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Brian Skrobonja breaks down two retirement curveballs that most people don’t see coming until it’s too late. He covers how your Social Security decisions can make or break your retirement, and what really happens to your income when your spouse passes away. From the math behind claiming early versus waiting, to the hidden tax traps that arise when one spouse passes away, this episode walks you through the real-life scenarios that can make or break your retirement plan.

• Brian starts by introducing Joe and Jane, a blend of real-life clients whose story brings clarity on the right way to claim Social Security and what happens to your income when a spouse passes away.
• He highlights how to understand the impact of Social Security and the math behind what you keep and what you lose.
• Brian explains how Social Security isn’t just about retirement timing. It’s about your income, your long-term tax exposure, and your ability to stay financially independent.
• You’ve worked your whole life to earn these benefits, you shouldn't allow the tax man to take more than necessary just because of bad timing or misinformation.
• Why is retirement planning so important? For married couples like Joe and Jane, the right decision on when to claim benefits can be a six-figure decision.
• According to Brian, filing before full retirement age means you accept a permanent reduction in your benefit.
• For example, if Joe starts drawing Social Security at 65 and Jane at 62, Joe's full retirement benefit is $3,000 a month, and Jane just $2,000 a month.
• But since they’re drawing before their full retirement age, there’s a permanent reduction. Joe gets $2,600 a month and Jane gets $1,400 a month. That's $1,400 a month total. Multiply that across 25 years and you land at about 1.2 million in lifetime benefits.
• Brian walks through a smarter path—Joe waits until 70, Jane until 67. With this strategy, Joe’s benefit increases substantially thanks to delayed credits, while Jane locks in her full amount. The result is $5,720 per month and a total retirement income that’s $172,000 higher than the early-filing option.
• If they both wait until age 70, their monthly income jumps to $6,200—and over the same 25-year period, that choice results in $1.398 million in total benefits. That’s nearly $200,000 more than the “default” approach.
• Why does this matter so much? Because those additional dollars don’t just boost your lifestyle, they can help protect your surviving spouse, increase your flexibility later in life, and reduce your reliance on investment withdrawals.
• Every strategy has trade-offs. Waiting requires income from other sources, which means you need a plan in place. But if you can do it, the long-term gain is not just higher monthly income, it’s peace of mind that you’ve made a decision that protects both you and your spouse for life.
• Brian highlights how the survivor benefit is a critical retirement planning piece that many people overlook.
• Brian explains how Social Security doesn’t have to be a guessing game and how you can use it to design a retirement plan with confidence.
• Most people think retirement planning ends when you start withdrawing income from your accounts, but Brian believes that’s actually where the real planning begins.
• He explains why it’s not just about having enough money. It’s about how that money behaves in retirement, how it stretches, how it responds to market shifts, and how it continues to support you when something unexpected happens.
• Brian shows how lower income in retirement can sometimes lead to higher effective tax rates—especially when you factor in things like Social Security taxation and Medicare surcharges.
• Filing status changes everything when one spouse passes away. The surviving spouse becomes a single filer, which means half the standard deduction and compressed tax brackets. Even with a smaller income, they could end up paying significantly more in taxes.
• Learn how Joe and Jane's provisional income pushed them into the 85% tax zone for Social Security. With IRA withdrawals and benefits combined, their adjusted gross income hit nearly $83,000. After the standard deduction, their taxable income was just under $53,000—enough to land them in the 12% bracket and trigger nearly $6,000 in federal tax.
• Brian emphasizes why tax planning isn’t optional. You can run all the retirement projections in the world, but if you’re not planning for survivorship and changing tax dynamics, you’re only seeing half the picture.
• This is where strategies like Roth conversions come in. By converting part of your IRA while both spouses are still alive—and still filing jointly—you can lock in today’s low rates. Later, the surviving spouse benefits from a source of income that’s entirely tax-free.
• The cost of losing a spouse isn’t just emotional—it’s financial. And it often happens at the exact moment when a household is least equipped to absorb the hit. Without a plan, what should have been a smooth transition can become a financial scramble.
• One way to fill the gap is life insurance. A properly designed policy can deliver a tax-free lump sum that replaces lost income and offsets new tax liabilities.
• Brian encourages couples to model survivor income today. Waiting until someone passes away to find out what’s left is a mistake. Knowing what the future looks like allows you to prepare now and avoid painful surprises later.
• He explains why your retirement plan can’t rely on assumptions. It needs to function even when life doesn’t go as planned. The goal is not just to survive retirement—but to do it with confidence, clarity, and control.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits.

Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested.

Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets.

BUILD Banking™ is a DBA of Skrobonja Insurance Services, LLC. Benefits and guarantees are based on the claims paying ability of the insurance company. Not FDIC insured. Results may vary.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC.

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.

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Are you part of that 68% of people who would like to have a personalized financial plan, but aren’t sure where to find a financial advisor?

What should you pay attention to when trying to get a financial planning expert to help you, and you’re evaluating different options?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja shares six factors you should keep into consideration and look at when going through different financial advisor options.

• According to a May 2022 PR Newswire survey, 68% of people would like to have a personalized financial plan, but they’re not sure where to find a financial advisor.
• Brian sees information-gathering and understanding that planning isn’t the same as investing are the biggest mental hurdles of financial planning.
• When it comes to picking a financial advisor, there are six primary factors Brian suggests looking at.
• A 2022 study found that 80-90% of advisors fail in the first three years of practice – the main reason being the steep learning curve involved in serving clients.
• 10 years is the minimum that Brian would look for in terms of experience a financial advisor has.
• Brian discusses the different designations a financial advisor might have.
• Brian touches upon the importance of whether a financial advisor owns the company and the range of services they offer.

Mentioned in this episode:

BrianSkrobonja.com

Dan Sullivan

Chat GPT

FINRA

The Financial Fiduciary Standard Explained (2021 Kipliger article by Brian)

Reference for this episode:

https://www.prnewswire.com/news-releases/nearly-3-in-5-americans-59-want-financial-advice-but-are-not-sure-where-to-get-it-according-to-intelliflo-survey-301494402.html

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Past performance is no guarantee of future returns. Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This video is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. Our firm is not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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You feel healthy so everything is okay, right? Have you ever thought that health planning should be part of your retirement planning efforts?

If you’ve answered ‘yes,’ pay close attention to Regan Archibald!

Regan joins host Brian Skrobonja to discuss how people should approach health planning, the world of preventive care, the role of nutrition, and why longevity medicine is something you should be mindful of.

• Regan Archibald kicks off the conversation by sharing his origin story.
• In his work with entrepreneurs, Regan has found that when people focus on creating more balance and focus on their health, their business improves – and so does everything else.
• One of the major health issues both Regan and Brian have noticed is that many people think that if they feel okay, everything is okay…
• Regan stresses the importance not only to focus on a certain problem (like high blood pressure) but on trying to understand its cause (so, asking “Why is my blood pressure high?”).
• Regan illustrates how longevity medicine and financial planning share some of the same characteristics.
• “Peptides have been one of the most exciting developments,” says Regan. He explains why that’s the case.
• Regan believes that people should approach their health insurance the same way they approach their car insurance.
• What’s a good amount to budget toward health planning? For Regan, the answer to that is $15k/year.
• For Regan, making your health the #1 priority so that you feel it internally, is an excellent way to get started with health planning.
• Brian and Regan talk about what working with Regan actually looks like, and discuss diets and how to approach nutrition.

Mentioned in this episode:

BrianSkrobonja.com

ThePeptideExpert.com

Unreasonable Health Podcast

The Peptide Blueprint: Achieving Optimal Health and Performance at Any Age

Never Stop Healing: The Unknown Shortcuts With Peptides for an Extraordinary Life

EastWest Health

Dan Sullivan

Peter Diamandis

Bryan Johnson

Charles Schwab

Head Strong: The Bulletproof Plan to Activate Untapped Brain Energy to Work Smarter and Think Faster by Dave Asprey

Chat GPT

Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, MAS and Regan Archibald are not affiliated entities. NO compensation has been exchanged between Brian Skrobonja and Regan Archibald.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this milestone 100th episode of the Common Sense Financial Podcast, host Brian Skrobonja delves into the critical topic of managing taxes in retirement. The episode focuses on strategies for minimizing tax liabilities, especially for retirees with tax-deferred accounts facing potential hefty tax bills.

Brian emphasizes the importance of sustainable income creation during retirement and the role of tax optimization in this process.

• Most people envision their retirement to be built from predominantly tax-free income, but after many years of deferring taxes, retirees are facing a sizable tax bill on distributions taken from their retirement accounts that could be a third or more of what has been accumulated.
• When you’re saving for retirement, growth of your assets is the priority. But many people don’t realize that once they retire that’s no longer true. The priority is actually creating sustainable income to support you through retirement while minimizing taxes.
• A common issue I’ve seen is future retirees knowing they will owe taxes on their deferred accounts, but not realizing the extent of the problem since the rules change once they retire.
• Many retirees we work with tend to have the same income goals in retirement, yet with fewer deductions. They no longer have children or mortgage interest to help them offset their tax burdens, which makes the situation more complex.
• Delaying distributions isn’t an option either. Required Minimum Distributions will eventually force your hand.
• There are two tax problems facing retirees: taxes you will have to contend with today, and taxes that you will have to contend with in the future.
• With the national deficit continuing to rise, do you expect tax rates to go down in the future or go up? The most likely answer is that tax rates are on the rise, so we should be planning accordingly.
• There are two possibilities to help minimize the level at which you participate in paying your fair share towards the government's future revenue increases. You can either complete a Roth conversion or through tax deferred withdrawals contribute to an overfunded permanent life insurance policy.
• Making the decision of which strategy to implement is the easy part. The trick really is completing this process with minimal tax liabilities, which requires specialized knowledge.
• The progressive nature of the code makes understanding your tax burden complicated and miscalculating this could result in having a larger tax liability than anticipated.
• Depending on your income level, a taxable distribution can subject your Social Security to additional taxes. This is a separate calculation from the income tax brackets and uses a two step process to determine how much of your social security will be subject to taxation.
• This is important to know because a taxable distribution may not only push you into a higher income tax bracket, but it could trigger additional taxes on your social security, which could result in a higher effective rate.
• You should also be aware of the impact a taxable distribution can have on Medicare premiums. The impact of any possible premium increase is typically delayed by two years. This is one of those things that often comes as a surprise when people make decisions about distributions.
• The antidote to taxable income is deductions, credits and losses which can help reduce the net income subject to tax. There are a few options that can help offset the burden of taxes and make the transition from tax-deferred to tax-free easier, but they don’t work for everyone, which is why we recommend working with a professional.
• The first thing is a donor advised fund or DAF. This allows you to contribute future charitable donations into a fund that you control when distributions are made that can also receive the tax benefit of the donation in the year you make the contribution into the fund. By making multiple years of donations in a single year into that fund, you have the potential of helping offset a taxable distribution from your retirement account in that year.
• The second is a Charitable Remainder Trust (CRT), where you can contribute future charitable donations into the trust and receive the tax benefit of the donation in the year you make the contribution. You can also receive income from the trust while you're living within IRS limits. A CRT is a more complex arrangement than a DAF with many options and requires an attorney to draft the trust.
• The third is a qualified charitable donation or QCD, which allows for anyone over the age of 70 and a half to make a direct donation from a qualified account to a charity.
• The fourth is something known as IDCs, or intangible drilling costs, which allows accredited investors to participate in the drilling expenses of an oil and gas company that could provide reportable tax losses that can help offset all forms of income, as well as the potential for cash flow back to the investor once the wells are operational.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Brian's article - From Tax-Deferred to Tax-Free: Navigating Taxes in Retirement

References for this episode:

https://www.usdebtclock.org/

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024

https://www.ssa.gov/benefits/retirement/planner/taxes.html

https://www.ssa.gov/benefits/medicare/medicare-premiums.html#anchor5

https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions

https://www.irs.gov/charities-non-profits/charitable-remainder-trusts

https://www.irs.gov/newsroom/qualified-charitable-distributions-allow-eligible-ira-owners-up-to-100000-in-tax-free-gifts-to-charity

https://www.investopedia.com/terms/i/intangible-drilling-costs.asp

https://www.crfb.org/blogs/tax-break-down-intangible-drilling-costs

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

A ROTH Conversion is a taxable event. Consult your tax advisor regarding your situation.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

Donor Advised Funds represent an irrevocable gift of assets from the donor to the fund. Contributions made to the fund are irrevocable and cannot be returned or used for any other individual or used for any purpose other than grant making to charities. The gift is not an investment or a security. When evaluating a contribution to the fund, carefully consider the terms and conditions, limitations, charges, and expenses. Depending on the tax filing status, DAF contributions may or may not be tax deductible.

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Brian Skrobonja breaks down 11 small business tax tips that could help you keep more of what you earn. He explains how the wealthy leverage these strategies, ways to apply them to your own business, and how being proactive now can save you thousands down the road. Tune in to discover practical steps you can take today to reduce your tax burden, boost your bottom line, and build long-term financial security.

• Brian starts by revealing how the tax code can be used as a tool to build wealth.
• According to Brian, the difference between the wealthy and the average American is that the wealthy are more informed about tax-saving strategies.
• Unfortunately, many business owners treat taxes like a once-a-year nuisance. They write a check and move on.
• For Brian, taxes are a bigger expense than rent and payroll--and being informed can mean hundreds of thousands of dollars in your pocket over time.

• 1 The R&D Tax Credit. Brian explains how this overlooked credit isn’t just for tech businesses in Silicon Valley — if you’re improving a product, process, or even internal software, you might qualify.

• 2 The Augusta Rule. Brian reveals how you can rent your own home to your business for up to 14 days a year and not pay a dime in taxes on that income.

• 3 De Minimis Safe Harbor. Brian shares how to write off things like laptops, chairs, and tools right now instead of dragging those deductions out for years.

• 4 Qualified Business Income Deduction (QBI). Brian highlights how small business owners operating through a pass-through entity like an S-Corp or LLC can deduct up to 20% of their qualified business income.

• 5 Bonus Depreciation. Brian explains how business owners can immediately deduct a significant percentage of the cost of qualifying property like machinery, vehicles, furniture, and computer equipment, in the year it's placed into service, rather than spreading the deduction over years through traditional depreciation.

• 6 Intangible Drilling Costs (IDCs). Business owners in oil and gas can deduct up to 100% of certain drilling expenses upfront, regardless of whether the well is productive.

• 7 Cost Segregation for Real Estate. Brian breaks down how, for commercial property owners, this strategy is a highly effective tool to accelerate depreciation and create early tax savings.

• Instead of depreciating an entire building over the standard 39-year life for commercial real estate, a cost segregation study identifies and reclassifies specific building components, such as HVAC systems, that could be depreciated over a five to 15-year period.

• 8 Market Value Adjustments for Roth Conversion. Brian explains how doing a Roth conversion when asset values are low can lock in long-term tax-free growth, especially if it’s inside a traditional IRA.

• 9 Build Banking. Brian shares ways to use specially designed whole life policies to create your own private banking system so you can grow wealth tax-deferred and access it tax-free.

• 10 1031 Like-Kind Exchange. Brian shows how real estate investors can defer capital gains by rolling proceeds into another similar investment without paying taxes.

• 11 Opportunity Zones. Reinvesting gains into a qualified opportunity fund can help you defer, and possibly erase, capital gains taxes altogether.

• Brian believes business owners should act fast to take advantage of the tax code. The tax code doesn't reward procrastination. Every day you wait is money left on the table.
• Before implementing any of these strategies, always consult your CPA to make sure the structure is appropriate for your business situation.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits.

Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested.

Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets.

BUILD Banking™ is a DBA of Skrobonja Insurance Services, LLC. Benefits and guarantees are based on the claims paying ability of the insurance company. Not FDIC insured. Results may vary.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC.

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.

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Life when you’re gone… an uncomfortable conversation most people prefer to avoid.

Why isn’t that a good idea? How can estate planning help you ensure that things are taken care of once you aren’t around anymore?

Listen to learn about big mistakes people make, the different elements that make up the estate plan puzzle, the three primary areas of cash flow, and the type of plan you should have in place.

• When it comes to end of life financial planning, many people tend to put it off because it’s an uncomfortable conversation to have.
• Even though the process for end of life planning is relatively simple in nature, Brian recommends getting professional help to deal with the details, which can be complex.
• Despite every situation being different, there are several core aspects of estate planning that everyone should consider.
• The first has to do with title and legal work. Brian has noticed that many people have a complete misunderstanding of the role legal work plays within their planning.
• Then, there’s life insurance. Many households rely on two incomes – or people – contributing to the family’s ecosystem.
• Their contribution to the family must be replaced when they’re gone, and that’s where life insurance comes into play.
• Another important, but often overlooked, aspect to an estate plan is budgets and cash flow. Brian doesn’t recommend planning in terms of weeks or months for it… rather, to plan in terms of years.
• “Your cash flow can be broken down into three primary areas,” says Brian. “Reoccurring obligations, irregular obligations, and savings.”
• Debts and investments are an additional area that makes up the estate plan puzzle.
• Brian stresses the importance of cash flow and shares a couple of examples that illustrate its key role.
• End of life planning is a difficult topic to address. Brian’s suggestion is to take steps to protect your loved ones by creating a custom comprehensive plan with the help of professionals.
• After that, the next step is to communicate the plan with your partner and family members – then, enjoy the peace of mind that comes along with knowing you have done everything in your power to provide for your loved ones.

