believe in a better approach to objective financial advice. Using a fee-only, no-commission business model focused specifically on meeting your goals, we provide unbiased fiduciary advice that is at all times in your best interest. Authenticity We bring our whole selves, act with integrity, and let our genuine care show in every client interaction.  Service We put others first, serving teammates and clients alike with humility and a servant’s heart.  Humility We recognize our strengths and limitations, always seeking to learn so we can better support each other and those we serve.  Abundance We choose optimism and gratitude, sharing generously with our clients and one another. Excellence We hold ourselves to the highest standards in every detail, striving for expertise so clients receive our very best. Schedule A Call Ready to get started? Schedule A Call ### Single Blog ### What We Offer What We Do "Planning is bringing the future into the present so you can do something about it now." -Alan Lakein Financial Planning We can bring significant value to your family's financial life. Written plans help you accomplish your lifestyle goals and objectives. Independent studies repeatedly show that people who take the time to develop a written financial plan WILL do better. Furthermore, you will enjoy greater peace of mind knowing that you and your family are on the right path to accomplishing your financial goals. Pilots High Income Clients Our Services Financial Planning A financial plan is your roadmap to the future. We build a customized strategy that integrates investments, retirement, taxes, estate, and education planning. As life unfolds, we update your plan to keep you on track toward your goals. Investment Management Your portfolio is tailored to your goals, time horizon, and risk tolerance. We build diversified, tax-efficient strategies across all accounts, then actively monitor and adjust as your life and priorities change. Retirement Income Planning The key question before retirement is, “Will I have enough?” We create income strategies that shift from growth to stability as you approach retirement. Factoring in Social Security, lifestyle, and goals, we provide a plan that adapts as your needs evolve. College Planning With tuition costs rising faster than inflation, early planning is essential. We design savings strategies that minimize taxes and maximize your ability to meet education goals for children or grandchildren. Our approach helps you stay ahead of rising costs with confidence. Proactive Tax Planning Taxes are often the largest expense for high-income earners. Our in-house tax professional works with you to uncover savings strategies and structure investments for tax efficiency. We coordinate with your accountant so your plan and returns are fully aligned. Estate Planning Financial success isn’t just about security today — it’s about leaving a lasting legacy. We help identify the right estate documents for your situation and connect you with trusted professionals. Our goal is to ensure your wishes are carried out in a tax-efficient way for your loved ones and charities. Ready to get started? Schedule A Call ### Book Meetings Book A Client Meeting Not a client yet? Click here to schedule a consultation instead. Charlie Mattingly, CFP®, MBA If you have a time-sensitive issue, please call me directly at 865-328-4969 Book Now Kevin Gormley, CFP®, CPA, PFS If you have a time-sensitive issue, please call me directly at 865-217-7779 Book Now Jason Reagan, CFP®, RICP If you have a time-sensitive issue, please call me directly at 865-268-8832 Book Now Mark Covell, MBA, BSME If you have a time-sensitive issue, please call me directly at 530-539-1499 Book Now Andrew Christopher, CFA®, MSF If you have a time-sensitive issue, please call me directly at 901-664-3753 Book Now Lisa Rosenthal, BSBA (Management) If you have a time-sensitive issue, please call me directly at 858-449-8277 Book Now Nolan Clark, CFP®, B.S. (Finance) If you have a time-sensitive issue, please call me directly at 270-545-5880 Book Now Betsy Wheeler, BS/MS If you have a time-sensitive issue, please call me directly at 865-328-4974 Book Now Brenda Hill, B.S.B.A (Financial Planning) If you have a time-sensitive issue, please call me directly at 434-477-9297 Book Now Jon Schultz, BS (Aeronautics) If you have a time-sensitive issue, please call me directly at 865-684-4622 Book Now Nidhi Grover, BS (Accounting), E.A. If you have a time-sensitive issue, please call me directly at 609-745-0832 Book Now Ready to get started? Schedule A Call ### Contact Us Get In Touch Ready to take the first step on the path to financial freedom? Contact Us Contact us to schedule a complimentary, no-obligation phone consultation and learn more about how we help you achieve your personal financial goals. 6921 Office Park Circle Knoxville, TN 37909 (865) 240-2292 info@pilotmoneyguyspodcast.com Let's Connect Facebook Linkedin Vimeo Youtube Spotify Instagram Send Us A Message LinkedInThis field is for validation purposes and should be left unchanged.Name* First Last Email* Phone*How did you hear about Leading Edge?