Grow Money Business with Grant Bledsoe: Recent Episodes
Grant Bledsoe
Welcome to Grow Money Business with Grant Bledsoe, the podcast dedicated to helping business owners grow their wealth and business on their own terms. Grant is a CERTIFIED FINANCIAL PLANNER™ who helps business owners optimize and align their personal finances, business, and values. He’s also the founder of Three Oaks Capital Management, a registered investment advisory (RIA) firm. Throughout this podcast Grant will be interviewing entrepreneurs and business professionals to bring you valuable ideas to help you grow your business & wealth.
This week on the show we field a listener question about whether their concern about government spending should be reflected in their investment portfolio. We also review an article about market efficiency / inefficiency, and provide an update on mortgage and long term bond rates.
RESOURCES:
Mob Rule
humbledollar.com/2024/10/mob-rule/
Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail Hardcover
by Ray Dalio
amazon.com/Changing-World-Order-Nations-Succeed/dp/1982160276
Most Americans have at least some of their retirement savings sitting in workplace retirement plans like 401ks, 403bs, SEP-IRAs and the like. And when you leave a job, due to a retirement transition or not, many people wonder what they should do with the savings they’ve accumulated in the plans.
We’ve noticed that the more people tend to have in their retirement plans, the more reluctant they are to take action out of fear of making a mistake. In this episode of the podcast we’ll answer several questions about 401k rollovers:
· Should I keep my savings in the 401k or roll the funds into an IRA?
· Can I roll my 401k directly into a Roth IRA?
· My savings is in the Federal TSP. I’ve heard the plan is really good. Should I roll the funds into an IRA when I retire or stick with the TSP?
We’ll also review the logistics of 401k rollovers and how you can avoid major mistakes.
Resources:
https://www.morningstar.com/funds/are-low-volatility-etfs-dead
Downsizing from your large, long-held family home is a popular concept for retirees, but may not always be the best choice. Even though smaller homes are less costly & easier to maintain, giving up your family's major meeting venue may not be the best choice. This week we respond to a listener question on whether downsizing might be right for them, and cover Nvidia's recent earnings call and an article about the prevalence of gift card scams.
Highlights
[05.30] Market Update – News on Nvidia earnings.
[11.24] Article of the Week – This week’s article on gift card fraud.
[15.40] Downsizing – Grant explains the reasons why people choose to downsize.
[20.00] Not for everybody – Grant explains why downsizing doesn’t suit everybody.
[23.36] Advice - What to consider before downsizing.
Resources
Why gift card fraud slips through the cracks of America’s banking regulation system
https://theconversation.com/why-gift-cards-fall-into-a-gap-in-the-2-tier-banking-regulation-system-and-a-brief-history-of-why-that-gap-exists-236478
Dow Jones Futures Rise; Nvidia Pares Earnings Losses, Salesforce Jumps
investors.com/market-trend/stock-market-today/dow-jones-futures-nvidia-earnings-guidance-salesforce-crowdstrike/
Outlive: The Science and Art of Longevity
By Peter Attia
amazon.com/Outlive-Longevity-Peter-Attia-MD/dp/0593236599
Mailbag Question:
“I’d like to give more money to a couple different charities this year, but my tax person said it wouldn’t help my taxes. Is there a way I can make a gift that reduces my taxes?”
Intro:
“There are a ton of different ways to give to charity, but not all of them will help you on your taxes. This week we cover a listener question about tax efficient charitable giving, and when it will or will not help you.”
Resources:
Donor-Advised Funds (DAFs): What They Are and How They Work
nerdwallet.com/article/taxes/donor-advised-funds
Qualified Charitable Distributions (QCDs)
fidelity.com/building-savings/learn-about-iras/required-minimum-distributions/qcds
The New Etiquette of Negotiating With Your Real-Estate Agent
wsj.com/personal-finance/the-new-etiquette-of-negotiating-with-your-real-estate-agent-1ff585c7
Mailbag Question:
“Everything I hear about Social Security is bad, and it sounds like the program will run out of money in a few years. Is there a good reason I shouldn’t file for benefits now before the money runs out?”
Intro:
“Many retirees are concerned about the state of Social Security, and some of them even expect the program to crumble in the next few years. Does that mean you should get your money out now before it does? This week we respond to a listener question about by explaining what’s going on with Social Security, how long it’ll be before the Social Security trust runs out of money, and what will happen when it does. We also cover an article from Consumer Affairs about why car insurance premiums are rising so much, and review a very strong rebound in the markets”
Resources
The 2024 OASDI Trustees Report
ssa.gov/OACT/TR/2024/
A Summary of the 2024 Annual Reports
ssa.gov/OACT/TRSUM/index.html
Auto insurance is outpacing inflation and getting worse
consumeraffairs.com/news/auto-insurance-is-outpacing-inflation-and-getting-worse-081524.html
It’s no secret that the IRS is underfunded right now. It takes most taxpayers months to receive refund checks, and most would rather go to the dentist than wait on hold to talk with the IRS.
Our guest this week is Tom Nally, who’s recently launched Tax Now to help taxpayers and their professionals navigate this landscape. The platform syncs up with the IRS database and simply notifies you when there are updates to your account. It’s a sorely needed tool, and Tom walks us through what he’s built and how the launch has gone.
We also cover an article about Trump’s interest in allowing the sitting president more control over monetary policy, and summarize a volatile week in the markets.
Resources
Trump’s Plans Stir Fears for Fed Independence, Inflation
wsj.com/politics/elections/trumps-plans-stir-fears-for-fed-independence-inflation-689bc113
Connect with Tomas Nally
LinkedIn - linkedin.com/in/tomasnally/
Website - taxnow.com/
Mailbag question:
“My husband and I are assembling our retirement plan and planning to relocate once I quit working. We’re trying to decide between Tennessee, Florida and Texas, since they’re all states with lower tax and retirement lifestyle costs. Which do you think is best? The lists are all different.”
Intro:
Financial media love to create lists of the “best” and “lowest cost” states to retire in. This week we answer a question about the differences between Tennessee, Texas, and Florida as retirement destinations, and what you should consider when relocating in retirement.
Resources
The best states to retire in 2024 – Ranked
moneywise.com/retirement/best-states-to-retire-in
The Most Affordable U.S. States to Retire in 2024
fool.com/retirement/relocation/cheapest-states-to-retire/
A Strong Year for 401(k) Balances Masks the Truth About Long-Term Performance
crr.bc.edu/a-strong-year-for-401k-balances-masks-the-truth-about-long-term-performance/
Mailbag Question:
“I recently met with an attorney to get my estate plan done. They recommended that I create a living trust to hold some investments and my house. Is that legitimate? It sounds like an upsell better suited for very rich people.”
Intro:
This week on Grow Money Business we answer a listener questions about trusts and estate planning. Our faithful listener spoke with an attorney about estate planning recently, who recommended a living trust as part of his plan. We cover the pros and cons of living trusts and whether the recommendation is an upsell from the attorney.
Links:
https://www.wsj.com/finance/stocks/a-stock-market-rotation-of-historic-proportions-is-taking-shape-da9b6546?mod=finance_feat2_stocks_pos2
https://www.weareatticus.com/learn/what-is-the-uniform-probate-code
Early retirement is a popular goal for many, but actually making it happen can be challenging. One major obstacle is the early withdrawal penalty imposed to distributions from IRAs & 401ks before 59 ½ years of age.
This week on the show we answer a listener question about how to navigate this landscape and a few possible workarounds. We also cover whether index investing has impacted the markets, and an article about how inflows to hot investment funds can falsely influence performance numbers
Resources:
GMO: Passive Investing’s Impact Has Been Overblown, But It’s Not Negligible
institutionalinvestor.com/article/2dgy5jctx2rb7g3wv2juo/portfolio/gmo-passive-investings-impact-has-been-overblown-but-its-not-negligible
Hot Funds and the Curse of ‘Self-Inflated Returns’
wsj.com/finance/investing/etf-self-inflated-returns-258e875e
Strategies For Maximizing (Or Minimizing!) Rule 72(t) Early Distribution Payments Using IRS Notice 2022-6
kitces.com/blog/rule-72t-sepp-calculate-payments-rmd-avoid-penalty-tax-early-ira-withdrawals-notice-2022-6/
One question we get a lot is why we’d ever want to invest in countries other than the U.S. The U.S. stock market has done far better than other countries recently. It’s the biggest national market in the world. The U.S. has the strongest, most resilient economy. And the U.S. dollar is the world’s reserve currency. Why would we ever want to invest anywhere else?
This week on the show we cover this question in detail, June’s inflation data, and an article on the impact that inflation has on bond markets.
Links:
https://www.dimensional.com/us-en/insights/global-diversification-still-requires-international-securities
https://www.morningstar.com/portfolios/is-international-diversification-necessary
https://www.mortgagenewsdaily.com/markets/mbs-morning-07112024
Mailbag Questions:
1) “I’m a small business owner, and have a SEP-IRA that I’d contributed to annually until a few years ago. Then things got tight during COVID and I took a break from making contributions. Now business is turning around again. I’ve been watching the bitcoin ETFs and am wondering if this is a good investment once I start putting money into my plan again.”
This week we cover a listener question about how to handle an inheritance of $850,000. Jason recently dropped the question in our mailbag after receiving the inheritance unexpectedly. He and his wife are in a stable financial situation and aren’t sure what to do next. Grant shares his thoughts on what the couple should do.
We also review an article in The Atlantic covering whether monetary policy actually works in practice, and the presidential debate after a relatively quiet week in the markets.
Resources:
https://www.theatlantic.com/ideas/archive/2024/06/interest-rates-inflation/678802/
Our guest on the show this week is Jeremy Harbour. Jeremy has been involved in the M&A market across the globe for decades. He’s the founder and CEO of the Unity Group, a boutique international mergers & acquisitions firm. He also runs the Harbour Club, a professional network focused on teaching M&A best practices to entrepreneurs. Jeremy shares with us the do’s and don’ts and buying and selling businesses after dozens of successes and failures he’s had over the years. We also cover an article by Global Financial Data that reviews concentration in the US stock market today compared other periods dating back to the late 1700s.
Links:
https://www.jeremyharbour.com/
https://www.unity-group.com/
https://harbourclubusa.com/
https://globalfinancialdata.com/200-years-of-market-concentration
We dedicated this week’s episode to another mailbag question from our listeners. If you are someone who is applying for income tax returns, you might have heard about the estimated tax payments. In this episode, Grant explains some of the essential information you should know about the estimated taxes and the easiest way to proceed with them.
Michelle Seiler Tucker is back on the show this week to discuss how higher interest rates have impacted the market climate for business sales. Michelle is the best selling author of Exit Rich and has been in the M&A business for over 20 years (selling over 1,000 business over that time frame). She shares a few basics of what business owners can do now to set themselves up for future success, as well as how the buyer’s perspective has changed.
We also cover some market news. Gamestop has been in the news recently after Keith Gill, aka “Roaring Kitty” posted screenshots of his holdings and announced a YouTube livestream last week. Gamestop proceeded to make a surprise earnings announcement, in addition to a secondary share offering after seeing it’s price jump over the last two weeks.
Links:
https://www.wsj.com/finance/stocks/degen-stock-crypto-trading-market-trend-69d12a56
This week was relatively slow in market news…..until the Trump verdict came out. Donald Trump was found guilty on all 34 counts brought against him in the hush money trial, which throws more uncertainty into upcoming election cycle. The financial world changed on Tuesday as well, as the stock settlement cycle was shortened from T+2 to T+1. We cover what all this means for you, how the markets reacted to the Trump verdict, and whether the investment vehicle Trump used to take Truth Social public is something you should consider for your portfolio.
Resources:
https://www.jpmorgan.com/insights/securities-services/regulatory-solutions/t-plus-1
We’ve covered a lot of technical investment concepts on the show over the last couple years. Since it’s sometimes helpful to take a step back and focus on the core foundational concepts, this week’s episode covers the three golden rules of investing we should all be trying to use. We also cover Nvidia’s stock split and the new world of financial scammers.
Resources
sherwood.news/tech/investigating-instagram-investing-scams/
A few weeks ago I had someone ask whether it was possible to live off of dividend income alone in retirement. This gentleman had saved up a nice chunk of money and was currently invested 100% in stocks. He was eligible for Social Security benefits, and was intent on never selling any of his shares in retirement.
Instead, he wanted to live off the dividends his portfolio produced to pay his expenses. He thought that between his Social Security benefits and dividend income he’d have plenty to pay his bills. I thought this was an interesting question, and dive into the details in today’s podcast episode.
We’re trying a new format on the show! Starting this week each episode of Grow Money Business will include a few consistent sections. We’ll answer mailbag questions. We’ll interview guests. We’ll spend a couple minutes reviewing the markets. And we’ll review news articles you should be paying attention to. Enjoy!
Resources:
etf.com/sections/news/fidelity-adds-surcharge-etf-platform
wsj.com/personal-finance/retirement/inherited-retirement-account-ira-irs-c3c95273?mod=personal-finance_lead_story
The general goal of investing is to buy low and sell high sometime in the future. So how should we handle it when the markets make new all time highs? Should we wait for the market to fall before investing new money? Should we invest it all now to catch upward momentum?
The reality is that markets make new all time highs pretty frequently. Since our economy continues to grow, the size of the pie that drives corporate profits and stock returns simply tends to get bigger and bigger. And even if you invest at a new all time high today, you’re still likely positioned for positive long term returns.
In today’s episode we dive into the details. We cover the history of returns over 1, 3, and 5 year periods after investing at an all time high, and how you might think about this in the context of your overall strategy.
Resources:
3 Golden Rules On How To Invest At All-Time Highs
seekingalpha.com/article/4453541-3-golden-rules-on-how-to-invest-at-all-time-highs
Tony Matheson joins us on the show this week. Tony worked as a wholesaler in the investment industry for 20 years before departing to launch a financial advisory firm, Slalom Wealth. Wholesaling is a sector of the industry we haven’t discussed much on the podcast to date, and Tony joins us to share the inside scoop. We cover how wholesalers work with and influence financial advisory offices, what his path to starting a financial advisory office has been like, and what it’s really like to study and sit for the CFA exams.
Resources
Connect with Tony:
Website - slalomwealth.com/
LinkedIn - linkedin.com/in/tony-matheson/
cfainstitute.org/en/
XY Planning Network - xyplanningnetwork.com/
I’m asked pretty frequently what I think of the market, and what themes I’m paying attention to. While I don’t think there’s any one theme, event, or headline that should impact your investment allocation, there are certainly some themes I’m tracking more than others. In this episode I cover the top four I’m paying attention to right now: the “Magnificent 7” and the impact on market returns, commercial real estate, the Fed’s dot plot, and the Chinese economy.
Resources
Links:
https://www.bankrate.com/banking/federal-reserve/how-to-read-fed-dot-plot-explained/
https://www.npr.org/2024/01/30/1227554424/evergrande-china-real-estate-economy-property-collapse
https://www.cnbc.com/2024/01/25/china-youth-unemployment-will-stay-elevated-in-2024-but-eiu-warns-economic-impact-will-linger.html
https://www.mba.org/news-and-research/newsroom/news/2024/01/16/delinquency-rates-for-commercial-properties-increased-in-fourth-quarter-2023
https://money.usnews.com/investing/articles/magnificent-7-stocks-explainer
Vince Shorb joins us this week to discuss the state of financial literacy. Vince is the founder and CEO of the National Financial Educators Council, which provides financial literacy resources to educators and organizations nationwide. He shares why basic financial concepts are not being taught in public schools across America, as well as what parents need to teach their kids about money to set them up for long term success.
Resources:
https://www.financialeducatorscouncil.org/
https://www.linkedin.com/in/vinceshorb/
When politicians draft tax reform bills I usually try not to pay attention until they become law, since so few actually do. This tax reform bill is a little different. The Tax Relief for American Families and Workers Act of 2024 is a bipartisan bill that got through the Ways & Means Committee with a vote of 40-3. And since some of the tax changes would be retroactive to 2023, I figured it warranted some coverage. You might want not want to file your tax return quite yet if any of these changes apply to you.
Links:
https://www.wolterskluwer.com/en/expert-insights/tax-relief-for-american-families-and-workers-act-of-2024
https://www.congress.gov/bill/118th-congress/house-bill/7024
https://tax.thomsonreuters.com/blog/understanding-the-tax-relief-for-american-families-and-workers-act-of-2024/
https://taxfoundation.org/blog/bipartisan-tax-deal-2024-tax-relief-american-families-workers-act/
This week’s guest on the show is Eric Mason. Eric is a CFO, an economist, and a TEDx speaker. He is the current Chief Financial Officer for Quincy, Massachusetts. where he provides direct analysis of all economic and financial forecasting to the Chief Elected Official. He has an academic background in economics and has worked extensively in the field, with a focus on analytics and public policy. He teaches Principles of Microeconomics as an adjunct instructor at WVU John Chambers College of Business and Economics. Eric joined us today to talk about the current state of the economy in the US. Join us as we dive into Eric’s take on the current economic state, where it’s headed, what he expects to happen in the economy over the next 12 to 24 months, his take on federal debt, and more.
[07.00] National economy – Grant and Eric start off the conversation by discussing Eric’s career journey and his perspective on the present state of the national economy.
[16.04] Economic forecasts – Grant and Eric talk about how people make irrational economic decisions based on forecasts.
[21.50] Austrian School of Economics – Eric explains the Austrian School of Economics and how it is different from others.
[28.05] Capitalism – Grant and Eric discuss capitalism and its beauty.
[35.40] National debt – Eric shares his perspective on the US national debt and the US dollar as the dominant currency in the world.
[42.25] Threat – Grant and Eric discuss the threat of high interest-rates due to the US national debt of $33 trillion.
[49.36] FOMC – Eric explains his perspective on the ability of the Federal Open Market Committee to use balance sheet positions from the Federal Reserve to generate debt.
Resources
theinformaleconomist.com/
Annuities have earned a bad reputation within the financial community over the years, but why is that? When might an annuity actually make sense in retirement? And how can you tell whether they’re a good fit for you?
We’ve covered annuities a bit on the show over the years but haven’t described the fact pattern where an annuity might actually make some sense. In this episode we cover the fundamentals of retirement income planning, why mortality credits yield more income than bond interest, and when an annuity might be a good fit for your retirement.
[07.00] Annuities – Grant starts off the conversation by explaining annuities and why they are popular around the country.
[12.04] The 4% rule – Grant describes the popular retirement withdrawal method, “the 4% rule,” which implies retirees can securely withdraw 4% of their money in their first year.
[17.20] Mortality credits – Grant reviews longevity and annuity policies.
[23.30] Profitability – Grant explains how insurance companies design their products with their own profitability in mind.
[30.07] Candidacy – Grant explains who might be a good fit for annuities according to their background.
Resources
How Mortality Credits Make Annuities Work
safemoney.com/blog/annuity/how-mortality-credits-make-annuities-work/
Annuity Surrender Periods: Understand (and Avoid) Surrender Charges
thebalancemoney.com/annuity-surrender-period-charges-and-tips-to-pay-less-315092
This week our guest on the show is Michael Koeppel. Michael is the managing director and founder of Lakelet Advisory Group. In his roles as a board director, C-level leader, and business transformation strategist, he has helped companies in the manufacturing, technology, healthcare device, and financial industries achieve sustainable growth and turnarounds. Michael joins us to share his knowledge on the ins and outs of the ESOP (Employee Stock Ownership Plan), who may and may not be a good candidate for it, the costs, the benefits, and more.
Resources
ESOP
lakeletag.com/business-valuations/esop
Recent Podcast: https://www.youtube.com/watch?v=qjdFhVD2O10
LinkedIn: https://www.linkedin.com/company/lakelet-advisory-group-llc/mycompany/
Welcome to another mailbag episode.
It’s not a surprise that the value of bond funds has gone down with the high interest rates in the past couple of years. But is it a good enough reason to dump your bond funds over it? In this mailbag questions episode, we discuss PIMCO Total Return Instl.., the risks of dumping your bond funds, debt payments, and more.
[03.34] Total return fund – Starting the conversation, Grant talks about the PIMCO Total Return Instl. and its status in recent years.
[07.21] Bond funds – Things to consider about bond funds.
[14.00] Risks – Grant explains why it’s not a good idea to dump your bond funds just because they had a bad couple of years.
[20.00] Paying off debts– Grant explains why it’s not a good idea to take out all your bond funds and pay off your debts.
[30.40] Great Depression – Grant tells a story about one of his clients and explains why taking out money and paying off debts can work for some people.
Resources
SEC 30-Day Yield Definition, Formula, Calculation, Example
investopedia.com/terms/s/secyield.asp
morningstar.com/funds/xnas/pttrx/quote
This week’s episode of Grow Money Business features Ray Drew. Ray is a top-producing SBA 7a Lender, podcast host, and SMB investor. He is currently working as the Managing SBA Business Development Officer at Fund-Ex Solutions Group. Throughout his career, Drew has focused on assisting small business owners with the complexities of small business administration loans. It is his responsibility to assist the entrepreneur in developing a tailored loan solution that addresses the specific requirements of the business. He joined us today to talk about the primary business loan program of SBA, change of ownership, non-bank lenders, the role of a business development officer, and more.
[05.00] 7(a) loans - The primary business loan program offered by the SBA to small businesses in need of funding.
[12.53] Past and present – Ray explains the big changes in SBA in 2023.
[16.14] Change of ownership – Ray explains the partial change of ownership in SBA.
[27.09] Business development – Grant and Ray discuss the role of a business development officer.
[32.17] Nonbank lender – Grant and Ray discuss nonbank lenders, a loan provider who isn't a conventional bank.
[36.13] Real-estate – Ray shares his thoughts on commercial real estate for small business owners.
[39.53] Terms on loans – Ray explains what you can do to improve your terms on loans.
Resources
sbaray.com/
fundexsolutions.com/
This week on Grow Money Business we are talking about stock concentration and the Magnificent Seven. Last year, there was a group of seven companies that produced a huge portion of the S&P 500’s approximately 20% annual return. Join us as we dive into why these seven companies out-performed, arguments for why they may or may not continue to out-perform, comparisons for this type of stock concentration to other periods historically, and more.
[03.38] The magnificent seven – Google, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla are the seven companies recognized for their market dominance in 2023.
[08.05] The P/E ratio – Grant dives into the P/E ratio, one of the most popular stock valuation indicators for investors and analysts.
[12.48] NIFTY 50 - Nifty 50 is the 50 most popular large-cap stocks that traded at high valuations in the 1960s and 1970s.
[17.00] Future – Grant explains what the next 10-15 years look like for the companies with an over 30 P/E ratio.
[26.00] Artificial Intelligence – Grant shares his thoughts on why AI is overhyped and what the future will look like.
Resources
It’s the AI Revolution and you’re focused on PE ratios.
downtownjoshbrown.com/p/ai-revolution-youre-focused-pe-ratios
What Are the Magnificent 7 Stocks?
kiplinger.com/investing/stocks/what-are-the-magnificent-7-stocks
Nifty Fifty
en.wikipedia.org/wiki/Nifty_Fifty
In this episode of Grow Money Business, we are joined by Rocky Lalvani. Rocky is a chief profitability advisor and currently works in his business consulting practice following the principles written in the book ‘Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine’ by Mike Michalowicz. Rocky has access to profit specialists worldwide, is certified in the Profit First method, and has firsthand experience boosting revenue for multiple companies. In this conversation, we talk about small business cash management, managing cash flow and profitability, understanding your business finances, common mistakes business owners make, and more.
[05:00] Profit comes first – Rocky starts the conversation by sharing the birth story of Profit First.
[12:00] Helping people – Rocky explains the process of helping people with Profit First.
[20:00] Rocky’s story – Rocky shares how he got into the industry.
[30:00] Mistakes – Grant and Rocky discuss some common mistakes business owners make.
[37:18] Guidance – Grant and Rocky discuss the importance of professional guidance.
Resources
Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
By Mike Michalowicz
amazon.com/Profit-First-Transform-Cash-Eating-Money-Making/dp/073521414X
Connect with Rocky
LinkedIn - linkedin.com/in/rocky-lalvani/
Website - profitcomesfirst.com/
richersoul.com/
This week’s episode is all about predictions. At the end of the year 2022, Grant made some market predictions for the year 2023. In today’s episode, he is going to discuss what he got right and wrong from those predictions. Furthermore, he shares his market predictions for the year 2024.
[05.35] Stock market – Starting the conversation, Grant explains how unpredictable the stock market is and why he hesitates to make predictions.
[13.25] Inflation – Grant’s prediction about inflation by the end of the year 2023.
[20.10] FTX – The collapse of FTX and how it affected the other major operators in the crypto space.
[28.23] Interest rates – Grant’s prediction on US government bonds at the end of 2024.
[34.26] Emerging markets – Grant predicts that the emerging markets are going to do better than the US and internationally developed markets in 2024.
[42.00] Bitcoin – Grant’s prediction on Bitcoin for the year 2024 and the reasons behind them.
Resources
Mea Culpa 2022 & Predictions for 2023
threeoakswealth.com/mea-culpa-2022-predictions-for-2023/
Asha Paulose is an elder law and estate planning attorney in New York who operates a virtual law firm for clients living in Long Island, NYC, and the Hudson Valley. Her firm prepares trusts, wills, and other planning documents to help families through death or protect assets as individuals begin to age. She joined us today to talk about the common estate planning mistakes people make, why you should not add your kids' names to your bank account, why you shouldn't have your siblings inherit your assets that meant for your children, and more.
[04.05] Asset protection – Asha starts the conversation by explaining the importance of asset protection.
[11.33] Minor beneficiary – Grant and Asha discuss why a trust is a good idea if you have a minor beneficiary.
[18.34] Funds – Asha explains why commingling funds is not a good idea.
[26.27] Revocable living trust - A revocable trust is a trust that allows the grantor or creator to modify or revoke its terms according to their wishes.
[35.28] Succession planning – Grant and Asha talk about the importance of succession planning when you start your own business.
[40.11] Virtual firm – Asha discusses the benefits of having a virtual firm.
Resources
Connect with Asha
LinkedIn - linkedin.com/in/asha-paulose-17a50565/
Website - ashapaulose.com/
Instagram - @PauloseLaw
This week’s episode of Grow Money Business is all about your investment portfolio. Going into 2024, this is an opportunity to rebalance your portfolio and think about whether your asset allocation is right for you. Join us as we dive into how to rebalance your portfolio, target bonds, exchange-traded funds vs. mutual funds, and more.
[03.40] Rebalancing – Grant explains the importance of balancing your investment portfolio.
[10.28] Personal priorities – Grant describes how to reassess personal priorities and the importance of having a professional to guide you through them.
[15.00] Target bands – Grant explains target band rebalancing.
[24.00] ETF – Grant explains the difference between exchange-traded funds and mutual funds.
Resources
What’s the Optimal Rebalancing Strategy?
nasdaq.com/articles/white-paper%3A-whats-the-optimal-rebalancing-strategy-2021-08-02
See how tax-smart asset location can potentially help improve after-tax returns
https://www.fidelity.com/viewpoints/investing-ideas/asset-location-lower-taxes
Scott Christianson is an Associate Teaching Professor at the University of Missouri whose proficiency involves technology, information systems, project management, and education, enabling him to guide students in developing critical thinking skills about upcoming technologies such as artificial intelligence and blockchain. He joined this week’s episode of Grow Money Business to update us with his knowledge of generative AI, cryptocurrencies, Central Bank digital currency, and more.
[07.45] AI –Scott explains how AI can be inaccurate in specifying details and how we can use it as a tool in our arsenal.
[12.50] Copyright issues – Grant and Scott talk about the large-scale copyright issues artists are facing because of AI.
[22.09] Impact – We dive into how generative AI impacts professions such as content creation.
[31.26] Bitcoin – Grant and Scott discuss the long-term potential of cryptocurrency.
[43.00] CBDC – Scott shares his thoughts on Central Bank Digital Currency and its current standing.
[50.38] Usage of CBDC – Scott shares some examples of countries that are both successfully and unsuccessfully using CBDC.
[56.03] Wealth inequality – Grant and Scott discuss the rising wealth inequality in the USA.
Resources
frtech.substack.com/
linktr.ee/profc
Number Go Up: Inside Crypto's Wild Rise and Staggering Fall
by Zeke Faux
amazon.com/Number-Go-Up-Cryptos-Staggering/dp/0593443810
Video Suggestions
[12.46] That’s the big issue ………….. replace artists.
[18.07] Google Bard ……………. Paper itself.
On this week’s episode of Grow Money Business we revisit a mailbag question from a few months back: should you be investing in precious metals? Join us as we talk about whether we should include precious metals in our investment portfolios, the pros and cons of doing so, the different ways you can invest in precious metals, and more.
[05:34] Investing in gold – Grant starts off the conversation by explaining the history of investing in gold.
[14:12] Gold standard – Grant describes how the U.S. decided to abandon silver and move to the gold standard.
[20:17] The Great Depression – Grant shares how the Great Depression impacted the gold standard.
[26:00] Sensibility – Grant explains why it doesn’t make a lot of sense to invest in precious metals as part of your portfolio.
[32:00] Investing – Grant shares how you can invest in precious metals, should you choose to.
Resources
Gold standard
en.wikipedia.org/wiki/Gold_standard
The Gold Standard Throughout U.S. History
learn.apmex.com/learning-guide/history/the-gold-standard-throughout-u-s-history/
Historically, business growth was heavily dependent on the ability to obtain a bank loan. Over the last few decades, there have been a lot of advancements in the ways that companies can raise capital for growth. On this week’s episode of Grow Money Business we are joined by Karl Dakin, who is a long-time expert in capital raising for small companies. Join us as we dive into the common errors entrepreneurs make when raising capital, deal structures, bank loans for capital raising, market competition & innovation, and more.
[07.39] Raising money – Karl explains the process of raising money from investors.
[12.34] Deal structures – Karl explains the deal structures he typically recommends for entrepreneurs.
[23.08] Bank loans – Grant and Karl discuss why bank loans are not always the best option.
[31.44] Accredited Investor – Karl explains why raising money from an accredited investor is the easiest thing you can do.
[33.25] Mistakes – Karl shares some common mistakes entrepreneurs make when they raise capital.
[38.41] Innovators – Karl explains how innovation is one of the primary ways to make the world a better place.
[44.45] Market competition –Karl and Grant discuss how market competition brings the best products to the world.
Resources
dakincapital.com/
linkedin.com/in/karldakin/
Karl's Newsletter
https://www.linkedin.com/newsletters/7136372056836734976/
https://dakincapital.com/news
Index funds are popular investments and come highly recommended by many people. While they are generally a solid investment option, it is still important to have a prudent portfolio and process when making investment decisions for yourself. This week’s episode of Grow Money Business is all about how to select index funds. Join as we discuss decision-making when investing, what we should look for in index funds, mutual funds & ETFs, and more.
[05.38] Decision making – Grant shares some tips for making the best investment decisions for your portfolio.
[13.22] Active management – Grant describes how the active management process works.
[20.09] What to look for – Grant explains what we should be looking for in an index fund.
[22.30] Mutual fund vs. ETF – Grant describes the difference between a Mutual Fund and an Exchange-Traded Fund.
[30.25] Asset location – Grant shares some important notes about asset location, which is the fourth step of the portfolio in choosing an index fund.
Resources
What Are Index Funds?
investopedia.com/terms/i/indexfund.asp
Bid–ask spread
en.wikipedia.org/wiki/Bid%E2%80%93ask_spread
Asset Allocation vs. Security Selection: Their Relative Importance
rpc.cfainstitute.org/en/research/cfa-digest/2013/05/asset-allocation-vs-security-selection-their-relative-importance-digest-summary
Social Security retirement benefits are crucial for millions of Americans, but the system and the formula for calculating benefits are complicated. After applying for Social Security payments, some individuals get a clawback letter stating that they owe the government money. On this week’s episode of Grow Money Business, Dr. Laurence Kotlikoff returns to the show to discuss his new book ‘Social Security Horror Stories,’ which reveals the dark side of social security. Throughout the episode we discuss social security as a whole, the steps you need to take once you receive a clawback letter, and more.
[07.06] Social Security Horror Stories – Laurence starts off the conversation by explaining how he came to write the book ‘Social Security Horror Stories’ with Terry Savage.
[13.00] Stories – Laurence walks us through some of the horrific stories of people who were victims of social security nightmares.
[24.51] Appealing – Grant and Laurence talk about the social security appeal process and what you need to look out for.
[36.47] Taking action – Laurence shares his idea on why people are not taking action against the injustice of the Social Security Administration.
[48.34] Advice – Grant and Laurence talk about why you should be hesitant take advice from anyone who works in Social Security.
[57.08] Writing – Laurence talks about his writing career with Forbes Business magazine.
[01.10.53] Personal security account system – Laurence explains how a personal security account system works.
[01.21.26] Global market portfolio – Laurence expresses his thoughts on why he thinks the world's financial system is going to yield a good return over a long period.
Resources
maximizemysocialsecurity.com/
maxifiplanner.com/
Social Security recipients struggle to pay back agency after unexpected overpayments
youtube.com/watch?v=sIYsZw0PtlI
Social Security Horror Stories: Protect Yourself from the System -- and Avoid Clawbacks
by Laurence Kotlikoff
amazon.com/Social-Security-Horror-Stories-Clawbacks/dp/B0CMN3H4N7
Connect with Laurence Kotlikoff
LinkedIn - linkedin.com/in/laurencekotlikoff/
Twitter - twitter.com/Kotlikoff
Website - kotlikoff.net/
Since 2023 is coming to an end, we’ve dedicated this week’s episode of Grow Money Business to discussing five year-end financial moves you should consider making. Join us as we talk about gifting both to charity and beneficiaries, cash distributions from businesses, Roth conversions, and harvesting tax losses and gains.
[05.00] Charity – Grant starts off the conversation by discussing charitable gifts.
[06.37] Donor-advised fund – Grant explains the details of a donor-advised fund.
[12.00] Tax professional – Grant shares the importance of collaborating with your tax professional at the end of the year.
[17.00] Roth conversions – Grant explains why it might be a good idea to convert your assets into a Roth IRA account.
[26.04] The wash sale rule – Grant review the details of the wash sale rule.
[29.18] Tax gains – Grant shares some important year-end information on tax gains.
Resources
How To Use the 0% Tax Rate on Capital Gains
thebalancemoney.com/how-to-use-the-zero-percent-tax-rate-on-capital-gains-2388995
Donor-advised Funds
irs.gov/charities-non-profits/charitable-organizations/donor-advised-funds
fidelity.com/learning-center/wealth-management-insights/gift-and-estate-tax-changes
This week’s guest on Grow Money Business is Alex Perny. Alex is a business development specialist at Advanta IRA, a leader in self-directed account administration. He is also the host of Advanta IRA’s podcast, The Alternative Investment Advantage. For more than ten years, he has provided assistance to a large number of clients in their investment endeavors, specifically in the areas of precious metals, real estate syndications, private stock offerings, promissory notes, and various other alternative assets. Having extensive expertise in the domain of self-directed investing, he has delivered presentations to thousands of investors nationwide, elucidating the utilization of retirement plans for investment purposes beyond the realm of the stock market. Join us as we dive into Alex’s career journey, Advanta IRA, alternative investments, prohibited transactions, and more.
[06.01] Alex’s story – Alex starts the conversation by walking us through his career journey and his role at Advanta IRA as a business development specialist.
[12.10] Advanta IRA – Alex explains the history of an IRA & 401(k) and what Advanta IRA does.
[18.12] Alternative investment – Alex discusses the process of starting an alternative investment in Advanta IRA.
[29.45] Financing IRA properties – Alex shares some recommendations for financing IRA properties.
[35.00] Prohibited transactions – Alex and Grant discuss things that you are not allowed to buy and the transactions that are prohibited when it comes to an IRA.
[46.08] Penalties – Alex shares the penalties for violating prohibited transaction rules.
Resources
How a Self-Directed 401(k) or IRA Works
investopedia.com/retirement/doing-it-yourself-selfdirected-401k-and-ira/
THE POWER OF A SELF-DIRECTED IRA
advantaira.com/
Connect with Alex
LinkedIn - linkedin.com/in/alex-perny-cisp-628b8a104/
Are you concerned about getting your non-public information compromised? We dedicated this week’s episode of Grow Money Business to discussing what to do if your personal information is misplaced or compromised in some way. Join us as we dive into how people can take advantage of your personal information, both yours and banks' responsibilities to mitigate events like this from happening, the credit reporting agencies, how a credit freeze can be of help in a situation like this, how to improve your credit, and more.
[05.31] Misplacing personal information – Grant starts the conversation by explaining what other people can do with your misplaced personal information.
[10.31] Responsibility – Grant talks about what the banks do to stop fraud from happening and what you can do to help them.
[12.24] Reporting agencies - TransUnion, Equifax, and Experian are the three credit reporting agencies in the USA.
[18.00] Credit freeze – Grant explains how a credit freeze works, along with its advantages.
[24.26] Equifax – We talk about the Equifax data breach in 2017, which exposed the personal information of more than 140 million US citizens.
[32.27] Improve credit – Grant shares some steps you need to take to improve your credit.
Resources
Credit Freeze
experian.com/freeze/center.html
equifax.com/personal/credit-report-services/credit-freeze/
transunion.com/credit-freeze
Identity thieves crack major Experian security flaw, access customer credit reports
techradar.com/news/identity-thieves-crack-major-experian-security-flaw-access-customer-credit-reports
annualcreditreport.com/index.action
What Is a Credit Score? Definition, Factors, and Ways to Raise It
investopedia.com/terms/c/credit_score.asp
This week’s guest on Grow Money Business is Chris Younger. Chris is the CEO and co-founder of Class VI Partners, an investment bank in Denver, Colorado, specializing in assisting business owners in reaching their full potential during what is arguably the most difficult period of their lives. He is a graduate of Miami University and Harvard Law School and is also the author of the book ‘Harvest: The Definitive Guide to Selling Your Company’. Chris joined us today to talk about the things to be aware of when you are planning on stepping out of your business, what the first steps are, growing value, mistakes you make, the impact of inflation and interest rates, and more.
[05.00] Chris’s story – Chris starts the conversation by sharing his career progression.
[12.14] General wisdom – Chris shares some general wisdom for business owners when it comes to selling their businesses.
[19.20] Less dependent – Chris and Grant discuss the importance of your business being less dependent on you as a business owner.
[25.26] Landscape – Chris shares some important considerations for hiring a business broker.
[34.21] Private equity – Chris and Grant discuss how the current higher rate of inflation and interest impact private equity behavior.
[39.16] Timing – Chris discusses timing in selling a business: personal timing, business timing, and market timing.
[43.23] Stories – Chris stresses the importance of in-depth planning for getting out of your business.
Resources
NAVIGATE FROM SCALABLE TO SALEABLE
classvipartners.com/
Harvest: The Definitive Guide to Selling Your Company
amazon.com/Harvest-Definitive-Guide-Selling-Company/dp/1432712306
ITR Economics
itreconomics.com/
Do you struggle with interpreting financial disclosures and statements? If so, this week’s episode of Grow Money Business is for you. We dedicated this episode to discussing a specific mailbag question, which is a guide to understanding financial disclosures and statements. Throughout the conversation, we dive into the framework for financial disclosures, the purpose of annual reports, how to interpret those as an employee, investor, owner, potential buyer, and more.
[06.05] Money and capital – Grant starts the conversation by explaining how the process of growing a company works.
[11.12] 10-K & 10-Q – Grant walks us through what is contained in the 10-K and 10-Q reports.
[16.27] Stories – Grant talks about the gamesmanship to influence the stock price that aligns with the personal interests of a company.
[22.54] Vista Outdoor Inc. – We dive into the details of Vista Outdoor Reports Second Quarter FY24 Financial Results.
[30.37] Valuing a business – Grant explains what to look out for in an income statement if you are interested in valuing a business.
[33.37] Balance sheet –Grant discusses the many roles of a healthy balance sheet.
Resources
Vista Outdoor Reports Second Quarter FY24 Financial Results
thefishingwire.com/vista-outdoor-reports-second-quarter-fy24-financial-results/?mc_cid=98e55f781d
THE BEGINNER’S GUIDE TO READING & UNDERSTANDING FINANCIAL STATEMENTS
online.hbs.edu/blog/post/how-to-read-financial-statements
Beginners' Guide to Financial Statement
sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguide
The Corporate Transparency Act (CTA) is federal legislation in the United States that seeks to enhance transparency related to business ownership. The legislation was passed in January 2021 and gave rise to a new reporting obligation called the beneficial ownership information report, which is expected to be delivered in 2024. On this week’s episode of Grow Money Business, Kenny Dettman returns to the show to talk about a wide range of details about the new legislation. Join us as we dive into what CTA is, who is eligible, who is exempt from it, reporting requirements, the penalties for not having the report, and more.
[04.45] CTA – Kenny starts the conversation by defining the Corporate Transparency Act (CTA).
[10.31] The reason – Kenny explains the reason behind the CPA legislation and how it’s going to affect some types of businesses.
[20.47] The impact – Kenny shares FinCEN’s estimates of businesses that will be affected by the new legislation.
[28.22] Deadline – Grant and Kenny discuss deadlines for filling out the BOI report.
[40.15] Creating awareness – Kenny shares some ways people can learn about new and changed legislation.
[48.00] Who should talk to you – Kenny explains who employers that run businesses under a revenue of $5 million should talk to about the new legislation.
Resources
Beneficial Ownership Information Reporting
fincen.gov/boi
Corporate Transparency Act: What Companies Need to Know
corpgov.law.harvard.edu/2021/02/18/corporate-transparency-act-what-companies-need-to-know/
Connect with The FileForms Team
PHONE: +1 (888) 515-FILE (3453)
EMAIL: charles@fileforms.com
WEB: https://fileforms.com/
The SECURE 2.0 Act of 2022 is a piece of legislation that passed at the end of last year and created new Roth options for business-sponsored retirement plans. There will be a new set of Roth features available for organizations that offer 401K, SEP IRA, or a simple IRA for their employees. Join us as we dive into the changes that you should know about, what additional Roth options you're going to have available at your disposal in the future, when people can expect to have these new features available, and whether it makes sense for you to offer them to your employees or take advantage of them for yourself.
[05.50] A catch-up contribution – Starting the conversation, Grant explains the catch-up contribution and the changes that might happen in 2025.
[10.40] The difference – Grant talks about the difference between the Safe Harbor 401(k) plan and the Safe Harbor non-elective Contribution.
[16.50] (SEP) IRA & Simple IRA – Grant explains how Simplified Employee Pension and SIMPLE IRA Plans work.
[23.12] Roth treatments – We discuss how Roth treatments can be a helpful tool for your employees that wasn’t available before.
[28.47] Opposites – Grant explains how Roth accounts are the exact opposite of deferred tax setups.
