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If You Want Financial Freedom You Can’t Ignore This (Parts 1 and 2)

We avoided estate planning for a long time; here’s why you shouldn’t. Without an estate plan, you’re giving over the control of what happens to all your assets to others. In part one of this two-part series, Eric + Jason talk about what they did to – finally – get their respective plans in place. Topics discussed in this episode include the elements of estate planning, why people delay + how to get started, living trusts, and taking care of your heirs. Don’t be like those who put this off “until they’re older”: join us now for the first episode of this two-part series.

Note: This content does not constitute investment advice and is being presented for informational and educational purposes only.

Part 1

Part 2

Show Notes

Essential Background: If you’re not familiar with our family situations, check out our earlier videos where we’re joined by our spouses (part 1 and part 2), and the recent episodes about our kids (part 1 and part 2). Note that each is a two-part series, and separate links are provided for all videos.

Estate planning FAQs: After viewing these videos, you’ll be better equipped to ask deeper questions about your own estate planning needs. We found this resource from the American College of Trust and Estate Counsel (ACTEC) to be really helpful. All of the high level topics discussed in our series are covered here.

What is a trust? This Investopedia article is a good starting point for clarification on the different types of trusts and other pertinent details. This is a subject where it’s easy to fall down a very deep rabbit hole, and having a good foundation first is always helpful. Be sure to research the particulars of your state or country as well, as things differ substantially.

Advanced care planning is an essential element of estate planning, and one we touched on in part 1 and expand upon in part 2 of this series. Thinking through your own preferences can be difficulty, but planning for them is vitally important.

Umbrella Insurance is among the most important (and least expensive) tools available to protect your assets. These policies sit on top of your existing liability coverage (auto, home, etc) and extend it. To learn more about umbrella policies, check out this Investopedia post.

You can find information on the tools we mention in each episode along with additional information in the Resources section of this site.

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Breaking Up With My Financial Advisor?

Did you know that financial advisor fees can eat up HALF of your portfolio’s value over time? While happy with the good support and great relationship he had with them, Jason was thinking about leaving his financial planners late last year. In this episode, we capture a conversation Eric + Jason had on this topic, as they discussed the merits and downsides of paying assets under management (AUM) fees. Topics covered in this episode include why he stuck with them over the years, the value advisors can bring, more cost-effective options for financial advice, and how Jason is making his decision. Get the facts and make the right choice for yourself!

Note: This content does not constitute investment advice and is being presented for informational and educational purposes only.

Part 1: Breaking Up With My Financial Advisor?

Part 2: Making The Worst Financial Mistake I’ve Ever Made?

Show Notes

Essential Background:

  • Have you seen our two-part series (part 1 and part 2) on asset allocation? These episodes provide context from Jason on his portfolio and work to date with advisors.
  • The Bogleheads wiki contains some great content about investment advisors and financial planners, helping to clarify the differences between them. In these two articles you can learn some important definitions and information that provide key background to this topic.

10 Questions to Ask Your Financial Advisor was put out by the Certified Financial Planner Board of Standards, Inc. (CFP Board), which is a “non-profit organization that serves the public by fostering professional standards in personal financial planning”. This document is a must-read for anyone even considering financial planning services, and helps to arm you with the information you need to have any conversations.

Interested in researching financial advisors? This link will take you to one of the better resources we’ve seen for investigating potential options. As described on the site, XY Planning Network’s member advisors ascribe to fiduciary and CFP standards, earn no commissions, and require no minimum assets. They have convenient filters to allow searching by advisor specialities, including those with FIRE experience. Many work under multiple fee models, including advice-only, which can be a good source for one-time consults without any ongoing feels. [Two Sides of FI has no relationship with XY Planning nor do we receive any compensation from them.]

BrokerCheck is a resource by FINRA (Financial Industry Regulatory Authority), which allows you to research individual financial planners and brokers, as well as firms. This is a key site for looking into the details of a potential financial advisor or perhaps one with whom you are already working.

You can find information on the tools we mention in each episode along with additional information in the Resources section of this site.