*CommentConsent* By clicking this box you agree to receive SMS text messages from Leading Edge Financial PlanningBy submitting this form, you agree to receive SMS text messages from Leading Edge Financial Planning. We promise not to spam you, and we will not share or sell your information. Please refer to our ADV Part 2a for details of our Privacy Policy (link can be found below). ### Blogs Welcome to the Blog Trusted insight to help you achieve your goals. Read on. Ready to get started? Schedule A Call ### High income clients ### Home Leading The Way To Your Financial Success We specialize in serving professional pilots and other high-income individuals and families, helping you navigate wealth with clarity, confidence, and purpose. What We Do Schedule A Call Specialized Expertise Financial strategies tailored to pilots and other high-income families, built on years of niche experience. Fiduciary & Objective As a fee-only fiduciary, your best interest always comes first — no commissions, no hidden agenda. Proven Process A clear, step-by-step planning approach that helps you stay on course through every stage of life. About Us At Leading Edge Financial Planning, we believe in a better approach to objective financial advice. Using a fee-only, no-commission business model focused specifically on meeting your goals, we provide unbiased fiduciary advice that is at all times in your best interest. Who We Are Our Clients Who We Serve Pilots High Income Earners Aviation professionals face unique financial challenges. A mandatory retirement date, an uncertain industry and medical certification requirements all have the potential to derail your plans. We navigate these challenges to help you achieve your long-term financial objectives. Learn More You’ve worked hard to achieve career success. Let us translate that success into a comfortable and secure lifestyle. We provide you with the confidence of knowing your financial planning, investments and taxes are under control so you can worry less and focus on doing the things you enjoy most. Learn More Aviation professionals face unique financial challenges. A mandatory retirement date, an uncertain industry and medical certification requirements all have the potential to derail your plans. We navigate these challenges to help you achieve your long-term financial objectives. Learn More You’ve worked hard to achieve career success. Let us translate that success into a comfortable and secure lifestyle. We provide you with the confidence of knowing your financial planning, investments and taxes are under control so you can worry less and focus on doing the things you enjoy most. Learn More Our Services What We Do Retirement Planning Investment Management Financial Planning Estate Planning Tax Planning College Planning We help you establish a steady stream of monthly income in retirement to provide you with the confidence of knowing your retirement is secure. Learn More Your investment portfolio is specifically designed to help you achieve your long-term objectives. Once established, it is continuously monitored and adjusted as your life and financial situation evolve. Learn More A financial plan serves as a blueprint in helping you achieve your financial goals with confidence. Learn More We understand that financial success is about more than achieving security for yourself. It's also about leaving a legacy for those who matter most. Learn More Our team includes an in-house CPA who works with you to identify and implement tax savings strategies across your entire financial life. Learn More We implement tax-efficient strategies to help you optimize the funds available to cover education expenses for your children or grandchildren. Learn More We help you establish a steady stream of monthly income in retirement to provide you with the confidence of knowing your retirement is secure. Learn More Your investment portfolio is specifically designed to help you achieve your long-term objectives. Once established, it is continuously monitored and adjusted as your life and financial situation evolve. Learn More A financial plan serves as a blueprint in helping you achieve your financial goals with confidence. Learn More We understand that financial success is about more than achieving security for yourself. It's also about leaving a legacy for those who matter most. Learn More Our team includes an in-house CPA who works with you to identify and implement tax savings strategies across your entire financial life. Learn More We implement tax-efficient strategies to help you optimize the funds available to cover education expenses for your children or grandchildren. Learn More Frequently Asked Questions What makes financial planning for pilots different from other professions? Pilots face unique challenges such as mandatory retirement age, fluctuating industry stability, and strict medical certification requirements. These factors require specialized planning to protect your long-term financial goals. How are you compensated for your services? We are a fee-only fiduciary firm, which means we are paid directly by our clients for our advice. We do not earn commissions or have hidden agendas—our