Resources
What You Need to Know About the SECURE Act 2.0
lordabbett.com/en-us/financial-advisor/insights/retirement-planning/what-you-need-to-know-about-the-secure-act-2-0.html
SECURE 2.0 Act of 2022
Title I – Expanding Coverage and Increasing Retirement Savings
finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-22%20FINAL.pdf
Your Complete Guide to the SECURE 2.0 Act of 2022
adp.com/spark/articles/2023/04/your-complete-guide-to-the-secure-20-act-of-2022.aspx
Patrick Esposito is an entrepreneur, business executive, attorney, advisor, and author. He currently serves as president of ACME General Corp., a leading public-sector innovation advisory business based in New York, Austin, and Morgantown. He recently launched Initiative Labs LLC to help small and medium-sized business leaders. Over the course of more than two decades, he has founded, led, and advised small and medium-sized enterprises in technology, consulting, retail, banking, real estate, and other sectors, in addition to U.S. government agencies. He joined us today to talk about his book ‘The Structure of Success: A Framework to Help Build Your Business Better’ where he discusses the eight levers of long-term business success that he identified working with many organizations.
[03.32] Patrick’s story – Starting the conversation, Patrick shares an introduction about himself, his career journey, and the lead to writing his book ‘The Structure of Success.’
[09.37] The Structure of Success – Patrick dives deep into the framework of his book.
[14.38] Disasters – All kinds of disasters can affect a business. We talk about the factors, including disaster management and prevention, in Patrick’s book.
[21.42] The important things – You have to start doing the most important things for your goal rather than chasing the things that are less important to get to your goal.
[29.17] The difference – Patrick explains how his book differs from other books about success in business.
[37.00] Innovation – Patrick shares his idea about people repeatedly underestimating the importance of continuing innovation.
[43.20] Productive worrying – When you are operating a business, worrying comes naturally. If you can direct your worry into productive worry, you can figure things out easily.
Resources
LinkedIn - linkedin.com/in/patrick-esposito/
Website - patrickesposito.com/
initiativelabs.com/
acmegeneral.com/
Book by Patrick
The Structure of Success: A Framework to Help Build Your Business Better
amazon.com/Structure-Success-Framework-Business-Better/dp/1639090185
We dedicated this week’s episode of Grow Money Business to discussing inflation and how it might affect your retirement plan. Throughout the episode, we dive into technicalities in detail, research what the data tells us, incorporate this concept into your retirement planning, the 4% rule, Monte Carlo simulations, stocks and bonds in inflation, and more.
Show Notes
[05:44] 4% Rule – Grant starts the conversation by explaining the 4% rule for retirement and how it enables you to live comfortably.
[14:55] Monte Carlo simulations - The Monte Carlo simulation is a mathematical method used to estimate the range of outcomes for a random process. This technique is used by computer systems to look at historical data and generate multiple possible outcomes from a single decision.
[21:35] 3% rate of inflation – Grant explains how you can use a 3% interest-bearing account with the extra money from your pension and how it can be useful for future inflation.
[31:45] Monte Carlo for retirement planning – Grant explains how useful Monte Carlo simulations can be for retirement planning.
[35:24] Stocks and bonds – Grant describes how high inflation affects stocks and bonds.
Resources
How Sequence-Of-Inflation Risk Impacts Retirees Beyond Just Sequences Of Returns
kitces.com/blog/sequence-of-inflation-risk-retirement-investment-monte-carlo-technology/
4% rule about how much to spend each year of retirement no longer works, creator says
usatoday.com/story/money/personalfinance/retirement/2022/05/20/retirement-4-percent-spending-rule-no-longer-works/50251755/
We are rapidly approaching the annual enrollment period for Medicare Advantage plans, and if you need to enroll, it’s important that you have a thorough knowledge of Medicare before doing so. This week on the show, we are joined by Christian Worstell. Christian is an author, writer, journalist, and health insurance specialist for helpadvisor.com, where he writes and publishes content about public health systems for anyone over 65. Throughout the conversation, we dive into Medicare enrollment, eligibility, enrollment windows, the differences between parts A, B, and D, and more.
[04.51] Medicare – Grant and Christian start the conversation by defining Medicare and it’s two sectors.
[12.39] Initial enrollment – Christian explains the initial enrollment process for Medicare and what happens if you fail to enroll during that period.
[19,35] Social Security and Medicare – Grant and Christian talk about how social security affects the automatic enrollment in Medicare.
[25.05] Advantage vs. supplemental – Christian describes the key differences between Medicare Advantage and Medicare Supplemental.
[31.50] Medigap – Grant and Christian discuss what happens when you decide to disenroll or change your Medigap plan.
[39.50] Original Medicare – Christian describes the geographical advantage you have if you choose an original Medicare plan.
[45.11] Mistakes – Christian shares some top mistakes people make when enrolling in Medicare.
[50.00] Status – Grant and Christian discuss the current status of Medicare.
Resources
helpadvisor.com/
medicaresupplement.com/
medicareadvantage.com/
This week’s episode of Grow Money Business is all about US government debt. We dive into this from the perspectives of investors, the government, and the citizens of the US. Join us as we discuss using T-Bills as an alternative to cash in your bank account, the purpose of an emergency fund, TIPS and I-bonds, the US dollar as the reserve currency, and more.
[05.38] Using Treasury bill – Grant starts the conversation by explaining how T-Bills work as an alternative to cash in your bank account.
[09.56] Emergency fund – Grant shares why you shouldn’t take too much from an emergency fund and lock it up over a long period of time.
[14.25] TIPS and I-Bonds – Grant explains why neither I-bonds nor Treasury Inflation-Protected Securities comprise a huge portion of all the US government debt.
[21.22] US federal debt – We discuss the current condition of US federal debt and what will happen in the future if this behavior continues.
[30.00] The reserve currency – US dollar is the reserve currency in the world. Grant shares what will happen if the status of the US dollar is threatened as the reserve currency.
Resources
treasurydirect.gov/
Treasury Inflation Protected Securities (TIPS)
treasurydirect.gov/marketable-securities/tips/
Federal Debt: Total Public Debt as Percent of Gross Domestic Product
fred.stlouisfed.org/series/gfdegdq188S
Debt-to-GDP Ratio: How High Is Too High? It Depends
stlouisfed.org/open-vault/2020/october/debt-gdp-ratio-how-high-too-high-it-depends
This week on Grow Money Business our guest is Jeff Trapp, who is a tax strategist and the founder of Tax Planning Pros. Jeff has devoted his career to assisting business owners in reorienting their perspectives towards their taxes, their companies, their wealth, and the legacy they will leave behind. He has saved clients thousands of dollars through innovative tax tactics and preparation. Jeff joined us today to talk about top tax planning strategies for business owners, common mistakes, how to reduce your chances of getting audited, general tax savings tips, and more.
[05.35] The importance of tax planning –Jeff starts the conversation by explaining the importance of tax planning.
[13.24] Oil & gas investing – Jeff explains the benefits of oil and gas investing.
[17.56] Common mistakes – Grant and Jeff discuss some of the most common mistakes people make.
[21.01] Clean books – Grant and Jeff describe the importance of keeping clean books and records when it comes to calculating correct deductions.
[32.41] Tax laws – Jeff shares his opinion on planning long-term perspectives with constantly changing tax laws
[38.15] The future – Jeff describes his vision for helping business owners create additional cash flow and create a long-term wealth legacy for them and their families.
Resources
Connect with Jeff
LinkedIn - linkedin.com/in/jeffntrapp/
Facebook - web.facebook.com/TaxPlanningPros/
Podcast - podcasts.apple.com/us/podcast/the-jeff-trapp-podcast/id1628629412
Website - thetaxplanningpros.com/
Annuity policies are relatively popular ways to guarantee income in retirement. But do you know how and when to get out of an annuity policy if you find it’s not the best option for you? We dedicated this week’s episode of the Grow Money Business podcast to discussing the situations where it makes sense to start an annuity, where it is a good thing to hang on to your current annuity, and when you should think about getting out of your annuity.
[05.55] Forms of annuities – Starting the conversation, Grant explains some forms of annuities and how they work.
[12.15] Expenses – Grant explains why variable annuity accounts are more expensive than mutual funds.
[21.03] Control – We talk about the less control you have over your cash once you hand it over to the insurance company and what you have to keep in mind if you ever think of getting out of your annuity.
[27.21] Surrender charges – Grant explains what you should look into when you are in the surrender period of your annuity.
[32.54] Tax ramifications – Grant shares how tax ramifications are more complicated than surrendering the annuity policy.
Resources
Breaking Down Annuity Fees and Charges
smartasset.com/retirement/annuity-fees
Annuity Fees and Commissions
annuity.org/annuities/fees-and-commissions/
Annuity Surrender Periods: Understand (and Avoid) Surrender Charges
thebalancemoney.com/annuity-surrender-period-charges-and-tips-to-pay-less-315092
It’s Mailbag Day! We are back with one of our rare episodes where we answer questions from our listeners. Join us as we dive into selected three questions from our mailbag: whether annuities make more sense today because interest rates are a little higher, how to determine whether your financial plan is actually working for you and whether we should be concerned about the stock market with the news that Michael Berry has just placed a lot of money in short positions, betting against it.
[03.22] Annuities – Starting the conversation, Grant defines both annuities and the most basic form of annuity, which is called a single premium immediate annuity.
[08.52] Interest rates - Grant explains why he thinks that higher interest rates don’t make annuities more attractive than before.
[15.18] Financial plans – Life evolves. You have to revisit the plans you previously made and make sure they are suitable for the current changes in your life.
[20.16] The Confidence - To have a successful financial plan everybody in your house should feel confident about where you are heading and what you are doing.
[23.37] The Big Short - Michael Lewis's best-selling book of the same name was adapted into a 2015 Oscar-winning film titled The Big Short, based on the collapse of the housing bubble in 2007 and 2008.
[31.22] Shorting the Market – Grant shares his idea of Michael Burry shorting the market.
Resources
Understanding The Role Of Mortality Credits – Why Immediate Annuities Beat Bond Ladders For Retirement Income
kitces.com/blog/understanding-the-role-of-mortality-credits-why-immediate-annuities-beat-bond-ladders-for-retirement-income/
What You Need To Know About Annuities And Interest Rates
forbes.com/sites/bobcarlson/2023/01/19/what-you-need-to-know-about-annuities-and-interest-rates/?sh=6907d50c5061
Michael Burry, of ‘Big Short’ fame, just bet $1.6 billion on a stock market crash
edition.cnn.com/2023/08/15/investing/michael-burry-stock-market-crash/index.html
Michael Burry is Shorting the Market (Again) and Selling These 10 Stocks
finance.yahoo.com/news/michael-burry-shorting-market-again-210648498.html
House investments are not for everyone. It depends on your foundation because, at the end of the day, it’s highly personal. We dedicated this week’s episode of the Grow Money Business podcast to house investments. Join us as we dive into the arguments for and against considering your house as an investment, who would be eligible to do it, situations where you should consider your house as an investment versus the circumstances where you shouldn't, and more.
[03.22] Equity – Starting the conversation, Grant explains how you can build equity by considering your house as an investment.
[08.20] Budget & savings – We dive into why we might not want to confuse a housing budget with investment savings.
[12.42] Is this right for you? - House investing is not for everyone. At the end of the day, it’s personal.
[17.33] Foundation – We talk about what might be the best decision regarding house investments based on your background.
[22.40] Affordability – Grant explains the current condition of the housing market.
Resources
Experts say you shouldn't consider your home an investment, but I disagree for 5 reasons
businessinsider.com/personal-finance/reasons-consider-home-an-investment-2021-11
Is a primary home an investment or just a predictable place to live?
themortgagereports.com/49267/is-a-primary-home-an-investment
Topic No. 701, Sale of Your Home
irs.gov/taxtopics/tc701
We dedicated this week’s episode of the Grow Money Business podcast to inflation. A few years ago, inflation was incredibly low, but for the past 15 months, it has made its presence known in a constantly positive way. Join us as we dive into the current inflation numbers, why we need to pay attention, what we can expect with the inflation, a possible recession in the future, and more.
[04.28] Measuring inflation – Starting the conversation, Grant explains how the government measures inflation.
[09.26] Interest rates – We talk about how increasing interest rates typically puts inflation on the brakes.
[14.08] Deflation – Why a little bit of inflation is good for the economy
[20.02] The impacts – We dive into the impacts of higher interest rates.
[27.01] Corporate real estate – Grant explains what might happen with large commercial real estate loans when the interest rates reset.
[31.50] Possible recession – We dive into the possibility of a future recession because of the high interest rates.
Resources
Consumer Price Index
bls.gov/cpi/
Rates Are Up. We’re Just Starting to Feel the Heat.wsj.com/personal-finance/interest-rates-investing-mortgage-banks-real-estate-debt-ca87c251?mod=economy_lead_pos1
Job Gains Eased in Summer Months; Unemployment Increased in Augustwsj.com/economy/jobs/jobs-report-august-today-unemployment-economy-de847415
The Generational Paradigm Shift Taking Over Marketswsj.com/finance/investing/the-generational-paradigm-shift-taking-over-markets-e1e7d4e6
We dedicated this week’s episode of the Grow Money Business podcast to the Monte Carlo simulation. When multiple possible outcomes are possible due to the presence of random variables, a Monte Carlo simulation can be used as a model to forecast their probabilities. Join us as we dive into what Monte Carlo simulation is, where it comes from, the assumptions that are used in this kind of analysis, and how much trust we can put in these kinds of analyses when we are making decisions regarding retirement.
[04.31] 4% withdrawal rule – Starting the conversation, Grant explains how the 4% withdrawal rule works and why it’s not realistic.
[08.46] eMoney Advisor - A leading provider of technology solutions and services that help people talk about money.
[17.16] Success versus failure – Grant explains why he doesn’t like the title Chance of Success versus Chance of Failure.
[23.03] Form of analysis – We talk about the importance of not relying only on Monte Carlo simulations and taking a look at things like cash flow implications and tax ramifications.
[27.01] Different options – Grant explains how to sort out the best form of analysis according to your background.
Resources
Monte Carlo Simulation — A Practical Guide
towardsdatascience.com/monte-carlo-simulation-a-practical-guide-85da45597f0e
Opinion: Should you use a Monte Carlo simulation to determine if your retirement savings will last?
marketwatch.com/story/should-you-use-a-monte-carlo-simulation-to-determine-if-your-retirement-savings-will-last-11611607222
The Problems With Monte Carlo: Why Simulations May Not Predict Your Success in Retirement
bairdretirementmanagement.com/insight-articles/the-problems-with-monte-carlo-why-simulations-may-not-predict-your-success-in-retirement/
This week’s episode of Grow Money Business is all about the bond market and how it changes with inflation, high-interest rates, and an inverted yield curve. Join us as we dive into the yield curve, a possible recession in the future, money market funds, the TED spread, and more.
[06.12] The yield curve – Grant starts the conversation by defining the yield curve and the reasons we care about it.
[12.23] Recession – Grant shares his thoughts on the possibility of a recession.
[16.50] Money Market Funds – Grant describes difference between Money market mutual funds and other money market funds.
[21.37] TED Spread – Grant discusses how to a good measure of US credit risk by looking at the difference between LIBOR and T-Bills.
[28.15] Bonds – Grant shares the importance of having bonds in a negative economic environment.
Resources
US Treasuries Yield Curve
ustreasuryyieldcurve.com/
TED Spread - Historical Chart
macrotrends.net/1447/ted-spread-historical-chart
Current US Inflation Rates: 2000-2023
usinflationcalculator.com/inflation/current-inflation-rates/
We dedicated this week’s episode to the ongoing news about the student loan system in the US. According to the US Department of Education, the president announced new actions to provide debt relief and support for student loan borrowers. Join us as we dive into the current situation regarding student loans, what the changes to the federal student loan system are going to be, income-driven payment plans, Federal Pell Grants, public service loan forgiveness, and more.
[06.40] Income-driven payment plans – Starting the conversation, Grant explains income-driven payment plans and how it works.
[11.42] Repayment plans - Income contingent repayment, Income-based repayment, pay as you earn, and revised pay as you earn are the four repayment plans for student loans.
[12.37] Federal Pell Grants – We discuss what happened to Pell Grants, which were awarded only to undergraduate students who displayed exceptional financial need.
[18.57] SAVE repayment plan – Grant explains how the SAVE repayment plan works and how it can be a tremendous help to people.
[23.00] Public service loan forgiveness – We dive into how the public service loan forgiveness option works, which is based on employment in a public service job.
[28.00] Recertifying income – Grant shares the importance of recertifying your income if you are in a student loan repayment plan and what happens if you fail.
Resources
FACT SHEET: President Biden Announces New Actions to Provide Debt Relief and Support for Student Loan Borrowers
ed.gov/news/press-releases/fact-sheet-president-biden-announces-new-actions-provide-debt-relief-and-support-student-loan-borrowers
Income-Driven Repayment (IDR) Plan Request
studentaid.gov/idr/
How the New SAVE Plan Will Transform Loan Repayment
and Protect Borrowers
ed.gov/policy/highered/reg/hearulemaking/2021/idrfactsheetfinal.pdf
It’s been in the news recently that the rating was downgraded from the highest possible level of AAA to the next level down, AA+, by one of the three major independent organizations that evaluate creditworthiness in the US. We dedicated this week’s episode of the Grow Money Business podcast to discussing what the US Debt Downgrade Means for Stock and Bond Markets.
[03.13] The bond market – Starting the conversation, Grant explains why the bond market is way larger than the stock market.
[10.24] US government debt – We talk about why it is safe to buy US government debt.
[22.13] Has this happened before – We dive into the last time that the US government debt was downgraded.
[29.00] Investment mandates – Grant shares his knowledge about the investment mandates regarding the US government debt.
[38.49] The fault of the system - More debt means higher interest rates and a greater percentage of annual tax revenues going toward debt servicing.
Resources
Credit downgrade shocks Biden aides, as more debt fights loom
washingtonpost.com/business/2023/08/02/us-credit-rating-fitch-downgrade-debt/
U.S. debt downgrade sinks global markets — but economists are not concerned
cnbc.com/2023/08/02/us-debt-downgrade-sinks-global-markets-but-economists-are-not-concerned.html
America’s credit rating got downgraded again. Here’s what happened the last time
edition.cnn.com/2023/08/02/investing/premarket-stocks-trading/index.html
This week’s episode is all about Artificial Intelligence. Of all the new technologies that have been introduced to the world, AI seems to be the turning point for us. In this episode, we discuss what we think about AI, investing in AI, the possibility of AI technology getting out of hand, and more.
[01.55] Open AI – Starting the conversation, Grant explains open AI and the importance of open source.
[05.32] Professional replacement – Open AI responses based on what information is fed to them. You will have answers, but you won’t find a human relationship with them.
[09.22] Invest in AI – Grant shares some ways you can invest in AI.
[16.30] The right one – We talk about why we need to select the right investment and how hard it is when we hope to invest in AI.
[22.18] Superior approach – Grant shares his thoughts on investing more in value and stepping away from growth.
The SEC has just voted to make changes to the regulatory landscape that money market mutual funds must abide by. We dedicated this week’s episode to talking about cash savings options and money market mutual funds. Join us as we dive into money market mutual funds, stress testing, swing pricing, the current state of the money market, and more.
[03.18] Money market mutual funds – Starting the conversation, Grant defines money market mutual funds and how different they are from other mutual funds.
[08.34] How it works – Grant walks us through how money market mutual funds work.
[15.36] Stress testing - A bank stress test analyzes a bank's capital to see if it is capable of withstanding an economic or financial crisis.
[23.16] The SEC – Grant explains why the US Securities and Exchange Commission is looking to make more improvements to the money market fund landscape.
[25.00] Swing pricing – A tool that improves shareholder protection from the effects of dilution brought on by shareholder engagement.
[31.03] The cash – We talk about the difference between putting your money in a money market mutual fund and a local credit union savings account with the current money market evolving.
Resources
What Is an Advantage of Liquidity?
sapling.com/12011796/advantage-liquidity
U.S. Takes Third Shot at Shoring Up Money-Market Funds
wsj.com/articles/u-s-overhauls-money-market-fund-rules-in-latest-attempt-to-prevent-bailouts-2f0f2925
Insurance is something that we consider unnecessary but that happens to be very useful in certain circumstances. Business owners take a lot of risks every day. Insurance is designed to transfer those risks to them in exchange for affordable monthly, quarterly, or annual premium insurance plans. Today on the show, Grant talks about the top five insurance coverages that business owners should at least consider.
[03.20] A business decision – Starting the conversation, Grant shares why it does make sense to have insurance for your business.
[08.10] Umbrella Personal Liability Policy - An additional liability coverage that exceeds the insured's residential, auto, or other liability coverage limits.
[15.01] Business owners’ policy - A business owner's policy provides protection against all significant property and liability hazards in a single insurance policy. Grant explains what types of insurance come under this policy.
[22.03] Disability insurance – Grant explains short-term and long-term disability insurance coverage.
[28.26] Definition of disability – We talk about how the definition of disability changes according to your profession.
This week’s episode is all about Bitcoin ETFs. It has been in the news recently that the biggest investment management companies have submitted new filings to bring spot Bitcoin ETFs to market. In this episode, we dive into the current state of Bitcoin, why we should pay attention to the Bitcoin ETF filings, and whether it’s safe or not to invest in them.
[03.04] What’s on the market – Starting the conversation, Grant shares the existing Bitcoin ETFs at the moment and the difference between a mutual fund and an ETF.
[07.37] Closed-end fund – Grant shares the reason why GBTC closed-end funds are interesting.
[16.26] Cryptocurrency Futures – Grant shares how futures contracts work and what happens when the contract expires.
[21.08] The reliability – We talk about the reason why the US Securities and Exchange Commission hasn’t approved any of the filings for spot Bitcoin ETFs.
[24.55] If it happens – Grant shares his ideas on the current Bitcoin ETF companies and how you can purchase Bitcoin if the Spot ETF comes out.
Resources
Probability for U.S. Approval of a Spot Bitcoin ETF Is Fairly High: Bernstein
coindesk.com/policy/2023/07/03/probability-for-us-approval-of-a-spot-bitcoin-etf-is-fairly-high-bernstein/
THE ARRIVAL OF BLACKROCK: BITCOIN’S FIRST SPOT ETF
bitcoinmagazine.com/markets/the-arrival-of-blackrock-bitcoins-first-spot-etf
This week’s episode of Grow Money Business features Lee Phillips. Lee is a US Supreme Court counselor and Federal Tax Court attorney, specializing in asset protection using business structures like LLCs. He is the founder of LegaLees Corp., a company specializing in solving asset protection and tax problems for high-net-worth individuals. He has delivered over 3,000 event speeches across the United States, Canada, and the Pacific Rim as one of the country's most captivating and energetic presenters. More than a million people have benefited from his assistance in understanding the law and using it to increase income and safeguard assets. Join us as we dive into the genesis of LLCs in the United States, legal principles that originated in Europe in the 1400s, how they apply in today’s context, and what we should look into when protecting assets.
[02:26] Lee’s journey – Lee shares his journey to becoming a Federal Tax Court Attorney.
[12:37] Asset protection – Lee explains the reason behind having an asset protection plan.
[19:24] The charging order – Grant and Lee dive into the story of the charging order.
[33:30] LLC for real estate – Lee explains why we cannot manage the extreme number of LLCs in the real estate industry.
[42:27] LegalZoom – Lee shares his opinion on utilizing LegalZoom.
Resources
legalees.com/grant
legalees.com
This week’s episode of Grow Money Business features Dionne Perry. Dionne is an author, speaker, and board-certified Credit Consultant. Dionne has created Credit-Lit Ambassador programs to empower youth and train educators, counselors, community activists, financial advisors, and other adults on credit scoring processes. Join us as we dive into credit literacy, the FICO score, how to improve your credit score, how to handle credit disputes, and more.
[06:03] Credit Literacy – Dionne starts the conversation by sharing the backstory of how credit literacy became her passion.
[13:22] FICO score – Grant and Dionne discuss how a FICO Score evaluates a borrower's creditworthiness based on payment history, current indebtedness, types of credit used, credit history, and new credit accounts.
[20:41] Improving Credit Score – Dionne shares some of the fastest and easiest ways to improve your credit score.
[28:58] Credit Dispute – Dionne explains how the credit dispute process works.
[36:14] The Importance – Grant and Dionne discuss the importance of your credit score and how it impacts everything in your life.
Resources
Good Credit - What It Is, How To Get It, and How to KEEP It!
credit-lit.com
Credit-Lit Credit 101 for Teens
amazon.com/Credit-Lit-Credit-101-for-Teens/
People are child-free for various reasons. It’s your choice to have kids or not. This week’s episode of the Grow Money Business podcast features Jay Zigmont. Jay is a childfree wealth specialist who provides financial planning for childfree and permanently childless people. He is the founder of Childfree Wealth, which is a financial planning firm specializing in working with people who are child-free and plan to continue being child-free in the future. Join us as we talk about Jay’s philosophy on working with child-free people and the difference in the financial planning process when you don’t have kids.
[06.40] Childfree – Starting the conversation, Jay explains the reason for choosing to work with people who are childfree.
[14.34] Advice-only approach – We talk about Jay’s reason for choosing an advice-only approach and why it’s a great fit for his work.
[20.05] Assumptions – We talk about the assumptions and judgments people make when they meet a person who is childfree.
[34.32] Shifting direction – Jay shares how they make their clients shift their direction from profit motive to social life motive.
[40.00] Career choice – Jay shares how he chose to become an investment advisor to help people achieve their goals.
[44.51] Advice – We go through Jay’s advice for people who want to get into the financial industry.
Resources
Childfree Wealth https://childfreewealth.com/
Childfree Wealth Podcast https://childfreewealth.buzzsprout.com
Free copy of the book Portraits of Childfree Wealth https://childfreewealth.com/book
Connect with Jay
LinkedIn - linkedin.com/in/jayzigmont/
This week’s episode of the Grow Money Business podcast features Kenneth Dettman. He is the CEO and Managing Director at EZ-ERC. He is a highly technical CPA with extensive "big consulting" tax advisory experience. He is known as a pioneer in the Employee Retention Credit (ERC) industry, having successfully sourced and underwritten one of the first ERC tax insurance policies in the country. Kenneth was recently named an official member of the Forbes Business Council. He joined us today to talk about the ins and outs of the employee retention tax credit, who qualifies and who doesn't, how much the credit is, and what to look for if you're considering filing a claim yourself.
[02.40] Kenneth’s story – Starting the conversation, Kenneth shares his career journey, starting as an income tax advisor and then building EZ-ERC.
[09.23] Paycheck Protection Program – Kenneth explains why you are not allowed to have both a PPP loan and the employee retention credit at the same time.
[21.53] Partial suspension – Kenneth defines partial suspension.
[29.40] The right way – We dive into the details of doing partial suspension the right way without getting hooked up with an unscrupulous actor.
[38.45] The reasonable cause standard - Reasonable cost standard can protect you against penalties. It requires that you rely on somebody who's a qualified, credentialed professional.
[45.49] The handling – Kenneth explains how they handle casework as practitioners when they don’t have guidance from the IRS.
[49.02] Worker Opportunity Credit – An incentive for employers to hire disadvantaged classes of employees
Resources
IRS opens 2023 Dirty Dozen with warning about Employee Retention Credit claims
irs.gov/newsroom/irs-opens-2023-dirty-dozen-with-warning-about-employee-retention-credit-claims-increased-scrutiny-follows-aggressive-promoters-making-offers-too-good-to-be-true
IRS issues renewed warning on Employee Retention Credit claims
irs.gov/newsroom/irs-issues-renewed-warning-on-employee-retention-credit-claims-false-claims-generate-compliance-risk-for-people-and-businesses-claiming-credit-improperly
The country's leading expert in the Employee Retention Credit
ez-erc.com/
Connect with Kenneth
LinkedIn - linkedin.com/in/kenneth-dettman-cpa/
Email - info@easy-erc.com
Today’s episode of the Grow Money Business podcast is all about cash. Join us as we talk about what to do with the cash in your business, how much cash you need to have in your business, the appropriate time to take cash out of your account, how you should pay yourself as the business owner, how you can take cash out in a tax-sensitive manner, and more.
[02.21] A rainy day fund – Starting the conversation, Grant explains the importance of having an emergency fund.
[09.42] Extra Cash – How to Use Extra Cash Effectively
[15.31] Setting a target – We discuss how to set a target for an upcoming large expense.
[20.40] Pass-through entity – Grant explains how a pass-through entity works.
[27.12] C corporations – We talk about what to do with extra cash when you are the owner of a C corporation.
Resources
How to Pay Yourself as a Business Owner
nerdwallet.com/article/small-business/how-to-pay-yourself-as-a-business-owner
Salary vs. owner's draw: How to pay yourself as a business owner
quickbooks.intuit.com/payroll/salary-or-draw-how-to-pay-yourself-as-business-owner/
Traction: Get a Grip on Your Business by Gino Wickman
amazon.com/Traction-Get-Grip-Your-Business/dp/1936661837
Section 1202 of the Internal Revenue Code, focusing on Qualified Small Business Companies (QSBs) and their Qualified Small Business Stock, holds the key to potential tax savings of up to $10 million in tax-free capital gains when structured correctly. While not every company qualifies, it's crucial to consider this provision when buying or selling a business, as it can be a game-changer!
Today, let us unlock the immense potential it holds for prudent business owners seeking to navigate the complex realm of taxation and investment!
[01:16] Maximizing Tax Benefits: Exploring the Potential of Section 1202 for Small Business Owners
[03:56] Eligibility and Limitations: Understanding the Parameters of Section 1202
[08:05] Evolution of Exclusions: The Historical Development of Section 1202
[09:54] Direct Acquisition and Compensation: Requirements for Tax-Free Capital Gains
[12:21] Unlocking Growth Potential: Harnessing Section 1202 for Angel Investors and Employee Incentives
[14:32] Maximizing Tax-Free Gains: Limits and Strategies under Section 1202
[16:50] Navigating Taxable Income: Considerations and Strategies for Share-Based Compensation
[19:13] Tax-Free Growth: Exploring Opportunities for Equity Investments and Future Exits
Resources:
Understanding the QSBS Tax Exemption: northerntrust.com/united-states/institute/articles/understanding-the-qsbs-tax-exemption
A Lavish Tax Dodge for the Ultrawealthy is Easily Multiplied: nytimes.com/2021/12/28/business/tax-break-qualified-small-business-stock.html
Qualified Small Business Stock (QSBS) Definition and Tax Benefits: investopedia.com/terms/q/qsbs-qualified-small-business-stock.asp
This week’s show is all about dividend investing, which is a popular investment strategy amongst a lot of people. In the episode, we discuss what dividend investing is, where the cash comes from, and alternatives for management, such as whether to pay dividends or hang on to the cash. We also pay attention to why the strategy can seem misplaced.
[01:50] Dividend investing – Grant starts off the conversation by defining dividend investing.
[09:22] Growth and value companies – Grant shares some different growth and value companies that have growing revenues and profits at an above-average rate.
[13:35] The dividend yield – Grant explains what happens when the dividend yield becomes too high.
[23:18] Paying a dividend yield – Grant shares the reason for value companies to pay a dividend yield.
[29:15] Dividend stock – Grant explains why it’s advantageous to have some exposure to dividend stock.
[35:00] Share repurchases – Grant shares why repurchasing shares is beneficial to shareholders and why a lot of politicians are not happy with it.
If you're currently searching for financial assistance, you're likely aware that there is a wide array of practitioners available to help you. However, not all financial professionals are the same—they possess different expertise, work in diverse ways, and are compensated differently. In today's episode, we walk you through what you should look for in a financial advisor, exploring the factors that will help you choose a professional who aligns with your goals and priorities. By the end of this episode, you'll have a clearer understanding of what to look for, enabling you to confidently navigate the search for financial help.
[00:58] Decoding the Financial Puzzle: Grant unravels the benefits of hiring a financial professional.
[04:33] Unlocking Financial Potential: Grant discusses the power of professional guidance and expertise.
[10:35] The Evolution of Financial Professionals: Grant describes how the role of a financial professional shifted from stockbrokers to fiduciary advisors over time.
[07:52] Choosing a Fiduciary: Grant stresses the importance of seeking out financial guidance that puts your interests first.
[17:03] Mechanism of Compensation: Grant discusses exploring Fee-Only vs. Fee-Based models, and shares some of their implications.
[24:42] Evaluating Skills and Experience: Grant outlines the qualifications and experience we should seek in a financial professional.
[31:13] Final Tip: Grant shares one final tip on the importance of understanding service models.
Resources:
Mentioned in the episode:
CFP Professional: cfp.net/get-certified/certification-process
CFA Program: cfainstitute.org/en/programs/cfa
Investment Adviser Public Disclosure: adviserinfo.sec.gov/
Company Retirement Plans: abovethecanopy.us/the-ultimate-7-step-checklist-for-hiring-a-financial-advisor/
In the past few weeks, we have been in a banking environment where lenders are running into problems that started at Silicon Valley Bank six weeks ago. Today on the show, we are going to talk about the situation of the banks, the risks, and, more importantly, what you should do if you are concerned about the viability of your bank. We will also cover FDIC insurance, what’s covered and not covered in it, the limits on different types of accounts, the difference between banks and credit unions, a few strategies you can use to protect your cash, and more.
[04.43] Silicon Valley Bank – Starting the conversation, Grant explains what happened to Silicon Valley Bank in a nutshell and why its customers are at risk.
[11.50] FDIC insurance – We discuss why we shouldn’t rely on the FDIC or the federal government to cover insurance above $250,000.
[17.42] The rules – Grant dives into the rules of FDIC insurance.
[24.37] Other institutions – Grant shared why he is not a fan of other institutions like JPMorgan Chase & Co. and Wells Fargo.
[31.44] Office buildings – We talk about how office buildings’ value is falling dramatically in commercial real-estate space.
[35.28] SIPC - Securities Investor Protection Corporation is the brokerage affiliate of the FDIC.
Resources
Fed report blames SVB execs — and itself — for bank's failure
msn.com/en-us/money/other/fed-report-blames-svb-execs-and-itself-for-bank-s-failure/ar-AA1aufuL
Deposit Insurance At A Glance
fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance/
The debt ceiling has made its way into the news recently, with reports saying that the USA has reached the federal debt limit. In today’s episode, Grant is going to discuss what the debt ceiling is, the reason for having a debt ceiling in the USA, and what kind of consequences there will be if the government is unable to come to an agreement.
[04.18] The debt ceiling – Starting the conversation, Grant explains the reasons why only a few countries in the world have debt ceilings.
[10.43] Removing debt ceiling – Grant shares why he thinks the debt ceiling should be removed.
[16.00] Run out of money – We talk about what happens when the US government runs out of money.
[22.40] The last time – We talk about what happened the last time when the debt ceiling passed the limit.
[27.15] Stability – Grant explains why 50–60% of the world’s trade transactions happen in US dollars.
Resources
White House regroups after McCarthy’s debt ceiling success –
politico.com/news/2023/04/27/white-house-regroups-mccarthy-debt-ceiling-success-00094273
Explaining the U.S. Debt Limit and Why It Became a Bargaining Tool –
nytimes.com/2021/09/27/us/politics/us-debt-ceiling.html
The fight over the debt ceiling could sink the economy. This is how we got here –
npr.org/2023/03/23/1163448930/what-is-the-debt-ceiling-explanation
So much of running a successful business is related to an entrepreneur’s mindset. This week on Grow Money Business, we are joined by Alicia Cramer, who is a business mindset expert, a certified hypnotherapist, and a metaphysical practitioner. Alicia is also a sales and marketing consultant with an extensive business development background who helps small business owners manage their own mindsets and set themselves up for success. Alicia joined us today to talk about some of the tools she uses, the psychology and physiology behind why they're important, and some of the tips you can use to optimize your mind and maintain it for long-term success.
[05.22] Focusing on small businesses –Alicia starts the discussion with sharing her journey to becoming a business mindset coach and hypnotherapist.
[12.52] Therapeutic methods – Grant and Alicia discuss some of the methods that helped Alicia overcome past traumatic experiences.
[22.14] EFT – Alicia defines the Emotional Freedom Technique and describes how it works.
[27.46] Hypnotherapy vs. Normal Therapy – Alicia explains the difference between hypnotherapy and normal therapy.
[36.35] Simple tools – Alicia discusses some common self-improvement tools and shares some tips for finding the best options that work for you.
[48.50] Imposter syndrome – Grant and Alicia close the discussion by discussing imposter syndrome, how it may affect business owners, and how to overcome it.
Resources
Connect with Alicia
Website - aliciacramer.com/
LinkedIn - linkedin.com/in/aliciacramer/
Recently, there has been a rumor circulating that the US dollar is losing its status as the reserve currency. In this week’s episode of Grow Money Business, we discuss the security of the US dollar remaining the world’s reserve currency, the background of the concerns, the macroeconomics of the situation, and more.
[04.18] World’s reserve currency – Grant starts the conversation by explaining the economic benefit of residing in a country that has the world’s reserve currency.
[06.25] US dollar in the world – We discuss some of the reasons why the world deals in US dollars.
[12.39] Central banks – Grant explains why other countries’ central banks are borrowing US dollars.
[18.10] Holding the US dollar – We discuss the reasons other countries hold the US dollar.
[26.23] Losing reserve currency status – We discuss what will happen if US dollars lose their status as the world’s reserve currency.
Resources
The U.S. Dollar as the World’s Dominant Reserve Currency – crsreports.congress.gov/product/pdf/if/if11707
US Dollar Share of Global Foreign Exchange Reserves Drops to 25-Year Low – imf.org/en/Blogs/Articles/2021/05/05/blog-us-dollar-share-of-global-foreign-exchange-reserves-drops-to-25-year-low
Foreign Exchange Reserves: What They Are, Why Countries Hold Them – investopedia.com/terms/f/foreign-exchange-reserves.asp
In this week’s episode, our guest is Rachael Burns. She is a certified financial planner and a certified divorce financial analyst. She helps women navigate the financial intricacies of divorce and widowhood. Rachel is the proprietor and financial planner at True Worth Financial Planning. She joined us today to share her wisdom about the financial implication of getting a divorce and some things women need to keep in mind before entering that phase, especially business owners.
[04.47] Repeating mistakes – Starting the conversation, Rachael explains some of the common mistakes women make when going through a divorce.
[15.51] Community property states – Rachael explains community property.
[25.37] Common misconception – We go through the common misconceptions people have regarding getting financial advice from their attorney and why the advice is better when everyone stays in their lane.
[38.07] Focusing on women – Rachael shares why she was focused on women in general instead of newly single women at first.
[45.34] Stable income – We dive into how easy it is to go through starting a new business if your partner has a stable income because doing startups means taking risks.
[50.50] Needs of the client – Rachael walks us through how her profession can make sure to fulfill the needs of her clients herself instead of being limited to tools when working for another big firm.
Resources
Connect with Rachael:
LinkedIn - linkedin.com/in/rachaelvburns/
Website - trueworthfp.com/
xyplanningnetwork.com/
This week’s episode of the Grow Money Business podcast features Dohn Thornton. He is a specialist in estate planning and joined us today to share his specific strategy to help business owners and real estate investors minimize taxation on their assets. Throughout the conversation, we cover Dohn’s background, the copyright story of the trust, the leaseback strategy, state taxes, and more.
[03.52] Dohn’s background – We start the conversation with a brief introduction to Dohn’s background.
[14.52] The copyright – We go through the story about the copyright of the trust.
[25.25] Leaseback strategy – Dohn defines the leaseback strategy and how it works.
[35.51] Own expenses – Dohn explains how the trust pays a third party in terms of the expenses of the trustee.
[44.31] State taxes – Dohn dives into how Internal Revenue Code Section 501(c)(3) relates to state taxes in the USA.
Resources
This FREE eBook Will Potentially Save You Hundreds Of Thousands Of Dollars Or More On Your Taxes
thespendthrifttrust.com/
Connect with Dohn
LinkedIn - linkedin.com/in/dohn-thornton-26863b184/
Website - dohnthornton.now.site/home
This week’s episode of the Grow Money Business podcast features Wendy Barlin. She is an accountant for a CPA and worked in different accounting firms before starting her own firm after her move to Los Angeles. In today’s conversation, we talk about minimizing business owners’ taxation, handling cash, entity structure, and more.
[02.22] Wendy’s background – Starting the conversation, Wendy shares her story of moving to America in 1997 and how she worked hard to start her own firm.
[06.37] Reasonable compensation – Wendy defines reasonable compensation and how she helps people decide a reasonable compensation on the basis of industry to industry.
[14.34] Distributing cash – We talk about how business owners should think about taking money out of their business account and putting that cash on a personal bank account.
[23.29] Collaborating – Wendy shares how she collaborates with her clients.
[30.00] Attracting newcomers – We talk about why attracting newcomers to the accounting industry is a challenge.
[37.11] Observations – Wendy shares her observations of the financial advisory industry at present.
Resources
Book by Wendy Barlin
NEVER BUDGET AGAIN: 5 Simple Strategies to Manage Your Money Without a Budget Kindle Edition
https://www.amazon.com/dp/B08CT37DB1/ref=sr_1_1
That’s Deductible!: Simple Tips and Tricks to Find More Business Tax Deductions
amazon.com/Thats-Deductible-Simple-Business-Deductions/dp/1692760025/ref=sr_1_1
https://wendybarlin.com/
This week’s episode is all about the Silicon Valley Bank failure, which works primarily with startups. Throughout the episode, Grant discusses everything that happened in the bank, the reasons behind it, and how we should be careful about the situation as investors, depositors, or users.
[05.27] Signs of stress – We start the conversation by sharing the reasons why Silicon Valley Bank is in trouble.
[13.25] The mistake – Grant explains the mistake Silicon Valley Bank made by going out on the maturity curve.
[20.25] Creative ways – We talk about different creative ways that can be used to get out of the current situation.
[26.45] Moral hazard – A moral hazard takes place when one side in a transaction has the chance to take on additional risks that are bad for the other party.
[35.00] SIPC – Grant explains how securities investor protection works in a bankruptcy situation.
[42.38] FDIC limitation – We discuss the reason for the federal government to limit banks from growing into massive entities.
Resources:
Easy Loans, Great Service: Why Silicon Valley Loved Silicon Valley Bank –
wsj.com/articles/easy-loans-great-service-why-silicon-valley-loved-silicon-valley-bank-6b3f203e
New Questions About Goldman Sachs’s Work With Silicon Valley Bank –
nytimes.com/2023/03/15/business/goldman-svb-silicon-valley-bank.html
Since we are in the middle of tax season, this week’s episode of the Grow Money Business Podcast is dedicated to basic tax principles for business owners. Throughout the episode, we dive into the difference between credit and deduction, common misconceptions about tax brackets, cash accumulation, and more.
[06.10] Credit vs. deduction – Starting the discussion, Grant explains the difference between a credit and a deduction.
[11.05] Misconception – We go through the most common misconception regarding tax brackets and why people need to be aware of it.
[15.19] Business owners – Business owners being insecure about taking cash out of their business account for fear of additional taxation is one of the biggest misconceptions, says Grant.
[23.04] Cash accumulation – Grant explains the reason for cash accumulating in business accounts and the effective uses of that kind of cash.
Resources:
A Tax Guide for Small-Business Owners –
nerdwallet.com/article/small-business/small-business-tax-preparation
2022 complete list of small-business tax deductions –
quickbooks.intuit.com/accounting/small-business-tax-deductions/
Investing is good, especially for young people. But they have to be careful about where they invest their money. There seems to be a growing number of young people who are interested in technical analysis by following social media videos without a fundamental grounding. In this week’s episode of the Grow Money Business podcast, Grant discusses his thoughts on technical analysis and its place today.
