Rick Bloom Talks Money

Today, Rick Bloom is joined by Bloom Advisors colleague Scott Whyte to discuss all things inflation. It's been a hot topic in the news lately, and we cover what you need to know.

• We begin with a definition of inflation - what exactly is it?
• How is inflation measured and what exactly is the CPI, or Consumer Price Index?
• What about the core inflation rate?
• Why is it important to see how inflation factors into your individual situation?
• Some suggest inflation is here to stay. Others say it's transitory. Either way, we are not facing the historic inflation you may remember from the 1970's.
• Inflation isn't all bad.  What can you do in your portfolio in times of inflation? (Hint: Diversify!)
• Why hoarding cash or gold may not be the best idea.
• What is "shrink-flation?"
• What is inflation's impact on retirees?
• What are some things you can do right now to protect yourself?

Finally, Rick answers a listener email regarding his changing stance on annuities.  Rick explains why he recommended them in the 90's, but not anymore.

If you have a financial question for Rick, you can email him:  [email protected].

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

Rick Bloom has been helping people with their money for decades,  and he often gets asked the same questions frequently.  Today, he answers the top ten financial questions people ask him.

1. How much do I need to start investing and when should I start?
2. Can I do it on my own, and if not, how do I choose a good financial planner?
3. How do I invest risk free?
4. What are some of the red flags I should know about in investing?
5. Should I use a Roth or traditional 401k?
6. What is the best investment for a newborn's college education?
7. What does it mean to diversify?
8. How do I know when I should sell an investment?
9. How much do I need to retire? And how much should I save for my retirement?
10. Is buying a house a good investment?

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

Today, Rick Bloom is joined by Caitlin Donovan of the National Patient Advocate Foundation for a very important conversation - about medical bills.

Too often, patients just assume their medical bills are accurate and they have to pay every penny. Caitlin dispels that myth.  There's so much nuance with billing codes, insurance coverage and Explanations of Benefits (EOB's), and more.   Very often, you are not  responsible for what you see on that first bill.

There are a number of strategies you can use, including bringing an advocate with you to appointments, trying multiple people in a billing call center, and most importantly, persistence.

You can also negotiate your bills - a hospital, for example, would rather negotiate a settlement with you than not have you pay anything at all!   Rick also mentions the importance of having a medical durable power of attorney should you not be able to make decisions for yourself.

Also, Rick answers two more listener emails - regarding inheriting retirement plans and declaring bankruptcy due to credit card debt.

The National Patient Advocate Foundation is a free resource for many eligible patients.  You can find them online here: https://www.npaf.org/

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

Recently, the stock of GameStop, a brick-and-mortar video game retailer, temporarily soared, pitting day traders from the Robin Hood app against Wall Street hedge funds, who had shorted the company's stock. Today, Rick Bloom is joined by Scott Whyte of Bloom Advisors.  They break down the story, including many teachable moments that came from it.

There are risks to buying stocks and investing. It's not the same as gambling in Las Vegas. When done right, it's more about using research and data than a simple game of chance. And investing is about the long haul, not how a stock is going to do 2 weeks from now. We learn more from our mistakes than our successes, which is why "beginners luck" can be a dangerous situation for investors.

Scott and Rick explain the Robin Hood app, day trading, shorting a stock, and the dangers of buying on margin.  Also, there's more to this story than David vs. Goliath - especially the risk to "David."

In the end, it's about diversification and investing for the long term.

Finally, as always, Rick answers listener emails.  Today he covers land contracts versus mortgages, as well as the need for estate planning. 

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

With 2020 (finally) drawing to a close, many have you have emailed Rick Bloom questions about year-end tax planning.  So today, Rick is joined by Jonathan Goldberg, a CPA, financial advisor, and member of the Bloom Advisors team.

Remember, the goal is not to reduce your income; it is to reduce your taxes.

• Jonathan and Rick cover many topics, including:
• The $300 above the line deduction for charitable contributions available in 2020.
• Contributions of investments that have significant gains to charities.
• QCD's, or Qualified Charitable Distributions
• Deductions of investment losses and wash rules.
• The pause on Required Minimum Distributions (RMD's) in 2020.
• Roth Conversions
• Tax deadlines returning to normal
• Maximizing retirement plan contributions by end of year.
• NOT deducting home office expenses if you began working from home in the pandemic.

Rick closes today's show by answering listener emails about charitable donations and paying off home mortgages.

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

Today, Rick Bloom is joined by Melanie Duquesnel, President and CEO of the Better Business Bureau serving Eastern Michigan.  With many of us working (and schooling) from home, our online presence is more prevalent. This means it's also a bigger target.

Rick and Melanie cover many different types of scams you should be aware of, including:

• Phishing Scams
• Password Scams
• Text Scams
• Government Scams
• Utility Scams
• and more

Also, Melanie explains why you need to protect your computer and other devices and also your kids' as well.  Update your passwords, your software, and your security often.

Finally, Rick answers listener questions covering both Bitcoin and Snowbirding.

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

Find Melanie and her team at the Better Business Bureau here: https://www.bbb.org/detroit or call 1.866.788.5706

In today's episode, Rick Bloom is joined by Bloom Asset Management team member Jack Riashi, Jr, to answer listener questions about the Dow Jones Indusrial Average, or DJIA.

We start with the misnomer that is "industrial average."  The Dow may have started that way, but Jack explains why it's not really "industrial" anymore.  Also, the index is an average of only thirty industry leading companies.

Next, Jack and Rick explain how the Dow Jones Industrial Average is calculated, and how that compares to other indexes.  They also cover how - and why - the Dow changes.  What does that mean for companies that are added or removed?

In fact, three companies were recently removed from The Dow - Exxon, Raytheon, and Pfizer. They were replaced by Amgen, Salesforce, and Honeywell. Jack and Rick talk about what that means.

In terms of practical use, Jack explains how everyday investors should use The Dow.  We cover the dangers of basing a porfolio around one index, and we discuss why percentage is more important than points.

As always, Rick answers listener questions from you. This time, he starts with an email regarding bank accounts' FDIC insurance and interest rates.

Rick also answers listener emails regarding withdrawing retirement funds and Coronavirus-related exceptions in 2020, as well as fees advisors charge.

Resoiurces:

Bankrate: https://www.bankrate.com/

As always, if you have a question for Rick, you can email him at:

[email protected]

Find Bloom Asset Management on the web at http://www.bloomassetmanagement.com/

Today, Rick Bloom is joined by Scott Whyte of the Bloom Asset Management Team.  Scott walks us through all of the ins and outs of social security, explaining:

• The differences between collecting social security at 62, your retirement age, and 70.
• How your retirement age will differ based on the year you were born.
• Losing social security money when still working (in some cases)
• Cost of living increases
• Spousal benefit when a husband or wife passes
• The unlikely theory that social security could go bankrupt -and what's being done to prevent that

As always, Rick answers listener questions.  Today he tackles the idea of using cash on hand to pay off a mortgage, and whether it's OK to leave more of your estate to some of your kids, and less to others.

As always, if you have a question for Rick, you can email him at:

[email protected]

Find Bloom Asset Management on the web at http://www.bloomassetmanagement.com/

Today, Rick Bloom talks about 401k plans and the many options that are available to you when you exit a job - either willingly or unwillingly.

We start with general concepts around 401k plans - what it means to be vested, the ability to take loans against the plan, and what that can mean for tax implications.

Rick also touches on company stock and Roth 401k plans.

Essentially, there are four options for 401k plans, and Rick walks us through the positives and negatives of each one. They are:

• Leaving the plan where it is
• Cashing out the plan
• Moving the plan to a new employer
• Transfer it to an IRA

As always Rick answers listener emails. Today's questions include:

• Do current PE ratios indicate that a bubble is about to burst?
• Will the November elections impact the economy?
• Is it a good time to refinance my mortgage?

As always, if you have a question for Rick, you can email him at:

[email protected]

Find Bloom Asset Management on the web at http://www.bloomassetmanagement.com/

Today, Rick Bloom is joined by Mark Orechkin of the Orechkin Insurance Agency in Southfield, Michigan.  With many people losing their jobs in 2020, we have a lot to cover.

We start with health insurance options when you lose or change jobs, including COBRA, short term medical policies, Medicare, qualifying events, and what changed with the Affordable Care Act.

Next, Rick and Mark discuss life insurance - and why it's important to not rely solely on what's provided by your employer.  They also cover permanent and term policies.

Mark explains why you should never lie when applying for insurance.

We also cover disability insurance and the many forms it can take.

Finally, as always, Rick answers your emails.  Today we cover questions regarding inherited Roth IRAs, using a bond or money market fund as an emergency fund, and the rules around required minimum distributions, or RMDs.

Resources:

Orechkin Insurance Agency Website: https://www.orechkininsuranceagency.com/

Orechkin Insurance Agency Phone Number: (248) 356-8820

If you have a question for Rick Bloom, you can email him at [email protected]

Bloom Asset Management website: http://www.bloomassetmanagement.com/