Be Wealthy & Smart

Learn how to evaluate whether high interest bank account offers are worth their salt or not. Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. This is listener question Friday. Our listener asks: Linda, I recently saw this headline advertising a bank: "This Secret Bank Has No Fees and Pays up to 100 Times the Normal Interest Rate." It's an online-only bank account with no fees, no minimum balance and no minimum monthly deposit. It says it yields up to 1.00% interest, which is 100 times more than existing checking accounts! It goes on to say, "a debit card and free ATMs anywhere in the world make it more accessible than a typical savings account, and the high yield makes it far more lucrative." What you think about that? Is it a good deal? Lindsay Good job asking questions and wanting more information.! Be careful of online "clickbait". Online only banks are sprouting up. Does it matter to you if you can go visit a location if there's a problem and they don't answer the phone? Here's what I was able to find out about this specific bank and offer: 1). They are upfront - it's a start up and has been in business less than one year. 2). Offered by a registered investment adviser, which is a securities firm, not a bank (more on that later). 3). It is covered by FDIC insurance up to $250,000 per account per individual. 4). Prospective customers cannot sign up for an account immediately. After submitting your email address, you'll able to enroll within seven to 14 days. You have to answer surveys and give more information. 5). Possibly cannot open multiple accounts and there is no mobile app, although they may have those items now, the information I read was that they were not available yet. 6). While it charges no maintenance fees, the account has a pay-what-you-want fee structure, and will periodically ask you to make donations of up to $6 per month (you can choose to pay $0). I would run from any business with a model like this, let alone a financial business! 7). It charges $25-$33 per overdraft, and there's no limit to the number of these fees you can incur in one day. If your account is in the red for five consecutive days, you'll be charged a daily $5 extended overdraft fee. Given that they lack savings accounts, you can't sign up for an overdraft protection transfer service. 8). Fees for incoming and outgoing wires. Outgoing wires cost $40. One wire would negate a year's interest. 9). It does not currently offer a joint checking account, savings accounts or CDs. 10). ATM fee: $0, with unlimited worldwide reimbursements. ATM fees are reimbursed without limit. STAR system, for example. This alone will cost them a lot of money and potentially kill their profitability. 11). The account also has a standard foreign-transaction fee of 1.1%. 12). Cannot make bill payments or write checks. 13). You will be paid 0.25% on balances up to $2,499.99 and 1.00% on balances of $2,500 or above. On $2500, 1% is only $25! While the market sounds great, you could easily incur another fee that would negate a year's interest. 14). Be careful with blog recommendations of checking accounts and credit cards. They earn commissions (it's in the small print on the website) when you buy products/services so while they try not to be biased, they are. To me, this looks like an operation that wants to cross-sell investment accounts to you, so they are willing to sell a loss-leader in order to get your other assets. A good old traditional bank or credit union will serve you much better. They have a long history of being in business, they have a fee structure that has allowed them to stay in business (you must make a profit!), and they have multiple products and services, plus account controls (like overdraft protection) that will serve you better. Remember, at 1% interest, it will take 72 years to double your money! Don't get caught up in the too-good-to-be-true offers that make you $25. Work on getting to Steps 4 & 5 of the 6 Steps to Wealth: invest in a money engine and compound at a high rate. Savings accounts aren't money engines. They are places to store your emergency fund or gather money before investing. Keep studying investments, as I know you are, and you'll be much better off in the long run, Lindsay! Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Find out how to calculate whether buying an item is worth it to you or not. Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. Article is posted on the website at http://lindapjones.com. Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn where the hottest luxury real estate market is in the U.S. Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. Article is posted on my website at www.lindapjones.com, podcast 268. Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn whether it's better to pay down a mortgage or buy a new car. Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. It's listener question day. Here's today's question: Linda, We have a 3rd baby on the way and want to know, should we pay down our mortgage or buy a new van? I'm 35 and my wife is 33. We have $25k in a lump sum to either pay down the mortgage (3.5% interest and 17 years left) or buy a new van for $35k at 2% interest? With the interest rates so close, I wasn't sure what would be the better deal. Please let us know what you think. We love your podcast! David 1). Paying down a mortgage with a lump sum is overrated. You can do it by making a 1/12th extra payment. I recommend everyone do this. 2). A new van is going to cost you depreciation (loss) right off the bat. Better to buy a highly rated used one with low miles and pay cash. 3). As usual, I'm not hearing any rush to start a retirement fund! The real difference in your wealth building will come from investing, so get started! Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn why a billionaire paid a record $110.5 million for a painting. Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. The article is posted on my website at www.lindapjones.com at podcast 266. You might not know I'm an art collector. I have a passion for art. There are about 70 paintings in my collection. When my husband was alive we loved to go to art auctions. I've not ever been to an auction at Christie's, but I'd love to and it's on my bucket list. Yesterday something exciting happened at a Christie's auction. A painting by Jean-Michel Basquiat sold for $110.5 million! Only 10 other canvases have ever sold for over $100 million. It was bought by the 41-year-old tech tycoon, rock musician, fashion entrepreneur Japanese billionaire Yusaku Maezawa. The Los Angeles Times says that until shortly before Thursday's auction, it hadn't been shown in public since a private collector bought it for $19,000 in 1984. Says the NY Times: "It was Mr. Maezawa, the 41-year-old founder of Contemporary Art Foundation, who last year set the previous auction high for Basquiat, paying $57.3 million for the artist's large 1982 painting of a horned devil at Christie's. Mr. Maezawa is also the founder of Japan's large online fashion mall, Zozotown." How's that for compounding! His works have had an increase of 10 fold in 10 years. Basquiat's skull painting set several records: for a work by any American artist, for a work by an African-American artist and as the first art created since 1980 to sell for over $100 million. Untitled 1982 painting of a skull. Basquiat painted it at age 21. It has not been seen in public for 30 years. According to the NY TImes, "The Brooklyn-born Basquiat went from graffiti artist to an art collector darling in the span of a mere seven years. He died at 27 of a drug overdose in 1988. Last year, Basquiat became the highest-grossing American artist at auction, generating $171.5 million from 80 works, according to Artprice, and his auction high has increased at least tenfold in the last 15 years." Why would someone pay this much for a painting? 1. Because they love the work! 2. They are a collector. 3. The rarity of the work. 4. His prices have been escalating. 5. Art has been appreciating better than other assets. 6. Diversification of your fortune, especially out of cash. 7. You can afford it. ;) According to the Guardian the other works of art that sold for over $100 million are: The $100m artists club: paintings that have fetched more than $100m at auction 1. $179.4m. Pablo Picasso "Les Femmes d'Alger" (Version 0). 2015. 2. $170.4m. Amedeo Modigliani "Nu Couche". 2015. 3. $142m. Francis Bacon Triptych "Three Studies of Lucian Freud". 2013. 4. $119.9m. Edvard Munch "The Scream". 2012. 5. $110.5m. Jean-Michel Basquiat "Untitled". 2017. 6. $106.5m. Pablo Picasso "Nude, Green Leaves and Bust". 2010. 7. $104.5m Andy Warhol "Silver Car Crash (Double Disaster). 2013. 8. $104m. Pablo Picasso "Garçon à la Pipe". 2004. Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn 8 things that rich people believe and how it can help your wealth building. Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. The article is posted on my website at www.lindapjones.com. Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn the habits of 6 billionaires that might create wealth for you too. Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. The article by Marketwatch is posted on the website at www.lindapjones.com, podcast 264. Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. Photos of the IBD article are posted on the website at www.lindapjones.com, podcast 263. Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn where people are moving from and to in the US and how that impacts real estate prices long-term. Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. This is an article from Bloomberg Businessweek. Article will be posted on my website at www.lindapjones.com, podcast 262. Trend of moving from the snow belt to the sun belt. People are moving to the South and West from the Midwest and Northeast. As a real estate investor or even as an individual thinking about where you want to live or if you should buy a home in a particular state, trends are very important. The wealthy follow trends closely and use facts before investing. Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.

Learn why it's not urgent to pay off your mortgage and why a 401(k) is more important. Listener question day. Should I Withdraw From My 401(K) to Pay Off Mortgage? Before we get started, I wanted to let you know about another awesome podcast called Profit Boss Radio. Profit Boss Radio, hosted by MBA and Certified Financial Planner Hilary Hendershott, highlights inspiring women who have created success in their financial and professional life. Each week you can tune in and hear how women have paved the road to sustained success with both beliefs and actions. Check it out at www.profitbossradio.com. A listener writes: Linda, I'm 45 years old and gross about $100,000/yr. I have $390,000 in my 401(k), and owe about $175,000 on my mortgage, with 17 years left at 2.75%. I have about $100,000 in savings. I fear I may get laid off later this year. Should I withdraw money from my 401(k) to pay off my mortgage? Love your show. Thank you, Phil There's 3 things to address here: 1) preparing to lose your job, 2) paying off your home early, and 3) why a 401(k) is important. 1) Preparing to lose your job. That's a hard fate to face and causes a lot of fear. There are things you can do to lessen the strain and it doesn't not involve dipping into your 401(K). Listen to my prior podcast about how to prepare to lose your job. 2) Paying off your home is overrated because all you need to do is make your annual payments, not pay off a lump sum 17 years early. While $100k won't last forever, it will give you ample time to find another job and cover your mortgage payments. Take this time to save more money, sell un-needed stuff and reduce your expenses. For example, use miles and points for your vacation instead of paying outright for one. You have a great interest rate, so no need to refinance. You can pay 1/12th extra per month and pay down your interest and increase your equity faster. ($200/mo. extra on $2400). House debt is the best debt to have because it's the cheapest, so look into a HELOC while you're still employed. 3) If you dip into your 401(k), you'll have a 10% penalty for being under age 59 1/2 plus tax on untaxed income. Only under extreme circumstances as a very last resort should you touch this money. Need it to grow for retirement, separately from your home. Use it to offset your income while you are employed, might get you into a lower tax bracket (we'll see how the new tax plan is). In addition to saving in and outside your 401(k), look for business opportunities on the side or even part-time work while you're looking for a job (Uber driver?). Stay positive, you may end up better off! Please subscribe and leave me a review on iTunes or Stitcher Radio. Move your net worth in the right direction by getting "11 Quick Financial Tips to Boost Your Wealth" at www.lindapjones.com.