[03.16] Technical analysis – Starting the conversation, Grant explains technical analysis and how people often overlook its legitimacy.
[10.55] Choosing securities – Grant shares the risk of choosing securities based only on technical analysis.
[18.06] Top-down approach – Grant walks us through the levels of the top-down approach for technical analysis.
[22.50] Investing – Grant shares his thoughts on the interest among young people to invest and what kind of risks await them if they don’t evaluate what they are investing money for.
Resources:
Technical Analysis: What It Is and How to Use It in Investing –
investopedia.com/terms/t/technicalanalysis.asp
Technical analysis: Using historical patterns and group behavior to predict future moves in stocks and other assets –
businessinsider.com/personal-finance/technical-analysis?op=1
This week’s episode of Grow Money Business podcast is all about loans and cash. Throughout the episode, we discuss 401K plans, personal loans, credit cards, margin loans, home equity lines of credit, and more.
[04.08] Personal loans - Starting the conversation, Grant defines personal loans and how they work in paying off your credit card.
[08.00] HELOC – Grant explains the home equity line of credit and its advantages and disadvantages.
[16.38] 401K plan – Grant dives deep into how 401K loans work, their advantages, and the unnecessary taxes and penalties that come with them.
[19.00] Margin loans – We talk about margin loans and the implications that come with them.
[29.20] Hypothecation – Grant defines hypothecation and what’s happening behind the scenes.
Resources
What is a Margin Loan and How Does It Work? –
supermoney.com/what-is-a-margin-loan-and-how-does-it-work/
401(k) Loans: Reasons to Borrow, Plus Rules and Regulations –
investopedia.com/articles/retirement/08/borrow-from-401k-loan.asp
Bitcoin and Ethereum are the two biggest cryptocurrencies in the world. They experienced a severe fall last year, but in the past couple of months, they have started to rebound. It’s time to stay alert if you are interested in purchasing cryptocurrency ahead of time. This week on the show, we discuss whether it’s a good idea to jump back into cryptocurrency, how to make a Bitcoin purchase, cryptocurrency as an alternative investment, the current state of El Salvador, and more.
[06.26] Bitcoin transaction – Grant explains the effectiveness and efficiency of Bitcoin transactions, which are direct transactions through the world banking system.
[14.22] Purchasing Bitcoin – Grant explains the process of purchasing cryptocurrency.
[18.50] Alternative investment – Grant walks us through the areas we need to address and makes sure they are safe if we are to purchase cryptocurrency.
[23.43] El Salvador: Grant explains how El Salvador became indebted to the tune of $800 million after accepting Bitcoin as legal currency.
Resources:
El Salvador says it paid maturing $800 million bond –
apnews.com/article/cryptocurrency-politics-nayib-bukele-el-salvador-bitcoin-ba35f3d24c9e866e5dcd410e1eb456bd
How Sam Bankman-Fried swindled $8 billion in customer money, according to federal prosecutors –
cnbc.com/2022/12/18/how-sam-bankman-fried-ran-8-billion-fraud-government-prosecutors.html
Coinbase - coinbase.com/
Kraken - kraken.com/
Bitcoin - bitcoin.org/en/
Ethereum - ethereum.org/en/
It’s never too late or too early to make your kids save money because saving today is an investment in the future. In this week’s episode of the Grow Money Business podcast, Grant talks about the financial lessons you should teach your kids. Throughout the conversation, we cover, the importance of saving, compound interest, tax-advantaged investing, employing your kids in your business, and more.
[05.51] The importance of saving – Starting the conversation, Grant shares why we need our kids to know the importance of saving money for themselves.
[09.35] The power of compound interest – Grant discusses how to make kids save money by showing and guiding them through compound interest.
[18.06] Compound growth – Grant shares the importance of long-term compound growth and how powerful it can be.
[20.03] Tax-advantaged investing - Grant walks us through the right time to introduce tax-advantaged investing to your children.
[25.26] Employing – Grant shares how to employ your kids in your business if you have that kind of opportunity and save cash on their behalf.
Ever wonder what a $2 million retirement actually looks like behind the scenes? In this episode Grant covers five case studies that were recently published in a Wall Street Journal article. We review distribution rates, contentment, Social Security decisions, taxes, and each couples' biggest financial concern after giving up their income stream permanently.
[04.10] John’s case – Starting the conversation, Grant goes through the first case mentioned in The Wall Street Journal about 2 million retirement savings, a retired police officer named John.
[10.00] The guardrails approach – Grant defines the guardrails approach and how it works.
[16.38] Taking from retirement accounts – Grant shares the risk of pulling money out from your retirement account if you don’t have any other source of income.
[20.06] Vision – Grant points out the lack of clear vision in the cases he discussed in The Wall Street Journal.
[28.33] Variable distribution rates – Distribution rate is relevant and important, and it will always change, says Grant.
Resources:
Here’s What a $2 Million Retirement Looks Like in America –
wsj.com/articles/heres-what-a-2-million-retirement-looks-like-in-america-11661702455
Use the Guardrails Approach to Avoid Running Out of Money in Retirement –
msn.com/en-us/money/retirement/use-the-guardrails-approach-to-avoid-running-out-of-money-in-retirement/ar-AA13M3pm
Index universal life insurance policy is permanent life insurance that has a cash value component in addition to a death benefit. In today’s episode of Grow Money Business podcast, Grant talks about what index universal policy is, falsehoods that come with insurance representatives, and more.
[04.08] Index universal life policy – Starting the discussion, Grant defines index universal life policy and how it works.
[08.57] A variable life insurance policy – Grant defines a variable life insurance policy and how it differs from an index universal policy.
[12.42] Ups and downs – Grant explains what happens when the market goes ups and downs in an index universal policy.
[14.42] Half-truths – Grant shares inaccuracies that come with the sales pitch of a universal life policy.
[22.07] Legitimate uses – Grant shares the legitimate uses of permanent life insurance in a business setting.
Resources
A Guide to Indexed Universal Life Insurance –
nerdwallet.com/article/insurance/indexed-universal-life-insurance
Is IUL a Scam? Yes. –
personalfinanceclub.com/is-iul-a-scam-yes/
10 REASONS TO AVOID INDEXED UNIVERSAL LIFE INSURANCE (IUL) –
youstaywealthy.com/podcasts/avoid-indexed-universal-life-insurance-iul/
Alternatives can be great investments, but you must generally be a strong candidate for them. In this week's episode of the Grow Money Business podcast, Grant discusses what alternative investments are, why they are good, and what you have to look out for.
[02.08] Alternative investments – Starting the conversation, Grant defines alternative investments with examples.
[09.02] Benefits – Grant explains the benefits from the managers' perspective if you are going to develop land investments.
[12.14] For and against – Grant contrasts the alternative investment offerings that are considered good and not good.
[23.05] Regulation D Offering – A rule set by the Securities and Exchange Commission (SEC) governing private placement exemptions, which permits businesses to raise money through the sale of stock or debt securities without registering those securities with the SEC.
[26.06] Legitimacy – Grant shares the reasons behind ensuring the legitimacy of the people you choose when buying a traditional investment.
Resources
GMB Ep #154: The Small Business Owner’s Financial Order of Operations –
abovethecanopy.us/small-business-owners-financial-order-of-operations/
Blackstone - blackstone.com/
With the recent interest rates raise initiated by The Federal Reserve, many people are curious about where to park their cash in a way that provides the maximum benefits. This week's episode of Grow Money Business podcast, Grant discusses the methodology of saving cash in your emergency fund and several other options for investing your extra cash.
[05.06] The method – Starting the conversation, Grant dives into how much cash you need in your bank accounts as a business owner from his perspective and the reasons behind it.
[10.15] Emergency fund – Grant explains what you can do with the extra cash in your emergency fund and the vital things you have to consider.
[15.52] Capital one - American bank holding company Capital One Financial Corporation specializes in credit cards, auto loans, banking, and savings accounts.
[16.23] Ally Financial – A bank holding company that offers a variety of financial services, such as car financing, internet banking through a direct bank, corporate lending, auto insurance, and mortgage loans.
[20.15] Brokered CDs or T bills - Grant explains how brokerage CDs and T bills CDs work.
Resources
Online Savings Account - ally.com/bank/online-savings-account/
Treasury Bill Rates - data.nasdaq.com/data/USTREASURY/BILLRATES-treasury-bill-rates
What Is a Brokered Certificate of Deposit (CD)? –
investopedia.com/terms/b/brokered-cd.asp
The Consolidated Appropriations Act of 2023 provides some changes in the functions of ROTH accounts, 401K plans, and mandatory distributions from your retirement accounts. In this week's episode of the Grow Money Business podcast, Grant discusses the highlights investors need to know about the new Act and some of the planning opportunities that come with the new act.
[06.08] Changes to ROTH accounts – Grant shares the changes of the Roth accounts in the SECURE 2.0 Act of 2023.
[13.04] Traditional vs. ROTH employer contributions – Grant defines traditional & ROTH employer contributions and how employer contributions work according to the new Act.
[17.14] Catch-up contributions – A type of retirement saving that allows people over 50 to make additional contributions to 401K and IRAs.
[18.13] Mandatory distributions – Grant explains how mandatory distributions have changed in the new SECURE 2.0 Act.
[23.28] Qualified charitable distribution – A QCD is a direct transfer from your IRA to a qualified charity. Grant dives into the changes regarding qualified charitable distribution in the new Act.
[32.22] Emergency reasons – Grant explains the legislation change for first responders to take their money out from their 401K, 403B, or 457 plans when they hit 50.
[36.14] Penalty for mandatory distribution – Grant shares the 25% penalty decrease for mandatory distribution starting from 2023.
Resources
What’s in the New SECURE Act 2.0? –
asppa-net.org/news/browse-topics/what%E2%80%99s-new-secure-act-20
SECURE 2.0: Rethinking retirement savings –
fidelity.com/learning-center/personal-finance/secure-act-2
Being smart in financial planning is vital, especially if you try to plan on your own. But people who do it themselves often have an inconsistent process. In this week's Grow Money Business podcast, Grant dives into the financial planning process, do it yourself or hire a professional, the seven-step financial process by the CFP board, and more.
[03.20] Hiring a professional – Starting the discussion, Grant dives into his idea about hiring a professional for financial planning.
[07.18] Planning for the future – Grant shares why you must be smart about financial planning.
[13.14] Having a process – Grant shares the importance of having a proper procedure for financial planning. He further shares the problems he identified in his clients when they try financial planning by themselves.
[15.33] CFP board financial planning - CFP Board is a non-profit organization that serves the public by promoting professional standards in personal financial planning.
[17.07] Seven-step financial planning process – Grant walks us through the seven-step financial planning process offered by CFP.
[21.24] Reaching out – Grant shares the details of what kind of professional you need to find if you are going to get help with your financial planning.
[25.57] Being a fiduciary – Grant defines fiduciary responsibility and what you can do if your hired professional is not responsible for being fiduciary.
[28.50] The steps – Grant walks us through the steps they take in the financial planning of their firm.
Resources
Book by Jim Sheils –
The Family Board Meeting: You Have 18 Summers to Create Lasting Connection with Your Children
https://www.amazon.com/Family-Board-Meeting-Connection-Children/dp/1732362912
THE 7 STEP FINANCIAL PLANNING PROCESS –
https://www.cfp.net/ethics/compliance-resources/2019/02/the-7-step-financial-process
Strategic Financial Planning For Business Owners in Transition –
https://www.threeoakswealth.com/
An inverted yield curve is an indicator of possibility of a future recession. Currently, the U.S. government is in a sudden inverted yield curve. In this week's episode of Grow Money Business, Grant discusses the yield curve, how it predicts a future recession, the market impact of long-term debt, and more.
[02.22] Yield curve – Starting the discussion, Grant explains the yield curve and how it works.
[08.35] Investment risks – Grant dives into different risks with investing in U.S. government bonds.
[10.37] Predicting the future – Grant shares the recession prediction due to the higher rate of short-term debt.
[11.36] Inverted yield curve – Grant shares the percentages of short and long-term debt rates.
[15.46] Research – Grant dives into the research details of Fama and Kenneth in 2019 about 'Inverted Yield Curves and Expected Stock Returns.'
[22.00] Investing long-term – Grant shares how investing in the long-term solves many problems and will lead investors to the best outcomes.
Resources
Inverted Yield Curves and Expected Stock Returns – famafrench.dimensional.com/media/467645/inverted-yield-curves-and-expected-stock-returns-july-28-2019.pdf
Yield Curve Inversion Reaches New Extremes – wsj.com/articles/yield-curve-inversion-reaches-new-extremes-11669687278
Explainer: U.S. yield curve inversion - What is it telling us? – reuters.com/business/finance/us-yield-curve-inversion-what-is-it-telling-us-2022-03-29/
We’re almost at the end of 2022, a year filed with various ups and downs in the financial markets. In this week's episode of Grow money business, Grant reflects on his previous predictions for this year on Bitcoin, international equities, and value & growth companies. Grant also shares his 2023 forecasts on inflation, interest rate, and credit rates.
[06.54] Bitcoin – Grant shares the predictions he had for Bitcoin early this year and how they turned out.
[08.22] International equities – Grant explains how international equities did better than US equity counterparts in 2022.
[12.30] Value & growth companies – Grant compares value & growth companies and describes how value companies outperformed growth companies in 2022.
[18.09] Inflation – Grant dives into how he was wrong about inflation going down this year.
[24.17] Inflation in 2023 – Grant predicts that inflation will continue to decrease in 2023.
[26.20] Interest rates – Grant shares some predictions for credit rates and interest rates in 2023.
Learning from past mistakes is vital for any business venture or industry because it prevents the same mistakes being repeated. This topic comes to the forefront with the announcement of the controversial bankruptcy of FTX, one of the world's largest cryptocurrency companies, and the catastrophic events and revelations that followed. This week's episode of Grow Money Business discusses what's going on with FTX and why we need to study history.
[04.06] FTX – A defunct company that belonged to the cryptocurrency and is currently in bankruptcy proceedings.
[06.06] The bankruptcy – Grant dives into how FTX has come to bankruptcy.
[12.20] The difference – Grant explains the difference between a brokerage firm and a bank.
[13.22] The great depression - The worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939.
[13.30] Savings and loans crisis - The collapse of 1,043 out of 3,234 savings and loan associations (S&Ls) in the United States during the 1980s and 1990s is referred to as the savings and loan crisis. After the Great Depression, the S&L crisis was regarded as one of the worst failures of the banking sector in the United States.
[17.00] The mortgage crisis - The US subprime mortgage crisis was a global financial crisis that erupted between 2007 and 2010 and was a factor in the global financial crisis of 2007–2008.
[23.04] Mistakes of the past – Grant dives into what happens when we don't learn from the mistakes we made in the past. He further discusses the similarities between FTX's bankruptcy and Lehman Brothers' bankruptcy in 2008.
[31.30] Negligence – Grant shares his idea about bringing experienced people and getting help to manage bankruptcy risk, which FTX has failed to do.
[36.12] Being appreciative – Grant dives into the importance of appreciating others who came before you and studying their mistakes so you don't have to repeat them.
Resources
A Crisis PR Veteran on Sam Bankman-Fried’s Weird Media Strategy –
https://nymag.com/intelligencer/2022/12/a-crisis-pr-expert-on-sam-bankman-frieds-odd-media-strategy.html
Sam Bankman-Fried, CZ Battle It Out on Twitter Over Binance's Aborted FTX Buyout –
https://www.msn.com/en-us/money/companies/sam-bankman-fried-cz-battle-it-out-on-twitter-over-binances-aborted-ftx-buyout/ar-AA155PKF
Crypto currency crashes recall 'wildcat' banking –
https://techxplore.com/news/2022-12-crypto-currency-recall-wildcat-banking.html
ESG investing, also known as environmental, social, and governance, has been renowned as a perfect way of utilizing investment resources aligned with personal values. However, in the last couple of years, the quality of ESG investing has gone down. In this week's episode on Grow Money Business, we discuss the ESG fund, the three big issues of ESG, ESG versus non-ESG, overall transparency, and more.
[02.37] ESG – Grant begins the conversation with a general overview of ESG investing.
[04.10] Three big issues – Greenwashing, nepotism, and performance are the three big issues related to ESG investing recently.
[06.15] Greenwashing – Grant dives into what greenwashing is and how it happens at both the fund and company levels.
[11.22] Drawing up an ESG fund – Grant explains how weight and elimination are the two primary ways to build a portfolio that aligns with a specific ESG ideology.
[15.35] ESG vs. Non-ESG – Grant shares how research revealed that most companies under ESG fund in the USA had the worst record in 2021.
[19.45] Nepotism – Grant dives into the concept of nepotism in the ESG field.
[27.24] Transparency – Grant dives into the importance of transparency when it comes to ESG funds in your organization.
[28.05] Performance – Grant shares what investors should want to know regarding performance related to ESG investing.
Resources
An Inconvenient Truth About ESG Investing https://hbr.org/2022/03/an-inconvenient-truth-about-esg-investing
Greenwashing And ESG: What You Need To Know – https://www.forbes.com/advisor/investing/greenwashing-esg/
Some crucial components of effective retirement planning include saving early and regularly, making good investments, and creating a budget for expenses. In this week's episode of Grow Money Business, Grant dives into defined-benefit pension plans. Throughout the episode, we talk about the specifics of a defined-benefit pension plan, different types of tax-advantaged retirement plans, benefits, investment performance, and more.
[03.03] Defined-benefit pension plan – Grant explains what a defined-benefit pension plan is.
[08.53] Creating a defined-benefit plan – Grant dives into the process of creating a defined-benefit pension plan and how it benefits single business owners, LLCs, or S corporations.
[14.05] Investment performance – Grant explains the relationship between the success of a pension plan and investment performance.
[22.32] Pension assets – Grant describes what happens when pension assets become volatile and some best practices for avoiding volatility.
[26.52] CalPERS/ CalSTRS – Grant ties in the California Public Employees' Retirement System and California State Teachers Retirement System.
[31.14] Defined-contribution plan – Wrapping up the conversation, Grant shares the impacts you can have on your defined-distribution plan if you create a defined-benefit plan.
Resources
Defined Benefit Plan -
www.irs.gov/retirement-plans/defined-benefit-plan
Personal Defined Benefit Plan -
www.schwab.com/small-business-retirement-plans/personal-defined-benefit-plan
What Is a Defined-Benefit Plan? Examples and How Payments Work -
www.investopedia.com/terms/d/definedbenefitpensionplan.asp
The COVID-19 pandemic has had severe impacts on every industry across the globe and due to government restrictions, businesses experienced drastic revenue declines. In this week's episode of Grow Money Business, we will discuss the employee retention tax credit, introduced to help those businesses that struggled through the pandemic. Throughout the episode, we dive into what ERTC is, how it works differently in 2020 and 2021, who can apply for it, and the payroll information form.
[3:00] In the Media - The ETRC has been making headlines for both positive and negative reasons. Grant explains some of the current conversation and controversy around companies that are offering to assist with amending tax returns to capture the ETRC.
[05.50] Employee retention tax credit – Grant dives into the employee retention tax credit and who can apply for it.
[11.00] How it works – Grant shares how the tax credit works and how it differs in 2020 and 2021.
[13.05] Payroll information form – Grant explains the 940 payroll information forms that you need to submit to IRS to get the tax credit.
Resources
As Pandemic Aid Dries Up, Businesses Chase Covid Tax Credit – https://www.wsj.com/articles/as-pandemic-aid-dries-up-businesses-chase-covid-tax-credit-11668292886?mod=Searchresults_pos1&page=1
What Is the Employee Retention Credit For 2022? – https://www.payscale.com/compensation-trends/what-is-the-employee-retention-credit/
If you’re planning for early retirement and have saved money in tax qualified accounts, there are some important considerations to be aware of. In this week’s episode of Grow Money Business, we are going to dive into how early retirees can avoid the 10% withdrawal penalty. Throughout the episode, we discuss the details of the early withdrawal penalty, some common misunderstandings about Roth IRAs, and the three options you can use to avoid the 10% withdrawal penalty when you decide to retire before 59½.
[01.02] Early withdrawal penalty – Grant explains the ins and outs of the early withdrawal penalty, which applies to distributions taken from an IRA or retirement plan before the participant is 59½ years old.
[05.15] 401k Distributions – Grant shares some important considerations if you plan to take distributions from your 401K before IRAs or Roth IRAs.
[10.45] Substantially equal periodic payments – Grant explains how you can avoid the early withdrawal penalty by utilizing substantially equal periodic payments.
[16.15] Taxable Brokerage Accounts – Grant shares a third maneuver for avoiding the early withdrawal penalty that allows tax-deferred accounts to grow and compound.
[20.16] Roth IRA Myths – Grant clarifies some common misconceptions regarding the five-year ROTH IRA rule.
Resources
72t Distributions: The Ultimate Guide to Early Retirement –
https://www.abovethecanopy.us/the-ultimate-guide-to-early-retirement-with-72t-distributions/
Substantially Equal Periodic Payments –
https://www.irs.gov/retirement-plans/substantially-equal-periodic-payments
Exceptions to Tax on Early Distributions –
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions
It is essential to go through one step at a time when planning your business's financial operation. This week on Grow Money Business, we are going to talk about the small business owners' financial order of operations. Throughout the episode, we dive into the seven-step checklist of Dave Ramsey's and Grant's 10-step checklist for small business owners in their financial planning.
[00.21] Financial order of operations – A checklist that small business owners can use for their benefit.
[00.53] Baby steps – Starting an emergency fund, focusing on debts, completing the emergency fund, saving for retirement, saving for your children's college fund, paying off your house, and building wealth and giving are the seven steps of Dave Ramsey for financial planning.
[01.45] Ten steps checklist - Grant's 10-step checklist for small business owners.
[09.51] Step one – Establish a baseline emergency fund. We dive into the first step of Grant's checklist, starting baseline emergency fund by saving up one month's worth of personal expenses.
[11.28] Step two – Starting a baseline emergency fund with one month's worth of operational expenses.
[12.25] Step three – Paying off both personal and business high-interest debts is the third step, says Grant.
[13.00] Step four – Expanding personal emergency funds from one month's worth of expenses to between three or nine months' expenses, according to Grant.
[14.00] Step five – Expand the business cash fund.
[15.30] Step six – Establish a company retirement plan is the six-step on Grant's checklist.
[15.35] Step seven – Pay off your other non-mortgage debt as student loans, auto loans, etc.
[16.25] Financial flexibility – Grant dives into why we need to maintain financial flexibility.
[17.00] Step eight – Circle back to the retirement plan and maximize all the supplemental retirement saving options you have is the 8th step, says Grant.
[18.00] Step nine – Grant dives into step nine; starts saving for a kid's education and the importance of it.
[18.40] Step ten – The last step is to start building wealth.
[23.27] Emergency fund – Grant shares how to decide to build an emergency fund and what risks you have to take according to your current position.
Resources
Dave Ramsey’s 7 Baby Steps:
ramseysolutions.com/dave-ramsey-7-baby-steps
Financial Order of Operations Course
learn.moneyguy.com/financial-order-of-operations-course
The stock and bond markets have had a terrible time this year, and many wonder if the worst is over or if the next 12 months will bring more hardship. However, although the economy faces challenges, there are also grounds for optimism. In this episode, we'll dive into the details of what's been happening recently in the economy and the stock market, as well as some suggestions for how you might want to adjust your investment strategy.
[02:55] Long-Term Bond Yields - Grant explains the current state of inflation, and how the long-term bond yield is a good proxy for inflation expectations.
[06:21] Inflation Expectations - Inflation expectations among the general public have decreased. Grant goes into greater depth on inflation expectations, elaborating on the labor market and US unemployment rates.
[09:53] The US Dollar – Grant explains the consequences of the US dollar's value and strength fluctuations.
[11:36] Oil Prices – Grant discusses whether or not the recent rise in oil prices can be attributed to Opec's decision to reduce its output.
[14:03] Investing - Grant shares how you can use data to make better decisions about your investments.
[20:17] Valuation Measures – Grant shares some different valuation measures that you should be aware of.
Resources:
Have The P/E Ratios Of S&P 500 ETFs Dropped Into The Buy Range?: seekingalpha.com/article/4544667-have-s-and-p-500-etfs-pe-ratios-dropped-into-the-buy-range
Here's one key measure of stock performance that suggests the market has already hit a bottom, Leuthold's Jim Paulsen says: msn.com/en-us/money/markets/heres-one-key-measure-of-stock-performance-that-suggests-the-market-has-already-hit-a-bottom-leutholds-jim-paulsen-says/ar-AA13ktlF
Investments in developed economies like the U.S. and Europe are generally thought to be less risky than those in emerging markets. However, these emerging markets come with a great deal of investment potential. We dedicated today’s episode to exploring responsible emerging markets investing, and are joined by Perth Tolle, the founder of Life + Liberty Indexes. Throughout the episode, we dive into the Perth’s professional journey, freedom weighting, funding, ESG, operating expenses, and more.
[04.14] The journey – Perth shares her story and the reason behind not investing in her home country.
[07.22] Freedom weighting – Perth explains how they use third-party freedom metrics based on three freedom categories; civil, political, and economic.
[12.16] Chile – We dive into the dynamics of the best-performing emerging market this year.
[16.28] Funding – Perth explains how the funding was done in 2019, and shares some performance metrics.
[21.20] Environmental, Social, and Governance – Perth shares why they are distancing from ESG.
[25.27] Lifecycle – Perth explains the process of starting her ETF.
[38.45] First purchasing – Perth shares details on the first security purchasing.
[42.18] ADRs – Perth and Grant discuss American Depositary Receipts (ADRs), which are negotiable security instruments issued by U.S. banks and reflect a certain number of shares in a foreign business traded on U.S. financial markets.
[44.50] Work-life balance – Perth explains the importance of a balanced personal and professional life.
[47.39] Next five years – Perth shares what the next five years in her organization will look like
Resources
Connect with Perth
LinkedIn linkedin.com/in/perth-tolle-7757b745
Twitter: twitter.com/Perth_Tolle
Website: www.lifeandlibertyindexes.com
Company LinkedIn: www.linkedin.com/company/life-liberty-indexes
Freedom 100 Emerging Markets ETF alphaarchitect.com/wp-content/uploads/compliance/etf/factsheets/FRDM_Factsheet.pdf
Managing employees and treating them fairly while maintaining compliance with state and federal regulations is a delicate aspect of any business organization. This week on Grow Money Business, we’re joined by Andrew A. Esposito, a labor law practitioner, human resources attorney, and manager of client development at Clemans Nelson & Associates, a management consulting service provider for labor relations and human resource management needs. Throughout the episode, we dive into some of the biggest legal risks Andrew had to face related to employment and more.
[03.32] Background – Starting the conversation, Andrew dives into his professional career, where he currently works, and what services they are providing to customers.
[05.41] Labor law posters – Little things matter the most when it comes to a small business. Andrew dives into the importance of purchasing labor law posters and posting them in an area at the office for everyone to see every year.
[08.18] Businesses – Andrew shares what kind of businesses they are working with within their practice.
[10.09] 1099 Contractor vs. W2 employee – Controlling is the key to deciding whether someone’s an independent contractor, says Andrew. He also dives into what areas small businesses should consider when it comes to independent contractors without getting any legal problems.
[17.21] Salaried & hourly – Andrew dives into the difference between salaried and hourly employees.
[25.53] Employee count – Andrew talks about what requirement does and what does not base on the employee count of an organization.
[32.06] Biggest risks – Andrew dives into the biggest risks that he had to take throughout his career.
[46.53] Exit & stay interviews – Andrew dives into the difference between exit interviews and stay interviews. He also discusses how stay interviews help to build a good relationship between co-workers
Resources
https://clemansnelson.com/
The recent increase in interest rates has resulted in lower asset prices across the board. For investors, it’s always beneficial to be aware of ways to minimize the impact of unfavorable market conditions. In this episode, Grant dives into five key measures investors can take to protect their investments in down markets and how to benefit from tax planning opportunities that arise in times of low business profitability.s
[01:46] Market Conditions – Grant discusses some of the recent negative changes in financial markets and the reasons behind them.
[02:41] Tax Loss Harvesting – Grant explains how to harvest losses by strategically selling securities in your portfolios, as well as the IRS rules associated with this maneuver.
[08:34] Accelerating Income – Down markets are often associated with a time of poor business profitability. Grant dives into how business owners can take advantage of lower tax brackets in tough times.
[13:53] Active Mutual Funds – Grant shares how down markets can affect active mutual funds and what investors should keep in mind about how this affects their tax bill.
[19:38] Rebalancing – When markets are down, the balance of different asset classes in an investment portfolio is going to change. Grant dives into why investors should rebalance their portfolios.
[22:04] Putting More Money to Work – Grant explains how savvy investors can take advantage of down markets by strategically adjusting their contributions to investment vehicles such as 401k plans or SEP IRAs.
Resources:
Episode #61: Tax Gain Harvesting: What, Why, and How
Episode #16: Savvy Investing in Bear Markets
Recently we’ve seen quite a few headlines that suggest that the concept of the 60/40 portfolio has run its course. However, a fair amount of pushback is caused by people adopting this concept for the wrong reasons. In this episode, Grant dives into the unique benefits of the 60/40 portfolio that made it so popular, why this concept is still valid, and how to properly use this portfolio concept in today’s economic conditions.
[01:40] The 60/40 Rule – Grant explains the idea behind the 60/40 rule, how it became extremely popular among investors over the last few decades, and why some people have started to question its relevance.
[04:00] Economic Trends – Grant dives into some of the economic trends related to inflation and deflation that caused a lot of speculation recently and their impact on businesses and investments.
[10:59] Diversification Benefits – Grant discusses the benefits of having both stocks and bonds in a portfolio and how it improves the risk-adjusted return over a long period.
[14:50] Tough Economic Conditions – Grant explains how the mortgage crisis affected people’s confidence around the diversification benefits of having stocks and bonds and how a combination of stocks and bonds can help your portfolio survive a period of tough economic conditions.
[23:20] The Bonds are Your War Chest – Grant dives into how to take advantage of bonds to improve your portfolio while stocks are underperforming.
Resources:
Time, not timing, is what matters:
capitalgroup.com/individual/planning/investing-fundamentals/time-not-timing-is-what-matters.html
Should You Sell Your Stocks When The Market Tanks? The Myth Of Missing The Best 10 Days:
forbes.com/sites/raulelizalde/2022/05/05/should-you-sell-your-stocks-when-the-market-tanks-the-myth-of-missing-the-best-10-days/?sh=2c7b090273ed
Entrepreneurship is one of the best ways to change the world around us, and there’s a lot to learn from entrepreneurs who are building businesses that solve problems that exist in their communities. This week on Grow Money Business we’re joined by AnnMaria De Mars, the founder and president of 7 Generation Games, an educational software company that focuses on creating video games to teach math to kids and students. Throughout the episode, we dive into AnnMaria’s journey and how she’s using entrepreneurship to create a positive impact on the world.
[02:30] From Academics to Entrepreneurship – AnnMaria shares how her interest in mathematics helped her evolve into a serial entrepreneur.
[11:22] Video Games – AnnMaria explains what led her to start her venture in creating video games to teach mathematics.
[19:31] Solving Problems – AnnMaria shares what motivated her to develop businesses in a way that solves problems and helps people in rural communities.
[24:32] Building the Business – AnnMaria discusses how she gathered the required funding and other resources to build her business.
[28:38] Current Progress –AnnMaria describes her organization’s current performance, growth, and plans for the future.
[34:43] Sports – AnnMaria is a national champion in Judo. We talk about how she got into Judo and the profound impact of sports on her life and the lives of her children.
[46:31] Business and Life –AnnMaria explains how her risk tolerance evolved with her personal priorities.
[51:22] Fundraising for Startups – AnnMaria shares some of the ways startups can raise money with the help of people in a community.
Resources
7 Generation Games:
www.7generationgames.com
youtube.com/c/7GenGamesTV
AnnMaria On LinkedIn: www.linkedin.com/in/annmaria-de-mars-3549606
If you're interested in the advantages of foreign diversification for asset preservation and estate planning, then this is the conversation for you. This week's guest on the show is Mikkel Thorup, the CEO of Expat Money™, a consulting advisory organization that assists individuals with foreign asset diversification. Mikkel assists clients in relocating their wealth out of the United States by helping them establish offshore trusts and foundations and facilitating foreign investments. In this episode, we explore how you can expand your estate beyond your home country's limits.
[02:34] Background – Mikkel summarizes his journey thus far by discussing his work, his clientele, and the source of his exposure to the industry in which he currently works.
[15:37] Asset Protection – Mikkel goes over the basics of asset protection, including what it is and how it operates.
[21:12] Trust vs. Foundation – Mikkel discusses trusts and foundations, as well as how his consulting firm helps its clients with these types of frameworks.
[26:46] Be Aware - Cross-border issues and scammers are a perennial concern in modern society. Mikkel outlines where people go wrong, what mistakes might be made, and what must occur to move assets overseas.
[32:28] Residency vs. Citizenship – Mikkel offers a comprehensive breakdown of the concepts of citizenship and residence in a foreign country.
[39:36] Opportunities – Mikkel explains his overall philosophy and strategy, as well as the process by which he sources opportunities for clients.
[43:35] Selections – Mikkel outlines how he decides which jurisdictions to work on or within.
Resources:
Mentioned in the episode:
Expat Money Summit 2022: expatmoneysummit.com
Website: expatmoney.com
Connect with Mikkel:
LinkedIn: linkedin.com/in/mikkelthorup/
You may recall that at the beginning of 2021, the stock prices of AMC and GameStop skyrocketed. There were numerous news articles about people driving up the prices of companies that were not otherwise exceptionally profitable investments. This week on the podcast, Grant dives deep into what caused t Meme Stock Rally of 2021, as well as the importance of investing our portfolios as prudent, long-term investors.
[03:20] Meme Stock Rally - Grant recalls the events that transpired during the 2021 Meme Stock Rally involving AMC and GameStop.
[10:41] Two Options – Grant explains how short-selling stocks and the options market are the two most common ways to wager against a company.
[21:05] Changes - Grant outlines in broad terms how AMC and GameStop have changed as a result of this chain of events.
[26:22] Research – Grant presents the conclusions of the in-depth research that was conducted on the Meme Stock Rally at both the SEC and Harvard.
[34:30] Lessons – Grant explains how the Meme Stock Rally serves as an excellent lesson on time horizon and irrationality, illustrating how wise investors should consider investing in their portfolios.
Resources:
Did Pandemic Stimulus Funds Spur the Rise of 'Meme Stocks'?: hbswk.hbs.edu/item/did-pandemic-stimulus-funds-spur-the-rise-of-meme-stocks
How AMC rode the meme stock rally to revitalize its business: cnbc.com/2022/01/26/how-amc-rode-the-meme-stock-rally-to-revitalize-its-business.html
Robinhood almost imploded during the GameStop meme stock chaos: techcrunch.com/2022/06/27/robinhood-report-meme-stock-gamestop/
Robinhood and CNBC's Jim Cramer fuel stocks for "stimmy" rally: cbsnews.com/news/robinhood-jim-cramer-stimulus-stock-market/
Stock Market Stimulus: hbs.edu/faculty/Pages/item.aspx?num=62111
Last week, President Joe Biden announced a new student loan relief program that promises to cancel $10,000 of student debt for low- to middle-income borrowers. Since then, this topic has become somewhat controversial and has ignited a fair amount of debate online. This week on the podcast, Grant dives into the provisions of this new student loan relief program, eligibility criteria, and some of the planning opportunities that have emerged from the program.
[03:31] Background – Grant shares the details of President Biden’s new executive action and why it’s considered controversial.
[06:35] Qualified Loans – Grant explains the types of loans that are qualified under the provisions of the student loan forgiveness program.
[08:42] Income – Income is the most prominent factor that determines eligibility for loan forgiveness. Grant breaks down the numbers of the income levels that qualify for this program.
[14:05] Income-driven Payments – Grant shares his thoughts on the differences between income-driven payment programs that were introduced earlier and President Biden’s new program.
[20:00] Planning Opportunities – Grant discusses some of the tax planning opportunities that may allow you to qualify for the new loan forgiveness program.
[29:58] Earlier Programs – Grant shares some highlights of the provisions that were included in the income-driven payment programs that were introduced earlier.
[35:00] Enrolling in a New Program – Grant shares his take on the pros and cons of enrolling in a new income-driven repayment program.
Resources:
FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most
whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/
Biden-Harris Administration Announces Final Student Loan Pause Extension Through December 31 and Targeted Debt Cancellation to Smooth Transition to Repayment
www.ed.gov/news/press-releases/biden-harris-administration-announces-final-student-loan-pause-extension-through-december-31-and-targeted-debt-cancellation-smooth-transition-repayment
The need for long-term care has been steadily increasing over the last decade, primarily due to our aging demographics and retiring baby boomers. This week on Grow Money Business, we’re having a conversation with one of the nation’s leading experts in long-term care insurance. Matt McCann, the managing editor at LTCNews.com, and Principal Owner/Long Term Care Planning Specialist at McCann Insurance Services, joins us today to dive deep into the structure of long-term care insurance policies, available options, and some opportunities to reduce the costs associated with long-term care insurance.
[02:05] Matt’s Journey – We start the conversation with the story of how Matt started his career in radio and transitioned into insurance.
[05:28] The Need for Long-term Care – We dive into how the changes in our population have increased the need for long-term care for many people and how different states are responding to this situation.
[15:09] Insurance & Financial Planning – Mat shares his thoughts on the costs associated with long-term care and how these costs affect the financial strength and investments of a person.
[23:40] Regulations & Pricing – How the regulations related to long-term care insurance have been updated in recent years and the changes in pricing models that followed.
[30:57] Tax-free Exchanges – Matt dive into the process of a tax-free exchange, which allows life insurance policyholders to get long-term care without actually writing a check.
[34:37] Insurance for Business – How long-term care insurance in a business setting and the tax benefits business owners can get by arranging long-term care insurance for their employees.
[42:03] Family & Emotional Impact – Matt dives into the emotional and family-related concerns that could be solved by planning long-term care insurance and how insurance relates to retirement planning.
[45:52] Options for Long-term Care – Matt discusses several options available for people who are in need of long-term care.
Resources
Connect with Matt
Websites:
www.ltcnews.com
mccannltc.net/quote
LinkedIn: linkedin.com/in/matt-mccann-ltc
Cryptocurrency as an investment is relatively new, especially compared to other investment vehicles such as stocks and bonds. Because of this, there is a lot of confusion and a lack of guidance around how taxation applies to cryptocurrency-based investments. This week on Grow Money Business, we are joined by Micah Fraim, a Certified Public Accountant who specializes in crypto taxes. Throughout the episode, we take a dive deep into the tax aspect of cryptocurrencies, NFTs, and other blockchain-based assets.
[02:01] Getting to Know Micah – We start the conversation with a brief look at Micah’s career and how he got into his current line of work in taxation for cryptocurrency.
[04:12] Taxation for Crypto – Micah dives into the limitations of our current tax system in relation to cryptocurrency and virtual assets, as well as some of the attempts that have been taken to introduce legislation related to cryptocurrencies.
[10:45] Tax Basics – Grant and Micah discuss some of the most basic tax concepts related to investments and how they apply to cryptocurrencies.
[15:47] Opportunities – Micah shares some of the opportunities that arise along with a crypto bear market.
[25:31] NFTs – Micah explains the current tax code’s application to NFTs and how the wide range of use cases available for NFTs will call for more advanced tax rules.
[30:44] Play-to-earn Games – Micah shares his thoughts on how games are introducing new in-game economies and how they are connected to crypto investments.
[35:38] Tracking Crypto Transactions – Micah discusses how to track crypto transactions across multiple trading platforms for taxation purposes.
[42:06] Audit Risks – Micah dives into the risks that could arise from irregularities in crypto transactions that are reported to the IRS.
[44:41] Crypto as Payments – Grant and Micah discuss some important considerations for business owners who are accepting payments in cryptocurrencies and how it may affect business operations.
[50:00] Future of Crypto – Micah shares his thoughts on how cryptocurrency projects may evolve in the near future, as well as how the regulations may be adjusted to match the innovations in the crypto space.
Resources
Connect with Micah
Websites:
cryptotaxcpa.com
www.fraimcpa.com
micahfraim.com
Micah’s Books
Decrypting Crypto Taxes: The Complete Guide to Cryptocurrency and NFT Taxation
amazon.com/Decrypting-Crypto-Taxes-Complete-Cryptocurrency-ebook/dp/B0B88Y42JF
The Little Big Small Business Book
amazon.com/Little-Big-Small-Business-Book-ebook/dp/B00ZE5YWFK
Pricing is a potent tool that businesses can use to increase profitability as well as the value of the company. However, at times, increasing the price of a product or service can be scary for a lot of small businesses. This week on Grow Money Business, we have a fascinating conversation with an expert in pricing, Robert Ribciuc. Robert is the managing partner of EBITDA Catalyst, a firm that helps businesses improve their pricing strategy. Throughout the episode, we dive into why pricing strategy is important to businesses of all sizes and some of the key things business owners should consider when setting prices for their products and services.
[02:37] Robert’s Story – We start the conversation with a brief look at Robert’s career journey, what led him to start his firm, EBITDA Catalyst, and how it helps businesses improve their pricing strategy.
[04:57] Impact of Pricing – The role pricing plays in the success of a business and how it impacts the valuation of the company in the long term.
[11:59] Acquisitions – Robert shares his thoughts on how the pricing strategy of a business comes into play in an acquisition.
[16:25] Pricing in a Competitive Market – For small businesses in very competitive markets, increasing the price of goods or services can be scary. Robert dives into how to identify good opportunities for higher prices and how to deal with the anxiety that comes with it.
[21:23] Pricing and Cost – What business owners should consider when adjusting pricing to compensate for the costs that have gone up.
[29:47] Value Proposition and Pricing – How business can adjust their pricing in a way that generates maximum returns according to the value provided to the customer.
[34:07] Mission-driven Pricing – Robert shares his take on the unique opportunity that smaller businesses have to optimize their businesses towards goals and causes other than just profit.
[37:00] Evaluating Value – What business owners should consider when evaluating their value proposition in turbulent market conditions.
[41:19] Monetizing Innovation – Robert shares his thoughts on pricing for new products or services.
[44:24] Future and Challenges – Robert talks about some of the challenges he’s working to overcome at his firm and what the future may look like for EBITDA Catalyst.
Resources
Connect with Robert
Website: ebitdacatalyst.com
LinkedIn: linkedin.com/in/ribciuc
This week on Grow Money Business, distinguished guest Rick Dennen joins us. Rick is Chief Corporate Banking Officer at First Financial Bank and the founder of Oak Street Funding. Having evaluated hundreds of business deals over his decades-long career, Rick has a lot of knowledge and experience in venture capital. In today’s episode, we dive into what business owners should keep in mind when funding their business ventures with debt or equity.
[02:49] Rick’s Story - We start the discussion with a brief look at Rick’s career and how he started Oak Street Funding.
[07:52] Working with Banks – When Rick started his firm in the early 2000’s, banks were reluctant to lend to service-based businesses even though they had positive cashflows. We dive into the reasons behind this behavior and how things have changed after two decades.
[11:35] Recent Market Shifts – Rick shares his thoughts on how the M&A market is responding to the recent changes in the economy.
[15:28] Debt vs. Equity – Rick explains what business owners need to consider when deciding between taking on debt and looking for an equity partner.
[21:29] Lessons for Businesses – Rick shares some key takeaways about funding and the growth of a business.
[24:48] Evaluating Businesses – How Rick approaches evaluating a new business idea and the metrics used for measuring performance.
[27:15] Business & Parenting – Rick is the father of three children in their early 20s. We talk about how they are involved in business and why Rick approaches business-related conversations with his children.
[34:48] What’s Next for Rick – We talk about Rick’s area of focus and future plans for his new role at the bank.
Resources
Connect with Rick LinkedIn: linkedin.com/in/rick-dennen-721b363
Website: www.oakstreetfunding.com www.firstfranchisecapital.com www.bankatfirst.com
In our financial planning firm, we come across many people who are raising the question of whether or not their old insurance policies are worth maintaining. However, it is important to know that there are certain ramifications and complexities are associated with getting rid of an insurance policy. In this episode, Grant dives deep into important considerations related to choosing, maintaining, or terminating insurance policies.
[02:28] Purpose of Insurance – Grant discusses the purpose of insurance policies and how they create a safety net for you and your loved ones.
[05:50] Do You Really Need Insurance? – Grant explains how to determine whether you really need life insurance, given the nature of your existing insurance policies, your financial status, and income streams.
[09:08] Types of Insurance – Grant describes the two main types of life insurance and how to determine which is the right type of policy for you.
[13:00] Cost Breakdown – Grant explains the cost breakdown of insurance policies.
[17:01] What to do With a Permanent Policy – Grant shares some options for people who no longer need their permanent policy.
[28:33] The Right Option – Grant explains how he helps clients decide which option is best depending on their financial status and goals.
[31:59] Insurance Products That Actually Make Sense – Grant shares his take on some of the legitimate use cases for some common insurance products.
Resources
How to Find Out if an Old Life Insurance Policy is Worth Anything
www.harborlifesettlements.com/old-life-insurance-policy-worth-anything
What to Do with an Old Life Insurance Policy
kiplinger.com/article/insurance/t064-c032-s014-what-to-do-with-an-old-life-insurance-policy.html
What to Do About That Old Life Insurance Policy
investinganswers.com/articles/what-do-about-old-life-insurance-policy
Data-driven decisions are a key factor in the success of any modern business. Although larger businesses tend to be very good at making data-driven decisions, this isn’t always the case for small business owners. This week on Grow Money Business, we speak with a professional who helps small businesses use the financial data that they can have at their fingertips to make better decisions. Anne Gannon, the principal and the founder of The Largo Group, shares her wisdom on how and why business owners should utilize the power of data to grow their businesses.
[02:06] Anne’s Story – We start the conversation with a brief look at Anne’s career and what her firm, The Largo Group, offers to small businesses.
[06:00] Cashflow – Anne shares some trategies for small business owners to analyze the cash flow and review business transactions.
[09:56] Budgeting – Anne explains why it’s a good exercise for small business owners to create a budget and analyze their business expenses.
[15:19] Paying Yourself – Anne dives deep into how and when small business owners should pay themselves.
[21:06] Surviving the Pandemic – Anne explains how The Largo Group helped its clients survive through the pandemic.
[26:00] SBA Loans – Anne shares her thoughts on the SBA loan program with some pros and cons.
[33:33] Growth – Anne explains what small business owners should consider when planning for growth.
[36:06] Tax Strategies – Anne shares some tax strategies restaurants and other similar businesses can utilize to minimize their tax liabilities.
[43:47] Mindset – Why mindset is a key factor in the success of a business owner and some other business lessons from Anne’s career in professional golf.
Resources
Connect with Anne:
Website: www.thelargogroup.com
LinkedIn: linkedin.com/in/anne-gannon-529107148
As we approach an era of economic uncertainty, many investors are becoming concerned about the value of their investments falling. This is where, if used carefully, options contracts can give investors the ability to safeguard their investment portfolios. In this week's episode, Grant explains the pros and cons using options as portfolio insurance, as well as some major risks investors could face when using this investment strategy.
[02:19] Introduction - Grant discusses how investing in options can be used to reduce portfolio risk for some investors.
[06:57] Put Option – Grant gives a comprehensive overview of put options and the benefits and risks of investing in them.
[17:10] ETF - Grant explains how having option contracts on ETFs can be advantageous.
[20:25] SPY – Grant describes SPY ETFs and provides a hypothetical scenario on utilizing option contracts.
[24:30] Call Option – Grant shares the pros and cons of call options.
[31:20] Combining Strategies – Grant describes an investment option in which you can create revenue by selling call options against positions that you already hold in your portfolio.
[34:22] Be Mindful -Grant stresses the importance of limiting risk, and why you should proceed with caution if you’re considering this investment option.
Resources:
Mentioned in the episode: Portfolio Insurance using Index Puts: theoptionsguide.com/portfolio-insurance-using-index-puts.aspx Stocks, Bonds, Options, Futures, and Portfolio Insurance: A Rose by Any Other Name: bostonfed.org/-/media/Documents/neer/neer495c.pdf Using Put Options To Protect A Portfolio Of Tech Stocks: investors.com/research/options/put-options-protect-portfolio-of-tech-stocks/
As inflation continues to rise, many questions have come up regarding best practices for safeguarding your investments. This week on Grow Money Business Grant takes a deep dive into bond investing in an inflationary market, and answers some important questions about Treasury Inflation-Protected Securities (TIPS) and I-bonds. Throughout the episode, Grant shares his thoughts on when they may be a good fit for your portfolio, as well as some important considerations and strategic approaches to bond investing.
[04:07] Bond Investing – Grant explains the process of bond investing and the importance of allocating a portion of your portfolio to US government securities.
[08:44] Treasury Inflation-Protected Securities – Grant discusses the similarities and distinctions between ordinary US government securities and treasury inflation-protected securities.
[13:41] Interest Rate Risk – Grant explains why the value of TIPS are decreasing even though they are intended to protect investors against inflation.
[21:26] I Bonds – Grant describes the structure of I Bonds, and shares his thoughts on who is best suited to invest in them.
[25:48] $10,000 Limitation – Grant shares a strategic approach on how to circumvent the $10,000 per year per person investment limit that the Treasury Direct website imposes.
[29:00] Emergency Fund Cash – Grant explains why he does not recommend investing emergency fund cash in I bonds.
[32:50] Borrowings – Grant describes how rising inflation affects borrowing and how to benefit from borrowing in inflationary times.
Resources:
Treasury Direct: treasurydirect.gov/ Treasury Inflation-Protected Securities: wsj.com/market-data/bonds/tips
Treasury Inflation-Protected Securities: FAQs about TIPS: schwab.com/learn/story/treasury-inflation-protected-securities-faqs-about-tips
Properly planning for a college education has become one of the crucial decisions that could define the future of a young adult. This week on Grow Money Business, we’re joined by Brad Baldridge, a licensed financial planner, consultant for college funding, and main podcaster for the “Taming the High Cost of Education.” Brad assists families in preparing and saving for college by offering individualized planning services and insights on the most recent tax, cash flow, and academic strategies. Throughout the episode we discuss many important strategies for reducing the cost of college expenses, as well as some common mistakes you don’t want to make.
[01:54] Background – Brad describes how he became interested in college planning and shares some thoughts on why it is so expensive.
[05:23] Sticker Price – Brad explains the evolution of sticker pricing and how it impacts college planning.
[21:24] Process - Brad walks us through his advising process on how he helps individuals apply, enroll, and select the best school for them.
[27:16] Strategies for Business Owners - Brad explains what company owners should know about planning and paying for their children’s college education.
[45:36] Common Mistakes – Brad outlines several common mistakes people make when planning for a future college education.
[50:22] Best Choice – Brad explains how to differentiate between applying to a college with a reputable financial aid office versus one that may not be as transparent.
[59:42] Taming the High Cost of College – Brad describes how his college funding company serves its clients.
Resources:
Connect with Brad: LinkedIn: linkedin.com/in/bradbaldridge/ Website: tamingthehighcostofcollege.com/ Website: bradbaldridge.com/
Historically, if you wanted to purchase a private investment, you had to qualify under the SEC’s standards as an accredited investor. After 2012, certain regulatory modifications made private investments accessible to non-accredited investors. This week our guest is Craig Cecilio - CEO and cofounder of DiversyFund Inc. DiversyFund is a crowdfunding platform that enables everyday investors to generate wealth by democratizing alternative asset investment.
[03:36] Background - Craig explains what caused the regulatory changes that opened up private investments to non-accredited investors.
[11:37] More Opportunities – Craig shares his thoughts on why opening up investments makes the most sense.
[15:16] Craig's Story – Craig describes how his real estate investing background led to the founding of DiversyFund, Inc.
[27:28] Best Practices – Craig shares some important considerations when it comes holding or selling properties.
[29:18] Communication Cycle – Craig describes what it's like to report to 30,000 investors and how he considers their needs when making decisions.
[35:29] Communication Transparency – Craig stresses the significance of transparent communication.
[39:26] Process – Craig outlines the steps required to acquire his company's services.
[43:43] New Strategies – In addition to expanding geographically within the multifamily industry, Craig reveals his plans to offer new and alternative strategies.
[46:19] Lifecycle of Funds – Craig shares when it makes sense to collect money from investors in relation to the lifecycle of the funds.
[48:32] Challenges – Craig discusses the most challenging aspects of business expansion.
Resources:
Connect with Craig:
LinkedIn: Linkedin.com/in/craigcecilio
Website: craigcecilio.com
DiversyFund, Inc: diversyfund.com
Managing income after retirement is one of the most important things a retiree needs to plan to make the best of their savings, and with the rising interest rates and stock market volatility, there are many factors that need to be considered. This week on Grow Money Business, Grant dives into several key aspects of retirement income planning, including how to minimize tax impact, prioritizing different sources of income, planning for social security benefits, making strategic tax decisions, and more.
[02:36] Recent Developments – Grant shares his thoughts on some of the recent changes in the economy and policies that affect the way people should approach retirement planning.
[05:24] 401k Plans – How to maximize tax benefits while utilizing a 401k.
[11:33] Expenses After Retirement – Grant explains how to best manage your after-retirement expenses
[16:11] IRAs & Tax – Grant explains the tax differences between traditional and Roth IRAs and what retirees should keep in mind when taking money from these accounts.
[21:00] Strategic Tax Decisions – Grant shares a strategic move that allows retirees to minimize the tax impact on their retirement accounts while taking advantage of the gap years between the age of 65 and 72.
[29:17] Deferring Tax – How to decide whether it is beneficial to defer tax based on life expectancy
[32:46] Medicare Premiums – How to plan for minimizing Medicare premiums after retirement.
[39:06] Social Security – Grant shares his take on maximizing the social security benefits after retirement.
Resources:
What is the income-related monthly adjusted amount (IRMAA)? https://www.medicareresources.org/medicare-eligibility-and-enrollment/what-is-the-income-related-monthly-adjusted-amount-irmaa/
The Ultimate Roth IRA Conversion Guide https://www.goodfinancialcents.com/roth-ira-conversion-tax-rules/
2021-2022 Capital Gains Tax Rates — and How to Calculate Your Bill www.nerdwallet.com/article/taxes/capital-gains-tax-rates
The world of real estate is full of opportunities for investors who strive to build wealth using innovative strategies. This week on Grow Money Business, we have a fascinating conversation with Zain Jaffer. Zain is a tech entrepreneur, a real estate investor, and the founder of Vungle, which was sold to Blackstone for $780 million in an all-cash transaction in 2019. Today, he invests in real estate and real estate technology businesses through both venture capital and private equity funds.
[02:15] Zain's experience - Zain describes what he finds so appealing about real estate investing.
[09:58] Investment Opportunities - Zain shares what he looks for in new investment opportunities and how he assesses whether or not they are a suitable fit.
[16:54] Institutional Impacts on Real Estate - Zain and Grant discuss the argument that institutional interest in residential real estate is making it more challenging for individuals to purchase their own homes.
[22:15] PropTech Startups – Zain describes his future career goals and plans to continue investing in PropTech startups.
[26:33] More on Real Estate Investing - Zain shares some common themes he hears presented from startups seeking investments.
[34:09] Zain's Journey – Zain outlines his professional journey, starting with the founding of Vungle, to his eventual $780 million exit.
[41:05] Cryptocurrency – Zain shares his thoughts on cryptocurrency.
Resources:
Connect with Zain: Website: proptechvc.com/ LinkedIn: linkedin.com/in/zainjaffer/
Have you ever thought about what happens to your social media accounts when you pass away? Do you consider yourself familiar with the legal frameworks that need to be put in place to ensure your spouse has access to all of your online accounts? Our guest this week is Hannah Shakin, an attorney in Downey Brand’s estate planning department. Hannah is a qualified estate planning, probate, and trust administration specialist. Throughout the episode, Hannah shares her insight on the ins and outs of digital estate planning, as well as how you can protect yourself from making the common mistakes she sees regularly in her practice.
[02:15] Hannah's Background – Hannah shares her background and describes what she does on a day-to-day basis at her practice.
[04:42] Digital Estate Planning – Hannah describes both the evolution and the current state of digital estate planning.
[15:33] RUFADAA - Hannah details the elements of The Revised Uniform Fiduciary Access to Digital Assets Act.
[19:45] Facebook – Hannah discusses social media accounts, and what happens to them when you pass.
[23:47] Digital Assets – Hannah defines what is considered a digital asset and explains why it is vital to establish a living trust to avoid probate.
[35:49] More on Estate Planning – Hannah explains why individuals must modify their estate plans, and shares which assets will or will not be passed into a trust.
[44:41] Contingency Planning – Hannah discusses the importance of your exit strategy aligning with your estate plan.
[47:28] Common Mistakes – Hannah identifies the most common mistakes that she sees business owner’s make in her practice.
[52:24] IRA and Trust – Hannah elaborates on various facets of individual retirement accounts and trusts.
Resources:
Connect with Hannah
LinkedIn: linkedin.com/in/hannah-shakin/ Website: downeybrand.com/
With the widespread adoption of retail investing and the usage of handheld devices, investing and stock trading have become easier than ever. However, in the 1980s, it used to be an entirely different story. This week on Grow Money Business, we bring you an informative and entertaining conversation with a stock trading veteran who has been in the industry during many of the defining moments of the financial markets over the last four decades. Kenny Polcari, Managing Partner Kace Capital Advisors, joins us today to dive deep into how the stock market structure has evolved over the last few decades.
[02:54] Getting to Know Kenny – We start the conversation with Kenny’s long career in the financial sector and discuss what the New York Stock Exchange was like when Kenny began his career in the 80s.
[08:16] Building a Career – Kenny reflects on a couple of stories from the early years of his career and how he progressed through the industry.
[15:23] Stock Trading in the 80s – Kenny talks about the way stock markets worked in the 80s and why that environment was exciting.
[22:50] Members of Stock Exchange – Kenny explains the role of a member of the New York Stock exchange.
[27:17] Technology – Kenny discusses early applications of computer-based analytics for financial markets and how relying too much on technology led to a meltdown in the financial markets across the globe.
[42:19] The Tech Boom – Kenny shares his thoughts on how the massive expansion of technology that took place in the 90s shaped the financial markets.
[48:36] The Evolution – How the stock markets and the technologies used for stock trading has evolved over the last few decades.
[54:06] Impact of 9/11 – Kenny reflects on how the September 11th attacks destroyed the infrastructure of the New York Stock Exchange and the process of recovering from that destruction.
[1:00:55] Modern Stock Trading – How the modern stock trading systems make use of the latest technology available in order to make stock trading more reliable and immune to threats.
Resources:
Connect with Kenny Website: www.kacecapitaladvisors.com Twitter: twitter.com/KennyPolcari LinkedIn: linkedin.com/in/kennypolcari
With recent developments in the financial markets, we’re seeing quite a bit of people who are concerned about index investing and the effects it may have on the economy. We dedicated today’s episode of Grow Money Business to addressing some of these concerns. Throughout the episode, Grant shares his thoughts on four of the biggest arguments against index investing and some studies that question the legitimacy of each.
[03:18] Recent Developments – How the recent developments in the financial markets reignited the discussion against index funds.
[06:15] Competition – One of the major arguments against index investing is that it reduces competition within an industry. Grant shares his thoughts on why this notion is not valid.
[13:11] Corporate Governance Standards – Grant explains how index funds allocate their resources in a way that’s beneficial to shareholders and why index investing won’t create corporate governance issues.
[16:46] Price Discovery – Grant breaks down how the price discovery mechanism works and why index investing is unlikely to hurt price discovery.
[28:20] Income Inequality – Grant shares his take on the argument that index investing exacerbates income inequality.
Resources:
Could Index Funds Be ‘Worse Than Marxism’?
theatlantic.com/ideas/archive/2021/04/the-autopilot-economy/618497/
Why Index Investing Is Good for Markets
ssga.com/investment-topics/environmental-social-governance/2019/10/why-index-investing-is-good-for-markets.pdf
How to think about the unstoppable rise of index funds – The Economist
economist.com/finance-and-economics/2021/10/16/how-to-think-about-the-unstoppable-rise-of-index-funds
We live in the era of tech giants, where technology-driven businesses keep innovating and newly emerging technologies are becoming a key factor in driving business value. Our guest today, Chris Hood is the head of business innovation and strategy at Google Cloud. Throughout the conversation, Chris discusses how he assists enterprises in driving economic value through the smart application of technology.
[01:38] Chris’s Background – Chris shares his background, as well as some of his daily duties at Google.
[04:48] Digital Strategy – Chris describes how the process of deploying technology changes based on the desired customer experience and explains how difficult this can be to navigate in larger organizations.
[15:20] Frequent Technologies – Chris cites specific types of technology that he sees commonly employed and explains how they assist organizations in generating commercial value.
[22:56] API - Chris expresses his thoughts on API monetization.
[27:41] AI and Machine Learning – Chris describes common applications of AI and machine learning.
[39:12] The Future – Chris shares his predictions for the future.
[47:09] Business Owners in Transition – Chris provides some important considerations for business owners in transition.
[54:58] Twitter Deal – Chris comments on Elon Musk’s $44 billion offer to acquire Twitter.
Resources:
Connect with Chris:
LinkedIn: linkedin.com/in/chrishood/
Website: chrishood.com/
YouTube: youtube.com/c/ChrisHood/featured
Podcast: thatdigitalshow.withgoogle.com/
If you’ve been paying attention to the financial markets lately, you’ve probably noticed that interest rates have been increasing, resulting in a decrease in bond prices. Other recent developments, such as Elon Musk’s Twitter acquisition and the decreased performance of popular growth stocks, have a lot of people questioning if it is time to adjust their portfolios. In today’s episode, Grant reviews the relationship between interest rates and bonds, how investors should react to increasing interest rates, and some of the stock price behaviors related to acquisitions.
[03:30] Market Updates – Grant recaps some of the interesting developments in the financial markets.
[05:26] Growth Stocks – In recent months, some of the popular growth stocks, such as Netflix and Amazon, have not been performing very well. Grant shares his thoughts on the implications of this trend.
[07:18] Bonds and Interest Rates – Grant dives into how the value of bonds fluctuates based on the interest rates and some of the methods used to evaluate bonds.
[13:31] Responding to Interest Rates – How investors should respond to increasing interest rates and why this is not a good reason to sell your bonds.
[20:25] Bond Funds – How bond funds work, differences between stock funds and bond funds, and how to evaluate bond funds.
[27:14] 60/40 Portfolios – Grant shares his thoughts on whether 60/40 portfolios are a good asset class to invest in.
[29:46] Twitter Share Prices – Grant discusses Elon Musk’s acquisition of Twitter, and what this means for investors.
Resources
The dynamics of bond duration and rising rates investor.vanguard.com/investor-resources-education/news/the-dynamics-of-bond-duration-and-rising-rates
Rising rates don’t negate benefits of bonds investor.vanguard.com/investor-resources-education/news/rising-rates-dont-negate-benefits-of-bonds
AARP Bulletin: Don’t Ditch Those Bonds www.aarp.org/money/investing/info-09-2013/dont-ditch-those-bonds.html
It’s an undeniable fact that Jeff Bezos did some exceptional work to develop Amazon into the e-commerce giant it is today. What if you could discover Amazon’s secrets and translate them into your business? Our guest today took on the task of analyzing every investor letter addressed by Jeff Bezos to Amazon shareholders dating back to 1997. Steve Anderson, Co-Founder & CEO at Catalyit™, and the author of the international bestseller, The Bezos Letters, joins us today to dive into the 14 principles that created the Amazon that we know today.
[02:52] Summary of Letters – Steve starts the conversation with a synopsis of the letters, as well as what we can take away from them as we manage our own businesses.
[05:08] Beginning of Amazon – Steve explains Jeff Bezos's background, how his childhood inspired him, and how he ended up launching Amazon.
[11:14] Becoming a Tech Giant – Steve dives into the growth of Amazon from its IPO in 1997 to current day.
[24:38] Four categories– Steve discusses the four categories mentioned in his book, and provides an excellent explanation of the 14 principles.
[31:44] High-Velocity Decisions – Steve explains how Jeff Bezos used a unique decision-making process to accelerate Amazon’s growth.
[45:56] Amazon's Culture – Steve expresses his thoughts on Amazon's culture.
[54:40] Steve's Background – Steve shares his background, his career as an entrepreneur, and how he came to produce his phenomenal work.
Resources:
Connect with Steve: Website: thebezosletters.com LinkedIn: linkedin.com/in/stevetn/
Mentioned in the episode:
The Bezos Letters: 14 Principles to Grow Your Business Like Amazon: goodreads.com/en/book/show/51811688-the-bezos-letters
Estate Planning is crucial step in ensuring that your legacy is passed on in the way that you intended it to be. However, necessity often comes with complexity, and there are many unique circumstances that require a different course of action. Today’s guest, Tom Sannicandro, is a practicing attorney in the state of Massachusetts and an expert on Special Needs Trusts. For the last two decades, he has concentrated his legal practice on estate planning for families with disabilities or special needs children. Throughout the episode, Tom shares his wisdom and explains how he helps his clients in an underrepresented sector of estate planning.
[02:54] Tom's Journey – Tom shares why he switched his legal practice from corporate law to disability law.
[11:48] Asset Protection - Tom shares his perspective on asset protection related to individuals with disabilities.
[18:16] Finding a Trustee – Appointing a trustee for a special needs trust entails a great deal of confidence. Tom stresses the importance of selecting a suitable person to manage the trust.
[21:40] Special Needs Trust – Tom shares how he assists his clients, and what the process for setting up a special needs trust through his website looks like.
[36:08] ABLE Account – Tom discusses the functionality of a ABLE account.
[41:25] Letter of Intent – Tom and Grant discuss the purpose of a Letter of Intent.
[44:09] Medical Support vs. Financial Support – Tom shares his perspective on having an individual assisting with medical decisions simultaneously serving as the trustee.
[46:57] Future Work – Tom shares his future goals, and how he intends to continue serving his clients.
Resources:
Connect with Tom: Website: specialneedstrustsonline.com LinkedIn: linkedin.com/in/tsannicandro/
As an entrepreneur, wearing too many hats can quickly lead to burnout. This week on Grow Money Business, we talk about how and why it is so important for entrepreneurs to monitor their mental health and wellbeing. Bunny Young, a business consultant, former therapist, and third-generation entrepreneur joins us today to discuss what burnout it, how to prevent it, and some valuable lessons she has learned along the way.
[02:40] Levels of Burnout – We start the conversation with different levels of burnout and how to cope.
[05:38] PTSD –Bunny shares some signs that suggest we might be experiencing post-traumatic stress disorder.
[10:17] Burnout & PTSD – Bunny compares the signs & symptoms of burnout against that of PTSD and shares how businesses can help their staff approach mental health in a positive way.
[14:00] Preventing Big Burnout – Bunny shares her thoughts on how we can prevent a small burnout from snowballing into a big burnout.
[18:00] Workweek Patterns – Bunny gives her thoughts on why our centuries-old 40-hour workweek is no longer efficient and how entrepreneurs can make it better.
[26:00] Making Good Decisions – Bunny shares her advice for making objective and logical decisions while experiencing burnout.
[31:28] Business Background – Bunny is a third-generation entrepreneur. We talk about the businesses her parents and grandparents developed.
[38:31] Bunny’s Journey – Bunny shares her own entrepreneurial journey, and some of the career pivots she made along the way.
[53:15] Consulting – Bunny talks about her consulting firm and how they help family-centric small business owners spend more time with their loved ones.
Resources Connect with Bunny
Websites
www.bunnyyoung.com
www.abetterplaceconsulting.com
www.pawssible.org
LinkedIn: linkedin.com/in/bunnysumneryoung
Twitter: twitter.com/bunnyhas6legs
YouTube: youtube.com/channel/UCA0R6-q6BKrKXBgSEDaEFdg?
Facebook Group: facebook.com/groups/abpdifferencemakers
The world of crypto is full of amazing new innovations. In today’s episode of Grow Money Business, we’re exploring an interesting crypto-based platform that enables people who possess appreciated crypto assets to donate their crypto assets to non-profit organizations while receiving tax benefits. Pat Duffy, a co-founder of The Giving Block, joins us today to talk about their story and how their platform is connecting crypto donors with non-profit organizations.
[03:14] The Giving Block – We start the conversation with a brief look at what Pat’s company, The Giving Block, does and how it helps donors and non-profits with donations.
[07:10] The Process – Pat walks us through the process of what happens when someone interested in crypto gifting signs up with The Giving Block.
[10:00] Donor Advised Funds – The process of donating via a Donor Advised Fund with the help of The Giving Block.
[16:33] Why Crypto? – Pat shares his take on some of the reasons why non-profit organizations may want to take crypto assets as donations.
[19:05] Barriers – Some of the challenges non-profit organizations face when starting to accept crypto donations.
[27:30] Getting Traction – Pat shares with us what it was like at the beginning of his service and what it took to get enough traction for the service.
[31:30] Business Model – Pat shares with us how the business model of the Giving Block works and some of the areas the platform will be expanding into in the near future.
[36:52] Managing Growth – Pat dives into their strategy of managing their growth.
[42:54] Shift4 – The Giving Block recently got acquired by the payment processing solutions company, Shift4. Pat shares what opportunities and possibilities this acquisition will open up.
[49:10] Tips for Donating – Pat shares some advice for those who own crypto assets and want to make a crypto donation.
Resources
Connect with Pat
LinkedIn: linkedin.com/in/thisispatduffy
Website: thegivingblock.com
In today’s day and age, it takes more than just money to keep top performing employees from moving on to better opportunities. Jeff Kortes joins us today to discuss employee retention amid the Great Resignation. Jeff possesses a wealth of experience in this subject, and spent ten years in human resources before resigning and establishing his consulting practice. Throughout the episode Jeff shares the importance of workplace culture, and as well as tips for hiring and retaining the right people for your business.
[02:51] Great Resignation – Jeff describes the Great Resignation and how the COVID-19 pandemic has affected the workforce.
[05:41] Shifts in the Workforce– Jeff explores the implications of younger workers seeking other opportunities or relocating within an industry.
[06:36] Give Your Employees C.R.A.P – Jeff discusses the correlation between workplace culture and employee retention, and shares a few ways that businesses can kill employee loyalty.
[13:33] Jeff's Work – Jeff describes how his practice helps companies diagnose the underlying cause of their issues.
[17:52] Employee Retention Problems- Jeff describes how he determines whether a business has undetected or misdiagnosed staff retention issues.
[20:30] Strategy and Correction – Jeff shares their top strategies for correcting issues they find along the way.
[27:35] Finding the Right People – Jeff provides his perspective on how to know that you are hiring the right type of individual for your company.
[34:19] The Future of Work - Jeff discusses the recent shift in the workplace, and how this will affect future generations’ work habits.
[36:17] Virtual Connection – Jeff and Grant discuss how to develop and sustain culture in the day and age of remote work.
[44:04] Jeff's plans – Jeff shares his future plans and how people can connect with him.
Resources:
Connect with Jeff: LinkedIn: linkedin.com/in/jeffkortes/
Email: jeff@humanassetmgt.com Website: jeffkortes.com
Tele: 414-421-9626
Russia’s recent invasion of Ukraine and the economic sanctions that were imposed sent shockwaves through the global financial markets. As a result, the Russian Ruble plummeted to a record low, Russian stock markets were shattered, and Russian equities were removed from emerging markets indices. This week on Grow Money Business, Grant discusses how this situation affects the investment accounts and portfolios of U.S. investors and the ramifications of these phenomena.
[04:04] Index Funds – Grant dives deep into index funds, explaining market capitalization, the roles of index providers and fund managers, and depository receipts.
[12:54] Russia’s Present Condition - Russia has been obliterated from the list of index providers. As a result, Russian equities are no longer on the list. Grant provides his perspective on the background of what’s going on regarding index funds and Russian exposure.
[16:00] Inflationary Problems - Grant highlights Russia’s inflationary difficulties, emphasizing the importance of currency.
[23:36] Remedies - Grant outlines two alternatives available to a country if the value of its currency falls through the floor .
[28:15] Greece – While noting that Russia is a growing market, Grant discusses the events Greece experienced a few years ago.
Resources
Graphic: Russia stored large amounts of money with many countries. Hundreds of billions of it are now frozen
nbcnews.com/data-graphics/russian-bank-foreign-reserve-billions-frozen-sanctions-n1292153
Russia Interest Rate
tradingeconomics.com/russia/interest-rate#:~:text=Interest%20Rate%20in%20Russia%20averaged,percent%20in%20July%20of%202020.
Russia is no longer an option for investors.
edition.cnn.com/2022/03/15/investing/brics-emerging-markets-russia/index.html
What Happens to Indexes and Funds That Need to Dump Russia?
bloomberg.com/news/articles/2022-03-04/how-dumping-russia-is-creating-chaos-for-index-funds-quicktake
Have you ever heard the saying that revenue is vanity, profit is sanity, and cash is reality? Today’s guest, Robert E. Bendetti, is the CFO at Life Cycle Engineering. He holds a master's degree in accounting and financial management and an MBA specializing in small business management and entrepreneurship, as well as being a certified public accountant. Throughout the episode, we cover several key concepts that help business owners grow their businesses and adapt to ever changing markets.
[03:21] Background – Robert shares his background and the company's operations.
[05:20] Cash Flow Management - Robert emphasizes the importance of cash flow management and gives his perspective as a CFO on appropriate cash management for small enterprises.
[08:48] Cash Conversion Cycle – Robert discusses approaches to optimize the cash conversion cycle, emphasizing the importance of timely invoicing, collection challenges, and the smoothness of the payment process.
[11:50] Tips – Robert shares an approach for reducing turnaround time and illustrates a simple mechanism to increase collection rates.
[20:29] Profitability – Robert points out how to convert cash to profit, describing what balance sheet and income statement items need to be monitored.
[23:25] Paying Yourself vs. Reinvesting – Robert outlines how to decide whether to invest additional funds to boost profitability and future growth or pay yourself.
[31:41] Transition – Robert addresses what individuals approaching retirement or transition should consider 18 months before leaving a firm.
[40:25] Employee Stock Ownership Plan – Robert dives deep into ESOP and related topics.
[51:31] Global CFO Council - As President and Founder of Global CFO Council, Robert mentions what he hopes to accomplish through the organization.
Resources:
Connect with Robert:
LinkedIn: linkedin.com/in/robertbendetti/
Website: www.lce.com
Ever wonder what it takes to scam the state lottery? Terry Rich joins us on the podcast this week to discuss fraud and how to prevent it in small businesses & other organizations. Terry is the former CEO of the Iowa lottery, and helped uncover a multi-million dollar fraud before it was paid out
[02:35] Terry's Story – Terry begins the conversation by sharing his backstory.
[09:46] Underlying Reason –Terry dives deep into three key reasons why people commit fraud.
[13:19] Remedies – Terry shares his thoughts on how to identify fraudulent activities and deal with scammers, and ultimately avoid becoming victims.
[17:02] Iowa Lottery Fraud - Terry tells the fascinating story of resolving the largest lottery fraud in the United States.
[38:48] Adjustments – Terry discusses the improvements made after the fraud was discovered and addressed.
[48:25] Entrepreneurial Spirit and Creativity – Terry explains how he preserves entrepreneurial spirit and creativity.
Resources:
Connect with Terry:
Website: terryspeaks.com/
LinkedIn: linkedin.com/in/terich/
Mentioned in the episode:
Ep #117 - A Top Economist's Take on Personal Finance With Dr. Laurence Kotlikoff: growmoneybusiness.libsyn.com/website/ep-117-a-top-economists-take-on-personal-finance-with-dr-laurence-kotlikoff
The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life: Before 8AM: goodreads.com/book/show/17166225-the-miracle-morning?from_search=true&from_srp=true&qid=TjH1cq9KBa&rank=1
Iowa Lottery Fraud: nytimes.com/interactive/2018/05/03/magazine/money-issue-iowa-lottery-fraud-mystery.html
Decentralized finance (DeFi) is an emerging system of financial products and services built on blockchain technology. It utilizes secure distributed ledgers similar to those used by cryptocurrencies. In today's episode of Grow Money Business, we have an insightful conversation with Matteo Binfarè, a professor at the University of Missouri. He teaches his students about investments, pensions, endowments, and decentralized finance. Throughout the conversation, Matteo imparts his insight and years of experience in decentralized finance and cryptocurrency.
[02:33] Decentralized Finance – To kick off the conversation, Matteo defines decentralized finance and discusses its current state.
[07:13] Cryptocurrency – Matteo shares his thoughts on the impact of cryptocurrency.
[10:34] Asset Class – Matteo shares his thoughts on whether cryptocurrency deserves its own asset class.
[13:28] Web 3.0 – Web 3.0, the next avatar of the internet's world, is a technology capable of understanding and interpreting the concept of data on its own. Matteo explains Web 3.0 is and how it works.
[19:11] Governments and Bitcoin – Matteo discusses a variety of government viewpoints and regulations surrounding bitcoins.
[23:49] Smart Contracts - Matteo defines a smart contract and outlines its potential applications and benefits.
[26:25] Matteo's Story – Matteo shares his background and journey thus far.
[32:03] Asset Allocation – Matteo expresses his thoughts on whether or not cryptocurrency deserves a place in most people's portfolios, as well as how much an individual should consider allocating to it.
[43:47] Institutions - Matteo explores how institutions are approaching cryptocurrency and allocating resources.
[47:43] Research and Studies – Matteo discusses his research studies and plans to study cryptocurrencies and decentralized finance formally.
[24:59] Hazards - Matteo points out some key risks to consider while investing in cryptocurrencies.
Resources:
Connect with Matteo:
Website: matteobinfare.com
LinkedIn: linkedin.com/in/matteo-binfarè-6375724b/
Economics applies to every industry at the individual, national, and global level. In this week’s episode, we have a distinguished guest who is on a mission to make economics useful at all levels. Dr. Laurence Kotlikoff is an economics professor at Boston University. He is also the author of Money Magic, a personal finance book written from an economist's standpoint. Today's podcast examines his book and financial outlook, which frequently counters conventional economic theories. Throughout the podcast, he shares his experience in handling personal financial decisions while also discussing some insightful observations about the state of our country.
[03:38] Introduction – Laurence introduces himself and discusses his current career emphasis.
[06:22] Personal Financial Decision Making - We must see individual financial decisions through the prism of consumption smoothing. Laurence explains what this is and why it is essential.
[12:42] IRA and Mortgage - Laurence outlines why under certain circumstances, it makes sense to withdraw funds from the IRA to pay off the mortgage.
[18:43] Investments – Laurence discusses investments, stocks, and the importance of making sound investment decisions. Furthermore, he evaluates the risk associated with each sort of investment.
[32:06] Social Security – Laurence discusses how individuals can navigate the complex social security web.
[34:10] Viability - Laurence discusses the Social Security system's viability and what individuals may do to prop it up.
[42:54] Massive Deficits - Whether it is the aggregate federal deficit, unfunded liabilities, or Social Security, taxing one's way out of some deficits is politically unappealing. Laurence discusses his approach to enormous deficits.
[48:28] Politics and Economics – Laurence discusses the causes of present crises, relating them to a lack of synergy between policts and economics.
[51:33] Campaign Trail – Laurence reflects on his 2016 presidential campaign experience, and shares what he would do differently in 2024 if he was running with an unlimited campaign budget.
Resources:
Connect with Dr. Laurence:
Website: kotlikoff.net
LinkedIn: linkedin.com/in/laurencekotlikoff
Mentioned in the episode:
Maxifi: maxifiplanner.com
Economic Security Planning: economicsecurityplanning.com/
Money Magic: An Economist's Secrets to More Money, Less Risk, and a Better Life:
goodreads.com/book/show/56620849-money-magic?
An exit strategy is a key aspect in a business owner’s journey. However, the majority of business owners do not consider their exit strategy until it is too late. On today's episode of Grow Money Business, our guest is Michelle Seiler Tucker, a mergers and acquisitions specialist. She has over two decades of experience in the industry, and in that time, has assisted in selling over 500 businesses. Michelle not only aids business owners in the sale of their companies but also helps entrepreneurs and investors in acquiring businesses. Throughout the episode, Michelle imparts some of her wisdom she has accumulated over the years on growing and selling businesses.
[02:34] Introduction – Michelle introduces herself and discusses her career.
[07:18] Exiting a Business – Michelle shares key points and considerations when exiting a business.
[19:34] EBIT – Michelle explains why technology trades on multiple sales rather than EBIT.
[20:51] Additional Key Points - Michelle continues to provide her perspectives on a number of crucial elements that influence the sale of a business.
[31:48] Databases - Michelle describes the challenges and concerns regarding databases.
[34:08] Exit Rich – Michelle presents an overview of why she wrote her book, what it is about, and its target demographic.
[37:20] Interest Rates – Michelle shares her views on how interest rates affect the market for business acquisitions and sales.
[43:11] Biggest Mistakes – Michelle covers several of the most common errors she sees sellers make throughout the process.
[45:01] Confidentiality – Michelle emphasizes the importance of maintaining confidentiality when selling your business.
[50:19] Private Equity – Michelle outlines when it makes sense to start a private equity firm.
[56:15] Network of The Professional – Michelle describes the value of a professional network and how that impacts locating future opportunities.
[56:55] More on Mistakes – Michelle shares more insight on common mistakes people make when selling their business.
Resources:
Connect with Michelle: Website: seilertucker.com/ LinkedIn: linkedin.com/in/michelleseiler/
Mentioned in the episode: Exit Rich – Website: exitrichbook.com/ Exit Rich: The 6 P Method to Sell Your Business for Huge Profit: amazon.com/Exit-Rich-Method-Business-Profit/dp/1732510288
The One Thing: The Surprisingly Simple Truth Behind Extraordinary Results: goodreads.com/book/show/16256798-the-one-thing?from_search=true&from_srp=true&qid=DLnL9TNUJe&rank=1 Behavioral Economics With Professor John Howe: growmoneybusiness.com/podcast/j3btlxn8z2ed5rk-5yafn-a3bk7-nlw7f-4yd36-3xz8x-esp9s-mjjal-36m55-tmdaw-g9edn-mdj2k-jfl5m-f9mrf-zy743-sy532
Protecting assets and data from digital threats is crucial for the integrity and reputation of any business. In today’s episode of Grow Money Business, we have a fascinating conversation with Amir Tarighat. Amir is the founder and CEO at Agency, a firm that provides enterprise-level cybersecurity solutions for growing companies. Throughout the episode, he delves deeper into enlightening aspects of cybersecurity, including why it is vital to have a plan in place for your business.
[03:34] Background – Amir talks about his background, how he entered the field of cybersecurity, and why he decided to build his own company.
[05:16] Cybersecurity – Amir explains the necessity of cybersecurity as more firms migrate from on-premises to cloud-based services.
[07:38] Vulnerabilities – The list of online vulnerabilities is extensive and ever-changing. Amir discusses the vulnerabilities through applications such as Amazon and Google.
[10:12] Dark Web Monitoring – Amir explains how his company helps its clients through dark web monitoring.
[12:54] Malware - Amir describes types of malware, how malware can get into a business’s computer systems, and the consequences once that occurs.
[16:23] Remedies – Amir walks us through the process of recovering from a ransomware attack.
[19:43] Stay Safe – Amir highlights the procedures that must be taken to remain safe online, both as an individual and as a business.
[22:44] VPN – Amir discusses VPNs and their relevance to online safety.
[26:02] Password Managers – Amir emphasizes the need for password managers, as well as two-factor authentication, and shares his preferred password manager software.
[30:36] Mobile Applications – Amir explains why it is critical to be cautious about the apps downloaded onto phones.
[33:12] Updates – Amir discusses the importance of keeping all the devices and software up to date.
[35:36] More on Agency – Amir shares about his company and the numerous ways in which they assist people.
[40:47] Debit Card vs. Credit Card – Grant offers sound advice on the usage of debit and credit cards.
Resources:
Connect with Amir:
Website: getagency.com
LinkedIn: linkedin.com/in/atarighat/
Twitter: twitter.com/atarighat
When confronted with significant decisions, our thoughts frequently stand in the way of rational decision-making. Today's episode of Grow Money Business features John Howe, a finance professor at the University of Missouri. He is an award-winning educator and researcher with expertise in investments, behavioral economics, household finance, corporate finance, and corporate governance. He is also the author of the book The Foolish Corner: Avoiding Mind Traps in Personal Financial Decisions. Throughout this episode, he shares his expertise and wisdom on behavioral economics, focusing specifically on the behavioral biases we all have regarding investing.
[03:36] Behavioral Economics – Prof. Howe discusses his background, career, and current activities.
[07:23] Kahneman's Nobel Price - Behavioral economics is a field of study that lies at the nexus of economics and psychology. Prof. Howe discusses how the Nobel laureate's teaching of behavioral economics impacts his teachings.
[10:53] Diversified Portfolios – Prof. Howe highlights the importance of diversifying one's investments.
[15:00] Confirmation Bias – Confirmation bias is a term that refers to our natural predisposition to be receptive to new information that confirms our existing beliefs. Prof. Howe explains how confirmation bias affects the decisions we make on a day to day basis.
[20:19] Transitions – Individuals frequently undergo transitions, such as selling a business they have built over the years or acquiring another. Prof. Howe shares his insights on what should be considered during such a transition.
[26:43] More on Biases – Prof. Howe explains the reason behind biases by presenting examples from evolutionary psychology.
[30:00] Reproducibility – One of the trademarks of the scientific method is the ability to replicate an experiment and obtain the same results. Prof. Howe broadly discusses the reproducibility issue in psychological research.
[40:49] Better Decisions - Prof. Howe explains how being well informed on biases can help us making better decisions in the future.
[49:31] The Future - Prof. Howe discusses the current research going in the field, as well as the future of behavioral economics.
[57:59] Research - Prof. Howe shares the current scientific issues that pique his interest.
[01:02:29] Mental Health - Prof. Howe shares his observations concerning the state of mental health in the United States and the way it affects people's financial decisions.
[01:06:28] Gamblers – Prof. Howe outlines his view on gambling and how this relates to the human capacity for pattern recognition
[01:08:52] Books – Prof. Howe shares several books that are worth reading.
Resources:
Connect with Professor John Howe:
LinkedIn: linkedin.com/in/john-howe-1013498/
Newsletter: johnhowe.substack.com/welcome
Mentioned in the episode:
Your body language may shape who you are | Amy Cuddy: youtube.com/watch?v=Ks-_Mh1QhMc
The Foolish Corner: Avoiding Mind Traps in Personal Financial Decisions: amazon.com/Foolish-Corner-Avoiding-Financial-Decisions/dp/099851070X
Science Fictions: How Fraud, Bias, Negligence, and Hype Undermine the Search for Truth: amazon.com/Science-Fictions-Negligence-Undermine-Search/dp/1250222699
Rationality: What It Is, Why It Seems Scarce, Why It Matters: amazon.com/Rationality-What-Seems-Scarce-Matters/dp/0525561994
Misbehaving: The Making of Behavioral Economics: amazon.com/Misbehaving-Behavioral-Economics-Richard-Thaler/dp/039335279X
Thinking, Fast and Slow: amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555
The Psychology of Money: Timeless lessons on wealth, greed, and happiness: amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681
Regardless of what profession or industry we're in, our mindset is a crucial factor that defines growth. Today's podcast deviates slightly from the norm in terms of technical content and delves deeper into the philosophical domain. Our guest, Dominic Rubino, is an entrepreneur with a unique background. Dominic has worked in various enterprises and is now a coach, supporting employees in the construction industry in developing a positive attitude and increasing profits. Throughout the episode, he shares his expertise and experience on aligning your business activities with your personal life and creating the life you desire through your business operations.
[02:55] Dominic's Background – Dominic explains his background, his current endeavors, and how he got to where he is today.
[05:58] Mindset - Dominic discusses how our success or failure is determined by unique perspective, and the lens through which we view the world.
[10:35] Business Coach - Dominic discusses the importance and role of a business coach.
[12:47] Success – Dominic shares his thoughts on defining success and suggests ways for individuals to plan strategically toward it.
[17:49] Circle of Friends – Dominic emphasizes the importance of having a supportive community of friends.
[20:42] Strategic Planning Process – Dominic discusses the strategic planning process, and highlights simple exercises and reading material to help you along the way.
[26:21] Personal Experience – Dominic shares personal experience gained from his entrepreneurial endeavors.
[38:21] Mindset in Coaching Business – Dominic discusses how he maintains his mindset as a coach.
[41:28] Dominic's Podcast – Dominic talks about his podcasts and what inspired him to start them.
Resources:
Connect with Dominic: LinkedIn: linkedin.com/in/dominicrubino Website: profittoolbelt.com/
Mentioned in the episode: Traction: goodreads.com/book/show/8549192-traction?from_search=true&from_srp=true&qid=L77ID7gyYk&rank=2
Mastering the Rockefeller Habits: What You Must Do to Increase the Value of Your Growing Firm: goodreads.com/book/show/16120.Mastering_the_Rockefeller_Habits?from_search=true&from_srp=true&qid=wctFOxvrHH&rank=1
The Ultimate Playbook On Building A Profitable Construction Business: constructionmillionairesecrets.com/
Both 1031 Exchanges and Delaware statutory trusts are essential instruments for financial planning. In today's episode, we explore more about the deferring taxes using 1031 Exchanges and Delaware statutory trusts with Jamie & Patrick Furlong. Jamie & Patrick specialize in 1031 Exchanges with DST's and other securitized real estate investments. They exclusively serve clients seeking to acquire replacement properties in a 1031 exchange, navigate the complexities and time restrictions in the ever-changing 1031 environment through their company, Legacy Investment Real Estate.
[04:05] Story of Jamie & Patrick – Patrick shares their origin story, what they do, and how they do it.
[11:32] Delaware Statutory Trust – Jamie and Patrick explain Delaware statutory trust in detail, sharing compressive real-life examples.
[19:37] Importance of DST - Jamie talks about the significance of Delaware statutory trust and why someone should invest a property into a Delaware statutory trust in the first place.
[33:15] Holding Period - Non-traded real estate investment trusts can bring you a vast misfortune. Jamie discusses the holding time you should consider when contemplating real estate investment trusts.
[37:46] Role of the Manager – Patrick talks about the manager's role in Delaware statutory trusts.
[46:49] 1031 Exchange Tax Code – Jamie and Patrick talk about the predictable changes in the 1031 Exchange tax code.
Resources:
Connect with Jamie and Patrick:
Website: legacyire.com
Jamie LinkedIn: linkedin.com/in/jamie-furlong-927b9658/
Email: jamie@legacy1031exchange.com
Patrick LinkedIn: linkedin.com/in/farmranch1031exchangennn/ Email: patrick@legacy1031exchange.com
Cryptocurrency has been one of the most popular topics in the financial media in the last few years. It is a transferable digital asset or digital form of money exclusively available online based on blockchain technology. My guest today, Timothy Picciott CFP® CRPC®, Wealth Advisor in Innovative Advisory Group, is a pioneer in cryptocurrency wealth management solutions. He works with Bitcoin and cryptocurrency early adopters to give innovative financial planning solutions, enabling them to pay a minimum tax on their highly appreciated asset as legally possible, while also educating crypto fans on investing in "Crypto IRAs" through self-directed IRAs and 401(K)s.
[03:19] Tim's story – Tim shares details about his career and how he came to be in his current position.
[10.48] Fiat Currency - Tim expresses his thoughts about the evolution of fiat currency.
[14:41] Bitcoin and Blockchain – Tim elaborates on his views on Bitcoin and blockchain technology.
[16:57] Opinions – Tim discusses the significance of studying Bitcoins properly and thoroughly.
[22:11] Double-Spend Problem – Tim explains Bitcoin’s potential of solving the double-spend problem.
[27:58] Tech Aspects – Tim goes into greater detail on the technical aspects and benefits of Bitcoin.
[31:00] Electricity - Another objection leveled with Bitcoin is the electricity required to mine them. Tim evaluates the effect of power on bitcoin mining and the resulting implications.
[34:43] Smart Contracts – Tim discusses how smart contracts enabled by blockchain technology have the potential to transform lives.
[36:00] Geopolitical Implications – Tim shares his insights on current world trends along with his take on the US and China's movements on Bitcoin.
[46:59] Future of Bitcoins – Tim goes to great length on his predictions for Bitcoin's future.
Resources:
Connect with Tim:
Website: thelibertyadvisor.com
Website: innovativewealth.com
LinkedIn: linkedin.com/in/timothy-t-picciott-cfp%C2%AE-crpc%C2%AE-547b0b8/
Instagram: @the_liberty_advisor
Podcast: The Liberty Advisor Show W/ Tim Picciott: podcasts.apple.com/us/podcast/the-liberty-advisor-show-w-tim-picciott/id1238430499
Mentioned in the episode:
Ep #107 - Central Bank Digital Currency: Dangers & Possibilities with J Scott Christianson: growmoneybusiness.libsyn.com/website/ep-107-central-bank-digital-currency-dangers-possibilities-with-j-scott-christianson
A lack of succession planning can have disastrous consequences for a business, especially when your business is family owned and operated. This week on Grow Money Business, Stephen Shortt, an expert in family business succession planning, is joining us to share his experience and wisdom. Stephen has worked in his two-family businesses for most of his adult life and childhood, and as a result, he is familiar with the ups and downs associated with transitioning between generations. Throughout the episode, he delves into the framework needed to navigate family business successions successfully.
[03:35] Stephen's Background – Stephen introduces himself and provides an overview of his current work.
[07:13] First Step – Stephen explains where to begin to ensure a seamless and successful family succession.
[11:31] Mindsets – Stephen talks about three critical mindsets for succession planning
[15:28] Personal Experience – Stephen shares his personal experience on his family business and how their transitions were handled.
[19:27] Succession Strategy – Stephen broadly describes the succession strategy for a family business.
[22:00] Challenges – Stephen explains overcoming various adversities during the succession process.
[26:30] Family Board – Stephen expresses his thoughts on the importance of having a family board.
[28:44] Five P’s – Stephen discusses the “five P’s” framework for navigating family business successions
Resources:
Connect with Stephen:
Website: successfulsuccession.com/
LinkedIn: linkedin.com/in/stephenshortt/
Possessing the ownership of the building in which your business is based can be a significant source of income for a business. This week on Grow Money Business we have a distinguished guest whi educates physician owners and investors on healthcare real estate investment opportunities. Trisha Talbot is the Managing Principal of Doc Properties, through which she supports healthcare practitioners in maximizing the economic worth of their real estate holdings on which they conduct business. Throughout this week's episode of Grow Money Business, we delve into numerous aspects of purchasing and constructing the building in which your firm operates.
[02.42] Trisha's Background - Trisha narrates her journey so far. Also, she explains the work she carries out through her business.
[06:56] Transfer Tenant Improvements - Trisha discusses numerous points to consider when transferring tenant improvements into a new location.
[08:55] Patient Base - Trisha emphasizes the importance of the patient base while determining the best location for a medical practice.
[11:00] Types of Buildings - Mentioning the significance of real estate supply, Trisha explains numerous types of buildings.
[16.35] Commercial Property Asset Prices - Trisha talks about commercial real estate asset values. Furthermore, she shares her viewpoint of them as investments.
[21.29] Lease Terms - There are numerous critical factors to consider when filling out lease conditions. Trisha highlights some of them.
[26:44] Construction - Trisha discusses the advantages and disadvantages of constructing the buildings by approaching numerous aspects.
[44:38] Role of Landlords - Sharing her thoughts on tax benefits caused by owning the building, Trisha speaks about the role of the landlords.
[51:59] Common Mistakes - Trisha points out several instances where physicians and others are getting themselves into problems in purchasing and constructing buildings these days.
[55:59] Final Advice - Trisha delivers her final comments to business owners considering acquiring a building for use in their business.
Recourses:
Connect with Trisha:
Website: docproperties.com/
Email: ttalbot@docproperties.com
LinkedIn: linkedin.com/in/trishatalbot/
There is a common misconception that successful entrepreneurship exists only for younger individuals. This week on the podcast, Rick Terrien shares why we should challenge that thought process. Rick, a long-term entrepreneur and author, shares how he has dedicated his time to assisting others with launching a business in their second half of life. Throughout the episode, we dive deep into the essentials of entrepreneurship and crucial information that will give you inspiration and guidance along the way.
[02:29] Rick’s Journey - Rick talks about his work and the latest events in his life.
[09: 56] Age and Entrepreneurship - Rick shares his views on the correlation between age and business.
[11:47] Initial Steps - Rick discusses how to think about the initial organizing steps of a business.
[12:59] Important Facts - Rick explains a few essential facts that need to be considered in entrepreneurship, especially when you’re considering starting a new business venture in the second half of your life.
[17:43] Non-Profit Work - Rick shares the non-profit work he currently engages in and his purpose of doing that.
[31:20] Impact of Covid - Covid has changed a lot in people’s lives. Rick expresses his thoughts about how it has affected the occupations.
[33:48] Ageless Startup - Rick talks about his recently published book, Ageless Startup: Start a Business at Any Age.
[40:34] Common Mistakes - Rick highlights several critical mistakes many entrepreneurs make in their business ventures and how to avoid these mistakes.
Resources:
Connect with Rick:
LinkedIn: linkedin.com/in/rickterrien/
Website:
The Center for Ageless Entrepreneurs: agelessentrepreneurs.org
Ageless Startup: Start a Business at Any Age: ageless-startup.com
Mentioned in the Episode:
Ageless Startup: Start a Business at Any Age: goodreads.com/book/show/53714833-ageless-startup?from_search=true&from_srp=true&qid=LtUd8Tuz3z&rank=1
Money has taken a lot of different forms over time, including gold & other metals in addition to fiat paper currencies. It's arguable whether bitcoin and other decentralized currencies are the next version of money. What's clear is that governments around the world are in an arms race to create their version of "centralized" digital currency. In today's episode of Grow Money Business, J Scott Christianson joins us to describe central bank digital currencies, the arms race to create them, and potential uses and misuses in the future.
[02:44] Digital Currency - While digital currencies have become relatively recent mainstream phenomena, they have existed for decades. Scott discusses this new endeavor of developing digital currency.
[07:28] Adopting Digital Currency – Scott highlights the gravity of adopting digital currency in a country by assessing its dangers and possibilities.
[10:39] Transition - Scott outlines how moving from a conventional reserve system to digital money works logistically.
[13:37] China and Digital Currency - Scott broadly talks about China's stance on digital currency from various angles.
[19:37] China and El Salvador - While China prohibits bitcoin transactions and mining, El Salvador accepts Bitcoin as legal tender. Scott shares his perspective on this schism.
[23:36] Role of USA – Scott discusses the options that the US may have in its arsenal to delay China's deployment of programmable money.
[28:25] Banking System in the Future - Scott discusses the potential of more authoritarian counties attempting to implement controlled digital currencies, and his predictions for the global banking system in five years.
[35:23] Fiat Currency and Cryptocurrency - Scott shares his thoughts on that intersection between fiat currency and cryptocurrency.
[40:42] Artificial Intelligence – Scott briefly discusses artificial intelligence and his predictions for where it will go in the next five to ten years.
[48:48] Life with AI – Scott shares what applications he believes AI will enable in the following years.
Resources:
Connect with Scott:
Website: christiansonjs.com/
Newsletter: frtech.substack.com/
LinkedIn: linkedin.com/in/jscottchristianson/
Instagram: instagram.com/jscott_mo/
Mentioned in the episode:
China's Second Continent: How a Million Migrants Are Building a New Empire in Africa:goodreads.com/book/show/18373202-china-s-second-continent?from_search=true&from_srp=true&qid=xKOtuMBlWl&rank=1
Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It: goodreads.com/book/show/36204377-edge-of-chaos?from_search=true&from_srp=true&qid=p27uTlbTHw&rank=3
Many business owners eventually come to the point where they will be moving on from the business they passionately built over the years, and having a good exit strategy will help them navigate this important and intimate event in their journey of entrepreneurship. This week on Grow Money Business, we have a distinguished guest, Scott Snider, the President and the co-owner of the Exit Planning Institute (EPI). Scott is an industry leader, growth expert, and entrepreneur. Throughout the episode, he discusses how he assists company owners in developing substantial businesses while also aligning their own financial objectives and personal purposes. He also explains several vital factors that every business owner should consider when exiting their company.
[03:26] Current Role – Scott talks about his current role and how he helps businesses with exit planning.
[06:40] Perfect Exit - Scott shares his insights about the perfect exit to a business owner who is about to do so in a few years.
[10:23] Emotional Hurdles - Scott expresses his thoughts on managing psychology and people's emotional hurdles along the business exit process.
[14:12] CEPA - CEPA is an acronym for Certified Exit Planning Advisor. Scott gives a brief explanation for the entire CEPA process.
[18:54] Exit Strategy for Young Entrepreneurs - Scott leaves a message to all the young business owners out there.
[20:21] Scott's Story- Scott emphasizes the significance of not letting your business define you while sharing his story and takeaways from his past experience.
[29:35] Family Business – Explaining the nature of the family business, Scott shares how he and his father work together in their family business.
[41:43] Vision - CEPA is suitable for any advisor who wants to learn how to help an owner position their company for a successful and significant exit. Scott broadly talks about the vision of the Exit Planning Institute.
[47:43] Future Plans - Having explained the concept of the wealth gap, Scott explains the future plans for his business.
[53:33] Research Findings -Scott shares details about one of his recent researches and exciting factors they discovered through it.
Resources
Connect With Scott:
LinkedIn: linkedin.com/in/scott-snider-epi/
Website: exit-planning-institute.org
Facebook : facebook.com/exitplanninginstitute/
Instagram: instagram.com/exitplanninginstitute/
Mentioned in the Episode:
Certified Exit Planning Advisor: exit-planning-institute.org/program/certified-exit-planning-advisor/
Owner Readiness: exit-planning-institute.org/state-of-owner-readiness/
Every Family's Business by Tom Deans: https://everyfamiliesbusiness.com/book/
Traction by Gino Wickman: https://www.audible.com/pd/Traction-Audiobook/B00A9ZO7T6
From October 2020 to October 2021, the Consumer Price Index for All Urban Consumers grew by 6.2 percent, which according to the Bureau of Labor Statistics, was the most significant 12-month gain since November 1990. In relation to this data, we have dedicated today's episode to exploring more about inflation. Throughout this episode, Grant shares his thoughts about the impact of inflation on the present economic environment and numerous ways to mitigate the risk of inflation.
[04:21] CPI – Grant explains what CPI is and its relationship with the inflation rate.
[06:40] Inflation – Grant explains inflation in simple terms, pointing out several misconceptions about it.
[09:20] Will the History Repeat? – Grant analyzes and compares the current economic context in the US with the economy in the late 70s and early 80s.
[10:12] Gold and US Dollars – Grant broadly explains the evolution of the relationship between gold and US dollars.
[15:30] Present Economic Situation – Grant delves deeply into the current economic climate in the United States from various perspectives and then provides his thoughts on those observations.
[20:55] TIPS - Grant discusses how increasing your allocation to Treasury Inflation-Protected Securities can act as an inflation hedge.
[23:32] Series I bonds – Grant identifies investing in these types of bonds as an excellent alternative to hedge inflation.
[28:26] Investing in Gold – Grant discusses the potential of investing in gold and shares his thoughts on the matter.
[32:12] Equity – Grant identifies equities as an excellent inflation hedge in the long term.
[34:52] Asset Allocation– As a final remark, Grant discusses his ideas on asset allocation in general.
From developing an idea into a viable business to growing revenue, managing finances, and eventual exit and sale, the journey of entrepreneurship can be risky and fascinating. In the upcoming episodes of Grow Money Business, we will have individuals on the show sharing their exciting entrepreneurial stories. In today’s episode, Lindsay Pinchuk, an award-winning entrepreneur, joins us today to share her story of growing Bump Club & Beyond, one of the premier parenting communities in the country.
[03:36] Lindsay’s Story – Lindsay shares how she got the idea of starting her business and the exciting entrepreneurial journey that came with it.
[9.57] Structure – Lindsay explains how her previous work experience helped her in modeling her business structure.
[10:38] Monetizing – Whatever the business is, monetizing plays a vital role. Lindsay broadly describes how she utilizes the power of community for monetization.
[15:33] Taking the Shift – Lindsay talks about why she gave up her career for her business and what that transition looked like.
[17.33] Financing – Lindsay shares how she embedded the financial aspects, such as bookkeeping and having an accountant, into her business as it grew.
[20:00] Entity Structure – Lindsay shares with us some of the lessons she learned about setting up the right business structure and hiring the right kind of people for the business to flourish.
[28:54] Outsourced CFO – Lindsay talks about the financial support she got by outsourcing the CFO position, especially when creating valuations for the business.
[30.30] Acquisitions – Lindsay talks about how she received acquisition offers from three different entities for her business in 2018 and the process that followed.
[33.13] Message to the Entrepreneurs - Lindsay shares some lessons she learned from her business journey.
[42:30] Business & Personal Life – Lindsay shares her experience of managing personal finances and business as a mother.
Resources:
Connect with Lindsay
Website: lindsaypinchuk.com/
LinkedIn: linkedin.com/in/lindsaypinchuk/
For more tips to help you start and grow your business, follow Lindsay on Instagram: instagram.com/lindsaypinchuk/
You can also grab some of her free guides:
5 Tips + Tools for Starting Your Own Business: view.flodesk.com/pages/6192a54d3a0e5bcf6f542228
Six Super Simple Tips for Social Media Success:view.flodesk.com/pages/61929cab839edddd7aa02829
Make sure you check out her podcast Dear Found Her, coming in January. Subscribe on Apple, Spotify, or wherever you listen.: podcasts.apple.com/us/podcast/dear-foundher/id1591976277
For further discussion with other founders, join the Dear Found Her Facebook Group: facebook.com/groups/dearfoundher/
The Social Security 2100 Act was recently introduced by the Social Security Subcommittee of the House Ways and Means Committee. The reinstatement follows the Social Security Administration's latest forecasts that the trust funds will deplete in 13 years. In this episode, Grant dives into the status of the Social Security Trust fund, some potential solutions to buffer its reserves, and his overall thoughts on the proposed bill.
[04:35] Concept of Social Security Trust Fund – Grant explains the whole idea behind the social security trust fund and how it has evolved over the decades.
[06:10] Time to Revise – Why this is the time to revise rules and regulations related to social security.
[09:54] Running out of Money – Grant shares his take on the depleting reserve in the social security trust fund.
[14:26] Raise the Retirement age – Though raising the retirement age is an option for buffering the reserve on the trust fund, Grant explains why it may not be as easy as it sounds.
[15:06] Increase Taxes – Grant identifies a tax increase as the easiest option politically, and explains how this solution will contribute to the elimination of wealth inequality in the country.
[17:30] Adjust the Benefits – How adjusting the amount going out of the fund is another option to prolong the reserve.
[18:18] Social Security 2100 act – Grant dives deep into the provisions of the proposed act and shares his thoughts.
[23:11] Investing in US Government Bonds – Though there is added risk, Grant explains how investing the excess of the social security trust fund in US government bonds will help to grow the pool of assets a little bit faster.
Resources
Social Security Board of Trustees: Combined Trust Funds Projected Depletion One Year Sooner Than Last Year: ssa.gov/news/press/releases/2021/#8-2021-2
Congress has a new plan to fix Social Security. How it would change benefits: cnbc.com/2021/10/26/social-security-what-a-new-plan-in-congress-would-mean-for-benefits.html
Every year mutual funds are required to distribute capital gains to shareholders – whether you like it or not. Even though “gains” are typically a good thing, they can also leave you with a big unwanted tax bill. This week we cover everything you need to know about mutual fund capital gains distributions, including how to forecast, plan for, and avoid them.
[02:35] Important Period – Grant starts the discussion by mentioning the parties that need to stay updated about mutual funds during this time of the year.
[05:45] Structure of Mutual Funds – Grant provides a broad description of the structure of mutual funds from various perspectives.
[11:16] Capital Gains Distribution – Keeping an eye on the company portfolio in the mutual fund is important as an investor. Grant shares his thoughts on how to benefit from capital gains distributions.
[14:12] Options for the Investors – Grant explains the numerous options that the investors have at the year-end related to mutual fund investments.
[16:45] Active Mutual Funds and Passive Mutual Funds – Grant analyzes the effect on the distributions of capital gains by active and passive mutual funds, giving numerical examples.
[19:48] Exchange Traded Fund – Capital gains distributions of exchange-traded funds are quite different from the above. Grant dives into exchange-traded funds explaining it with several examples.
Resources
Capital Gains Roundup: 2021 Edition | Strong performance and outflows generate some big taxable distributions: morningstar.com/articles/1065314/capital-gains-roundup-2021-edition
Fund Capital Gains Distributions: What to Expect in 2021 |A strong year suggests that a decent amount of capital gains will be paid out: morningstar.com/articles/1063488/fund-capital-gains-distributions-what-to-expect-in-2021
Cryptocurrency and Exchange-Traded Funds have been two of the most popular areas in the investment market in recent years. Lately we’ve been observing increasing interest among investors using a combination of cryptocurrencies and ETFs, and we dedicated today’s episode to exploring the possibilities and concerns related to this new addition to the investment arena. Throughout the episode, Grant dives into how Bitcoin ETFs work, the pros and cons of them, and what you should keep in mind if you’re interested in Bitcoin ETFs.
[02:09] Recent Developments – Grant starts the discussion with a review of how and why cryptocurrencies grew in popularity over the last few years.
[04:37] Diversity of ETFs – How the diverse nature of the ETFs allowed them to utilize cryptocurrencies and the challenges associated with getting a cryptocurrency involved in a mainstream investment vehicle.
[08:12] Newcomers to the Market – Grant reviews a couple of newly introduced ETFs that are backed by Bitcoin and the pros and cons of investing in these compared to a traditional ETF.
[10:48] Futures Contracts – How the futures markets work and how they relate to the way crypto-backed ETFs function.
[14:36] Obscure Costs – Because of the way BTC-backed ETFs are connected to futures contracts, there are some costs involved in the process that may go unnoticed. Grant explains what investors need to keep in mind about the costs of the Bitcoin ETFs.
[16:41] Leveraged ETFs & Mutual Funds – Grant shares his thoughts on the functionality of the two investment vehicles and the similarities they share with Bitcoin ETFs.
[20:10] Bond Funds – Grant explains the difference between how bond funds operate versus investment vehicles based on futures contracts.
Resources:
The Wall Street Journal - ETFs Are a Bad Way to Bet on Bitcoin: wsj.com/articles/etfs-are-a-bad-way-to-bet-on-bitcoin-11635261745
The Wall Street Journal - Bitcoin ETF’s Success Could Come at Fundholders’ Expense: wsj.com/articles/bitcoin-etfs-success-could-come-at-fundholders-expense-11635080580
Health insurance is an essential aspect in recruiting and retaining employees as well as sustaining productivity and employee happiness in a small business. In today’s episode, we have a distinguished guest, John Butler, joining us to take a deep dive into what business owners should know about health insurance. John is a national C-suite health benefits consultant, strategic coach, and the author of “Health Insurance Sucks,” the number one ranking book on Amazon in its category. Throughout this episode, John shares his insights on how businesses can reduce the cost of the health insurance they provide to their employees.
[02:22] John’s background - John shares his journey and what inspired him to write the book “Health Insurance Sucks.”
[05:25] Healthcare Costs - John explains his observations and findings on numerous methods to reduce healthcare costs.
[07:05] PEO - John describes how small businesses can benefit from Professional Employer Organizations.
[08:20] Custom Plan Solutions - With a comprehensive analysis, John points out how a custom health plan assures the highest quality service with a reasonable cost.
[18:56] Insurance Companies and Brokers – John talks about the relationship between insurance companies and brokers, and shares his thoughts from the perspective of each party.
[34:15] Federal Requirements - John explores the federal requirements and penalties related to employees’ health plans.
[38:54] Health Sharing Programs – John emphasizes the significance of health sharing programs.
[48:28] Current Social Context – The healthcare insurance industry consists of many complex layers. John shares his take on the healthcare plans in the current social context.
Resources
Connect with John Butler:
Website: jb-benefits.com
LinkedIn: linkedin.com/in/jbbenefitsconsulting/
Mentioned in the Episode
Health Insurance Sucks - The Moral Case for Better Business Healthcare: goodreads.com/book/show/58502517-health-insurance-sucks---the-moral-case-for-better-business-healthcare?from_search=true&from_srp=true&qid=KIWCNRWz38&rank=1
The open enrollment period for Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) is approaching. During the enrollment period, employees can enroll in or amend their contributions for the future year for FSAs and HSAs, which they can use to pay for their healthcare-related expenses. We dedicated today’s episode to taking a deep dive into several vital facts related to FSA, Dependent care FSA, HSA, and the numerous ways to maximize your workplace benefits under each of them.
[04:37] Flexible Spending Account (FSA) - Grant explains what FSA means, how it works, and who can contribute.
[07:55] Plan the Health Expenses – Why it is essential to forecast the health expenses to pay them on a tax-deferred basis through FSA versus paying out of pocket.
[09:18] Spend the Fund at Pharmacy – Beneficial features of FSAs, such as the ability to spend the funds at a pharmacy, and why having this option is significant.
[10:10] Dependent Care FSA – Grant explains the purpose of a Dependent Care FSA, its benefits, and several facts to keep in mind if you are considering using one.
[15:30] HSA – How to contribute to and HSA and the fantastic tax benefits and investment opportunities that come along with it
[19:12] Eligibility for HSA – Grant explains the eligibility requirements for HSAs, including having a High-Deductible Health Plan (HDHP).
[26:00] Connection to the employer - Grant discusses the connection between your HSA and your employer, and why employees can take their balance with them when they’re switching employers.
Resources: What Is a Flexible Spending Account (FSA)? investopedia.com/terms/f/flexiblespendingaccount.asp
What Is a Health Savings Account (HSA)? investopedia.com/terms/h/hsa.asp
With the open enrollment period set to start on October 15th 2021, this is a great time to dive deep into the vital facts related to Medicare. In today’s episode, we have a distinguished guest, Danielle Roberts, joining us. Danielle is a co-owner of Boomer Benefits, a firm dedicated to helping senior citizens make confident decisions when enrolling into Medicare, as well as the author of the best-selling book “10 Costly Medicare Mistakes You Can’t Afford to Make”. Throughout this episode, Danielle shares her wisdom on all the crucial points you need to know if you intend to enroll in Medicare.
[02:25] Danielle’s Background - Danielle introduces herself and explains what they do at Boomer Benefits.
[04:00] Common Mistakes - Danielle shares some of the most common mistakes she sees people make when enrolling for Medicare, and what you can do to avoid them.
[08:01] Parts of Medicare – Parts A, B, C, and D of Medicare and the differences between them.
[10:49] Medigap Plan and Medicare Advantage Plan - Danielle broadly describes the role of Medicare Advantage policy and the Medigap plans while highlighting their differences.
[16:59] Most Suitable Plan for You - Though 34% of beneficiaries choose Medicare advantage plans, Danielle explains how to be mindful when making the best decision for you.
[21:47] Subsequent Changes to the Plan – Danielle’s suggestions on how beneficiaries can change their enrolled plans in subsequent years.
[26:48] Switching Between Medigap Policies - Possible ways to switch between different Medigap policies and the procedures you’ll need to follow.
[28:59] Eligibility Criteria for Medicare - Danielle outlines the eligibility criteria for enrolling in Medicare.
[32:23] Medicare Fund - The correlation between the reserves in the Medicare fund and the benefits Medicare offers.
[38:08] Single-payer System - Danielle shares her insights on the rising health care costs and the viability of a single-payer system.
[42:23] Pharmaceuticals and Drugs - Grant and Danielle discuss some of the current trends in the pharmaceuticals industry and the business interests that may affect Medicare.
[47:09] Boomer Benefits - Danielle talks about how Boomer Benefits helps people with Medicare basics, benefits, and coverage.
Resources
Connect with Danielle Roberts: Website: boomerbenefits.com/ YouTube: youtube.com/c/BoomerBenefits Facebook Page: facebook.com/BoomerBenefits Facebook Group: facebook.com/groups/BoomerBenefits LinkedIn: linkedin.com/in/daniellekunkle/
Mentioned in the episode:
10 Costly Medicare Mistakes You Can’t Afford to Make: goodreads.com/book/show/55204934-10-costly-medicare-mistakes-you-can-t-afford-to-make?from_search=true&from_srp=true&qid=1Wia7eTzTY&rank=1
The United States Social Security Website: ssa.gov/ Official U.S. government site for Medicare: medicare.gov/
A lot has happened in the cryptocurrency arena since we last covered this topic on Grow Money Business. Last week China announced that they are banning all activities in cryptocurrency while a month ago, El-Salvador announced that it would accept Bitcoin as a legal tender. In today's episode, Grant shares his current thoughts and observations on cryptocurrency-related developments in the United States and around the world.
[02:46] Recent Events - Grant starts the conversation by briefly explaining the impact of both China and El Salvador’s approaches to using cryptocurrency.
[05:17] Benefits of Cryptocurrency - The benefits of cryptocurrency and why it is an appealing and convenient alternative for existing currency issues.
[07:05] Growing Chinese Economy - Grant compares the pace of China's economic growth to the USA and reviews its intention of overtaking the USA as a world economic power.
[08:50] World Reserve Currency - Grant dives into the world reserve currency from numerous perspectives, including economic privileges that it opens for certain countries and why the USA needs US dollars as the world reserve currency.
[12:45] China and Cryptocurrency - The cryptocurrency activities in China before the government-imposed ban and Grant’s take on the reasons behind that government action.
[14:46] El Salvador and Cryptocurrency - El Salvador's economic background and impacts on the country's social context by encouraging citizens to transact in Bitcoin.
[15:52] Benefits and Challenges for El Salvador - The possible future occurrences related to cryptocurrency, as well as Grant’s take on the probable risks and benefits El Salvador may experience with the decision to accept cryptocurrency.
[18:40] Future Cryptocurrency Approach of Countries - The future measures of the world, and how China's recent decision has knocked the price of cryptocurrencies.
[21:00] Increasing Credibility and Viability of Cryptocurrency - Grant explains the widespread adoption of cryptocurrency at the institutional level and how it has enhanced the credibility and viability of cryptocurrencies.
[22:58] Bitcoin and Ethereum - Cryptocurrency consists of numerous types of coins, including Bitcoins and Ethereum. Grant reveals his thoughts on the benefits and usage of each.
[28:01] Conclusion - Grant sums up his takes on recent changes of monetary and economic policies related to cryptocurrency and how countries will decide and set rules regarding cryptocurrency in the coming future.
As we covered in the previous episode of Grow Money Business, the House Ways & Means Committee recently released proposed tax reform legislation that brings significant changes to the current levels of taxation. This week, Grant dives into five strategies you can utilize to take advantage of the substantial changes introduced by the proposed tax bill and reduce your tax liability. Throughout the episode, Grant reviews some of the sections of the tax code that will likely be updated by the new legislation and actions you can take within this year to make the best of the current tax code.
[01:52] Background and Progress - Grant starts the conversation with a brief review of the previous episode, explaining why he believes that the proposed tax bill is more likely to be passed in its current form.
[06:11] Profit Distributions From S-Corps - The new proposed legislation reforms a set of provisions that will tax S-Corporations’ profit distribution at a higher rate. Grant emphasizes the necessity of delaying expenses and increasing the income for this year.
[08:51] Estate Taxation - Grant dives into the effects of the proprosed provisions for estate taxation, revocable and irrevocable trusts, and how to take advantage of the current thresholds and exemptions
[13:15] Grantor Trust – The proposed legislation includes some provisions that take away some of the planning opportunities related to trusts that are currently available for taxpayers. Grant shares his take on how to prepare for these upcoming changes.
[18:14] Family Limited Partnership - Grant shares his thoughts on taking advantage of a family limited partnership’s marketability and minority ownership discounts for estate planning.
[23:22] Roth Conversions – The new legislation comes with several changes to the Roth conversions. Grant discusses the importance of the pro-rata rule, which you need to keep in mind if you’re planning to do a Roth conversion of pre-tax dollars.
[33:01] High-Income Earners - High-income earners will have to pay higher tax rates with the proposed tax bill. Grant scrutinizes the necessity of having fewer deductions to increase the income under the current tax rate.
Resources :
Ep #95 - We Have a New Tax Bill [And It’s a Whopper] growmoneybusiness.com/podcast/ptkre5734rgwc54-76ljd-pspcd-xjl22-lxhcs-dx3w5-dgzp2-kjz2x-57e67-mcz3k-wnrkw-8h6dh-t6hph-7n739-2h5cn-t6nay-jdp3r-tatwr-ljb5n-4rx52-n6phz-e7nzp-yfzt2-2c6x6-x6t5y-lnn4l-ygrkk-a546s-tn4hg
The House Ways & Means Committee recently released proposed tax reform legislation that brings major changes to the current levels of taxation, including reversals of several provisions introduced in the Tax Cuts and Jobs Act of 2017. We dedicated this episode to exploring what this new proposal includes and some of the key aspects of the proposal that may interest our listeners. Throughout the episode, Grant dives deep into proposed provisions related to retirement, new tax brackets, business tax, tax on cryptocurrency, estate planning, and more.
[02:19] Background and Progress – Grant starts the conversation with a brief review of what led to this new proposed piece of legislation, its current status, and the path to getting it signed into law.
[08:16] Roth IRA Conversions – The proposed tax bill calls to prohibit Roth IRA conversions on after-tax contributions, which has been a very convenient maneuver for tax planning. Grant shares his thoughts on what to keep in mind if you’re considering a Roth IRA conversion.
[12:35] High-Income Earners – The new tax bill also brings provisions to restrict high-income earners from doing any Roth IRA conversions starting from 2031. Grant dives into the reasoning behind this, why this provision is proposed to come into effect ten years from now, and some other restrictions that apply to high-income earners.
[16:27] Mandatory Distributions – How the proposed new legislation mandates taking money out of your retirement accounts if the total value of all your retirement accounts exceeds a given threshold.
[20:00] Tax Brackets and Rates – Grant dives into how the tax brackets and applicable tax rates are updated in the proposed legislation and proposed changes to taxation on capital gains.
[27:47] Ultra-high Income – Grant shares his take on the 3 percent surtax proposed to apply for people who make over $5 million.
[29:47] Surtax on Trusts – The proposed legislation also brings provisions to add a surtax on trusts. Grant talks about the proposed tax brackets and rates related to trusts and what you should keep in mind when considering estate planning.
[31:08] Business Tax – How the proposed tax bill affects businesses depending on the type of business entity and some of the planning opportunities that emerge with the new proposal.
[35:35] Busines Income Deductions – The new proposed legislation reforms a set of provisions related to business deductions that are introduced in the Tax Cuts and Jobs Act of 2017. Grant explains some of these reforms and what business owners should keep in mind about tax planning.
[39:02] Cryptocurrency Assets – Some of the tax-related legislations that apply to other assets such as stocks and bonds do not currently apply to cryptocurrency assets. Grant shares his thoughts on how that may change in the new proposed tax bill and what crypto investors show know about the new tax bill.
[42:26] Estate Planning – Another provision in the proposed tax bill brings some significant changes to taxes related to estate planning. Grant dives into what these updates include and what you should keep in mind about taking advantage of the current thresholds and exemptions.
Resources:
https://waysandmeans.house.gov/media-center/press-releases/chairman-neal-announces-additional-days-markup-build-back-better-act
Following the financial crisis of 2009, we entered one of the longest running bull markets in history. During this time, the Federal Reserve has injected a massive amount of US dollars into the monetary system, which has driven up the value of capital assets across the board. If you’re someone who holds equities or other assets at a substantial gain, you might be hesitant to sell them because of tax concerns. In today’s episode, Grant dives into four strategies you can use for exposure to appreciated assets and/or taxation when selling at a gain.
[02:29] Concentration and Risk – Why it’s risky to hold on to assets for too long and why it can be beneficial to repurpose your assets at the right time.
[07:57] Exchange Fund – Exchange funds can be used to diversify your holdings without triggering a taxable event. Grant shares his thoughts on the pros and cons of this method.
[13:28] Options – How to use stock options to reduce the risk of losing the value of your holdings during price fluctuations.
[20:05] Donor-advised Funds – Grant explores how donor-advised funds work and how investors can get tax benefits while contributing to charity.
[28:58] Charitable Remainder Trust – How charitable remainder trusts work, how they differ from donor-advised funds, and how to get started with them.
[34:38] Family & Insurance –Grant shares some ways you can reinvest the benefits of a charitable remainder trust to avoid financial stress within your family.
Resources:
Donor-Advised Funds: irs.gov/charities-non-profits/charitable-organizations/donor-advised-funds
Convert Appreciated Assets into Income with a Charitable Remainder Trust: schwabcharitable.org/maximize-your-impact/develop-a-giving-strategy/align-your-giving-vehicles/charitable-remainder-trust
Having outstanding student loans at the age of 50 versus earlier in your career will have a very different impact on your financial status. In today’s episode, we have a distinguished guest who specializes in helping people over the age of 50 to repay their student loans. Erik Kroll, Certified Financial Planner® and the owner of studentloansover50.com joins us to explain different strategies to manage your student loans, as well as how that approach changes with time.
[02:02] Student Loans Over 50 – We start the conversation with a brief review of Erik’s background, the work he’s doing as a financial planner, and what lead him into specializing in student loans.
[04:45] Age and Student Loans – The differences between having student loans as a fresh graduate versus having student loans at the age of 50 and how our life priorities in come into play.
[08:28] Forgiveness – Erik dives into important considerations for student loan forgiveness, including different options, qualification criteria, and taxation.
[15:12] Accumulating Debt – Common patterns for individuals over 50 with student loans, including Parent Plus loans, post-graduate education, and career changes.
[22:03] Double Consolidation – Erik explains the process of utilizing consolidation and other strategies to reduce monthly loan payments.
[29:10] Rehabilitation – The path to rehabilitation and qualifying for forgiveness after your loans have gone to debt collection.
[34:18] Student Loans Over 50 Playbook – Erik shares his thoughts on what led him to create his eBook and what readers can learn from it.
[37:11] Recent Developments – Erik shares his take on some of President Joe Biden’s recently proposed loan forgiveness provisions.
[41:07] Private Loans – The pros and cons to a private refinance, and important things to consider when making this decision.
Resources:
Connect with Erik: LinkedIn: linkedin.com/in/erikkroll Website & Ebook: studentloansover50.com
Past episodes on Student Loans:
Episode #34: Why College Is So Expensive & How to Pay For It With Robert Farrington growmoneybusiness.com/podcast/episode-11-everything-health-benefits-with-andrea-murphrey-pzzen-g67ey-ss2ty-s4854-933az-z4ly8-34898-fanhf-tez4y-cswex-s2t4a-lpbw4-b9sjs-wwtln-f2ltc-a4x47-mdg83-a8gh3-f5fje-d7sn5-22dy3-y3k44-2a3b7
Episode #90: This is Exactly What to Do With Your Student Loans growmoneybusiness.com/podcast/ptkre5734rgwc54-76ljd-pspcd-xjl22-lxhcs-dx3w5-dgzp2-kjz2x-57e67-mcz3k-wnrkw-8h6dh-t6hph-7n739-2h5cn-t6nay-jdp3r-tatwr-ljb5n-4rx52-n6phz-e7nzp-yfzt2-2c6x6
You are probably already familiar with the concept of reserving an emergency fund for unexpected expenses. You may even already have one in place. However, deciding how much to reserve or where to keep this money can be tricky. We dedicated this episode to exploring why you should maintain an emergency fund, how to determine how large yours should be, and a few different savings options that can be safe & accessible, while still giving you the greatest possible returns.
[02:09] Managing Emergency Cash – Why it’s crucial for everyone to set aside some emergency funds and the importance of keeping your cash in the right place.
[05:23] How Much to Save – Grant shares a method of estimating how much you should save as an emergency fund based on your income, expenses, and risk tolerance.
[08:31] Too Much in Cash - Why it’s a better idea to have your emergency savings as investments and the ideal investment method for your funds.
[12:17] CD Ladder & High Yield Savings – Grant explains how using multiple Certificates of Deposits and high yield savings accounts can help you make the most out of your emergency cash.
[16:36] Money Market Mutual Funds – How money market mutual funds work, how they’re different from money market savings accounts, and some of the recent reforms related to money market mutual funds.
[24:14] Types of Money Market Funds – How the reforms led to the creation of two types of money market funds, the differences between the two types, and what you should keep in mind about parking your emergency cash in a money market fund.
[28:24] Government Funds – The feasibility of putting your emergency cash in government funds and the benefits of utilizing multiple methods of investments.
Resources:
Money-Market Funds Buckled in Two Crises in a Row. Regulators Look to Fix Them Again:
wsj.com/articles/money-market-funds-buckled-in-two-crises-in-a-row-regulators-look-to-fix-them-again-11626687001
Firms Wary as Money-Market Rule Changes Studied After Covid-19 Run:
wsj.com/articles/firms-wary-as-money-market-rule-changes-studied-after-covid-19-run-11630056602
Every now and then, we see new trends emerging in the investment markets. And one of the trends we’ve been recently observing is the tendency of mutual fund managers to convert their fund structure to Exchange-Traded Funds. Throughout this episode, Grant reviews the structures of mutual funds and ETFs, what makes them different from each other, the reasons why it makes sense for mutual fund managers to switch to ETFs, and what investors should keep in mind about mutual funds being converted to ETFs.
[01:43] Mutual Funds – Grant reviews how mutual funds are structured and how the mutual fund managers use funds from a group of investors to generate greater returns than what individual investors have the capacity to generate on their own.
[08:42] Limitations – Limitation of mutual funds and how these limitations may create unfavorable situations for mutual fund managers in some scenarios.
[13:50] Understanding ETFs – What led to the creation of Exchange-traded Funds, how they work, and the difference between mutual funds and ETFs.
[21:51] Benefits – Grant dives into the attractive characteristics and tax benefits of exchange-traded funds.
[25:00] Popularity of ETFs – Grant shares his thoughts on how ETFs became popular in the last decade and the trend of some mutual funds being converted to ETFs.
[30:00] Why Investors Should Care – How this trend of mutual fund managers converting their structure to ETFs affects the investors in terms of expenses, taxation, benefits, and what to do if their mutual funds are being converted.
Resources:
Investor Bulletin: Mutual Fund Conversion to Exchange-Traded Fund (ETF):
investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/mutual-fund-conversion-exchange-traded-fund
Making the Switch: Turning a Mutual Fund into an Exchange-Traded Fund:
bbh.com/us/en/insights/investor-services-insights/making-the-switch-turning-a-mutual-fund-into-an-exchangetraded.html
With roughly 44 million borrowers that collectively owe nearly $1.7 trillion, student loans, the second-highest consumer debt category, has become something that’s pervasive for young people in the United States. We dedicated this episode to exploring some of the ways borrowers can make their student loan repayment manageable. Throughout the episode, Grant dives into how the interest rates and other characteristics vary depending on the lender, repayment options, income-based repayment, federal student loan forgiveness, and more. Stay tuned until the end of the episode, where Grant shares some strategies to reduce your monthly payments by suppressing your adjusted gross income.
[01:43] Background – The pervasive nature of the U.S. student loan programs and why they have become pervasive.
[05:10] Who Lent You the Money – Grant explains how the interest rates and repayment options may vary depending on the institution that is underwriting a student loan.
[07:38] Repayment & Refinancing - Once students have graduated and their forbearance period has finished, it’s time to paying back the student loans. Grant explores some of the options available for students at this point and how to decide whether to refinance with a private lender.
[10:19] Staying in the Federal System – Although it might make sense in some cases to refinance with a private lender, staying in the federal system has its own benefits. We talk about what these benefits are and how students can take advantage of staying in the federal system.
[13:07] Income-based Repayment – How the income-based repayment programs work, requirements for eligibility, and how they help people make their monthly payments manageable.
[18:13] Forgiveness – One of the features in income based-repayment is being able to get your debt forgiven after a certain number of years. Grant dives deep into how debt forgiveness works, how taxation comes into play at the point when the debt is forgiven, and what to consider when deciding whether to pursue forgiveness.
[22:32] Administrative Forbearance – As a part of the stimulus package introduced under the CARES Act, an additional forbearance period was introduced for student loans. Grant shares his thoughts on how to take this into consideration when making decisions about student loan repayment.
[27:15] Strategy for the Federal System – Grant shares some strategies for those who are in the federal system to make loan payments manageable by suppressing their adjusted gross income.
Resources:
Episode #34: Why College Is So Expensive & How to Pay For It With Robert Farrington:
podcasts.google.com/feed/aHR0cHM6Ly9ncm93bW9uZXlidXNpbmVzcy5saWJzeW4uY29tL3Jzcw/episode/YWI0YzM1ZDYtYmJlNS00NThlLThlM2ItN2Q3OWVkNGEyY2U0?sa=X&ved=0CA0QkfYCahcKEwjYxof6_bfyAhUAAAAAHQAAAAAQAQ
This week on the podcast, we’re continuing our mini-series of podcast episodes dedicated to debunking popular misconceptions around investing by exploring the truth about whether U.S. multinational securities provide enough international exposure for your portfolio. Throughout today’s episode, we dive deep into why international exposure benefits investors, how the differences of key aspects between the U.S economy and other countries influence the returns of an investment, methods of accurately evaluating the potential of foreign investments, and how you can avoid some of the biases that negatively affect our financial decision making.
[2:50] Diversification – Why people feel that they have ample diversification in their portfolios and what they’re missing out on by only investing in U.S. corporations.
[04:00] U.S. Economy vs. Other Countries – Grant reviews some key aspects of world economies that make some other countries such as China grow rapidly, compared to The United States.
[9:40] P/E Ratio – Grant explains what the P/E ratio is, how you can use cyclically-adjusted P/E ratio to assess the potential returns of stocks, and why it’s better than just looking at the historical performance of stocks.
[16:14] Correlations – Securities markets have some trends and behaviors that show correlations between U.S securities and foreign securities. Grant talks about why investors should invest in international securities despite these correlations.
[21:05] Diversification of Currency – Why investing in companies that do business transactions in a diverse selection of currencies can be beneficial to investors in the long term.
[22:52] Dealing with Biases – How certain psychological characteristics of the human brain can get in the way of making savvy investment decisions and how to avoid these traps.
Resources:
Morningstar: Does International-Stock Diversification Still Work?
morningstar.com/articles/1034112/does-international-stock-diversification-still-work
Hartford Funds Chart on the Performance of International Stocks:
hartfordfunds.com/dam/en/docs/pub/whitepapers/CCWP014.pdf
The Wall Street Journal - Why It Might Be Time to Invest in Non-U.S. Stocks:
wsj.com/articles/why-it-might-be-time-to-invest-in-non-u-s-stocks-11596900477
Securities lending is one of the widely misunderstood concepts in the investment community, and securities lending shows up intermittently in the news for both positive and negative reasons. However, this complex trading pattern driven by short selling can drive down costs for the investors. In today’s episode, Grant dives deep into how securities lending works, the different parties involved in it and their roles, how investors participate in securities lending, and how it impacts the performance and costs of ETFs and mutual funds.
[02:40] Understanding Securities Lending – How securities lending works and how it relates to investment funds that many people put their money in and how it generates revenue for brokerage firms.
[07:13] Trading Settlement – The process of trading securities is a bit more complex than it looks from the outside. Grant reviews how trade settlements work and how securities lending comes into play.
[12:50] Short-squeeze – How unexpected fluctuations in stock price can cause investors to lose money in certain scenarios.
[13:47] Driven by Short Selling – Grant reviews how securities lending transactions between several parties create a complex ecosystem that facilitates short selling and how the demand for securities lending is driven by short selling.
[16:23] Supply and Demand – How brokerage firms can make money through securities lending depending on the demand for shares.
[19:10] Sources of Supply – Grant explains the sources brokerage firms use to get the securities they lend to other parties and how investors can make money by lending securities to brokerage firms in some scenarios.
[21:40] ETFs and Mutual Funds – How ETFs and mutual funds are involved in securities lending as another source of supply and how it benefits investors by reducing expenses.
[27:20] Facilitating Short Selling – A common argument about securities lending is that you may not want your shares to be lent out because you don’t want to facilitate short selling in a company that you own. Grant shares his take on the relevance of this idea.
Resources:
My Take On Short Selling:
www.abovethecanopy.us/my-take-on-short-selling/
In today’s episode we’re diving into ten behavioral biases that negatively impact your investment decision-making. Throughout the episode, we explore the psychological background of these ten behaviors, how they get in the way of sound investment decision-making, and how you can be conscious about your financial decisions so that you won’t make mistakes because of them.
[3:10] Oversimplification – Grant explains what happens when our brains are overwhelmed and are trying to process information in the most efficient way by oversimplifying complex scenarios in an attempt to break them down into bite-sized pieces, ultimately leading to poor investment decisions.
[6:15] Restraint – When we come across an opportunity that we think is beneficial to us, it’s very hard to show restraint. The problem that gets in the way of our sound investment decision-making is our overestimation of our ability to show restraint. Grant explains how this practically affected the cryptocurrency market.
[8:53] Familiarity – People naturally trend toward investments that they know and are familiar with. Grant dives into how this can negatively affect your investments and how to avoid falling into this trap.
[11:20] Incentive Bias – How some of the systemic features in our financial systems, in some cases, lead people to make poor decisions and how the general public can identify these incentives that could potentially lead them toward poor investment decisions.
[14:40] Self Attribution Bias – Grant dives into one of the behaviors in which our egos play a major role. He explains how this behavior is largely visible among daytraders and how to be aware of this trait of human brains.
[18:05] Information Bias – Picking reliable data is crucial for making savvy investment decisions. For instance, not being able to grasp the difference between correlation and causation can lead to disastrous investment decisions. We talk about why we need to be vigilant about the information we consume.
[20:55] Groupthink – Since humans naturally like to be in groups, it can be extremely uncomfortable to make a decision that severely deviates from what everyone else is doing. In investments, succeeding in some scenarios may require exactly that. Grant explains how we can grow beyond the herd mentality while being open to new ideas to make savvy investment decisions.
[24:30] Anchoring Bias – When we take time and energy to research something and come to a decision, we like to be anchored on that decision, making us less open to ideas that are contrary to our decision. This tendency to remain anchored on our original decision is something that simply gets in the way of making sound decisions.
[26:50] Loss Aversion – The losses in our investment accounts feel worse than the gains feel good. And because of that, people make investment decisions very commonly, in an attempt to avoid the losses, without appreciating the opportunity for potential gains in the same manner. Grant explains why you should try to avoid this behavior in your decision-making.
[28:40] Confirmation Bias – How our minds tend to cherry-pick certain information in an attempt to process information efficiently, how it affects our investment decisions and how to avoid making mistakes that occur due to confirmation bias.
Resources:
Investing Myths #3: You Need To Keep Up With the Financial News:
growmoneybusiness.com/podcast/ptkre5734rgwc54-76ljd-pspcd-xjl22-lxhcs-dx3w5-dgzp2-kjz2x-57e67-mcz3k-wnrkw-8h6dh-t6hph-7n739-2h5cn-t6nay-jdp3r-tatwr-ljb5n
Commercial real estate is something many investors seem to be interested in both as an asset class as well as a place for operating their businesses. Justin Smith, a broker, industrial advisor, and author, joins us today to talk about investing in commercial real estate. Throughout today’s episode, we explore what investing in commercial real estate is like as an asset class and what business owners who are considering buying buildings for their own businesses need to consider prior to day one and from day one to the day that the business no longer occupies the building. Stay tuned until the end of the episode, where Justin shares some strategies that help real estate investors with taxation.
[2:50] Justin’s Background – Justin has been working at Lee and Associates for 17 years, focusing primarily on industrial property. We talk about how Justin got into the real estate industry and what he learned through his long career.
[9:40] Buying a Building - Justin explains where to start if you’re looking for a building to buy and how the process differs according to the type of business, type of property, and whether it’s a lease or ownership.
[20:05] Transition From Tenant to Owner - Switching roles from the tenant to owner often calls for some construction work. Justin explains what potential property owners should know about working with contractors and other parties and maintaining compliance.
[26:55] Selling the Current Building and Purchasing the Next - What business owners need to think about when selling their current building to move to another and how their options differ based on liquidity, capacity, and capital.
[34:41] Potential Property - What makes a potential property or building an attractive investment in a portfolio, and what to look for in a potential real estate investment in terms of its cash flow.
[42:45] 1031 Exchange - Justin shares his thoughts on the future of the 1031 exchange, which gives business owners an option to avoid paying capital gains taxes when selling a property and reinvesting in similar properties.
[46:30] Tips for Pure Investors – Justin shares some tax strategies for people who are looking at real estate as a pure investment.
[49:00] Industrial Intelligence – Justin’s book, Industrial Intelligence: The Executive’s Guide for Making Informed Commercial Real Estate Decisions, came out last April. We talk about what he covers in the book and how it helps investors make smarter decisions for real estate investments.
Resources:
Industrial Intelligence: The Executive’s Guide for Making Informed Commercial Real Estate Decisions
amazon.com/Industrial-Intelligence-Executives-Commercial-Decisions/dp/1544519923
Connect with Justin Smith
LinkedIn: linkedin.com/in/justinbsmith
Website: smithcre.com
The concept that you need to keep up with the financial media in order to succeed in investing is an extremely popular belief among novice investors. However, in some cases, closely following financial media may influence your financial decisions in ways that aren’t in your best interests. Throughout today’s episode, Grant dives into how mainstream financial news can be misleading, why it isn’t necessary to keep up with financial media in order to be successful in investing, and how to choose sources that give you quality financial information.
[2:40] The Myth – Although more knowledge is good, getting into deep details of things via mainstream financial news might tempt you to make short-term tactical adjustments to your portfolio. Grant dives into how this occurs and why it results in bad outcomes.
[3:40] Strategic Strategies vs. Tactical Strategies – Grant shares his thoughts on why savvy investors focus more on strategic strategies than short-term tactical actions.
[6:42] Clickbait Headlines – How digital media business models based on advertising negatively affect the quality of journalism and how this behavior influences users to follow unreliable and biased financial advice.
[8:55] “If you’re not paying, you are the product” – Grant explains how free news sources may often contain misleading information and why Grant always tries to digest financial information from sources he pays for.
[10:25] Social Media – Grant shares his thoughts on investment-related misinformation that are being shared on social media platforms and how to be mindful about misleading financial news.
Resources:
Investing Myths #2: It’s Dangerous to Invest At All-Time Highs:
growmoneybusiness.com/podcast/ptkre5734rgwc54-76ljd-pspcd-xjl22-lxhcs-dx3w5-dgzp2-kjz2x-57e67-mcz3k-wnrkw-8h6dh-t6hph-7n739-2h5cn-t6nay
Investing Myths #1: Rising Rates Will Crush Your Bond Portfolio:
growmoneybusiness.com/podcast/ptkre5734rgwc54-76ljd-pspcd-xjl22-lxhcs-dx3w5-dgzp2-kjz2x-57e67-mcz3k-wnrkw-8h6dh-t6hph-7n739-2h5cn-t6nay
Evaluating investment funds or any other type of investment is crucial for a savvy investor. In today’s environment, it’s easy for investors to get influenced by misinformation that ultimately leads them to make sub-optimal investment decisions. We dedicated today’s episode to inspecting the process of evaluating different mutual funds, ETFs, or any other types of investment funds. Throughout the episode, we explore the process of due diligence and how to decide whether or not a potential fund is worthy of including in your portfolio.
[2:15] Sub-Optimal Investment Decisions – Why people make sub-optimal investment decisions by not using the right criteria to evaluate a standard investment fund.
[4:00] Terrible Evaluation of Potential Investments – Using the example of large-cap US equities, Grant explains how some of the most popular fund ratings do not provide a very good evaluation of potential investments.
[8:37] Structuring Your Portfolio – The most important decision one has to make in structuring a portfolio is allocating assets. Grant shares high thoughts on why this decision is far more important than focusing on a specific fund and how long-term asset allocation can improve the integrity of your portfolio.
[13:46] Evaluating Strategy – How to evaluate the strategies of different investment funds and how to decide whether the strategy of a specific fund aligns with your goals.
[18:05] Historical Performance – Why it’s important to take a look at the history, stability, and performance of the fund management company before you invest.
[21:33] Path to the Best Outcome – Wrapping up the episode, Grant shares his take on how having a consistent allocation, a consistent philosophy, and remaining invested through harsh conditions combine to create the path to the best investment outcomes.
Resources:
ETFs vs. Mutual Funds: What’s the Right Investment Vehicle For You?
abovethecanopy.us/mutual-funds-vs-etfs-whats-the-right-investment-vehicle-for-you/
Compensating employees with some form of equity has become a fairly common practice among employers. This may come in several flavors, including restricted stock units, employee stock purchase plans, incentive & non-qualified stock options. In today's episode, Grant dives into how these programs work, how they're taxed, common issues employees face when they're compensated with equity, and a strategy that allows employees to benefit from equity compensations while reducing their tax bills.
[02:48] Common Issues – Grant shares his thoughts on two common issues that employees face when they are compensated with equity.
[04:51] Risks Associated with Company Shares – Grant talks about some of the disaster stories of a few companies that put their employees in deep financial trouble with equity compensations. However, he also talks about how equity compensations can create a whole lot of wealth for employees if the company continues to flourish.
[07:01] Restricted Stock Units – Grant reviews a few common equity compensation programs, starting with RSUs, a performance-based method of compensating employees.
[09:57] Employee Stock Purchase Plans – While rare among private companies, employee stock purchase plans are quite common in publically traded companies. Grant dives into how these plans are taxed and the pros and cons of these plans.
[13:35] Incentive & Non-qualified Stock Options – Grant dives into the benefits of another two types of equity compensation and what employees should keep in mind about them.
[15:23] Strategy – Grant shares his out-of-the-box strategy of utilizing equity compensation that allows employees to pay as little tax as possible.
Resources:
Employee Stock Options: The Top 5 Mistakes That Leave Money on the Table:
abovethecanopy.us/employee-stock-options-the-top-5-mistakes-that-leave-money-on-the-table
A few weeks ago we started a series of podcast episodes dedicated to debunking popular misconceptions around investing. In today’s episode, we’re continuing that discussion by covering another investment myth: that it’s too dangerous to invest new money at market highs. Buying low and selling is an obvious objective for any investor, but avoiding the markets simply because they’re breaking new highs is a common mistake for many. Throughout the episode, Grant dives into why this concept is a myth and data from a few studies conducted by reputed organizations that show the potential dangers of the delay in waiting till the markets fall.
[04:56] Historical Data – We often use historical data to assist our investment decisions. While it is a good starting place, it comes with a lot of shortcomings. Grant reviews why we need to look beyond historical data to make savvy investment decisions.
[06:33] Study on S&P 500 Returns – Grant dives deep into a study that analyses the returns of the S&P 500 companies right before the dot com bubble crashed and after the market crash.
[11:13] Investing on Random Days vs. All-time Highs – Last year, the investment firm JP Morgan conducted a study to compare the returns of investing on any random day versus selectively investing only on the days when the markets reach certain points. Grant dives into the findings of this study and how they relate to the misconception.
[16:20] Risks – The risks associated with investing in financial markets and some of the methods we can use to mitigate the risks and the limitations.
[18:31] Looking at a Wider Dataset – Grant reviews a chart from Dimensional Fund Advisors, which uses a wider data set, a total market index, and a longer time period than the previous studies. He shares his thought on why this chart contradicts the other two studies and what investors can learn from it.
[21:23] Dividends and Distributions – How dividends and distributions can reduce the impact of a market crash and significantly increase your returns if the markets do not crash.
[24:37] Dollar Cost Averaging – How dollar-cost averaging helps us reduce risks associated with investments.
Resources:
Is it too late to get invested?
jpmorgan.com/wealth-management/wealth-partners/insights/top-market-takeaways-is-it-worth-considering-investing-at-all-time-highs
Dimensional Fund Advisors Study on US equity returns:
dimensional.com/us-en/insights/us-equity-returns-following-past-downturns
The beauty of doing nothing:
jpmorgan.com/wealth-management/wealth-partners/insights/the-beauty-of-doing-nothing
The popularity of Bitcoin and other cryptocurrencies has exploded over the last few years, and many investors are asking about the various ways they could make money investing in them. A few months ago in episode 65, we talked about how cryptocurrencies work. In today’s episode, we’re extending that discussion and sharing the only three ways to make money with cryptocurrencies. Throughout the episode, Grant reviews how some of the money-making methods of the gold mining era relate to cryptocurrencies and three methods you can use to make money in the cryptocurrency space.
[02:11] Understanding Cryptocurrency – Grant reviews a framework that he’s been using to shape his understanding of the inner details of cryptocurrency and the ways to make money in the cryptocurrency world.
[06:45] Risks Associated with Crypto – Compared to rare minerals like gold, cryptocurrency does not have a long history yet. Grant explains the risks associated with cryptocurrencies due to their relatively short history and the high volatility.
[07:46] Process of Mining – Grant takes an in-depth look at how a network of computers carry out cryptocurrency mining and transaction tracking.
[12:52] Profitability of Mining – Why the awards for mining go down over time and how it affects the ROI of mining.
[15:45] Speculating – How cryptocurrency investors can make money by speculating cryptocurrency prices.
[18:11] Regulations – Grant reviews some of the regulations that are in effect in Europe due to the highly volatile nature of the cryptocurrency world and some of the instances that prove that cryptocurrencies aren’t completely out of the reach of governments.
[22:47] The Levi’s Approach – How investing in platforms that enable people to interact with cryptocurrencies can become a way to make money in the cryptocurrency arena.
[27:32] Smart Contracts – How smart contracts work, how they’re related to the technology used in crypto, and some of the investment opportunities related to smart contracts
The healthcare system in the United States is extremely expensive compared to other developed countries, and it has escalated to a point where healthcare costs have become a major financial burden for many people. In today’s episode, we have a distinguished guest who specializes in public health. Sailee Bhambere, a medical doctor with a master’s degree in Public Health from Harvard University, joins us today to talk about why healthcare is so expensive in the United States. Throughout the episode, we dive deep into Sailee’s research on the issues of the US healthcare system, why it’s extremely expensive, and how it could be improved.
[02:28] Sailee’s Background – We start the conversation with a brief review of Sailee’s work in the healthcare industry and how her research contributes to improving the quality of healthcare.
[05:56] Studying the Healthcare System – Sailee shares with us what she focuses on in her research to identify issues in the healthcare system.
[09:00] Why Healthcare is Expensive – Sailee shares her take on how expensive the US healthcare system is and some of the contributing factors to these high costs.
[14:00] Preventive Healthcare and Personal Responsibility – How our personal habits contribute to our health over a long time and how preventive healthcare could be improved in a way that makes it easier for citizens to develop healthy personal habits.
[17:12] Free Market Capitalism and Healthcare – Grant and Sailee discuss their views on how the free market environment in the United States influence the healthcare system and how other developed countries have taken measures to reduce healthcare costs.
[23:00] Most Important Policies – Sailee shares her thoughts on what policies she’d put in place if she had the authority to do so.
[26:00] Complexities – Why the US healthcare system is extremely complex and how the policymakers can approach reducing the complexities.
[31:40] Administrative Costs – The administrative costs in the US healthcare system are significantly higher than they are in other developed countries. Sailee shares her thoughts on the reasons that cause this discrepancy.
[36:34] Burnout – One of the major issues healthcare professionals are facing across the industry is burnout, which is a result of overworking as well as complex administrative tasks embedded into their workload. Sailee shares her thoughts on how this affects the performance of the healthcare system.
Resources:
Connect with Sailee: linkedin.com/in/sailee-bhambere
Sailee’s Research: www.researchgate.net/profile/Sailee-Bhambere
In recent years interest in entrepreneurship has been steadily increasing around Sacramento and around the country, leading younger generations to explore self-employment as a career option. In today’s episode, we have a distinguished guest who specializes in educating entrepreneurs and guiding them toward success. Cameron Law, Executive Director of the Carlsen Center For Innovation & Entrepreneurship in Sacramento, joins us today to talk about the startup climate in the region. Throughout the episode, we dive into how Cameron’s organization helps entrepreneurs, common mistakes entrepreneurs make, trends in the startup arena, and what entrepreneurs should know about creating successful business ventures.
[01:40] Cameron’s Background in Startups – Cameron shares how he got into the business world, his work in the venture capital arena, and his contribution to helping entrepreneurs thrive.
[06:18] Cameron’s Organization – Cameron dives into the mission of his organization, Carlsen Center for Innovation and Entrepreneurship.
[10:50] Generating Interest – Cameron’s organization works with students and people who are already in business. He talks about what his organization is doing to generate interest in entrepreneurship and to make its programs more accessible in the region.
[15:30] Evolution of Entrepreneurship – How the mindset of entrepreneurship has evolved over the years in the region and how recent trends in the markets and technologies have influenced it.
[28:48] Avoiding Mistakes – Common mistakes Cameron sees entrepreneurs make in their startups and bits of advice Cameron has for entrepreneurs to help them avoid their mistakes.
[35:39] Taking Risks – Entrepreneurs often have to take risks to make their new products or services successful. Cameron shares his take on what entrepreneurs should keep in mind about creating solutions that successfully solve a problem.
[38:11] Blockchain – Cameron shares his take on how cryptocurrencies and blockchain technology are being adopted in the region.
[46:05] Sports – Both Grant and Cameron were baseball players in college. They talk about how sports fit into their lives and how experiences from sports have influenced their professional skills.
[52:47] Get Involved – Cameron shares how you can get involved in entrepreneurial communities in your region and how you can utilize the resources available at the Carlsen Center for Innovation and Entrepreneurship.
Resources:
Connect with the Carlsen Center for Innovation and Entrepreneurship: Website: www.csus.edu/center/carlsen LinkedIn: linkedin.com/company/carlsencenter
Recently, we’ve seen quite a few myths and misconceptions about investing circulating in popular media and amongst investors. Today’s episode is the first of several episodes we plan to publish with the focus of debunking these myths. Throughout today’s episode, Grant debunks the misconception of negative effects on bond portfolios caused by increasing interest rates on bonds. Stay tuned until the end of the episode, where Grant shares his take on how to get the best outcomes from bond portfolios.
[01:58] Understanding Bonds – Grant reviews how bonds work and how they’re different from stocks.
[07:30] Interest on Bonds – The structure of interest for bonds and how the concept of duration comes into play.
[10:35] Fluctuation of Prices – Grant shares his thoughts on why fluctuation of bond prices does not have a significant effect on long-term investors.
[13:18] Interest Rates – Grant reviews how increasing interest rates affect long-term portfolios, using an example of a worst-case scenario.
[18:39] Path to Success – Grant shares his thoughts on why consistently applied strategy and long-term focus are the keys to the best outcomes for bond portfolios.
[20:33] Unlikely Outcomes – Why it’s highly unlikely that we’ll see a huge rise in interest rates in the next five to ten years based on how our current monetary system is structured.
Resources:
What is the Worst Case Scenario for Bonds? - Cullen Roche:
pragcap.com/what-is-the-worst-case-scenario-for-bonds
Bond Duration:
en.wikipedia.org/wiki/Bond_duration
Don’t Ditch Those Bonds
aarp.org/money/investing/info-09-2013/dont-ditch-those-bonds.html
Last week, The Bureau of Labor Statistics released some metrics that indicate we might be experiencing a higher rate of inflation than the federal reserve and other stakeholders have been expecting. We dedicated today’s episode to exploring what inflation is and why we should be concerned about it. Throughout the episode, Grant dives into how inflation occurs, how it influences the economy, how to measure inflation, the role of the federal reserve in keeping the economy stable, and what investors should keep in mind about maintaining a healthy portfolio in an inflationary environment.
[04:45] Understanding Inflation – What inflation is, why it happens and why we should be concerned about it.
[07:25] Measuring Inflation – Grant reviews some of the methodologies and indices that are used for measuring inflation and how these measurements indicate recent changes in the prices of consumer goods and services.
[13:25] Inflation and Deflation – Grant shares his take on why the two extremes of the spectrum can cause adverse effects on the economy and why maintaining a stable rate of inflation is better for the economy.
[16:58] The Federal Reserve – How the federal reserve maintains its policies in order to keep the economy stable.
[22:25] Inflation and Investments – How inflation affects investments and how different asset classes perform in inflationary environments.
[25:14] Pricing Power – Why companies that offer products and services with higher pricing power can adapt better to inflation.
[28:00] Diversification – Grant reviews some of the ways you can diversify your portfolio by taking advantage of assets that are less affected by inflation in the United States.
[35:48] Real Assets – Grant shares his take on how real assets, including real estate, perform in an inflationary environment and what investors should keep in mind about investing in hard assets.
Resources:
Consumer Price Index - U.S. Bureau of Labor Statistics:
www.bls.gov/news.release/cpi.toc.htm
The succession of a business or exiting from a business is an important and intimate event most business owners will have to plan at some point in their journey. We dedicated today’s episode to exploring what business owners should think about when planning their succession or exit, even if they don’t anticipate it anytime soon. Today, our guest is Michael Vann, an author, certified scale architect, and the president of The Vann Group LLC. Throughout the episode, we explore the process of succession, how relationships and emotions come into play, how taxation applies to succession, and what Michael has learned through his extensive experience in the mergers and acquisitions market.
[01:35] Michael’s Background – We start the conversation with a brief review of Michael’s background, from being in the corporate environment to working on his father’s business.
[04:51] Acquisitions – While working in the corporate world, Michael gained lots of experience in acquisitions. He shares some of the important strategic planning points of acquisitions for buyers.
[10:21] Family Business – Once Michael left his corporate job, he started working on his father’s business. Michael talks about the work he did there and how the business evolved under his influence.
[15:44] Business Transitions – Michael’s family business has been going through a phase of transition from his father to Michael and his siblings. Michael dives deep into the process of transitioning and the emotional aspect of it.
[18:02] Process of Successions – The typical flow of business succession, deciding between different options for succession, and managing financial matters.
[23:38] Relationship Dynamics – Business transitions may get a bit more complex when they’re between family members or people with close personal relationships. Michael talks about some of the obstacles that may come up in these sorts of transitions and how to overcome them.
[27:12] COVID and the Industry – How the pandemic impacted Michael’s line of business and the new trends that emerged from it.
[33:19] Taxation – Michael shares his take on how the newly proposed tax reforms may affect buyers and sellers in the mergers and acquisitions arena.
[39:11] Michael’s Vision for Future – Michael dives into some of the possible avenues for his business to expand and grow, and some of the interesting concepts covered in the book Michael coauthored with his father.
Resources: Michael’s Book: amazon.com/Buying-Out-Boss-Successors-Succession/dp/1544511302/&tag=authorhour-20 Website: vann-group.com LinkedIn: linkedin.com/in/michaelvann
President Joe Biden’s new proposal for tax reforms has been getting lots of media attention in the past week. It contains provisions to substantially raise the tax rates on long-term capital gains and eliminate the step up in basis. This substantially limits some of the tax planning opportunities investors and business owners have enjoyed for a long time. In today’s episode, Grant reviews the new changes President Biden has proposed, what they mean for investors, and some of the planning opportunities that come with the new updates.
[01:26] New Tax Plan – Grant reviews some of the key goals of President Biden’s new tax plan and what they mean for the general public and investors.
[05:32] Long-term Capital Gains – How long-term capital gains work, how they’re different from their short-term counterparts, and how taxation comes into play.
[08:53] Proposed Rates – Grant reviews the new tax rates proposed in President Biden’s tax plan and new planning opportunities that come with the new changes.
[13:48] Selling a Business – Selling a business is one of the instances where a business owner can end up paying substantial amounts in tax according to the proposed tax rates. Grant shares his take on How business owners can work around this.
[18:30] Step Up in Basis – Step up in basis is a tool widely used by financial planners to minimize the tax impact, and President Biden’s new proposal substantially limits this opportunity. Grant shares his thoughts on how we can adapt to these proposed changes.
[25:47] Estate Planning – How the elimination of step up in basis affects estate planning and how to minimize the tax impact for people who inherit assets.
Resources:
Reviewing the Biden Tax Plan
www.abovethecanopy.us/reviewing-the-biden-tax-plan/
“Animal spirits” is a term coined by the celebrated economist John Maynard Keynes, which describes the financial decision-making behaviors of people in times of uncertainty. The behavior of animal spirits has a clear relationship with consumer confidence. In today’s episode, Grant dives into how we can measure animal spirits and consumer confidence and what these concepts mean for the financial markets, our lifestyles, and portfolios.
[01:03] Background – Grant reviews how the term “animal spirits” was coined, the historical background of it, and what constitutes the concept of animal spirits.
[05:19] Consumer Confidence Index – How consumer confidence can be quantified with an index, how it reflects the economic impact of global events, and what it can tell us about the status of the economy.
[10:00] Mergers & Acquisitions – In the last few months, there’s been a big surge in mergers and acquisitions. Grant shares his thoughts on the reason for this surge and how this trend relates to animal spirits.
[15:52] Other Examples – Grant reviews some of the other trends in the economy that relates to animal spirits, such as non-fungible tokens and cryptocurrencies.
[18:15] Consumer Confidence and Predictions – High consumer confidence is a clear indicator of good economic growth. Grant shares his thoughts on what the current status of consumer confidence tells us about the next few months.
[22:22] Negative Possibilities – Grant shares his take on what challenges we may have to face if the economic rebound does not go as expected.
Resources:
Understanding the Consumer Confidence Index:
investopedia.com/insights/understanding-consumer-confidence-index
Animal Spirits:
investopedia.com/terms/a/animal-spirits.asp
Variable annuities are a set of commonly offered insurance products that promise consumers a consistent income stream. In general, these products tend to become more beneficial to insurance companies and representatives who sell these products rather than consumers buying them. However, in recent years insurance companies have started to offer products that may be more consumer friendly. Throughout today’s episode, we dive deep into what variable annuities are, how they’re structured, and some of the scenarios where you might want to consider them.
[01:07] Background – How professionals in the financial planning and insurance industries view variable annuities and why there are different perspectives on the integrity of the insurance-based investment solutions.
[05:23] Annuities – Different configurations of annuities and how the returns vary according to the type of investment.
[11:23] Understanding Variable Annuities – Grant reviews what variable annuities are, how they work, and why Grant isn’t a big fan of variable annuities.
[16:45] Features and Fees – Over the years, Grant has reviewed lots of annuity policies. He dives into the most common types of fees insurance companies charge their customers in exchange for various features in the policies and some of the issues associated with the fees and commissions.
[22:13] New Developments – In recent years insurance companies have started making adjustments and improvements to their products. Grant talks about some of these updates and how they address the issues from older policies.
[25:36] Reasonable Options – Grant dives into some of the scenarios where obtaining a variable annuities policy may make sense to a consumer.
Resources:
How to Analyze a Variable Annuity: abovethecanopy.us/how-to-analyze-a-variable-annuity
State exchange programs for health insurance are one of the provisions introduced in the Affordable Care Act back in 2010. Under this provision, the federal government may subsidize some of your insurance premiums if your income is low enough. The new stimulus package passed by President Biden extends this provision to allow more people to reduce the amount they pay out of pocket for insurance premiums. In today’s episode, Grant covers how this legislation works, who qualifies for these benefits, how and when to enroll, and things you should consider before switching from your current health insurance plan.
[02:47] The Legislation – Grant reviews the legislation that facilitates this opportunity and the motive behind passing this law.
[04:03] State Exchange – How the state exchange program works, criteria for qualifications, and how taxes come into play when you receive the benefits of this.
[10:02] New Updates – Grant reviews the changes that have been added to this legislation with the most recent stimulus package and some of the planning opportunities that come with the new changes.
[13:43] Breaking Down the Math – Grant explains a couple of examples of the premium subsidies and how much money you might save by utilizing this opportunity.
[16:53] Enrollment – Gant reviews the special window for enrolling in this program that expires on May 15 and why you should consider taking advantage of this opportunity.
[20:46] Deciding Whether to Enroll for Exchange Policies – Grant shares his take on a few things to consider when deciding whether it’s a good idea to obtain a policy under this program based on your current healthcare plan and some other factors.
Resources:
Ep # 68 - Dissecting the New Stimulus Checks & Recovery Legislation: The American Rescue Plan Act of 2021:
growmoneybusiness.com/podcast/ptkre5734rgwc54-76ljd
In recent years, the online trading platform Robinhood has been gaining popularity among typically younger and novice investors, mainly because they have no minimums or commissions. However, there are some things about the way Robinhood operates that are not always in the best interests of the users. In this episode, Grant reviews how this brokerage firm is set up, how they make money, and what you should keep in mind if you’re trading on Robinhood.
[01:37] Background – Robinhood’s origin story and how it forced many other brokerage firms to drop commissions to zero.
[04:39] Day Trading Mishaps – Grant reviews one of the horror stories related to day trading on Robinhood, where one investor ended up getting a massive tax bill because they didn’t understand the rules around trading.
[08:09] Wash-Sale Rule – The IRS has set up a rule related to wash sales that get triggered when you trade frequently. Grant dives into how this rule can lead to massive tax bills for day traders on Robinhood.
[12:24] How Robinhood Makes Money – Grant reviews how Robinhood’s commission-free business model works, how it differs from a traditional brokerage firm, and one revenue source that put Robinhood under scrutiny in the investor community.
[22:56] Unnecessary Trading – Some of Robinhood’s features are designed to encourage users to make more transactions. Grant explains why this practice does not work in the best interests of Robinhood users.
[29:47] Strategies for Robinhood Users – Grant shares his take on some of the strategies Robinhood users could implement to build a robust investment portfolio.
Resources:
Episode #63 - Anatomy of a Short Squeeze: GameStop FAQs:
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt-b7r9a-wja6y-ksbz4-9nlgl-559ba-3ncam-2dr43-h4bxz-jnxfw-ae9jc-wl66p-5ss8r-cnaej-4w6y7-pbr3p-dp97g-ar28b-yxwr5-tlyth-hbf5c
A real estate syndication is essentially a partnership between a set of limited partners who pool their money together to purchase a piece of real estate they cannot afford on their own. This week on Grow Money Business we have a distinguished guest who has been working on real estate syndications for quite a while. Anthony Scandariato, co-founder and managing principal of Red Knight Properties, joins us today to talk about what you need to know before investing in a real estate syndication.
[02:42] Introduction – What real estate syndication is, how it differs from property management, and available opportunities for investors.
[07:02] Legal Background – Rules, regulations, limitations, and liabilities associated with real estate syndicates.
[10:33] Lifecycle of Investment – The process of setting up a real estate syndication and getting into deals with investors.
[14:54] Sourcing Properties – Anthony talks about his process of finding properties, acquiring them, and preparing for business.
[20:35] Managing Properties – Anthony shares his thoughts on the ideal way to manage the properties and working with tenants to make smooth rent adjustments.
[24:02] Communication with Investors – How general partners maintain the relationship with investors in terms of cash flow, reporting, and profit-sharing.
[27:31] 1031 Exchange – Anthony shares his take on the purpose of the 1031 exchange and why it should not be repealed.
Resources:
Discovering Multifamily Podcast - Real Estate For Medical Professionals With Grant Bledsoe:
podcasts.apple.com/us/podcast/real-estate-for-medical-professionals-with-grant-bledsoe/id1506820688?i=1000513662632
Connect with Anthony
LinkedIn: https://www.linkedin.com/in/anthonymscandariato
Twitter: https://twitter.com/redknightprop
Website: redknightproperties.com
The Federal Reserve recently announced that they are going to maintain very low short-term interest rates for bonds over the next couple of years. On the other hand, long-term interest rates seem to be rising in recent weeks. We dedicated this week’s episode to reviewing how a savvy investor may respond to these developments. Throughout the episode, we discuss how bonds work, the risks associated with bonds, interest rates, why bonds are a crucial element of a healthy portfolio, and more. Stay tuned until the end of the episode, where Grant talks about why having non-US-denominated bonds could be beneficial to you.
[01:40] Introduction to Bonds – What bonds are, differences between bonds and stocks, and the role of investment banks in the process of issuing bonds.
[09:56] Risks Associated with Bonds – Grant explains some of the risk factors associated with bonds and why US government bonds are the least risky.
[13:00] Interest Rates – How the long-term and short-term interest rates work and how the interest rates started to change in the last few weeks.
[17:22] Trends - Grant shares his take on what contributed to the recent change in interest rates and what the current situation means for investors.
[21:44] Adjusting Bond Holdings – What you should keep in mind when deciding whether it’s a good idea to adjust your bond holdings due to the recent developments.
[24:15] Diversification Effect – Having bonds in your portfolio helps you survive poor market conditions because bonds have a floor on interest rates. Grant shares his take on why this is important for a healthy portfolio.
Resources:
Buying Bonds vs. Buying Bond Funds:
abovethecanopy.us/buying-bonds-vs-buying-bond-funds/
7 Ways to Lose Money With Bonds:
abovethecanopy.us/wp-content/uploads/2017/06/7-Ways-to-Lose-Money-With-Bonds.pdf
Episode #60: This Is Why I’m Concerned About Our Rising National Debt:
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt-b7r9a-wja6y-ksbz4-9nlgl-559ba-3ncam-2dr43-h4bxz-jnxfw-ae9jc-wl66p-5ss8r-cnaej-4w6y7-pbr3p-dp97g-ar28b-yxwr5-emf3a
The American Rescue Plan Act of 2021 was signed into law on March 11 to help the United States recover from the economic impact of the COVID-19 pandemic. This new legislation includes direct financial payments, extended unemployment benefits, expanded child tax credit, and numerous other provisions. Throughout this episode, Grant reviews several key provisions of the American Rescue Plan Act and what they mean for individuals and businesses.
[01:40] Introduction – The purpose of the new $1.9 trillion stimulus package and the main aspects it covers.
[05:01] Recovery Rebates – The new legislation brings stimulus checks of $1400 per eligible individual. Grant reviews the eligibility criteria for stimulus checks, the amounts available in different scenarios, and how the rules are different from the previously passed CARES Act.
[11:54] Checkpoints – Grant reviews the three checkpoints that are considered when evaluating the eligibility for recovery rebates and some of the tax planning opportunities related to this process.
[19:03] Unemployment Compensation – The new stimulus package contains extended provisions to help those who are unemployed due to the current economic situation. Grant dives into the eligibility criteria for this and how taxation comes into play for qualified individuals.
[22:05] Healthcare – Healthcare-related provisions in the stimulus package and how the new provisions are different from the CARES Act.
[31:27] Child Tax Credit – The new stimulus allocates more tax credit for dependents and also raises the age of eligibility. Grant dives into the new eligibility criteria and other updates related to child tax credits.
[36:48] Student Debt – The American Rescue Plan Act comes with provisions to make any student debts forgiven between 2021 and 2025 tax-free. Grant reviews how this works and who can benefit from this provision.
Resources:
American Rescue Plan:
www.whitehouse.gov/briefing-room/legislation/2021/01/20/president-biden-announces-american-rescue-plan/
H.R.1319 - American Rescue Plan Act of 2021:
www.congress.gov/bill/117th-congress/house-bill/1319/text
This week on Grow Money Business we talk about a powerful long-term tax planning opportunity available to business owners. Employing your kids in your business gives you and your kids numerous benefits in terms of taxation and retirement savings. Throughout this episode, Grant dives into what these benefits are, how you can contribute to your kids’ retirement savings, and some tax planning opportunities related to employing your kids.
We’re planning to post another mailbag episode in the next few weeks. If you have specific questions you’d like Grant to answer in an upcoming episode, visit growmoneybusiness.com, and drop your questions in the Mailbag section.
[01:29] Roth IRAs – Why Roth IRAs are a convenient retirement savings method and how taxation works on Roth IRAs.
[04:59] Saving Early – Why it’s a better idea to guide your children to save for retirement at a young age and the benefits of saving for retirement as early as possible.
[07:22] The Opportunity – How you can contribute to a Roth IRA on behalf of your children if they’re employed in your business.
[11:44] Tax on Your Child’s Earnings – Grant reviews the taxes that apply to the earnings of a minor and whether a tax return is required depending on your child’s income.
[14:26] Employing a Child in Your Business – Grant dives into the legal requirements for employing a child in your business and some of the interesting parts of a business you can get your child involved in.
[17:36] Setting up a Roth IRA – How to set up a custodial Roth IRA on behalf of your child and the process of handing over control to your child when they reach the age of maturity.
[19:11] Tax Planning Opportunities – Some of the opportunities you can use to reduce your tax bill.
This week on Grow Money Business we have another distinguished guest: Tammi Caress. Tammi is an estate planning attorney, and the founder of Caress Law, P.C. Throughout the episode, we dive deep into the process of estate planning, why it’s important for any adult to have an estate plan in place, things to consider when selecting what to include in your estate, and what provisions to include in your plan for both while you’re alive and after you pass. Stay tuned until the end of the episode, where Tammy shares some tips & tricks you can use to minimize estate taxes.
[02:22] Tammi’s Background – Tammi has been running her law firm for eight years. She shares with us how she helps her clients with establishing estate plans and other legal matters.
[04:36] Estate Plans – What is included in an estate plan, the process of creating an estate plan, and what benefits you and your loved ones get from having an estate plan.
[11:14] Power of Attorney and Advance Medical Directives – Why parents should guide their children to set up power of attorney and advance medical directives when they turn 18.
[17:47] Trusts – A trust is another method of estate transfer available to us. Tammi dives into how trusts work, how they’re different from a will, the legal process of setting up a trust, and the benefits of having a trust.
[27:11] Uniform Probate Code – What UPC is, the purpose of it, and how the legal process works in states that have adopted the UPC.
[32:42] Digital Assets – How digital assets such as emails, cloud storage, online accounts, and digital currencies are incorporated into estate planning.
[37:55] Access Without Legal Authority – Tammi explains the risks associated with sharing access to your online assets with someone without having proper legal authority.
[44:56] Mistakes – Tammi talks about some of the biggest mistakes people make in the process of estate planning and how you can avoid them.
[47:33] What to Put Into a Trust – Not all of your assets can be put into a trust, and it’s better not to put certain assets in a trust. Tammi reviews what to put into a trust and what to keep out of a trust.
[52:23] Choosing People – What you should do to get the right people in place to step in when you’re in need.
[25:40] Estate Tax Minimization – How taxation relates to estate planning and what you can do to minimize your estate tax.
Resources:
Connect with Tammy:
clientservices@caresslaw.estate
www.caresslaw.estate
Last week Bitcoin crossed $58,000 per coin. This extremely volatile digital currency has been becoming increasingly popular and getting more media attention than ever. Despite the scrutiny that comes with popularity, the technologies and concepts involved in Bitcoin are fascinating. We dedicated this episode to diving deep into what cryptocurrencies are, how they work, and whether they could be good investments. Stay tuned until the end of the episode, where Grant explains what you should keep in mind if you have plans to get involved in Bitcoin.
[01:16] Interest in Bitcoin – How the interest in Bitcoin increased over the recent years and how being radically open-minded to new opportunities can be beneficial to a financial professional.
[04:42] Decentralized Currency – How the blockchain technology paved the way to creating digital currencies that aren’t controlled by any central bank.
[07:53] How Cryptocurrency Works – Grant dives into how computers and complex mathematical operations are combined to create Bitcoin.
[13:33] General Ledger - The way Bitcoin transactions are recorded is built around a fascinating concept called the “General Ledger.” Grant explains how this process works.
[15:51] Benefits of Cryptocurrency – How cryptocurrencies and blockchain technology solve some of the problems we have with traditional currencies and some of the qualities of cryptocurrencies that make them attractive.
[25:44] Arguments Against Bitcoin – Disadvantages, limitations of and possible risks of using Bitcoin and other cryptocurrencies.
[32:49] Gold, Dollars and Bitcoin – How the US dollars were once linked to gold reserves, why people weren’t allowed to have large amounts of gold until 1971, and how this story relates to cryptocurrencies.
[36:35] Taxation – IRS has already taken measures to apply tax to cryptocurrencies by treating them as assets. Grant reviews how this affects the usability of Bitcoin and other cryptocurrencies.
[39:32] Does Bitcoin Belong in My Portfolio? – Grant shares his take on whether it’s a good idea to have cryptocurrencies in your portfolio and what you should be concerned about if you’re considering buying Bitcoin.
Resources:
IRS - Frequently Asked Questions on Virtual Currency Transactions:
www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions
With the stock markets going straight up, equities being more expensive, and bonds offering extremely low interest rates, many people seem to be wondering what’s the best way to invest extra cash they have. In today’s episode, Grant dives into some of the best investments you can make at this point, the current status of the market, and whether it’s a good idea to invest in certain asset classes. Stay tuned until the end of the episode, where Grant talks about whether buying Bitcoin is a good idea right now.
[01:27] Current Situation – Grant reviews the current financial situation in the country.
[04:47] Emergency Funds – Before getting into investments, it’s always a better choice to make sure that your emergency fund is adequate. Grant shares his thoughts on what you should consider when assessing the strength of your emergency fund.
[09:18] Retirement and Other Savings – Grant talks about how to take advantage of retirement funds and other means of saving once you have an adequate emergency fund.
[11:35] Market Timing – Grant dives into how market timing affects the performance of your investments with data from a study conducted by the Charles Schwab Corporation.
[18:26] Human Behaviour – Financial markets are driven by human emotion and behavior, and as a result of this, it’s impossible to know what’s going to happen in advance. Grant explains how you can make better investment decisions by being mindful of this trait of the financial markets.
[21:08] Asset Allocation – How properly planned asset allocation can help you get the best returns on your investments.
[24:22] Cyptocurrency Investments – Bitcoin and other cryptocurrencies have become a hot topic in recent weeks. Grant shares his take on whether it’s a good idea to get yourself involved in cryptocurrency investments.
[27:39] Final Thoughts – Grant sums up what you should consider when deciding what to do with your extra cash.
Resources:
Does Market Timing Work? - A study by Charles Schwab Corporation:
www.schwab.com/resource-center/insights/content/does-market-timing-work
With the GameStop incident further escalating we have been getting more questions about the whole situation. So we dedicated this episode to reviewing some of the specific areas related to short a squeeze. In today’s episode Grant dives into how short squeezes work, the controversy around Robinhood’s decision to suspend trading activities, the impact short selling has on our market, whether short selling should be banned, and more.
[02:24] The Market in the Last Week – Grant reviews the recent events related to GameStop stocks and how the incident created interest in the investment community about short selling.
[04:38] Short Squeeze – How short squeezes are created, and why short squeeze situations come with the risk of unlimited loss.
[10:45] Short Selling – How short selling works, the parties involved in short selling, and the role brokers play in short selling.
[17:40] Lending Shares – How lending shares leads to situations where there could be more shares short than shares exist in the market.
[23:39] Margin – Going on margin allows you to buy stocks worth more than the money you have. But it also can add fuel to the fire in short squeezes. Grant dives into how it happens and what you should keep in mind about going on margin.
[28:05] Robinhood’s Trading Suspension – Amidst the chaos created by the GameStop incident, the stock trading platform Robinhood suspended buying shares. Grant shares his take on the legitimacy of this practice and the purpose of doing it.
[31:28] Should Short Selling be Allowed? – Grant shares his take on the debate around whether we should get rid of short selling.
Resources:
Episode 63 - GameStop, Gamma Vortex, and Confirmation Bias podcasts.apple.com/lk/podcast/gamestop-gamma-vortex-and-confirmation-bias/id1489821030?i=1000507563780
My Take On Short Selling: abovethecanopy.us/my-take-on-short-selling/
In the past couple of weeks, an exciting and dramatic chain of events has been going on around GameStop Corp., where their stock price skyrocketed in a very short time. GameStop is a video game and gaming merchandise retailer. While they have been performing adequately, GameStop hasn’t come up with fascinating and innovative things in the past couple of years as other growth companies do. For that reason, this stock price surge triggered numerous headlines in the news and rumors and stories in the financial community. In today’s episode, Grant dives into what caused this situation, how things escalated, and whether there’s anything illegal going on. Stay tuned until the end of the episode, where Grant talks about what you should do if you’ve made a bunch of money in GameStop shares or options.
[02:04] The Last Two Weeks – Grant reviews the events of the last two weeks regarding the stock price of GameStop and the stories in the news.
[06:42] Reddit and Hedge Funds – How a group of traders who were communicating on Reddit about their trading activities and how some hedge funds got involved in the GameStop stocks situation.
[10:07] Selling Short – Grant explains a stock trading strategy that allows you to sell stocks without actually owning them, the way it works, and the risks associated with selling short.
[16:17] A Short Squeeze – How a drastic increase in stock price affects people who utilize the short-selling strategy and how it applies to the GameStop situation.
[21:00] Options – In stock trading, an option is a contract that allows you to buy a particular stock at a specific price for a certain period. This is somewhat an aggressive strategy, and Grant talks about how the demand for options trading added to the complexity and heavily influenced the GameStop stock price surge.
[29:13] Extreme Volatility – Grant shares his thoughts on how this situation was heavily contributed by traders who shared about their trading activities in online forums.
[31:48] Other Factors – Grant shares his take on what other factors contributed to the massive stock price increase and what they mean for investors.
[36:47] Restrictions on Trading – Some of the major brokerage firms imposed restrictions on trading GameStop stocks due to the developing situation. Grant explains the influences behind this and how it’s different from a regular circuit breaker.
[45:20] The Legal Aspect – Grant shares his take on stock trading rules and the legality of actions of different parties involved in the situation.
[49:20] Should You Get Involved? – Grant shares his take on why it’s not a good idea to get in on this trade.
[55:44] Confirmation Bias - How confirmation bias affects your decision-making process in this type of situation and how to be mindful of market behaviors where luck plays a significant role in the success of an investment.
Resources:
Q&A: A basic guide to the GameStop squeeze:
ft.com/content/f2929fcc-cc62-4d20-8397-2040ce3f595e
Stock Purchases and Sales: Long and Short:
www.investor.gov/introduction-investing/investing-basics/how-stock-markets-work/stock-purchases-and-sales-long-and
SEC Fast Answers – Options Trading:
www.sec.gov/fast-answers/answersoptionshtm.html
Tax gain harvesting is a strategy of selling investment assets at a gain and paying tax at that point as opposed to waiting and paying the tax later. Depending on your income and how your income may fluctuate in the future, there might be situations where it makes sense to take advantage of tax gain harvesting. Throughout today’s episode, Grant reviews how tax gain harvesting works, when it may be and may not be a good idea, and what you should consider before deciding whether tax gain harvesting might be beneficial in your specific scenario.
[01:20] Introduction – Grant reviews the concept of tax gain harvesting, the purpose of it, and how it works.
[02:52] Tax Loss Harvesting – What tax loss harvesting is and the wash-sale rule the IRS has surrounding tax loss harvesting.
[04:27] Long-term Capital Gains – How long-term capital gains work and how taxation applies to different types of tax filing.
[07:34] Roth IRA Conversion and Tax Gain Harvesting – Grant compares the benefits of Roth IRA conversions versus long-term capital gain harvesting and how you can save more according to your financial situation.
[13:33] When not to Harvest – Grant reviews a couple of scenarios where harvesting capital gains may not be the most beneficial choice.
[16:37] The Effects of Harvesting on Other Benefits – There are some benefits, tax credits, and other variables that depend on your adjusted gross income, such as social security and Medicare premiums. Grant explains why you should be mindful about these things since your adjusted gross income increases due to capital gain harvesting.
[21:10] The Political Aspect – Grant shares his take on how the proposed tax policies of newly elected government officials might affect the investment strategies of people who are in higher tax brackets.
Resources:
Capital Gains and Losses – 10 Helpful Facts to Know:
www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
How to Take Advantage of Your Retirement “Gap Years”
www.abovethecanopy.us/how-to-take-advantage-of-your-retirement-gap-years/
The national debt level in the United States is an important topic that usually gets quite a bit of attention in the financial and economic news. However, with everything else that's going on in the world, it seems the conversation about the debt level has been getting less attention than it deserves. We dedicated today's episode to talking about the national debt level. Throughout the episode, Grant dives into where we are in the national debt cycle, how much debt we have, at what rate our national debt is growing, and long term economic consequences that might occur as a result of the growing national debt.
[01:29] Households Vs. Federal Government – Grant brings up an interesting comparison of the finances and debt of a typical household versus a federal government to explain how debt can be beneficial when planned wisely.
[05:44] Growing National Debt – What happens if the national debt keeps growing over a long time and what it means for investors and citizens.
[07:26] Current Level of National Debt – How much national debt we have right now and where the national debt level is relative to the GDP.
[10:00] History of National Debt – Grant reviews the levels of national debt we had over the last few decades relative to the GDP and some patterns that could be seen in world economies over centuries.
[13:04] Role of the US Treasury – Measures taken by the US Treasury to gain funds and how these measures contribute to the national debt.
[15:46] The Breaking Point – Grant shares his thoughts on at what point a country starts to run into problems with their national debt and what contributes to these problems.
[20:19] Options at the Breaking Point – What options a country is left with when they have too much national debt and the consequences associated with these options.
[25:07] The Current Trajectory – Where the USA is headed in terms of the national debt, how this forces the federal reserve to print more US dollars, and how it bears the risk of losing the US dollar's status as the world's reserve currency at some point.
[31:26] Investors and National Debt – What the growing national debt level means for investors, and what measures we can take to ensure the stability of our investments.
[36:29] Highlights – Grant recaps the situation related to the national debt and shares a few tips about diversifying your investments.
Resources:
The Changing World Order by Ray Dalio:
linkedin.com/pulse/changing-world-order-ray-dalio-1f/
In today's episode, we have another distinguished guest: Greg K Williams. Greg is a certified mergers & acquisitions professional who has years of experience helping business owners and buyers through the process of selling or buying a business. Throughout the episode, Greg shares his wisdom on the process of selling a business from both a seller's and a buyer's perspective, common ways you can boost what you get from a business, and several other things you should know if you're interested in buying or selling a business.
[01:48] Greg's Background – Greg shares how he helps business owners and buyers as a business brokerage professional.
[05:44] Transaction Lifecycle – The process of selling a business and how the process differs according to the nature of the business.
[09:59] Valuation – Factors that contribute to the sale price of a business and what you can do to get a better deal.
[13:23] Buyers & Bidders – Greg shares how they connect and communicate with potential buyers and interested parties.
[18:00] Due Diligence & Closing the Deal – What happens after the buyer is ready to continue with the deal and the legal and financial aspects of the transaction.
[27:00] Boosting Value - Greg shares some of the things a business owner can do to increase the value of their business before selling it.
[32:30] Buyer's Perspective – Five questions Greg asks buyers to understand their expectations around buying a business.
[41:44] Impact of COVID – Greg shares how the pandemic and its economic impact have affected his line of work.
[46:24] Final Thoughts – Tips and tricks for people considering buying or selling a business to make a more advantageous deal.
Resources:
Connect with Greg:
greg@gregkwilliams.com
kcapex.com
The year 2020 has been an extremely challenging year for lots of people, businesses, and organizations. Therefore, this is also a time when charitable organizations may need help from donors more than ever. We dedicated today’s episode to exploring some of the tax-efficient strategies you can use to give to charity in a way that minimizes your tax impact. Stay tuned until the end of the episode, where Grant shares his favorite methods of charitable giving and some tips to optimize your tax benefits related to charitable donations.
[01:26] The CARES Act – Special provisions in the CARES act that encourage you to give cash gifts to charity.
[07:07] Qualification Criteria – What constitutes a qualified charitable gift and how to identify instances that do not qualify.
[11:04] Charity & Securities – How you can gift stocks or other appreciated assets to qualified charitable organizations and the tax benefits you receive in return.
[14:31] Roth IRA Conversions – How you can pair a substantially appreciated gift with a Roth IRA conversion to take advantage of some tax planning opportunities.
[17:00] Qualified Charitable Distributions – When you reach the age where you have to take mandatory distributions from your retirement funds, you can divert these distributions to qualified charitable organizations. Grant explains how this works and what benefits you receive in return.
[21:04] Donor-advised Fund – How donor-advised funds help you be consistent with your charitable donations while optimizing your tax benefits.
[25:57] Charitable Remainder Trusts & Charitable Lead Trusts – Grant explains how the two types of trusts work, the process of configuring these trusts, benefits you might receive, and how to decide whether these trusts are a good fit for you.
[33:49] Tips & Tricks – Grant shares his wisdom on tips & tricks to optimize your tax benefits related to charitable donations.
Resources:
Donor-Advised Funds:
irs.gov/charities-non-profits/charitable-organizations/donor-advised-funds
6 Ways to Minimize Required Minimum Distributions:
abovethecanopy.us/6-ways-minimize-required-minimum-distributions/
A couple of days ago, President Trump signed into law a second stimulus package for COVID relief. This legislation includes $600 stimulus checks, more funding for the Paycheck Protection Program along with some updates to the rules, changes to the regulations related to loan forgiveness, tax deferrals, healthcare, and more. Throughout the episode, Grant dives into what these new updates are, how they relate to individuals, business owners, employees, and how you can take advantage of the provisions in the new stimulus package.
[02:05] The New Stimulus – What caused the first stimulus to be insufficient in some aspects, and how the political situation in the country has influenced the second stimulus legislation.
[06:22] Highlights – Grant reviews the main aspects relevant to our audience covered by this new piece of legislation.
[09:08] Checks From the Federal Government – Eligibility criteria for direct checks and the amounts available for single filers, joint filers, and households with eligible dependents.
[15:14] Gray Areas – The CARES Act had several loopholes and gray areas that caused controversy around the legislation. Grant shares his take on how these ambiguities may affect the new legislation.
[18:34] Paycheck Protection Program – The new stimulus contains a few major areas that are quite different from the previously passed CARES Act. Grant explains what these changes are and how they may affect business owners.
[29:50] Eligible Expenses – The new stimulus comes with some changes in the eligible expenses for the Paycheck Protection Program. Grant reviews the new categories that have been added to the eligible expenses.
[33:10] Help for Performing Arts Businesses – The new stimulus contains a $15 billion grant program for live venues or arts-related businesses. Grant explains how this program works.
[36:37] Covered Period & Forgiveness – How the forgiveness process works in the new stimulus act and how you can prepare for spending your loan funds in a way that increases the possibility of being eligible for loan forgiveness.
[43:00] Tax Deferrals – Updates on payroll tax deferrals that come with the new stimulus bill.
[46:03] More Updates – The new stimulus comes with several other updates related to unemployment benefits, itemized deductions, student loans, healthcare, and more. Grant reviews how you may take advantage of these new provisions.
[53:22] Rolling Out New Provisions – How the provisions in the new legislation might be implemented and what to expect in the next few weeks.
Resources:
Consolidated Appropriations Act, 2021:
www.congress.gov/116/bills/hr133/BILLS-116hr133enr.pdf
At the end of every year, some business owners face situations where they need to set up retirement plans at the last minute due to numerous reasons. We dedicated this episode to reviewing how business owners may overcome this challenge. Over the years, Grant has come up with some strategies and maneuvers that may help you set up retirement plans and make deductible contributions late in the year. Throughout the episode, Grant shares how to implement these strategies in your business.
[01:35] Introduction – What might cause a business to set up retirement plans late in the year.
[03:33] Taxation – How contributions to retirement saving plans are taxed and some of the opportunities that may help you with your tax bill.
[06:24] SIMPLE IRA – Grants reviews the structure of one of the most common retirement saving types and why you may not be able to use it for last minutes retirement contributions.
[10:55] SEP-IRA – How SEP-IRA works and how it affects employees, self-employed individuals, and business owners in terms of taxation.
[18:01] 401k Plans – Rules and regulations related to 401k plans and things you should consider when making last-minute contributions with 401k plans.
[22:40] Safe Harbour 401k – Grant reviews the streamlined method for fulfilling the compliance requirements of a 401k plan when you have employees.
[23:28] Conversions – Things to keep in mind if you are interested in a Roth IRA conversion.
Resources:
The 17 Biggest Retirement Mistakes:
www.abovethecanopy.us/17-biggest-retirement-mistakes/
The Definitive Small Business Guide to Retirement Planning:
www.abovethecanopy.us/wp-content/uploads/2017/05/The-Definitive-Small-Business-Guide-to-Retirement-Planning.pdf
In recent months, IPO investing has been getting a bit of attention as quite a few popular companies such as Airbnb and DoorDash entered the public market this year. We dedicated this episode to exploring what every investor should know about investing in initial public offerings. Throughout the episode, Grant reviews the process of going public, how the IPO markets have changed over the last few decades, and whether we should expect adequate returns from IPO investing.
[01:05] Basics of IPO Investing – What IPO investing is, why it has been in the news recently, and the process of going public.
[05:57] IPOs and Investment Banks – Investment banks play two crucial roles in the process of an initial public offering. Grant reviews what these roles are and how an investment bank interacts with different parties involved in the process.
[09:54] The Open Market – Stock price fluctuations that happen right after a company goes public and what investors should keep in mind about them.
[12:09] Recent Trends – How private funding and venture capital mechanisms have changed the way companies enter the open market over the last few decades and what it means for investors.
[16:47] Deciding Whether to Invest in IPOs – Grant shares his thoughts on what you should take into consideration when deciding whether to invest in IPOs.
[18:47] Brands and IPOs – How the popularity of a brand may drive the stock price of a company right after going public.
[21:43] Having IPOs in Your Portfolio – How the performance of your investment portfolio may be affected by investing in IPOs and tips for making smart decisions around IPO investing.
Resources:
What Is an Initial Public Offering? :
investopedia.com/terms/i/ipo.asp
In recent months, mortgage interest rates have been significantly reduced across the country. Although it may sound like an attractive opportunity for people considering buying a house, there are several complexities related to homeownership. In today’s episode, we’re joined with Kelly Luethje to explore the true cost of homeownership. Kelly is a CERTIFIED FINANCIAL PLANNER™ and the founder of Willow Planning Group. Throughout the episode, Kelly shares her wisdom on the complexities of homeownership and what we should consider before buying a house.
[02:19] Kelly’s Background – Kelly talks about her work and how she helps young professionals with their financial decisions related to housing.
[04:40] Homeownership & Renting – Things to consider when deciding between homeownership and renting.
[09:17] Costs Involved in Homeownership – Kelly reviews some of the homeownership related costs that are different from a rental.
[19:41] Common Mistakes – Kelly shares some of the most common mistakes she sees people make when buying their first home and how to avoid them.
[24:18] Kelly’s Experience of Moving – Kelly recently moved to a new home in a different area. She shares what she experienced during the transition in terms of costs, lifestyle, and how it shaped her professional life.
[28:42] Selling a Property – Grant and Kelly dive into what you should consider when deciding whether to sell your old property or rent it out.
[35:08] Kelly’s Practice – Kelly shares her career journey, the story of her business, and the work she does with her clients.
[40.50] Investor Relations – Kelly talks about her work in investor relations and the experience of working with investors and teams of professionals.
Resources:
Kelly’s Blog: www.willowplanninggroup.com/blog/
In recent months, many companies have been struggling with numerous aspects of their business due to the economic hardships caused by the pandemic. This situation forces businesses to look for creative ways to cut costs, and one of the methods that companies may use for this is offering early retirement for some of the employees. In today’s episode, we explore what to do if you receive an early retirement offer and how to look at the offer objectively and make a pragmatic decision.
[01:39] Cutting Costs – Why companies are starting to offer more and more early retirement packages for employees and how the legal aspect of employment comes into play.
[05:19] Unexpected Decisions – For most people, an early retirement offer may come as a surprise, and it may become a difficult and emotional decision that you have to make in a short period. Grant shares his thoughts on how you can approach the issue to make a wise decision.
[08:13] Analyzing the Offer – How to analyze an early retirement offer and quantify its benefits.
[11:10] Retirement & Health Benefits – How an early retirement offer may affect your workplace retirement benefits and your health benefits.
[14:29] Financial Plan – Another crucial factor to consider when making this decision is how early retirement might impact your cash flow. Grant shares his thoughts on how to analyze your cash flow before making the decision.
[16:48] Turning Down an Early Retirement Offer – Potential changes that may happen in your workplace if you decide to turn down an early retirement offer and how to prepare for them.
[19:57] Life After Retirement – Grant shares his thoughts on how to keep your financial stability and manage your time effectively after retirement.
Resources:
72t Distributions: The Ultimate Guide to Early Retirement
www.abovethecanopy.us/the-ultimate-guide-to-early-retirement-with-72t-distributions/
After weeks of delay caused by legal battles surrounding the election, at this point, all signs point to the fact that Joe Biden will be inaugurated as the President of the United States of America. As we discussed in detail in a previous episode, Joe Biden's tax plan contains tax reforms that affect taxpayers in numerous ways. In today's episode, Grant dives into some of the tax planning opportunities you should consider in the coming months.
[01:42] The Process of Reforming Tax Rules – How the current political situation and the pandemic may affect Jo Biden's plan to reform the tax code.
[07:22] Retirement Plans – Biden's tax plan includes a new tax credit scheme for 401k plans. Grant reviews what comes under this change and how it may affect people in different tax brackets.
[09:46] Itemized Deductions – How the proposed provisions for itemized deductions leave us in a unique situation and what it means for taxpayers.
[15:06] Accelerating Income and Deductions – Why you should focus on accelerating income and deductions in the coming months.
[17:29] Tax Credit for First Time House Buyers – Grant shares his take on the new tax credit scheme and how to make it beneficial to you.
[19:02] Student Loan Forgiveness – Grant talks about some of the speculations around Biden's plan for student loan forgiveness under the federal student loan program.
[22:00] 1031 Exchanges – How the provisions in section 1031 of the tax code work and how eliminating section 1031 may affect the real estate industry.
[29:16] Long-term Capital Gains – What Biden's tax plan means for long-term capital gains of high-income earners and how to minimize the effect of this proposed tax reform.
[33:51] 401k Plans for Small Businesses – Why small business owners may want to rethink their 401k plans entirely.
Resources:
Episode #43: An Objective Review of the Biden Tax Plan:
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt-b7r9a-wja6y-ksbz4-9nlgl
Non-qualified stock options are a great way to incentivize and reward employees and the management of publicly traded companies. We dedicated today’s episode to exploring the basics of non-qualified stock options. Throughout the episode, Grant reviews how non-qualified stock options work, tax implications, and a few things to keep in mind if you have been granted some non-qualified stock options. Stay tuned until the end of the episode, where Grant talks about some tax planning opportunities that could help you minimize the amount of tax you have to pay in the long run.
[01:26] Introduction – Basics of options trading and how non-qualified stock options work.
[07:33] Important Terms – Grant explains a few crucial terms related to non-qualified stock options: strike price, fair market value, vesting, grant date, and expiration date.
[11:09] Taxation – How non-qualified stock options are taxed and when you will be taxed for non-qualified stock options.
[18:19] Concentration Risk – Why most people exercise and immediately sell when they are granted non-qualified stock options and how to objectively look at your company and handle the concentration risk associated with non-qualified stock options.
[21:38] Exercise and Cashless Exercise – How the two methods work and things to keep in mind when you decide which one to choose.
[25:52] 83(b) Election – 83(b) election is a provision that comes under the Internal Revenue Code that’s related to non-qualified stock options. Grant reviews how it works and how you can take advantage of it.
[31:31] Hanging on to Shares – Grant talks about when to hang on to shares and when to sell immediately.
Resources:
How Are Non-Qualified Stock Options (NSOs) Taxed?
www.abovethecanopy.us/how-are-non-qualified-stock-options-nsos-taxed/
Over the last few months, we have received numerous questions from our listeners that have focused on what Grant is doing personally with his finances. In today's episode, Grant shares two stories about his best trade and worst trade ever. He dives into why he made these investment decisions and what caused the very different outcomes of the two trades. Stay tuned until the end of the episode, where Grant shares his take on what he learned from these two trades.
[01:11] Long-term Investments – Grant explains why he always focuses on long-term, consistent investing.
[04:03] Data & Trading – How data analytics could be beneficial for making better decisions in trading.
[10:36] Undervalued Securities – Grant dives into some of the techniques he has been using to discover undervalued securities across multiple industries.
[15:05] The Best Trade – Grant shares how he was able to get a substantial return from buying stocks of an undervalued insurance corporation.
[25:42] The Worst Trade – How Grant ended up losing money due to an aggressive investment decision.
[34:45] Causes of Failure – Grant shares his take on the factors that caused the loss from his worst trade and what you should keep in mind to produce satisfactory long-term returns.
Resources:
Ep #46: A Beginner's Guide to Factor Investing
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt-b7r9a-wja6y-ksbz4-9nlgl
A few weeks ago, The New York Times published an article that created controversy around President Trump’s tax returns. One of the most controversial claims of this article was that President Trump paid only $750 in federal income tax in a year that he won the election. In today’s episode, Grant dives into specific sections of the tax code that enabled President Trump to reduce his tax bill and how you can incorporate similar strategies in your tax planning.
[01:59] The Controversy – What the New York Times revealed in their investigation and how it created controversy around President Trump’s tax returns.
[06:46] Tax Returns – How the tax return process differs as the complexity of a business increases and why big businesses and wealthy individuals employ large teams to handle tax filing.
[12:35] Tax Planning & Tax Evasion – Grant shares his thoughts on the difference between tax planning and tax evasion and how tax planning can be beneficial for minimizing tax while complying with the tax rules.
[15:57] Federal Income Tax and Other Taxes – Grant reviews different types of taxes that are in effect in the United States.
[18:05] Deductions – Grant explains how deductions work in tax filing for businesses and individuals. He also shares his thoughts on how you can take advantage of deductions to minimize your tax amount.
[22:31] Legitimate Business Expenses – How to identify opportunities for eligible business expenses you can use as deductions to reduce your taxable income.
[28:55] Depreciation – How tax deductions apply for the depreciation of commercial real estate and how you can implement this as a deduction in your tax filing to reduce your tax bill.
[32:50] Capital Goods – How to strategically plan your commercial equipment purchases in a way that gives you tax benefits.
[35:03] Net Operating Loss – Grant reviews the new regulations around net operating losses and how you can take advantage of it to reduce your tax bill.
Resources:
nytimes.com/interactive/2020/09/27/us/donald-trump-taxes.html?
Many of the investing principles we use in our portfolios today are related to a concept called modern portfolio theory. This concept was first introduced by Nobel Laureate Harry Markowitz in a paper written in 1952. In today's episode, Grant dives into the history of modern portfolio theory, the benefits of implementing this concept, three golden rules we can derive from the modern portfolio theory, and how you can implement these three rules in your portfolio.
[02:15] History of Investment Strategies – Grant dives into how portfolio management evolved over several decades and how it influenced the investment arena.
[06:55] The Scientific Method – How financial professionals started to utilize the scientific method for investing.
[10:05] Modern Portfolio Theory – Grant reviews what constitutes modern portfolio theory and how to build a portfolio that complies with the modern portfolio theory.
[16:03] Stocks & Other Assets – Why your decision about how much of your portfolio to be in stocks versus anything else is the most significant decision you will ever make.
[18:00] Risk & Return – How risk and return characteristics of different investment types affect the performance of a portfolio.
[21:54] Diversification – How to use diversification to your advantage and why diversification is beneficial for you.
[28:24] Long-term Consistency – How consistency can improve the performance of your portfolio.
Resources:
Modern Portfolio Theory:
investopedia.com/terms/m/modernportfoliotheory.asp
Ep #46: A Beginner's Guide to Factor Investing:
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt-b7r9a-wja6y-ksbz4-9nlgl
This week on the Grow Money Business podcast we have another mailbag episode. Grant covers four questions from our listeners about Social Security benefits, the future of value investing, distribution strategies for retirement, and saving for your kids' higher education.
If you have more questions you'd like us to cover, visit growmoneybusiness.com, and drop your questions in the Mailbag section. Grant will answer your questions in a future episode.
Question 01 - Social Security claiming rules with regard to spousal versus survivor benefits.
[01:56] Eligibility & Monthly Benefit – Grant reviews the eligibility criteria for claiming Social Security benefits and the process of calculating your monthly benefit.
[06:10] Filing for Benefits – How the age of retirement affects your monthly benefit and things you should keep in mind when deciding the optimal time to file for Social Security benefits.
[08:44] Spousal Benefits – How a couple with different income levels could plan their retirement in a way that gets them the maximum benefits.
Question 02 – "Do you think value investing is dead?"
[15:32] Performance of Value Stocks – Grant shares his take on how value stocks performed compared to growth stocks over the years and why value investing is not dead.
Question 03 - "What is the optimal distribution strategy if you're retiring at 65?"
[25:48] Building Your Strategy – Grant shares several factors you should consider when building your distribution strategy and how to communicate with your spouse about planning your retirement.
Question 04 – "How are you playing the 529 game for your kids?"
[30:37] 529 Plan – How the 529 plan works, how tax laws in different states affect 529 plans, and things to keep in mind when setting up 529 plans for multiple kids.
[36:12] Grant's Strategy – Grant shares how he optimizes his strategy to match his specific requirements and how you can prepare for future changes in the education system.
Resources:
Episode #46: A Beginner's Guide to Factor Investing:
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt-b7r9a-wja6y-ksbz4-9nlgl
Episode #44: Using Asset Location to Improve Investment Returns:
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt-b7r9a-wja6y-ksbz4-9nlgl
This week on Grow Money Business we dive into factor investing. Factor investing is a strategy that focuses on selecting securities based on attributes that are linked to higher returns. Throughout this episode, Grant covers what factor investing is, how you may implement it in your investment efforts, and some of the things you should keep in mind when engaging in factor investing. Stay tuned until the end of the episode, where Grant shares some valuable tips for minimizing your risks.
[01:00] Background – The history of index investing, how it works, and how index investing evolved over the years.
[08:40] Factor Investing – How the concept of trying to identify companies that would outperform evolved into factor investing.
[14:09] Factors – Grant explains some of the most important factors that contribute to the performance of stocks. He also reviews the Three-Factor model developed by Nobel Laureate Eugene Fama and distinguished financial researcher Kenneth French.
[20:58] Factor Investing In-depth - Factor investing has some unique characteristics that differentiate it from traditional index investing. Grant explains what these characteristics are and what they mean for the investors.
[24:21] Value & Growth Stocks – Grant shares his take on how the performance of value and growth stocks varied throughout the last decade and what trends may emerge in the near future.
[27:14] Adapting to Market Trends – How to be mindful about changing market conditions and what you should keep in mind when working with a professional.
[33:28] Making Wise Investment Decisions – How to improve your investment decisions using factor investment strategy.
[37:33] Who is a Good Candidate for Factor Investing? – Grant shares his take on things you should consider when deciding whether factor investing is a suitable strategy for you.
Resources:
Bloodletting and Evidence-Based Investing:
abovethecanopy.us/bloodletting-and-evidence-based-investing/
Episode 44: Using Asset Location to Improve Investment Returns:
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt-b7r9a-wja6y
In today's episode we have another distinguished guest: Mariah Hudler. Mariah is a financial therapist who helps people build balanced, comfortable relationships with money. Throughout this episode, Mariah shares her wisdom about what contributes to our attitude toward financial matters, how our backgrounds impact our financial decision making, and what you can do to improve your relationship with money. Stay tuned until the end of the episode, where we talk about some valuable tips for reducing financial stress.
[01:54] Mariah's Story – Mariah talks about her clinical work, how she helps people improve their financial health using financial therapy, and how to identify whether you need to seek help from a financial therapy practitioner.
[07:58] The Value of Financial Literacy – Why financial literacy is a crucial part of life and what measures can be taken to improve financial literacy.
[12:43] Money Scripts – Mariah talks about an interesting concept of dividing money-related behaviors into four categories.
[18:58] Approaching Financial Therapy – Mariah's process of getting started with clients to help them with their financial health.
[24:12] Personal Background and Financial Health – How someone's background and past events can shape their financial habits and behaviors.
[26:32] Adapting Behaviors – Mariah explains some of the measures she takes to guide her clients toward safer financial behaviors.
[31:52] Financial Therapy Timeline – Mariah shares her thoughts about focusing on long-term and short-term goals depending on the background and needs of her clients.
[36:19] Working Virtually – Mariah talks about the effectiveness of conducting therapy sessions virtually.
[41:11] Mariah's Transition into Financial Therapy – Mariah talks about her transition from clinical therapy to the financial aspect of therapeutic work.
[44:31] Emotional Issues Related to Entrepreneurship – Common finance-related emotional issues entrepreneurs and business owners experience and how to effectively manage the impact of these issues.
[52:05] Handling Financial Stress – Tips and tricks for reducing financial stress and anxiety.
Resources:
Connect with Mariah:
korufinancialtherapy.com
mariahhudler.com
This week on Grow Money Business we dive into an area that is often overlooked in the investment arena: asset location. Asset location is the concept of placing investment assets in different types of accounts in order to maximize returns. Throughout the episode, Grant dives into how this concept works, what benefits you can get from thoughtfully planned asset location, and what you should keep in mind when implementing this concept in your portfolio.
[01:08] Introduction – What asset location is, how it evolved, and how far asset location can improve your investment returns.
[04:26] Types of Taxation – Grant dives into a few different methods of taxation and how properly planned asset location can be beneficial for you.
[10:47] Implementing Asset Location – How to place different asset classes in various types of accounts in a way that maximizes your investment returns.
[16:15] Expected Return & Tax Efficiency – Grant explains in-depth about two crucial factors you should take into consideration when implementing your asset location strategy.
[21:13] Placing Assets in Different Types of Accounts – Grant reviews some examples of how you can prioritize and place your assets in the right type of account based on tax preference.
[26:44] Adapting to Changing Market Conditions - Market conditions tend to shift due to numerous reasons. Grant explains how you can make tactical shifts in your investment strategy to adapt to new situations.
Resources:
How to Use Strategic Asset Location to Reduce Your Tax Bill - Above the Canopy:
www.abovethecanopy.us/strategic-asset-location/
Bogleheads Forum:
www.bogleheads.org/wiki/Tax-efficient_fund_placement
As we approach the presidential election, we're getting more and more details about the campaign promises made by the candidates. We dedicated this episode to reviewing some of the provisions Joe Biden proposes in his tax plan. Throughout the episode, Grant shares his thoughts on numerous aspects of the Biden tax plan and how the proposed provisions may affect businesses, employees, and investors.
[01:05] The Legislative Cycle – Grant shares his thoughts on the process of making changes to tax legislation and when the tax changes may become effective if the democratic candidate gets elected.
[07:00] Itemized Deductions – How the scheme of deductions proposed in the Biden tax plan differs from the current procedures.
[11:19] Qualified Dividends & Long Term Capital Gains – Grant reviews the provisions available in the Biden tax plan for your investments.
[15:05] Retirement – Joe Biden's tax plan contains some provisions to optimize the 401K system. Grant explains what these changes mean for employees.
[21:34] Student Debt – How income-based student loan repayment programs work, how taxation comes into play for student loan forgiveness under these programs, and related changes proposed in the Biden tax plan.
[30:00] Inheritance – Grant reviews the current tax provisions available for inheritance and what Biden proposes in his tax plan for inherited properties.
[38:02] Social Security – As we discussed in the previous episode, the Social Security system is under somewhat stress right now. Joe Biden also plans to implement some changes in levels of wages that are subject to Social Security tax. Grant dives into what these changes mean for the general public.
[42:02] Corporate Tax Rates – The Biden tax plan includes an increase in tax rates for corporations, which may contribute to a substantial increase in federal revenue. Grant shares his thoughts on what this means for businesses.
[46:40] Opportunities – What it takes to practically implement the changes proposed in the Biden tax plan and a couple of ways you can take advantage of these changes if Joe Biden gets elected.
Resources:
Reviewing the Biden Tax Plan:
www.abovethecanopy.us/reviewing-the-biden-tax-plan/
Episode #42: Did Trump Just Kill Social Security?
growmoneybusiness.com/podcast/x9ykf9576e352jd-xs3l5-l355n-pc3nj-4l3tz-fsye7-g9gha-tdcyt
The Social Security system has been under stress for years, and lost tax receipts due to COVID-19 hasn’t helped the viability of the program. President Trump recently issued an executive order that allows employers to defer Social Security taxes from the paychecks of their employees for the rest of 2020. In today’s episode, Grant talks about how the Social Security system works and how this executive order may affect the viability of the Social Security trust fund. Stay tuned until the end of the episode, where we talk about what you should consider when deciding whether to defer your Social Security tax.
[01:32] Skepticism About Social Security - How Social Security is set up, why it’s under stress, and what causes the skepticism about the Social Security program.
[07:33] Viability Forecast – Grant reviews the process of assessing the viability of the Social Security trust fund and what the latest forecast tells us about the current status of the fund.
[10:10] Impact of COVID – Grant shares his take on how the pandemic affected the viability of the Social Security system.
[17:30] President Trump’s Executive Order - How the provisions in the recent executive order work, what it means for employees, and the political aspect of this decision.
[22:15] Improving the Social Security System – Grant shares his take on some of the possible changes to the Social Security system that may improve its viability.
[31:15] Should You Defer Social Security Tax? – Grant shares some of the things you should consider when deciding whether to defer your Social Security tax.
Resources:
How It Works: President Trump’s Payroll Tax Deferral Executive Order
gop-waysandmeans.house.gov/how-it-works-president-trumps-payroll-tax-deferral-executive-order/
Episode #35: What Does COVID-19 Mean for Social Security?
growmoneybusiness.com/podcast/x9ykf9576e352jd
In recent years, stock buybacks have been getting quite a bit of attention in the financial news as companies are spending more and more money on buying back their own shares. In today’s episode, we cover several aspects of dividends and stock buybacks, including how they work, how different corporations approach distributing dividends, how buybacks affect the economy, and why you should be paying attention to them.
[02:40] Dividends – How public companies distribute their profit to shareholders through dividends.
[05:06] Value & Growth – Why some companies decide to share their profit with the investors while others reinvest their profit back in the business.
[10:07] Dividend Investment Strategies – How you can incorporate dividends into your investment strategy and why you should not solely rely on dividends to make investment decisions.
[13:46] Dividends & Tax - How dividends are taxed and what you should keep in mind when making investment decisions related to dividends.
[16:24] Stock Buybacks – Grant explains what stock buybacks are, why companies prefer to buy back their own shares, and what advantages investors get from stock buybacks.
[21:19] Negative Effects of Stock Buybacks – How stock buybacks are related to the way executives are incentivized and how it affects the investors.
[28:51] Long Term Viability – Grant shares his take on how the current system is gradually pushing executives toward unsustainable levels of stock buybacks and why executives must focus on the long term viability of the businesses.
Resources:
Harvard Business Review - Why Stock Buybacks Are Dangerous for the Economy:
hbr.org/2020/01/why-stock-buybacks-are-dangerous-for-the-economy
Stock Buybacks: A Breakdown
www.investopedia.com/articles/02/041702.asp
Since Apple, Tesla, and a few other companies have recently announced stock splits, we’ve been getting questions about how stock splits affect the position of the investors. And for today’s episode, we have another distinguished guest to enlighten us about stock splits. Michal Skowronski, a CERTIFIED FINANCIAL PLANNER™, and the founder of Skylark Wealth joins us today to review what stock splits are, why companies tend to like it, and what investors should know about stock splits. Stay tuned until the end of the episode, where we talk about the impact of influencers giving financial advice on social media.
[02:00] Michal’s Background – How Michal works with clients nationwide and abroad through his virtual practice.
[07:30] What is a Stock Split? – Michal explains what a stock split is and a few reasons why a company may decide to split their stocks.
[12:04] The Marketing Aspect of Stock Splits – Grant and Michal review the marketing concept that makes stock splits appealing to companies.
[18:56] Reverse Stock Splits – What a reverse stock split is and the pros and cons of reverse stock splits.
[22:21] Psychological Effects of Stock Splits – How stock splits affect the behavior of the investors and what you should keep in mind to maintain a strong investment strategy.
[28:40] Social Media & Investing – Michal shares his take on the flawed investment strategies that are frequently advertised on social media and why these flashy, aggressive strategies may not achieve good outcomes in the long term.
[38:13] Risks of Investing – Why risky investment strategies may seem attractive to amateur investors, where they may fail, and what you can do to maintain your mental stability to make successful investment decisions.
[41:01] Influencers & Investing – Grant and Michal share their thoughts on how some influencers have been sharing potentially misleading content on social media and why they get more attention than financial advice from qualified professionals.
[45:20] Knowledge & Entertainment – How financial professionals can utilize technology to create reliable and entertaining content that leads people in the right direction.
Resources:
Michal’s Website: skylarkwealth.com
Stock Splits:
www.sec.gov/fast-answers/answersstocksplithtm.html
Reverse Stock Splits:
www.investor.gov/introduction-investing/investing-basics/glossary/reverse-stock-splits
This week on the Grow Money Business podcast we have another mailbag episode. Grant covers four questions from our listeners about student loan payments, the impact of zero dollar trading commissions, selling your stocks due to the current situation in the markets, and the economic impact of the upcoming election.
If you have more questions you’d like us to cover, visit growmoneybusiness.com, and drop your questions in the Mailbag section. Grant will answer your questions in a future episode.
Question 01 – “I heard that I wouldn’t have any student loan payments due for the rest of the year. Should I keep making the payments anyway?”
[03:53] Administrative Forbearance – How the administrative forbearance works and what it means for students and parents.
[05:43] Deciding Whether to Continue Making Payments – Grant reviews several factors you should take into consideration when you’re deciding whether to continue making student loan payments.
[09:09] Refinancing Student Loans – For some borrowers, refinancing a student loan with a private lender makes more sense, depending on the career path they choose. Grant explains the pros and cons of remaining in the federal system and refinancing with a private lender.
Question 02 – “How do we think Robinhood is going to impact trading in the markets?”
[12:48] The Story of Robinhood – Robinhood is a fintech company that was launched in 2013. Over the last couple of years, they managed to push all the major brokerage firms to zero dollar trading commissions. Grant reviews Robinhood’s business model and how they make money without brokerage commissions.
[17:32] The Impact of Robinhood – How Robinhood influenced the industry, how it attracts lots of amateur investors, and what you should take into consideration if you’re utilizing aggressive trading strategies.
Question 03 – “We’ve just had this crazy run-up in stocks. Is now a good time to sell? This just looks completely unsustainable.”
[27:53] Making Decisions for the Long Term – Why it’s essential to focus on optimizing your wealth and plan for the long term.
[30:54] The Impact of National Debt – How the amount of debt we have as a country may affect the markets.
Question 04 – “How will the election impact the markets?”
[38:13] Volatility After Election – Grant explains why we may see a lot of volatility after the election, regardless of who gets elected. He also shares his take on what to expect from each party, in terms of taxation and policies.
Resources:
Coronavirus Turmoil, Free Trades Draw Newbies Into Stock Market:
wsj.com/articles/coronavirus-turmoil-free-trades-draw-newbies-into-stock-market-11588158001
Coronavirus and Forbearance Info for Students, Borrowers, and Parents:
studentaid.gov/announcements-events/coronavirus
In today’s episode, Katie Brewer from Your Richest Life Financial Planning joins us to chat about long term disability insurance. Katie is a CERTIFIED FINANCIAL PLANNER™, and shares some wisdom she’s picked up over the years surrounding why LTD coverage is so important and what to look for when evaluating a policy.
Throughout the episode, Katie and Grant review many aspects of long-term disability insurance, how to decide whether to obtain coverage, and a few things you can do to reduce the cost of a policy.
[01:27] Katie’s Background – Katie shares how she helps her clients make smart financial decisions.
[07:27] Why Long-term Disability is Important – Katie shares her thoughts on why it’s crucial to have a safety net in case of an illness that prevents you from working.
[11:14] Details of Long-term Disability – What constitutes a disability, how long-term disability insurance works, and different ways insurance companies structure their long-term disability policies.
[19:18] Evaluating a Policy – Katie and Grant review several factors you should consider when you’re evaluating a long-term disability insurance policy.
[22:43] Riders – riders are a set of options that come with your insurance policy. These are commonly available in long-term disability policies. Katie dives into details of the most common riders and their benefits.
[25:54] Residual Disability – What happens if you’re only able to work part-time due to a long-term disability and how you can choose your insurance options to prepare for such a situation.
[31:57] Group Coverage – Grant and Katie discuss what you can do if you have a group insurance policy that does not fulfill your expectations.
[35:45] Future Insurability – How you can update your insurance options to match your future needs and what to consider before switching to a new insurance policy.
[43:15] Working with Insurance Agents – Katie shares her thoughts on why it’s essential to work with independent insurance agents who are not beholden to one insurance company.
[50:39] Taxability of Benefits – How taxation comes into play, depending on how your insurance policy is structured.
[56:00] Insurance Through Professional Organizations – Grant and Katie share their experiences of obtaining group insurance policies through professional organizations.
[58:20] Final Thoughts – Katie sums up the most important things you should keep in mind when you’re thinking of obtaining a long-term disability insurance policy.
Resources:
Katie’s Website:
yourrichestlifeplanning.com
Find Katie on Social Media:
facebook.com/yrlplanning
twitter.com/KatieYRL
During the last couple of weeks, we’ve been getting a lot of questions about debt refinancing. Due to decreasing interest rates, refinancing seems to look like a good option for many people. We dedicated today’s episode to discussing the details of refinancing. Throughout the episode, we review several types of debt and what you should keep in mind if you’re thinking about refinancing. Stay tuned until the end of the episode, where Grant shares some valuable tips for consolidating credit card debt if you’re struggling with multiple credit cards.
[01:22] Mortgage – How mortgage works and available options for financing a house.
[04:22] Deciding Whether You Should Refinance – Grant reviews several factors you should consider to figure out whether refinancing your mortgage is a good idea.
[09:54] 15-Year Fixed Rate Mortgages – Grant shares his take on why you should be mindful of the pros and cons of swapping into a 15-year fixed rate mortgage.
[12:15] Student Loan Debt – Because of the low rates, refinancing may look like a good option for those who currently have student loans. Grant reviews what other options are available as an alternative to refinancing and when to think about refinancing.
[19:20] Credit Card Debt – Why credits card debt is different from a mortgage and how to take advantage of the credit card system.
[23:16] Consolidating Credit Card Debt – Grant reviews several options that are available to you for consolidating your credit card debt.
[30:49] Business Debt – Grant explains why this is a good time for businesses that struggle with cash flow to consider refinancing.
Resources
Episode 34 - Why College Is So Expensive & How to Pay for It With Robert Farrington:
podcasts.apple.com/lk/podcast/why-college-is-so-expensive-how-to-pay-for-it-robert/id1489821030?i=1000485750202
A Consumer’s Guide to Mortgage Refinancing – The Federal Reserve Board:
www.federalreserve.gov/pubs/refinancings/
Settling Credit Card Debt – FTC Consumer Information:
www.consumer.ftc.gov/articles/0145-settling-credit-card-debt
As we grow older, most of us are going to need help with activities of daily living. Long-term care insurance is a product that is designed to help with this. It’s also a product that’s in the news for positive as well as negative reasons. We dedicated this episode to exploring what long-term care insurance is, whether it’s a good fit for you, and some other items you should consider before obtaining a long-term care insurance policy.
If you have specific questions for us to cover, visit growmoneybusiness.com, and drop your questions in the Mailbag section. Grant will answer your questions in a future episode.
[01:42] Background – What long-term care insurance is, what it covers, and how long-term care insurance policies evolved over the years.
[09:24] Statistics – Grant reviews statistics from the US Department of Health and Human Services about the percentage of people who are going to need long-term care assistance in their life.
[12:27] Deciding Whether You Need It – Why you should consider your financial status when you’re thinking about obtaining a long-term care insurance policy.
[15:15] State Facilities – Things you should keep in mind if you’re considering a state facility for long-term care.
[19:09] When to Obtain Long-Term Care Insurance – Grant shares his take on the ideal age for obtaining a long-term care insurance policy and the reasons behind it.
[22:27] Pricing Issues – Grant explains how the way long-term care insurance pricing was structured in the early years and how it affected the premiums over the next couple of decades.
[27:52] Drawbacks – Grant explains how the premiums may further increase in the future and some alternate options you can use to make the situation better.
[31:30] Practicality of Long-Term Care – Important things to keep in mind if you’re planning to take care of your loved ones yourself.
Resources:
What is Long-term Care Insurance? - longtermcare.acl.gov/costs-how-to-pay/what-is-long-term-care-insurance/
Long-term Care Providers and Services Users in the United States - US Department of Health and Human Services:
www.cdc.gov/nchs/data/series/sr_03/sr03_43-508.pdf
During the last couple of weeks, the current status of the Social Security Trust Fund seemed to be a concern for lots of people. So we dedicated this week’s episode to reviewing social security. Throughout the episode, Grant speaks in-depth about how the Social Security system works, how COVID-19 is affecting the Social Security trust fund, and what kind of planning we can do. Stay tuned until the end of the episode, where Grant talks about some of the options you have if you’re genuinely concerned about your Social Security benefits.
[01:21] How Social Security Works – A quick review of the Social Security system, its benefits, and how it integrates with payroll and tax mechanisms.
[05:45] Calculations – Grant explains how Social Security benefits are calculated when you enter retirement.
[09:40] The Social Security trust fund – Investment, auditing, and forecasting procedures of the social security trust fund.
[12:49] Current Status of the Fund – Grant reviews the current status of the Social Security trust fund based on the latest forecast.
[16:07] The Impact of COVID-19 – How COVID-19 may affect the strength of the Social Security trust fund.
[22:11] Changes to the System – Grant dives into some of the possible changes to the Social Security system that allows it to adapt according to the current economic conditions.
[30:05] Changing Investment Methods – Social security trust is allowed to invest only in US government bonds. Grant reviews the possibility of changing these rules and putting Social Security funds in other types of investments.
Resources:
What is Social Security? - www.ssa.gov/people/materials/pdfs/EN-05-10230.pdf
Understanding Social Security Benefits - www.ssa.gov/pubs/EN-05-10024.pdf
Social Security Trustee Report: - https://www.ssa.gov/OACT/TRSUM/index.html#:~:text=In%202019%2C%20Social%20Security's%20reserves,2034%2C%20unchanged%20from%20last%20year.
In today’s episode, we have another distinguished guest: Robert Farrington. Robert is the creator of thecollegeinvestor.com, a website dedicated to helping people learn about student loans. Throughout the episode, we cover numerous aspects of higher education, including why college is so expensive, how online education affects your college experience and things you should consider before obtaining a student loan. Stay tuned until the end of the episode, where we talk about common mistakes people make in the process of getting a student loan.
[01:28] Robert’s Background – Robert talks about how he helps people learn about student loans and get out of student loan debt.
[04:27] Remote Education Related Challenges – In recent months, many colleges were forced to bring their education to online platforms. This trend introduced some unique challenges to students. Robert gets into details of these challenges and how to overcome them.
[10:25] How to Utilize Networking - How students can connect with people in the industry to get help with decisions regarding their college education.
[15:14] Why is College Expensive? – Robert dives into the history of college education in the USA and how college education gradually became expensive.
[21:47] The Demand for Trade Skills – In recent years, there has been an increase in opportunities for skilled workers. Robers explains why these opportunities often go unnoticed and how to decide whether the trade route is better for you than going to college.
[26:47] Saving for Higher Education – Robert shares his take on what parents should consider before starting a 529 plan for their children’s college education.
[33:27] Other Means of Saving – Other ways you can save money for your children’s college education.
[36:10] Dealing With Student Loans – Robert shares his take on the current state of the student loan programs and possibilities of student loan forgiveness.
[43:18] Can College Be Free? – Robert discusses the feasibility of making college education free or wiping out all student debt.
[46:38] Misconceptions Around Paying for College – A few misconceptions around funding for college and common mistakes people make when they apply for a student loan.
[55:12] Final Thoughts – Grant and Robert review several tools you can use to make the loan payment process easier for you and what to expect in the next few months with regards to student loan payments.
Resources:
Robert’s Website: thecollegeinvestor.com
Public Service Loan Forgiveness (PSLF): studentaid.gov/manage-loans/forgiveness-cancellation/public-service
An Introduction to 529 Plans: https://www.sec.gov/reportspubs/investor-publications/investorpubsintro529htm.html
Recently, we have been observing numerous claims that small-cap investments will no longer outperform large-cap investments due to a variety of reasons. However, the empirical data still strongly implies that small-cap stocks tend to outperform large-cap stocks. In today’s episode, we dive into the details of whether we should expect this trend to continue and how you can use this idea to make better investment decisions.
[02:13] Background – Small-cap stocks used to get less interest from large institutional investors. Grant explains how this trend shifted due to the prominence of index investing.
[06:53] Why Small-cap Stocks Performed Better - Grant reviews several factors that contributed to the better performance of small-cap stocks compared to the large-cap counterparts.
[11:00] Recent Changes – Although small-cap stocks used to perform better, that seems to have changed in recent years. This change leads to the argument that small-cap stocks may not continue to outperform large-cap stocks. Grant gets into details of two contributing factors to this change.
[16:29] Going Public Eventually – Due to regulatory burdens and availability of other means of gaining capital, more and more companies avoid or delay going public. However, many of these companies will continue to grow and eventually go public. Grant explains a couple of examples of this phenomenon and what it means for small-cap investors.
[21:49] Vanguard’s Study on Falling Number of Public Companies – Grant reviews the findings of a study by The Vanguard Group that revealed why the number of publically listed companies decreased in the last 20 years.
[25:51] Professionally Managed Investments – Why it’s less risky for investment managers to favor large-cap investments over small-cap investments.
[32:23] Final Thoughts – Grant sums up why he does not believe that small-cap premium is gone and some suggestions for those who are investing in small companies.
Resources:
Vanguard Research - What’s behind the falling number of public companies?
personal.vanguard.com/pdf/ISGPCA.pdf
Understanding Small-cap and Big Cap Stocks:
www.investopedia.com/insights/understanding-small-and-big-cap-stocks
This week on the Grow Money Business podcast, we have a very distinguished guest: Melissa Ellis. Melissa is a CERTIFIED FINANCIAL PLANNER™, a CERTIFIED DIVORCE FINANCIAL ANALYST™, and the founder of Sapphire Wealth Planning. Through her firm, Melissa helps couples going through divorce achieve as equitable results as they possibly can. In today’s episode, we dive into what couples can do before getting married to avoid financial problems and what couples who are considering getting divorced can do to make the situation better. Stay tuned until the end of the episode, where we talk about a few important discussion points that can help couples with financial issues.
[01:48] Melissa’s Background – Melissa talks about her firm and how she helps couples who are going through the divorce process achieve better outcomes.
[04:46] The Process of Divorce – How financial matters come into play when a couple decides to get divorced and what they have to go through to complete the process.
[08:34] Planning for the Future – The financial aspect of divorce includes a lot more than just splitting assets. Melissa reviews numerous points to consider so that both spouses will be financially safe, even several years or decades after the divorce.
[14:21] The Role of a CDFA – Melissa talks about several ways a Certified Divorce Financial Analyst can help a couple under different circumstances.
[21:46] Financial Planning for Divorce – Melissa reviews the process of planning and splitting financial assets and a few things to consider in terms of taxation.
[26:24] Divorce and Businesses – What happens when there’s a business owned by one of the spouses in a divorce.
[30:08] Marital Property – The process of tracing and separating marital property and non-marital property.
[36:36] Financial Planning Before Marriage – Why you should start planning your financial matters before you tie the knot and how it contributes to a happier marriage.
[41:42] Conversations About Money – How the different family and cultural backgrounds of the two spouses can affect the financial strength of a couple and how to take the first step toward talking about financial matters as a couple.
[47:35] Helping Youngsters With Their Financial Planning – Melissa mentioned her daughter was going to get married very soon. Melissa shares the way she helps her daughter with financial planning.
[50:00] Preventing Divorce – Mellissa talks about a case where the couple ended up not getting divorced after properly handling their financial issues and what contributed to that positive outcome.
[58:45] Making Divorce Less Painful – The value of discussing financial matters with an objective third party and how that can help you make the divorce process less uncomfortable.
Resources:
Melissa’s Website: sapphirewealthplanning.com
This week on the Grow Money Business podcast, we’re talking about an investment strategy that has become very popular in the last few years. Environmental, Social & Governance Oriented (ESG) Investing, otherwise known as socially conscious investing or sustainable investing, is a concept where people invest their money in a way that aligns with their personal values. In today’s episode, Grant talks about what ESG investing is, how it performs compared to traditional investment strategies and some things you should consider if you want to implement ESG investing in your portfolio.
[01:18] Introduction – What ESG investing is and how people started to make investment decisions based on their personal values.
[06:44] The Growth of ESG Investing – How the concept of ESG & socially conscious investing evolved over the years and currently available options for ESG investing.
[09:38] Is It a Decent Strategy? – Grant shares his take on the viability of ESG investing.
[12:36] IMF Study on ESG Investing – In October 2019, the International Monetary Fund released a report based on their study on ESG investing. Grant reviews what this report tells us about the way ESG investing affects the performance of investments.
[16:14] Study on ESG Investing by Bank of America – Grant reviews the findings of a study that revealed how the top ESG-ranked companies outperformed the average S&P 500 company.
[22:52] Other Studies – Grant explains findings from two other studies on ESG & socially conscious investing by two reputable organizations.
[30:17] Conclusion – Grant sums up what the four studies tell us about the viability & performance of the ESG investing strategy.
[32:36] Things You Should Keep in Mind – Challenges and limitations associated with ESG investing and things you should consider when you’re screening for ESG investment options.
Resources:
IMF Global Sustainability Report, October 2019:
https://www.imf.org/~/media/Files/Publications/GFSR/2019/October/English/ch6.ashx
Bank of America – Why ESG Matters:
https://about.bankofamerica.com/en-us/what-guides-us/esg-a-z-report.html#fbid=sV4eZWiSnME
Deloitte Insights: Advancing Environmental, Social, and Governance Investing:
https://www2.deloitte.com/us/en/insights/industry/financial-services/esg-investing-performance.html
GMO Whitepaper - ESG: Improving Your Risk-Adjusted Returns in Emerging Markets:
https://static1.squarespace.com/static/591df6941b10e3b5a2ddef95/t/5ad7b23d562fa75adb8bb404/1524085311255/esg-improving-your-risk-adjusted-returns-in-emerging-markets+%28002%29.pdf
In today’s episode we have a special guest: Benjamin Brandt. Benjamin is a Retirement Income Certified Professional (RICP®), and the host of Retirement Starts Today Radio, a top-rated podcast dedicated to retirement planning. Throughout the episode, Ben shares his wisdom on retirement income ideas, spending rules, incorporating flexible retirement spending into your retirement income plans, and numerous other topics. Be sure to stay tuned until the end of the episode, where Ben talks about what people often get wrong in their transition to retirement.
[01:28] Ben’s Story – Ben’s background and his journey through the financial planning industry.
[06:37] The Four Percent Rule – Ben shares his take on the effectiveness of the 4% rule and why it may not be an ideal strategy in some situations.
[10:04] Making Timely Decisions – How to adjust your retirement strategy according to varying market conditions.
[17:11] Distributions – Ben explains the logistics aspect of pulling money from your portfolio and some ways Ben helps his clients plan their distributions.
[19:55] Life After Retirement – Why it’s essential to dedicate yourself to something outside your regular career after retirement and what people do wrong in their transition to retirement.
[24:01] Safe Investments – The value of making informed financial decisions to avoid investment failures.
[29:04] Final Thoughts – Tips & tricks for preparing for retirement.
Resources:
Ben’s Podcast, Retirement Starts Today Radio:
podcasts.apple.com/us/podcast/retirement-starts-today-radio/id1052378769
Ben’s Website:
retirementstartstodayradio.com
This week we're shifting our focus a bit. Today's episode is all about life insurance. Grant discusses in detail how to determine how much life insurance you need, what types of insurance you should consider, and several other aspects of having a life insurance plan. Stay tuned until the end of the episode, where he reviews some options if you realize that you have an insurance policy that you no longer need.
[01:04] Insurance & Financial Planning - Why it’s important to consider life insurance as an essential part of your financial planning.
[06:33] Life Insurance in Business Environments - Grant reviews some of the circumstances where a business may need to have life insurance for their important personnel.
[10:20] Life Insurance & Financial Independence - You only need life insurance when people depend on your income and future earnings. Grant explains how you can evaluate the benefits of having an insurance policy versus the cost of keeping it alive, once you reach financial independence.
[12:15] Determining How Much Insurance You Need - Two methods of analyzing and calculating how much life insurance you need.
[20:32] Insurance Policy Types - Grant reviews the most common types of insurance policies and key differences in the way they work.
[30:52] Laddering - A strategy of obtaining multiple life insurance policies to obtain maximum benefits with the bare minimum amount of insurance.
[34:26] Getting Rid of an Insurance Policy - How to determine whether you no longer need an insurance policy.
[37:18] 1035 Exchange - A mechanism to swap between financial products and how you can use it to your advantage when it comes to insurance.
Resources:
1035 Exchange:
https://www.irs.gov/pub/irs-drop/n-03-51.pdf
Basic Types of Life Insurance Policies:
https://www.dfs.ny.gov/consumer/cli_basic.htm
Over the last couple of months, we’ve been discussing the CARES Act and the Paycheck Protection Program in great detail. Today, we have another update related to the PPP. On June 05, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA). This act brings substantial changes to the parameters surrounding forgiveness and amortization periods. Grant is here today to review the provisions of the new law and how you can take advantage of it.
[03:21] What Led to the PPPFA – The limitations of the paycheck protection program that paved the way for this new piece of legislation.
[07:10] Provisions of the PPPFA – Grant reviews how the new act reduces the limitations of the initial paycheck protection program.
[12:55] Payroll Taxes & PPP – How the PPPFA allows you to apply for PPP loans while deferring payroll taxes.
[15:33] Business Owner Compensation – A new provision in the PPPFA that allows partnerships, sole proprietorships, and single-member LLCs to add their business owner compensation to the calculation of the loan amount.
[19:52] Amortization Period – Some of the changes made to the amortization period of PPP loans after the initial launch of the PPP.
[24:00] What Was Not in the Bill – An important part of the PPP that was a catalyst for discussions but wasn’t included in the PPPFA.
[26:08] Planning Opportunities - Grant shares his take on some of the opportunities you can use to make the best of the forgiveness program.
Resources:
Paycheck Protection Program Flexibility Act: https://www.congress.gov/116/bills/hr7010/BILLS-116hr7010eh.pdf
Download PPP Forgiveness Application: https://www.sba.gov/document/sba-form--paycheck-protection-program-loan-forgiveness-application
SBA’s PPP FAQ for Lenders & Borrowers: https://www.sba.gov/document/support--faq-lenders-borrowers
The funding level of the social security trust fund is something that’s been getting quite a bit of attention on the news recently. Since a lot of people across the country are dependant on social security benefits, there’s a lot of speculation that the increasing unemployment numbers and reduced payroll taxes are going to have a negative impact on social security benefits. Grant is here today to review some facts about the mechanism behind the social security trust fund. Toward the end of the episode, Grant shares his take on where we’re at, where we’re going and what we can do to make the situation better.
[03:46] How Social Security Works – The mechanism of the social security trust fund and how different sources contribute to the fund and the social security benefits that are available to you.
[08:49] Calculating Benefits – Grant reviews the social security administration’s method of calculating social security benefits.
[12:33] Annual Forcast – The trustees of the social security trust fund are compelled to publish an annual forecast on the status of the fund. Grant talks about what the current forecast tells us about the stability of the fund.
[16:12] The Social Security Act – The story of how the social security act was signed into law back in the 1930s and how it affected our life expectancy.
[23:52] Available Options – Grant reviews several options available to the officials to reduce the impact of COVID.
[29:15] Future Changes – Grant shares his take on how social security benefits may change in the future to minimize the impact of COVID.
Resources:
Social Security Administration: ssa.gov
A Summary of the 2020 Annual Reports - Social Security and Medicare Boards of Trustees: https://www.ssa.gov/OACT/TRSUM/index.html
Recently we have been observing that investment opportunities in the real estate market have become an area of interest for a lot of people. Grant is here today to review the current state of the real estate market and some of the things you should keep in mind if you are interested in real estate investment opportunities. Toward the end of the episode, we talk about the future of the commercial real estate industry.
[01:18] It’s a Popular Idea – What makes real estate investments attractive to investors.
[05:17] The Current State – Grant talks about an interesting conversation he had with a real estate professional. He also reviews how the current situation is different from the 2008 mortgage crisis.
[11:30] The Math of Investing in a Property – Return on investment, expenses, taxes, and other things you should take into account when you plan on investing in real estate.
[14:33] Tax Benefits – Real estate investments can give you a significant advantage in taxation. Grant explains different types of tax benefits that are specific to the real state arena and how to calculate the tax benefits on a property.
[19:14] Rent & ROI – How the rental for a property can affect the ROI over a long period.
[22:55] 1031 Exchange – How you can take advantage of the 1031 tax code to stabilize your ROI of a real estate investment.
[26:42] Commercial Real Estate – Grant shares his take on the future of the commercial real estate industry and how it will be affected by the recent trend of working remotely.
[29:03] Real Estate Investment Trust – Grant reviews two easy ways to invest in real estate, along with the pros and cons of each of them.
Resources
REIT, Real Estate Investment Trust: www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/real
Non-traded REITs: www.sec.gov/oiea/investor-alerts-bulletins/ib_nontradedreits.html
IRS Fact Sheet - 1031 Exchange: www.irs.gov/pub/irs-news/fs-08-18.pdf
Throughout the last few weeks, we talked extensively about the CARES Act and the paycheck protection program. This week, we have another exciting episode with more updates on the paycheck protection program. A few days ago, the SBA released the PPP forgiveness application. Grant is here today to talk about what numbers they’re going to use to determine whether you’re eligible for forgiveness and how much will be forgiven. Stay tuned until the end of the episode, where Grant shares some opportunities that have come up as a result of this updated guidance.
[04:33] Take Action ASAP – Why you should take a look at this application and run your numbers as soon as possible.
[07:04] Application Structure – Grant explains the components of the application.
[09:34] Non-payroll Expenses – Grant starts a detailed explanation of the application with what you should consider when you include non-payroll expenses in the application.
[12:30] Payroll – How to include payroll and payroll equivalent expenses, and tips for documenting payroll.
[16:58] Section Two – Grant reviews the second section of the application, where we determine whether the forgiveness on the listed expenses will be reduced.
[19:23] Clarifications & Options – Clarifications for some of the ambiguities surrounding full-time equivalent employees and available options for calculating full-time equivalent employees.
[24:50] Re-hiring Employees – Options for employees you have laid off.
[30:14] Planning Opportunities - Grant shares his take on some of the opportunities you can use to make the best of the forgiveness program.
Resources:
Download PPP Forgiveness Application: bit.ly/2LKHU3u
SBA’s PPP FAQ for Lenders & Borrowers: bit.ly/2ZlXTwY
The CARES act: bit.ly/39x1A47
With the recent trends in the financial markets, there’s an increasing demand for working with financial professionals. As the demand grows, we’re seeing a significant number of people who had subpar experiences working with someone who they thought was a good fit. We dedicated this episode to reviewing a few questions you can ask prospective financial advisors to make sure they are capable, qualified, and trustworthy.
Healthshare programs have been growing rapidly over the last decade, thanks in part to their low cost. In today’s episode, Grant talks about what healthshare plans are, how they’re different from a conventional health insurance plan, and what you should consider before signing up for one. Stay tuned until the end of the episode, where Grant shares some tips for deciding whether healthshare is a good option for you.
[02:20] Insurance Basics – The insurance industry is complex and heavily regulated. Grant explains the functionality of insurance and some of the reasons why it’s tightly regulated.
[06:09] What is Healthshare? – How healthshare plans work and differences between healthshare and traditional insurance plans.
[09:44] Sharing Similar Values – One of the reasons why healthshare plans are less expensive is because the members have similar values and lifestyles. Grant reviews some of these similarities and common rules you have to follow to be eligible for a healthshare plan.
[11:19] Legal Status - A healthshare plan is not a legally binding insurance contract. Grant explains the legal background of healthshare plans and what they’re legally required to cover.
[14:23] Limitations – Limitations of a healthshare plan compared to a traditional insurance plan.
[17:39] Is It a Good Option for You? – Grant shares his take on how to decide whether a healthcare plan is the right decision or not, based on your lifestyle and health conditions.
Resources:
Understanding Faith-Based Options for Health Care: oid.ok.gov
Christian Health Ministries: https://www.chministries.org/
Medi-Share: https://mychristiancare.org/
Liberty Healthshare: https://libertyhealthshare.org/
Samaritan Ministries: https://samaritanministries.org/
In the past few episodes, we asked you to leave your questions in the mailbag page of our website. We dedicated this episode to answering your questions in depth. For today’s episode, Grant covers questions about rebalancing your investment portfolio, taking advantage of small-cap value stocks, and investing in gold.
Question 01: “The markets are really volatile right now. I know that it’s important to rebalance my portfolio periodically. Given that stocks and bond values are bouncing around so much right now, is now a good time to rebalance? Or should I wait until volatility goes back down?”
[03:22] The Theory Behind Rebalancing – Why rebalancing your portfolio is important, and the process of assessing your portfolio for balance.
[07:50] ETFs and Mutual Funds – How rebalancing works differently in exchange-traded funds and mutual funds.
[12:36] Challenges – Challenging situations you might have to face when you rebalance your portfolio and tips for getting a better outcome.
Question 02: “Small-cap value is something that you’ve mentioned several times recently. Why do you think this is a good opportunity? And how would you go about taking advantage of it?”
[15:53] Value & Growth – How stocks are categorized as value and growth and characteristics of the two types of stock.
[18:27] Valuation Measures – Measures for evaluating whether a stock is expensive or cheap.
[24:53] Observations – Grant reviews what historical data tell us about the performance of growth stocks and value stocks.
[32:01] Taking Advantage of Small-cap Value – How you can adjust your investment strategy to take advantage of small-cap value stocks.
Question 03: “Is now a good time to invest in gold? Especially with the markets being so volatile.”
[33:35] Investing in Gold – The pros and cons of investing in gold and other precious metals, and why Grant won’t recommend it to clients.
Resources:
Leave Your Questions - growmoneybusiness.com/mailbag
Price-To-Earnings Ratio - bit.ly/2ShmEpu
Earnings Yield - bit.ly/3aMlCbJ
Value & Growth Stocks - bit.ly/2YlBGhI
It’s been about a week since the Paycheck Protection Program was rolled out under the CARES act. Although many provisions of this program have been materialized, there are still a few unclear areas. In today’s episode, Grant shares some more updates about the Paycheck Protection Program and the Economic Injury Disaster Loan program. Later in the episode, Grant reviews the importance of human intervention in the investment process and some recent trends in the capital markets.
[03:19] A Quick Retrospect – Grant briefly sums up what we discussed in the last couple of weeks.
[07:09] Self-employed Individuals - How the rules of the paycheck protection program apply to self-employed individuals.
[10:40] Calculations – Guidelines for calculating the number of employees and payroll costs.
[14:24] Independent Contractors – How 1099 contractors can apply for the paycheck protection program.
[16:28] EIDL Updates - Current status of the Economic Disaster Injury Loan program and things you should consider if you’re applying for both PPP and EIDL.
[20:42] Robot Advisors – How automated tools have become more common in the investment markets lately and why letting a computer algorithm take over your investment strategy may not be an ideal solution in these volatile times.
[27:31] Impact of S&P 500 Index – What happens if S&P decides not to reconstitute the index due to the volatility.
[32:45] Exchange-traded Funds – How ETFs work and differences between ETFs and mutual funds.
[45:12] The Value of Human Intervention – Why it’s important to have some sort of human intervention in your investment process.
Resources
Join the webinar on investing in a COVID-19 world: bit.ly/2ydCfzh
What is an Exchange-traded Fund - bit.ly/2Va31BN
Economic Injury Disaster Loan: bit.ly/2UQx29x
The CARES act: bit.ly/39x1A47
As the COVID-19 pandemic continues to disrupt the economy, the CARES act was signed into law with a massive economic stimulus package for businesses and individuals that are affected by the coronavirus crisis. In the previous episode, we reviewed some of the provisions of the CARES act. Today, we continue that discussion focusing on what has materialized in the last week and some more provisions of the CARES act that we missed last week.
[02:10] The Paycheck Protection Program – A brief explanation of the paycheck protection program.
[05:50] Launching the Paycheck Protection Program – Grant explains how the program will be rolled out and the reasons behind some of the recent changes made to the program.
[10:37] Practical Limitations – Grant shares his take on the drawbacks of the way the paycheck protection program is structured.
[18:33] Workarounds – Two strategies to work around the problems in the paycheck protection program.
[25:10] Another Wave of Stimulus – Grant shares his take on the possibility of another round of funding.
[26:09] Unemployment Insurance – Grant reviews how the CARES act expands unemployment insurance.
[31:21] Mandatory Distribution Holiday – The CARES act also changes the rules for mandatory distributions for qualified retirement plans. Grant explains how this provision works.
[39:43] Stimulus Cheques - The CARES act also provides provisions to cut checks to taxpaying individuals. Grant explains in detail how this works, how much money you’ll get in different scenarios, and the timeline of the program.
[43:31] Student Loans – The CARES act includes a generous offer for student loans. Grant talks about the features of this provision and who qualifies.
Resources:
Unemployment Claims Chart – The New York Times: nyti.ms/2RoeFXr
Economic Injury Disaster Loan: bit.ly/2UQx29x
The CARES act: bit.ly/39x1A47
The much anticipated Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, in an attempt to help U.S. citizens and businesses recover from the economic impact of the COVID-19 pandemic. We dedicated today’s episode to reviewing provisions of this act. Grant discusses several major features of the CARES act and what they mean for entrepreneurs and small business owners.
[02:00] Introduction – A brief overview of the CARES act and its purpose.
[05:45] Paycheck Protection Program – The CARES act offers a loan program to help small businesses with their payroll. Grant reviews the terms of this program and the process of obtaining a loan under this program.
[11:21] Forgivable Loans – For loans obtained under the paycheck protection program, certain types of expenses are forgivable. Grant explains what types of expenses are eligible for this.
[18:42] Employee Retention Credit – Grant talks about how the CARES act offers an incentive for employers to lay fewer people off.
[26:05] Payroll Tax Deferral – The CARES act has a provision that allows you to stop paying payroll taxes right now and defer them until 2021 or 2022. Grant explains how this could be beneficial to small business owners as well as self-employed people.
[29:54] Net Operating Losses – Grant reviews the tax benefits available under the CARES act when you have a net operating loss in your business.
[33:23] Checks for Individuals – The CARES act also provides provisions to cut checks to taxpaying individuals. Grant discusses the eligibility criteria for this and the amounts available in different scenarios.
[38:53] Charitable Contributions – Grant discusses what new benefits are available for charitable contributions under the CARES act.
Resources:
The CARES Act: bit.ly/39x1A47
Episode 02: An Overview of SBA lending with Joe McClure & Chris Boessenecker – bit.ly/2QCF9Eg
SBA Lending Info: bit.ly/34V0g9O
With the coronavirus pandemic disrupting more and more businesses, it has been another tough week in the financial markets. In this episode, Grant reviews what has happened in the financial markets recently, some of the available policy options, and what they could mean for you. Toward the end of the episode, Grant shares his take on where the economy is heading at the moment.
If you have specific questions you’d like us to cover, visit growmoneybusiness.com, and drop your questions in the Mailbag section. Grant will answer your questions in a future episode.
[01:44] Recent Events – Grant reviews what has happened in the financial markets last week.
[06:01] The Federal Reserve – Grant explains the Federal Reserve’s role in keeping the economy stable.
[09:15] Federal Funds Rate – The Federal Open Markets Committee recently decided to reduce the federal funds rate by a full percentage point. Grant talks about the reason behind this decision and how the federal funds rate works.
[12:44] Fiscal Stimulus – The government is planning to cut checks to U.S. adult citizens in an attempt to help people get through this crisis. Grant explains how this fiscal stimulus works.
[18:19] Loans for Small Businesses – A part of the fiscal stimulus is meant to give loans to small businesses. Grant talks about the process of obtaining these loans.
[20:57] Bailout for Airlines – Last week, Airlines for America, a trade organization for the U.S airline industry, asked the secretary of the treasury for a bailout. Grant shares his take on the controversial nature of this.
[23:02] Stock Buybacks – Grant explains what stock buybacks are, and how the airlines have been doing it for years.
[28:44] Where We Are at Now – Grant shares his take on the current status of the economy, and what we might expect in the next few weeks.
Resources:
Episode 02: An Overview of SBA lending with Joe McClure & Chris Boessenecker – bit.ly/2QCF9Eg Federal Funds Rate: bit.ly/2Utxqti Stock Buybacks: A Breakdown: bit.ly/2QEKI4K The Federal Reserve: bit.ly/2xV55nR
Since last week, the U.S. stock market has officially entered a bear market. In today’s episode, Grant shares his thoughts on making smart investment decisions in bear markets. Grant reviews how long bear markets typically last, and what we might expect in the next few weeks. Grant also discusses five savvy investment strategies you can use when markets sell off.
[02:49] Circuit breakers – Stock markets have safety measures that shut off markets if the stock markets fall rapidly. Grant explains how these measures work and how they kicked in last week.
[04:33] Bear markets – Grant covers what a bear market is and how we have arrived in bear market territory in the least amount of time in record.
[07:47] What historical data tells us – Grant reviews a chart created by J.P. Morgan Asset Management that shows annual returns vs. intra-year sell-offs since 1980.
[10:31] Long market crashes in history – Grant talks about long it has taken to recover from previous bear markets. He also covers how the current situation is different from historical bear markets. [14:36] Possibility of a recession – Grant shares his thoughts on whether this situation will escalate into a recession.
[16:17] Harvesting capital losses – Benefits you can get from investing your capital losses in your taxable investment account.
[23:20] Harvesting capital gains – How you can qualify for long term capital gain tax treatment by wisely harvesting your capital gains.
[26:27] Rebalance your portfolio – Grant explains how the value of bonds typically rises when stock values fall and how you can take advantage of it.
[29:33] Fund your accounts for the year – A bear market situation is an excellent time to contribute to a 529 account, an education account, an IRA, or a similar fund. Grant explains the reason for this and the benefits you can get from funding your accounts for the year while stock markets have fallen.
[30:53] Roth IRA conversion - Grant explains why a Roth IRA conversion can be a wise move when your stock funds are down.
Resources:
An overview of Bull & Bear Markets - bit.ly/2wZ4ocM
529 Plan - bit.ly/33nf54T
Roth IRA and Traditional IRA:bit.ly/39NrIIN
What is a recession: bit.ly/33oIdsG
Most business owners have most of their financial assets tied up in the equity of their business, which can be a dangerous approach. In today’s episode Grant reviews the importance of investing outside your business – even when it’s growing rapidly. He also talks about different tax advantaged options available and the pros & cons of each.
[02:08] The familiarity bias – Grant starts the episode explaining why it’s tempting for business owners to invest extra cash in their own businesses. [04:19] Why it’s dangerous – Grant describes, with stats from Exit Planning Institute and BizBuySell, why deploying 100% of your free cash back into your business is dangerous.
[09:50] Exit plan – The importance of having a business transition and exit plan.
[13:36] Available options – Grant talks about what options are available to invest outside your business, starting with different types of retirement plans.
[18:28] Traditional IRA – How you can invest in a traditional IRA and what taxation applies to traditional IRAs.
[24:27] Roth IRA – Grant explains the features of Roth IRAs and why he’s a huge fan of Roth IRAs.
[29:09] Other options – How SIMPLE-IRAs and SEP-IRAs work and things you should consider before getting into these options.
[37:14] The 401(k) plan – Grant discusses qualified retirement plans & 401(k) plans.
[42:00] Working with a financial adviser – Grant describes the process of working with a financial advisor to set up a retirement plan & how he works with clients at Three Oaks Capital.
[46:12] Final thoughts – Grant sums up reasons to invest outside your business and the benefits from doing so.
Resources: BizBuySell 2019 Insight Report: bit.ly/2Tw63PU Exit Planning Institute: exit-planning-institute.org Exit Planning Institute Key Takeaways: bit.ly/32Ytch5
SIMPLE IRA: bit.ly/3cIHarS SEP-IRA: bit.ly/2vDwY3f Roth IRA: bit.ly/39NrIIN 401(K) Plan: bit.ly/2TMCwQV
With Coronavirus cases being reported in 56 countries in six of the seven continents, it has created a global concern about its health impact as well as the economic impact. Today we talk about how the Coronavirus outbreak might impact your portfolio and how we should react as investors. Grant also talks about studies by Charles Schwab and Vanguard on market timing, and how they relate to markets now.
[00:41] A quick look at the situation – Some quick facts and stats about the outbreak and its effects on the stock markets.
[04:58] Don’t panic! – Grant explains, with numbers from similar previous incidents, why you should not panic even if it sounds scary.
[06:22] It doesn’t matter when you’re in the market; it matters that you’re in the market – Grant talks about two interesting studies done by Charles Schwab and Vanguard that shows us how timing comes into play when investing.
[13.18] Dividends and interests – Grant explains why you should invest and take advantage of dividends and interests rather than waiting for the perfect moment to invest.
[14:47] Going through market drawbacks – How to avoid poor decision making in a time of crisis and holding on till the market bounces back.
[17:52] Contingency planning – Grant talks about planning for worst-case scenarios.
[21:55] Final thoughts – Grant explains why you should keep a consistent investment methodology in times like this and how all the empirical data points to the fact that you should remain invested and take advantage of dividends and interest.
Resources: Charles Schwab’s Study on Timing the Market: bit.ly/2TxAVy5 List of stock market corrections after WW2: cnb.cx/2VCVyvB