investing

The Fear of Missing Out: Why FOMO Often Leads to Poor Investment Decisions

By now, you’ve probably heard the buzz around SpaceX, OpenAI, and Anthropic. These are companies shaping the future, and the message is hard to miss: you don’t want to sit this one out. That sense of urgency has a name. It’s FOMO, and it’s one of the most common reasons investors make decisions they later regret.

The latest wave is simply the latest example. Fear of missing out has influenced investor behavior for as long as markets have existed, and learning to recognize it is one of the most valuable things you can do for your long-term financial health.

Why FOMO Hits So Hard

FOMO is a deeply human response to uncertainty and social pressure. When an investment opportunity dominates headlines, your brain perceives two threats at once: the fear of missing out on gains and the discomfort of watching others profit while you sit on the sidelines. Both feelings push you toward action, even when patience would serve you better.

It doesn’t help that we’re surrounded by stories of people who got in early on Amazon, Apple, or Bitcoin and earned life-changing returns. What we rarely hear are the far more common stories of people who bought at the peak, endured painful losses, and either sold at the wrong time or waited years just to break even.

Social media and financial news often make matters worse. Consider a recent New York Times headline: “About 20 New Billionaires Could Be Minted by 3 Mega-I.P.O.s.” It’s easy to see how investors can get swept up in the hype.

These platforms are designed to amplify excitement, and emotionally charged financial content tends to generate far more engagement than advice that encourages patience. In reality, widespread enthusiasm is often a sign that an opportunity is maturing, not that it’s just beginning.

The Real Cost of Emotional Investing

A recent MarketWise survey of 1,000 American retail investors found that while only 20% described themselves as emotional investors, 48% admitted to making a FOMO-driven investment in the past 12 months, buying a stock, ETF, or crypto at an all-time high. A full 42% of those investors said they lost money as a result, with an average loss of $1,606.

Meanwhile, research by Barber and Odean found that the most active traders, often driven by FOMO and overconfidence, underperformed passive investors by 6.5% annually on average. That’s not a small gap. Compounded over decades, that difference can mean the difference between a comfortable retirement and a stressful one.

The core problem is timing. FOMO tends to peak exactly when prices are highest, after a big run-up, when the story feels most compelling and the momentum seems unstoppable. However, also tends to be when the risk-to-reward ratio is at its worst. By the time something feels obvious, the market has already priced it in.

Why You’re Better Off Waiting Until FOMO Fades

FOMO doesn’t always look the same. Sometimes it’s chasing a hot IPO. Sometimes it’s piling into a sector after a huge run, convinced the momentum will continue. Other times, it’s buying after a sharp price surge or making a large bet on whatever theme dominates the headlines.

What these situations share is the same underlying dynamic: the decision is driven by what the market has already done, not by a thoughtful assessment of what it might do next. You’re reacting to the past and mistaking it for a signal about the future.

High-profile IPOs are a particularly common FOMO trap because the excitement is so visible and the story so compelling. When a company goes public, institutional investors such as venture capital firms, private equity funds, and asset managers are often the only investors positioned to benefit from the initial price “pop.” By the time most retail investors can buy shares, much of that gain has already been captured.

In fact, investors fortunate enough to buy at the offer price have historically enjoyed substantial first-day gains, often averaging 15% to 22%. Yet for the typical retail investor buying at the market open, first-day returns have averaged just 1.3%.

Research also shows that IPOs frequently underperform the broader market, such as the S&P 500, over the following two-and-a-half to three years as early enthusiasm fades. In other words, you’re often better off waiting until the opportunity feels far less exciting.

Questions Worth Asking When You Feel the Pull of FOMO

If you’re experiencing FOMO, there’s a good chance emotion is driving the decision. Before investing, take a step back and ask yourself a few important questions:

Why do I want to buy this? Is it based on research, or because everyone is talking about it?
Does this fit my financial goals and timeline, or am I straying from my plan?
Does the current valuation leave room for meaningful future returns?
How much of my portfolio would this represent, and am I comfortable with that level of risk?
What’s my plan if the investment falls 30% in the first year?

These aren’t complicated questions, but they can help reveal whether you’re making a thoughtful decision or reacting to excitement. And if it feels like you don’t have time to ask them, that’s often the clearest sign that you should pause before acting.

A Long-Term Perspective Changes Everything

The most successful long-term investors understand that they don’t need to catch every opportunity. They simply need to avoid the mistakes that can set them back.

Missing an exciting IPO or a hot sector run is rarely as costly as it feels in the moment. What undermines long-term wealth building is taking on too much risk at the wrong time, selling in a panic during downturns, and allowing short-term noise to derail a disciplined strategy.

If you find yourself caught up in the excitement around a particular investment, slow down. Revisit your financial plan. Talk with a trusted advisor. Ask yourself whether you’d still be interested if nobody else was talking about it.

The best opportunities aren’t necessarily the ones that feel most urgent. They’re the ones that fit your goals, your timeline, and your portfolio, regardless of what’s making headlines.

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What Bond Market Volatility Is Telling Us – And Why It Matters

Investment Management, News, Women and Money / Cathy Curtis / June 12, 2025

From sweeping tariffs to President Trump’s recently proposed “big, beautiful bill,” a wave of policy announcements has rattled the bond market, sending yields higher and sparking renewed concerns about fiscal discipline. While stock market swings tend to dominate headlines, it’s often bond market volatility that provides a clearer view of how investors are truly feeling about the direction of economic policy and government spending.

If you hold bonds in your portfolio, recent developments may feel unsettling. But before making any sudden changes, it’s important to understand what’s behind the turbulence—and why bonds still play a key role in a well-diversified investment strategy.

Understanding the Bond Market

The U.S. bond market is a cornerstone of the global financial system. It enables a wide range of borrowers—from the federal government to municipalities and corporations—to raise capital by issuing debt to investors. In exchange, investors receive regular interest payments and the return of their principal when the bond matures.

Among the many bond types, investors often view U.S. Treasury securities as the safest. Backed by the full faith and credit of the U.S. government, Treasuries are known for their high liquidity, minimal default risk, and reliability, making them a go-to option for investors during periods of economic uncertainty.

Why Investors Are Nervous

While U.S. Treasuries generally are among the safest investments in the world, that sense of security can deteriorate when doubts arise about the government’s fiscal direction. That’s exactly what we’re seeing today.

Recent policy moves—including a sweeping new tariff plan and a large-scale tax-and-spending proposal—have reignited concerns about the rising national debt and the long-term sustainability of U.S. economic policy. These developments have caused bond yields to climb to recent highs and introduced a fresh wave of volatility in the bond market.

It’s easy to interpret these headlines as alarming, but it’s important to put this in perspective. Volatility in the bond market doesn’t function the same way as it does in the stock market.

While equity market swings often reflect company performance or investor sentiment, bond market movements are more closely related to interest rates, inflation expectations, and perceptions of fiscal discipline. In other words, the current turbulence signals a recalibration of investor expectations—not necessarily a crisis.

First: The Impact of Trump’s “Liberation Day” Tariffs

In the immediate aftermath of President Trump’s April 2 “Liberation Day” tariff announcement, the bond market reacted in a familiar way. As equities tumbled, investors sought the relative safety of U.S. Treasury bonds, pushing prices higher and yields lower.

However, that trend quickly reversed. By April 4, Treasuries came under consistent selling pressure, even as stocks continued to slide.

Within just four days, the 10-year Treasury yield surged from 4.20% to over 4.50%, its sharpest jump since the 2008 financial crisis. Because bond prices move inversely to yields, this surge signaled a significant drop in prices.

Instead of acting as a safe haven, investors were selling off government bonds alongside equities—an unusual dynamic that only deepened market uncertainty. For an asset class typically viewed as a global refuge during times of turmoil, this shift was a clear sign of growing unease about the government’s fiscal direction.

In response to the mounting pressure, the Trump administration backed off parts of the tariff proposal in an effort to calm markets and restore some stability.

Next: The “Big, Beautiful” Tax Bill

The bond market faced its second major jolt in May when President Trump’s “big, beautiful” tax bill advanced through a key congressional committee. The proposal—featuring extended tax cuts, a higher debt ceiling, and trillions in new spending—quickly raised red flags among fiscal policy experts.

According to the nonpartisan Committee for a Responsible Federal Budget, the plan could add approximately $3.3 trillion to the national debt by 2034, or closer to $5.2 trillion if temporary provisions become permanent.

Markets were already on edge, and the uncertainty surrounding the bill’s final form only heightened investor anxiety. That pressure intensified when Moody’s downgraded the U.S. credit outlook, citing the government’s growing debt burden and diminishing fiscal flexibility.

Investor concerns became even more evident during a 20-year Treasury auction later in the month, where demand came in well below expectations. Buyers pushed for higher yields, clearly signaling that they now view U.S. debt as carrying greater risk and want to be compensated accordingly.

As a result, the 30-year Treasury yield climbed to 5.14%, its highest level since October 2023. The message to Washington was clear: if the government continues down a path of heavy borrowing and spending, investors will demand higher returns, making it more expensive to finance the nation’s growing debt.

What Bond Market Volatility Means for Investors

President Trump’s proposed tariff plan and multi-trillion-dollar tax-and-spending bill have shaken investor confidence in U.S. Treasuries—long viewed as one of the safest investments in the world. The tariffs raise fears of higher inflation, while the spending plan raises concerns about growing government debt.

While interest rate expectations often drive bond prices, they’re not the only factor. Perceived risk, especially around inflation and fiscal policy, can be just as important.

When investors expect inflation to rise, they demand higher yields to make up for the reduced value of future interest payments. Meanwhile, when government debt increases without a clear plan to manage it, investors begin to question the country’s long-term financial stability.

This uncertainty often leads to higher risk premiums and rising yields, even if the Federal Reserve hasn’t changed rates.

Putting Bond Market Volatility in Perspective

If the recent bond market headlines have you feeling uneasy, you’re not alone. Sudden spikes in yields and talk of credit downgrades can make even seasoned investors take pause. But this isn’t a reason to panic—it’s a normal part of how markets react to changing conditions.

It’s also important to remember that bonds still play a critical role in a diversified portfolio. They help manage risk, preserve capital, and generate income, especially during periods of stock market stress. Part of the reason this moment feels so unusual is because, most of the time, bonds are the calm in the storm—and more often than not, they still are.

Rather than getting swept up in the headlines, it’s more helpful to stay grounded in your broader financial plan. Volatility is a normal part of investing, and your portfolio is built to handle moments like this. What matters most is having a strategy that reflects your goals and balances the risks across different parts of the market.

If you’re feeling uncertain or wondering whether your current investment approach is still the right fit, now is a great time to connect with your financial advisor. A well-crafted plan—one that’s built with the long term in mind—is the best way to stay focused and move forward with confidence, no matter what’s happening in the markets.

Explore our free resources for helpful tips, tools, and educational content to support your financial journey.

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Emotional Investing: Mastering Your Mindset in Turbulent Times

Investment Management, Simple Truths About Money, Women and Money / Cathy Curtis / April 21, 2025

When markets are volatile—as they have been recently—it’s easy to let emotions take the wheel. Fear, uncertainty, and the urge to “do something” can quickly override even the most carefully laid plans and lead to emotional investing.

This isn’t a sign of inexperience; even seasoned investors fall into the trap of reacting emotionally when the headlines feel overwhelming. The truth is, we’re wired to seek control in uncertain situations, and that often means making moves that feel productive in the moment but hurt us in the long run.

Fortunately, when we understand the emotional biases behind our decisions and put thoughtful systems in place, we can create a buffer between our instincts and our actions—making it easier to stay grounded and focused, even in turbulent times.

Why We Make Emotional Investment Decisions

Our brains weren’t designed for long-term investing—they were designed for short-term survival. From an evolutionary perspective, when we sense danger, it’s our limbic system—the emotional center of the brain—that takes over. This system is responsible for quick, instinctive reactions like fight or flight.

In moments of market turmoil, it can easily overpower the more rational prefrontal cortex, which governs logic and long-term planning. The result is a tug-of-war between emotion and reason, often leading to cognitive biases that derail sound decision-making.

Common examples of these biases include:

Loss aversion makes the pain of losing feel twice as intense as the pleasure of an equivalent gain, according to Nobel laureates Daniel Kahneman and Amos Tversky—prompting rash decisions to avoid further loss.
Recency bias causes us to fixate on the latest downturn, assuming it will continue.
Confirmation bias leads us to favor headlines that reinforce our fears.
Herd mentality drives us to follow the crowd, even when the data says otherwise.

Recognizing these patterns is the first step toward developing a more disciplined, resilient investment strategy.

The Cost of Emotional Investing

Different market environments can stir up different emotional traps—each one capable of leading investors off course.

In bull markets, rising prices and media buzz often fuel FOMO (fear of missing out), pushing investors to chase hot stocks or take on too much risk. Overconfidence can creep in, too, leading many to forget that markets don’t rise forever. We’ve seen this pattern before: during the tech boom of the late ’90s, the housing bubble before 2007, and more recently, with the surge in bitcoin.

In bear markets, it’s the opposite. Fear and uncertainty take hold. Panic selling becomes common as investors try to “cut their losses,” often locking in declines that might have been temporary. The 2008 financial crisis was a clear example of how emotions can drive poor decisions.

The impact of these choices is real. According to Dalbar, from 1994 to 2023, the average equity investor earned an annualized return of 8.01%, while the S&P 500 returned 10.15%—a gap largely explained by mistimed buying and selling.

Morningstar also found that over the 10 years ending December 31, 2023, the average fund investor underperformed their actual investments by 1.1% per year. Put simply: it’s not just what you invest in that matters—it’s how you behave.

Staying disciplined and keeping emotions in check isn’t always easy, but it’s one of the most important things you can do to stay on track toward your long-term goals.

Practical Strategies to Avoid Emotional Investing

Emotions are a natural part of investing, but they don’t have to drive your decisions. With the right systems in place, you can reduce emotional interference and stay aligned with your long-term goals.

Here are four strategies that can help you stay the course when your emotions take hold:

#1: Create a Detailed Investment Policy Statement (IPS)

Before putting any money to work, it’s important to build a written plan that clearly defines your goals, risk tolerance, target asset allocation, and the circumstances under which you might make changes. This kind of structure—often called an Investment Policy Statement (IPS)—acts as your financial compass, keeping you grounded when markets become unpredictable.

Instead of reacting to headlines or short-term swings, you can revisit your IPS to stay focused on the strategy you thoughtfully set in place.

#2: Automate Contributions and Rebalancing

The fewer decisions you need to make, the better. Automating your monthly contributions takes the guesswork out of when to invest and builds consistency across all market environments.

In addition to setting up automatic deposits into your retirement accounts, consider directing fixed amounts to your emergency fund and other investment accounts. This kind of automation keeps your financial plan in motion—even on the days when your emotions might try to pull you off course.

#3: Lean Into Dollar-Cost Averaging (Especially in Volatile Markets)

Dollar-cost averaging—consistently investing a fixed amount at regular intervals—can help take the emotion out of investing by shifting your focus from short-term market swings to long-term growth. It’s especially effective during periods of volatility, when the urge to pause or make impulsive moves can be strongest.

