Money Roots

About the Guest(s):

Liz Zemak is an experienced financial advisor and homeowner. With a background in personal finance and a passion for helping others, Liz has dedicated her career to educating individuals on the importance of financial planning and homeownership. She has successfully navigated the challenges of building a home and has firsthand experience with needing a personal property inventory. Liz is committed to empowering others to take control of their finances and protect their assets.

Episode Summary:

In this episode of Money Roots, Liz Zemak discusses the importance of creating a personal property inventory. She shares her own experience of having her tools stolen during the construction of her home and emphasizes the need for proper documentation when filing an insurance claim. Liz provides practical tips on how to get started with a home inventory, including listing items room by room, capturing detailed information such as purchase date and cost, and taking photos or videos of valuable items. She also highlights the benefits of maintaining an up-to-date inventory, such as accurate insurance coverage and estate planning. Liz emphasizes the importance of revisiting the inventory regularly and keeping it secure.

Key Takeaways:

• Creating a personal property inventory is crucial in the event of a loss or damage to your belongings.
• The burden of proof is on the property owner when filing an insurance claim, so having a detailed inventory is essential.
• Start by picking an easy spot to begin, such as a room with valuable items, and list everything in that room with as much detail as possible.
• Include purchase date, cost, make, model, and serial numbers for items that have them.
• Take photos or videos of each item, including the model and serial numbers, and keep receipts and appraisals with the inventory.
• Store the inventory securely, either in a safe, a safe deposit box, or with a trusted contact.
• Regularly update the inventory and review your insurance coverage to ensure you are adequately protected.
• A personal property inventory can also be useful for financial planning and estate planning purposes.

Notable Quotes:

• "The burden of proof is on the property owner, not the insurance company. So you're gonna have to have something to present to the insurance company to say that these are the items that I owned and, you know, that they were damaged or stolen." - Liz Zemak
• "The more detailed you can be, the better off you're going to be when and if you need to make that claim." - Liz Zemak

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About the Guest(s):

Liz Zemak is a financial planner and this weeks host of the Money Roots podcast. With years of experience in the financial industry, Liz helps individuals and families make informed decisions about their money and investments. She is passionate about helping people create a comfortable and enjoyable living space without breaking the bank. Through her podcast and articles, Liz provides valuable insights and tips on home improvements, budgeting, and financial planning.

Episode Summary:

In this episode of the Money Roots podcast, host Liz Zemak explores the decision between making home improvements or purchasing a new home. With current mortgage interest rates high, Liz suggests considering upgrading your existing space to create a comfortable and desirable living environment She discusses various ideas for home improvements, such as installing a home security system, investing in a generator, adding an addition to your home, and creating a multigenerational living space. Liz emphasizes the importance of setting priorities, communicating with family members, and creating a budget or spending plan for these upgrades. She also highlights the value of landscaping and curb appeal in enhancing the overall enjoyment of your home. With the current interest rate environment, Liz encourages listeners to explore the possibilities of improving their current homes rather than moving.

Key Takeaways:

• Evaluate your current mortgage interest rate compared to the rates for selling and buying a new home.
• Lay out your priorities and determine the upgrades you want for your home.
• Consider installing a home security system or investing in a generator for added security and convenience.
• Explore the possibility of adding an addition to your home to create more space.
• Communicate with family members to determine their needs and desires for the living space.
• Create a budget or spending plan for the home improvements over time.
• Enhance the curb appeal of your home through landscaping and other exterior upgrades.

Notable Quotes:

• "In today's interest rate environment, it's important to really make the choice to stay in the home that you're currently in if you have one of the lower interest rates." - Liz Zemak
• "Make sure you're communicating with each other and really laying out what's important and what you each are desiring." - Liz Zemak
• "Think about what you can do to create a space that you truly enjoy, even if you rent." - Liz Zemak

Resources:

About the Guest(s):

• John Graham: John is an author and professor who has taught international marketing for 40 years at USC and UCI. He co-authored the book "Under One Roof: Creating Harmony for Multi-Generational Living" with his sister Sharon and daughter Emily. John brings his expertise in marketing and his personal experience with multi-generational living to the book.
• Emily Graham: Emily is the daughter of John Graham and co-author of "Under One Roof." She has a background in palliative and hospice care, end-of-life care, and grief counseling. Emily's contribution to the book focuses on these topics and provides valuable insights into the healthcare considerations of multi-generational living.

Episode Summary:

In this episode, host Amy Irvine is joined by John Graham and Emily Graham to discuss their book "Under One Roof: Creating Harmony for Multi-Generational Living." They explore the importance of multi-generational living, the challenges and benefits it brings, and how to navigate the complexities of living with multiple generations under one roof. They emphasize the need for open and honest conversations, planning for healthcare and end-of-life care, and finding a balance between privacy and proximity. The book provides practical advice and guidance for families considering multi-generational living and offers insights into creating a harmonious and supportive living arrangement.

Key Takeaways:

• Multi-generational living is a solution to the challenges faced by families today, such as the high cost of housing and the need for support and care for aging parents.
• Open and honest conversations are crucial when considering multi-generational living, allowing all family members to express their needs, concerns, and expectations.
• Planning for healthcare and end-of-life care is essential in multi-generational living arrangements, ensuring that everyone's needs are met and that there is a support system in place.
• Finding a balance between privacy and proximity is key to successful multi-generational living. Separate living spaces, clear boundaries, and open communication can help maintain individual privacy while fostering a sense of togetherness.
• Multi-generational living can provide emotional support, companionship, and shared responsibilities, creating a strong sense of family and community.

