Show cover of Caffeine And Cash Flow with Michael Schulte

Caffeine And Cash Flow with Michael Schulte

Welcome to the Caffeine & Cash Flow Podcast with Financial Advisor Michael Schulte of WestPac Wealth Partners. Are taxes, market volatility, inflation and other risks draining YOUR energy and YOUR portfolio? If you need need help planning how to tackle these financial headwinds, then this is the show for you! New episodes bi-weekly. Visit our website for show notes, resources, more information and to contact Michael at Or call 702-767-4897.


Asset Class Returns for 2023
When it comes to investing, the term 'diversification' is often tossed around, but what does it truly mean to diversify your portfolio? Is it as easy as sticking to the S&P 500 index the to achieve wealth management success? In this episode, we’ll answers these questions and dive into the latest returns by asset class to help you better understand what diversification truly means.   Here’s some of what we discuss in this episode: Does owning the S&P500 make you diversified? Not really. A look through last year’s returns by asset class along with historical returns. The need for constant evaluation and just consistent checkup on your portfolio.   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897
18:55 5/23/24
Exit Planning for Business Owners
Are you a business owner who's ever wondered about the best way to exit your venture when the time comes? You're not alone. Exit planning is a critical yet often overlooked aspect of entrepreneurship. Today we’ll try to help unravel the complexities of exit planning and discuss the different options most people consider when it comes time to sell the business.   Here’s some of what we discuss in this episode: Why exit planning is so difficult for business owners. Selling to a third party and what that process consists of. Why selling to a strategic buyer could be your best option. What you should consider if you want to sell to a family member or employee? Other creative options we discuss with clients.   Source for the data in today's episode:   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897
33:38 5/9/24
Retirement Questions That Baby Boomers & Gen X Are Asking
Each generation is currently navigating a unique part of the retirement planning experience. With many Baby Boomers preparing for the transition into retirement and Generation X close behind, these two generations are asking a handful of financial planning questions. In today’s episode, we’ll share insights into the unique concerns that echo across different age groups. These are the retirement questions that each generation is asking. We’ll continue the conversation on our next episode as we talk about the younger generations and the questions they need to be asking.   Here’s some of what we discuss in this episode: How do I manage the risks of market volatility as I approach retirement? What steps can I take to address rising healthcare costs in my retirement plan? Should I consider downsizing or relocating in retirement? How much do I need to have saved to actually retire? Should I pay off my mortgage before retiring   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897
21:34 4/11/24
Estate Planning 101
Have you ever considered how you’ll safeguard your financial legacy for the next generation? Today we want to dive into some of the technical aspects of estate planning and the crucial role it plays in retirement strategy. Estate planning can be as complex as it is important, but Michael will demystify the process, providing clarity on how to shield your legacy and make sure your assets flow smoothly to your heirs.   Here’s some of what we discuss in this episode: What are the main things you want to protect against when creating a trust? How to avoid probate court, which can be a long and expensive process. Why most people we work with benefit from a revocable trust. Tax strategies to consider to protect as much of your estate as you can.   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897  
14:41 2/29/24
How One Overlooked Issue Can Sink Your Retirement
Imagine your retirement plan as a ship sailing toward a horizon of rest and relaxation. But what if one leak could sink it all? In today’s episode, we spotlight some of the single oversights that could send your dreams to the bottom. We'll share key strategies to plug the gaps, ensuring your financial ship stays buoyant and on course. Tune in to protect your future from the one mistake that could derail everything.   Here’s some of what we discuss in this episode: The possibility of outliving your money and planning strategies that help you create steady income in retirement. How do you address the relentless creep of inflation. The importance of considering long-term care costs in retirement planning. The potential impact of market volatility and the investment strategies to help mitigate risk. The threat of rising taxes on retirement.   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897  
21:58 2/15/24
Will My Portfolio Perform Better with a Republican or Democrat in the White House?
