Episodios

  • 443: Teaching Personal Finance to Your Kids
    Jul 7 2024
    My dad is a wise man. Like many teenagers, I didn’t always think he was. Growing up, he didn’t say much. He wasn’t the kind of dad who was keen to talk to me much about life. But when he did, I realized decades later, that he was usually right. I remember my dad buying a lot of real estate when I was a kid. Most of the houses and small multifamily units he bought looked pretty ugly to me. So I asked him how he chose his buildings. “Cash flow”, he told me. I didn’t know what he was talking about and didn’t really care but years later the words “cash flow” became serious buzzwords as Robert Kiyosaki released Rich Dad Poor Dad. And, as it turns out, cash flow is indeed the most important element when it comes to buying real estate. Another time, I remember him asking me why I wanted to go to medical school. He said if I wanted to make money I should be doing real estate, not medicine. I was appalled that he would dissuade his own son from becoming a doctor. But in hindsight, I would also probably warn my kids against medical school as a path to financial prosperity in the future. Finally, I remember during the late 90s, when I was in medical school in Chicago, Alan Greenspan raised interest rates rapidly. My dad had a lot of floating debt and ended up losing a lot of money. He told me to beware of floating debt. And of course, he couldn’t be more right about that one considering what has happened to the real estate markets throughout the country over the past two years. Looking back, I wish he had taught me more. But those were different times and parental relationships in immigrant families were quite different than the kind of relationship I have with my children today. However, I think that it is still the case that most parents undervalue teaching their children about personal finance. Perhaps it’s because they don’t know much about it themselves. Maybe it’s just not that much fun to talk about. Nevertheless, it is something that I think all of us parents should take a step back and consider what kind of financial education our children are getting at home and what we can do to help them be better equipped for the future. My guest today took that message seriously enough that he wrote a book on personal finance with his own daughters. Make sure to tune in to this week’s Wealth Formula Podcast as Alpesh Parmar takes us down his own journey of educating his own children on money matters.
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    29 m
  • Tax-Saving Strategies for High W-2 Earners
    Jul 5 2024
    The first step to stop trading time for money and start building wealth is to figure out how to pay less taxes. Here are two real estate strategies to save on taxes for W-2 employees.
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    5 m
  • 442: Lane Kawaoka on Real Estate and Life
    Jun 30 2024
    What do you do when you’re not happy with the way things are? That’s a question I have been asking myself a lot lately. In my case, I’m talking about life outside of business and real estate. You see, I’ve been divorced for a few years now and I have still not really rebuilt my life since then. When I have my kids, it all makes sense. It’s about being with them. Last weekend we played four square, badminton and threw around a baseball. I’m pretty sure I had more fun than they did. But when I’m not with them, I sometimes feel like I live in a 7500-square-foot luxury jail. You see, I work from home and really don’t have any reason to leave the house. Every morning I work out. Maybe I go on a hike or I lift weights secretly hoping that bigger muscles will solve my social problems. Sure I have some friends but most of them are married and busy with their own families. The dating scene in Santa Barbara has been remarkably bad and so… I’m still single. The bottom line is that my social life needs a facelift. I’ve been thinking about this a lot lately. I don’t know about you, but I spent so much of my life engineering a successful career and virtually no time working on my life outside of it. A lot of guys get away with that and let their wives handle the social stuff. Well, I don’t have one of those so I have to fix the problem myself. Somehow. But how? It occurred to me the other day that I should start looking at my social life the same way I look at business. What did I do to become successful in my professional life? Thinking back, I kept seeing a similar pattern. I would decide what I want to do and somehow make it happen by physical movement—even if it didn’t make sense. Somehow, that movement itself seemed to make it happen. Let me tell you a story to illustrate. As you know, I was a neurosurgery resident for about a year and a half at the University of Michigan before I decided I was done with that kind of lifestyle and quit the program. It was the dead of winter in Ann Arbor and I suddenly found myself without direction. I decided to do some rotations on some of the other surgical specialty teams at the hospital and ultimately decided to move from Neurosurgery to a specialty called Otolaryngology-Head and Neck surgery—basically head and neck surgery of everything except the brain and spinal cord. To be clear, I wasn’t passionate about this new speciality. I decided to do it because the hours just seemed better and it seemed like most of the professors had pretty good lifestyles. Now, I just had to figure out how I was going to get myself a residency position. This was a difficult task. I was looking for a second-year position in a program somewhere in the country where someone had, for whatever reason, left a vacancy for me. Most programs only had 2-3 residents per year to begin with. It’s a small specialty. I didn’t have a clear place to start, so I decided just to put myself out there and see what would happen. I chose the top 10 programs in the country and wrote letters (not emails) to their chairmen. One of those programs was the University of California, San Francisco (UCSF). In case you don’t know, UCSF is one of the top hospitals in the world. For me, getting a spot at UCSF would be like hitting the lottery. Beyond the reputation of the hospital, my sister lived in San Francisco and I really loved the idea of moving there. I had had enough of being in a small college town in the Midwest. So I sent those letters out. A week later, I was sitting in the hospital library looking at programs on the internet when it occurred to me that I had no reason to be in Michigan anymore. I had an impulse to drop everything and fly to San Francisco. So I turned my internet search over to orbitz.com and looked up the next flight to San Francisco. It was leaving in 3 hours from Columbus—just enough time for me to drive there. So I went home, grabbed my stuff and headed to the airport. I landed in San Francisco just a few hours later. And, when the plane was taxiing, I turned on my phone and was shocked to see a text message from Dr.David Eisele, then Chairman of the Head and Neck Surgery Department at UCSF. In response to my letter, he was inviting me to interview for an unexpected vacancy in his program. I went to see him the next day and he offered me the job. Now you can call that coincidence, but the chances of all this happening randomly seem ridiculously small to me. I felt like somehow, I had willed this to happen by putting those letters in the mail and by physically moving myself to San Francisco. And if this story sounds crazy to you, I’ve got a lot more where that came from. Ask me about them next time you see me. I don’t know how to explain these stories, but I’ve got a lot of them. So my challenge now is trying to use this same kind of energy to give myself a social life! It’s a lot harder than professional stuff but maybe it will work. I’ll let...