A recent study from Vanguard found that this strategy not only helps reduce the risk of mistiming the market, but often leads to a lower average cost per share over time.

#4: Work With a Financial Advisor as an Emotional Buffer

Sometimes, the smartest investment move is choosing not to act—and that’s where a trusted advisor can make all the difference. A skilled financial advisor serves as a steady buffer between your emotions and your money, guiding decisions based on strategy and data rather than fear or impulse.

We provide perspective during turbulent times, help you stay aligned with your long-term goals, and offer the accountability and clarity you might need to navigate uncertainty with confidence.

Manage Your Emotions and Invest with Confidence

Emotional investing is one of the most common—and costly—mistakes investors make. But with the right strategies in place, it becomes easier to block out short-term noise and stay committed to your long-term goals.

Remember, mastering your mindset isn’t a one-time event—it’s a lifelong practice that deepens with experience. Having the support of a trusted financial advisor can make that journey more intentional, especially during periods of uncertainty.

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The Financial Power Shift: How Women Are Taking the Lead in Wealth and Decision-Making

Financial Planning, Inheritance, Women and Money / Cathy Curtis / March 14, 2025

Happy Women’s History Month!

Women have fought for financial independence for generations—often against some pretty steep odds. As late as 1974, securing a credit card or mortgage required a husband’s or other male proxy’s signature. It wasn’t until 1988 that a woman could finally obtain business financing without a male co-signor.

Fast forward to today, and women are increasingly in the driver’s seat of their financial futures. We’re amid one of the most significant wealth transfers in history, with Baby Boomer women at the helm, making crucial decisions about trillions of dollars in assets.

How can women embrace this power and make the most of it?

How Women Approach Financial Decision-Making

Studies have long shown that women approach financial decision-making differently than men. While broad generalizations don’t always hold true, some common themes emerge:

A Focus on Security. Women often prioritize financial security over high-risk returns, making strategic decisions that align with their long-term well-being.
Philanthropy and Impact. Women are more likely to use their wealth to support causes they care about, whether through charitable giving, impact investing, or supporting family members.
A Collaborative Approach. Many women prefer to work with advisors who listen, educate, and collaborate rather than dictate. Financial planning isn’t just about numbers—it’s about aligning wealth with values and goals.

Women Still Face Unique Challenges

Despite great strides, women still face unique challenges in wealth management. For instance, many outlive their spouses, often inheriting financial responsibilities later in life.

Additionally, our education system has not emphasized personal financial planning, so women of all ages can feel uncertain about financial decision-making. To complicate matters further, many decisions require a good knowledge of the tax code—a system that feels like a maze of exceptions, loopholes, and shifting rules. It’s full of “if this, then that” scenarios where a single decision can have cascading effects on taxes, investments, and estate planning.

Taking Control of Your Financial Future

To overcome the challenges, knowledge and planning are essential. Whether it’s working with a trusted financial advisor, educating yourself on investment strategies, or creating a solid estate plan, taking control of your wealth is worth focusing on. Here are a few ideas to help:

Get Comfortable with Investing. Investing in the stock market is a proven way to build wealth. However, women tend to be less confident than men in this area.
Build a Team of Experts. Don’t do it alone. A good financial advisor, estate planner, and tax professional can help you make informed decisions that align with your values and goals. The cost of these professionals can vary. However, you can generally expect to pay 1% of your managed accounts to a financial advisor annually (you should receive both investment management and financial planning for that fee), at least $2500 to $5000 dollars to create a solid estate plan, and $500 to $2500 a year for a tax preparer. Costs depend on the complexity of your finances and other factors.
Define Your Legacy. Whether you want to support causes you care about, ensure generational wealth, or simply enjoy financial independence, having a plan for your wealth is essential.

Celebrate Women’s History Month by Taking Action

So, as we celebrate Women’s History Month, let’s not just reflect on how far we’ve come—let’s take action to shape the future. With knowledge, confidence, and the right support, women are not only managing wealth but transforming the financial landscape for generations to come. One decision at a time, one investment at a time, we’re building a future where financial independence isn’t just possible—it’s the norm.

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Navigating Market Uncertainty During Trump’s Second Term

Financial Planning, Investment Management, News, Women and Money / Cathy Curtis / December 11, 2024

The news cycle is buzzing with speculation about what Donald Trump’s second term might mean for the economy. His agenda could be highly disruptive with priorities like imposing tariffs, expanding domestic energy, extending tax cuts, deporting undocumented immigrants, and deregulating industries.

However, the outcome is uncertain, and investors don’t like uncertainty. This could result in a bumpy ride in the market in the coming months.

Market Volatility: Yes, It’s Unnerving, But It Doesn’t Imply Direction Of The Market

Widely fluctuating balances in your accounts can be unnerving, especially with political drama. It’s hard not to think, “This time, it’s different.” This instinct to hit “sell” and wait for calmer waters can be intense.

But history shows us that markets are resilient. Under most presidents—Democrat or Republican—the S&P 500 has delivered solid long-term returns.

5 Smart Moves to Protect Your Financial Plan Against Market Uncertainty

So how can you stay calm and confident when the markets are swinging? Start here:

Build a Cash Safety Net
Life happens. Whether it’s an unexpected expense or the emotional comfort of having “what if” money, a solid cash reserve is your best defense against uncertainty. Aim for 3–6 months of living expenses.
Resist the Urge to Overreact
Markets don’t reward panic. Don’t overhaul your portfolio based on headlines or short-term fears. Instead, stick to your investment plan unless there’s a clear, data-driven reason to adjust.
Reassess Your Risk Tolerance
If this latest bout of volatility has you losing sleep, it may be time to revisit your risk profile. But remember pulling out of the market entirely is rarely a winning move.
Take a Break from Portfolio Watching
We get it—refreshing your account balance every day is tempting. But constant monitoring during volatile times can lead to stress and bad decisions. Trust your plan and give yourself some breathing room.
Stay Consistent with Your Investments
Keep making those regular contributions, even when the markets feel rocky. Dollar-cost averaging helps you take advantage of dips, positioning your portfolio for future growth.

The Best Course: Stay Disciplined

Know that the financial decisions you make today set the foundation for your future. Whether you’re planning for retirement, supporting a family, or building generational wealth, staying disciplined during market uncertainty is key to achieving your goals.

Remember, investing isn’t about timing the market—it’s about time in the market.

For more financial planning tips and best practices, check out our free resources page.

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Navigating Uncertain Times: How Financial Planning Can Reduce Anxiety and Boost Self-Care

Cash Flow Planning, Financial Planning, Women and Money / Cathy Curtis / September 17, 2024

Practicing financial self-care through thoughtful financial planning can provide a sense of control and stability, helping to reduce anxiety and improve overall well-being.

In today’s fast-paced world, uncertainty is a constant companion. From global pandemics and economic shifts to political upheavals and personal life changes, it feels like we’re always navigating uncharted territory. These unpredictable events don’t just disrupt our external world—they can deeply affect our personal finances and mental health. The stress of the unknown often leads to anxiety, which seeps into our daily routines and clouds our long-term outlook.

Yet, in the midst of all this, there’s one powerful tool that can help: financial planning. More than just numbers and budgets, thoughtful financial planning acts as a form of self-care. It offers a sense of control and stability when everything else feels uncertain. By taking deliberate steps to manage our finances, we not only protect our future but also reduce anxiety and foster a greater sense of well-being today.

Understanding Anxiety Triggered by Uncertainty

While many factors can trigger financial anxiety, presidential elections often stand out as significant stressors. According to an August 2024 survey by the Thriving Center of Psychology, 72% of Americans report feeling stressed about the upcoming election. Interestingly, the impact is more pronounced among women—61% cite high stress levels, compared to 45% of men.

Presidential elections tend to heighten anxiety because of their broad implications. For instance, they can shape economic policies, healthcare systems, and social programs, all of which have a direct influence on personal finances. The uncertainty surrounding potential policy changes can leave people feeling uneasy about their financial future.

The disproportionate stress among women may be driven by several factors. Women often face unique financial challenges, such as wage gaps and career interruptions due to caregiving responsibilities. Additionally, concerns over healthcare access, childcare costs, and other vital issues—many of which are directly impacted by election outcomes—may further amplify stress.

Despite these unknowns, strong financial planning strategies can offer a sense of stability, no matter the political climate. By focusing on your personal financial goals and building financial resilience, you can alleviate some of the stress that inevitably comes with an upcoming presidential election.

The Psychology of Financial Planning During Uncertain Times

Financial stability is a cornerstone of overall well-being, significantly influencing both our physical and mental health. According to the American Psychological Association’s 2022 Stress in America survey, 66% of adults cite money as a major source of stress, underscoring the deep connection between financial health and mental well-being.

Taking a proactive approach to financial planning during uncertain times can offer a sense of control. While we may not be able to predict or influence external events—like economic downturns or political changes—we can still manage our personal financial decisions, which can help counteract feelings of helplessness.

Furthermore, focusing on actionable steps—such as creating a budget, building an emergency fund, or exploring investment options—provides cognitive benefits. In fact, research shows that the act of financial planning itself can lead to better mental health outcomes. For example, Northwestern Mutual’s 2024 Planning & Progress Study revealed that 64% of people who engage in financial planning with an advisor report feeling financially secure compared to only 29% of those who don’t.

Key Financial Planning Strategies as Self-Care Practices

By creating a roadmap for the future, financial planning empowers us to envision and work toward a stable, secure future—even when the present feels overwhelming.

Start by establishing an emergency fund with enough to cover 3-6 months of expenses and make contributing to it a consistent priority. This safety net helps provide peace of mind, allowing you to navigate financial surprises without added stress.

In addition, diversifying your investments across various asset classes and markets is essential. This creates a more balanced portfolio, mitigating the risks associated with market volatility.

If cash flow is a concern, be sure to regularly review and adjust your budget. Look for areas where you can cut back or redirect spending, ensuring your financial choices align with your personal values and goals.

Lastly, don’t lose sight of your long-term objectives. Even during turbulent times, staying focused on milestones like retirement or homeownership can help you maintain perspective and build momentum toward financial security.

Practical Tips for Implementing Financial Self-Care

Implementing financial self-care doesn’t have to feel daunting. Here are some tips for incorporating self-care into your daily life:

Craft a personal financial mission statement that reflects your core values and long-term goals. This will serve as your financial North Star, guiding every decision and keeping you focused on what truly matters.
Make technology your ally by setting up automated savings and investments. Automation helps you stay on track, ensuring you’re consistently working toward your goals, even when life gets hectic.
Conduct regular financial check-ins by yourself or with a partner. These scheduled sessions give you the opportunity to review your progress, adjust where needed, and realign with your financial mission statement.
Celebrate your financial milestones, no matter how small. Whether it’s paying off a credit card, reaching a savings goal, or making your first investment, acknowledging these wins reinforces positive habits and boosts your motivation.

Remember, financial self-care is a journey, not a destination. Every step forward, no matter the size, is a victory worth celebrating.

Additional Considerations

While financial planning can be a powerful form of self-care, maintaining your mental and emotional well-being extends far beyond managing your personal finances. Consider the following strategies to complement your financial self-care routine:

Manage your information intake. Set boundaries on media consumption to avoid information overload, and choose reliable, non-partisan financial news sources to stay informed without unnecessary stress.
Stay focused on your personal financial goals. Emotional, reactive decisions based on temporary events can derail long-term strategies. Staying the course helps protect both your finances and peace of mind.
Don’t hesitate to seek support. Professional financial advice can offer expert guidance tailored to your specific situation, helping you navigate any complexities that arise. Additionally, building a supportive network of friends or family with whom you can discuss financial concerns can provide both emotional encouragement and fresh perspectives.

Maintaining Perspective During Uncertain Times

In times of uncertainty, it’s crucial to focus on what you can control. Your financial journey is uniquely personal, and every small step you take moves you closer to long-term success.

Remember, you don’t have to navigate this journey alone. I partner with my clients to provide guidance and support as life’s financial challenges and decisions arise. By proactively managing your financial future, you’re not just improving your financial health—you’re also boosting your mental and emotional well-being, creating a stronger foundation for overall happiness and resilience.

For more financial planning tips and best practices, check out our free resources page.

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How Presidential Elections Affect the Stock Market: A Historical Perspective

Financial Planning, Investment Management, News, Women and Money / Cathy Curtis / July 24, 2024

When it comes to Presidential Elections and the stock market, history shows that the outcome has little impact on long-term performance.

As the 2024 U.S. Presidential Election approaches, many investors are worried about its potential impact on the stock market. The situation has become even more uncertain since President Biden’s withdrawal from the race. While Vice President Harris is considered a likely successor, an official Democratic nominee has yet to be announced.

Despite the current ambiguity, historical data offers a reassuring perspective: presidential elections typically don’t have long-lasting effects on financial markets. In fact, stocks have shown a tendency to rise over time, regardless of which party occupies the White House.

To help ease concerns about this year’s election outcome, let’s explore some key insights from past market performance during election cycles.

How the Stock Market Performs in Presidential Election Years

Historically, the U.S. stock market has exhibited distinct patterns during presidential election years. For instance, in the months leading up to an election, market volatility tends to increase as investors grapple with the uncertainty surrounding the outcome and its potential economic implications.

However, a closer look at market trends in the months following past elections reveals a more nuanced picture. Specifically, in the immediate aftermath of an election, the stock market often experiences a brief period of increased volatility as investors adjust to the new political reality.

This volatility can be particularly pronounced if the election results are unexpected or if there’s a prolonged period of uncertainty. One notable example is the contested 2000 election between George W. Bush and Al Gore when the S&P 500 fell -7.8% from Election Day through year-end.

Meanwhile, quarterly stock market performance during presidential election years tends to vary. While the first half of election years is often sluggish, stronger performance in the second half of the year frequently follows.

For instance, since 1926, the average returns for the S&P 500 in the first and second quarters of election years have been relatively modest at +1.3% and +1.5%, respectively. However, market growth has historically accelerated in the third and fourth quarters, with average returns of +6.2% and +3.3%, respectively.

Despite these short-term fluctuations, the stock market has generally displayed resilience during election years. In fact, research from LPL Financial shows that since 1952, the S&P 500 has generated an average return of +7% during presidential election years, suggesting that the market tends to adapt relatively quickly to new administrations and their policies.

Understanding the Longer-Term Impact of Presidential Elections on the Stock Market

Depending on the analysis period, historical returns may suggest that the stock market performs better under one party compared to the other. For instance, from 1952 through June 2020, the average annual real return for the S&P 500 was +10.6% under Democratic presidents and +4.8% under Republican presidents, according to a recent Forbes analysis.

Yet, stock market performance doesn’t always move in lockstep with the economy (or election cycles for that matter). For example, Bill Clinton was president during one of the most noteworthy economic expansions and bull markets in history; however, George W. Bush was actually in the White House when the expansion began.

Despite the performance patterns that tend to emerge leading up to and following election years, U.S. stocks have historically posted gains over the long run regardless of which party is in the White House. In fact, over the last 50 years (as of April 30, 2024), the S&P 500 has delivered an average annual return of +11.35%.

