SMPL Money

Fun With Charts

Hosts: John and David Thompson
Episode Summary:
In this episode of SMPL Money, John and David take a unique approach to discussing finance by analyzing fun and interesting charts related to real estate, market trends, and even the Tooth Fairy Index. They explore how data can tell compelling financial stories and provide insights into topics like homeownership rates, insurance costs, stock market movements, and generational wealth shifts.
Whether you're a numbers person or just enjoy seeing trends visually, this episode will give you a fresh perspective on financial patterns and how they impact our daily lives.
What You'll Learn:
How U.S. home values have grown to nearly $50 trillion
The surprising percentage of millennials who own homes
Why homeowners insurance costs are rising and what it means for you
How the stock market and the wealth effect influence spending habits
The staggering number of people turning 65 daily in the U.S.
The Tooth Fairy Index—does it really track with the stock market?
Timestamps:
[00:00:00] Introduction – A new approach to discussing finance with charts
[00:01:00] Chart 1: The total value of U.S. homes hits $50 trillion
[00:02:30] Chart 2: Millennials now own over 20% of U.S. homes
[00:04:00] Chart 3: Rising homeowners insurance costs and what it means
[00:06:30] Chart 4: The stock market’s impact on consumer spending
[00:08:00] Chart 5: The number of people turning 65 daily and its financial impact
[00:10:00] Chart 6: The Tooth Fairy Index – Does it mirror stock market trends?
[00:14:00] Final thoughts – The power of data in financial decision-making
Resources Mentioned:
U.S. Home Value Data – Understanding real estate trends
Millennial Homeownership Stats – Breaking down generational wealth shifts
Homeowners Insurance Costs – Why premiums are skyrocketing
Stock Market & Wealth Effect – How market trends shape financial behavior
Tooth Fairy Index Study – A lighthearted look at economic sentiment
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives.

All About Volatility

Hosts: John and David Thompson
Episode Summary:
In this episode of SMPL Money, John and David dive into the topic of volatility—not just in financial markets, but in everyday life. They explore how market fluctuations, mortgage rates, and stock movements can impact decision-making, and why volatility is often an opportunity rather than a threat.
John shares insights on how younger and older investors should approach volatile markets differently, while David provides key takeaways on managing emotions, dollar-cost averaging, and making smart investment choices. Whether you're a seasoned investor or just getting started, this episode will give you a fresh perspective on handling uncertainty.
What You'll Learn:
What volatility really means and how it applies beyond finance
How mortgage rates, stock markets, and crypto are affected by volatility
Why younger investors have an advantage during market downturns
The importance of time horizons when making investment decisions
The psychology behind fear-driven selling and market dips
Practical strategies like dollar-cost averaging and portfolio diversification
Timestamps:
[00:00:00] Introduction – What is volatility and why does it matter?
[00:01:00] Volatility in markets, mortgage rates, and beyond
[00:02:00] How financial volatility creates opportunities
[00:04:00] The impact of volatility on younger vs. older investors
[00:06:00] The connection between volatility and recessions
[00:08:00] Why investors panic and how fear drives market drops
[00:10:00] Strategies for handling market swings (dollar-cost averaging, diversification)
[00:12:00] Final thoughts – Zooming out and staying consistent
Resources Mentioned:
Japanese Candlestick Charting – Understanding market movements
Dollar-Cost Averaging – A proven investment strategy
Keith Fitzgerald's Advice – "Zoom out, the market always goes up"
Stock Market & Crypto Volatility – Navigating investment swings
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives.

All About Insurance

Hosts: John and David Thompson
Episode Summary:
In this episode of SMPL Money, John and David discuss the various types of insurance—why it is essential, how it works, and how to choose the right coverage based on your needs. They break down the misconceptions surrounding insurance and explain why having the right policies in place is a crucial part of financial planning.
What You’ll Learn
The purpose of insurance and why it is necessary
Common misconceptions about insurance and how to view it as an asset rather than an expense
Key differences between term life insurance, whole life insurance, and investment-based life insurance
The importance of health insurance, employer-sponsored plans, and selecting the right policy
How homeowners and renters insurance works and why coverage should be reviewed regularly
The role of umbrella insurance and who should consider it
When to start thinking about long-term care insurance and how it fits into financial planning
The importance of disability insurance for income protection
Timestamps
[00:00] Introduction – Discussing public perception of insurance[01:30] Misconceptions about insurance – Why people often see it as unnecessary[03:00] Life Insurance – Types, benefits, and when to consider getting it[07:00] Health Insurance – Employer-sponsored plans, HSAs, FSAs, and choosing the right policy[10:00] Homeowners and Renters Insurance – Ensuring adequate coverage and avoiding common mistakes[14:00] Umbrella Insurance – What it covers and why it is beneficial[16:00] Long-Term Care Insurance – Why it matters and when to start considering it[18:00] Disability Insurance – How it protects your income and why it is often overlooked[19:00] Final Thoughts – Reviewing policies annually and seeking professional guidance
Resources Mentioned
Insurance Comparison Tools: Policygenius, NerdWallet, The Zebra
Government Resources: Healthcare.gov for health insurance, National Association of Insurance Commissioners (NAIC) for general insurance guidelines
Books on Insurance and Financial Planning:
The Truth About Money by Ric Edelman
The Total Money Makeover by Dave Ramsey
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives

All About Interest Rates

Hosts: John and David Thompson
Episode Summary:
In this episode of SMPL Money, John and David break down one of the most important and often misunderstood financial topics—interest rates. They explore how interest rates impact borrowing, saving, and investing, and why understanding both sides of interest (paying vs. earning) is crucial for making smarter financial decisions. They also discuss the Federal Reserve’s role in setting interest rates, the effects of rate changes on mortgages, car loans, credit cards, and even savings accounts.
What You'll Learn:
The fundamentals of interest rates and how they influence personal finance.
How the Federal Reserve affects interest rates and what that means for everyday consumers.
The difference between borrowing rates (mortgages, car loans, credit cards) and earning rates (high-yield savings accounts, investments).
The concept of arbitrage and how banks make money on interest rate spreads.
The Rule of 72: A simple formula to estimate how long it takes for money to double at a given interest rate.
Why interest rates fluctuate and how they impact long-term financial planning.
Timestamps:
[00:00] Introduction to interest rates and why they matter
[01:30] The Federal Reserve’s role in setting rates
[03:00] Common misconceptions about interest rate changes
[05:00] How banks use arbitrage to profit from interest rate spreads
[07:00] The Rule of 72: Understanding how money doubles over time
[09:00] Interest rates on savings vs. market investments
[12:00] The importance of risk tolerance when earning interest
[14:00] Borrowing money: When does it make sense?
[16:00] Final thoughts on navigating interest rate changes
Resources Mentioned:
The Rule of 72 – A simple financial formula to estimate investment growth
Articles on how the Federal Reserve sets interest rates
Mortgage and investment rate calculators
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives

All About Refinancing

Hosts: John and David Thompson
Episode Summary:In this episode of SMPL Money, John and David provide an in-depth look at mortgage refinancing, covering when it makes sense to refinance, common mistakes to avoid, and how refinancing can impact your long-term financial goals. They discuss real-world scenarios to illustrate how refinancing can save money and improve cash flow, while also cautioning against common pitfalls such as extending the loan term without evaluating costs and the total interest paid.
What You'll Learn:
The basics of refinancing: what it is and how it can impact your financial goals.
The benefits of refinancing for lower interest rates, reducing monthly payments, and managing other debts.
Key terms to understand: loan term, discount points, break-even analysis, and blended rate.
Mistakes to avoid, such as extending the loan term without understanding the costs or adding substantial points.
The importance of doing a break-even analysis and understanding the costs involved in refinancing.
Timestamps:
[00:00] Introduction to mortgage refinancing
[02:00] Different refinancing goals: rate reduction, cash flow improvement, debt consolidation
[05:00] Understanding loan term and how extending it can affect long-term costs
[07:00] The impact of discount points and costs associated with refinancing
[10:00] Calculating the break-even point for refinancing
[12:00] Considering other debts and the blended interest rate
[15:00] When refinancing may not make sense
[17:00] Takeaways: analyzing the total cost of a mortgage before refinancing
Resources Mentioned:
Mortgage calculators for break-even analysis
Articles on the impact of refinancing on long-term financial goals
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives

Should You Buy or Rent?

Hosts: John and David Thompson
In this episode of SMPL Money, John and David tackle the classic question: “Should you buy or rent?” They dive into the factors influencing the decision, such as market conditions, cash flow, personal goals, and lifestyle considerations. With insights from their own experiences and practical examples, they discuss why owning a home might not always be the best financial choice for everyone and explore alternative ways to invest in real estate.
What You'll Learn:
The pros and cons of buying vs. renting in today’s market.
How location and affordability impact the decision to buy or rent.
The concept of opportunity cost: Why it’s important to consider what you could do with the extra cash flow from renting.
Different approaches to building wealth through real estate, including fractional ownership and investing out of state.
The importance of understanding your personal and financial goals when making housing decisions.
Timestamps:
[00:00] Introduction to the episode and hosts
[01:00] Exploring the traditional advice of “buying is always better” and its flaws
[02:00] Regional differences and their impact on housing decisions
[04:00] David’s personal experience renting in Los Angeles and how it affects his view on buying
[06:00] Alternative strategies for owning real estate before buying your first home
[08:00] Investing in real estate out of state or with friends as an entry point
[10:00] The financial and emotional components of owning a home
[14:00] Analyzing the cash flow differences between renting and buying
[17:00] Opportunity cost and using extra cash flow for investing
[19:00] Wrap-up: Should you buy or rent? It depends on your situation
Resources Mentioned:
Ric Edelman’s Article: 11 Reasons to Carry a Big Long Mortgage
Fundrise for fractional real estate investing
Resources Mentioned:
Your Money or Your Life by Vicki Robin and Joe Dominguez
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives

FIRE Movement

Hosts: John and David Thompson
Episode Summary:In this episode of SMPL Money, John and David discuss the principles behind the FIRE (Financial Independence, Retire Early) movement, drawing connections to the popular book Your Money or Your Life. They explore how people can build an ideal lifestyle by saving early, living frugally, and prioritizing time and freedom over material possessions. They also discuss how younger generations are redefining financial independence and retirement in modern times.
What You'll Learn:
An overview of the FIRE movement and what it aims to achieve.
Key insights from the book Your Money or Your Life and how it inspired the FIRE movement.
The psychological and philosophical components of financial independence.
Different approaches to achieving financial independence: Lean FIRE vs. Fat FIRE.
The importance of defining your ideal lifestyle and aligning your financial decisions with your life goals.
Timestamps:
[00:00] Introduction and overview of the FIRE movement
[02:00] How the book Your Money or Your Life influenced the FIRE movement
[04:00] Financial independence vs. early retirement: What do these terms mean for different people?
[08:00] The importance of living within your means and creating a gap between income and expenses
[12:00] Defining your ideal lifestyle: Sacrifices today for a better tomorrow?
[15:00] How younger generations are adopting flexible work lifestyles
[18:00] Lessons from the fulfillment curve and consumerism’s diminishing returns
[21:00] Tips for budgeting, saving, and working towards financial independence
[22:00] Final thoughts and actionable takeaways
Resources Mentioned:
Your Money or Your Life by Vicki Robin and Joe Dominguez
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives.

