Money for Life with Eric Roberge, CFP

Most 401(k) advice stops at "contribute enough to get the match." But your 401(k) can hold far more than the number most people have memorized — and if you're a high earner, that gap could be worth millions by retirement. In this replay episode, Eric and Kali break down the layers of a 401(k) that go beyond the standard employee contribution and explain: After-tax contributions Employer profit-sharing The mega backdoor Roth conversion strategy that lets high earners move a much larger amount into tax-advantaged accounts than most realize is possible And if you're wondering if your 401(k) can help you retire before the standard withdrawal age, the answer is yes: using legitimate strategies like 72(t) distributions and the rule of 55 for accessing that money early without triggering a penalty. But there are some pitfalls to watch out for, including vesting schedules that can cost you employer contributions if you leave too soon, the job-switch math error that leads to accidental over-contribution, and why your plan document (not HR, not your provider's call center) is the only place to get a straight answer. This is a replay of a past episode. The specific dollar figures and IRS contribution limits referenced were accurate at the time of original recording and have since increased, but the strategies and planning principles remain fully relevant today. Friendly reminder to check current-year IRS limits before applying any numbers to your own plan! Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule

Join us as we dive deep into college planning, including how to pick your perfect college, reduce how much it costs, and maximize the financial aid available to you with college planning expert Jack Wang. Uncover the insider strategies that can dramatically reduce what you pay for your child's college education with Jack's unique insights from his meetings with college admissions and financial aid directors across the country. Jack explains how and why every institution approaches aid differently -- and how knowing that can help your family gain more leverage over the college selection and funding process. In this episode, Eric and Jack walk you through: The importance of starting college planning in freshman year of high school (not junior year!), as starting sooner can open up significantly more financial opportunities The critical difference between maximizing aid and optimizing how you pay for college Why flexible savings strategies often outperform traditional 529 plans Jack also shares advanced tax strategies including leveraging appreciated stock, accessing the American Opportunity Tax Credit, and why aligning your child's extracurriculars with their intended major matters more than you think. Whether you're a high-income earner wondering if you'll qualify for any aid at all, or a parent just beginning to think about college costs, this episode provides actionable strategies to help you play the college financial aid game and come out on top. KEY TAKEAWAYS 1. Start planning for college financial aid earlier than you think: Begin college financial planning by freshman year of high school to maximize aid opportunities, not junior or senior year when most families think they should start touring schools or looking into scholarships and aid options. Remember that college choice has big implications in this process, too! 2. Know that every college handles aid differently: There's no universal formula that all universities follow. Each institution has its own approach to financial aid and scholarships based on their values and objectives. Families and students should seek to understand the approach to aid and scholarships of the particular schools they are considering. 3. Keep college savings dollars flexible: While 529 plans are designed for college savings and do offer tax benefits, you probably want to avoid locking all the funds you're setting aside for college costs into 529 plans. Having flexibility in non-college-specific accounts can actually help you qualify for more aid without penalties. 4. There are two distinct, and critical, questions for parents and students to answer when it comes to planning for college costs. As part of your planning strategy, you'll want to understand: How to maximize aid to bring down costs What's the best way to actually pay for college (including advanced tax strategies) College planning is like buying a car, in that there are different pieces of the puzzle to navigate and the order in which you do that matters. First, you'll want to negotiate the best price (maximize aid). That will help you then determine the optimal payment method. 5. Align your child's extracurriculars with their intended major if you can: For top-tier schools, your child's activities should demonstrate genuine interest in their planned field of study, starting as early as middle school. 6. Advanced strategies exist for high earners: Even families with significant income can reduce college costs through strategic use of appreciated stock, timing, and tax credit optimization. Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule

Estate planning isn't just for the ultra-wealthy or elderly or "other people who need it but not me." It's a critical financial planning step for anyone who is trying to build their wealth who also wants to protect their loved ones - particularly children who are minors. Eric Roberge, CFP sits down with estate planning attorney Michael Broderick to demystify the estate planning process and reveal what mid-career professionals really need to know about having an estate plan, including: The biggest misconception people have about estate planning Why this kind of protection planning so important within the framework of an overall financial plan What goes wrong when you DON'T have an estate plan in place What actually makes up an estate plan for someone in their 30s and 40s How to determine when you need an attorney (and when you don't) The challenges with online estate planning services and make-a-will websites Eric and Michael also look at the unique considerations for younger clients with young families, including how to deal with digital assets like cryptocurrencies, online banking, social media, digital photos, and credit card points. Michael breaks down the common misconceptions about estate plans, explaining why they're not just about "who gets what" but rather a comprehensive set of decisions about guardianship, financial management, and healthcare. He shares practical insights on choosing guardians and trustees for minor children, the difference between joint and individual trusts, and why coordinating your estate plan with your actual assets is absolutely critical. You'll also learn about the pitfalls of online estate planning services, when to have important conversations with both your children and aging parents, and the one thing everyone should do right now (even without a formal estate plan!) to protect their loved ones. Whether you're just starting to think about estate planning or looking to update an existing plan, this conversation provides the clarity and actionable guidance you need to move forward with confidence. KEY TAKEAWAYS 1. Estate planning is for everyone You don't need millions or a countryside manor to need an estate plan. An estate is simply your bundle of decisions about care, custody, and assets. Everyone has decisions to make around these components of your financial and family life. 2. Guardianship requires careful thought Choosing who will raise your minor children if something happens to you is often the most difficult estate planning decision. Consider separating the guardian role (physical custody) from the trustee role (financial management) if different people are better suited for each. 3. Documents alone aren't enough The real value of estate planning isn't the documents themselves. It's the planning process that coordinates your documents with your actual assets. Without proper coordination, your estate plan may fail to accomplish your goals. 4. Avoid online shortcuts While online estate planning services may seem cost-effective, they typically lack the critical planning component that ensures your documents align with your real-life assets, accounts, and family situation. 5. Fund your trust properly! One of the most common estate planning failures is creating a trust but never retitling assets into it or updating beneficiary designations. This simple oversight can derail your entire plan. 6. Update beneficiary designations periodically Even without a formal estate plan, keeping beneficiary designations current on retirement accounts, life insurance, and brokerage accounts can help 95% of your assets transfer smoothly outside of probate. 7. Have estate planning conversations early Talk with nominated guardians and trustees about your expectations before a crisis occurs. Also, encourage aging parents to complete basic documents like healthcare proxies and powers of attorney to avoid court-appointed guardianships or conservatorships. Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule

What's your first money memory? How much are you ACTUALLY saving each year? Where do you have a hard time using your money? These kinds of financial questions rarely come up in conversation, but they are critical to ask, consider, and consider what your answers mean for your money. Discover how your earliest money memories (often from ages 3-7) are still running your financial decision-making today, why most people can't answer how much they're really saving, and how to build a money management system that works with your emotions instead of against them. Eric and Kali also share their own money memories and reveal what percentage of their income they save each year. Whether you're struggling to spend, save, invest, or give, this episode will help you uncover the hidden beliefs and patterns influencing your financial life—and give you the clarity to make better decisions aligned with what truly matters to you. KEY TAKEAWAYS 1. Early experiences around money shape your financial behavior throughout your life. Most people's money beliefs are formed between ages 3-7 and continue to unconsciously drive financial decisions decades later. Asking about your first money memory is a starting point to uncovering some deeper drivers that may influence the decisions you make without you realizing. It's not about judging these memories or trying to change them. It's simply about bringing awareness to them, so you can be more intentional (versus reactive or reflexive) with your choices moving forward. 2. Track your savings rate, not just dollars saved. A lot of people ask "how much should I save?" Very few people know precisely how much they save every year and an even smaller amount calibrate that number to their income. By setting your target as a percentage of income versus dollar amount, you can keep your long-term goals on track and always relative to the money you made in a particular year. 3. Focus on what you can control. Your savings rate is within your control; market returns are not. Consistent savers outperform those chasing investment "moonshots" 4. Build an intentional money management system. Create objective processes and structures first, then layer in emotions as choices rather than letting emotions lead your decisions. We can't let spreadsheet math dominate the decision-making, but we do need to get grounded in financial reality first. Having solid frameworks can help you play and provide room for error without derailing your entire plan. 5. The signal will always be subjective. It's good advice to "find the signal in the noise," but the challenge is there are many valid signals. Which one to tune into? To determine the frequency that's best for you, start by defining your values and priorities. That will help you narrow down the potential options to ones that actually align with what you're trying to accomplish. Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule

Are you constantly running on empty, juggling work, family, and endless household tasks? Then you may need to take advantage of an often-underutilized strategy for high-earning professionals: use your money to buy back your time. No, you should NOT do everything yourself, and we don't believe outsourcing is some kind of sign of moral failing or judgment on your inability to successfully manage things on your own. The truth is, using your money to buy back time is a strategic investment in what matters most. Discover how to create a "shed column" to identify which tasks are draining your time and energy, calculate the ROI of outsourcing using your hourly rate, and overcome the guilt many feel about asking for help. Throughout this episode, we share personal examples of how we've done this in our own life, including the biggest investment in ourselves and our time that we've made to date: hiring a house manager. We also explain the surprising benefits that you may not think of when trying to calculate ROI, like less stress in our relationship and modeling healthy boundaries for our daughter. Whether you're drowning in meal planning, house cleaning, or endless errands, this episode provides a practical framework for evaluating what to outsource first and how to make it work within your budget. Learn why investing in time (not just accumulating wealth on paper) might be the most valuable financial decision you can make, especially during your peak earning years when time with young children is most precious. KEY TAKEAWAYS 1. Start with your values, not your budget: Before deciding what to outsource, identify what matters most to you emotionally and practically. We didn't hire a nanny because spending time with our daughter was a top priority, but we DID outsource household tasks like cleaning, meal prep, and errands to create more family time. 2. Use the "shed column" strategy to prioritize: Create a list of everything you currently do, then move tasks you hate or shouldn't be doing into a "shed column." Prioritize outsourcing based on two factors: what's cheapest to delegate and what you despise doing most. This list can even become a job posting for a house manager or part-time assistant. 3. Think of outsourcing as leverage, not just spending: If your hourly rate is $300 and you pay someone $100 to handle household tasks, you're gaining an hour of higher-value time back. Even if you're not using that time to work more, you're investing in experiences and relationships, which has immeasurable value. 4. Don't assume there's no one to help you with your "shed" tasks. There are many people who enjoy this work and have the availability for part-time hours. 5. The mental load relief is as valuable as the time itself: Beyond the hours saved, outsourcing eliminates the cognitive burden of managing endless details—like creating grocery lists, tracking household supplies, or coordinating schedules. This mental space allows you to be more present with family and more effective at work. 6. Outsourcing reduces household tension and models healthy boundaries: When you're not constantly overwhelmed, you're less snippy with your partner and can enjoy quality time together. Your children also learn that it's okay to ask for help and create life balance, rather than viewing the "rat race" as inevitable. 7. The opportunity cost is real during peak earning years: The years when you need to be most present at work (peak earning years) often coincide with when your kids are young and need you most. Using money to outsource everything else during this critical window lets you focus on what truly can't be delegated—building your career and your relationship with your children. Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule

Thinking about buying a car? "Should I buy a car now, or wait?" has been an extremely popular question among our financial planning clients this year. So today, we're discussing the reality of car prices in 2025, how we think prices are likely to evolve (or not) over the coming months, and the planning considerations to take into account if you decide to buy now. We're also sharing our own real-world, personal experiences with buying two new cars in 2025 for fair market prices given the specific make and trim models of each, along with what we learned through the process and what we might do differently next time. We explained the exact negotiation strategies we used, including where to research fair market value, how to push for below invoice cost, the importance of focusing quotes on out-the-door pricing, and insights on avoiding sales pressure tactics at the dealership. Throughout this episode, you'll learn: Current car market trends and why prices likely won't drop Cash vs. financing: when each option makes sense How to research and prepare before visiting a dealership Practical negotiation tactics that work to ensure you're getting a reasonable deal Understanding out-the-door pricing and invoice costs Why timing matters: end-of-month vs. mid-month purchases Leasing considerations and when it might make sense Balancing car purchases with retirement savings and other goal And you'll hear Kali have a *moment* about a Mazda (maybe more than one; she's a fan). Whether you're considering a practical family vehicle or a luxury purchase, this episode will help you approach your car-buying decision with confidence and make sure it fits within the context of your other financial priorities this year. KEY TAKEAWAYS: Don't time the market (with cars, stocks, anything!). It probably does not make sense to try and wait for prices to drop if you need to buy a car and you have the cash to do so. Car prices are unlikely to decrease in the coming years due to supply and demand alongside impacts of inflation and tariffs. Cash is (usually) king for car purchases. Paying interest on a depreciating asset isn't the best financial move. If you must finance, aim to pay off the loan in under a year. Know exactly what you want before visiting a dealership. Research the specific make, model, trim, and color you want. Use resources like YouTube reviews from car enthusiasts and experts, like Throttle House, to compare vehicles and gather information. Focus on out-the-door price, not monthly payments. Dealerships will try to focus your attention on monthly payments, which allows them to manipulate loan terms in their favor. Always negotiate based on the total out-the-door price. Invoice price isn't the floor. Dealerships can and will sell below invoice price because manufacturers often provide holdbacks and other incentives that aren't disclosed upfront to buyers. Two effective negotiation approaches: (1) Email multiple dealerships for quotes before visiting, or (2) Visit in person armed with fair market value research and be willing to walk away. End-of-month or end-of-quarter timing gives you more leverage. Be prepared for upsells after the purchase. Dealerships make a lot of their profit on warranties, maintenance packages, and add-ons… not necessarily the car itself. Default to saying no unless you have specific reasons to accept. Balance car purchases with long-term goals. Even if you have cash available, consider whether buying a car will impact your retirement savings rate (ideally 20-25% of income) or other important financial goals. Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule

Is all risk bad? How can you tell how much risk you should take, or know when you're not taking ENOUGH risk to earn the return you need? What's more important, risk tolerance or risk capacity? With 2025's market volatility creating concern and worry for investors, we're exploring why no investment worth making is without risk… and why trying to avoid all risk presents a danger to your ability to grow wealth. Discover the critical difference between risk tolerance (how comfortable you feel) and risk capacity (what you can actually afford to lose), and why this distinction changes everything about how you should invest. We also share real stories from our wealth management clients about concentration risk with company stock, the hidden dangers of keeping too much money in cash, and why the "safest" choice often isn't safe at all. In this episode, you'll hear: Why avoiding one type of investment risk (market risk) creates another, potentially more dangerous one to content with The difference between risk tolerance and risk capacity and why you have to evaluate both as part of a good investment management strategy How to handle concentration risk if you receive equity compensation Ways to reduce volatility and overall investment risk (without skipping out on the investment experience!) The concept of "lifestyle risk" and unforced errors How to calculate risk based on your specific goals and timeline Whether you're dealing with volatile markets, managing equity compensation, or simply trying to understand what level of risk makes sense for your situation, this episode provides a framework for making intentional decisions about where to place your risks—because the goal isn't to eliminate risk, but to manage it strategically. KEY TAKEAWAYS #1: No Such Thing as a Free Lunch If You're Trying to Grow Wealth Risk and reward have a relationship. You cannot have one without the other. Avoiding market risk doesn't eliminate risk, it just creates another; cash will most likely lose purchasing power over time. The "safe" choice of avoiding the market can jeopardize big, long-term financial goals #2: Risk Tolerance and Risk Capacity Are Critical… and Two Different Things Risk tolerance = How comfortable you feel emotionally with market ups and downs Risk capacity = What you can actually afford to lose based on your timeline and goals Your risk capacity often matters more than your risk tolerance for making sound financial decisions You may need to take more risk than feels comfortable, or you may not be able to afford the risks you feel emotionally okay accepting #3: Time Horizon is a Great All-Purpose Risk Management Tool There has never been a 15-year rolling period when the U.S. stock market was down The longer your investment timeline, the less risk you have of losing money Short-term volatility often becomes irrelevant when you're investing for 10+ years Warren Buffett made 99% of his wealth after age 60; wealth-building power is found in the long tail of compounding returns #4: Manage Concentration Risk Strategically Don't keep all your wealth tied up in your employer's stock, even if you believe in the company Your paycheck already depends on your company's success; being overweight in company stock commits even more of your personal finances and net worth potential to a single company who also happens to employ you Consider a rules-base, repeatable, simple strategy for managing your equity comp to steadily build wealth without opening yourself up to more volatility than necessary You're not "missing out" if you sell and reinvest! You're locking in gains along the way #5: Your Biggest Risk as You Build Wealth May Come from Unforced Errors A risk you didn't have to take can be the undoing of years, even decades, of hard work in saving and investing Calculate the impact of realizing a risk and ask, can you truly afford to see that downside potential? Can you actually recover from the potential loss, and how far back would it set you? #6: Your Risk Strategy May Need to Evolve with Your Life Risk tolerance and capacity change as your life circumstances change (marriage, kids, aging parents); what made sense when you were single may not work when you have dependents Regularly reassess your risk strategy as your goals and priorities shift, and know it's okay to become more conservative as you have more to protect #7: Know What "Enough" Looks Like For goals you MUST realize, prioritize probability of success over maximum returns Reverse engineer your investment strategy from your actual needs, not from the vast realm of what's possible but not probable Know what "enough" looks like so you can make informed trade-offs Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule

How kids change you can be delightfully surprising. But they'll change your financial plan, too, in ways that might be challenging if you don't know how to adjust. In what is probably news to no one, things change when you have kids. You know your responsibilities will shift. Your schedule will probably get upended. The smaller your children are, the less personal freedom you may have. How you experience all this, however, is unknowable. The process itself alters who you are now, and how you perceive and react to your life with kids in ways that you could not have even imagined when you were childfree. If you yourself are changed, you can expect your financial plan will need some adjustments too! You're going to have new goals. Your regular, ongoing expenses increase. You're financially responsible for more; more can go wrong simply because there are more variables in the form of another human being in your life that you must care for and protect. We dig into all this and more in this episode, where we share: The trickiest part of transformative experiences on our lives Our suggestion for solving the "wild problems" we all encounter (from the decision to have kids to any other major life choice or transition) How having a child changed each of us personally Updates you might need to make to your goals or priorities after having children The impacts kids can make on your present-day cash flow as well as your long-term financial objectives What strategies might need to shift within your financial plan to accomodate a growing family Why saving what you can when you can is so critical What you need to consider if generational wealth is important to you