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Financial 101: Your Financial Questions, Answered

Financial 101: Your Financial Questions, Answered

Below are financial questions that Cade has answered on Instagram Stories. Want to get these bite-sized lessons in real-time? Connect with Cade on Instagram.


Question: Is the Forex market a great way to start getting money?

Answer: Thanks for this question. First, let’s clarify that Forex trading (meaning, currency trading) is an ACTIVE job. It’s not investing, so you’ll want to be sure you ENJOY doing it and want to do it on a regular basis.

Second, many (if not most) Forex trades are short-term trades held less than one year.

This means gains you produce will get taxed as regular income, according to your U.S. income tax brackets — so your taxes on Forex trades could go as high as 37% Federally plus your State tax rate (yikes).

Compared to long-term capital gains tax rates that max out at 20%, this is really high.

Having said that, the Forex market can be an interesting and enjoyable way to make money if you enjoy trend and chart analysis. If that’s what you’re looking for, feel free to explore it!

Question: How do you feel about ROTH IRAs?

I dislike them, actually.

They keep people small because they don’t pay cash flow (my single biggest issue). They tie up your money until 59. They pay relatively low rates of return because you’re investing into whitewashed investments. They limit you to paper (not real) assets. They severely restrict the asset classes you can invest into.

What’s worse is that they require you to give your money over to other people (folks you’ve never met) to manage it.  In exchange, you get the privilege of paying annual fees for their help, which they never clearly disclose. These fees can fall into three categories, including:

  • Investment Fees
  • Administrative Fees
  • Individual service fees

The upsides are that they are simple, completely passive and have some tax advantages over time. But, but those advantages aren’t enough in my option. Nonetheless, nearly every middle class person falls into the trap of trying to grow their wealth with them.

In short, they share most of the same problems as 401Ks, which you can read about here.

Question: With the economy going the way it is with COVID, would you recommend investing in an IRA or CD?

Answer, no I wouldn’t recommend either of those moves. The reasons are:

1) An IRA doesn’t pay CASH FLOW, which is my #1 criteria for an investment.

2) An IRA won’t change your life until you’re at least 59.5 (the earliest withdrawal age).

3) IRA withdrawals are taxed as earned income at high tax rates that can go as high as 37%, instead of as long-term capital gains (which get taxed at the very low tax rate of only 0-20%).

4) IRA investment options are limited, which makes it hard to invest in lucrative asset classes that pay high returns.

5) IRAs also make it difficult to buy real (physical) assets, so they tend to limit you to paper assets.

Unfortunately, for the CD (Certificate of Deposit) you asked about, they also don’t pay cash flow and have a terribly low return. A 1 year CD would pay way less than 1% and inflation averages at 3.22% year, so you’d actually lose money on an inflation-adjusted basis.

Question: I have a goal to buy 1 acre with 2 tiny homes for living in and AirBnBing. They’re in Delaware 30 minutes from the beach. Thoughts?

The only things to mention (insights not problems) are:

1) AirBnB properties are hospitality businesses, so they take much more active work than you think (compared to long-term rentals).

2) People often want to start with tiny homes because they perceive them to be cheaper, but it is often harder (or impossible) to get a mortgage on them, which can make them more expensive than a starter home with 3-5% down.

3) You may find it hard to “unplug” (relax) if you are located within an acre of your AirBnB and find yourself tempted to do the constant work of assisting guests, cleaning, topping up supplies, yard work, etc. You’ll eventually want to hire others to do these activities.

4) Tiny homes don’t tend to go up value (appreciate) as much as full-sized homes, so the long term financial gains probably won’t be as good.

Having said that, real estate is a phenomenal asset class that can produce strong returns, protect your capital and provide tax advantages, so this could be an decent place to start. Good luck!

Question: How did you start your path? I work full-time but want to diversity my money.

Awesome question! The easiest way to get started is to buy a primary residence (the place you will live) and rent out a bedroom to learn the rental process.

You don’t need as much money down to buy a primary residence, which will help you afford your first place. Importantly, renting out a room will teach you about leases, move in and move out inspections, payment collection, etc.

Then, move out (either rent elsewhere or buy a second place) and rent out the whole house to tenants.

The reason to rent elsewhere if you have to (while you save up for a second place) is that you can’t deduct many expenses related to your primary house on your taxes, but you can deduct nearly everything on an investment property!

This is how I got started and should get you off and rolling. Good luck!

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Cade Hildreth“As an LGBTQ+ entrepreneur, real estate investor, former USA Rugby Player, and fitness fanatic, I’ll teach you what your parents and teachers should’ve taught you, but didn’t know themselves.” -Cade Hildreth

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⚠️ 7 Tips for a Leaner, Meaner Core ⚠️1. ⚠️ 7 Tips for a Leaner, Meaner Core ⚠️1. Embrace the "Big 3" compound lifts, which are the deadlift, squat and bench. They are exceptional for muscular development, because they require full body muscle recruitment. Seriously, there's no easier way to get stronger, faster, than to embrace these three lifts.2. Consider creatine. It's arguably the most studied supplement of all time and will facilitate both strength and lean mass gains for you.
3. Add a whey protein shake immediately post workout. It'll shuttle nutrients into your muscles and facilitate rapid recovery. (If you're trying to learn more about your whey protein options, either whey isolate or whey hydrolysate will work great.)4. Add an extra hour of sleep. High quality sleep accelerates weight loss, promotes muscle recovery, and prevents overeating. On an unrelated note, it also improves personal resilience and creativity. I've long thought my love of sleep is one of my personal advantages and it can be yours too.5. Eat within 30 minutes of waking. It'll regulate your hunger hormones, ghrelin and leptin, so that you make healthy food choices all day long.6. Swap high fat proteins (such as dark chicken, sausage, eggs, etc.) for low fat proteins (chicken breast, shrimp, egg whites, etc.) If your goal is to get leaner, this is an easy easy way to do it with minimal effort.7. Try out a standing desk. Prices on them have come down a lot in recent years. If you already have a desk, you can get ones that sit on top of a normal desk to provide standing desk heights—which is what I use and love. Standing desks are incredible for promoting core strength gains, for the simple reason that you're standing instead of slouching.Which tip will you try? Let me know below... ⬇️*Ring by @OuraRing
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Self love comes in many forms. This one is all too Self love comes in many forms. This one is all too often overlooked.
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If this was a helpful reminder, double tap and leave a “💯” below.
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💪🏽 5 Tips to Get Thicker Arms 💪🏽 . 1. 💪🏽 5 Tips to Get Thicker Arms 💪🏽
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1. Work in a range of pulling AND pressing activities. Every muscle has a counter-muscle, so you’ll want to focus on training both.
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2. Hit your upper body lifts (bicep curls, tricep extensions, etc.) from different ANGLES.
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This prevents adaptation AND creates larger muscles by hitting all of the muscle fibers involved.
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You can do this by bending over, sitting vs. standing, or changing your grip on the dumbbell or barbell.
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3. Hit your big (compound) lifts first and train smaller muscle groups second your accessory work).
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The reason to train compound lifts first is that you don't want isolated muscle groups that are pre-fatigued.
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4. Train your biceps AND your triceps. Your triceps are about 2X as large as your biceps, so they need attention too.
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While you’re at it, don’t forget your delts (shoulders) too. They merge into your biceps/triceps and add overall size.
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5. It’s easier to build muscle if you’re eating a caloric surplus. You don’t want to go crazy here, because this can also lead to fat gain.
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However, a caloric surplus of 100-200 calories per day can be an effective way to support accelerated muscle growth.
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Which of these tips are you going to try? Let me know below. ⬇️
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2021 is a fresh start! ✨ . Let me know your thou 2021 is a fresh start! ✨
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Let me know your thoughts below... ⬇️
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Were you taught this important truth?
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Let me know yes (✅) or no (❌) below.
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Important reminders: You are loved, valid and wort Important reminders: You are loved, valid and worthy. 🏳️‍🌈 💖You don't need a list of achievements.
You don't need to fit in.
You don't need to please.
You don't need to fit the binary.
You don't need to conform.You are loved, valid and worthy with or without any of those things.📷: @gmf.designs
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