Could the US elections be the market mover that investors have been fretting over, or is that just political noise clouding the bigger financial picture? It’s time to talk about the upcoming election and what it could mean for investors over the next two years. We're not just skimming the surface; we are diving into the data to see how investments have historically fared during the electoral tides, from Truman's post-war boom to the unpredictability of Trump's term.   Here’s some of what we discuss in this episode: The average return during election years since 1928. What the data shows us for the year after elections. A look back through past administrations and the returns during their years in office   Data courtesy of Efficient Advisors & Evidence Based Advisors   Get in touch with Michael- Web: Email: Phone: 702-767-4897
26:32 1/25/24
Preparing for the Noisy Year Ahead
Who knows what this year will bring our way, but there’s plenty of noise everywhere you look. With the election ahead and everything else happening around the world, the noise can become a distraction for your financial planning. Today we’ll breakdown why a long-term strategy is your financial compass in a sea of sensational headlines and market speculation.   Here’s some of what we discuss in this episode: We want to focus on strategy and tactics to make sure both are working in tandem. Elections years can be divisive but we don’t want that to impact our investment strategy. We want to build liquidity that will alow us to handle unexpected life events. The four core principles for wealth accumulation.   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897  
17:12 1/18/24
12 Elements for Sustaining Family Wealth & Unity (Part 2)
For those who are fortunate enough to generate significant wealth for their family, trying to preserve that wealth for multiple generations is often the much greater challenge. It takes much more than smart investing and asset management to create and sustain family wealth. The stats tell us that just 10 percent of generational wealth lasts beyond the third generation, and you can point to a variety of reasons for that to be the case. Most people that get to this point want their family to be taken care of for decades to come, but not everyone takes the necessary steps to achieve unity to within their family. It takes a concerted effort with effective communication, and today we’ll take you through the final six elements that you’ll want to apply to your planning process.   Here are the six elements we discuss in this episode: Inspire individual family members to participate for their own individual reasons. Train and mentor each generation. Facilitate the genuine transfer of leadership from generation to generation. Require true collaboration between your professional advisors. Create mechanisms for ongoing family governance   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897  
16:29 12/7/23
12 Elements for Sustaining Family Wealth & Unity (Part 1)
The stats tell us that just 10 percent of generational wealth lasts beyond the third generation, and you can point to a variety of reasons for that to be the case. Most people that get to this point want their family to be taken care of for decades to come, but not everyone takes the necessary steps to achieve unity to within their family.   Here are the six elements we discuss in this episode: Foster strong and effective communication and build trust between generations. Develop, maintain, and regularly revisit your vision for the present and future. Successful families meet regularly. The four different types of capital you need for generational wealth. Keep the family business separate from the business of the family. Identify the roles necessary for the family to be successful.   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897  
24:33 12/1/23
Money Mistakes You'll Regret and How to Avoid Them
Ever wish you could foresee financial missteps before they happen? On today’s episode explore some real-life stories of regret and arm yourself with the essential dos and don'ts to ensure your money works for you, not against you. A lot of the things we’re going to be talking could make you lose over the long run, but we want to share what we’ve learned over years of helping people with their planning. By learning from the mistakes of others, we can hopefully prevent doing many of these same things.   Here’s some of what we discuss in this episode: The penalties and taxes that you incur with early IRA withdrawals can be costly. Too many people increase their expenses along with a rise in their income What options do you have to help your kids with tuition without risking your own retirement? The different ways retiring too early could cost you. Why you should be looking into Roth options now.   Learn more: Get in touch with Michael- Web: Email: Phone: 702-767-4897  
23:52 10/26/23
Historical Performance of the Market in Times of Conflict