Notable Quotes:

• "Multi-generational living is a renaissance of an idea that has been practiced in many cultures throughout history." - Emily Graham
• "Having open and honest conversations about multi-generational living can prevent crises and help make informed decisions." - John Graham
• "Multi-generational living is about creating a supportive and loving environment where everyone's needs are met." - Emily Graham

Resources:

About the Guest(s):

Kerrie Beene is a certified financial planner and the Chief Investment Officer at Rooted Planning Group. With years of experience in the financial industry, Kerrie has helped numerous clients navigate their financial journeys and make informed decisions about their investments. She specializes in retirement planning and is passionate about helping individuals achieve their long-term financial goals.

Episode Summary:

In this episode of Money Roots, Kerrie Beene, a certified financial planner, explores the topic of 401K loans and the tax implications associated with them. She discusses how 401K loans work, the rules set by the Internal Revenue Service (IRS), and the importance of understanding your employer's specific rules. Kerrie highlights key considerations such as loan limits, repayment periods, interest rates, loan purposes, and employment status. She also emphasizes the tax implications of 401K loans, including potential income tax and withdrawal penalties. Kerrie advises listeners to explore alternative options before taking out a 401K loan and to consult with a financial advisor to ensure alignment with long-term financial goals.

Key Takeaways:

• 401K loans are available to anyone with a 401K account and have a simpler and quicker application process compared to traditional loans.
• The IRS sets limits on how much you can borrow from your 401K, generally up to 50% of your vested account balance or $50,000, whichever is less.
• Repayment periods for 401K loans are typically within five years, although longer periods may be allowed for loans used to purchase a primary residence.
• The interest rate on a 401K loan is often based on the prime rate plus an additional percentage determined by your plan. However, the interest paid is not tax deductible.
• Some plans may have restrictions on the type of expenses for which you can borrow from a 401K loan, so it's important to check with your employer.
• If you leave your job, the outstanding balance of the loan may become due immediately, potentially subjecting it to taxes and penalties.
• Failure to repay the loan according to the terms outlined in your plan could be considered a distribution, resulting in income tax and a potential 10% withdrawal penalty.
• Administrative fees may be charged for processing and maintaining the loan, which are typically deducted from your account balance.
• Taking out a 401K loan means missing out on potential growth in your retirement savings, so it's crucial to consider the long-term impact on your financial plan.

Notable Quotes:

1. "While you are repaying yourself, that money did become uninvested, and you will be investing it later, but you are missing out on that growth there." - Kerrie Beene
2. "If you decide to take out a 401K loan, make sure you only borrow what you need and have a solid plan in place to repay it promptly." - Kerrie Beene

Resources:

About the Guest(s):

Kerrie Beene is a certified financial planner and the Chief Investment Officer at Rooted Planning Group. With years of experience in the financial industry, Kerrie is dedicated to helping individuals achieve their long-term financial goals through strategic planning and disciplined investing. She is known for her expertise in investment management and her ability to guide clients towards financial success. Kerrie's passion for educating others about personal finance has made her a sought-after speaker and advisor in the field.

Episode Summary:

In this episode, Kerrie Beene, a certified financial planner and Chief Investment Officer at Rooted Planning Group, shares the timeless wisdom of the fable "The Tortoise and the Hare" and how it applies to our financial lives. She emphasizes the importance of consistency, avoiding impulsive behavior, the power of compounding, and the virtue of patience in achieving long-term financial success. Kerrie highlights the parallels between the fable and investing, encouraging listeners to adopt a slow and steady approach to their financial goals.

Key Takeaways:

• Consistency wins the race: Just as the tortoise consistently plods along the course, investors who consistently contribute to their portfolios or retirement accounts tend to achieve better long-term results than those who try to time the market or chase short-term gains.
• Avoiding impulsive behavior: The hare's impulsive decision to take a nap during the race serves as a cautionary tale against impulsive investment decisions driven by emotions such as fear and greed. Investors should avoid chasing hot stocks or market trends and instead focus on a long-term strategy.
• The power of compounding: Similar to the tortoise's slow but steady progress, compounded growth can have a significant impact on investment returns over time. Understanding and harnessing the power of compounding interest can lead to substantial financial gains.
• Patience pays off: The fable of the tortoise and hare emphasizes the virtues of patience and discipline. Successful financial planning requires individuals to exercise patience in pursuing their goals and adhere to saving and investing strategies. Historically, the stock market has delivered positive returns over the long term, and embracing a long-term perspective can help investors benefit from the power of compounding.

Notable Quotes:

1. "Slow and steady wins the race." - Kerrie Beene
2. "Consistency and discipline are key to achieving long-term financial success." - Kerrie Beene
3. "Avoid impulsive investment decisions driven by fear or greed." - Kerrie Beene
4. "Understanding the power of compounding interest is crucial for maximizing investment returns." - Kerrie Beene
5. "Patience and perseverance are essential for successful financial planning." - Kerrie Beene

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