Exploring America’s Most Contentious Presidential Elections

The U.S. presidential election between Joe Biden and Donald Trump in 2020 was remarkably contentious, but it wasn’t the first time the nation faced such a divisive electoral battle. Throughout American history, several presidential elections have left a significant mark due to their intense disputes and enduring impacts.

These elections illustrate the enduring challenges of the U.S. electoral system and the nation’s capacity to navigate political crises. While the specifics of each case differ, the underlying theme remains the same: the resilience of American democracy and the U.S. economy in the face of profound political divisions.

The Election of 1800: Jefferson vs. Adams

The election of 1800 between Thomas Jefferson and John Adams is often cited as the first major contentious presidential race. The Federalist incumbent Adams faced off against his Democratic-Republican challenger Jefferson in an election that highlighted deep political divisions.

The electoral tie between Jefferson and Aaron Burr, both from the same party, led to a prolonged decision process in the House of Representatives. Ultimately, Jefferson’s victory set a precedent for the peaceful transfer of power, a cornerstone of American democracy.

During this early period, detailed stock market data is sparse, but the election didn’t significantly disrupt the fledgling U.S. economy.

The Election of 1876: Hayes vs. Tilden

Perhaps the most contentious election in U.S. history occurred in 1876 between Rutherford B. Hayes and Samuel J. Tilden. Tilden won the popular vote, but 20 electoral votes from four states were disputed amid accusations of fraud and corruption.

The Compromise of 1877 resolved the stalemate, which awarded the presidency to Hayes in exchange for the withdrawal of federal troops from the South, effectively ending Reconstruction. This compromise had long-lasting repercussions, particularly for African American civil rights.

Stock market data is also sparse from this period, but the aftermath of the Civil War and the Panic of 1873 heavily influenced economic conditions, and not in a good way.

The Election of 1912: Wilson vs. Roosevelt vs. Taft

The 1912 election was another highly contentious race involving former President Theodore Roosevelt, incumbent William Howard Taft, and Democrat Woodrow Wilson. After failing to secure the Republican nomination, Roosevelt ran as a third-party candidate under the Progressive Party, splitting the Republican vote and enabling Wilson to win.

This election was marked by Roosevelt’s dramatic campaign, including surviving an assassination attempt and continuing his speech despite being shot. The division within the Republican Party highlighted the era’s intense political strife and paved the way for Wilson’s progressive reforms.

Better stock market data exists for this period. The Dow Jones Industrial Average showed a modest performance throughout the year, reflecting investors’ adjustment to the political uncertainty and the split in the Republican Party.

The Election of 2000: Bush vs. Gore

The 2000 election between George W. Bush and Al Gore is famous for its protracted and bitter dispute over Florida’s electoral votes. The close vote count led to multiple recounts and legal battles, culminating in the Supreme Court’s decision in Bush v. Gore, which effectively awarded Florida’s electoral votes to Bush, securing his presidency.

The controversy over ballot design, voter intent, and the integrity of the electoral process raised serious questions about the robustness of American democracy. The S&P 500 experienced significant volatility as a result and ended the year with a loss of -9.1%.

The Election of 2020: Biden vs. Trump

The 2020 election between Joe Biden and Donald Trump was particularly contentious, marked by claims of fraud and a prolonged vote count. Despite the political turmoil, the S&P 500 ended the year with a strong performance, gaining +18.4%. This was largely due to the market’s optimism about post-election stability and the expected economic recovery from the COVID-19 pandemic.

Time in the Market Matters More Than Political Party

While presidential elections can trigger short-term market swings, the long-term performance of the U.S. stock market has historically been more influenced by time invested rather than by which party controls the White House. Consider this striking example: from 1926 to 2023, a $1,000 investment in the stock market, with dividends reinvested, would have grown to over $14.5 million—regardless of which political party held the presidency.

This remarkable growth highlights two crucial points for investors:

The power of maintaining a long-term investment strategy, rather than attempting to time the market based on election outcomes.
The significant impact of compounding returns over extended periods.

These insights underscore why staying invested for the long haul is often more beneficial than making reactive decisions based on short-term political events.

Presidential Elections and the Stock Market: Additional Considerations for Long-Term Investors

While understanding the historical relationship between presidential elections and the stock market can be helpful, it’s important to recognize the limitations and caveats of these analyses.

First, elections are inherently unpredictable. Despite the increasing sophistication of polling methods and political forecasting, there’s always the potential for unexpected outcomes or events that can significantly impact the market. The 2016 U.S. presidential election, for example, defied many pollsters’ predictions and led to a brief period of market volatility before stocks ultimately rebounded.

Additionally, it’s crucial to remember that presidential elections are just one of many factors that can influence the stock market. Economic indicators such as GDP growth, inflation, and employment rates, as well as corporate earnings, interest rates, and global events, all play significant roles in shaping market sentiment and performance. In many cases, these factors outweigh the impact of an election.

As an investor, it’s crucial to maintain a long-term perspective and stay focused on your financial goals. By staying informed and sticking to your investment plan, you can successfully navigate short-term market fluctuations and position yourself for long-term financial success.

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Navigating Uncertainty: October Market Review and Outlook

Investment Management, News, Simple Truths About Money, Women and Money / Cathy Curtis / November 3, 2023

In this October market review and outlook, we provide a summary of recent events in the economy and financial markets and offer insights into what this may mean for investors moving forward.

For the last year, forecasters have been predicting an economic downturn in the United States as the Federal Reserve (Fed) strives to control inflation by raising interest rates. Historically, the Fed has had difficulty achieving an economic “soft landing”—that is, taming inflation without causing a damaging recession—when raising rates.

However, more than a year into the Fed’s rate hike cycle, the U.S. economy remains resilient. In fact, the first estimate of third-quarter GDP growth came in at an annual rate of 4.9%, its fastest pace since 2021.

Meanwhile, financial markets have taken a hit in recent months. Both the S&P 500 and Nasdaq dropped more than 10% from their July highs in October, placing both indexes in correction territory. The bond market has also struggled recently as interest rates climb higher.

As we near year-end, many investors are concerned about what a potential recession and ongoing market volatility may mean for their money. Here’s a recap of what’s happened lately and what that may mean for investors heading into 2024.

The Economy Remains Resilient

Since March 2022, the Fed has hiked interest rates 11 times, raising the federal funds rate from near-zero to a target range of 5.25% to 5.5%. However, the Fed has held rates steady since July 2023 in light of moderating inflation and a remarkably resilient labor market.

According to the latest reading of the personal consumption expenditures price index, the Fed’s preferred measure of inflation, core inflation is now 3.7% year over year. While this is significantly lower than its peak reading in June 2022, it’s still a far cry from the Fed’s 2% annual target.

Meanwhile, the unemployment rate continues to hold steady at 3.8%, and third-quarter wages and benefits grew 4.3% year over year. Due in part to ongoing labor market strength, consumer spending increased by 4% in the third quarter, propelling GDP to an annual rate of 4.9%.

October Market Review: Financial Markets Continue to Struggle

Despite strong economic performance, the U.S. stock market continued its decline in October, marking three straight months of negative returns. A variety of factors are in part responsible for the recent pullback in performance, including:

Soaring Treasury yields. The yield on the 10-year Treasury note approached 5% in October, the highest level since 2007, curbing investors’ appetite for risk and creating headwinds for big tech and other high-growth companies.
Tax-loss harvesting. The recent pullback prior to October created more opportunities for tax-loss harvesting, which put additional pressure on the market in October as investors sold underperforming stocks to offset gains. On the bright side, research from Bank of America shows that although tax-advantaged selling typically pressures stocks at year-end, it often sets the stage for a strong rebound in January when traders repurchase.
Higher-than-expected GDP growth. Third-quarter GDP grew at a surprising 4.9% annualized rate, quashing hopes that the Fed will lower interest rates in the near term.
Ongoing geopolitical tensions. Russia’s war in Ukraine and the Hamas-Israel conflict continue to add to market uncertainty.

The bond market has also seen weakness as interest rates continue their ascent (in general, bond prices fall as interest rates rise, and vice versa). Both 10-year and 30-year Treasury yields increased more than 0.3% in October, causing longer-term bonds to underperform.

Looking Ahead: Underlying Economic Concerns

Although the U.S. economy continues to hum along, concerns of a potential downturn persist. Some of the factors that could contribute to an economic slowdown include:

Declining real disposable income and household savings. Personal income adjusted for taxes and inflation fell 1% in the third quarter after rising 3.5% in the second quarter. Furthermore, personal savings as a percentage of real disposable income fell from 5.2% in the second quarter to 3.8% in the third quarter. As consumers eat through their savings, they may not be able to spend at the same rate going forward.
Rising long-term interest rates. Long-term interest rates recently saw their highest levels since 2007. For example, 10-year Treasury yields briefly passed 5% in October, while 30-year yields traded north of 5% for most of the month. Higher rates may be problematic for consumer spending and business investment, as well as several business sectors including the housing market.
Tighter credit markets. According to a recent survey from the National Federation of Independent Business, more small businesses reported difficulty accessing credit in September compared to the previous month. The inability to secure capital could lead to a pullback in business investment and hiring.

If these concerns come to fruition, financial markets and the economy might falter accordingly. On the other hand, an economic slowdown could alleviate the need for further Fed intervention, paving the way for future interest rate cuts.

What This Means for Investors

Although recent GDP data is encouraging, these growth rates may not be sustainable as underlying economic concerns create pressure for consumers and businesses alike. While a full-blown recession may not be imminent, many economists expect the economy to cool in the coming months.

Meanwhile, the Fed will decide whether future rate hikes are necessary as new data becomes available. Despite holding rates steady since July, another increase is possible before year-end.

For investors, this lack of clarity may mean heightened market volatility in the near term. At the same time, November is historically the best month for the S&P 500. Indeed, strong performance from U.S. equities could help offset recent losses.

Ultimately, we don’t know what the future holds. However, we do know that patience tends to reward long-term investors. Those who maintain a diversified portfolio and stick to their investment plan typically fare better than those who attempt to time the market.

In the meantime, I encourage you to focus on what’s controllable—for instance, your spending habits, savings rates, and investment decisions—and avoid knee-jerk reactions to negative headlines.

If you found this October market review and outlook helpful, head over to our free resources page for more financial planning tips and guidance.

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S5E4: Mastering the Art of Real Estate Staging & Interior Design with Ruth Krumbhaar

Financial Finesse Podcast / Cathy Curtis / July 20, 2023

Real Estate Maven Ruth Krumbhaar Shares Her Winning Formula for Staging and Interior Design

Today, Ruth Krumbhaar returns to the podcast to generously share her real estate investing wisdom and unique staging and interior design insights with us. As you may recall from our last episode, Ruth is a successful therapist, coach, and part-time real estate investor who’s built a reliable source of passive income through her investments.

However, while our last conversation focused on many of the technical aspects of real estate investing, today’s episode explores the softer side of real estate as we dive into the world of design and home decorating. Specifically, Ruth is here to share her distinctive approach to sprucing up investment properties, including Airbnbs, long-term rentals, and homes she intends to flip.

In this episode, we discuss the balance between budget, trend awareness, and tenant preferences that forms the cornerstone of Ruth’s process. We also delve into the importance of knowing your audience when it comes to decorating a property. In addition, Ruth explains how a touch of whimsy can transform an Airbnb property from forgettable to memorable.

And if you’ve ever wondered where to find the best decor or how to balance high-end and affordable items for a cohesive aesthetic, Ruth has you covered. Indeed, you’ll gain insider knowledge on how to shop savvy, mix and match classic pieces with modern accents, and curate a unique look that stands out without being generic.

Later in the episode, our conversation shifts to the practicality of design. Because good design isn’t just about how a space looks, but also how it functions. For example, Ruth and I talk bathroom renovations, room refreshes, and the vital importance of a welcoming entryway. We also discuss the value of investing in quality pieces, the significance of an elevated element in every room, and the benefits of staying in your own Airbnb to gain a better understanding of your guests’ needs.

Lastly, Ruth shares her thoughts on how to undertake a themed decorating project without overdoing it. The key, according to Ruth, is finding the right balance and knowing when to pull back.

Ruth’s philosophy is that your home should bring you joy—and she’s here to help us discover how to do just that. Whether you’re a seasoned real estate investor, a curious novice, or simply interested in decorating tips for your own home, I think you’ll find this episode to be a treasure trove of creative insights and practical advice.

With that, I hope you enjoy mastering the art of real estate staging and interior design with Ruth Krumbhaar.

Episode Highlights

[00:04:00] Ruth shares her decorating philosophy and why she always starts with a blank canvas when designing a space.
[00:14:06] Why every room doesn’t necessarily need a showstopper when it comes to home decorating.
[00:20:09] How Ruth determines her decorating budget and where she shops to find cost-effective, quality items.
[00:27:51] Tips and tricks for decorating an Airbnb for functionality and style.
[00:38:12] Why flipping a property requires a slightly different design approach than decorating a rental property.
[00:50:20] Ruth’s advice for handling home renovation projects, such as updating a bathroom or kitchen, and why a good contractor can make a world of difference.
[01:01:32] Tips for updating a space where you’ve grown tired of the décor, and why hiring a style consultant can be a worthwhile investment.
[01:07:35] What Ruth believes are the most important items to invest in when decorating your home.
[01:15:59] Why practical designs can actually boost your return on investment with an Airbnb property.
[01:20:30] The importance of understanding local real estate laws when investing in a rental property.

Links Relevant to this Episode & More Tips from Ruth

Windows: MilGard is a good and a reliable company offering a range of styles.

Hardware: Emtek sells high-quality products at a reasonable price.

Faucets/Fixtures: Grohe fixtures are stylish, high-quality quality and less expensive than designer fixtures.

Railings: AGStainless railings are gorgeous and don’t rust.

Doors: Eto Doors offers great designs at an affordable price point.

Countertops/Tile:

Lower End: Granite Expo, Best Tile, Uni Stone and Cabinet, and Floor and Decor (be careful not to buy the cheap, trendy tile; you will see it everywhere).
Medium: Floorcraft
High End: Galleria Tile near the Design Center

Favorite used furniture resources:

Chairish
Home Consignment Center
Design Plus
Facebook Marketplace & Craig’s List

Fun resources in Los Angeles:

Flea Markets for rugs
Badia Design for Moroccan furniture and fixtures
HD Buttercup

Other inexpensive ways to add style to your home:

Plants
Bohemian pieces like the African JuJu hats
Forage for wild grasses and then spray them with hairspray so they don’t create a mess
Go to book sales and buy old books for your shelves (and to read)
Treasures from trips (I always buy textiles when I travel and use them as table cloths, decor, blankets, pillow covers, etc.)

Enjoy the Full Episode

Other Ways to Enjoy this Episode

Read the Full Transcript

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S5E4 Transcript: Mastering the Art of Real Estate Staging & Interior Design with Ruth Krumbhaar

Podcast Episode Transcript / Cathy Curtis / July 20, 2023

In this episode, host Cathy Curtis and special guest Ruth Krumbhaar discuss real estate design and interior decorating best practices.

[00:03:32] Ruth Krumbhaar: Hi, nice to see you.

[00:03:34] Cathy Curtis: Good to see you again, too. I’m really excited to talk with you again about, this time, all things decorating homes and residences and rentals, etc. For our listeners, you and I spoke a couple weeks ago about buying properties. You have a lot of experience. You started doing it as a single woman and you’ve built a nice portfolio for yourself.

[00:04:00] Ruth shares her decorating philosophy and why she always starts with a blank canvas when designing a space.

[00:04:00] Cathy Curtis: And of course, when you buy properties, you have to decide what you’re going to do with them once you either move in or decide to rent them or flip them or whatever your goal is. So I’m excited to talk to you about how you think about that. In general, an overview how you start thinking about it. And then we can get into the details of each type of property. So why don’t you talk about your philosophy about home decorating?

[00:04:31] Ruth Krumbhaar: It’s come to me over many years and many missteps, and I have a formula at this point of how I approach properties. And the formula is one that’s, it’s easy. It’s basically, I have a particular white paint that I love: Benjamin Moore Cotton Balls. Warm white, it’s got a touch of yellow, so it looks, it’s warm, but you could paint the whole interior of the house that color, and different rooms will take on slightly different feels.

[00:05:03] Ruth Krumbhaar: So I always like to start with a really blank canvas, and just…

[00:05:08] Cathy Curtis: I’m gonna ask, because this white thing is so important. So truly, the Cotton Balls, even with rooms facing different ways and all that, it looks good? And you don’t have to paint the walls to see what it looks like in different light?

[00:05:23] Ruth Krumbhaar: It always looks good.

[00:05:25] Ruth Krumbhaar: I, at least I think it always looks good. It’s warm, but it’s not cream. It’s white. And so it doesn’t have that cold sort of sterile feeling that sometimes an all white house can have.

[00:05:40] Cathy Curtis: I know exactly what you’re talking about because I’ve picked bad whites before where they look chalk and you do not want that.

[00:05:47] Ruth Krumbhaar: Yeah. So I have found that this one, it just works over and over again. It works in modern houses, it works in old houses, it works upstairs, downstairs, you name it.

[00:05:57] Cathy Curtis: What a great tip, okay.

[00:05:59] Ruth Krumbhaar: So I generally use that everywhere to start off with and then I add color as I get to know the spaces. So maybe I’ll do an accent wall or maybe I’ll paint the powder room in one of my houses.

[00:06:12] Ruth Krumbhaar: I painted the powder room like this dark rich brown, which sounds awful, but it’s so incredible to go in. You feel hugged by the color.

[00:06:22] Cathy Curtis: Nice. Now, do you, and you wait to do that then? You paint it all white. And then you start decorating or? What phase do you start repainting?

[00:06:34] Ruth Krumbhaar: Generally, I like having mostly white walls.

[00:06:37] Ruth Krumbhaar: I’ve learned I’m different, like you’ve got that beautiful red wall behind you. And so that room must be so intense and beautiful. If that’s how you’re approaching the home, and I’ll get to that in a minute. It’s so important to maybe not do the white, not do Ruth’s formula, but to actually go in and pick a series of rich, beautiful colors that are going to be more personal to you.

[00:07:04] Ruth Krumbhaar: And if somebody else has a different formula, they should go with that. And I think in a primary residence, it’s so important to tap into what is truly right for you.

[00:07:16] Cathy Curtis: Yeah, I can see that differentiation where the white makes so much sense for rental.

[00:07:26] Ruth Krumbhaar: Yeah, and we’ll get to the primary residence in a little bit, but I generally love that Cotton Balls.

[00:07:32] Ruth Krumbhaar: I generally like thicker baseboards, nice thick ones. I think it feels, even in an older house, you can do more antiquey ones in a modern home. Just square, boxy one.

[00:07:44] Cathy Curtis: You always add those if a home doesn’t have them?

[00:07:47] Ruth Krumbhaar: I don’t always, but I like to. I find that it’s a really wonderful way to have something feel finished.

[00:07:53] Ruth Krumbhaar: It’s smart. It’s smart. And then, and especially if you can, if you’re doing the whole house, if you just are consistent throughout the whole house, that also makes the house feel more unified. And then I have certain floorings that I love. So for like cheap properties, I have vinyl, kind of wide plank, grayish vinyl flooring that I think most people, at least today, find appealing.

[00:08:18] Ruth Krumbhaar: And then I’m just putting it in one of my houses, a sort of medium plank, like a softer, lighter wood and a kind of more of a tan color, really warm and pretty. And it has a little bit of variation, but it’s also a manufactured wood.

[00:08:33] Cathy Curtis: Okay. And where do you source these kinds of things?

[00:08:38] Ruth Krumbhaar: For the cheaper ones, it’s just Home Depot.

[00:08:40] Ruth Krumbhaar: You can just go there, and they generally have pretty trendy things. You can find a lot of good things at a Home Depot or Lowe’s because they are staying current with the trends. So I wouldn’t be afraid to do that, and especially in a less, less expensive property or a rental property that’s going to have a lot of wear and tear.

[00:09:01] Ruth Krumbhaar: But the house I’m doing right now, it’s a little more high-end, so I’m doing it a really nice manufactured wood, which is easy to install, because it is a rental. And so just in case something happens, I want it to be something that isn’t going to cost an arm and a leg to take out, so I’ve done a floating floor there.

[00:09:25] Cathy Curtis: Describe the floating floor.

[00:09:27] Ruth Krumbhaar: The floating floor is when they don’t actually stick the floor onto your foundation or the base. Okay. They actually float it and they put a liner there and then they put the floor on top and then they put the baseboard around that. Okay. It’s easier because if it gets destroyed or distressed, you can pull it out easily or you can pull out part of it easily and reinstall.

[00:09:53] Cathy Curtis: Okay. And you wouldn’t do this in a residence, you would do this in a… Rental in a rental.

[00:09:58] Ruth Krumbhaar: Yeah. Or I do it in a residence that I wasn’t planning on living on in a long for a long time. Some people, you probably advise some of your clients who are interested in this and keeping something for two years and then selling it and you get the tax deduction.

[00:10:16] Ruth Krumbhaar: For selling the primary residence. I know people who move every two or three years. To upgrade each time because in that case, you would do it. But in a residence that you are going to live in a long time, I would do a different kind of flooring.

[00:10:32] Cathy Curtis: Okay.

[00:10:34] Ruth Krumbhaar: Trying to think what else. I generally I love a colorful front door.

[00:10:41] Ruth Krumbhaar: So I think that’s a place to add some fun and some whimsy and it doesn’t cost a lot. It could be repainted, but it’s great. It’s fun for a primary residence. It’s fun for a little, even a cheap little rental property. I just rented out a place that has a bright blue, turquoisey blue door on it. It’s a white house.

[00:11:01] Ruth Krumbhaar: And the gal who rented it said, I wanted to rent it because I like the front door.

[00:11:05] Cathy Curtis: Yeah. Interesting. We just got our house painted all over outside, and we hired a colorist to help us because I don’t feel confident picking colors and she recommended it’s not red. It’s like a, it’s like a deep burgundy door and the rest of the house is variations in tan.

[00:11:26] Cathy Curtis: It looks fantastic.

[00:11:27] Ruth Krumbhaar: Oh, that’s, and that’s such a great investment that you did because painting the outside of the house is such a, it’s a big deal.

[00:11:36] Cathy Curtis: Oh, it’s a huge deal. And she had an eye, she looked at what we had in landscaping, we have a plum tree, and we have some other plants that are purple in them, and it just tied it all together.

[00:11:48] Ruth Krumbhaar: Oh, that must be gorgeous. I definitely think investing in people like color consultants when you’re when you’ve got a nice property like I’m sure yours is or a primary residence that you want to invest in. That’s a great thing to do.

[00:12:08] Cathy Curtis: I’ll put the name of the woman in the show notes because she’s fantastic and she, I think she’s pretty well known, at least in the East Bay for doing this kind of consulting.

[00:12:19] Ruth Krumbhaar: That’s great. Yeah. Happy with how it turned out?

[00:12:21] Cathy Curtis: Super happy. And you don’t want to make a mistake in our house, we have a big house, lots of square footage to be covered.

[00:12:30] Cathy Curtis: What if we didn’t like it? Then you’re driving up to a house that you don’t like the color. So I didn’t want to chance it. I thought that was a good investment.

[00:12:40] Ruth Krumbhaar: Yeah, other things I love are Grohe fixtures. They’re German and of good quality. They don’t break easily and they’re nice.

[00:12:54] Ruth Krumbhaar: They’re not the nicest, but they feel good in your hands. They feel like good quality and they’re not that expensive. You can buy them sometimes at Costco. They have a lot of deals.

[00:13:06] Cathy Curtis: Okay, which fixtures?

[00:13:07] Ruth Krumbhaar: Faucets for the bathroom or kitchen. And again, they don’t do super trendy or real showstopper pieces. But for a regular house that’s going to have some wear and tear like a rental property or even a primary residence, if you like the design, they’re all right.

[00:13:28] Cathy Curtis: But especially it’s a way to save a few dollars. If you’re not looking to have bold designs in these fixtures. Okay, good to know.

[00:13:38] Ruth Krumbhaar: Yeah, exactly. And I think the other thing that I have a really good friend and we talk about design a lot, is you don’t want to gild the lily.

[00:13:45] Ruth Krumbhaar: You don’t want to have a showstopper here and then a showstopper there. If your kitchen is very simple and beautiful and you want one sort of fancy thing, having that fancy faucet in the kitchen might be a great idea. It can be the showstopper. Everything else can be more quiet.

[00:14:06] Why every room doesn’t necessarily need a showstopper when it comes to home decorating.

[00:14:06] Cathy Curtis: So, do you think every room needs a showstopper?

[00:14:09] Ruth Krumbhaar: Not necessarily. Can it also leave space for fun cushions and rugs and things like that? Not necessarily. And I think I’m trying to think of other formulaic things. I see a lot of houses; the kind of houses that excite me are those like ugly modern houses. They’re modern but they have traditional fixtures in them and they’re beaten up maybe from the ’50s or the ’60s. Those kinds of houses, I love the idea of doing a modern makeover, bringing them back to what they really should be.

[00:14:52] Ruth Krumbhaar: And so a lot of like iron railing, modern iron railings, or even glass railings. A lot of really simple, beautiful sort of planes, lots of texture, but keeping everything very simple and quiet. I love thinking about those kinds of houses.

[00:15:10] Cathy Curtis: Where would you source those things, like the railings, and where do you generally go?

[00:15:15] Ruth Krumbhaar: Usually I’ll go to an iron worker. Have them manufacture something. You can find pictures on Pinterest or online and you can just go to them and make them. There are also, I know I bought some premanufactured ones through a contractor and I forget the, who made them, but they’re beautiful. And they were there at my property on Telegraph Hill.

[00:15:40] Ruth Krumbhaar: They were actually made for marine around marinas. So they’re very durable, they don’t rust, and I’ve had great luck with those. I can get the name.

[00:15:50] Cathy Curtis: Okay, that’d be great. And just a broader question about this, when you decide that you’re going to have something made versus buying something manufactured, and I know some of it is budget.

[00:16:04] Cathy Curtis: But are there certain things that you think are worth having made for you specifically?

[00:16:12] Ruth Krumbhaar: I think railings can be, but you have to be, you have to make sure that they understand really how to do it, that they’ve had experience doing it. Cause I’ve had experience where people get it the first time and it’s perfect.

[00:16:25] Ruth Krumbhaar: And I have experienced people tried three or four times and they keep getting it wrong. So you have to be sure that you’ve, you’re working with someone who really knows what they’re doing. But it can be a really great way to actually save money to do iron railings in a more modern sort of aesthetic. But again, making sure that you have the contractor who knows, really knows how to handle the situation.

[00:16:49] Ruth Krumbhaar: How stairs turn, how they, that they have experience with that.

[00:16:54] Cathy Curtis: Okay. And so do you take out whatever railings there are already and just change it to iron railings?

[00:17:04] Ruth Krumbhaar: I, in almost, not every house, but most of the houses I’ve worked on, I have taken the railings out because I have a thing against those sort of traditional. I love beautiful old railings, stair railings, if it’s in a really old house.

[00:17:20] Ruth Krumbhaar: Newer ones with a nod to the old, the sort of faux colonial ones. I have a thing about those. I can’t stand them. Yeah, they go out.

[00:17:31] Cathy Curtis: So that is part of your formula. I bet that gives an instant boost to the space.

[00:17:36] Ruth Krumbhaar: Really does. Yeah. And even for a space that’s not totally modern having one modern touch like a cool iron railing or cool glass railing can really Add a bit of that modern feel, even if you don’t want to go all the way, maybe a little drama to a space.

[00:17:53] Cathy Curtis: Yeah.

[00:17:55] Ruth Krumbhaar: So it’s just a nice way to take things up a notch. And so I’m thinking about other formulaic things that I do. Or pet peeves that I have. I know that one of the things that I find really important for rental homes, Airbnbs, primary residences, and you spoke to this earlier with your house, having that beautiful front door, a beautiful entrance, a beautiful lid.

[00:18:26] Ruth Krumbhaar: Numbers visible, maintained area when you come up to a home, it makes such a difference.

[00:18:32] Cathy Curtis: Yeah, I agree. It’s like a welcome mat, a nice welcome mat.

[00:18:38] Ruth Krumbhaar: Yeah, yeah. And so having good lighting, having that front door, beautiful color. Having simple and easy to maintain landscaping so that unless you’re a gardener, you can have a ball, but most of us don’t really have a lot of time to upkeep our garden, so keep it a nice, simple, classic design.

[00:19:00] Cathy Curtis: Nice numbers, you can get some cool house numbers that add an instant boost.

[00:19:06] Ruth Krumbhaar: Yeah, yeah, and allow people to find your house more easily. It just. There’s something, and I also think like having a little bit of a wider path up, if possible. Not, it’s not always possible, but having a little bit of a wider path up to your home and an ample space to stand in front of the door if there’s not a big porch.

[00:19:26] Ruth Krumbhaar: Extending that as much as you can, not having it feel crowded and cramped.

[00:19:32] Cathy Curtis: So I think those are great tips. Thank you. Thank you. I want to talk to you about, because I know you think about decorating differently when it comes, of course, when it comes to the space you’re going to live in yourself versus you have rental properties in Indiana.

[00:19:50] Cathy Curtis: And in San Francisco and one, one other. Oh, and Maine. Yeah. And I, and you use some, you use yourself and then you rent part of the time. Others are full time rentals. Generally, though, when you’re thinking about decorating a space, you’re going to, let’s say a full rental. Let’s just break it down.

[00:20:09] How Ruth determines her decorating budget and where she shops to find cost-effective, quality items.

[00:20:09] Cathy Curtis: Residential. We’ll talk about residential first because that’s fun. You get a rental. And of course, the first thing you’re going to think about is, I don’t want to spend a ton of money on this and it’s probably going to get some wear and tear. And so how do you budget for it and where do you go to find good items?

