Episode #210: What to do if Your SSN is Compromised

Are you concerned about getting your non-public information compromised? We dedicated this week’s episode of Grow Money Business to discussing what to do if your personal information is misplaced or compromised in some way. Join us as we dive into how people can take advantage of your personal information, both yours and banks' responsibilities to mitigate events like this from happening, the credit reporting agencies, how a credit freeze can be of help in a situation like this, how to improve your credit, and more.

Show Notes

[05.31] Misplacing personal information – Grant starts the conversation by explaining what other people can do with your misplaced personal information.

[10.31] Responsibility – Grant talks about what the banks do to stop fraud from happening and what you can do to help them.

[12.24] Reporting agencies - TransUnion, Equifax, and Experian are the three credit reporting agencies in the USA.

[18.00] Credit freeze – Grant explains how a credit freeze works, along with its advantages.

[24.26] Equifax – We talk about the Equifax data breach in 2017, which exposed the personal information of more than 140 million US citizens.

[32.27] Improve credit – Grant shares some steps you need to take to improve your credit.

Resources

Credit Freeze

experian.com/freeze/center.html

equifax.com/personal/credit-report-services/credit-freeze/

transunion.com/credit-freeze

Identity thieves crack major Experian security flaw, access customer credit reports

techradar.com/news/identity-thieves-crack-major-experian-security-flaw-access-customer-credit-reports

annualcreditreport.com/index.action

What Is a Credit Score? Definition, Factors, and Ways to Raise It

investopedia.com/terms/c/credit_score.asp

Episode #209: The Dos and Don'ts of Selling Your Company with Chris Younger

This week’s guest on Grow Money Business is Chris Younger. Chris is the CEO and co-founder of Class VI Partners, an investment bank in Denver, Colorado, specializing in assisting business owners in reaching their full potential during what is arguably the most difficult period of their lives. He is a graduate of Miami University and Harvard Law School and is also the author of the book ‘Harvest: The Definitive Guide to Selling Your Company’. Chris joined us today to talk about the things to be aware of when you are planning on stepping out of your business, what the first steps are, growing value, mistakes you make, the impact of inflation and interest rates, and more.

Show Notes

[05:00] Chris’s story – Chris starts the conversation by sharing his career progression.

[12:14] General wisdom – Chris shares some general wisdom for business owners when it comes to selling their businesses.

[19:20] Less dependent – Chris and Grant discuss the importance of your business being less dependent on you as a business owner.

[25:26] Landscape – Chris shares some important considerations for hiring a business broker.

[34:21] Private equity – Chris and Grant discuss how the current higher rate of inflation and interest impact private equity behavior.

[39:16] Timing – Chris discusses timing in selling a business: personal timing, business timing, and market timing.

[43:23] Stories – Chris stresses the importance of in-depth planning for getting out of your business.

Resources

NAVIGATE FROM SCALABLE TO SALEABLE

classvipartners.com/

Harvest: The Definitive Guide to Selling Your Company

amazon.com/Harvest-Definitive-Guide-Selling-Company/dp/1432712306

ITR Economics

itreconomics.com/

Episode #208: Mailbag! Cutting Through Jargon & Interpreting Financial Statements

Do you struggle with interpreting financial disclosures and statements? If so, this week’s episode of Grow Money Business is for you. We dedicated this episode to discussing a specific mailbag question, which is a guide to understanding financial disclosures and statements. Throughout the conversation, we dive into the framework for financial disclosures, the purpose of annual reports, how to interpret those as an employee, investor, owner, potential buyer, and more.

Show Notes

[06:05] Money and capital – Grant starts the conversation by explaining how the process of growing a company works.

[11:12] 10-K & 10-Q – Grant walks us through what is contained in the 10-K and 10-Q reports.

[16:27] Stories – Grant talks about the gamesmanship to influence the stock price that aligns with the personal interests of a company.

[22:54] Vista Outdoor Inc. – We dive into the details of Vista Outdoor Reports Second Quarter FY24 Financial Results.

[30:37] Valuing a business – Grant explains what to look out for in an income statement if you are interested in valuing a business.

[33:37] Balance sheet –Grant discusses the many roles of a healthy balance sheet.

