What Does Chris Do With Money

I’m a sucker for theoretical head-knowledge, but today I wanted to make the newsletter as specific as possible.

So, let’s review my money:

• Which bank accounts do I use
• What am I invested in
• Which credit cards do I use
• What is my social security number
• And more

Our system is not perfect, and it’s certainly not a specific recommendation for you (personal finance is personal).

But maybe it will give you some ideas of the gaps in your money (or, even better, gaps in mine).

Let’s get to it.

First, Bank Accounts

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Our checking account is where our paychecks are deposited into. We use a Chase Joint Checking account. It’s in both of our names legally which keeps things simple.

We also have a Chase Savings Account.

To be honest, I wish we didn’t have a savings account. Chase only pays us .01% interest, I could get 4% from a money market at Fidelity.

BUT in order for our checking account to be free, we need the savings account. So, we still have it.

Next, Investment Accounts

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Everything is with Fidelity

Why Fidelity?

Honestly, it’s because it’s what my mom used and I haven't felt a desire to change.

On top of that, my job uses Fidelity to manage my 401(k) and HSA. So, I’ll be a Fidelity Fanboy for the Foreseeable Future.

Which Accounts do we have with Fidelity?

• Joint Brokerage Account
• An IRA for each of us
• My 401(k)
• My HSA

My wife’s 401(k) is with another company – honestly don’t remember the name.

"Great Chris, but what are you actually invested in?"

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For better or for worse, 95% of our investments are in the S&P 500.

The remaining 5% is:

• A Bank ETF that I thought was a lock in 2021 (it’s net negative, I’m not good at picking stocks)
• A Tech ETF that WAS a lock in 2021 (it’s way positive, I’m a genius at picking stocks)

There’s a case to be made that having our entire portfolio in US investments is less than ideal.

Not a bad argument.

Maybe we should have some International funds. But we haven’t made the change yet. Selling our current S&P holdings would mean a big tax bill – don’t need all that.

Friendly reminder – none of this is investment advice. Want investment advice? Reach out to a qualified professional at Fidelity, Vanguard, Schwab, or whoever holds your investments – it’s their job to give you tailored advice!

Alright onto Credit Cards

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We’ve got a few:

• Amex Gold
• United Quest Card
• Chase Freedom Unlimited
• United Explorer Card

Until last month we both had an AMEX Gold (we each got one for the introductory point bonuses, then I cancelled mine).

Stick with me, the Annual fee is $325 so we need to earn more than that amount in points each year.

Points are normally worth (at least) a penny each. So, we need to earn 32,500 points each year to make the fee worth it ($325 x 100).

Thankfully, each dollar you spend on Restaurants and Groceries gives you 4 points.

SO that means we need to spend 32,500/4 = $8,125 per year on food. That’s $677 per month – we definitely hit that. That plus some other perks make the card worth it.

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For travel, we use The United Quest Card.

Similar to the AMEX, it gives you 3x points on most travel. That plus a $200 United Credit makes it worth it for us. The other two we still have but don’t use.

As a reminder: Credit Cards are only worth it if you pay it off in full every single month. If you think you’ll fall into overspending and credit card debt – stick to a debit card!

Finally, two “boring” but incredibly important things we have:

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Long-Term Disability Insurance: We buy this through our work benefits – very worthwhile insurance.

Basic Estate Planning Documents:

• Wills
• Durable Power of Attorney
• Advanced Medical Directives

Those docs can be done for free at FreeWill.com – can’t recommend this enough.

And that’s it.

That is our financial world in a nutshell.

Want help getting yours in order? You know where to find me!

Last week's class was great. (Special welcome to the new subscribers from Rice University!)

Topics with the most questions? Investments and credit cards.

Not too surprising, but always fun to see.

Have a great weekend,
Chris
[email protected]

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All of this content is for educational purposes only and should not be taken as financial, investment, or tax advice. Any mention of securities is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned.