The Financial Detox® Show

On this show Jason and Alex discuss the massive stimulus program called the Coronavirus Aid, Relief, and Economic Security (CARES) Act. One of the components of the Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Another component that peaked the interest of many is the provision to send most Americans direct payments of $1,200, or $2,400 for joint filers, plus $500 for each child. The amount of the payments will be reduced for those with higher incomes. For individuals filing taxes as singles, the reduced amount begins at an adjusted gross income (AGI) of $75,000 per year and is completely phased out at $99,000. For joint filers, the reduced amount begins at $150,000 and payment is eliminated at $198,000. Your AGI will be determined [...]

This show explores the definitions and relevance of an investor’s IQ, EQ and FQ. Major market events like the one that we have been experiencing these past few weeks puts us to the test on all three. The DALBAR Quantitative Analysis of Investor Behavior Study uncovers data that explains the mistakes that investors make. These mistakes tend to be driven by emotions and have caused investors to underperform broad markets significantly over the past 20 plus years. The show starts by discussing our intelligence quotient (IQ) which is a total score derived from a set of standardized tests designed to assess human intelligence. Next is our EQ. An average EQ score ranges from 90-100, with a perfect score measuring 160. Those who score high on this test tend to demonstrate tendencies to make an effort to understand and empathize with others. Those with below average EQ scores can increase [...]

This show marks week three of COVID-19 for our country. These are the times that test us most. On this show Jason and Alex remind listeners that humanity has persevered through many very difficult forms of adversity and we will persevere through this, too. Our ability to do so relies on our resolve to control the things that we can while accepting what we can not. The show focuses on correlating this concept to investing. Jason and Alex start with what we did before COVID. Build a comprehensive financial plan that determined an investment strategy that matches your personal plan. This financial plan and investment strategy would then take into consideration the probability of success of weathering all past major market events and preparing for more of them to come. Now that a major market event has hit, this investment strategy needs to be managed in a way to [...]

This week has brought so much uncertainty and even panic for the American public. In today’s show Jason Labrum and Alex Klingensmith hope to bring some reality to the situation with regards to the financial markets and what this means going forward for investors. During this time the advantages of free market capitalism and the American public’s opportunity to make an action plan have become a huge asset to every American. Although the markets are shaky and declining history shows us, they WILL recover. Even more important if an investor misses the best days of the market, which history shows come during the Bear Markets and the recovery, the returns are so much lower. Getting in and out of the market/ timing the market will harm investors returns. The goal of this show is reinforcing the principles of proper investing. -What to do before major markets events: Have a [...]

Jason and Alex welcome special guest Mike Battin. Mike is a founder, partner and business attorney of Navigato & Battin based out of San Diego. Casual conversation about intermittent fasting and ketosis transitions into the newly implemented employer law dictating employee classification between independent contractors and W2 employees. This crucial topic affects thousands of California businesses and is a very important law to get right. The previous law consisted of an 18-step test to determine classification. That law has now been narrowed to a three-step test commonly called the ABC test. This makes it easier to navigate but easier to flunk. Mike explains the tests this in detail going into how they measure whether an employer exerts control over the employee, whether the worker has an independent business and regularly engages in that business and if the employee is in the same business of the employer. The ABC test [...]

Politics and investing intersect in this show where Jason and Alex pose a tough but important question to investors. Is your investment philosophy impeachable? Impeachment is defined as the act of calling into question the integrity or validity of something. Markets have been extremely kind to investors in recent history which may be causing many to have a false sense of confidence. A rising tide lifts all boats. One of the more common investment philosophies is to have an extreme home bias towards a US only portfolio. We buy what we know. While US Large cap and FAANG investors have been rewarded by recent market performance, Jason shares evidence over both 10 and 48 year time frames where a globally diversified portfolio performed significantly better than an all US Large Cap one. The lost decade was a clear example of how important it is to think bigger than just [...]

Jason and Alex kick off the new year by reframing the purpose of Financial Detox and conclude that it is “Helping You Make the Most of Your Wealth”. They proceed further by talking about the importance of having a purpose in how you invest and how to best set goals for success. Some studies show that 80% of new year’s goals are abandoned after one month and only 8% of these goals are even achieved by the end of the year. In an effort to help you not become that statistic, Jason and Alex share time tested goal setting techniques such as “The Wheel of Life” introduced by good friend Mark Robertson. Having a balanced approach to goal setting leads to a balanced life. They take it one step further by wrapping in the well-known concept of SMART goal setting and that by using this foundation you will have [...]

2020 is off to the races and the markets continue to break record highs. Is it time to sell and capture profits? Jason and Alex explore this question and many others that investors are asking themselves with balancing both comedy and academic evidence in their responses. They discuss the past and how looking back can be helpful when making decisions about the future. Election years tend to evoke many emotions about what could happen depending on who is elected into office. Recent tensions in Iran and what could spark a war most certainly do as well. The acceleration of technology and how it’s forcing entire industries to evolve and remain relevant have investors speculating more than ever on emerging industries. What are we to do with all this information? And what predictions can we make about the future as it pertains to investing? Jason also tackles a very important [...]

Rich Gaines with Legacy Legal joins Jason Labrum in the studio today to discuss ALL things tax, legal and financial advice. Rich specializes in working with tax law to benefit people in protecting and preserving their wealth for generations. Legacy Legal collaborates with IDA to assist in the creative planning process so clients have a holistic plan when it comes to their future and their wealth. Exercise your constitutional right to pay the least amount of taxes possible! In this show you will learn about: Three different levels of tax savings Reduce tax liability and maximize amount of money to pass on to your heirs What should you do to upgrade your trust so it makes the most sense for your circumstances Contact an Adviser Today

Jason and Alex welcome IDA’s newest wealth adviser, Cari Leamy to the show for her first time. Also back on the show is Director of Portfolio Management at IDA, Andrew Grant. Andrew starts off the show talking about a technical year end must do, evaluating potential capital gains exposure. These capital gains are something that mutual funds pass on to investors on their record dates. They become relevant at the end of the summer but becomes especially important when deciding to buy or sell mutual funds this time of year because buying a fund right before the date may not make sense. The show then transitions into the spirit of giving that the holiday season tends to bring to all of us. Alex talks about how you can donate to your favorite charities via a direct qualified contribution from your IRA. This strategy fits very well for those who [...]