Mentioned in this episode:

BrianSkrobonja.com

Estate Planning Checklist

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Did you know that a good part of American households haven’t thought about retirement planning?

When it comes to planning for retirement, there are some key concepts to understand and three traps you should do your best to avoid.

Listen to learn why a money increase doesn’t always equal a lifestyle enhancement, the three things people often look at but that come back to bite them later on, and how you can effectively plan for retirement and protect your money.

• As life expectancy increases, people will be finding themselves needing to save more money for retirement.
• Brian believes that it’s going to be possible to be retired for as many years as one has worked, because people are living longer than ever before.
• According to a 2019 retirement confidence survey by the Employee Benefit Research Institute, more than half of American households are at risk of running out of money in retirement due to the lack of savings and the unpredictability of the stock market.
• If you look back and think about how much money you were making when you first started working and compare it to today, you should see an increase.
• However, more than a lifestyle enhancement, the increase is just an inflation adjustment. And the crazy thing is that only 42% of Americans have tried to calculate how much money they will need for retirement!
• Brian has noticed that many people go into retirement because of eligibility, without having actually calculated how much money they would need – this is a problem, especially because of three things that are outside of their control: inflation, markets, and taxes.
• To offset inflation, you need to earn more on your money than the inflation rate that is eroding your purchasing power.
• Want to protect yourself from market losses? Then, you either need to not be in the market or work to insulate your portfolio through diversification strategies that are challenging for most people to leverage.
• As far as taxes are concerned, the best way to tackle them would be to focus on building tax-free assets and stop the propensity to kick the “tax can” down the road.
• Even though these may sound like obvious moves, Brian has seen people do the opposite – with things like funding their 401k accounts, parking money in the bank, or pouring it into the stock market.
• Brian warns against tapping into the stock market as a means to draw income because it’s the Government and Wall Street that have control over it, not you.
• There’s a key difference that some people tend to forget when it comes to retirement planning: accumulating money is done one way, drawing income for retirement is done another way.
• Brian stresses the importance of not taking retirement planning lightly.
• Remember: underestimating the amount of money needed to maintain a comfortable lifestyle in retirement, or relying on too many things outside of your control can be a significant financial risk.

Mentioned in this episode:

BrianSkrobonja.com

BrianSkrobonja.com/FamilyOfficeQuiz

Center for Disease Control

Pew Research Center

Employee Benefit Research Institute

Susan Powter

Chat GPT

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clientsor prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Our firm is not permitted to offer and no statement made during this podcast shall constitute tax or legal advice.

Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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Emergencies and retirement. This is what we're taught to save for. But what if you created a different system, which allowed you to pay for the expenses you will incur between now and retirement age – without losing the ability to build wealth?

Find out why you may need to rethink your financial planning approach and what you should do about the “Missing Middle.”

• According to popular opinion, sound financial planning advice typically consists of two main steps: saving for emergencies and saving for retirement.
• Brian found this to be slightly misleading because of the phenomenon he refers to as “The Missing Middle.”
• Think about how life generally goes: there are car payments, furniture, credit cards, tuition… you also have money going into an account that you can’t touch until you’re 60 and then, before you know it, you have thousands of dollars of debt. And that’s by following general advice.
• However, opting for a less traditional and more customized approach allows you to pay for the expenses you incur between now and retirement – the middle of your life, without entirely losing the ability to build wealth.
• Brian believes that the real benchmark you’re going to use should be based on your personal needs, goals, and financial situation.
• When there are big expenses people don’t account for in their regular cash flow, one of two things happens.
• People either continually deplete savings in order to pay for the things in cash (constantly funneling money back into their bank account to replenish the emergency fund).
• Alternatively, they finance everything with bank loans and credit cards. Neither option leads to wealth being created.
• Brian is convinced that you should model your entire financial life around your actual life, instead of around arbitrary concepts or ideas that don’t fit into the puzzle of what you’re actually trying to create (Brian calls this Your Life Cycle Model).
• In the Life Cycle Model individuals allocate resources over their lifetime with the aim of avoiding sharp changes in their standard of living, while avoiding debt and simultaneously building wealth.
• Brian explains how using the so-called build banking instead of a traditional bank can help you leverage the Life Cycle Model (and why you shouldn’t compare it to the stock market).
• People tend to separate their money into two buckets: saving and spending. Brian explains why that may not be the best of approaches – and what to do instead.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

How Long Will My Money Last in Retirement

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Brian Skrobonja talks about the true meaning of purpose in retirement. He shares why aligning your financial strategy with your life’s purpose is key to a fulfilling retirement and how purpose, not just money, impacts your longevity and satisfaction. Tune in to discover practical insights on creating a retirement plan that empowers you to live with confidence, clarity, and meaning.

• Brian starts by explaining why the modern approach to retirement is wrong.
• Retirement isn’t about reaching a final stop. It's about transitioning—and if we don’t plan that transition right, what starts as a dream can easily become a nightmare.
• Brian talks about the loss of purpose and explains how, for many, retirement isn’t just about leaving a job; it's the loss of purpose, too.
• According to Brian, the big problem with most retirees is that they retire financially ready but emotionally unprepared. They focus on leaving the job behind but forget to plan for what’s next.
• Brian shares an analogy: retirement is like halftime in a game. If you retire at 60 and live until 100, you're just getting to the halfway point.
• The first half of life is all about building your career. The second half is about finding purpose, making an impact, and creating a new legacy. However, this only works if you stop seeing retirement as an "escape" and start seeing it as a fresh start.
• The question to ask instead of “When can I retire?” Brian urges a mindset shift: instead of asking when you can retire, ask, what’s in store for me in this next phase of life?
• How retirement without a purpose can lead to unexpected struggles.
• Brian reveals what happens when people retire without purpose.
• At first, it’s all fun—sleeping in, golfing, traveling, but eventually, that excitement fades. The days blur together, and with them, the feeling of purpose begins to fade, too. Studies show that 28% of retirees experience depression, often due to this loss of direction.
• Brian explains why purpose isn’t just good for your soul, it’s the key to living longer.
• Brian stresses that your purpose needs financial backing. A strong purpose without funding is like a car without gas—it won’t get you far.
• Brian explains that without clarity on what you want retirement to look like, all the money in the world will be useless. A fulfilling retirement is not just about the financials—it’s about how your money can empower you to live a purposeful life.
• How to plan for retirement in a way that actually works. Brian reveals why traditional retirement planning falls short. It’s not just about accumulating wealth for the future—it’s about adjusting your mindset for the next phase of life.
• Brian highlights the biggest challenge many retirees face: moving from a growth-only mindset to an income-first approach.
• According to Brian, planning shouldn’t begin with the numbers. It should begin with YOU—your values and your purpose. When your financial strategy aligns with your purpose, that’s when you start creating the legacy you’ve always dreamed of.
• Brian on legacy: Stop stressing too much about the money you leave behind. Focus more on the lessons you teach, the values you model, and the inspiration you provide while you’re still here.
• Brian explains that estate planning is important, but it’s not enough. It secures your assets and legal wishes, but it doesn’t pass on your values. It doesn’t prepare your family emotionally or relationally for the responsibility they’ll inherit. To create a lasting legacy, you need intentional generational planning.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

References for this episode:

https://www.publichealth.columbia.edu/news/volunteering-may-reduce-odds-older-adult-depression#:~:text=Marked%20variation%20in%20the%20prevalence,43%20percent%20rate%20of%20decline

https://pmc.ncbi.nlm.nih.gov/articles/PMC6632139/#:~:text=Of%206985%20individuals%20included%20in,hazard

https://www.forbes.com/sites/forbes-shook/2023/08/24/dont-risk-it-all-areas-of-focus-for-high-net-worth-families

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Our firm is not endorsed by or affiliated with any government agency.

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What comes to mind when you think about retiring? Is it enjoying your "golden years?"

That's an outdated approach, says today's guest Dean Jackson!

He joins host Brian Skrobonja to discuss a new way to think about retirement – and how doing things this way will change your life – the concept of "pre-tiring," two types of economy, and what "money hobby" and self-managing companies are all about.

• The idea of the conversation with Dean came to Brian as the result of conversations he has been having with clients, plus the increased longevity and the outdated models that are still presented as the tools to approach retirement planning.
• From an early age, Dean realized the difference between what Dan Sullivan calls the time & effort economy, and the results economy.
• In the first type of economy. you get paid a fixed amount for your time and effort, whereas in the latter. you’re paid by the results you create.
• Dean has been “pre-tiring” since 1999, splitting his time between Canada and Florida.
• For Dean, trying to define what success means to you and what your ideal lifestyle looks like are key aspects to reflect on.
• Society has been structured in a way where people worked with an eye on retirement, where they would spend their golden years. Now, things have changed.
• As Dean points out, there are billions of definitions of what "a perfect life" looks like, and "everyone’s in possession of what could be a perfect life in their definition."
• The key is filling the blank, using your own situation and words, in regards to the sentence "I know I’ll be successful when ____."
• Rehearsing for retirement is one of the things Brian has been helping clients with. Retirement is a transition, so being prepared for it is crucial.
• Dean believes that one of the important steps to take to prepare for the transition into retirement is what he calls "money hobby."
• Find something you’re truly passionate about and look at whether you can turn it into some kind of business, like the Ryan’s Toys YouTube channel, for example.
• Brian thinks that retirement isn’t an age but a mindset. You can retire at 65 or at 35 if you have the right mindset and path to run down to create passive income.
• Citing Dan Sullivan’s ideas and work, Dean and Brian touch upon the whole idea of life extender and making your future bigger than your past.
• For Dean, it isn’t about how to do something but who can get something done for your company.
• You should decide whether you want to find a who that can help you with a specific thing – you can then turn into a business – or become that who yourself, for someone else’s business, and do the what you really love.
• Dean talks about the so-called eight profit activators, a blueprint that’s universally applicable to all businesses. It’s about looking for opportunities to activate profits in any of the eight areas.

Mentioned in this episode:

BrianSkrobonja.com

Previous episode - Retirement is Not an Age

DeanJackson.com

Dan Sullivan - StrategicCoach.com/our-team/#/people/dan-sullivan

Tony Robbins’ New Money Master program

Thomas Leonard

Shopify.com

Ryan’s World on YouTube

Chat GPT

Brian, Dean Jackson and MAS are not affiliated entities.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this podcast episode, Brian Skrobonja takes us on a thought-provoking journey through the evolving concept of retirement. As we dive into the past, present, and future of retirement, Brian helps us unravel the complexities of this modern-day concept which, though deeply ingrained in our society, is relatively new in human history.

This episode is essential for anyone planning for retirement, offering a fresh perspective on how to approach this significant life stage in the context of rapid societal shifts, economic developments, and increasing human longevity.

• We start off by exploring the concept of retirement and its transformation from ancient societies to the modern era.
• The Industrial Revolution marked a significant shift from agrarian societies to industrial ones, influencing how people viewed work and retirement. It even shaped the way that families and communities lived together.
• The change in how work was done over the centuries resulted in the creation of a retirement system based on pensions, which was the precursor to modern-day retirement benefits.
• In the 1900’s, Social Security was introduced which shifted the responsibility from families and communities onto the government.
• In a relatively short period of time, the concept of retirement has changed drastically, and the pace of change is continuing to accelerate. Based on the way technology and healthcare are developing, it’s very likely that retirement will look very different in the future as well.
• As the Baby Boomer generation progresses toward retirement, it will put tremendous strain on programs like Social Security and Medicare due to a considerably lower worker-to-retiree ratio than ever before in history.
• The programs and retirement paradigm will change, similar to the way that pensions underwent change. Pensions used to be the default vehicle for retirement but have become scarce and relegated, mainly for those with government jobs.
• According to the Social Security Administration, benefits are projected to run negative by 2033. And according to the Congressional Budget Office, the national debt is projected to reach $52 trillion in 2033.
• Life expectancy also continues to rise, which puts pressure on the current retirement paradigm from another angle. With new breakthroughs in human longevity, the concept of retirement will have to adapt.
• Retirement was once considered a necessary transition when a person was no longer productive in their work and had a short life expectancy once retired. Today, people retire when they're still fully capable of working. That reality is widening the chasm between the number of workers and retirees, as well as the financial resources needed to sustain retirement for longer periods of time.
• Retirement needs to be redefined, since the reality of shorter lifespans is no longer the case for most people.
• There are three factors that contribute to success in retirement.
• The first is contribution. The longer you contribute, the better. Perhaps redefining expectations after the age of 60 and looking toward a second half of life with a meaningful career or business may be called for.
• The second is prevention. The longer your retirement is, the more risks are amplified and can have a significant impact. Finding ways to move things into your control helps prevent unforeseen problems that put your retirement at risk. Examples of this include: insurance, annuities, and tax-free investments.
• The third is delegation. Retirement planning is a team sport. You can delegate the heavy lifting of a retirement plan to financial advisors, attorneys, insurance agents and CPAs and then use that collective wisdom to implement the actual plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

References for this episode:

https://www.washingtonpost.com/technology/interactive/2023/aging-america-retirees-workforce-economy/

https://www.ssa.gov/OACT/TRSUM/index.html

https://www.cbo.gov/publication/58946

https://www.econlib.org/library/Enc/IndustrialRevolutionandtheStandardofLiving.html#:~:text=On%20the%20other%20hand%2C%20according,come%2C%20it%20was%20nevertheless%20substantial

https://www.ssa.gov/history/lifeexpect.html#:~:text=Life%20expectancy%20at%20birth%20in,and%20paid%20into%20Social%20Security

https://www.macrotrends.net/countries/USA/united-states/life-expectancy#:~:text=The%20current%20life%20expectancy%20for,a%200.08%25%20increase%20from%202020

https://www.diamandis.com/blog/mark-hyman

https://www.kiplinger.com/taxes/what-to-do-before-tax-cuts-and-jobs-act-tcja-provisions-sunset

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Our firm is not affiliated with or endorsed by any government agency.

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You can live without saving money, and you can live with debt, but you cannot live without cash flow. In fact, if you want your personal finance to flourish, cash flow is a key element you need to focus on – passive income too. Why is that the case?

Find out about critical personal financing missteps you should avoid making, what to focus on to measure financial progress and happiness, and the key traits you can learn from the happiest and most successful people to win more in personal finance.

• Just like many other areas of life, personal finance too is dependent on your own tank both from a mental, physical, and resources standpoint.
• Trying to do too much with their resources is one of the most common personal finance missteps people make.
• There’s a tendency of segregating financial goals into silos and of gravitating towards what looks easiest over what is often best – which typically leads to personal finance goals not being achieved.
• Brian believes that the key to maximizing your capabilities should be on building resources, and then creating cash flow from them to fund everything else.
• Passive income plays a crucial role in that it fills your income gap, allowing you to free up your time.
• Brian sees people often getting caught up in their silos and finding themselves beholden to their system of working to spend.
• It’s possible to live without saving money, and with debt, but it’s impossible to live without cash flow.
• How do you measure financial progress? To identify what makes them happy, people often go beyond financial aspects and look at things such as family, friends, faith, fitness, and free time.
• Once you have this aspect figured out, you can either do everything by yourself – with all the risks that this approach entails – or you can delegate.
• In The 7 Habits of Highly Effective People, Stephen Covey explains that the happiest and most successful people have figured out how to buy more time by relying on professionals with the knowledge and experience to help them manage their relationships, health, time, and money.
• Tom Rath, author of Stengths Finder 2.0, has found that successful people tend to leverage strengths and delegate weaknesses. They spend their time on things they’re good at and want to spend their time on, and they delegate the tasks they can gain more time from by not doing them.

Mentioned in this episode:

BrianSkrobonja.com

BrianSkrobonja.com/FamilyOfficeQuiz

Chat GPT

The 7 Habits of Highly Effective People by Stephen Covey

Strengths Finder 2.0 by Tom Rath

This is a replay of "In Financial Planning, Consider Your ‘Fuel Tank of Capability’"

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Brian Skrobonja answers some of the most frequently asked questions about finances and investing.

He covers how successful people approach liquidity, why traditional emergency funds may not be the best strategy, and how to store money with a purpose. Tune in to hear him challenge common financial myths, share smarter wealth-building strategies, and explain what financial freedom really means—so you can take control of your money with confidence.

• Brian starts by explaining what passive income is and where most people go wrong with it.
• True passive income comes from creating multiple, diversified revenue streams that go beyond just the stock market.
• How to build passive income the right way. Most people think diversification means investing in different stocks, but according to Brian, the real key is expanding within your area of expertise.
• The biggest mistake entrepreneurs make with passive income—Chasing too many unrelated ventures in the name of diversification can spread you too thin. Brian explains why focusing on one business and layering on multiple revenue streams is the key to long-term success.
• Brian explains why “saving money” isn’t the best strategy for wealth building. Instead of just setting aside cash, Brian talks about the concept of “storing money with a purpose.” Where you put your money determines its ability to grow while staying liquid for when you need it.
• The right way to think about emergency funds.
• Brian explains why keeping a massive amount of idle cash in a bank account doesn’t make sense. Most financial emergencies—car accidents, home repairs, and health issues are already covered by insurance.
• How much cash should you actually keep in the bank? Brian suggests a practical number that balances liquidity with growth. He explains why keeping too much cash sitting in a low-interest account can hurt your wealth-building potential.
• Learn how financially successful people approach liquidity.
• Do you really need to retire?—For high achievers, retirement can feel more like an identity crisis than a reward. Brian shares why many entrepreneurs find full retirement unsettling and how to rethink the concept of financial independence.
• Should you pay off your mortgage early? Not all debt is bad, and eliminating a mortgage doesn’t necessarily increase your wealth.
• Brian explains the difference between investment debt and consumption debt and why strategic debt management is key.
• Brian reveals ways to tell if your debt is working for you or against you.
• How to commit to saving as a business owner, even with unpredictable income. Brian shares two key strategies: maintaining an abundance mindset and knowing your numbers. Without these, saving will always feel impossible.
• The difference between making money and building wealth.
• Why traditional financial advice doesn’t always apply to entrepreneurs. According to Brian, most financial planning advice is geared toward employees with stable salaries. Brian breaks down a more flexible approach that works for business owners with fluctuating income.
• How to make sure your money is always working for you. Whether it’s passive income, liquidity, or debt management, Brian shares strategies for keeping your wealth in motion and compounding over time.
• What financial freedom really means and how to get there—It’s not about never working again but about having the flexibility to make choices without financial stress.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Our firm is not endorsed by or affiliated with any government agency.

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In this podcast episode, Brian shares his remarkable journey from his parents' middle-class immigrant background to achieving financial freedom through decades of learning and building businesses.

He recounts his early aspiration for an opulent lifestyle and the pivotal moment when he realized the importance of creating income-producing assets. Through content creation, including three books and the Common Sense Financial Podcast, Brian's financial wisdom and expertise have garnered recognition and awards, providing valuable insights into wealth, financial freedom, and the pursuit of life's true riches.

Join us as we explore Brian's wealth-building principles, the significance of faith, family, and relationships, and the pursuit of genuine financial freedom.

• It was over 30 years ago when Brian got started in business and he’s spent this time building his knowledge while building teams and companies.
• Brian begins by telling the story of his parents and how they came over from Croatia and lived a middle-class life.
• His father worked evenings and weekends as a lab engineer while also running a business on the side. His work ethic greatly inspired Brian as he grew up.
• As a teen, he always dreamed of having expensive things, but his only model for getting that done involved trading time for money, which is exactly what he did throughout his early 20’s. This led to him working harder to keep up with his increasingly expensive lifestyle.
• After doing it wrong for years, Brian had an epiphany where he realized he needed to create income-producing assets that would pay for his lifestyle.
• He set out to create a passive income stream to support his lifestyle and successfully accomplished it. That’s when his focus for what he was really trying to do for his clients came into clarity.
• Brian began producing content back in 2010. And out of that came three books: Common Sense, Generational Planning, and Retirement Planning, which can all be found on Amazon.
• This led to the beginning of the Common Sense Financial Podcast, which has since been recognized by Forbes as a top 10 podcast by financial advisors. Brian also became a regular contributor for Kiplinger magazine locally in St. Louis. He’s gone on to win numerous awards for his work.
• After 30 years of helping clients create the passive income they need to create real financial freedom, Brian regularly hears clients say that his process has really opened their eyes about how money works and how to think about wealth.
• In his personal life, Brian has been married to his wife Carrie for 30 years and has three kids, who have also grown up and had families of their own.
• Throughout their lives, Brian and his wife have taught their children two main things. First, most importantly, for them to pursue a close personal relationship with Jesus Christ and to live out their faith in their daily walk. Second to that, is to understand that a worthy pursuit in life is the things money can't buy: building relationships, investing, and creating memories and experiences with people that you love.
• A key lesson that took Brian a long time to figure out is that the pursuit of things never brings satisfaction.
• Real wealth is not found in things but in the freedom to live your life free from having to work for a paycheck or trade your time for money, which is another lesson he tries to impart to his kids as well as his clients.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

SkrobonjaFinancial.com

SkrobonjaWealth.com

BuildBanking.com

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

Generational Planning by Brian Skrobonja

Retirement Planning: Have A Plan So You Can Live Your Life by Brian Skrobonja

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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In this episode we talk about the importance of using key performance indicators beyond just investment performance to gauge the health of one's retirement plan.

There are five crucial data points that form the foundation of a successful retirement strategy: passive income, effective tax rate, cash flow ratio, banking capacity, and horizontal asset allocation. By focusing on these metrics, you can adopt a comprehensive approach to retirement planning that factors in various financial variables and bridges the gaps in your financial plan.

• Business owners use KPIs or key performance indicators to track and understand the health of their business and marketing efforts. Those planning for retirement should consider their retirement KPIs to help measure the health of their financial situation.
• People often make the mistake of substituting investment performance for more meaningful key performance indicators. ROI is not the only KPI you should be paying attention to.
• People often view their finances in silos and tend to make standalone decisions about what to do while leaving out other important variables concerning their situation, which can result in having gaps in their overall retirement plan design.
• For example, the stock market can go down, but that doesn’t necessarily mean your plan should change. The flipside is also true: the market may be up, but that could mean you need to make adjustments.
• Knowing what KPIs to use and how to use them can help measure the health of your overall financial situation, not just track portfolio performance.
• A KPI is simply a collection of data points that helps provide a consistent method for measuring and monitoring the health of your retirement plan.
• In my experience, there are five key data points needed to measure the effectiveness of a retirement plan.
• The first is passive income.
  • Income is an obvious component and the central theme of a retirement plan.
  • Income is not growth of a share or unit of a particular investment. It is the income generated from the share or unit of an investment.
  • If there is a retirement income gap of $5,000 each month, the goal of the retirement plan is to not simply cash out investments each month or spend down savings to meet the goal. It is to create passive income sources that can consistently provide the cash flow.
  • Missing this point can be catastrophic to the longevity of a retirement plan.
• The second is the effective tax rate.
  • Tax rates in the United States of America are progressive. The more you make, the higher the marginal rate is on portions of your income. Marginal rates have their place when filing a return or making decisions about asset positioning.
  • The effective tax rate is a single rate that's calculated using the total taxes that are paid against the gross income. This percentage gives us a better overall understanding of the impact taxes are having on retirement income.
  • If the retirement income gap is $5,000 each month and the effective tax rate is 30%, we can determine the additional amount of income required to cover the tax liabilities.
  • The more tax mitigation techniques you incorporate into a retirement plan, the less pressure there is on your assets to generate additional income just to pay the tax.
• The third is cash flow ratio.
  • People often define cash flow too narrowly and often exclude things like taxes, retirement savings and health insurance premiums, which leaves gaps in understanding.
  • It is also important to know the ratio of income to bank payments, taxes, savings insurance, as well as fixed and variable expenses.
  • It’s also important to know the earned income versus passive income ratio along with the number of different income sources you rely on to fund your lifestyle.
• The fourth is your banking capacity.
  • When it comes to asset allocation, there is often the out-of-the-box structure where assets are divided up between investments and bank accounts. This approach oversimplifies a more complex situation and overlooks the realities of life and how people actually use and spend money.
  • There are many factors to consider outside of just growing assets and covering emergencies, such as big ticket purchases and other family needs, that could benefit from incorporating a family bank into the financial plan.
  • A family bank, aka Build Banking, is a specially designed life insurance contract that enables a family to have banking capabilities within their own financial ecosystem without relying on an actual bank outside of their financial situation.
  • This piece is usually missing from most retirement plans.
• The fifth is horizontal asset allocation.
  • Most people think of diversification as a vertical landscape of public market investments such as stocks, bonds, and mutual funds or ETFs, but that’s the wrong idea.
  • Asset allocation is similar to gardening. It requires diversity in many different forms to help manage growth, produce income, minimize risk and mitigate taxes.
  • Adding things such as real estate businesses, private equity, life insurance, annuities, amongst other things, can provide characteristics and other elements of stability to help support a retirement plan.
• To develop a retirement plan, you must first identify the gaps in your existing situation, and then begin to work out on strategies to help fill those gaps. Having a way to measure passive income tax exposure, cashflow, asset allocation, and your baking capacity are the most important metrics to start with.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/thegapreportstart

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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In this episode on Certificates of Deposit (CDs) as investments, we talk about the nuanced decision-making involved in purchasing CDs and whether or not CDs are good investments, particularly in a rising interest rate environment, and we explain why interest rates are the only factor you need to consider.

Wealth creation isn't solely dependent on CD rates, and we need to consider the impact of inflation and interest rates to gain a comprehensive financial perspective. The episode also explores how government strategies to combat inflation by adjusting interest rates impact not only investors, but also shape the attractiveness of CDs as an investment option.

• In a rising interest rate environment, buying CDs may seem like a good idea but it depends on your needs and goals.
• Wealth isn't created by buying a CD based on a rate. It's created by understanding why the rate may not be all that important.
• Banks look at what is known as the federal funds rate, also known as a benchmark rate. This is the rate banks charge one another to borrow money overnight that's needed to maintain reserve requirements.
• Upstream in the decision making process is the Federal Open Market Committee or FOMC, who meet throughout the year to discuss and set monetary policy. Within these policies, rates are set and typically linked to inflation.
• When those rates are set, banks may adjust rates on loans, deposits and certificates of deposit. But just like any business, banks will adjust rates to compete in their market as they seek to cover their costs and maintain a profit.
• CDs specifically are an attractive tool for banks, because unlike a deposit account, CDs actually lock up customers with a maturity date, which gives banks better control of their cash flow. The higher rates draw in customers seeking to maximize their returns.
• Rates on CDs matter, but not as much when you factor in inflation and interest rates. If inflation is at 7% and interest rates are at 5%, the net is 2%. The same is true if inflation is at 0% and interest rates are at 2%. You have to look at both numbers to get a full picture.
• When you consider the gridlock within the housing market and the amount of debt our government holds, it's hard to believe rates can remain elevated over the long term. The government is desperately trying to combat inflation by raising rates.
• These higher rates not only impact consumers, but they also impact the government. According to the Congressional Budget Office, or CBO, in June of 2023, they projected that annual net interest costs on the federal debt would total $663 billion in 2023 and almost double over the next decade. Interest payments would total around $71 trillion over the next 30 years, taking up to 35% of all federal revenue by 2053.
• These numbers are impacted by interest rates and with lower rates come lower interest payments, so the government has reasons to see rates lower than they currently are.
• The question is: Does it make sense to lock in CD rates while rates are high? It depends. If you have money sitting in a bank account that you don't need and the CD rate is offering a higher rate than your savings, then it might be a good option.
• A good idea is to compare CD rates to other options like fixed annuities and money markets since they share some similarities but also have a few key differences that could make one choice better for your situation.
• Certificates of Deposit are offered by banks as a savings account that offers a fixed interest rate over a specified period of time, ranging from one month up to five years. They carry penalties if funds are removed before maturity, and they're FDIC insured up to $250,000.
• Fixed Rate annuities are issued by insurance companies and are financial products that offer a fixed interest rate over a specified period of time. Early withdrawals can incur a penalty, and interest earnings are tax deferred until you start taking distributions. The guarantees are backed by the claims paying ability of the insurance company and are insured by what is known as the State Guarantee Association.
• Money markets are funds issued by financial institutions that are backed by highly liquid short maturity investments. Maturities usually range from overnight to just under a year, and assets can be quickly converted to cash with minimal loss of value. They are generally considered more risky than a bank, CD or insurance company annuity, and the underlying investments include such things as treasury bills, commercial paper and CDs.
• While CDs offer the safety of fixed returns, they are not devoid of risks and limitations. It's essential to understand both the micro and macro economic factors that affect CD rates before diving in.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

“What to Know About How Banks Work”

The State Guaranty Association

References for this episode:

https://www.pbs.org/newshour/economy/americans-faith-in-banks-hit-low-after-failures-says-ap-norc-poll

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

https://fortune.com/recommends/banking/will-cd-rates-go-up

https://www.usbank.com/investing/financial-perspectives/market-news/federal-reserve-tapering-asset-purchases.html

https://www.pgpf.org/analysis/2023/07/higher-interest-rates-will-raise-interest-costs-on-the-national-debt

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

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In this episode, we delve into the link between overall retirement quality and the confidence you have in your financial plan. We emphasize how a well-designed retirement strategy tailored to your needs, not solely reliant on market performance, is pivotal for boosting confidence and making your retirement plan a reality you can rely on.

Addressing common fears, exploring emotional extremes, and understanding the evolving landscape of retirement planning, will help you discover the significance of income-focused strategies and a diversified asset approach in building confidence in your retirement plan.

• When it comes to retirement, your quality of life in these golden years is often predicated on the level of confidence you have regarding your situation. A poorly-designed retirement plan can often cause emotional confusion, which leaves you feeling insecure and lacking confidence.
• Confidence is typically at its peak when a plan is optimized and is designed around meeting the needs of the client and not relying entirely on market performance.
• Retirement confidence is in direct correlation with how well your plan is designed to manage your exposure to risk and its ability to fulfill cash flow requirements. A plan built on hope and optimism can lead to very emotional times when the market doesn’t work out the way you’d hoped.
• Many client conversations relating to retirement are often centered around insecurities the client is working through.
• Common fears include running out of money before running out of life, market crashes, having a health crisis, missing opportunities, or simply making mistakes.
• There are typically two emotional extremes, no confidence or complete overconfidence.
• A lack of confidence leads to avoidance behavior and avoiding decisions, which often makes a person vulnerable to the very things they are afraid of.
• Overconfidence leads people to underestimate their vulnerabilities.
• Being skittish or practicing decision avoidance or fearing the idea of making a bad decision are all confidence killers, and the ultimate irony of this behavior is actually preventing the solution from being implemented, which can turn your fears into a reality.
• Confidence is about being able to rely on your retirement plan to do what you need it to do. If your retirement plan is anchored to the stock market, your confidence level relies entirely on the performance of the market.
• Most people’s retirement plans involve a stock market portfolio they plan to liquidate over time, Social Security, and a pension, but that’s really just the start.
• This paradigm seems to be rooted in watching our parents or grandparents work for decades in the same job and then retire with their pensions and Social Security benefits. However, circumstances have changed, and what worked back then isn’t going to cut it now.
• Pensions and company-provided retirement plans have been on the decline since the 1980’s. Baby Boomers started putting their money into retirement plans starting in the 90’s, which caused a growing stock market. 2016 was the first year that Baby Boomers started taking out money from those accounts.
• Those who ran the markets up are now the same group that is putting selling pressure on the markets, but there are other influences as well: government spending and policy, Fed policy, pandemics, interest rates, inflation, and more.
• When you lack certainty in the market, algorithms and a 24/7 news cycle can exacerbate the situation.
• There are two fundamental things that can have a profound impact on your retirement confidence. First is solving for income using income products. The foundation of a retirement plan is to generate consistent income, and unfortunately, consistency is not synonymous with the stock market.
• Separating your assets between long-term growth in public investments and income-generating private and fixed assets is a crucial component of being confident in your overall retirement plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

Brian's article - ‘Five Common Retirement Mistakes and How to Avoid Them’

References for this episode:

https://www.dol.gov/general/topic/retirement/erisa

https://www.thestreet.com/personal-finance/baby-boomers-could-cause-market-crash-12117996

https://www.forbes.com/sites/lizfrazierpeck/2021/02/11/the-coronavirus-crash-of-2020-and-the-investing-lesson-it-taught-us/?sh=17701bd846cf

https://www.marketwatch.com/story/u-s-stocks-would-be-much-lower-if-it-wasnt-for-excessive-government-spending-morgan-stanleys-mike-wilson-says-1b8e65d2

https://www.nasdaq.com/articles/what-does-the-fed-do-and-how-does-it-impact-the-stock-market

https://thefga.org/blog/president-biden-is-wrong-about-esg-heres-why/?gclid=CjwKCAjwvfmoBhAwEiwAG2tqzIhc3F2QbmLEygcbkIg9eV7bhXUz3dzXhO1A_hTNE3hNsMbTug59txoCPcwQAvD_BwE

https://centerpointsecurities.com/stock-market-algorithms/#:~:text=The%20main%20thing%20traders%20need,because%20you%20may%20lose%20fast.

https://www.statista.com/statistics/191077/inflation-rate-in-the-usa-since-1990

https://www.bankrate.com/banking/cds/historical-cd-interest-rates

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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Brian Skrobonja breaks down the repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

He covers how retirees can strategically use their lump sum to create long-term financial stability, the impact of the repeal on spousal and survivor benefits, and the broader financial strain on the Social Security system.

Tune in to hear essential insights into how to adapt your financial strategy and take full advantage of this game-changing reform.