[00:20:28] Ruth Krumbhaar: I recently did that with an Indiana house and really it was, I took a look at the floors, and they just weren’t that great. They were all scratched up. There was a little hole in one area. And I spoke with the contractor and got a good price on installing just the cheap vinyl flooring.

[00:20:46] Cathy Curtis: And when you say cheap, but you’re saying cheap, but you still think it looks good, right?

[00:20:53] Ruth Krumbhaar: It does. Yeah. It looks cute. I don’t think I would want it necessarily for my home, but for a rental house for, say, a young person, the woman who is renting it is getting her PhD, she’s a soccer coach, she’s got a dog, she just wants something that’s easy to maintain and manage, that her dog won’t scratch the floors, and she’s young, so she likes that trendy feel.

[00:21:18] Ruth Krumbhaar: A lot of like light fixtures that were fairly inexpensive that I got at either Ikea or Home Depot that had that farmhouse look. So I tried to make the house fun and appealing and consistent. But not expensive light fixtures for 30 a pop.

[00:21:40] Cathy Curtis: Okay, great. And the, and how, and the flooring, what does it cost?

[00:21:47] Ruth Krumbhaar: The vinyl? I can’t remember, but it was like on super special. I. A friend of mine was also redoing her rental and she picked the tan and I picked the gray. My place rented first, so I was like, we were arguing over should you do tan or gray. I said gray is trendier. Those young kids, they like the gray.

[00:22:06] Ruth Krumbhaar: That’s the, this is their aesthetic.

[00:22:09] Cathy Curtis: How do you keep up with the trends?

[00:22:09] Ruth Krumbhaar: Sometimes I’ll watch HGTV, or I try and look at what, like for this one I was thinking, what do young people like? And so I would, I looked at some of the pictures of HGTV that I thought were more appealing to younger folks And maybe I wasn’t right, but mine did rent first.

[00:22:31] Ruth Krumbhaar: And that’s really about knowing your audience. We’re really looking at what is your goal? My goal was to get in a good, solid renter who was going to stay for a number of years, who’s going to care for the place. So I wanted it to be nice enough that it didn’t feel like a flop house for a bunch of students to mess up.

[00:22:50] Ruth Krumbhaar: I made it as pretty as I could and appealing to this sort of younger demographic.

[00:22:55] Cathy Curtis: Okay. What about windows? Do you ever change out the windows if they’re…

[00:23:04] Ruth Krumbhaar: Yeah, and again, that’s a big budget item. So, my partner is working on a house in Redwood City, which is more high end. It’s a 1960s house that had old windows, and one of the first things we decided to do was replace all the windows.

[00:23:23] Ruth Krumbhaar: Because in that house, it’s going to be a flip. We want to make sure that the windows are really high quality and good enough for that area.

[00:23:31] Cathy Curtis: So, it really depends on a lot of things. For example, the Indiana place, I think you said it’s near a university. So, students are your renters professors or students?

[00:23:44] Ruth Krumbhaar: Yeah, professors.

[00:23:45] Cathy Curtis: Okay. So, let’s say they’re old sliding windows, but it would cost several thousand dollars to replace them. You don’t necessarily go ahead and replace those in that case.

[00:23:55] Ruth Krumbhaar: No. And the windows that are there are like the cheap vinyl, but they’re new. So, they keep in a place like Indiana where there are big storms and it does get cold, they have to be really good functioning windows, but they don’t have to be fancy or expensive.

[00:24:11] Ruth Krumbhaar: And the ones there were just fine. They worked just fine.

[00:24:14] Cathy Curtis: How do you, because I think it would be easy, especially as a new real estate investor, to rent, to buy a place to rent and then think you’ve got to make it look pristine. Yeah, perfect. Yeah. I could see where you could put a lot of money in that will really hurt it as an investment.

[00:24:32] Cathy Curtis: Do you agree? Have you ever experienced that?

[00:24:34] Ruth Krumbhaar: Yes. Yes. And it also depends on how long you want to hold onto it. So, another friend who just recently did two rental properties and he’s… he just couldn’t help himself. He overinvested. They’re beautiful, they’re so nice. They’re much nicer than any other house in the neighborhood by far.

[00:24:54] Ruth Krumbhaar: But his thinking, his rationale is, “I’m going to have these for a long time.” So for him, it made sense. I, for me, I’m a little more cautious about spending money. And that’s why I say the farmhouse, the cool farmhouse style light fixtures that are $30, are just fine. Cute. And people like them.

[00:25:17] Ruth Krumbhaar: There’s no need to spend more money there.

[00:25:19] Cathy Curtis: Okay. In the case of your friend, do you think he is able to get any more rent because the decor or the surfaces or the windows are nicer? Than in another apartment in the same building, let’s say, that doesn’t have those upgrades?

[00:25:38] Ruth Krumbhaar: I think sometimes that is true. What I think he accomplished is he rented it very quickly. So, it was appealing. Somebody had to have it. And so, then he could just start getting his income going sooner.

[00:25:56] Cathy Curtis: And maybe you keep tenants longer. Yeah, who knows? I know that’s all hypothetical, but it seems like that would make sense.

[00:26:06] Ruth Krumbhaar: And I have to respect that he’s got his formula and I’ve got mine. Mine is more cautionary.

[00:26:12] Cathy Curtis: Plus, don’t you have to crunch the numbers? Like when you go to buy a place, you look at it and you go, “How much money can I afford to put in this place to still get the ROI I want or reach whatever financial goal I want?”

[00:26:28] Ruth Krumbhaar: And I wanted 10%. So I only invested up to that number. I went a little bit over; I went like maybe $5,000 over, but I knew that’s where I had to, I just had to stop things like on that Indiana property. I wanted to make a certain amount of money, and I wanted to spend a certain amount of money, so there are a few things I didn’t do to the house.

[00:26:54] Cathy Curtis: Like for example, what didn’t you do?

[00:26:55] Ruth Krumbhaar: There are some electrical lines that hang a little lower than I would like in the backyard. So, I was going to have an electrician put them up on a pole on the roof to raise them up. Yeah, I didn’t do it. I would have liked to have had a garden crew come in and really do a good job on getting the yard and the garden squared away.

[00:27:18] Ruth Krumbhaar: Didn’t do that either.

[00:27:18] Cathy Curtis: That makes sense. So, sometimes it’s better not to go see the property and just, if it’s a rental and your goal is to create passive income, the numbers have to be right. Like you said, you haven’t been to see the property in Indiana, is that correct?

[00:27:41] Ruth Krumbhaar: That’s correct. I have a video and photos, and a great contractor. And I’m more concerned there with just having a fridge that works, a washer and dryer that work. It just needs to function.

[00:27:51] Tips and tricks for decorating an Airbnb for functionality and style.

[00:27:51] Cathy Curtis: Yes. That really does make sense. Okay, so I’d love to talk about Airbnbs a little bit because they’re so popular. I just went to Europe and we rented three Airbnbs. I’m fascinated with how people decorate them or pay attention to detail, things like that, and not everybody does. Or I have a suspicion that either they don’t pay attention, or they’ve never… I think people should stay in their Airbnb and experience what it’s like.

[00:28:25] Ruth Krumbhaar: Absolutely.

[00:28:27] Cathy Curtis: To know what people really want when they rent an Airbnb because there’s… you don’t have to be perfect, but there are certain things that are going to make people pretty darn happy. Just as an example, we stayed in an Airbnb where the shower had no place to put soap. It’s like, where do you put it?

[00:28:49] Cathy Curtis: Besides, don’t get me started on French showers, but you turn it on and… Anyway, that’s a French thing, but there was no shelf in the shower to put shampoo or soap or anything. Who designed this? Or no towel racks or not enough hooks. But there are so many things about an Airbnb that could make an experience better.

[00:29:16] Ruth Krumbhaar: Yeah, and really there are two things. It’s like form and function, and you’ve got to have both of them. It’s got to be functional in order for people to be comfortable. They’re coming in from a trip, they’re traveling, they want to just land and have everything work and be easy and approachable. They want a little place in the shower to put their shampoo.

[00:29:37] Cathy Curtis: Yeah, I actually have an Airbnb, a Tahoe cabin that is listed on Airbnb and other platforms. One thing that we did is we totally tricked out the kitchen as far as kitchen utensils and gadgets go. It’s like better than a lot of people’s own kitchen. Every comment we get is, “Oh my gosh, the kitchen is so well equipped.” People love that. And now, it is in Tahoe and people barbecue, which is appropriate for that area because people are going to be cooking. It has to be appropriate for where you are, but I’m surprised how many comments we get about that.

[00:30:20] Ruth Krumbhaar: That’s great. That goes back to knowing your audience. People are going to be doing some cooking, so it’s so important to think about that. A little teeny studio apartment in a great old building in Paris. You’re not going to necessarily be wanting to cook all the time. You’re going to be wanting to go out.

[00:30:40] What you really want is a good coffee maker. And if they provide capsules, bonus points. You don’t have to go out to the grocery store your first day. And speak another language and try and find the coffee capsules.

[00:30:55] Ruth Krumbhaar: Yes. Yes. Agreed. That’s so funny.

[00:30:56] Cathy Curtis: Yeah. Have you Airbnb’d any of your places?

[00:31:00] Ruth Krumbhaar: I have. I have. An Airbnb gives us a chance to be a little more whimsical because, yes, the pictures do have to sell the experience, and it is an experience staying in someone’s Airbnb. Maybe the experience is a classic Tahoe home, but maybe the experience is a groovy San Francisco pad with a little neon on the wall where you can take a selfie. It’s a chance and an opportunity to be a little whimsical in whatever way is calling you. And I definitely love to encourage people to be a little fanciful in those.

[00:31:43] Cathy Curtis: I agree with you. It’s more fun for the person renting.

[00:31:48] Ruth Krumbhaar: Yeah, and the pictures will sell it too, more easily. The other thing that I’ve noticed about Airbnb is they get a lot of traffic.

[00:31:57] Cathy Curtis: Yeah. I don’t know if you agree with me, but I think you need to go a little bit higher quality in the decor. Not necessarily the gadgets, but the decor, because it gets used so much—rugs and towels and… Either that or you replace them all the time. I don’t know what the best way to outfit an Airbnb is.

[00:32:18] Ruth Krumbhaar: I think either way is important. You also want it to feel fresh. And I’m definitely environmentally minded, so getting cheaper things and throwing them away isn’t what I would necessarily recommend. But sometimes, maybe with a rug or with little throw pillows or whatever, you do want to be keeping it feeling fresh by doing that. And then have more substantial furniture or something to balance that out so that it does feel fresh and has some pop.

[00:32:55] Cathy Curtis: Yeah, are there any places where you shop that you think are particularly good for that kind of home decor, like pillows or things like that?

[00:33:08] Ruth Krumbhaar: I actually think Home Goods is still pretty good. You don’t want to make sure it doesn’t look like a Home Goods setup, but if you’re careful, they always have fresh-looking, well-priced pillows and little knickknacks and things.

[00:33:27] Ruth Krumbhaar: But again, I wouldn’t do all of that. I would mix that in with some flea market finds or some more character items so that it doesn’t look like you just went to Home Goods.

[00:33:38] Cathy Curtis: Yeah, I love the flea market idea. Or thrift stores, where people give away nice things that you can’t believe they’re giving away, but they work perfectly.

[00:33:49] Cathy Curtis: We do that a lot in our Tahoe place.

[00:33:51] Ruth Krumbhaar: Yeah, in my main house, I have a very low window between two twin beds, and I’ve been looking and looking for the right bedside table to put between the beds. And finally, my friend, who’s a designer, said, “Get two galvanized buckets, turn them upside down and put a plank on top, and you’re done.”

[00:34:12] Ruth Krumbhaar: And I was like, “Yes, of course. That’s perfect. It’ll look cute. It’s a guest room with two single beds. So it’s probably where kids are going to stay, and I think it’ll be a little fun.”

[00:34:24] Cathy Curtis: That’s a great idea. Now, this is the Maine property. Yes, it’s on an island, and you use it sometimes for yourself, and then you rent it word of mouth. Okay. And I bet that was fun to decorate.

[00:34:41] Ruth Krumbhaar: Yeah. So much fun. So much fun. And it’s very eclectic. A lot of old pieces mixed in with new, a lot of paint, painting old furniture and old chairs. We just had a lot of fun with that one and it’s come together.

[00:34:56] Cathy Curtis: What do you think about theme decorating? Is that too cheesy? Like beach house decor or?

[00:35:03] Ruth Krumbhaar: Yeah. In some places, it can be nice. This house is in Maine. I’ve got a sort of a Maine feeling, but it’s also a little bit of being near the water. So it’s got paintings of sailboats and I actually have sailboats on my plates. So there’s a little of that going on. My partner makes sure I don’t go too far in that direction.

[00:35:23] Cathy Curtis: When we bought the Tahoe place, it was a rental, it was a second home for the person that we bought it from. Oh man, she had it outfitted with so many bear motif things. It was… And my husband likes bear motif a lot more than me, but so just systematically over the last couple of years, I removed one bear at a time and replaced it with something else.

[00:35:53] Cathy Curtis: But we still have bears in there. It is Tahoe. It was, it can get overdone.

[00:36:00] Ruth Krumbhaar: It can. It can. And that’s where having some fun is good. But it’s like jewelry. I remember a friend who’s very chic. She said, “Oh, when you go get dressed to go out, put on all the jewelry that you want and then take off one thing.”

[00:36:14] Cathy Curtis: Yeah. I’ve heard that. That’s great advice.

[00:36:18] Ruth Krumbhaar: It’s the same for homes. And also, for your wardrobe, you want a bunch of really tailored, beautiful pieces, and then some sort of cheaper, fun things to toss on with them. And that’s how you can approach your home as well.

[00:36:32] Cathy Curtis: Exactly, that is a good money-saving technique because you invest in quality pieces. And then, if you want to be on trend, which is fun to do, you don’t have to spend as much money. Because those things don’t last as long, like the toss pillow that you decide to go all bright pink. In a year or two, you get sick of that, or whatever.

[00:36:52] Cathy Curtis: Keeping in mind the environmental aspect, I agree with you, I’m not into throwing things away or into fast fashion. But that is a good way to think about decor so that you can make it economical.

[00:37:06] Ruth Krumbhaar: And Facebook Marketplace, Craigslist, you can go to those websites if you’re open to using furniture or furnishings that people have used before. It’s a great way to get some good deals and things that you wouldn’t naturally find in a store.

[00:37:23] Cathy Curtis: Interesting. I’ve never once used Facebook marketplace. Is it good?

[00:37:26] Ruth Krumbhaar: Oh, it’s so good.

[00:37:28] Cathy Curtis: Okay, that’s a good tip. And are you using a local Facebook marketplace or is that… Because I know on Craigslist, you could look in your local area to see if you could pick up something.

[00:37:41] Ruth Krumbhaar: You can do it locally. I think you can do it like Craigslist within a certain amount of miles. Actually, no, Craigslist is more region-specific. Facebook is more about how many miles away.

[00:37:52] Cathy Curtis: Okay. That’s good. So instead of going out on Sunday to garage sales, you could do it from your computer.

[00:38:00] Ruth Krumbhaar: Yeah. I’ve gotten some beautiful things on Facebook.

[00:38:03] Cathy Curtis: Ah, okay. Okay.

[00:38:05] Ruth Krumbhaar: Beautiful old lamps and rugs and various things. Plants.

[00:38:12] Why flipping a property requires a slightly different design approach than decorating a rental property.

[00:38:12] Cathy Curtis: Yeah, because people move, and they don’t want to move their plants. Okay, great. What about, and I don’t know if you’ve done a flip. I think you have, or your partner has.

[00:38:22] Ruth Krumbhaar: My partner does a lot and I help him with the design.

[00:38:26] Cathy Curtis: Okay. So that’s a whole different ballgame.

[00:38:28] Ruth Krumbhaar: Completely different. And it really depends who your audience is. Again, know your audience.

[00:38:35] Cathy Curtis: Okay, how do you approach that?

[00:38:37] Ruth Krumbhaar: We’re doing one right now in Redwood City, which is a very nice suburb here in the Bay Area on the peninsula.

[00:38:45] Ruth Krumbhaar: And the property is gorgeous. It’s an old, actually, the property is beautiful with old trees. The house is basically a square box that no one has done anything with for many years. So there’s an opportunity there. That’s a beautiful swimming pool. We have simplified the landscape by having the trees pruned, some of them taken down because it was a little too oppressive.

[00:39:13] Ruth Krumbhaar: To lighten it up and make it a little more airy. We’re just keeping…

[00:39:17] Cathy Curtis: Which is an expense, right? You had to factor that in.

[00:39:20] Ruth Krumbhaar: We did, but we know that we can sell this for much more than we’ve put in. So we know there’s a profit margin, so it’s worth it. And I think the buyers will feel that difference.

[00:39:33] Ruth Krumbhaar: But we left, we actually ground up a bunch of the trees and we created mulch from the ground-up trees and we spread that all in this whole area under the trees. We didn’t have to buy mulch. We didn’t have to landscape it. It just feels more rugged and rural and, but still nice and polished.

[00:39:55] Ruth Krumbhaar: All of that at the same time. And then it was a very narrow path walking up to the house all alongside the house. You have to turn to get to the front door. So it felt awkward. We think about people wanting a nice wide path that you feel invited in. And we’re going to do a fountain across from the door and do a sort of cutout.

[00:40:19] Cathy Curtis: Okay. So this goes back to your kind of formula: make the entryway really nice and inviting.

[00:40:28] Ruth Krumbhaar: Yes. And in this case, because there are all these trees and the wood chips, I wanted to have water, the sound of water too. So we’ll have a little fountain. We were just talking about that before I came on this call.

[00:40:42] Ruth Krumbhaar: Yeah, we have different ideas about what the fountain should look like, but something modern will be right across from the door. So also when you’re exiting, you see this beautiful fountain, and then the landscape just fades and becomes nature. And so that felt like a really good way to add a feeling of luxury and a feeling of welcome and also something for them to remember when they leave.

[00:41:10] Cathy Curtis: Yeah. Okay. So the fountain, where will you go to source that?

[00:41:15] Ruth Krumbhaar: I just went on Amazon and there are enough decent fountains. This is not a high-end fountain. This is just to sell the house. We’re looking at about 300 for a modern, good-enough fountain. And then creating a little nook for it. And then what we did was we really focused on windows and doors and floors.

[00:41:39] Ruth Krumbhaar: So all the main surfaces of this house.

[00:41:44] Cathy Curtis: Which is totally different when you’re looking at a rental for Airbnb, right? Because you’re looking to make a profit on this place and sell it quickly. And that, people look at those kinds of things.

[00:41:59] Ruth Krumbhaar: Yeah. Because the house is so simple and lacks architectural interest, we felt that we needed to add a little more substance to it. The doors are really cool, modern ones with some cutout windows that will also let light in. We made the same design choice on the garage doors as well.

[00:42:17] Ruth Krumbhaar: So there are some sort of fun design elements that we can bring in through the doors.

[00:42:23] Cathy Curtis: Okay. Where did you find the doors?

[00:42:26] Ruth Krumbhaar: I will let you know, because I did not order them. However, my partner has a great local source for doors, and he has lots of opinions on windows too. So, we really focused on those pieces, the entry, and the landscaping.

[00:42:46] Ruth Krumbhaar: We ensured that we chose good, really good windows and fun, yet substantial doors. A door handle that feels really good and solid in your hand is a wonderful detail that you don’t skimp on.

[00:42:59] Cathy Curtis: Yeah, that makes sense. After all, it’s the entry to the home. It’s the first impression sort of thing, like a handshake.

[00:43:08] Ruth Krumbhaar: Yes, exactly. And then we’re going to paint everything Cotton Balls. Of course, we’re selling this house. We want it to be simple, but warm and inviting.

[00:43:21] Cathy Curtis: Did you use that company, Grohe, for the fixtures?

[00:43:24] Ruth Krumbhaar: We haven’t gotten there yet, but we probably will.

[00:43:26] Cathy Curtis: Okay. Did you spell that as G R O H E?

[00:43:33] Ruth Krumbhaar: Yes, that’s right.

[00:43:49] Ruth Krumbhaar: We’ve noticed some trends, for example, ridged wood surfaces. So, we got two vanities for the two bathrooms with that kind of surface. They weren’t that expensive, but they feel designer. We’re trying to create a theme there. In one part of the house, due to the open floor plan, we’re actually going to mimic that with some floor to ceiling thin pieces of wood.

[00:44:28] Cathy Curtis: Interesting. May I ask where did you source those vanities from?

[00:44:34] Ruth Krumbhaar: We had to hunt and peck for them, and I will again send you where we found them. I think we may have even found them on Houzz or Amazon.

[00:44:45] Cathy Curtis: Okay. Can you buy things on Houzz?

[00:44:49] Ruth Krumbhaar: Yes, you can.

[00:44:53] Cathy Curtis: And a lot of people go to Houzz for ideas, right? It’s like Pinterest but for home decor. Do you rely on it a lot?

[00:45:02] Ruth Krumbhaar: I use Houzz, and I use Pinterest. I also read magazines – everything from watching HGTV to my favorite magazine, which is World of Interiors, a more European and ethereal style.

[00:45:19] Cathy Curtis: I didn’t know about that. Okay, World of Interiors. That’s great.

[00:45:43] Ruth Krumbhaar: In terms of color and choices around tile and counters in this house, we’re doing everything in tans, whites, and a little touch of gray, accented with black. So, all the door handles will be black. It’s almost like the little black touches are like the eyeliner and everything else is more natural.

[00:45:54] Cathy Curtis: Are you using elevated materials for the flooring and things like that?

[00:45:58] Ruth Krumbhaar: Yes, for the floors. When looking at countertops, because we don’t have to live with it, we can just look and see what fits our design, budget, and what’s in stock.

[00:46:18] Ruth Krumbhaar: You get what you get and you don’t get upset is our motto when we’re doing projects like this.

[00:46:27] Cathy Curtis: Where do you go to find countertops and things like that?

[00:46:31] Ruth Krumbhaar: Part of our sourcing happens in South San Francisco. There are also a bunch of places in the Bay Shore area of San Francisco. We basically give ourselves two days, cruise through all of them, and make a decision within that timeframe.

[00:46:49] Cathy Curtis: See, that stresses me out. Some people are better at that than others. Have you heard of Granite Expo? It’s in the East Bay. I have a friend that tells everyone in the East Bay who is doing remodel jobs and needs tiles and things to go to Art and Tile on Broadway. It’s a bit high-end but they do great stuff. However, my friend suggests going to Granite Expo for cheaper prices.

[00:47:22] Ruth Krumbhaar: There is a place in the East Bay that we’ve gone to, I’ll think of all our sources. It’s great to go to the expensive places to get ideas.

[00:47:36] Ruth Krumbhaar: Yeah, really great customer service. If you have the budget and you want to make it easy on yourself, by all means, that’s a good choice. They often have good contractors to recommend. It’s a bit more of a white glove experience. If you want to be a bit scrappier or if you have a great contractor that you know, these other places are where you can find beautiful materials.

[00:48:03] Ruth Krumbhaar: It’s just that you have to look a little harder.

[00:48:05] Cathy Curtis: And do you think you end up spending less when you do it? So, you really can save money by doing some of it yourself and foregoing the total white glove thing?

[00:48:20] Ruth Krumbhaar: For example, in Maine, we ended up getting beautiful marble countertops. I won’t bore you with the story, but we had three places that we were going to go to. We knew that we had to get them within a certain time frame, and our backup was to do wood, like butcher block counters, which are expensive, but still attractive.

[00:48:43] Ruth Krumbhaar: It’s a suitable choice for a summer house or for one part of your kitchen. It saves money.

[00:48:49] Cathy Curtis: That’s interesting. That’s a great idea. A backup, yeah. Yeah, excellent.

[00:48:53] Ruth Krumbhaar: And this place in Redwood City, the owner wanted to fill in the pool because he didn’t want to deal with it. I said he can’t. So, we’re doing some very inexpensive concrete around it. We’re actually creating some patterns within the concrete so that we can have moss growing in between.

[00:49:09] Ruth Krumbhaar: It’ll be a high-end feeling but not super expensive.

[00:49:23] Cathy Curtis: And concrete can be very attractive. It doesn’t have to be the ugly old asphalt or whatever.

[00:49:31] Ruth Krumbhaar: There are techniques where you can put salt on the surface to make it pucker a little bit, and there are different finishes and stains you can use on concrete.

[00:49:42] Cathy Curtis: Interesting. So, what’s the timeline for putting it on the market?

[00:49:49] Ruth Krumbhaar: Hopefully, September.

[00:49:50] Cathy Curtis: Okay. Is that because all this is going to take that much time due to the contractor’s schedule?

[00:49:58] Ruth Krumbhaar: It is, and it’s also because that’s a good time to start selling. That’s when people are ready to focus back on that kind of thing.

[00:50:08] Ruth Krumbhaar: During summer, people are more distracted.

[00:50:11] Cathy Curtis: So, you’re going to put it on sale at peak time to get the best price.

[00:50:17] Ruth Krumbhaar: Hopefully. It’s not a great market right now.

[00:50:20] Ruth’s advice for handling home renovation projects, such as updating a bathroom or kitchen, and why a good contractor can make a world of difference.

[00:50:20] Cathy Curtis: Yeah. I heard prices are dropping a little. Sounds like a fun project. Let’s switch over to residences. I am going to start this because I have a project and I want to hear what you say about how to handle this project.

[00:50:35] Cathy Curtis: I think a lot of people are in the same boat. My master bath has not been redone for years. It really needs to be gutted. It’s a fairly large room. So, I had a contractor come over and look at it and measure. He gave a quote for the gutting. Now, I’ve been advised to find everything, pre-order it all, and have it ready for when they come. Do you agree with that?

[00:51:08] Ruth Krumbhaar: If that’s what your contractor wants, then that’s the way to do it. Some contractors will say, “Give me the list of what you want and I’ll order it,” because they don’t want it sitting around at the job site.

[00:51:22] Ruth Krumbhaar: The con, if you have a good contractor whom you really trust and like, is that they have their process, so working with them in their process is a good thing to do. The other reason why they’re probably saying that is because you’re a homeowner; you’re gonna have an attachment to certain things, like a particular tile or whatever.

[00:51:44] Ruth Krumbhaar: And if he’s halfway through and you’re like, “Oh, but the tile that I wanted isn’t available anymore. I don’t know what to do,” he doesn’t want to have to stop halfway through and wait for you to figure that out.

[00:51:56] Cathy Curtis: Yeah, and in the meantime, your bathroom’s all torn up.

[00:51:59] Ruth Krumbhaar: Yeah, yeah. So he probably has some experience with this and feels like it’s better to have it all there, sitting there and not have to worry about things not coming in on time.

[00:52:09] Cathy Curtis: Okay, that makes sense. And then me, who I love home design and I feel like I’m a creative person. I don’t know what it is, but the thought of redesigning a big bathroom just… and I procrastinate so much. I just cannot get started. So, what is your advice to somebody that is faced with this? That really wants their bathroom to look great. What are the steps you would suggest to come up with ideas and come up with a design?

[00:52:38] Ruth Krumbhaar: I think it all depends on your contractor, actually. Is your contractor someone that you trust their judgment and their sort of direction? Because some contractors, because they’ve done this so many times, they really understand how the bathroom functions.

[00:52:58] Ruth Krumbhaar: And they have actually really good ideas about how you might want to set it up. They’re not going to pick your tile for you and things like that. But they’ll have an idea of if you do the countertops here, you’re going to save a lot of money because you’ve already got your plumbing here and if you do, if you want to walk in, shower, you could do it here and you could actually fit a freestanding bath over here.

[00:53:19] Ruth Krumbhaar: They’ll possibly have some really good ideas. So I think that’s a great place to start. Start that conversation with your contractor, bring them in for a meeting in the space.

[00:53:32] Cathy Curtis: Yeah, and say, “I want a beautiful design that doesn’t cost ridiculous amounts. So I want to use what I can with the space,” like you’re saying, the plumbing.

[00:53:44] Cathy Curtis: Yeah, it makes sense.

[00:53:46] Ruth Krumbhaar: Or where window placements are, doors and things like that. The other thing is that if you have to get a permit, you may need to submit drawings, and so you would need somebody who can do that for you. If that’s the direction you’re going. Some people submit permits, some people don’t.

[00:54:07] Ruth Krumbhaar: It’s generally a good idea to do it.

[00:54:09] Cathy Curtis: Yeah. I know I have that. I debate that with people all the time.

[00:54:12] Ruth Krumbhaar: Yeah. And then the other, in terms of design and function, is what do you want? What is important to use? For some people, it’s important to have the toilet have their own little room. For other people, it’s they must have that double vanity with lots of space.

[00:54:30] Ruth Krumbhaar: For other people, it’s a walk-in shower and a freestanding tub. Thinking about how you want to use that space.

[00:54:36] Cathy Curtis: Okay. What’s important to you. Okay, that makes sense. And then the daunting thing to me is picking out the tiles and things and the countertops, because you’re not, you can’t envision it until it’s done.

[00:54:56] Cathy Curtis: So how do you go about doing that?

[00:54:59] Ruth Krumbhaar: I always, when I’m confused and unsure, I just go classic. You can never do too badly when you choose classic things. Like a sort of a marble, a grey and white marble. It may look, ho-hum, regular, uninspired, but hopefully you’re doing it in such a way that you’re adding in some fun details where you can.

[00:55:27] Ruth Krumbhaar: But classic always looks good. And so I would go on.

[00:55:31] Cathy Curtis: There’s some colors that I know this is true. In the 50s, it was all olive green and pink. I know there’s always trends. And I guess that’s not so important if you’re not planning to sell your house, but are there trends right now in bathroom colors?

[00:55:50] Ruth Krumbhaar: The ones that I see and respond to most are neutrals – just all neutrals. However, I’ve been working with a friend who’s obsessed with Moroccan tiles, which are trendy now. She wants to have the green square Moroccan tiles in her shower. I said, “If you do that, you have to have an arch doorway. Go for it!”