When you’re in the middle of difficult periods of market volatility, it certainly seems like this time is different and things may never turn around. But is that true? In this episode, Michael is going to look through returns over the past century to see how the market rebounded after the worst years. While there’s never a guarantee that the future will look exactly like it has in the past, the statistics we’ll share on the show will highlight the importance of investing for the long-term.   Here’s some of what we discuss in this episode: How what we’re experiencing today is closer to 1973 than 1993. The largest yearly losses and gains took place around the Great Depression. What your returns would look like if you missed some of the best single-day returns during a time period. What the annualized rate of return was during the first decade of the 2000s.   Get in touch with Michael- Web: Email: Phone: 702-767-4897
24:27 10/19/23
Retirement: Ready Or Not, Here It Comes
Are you nearing “retirement age”? If so, let’s explore that pivotal question you’ll soon face: Should you retire or continue working? We’ll unravel the intricacies of this decision, addressing both financial and emotional aspects, and help you find out if you’re truly ready to retire. This is typically one of the first things someone asks about when they meet with a financial advisor, and there’s a lot to unwind in order to figure out when someone is ready to retire. And if they’re not, is it because they haven’t saved enough or is it more of an emotional block? Michael will tackle retirement readiness in this episode.   In this episode, we’ll discuss: The different factors involved when someone tells us they aren’t really ready to retire. Have you thought about what your purpose will be in retirement? What causes people to have a lack of confidence to retire? How far out should business owners be planning their exit? What we talk about with clients who want to retire now but aren’t financially ready.   Learn more: Contact Michael: 702-767-4897
18:10 9/28/23
Bouncing Back: Overcoming Investment Setbacks
 Almost everyone has made investment mistakes at some point. Even the most successful investors have regrets about decisions they’ve made in the past. But like everything else in life, it’s all about how you respond to a misstep.   In this episode, we’ll talk about how to bounce back from mistakes and avoid making them again in the future. Michael will share some numbers with us and walk us through the steps you need to take to get your investment plan back on track. The good news is there’s always time to make corrections and we’ll explain that today.   In this episode, we’ll discuss: How we define an investment. How to determine the cause of your mistake by asking yourself a few specific questions. Let’s determine how much more you can save each month to make up for the losses. Recalibrating your goals and identifying areas that you can make adjustments. What a real plan consists of and how we help people get their future plans on track.   Learn more: Contact Michael: 702-767-4897
19:00 9/14/23
Mailbag: Homebuying, 401k and Early Retirement Decisions
Is there ever a right time to stop contributing to your 401k? Should you help your daughter and her boyfriend with their home purchase? What about deciding to retire at the peak of your earnings? Tune into this episode of Caffeine and Cash Flow where we tackle these questions and more.   In this episode, we’ll discuss: The issues that can arise when helping your daughter buy a home with her boyfriend. With the possibility of a recession on the horizon, does it make sense to hold off on investing for a while? Is it worth keeping a mortgage for the tax deductions in retirement? How can you know if a financial advisor is legitimate or not? Will you regret walking away from a career with a great paycheck to retire a little earlier?   Learn more: Contact Michael: 702-767-4897  
22:12 8/31/23
Countdown Clarity: Timing Your Retirement Preparations
Whether you’re close to retirement or still far from that exciting date, it’s not uncommon to wonder when you should start preparing for each aspect of it.   Tune in to find out how far away from retirement you should have answers to these pressing questions.   In this episode, we’ll discuss: Why you should start thinking about the option to downsize about 15 years out. When you and your spouse should start picking out retirement dates and whether it’s best to stagger them. Why Michael says you should be paying attention to your risk as much as 40 years before retirement. Is it realistic to have a firm grip on expenses well in advance?   Learn more: Contact Michael: 702-767-4897  
18:55 8/24/23
Key Financial Decisions During Major Life Events
Are you ready to take control of your finances during life's most pivotal moments? In this episode, we dive into the complex world of financial decision-making during key life events. From the excitement of marriage and the joy of welcoming a new child to the challenges of divorce and the loss of a loved one, we'll provide practical tips and guidance to help you make informed decisions and maintain financial stability.   In this episode, we’ll discuss:   The four things you need to communicate about when you get married. (2:48) How your budget changes when you have a child. (10:51) What is a good approach to saving money for college? (14:49) Here are some of the key financial decisions that need to be made for retirement. (20:16)   Learn more: Contact Michael: 702-767-4897  