• Brian starts by explaining why the repeal of the WEP and the GPO is a big deal for retirees.
• A good example of how this repeal affects retirees is higher Social Security benefits--retirees can now reduce reliance on personal savings and investment withdrawals.
• Brian talks about the impact on spousal and survivor benefits. The repeal eliminates the harsh reductions that often left surviving spouses with little to no income.
• Brian explains why retirees need a strategy for their lump sum payments. Instead of spending it impulsively, consider reinvesting in assets that create long-term financial security.
• How the repeal changes retirement planning for government workers. Formerly penalized for having a pension, they can now receive full Social Security benefits without reductions.
• Brian highlights why this repeal adds financial strain to the Social Security system. The Congressional Budget Office projects billions in additional costs, worsening the program’s long-term stability.
• Brian reveals the biggest challenge Social Security now faces.
• Recalculating benefits for millions of retirees while managing retroactive payments creates an administrative nightmare for the Social Security office.
• Brian highlights the fairness issue with this change. Government employees with brief private-sector work history may now receive benefits exceeding lifelong private-sector workers with similar earnings.
• How younger workers may bear the financial burden of this repeal. Without a payroll tax increase, the long-term cost shifts onto the next generation of retirees.
• Understand how to make the most of this new opportunity. With higher benefits, retirees should rethink their tax strategy, pension withdrawals, and investment plans.
• Brian shares the best way to maximize Social Security benefits.
• Coordinating Social Security payments with pension income, investment distributions, and annuities can optimize cash flow for you in retirement.
• Brian explains the tax implications of higher Social Security benefits and how increased payments could push retirees into higher tax brackets.
• According to Brian, this change creates new financial planning opportunities. Retirees can explore strategies like Roth conversions or delaying withdrawals to reduce tax burdens.
• Brian explains how ignoring these changes could cost you and potentially derail your retirement.
• The repeal is a game changer and failing to adapt your financial strategy means missing out on valuable benefits or paying more in taxes.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

References for this episode:

https://www.nea.org/resource-library/faq-social-security-fairness-act#:~:text=Impacted%20individuals%20will%20see%20an%20estimated%20average%20increase%20of%20%24360,vary%20based%20on%20employment%20history

https://hayes.house.gov/2025/1/social-security-fairness-act-legislation-co-sponsored-by-hayes-signed-into-law-by-president-biden#:~:text=Additionally%2C%20the%20CBO%20estimates%20that,for%20380%2C000%20impacted%20spouses%20and

https://www.cbpp.org/research/social-security/repealing-social-securitys-wep-and-gpo-rules-would-be-misguided

https://www.cbo.gov/publication/60392#:~:text=In%20CBO's%20projections%2C%20the%20balance,the%20balance%20of%20the%20Disability

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Our firm is not endorsed by or affiliated with any government agency.

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The complexity of Social Security calculations can cause some confusion around when someone eligible should file and claim their benefit. There are a lot of variables to consider and acronyms to decipher that can make Social Security feel like a confusing hedge maze.

Let’s cut through some of the noise and clarify some of the most pressing questions around Social Security benefits and what questions you need to consider to determine what’s best for you and your family.

• Social Security has many layers, and the concept of eligibility can be pretty complex. It's not always clear when and how someone should begin taking their benefits because being eligible doesn't necessarily mean you should turn that benefit on.
• Social Security benefits can be turned on as early as age 62. Each year the benefit is delayed, you receive what is called a delayed retirement credit or DRC. These DRCs guarantee an automatic 8% increase in your Social Security benefit every year you delay up to age 70.
• There is also your full retirement age. This is the age when you are eligible to receive the full benefit without any offset for having earned income. Earned income being income from employment, which is different from income received from investments, pensions or annuities.
• For those born in 1960, or later, your FRA is age 67. Benefits are calculated by the Social Security Administration by taking 35 years of earnings that are indexed for inflation. Any years you didn’t work are counted as a zero in your average earnings calculation.
• These annual amounts are then totaled and divided by four and 20 months to arrive at the monthly figure known as your average indexed monthly earning. This number is different from your benefit amount. The SSA then applies a formula to that number which determines your primary insurance amount or PIA and this is your monthly Social Security benefit.
• If you choose to take your benefit before your FRA while employed, there's an offset that can significantly reduce the benefit if your income exceeds $21,240 in 2023. This reduction is $1 for every $2 of earned income over the limit. In the year you reach your FRA, the limit increases to $56,520 in 2023, with a benefit reduction of $1 for every $3 of earned income over the limit.
• After you've reached your FRA there's no earning limits and you receive the full benefit with no income offsets.
• Provisional income comes into play after your benefits are activated. Your provisional income is calculated by taking your adjusted gross income plus half of your Social Security benefit.
• If that total is less than $25,000, your Social Security benefit is not subject to federal tax. If it is above 25,000, but below 34,000, 50% of the benefit is taxed, and if it's above 34,000, 85% of the benefit is taxed.
• If you're a government employee, there's something called a Windfall Elimination Provision, or WEP. And there's also a Government Pension Offset, or GPO.
• There are three common conversations we have with clients when it comes to Social Security. The first thing is determining the breakeven point.
• One method for deciding when to take Social Security benefits involves calculating the breakeven point, this is the future point in time when the value of one option equals that of another.
• For example, if your FRA benefit is $2,000 a month, and $1,400 at age 62, there's a $600 a month difference. When compared to waiting the five years and taking the full amount, the breakeven point would be 11.6 years.
• Something else to keep in mind is that by taking a benefit early, you reduce the amount of spousal benefit made available since the benefit in and of itself has been reduced and this could be an important consideration.
• The second consideration relates to one's health and longevity. If you don’t expect to live past that breakeven point, taking the benefit early might make more sense.
• From this perspective, it could be a win-win situation if they start receiving benefits early and they live longer than expected because the payments continue.
• We can’t know our lifespan for certain, but if you're in poor health, taking benefits early might be a reasonable option.
• The third consideration involves a person's retirement income requirement.
• Many clients we work with see Social Security simply as a piece of the retirement income strategy, and aren't necessarily concerned with breakeven points as much as they are with maximizing their assets and the resources. Many clients opt to turn their Social Security benefits on instead of tapping into their assets in order to maintain growth.
• Using assets to generate income in retirement also comes with variables that are hard to predict, like the conditions of the stock market and economic policy. Social Security, in comparison, is stable and easy to predict.
• Figuring out your retirement income requires careful planning, which is why it’s crucial to work with a professional that understands Social Security and its role in your retirement plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

SSA.gov

References for this episode:

SSA.gov/benefits/retirement/planner/agereduction.html

SSA.gov/benefits/retirement/planner/delayret.html

SSA.gov/benefits/retirement/planner/agereduction.html

SSA.gov/benefits/retirement/planner/whileworking.html

SSA.gov/benefits/retirement/planner/whileworking.html

SSA.gov/benefits/retirement/planner/taxes.html

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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If you tune into social media, there are a lot of influencers and gurus peddling one-size-fits-all financial advice and unfortunately plenty of investors base their strategies on what these people recommend.

Find out why basing your investment decisions on what’s trending on TikTok is short sighted and discover the seven indispensable steps of building wealth that are the most common among our most successful clients.

• Conventional wisdom such as paying off mortgages, quickly maxing out 401(k)'s or buying only Term Life insurance can be short sighted.
• Wealth isn't created by following rules of thumb, random one-size-fits-all fixes, or chasing trendy financial tips. Wealth is created by developing a custom-tailored strategy that facilitates wealth creation and prepares you for the future.
• The wealthiest people aren't doing the same things as the other 99%.
• Avoid rushing and applying random tidbits of information without first creating a comprehensive wealth strategy. We all have to take a long-term strategic view of wealth creation.
• There are seven key steps in building wealth that are common amongst all of our most successful clients.
• The first step is understanding cash flow.
  • Cash Flow isn't about monthly budgeting. It's a 12-month roadmap that outlines where your money will go including savings, investments, and day-to-day expenses.
  • Effective cash flow management is about abundance and a focus on wealth creation.
  • Budgeting operates from scarcity and measures success by such things as paying off debt or simply making ends meet. Wealth doesn't just magically form out of scarcity.
• Step two is really understanding your investment risk tolerance.
  • Many investors carry far too much risk for their stated tolerance levels but have really no way of gauging what risks they're carrying.
  • It's crucial to know where you fall on the risk spectrum and to work with a professional to help you tailor your investment strategy.
  • Complete the questionnaire on our website to discover your risk tolerance and know where to start that conversation.
• Step three is to learn your tax allocation.
  • Knowing how to help mitigate tax liabilities is an essential aspect of building and keeping wealth.
  • Tax deferral methods like 401 K's can be useful in some situations, they are not what we would consider comprehensive tax strategies. A deferral is not a savings.
  • Knowing how to allocate assets to mitigate tax liabilities requires an understanding of your entire financial picture.
  • A professional trio of maybe a certified public accountant, CPA, certified private wealth advisor, CPW, or a tax attorney, is essential for making the most of the opportunities available to you.
• Step four is to understand investment verticals.
  • The more public market investments that are acquired such as stocks, bonds and mutual funds, the deeper the portfolio vertically grows, but adding more of the same to your portfolio doesn't necessarily mitigate the exposure to the risk you're trying to diversify away from.
  • Horizontal opportunities are outside of the same vertical such as real estate businesses, private equity, and life insurance annuities, and they don't share in the same risk pools that each vertical may be exposed to.
  • Effectively diversifying reduces the risk in a portfolio overall and forms a stable foundation to build on.
  • Don't put all your eggs into one vertical basket.
• Step five is establishing multiple streams of income.
  • Relying on a single source of income, like your job or a single investment is a risky proposition.
  • Businesses, royalties, passive income investments, or other consulting or freelance opportunities are all ways to create more than one stream of income.
  • More sources of income mean your financial situation is more robust during economic storms and you have more capacity to take advantage of opportunities.
• Number six is to adopt financial delegation.
  • There's usually an element of cost and trust when managing financial decisions in a DIY fashion. There comes a tipping point when the perceived savings of doing things on your own becomes an opportunity cost.
  • The complexities involved with wealth management require specialized support from professionals.
  • The cost of working with a professional can be seen as an investment when it opens up new opportunities and it allows you to focus on your strengths.
  • Delegate specific financial tasks to professionals like accountants, lawyers, and financial planners. This allows you to focus your time and effort on enjoying the benefits of having the help and the division of labor helps ensure that all aspects of your financial life are managed optimally.
• Step seven is finding your purpose.
  • Scroll social media and you'll find that there are countless examples of miserable wealthy people.
  • Money certainly makes things easier and helps you afford some privileged experiences but happiness is derived from inside of ourselves. You'll never have enough money and there's always something more to achieve.
  • Answering the question of what you would do or commit your life to if money was not the motivation can offer insight into what you feel like your purpose is.
• Building wealth is not about quick fixes or following the herd. It's about strategic informed decision making that requires an opportunity that looks at cashflow, risk tolerance, tax allocation, diverse investments, multiple income streams, financial delegation, and purpose.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Most business owners come into the financial game as the quarterback. They’re telling their CPA and financial advisor what they need and when they need it instead of working as a team to plan out a cohesive strategy.

This needs to change.

Listen to the latest episode of the podcast to learn why your business needs a financial team that works together, and how to incorporate tax planning strategies into your operation, so you’re not overpaying taxes and maximizing the odds of your long-term success.

• Tanner is a CPA with 22 years of experience in the tax world. Born and raised in Utah, Tanner was a natural mathematician and considered joining the FBI as an accountant but didn’t end up going that route. He spent 12 years with five different CPA firms, discovering what he liked and didn’t like, before venturing out on his own.
• The Trump tax cuts expire in 2025 and a lot of professionals are anticipating higher tax rates in the near future. One tax benefit that is likely to expire is the QBR deduction for small business owners.
• Every client is different, but one piece of advice that every business owner can benefit from is choosing the right entity. A lot will depend on what your lifestyle looks like and what you are already paying for.
• Tax deductions are great but finding tax credits is even better. A good example is the Research and Development tax credit, which can go back as many as three years.
• Most people wait until there is an immediate need to contact their CPA, but that leaves a lot of opportunity on the table.
• Tax planning is very different from tax preparation. Tax planning occurs throughout the year and is a more proactive approach that many don’t realize is an option.
• The relationship you have with your CPA is crucial and can play a pivotal role during tax season. With a good relationship you also get the benefit of your CPA’s experience in other industries. Taxes are changing all the time, so it helps to have someone you can reach out to throughout the year.
• Having a financial plan should incorporate tax mitigation strategies. You, your financial planner, your attorney, and your CPA should be working as a team to manage your business finances. The more they can communicate and work together, the more effective they can be.
• There are a lot of inefficiencies in your business by having your financial plan and tax plan operating in separate silos. Individually, everyone does their job well, but when working together they can really shine.
• Typically, there’s a three-year window on filing for a refund claim. If you feel like your current CPA may not be bringing all the opportunities to your attention, it might benefit you to get a second opinion.
• If you’re planning on selling your business, there are a few things to keep in mind. Is it a stock sale or an asset sale? Do you have clean and accurate records? Plan your sale as far out in advance as you can to make sure you have all that you need for a smooth transition.
• One of the most underrated and overlooked aspects of tax planning is your bookkeeping for your businesses. Monthly bookkeeping makes it a lot easier to plan and stay ahead of the finances and taxes compared to waiting until January or April to figure out what you have to do.
• If you make a lot of money, you're going to pay taxes, and that's just the way it is. But when it's a surprise, that's where the problem comes into play.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

MTAconsulting.net

Brian Skrobonja and Tanner Adams are not affiliated. There is no compensation exchanged between Brian Skrobonja and Tanner Adams.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Brian Skrobonja discusses the crucial role a well-defined investing strategy plays in making smarter financial decisions.

He covers ways to create an investing framework you can follow, why blindly taking investing risks is a recipe for disaster, and ways to navigate financial decisions with confidence and clarity.

• Brian starts by highlighting the crucial role a well-defined investing framework plays in securing your financial future.
• He highlights a common misconception about retirement: many people think retirement is the final destination. In reality, it’s just a transition point, and how you prepare for this phase can shape your financial future.
• Brian explains how having a defined strategy can simplify your retirement journey and help ensure a smooth transition.
• Brian compares retirement to halftime in a game: it's a moment to reassess, adjust your strategy, and return to the field with more clarity.
• Do you have a system for achieving your financial goals? Brian encourages you to create a framework that delivers consistent, predictable results.
• Many people misunderstand what it takes to build an effective investing system. Brian stresses that reshaping your thinking and approach is key to achieving larger financial goals and breaking free from outdated processes.
• The multitude of paths available can make financial decision-making feel overwhelming. Brian’s advice: to find success, you must be open to learning and reshaping your thinking about investing.
• Learn how to assess and manage risk effectively and align your investments with your goals.
• Understand that quantifying risk can be challenging because the outcome of an investment may not be clear until much later.
• Second-generation business owners often struggle with newfound wealth and responsibilities. Brian shares insights on how to overcome these challenges and ways to help secure your financial legacy.
• According to Brian, a solid investing formula can help you navigate risk and enhance your financial outcomes.
• How do you define risk? For Brian, your level of education and understanding shapes your personal risk tolerance--being aware of this helps you make more informed decisions.
• The true level of risk you’re carrying when investing can be difficult to assess. Understanding your financial situation and making educated choices helps reduce uncertainty.
• Brian reveals how having a clear plan empowers you to make smarter decisions and manage your portfolio more effectively.
• Brian reveals why a solid investing formula should be built on a checklist focused on proven rules rather than past market performance or others’ opinions.
• If you don’t have a framework for making financial decisions, now is the time to create one.
• Building wealth is not about random decisions or chance—it’s about following a well-designed formula.
• Trying to prepare a financial plan without a clear system leads to wasted time and unpredictable results. Brian’s recommended approach ensures you follow a formula that drives consistent and measurable success.
• Many people misunderstand the concept of diversification. Brian explains that it’s not just about picking stocks—it’s about creating a broader asset allocation framework that works for your unique goals.
• Hoping for a good future is much different than mapping out your future.
• Brian shows how having a clear strategy ensures you make the right decisions at every stage of your financial journey.
• It’s not enough to simply create a framework—you must commit to following it. Brian explains how dedication to your strategy is the key to achieving the financial results you desire.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

How to Make a Few Billion Dollars by Brad Jacobs

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This show is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency.

The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.

Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets. Endowment funds are managed for institutions not individuals. An endowment-like strategy is not an endowment or an endowment fund.

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Entrepreneurs by nature are continuously occupied with running their business and wearing multiple hats throughout the day just to keep things running smoothly. Unfortunately, that leads entrepreneurs into making a number of common mistakes.

Mistakes that damage the long-term success and potential of their business.

Listen to the latest episode of the podcast to learn about the four most common financial mistakes entrepreneurs make that put the future of their business at risk, and how you can avoid them.

• Many entrepreneurs find themselves underserved when it comes to financial planning and often rely too heavily on their CPA for financial advice.
• One common mistake entrepreneurs make is assuming that as long as they meet payroll, stay current on taxes and receive payments from customers, their business is financially healthy.
• The problem is CPAs primarily focus on looking backwards and reviewing the previous year or quarter to meet tax filing deadlines, instead of looking forward and making strategic plans for the following year.
• Proper financial planning can help your business reduce its tax liability and increase its profitability.
• Another common mistake is entrepreneurs take the profit of their business as income, which may not be the most efficient method of distribution. Proper planning helps find the balance between income and profit.
• Financial planning can also help you determine whether your business structure is still appropriate for where you are or if it needs to evolve.
• Financial planning also helps mitigate risk, and there are three major risks that every business faces: death, disability, and divorce. Any of these risks becoming a reality can seriously derail a business and its long-term potential.
• Entrepreneurs tend to visualize positive outcomes rather than seriously considering what could go wrong and how they should address those potential problems. Having a financial plan can include agreements and other triggering events that can help facilitate a smooth outcome when facing such events.
• Another common mistake made by business owners is treating the business exit as merely a transaction rather than a transition. Exiting the business involves more than just the sale itself; it requires planning for life after the exit.
• Owners frequently overvalue their business leading to unrealistic expectations regarding the outcome of the sale. Many business owners also underestimate the time and effort required to prepare for a successful exit.
• Preparation for a sale can take years of planning, if done right, and should be incorporated into an overall financial planning process.
• Another common mistake is succumbing to the pressure of spending money to avoid tax liabilities. While tax planning is essential, it should not be the sole, driving factor behind financial decisions.
• FOMO (fear of missing out) can also lead to poor cash flow management, where entrepreneurs may be tempted to seize every opportunity that comes their way without considering its compatibility with their business vision.
• By having a well defined cash flow plan, entrepreneurs can allocate resources efficiently, reduce financial stress, and build wealth inside and outside of their business while helping to maintain stability during both prosperous and challenging times.
• A cash flow strategy is an integral part of an overall financial plan and acts as a roadmap, guiding financial decisions and helping you make the most of the cash flow.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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High income professionals face a unique situation when it comes to their retirement. You have the dual challenge of having your money tied up in your investments and also looming tax burdens once you retire.

Listen to the latest episode of the podcast to learn about a Specially Designed Life Insurance policy, also known as a life insurance retirement plan, and how it could be the wealth preservation tool you’ve been looking for.

• A high cash value life insurance policy can help facilitate tax-advantaged growth that standard retirement accounts may not be able to match.
• Many professionals spend a considerable amount of effort accumulating wealth for most of their life only to find themselves in a bind: their money is inaccessible with looming tax burdens.
• High Income professionals often face a dual tax burden where their current high income places them in a high tax bracket, reducing the net income they have available for investment. Meanwhile, the money you've diligently saved in your retirement plan will be subjected to potentially hefty taxes upon withdrawal later in life.
• Retirement accounts are great vehicles for long-term savings, but they lack flexibility, and you're penalized for early withdrawals leaving you without a readily available source of funds for unexpected opportunities or emergencies.
• For high income individuals grappling with these issues, a Specially Designed Life Insurance policy may be the answer.
• A Specially Designed Life Insurance (SDLI) policy utilizes a high cash value life insurance policy to facilitate tax-advantaged growth and offer flexibility that standard retirement accounts simply can't match.
• Cash value builds over time in the policy, growing in a tax-deferred basis mirroring the benefits of a retirement account, yet the cash value can be accessed at any time through a non-recognition policy loan.
• If properly managed, these policy loans have flexibility and are not required to be repaid during your lifetime and can be simply deducted from the death benefit or cash surrender value when the policy pays out.
• The SDLI strategy enables you to tap into your wealth when needed, providing the liquidity to seize investment opportunities or meet unexpected expenses.
• The policy loans do have an interest charged on them, but well-designed policies provide an opportunity to offset the interest.
• Not all life insurance policies offer the features necessary to execute the strategy effectively. It's a delicate balance that must be carefully managed and is best done with the help of a professional.
• This strategic tool offers several other key advantages for wealth management, asset protection and estate planning.
• In many jurisdictions, life insurance policies are protected from creditors providing a shield for your assets.
• Life insurance can also play a crucial role in balancing out an estate amongst surviving family members.
• A life insurance policy can also provide immediate liquidity to family members or business partners upon a death, ensuring the continuity of a business or farm without the need to sell off assets.

• Life insurance proceeds can also provide a tax free inheritance to your beneficiaries, helping to preserve your legacy.

• A common pushback against using life insurance as an accumulation vehicle is the perception that it is expensive and takes a long time to accumulate substantial cash values. This is because most common policies are focused on maximizing a death benefit instead of rapid cash value accumulation.

• While there is an undeniable cost associated with a special desire life insurance policy, it's crucial to consider this expense in contrast to the potential tax liabilities.
• Retirement account distributions are generally taxed as ordinary income. For a high income individual, this can be losing a substantial chunk of your retirement savings to taxes.
• In many cases, the cost of a Specially Designed Life Insurance policy could be a mere fraction of what the tax liabilities may be on an investment growth over time.
• The true cost of these policies become apparent only when considering the full financial picture, including current and future tax burdens, access to cash and long-term wealth accumulation.
• A Specially Designed Life Insurance policy is not a catch-all solution but rather a tool within the context of a comprehensive wealth management plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BuildBanking.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™️, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™️ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC. Any references to protection, safety or guarantees, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Skrobonja Insurance Services, LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.

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The concept of investing is often associated only with money and the pursuit of wealth, but this Annuities are a popular thing these days… why is that the case?

And are they a valid option for those planning their retirement?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja explores the world of annuities – from what they are and the three types of annuities all the way to four common myths, Brian’s “unpopular opinion” and why annuities and investments aren’t in competition.

Plus, Brian reveals what he considers the best way to accumulate wealth.

• You need to keep in mind that there are plenty of unknown factors in your life, such as how long you’re going to live, inflation, how the market is performing, healthcare costs, and economic shifts.
• Brian believes that the uncertainty surrounding retirement is why annuities are so popular.
• Annuities are a way to transfer risk over to an insurance company and provide some sense of safety for the future, says Brian.
• According to Statista, the risk of running out of money is a real concern for many retirees, with an estimated $2.53 trillion of retirement assets held inside of annuities.
• Brian breaks down the three types of annuities – variable, fixed-indexed, and fixed-rate – and shares a common misconception about income benefits.
• In his own words, Brian has an “unpopular” stance: he’s a believer in the fact that whether or not someone should use an annuity depends on their situation.
• Brian touches upon when it makes sense for you to use an annuity and when it doesn’t.
• “Capital appreciation over time” is what Brian considers the best way to accumulate wealth.
• Brian explains that annuities and investments aren’t in competition, because they both have a place at different times in someone’s life, depending on their needs.
• Brian goes over four common annuity-related myths.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Statista.com

Brian’s article: My 5-Minute Retirement Plan

Brian’s article: The Financial Fiduciary Standard Explained

Brian's article: What to Do With Cash in a Low Interest Rate Environment

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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The concept of investing is often associated only with money and the pursuit of wealth, but this fails to capture the true essence of investing.

An ideal future isn’t encapsulated by a stack of $100 bills.

The true essence of investing is not about building wealth, but about building the atmospheric conditions that align with your ideal future self.

Listen to the latest episode of the podcast to learn why a relentless focus on accumulating wealth will end up costing you what you’re actually working for, and why you need to have a more encompassing vision for what your retirement can be beyond your portfolio.

• Your quality of life isn’t determined just by the number in your bank account. Those dollars are merely the resources you use to create the ideal life.
• Wealth extends beyond the mere accumulation of money. It’s about the life you can construct around it and the atmospheric conditions you can create for yourself.
• You can possess all the wealth in the world, but without the cornerstones of a healthy life like thriving relationships, health, purpose and meaning, the value of that wealth diminishes.
• We need to exercise caution in our perception of wealth and the significance we ascribe to money. Investing shouldn’t only mean contributing to your financial future but should be considered building towards your ideal future.
• Having a vision for your retirement that involves activities and people requires a keen understanding of what’s important.
• Brian had a client who embodied the rags to riches narrative that people in the West admire so much, but after years of diligently working toward accumulating his wealth, this client ended up sacrificing his health. Instead of traveling the world and enjoying the fruits of his labor, this client spent his golden years visiting doctors and hospitals.
• “Man sacrifices his health to make money, then he sacrifices his money to recuperate his health.” -Dalai Lama
• A healthy lifestyle lays the foundation for our capacity to live fully and pursue our ambitions actively. The importance of investing in health can not be overstated.
• Along with health, investing into your relationships is paramount. Relationships form an integral part of our support system. The rewards are not always monetary, but they are no less important, and investing time into relationships is crucial.
• Investing into a steady flow of income beyond just building a portfolio is another key component to enjoying your retirement.
• Growth is not income generating and growth is not the same as income. Retirement needs to be a time of shifting from a diversification of growth assets into a diversification of income producing assets.
• The true essence of investing is not about building wealth, but about building the atmospheric conditions that aligns with your ideal future self. That includes nurturing your health, cultivating meaningful relationships, ensuring a steady income, and fostering cognitive ability.
• Money is a tool to reach those goals, and not the goal itself.
• Retirement should be seen as a chapter in your life that is ripe with potential.
• True wealth is not just the abundance of money, but the presence of all the components that make life fulfilling.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

Previous episode - Make Health Planning Part of Your Retirement Planning, with Regan Archibald

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Brian Skrobonja goes through the five questions you need to answer to gauge how prepared you are for retirement.

He covers the benefits of having a detailed income plan, how to design a comprehensive tax strategy, and what it takes to enjoy your retirement without constantly second-guessing your financial decisions.

• Brian starts the conversation by explaining why retirement is more than just a financial milestone. It's a complete shift in how you use money and approach life.
• According to Brian, setting a retirement date before having an optimized retirement plan is like quitting a job before you have another one lined up.
• Retirement isn't just about having money in the bank or having an investment account. It's about understanding how that money converts into consistent, reliable income that can support your lifestyle for decades.
• Retirement's a great thing--and it could be very good, but you need to be prepared.
• Brian goes over the questions that gauge how well prepared you are for retirement.
• Do you have a detailed income plan? Too many retirees assume that their portfolio will increase in value in a straight line and last forever.
• The problem with assumptions is that it leads to gaps. And even a small gap in your expenses or income can compound into significant financial stress over time.
• For Brian, if you haven't taken the time to answer the hard questions about how much you'll need, where that money will come from, and how taxes and inflation will affect it, you're setting yourself up for a lot of uncertainty--and uncertainty is the last thing you want in retirement.
• When you're working, your paycheck funds your lifestyle. In retirement, your assets become your paycheck.
• The most important part of planning for retirement is knowing your number--How much money it will take to sustain your ideal retirement lifestyle.
• Brian explains how retirees can develop the confidence to enjoy their retirement without constantly second-guessing their financial decisions.
• Social Security is often viewed as a cornerstone of retirement income, but it's also one of the most misunderstood.
• According to Brian, people assume Social Security will cover a significant portion of their expenses, but the reality is that Social Security is designed to only supplement your income, not replace it.
• Brian highlights how continuing to work in some capacity in retirement can provide a sense of purpose and help you remain connected to your community.
• Brian talks about the benefits of purposefully organizing your assets.
• He shares how categorizing your assets into three buckets--immediate income, long-term growth, and cash reserves--can help ensure your money works seamlessly to support your life, goals, and dreams.
• Brian explores the benefits of having a tax strategy.
• Taxes can erode your retirement savings faster than you think. They’re not as brutal as market volatility or inflation, but their impact can be just as significant.
• Without a proactive tax strategy, you're leaving the door wide open for the IRS to take more of your hard-earned money than necessary.
• For Brian, one of the best ways to manage taxes is to strategically time your withdrawals. This might mean pulling from your taxable and tax deferred accounts first, leaving your Roth IRA for last.
• Understand that taxes aren't just a problem to solve, they're an opportunity to optimize.
• Brian answers a question most retirees ignore: if something happens to you, will your spouse be financially secure.
• A great place to start answering this question is Social Security Optimization. The timing of when you or your spouse claim Social Security benefits can significantly impact the survivor benefits.
• Brian talks about estate planning and why you need to keep your documents up to date.
• Without regular updates, the documents meant to protect your wishes and your loved ones can unintentionally cause stress, confusion, or worse, legal disputes.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This show is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency.

The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.

Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets. Endowment funds are managed for institutions not individuals. An endowment-like strategy is not an endowment or an endowment fund.

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Many people accumulate their wealth in a bank or a long-term investment, and this may create problems.

But there is a different strategy.

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over the Build Banking strategy and how you can consider a different banking paradigm using specially designed life insurance policies that allow you to start banking on yourself.

• Most people know that banks use other people’s money to generate profits. This process is known as Fractional Reserve Banking, which is basically the bank using the spread between interest rates to profit.
• For banks, it goes a little deeper. Banks can loan out the money they have on deposit to people, and those dollars are then deposited again, which begins the cycle anew. This process acts as a money-printing machine within the economy.
• Banks aren’t currently required to hold any reserves to cover their customer’s deposits. The result of Fractional Reserve Banking is the expansion of the money supply which contributes to increased inflation.
• Silicon Valley Bank recently found itself in trouble and was unable to cover its liabilities leaving depositors to rely on the government to bail them out.
• It’s not realistic to be able to bypass the banking system entirely, but there are ways to take control of how you save and store money with a personal bank-like strategy.
• Build Banking uses a specially designed whole life insurance policy that’s built on the inherent tax-favored nature and unique capabilities of those policies.
• What makes Build Banking different is the design allows for rapid cash accumulation with uninterrupted tax-free growth, while having access to cash without having to rely on banks or Wall Street, but you have to set aside your preconceptions around life insurance.
• The challenge is the language around life insurance policies and how most people understand what they are capable of.
• With traditional banking, you either accumulate money and spend or borrow and then repay it. The Build Banking method offers a different strategy with a specially designed life insurance system that allows you to take back some of the control.
• Not all policies are the same and loan features can vary greatly, so it’s important to work with a professional with experience in this area.
• The main benefit of the Build Banking strategy is the ability to have your money remain in the policy and continue to grow uninterrupted, while simultaneously using a policy loan from the insurance company for personal use.
• A business owner has an extra advantage because they can leverage the loan in their business, creating both an internal and external return.
• This strategy also gives the policy owner a lot of control over how and when the loan is repaid because of the nature of the life insurance policy.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

BUILD Banking™️ is a DBA of Skrobonja Insurance Services, LLC. Benefits and guarantees are based on the claims paying ability of the insurance company. Not FDIC insured. Results may vary.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™️, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™️ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC.

Any references to protection, safety or guarantees, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Skrobonja Insurance Services, LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Time is your most precious resource, but how you use it is up to you.

The shift from earning to retirement can be quite challenging, as you have to thread the needle between income, growth, and time.

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over the most important mindset shift people need to make in order for their retirement plan to succeed.

• It is possible to retire without growth, but it’s impossible to succeed without income. But many people have trouble shifting their mindset from focusing on long-term growth into a consistent and reliable income.
• When you invest long-term, that means not having to withdraw money from your assets for a long time. But once you enter retirement, your timeline moves from the future to the present.
• This transition requires a mindset shift to be made before significant progress can be made.
• Retirement planning is a discovery process that boils down to learning whether or not you have an income gap in retirement and, once that’s discovered, the whole plan is built around replacing that income.
• Without that number, everything else is a guessing game. If you shortcut this step with estimates, you will only compound the issue downstream.
• Retirement seems like a simple concept, but it’s surprisingly complex and solving the issue with old ways of thinking will lead you astray.
• Future performance of investments can’t be determined by looking at the past. An investment doesn’t address the risks you face in retirement. The sooner you figure out that investing is a spoke in a very large wheel, the sooner you can begin to formulate a true retirement roadmap.
• There are common components for retirement scenarios, like the income gap.
• There are also common risks that all retirement plans need to account for: sequence of return risk, market risk, interest rate risk, mortality risk, legislative risk, longevity risk, and health risk. All retirement plans should be built around the idea of protecting yourself and mitigating as much risk as you possibly can.
• Most people’s largest asset is their income, but it’s often not considered for insurance.
• Confirmation bias can hinder our ability to consider alternative perspectives and make the mindset shifts we need to make in retirement. People can find themselves endlessly searching for experts to tell them that they don’t need to change their strategy in retirement because of our natural need to confirm our beliefs.
• The more successful a person becomes, the more valuable their time becomes. To preserve those valuable hours, it becomes increasingly more important to surround yourself with professionals to whom you can delegate responsibilities to free up time.
• Insurance is just a form of delegation. You delegate your risk to the insurance company, which mitigates the risk and increases the quality of your time.
• Delegating the research and leveraging the experience of a professional in retirement planning can help you leverage your time with confidence.

Mentioned in this episode:

BrianSkrobonja.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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“The more money you have, the bigger the mistakes,” someone once told Brian…

How does that translate into retirement planning? And how can you help ensure you approach your financial planning for your “golden years” in the best possible way?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over five retirement mistakes that you should stay away from at all costs, as well as what retirement is actually about.

• Brian touches upon something that a very successful person told him when he was getting started with his business back in 1993: ‘The more money you have, the bigger the mistakes.’
• With his desire to work hard and strong work ethic, Brian quickly became successful. But there was a problem with his approach – Brian opens up about that.
• Brian shares some of the retirement mistakes he has seen people make in his 30-year career.
• Having a distorted view of what wealth really is and having what Brian calls “vertical diversification” are two common mistakes Brian has seen over and over again in his career.
• There are many factors to consider when attempting to diversify. You shouldn’t believe that a bank account and a portfolio of public investments are all that’s available to you as you move your diversification horizontally.
• Brian points out a common practice to avoid: making an investment decision based on the tax deduction alone.
• When making decisions regarding how you save money, Brian suggests considering how you’ll ultimately use the money.
• Brian discusses why you shouldn’t have too much dependency on markets nor having complacency.
• Brian sees retirement as a balancing act between growing money for the future while drawing income for your retirement needs.

Mentioned in this episode:

BrianSkrobonja.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Brian Skrobonja shares practical tips on year-end tax planning so you can make informed decisions and take control of your financial future.

He explains why now is the perfect time to assess your financial situation and the type of strategic moves you can make to reduce your tax liabilities, maximize savings, and enhance your overall financial health.

• Brian starts the conversation by revealing the key elements of a well-designed year-end tax planning strategy.
• Tax planning isn't an April 15th activity. The tax return itself is just a scorecard. For Brian, tax planning goes from January to December of the year you're in.
• Brian talks about the benefits of being intentional about allocating resources and ensuring you remain in a reasonable tax bracket throughout the year.
• According to Brian, it’s unfortunate that most tax preparers recommend buying vehicles or equipment to save on taxes. Brian explains how that line of thinking may be costing you money, not saving you money.
• Brian reveals why he doesn’t defer taxes into retirement accounts.
• He explains how tax deferral is not a tax saving. For a strategy to be a tax saving, it needs to actually save you taxes. And a tax deferral is not a savings; the word defer gives it away.
• Brian goes through examples of real tax saving strategies that can reduce your current tax bill, build wealth, and help ensure you don’t have future tax liabilities.
• Brian talks about the best way to be paid as a business owner.
• While ordinary income may seem attractive, this form of income is also the highest taxed income in our tax system.
• Brian explains why business owners should not take ordinary income and instead take profits as a dividend. This can often carry a more favorable tax rate and can lead to some significant tax savings over time.
• The other mistake Brian sees people make is receiving an income and then making charitable contributions from their personal account. Often, this can result in overpaying on your taxes because of the standard deduction.
• Brian goes through investment options that carry unique tax benefits and lead to significant reductions in taxable income.
• The default approach for many people is to receive a salary, defer money into their 401k, pay down debt, and approach retirement with hands off the wheel. Brian explains why sometimes this is leaving money off the table.
• If you make money, there will be taxes to manage. Any tax-saving strategy you choose to deploy should be done legally and ethically. The good news is that there is nowhere in the tax code that says you have to pay the maximum amount in taxes.
• Brian highlights the benefits of keeping yourself updated with tax laws. Tax laws are always evolving and being informed about these changes can lead to better decision making.
• How to help ensure you're taking full advantage of the potential opportunities and the numerous tax benefits available to you.
• As the year concludes, Brian recommends taking the time to engage in comprehensive tax planning. This can make a meaningful difference in short-term savings and your long-term financial health.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This show is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency.

The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.

Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets. Endowment funds are managed for institutions not individuals. An endowment-like strategy is not an endowment or an endowment fund.

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Are you part of that 68% of people who would like to have a personalized financial plan, but aren’t sure where to find a financial advisor?

What should you pay attention to when trying to get a financial planning expert to help you, and you’re evaluating different options?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja shares six factors you should keep into consideration and look at when going through different financial advisor options.

• According to a May 2022 PR Newswire survey, 68% of people would like to have a personalized financial plan, but they’re not sure where to find a financial advisor.
• Brian sees information-gathering and understanding that planning isn’t the same as investing are the biggest mental hurdles of financial planning.
• When it comes to picking a financial advisor, there are six primary factors Brian suggests looking at.
• A 2022 study found that 80-90% of advisors fail in the first three years of practice – the main reason being the steep learning curve involved in serving clients.
• 10 years is the minimum that Brian would look for in terms of experience a financial advisor has.
• Brian discusses the different designations a financial advisor might have.
• Brian touches upon the importance of whether a financial advisor owns the company and the range of services they offer.

Mentioned in this episode:

BrianSkrobonja.com

Dan Sullivan

Chat GPT

FINRA

The Financial Fiduciary Standard Explained (2021 Kipliger article by Brian)

Reference for this episode:

https://www.prnewswire.com/news-releases/nearly-3-in-5-americans-59-want-financial-advice-but-are-not-sure-where-to-get-it-according-to-intelliflo-survey-301494402.html

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Past performance is no guarantee of future returns. Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This video is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. Our firm is not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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You feel healthy so everything is okay, right? Have you ever thought that health planning should be part of your retirement planning efforts?

If you’ve answered ‘yes,’ pay close attention to Regan Archibald!

Regan joins host Brian Skrobonja to discuss how people should approach health planning, the world of preventive care, the role of nutrition, and why longevity medicine is something you should be mindful of.

• Regan Archibald kicks off the conversation by sharing his origin story.
• In his work with entrepreneurs, Regan has found that when people focus on creating more balance and focus on their health, their business improves – and so does everything else.
• One of the major health issues both Regan and Brian have noticed is that many people think that if they feel okay, everything is okay…
• Regan stresses the importance not only to focus on a certain problem (like high blood pressure) but on trying to understand its cause (so, asking “Why is my blood pressure high?”).
• Regan illustrates how longevity medicine and financial planning share some of the same characteristics.
• “Peptides have been one of the most exciting developments,” says Regan. He explains why that’s the case.
• Regan believes that people should approach their health insurance the same way they approach their car insurance.
• What’s a good amount to budget toward health planning? For Regan, the answer to that is $15k/year.
• For Regan, making your health the #1 priority so that you feel it internally, is an excellent way to get started with health planning.
• Brian and Regan talk about what working with Regan actually looks like, and discuss diets and how to approach nutrition.

Mentioned in this episode:

BrianSkrobonja.com

ThePeptideExpert.com

Unreasonable Health Podcast

The Peptide Blueprint: Achieving Optimal Health and Performance at Any Age

Never Stop Healing: The Unknown Shortcuts With Peptides for an Extraordinary Life

EastWest Health

Dan Sullivan

Peter Diamandis

Bryan Johnson

Charles Schwab

Head Strong: The Bulletproof Plan to Activate Untapped Brain Energy to Work Smarter and Think Faster by Dave Asprey

Chat GPT

Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, MAS and Regan Archibald are not affiliated entities. NO compensation has been exchanged between Brian Skrobonja and Regan Archibald.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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What comes to mind when you think about retiring? Is it enjoying your "golden years?"

That's an outdated approach, says today's guest Dean Jackson!

He joins host Brian Skrobonja to discuss a new way to think about retirement – and how doing things this way will change your life – the concept of "pre-tiring," two types of economy, and what "money hobby" and self-managing companies are all about.

• The idea of the conversation with Dean came to Brian as the result of conversations he has been having with clients, plus the increased longevity and the outdated models that are still presented as the tools to approach retirement planning.
• From an early age, Dean realized the difference between what Dan Sullivan calls the time & effort economy, and the results economy.
• In the first type of economy. you get paid a fixed amount for your time and effort, whereas in the latter. you’re paid by the results you create.
• Dean has been “pre-tiring” since 1999, splitting his time between Canada and Florida.
• For Dean, trying to define what success means to you and what your ideal lifestyle looks like are key aspects to reflect on.
• Society has been structured in a way where people worked with an eye on retirement, where they would spend their golden years. Now, things have changed.
• As Dean points out, there are billions of definitions of what "a perfect life" looks like, and "everyone’s in possession of what could be a perfect life in their definition."
• The key is filling the blank, using your own situation and words, in regards to the sentence "I know I’ll be successful when ____."
• Rehearsing for retirement is one of the things Brian has been helping clients with. Retirement is a transition, so being prepared for it is crucial.
• Dean believes that one of the important steps to take to prepare for the transition into retirement is what he calls "money hobby."
• Find something you’re truly passionate about and look at whether you can turn it into some kind of business, like the Ryan’s Toys YouTube channel, for example.
• Brian thinks that retirement isn’t an age but a mindset. You can retire at 65 or at 35 if you have the right mindset and path to run down to create passive income.
• Citing Dan Sullivan’s ideas and work, Dean and Brian touch upon the whole idea of life extender and making your future bigger than your past.
• For Dean, it isn’t about how to do something but who can get something done for your company.
• You should decide whether you want to find a who that can help you with a specific thing – you can then turn into a business – or become that who yourself, for someone else’s business, and do the what you really love.
• Dean talks about the so-called eight profit activators, a blueprint that’s universally applicable to all businesses. It’s about looking for opportunities to activate profits in any of the eight areas.

Mentioned in this episode:

BrianSkrobonja.com

Previous episode - Retirement is Not an Age

DeanJackson.com

Dan Sullivan - StrategicCoach.com/our-team/#/people/dan-sullivan

Tony Robbins’ New Money Master program

Thomas Leonard

Shopify.com

Ryan’s World on YouTube

Chat GPT

Brian, Dean Jackson and MAS are not affiliated entities.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this episode, Brian Skrobonja breaks down Kamala Harris' proposed tax plan and how it aims to tax unrealized capital gains for the ultra-rich.

He sheds light on how the tax plans will affect all Americans regardless of their income level, what to do if Kamala Harris is elected president, and how taxing unrealized gains could contribute to constant market volatility.

• Brian starts the conversation by breaking down the key elements in Kamala Harris' plan to tax unrealized capital gains for ultra-high-net-worth individuals.
• While proponents argue this would ensure the wealthiest Americans pay their fair share, Brian believes the potential implications warrant careful consideration.
• Brian breaks down the key aspects of Kamala’s proposal and how it could impact investors, businesses, and the overall financial landscape.
• According to a 2020 study, 93% of stock market wealth is held by the top 10% of households. If these individuals face a huge tax bill, they will likely find ways to move out of the market and into more tax-friendly investments.
• Brian explains why money flowing out of the stock market is bad news for all types of investors.
• Brian reveals how taxing unrealized capital gains for the ultra-rich not only affects the super rich, but would impact every household in America.
• By taxing unrealized capital gains annually, the proposal aims to generate additional federal revenue for social programs and debt deficit reductions.
• For Brian, one of the most immediate concerns surrounding this proposal is its potential to significantly increase market volatility.
• The stock market is highly sensitive to changes in tax policy. Introducing a new tax on unrealized gains could create a new layer of uncertainty for investors.
• Another significant concern is how this tax could impact long-term investment strategies.
• According to Brian, the prospect of being taxed on paper gains before those gains are realized could discourage investors from holding on to appreciated assets for extended periods of time.
• Brian talks about the potential for capital flight and how wealthy individuals may choose to move their assets to more tax-friendly jurisdictions.
• The other issue with Harris' plan is learning the values of every asset.
• Brian explains how determining the fair market value of a non-publicly traded asset is a complex and potentially contentious process that could lead to frequent disputes between taxpayers and the IRS.
• Brian explains how taxing unrealized capital gains could potentially stifle entrepreneurship, innovation, and funding for small businesses.
• Another potential consequence of this proposal is the risk of a significant market correction.
• As investors reevaluate their portfolios in light of the new tax regime, there's a case to be made about a broad sell-off, particularly in sectors with a high concentration of unrealized gains.
• While the full impact of taxing unrealized gains remains to be seen, it's clear that such a policy shift could have far-reaching implications for investors, businesses, and the economy as a whole, not just for the ultra-wealthy.
• If Harris wins the White House, we could see investors taking their capital gains before the year ends instead of waiting to see what happens next.
• By working with an experienced team of professionals, you can stay informed and by focusing on your long-term financial goals, you can prepare for whatever changes come your way.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

References for this episode:

https://www.asianinvestor.net/article/market-views-top-3-assets-likely-to-gain-if-harris-wins/498292

https://www.nbcnews.com/business/taxes/harris-plans-tax-unrealized-stock-gains-only-people-100-million-rcna168819

https://www.cnn.com/2024/08/21/investing/kamala-harris-wall-street-relationship/index.html

https://www.kiplinger.com/investing/stocks/stocks-to-buy-for-a-harris-presidency

https://www.investordaily.com.au/markets/55535-what-could-a-harris-presidency-mean-for-markets

https://moneyweek.com/economy/us-election/what-impact-could-kamala-harris-have-on-the-markets

https://www.aljazeera.com/economy/2024/9/11/investors-scramble-to-shift-positions-after-trump-harris-debate

https://www.cnbc.com/2024/09/04/harris-biden-capital-gains-tax-hike-trump-election.html

https://www.axios.com/2024/01/10/wealthy-own-record-share-stock-market

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This show is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency.

The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.

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In this episode, Brian Skrobonja shares tips and insights on how to help protect yourself against identity theft.

He sheds light on the best identity theft tools in the market, what to consider when someone steals your identity, and ways to minimize the risk of your data ending up in the dark web.

• Brian starts the conversation by sharing what he learned as a victim of identity theft and how you can be more prepared if you find yourself in a similar situation.
• The reality is that identity theft continues to be a growing problem and millions of people each year find themselves having to deal with these thieves.
• So this shouldn't be viewed as something that happens to other people. It happens to a lot of people and can happen to you too.
• An important step to help protect yourself against identity theft is to assume it will happen to you at some point and try to be prepared to defend yourself when it does happen.
• Brian explains that we are on our own when it comes to protecting our identity--the police and credit companies are usually of little help.
• According to Brian, one super helpful thing you can do right now is visit credit reporting websites such as Experience or TransUnion.
• These companies can perform searches that go deep into the web and find where your information is posted.
• Your identity is you, and your credit is one of the most valuable assets you have--it's worth taking steps to protect yourself.
• Brian reveals why passwords are by far the most important element for identity protection.
• Passwords are like keys. They are to help keep something of value behind a door. They don't prevent a criminal from getting access, but it makes it more difficult.
• Using strong, complex passwords is one of the simplest ways to protect your accounts. Ideally, every account you have should have a unique password that you can change periodically.
• Brian talks about the two factor authentication. Yes, it can be a little irritating at times, but it’s an excellent tool that adds another layer of security that goes just beyond your password.
• Always shred documents with sensitive information to prevent dumpster diving thieves from getting a hold of crucial details.
• Brian explains what phishing scams are and how they work.
• These scams often involve fake emails or messages that appear to be from legitimate companies asking you to click on a link or provide sensitive information.
• For Brian, even with the best precautions, identity theft can still happen. But being aware of these things can help you not be a victim as easily.
• Once you've identified fraudulent activity, report it immediately. Begin by contacting your bank or credit card issuer to let them know about the suspicion's transactions.
• Brian shares when and how to freeze your credit account.
• Identity theft can be a frustrating experience. And although there's no proven way to prevent it entirely, you don't have to make it easy. It is a risk we all face, but let's not be the low-hanging fruit the thieves are all looking for.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

This information is being provided as a courtesy and is based solely on the hosts personal experience and is not to be considered professional recommendations or an exhaustive list of steps to prevent identity theft. Nothing can entirely prevent your identity from being stolen or used.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This show is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency.

The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.

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Life when you’re gone… an uncomfortable conversation most people prefer to avoid.

Why isn’t that a good idea? How can estate planning help you ensure that things are taken care of once you aren’t around anymore?

Listen to learn about big mistakes people make, the different elements that make up the estate plan puzzle, the three primary areas of cash flow, and the type of plan you should have in place.

• When it comes to end of life financial planning, many people tend to put it off because it’s an uncomfortable conversation to have.
• Even though the process for end of life planning is relatively simple in nature, Brian recommends getting professional help to deal with the details, which can be complex.
• Despite every situation being different, there are several core aspects of estate planning that everyone should consider.
• The first has to do with title and legal work. Brian has noticed that many people have a complete misunderstanding of the role legal work plays within their planning.
• Then, there’s life insurance. Many households rely on two incomes – or people – contributing to the family’s ecosystem.
• Their contribution to the family must be replaced when they’re gone, and that’s where life insurance comes into play.
• Another important, but often overlooked, aspect to an estate plan is budgets and cash flow. Brian doesn’t recommend planning in terms of weeks or months for it… rather, to plan in terms of years.
• “Your cash flow can be broken down into three primary areas,” says Brian. “Reoccurring obligations, irregular obligations, and savings.”
• Debts and investments are an additional area that makes up the estate plan puzzle.
• Brian stresses the importance of cash flow and shares a couple of examples that illustrate its key role.
• End of life planning is a difficult topic to address. Brian’s suggestion is to take steps to protect your loved ones by creating a custom comprehensive plan with the help of professionals.
• After that, the next step is to communicate the plan with your partner and family members – then, enjoy the peace of mind that comes along with knowing you have done everything in your power to provide for your loved ones.

Mentioned in this episode:

BrianSkrobonja.com

Estate Planning Checklist

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Did you know that a good part of American households haven’t thought about retirement planning?

When it comes to planning for retirement, there are some key concepts to understand and three traps you should do your best to avoid.

Listen to learn why a money increase doesn’t always equal a lifestyle enhancement, the three things people often look at but that come back to bite them later on, and how you can effectively plan for retirement and protect your money.