Resources

Vista Outdoor Reports Second Quarter FY24 Financial Results

thefishingwire.com/vista-outdoor-reports-second-quarter-fy24-financial-results/?mc_cid=98e55f781d

THE BEGINNER’S GUIDE TO READING & UNDERSTANDING FINANCIAL STATEMENTS

online.hbs.edu/blog/post/how-to-read-financial-statements

Beginners' Guide to Financial Statement

sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguide

Episode #207: CTA : The New Law Impacting 30 Million Small Businesses with Kenny Dettman

The Corporate Transparency Act (CTA) is federal legislation in the United States that seeks to enhance transparency related to business ownership. The legislation was passed in January 2021 and gave rise to a new reporting obligation called the beneficial ownership information report, which is expected to be delivered in 2024. On this week’s episode of Grow Money Business, Kenny Dettman returns to the show to talk about a wide range of details about the new legislation. Join us as we dive into what CTA is, who is eligible, who is exempt from it, reporting requirements, the penalties for not having the report, and more.

Show Notes

[04:45] CTA – Kenny starts the conversation by defining the Corporate Transparency Act (CTA).

[10:31] The reason – Kenny explains the reason behind the CPA legislation and how it’s going to affect some types of businesses.

[20:47] The impact – Kenny shares FinCEN’s estimates of businesses that will be affected by the new legislation.

[28:22] Deadline – Grant and Kenny discuss deadlines for filling out the BOI report.

[40:15] Creating awareness – Kenny shares some ways people can learn about new and changed legislation.

[48:00] Who should talk to you – Kenny explains who employers that run businesses under a revenue of $5 million should talk to about the new legislation.

Resources

Beneficial Ownership Information Reporting

fincen.gov/boi

Corporate Transparency Act: What Companies Need to Know

corpgov.law.harvard.edu/2021/02/18/corporate-transparency-act-what-companies-need-to-know/

Connect with the FileForms Team

Phone: +1 (888) 515-FILE (3453)

Email: charles@fileforms.com

Website: https://fileforms.com/

Episode #206: Roth Accounts & Your Retirement Plan: New Options for Business Owners

The SECURE 2.0 Act of 2022 is a piece of legislation that passed at the end of last year and created new Roth options for business-sponsored retirement plans. There will be a new set of Roth features available for organizations that offer 401K, SEP IRA, or a simple IRA for their employees. Join us as we dive into the changes that you should know about, what additional Roth options you're going to have available at your disposal in the future, when people can expect to have these new features available, and whether it makes sense for you to offer them to your employees or take advantage of them for yourself.

Show Notes

[05:50] A catch-up contribution – Grant starts the conversation by defining a catch-up contribution and the changes that might happen in 2025.

[10:40] The difference – Grant talks about the difference between a Safe Harbor 401(k) plan and a Safe Harbor non-elective Contribution.

[16:50] (SEP) IRA & Simple IRA – Grant explains how Simplified Employee Pension and SIMPLE IRA Plans work.

[23:12] Roth treatments – We discuss how Roth treatments can be a helpful tool for your employees that wasn’t available before.

[28:47] Opposites – Grant explains how Roth accounts are the exact opposite of deferred tax setups.

Resources

What You Need to Know About the SECURE Act 2.0
lordabbett.com/en-us/financial-advisor/insights/retirement-planning/what-you-need-to-know-about-the-secure-act-2-0.html

SECURE 2.0 Act of 2022
Title I – Expanding Coverage and Increasing Retirement Savings
finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-22%20FINAL.pdf

Your Complete Guide to the SECURE 2.0 Act of 2022
adp.com/spark/articles/2023/04/your-complete-guide-to-the-secure-20-act-of-2022.aspx

Episode #205: The Structure of Success With Patrick Esposito

This week on Grow Money Business we are joined by Patrick Esposito. Patrick is an entrepreneur, business executive, attorney, advisor, and author who currently serves as president of ACME General Corp., a leading public-sector innovation advisory business. Patrick recently launched Initiative Labs LLC to help small and medium-sized business leaders. Over the course of more than two decades, he has founded, led, and advised small and medium-sized enterprises in technology, consulting, retail, banking, real estate, and other sectors, in addition to U.S. government agencies. He joined us today to talk about his book ‘The Structure of Success: A Framework to Help Build Your Business Better’ where he discusses the eight levers of long-term business success that he identified working with many organizations.

