Max Pashman, CFP®'s Linkedin Analytics

Only 48% of Americans could cover a $1,000 emergency from savings. Here's why you MUST set it up: This fund should be priority #1 if this still needs to be filled up. Why is this important? It prevents you from: - Tapping into your investments - Borrowing debt you can't pay back And what does that help prevent? → Paying high interest on cards (this happens the most) → Realizing any capital gains taxes from investments → Early penalties from retirement accounts → Interupting compounding interest → Putting you in a debt trap → Compromising goals It's almost like having a self-insurance policy. Sure, it's not growing over the long run. But that's not the point of an e-fund. It's not for 10 years from now. It's for tomorrow. Big difference. 🚨 Protect yourself before you wreck yourself 🚨 Got an e-fund? - - - - - - - - - - - - - - - If you like money visuals such as this, you'll love the money visual newsletter! Be sure to be subscribed here with 500+ others! https://lnkd.in/gJC9mTQH

Mortgage payments eat up 40%+ of income for new buyers. But there are ways to reduce this over time. Here's how: In today’s market, it’s only getting heavier. Between higher interest rates, inflated home prices, and the rising cost of taxes, insurance, and maintenance, locking into a 30-year mortgage can feel like a long financial leash. But you might have more flexibility than you think down the line. There are strategies that can help reduce the weight of your mortgage. Especially when in comes to monthly payments. The problem? Most people either don’t know they exist, or they misunderstand how they actually work. Let’s break down 3 strategies that every homeowner should know: 1. Overpaying your loan Extra payments reduce your loan’s principal... …but NOT your monthly payment. That’s where most people get tripped up. Yes, overpaying your mortgage helps pay it off faster But your monthly cost won’t go down. So if you're looking to reduce the term, this is path many take. But if you’re looking to reduce cash outflow today, this may not help. 2. Refinancing This creates an entirely new mortgage: - New rate - New term It can lower your monthly payment if interest rates have dropped significantly and you plan to stay in the home long enough to justify the closing costs. But refinancing doesn’t make sense for everyone. Especially in a high-rate environment like today. It's purely based on what happens in the climate. 3. Recasting This is the one few people talk about and it's underrated. Recasting lets you make a lump sum payment toward your mortgage and reduces your monthly payment by reamortizing the loan. You keep the same rate and term. But now, the balance is lower and so is the monthly bill. Perfect if you’ve received a windfall (bonus, inheritance, home sale, etc.) and want to lower your fixed costs without restarting your mortgage. Just note: - Not all lenders allow it - Minimum payment required - Small processing fee may apply - Be sure your emergency savings are intact first - Proceeding with this means locking up more liquidity There are lots of choices to choose from. Make sure you are weighing those options! - - - - - - - - - - - - - - - - If you are subscribed, you got this plus 3 visuals in the recent newsletter. For everyone else, don't miss out on the fun. Join now to receive the next one: https://lnkd.in/gJC9mTQH

Over 55% of homeowners have locked in a sub 4% interest rate. Yet, 20% are still looking to sell. Don't make this mistake before doing so: So you got a home the last year or so. With the market going up, you probably saw a gain. Nice job! And now you might want to cash in. Maybe take the gains and get a new home. But before you do, you need to understand two things: Did you hold on your primary home for year? → Your home is an asset under capital gains. Sell it less than a year? → Your gains are taxed as ordinary income. Sell it in more than a year? → Your gains are taxed as long-term capital gains. That ranges between 0%-20% (federal rates) But here is where people overlook... Have you lived in the home 2 of the last 5 years? If you have, you can have: →$250,000 of capital gains excluded for taxes (single) →$500,000 of capital gains excluded for taxes (married) If not, you not be eligible for the capital gains exclusion. The exception is a partial exclusion, which applies if you: → Forced to move due to employment → Forced to move due to health reasons → Unforeseen circumstances noted by the IRS But there’s another component worth factoring in. → How much have you already spent via interest, commissions, fees, etc? This alone has likely offset many of the gains you have seen so far in the first couple of years. Depending on these variables, you could even be under in the very beginning despite the gain! This is all the more reason that this asset should be treated as a long-term purchase. Not an opportunity for a short-term flip. It’s home sweet home… … until costs come. - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this, you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

Your employer gives you a nice $100,000 bonus. But then you're left with a life changing question: "What would I do with this?" Simple in form. Complex in weight. There's so many different options to choose from. But it all depends on your situation. Usually comes down to three choices: 1) Keep it in cash for a purchase, repaying debt, or beefing up your cash 2) You decide to invest it into a diversified portfolio 3) You buy your company's own stock What would you do here? Whatever you answer is likely what should be done with RSUs AKA Restricted Stock Units. It's equity that's treated as part of your comp. Some fun quick highlights for you: → Treated as W2 income when invested → Withheld as "supplemental income" for tax purposes → The appreciation is treated as short or long term capital gains → May require a "double trigger" (One time at vest and one at IPO) And that's prrrrrretty much the gist. Anything up and down from the vest price? Treated just like a normal stock for capital gains. If you got em, it's only a matter of what to do with them. Make sure your choice alligns with your situation! - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - If you like money visuals like this, then you'll love the money visual newsletter. Be sure to be subscribed to receive the new one this week: https://lnkd.in/gJC9mTQH

Most are leaving thousands due to inefficient income tax planning: But you can reduce them. Here's how: To reduce your income tax liability, there are two parts: deductions and credits. 🔵 Deductions These reduce your income reportable for taxes. And there are generally 2 types: 1) Above-The-Line These are deductions made on your gross income to determine your "adjustable gross income" Examples: - IRA contributions - Self-employment retirement plans - Health care premiums for self-employees - Student loan interest - Educator expenses - HSA contributions - And more 2) Below-The-Line From your adjustable gross income, you have two types of below-the-line deductions to take (you choose the highest between the two): A) Standard Deduction (2024): Single: $14,600 Married: $29,200 B) Itemized Deductions: Examples: - State & local taxes - Mortgage interest - Charitable contributions - Casualty and theft losses - And more 🟢 Credits These are a lot more simple and more rewarding. That's because these directly have an impact on your tax liability. There are fewer of these options than deductions, but they make a more significant impact dollar for dollar. Some examples include: - Earned Income Tax Credit (EITC) - Child Tax Credit - Child and Dependent Care Credit - Education Credits (American Opportunity) - Foreign Credit - And more When possible, you should utilize these two side by side to lower your liability. Tax planning can go a long way! - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this you'll love the money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

What option would you rather have: Option A: $500,000 right now Option B: $1.3 million in 10 years. Which option are you choosing?

If I invested the $3,000 I spent on vacation over 30 years at 8%, I would have had $30,187.97 instead. And I would spend it all over again. Why? Because I'm not relying on that to fund my future. I've already got a savings strategy for my investments and business. This amount was strategically set aside for my short-term goals. You could analyze every dollar that could have been invested, you spent. What if I saved it? What if I invested it? What would change? But we also have to flip it from the other perspective. Once you have set aside so much over the years, you then say. What if I spent it? What if I traveled? What would change? People talk about being anti-balance with their work. But I think you should be pro-balance with your money. I'm not throwing everything into my future like the FIRE movement. But I'm also not spending everything like the YOLO bros tell me. Once you tip off that scale, you suddenly live in regret. Depending on which side, it's either now or the future. I like my odds of striking a balance between the two. Happy to save strongly towards my future. That gives me confidence to spend now. The ultimate money flex in 2025. How do you incorporate balance? - - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

Most people let psychology interfere with their taxes. Classic example where they get this mixed up: → When you have taxes owed? They tend to think they did something wrong. But that might not always be the case. You could have simply: - Not withheld enough, that's out of your control - Made more income than you anticipated - Created a taxable event that was good In the end, a positive could have influenced this. The same logic is applied to the other side. → When you get a tax refund? They tend to think they did something right. But again, not always the case. - You were withholding too much - Making less than you anticipated for the year - You basically gave the IRS a 0% interest loan of your own money One again, a negative could have created or followed this. Our psychology loves to play with our head. Because we're pre-wired to say: → "Owing" taxes is bad → "Refunding" taxes is good But look at the numbers underneath it all? It tells us a completely different story. It's no different when it comes to: - Retirement planning - Equity compensation - Cash management - Personal cash flow - Insurance - Investing - Debt - Etc. What might look "good" or "bad" on the surface could be the opposite. And it's all depending on your numbers behind the scenes. Psychology might not be on your spreadsheet. But it can impact those numbers.