Mortgages Part 3

Hosts: John and David Thompson
Episode Summary:In this final installment of the Mortgages series, John and David continue discussing Ric Edelman’s reasons for carrying a big, long mortgage. They cover reasons 8 through 11, focusing on how mortgages can provide greater liquidity, flexibility, and help build long-term wealth. They also dive into the bonus reason that you're never really "done" paying for housing, whether it’s through a mortgage or other living expenses.
What You'll Learn:
Reason 8 & 9: Mortgages allow you to invest more money and do it more quickly, leading to potential wealth-building opportunities.
Reason 10: A mortgage gives you greater liquidity and flexibility, allowing you to keep more cash on hand for emergencies or investments.
Bonus Reason (11): You will always have housing costs, whether it’s through a mortgage or rent, so it's beneficial to leverage a mortgage strategically for long-term wealth.
Timestamps:
[00:00] Introduction to the episode and hosts
[01:00] The ability of a mortgage to allow quicker investments
[03:00] How having a mortgage affects wealth-building strategies
[06:00] Liquidity and flexibility: Why a mortgage can be an advantage
[10:00] Understanding ongoing housing costs even after paying off a mortgage
[14:00] Recap of the 10 reasons and the bonus reason for carrying a mortgage
Resources Mentioned:
Ric Edelman’s 10 Reasons to Carry a Big Long Mortgage
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives.

Buy Now, Pay Later

Hosts: John and David Thompson
Episode Summary:In this episode of SMPL Money, John and David dive into the growing trend of "Buy Now, Pay Later" (BNPL) services and the psychology behind debt. They discuss the different types of debt, the potential pitfalls of BNPL, and how it can impact financial behavior. The conversation also covers strategies for managing debt and making mindful financial decisions.
What You'll Learn:
The distinction between good debt (e.g., mortgages, student loans) and bad debt (e.g., high-interest consumer debt).
An overview of "Buy Now, Pay Later" services, how they work, and why they can be considered a form of high-cost debt.
The psychological impact of using BNPL services and how it can lead to unhealthy financial habits.
Practical tips for avoiding unnecessary debt and managing existing debt, including the debt snowball and debt avalanche methods.
The importance of mindful spending and setting financial priorities.
Timestamps:
[00:00] Introduction to the episode and hosts
[01:00] Discussion on different types of debt: good vs. bad debt
[02:00] What is "Buy Now, Pay Later" and why it can be dangerous
[05:00] The psychological effects of using BNPL services
[07:00] Alternatives to BNPL and strategies for managing debt
[10:00] The debt snowball vs. debt avalanche methods
[13:00] The importance of tracking spending and avoiding impulse purchases
[17:00] Final thoughts on financial discipline and future planning
Resources Mentioned:
Overview of debt management strategies like the debt snowball and debt avalanche (Link Here)
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives.

Mortgages: Part 2

Hosts: John and David Thompson
Episode Summary:In this episode of SMPL Money, John and David continue their discussion on Ric Edelman’s article, "11 Great Reasons to Carry a Big Long Mortgage." In this part, they cover reasons 4 through 7, diving into the tax benefits, the impact of inflation on mortgage payments, and how mortgages can provide liquidity without selling your home.
What You'll Learn:
Reason 4 & 5: The tax deductibility of mortgage interest and why it might not be as beneficial as you think for most people, given changes in tax laws and the standard deduction.
Reason 6: How mortgage payments become easier over time due to inflation and increased income.
Reason 7: The concept of "selling without selling," or how you can access your home equity through refinancing or a home equity line of credit without having to sell your property.
Timestamps:
[00:00] Introduction to the episode and hosts
[01:00] Overview of tax deductibility and its diminishing impact for most homeowners
[03:00] Understanding itemizing vs. standard deductions
[07:00] How inflation makes mortgage payments easier over time
[10:00] The benefits of long-term fixed-rate mortgages in the U.S.
[12:00] How to "sell without selling" by accessing your home equity
[14:00] Advanced strategies for using home equity, including risk management and financial planning
[15:00] Preview of the next episode covering the remaining reasons
Resources Mentioned:
Ric Edelman’s Article: 11 Great Reasons to Carry a Big Long Mortgage
Further reading on mortgage interest and tax deductibility
Connect with Us:Reach out to John and David with your questions or feedback. SMPL Mortgage
Follow us on social media for updates and more insights. @smplmortgage
If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives.