6 Guideposts to Increase Your Net Worth

6 Guideposts to Increase Your Net Worth Think investment returns are the key to building wealth? Think again! In this episode, Eric and Kali share six powerful guideposts that, if followed, can generate the power you need to increase your net worth. No stock picking or secret investment strategies only the rich know required. Discover why your savings rate matters more than your investment returns, why time in the market beats timing the market, and how to build financial flexibility into your plan so you can adapt to whatever life throws your way. You'll also hear about practical strategies for managing variable income, avoiding lifestyle creep, and making sure your spending aligns with what truly matters to you. If you're ready to focus on what you can control and build wealth the reliable way, this episode is packed with actionable advice you can implement immediately. Key Takeaways 1. Your savings rate matters more than your investment returns Focus on what you can control. Saving 25% of your income with modest 6% returns will outpace saving 10% even with exceptional (and totally unrealistic!) 14-15% returns. The math is clear: consistent savings beats hoping for outsized returns. 2. Time in the market beats timing the market  Stop trying to predict market peaks and valleys. Long-term participation in the market leads to successful outcomes far more reliably than attempting to jump in and out at the "right" moments. What looks obvious in hindsight is nearly impossible to predict in real time. 3. Plan for the unexpected to happen Build buffer room into every aspect of your financial plan. Keep extra emergency reserves, use conservative assumptions for income growth and savings rates, and save aggressively when you can so you have flexibility later when life inevitably changes. 4. Don't count on variable income for fixed expenses If you receive bonuses, commissions, or equity compensation, base your fixed expenses (mortgage, car payments, etc.) on your guaranteed income only. Use variable income as "icing on the cake" for savings and discretionary spending. 5. You determine what actually matters Avoid keeping up with the Joneses or following someone else's definition of success. Test different spending categories to discover what truly brings you joy and aligns with your core values—whether that's family, wellness, learning, or something else entirely. 6. The best plan adapts to change  Financial planning isn't about accurately predicting the future—it's about creating flexibility to adapt to whatever unfolds. Build modular plans that can evolve as your values, goals, and circumstances change over time.   Chapters: (00:00) Guideposts can help grow net worth (01:18) Your savings rate matters more than your investment returns (09:40) Time in the market beats timing the market  (14:17) Plan for the unexpected to happen (25:24) Don't count on variable income for fixed expenses (32:57) You determine what actually matters (39:07) The best plan adapts to change    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   

Looking for Beyond Finances? You're in the right place! Beyond Finances is now Money For Life, hosted by Eric Roberge, CFP and Kali Roberge. We’re back and focused on sharing our philosophy, action plans, and professional expertise on the financial planning strategies that help us, our clients, and now you, to create wealth that lasts a lifetime. In this episode we discuss why (and how) we focus on building financial planning strategies designed to create money for life, and share why it’s so important to approach money management in a way that allows you to enjoy life in the present – while still planning responsibly for the future.  We dig into: How to align financial decisions with personal values Why optimizing for financial flexibility is such a game-changer Where most people fail with their plans (spoiler alert: it’s lack of risk management) Tune in for actionable strategies for saving and making informed financial decisions so you can start your journey to a more fulfilling financial life. Takeaways: The best financial decisions consider both present enjoyment and future security Aligning how you use your money with what matters most – your core values – is a key component to feeling satisfied with your finances Flexibility in financial planning creates more freedom of choice, as well as a stronger ability to pivot and adapt as life changes and evolves Setting the right savings rate target is critical to creating money for life Risk management goes beyond investments to include understanding the opportunity costs of everyday decisions Wealth is more than just money; it's about living a fulfilling life. You can use your money as a tool to do just that if you have the right strategies in place. 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

You asked - now we answer your specific financial questions and try to provide clarity on some money situations that lots of folks tend to find themselves in. We share our insights on: What to do with your money once you pay off debt, max out your retirement accounts, and aren't sure what to prioritize next How to think through a decision like investing in rental real estate properties What counts (and what DOESN'T) when talking about savings rates Where to put your cash if you want it to grow Which financial planning benchmarks you can use to determine if you're on track, ahead of the curve, or falling behind with your personal finances Have a question you want featured on a future episode? Email [email protected]

In the last episode of our 3-part series on strategic planning for your finances is all about protecting family wealth. If you're working hard to build assets, you need to protect that growing net worth - and part of that is making sure you and your family will be financially stable no matter what curveballs you may face along the way. Instead of just running through "insurance 101" or defining parts of an estate plan, we're pulling back the curtain and showing you what a financial planner has for his personal finances and why he has it. We'll discuss the types of insurance policies we personally have, and walk through the documents that make up our estate plan. Expect to hear: -- Why we have to have this conversation in the first place - because it's not enough to build wealth. You have to protect it (and yourself, and your family) too! -- What we looked for in a health insurance plan -- The property & casualty insurance you have to have, and a separate, additional policy you might want to consider as well -- What kind of life insurance we each have and what purpose it serves -- The importance of disability insurance for professional couples -- How we've protected ourselves, our family, and our stuff with a comprehensive estate plan, what an estate plan actually does (it's WAY more than just wills!), and why almost everyone needs some type of estate plan for themselves, regardless of how much money you have If you've made it this far, you know the importance of putting financial goals and decisions in the context of your values so you can sort through competing priorities. You know you need to build a financial plan that uses specific strategies to address your particular challenges and opportunities. And you understand that planning is key - but investing is critical, if you want to build real wealth. Once that wealth-building machine is in motion, don't leave it vulnerable. Start here to understand the steps you can take to start protecting family wealth - which includes you and your loved ones, too.

Welcome back to our series on strategic planning for your personal finances. Today's episode is part II, and we're covering all things investment management. We'll talk through what you need to do to put together a sound investment strategy for yourself, and the to-dos any investment manager should take (whether that's you as a DIYer, or an advisor who you hire to manage your assets for you).  This episode covers: Assessing risk tolerance and risk capacity (and the difference between the two) Understanding your investment time horizon Allocating your assets correctly (which does NOT just mean what percentage of your portfolio should be in stocks vs. bonds) Selecting investments and coordinating account types Diversifying your investments - in all kinds of ways! Diversification of specific assets, across asset classes, with the specific vehicles you use (and what specific assets you put into each account or vehicle you use) Considering tax impacts of your investment choices (and the tax planning you should do for your investment portfolio) Calibrating your portfolio for the return you need (which includes knowing reasonable return expectaions) Remembering fees and expense ratios - and other basics like rebalancing Explaining why tax loss harvesting is not right for everyone (sorry) Doing ongoing due dilligence to understand if and when you should replace assets in your portfolio Choosing contribution strategies Setting up standard rules to guide your ongoing decisions and complete maintenance over time Ultimately, you should understand your investment stategy and why you set it, so you can stick to it when things get wonky in the markets (which is inevitable over time). Finally, we'll give you the most important strategic planning advice for going through the process of setting up an investment management system that works for you: a good strategy, stuck with over time, is better than the "best" strategy you found only after trying multiple different things and interrupting your progress with each change. Let's dive in and get into some investment management!

You've heard the term "financial plan" or "financial planning" a million times. But what does it actually look like to go through that process? Today we're sharing how we construct strategic plans for personal finances. We'll take you to the inner workings of the framework and systems we use at Beyond Your Hammock to help people use their money as a tool to get more of what they want in life - now and into the future. This is part one of our series that will explain the 5 stages of the financial planning process: Setting goals, clarifying priorities, and stating values Building out iteration one of a formal plan and choosing specific strategies to implement Developing investment strategies to serve as the engine of financial growth over time Protecting yourself, your family, and your assets Measuring, managing, and maintaining the complete financial plan over time Our first episode will cover stages 1 & 2. Let's get planning!

Do you earn bonuses, commissions, grants of equity comp, or other types of variable income? Then you better know not just how to manage it, but also how to optimize these lump sum cash inflows to help you achieve your goals and grow your wealth. In this episode, we'll explain how to do it. Join us as we discuss: What counts as "variable income," or what lump sums of money you may receive over time The number-one thing to do if you receive a lump sum of cash, from any source Two main methods to manage cash flow for solid but unpredictable income streams The mistakes to avoid when you receive any kind of lump sum payment Why you have to invest some of these cash inflows For our financial planning clients, managing lump sum cash inflows is a constant conversation. Getting this right becomes especially important when we're talking about total incomes of $500,000 or more, when half or more of that sum will hit quarterly, semi-annually, or even once a year. Managing big lump sums like that is a skill; cash flow management can get complex not just due to the size of these cash infusions, but due to timing. This episode will help you strategize and plan around your variable income so you can achieve your most important financial goals.

New rules and regulations pushed forward by the SECURE 2.0 Act might impact how your manage your money right now, and into the future. Here's what you need to know. The SECURE 2.0 Act is a 1.7 trillion dollar spending bill passed by Congress in 2022. This legislation's scope went far beyond "let's adjust how retirement plans work," but the details within the bill did change many rules relating to retirement plans Therefore, it changed the strategies you need to consider for managing yours as part of your overall financial plan. This conversation proves the point we make all the time: you have to build a plan that can flex and bend with changing realities. In this case, those changes include: Removing the requirement to choose between student loan debt repayment and saving for retirement Increasing the options you have for how you use 529 plan savings... and giving you an avenue to roll that money into Roth accounts in the future Giving business owners and freelancers the option to choose between traditional and Roth retirement plans Adjusting the age you must begin making required minimum distributions from retirement accounts in the future (which can drastically change your savings strategy in the present) Letting employees have more control over how they receive employer contributions into retirement plans If you're ready to check and see if your financial plan needs an update, join us in this conversation about what the SECURE 2.0 Act changed and how it affects your personal finances.