If you have $1 million in assets and $1 million in debt, your net worth is $0. If you have $1 in assets and $0 in debt, your net worth is $1. That means on paper someone with $1 can have a higher net worth than someone with $1 million. There's more behind the scenes than just your net worth. It's not about how much you own. It's about how you own.

You should have started investing sooner. Here is the power of starting early: What you see in the illustration are 4 people: - 20 year old - 30 year old - 40 year old - 50 year old Now, as you get older, your income increases. Therefore, each generation can contribute more. So I ran a quick calculation. For every 10 years, double the contributions. You can contribute more, but have less time to invest. Assuming an average return of 7%? The results are simply remarkable. A 20-year-old who is dedicated to starting early could create more wealth than those with higher contributions. That doesn't mean high contributions don't matter. They absolutely do! Arguably more important earlier on. The difference, though, time was on their side. They made up a lack of contribution with more time to work with. If you give yourself a smaller window, you need a larger contribution. It's really simple, but holds a huge lesson. There is power in getting off to a good start. So yes, you should have started sooner. But everyone else should have too. The important point? → You aren't too late! Don't wait any longer! - - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this you'll love the money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

Financially confident people are 2.5x more likely to save regularly. Here are 10 ways to improve it: Like most things in life, what you say is what you become. Money is no different in this matter. Especially on a path of multiple decades. These 10 money flips can make the process easier. Which one is your favorite? - - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

For $575,000 you could buy a home or use the same money to buy The Notorious bottle service package at EDC. Tough decisions again. Which would you choose?

Mastering money is 80% mindset, 20% mechanics. Here are 8 psychological barriers you'll see with wealth: Mental Accounting Bias → Bunching items together mentally rather than laying them out in an organized manner Herd Behavior → Following the crowd without any real analysis behind the scenes for your decisions Overconfidence → Making decisions while underestimating the level of risks being taking Confirmation Bias → Seeking out validation from a piece of source despite what has been presented Anchoring → Using the first piece of information to drive decisions despite new information that comes later Loss Aversion → Even if the losses are the same as the gains, the pain is more severe from the losses as a result Survivorship Bias → Making decisions based on the winners while overlooking the losers along the way Recency Bias → Making decisions based on what has happened recently while disregarding what has happened historically Which of these do you deal with the most? - - - - - - - P.S. If you like money visuals like this, sign up for my money visual newsletter below: https://lnkd.in/gJC9mTQH

Alright LinkedIn, which option would you choose: Post 1: 1,000 likes + comments, 10,000 views Post 2: 100 likes + comments, 100,000 views Assume both of these posts are targeted at your audience. Which option are you choosing?

What option you rather have: Option A: $500,000 right now Option B: $1 million in 10 years What's your choice and why?

Your impatience is costing you a fortune. You see the headlines like this 👇 "MARKET IS DOWN!" Then you check your portfolio immediately. →What do you find? →You’re in the red. →Suddenly, you’re thinking... → “I’m in the red. I’m doing this wrong!” Fast forward later? New headlines come up. "MARKET IS GREAT!" →You check your portfolio again. →You’re in the green. →But instead of cheering? →You’re comparing the top performers. → Suddenly you’re thinking. → “I’m in the green, but I’m doing this wrong!” In this mindset, it’s almost a lose-lose situation. →Never happy. →Always disappointed. →Now, in absolute regret. →You change everything This irrational behavior has been noted for decades. And it has noticeably cost investors over time. According to Morgan Stanley in their Guide to the Markets? Average investors have been getting only 3.6% from 2002-2021 Which means they’ve barely beaten inflation. One of the culprits? Most of the pinpoints come from trying to outsmart the markets. You might be able to win and beat the markets here and there. But over the long run, it’s an incredibly tough game to play consistently. And if it sounds like you, it might be hard to execute on your own. What you might need is actually: - A soundboard - A person to talk out your concerns - Someone who keeps you in check - A person who gives you peace of mind - A person who will keep you certain on your future You just happen to be reading his post. And if this sounds like your situation? You should reach out to him. - - - - - - - - - - - - - If you love visuals like this, you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