[00:56:18] Ruth Krumbhaar: That approach will get you a Moroccan light fixture. It can be fairly flush to the ceiling. Go for it. Because of that conversation, I’m seeing a lot of green. There are a lot of earth tones, interesting, almost clay-like, kind of pinky-brown clay-colored tiles, and a lot of beautiful tans.

[00:56:42] Cathy Curtis: What about wood-looking tiles? I’ve started to do a little exploring on Houzz and Pinterest, and I love that kind of earthy, outdoorsy feel that you get with wood. But of course, you don’t want wood in the bathroom.

[00:56:57] Ruth Krumbhaar: I think going that way is great. If you want to go earthy, I would take it a step further. Maybe do the pebble floor in the shower, just to bring natural elements or that kind of feel into the whole bathroom.

[00:57:13] Cathy Curtis: Yeah, okay. So maybe start with a theme. I like the natural elements look. It’s like you can make this an outdoor bathroom or something.

[00:57:24] Ruth Krumbhaar: Yes, then go for it. Go from there. And that’s where having a primary residence that you’re going to stay in for a while is important. You want to follow trends and be smart to a certain extent, but it’s also a chance to do something very personal for you. You’re going to create something that you’re going to enjoy for years to come.

[00:57:49] Cathy Curtis: Yeah, okay. From a budget perspective, do you think it’s a good idea to hire a bathroom consultant?

[00:58:07] Ruth Krumbhaar: Yes, I do. It’s like having a color consultant. A bathroom is a big deal and it’s a big expense, so you want to feel confident going in and like you have a plan. You don’t want a lot of changes happening as you’re doing it because your contractor will become more and more expensive.

[00:58:32] Cathy Curtis: So you don’t need an architect when it comes to redesigning?

[00:58:37] Ruth Krumbhaar: It really just depends, but I think getting a bathroom consultant is a good idea. I would speak with your contractor. If you have the budget, get a bathroom consultant who might be able to draw up the plan and make sure that you’re not overspending on your bathrooms. Generally, the projects that I’ve been privy to, and my mother is a landscape designer, she tells me every single project goes one third over budget. My partner is a contractor and it’s the same thing – every single project is one third over budget. So if you can keep in mind, only budget for two thirds of what you can afford. Leave a third extra of your budget for all the things that you’re going to discover along the way.

[00:59:34] Cathy Curtis: Yes, I know. I see it all the time. The clients did a lot of remodeling during COVID because people were at home. Home became a huge priority. I don’t even know if a third covered the overruns. It just got very expensive for people. They’re all very happy with it though. People love remodeling their homes and getting their spaces to reflect who they are. Like you said, if it’s going to be your residence for a long time, and most of my clients are planning to be in their residences, why not? The cost amortizes over time. If you do it well, maybe you won’t have to do it again for another 10, 20 years.

[01:00:17] Ruth Krumbhaar: Yes, exactly. And that’s where getting good fixtures, especially faucets and shower fixtures, comes in. You don’t have to go all the way to the super expensive ones, but you should get a good quality one.

[01:00:32] Cathy Curtis: Right, and knowing what the good quality things are. I guess that’s where you’re going to share some of your resources. You just have to do your research and talk to people. I’m sure bathroom consultants know where to go for good quality.

[01:00:48] Ruth Krumbhaar: Yes, and contractors will know as well. Some contractors are really up on that too.

[01:00:54] Cathy Curtis: Yes, it sounds like a key person is your contractor.

[01:00:59] Ruth Krumbhaar: Yes. So, I would almost speak with them before the bathroom consultant, because they’ll have that kind of understanding of the space, and you can brainstorm. For example, if I wanted to move the vanity over here, how much more would that cost?

[01:01:14] Ruth Krumbhaar: Get a sense for the kinds of choices that you feel prepared to make and pay for.

[01:01:19] Cathy Curtis: Okay. And then just generally speaking about res, so you’ve done a lot of decorating. Do you do decorating with friends too, besides your own? Yeah.

[01:01:27] Ruth Krumbhaar: Yeah. Yeah.

[01:01:32] Tips for updating a space where you’ve grown tired of the décor, and why hiring a style consultant can be a worthwhile investment.

[01:01:32] Cathy Curtis: So any, you’ve talked about your philosophy, general philosophy, but any other tips that you can give when you’re thinking about, let’s say, you’re completely tired of your living room decor? Like my living room decor has been the same, gosh, for 15 years.

[01:01:50] Cathy Curtis: We did it we got some really high-quality core pieces of furniture, but like I have a sisal rug. I’d love to get a real rug. How would you, what do you think about that? Updating like a room, refreshing let’s say.

[01:02:03] Ruth Krumbhaar: Oh, I think it’s great to do. I think it’s great to do. And maybe that sisal rug can find a home somewhere else in your house too.

[01:02:12] Ruth Krumbhaar: Yeah. It doesn’t necessarily have to go on the curb. One of the things that I’ve had a lot of fun with is working with friends doing updating, say, a living room, and they’ll say, maybe they’ll come to my house and be like, “Oh, I love your living room. I really want mine to look like yours.” And then we’ll go to their house.

[01:02:32] Ruth Krumbhaar: And I’ll realize their style is totally different than mine. It’s never going to work. And so it’s fun to help them really home in on your style. What is your style? You want a clubby, cozy, rich feeling. You don’t want an airy, ethereal, bohemian. Or you love that English countryside look. Go for it.

[01:02:56] Ruth Krumbhaar: And it’s so fun for me to explore other people’s tastes. My mother, for example, we’re finding fabric, she’s got a, in her kitchen she’s got this big banquette, like seating area, and a big table, and these big armchairs, and it’s all pink and green. Which, I can’t stand pink and green. Personally, it has been so much fun getting into her head and into her style.

[01:03:22] Ruth Krumbhaar: I have found the best pink and green fabrics for her. It’s been so much fun. I really think it’s important for us to connect to ourselves and connect to what we love and what makes us happy. And if you have a friend who’s good at design to get the design juices going or hire somebody to come in for a consultation.

[01:03:46] Cathy Curtis: Yeah, I know, I have friends that use designers, would never think about, I have a friend doing a refresh right now, has used a designer from the start, but she herself, my friend has really strong ideas of what she wants, and she finds it looking through Houzz and magazines and all that.

[01:04:06] Cathy Curtis: I think she uses a designer mainly for the sourcing. Yeah, and that’s finding these pieces that she really wants because she doesn’t want to have to do that leg work.

[01:04:16] Ruth Krumbhaar: Yeah, and designers are really good for that because they get a discount and so they can either make their money in time or in reselling you the pieces at regular prices and they or both.

[01:04:29] Cathy Curtis: Yeah, which high-end designers do both.

[01:04:32] Cathy Curtis: I know that hourly and getting a cut on whatever pieces are sold.

[01:04:38] Ruth Krumbhaar: Yeah. And that’s where also working with designers, a lot of designers are wonderful, but some of them are going to try and push you to get more expensive things so they can make more money. So really making sure that you stick to your budget and stick to your guns around.

[01:04:53] Cathy Curtis: I had that experience when we first decorated this house. We hired a designer who showed me a dining table that was like a third of our budget for the whole top floor of our house, and I’m like “Were you not listening to anything I said about our budget?” We really had a budget. Yeah. Do you know what she said?

[01:05:14] Cathy Curtis: She said, “Oh, I’m sorry. Most of my clients don’t have a budget.”

[01:05:18] Ruth Krumbhaar: Ooh, that doesn’t sound like the right…

[01:05:22] Cathy Curtis: My husband said, “Let’s not use her.” And I was so deep into the project already. I thought I just couldn’t, but he was right. He was right. That kind of comment clearly indicated she wasn’t the right designer for us.

[01:05:37] Ruth Krumbhaar: Yeah, especially for your profession. You’re helping people manage money.

[01:05:41] Cathy Curtis: Yes. So, you have to find the right person. And then, I decorated our master bedroom at another time, found the perfect person who went out of her way to stay within the budget and found some wonderful things for even lower prices.

[01:06:02] Cathy Curtis: And I… I would have never thought that because she was so focused on that. So, there are all different kinds.

[01:06:10] Ruth Krumbhaar: And it’s just like your contractor. Making sure you have a good contractor. Making sure that if you hire a decorator or designer of any kind, you see eye to eye and they’re creative.

[01:06:22] Ruth Krumbhaar: Some designers are very resourceful. Like the one you mentioned, they go on websites like Cherish, which is a wonderful website. Another tip. There are so many cool websites that have wonderful finds that are unique or antique. And they know how to find these unique things. That make your home really feel…

[01:06:48] Ruth Krumbhaar: Like an extension, an expression…

[01:06:50] Cathy Curtis: Of yourself. Exactly. And what I loved about her, she was more excited than me when she found a great deal. It was fun working with her instead of anxiety provoking like it was with the original people that we worked with. It was extremely anxiety provoking. Oh my gosh.

[01:07:10] Cathy Curtis: Beautiful things. Who doesn’t want a beautiful oak $15,000… But yeah, so I learned my lesson in that one. So speaking of, we’re going to go back to the personal finance aspect of this. There is investing in pieces, and then there’s knowing that you’re buying something that you love, but probably won’t last long.

[01:07:35] What Ruth believes are the most important items to invest in when decorating your home.

[01:07:35] Cathy Curtis: What do you think are the most important things to invest in when you’re decorating your home?

[01:07:41] Ruth Krumbhaar: I was just talking with a designer friend and she said it’s the rugs and the window treatments for her. And for me, I was like, really? I think it’s the sofa.

[01:07:53] Cathy Curtis: I think the sofa is really important too.

[01:07:56] Ruth Krumbhaar: I think… I happen to, I’m looking in my living room right now, I have an expensive sofa that I probably paid way too much for, but I love it, and it is the showpiece of my living room. I’ve got a very inexpensive rug that’s maybe $250, really inexpensive. But it looks good. So sometimes we can find these cheap things that look okay.

[01:08:23] Cathy Curtis: I know. It’s really true. Is it a big rug?

[01:08:28] Ruth Krumbhaar: It’s huge. And I can’t even believe how inexpensive it was. I bought it online on something like rugs.com for another room. And when it arrived, it was so nice. It’s not, if you touch it, it’s not going to feel like a really high-end rug, but it, and then my expensive sofa works very well with it.

[01:08:50] Cathy Curtis: See, it elevates the whole room. That, I like that.

[01:08:53] Ruth Krumbhaar: So, I think it’s… People have their philosophies about what to invest in. I do think window treatments, good window treatments are… You can really feel the difference between custom curtains and off-the-shelf curtains.

[01:09:09] Cathy Curtis: And other… Not to say that you couldn’t find a good off-the-shelf curtain. Your rug is a great example. It’s just not as easy.

[01:09:18] Ruth Krumbhaar: Exactly. And there’s some… I think Pottery Barn has some like lined linen curtains. This is my go-to for people when they can’t figure out what they want, but they want it to look soft or summery or… It’s just a good standard. This is a good placeholder and you might have it for the next 10 years and it might just be fine.

[01:09:39] Cathy Curtis: Yeah. That’s not expensive. You know what my favorite, one of my favorite pieces in my home that came from working with the original designers is these reed shades in our living room. Oh my gosh, I love… I still love them. I’ve had them for 15 years and I look at them and they make me happy. And they were expensive.

[01:09:58] Cathy Curtis: Yeah. And I just… That was such a good investment.

[01:10:02] Ruth Krumbhaar: Yeah. I have some curtains that I bought years ago for an old house that I lived in a long time ago. And they’ve traveled with me. I make sure that they work in every house that I’m in because the fabric is so beautiful and the… quality of how they were put together is so beautiful. They elevate every room they’re in.

[01:10:21] Cathy Curtis: In fact, I’m going to put the name of the designer of my shades in the show notes because they still… You would probably know the name. I forget it, but… So beautiful. But you know what? Then again, I know that there’s a lot of quality copycats now that you can get a lot cheaper. It just depends on your budget and how much time you have to search out things.

[01:10:45] Ruth Krumbhaar: Yeah, but I do think if you want your house to feel elevated, every room should have something that feels really substantial. Whether it’s a headboard, or in my guest room, I have a beautiful headboard and some beautiful fabric on the bed. Then I have a cheap desk that I might have gotten at Ikea. It’s just a guest room, so it doesn’t need to be super elevated. But I wanted the bed to feel really sumptuous and it has beautiful cushions.

[01:11:15] Cathy Curtis: I agree with you. We’re talking about residential right now, but even Airbnb’s need this. One of the Airbnb’s we stayed in on our trip was a really nice space.

[01:11:25] Cathy Curtis: It was big. It had a kitchen, but it was decorated completely in HomeGoods standard. There was no elevating element to it at all. It was adequate, it was comfortable. It was fine. But, I couldn’t help thinking, “God, I wish they had just spent a little bit more money.” And it was even from the things hanging on the wall, everything.

[01:11:53] Cathy Curtis: I thought, just maybe a few hundred more dollars. I couldn’t help thinking that, to your point, even if they had just picked one nicer element, it would have elevated the whole space.

[01:12:08] Ruth Krumbhaar: Yeah, it makes a difference. People feel it, even if they don’t know what they’re feeling. Like in that Airbnb that you were in.

[01:12:17] Cathy Curtis: Exactly. I think about that with our Tahoe space. I’ll give a good example. We were in Tahoe recently and I went to a shop that had original art. The art wasn’t that expensive. I found a piece and I thought, “Oh my God, that would look so good in one of our bedrooms.”

[01:12:38] Cathy Curtis: And I thought, “Yep, I’m getting it.” We didn’t have the right piece. But, when I put that on the wall, just the fact that it’s an original art piece, even though it’s not that expensive, elevated the whole room.

[01:12:52] Ruth Krumbhaar: That’s an important aspect of decorating. Going back to my little house in Maine, I have the upside-down buckets with a piece of board on it, but on the wall, I have a series of antique floral framed pictures in old frames that are beautiful and have that elevated quality.

[01:13:24] Cathy Curtis: That works because you’ve got both elements. Another thing we noticed in a lot of Airbnb’s, which seems to work, is using baskets for decor like hanging a series of them on a wall. It works if there are other elements that aren’t baskets.

[01:13:51] Ruth Krumbhaar: In fact, I have here something I’ve traveled with. It’s a big rattan kind of basket-like thing.

[01:14:00] Cathy Curtis: Could you bring it a little bit closer? There you go.

[01:14:02] Cathy Curtis: Wait, a little bit back. We could see it at some point, but I see what you did.

[01:14:09] Ruth Krumbhaar: Anyway, it’s something that can go on a coffee table, or it can go on a wall. It was like, I don’t know, $40. Because it’s earthy, it doesn’t feel cheap. It’s like the baskets.

[01:14:24] Cathy Curtis: Exactly. And because it’s earthy, I don’t think people should move away from basketry. It really is a nice design element. Maybe you don’t like that look in your home, but if you have an Airbnb or VRBO, I wouldn’t hesitate to use it as a design element.

[01:14:45] Ruth Krumbhaar: It’s a really inexpensive way to bring a little more design in.

[01:14:50] Cathy Curtis: Juxtapose that with a piece that’s maybe a little bit nicer.