Show Notes

[03:32] Patrick’s story – Grant starts the conversation by asking Patrick to share an introduction about himself, his career journey, and the lead to writing his book ‘The Structure of Success.’

[09:37] The Structure of Success – Patrick dives deep into the framework of his book.

[14:38] Disasters – Grant and Patrick discuss the factors, including disaster management and prevention, in Patrick’s book.

[21:42] The important things – Patrick stresses doing the most important things for your goal rather than chasing the things that are less relevant.

[29:17] The difference – Patrick explains how his book differs from other books about success in business.

[37:00] Innovation – Patrick shares his thoughts on people repeatedly underestimating the importance of continuing innovation.

[43:20] Productive worrying – When you are operating a business, worrying comes naturally. If you can direct your worry into productive worry, you can figure things out easily.

Resources

LinkedIn - linkedin.com/in/patrick-esposito/

Website -  patrickesposito.com/

initiativelabs.com/

acmegeneral.com/

Book by Patrick

The Structure of Success: A Framework to Help Build Your Business Better

amazon.com/Structure-Success-Framework-Business-Better/dp/1639090185

Episode #204: What Does Inflation Mean For Your Retirement Plan?

We dedicated this week’s episode of Grow Money Business to discussing inflation and how it might affect your retirement plan. Throughout the episode, we dive into technicalities in detail, research what the data tells us, incorporate this concept into your retirement planning, the 4% rule, Monte Carlo simulations, stocks and bonds in inflation, and more.

Show Notes

[05:44] 4% Rule – Grant starts the conversation by explaining the 4% rule for retirement and how it enables you to live comfortably.

[14:55] Monte Carlo simulations - The Monte Carlo simulation is a mathematical method used to estimate the range of outcomes for a random process. This technique is used by computer systems to look at historical data and generate multiple possible outcomes from a single decision.

[21:35] 3% rate of inflation – Grant explains how you can use a 3% interest-bearing account with the extra money from your pension and how it can be useful for future inflation.

[31:45] Monte Carlo for retirement planning – Grant explains how useful Monte Carlo simulations can be for retirement planning.

[35:24] Stocks and bonds – Grant describes how high inflation affects stocks and bonds.

Resources

How Sequence-Of-Inflation Risk Impacts Retirees Beyond Just Sequences Of Returns

kitces.com/blog/sequence-of-inflation-risk-retirement-investment-monte-carlo-technology/

4% rule about how much to spend each year of retirement no longer works, creator says

usatoday.com/story/money/personalfinance/retirement/2022/05/20/retirement-4-percent-spending-rule-no-longer-works/50251755/

How Has The 4% Rule Held Up Since The Tech Bubble And The 2008 Financial Crisis?

kitces.com/blog/how-has-the-4-rule-held-up-since-the-tech-bubble-and-the-2008-financial-crisis/

Updated Trinity Study and the 4% Rule- 2021 and Beyond

bestinterest.blog/updated-trinity-study-simulation/

Episode #203: Everything You Need to Know About Medicare With Christian Worstell

We are rapidly approaching the annual enrollment period for Medicare Advantage plans, and if you need to enroll, it’s important that you have a thorough knowledge of Medicare before doing so. This week on the show, we are joined by Christian Worstell. Christian is an author, writer, journalist, and health insurance specialist for helpadvisor.com, where he writes and publishes content about public health systems for anyone over 65. Throughout the conversation, we dive into Medicare enrollment, eligibility, enrollment windows, the differences between parts A, B, and D, and more.

Show Notes

[04.51] Medicare – Grant and Christian start the conversation by defining Medicare and it’s two sectors.

[12.39] Initial enrollment – Christian explains the initial enrollment process for Medicare and what happens if you fail to enroll during that period.

[19,35] Social Security and Medicare – Grant and Christian talk about how social security affects the automatic enrollment in Medicare.

[25.05] Advantage vs. supplemental – Christian describes the key differences between Medicare Advantage and Medicare Supplemental.

[31.50] Medigap – Grant and Christian discuss what happens when you decide to disenroll or change your Medigap plan.

[39.50] Original Medicare – Christian describes the geographical advantage you have if you choose an original Medicare plan.

[45.11] Mistakes – Christian shares some top mistakes people make when enrolling in Medicare.

[50.00] Status – Grant and Christian discuss the current status of Medicare.

Resources

helpadvisor.com/

medicaresupplement.com/

medicareadvantage.com/

Episode #202: T-Bills, I-Bonds, and Government Debt, Oh My!

T-Bills, I-Bonds, and Government Debt, Oh My!

This week’s episode of Grow Money Business is all about US government debt. We dive into this from the perspectives of investors, the government, and the citizens of the US. Join us as we discuss using T-Bills as an alternative to cash in your bank account, the purpose of an emergency fund, TIPS and I-bonds, government debt, and more.

Show Notes

[05:38] Using Treasury bill – Grant starts the conversation by explaining how T-Bills work as an alternative to cash in your bank account.

[09:56] Emergency fund – Grant shares why you shouldn’t take too much from an emergency fund and lock it up over a long period of time.

[14:25] TIPS and I-Bonds – Grant explains why neither I-bonds nor Treasury Inflation-Protected Securities comprise a huge portion of all the US government debt.

[21:22] US federal debt – We discuss the current condition of US federal debt and what will happen in the future if this behavior continues.

[30:00] The reserve currency – US dollar is the reserve currency in the world. Grant shares what will happen if the status of the US dollar is threatened as the reserve currency.

Resources

treasurydirect.gov/

Treasury Inflation Protected Securities (TIPS)

treasurydirect.gov/marketable-securities/tips/

Federal Debt: Total Public Debt as Percent of Gross Domestic Product

fred.stlouisfed.org/series/gfdegdq188S

Debt-to-GDP Ratio: How High Is Too High? It Depends

stlouisfed.org/open-vault/2020/october/debt-gdp-ratio-how-high-too-high-it-depends

Episode #201: Tax Strategy For Business Owners With Jeff Trapp

This week on Grow Money Business our guest is Jeff Trapp, who is a tax strategist and the founder of Tax Planning Pros. Jeff has devoted his career to assisting business owners in reorienting their perspectives towards their taxes, their companies, their wealth, and the legacy they will leave behind. He has saved clients thousands of dollars through innovative tax tactics and preparation. Jeff joined us today to talk about top tax planning strategies for business owners, common mistakes, how to reduce your chances of getting audited, general tax savings tips, and more.

Show Notes

[05:35] The importance of tax planning –Jeff starts the conversation by explaining the importance of tax planning.

[13:24] Oil & gas investing – Jeff explains the benefits of oil and gas investing.

[17:56] Common mistakes – Grant and Jeff discuss some of the most common mistakes people make.

[21:01] Clean books – Grant and Jeff describe the importance of keeping clean books and records when it comes to calculating correct deductions.

[32:41] Tax laws – Jeff shares his opinion on planning long-term perspectives with constantly changing tax laws

[38:15] The future – Jeff describes his vision for helping business owners create additional cash flow and create a long-term wealth legacy for them and their families.

Resources

Connect with Jeff

LinkedIn - linkedin.com/in/jeffntrapp/

Facebook - web.facebook.com/TaxPlanningPros/

Podcast - podcasts.apple.com/us/podcast/the-jeff-trapp-podcast/id1628629412

Website - thetaxplanningpros.com/

Episode #200: How and When to Get Out of an Annuity Policy

Annuity policies are a relatively popular way to guarantee income in retirement. But do you know how and when to get out of an annuity policy if you find it’s not the best option for you? We dedicated this week’s episode of Grow Money Business to discussing the situations where it makes sense to start an annuity, when to hang on to one, and when you should think about getting out of your annuity.

Show Notes

[05:55] Forms of annuities –Grant starts the conversation by explaining some forms of annuities and how they work.

[12:15] Expenses – Grant explains why variable annuity accounts are more expensive than mutual funds.

