Podcast Ep. 17: Investing In Your Life
Invest In Your Life Podcast
Episode 17: Investing In Your Life
Invest in your life! That's the name of the show, but what am I really talking about here? Investing in your life isn't just about money, it's about investing your time, attention and inner peace in creating leverage to build a great life where you're not simply trading time for money.
FULL EPISODE TRANSCRIPTION
00:04 Welcome to the Invest In Your Life Podcast, the show where we explore the connection between personal growth and personal finance. My name is Patrick King, and in each episode, we'll talk about what you can do to live a life that's truly rich.
00:29 Don't take this the wrong way, but I am not giving you advice. I only give advice to clients who have hired me to be their fiduciary financial advisor. If you're not one of those folks, then just consider this to be helpful tips and information and be sure to consult with your financial advisor, your attorney, your CPA, your which doctor or your mom before you try this at home.
01:01 Hello everybody and welcome to the show. I've got a great episode for you today. What the heck do I mean by investing in your life? Anyway, that's today's topic. It's the name of the show, but what am I really talking about here? I'm going to dive into that, but first I want to tell you about The No Bullshit Guide To Investing. You know, I'm often approached by folks, especially who are just starting out in life and they maybe aren't at a point where they can hire a financial advisor like me to help them with their investments. And they're always curious about what's the best place to just get started with investing. You know, and I've always been a little frustrated that I haven't figured out a way yet to help these folks in a way that makes sense for my business with the amount of time that I would have to put into that, you know?
01:56 So to that end, what I've done is created an online course called The No Bullshit Guide To Investing. And a for a limited time, I'm giving it away for free to my podcast listeners. There's over an hour and a half of video content there along with get-started guides available for download. And even if you don't have millions to invest like a lot of my clients do, the underlying principles of investing are still the same. And for this, all I ask in return is, number one, your candid feedback about the course. You know, this is my first time creating an online course. So there may indeed be some bullshit in there. And if that's the case, I want to hear about it from you. And the second thing that I ask is that you tell to people about the podcast. I’m trying to grow the podcast and find more folks to reach out there. So that's what I ask. That's it. So in order to get the online course, go to www.investinyourlifepodcast.com and click over to the resources section when you're there. Go ahead and choose The No Bullshit Guide To Investing and use the promo code TELL2. All caps, TELL2 to access the course for free. And I hope you enjoy it. All right, let's get the show started.
03:31 Okay. It's gratitude time right now. So my gratitude for this week is it's official. Transformative Financial is officially two years old on July 1st and it's been a lot of fun. It's been a great ride and I can't wait to see what the next a year or two years holds for me. So I'm very, very grateful to have been in business for two years. A lot of folks say that most businesses don't last one year, and so here I am at two and things are going strong. Love it. That's my gratitude for today, so it's a very big thing for me to be grateful for.
04:12 All right, let's jump into this thing. The topic of the day. This week's topic is investing in your life. It's the name of the show, but what the heck do I mean? Well, let's get started with a definition of investing. And that definition is, “the act or process of expending resources to achieve rewards.” The act or process of expending resources to achieve rewards. Now, when it comes to investing, we almost always assume that resource is money. That doesn't necessarily have to be the case. There are many things that are sometimes more valuable than money. Those being your time, your attention or focus and your inner peace or happiness. We assume that all of these things, time, attention and inner peace are to be traded for money or vice versa.
05:20 And we all accept the saying that “time is money”, right? Time is money, but often that's a bad trade. You can always make more money, but time is so much more scarce for all of us. If I can encourage you to get out of the game of trading time for money, that'd be fantastic. It's not always easy. It's easier said than done, right? But if you can create leverage in our life, man, now we're really cooking, right?
05:55 So where can you invest your money, your time, your attention, and even your inner peace to get compound returns in those areas? That's kind of the focus of investing in your life that I'm trying to create around in this podcast. And you know, as financial planners, we're really, really good at telling you how the fixed-pie mentality, that scarcity mentality, will wind up down the road for you in life. How does your retirement look based on your finite earnings, your finite savings, the finite time you have on this earth? Yeah, that can get a little sticky sometimes we don't really do a good job when it comes to helping you take risks that may decrease your net worth over the short run and increase your time, attention and inner peace. Yeah, we just don't do a good job at that. It's hard.
07:02 It's hard to put that on a spreadsheet. It's hard to do a Monte Carlo analysis when it comes to taking risks around improving your life. Why? Because it's not easy to track the ROI. It's just not easy. You know, as in traditional investing, when you put resources at risk to achieve rewards, they may not always come. There's always a chance that you don't get paid off for the risks that you take in life or in investing. You know? And that's what keeps so many people from taking those risks, from investing in their life. Don't misinterpret what I'm saying here. I'm all about taking managed risks and all about creating a plan if you want to take a risk and invest in your life in some fashion. You know, I remember the old Monte Python skit where the accountant goes and talks to a career counselor and wants to immediately change from being an accountant to a lion tamer, right?
08:10 So, that's a bit extreme, But you know, maybe you volunteer at the zoo, maybe you go back and get a degree in zoology and over time, you know, we can create a plan where you're a lion tamer, whatever it needs to be. So, I'm all about creating a plan. I'm all about being strategic about it. And just like investing your money, the returns may seem small early on. And just like compounding your investments, amazing things can happen over time. They may start slowly, but over time, amazing things can happen. So, what do I mean? What are some great examples of investing in your life? First of all, starting a business. How about going on that marriage retreat? Signing up for that 5K? Taking a photography class that you've always wanted to take? Volunteering for that cause in your community that you're passionate about?
09:15 This isn't a dress rehearsal, folks. We've all got a limited time on this earth and I want you to use it to make your life rich. So where are the areas that you can invest in your life right now? I'd love to hear from you. Shoot me an email at email@example.com and tell me what are the areas of your life where you feel like you need to invest? Not necessarily money, but it could be money. Where could you put money towards creating a better life for yourself? All right. That's the topic of the day for today, folks.
10:08 Time for Q&A. Today's question comes from a recent conversation I had with a gentleman around retirement planning. Did you know that, if your spouse has turned a hobby into a business that's their sole income source, they can open a SEP IRA or an Individual 401(k) and save way, way, way more money every year than you could into just a normal IRA. Just to give a background, this gentleman's spouse has a side business that's her sole income producing activity right now. Having that side business gives her the opportunity to put way more aside in retirement savings than a normal IRA. Just to give you an idea of how much we're talking here in 2019, you can put $56,000 into a SEP IRA per year versus $6,000 for a traditional IRA.
11:13 That's an extra $50,000 that you don't have to pay taxes on this year, folks! You're going to have to pay taxes when it comes out later, but it's huge savings opportunity that a lot of people don't know about. And, yeah, look into that. So, if you've got a spouse that has turned a hobby into a viable business, give me shout. There are plenty of other opportunities alongside saving into a SEP IRA or individual 401(k). So yeah, give me a shout and happy to talk with you about that. So that's the Q&A for today.
11:54 Pura Vida the time folks. My Pura Vida this week is I'm heading to Charleston. Beautiful Charleston, South Carolina, for July 4th, getting the heck out of Atlanta. I’m not going to run the Peachtree this year. A friend of mine is going to take my bib and and run with it. Gosh, I'm not sure I could handle 10 kilometers in this heat right now. So, going down there, excited to do that. Charleston's beautiful. We’re going to go see the Yacht Rock Revue at the Music Farm. Which, of all bands, the Atlanta-based cover band is the one we're going to see. But it should be a lot of fun. I'm super, super excited about it. Charleston's beautiful and it just haven’t been enough. You know, I grew up in South Carolina, went to Charleston plenty of times as a kid and have just not done that as an adult. So, I'm happy to head back down there and that's my Pura Vida.
12:55 Okay folks, that's a show for today. Thank you for listening. If you enjoy the show, would you do me a favor and pop on to iTunes and leave a review? If you leave a review, it's going to help me find a whole lot more listeners. If you think people actually need to listen to this thing, help me out and do that for me. If you've got questions, hit me up, firstname.lastname@example.org. Check out the website, www.investinyourlifepodcast.com. Click on the resources area. Find The No Bullshit Guide To Investing. For podcast listeners, it's free for a limited time. TELL2 is the promo code to get that for free. If you've got any issues with that, I’d love to hear from you. Again, thanks for listening. That's the show this week. Until next time, cheers. Thank you for joining me today. To find out more and get access to my free financial resources visit, www.investinyourlifepodcast.com. The thoughts and opinions expressed here are my own and or for general information only. They are not intended to be recommendations or specific advice for anybody. I'm not a doctor or a licensed therapist, so please consult with your healthcare provider if you have any issues regarding your physical or mental health. Any investment performance. This referenced here is historical and of course has no guarantee of future results. Last but not least, the Easter bunny isn't real.