advice is always in your best interest. What does it mean that you are a fiduciary? As fiduciaries, we are legally and ethically bound to put your interests first. Every recommendation we make is focused on helping you achieve your goals, not ours. What is your financial planning process like? We follow a proven step-by-step process: understanding your goals, building a personalized plan, and meeting regularly to adjust as your life and circumstances change. Where are you located, and can you work with clients in other states? We are based in Knoxville, TN, but we work with clients nationwide through secure video conferencing. Pilots face unique challenges such as mandatory retirement age, fluctuating industry stability, and strict medical certification requirements. These factors require specialized planning to protect your long-term financial goals. We are a fee-only fiduciary firm, which means we are paid directly by our clients for our advice. We do not earn commissions or have hidden agendas—our advice is always in your best interest. As fiduciaries, we are legally and ethically bound to put your interests first. Every recommendation we make is focused on helping you achieve your goals, not ours. We follow a proven step-by-step process: understanding your goals, building a personalized plan, and meeting regularly to adjust as your life and circumstances change. We are based in Knoxville, TN, but we work with clients nationwide through secure video conferencing. See More FAQs Our Purpose Our purpose is to empower people to find peace, clarity, and freedom by connecting their money to what truly matters to them.  Our Vision At Leading Edge Financial Planning, our vision is to be the trusted leader in serving professional pilots, celebrated for our outstanding reputation, a thriving company culture centered on well-being, and commitment to values that inspire excellence and attract the best talent.  Ready to get started? Schedule A Call ## What We Offer ### Estate Planning We understand that financial success is about more than achieving security for yourself, it’s also about leaving a legacy for those who matter most. A solid estate plan plays a key role in ensuring a lasting legacy for your loved ones and favorite charities. We identify the necessary estate planning documents based on your particular situation and objectives and connect you with estate planning professionals who can help ensure your generational planning goals are executed in a tax-efficient manner. Excerpt: We understand that financial success is about more than achieving security for yourself. It’s also about leaving a legacy for those who matter most. ### Proactive Tax Planning Taxes may be one of the single biggest expenses faced by those who make more than $200,000 per year. That is why our team is by supported by an in-house tax professional who will work with you to identify and implement tax savings strategies across your entire financial life. We structure your investments to minimize capital gains taxes, and we harvest investment losses to offset gains. We also work with your accountant to ensure your tax strategy is fully integrated across your financial plan and annual income tax returns. Excerpt: Our team includes an in-house CPA who works with you to identify and implement tax savings strategies across your entire financial life. ### College Planning Over the last 20 years, college tuition costs have grown at a rate that far outpaces inflation and wage increases, posing significant financial challenges for many families. Giving these rapidly rising costs, it’s no wonder many parents are concerned about how they will help their children afford higher education. If you have a goal of funding higher education expenses for a child or grandchild, it’s important to start planning early. We will incorporate a range of tools and strategies to help your plan for educational expenses. Based on your specific college planning goals, we will implement a savings strategy that minimizes taxes and optimizes your ability to offset rising tuition expenses. Excerpt: We implement tax-efficient strategies to help you optimize the funds available to cover education expenses for your children or grandchildren. ### Retirement Income Planning Perhaps the biggest question clients ask as they near retirement is, “Will I have enough money to maintain my current lifestyle?” We help you confidently answer “yes” to this question by establishing a steady stream of retirement income. To do so, we gradually shift your portfolio from growth-focused to income-focused as you near retirement. Once you’ve retired, we implement a risk appropriate strategy to cover your monthly expenses. This strategy takes into account your Social Security benefits in light of your marital status, life expectancy, retirement goals, income requirements, and more. We then re-evaluate your plan on a regular basis to ensure it continues to meet your changing needs. We aim to provide you with the confidence of knowing you are well positioned for a secure retirement. Excerpt: We help you establish a steady stream of monthly income in retirement to provide you with