[21:03] Control – Grant describes how you have less control over your cash once it’s handed over to an insurance company.

[27:21] Surrender charges – Grant shares some important considerations when you are in the surrender period of your annuity.

[32:54] Tax ramifications – Grant shares how tax ramifications are more complicated than surrendering the annuity policy.

Resources

Breaking Down Annuity Fees and Charges

smartasset.com/retirement/annuity-fees

Annuity Fees and Commissions

annuity.org/annuities/fees-and-commissions/

Annuity Surrender Periods: Understand (and Avoid) Surrender Charges

thebalancemoney.com/annuity-surrender-period-charges-and-tips-to-pay-less-315092

Episode #199: Mailbag! Annuities, Financial Plans, and Stock Market Scares

It’s Mailbag Day! We are back with one of our rare episodes where we answer questions from our listeners. Join us as we dive into selected three questions from our mailbag: whether annuities make more sense today because interest rates are a little higher, how to determine whether your financial plan is actually working for you and whether we should be concerned about the stock market.

Show Notes

[03:22] Annuities – Grant starts the conversation by discussing the types of annuities.

[08:52] Interest rates - Grant explains why he thinks that higher interest rates don’t make annuities more attractive than before.

[15:18] Financial plans – Grant explains the importance of revisiting the plans you previously made to make sure they are suitable for the current changes in your life.

[20:16] The Confidence - To have a successful financial plan everybody in your house should feel confident about where you are heading and what you are doing.

[31:22] Shorting the Market – Grant shares his idea of Michael Burry shorting the market.

Resources

Experts say you shouldn't consider your home an investment, but I disagree for 5 reasons

businessinsider.com/personal-finance/reasons-consider-home-an-investment-2021-11

Is a primary home an investment or just a predictable place to live?

themortgagereports.com/49267/is-a-primary-home-an-investment

Topic No. 701, Sale of Your Home

irs.gov/taxtopics/tc701

Episode #198: Should You Consider Your House as an Investment?

We dedicated this week’s episode of Grow Money Business to answering an age-old question: should you consider your house an investment? Join us as we dive into the arguments for and against this consideration, as well as some specific circumstances in which you should or shouldn’t consider your house an investment.

Show Notes

[03:22] Equity – Grant starts the conversation by discussing home equity.

[08:20] Budget & Savings – We dive into why we shouldn’t confuse a housing budget with investment savings.

[13:40] Is This Right for You? – Real estate investments are not for everyone. Grant shares some important considerations when deciding if this is right for you.

[17:33] Foundation – Grant discusses what might be the best decision regarding house investments based on your background.

[22:40] Affordability – Grant explains the current condition of the housing market.

Resources

Experts say you shouldn't consider your home an investment, but I disagree for 5 reasons

businessinsider.com/personal-finance/reasons-consider-home-an-investment-2021-11

Is a primary home an investment or just a predictable place to live?

themortgagereports.com/49267/is-a-primary-home-an-investment

Topic No. 701, Sale of Your Home

irs.gov/taxtopics/tc701

Episode #197: Checking in on Inflation

We dedicated this week’s episode of Grow Money Business to inflation. A few years ago inflation was incredibly low.  Then all of a sudden (aka after $6 trillion in money printing) the numbers jumped to a 30 year high.  Since then the fed has tightened interest rate policy and driven down inflation steadily over the last year and a half. So where are we now? Join us as we dive into the current numbers, why we need to pay attention, what we can expect, a possible recession in the future, and more.

Show Notes

[04:28] How is it Measured – Grant starts the conversation by explaining how the government measures inflation.

[09:26] Interest Rates – We talk about how increasing interest rates typically slows things.

[14:08] Deflation – Grant shares why a little bit of inflation is good for the economy

[20:02] The Impacts –Grant dives into the impacts of higher interest rates.

[27:01] Corporate Real Estate – Grant explains what might happen with large commercial real estate loans when the interest rates reset.

[31:50] Possible Recession – We dive into the possibility of a future recession because of the high interest rates.

Resources

Consumer Price Index

​bls.gov/cpi/​

Rates Are Up. We’re Just Starting to Feel the Heat.

