089R | Let Me Check With My Accountant

089R Let Me Check With My Accountant

An introduction to the Family Bank and what ChooseFI’s accountant-on-call thinks about it, as well as how to navigate rental car insurance, and what soft skills are crucial to a career in retail?

What we dig into in this Friday Roundup:

  • Jonathan is exploring new, non-computer-based hobbies.
  • It can be overwhelming to figure out what specific goals we want to pursue.
  • You can do anything, but you can’t do everything.
  • Do children who find entrepreneurial hobbies as end up as millionaires?
  • Retail jobs are everywhere – it mostly requires soft skills.
  • What’s the problem with being over-educated and under experienced?
  • How important is it to be friendly, kind and nice?
  • Do your county’s high schools offer programs to help students graduate with an associate’s degree?
  • Voicemail from Brent, who is curious about selecting rental car issuance.
  • Credit cards that include some form of car insurance coverage:
  • In order for credit card coverage to kick in you need to: decline rental company collision waiver, be the primary driver of the rental vehicle, and pay for the card in full with the card that offers the insurance protection.
  • Does your primary car insurance actually provide rental car insurance?
  • An email from Shari who recently made huge adjustments in her investments strategies, and realized that her son is 4th Generation FI.
  • Chris talks about his “Family Bank”.
  • How and why did Chris get this started?
  • What are the logistics of how the loans and “accounts” work?
  • Why does Chris’ family opt to use the Family Bank as opposed using traditional mortgage loans?
  • What impact does the Family Bank have on Chris’ investment strategy?
  • The first step toward the family bank is having transparent conversations about money.
  • What does Shane Mason, CPA/CFP, think of the family bank?
  • Does Shane consider the family bank an investment comparable to bonds?
  • Does the Family Bank need to be considered a business?
  • Interest income is always a taxable income.
  • Might the IRS have an issue with taking a loan from oneself?



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8 thoughts on “089R | Let Me Check With My Accountant”

  1. Jonathan,

    Get or start using a router. They are so much fun. You can get scrap wood from anyplace to play with it. You could even take apart an old pallet to have wood to play with. You will have a blast with YouTube and a router. 🙂

  2. I like the idea of the family bank. At first I was turned off by the idea, I was even thinking why would I pay 6% when I get under 5% for my investment properties. But thinking about it further, I assume there are no origination fees, no closing costs, and it doesn’t report to any federal agency to reflect on your debt to income or your maximum government backed loans, so it would be a great alternative for those benefits even paying slightly higher interest. I would like to borrow from that bank. But I definitely see the hard sell to get everyone on board. it is a bit strange and people could feel taken advantage of especially when not all family members have the fi mindset.

  3. With that family bank, I could imagine things getting bad with a housing crash. What happens if the family members who borrowed for investment properties turn their keys over to the “bank”?

  4. I have been loving your podcast since finding it a few weeks ago, great information and fun to listen to. Your theory on young entrepreneurs who make money as a hobby any way they can is interesting. It would be cool if you did some type of survey to see the correlation to FI. That would be fascinating. Here is a slight twist for your findings.

    I started making money at age 13 by doing odd jobs or making things and selling them. All through college I had side gigs. Then life took a bit of a turn and I only focused on my career, no side gigs for years. Just before turning 40 I started another side gig and reached FI by 43 then retired to pursue travel. So it wasn’t really the consistent side gigs that helped me reach FI, but now I’m still thinking it was the same mindset that helped me reach FI.

  5. I wasn’t on the newsletter list until today. Any other way to get the family bank spreadsheet mentioned in this episode, that was gonna be sent out with newsletter?

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