NextGen Money with Trenden Peacock, CFP

NextGen Money with Trenden Peacock, CFP Consistent money education for busy young families and biz owners no matter what your net worth. Material posted is also of the opinion of Trenden C.

Posts, opinions, and content on this page are for educational purposes ONLY, please consult a tax or financial professional before implementing any strategies. Peacock, CFP® Practitioner and does not reflect the opinion of Daus Financial Group, LLC.

03/28/2024

Don't skip the emergency fund ‼

Google says you should have 3-6 months of living expenses in cash at all times. Trenden says it depends, especially if you are a homeowner and/or if you are on the hunt for a house. Or have children/pets. Or enjoy spontaneous travel. Or are taking care of a parent/fam member. Etc.

Anyways, here is what an emergency fund could be:
🟢 Basic checking & savings
🟢 High Yield savings account
🟢 Liquid money market account
🟢 CD's, Treasuries, etc.

Here is what an emergency fund SHOULDN'T be:
🔴 A credit card
🔴 GoFundMe page
🔴 Your parents
🔴 Retirement dollars

The great savers we serve were able to accumulate high net worth growth year over year because they covered the fires of life that popped up without withdrawing those dollars working for them in the market, in their business, or in real estate.

This is the growth of $100k. No additional contributions. Light blue = 5% annual return (average CURRENT money market ac...
03/27/2024

This is the growth of $100k. No additional contributions. Light blue = 5% annual return (average CURRENT money market account) and dark blue = 10% annual return (S&P historic annual return is around 10.26% since its inception). Assuming you reinvest funds for each. No tax considered.

In 10 yrs ➡ 5% return = $162k // 10% Return = $259k
In 20 yrs ➡ $265k // $672k
In 30 yrs ➡ $432k // $1.74 mil
In 40 yrs ➡ $703k // $4.5 mil

Time (& compound interest) is our greatest asset. Use it wisely to build capital outside of trading your time for money. Don't wait to understand how you are investing your dollars until you are 50 and realize you missed out on growth because you were sitting in inappropriate funds. You can't get time back ⏳

If you want to build life changing wealth, don't just put 4% into your 401k and call it a day. On top of the stock marke...
03/26/2024

If you want to build life changing wealth, don't just put 4% into your 401k and call it a day. On top of the stock market, invest in real estate, start a business, and most importantly invest in yourself to improve your skills and advance your career 📈

Don't just pass go every 2 Fridays, work smarter 🧠

03/25/2024

If all someone does is make a commission on selling a financial product to you, they are not a "Financial Advisor". Pay for advice, not for 'magic bullet' products.

Products that are oversold as an 'investment' vehicle:
🔴 Whole life insurance
🔴 IUL policies
🔴 Annuities
🔴 VUL policies

While there is a specific demographic where these strategies could work, be careful out there 🚩

Pepper the salesperson with questions, ask how they get paid, and get a detailed description in writing of all answers.

03/23/2024

What we can control in our financial life:
🟢 Savings rate
🟢 Savings automation
🟢 Investment behavior
🟢 Time spent in the market
🟢 Location of investments and flexibility of funds

What we can't control in our financial life:
🔴 Annual investment returns

Focus on the controllable actions and the rest will fall into place 🧩

03/22/2024

🏀March Madness🏀

Not everyone needs a financial planner ‼

There has to be a level of complexity, or a lack of time, knowledge, and inclination of getting your money right to make the value an advisor can provide worth it.

I don't believe someone should pay a 1% advisory fee when they belong in equity index funds for 20+ yrs 🎢

That said, I do believe in helping people get their savings in the most optimal accounts & educating around investments & taxes early on, to avoid kicking yourself later down the road.

That's why we created a 12-month subscription model for successful young professionals who want to make sure they are optimizing their savings, investments, and taxes while keeping control of their own investments.

🚩You may not be able to win the game in the first half of your life, but you can probably lose it 🚩

02/28/2024

When you invest in a brokerage account, you are completely exposed 🚩if you are tax inefficient. No deferral = tax nakedness

Things to consider:

⚫ ETF's & individual stocks > mutual funds. MF's are the old head, commission hungry advisor way of investing. Performance may be fine, but soooo tax inefficient. And usually more expensive.