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    40 m
  • Does Money Buy You Happiness?
    Jun 28 2024
    Does it really?
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    3 m
  • 441: News of the Week 06/26/24
    Jun 26 2024
    In this conversation, Buck and Zulfe Ali discuss various topics including liability insurance, the economy, and money market funds. They highlight the importance of reviewing and updating insurance policies, the impact of consumer confidence on the economy, and the rising prices in the residential home market. They also explain the difference between money market funds and money market accounts, and the potential risks and returns associated with each.
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    25 m
  • 440: What You Need to Know About Liability Insurance
    Jun 23 2024
    Oh man…we are getting really sexy with topics on this show! On this week’s episode of Wealth Formula Podcast, we are going to talk about liability insurance: malpractice insurance, property insurance—all that kind of stuff. I know this doesn’t sound exciting, but do you know the five different parts of an insurance policy and what part is generally the one that will screw you over? I didn’t think so. Here’s my suggestion. Grab your property insurance policy and follow along with the show. I haven’t read mine and you probably haven’t read yours either. But this is stuff you need to know a little bit about because if you have to change something or get a new policy, now’s the time to do it. Liability insurance is your first line of asset protection so make sure you have a grasp on it. This show will give you a nice place to start and it’s actually pretty interesting. 04:06 Insurance 101 05:22 The 5 Main Parts of Insurance 10:29 How to Look for the Right Insurance Policy 13:19 How to Deal with Claim Adjuster 17:35 What Should You Be Asking When Buying Insurance 20:27 Why Property Insurance is Skyrocketing
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    31 m
  • The Big Career Change You've Always Wanted to Make
    Jun 21 2024
    Dr. Jonny Kim managed three impressive career changes going from Navy Seal, to doctor, to NASA astronaut and he did it all by the age of 37. What's your excuse?
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    3 m
  • 439: News of the Week 06/19/24
    Jun 19 2024
    Commentary on Sunday Podcast – Mark Skousen from FreedomFest General Overview: Mark Skousen made various comments on different topics, some of which were agreeable, while others were debatable. Inflation: Agreed: Different people experience different levels of inflation depending on their basket of goods and services. Disagreed: Inflation is not at a 10% rate, even considering shadow inflation (reduction in quantity or quality of goods and services for the same price). Global Warming: Disagreed: Global warming is not a manufactured crisis; clear data supports that the earth is warming and the climate is changing. Notable Data: The 10 most recent years are the warmest in recorded history, with emerging implications (e.g., rising insurance rates in Florida). Electric Vehicles (EVs): Neutral: While there's a debate on whether government mandates on the auto industry for EV production are reasonable, the necessity of such mandates is questioned. Political Spending: Agreed: Both Trump and Biden are big spenders. Disagreed: Democrats are not trying to get away with it, as they have explicitly stated intentions to raise taxes. Opinion: Republicans, by wanting to spend more and tax less, could be seen as trying to get away with increased spending without corresponding revenue. Update on Economy and Markets May CPI: Released data showed a 3.3% price increase on an annual basis, flat compared to April. First flat month-over-month CPI since May 2020, before the Fed's rate hike cycle began. FOMC June Meeting: Rates left unchanged. Signal of likely only one rate cut in 2024, down from previously anticipated two cuts. Stock Market: Continued rally, reaching new highs. Treasury and Mortgage Rates: 10-year treasury decreased by 20 bps to 4.2%. 30-year fixed mortgage rate around 7%. Bitcoin: Down by about 4% from the previous week, exhibiting volatility over the past 2-3 weeks. What are Structured Notes? Definition: Hybrid securities combining a bond and a derivative component linked to an underlier (e.g., S&P 500 index, commodity) designed to target a predefined investment goal. Characteristics: Generally unsecured debt obligations of issuers like investment banks. Performance linked to the underlying asset. Tailored to express a specific market view or meet a particular investment objective. Potential to achieve yield, growth, or principal protection. Risks: Creditworthiness: Dependent on the issuer's creditworthiness. Performance: Target returns are not guaranteed if the underlying asset underperforms. Holding Period: Designed to be held to maturity. Complexity: Financial instruments are complex and hard to understand.
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    28 m