24:43 7/20/23
Unsure, Confident, or Certain: Retirement Planning Next Steps
It’s not just the financially uncertain who need to think carefully about their retirement plan. Even those who feel confident in their retirement savings might still have important questions to answer and decisions to make.    In this episode, we'll explore the three retirement planning mindsets: those who have no idea if they can retire, those who think they have enough money to retire, and those who know for sure they have enough money to retire.   Here are the three retirement planning mindsets we’ll discuss:   "I have no idea if I can retire or not." (2:22) "I think I have enough money to retire, but I’m not sure." (6:05) "I know I have enough money to retire." (12:30)   Learn more: Contact Michael: 702-767-4897  
22:53 7/6/23
7 Most Common Retirement Planning Mistakes (Part 2)
Welcome to part two of our series about retirement planning mistakes. Last time, we talked about the pitfalls of ignoring tax implications, failing to diversify your investments, and procrastinating when starting your investments. On today’s show, we’ll share seven more mistakes people often make when planning their retirement.     In this episode, we’ll discuss:   Relying solely on employer-sponsored retirement plans. (1:34) Not adjusting your retirement budget for inflation. (5:22) Assuming you won’t live a long life. (8:09)   Learn more: Contact Michael: 702-767-4897    
19:40 6/22/23
7 Most Common Retirement Planning Mistakes (Part 1)
In the complex world of retirement planning, there are countless pitfalls one could face. In part one of this two-part series, we're sharing seven of the top mistakes to watch out for. Avoiding these crucial missteps can have a significant impact on the success of your retirement plan. Join us as we delve into these key issues and learn how to navigate them effectively when it's your turn to plan for retirement.      In this episode, we’ll share: Are you ignoring future tax implications? (2:49) Are you failing to diversify your investments? (5:33) Are you procrastinating on your retirement savings? (12:37)   Learn more: Contact Michael: 702-767-4897  
20:57 6/8/23
Ep 57: Fundamentals of Financial Planning and Baseball
After listening to today’s episode, you’ll never attend another baseball game with the family and look at it the same way. We’re going to show you how taking some of baseball’s most basic principles can help lead to financial success in your retirement portfolio. Join us as we talk about successfully executing the financial fundamentals.  We’ll dive into the importance of liability protection, saving, and reducing debt. We’ll then share a critical part of building wealth for the future before Michael dives into a couple of listener questions from the mailbag to wrap up the episode. So, grab your peanuts and crackerjacks and let’s take the financial field!    In this episode, we’ll share: How to make sure you can’t be beaten backward with your money. (7:34)  How to become a world-class saver*. (11:22) Why you need to build liquidity. (17:06)   *Guardian considers someone who saves at least 15 to 20% of their income to be a World-Class Saver   Learn more: Contact Michael: 702-767-4897  
28:30 5/18/23
Ep 56: How the S&P 500 Changes by Decade
People own a handful of gigantic companies and think their portfolio is bulletproof, but it's not, especially over a long period of time like we hope your retirement will be. Some clients gravitate towards bigger S&P 500 companies, assuming that they will remain stable for years to come. While these companies may appear to have a bright future, it is not always the best bet in the long run.   Just like a company’s success can change over the years, so can sports teams. In honor of baseball season starting up, we’ll compare World Series champions from each decade and big companies in the S&P 500 and take a look at how they have changed in this episode.    In this episode, we’ll share:   Today’s worst baseball franchises. (4:17)  The ten largest companies in 1980, 2000, and 2020. (12:29) General Electric, Exxon, and other companies’ changes over the years. (16:40)   Learn more: Contact Michael: 702-767-4897  
27:06 5/4/23
Ep 55: What is a Good Rate of Return?
It’s a question we hear all the time: "What’s a good rate of return?" When clients invest money, they want to see it grow. But they also wonder what rates are “good” or “bad.”    It's essential to keep in mind that there's no one-size-fits-all answer to this question because everyone’s financial goals are unique. However, if you’re just looking to maximize rate of return and get rich quickly over a short period of time, that’s never a good idea. We encourage our clients to prioritize long-term wealth building over short-term gains.    Join us for an insightful conversation about this idea and gain valuable insights on maximizing your returns over the long term.   In this episode, we’ll share: Why you want to “get rich long,” not quick. (2:51) What happened during the real estate and stock bubble in Japan? (5:38) Why you should know some key financial moments in time. (8:32)   Learn more: Contact Michael: 702-767-4897  
20:22 4/20/23
Ep 54: Lions, Tigers, and Bank Runs...Oh My!