⚫Don't hold taxable bonds. If you are going to hold bonds at all, hold them in tax deferred vehicles. Why? Bonds kick off taxable income. Easily.

⚫Don't hold target date funds. Over time, these will automatically put you in more bonds as you age.

Pay attention to the tax drag on your portfolio. There are studies that show it can cost you 1-2% per year. It may not seem like much now, but when your portfolio hits 6 and 7 figures, it could cost you tens of thousands in gains.

02/27/2024

What are we doing for college funding once children are in the picture? Let's talk about that 👇

Our household financial plan prioritizes flexibility 💪 you never know where life will take you, especially with kids. A combination of two accounts we will fund and why:

1. 529 Plan
🟢 tax free growth, tax free withdraws when made towards qualified expenses
🟢 flexibility to use for college and qualified trade schooling or apprenticeship programs
🟢 ability to make tax & penalty free lifetime rollovers of $35k to a Roth IRA per beneficiary once opened for 15 years (start the 529 asap) if funds aren't used**

2. Brokerage Account (separate from our own)
🟢 ability to use funds beyond just qualified education expenses (i.e. funds to help start a business, first home purchase, etc.)
🟢 ability to keep invested for our own future if child does not use funds
🟢 more investment options, tax harvesting opportunities

*Each individual is different and will have different goals and considerations (scholarships, student aid programs, grants, etc.) so it's important you measure your own situation and consult a tax or financial advisor before implementing*

**very particular rules around this as of 2024, don't make this the leading factor in funding a 529 plan**

02/26/2024

Hit with a nice little ? this morning in the inbox: Is it better to invest in my Roth IRA in one lump sum, or Dollar Cost Average each month? 🌪

There are debates online about this you can read all day long. But it should come down to personal preference.

For high earners that want to get that lump sum in there and forget about it until next year, go for it.

For those that need to plan around their monthly cash flows and don't have the extra cash laying around right now, smaller monthly contributions will do.

If you start early, invest often, and don't make stupid mistakes, your funding schedule won't make THAT much of a difference. ⏯

02/23/2024

If you are appropriately invested for the long run, there will likely be times you open your account statement and see...

Your $100k fall to $80k

Your $200k fall to $160k

Your $500k fall to $400k

Your $800k fall to $600k

Your $1.2 million fall to $960k

That's the nature of doing business 📈 there is no magic bullet to avoid the volatility you will face in order to seek larger returns.

Compound interest and letting your money work for you is an incredible thing, but it's never a linear ride 🎢

02/22/2024

One of the biggest financial decisions you could ever make in your life: who you choose to spend the rest of your life with⚓⬇

Becoming one household financially is a HUGE deal, here are some ideas on how to "become joint":

1. 50/50 Club ➡ keeping separate checking accounts for personal expenses, and open a joint account where all bills are paid from with EQUAL monthly deposits from both parties

2. % of Income ➡ same as above, but for spouses whose income greatly differs, taking each spouse's income ➗ total household income, and paying bills based off of that ratio

3. Categories ➡ each partner chooses a category (i.e. internet bill, phone bill, insurance, etc.) and pays for those items themselves. Not the best, but can work if the math checks out

4. 100% Joint ➡ one joint account where all paychecks and bills go in and out. Takes the most trust and discipline, but most efficient for tracking cash flows

It's important that BOTH spouses learn and understand their families financial picture, where everything is located, and all the moving pieces. Not just one spouse playing golf with their old head advisor 👨‍🦳

02/15/2024

🚨Guaranteed 15% or more, tax free rate of return hack 🚨

Pay off those high interest credit cards ‼

It's so simple, yet half of Americans have held a credit card balance for over a year. What are we doing?

The sad thing is, those people who get their tax return this year will likely splurge on something outside of helping themselves out of the hole.

Establish your 'emergency fund' early to avoid this mistake, and replenish often.

Keep eyes on your financial picture, and automate your savings.

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Kalamazoo, MI
49009

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+12693217472

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