the confidence of knowing your retirement is secure. ### Investment Management Your investment portfolio is specifically designed to help you achieve your long-term objectives. We consider all of your accounts as we build a tax-efficient, diversified portfolio that addresses your current financial situation, personal and professional challenges, income needs in retirement, investment time horizon, risk tolerance and more. We determine an asset allocation that meets your current needs and goals for the future. We then continuously monitor and adjust your investments as your life and financial situation evolve over time. Excerpt: Your investment portfolio is specifically designed to help you achieve your long-term objectives. Once established, it is continuously monitored and adjusted as your life and financial situation evolve. ### Financial Planning A financial plan serves as a blueprint in helping you achieve your financial goals. We work with you to build a customized financial plan specifically focused on your vision for the future. This financial plan incorporates a wide range of financial strategies related to investment management, retirement income planning, college planning, tax planning, estate planning and more. We constantly revisit and reevaluate your custom plan to help ensure it continues to address the challenges and milestones of your evolving financial life. Excerpt: A financial plan serves as a blueprint in helping you achieve your financial goals with confidence. ## Our Teams ### Charlie Mattingly Originally from Louisville, Kentucky, Charlie earned his Bachelor of Science degree in Mechanical Engineering from the University of Tennessee. He then entered the United States Air Force where he served for ten years as an officer and F-16 fighter pilot. While serving in the Air Force Charlie shared his passion for personal financial planning by administering money management classes to his fellow military service men and women. After his ten years in the Air Force, Charlie wanted to begin a new career helping others understand and thrive in personal finance so he earned his Master of Business Administration in Financial Planning from California Lutheran University. Charlie also earned the CERTIFIED FINANCIAL PLANNER™ (CFP®) professional designation in 2012. In addition, Charlie was hired by Southwest Airlines in 2007. After flying commercially for 13 years, Charlie jumped at the opportunity to take the VSP (Voluntary Separation Program) in 2020 to focus on helping his clients. Charlie’s joy in life is to truly understand each client’s unique situation and their family’s goals and dreams for the future. His goal is to take the worry out of personal finance. He works hard to be worthy of his clients’ trust, providing absolute transparency, a high level of integrity and objective advice. His prior life and work experiences as an Air Force officer and pilot have helped him understand the discipline, knowledge and leadership it takes to be an effective financial advisor for his clients. Charlie enjoys watching his three girls grow up, (much too fast), spending quality time with his wife Leisa, reading, and taking care of the horse farm with any time left over. ### Kevin Gormley Kevin specializes in working with high-income earners who need assistance in managing company incentive plans, maximizing their investments, and minimizing taxes. He also specializes in cash flow planning for pre-retirees and retirees, and helping them make planning decisions regarding their Social Security benefits. Kevin holds the CERTIFIED FINANCIAL PLANNER™ (CFP®) and the Personal Financial Specialist (PFS) professional designations. Kevin is an active Certified Public Accountant (CPA) in the state of Tennessee. In addition to Leading Edge Financial Planning, Kevin was an Adjunct Professor and taught a Personal Finance class at Maryville College for the J term in January, 2016 and January, 2017. Teaching financial concepts and helping younger people get off to a great financial start is something Kevin enjoys! Kevin is a member of the American Institute of Certified Public Accountants (AICPA), the Tennessee Society of Certified Public Accountants (TSCPA), and is a Board member on the East Tennessee Financial Planning Association (FPA). He graduated with a Bachelor of Science Degree in Business with an emphasis in Finance from Susquehanna University in Pennsylvania. He was a four-year letter winner in football, played club Rugby, and was a member of Lambda Chi Alpha Fraternity. He received his Master of Science in Accounting (MaaC) with a focus on public accounting in 2012 from Strayer University. Prior to working in financial planning, Kevin spent 18 years in Pharmaceutical Sales, Training and Management. Kevin lives in Knoxville with his wife, Jade, and their two sons. ### Lisa Rosenthal Lisa Rosenthal is the dynamic force propelling our business operations forward in her role as Chief Operating Officer. She plays a pivotal role in maintaining our organizational compass and delivers comprehensive business support to Leading Edge Financial Planning. With a Bachelor's Degree in Business Management