​wsj.com/personal-finance/interest-rates-investing-mortgage-banks-real-estate-debt-ca87c251?mod=economy_lead_pos1​

Job Gains Eased in Summer Months; Unemployment Increased in August

​wsj.com/economy/jobs/jobs-report-august-today-unemployment-economy-de847415​

The Generational Paradigm Shift Taking Over Markets

​wsj.com/finance/investing/the-generational-paradigm-shift-taking-over-markets-e1e7d4e6

Episode #196: Monte Carlo Projection: Don't Bet Your Retirement on One

We dedicated this week’s episode of Grow Money Business to the Monte Carlo simulation. When multiple outcomes are possible due to the presence of random variables, a Monte Carlo simulation can be used as a model to forecast their probabilities. Join us as we dive into what Monte Carlo simulation is, where it comes from, the assumptions that are used in this kind of analysis, and how much trust we can put in these kinds of analyses when we are making decisions regarding retirement.

Show Notes

[04:31] 4% withdrawal rule – Grant starts the conversation by explaining how the 4% withdrawal rule works.

[08:46] eMoney Advisor – Grant dives into eMoney Advisor, a leading provider of technology solutions and services that help people talk about money.

[17:16] Success versus failure – Grant shares his thoughts on the “chances of success” versus “chances of failure” feature of the Monte Carlo projection.

[23:03] Form of analysis – Grant talks about the importance of not relying solely on Monte Carlo projections, but also looking at things like cash flow implications and tax ramifications.

[27:01] Different options – Grant explains how to sort out the best form of analysis according to your background.

Resources

Monte Carlo Projection — A Practical Guide

towardsdatascience.com/monte-carlo-a-practical-guide-85da45597f0e

Opinion: Should you use a Monte Carlo Projection to determine if your retirement savings will last?

marketwatch.com/story/should-you-use-a-monte-carlo-simulation-to-determine-if-your-retirement-savings-will-last-11611607222

The Problems With Monte Carlo: Why Projections May Not Predict Your Success in Retirement

bairdretirementmanagement.com/insight-articles/the-problems-with-monte-carlo-why-simulations-may-not-predict-your-success-in-retirement/

Episode #195: The Bond Market: What is it Trying to Tell Us?

This week’s episode of Grow Money Business is all about the bond market and how it changes with inflation, high-interest rates, and an inverted yield curve. Join us as we dive into the yield curve, a possible recession in the future, money market funds, the TED spread, and more.

Show Notes

[06:12] The yield curve – Grant starts the conversation by defining the yield curve and the reasons we care about it.

[12:23] Recession – Grant shares his thoughts on the possibility of a recession.

[16:50] Money Market Funds – Grant describes difference between Money market mutual funds and other money market funds.

[21:37] TED Spread – Grant discusses how to a good measure of US credit risk by looking at the difference between LIBOR and T-Bills.

[28:15] Bonds – Grant shares the importance of having bonds in a negative economic environment.

Resources

US Treasuries Yield Curve

ustreasuryyieldcurve.com/

TED Spread - Historical Chart

macrotrends.net/1447/ted-spread-historical-chart

Current US Inflation Rates: 2000-2023

usinflationcalculator.com/inflation/current-inflation-rates/

Episode #194: SAVE - Biden's Student Loan Repayment Program

We dedicated this week’s episode to the ongoing news about the student loan system in the US. According to the US Department of Education, the president announced new actions to provide debt relief and support for student loan borrowers. Join us as we dive into the current situation regarding student loans, what the changes to the federal student loan system are going to be, income-driven payment plans, Federal Pell Grants, public service loan forgiveness, and more.

Show Notes

[3:05] Administrative Forbearance – Grant starts the conversation by sharing some details about student loan forbearance.

[08:30] Income-driven payment plans – Grant explains how income-driven payment plans work.

[13:00] Repayment plans – Grant recaps the current repayment plan options that are available.

[14:32] Federal Pell Grants – Grant explained what happened to Pell Grants, which were awarded only to undergraduate students who displayed exceptional financial need.

[19:35] SAVE student loan repayment plan – Grant explains how the SAVE repayment plan works and how it can be a tremendous help to people.