• As life expectancy increases, people will be finding themselves needing to save more money for retirement.
• Brian believes that it’s going to be possible to be retired for as many years as one has worked, because people are living longer than ever before.
• According to a 2019 retirement confidence survey by the Employee Benefit Research Institute, more than half of American households are at risk of running out of money in retirement due to the lack of savings and the unpredictability of the stock market.
• If you look back and think about how much money you were making when you first started working and compare it to today, you should see an increase.
• However, more than a lifestyle enhancement, the increase is just an inflation adjustment. And the crazy thing is that only 42% of Americans have tried to calculate how much money they will need for retirement!
• Brian has noticed that many people go into retirement because of eligibility, without having actually calculated how much money they would need – this is a problem, especially because of three things that are outside of their control: inflation, markets, and taxes.
• To offset inflation, you need to earn more on your money than the inflation rate that is eroding your purchasing power.
• Want to protect yourself from market losses? Then, you either need to not be in the market or work to insulate your portfolio through diversification strategies that are challenging for most people to leverage.
• As far as taxes are concerned, the best way to tackle them would be to focus on building tax-free assets and stop the propensity to kick the “tax can” down the road.
• Even though these may sound like obvious moves, Brian has seen people do the opposite – with things like funding their 401k accounts, parking money in the bank, or pouring it into the stock market.
• Brian warns against tapping into the stock market as a means to draw income because it’s the Government and Wall Street that have control over it, not you.
• There’s a key difference that some people tend to forget when it comes to retirement planning: accumulating money is done one way, drawing income for retirement is done another way.
• Brian stresses the importance of not taking retirement planning lightly.
• Remember: underestimating the amount of money needed to maintain a comfortable lifestyle in retirement, or relying on too many things outside of your control can be a significant financial risk.

Mentioned in this episode:

BrianSkrobonja.com

BrianSkrobonja.com/FamilyOfficeQuiz

Center for Disease Control

Pew Research Center

Employee Benefit Research Institute

Susan Powter

Chat GPT

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clientsor prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Our firm is not permitted to offer and no statement made during this podcast shall constitute tax or legal advice.

Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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You can live without saving money, and you can live with debt, but you cannot live without cash flow. In fact, if you want your personal finance to flourish, cash flow is a key element you need to focus on – passive income too. Why is that the case?

Find out about critical personal financing missteps you should avoid making, what to focus on to measure financial progress and happiness, and the key traits you can learn from the happiest and most successful people to win more in personal finance.

• Just like many other areas of life, personal finance too is dependent on your own tank both from a mental, physical, and resources standpoint.
• Trying to do too much with their resources is one of the most common personal finance missteps people make.
• There’s a tendency of segregating financial goals into silos and of gravitating towards what looks easiest over what is often best – which typically leads to personal finance goals not being achieved.
• Brian believes that the key to maximizing your capabilities should be on building resources, and then creating cash flow from them to fund everything else.
• Passive income plays a crucial role in that it fills your income gap, allowing you to free up your time.
• Brian sees people often getting caught up in their silos and finding themselves beholden to their system of working to spend.
• It’s possible to live without saving money, and with debt, but it’s impossible to live without cash flow.
• How do you measure financial progress? To identify what makes them happy, people often go beyond financial aspects and look at things such as family, friends, faith, fitness, and free time.
• Once you have this aspect figured out, you can either do everything by yourself – with all the risks that this approach entails – or you can delegate.
• In The 7 Habits of Highly Effective People, Stephen Covey explains that the happiest and most successful people have figured out how to buy more time by relying on professionals with the knowledge and experience to help them manage their relationships, health, time, and money.
• Tom Rath, author of Stengths Finder 2.0, has found that successful people tend to leverage strengths and delegate weaknesses. They spend their time on things they’re good at and want to spend their time on, and they delegate the tasks they can gain more time from by not doing them.

Mentioned in this episode:

BrianSkrobonja.com

BrianSkrobonja.com/FamilyOfficeQuiz

Chat GPT

The 7 Habits of Highly Effective People by Stephen Covey

Strengths Finder 2.0 by Tom Rath

This is a replay of "In Financial Planning, Consider Your ‘Fuel Tank of Capability’"

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Emergencies and retirement. This is what we're taught to save for. But what if you created a different system, which allowed you to pay for the expenses you will incur between now and retirement age – without losing the ability to build wealth?

Find out why you may need to rethink your financial planning approach and what you should do about the “Missing Middle.”

• According to popular opinion, sound financial planning advice typically consists of two main steps: saving for emergencies and saving for retirement.
• Brian found this to be slightly misleading because of the phenomenon he refers to as “The Missing Middle.”
• Think about how life generally goes: there are car payments, furniture, credit cards, tuition… you also have money going into an account that you can’t touch until you’re 60 and then, before you know it, you have thousands of dollars of debt. And that’s by following general advice.
• However, opting for a less traditional and more customized approach allows you to pay for the expenses you incur between now and retirement – the middle of your life, without entirely losing the ability to build wealth.
• Brian believes that the real benchmark you’re going to use should be based on your personal needs, goals, and financial situation.
• When there are big expenses people don’t account for in their regular cash flow, one of two things happens.
• People either continually deplete savings in order to pay for the things in cash (constantly funneling money back into their bank account to replenish the emergency fund).
• Alternatively, they finance everything with bank loans and credit cards. Neither option leads to wealth being created.
• Brian is convinced that you should model your entire financial life around your actual life, instead of around arbitrary concepts or ideas that don’t fit into the puzzle of what you’re actually trying to create (Brian calls this Your Life Cycle Model).
• In the Life Cycle Model individuals allocate resources over their lifetime with the aim of avoiding sharp changes in their standard of living, while avoiding debt and simultaneously building wealth.
• Brian explains how using the so-called build banking instead of a traditional bank can help you leverage the Life Cycle Model (and why you shouldn’t compare it to the stock market).
• People tend to separate their money into two buckets: saving and spending. Brian explains why that may not be the best of approaches – and what to do instead.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

How Long Will My Money Last in Retirement

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this episode, Brian Skrobonja breaks down the seven key questions you must ask your advisor before choosing to work with them.

He sheds light on why selecting a financial advisor is crucial for your financial well-being, the benefits of working with an experienced financial advisor, and why you should be wary of financial entertainers.

• How can people find financial advisors who can help them beyond just picking investments?
• Brian goes over seven key areas you must consider before working with an advisor.
• He explains how selecting a financial advisor is a critical decision that can significantly impact your financial future.
• Brian reveals the difference between having an advisor who can help you invest money and one who can assist you in living the best life.
• For Brian, a good financial advisor helps you achieve results, not just in terms of market performance, but by providing actionable steps to move you closer to your desired outcome.
• An advisor's experience is critical in providing sound financial advice--always consider their level of experience and whether they focus on clients like yourself.
• Brian explains how an advisors' licenses can reveal a lot about what they can do for you--regulations require different licenses for various products and services.
• Brian reveals why many advisors choose not to pursue additional certifications.
• An advisor is not just someone who gives advice. They also connect you with other professionals and services.
• Understanding whether an advisor operates independently or within someone else's firm can provide insight into their level of flexibility and the scope of services they may be able to offer you.
• For Brian, it's important to know that it isn't just one thing that makes an advisor good. It's the combination of many factors that benefit you as the client.
• When choosing a financial advisor, consider their area of focus and how it aligns with your financial needs and goals.
• Brian reveals why you should prioritize working with licensed advisors. A person can set up a company, share opinions on money, and even sell books, but not be licensed to offer advice.
• Be very cautious about receiving information from people who claim to be advisors or worse, financial entertainers who don't follow the same compliance requirements.
• Brian talks about the benefits of visiting an advisor’s website. If they lack disclosures, it might indicate that they are either not licensed to provide the services you would expect from them, or they are not following the regulations.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

The Financial Fiduciary Standard Explained - article by Brian Skrobonja

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. The views and opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of Madison Avenue Securities, LLC

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk including the potential loss of principal. Consider your risk tolerance and specific situation before investing.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Carefully read all of the relevant investment product’s offering documents and information before investing. Seriously consider investment suitability by referencing your financial position, investment objectives, and risks profile before making any investment decision.

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

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In this episode, Brian Skrobonja goes over the three main retirement mindsets that could negatively impact your retirement plans.

He sheds light on what most retirees get wrong about retirement planning, why being confident doesn’t eliminate investment risks, and what to consider when hiring a financial planner.

• Brian goes over three retirement mindsets that have the potential to derail even the best-laid retirement plans.
• He starts by explaining that there is more to the conversation around retirement than just having a permanent vacation.
• Retirement is not a destination; it’s a transition into a new stage of life.
• The different mindsets you need when saving money and growing a nest egg versus spending and withdrawing money from your retirement accounts.
• Mindset #1 - The Idea That Annuities Are Bad.
  • For Brian, retirement is about having a steady stream of income you can rely on no matter what Wall Street throws your way.
  • Brian reveals that most retirees want consistency and predictability in retirement--they want to know exactly how much money they have coming in each month.
  • Annuities are designed specifically to deliver this predictability and remove guesswork out of producing income for retirement.
  • Remember, stock market risks are real and they don’t disappear just because an investor is optimistic about what could potentially happen.
• Mindset #2 - The idea of the status quo of the stock market in retirement.
  • Some people believe that a well-diversified portfolio will predictably turn out enough profit to sustain them throughout retirement.
  • According to Brian, what is missing from this ideology is that the market doesn't go up in a straight line. If you experience a 50% loss, 50% in earnings will not get you back to even; you need 100%. And if you're making withdrawals, that only compounds the problem.
  • Brian reveals why the stock market is a great tool for wealth creation--but only if you allow the money to grow and aren't making withdrawals for income purposes.
• Mindset #3 - Fee anchoring.
  • What is a fee anchor? It's the amount someone has in their mind for what they should pay for financial related advice.
  • When considering a fee for an advisor, it's important to understand that it’s less about the fee and more about what you're getting in return.
  • A fee is only an issue when there is a vacuum of value.
  • For Brian, if you try to get an advisor to cut their fees, the more experienced and valued advisors will not take you as a client.
  • Brian explains why finding the right advisor can be invaluable, especially when it comes to navigating complex financial products like annuities, private markets, or selling a business.
  • Fees are important and you should understand them, but Brian encourages people to not use them as the primary consideration for making a decision.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. The views and opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of Madison Avenue Securities, LLC

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk including the potential loss of principal. Consider your risk tolerance and specific situation before investing.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Carefully read all of the relevant investment product’s offering documents and information before investing. Seriously consider investment suitability by referencing your financial position, investment objectives, and risks profile before making any investment decision.

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

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In this episode, Brian Skrobonja explains what alternative investments are and why they are the fastest route to growing your assets or retirement savings.

He sheds light on how the most successful investors in the world keep getting wealthier and how to use an endowment like strategy to position your retirement assets.

• Brian explores alternative investments opportunities.
• He goes over what larger investors are doing to diversify away from the public market in an effort to help clients protect downside risks.
• The shift in investment philosophy amongst the largest investors is something to pay attention to as it could offer valuable insights on how to position your retirement assets.
• Brian explains why it's prudent for investors to adopt an endowment like model.
• The wealthiest and most successful investors in the world keep getting wealthier, not because they are lucky or privileged, but because they are playing a different game than the average investor.
• According to Brian, with medical advancements extending life beyond what we have seen in the past, we are entering a longevity dilemma as people may find themselves living longer than their assets.
• For Brian, the traditional retirement age tied to social security eligibility has longevity implications that are being overlooked.
• The 4% rule suggests you can safely withdraw 4% of your retirement savings annually with the assumption that the balance in your account will sustain you for 30 years.
• Brian shares why he believes the 4% rule is not sustainable in the modern age.
• There's risk with any type of investment and alternatives are no exception.
• Brian talks about portfolio diversification and why we need to expand the definition of diversification.
• Brian talks about alternative investments and why you should consider having a portion of your savings in private equity, private debt, real estate trusts, and even oil and gas.
• For Brian, the stock market may be a core component of a portfolio, but it cannot be the only holding.
• Should investors get out of public markets entirely?
• According to Brian, investors should not get out of the market entirely, but should acknowledge that there are many investment opportunities that are far better than the stock market.
• We are seeing the world change before our eyes. The way we invest today needs to be forward looking to consider the changes that are underway.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

References for this episode:

kiplinger.com/article/investing/t047-c032-s014-to-succeed-at-investing-do-what-yale-does.html

brianskrobonja.com/podcasts/posts/ep-52-strategically-separating-your-assets-with-the-five-minute-retirement-plan/

prudential.com/financial-education/4-percent-rule-retirement#:~:text=The%204%25%20rule%20comes%20with,close%20to%20covering%20your%20needs.

wsj.com/finance/investing/pension-funds-stocks-bonds-679b8536

imf.org/external/pubs/ft/wp/2000/wp0018.pdf

weforum.org/agenda/2022/04/longer-healthier-lives-everyone/

nmhc.org/industry-topics/affordable-housing/apartment-supply-shortage/

sealynet.com/news/sealy-company-small-industrial-spaces/

nationalaffairs.com/publications/detail/inflation-and-debt

nasdaq.com/articles/revisiting-the-classic-60-40-portfolio-as-challenges-loom

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. The views and opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of Madison Avenue Securities, LLC

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk including the potential loss of principal. Consider your risk tolerance and specific situation before investing.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Carefully read all of the relevant investment product’s offering documents and information before investing. Seriously consider investment suitability by referencing your financial position, investment objectives, and risks profile before making any investment decision.

Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets. Endowment funds are managed for institutions not individuals. An endowment-like strategy is not an endowment or an endowment fund.

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In this episode, Brian Skrobonja answers the top questions he receives from people looking for help with their financial plan.

He sheds light on why a plan is more than just picking stocks, what most people get wrong about passive income, and the benefits of knowing how much tax liability you’ll have in the future.

• Brian answers the top questions he receives from people looking for financial planning assistance.
• He starts by explaining why a financial plan is more than just picking a few stocks or bonds.
• Unfortunately, there are many situations where products are being sold instead of financial plans being developed. For example, an annuity salesperson sells an annuity to somebody and suggests that the product is the retirement plan.
• So, what does a good financial plan look like?
• According to Brian, the first step is defining what success looks like. Growing your money is not a goal. You must understand and clearly know why you are saving money.
• The other question Brian gets asked a lot is about passive income--what it is and why it’s important.
• Passive income is income that is generated from an asset; it’s not cash in hand from selling an asset. For Brian, a retirement income plan cannot exist without passive income.
• Next is knowing how much future tax liability you have. The question here is what will you do to mitigate those taxes and what strategy do you have in place right now to reduce what taxes you owe right now?
• The other big question you must address when building a financial plan is the dangers you will face now and in the future.
• Life doesn't run in a positive straight line. We have to consider health challenges, an unforeseen death, market declines, and other scenarios that can disrupt your plans.
• The unique approach that Brian and his firm take is that they are more interested in knowing what clients want in life, than following a process to try to flush out the problems that could potentially disrupt those plans, and find solutions to satisfy those things.
• According to Brian, a plan has little to do with products and everything to do with what you want and how you can make that happen.
• Brian reveals the amount people have to pay to access his services and why he settled on that particular figure.
• He also breaks down the definition of a professional--they get paid for their knowledge and ability to help you.
• If someone is working for free, you have to ask what value is being delivered and what is their motivation for offering a free service.
• Cost is only an issue when there's an absence of value and any fee without value is too high.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation.

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In this episode, Brian Skrobonja breaks down a simple framework everyone can follow to build and multiply wealth.

He sheds light on what most people get wrong about wealth building, the benefits of having multiple appreciating assets, and how wealthy people use other people’s money to build wealth.

• Brian goes over a simple framework for multiplying and sustaining wealth--the same framework he uses to build and scale his business.
• Brian reveals the rhythm to building wealth: Accumulate money, build assets, create passive income, then repeat.
• Brian breaks down the two main schools of thought about money: Lateral compounding growth and exponential growth through multiplication. The sooner you understand the differences, the faster you can choose your path and move forward.
• Brian uses the financial journeys of two fictional characters, Mark and Luke, to explain what people get wrong about building wealth.
• Mark adheres to a traditional approach to money focusing on compounding while Luke employs an out-of-the-box strategy emphasizing multiplication to build his wealth.
• While Mark’s strategy relies on steady growth through compounding, Luke’s multiplication strategy demonstrates the potential of using real assets to create wealth.
• According to Brian, investing is all about taking advantage of opportunities as they are presented.
• Brian emphasizes the benefits of having multiple appreciating assets and how to use them to generate passive income in retirement.
• What everybody needs to understand about real estate: the value of a house will always appreciate regardless of whether it has a mortgage.
• The loan has nothing to do with the house’s value or the asset’s appreciation. The house is an asset and will appreciate the same whether it has a loan or not.
• Brian reveals how the wealthiest people in the world use other people’s money to build and multiply their wealth.
• Brian talks about the benefits of recognizing that things need to change. The sooner you recognize that things need to change, the faster you can begin to forge that new path.
• The benefit of learning from other people’s experiences and avoiding the mistakes they made.
• Without knowing how to use what you’ve learned effectively, it amounts to nothing more than dinner conversation.
• For Brian, successful people are consistently successful because they are eager to learn and have a true desire to uncover their own blindspots.
• Always remember that there are inherent risks with all types of investing.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Who Not How: The Formula to Achieve Bigger Goals Through Accelerating Teamwork by Dan Sullivan and Benjamin Hardy

References for this episode:

https://www.reddit.com/r/Bogleheads/comments/1bj16az/what_are_normal_stock_returns_ben_felix_over_the/?rdt=52271

https://www.investopedia.com/ask/answers/052015/which-has-performed-better-historically-stock-market-or-real-estate.asp

https://skrobonjafinancialgroupllc.sharefile.com/public/share/web-s9eba7b5a422a4447ac6b5ffad96742ce

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. The views and opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of Madison Avenue Securities, LLC

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk including the potential loss of principal. Consider your risk tolerance and specific situation before investing.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Carefully read all of the relevant investment product’s offering documents and information before investing. Seriously consider investment suitability by referencing your financial position, investment objectives, and risks profile before making any investment decision.