Today we’re talking about bank runs and some of the banking failures we’ve seen over the course of our country’s history. With the recent Silicon Valley Bank collapse, bank failures have been a popular topic featured on the news recently, and many of us are wondering how this recent event will impact our lives. Will bank collapses have an impact on your portfolio and your financial plans in general? We’ll answer those and more questions on today’s show.   On this episode, we’ll share: Current banking events and what happened with Silicon Valley Bank. (2:22) What happened more than 200 years ago in the banking world. (7:45) What happened with skyrocketing interest rates. (13:07)   Learn more: Contact Michael: 702-767-4897  
30:11 4/6/23
Ep 53: Dollar Cost Averaging & Sequence of Returns
In this episode, we’ll explain DCA and reverse dollar cost averaging, which many people might not know about. That is the process of systematically taking money out of your portfolio and using it to pay for living expenses. That distribution period is just as important as accumulation, but people don’t spend as much time planning for it.     We’ll explain why dollar cost averaging and reverse dollar cost averaging is so important and why it’s never a good idea to try and time the market. That’s where the sequence of returns comes into play, and Michael will explain how that applies to your income plan in retirement.    On this episode, we’ll share:  What is dollar cost averaging? (2:34) Why you want to use this tactic, even in down markets. (4:46) How does sequence of returns play a part in your retirement? (5:35)   Dollar Cost Averaging (DCA) does not assure a profit or protect against a loss in declining markets. DCA involves continuous investments over time regardless of fluctuating price levels. Investors should consider their ability to continue to invest in periods of low-price levels.    Learn more: Contact Michael: 702-767-4897  
26:50 3/23/23
Ep 52: Retirement Expenses For Which You Forgot To Plan
We’re willing to bet there are some retirement expenses that you may have forgotten to plan for. But don’t worry, we’re here to help you see the things you might initially overlook.    On this episode, we’ll share: Are you prepared for medical expenses? (4:05) Are you prepared for parental and child assistance? (7:59) Are you prepared to pay taxes? (10:50)   Learn more: Contact Michael: 702-767-4897  
23:02 3/9/23
Ep 51: The Incomplete Financial Plan
Are you confident that your financial plan is complete? Many people believe they have a solid plan in place, only to realize later that they've missed important areas. From not accounting for long-term care expenses to overlooking the impact of taxes on retirement income, there are many ways a financial plan can be incomplete. In this episode, we'll be pointing out the most common areas people overlook when planning and provide actionable tips to ensure that your plan is as comprehensive as possible.   On this episode, we’ll share: The danger of a downturn in the market in the early years of your retirement, which is much worse than a market downturn in the later years of retirement. (3:00) The effects of inflation over time. (6:27) The possibility of tax increases in the future. (10:59)   Learn more: Contact Michael: 702-767-4897  
22:47 2/23/23
Ep 50: What Impact Will a Recession Have on Your Portfolio
Are we in a recession or are we headed into one? Those are the questions on a lot of minds these days. On today’s show we’re going to make sure a recession doesn’t ruin your finances or retirement plans by taking you through the historical data.   On this episode, we’ll share: ·      Are we in a recession? (1:24) ·      What can the data tell us about recessions? (5:41) ·      What can the S&P 500 tell us about recessions? (17:47)   See the historical returns for yourself here. Returns Before and After a Recession S&P 500 Returns   Learn more: Contact Michael: 702-767-4897
25:37 2/9/23
Ep 49: Back To Basics - Understanding Income Planning
Do you understand the basics of income planning? It’s important that you know this topic well and understand how it fits into your overall retirement plan. Why is income planning so important for retirement? We’ll share the 10 states where $1 million in retirement savings will run out the fastest, which will show you how much it can vary for retirees. As we talk through this, we’ll also discuss what percentage of your income we recommend you save and invest. You don’t want to miss today’s show! In this episode, we’ll share: How long does $1 million last in different states? (1:04) What percentage of clients have an income plan at the beginning? (9:13) How do you put together an income plan? (13:24)   Additional resources:   Learn more: Contact Michael: 702-767-4897
25:38 1/19/23
Ep 48: Market Volatility & Investing Mistakes
Market volatility became the norm in 2022. Are we in for more of the same in 2023? On today’s show, we’ll talk about the market outlook for the next 12 months. We’ll also share tips on how you can best prepare for potential future volatility. No matter how you handle volatility, your financial advisor should be there to help guide you through the rough patches.   On this episode, we’ll share: Mergers & Acquisitions says “signs point to more market volatility in 2023.” (2:25) How to avoid rookie mistakes, such as investments without purpose. (10:54) Why you don’t want to rely on “hot tips” from friends, family or coworkers. (17:39)   Learn more: Contact Michael: 702-767-4897
26:08 1/5/23
Ep 47: 7 Steps for Planning to Sell a Business
We work with a lot of business owners, and a common question we get is about creating an exit plan for when they want to retire or sell their business. This type of financial planning often gets overlooked, but it is so crucial to get right. There’s not a lot of planning in the financial services industry around selling your company. That’s unfortunate, because it’s typically the biggest asset on a client’s balance sheet. Today, we are here to help with this important topic.   On this episode, we’ll share: How to figure out what goals you should have for exiting your business. (2:18) How to quantify your available resources. (5:43) How to focus on your business value. (9:00) Call Michael at 702-767-4897 with any of your questions or email More Information: 
21:23 12/15/22