and Marketing from the University of Colorado (Go Buffs!), Lisa brings a wealth of experience to her position. Before joining Leading Edge, she honed her skills through diverse professional experiences, serving as a seasoned human resources generalist, a strategic marketing associate, and a proficient project manager. Lisa possesses an uncanny knack for organization and a genuine love for all things data-related, particularly spreadsheets - yes, you read that right! Originally from Colorado, Lisa's life journey has been punctuated by her husband's career as a Marine Corps pilot. Now that he's retired and working in the airline industry, they've decided to call the picturesque state of Wisconsin their home. Alongside their children, their family includes two dogs (a ball-centric Labrador and a quirky Anatolian Shepherd), along with her office companion, Panzer the cat. Beyond her professional endeavors, Lisa enjoys traveling, hiking, skiing, gardening, and supporting her children in their various activities. Her unwavering dedication to both her professional and personal life exemplifies her commitment to excellence. As Chief Operating Officer, Lisa plays a crucial role in ensuring the seamless operation of Leading Edge Financial Planning's services and supports our clients' financial well-being. ### Andrew Christopher Originally from Akron, Ohio, Andy earned his Bachelor of Science in Political Science from the United States Naval Academy. He then entered flight school and served for ten years on active duty as an officer and F/A-18 Super Hornet pilot. Andy continues to serve in the Navy Reserves. He earned his Master of Science in Finance from Georgetown University’s McDonough School of Business and holds the designation of a CFA® charterholder. After leaving the Navy, Andy transitioned into private wealth management and consulting, partnering with clients, and learning the craft of financial planning. As a Lead Planner at Leading Edge, Andy’s primary interest is the intersection of the science of finance and his client’s personal financial well-being and unique planning needs. He recognizes that everyone’s financial outlook and situation is different. With that perspective, he loves diving into the details to develop customized planning solutions. Andy also has a passion for teaching and is an Executive in Residence at Georgetown University’s MS in Finance (MSF) program where he advises and mentors MSF students. Additionally, he is a part-time F-35 contract simulator instructor pilot at Marine Corps Air Station Miramar, teaching newly “winged” Naval Aviators. Andy currently lives in San Diego, CA with his wife, Brittany, and young son. As a Northeast Ohio sport fan, he is perennially disappointed in his team’s season. ### Betsy Wheeler Originally from the suburbs of Chicago, Illinois, Betsy earned her Bachelor of Science in Exercise Science and Master of Science in Kinesiology from the University of Tennessee, Knoxville. Betsy obtained an athletic scholarship competing on the Women’s Division I Intercollegiate Swim Team. Prior to her recent career change, Betsy worked 15 years in healthcare. Betsy collaborated with physicians, pharmacists, nurse practitioners, and physician assistants to decrease risk of adverse outcomes.  Betsy has been a client with Leading Edge Financial Planning since 2015 and is very excited to join the team. Betsy is now focused on improving client lives as a Paraplanner. When she is not studying to become a financial planner and IRS Enrolled Agent, you can find her with family and friends - wake surfing, hiking, and of course laughing. She is blessed to have a family that values family, hard work, and charitable giving. ### Nolan Clark Born and raised in Owensboro, Kentucky, Nolan earned his Bachelor of Science degree in Finance, with a Personal Financial Planning Concentration from Western Kentucky University (CERTIFIED FINANCIAL PLANNER® Board Registered Program). Prior to joining Leading Edge, Nolan has worked with two other firms in the Financial Services Industry since his sophomore year of college. In addition to Leading Edge Financial Planning, Nolan has served as President of The Financial Planning Association (FPA), volunteer for Junior Achievement, and is an active member at his local Church. Nolan lives in Owensboro, KY with his wife, Clare, and their young son. Nolan enjoys spending quality time with his family, going on hikes, walks, and any other activities that allow him to enjoy the outdoors with others. Excerpt: Born and raised in Owensboro, Kentucky, Nolan earned his Bachelor of Science degree in Finance, with a Personal Financial Planning Concentration from Western Kentucky University (CERTIFIED FINANCIAL PLANNER® Board Registered Program). Prior to joining Leading Edge, Nolan has worked with two other firms in the Financial Services Industry since his sophomore year of college. In addition to Leading Edge Financial Planning, Nolan has served as President of The Financial Planning Association (FPA), volunteer for Junior Achievement, and is an active member at his local Church. Nolan lives in Owensboro, KY with his wife, Clare, and their young