57% of workers are currently contributing to their 401(k). But most don't know if theirs is good. Here's what you should know: The truth is that not all 401(k)s are treated equally. Some are good. While others are disappointing. But the account is not at fault: it's how it's structured. Employers create them how they see fit. So, what are the top areas to look at? In my view: - Whether they limit your contribution limits - Do they offer a Roth option to you - Do they offer a match to you - Do they offer more than a target date - Do they offer low-cost index options - Do they offer an after-tax option that you can convert The more these boxes are checked off, the better. It's not about the account you have. It's how you use the account too! Do you have a 401(k)? - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this, you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

24% of households have a Roth IRA. But only 39% of them contributed. Here's something most misunderstand: Tax-free income is amazing. Earnings inside the account not only grow tax-free? But they also distribute tax-free as well. A rare way to create tax-free income. But something people don't point out? → 𝗔𝗰𝗰𝗲𝘀𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 So many are thrown off by the fact you can't access your retirement money until 59 1/2. But what most don't realize? This is only 𝙨𝙤𝙢𝙚𝙬𝙝𝙖𝙩 true. The truth is that it has flexible traits. And it's thanks to 3 components: 𝟭) 𝗥𝗼𝘁𝗵 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀 These can be taken out anytime you desire. Why? You already paid taxes on them. Therefore, these can be taken out: - Anytime - Tax-free - Penalty-free In the distribution, the contributions come out first. 𝟮) 𝗥𝗼𝘁𝗵 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻𝘀 This is money thrown into here after a conversion from a pre-tax account like a Traditional IRA or a 401(k). It has a unique rule attached to it: The 5-year rule. As long as it has been 5 years since a conversion took place, they can be taken out anytime. But this is PER conversion (which is a taxable event) For example: → A $50,000 conversion in 2024? That $50,000 can be taken out in 2029? → A $60,000 conversion in 2025? That $60,000 can be taken out in 2030? → A $70,000 conversion in 2026? That $70,000 can be taken out in 2031. You get the picture. These funds taken out earlier than 5 years would be penalized. While not as flexible as contributions, it opens opportunities for accessibility early on. (Ex. Roth Conversion Ladders) 𝟯) 𝗥𝗼𝘁𝗵 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀 This is where the tax-free perk comes into play. Because it's money earned that you get tax-free. It's this element where the taxes and early penalties are applied before 59 1/2 years old (Including the 5-year rule after first contribution). So, while you have to wait, you still get tax-free money eventually. There are some exceptions for not paying the penalty, but generally these have the most strict rules. Of course, everyone's situation will be different. In fact, there may be better accounts to pull from first. It's usually better to leave tax free funds growing for as long as possible. But then again, nothing is universal when it comes to these rules. It's all about the options in front of you and how you use them. You should consult with a financial advisor and tax professional before taking any action with this. The overall point is simple, though. Don't be thrown off by the 59 1/2 number. With strategy, tax-free money has never looked better. Do you have a Roth? - - - - - - - - - - - - - If you like visuals like this, you'll love the weekly money newsletter. Be sure to subscribe here: https://lnkd.in/gJC9mTQH Note: This post is purely educational and not financial, tax, or legal advice. Consult with a qualified professional before implementing.

If you aren't a millionaire in your 30, you're a failure. ☝ This has been the sentiment I've been hearing all too much. I made this tweet and it somewhat blew up. Some interesting responses: "Easy to become a multi millionaire in your 30s, you had 15 years to get there assuming mid 30s. If age 35 and haven't hit $1m in networth (including spouse) then you are poor If you don’t hit it by 40 though your prob not gonna make it (including primaryres)" There's a difference between what is possible and what is easy. Anyone who actually did this will tell you it's hard to accomplish. Not to mention, very few people have actually done this. Unplug yourself, go outside, and touch some grass. What you see online does not represent reality.

Warren Buffett is officially stepping down as CEO of Berkshire Hathaway and retiring. An absolute legend in the investing world! 🐐