[01:14:54] Ruth Krumbhaar: Yeah, I do have a lot of baskets in my house in Maine, actually.

[01:15:00] Cathy Curtis: Do you? Okay, what’s your resource for that? HomeGoods? I’ve asked you that 20 times already.

[01:15:08] Ruth Krumbhaar: I have to admit, that’s a great place.

[01:15:11] Cathy Curtis: HomeGoods? Yeah, HomeGoods. Okay, that would be a good place for baskets. Remember Cost Plus used to be such a great place.

[01:15:26] Ruth Krumbhaar: I don’t know, I haven’t been there. There was one near here, or are you thinking of Pier 1?

[01:15:32] Cathy Curtis: Oh, Pier 1. I think they’ve shut down too. Those used to be my go-to’s, but you’re giving a lot more ideas for where to look, which I’m excited to see.

[01:15:46] Ruth Krumbhaar: And Etsy is another wonderful place. I just ordered a tablecloth from Etsy, which is beautiful. You can find so many different things of varying quality on Etsy.

[01:15:59] Why practical designs can actually boost your return on investment with an Airbnb property.

[01:15:59] Cathy Curtis: You’ve given some great notes too. I want to make sure we covered some of your main points. Oh, I know, about rental and Airbnb, the practicality. We haven’t really discussed practical designs very much. Designs that are easy to clean, easy to maintain.

[01:16:20] Ruth Krumbhaar: So you don’t want to do something like I did in Maine, unless you’ve sealed it a bunch. Having marble countertops in a rental is probably not a great idea because red wine could spill on it and stain it.

[01:16:35] Cathy Curtis: Oh, okay.

[01:16:37] Ruth Krumbhaar: Want to have surfaces. And oh, I had candles that dripped. You want to have dripless candles. Things like that. You need to consider, imagine messy people being in the space and how the housekeeper is going to clean it easily.

[01:16:58] Ruth Krumbhaar: And how are you going to maintain it easily? So, making choices, whether they’re cheaper things like the board on the galvanized buckets or smooth surfaces that can’t be destroyed, is key. Some of my furniture in Maine, for example, is painted, but it’s also a little bit of that. It can be chipped and a little worn because that’s the sort of feeling of a Maine summer house.

[01:17:24] Ruth Krumbhaar: So, I don’t care. But if it was a different kind of feeling, maybe the painted furniture wouldn’t go so well.

[01:17:31] Cathy Curtis: One of my pet peeves is bathroom surfaces that are dark. I don’t know if it’s slate or what, but it shows all the toothpaste stains. You cannot keep it clean no matter what. It’s a mistake to have in any kind of place that is an occasional rental.

[01:17:51] Cathy Curtis: Yeah, yeah. You really have to think through that kind of thing.

[01:17:54] Ruth Krumbhaar: You really do. And think through what also of yours can you tolerate having other people touch or use.

[01:18:04] Cathy Curtis: Yes. And the cleaning person thing you brought up. So critical to help your cleaning person be able to clean quickly and efficiently, especially if you’ve got a popular place with constant turnover where they’ve got to come in and maybe have someone come in that same evening when someone leaves. Thinking through that, maybe not so many knickknacks or the surfaces you choose for your floors in the kitchen and bathrooms, all those kinds of things are so important.

[01:18:35] Ruth Krumbhaar: It’s so true. That’s so true. Having enough sets of sheets so that if some are in the dryer, the cleaning person can get the other beds ready.

[01:18:44] Cathy Curtis: It’s a real art and a science to run a place. And to run it well.

[01:18:48] Ruth Krumbhaar: Yeah. And that’s why with the Airbnb’s that I’ve had, all the sheets are the same color.

[01:18:55] Ruth Krumbhaar: So if you have a pillowcase here, even if they’re slightly different, you could, everything’s white or everything’s blue or everything is in the same theme so it can be mixed and matched.

[01:19:07] Cathy Curtis: Yeah. I agree. Keeping it as simple as possible is, especially if you have multiple bedrooms, it just makes so much sense. And all the beds being the same size is helpful too. Yeah, if you can do it. But all these things save time, and they save money. They do. You make your cleaner’s job easier, she or he is going to spend less time in the place cleaning it, you’re going to have a lower cleaning fee, things like that.

[01:19:36] Ruth Krumbhaar: And so, I think with those kinds of properties, keeping it again, simple, keeping the design simple, keeping the garden simple as easy to maintain as possible. One of the things at my place in Maine. The front step. It’s an island where there are granite quarries. So it’s got these massive granite slabs as steps, but they were off-kilter and the whole house felt kind of funky. I had a guy just correct it and oh straight and pushed it back into place, which was not an easy thing to do because they’re humongous. The whole house feels different.

[01:20:17] Ruth Krumbhaar: It feels so good. And also, it’s safer. Because if somebody trips on those stairs, if they were a little bit off, maybe they could sue me. So you have to also think about that.

[01:20:30] The importance of understanding local real estate laws when investing in a rental property.

[01:20:30] Cathy Curtis: Okay, that’s another great topic. So, this is for rentals. You have to know the local laws about keeping the property safe.

[01:20:42] Cathy Curtis: Yes. If you have a tenant especially. Can you talk to that a little bit?

[01:20:46] Ruth Krumbhaar: Yeah, it’s really important. When I owned rental properties in San Francisco as a landlord, I don’t have a lot of rights. I have fewer rights than I would like so that’s something really important to consider. In Indiana, I certainly don’t want to do anything to upset my renter.

[01:21:06] Ruth Krumbhaar: I love my renter, but I have more rights in Indiana than I do here in San Francisco. And that is appealing…

[01:21:13] Cathy Curtis: About that on the first podcast, that you could do a lot more things than you can do in San Francisco. And just how much easier would that be? It’s just so much easier.

[01:21:24] Ruth Krumbhaar: Yeah. This is less, there’s so many elements that come into this.

[01:21:29] Ruth Krumbhaar: Because you have to make sure your insurance is good for it being a rental and…

[01:21:34] Cathy Curtis: Can you give an example of something you can do in Indiana that you would never be able to do in San Francisco?

[01:21:40] Ruth Krumbhaar: I think I can kick my renter out more easily. And again, not that I would want to, because I love my renter.

[01:21:48] Cathy Curtis: But no, I know, but that’s a real issue for landlords.

[01:21:51] Ruth Krumbhaar: Yes, in San Francisco, I was considering selling my property and approached the renters and it was going to cost a hundred grand to move them out.

[01:22:02] Cathy Curtis: Yeah, that’s happened to friends of mine. It’s horrible.

[01:22:06] Ruth Krumbhaar: Yeah, so it’s important to think about that. And as I go to re-rent my property in San Francisco, I have to consider the renter, if I want to sell it in say three years.

[01:22:19] Ruth Krumbhaar: I either need somebody who I think will leave in three years, or I have to be prepared to buy them out.

[01:22:25] Cathy Curtis: Are there any other, you mentioned knowing other local laws or ordinances and wherever you do buy and rent.

[01:22:35] Ruth Krumbhaar: Yeah. I’ll use Indiana. The mayor of the town where my house is. He’s real estate friendly.

[01:22:43] Ruth Krumbhaar: He’s actually just trying to help the town get back up on its feet. And so he wants people to come in and fix up houses. He wants great rental housing because three new factories are moving in. So he’s trying to make it easy for everybody, the workers and the people who need housing, but also the people who are supplying the housing.

[01:23:05] Ruth Krumbhaar: And I love his attitude. I don’t, I can’t recite all the nuts and bolts, but in listening to him and reading some of the articles about him and the initiatives that he’s got going. He’s really favoring developers, he’ll sit down and meet with you and talk to you about what you want to do in terms of development and try and make it happen.

[01:23:26] Cathy Curtis: Did you know this when you, after you bought or before you bought?

[01:23:31] Ruth Krumbhaar: Before, before. A friend of mine…

[01:23:32] Cathy Curtis: That would be, that’s a really interesting element to know about when you’re going to buy a rental in a city.

[01:23:38] Ruth Krumbhaar: Yes. And so you want to go on any sort of board, even Reddit is a place where you can get some information.

[01:23:47] Ruth Krumbhaar: You don’t want to rely on that solely. You should read the local newspapers. That’s a really good way to learn, talk to some banks about lending practices and what’s going on, and do a drive around the area, talk to your realtor. Look at, I think we talked about a lot of this in our first podcast, look at places like Muncie where my house is, three new factories are coming in.

[01:24:14] Ruth Krumbhaar: Actually, I think it’s really promising for our future. I think that it’s important to do your research around what’s happening locally. You don’t want any surprises.

[01:24:26] Cathy Curtis: Yeah. We want as few as you can manage because there’s always going to be something. Yeah. It’s always going to be something.

[01:24:35] Ruth Krumbhaar: Yeah, you can make a property as pretty as you want and you can have it as buttoned up, but there are always things.

[01:24:43] Ruth Krumbhaar: One thing that I think my partner is running into in Redwood City is when you do a transaction there buying or selling a property, you have to upgrade the sewer lateral, which is a huge expense that a lot of people aren’t aware of. So I think that’s common.

[01:24:55] Cathy Curtis: I hear about that a lot and it’s expensive.

[01:25:03] Ruth Krumbhaar: It is. So just making sure that you do your research.

[01:25:07] Cathy Curtis: Yeah. You need to be like a forensic scientist when you’re digging into all the details. That makes a lot of sense. Great. I have enjoyed this conversation so much. Is there anything else you’d like to add that you think our listeners would enjoy hearing about? When it comes to decor, and I know, just so everyone knows, we’ll share a whole bunch of resources on the podcast page once this is published.

[01:25:37] Ruth Krumbhaar: I think just connecting to what makes you happy, what brings you joy. If you are a maximalist, go for it, at least in your own home. If you are a minimalist, go for it. And then also, I think, just follow your heart, be you. Yeah. Or make your home represent you, make it be an extension of your personality and expression.

[01:26:04] Ruth Krumbhaar: That’s in your own house. And if you have rental properties or you’re interested in doing Airbnbs, see if you can establish a formula because it’ll make it a lot easier. Have one paint color that you always go to, that feels like the safe bet. So you don’t have to scurry around and wonder what color you painted that rental property or that rental property.

[01:26:27] Ruth Krumbhaar: And just have fun with it. Design is fun, and it’s inspiring, and it says a lot. And it’s a great way for us to express ourselves, but it’s also a great way to welcome people and allow other people to feel good. So that, and then in terms of finances, that sort of two thirds, one third is possibly a rule to stick with.

[01:26:52] Ruth Krumbhaar: If you have your budget is, say, $100,000, see if you can whittle it down to somewhere like $75,000 or $70,000. You can work within there knowing that you have a little bit of extra wiggle room if you need it.

[01:27:06] Cathy Curtis: That’s great advice. And then you won’t be so surprised. And hopefully, you’ll have the money to be able to do it.

[01:27:15] Ruth Krumbhaar: Exactly. And then, of course, as we talked about, having every room have that something elevated.

[01:27:22] Cathy Curtis: I think that is really good advice. Yeah. I love it. You can’t go wrong if you do that.

[01:27:31] Ruth Krumbhaar: All right, this has been so much fun. It’s wonderful fun. And I love talking about design and real estate and finances with you.

[01:27:40] Cathy Curtis: I do too. Thank you so much. And we’ll be publishing this very soon. And I’d love to say we’ll do a third one. So maybe we’ll come up with another topic for the future. Yes. Okay, Ruth. Thanks so much. Take care. Bye. Bye.

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S5E4 Transcript: Mastering the Art of Real Estate Staging & Interior Design with Ruth Krumbhaar Read More »

investing

Why FOMO Hits So Hard

The Real Cost of Emotional Investing

Why You’re Better Off Waiting Until FOMO Fades

Questions Worth Asking When You Feel the Pull of FOMO

A Long-Term Perspective Changes Everything

Understanding the Bond Market

Why Investors Are Nervous

First: The Impact of Trump’s “Liberation Day” Tariffs

Next: The “Big, Beautiful” Tax Bill

What Bond Market Volatility Means for Investors

Putting Bond Market Volatility in Perspective

Why We Make Emotional Investment Decisions

The Cost of Emotional Investing

Practical Strategies to Avoid Emotional Investing

#1: Create a Detailed Investment Policy Statement (IPS)

#2: Automate Contributions and Rebalancing

#3: Lean Into Dollar-Cost Averaging (Especially in Volatile Markets)

#4: Work With a Financial Advisor as an Emotional Buffer

Manage Your Emotions and Invest with Confidence

How Women Approach Financial Decision-Making

Women Still Face Unique Challenges

Taking Control of Your Financial Future

Celebrate Women’s History Month by Taking Action

Market Volatility: Yes, It’s Unnerving, But It Doesn’t Imply Direction Of The Market

5 Smart Moves to Protect Your Financial Plan Against Market Uncertainty

The Best Course: Stay Disciplined

Understanding Anxiety Triggered by Uncertainty

The Psychology of Financial Planning During Uncertain Times

Key Financial Planning Strategies as Self-Care Practices

Practical Tips for Implementing Financial Self-Care

Additional Considerations

Maintaining Perspective During Uncertain Times

How the Stock Market Performs in Presidential Election Years

Understanding the Longer-Term Impact of Presidential Elections on the Stock Market

Exploring America’s Most Contentious Presidential Elections

The Election of 1800: Jefferson vs. Adams

The Election of 1876: Hayes vs. Tilden

The Election of 1912: Wilson vs. Roosevelt vs. Taft

The Election of 2000: Bush vs. Gore

The Election of 2020: Biden vs. Trump

Time in the Market Matters More Than Political Party

Presidential Elections and the Stock Market: Additional Considerations for Long-Term Investors

The Economy Remains Resilient

October Market Review: Financial Markets Continue to Struggle

Looking Ahead: Underlying Economic Concerns

What This Means for Investors

Real Estate Maven Ruth Krumbhaar Shares Her Winning Formula for Staging and Interior Design

Episode Highlights

Links Relevant to this Episode & More Tips from Ruth

Enjoy the Full Episode

Other Ways to Enjoy this Episode

Do you love Financial Finesse? Please leave us a review on Apple Podcasts!

[00:04:00] Ruth shares her decorating philosophy and why she always starts with a blank canvas when designing a space.

[00:14:06] Why every room doesn’t necessarily need a showstopper when it comes to home decorating.

[00:20:09] How Ruth determines her decorating budget and where she shops to find cost-effective, quality items.

[00:27:51] Tips and tricks for decorating an Airbnb for functionality and style.

[00:38:12] Why flipping a property requires a slightly different design approach than decorating a rental property.

[00:50:20] Ruth’s advice for handling home renovation projects, such as updating a bathroom or kitchen, and why a good contractor can make a world of difference.

[01:01:32] Tips for updating a space where you’ve grown tired of the décor, and why hiring a style consultant can be a worthwhile investment.

[01:07:35] What Ruth believes are the most important items to invest in when decorating your home.

[01:15:59] Why practical designs can actually boost your return on investment with an Airbnb property.

[01:20:30] The importance of understanding local real estate laws when investing in a rental property.

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