son. Nolan enjoys spending quality time with his family, going on hikes, walks, and any other activities that allow him to enjoy the outdoors with others. ### Nidhi Grover Nidhi previously worked as a master tax advisor with H&R Block/Block Advisors for 10 years and is an Enrolled Agent (EA). Nidhi holds a Bachelor's degree from Osmania University, India and specialized in accounting. She has also specialized in US income tax. She enjoys working with clients to get the most from their taxes and reach their financial goals. Nidhi volunteers every Friday evening in community related events and loves to travel. She has visited 12 national parks and looks forward to going to many more. She lives in Princeton, NJ with her husband, teen son and their Labrador dog. ### Jon Schultz Originally from Lancaster, Pennsylvania, Jon earned his Bachelor of Science degree in Aeronautics from Liberty University. He is currently pursuing his CERTIFIED FINANCIAL PLANNER™ (CFP®) certification. Before joining Leading Edge Financial Planning, Jon spent five years in the aviation industry, beginning his career in aerial survey work, collaborating with NASA and other notable organizations. He later transitioned to flying private jets, where he focused on delivering exceptional client experiences. While serving as a Captain at Flexjet, Jon developed medical issues that led him to pursue a career in financial planning, where he brings the same dedication and attention to detail that defined his aviation career. Jon lives in Raleigh, North Carolina, where he enjoys spending time with his family, exploring his passion for board games, 3D printing, and connecting with friends. He also values charitable giving and actively seeks opportunities to give back through volunteer work. ### Brenda Hill Brenda is originally from Brazil and moved to Virginia for college, where she’s been ever since. She earned a Bachelor of Science in Business Administration with a focus on Financial Planning and recently passed the CFP® exam. Over the course of her career, Brenda has worked in a variety of roles, from Paraplanner to Financial Planning Analyst for advisors across the country, gaining valuable experience in the financial planning industry. Now, as a Paraplanner at Leading Edge, Brenda supports financial advisors by preparing financial plans, analyzing cases, and ensuring everything is accurate and ready for clients. Brenda’s passionate about continuous learning, understanding the psychology of financial planning, and helping clients bring their goals to life. She loves creating a seamless experience for clients and focusing on comprehensive financial planning. When she’s not working, Brenda loves spending time with her family, playing beach volleyball, watching college hockey, and reading. She lives with her husband and two young sons. And for a fun fact - Brenda is a national champion in Brazilian jiu-jitsu, though she earned the title when she was a 13-year-old girl with no competition in her category. Still, she’ll take the medal with a smile! ### Kelly Broderick Kelly is originally from Pennsylvania and earned her bachelor’s degree from Syracuse University, where she was a member of the Women’s Rowing Team. She went on to earn a master’s degree in Exercise Science from Western Washington University. Before joining the Leading Edge team, Kelly’s professional journey included roles in education, fitness, and client support—each one strengthening her passion for helping others and keeping things running smoothly behind the scenes. She spent nearly two decades supporting her husband’s Navy career at duty stations across the U.S., as well as in Bahrain and Japan. During that time, Kelly also volunteered with a non-profit organization that provides financial assistance to service members and their families. Now settled back in the Philadelphia area, Kelly and her husband enjoy traveling, updating their 100+ year-old home, and skiing with their four kids. Her ability to adapt, organize, and connect with people continues to shine through in both her personal and professional life. Excerpt: Kelly Broderick, CSA & Operations Associate at Leading Edge Financial Planning ### Mark Covell Mark is a dynamic and versatile financial planner with eighteen years of professional experience in aviation and finance. A former Marine Corps fighter pilot (retired Major) and current American Airlines pilot; Mark has joined Leading Edge Financial Planning to help others discover what is possible in their lives and create a pathway to reach what is most important to them. After growing up in South Florida, Mark studied Mechanical Engineering at Georgia Tech and then joined the Marine Corps. He flew the F/A-18 Hornet on active duty and then the C-12 King Air in the reserves, while also serving as an Aviation Safety Officer for multiple commands. After active duty service, he earned his Master in Business Administration at the University of California, San Diego. While working on his MBA, Mark discovered opportunities to improve outcomes and reduce risk in the Healthcare industry. He worked in consulting and then marketing for multiple spine surgery