[24:55] Public service loan forgiveness – Grant dives into how the public service loan forgiveness option works.

[29:37] Recertifying income – Grant shares the importance of recertifying your income if you are in a student loan repayment plan and what happens if you fail to do so.

Resources

FACT SHEET: President Biden Announces New Actions to Provide Debt Relief and Support for Student Loan Borrowers

ed.gov/news/press-releases/fact-sheet-president-biden-announces-new-actions-provide-debt-relief-and-support-student-loan-borrowers

Income-Driven Repayment (IDR) Plan Request

studentaid.gov/idr/

How the New SAVE Plan Will Transform Loan Repayment

and Protect Borrowers

ed.gov/policy/highered/reg/hearulemaking/2021/idrfactsheetfinal.pdf

Episode #193: What the US Debt Downgrade Means for Stock and Bond Markets

It’s been in the news recently that one of the three major independent organizations that evaluate creditworthiness in the US downgraded the rating from the highest possible level of AAA to the next level down, AA+. We dedicated this week’s episode of Grow Money Business to discussing what the US Debt Downgrade Means for Stock and Bond Markets.

Show Notes

[03:13] The Bond Market – Grant starts the conversation by explaining why the bond market is way larger than the stock market.

[11:55] US Government Debt – Grant explains why it is safe to buy US government debt.

[23:46] Last Time– Grant describes what happened the last time that the US government debt was downgraded.

[30:35] Investment Mandates – Grant shares his knowledge on the investment mandates regarding the US government debt.

[37:58] The Fault of the System – Grant shares some long-term issues within our system surrounding adding to the federal debt.

Resources

Credit downgrade shocks Biden aides, as more debt fights loom

washingtonpost.com/business/2023/08/02/us-credit-rating-fitch-downgrade-debt/

U.S. downgrade sinks global markets — but economists are not concerned

cnbc.com/2023/08/02/downgrade-sinks-global-markets-but-economists-are-not-concerned.html

America’s credit rating got downgraded again. Here’s what happened the last time

edition.cnn.com/2023/08/02/investing/premarket-stocks-trading/index.html

Episode #192: Investing in Artificial Intelligence

This week’s episode is all about Artificial Intelligence. Of all the new technologies that have been introduced to the world, AI seems to be the turning point for us. In this episode, we discuss what we think about AI, investing in AI, the possibility of AI technology getting out of hand, and more.

Show Notes

[01:55] Open AI – Grant starts the conversation off by explaining open AI and the importance of open source.

[05:32] Chat GPT – Grant shares his thoughts on ChatGPT and describes it’s capabilities.

[09:22] Invest in AI – Grant shares some ways you can invest in Artificial Intelligence.

[16:30] The Right Investment– Grant talks about the importance of selecting the right investment if you are hoping to invest in AI.

[22:18] Superior Approach – Grant shares his thoughts on investing in value and stepping away from growth.

Resources

Episode #191: Cash Savings Options and Money Market Mutual Funds

The SEC has just voted to make changes to the regulatory landscape that money market mutual funds must abide by. We dedicated this week’s episode to talking about cash savings options and MMMFs. Join us as we dive into MMMFs, stress testing, swing pricing, the current state of the money market, and more.

Show Notes

[03.18] Money market mutual funds – Grant starts the conversation by defining MMMFs and how different they are from other mutual funds.

[08.34] How they work – Grant walks us through how MMMFs work.

[15.36] Stress testing - A bank stress test analyzes a bank's capital to see if it is capable of withstanding an economic or financial crisis.

[23.16] The SEC – Grant explains why the US Securities and Exchange Commission is looking to make more improvements to the MMF landscape.

[25.00] Swing pricing – Grant defines swing pricing, and shares why it’s relevant.

[31.03] The cash – Grant talks about the difference between putting your money in a MMMFs and a local credit union savings account.

Resources

What Is an Advantage of Liquidity?

https://www.sapling.com/12011796/advantage-liquidity

U.S. Takes Third Shot at Shoring Up Money-Market Funds

https://www.wsj.com/articles/u-s-overhauls-money-market-fund-rules-in-latest-attempt-to-prevent-bailouts-2f0f2925