medical device companies. Using risk management and safety concepts from aviation, he collaborated with surgeons to create new products and procedures to reduce medical errors during surgery and improve patient outcomes. Mark is now focused on improving lives as an Investment Advisor Representative. He lives in South Lake Tahoe, CA with his wife Adriana raising one young daughter. When not helping clients or studying to become a CERTIFIED FINANCIAL PLANNER™, you can find Mark outdoors with his family, skiing, snowboarding and mountain biking in the Sierra Nevada mountains. ### Jason Reagan Originally from Annandale, VA (just outside Washington, D.C.), Jason earned his Bachelor of Science degree in Civil Engineering from the University of Tennessee. Jason was an Army ROTC scholarship cadet at UT and was commissioned as a Second Lieutenant upon graduation. After completing the Engineer Officer Basic Course at Ft Leonard Wood, MO, he joined the Army Reserve and obtained his Master of Science degree in Civil Engineering from Virginia Tech and began work as a consulting engineer. During this time, Jason developed a passion for flying, earning his Private Pilot license in 1994. He later decided to leave his engineering career, and in 1999, Jason applied for a branch transfer. He joined the Air Force Reserve where he went to Air Force Pilot Training and flew the C-5 Galaxy and other aircraft. He retired as a Lt Col in 2018 after 25 years of total service. During his time in the military, Jason developed a strong interest in the financial markets and financial planning, in particular. He completed the Certified Financial Planner certification program at Rice University in Houston, TX in 2012 while on active duty orders. After completion of his orders in 2013, he moved to TN and worked as a financial advisor at a large brokerage firm and earned his CFP designation in 2016. He later left that firm as he wanted to work with an organization where he could be a true fiduciary. Jason found that opportunity with Leading Edge Financial Planning. Jason lives in Wears Valley with his wife, Jill, and their 2 children, where they try to spend as much time outdoors as possible. They own a Beech Debonair which he uses for personal travel and animal rescue flights. Jason is also currently a pilot for NetJets. ### Whitney Abuzeid Whitney is originally from Beaufort, SC, and graduated from the College of Charleston with a degree in International Business and German language. Whitney's career journey prior to joining the Leading Edge team has been diverse, spanning the fields of logistics, manufacturing and project management but one thing has remained constant: her love for data and spreadsheets. Throughout these experiences, she also played a pivotal role in supporting her husband's 14 year military career, all while raising their four young boys! Whitney serves as PTO president, is actively involved in their church and volunteers with Habitat for Humanity. She currently resides in the upstate of South Carolina and when she's not busy managing her boys' busy sports schedules, she enjoys traveling, hiking and home renovation projects. Her husband, a captain with American Airlines, shares her love for adventure, and together they love to explore new destinations whenever time allows. ### Amelie Riendl ## Service Areas ### High-Income Individuals and Families Making and maintaining a high income means you face unique financial challenges, including: High tax obligations that gnaw away at your earnings A limited number of earning years Multiple financial priorities competing for your income A busy life that allows little time for financial planning The stress of unexpected situations that may derail your earning ability A Tax-Efficient Portfolio to Help Maximize Your Net Worth Did you know that if you earn more than $200,000 per year, taxes are likely your highest expense? If you’re not viewing every financial decision through a tax-efficient lens, you’re probably paying too much to Uncle Sam. At Leading Edge Financial Planning, our in-house CPA helps identify tax savings opportunities across all of your accounts and investments, and we incorporate a variety of tax strategies into your customized financial plan. We also work with your personal accountant to help ensure these strategies are integrated into your annual tax return. Our process is as follows: Excerpt: We turn your financial success into a comfortable and secure lifestyle. A Tax-Efficient Portfolio to Help Maximize Your Net Worth. ### Commercial Pilots We are uniquely positioned to help you navigate the challenges of your profession because we face the same challenges. Our experienced professionals help commercial pilots navigate the unique challenges of their professional and personal lives. Three of our financial planners are commercial pilots who provide insight into the lifestyle, income and career path obstacles you face in achieving your financial goals. Your financial plan is designed with the following challenges in mind: Excerpt: We are uniquely positioned to help you navigate the challenges of your profession because we face the same challenges.