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

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In this episode, Brian Skrobonja breaks down ways to save, grow, and invest your money.

He sheds light on what a well-diversified portfolio looks like, the true definition of financial freedom, and why you need different mindsets for spending versus investing money.

• We all want the same thing when it comes to money--we all desire to make money, grow money, and use the money that we have.
• However, most people have a belief system that is rooted strictly on growing money--which, on some level, makes sense. But this singular focus leaves out the idea of using money.
• Why is this important? Because how we grow money is not the same as how we spend money. Growing money and using money require different approaches and different ways of thinking.
• Brian reveals that many people spend money wrong. This is not about what people spend money on, but the source of the income being spent.
• If you earn a dollar and spend it, it's gone forever. If you earn a dollar and invest it for income, you potentially have income for life.
• Brian explains why it makes more sense to spend the money your investments earn versus spending the money you earn directly.
• Why is this important? If you want to grow your wealth over time, you should find ways to hang on to as much money as possible.
• What is the difference between making and growing money?
• Brian breaks down a brilliant way to use other people’s money to access cash while your money continues to grow.
• The definition of passive income and the benefits of making money with little to no effort.
• Better ways to generate income other than the stock market. Brian explains why the stock market is great for growing money, but it’s not the best option for generating recurring income.
• Ideally, you want to position assets so you have a tax-free, passive income to live on. You need to have the ability to spend money with uninterrupted growth while simultaneously investing long-term.
• Financial freedom is defined by how much passive income you are generating.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation.

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In this episode, Brian Skrobonja sheds light on the complex and often overwhelming process of managing an estate after the loss of a loved one. This is a step-by-step guide from the initial steps you need to take after a loved one passes, to the intricate details of settling an estate.

Brian offers valuable advice and practical tips to navigate this difficult time with grace and efficiency.

• Having a clearly defined process in place for managing an estate can help avoid the emotional drain of making important decisions through the loss of a loved one.
• Friends and family may wish well and provide advice on what to do, but without a proper plan in place, that can lead to more financial problems in the future.
• Setting expectations for yourself and the beneficiaries of the estate is a great first step to help minimize the confusion and questions around how long it will take to settle an estate. This process can take anywhere from two months to several years depending on the type of assets that are owned and the size and complexity of the estate.
• A funeral home director will often help obtain death certificates, which will be required before making any claims. It’s a good idea to request 10 to 12 original documents because, once submitted, you may not get them back.
• It's important to first locate the deceased’s will, trust, or other estate documents they have on file. If none of these exist, you could have difficulty settling a person's estate which will most likely require an attorney to assist you through the probate process.
• Check to determine if the person may have left a letter of instruction behind as well. A letter of instruction is not a legal document, but it's a letter that can provide more personal intentions and information regarding an estate.
• The next step is to begin gathering an itemized list of all known financial institutions where money is held and life insurance companies for filing a claim. It's a good idea to put the list together before jumping into making calls because you'll want to keep track of phone conversations and other instructions.
• Tip: A really good practice is to keep a journal or Excel spreadsheet of all the conversations to keep track of everything. You'll want to avoid writing on the back of envelopes or scrap pieces of paper as that can become really unmanageable.
• Checks made out to the deceased will require a bank account to deposit them. Avoid closing bank accounts too early because of this.
• You will have to notify Social Security that a death has occurred as well as any pension provider to have payments stopped and any eligible benefits paid to the estate.
• If your loved one served in the military, you may be eligible for veterans benefits. You can get more information about these benefits by visiting va.gov.
• Over the next one to three months, you will want to screen incoming mail, both physical and email, to look for and gather bills, statements, and notices relating to various types of accounts and insurance policies. You will want to review credit card statements to identify subscriptions or other recurring charges to follow up with the service providers about cancellation.
• Next, notify creditors and credit card companies that were a part of your loved ones credit history. You can notify the big three credit bureaus; Experian, Equifax, and TransUnion, of their passing, which can usually be done online over the phone or by letter.
• You will also want to locate where they filed important documents to find deeds, titles to real estate, car titles, or lease agreements as well as storage space keys and account records.
• Look for a computer file or printout with digital account passwords so you can disable any active social media accounts.
• If the person was still working, contact the human resources office at their place of work to inform them of what has happened, the HR officer may need you to fill out some paperwork pertaining to retirement plans, health benefits and compensation for unused vacation time.
• If your loved one owned a small business or professional practice, a discussion with business partners and clients may be necessary as well as consulting with the company attorney who has advised the business.
• If there was a child in college, it may be a good idea to contact the Financial Aid Office to inform them of what has happened. Depending on the school and the financial situation the surviving child may qualify for more assistance.
• Before rushing into this process, you should consider speaking with a financial advisor and attorney. There are so many areas where you can make expensive mistakes, working with a professional through this difficult time is usually the best decision.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

va.gov

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

The appearances in Kiplinger were obtained through a PR program. The columnist is not affiliated with, nor endorsed by Kiplinger. Kiplinger did not compensate the columnist in any way.

Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation.

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In this milestone 100th episode of the Common Sense Financial Podcast, host Brian Skrobonja delves into the critical topic of managing taxes in retirement. The episode focuses on strategies for minimizing tax liabilities, especially for retirees with tax-deferred accounts facing potential hefty tax bills.

Brian emphasizes the importance of sustainable income creation during retirement and the role of tax optimization in this process.

• Most people envision their retirement to be built from predominantly tax-free income, but after many years of deferring taxes, retirees are facing a sizable tax bill on distributions taken from their retirement accounts that could be a third or more of what has been accumulated.
• When you’re saving for retirement, growth of your assets is the priority. But many people don’t realize that once they retire that’s no longer true. The priority is actually creating sustainable income to support you through retirement while minimizing taxes.
• A common issue I’ve seen is future retirees knowing they will owe taxes on their deferred accounts, but not realizing the extent of the problem since the rules change once they retire.
• Many retirees we work with tend to have the same income goals in retirement, yet with fewer deductions. They no longer have children or mortgage interest to help them offset their tax burdens, which makes the situation more complex.
• Delaying distributions isn’t an option either. Required Minimum Distributions will eventually force your hand.
• There are two tax problems facing retirees: taxes you will have to contend with today, and taxes that you will have to contend with in the future.
• With the national deficit continuing to rise, do you expect tax rates to go down in the future or go up? The most likely answer is that tax rates are on the rise, so we should be planning accordingly.
• There are two possibilities to help minimize the level at which you participate in paying your fair share towards the government's future revenue increases. You can either complete a Roth conversion or through tax deferred withdrawals contribute to an overfunded permanent life insurance policy.
• Making the decision of which strategy to implement is the easy part. The trick really is completing this process with minimal tax liabilities, which requires specialized knowledge.
• The progressive nature of the code makes understanding your tax burden complicated and miscalculating this could result in having a larger tax liability than anticipated.
• Depending on your income level, a taxable distribution can subject your Social Security to additional taxes. This is a separate calculation from the income tax brackets and uses a two step process to determine how much of your social security will be subject to taxation.
• This is important to know because a taxable distribution may not only push you into a higher income tax bracket, but it could trigger additional taxes on your social security, which could result in a higher effective rate.
• You should also be aware of the impact a taxable distribution can have on Medicare premiums. The impact of any possible premium increase is typically delayed by two years. This is one of those things that often comes as a surprise when people make decisions about distributions.
• The antidote to taxable income is deductions, credits and losses which can help reduce the net income subject to tax. There are a few options that can help offset the burden of taxes and make the transition from tax-deferred to tax-free easier, but they don’t work for everyone, which is why we recommend working with a professional.
• The first thing is a donor advised fund or DAF. This allows you to contribute future charitable donations into a fund that you control when distributions are made that can also receive the tax benefit of the donation in the year you make the contribution into the fund. By making multiple years of donations in a single year into that fund, you have the potential of helping offset a taxable distribution from your retirement account in that year.
• The second is a Charitable Remainder Trust (CRT), where you can contribute future charitable donations into the trust and receive the tax benefit of the donation in the year you make the contribution. You can also receive income from the trust while you're living within IRS limits. A CRT is a more complex arrangement than a DAF with many options and requires an attorney to draft the trust.
• The third is a qualified charitable donation or QCD, which allows for anyone over the age of 70 and a half to make a direct donation from a qualified account to a charity.
• The fourth is something known as IDCs, or intangible drilling costs, which allows accredited investors to participate in the drilling expenses of an oil and gas company that could provide reportable tax losses that can help offset all forms of income, as well as the potential for cash flow back to the investor once the wells are operational.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Brian's article - From Tax-Deferred to Tax-Free: Navigating Taxes in Retirement

References for this episode:

https://www.usdebtclock.org/

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024

https://www.ssa.gov/benefits/retirement/planner/taxes.html

https://www.ssa.gov/benefits/medicare/medicare-premiums.html#anchor5

https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions

https://www.irs.gov/charities-non-profits/charitable-remainder-trusts

https://www.irs.gov/newsroom/qualified-charitable-distributions-allow-eligible-ira-owners-up-to-100000-in-tax-free-gifts-to-charity

https://www.investopedia.com/terms/i/intangible-drilling-costs.asp

https://www.crfb.org/blogs/tax-break-down-intangible-drilling-costs

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

A ROTH Conversion is a taxable event. Consult your tax advisor regarding your situation.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

Donor Advised Funds represent an irrevocable gift of assets from the donor to the fund. Contributions made to the fund are irrevocable and cannot be returned or used for any other individual or used for any purpose other than grant making to charities. The gift is not an investment or a security. When evaluating a contribution to the fund, carefully consider the terms and conditions, limitations, charges, and expenses. Depending on the tax filing status, DAF contributions may or may not be tax deductible.

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In this podcast episode, Brian Skrobonja takes us on a thought-provoking journey through the evolving concept of retirement. As we dive into the past, present, and future of retirement, Brian helps us unravel the complexities of this modern-day concept which, though deeply ingrained in our society, is relatively new in human history.

This episode is essential for anyone planning for retirement, offering a fresh perspective on how to approach this significant life stage in the context of rapid societal shifts, economic developments, and increasing human longevity.

• We start off by exploring the concept of retirement and its transformation from ancient societies to the modern era.
• The Industrial Revolution marked a significant shift from agrarian societies to industrial ones, influencing how people viewed work and retirement. It even shaped the way that families and communities lived together.
• The change in how work was done over the centuries resulted in the creation of a retirement system based on pensions, which was the precursor to modern-day retirement benefits.
• In the 1900’s, Social Security was introduced which shifted the responsibility from families and communities onto the government.
• In a relatively short period of time, the concept of retirement has changed drastically, and the pace of change is continuing to accelerate. Based on the way technology and healthcare are developing, it’s very likely that retirement will look very different in the future as well.
• As the Baby Boomer generation progresses toward retirement, it will put tremendous strain on programs like Social Security and Medicare due to a considerably lower worker-to-retiree ratio than ever before in history.
• The programs and retirement paradigm will change, similar to the way that pensions underwent change. Pensions used to be the default vehicle for retirement but have become scarce and relegated, mainly for those with government jobs.
• According to the Social Security Administration, benefits are projected to run negative by 2033. And according to the Congressional Budget Office, the national debt is projected to reach $52 trillion in 2033.
• Life expectancy also continues to rise, which puts pressure on the current retirement paradigm from another angle. With new breakthroughs in human longevity, the concept of retirement will have to adapt.
• Retirement was once considered a necessary transition when a person was no longer productive in their work and had a short life expectancy once retired. Today, people retire when they're still fully capable of working. That reality is widening the chasm between the number of workers and retirees, as well as the financial resources needed to sustain retirement for longer periods of time.
• Retirement needs to be redefined, since the reality of shorter lifespans is no longer the case for most people.
• There are three factors that contribute to success in retirement.
• The first is contribution. The longer you contribute, the better. Perhaps redefining expectations after the age of 60 and looking toward a second half of life with a meaningful career or business may be called for.
• The second is prevention. The longer your retirement is, the more risks are amplified and can have a significant impact. Finding ways to move things into your control helps prevent unforeseen problems that put your retirement at risk. Examples of this include: insurance, annuities, and tax-free investments.
• The third is delegation. Retirement planning is a team sport. You can delegate the heavy lifting of a retirement plan to financial advisors, attorneys, insurance agents and CPAs and then use that collective wisdom to implement the actual plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

References for this episode:

https://www.washingtonpost.com/technology/interactive/2023/aging-america-retirees-workforce-economy/

https://www.ssa.gov/OACT/TRSUM/index.html

https://www.cbo.gov/publication/58946

https://www.econlib.org/library/Enc/IndustrialRevolutionandtheStandardofLiving.html#:~:text=On%20the%20other%20hand%2C%20according,come%2C%20it%20was%20nevertheless%20substantial

https://www.ssa.gov/history/lifeexpect.html#:~:text=Life%20expectancy%20at%20birth%20in,and%20paid%20into%20Social%20Security

https://www.macrotrends.net/countries/USA/united-states/life-expectancy#:~:text=The%20current%20life%20expectancy%20for,a%200.08%25%20increase%20from%202020

https://www.diamandis.com/blog/mark-hyman

https://www.kiplinger.com/taxes/what-to-do-before-tax-cuts-and-jobs-act-tcja-provisions-sunset

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Our firm is not affiliated with or endorsed by any government agency.

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In this episode, Brian Skrobonja goes over the three main retirement mindsets that could negatively impact your retirement plans.

He sheds light on what most retirees get wrong about retirement planning, why being confident doesn’t eliminate investment risks, and what to consider when hiring a financial planner.

• Brian goes over three retirement mindsets that have the potential to derail even the best-laid retirement plans.
• He starts by explaining that there is more to the conversation around retirement than just having a permanent vacation.
• Retirement is not a destination; it’s a transition into a new stage of life.
• The different mindsets you need when saving money and growing a nest egg versus spending and withdrawing money from your retirement accounts.
• Mindset #1 - The Idea That Annuities Are Bad.
  • For Brian, retirement is about having a steady stream of income you can rely on no matter what Wall Street throws your way.
  • Brian reveals that most retirees want consistency and predictability in retirement--they want to know exactly how much money they have coming in each month.
  • Annuities are designed specifically to deliver this predictability and remove guesswork out of producing income for retirement.
  • Remember, stock market risks are real and they don’t disappear just because an investor is optimistic about what could potentially happen.
• Mindset #2 - The idea of the status quo of the stock market in retirement.
  • Some people believe that a well-diversified portfolio will predictably turn out enough profit to sustain them throughout retirement.
  • According to Brian, what is missing from this ideology is that the market doesn't go up in a straight line. If you experience a 50% loss, 50% in earnings will not get you back to even; you need 100%. And if you're making withdrawals, that only compounds the problem.
  • Brian reveals why the stock market is a great tool for wealth creation--but only if you allow the money to grow and aren't making withdrawals for income purposes.
• Mindset #3 - Fee anchoring.
  • What is a fee anchor? It's the amount someone has in their mind for what they should pay for financial related advice.
  • When considering a fee for an advisor, it's important to understand that it’s less about the fee and more about what you're getting in return.
  • A fee is only an issue when there is a vacuum of value.
  • For Brian, if you try to get an advisor to cut their fees, the more experienced and valued advisors will not take you as a client.
  • Brian explains why finding the right advisor can be invaluable, especially when it comes to navigating complex financial products like annuities, private markets, or selling a business.
  • Fees are important and you should understand them, but Brian encourages people to not use them as the primary consideration for making a decision.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. The views and opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of Madison Avenue Securities, LLC

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk including the potential loss of principal. Consider your risk tolerance and specific situation before investing.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Carefully read all of the relevant investment product’s offering documents and information before investing. Seriously consider investment suitability by referencing your financial position, investment objectives, and risks profile before making any investment decision.

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

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In this podcast episode, Brian shares his remarkable journey from his parents' middle-class immigrant background to achieving financial freedom through decades of learning and building businesses.

He recounts his early aspiration for an opulent lifestyle and the pivotal moment when he realized the importance of creating income-producing assets. Through content creation, including three books and the Common Sense Financial Podcast, Brian's financial wisdom and expertise have garnered recognition and awards, providing valuable insights into wealth, financial freedom, and the pursuit of life's true riches.

Join us as we explore Brian's wealth-building principles, the significance of faith, family, and relationships, and the pursuit of genuine financial freedom.

• It was over 30 years ago when Brian got started in business and he’s spent this time building his knowledge while building teams and companies.
• Brian begins by telling the story of his parents and how they came over from Croatia and lived a middle-class life.
• His father worked evenings and weekends as a lab engineer while also running a business on the side. His work ethic greatly inspired Brian as he grew up.
• As a teen, he always dreamed of having expensive things, but his only model for getting that done involved trading time for money, which is exactly what he did throughout his early 20’s. This led to him working harder to keep up with his increasingly expensive lifestyle.
• After doing it wrong for years, Brian had an epiphany where he realized he needed to create income-producing assets that would pay for his lifestyle.
• He set out to create a passive income stream to support his lifestyle and successfully accomplished it. That’s when his focus for what he was really trying to do for his clients came into clarity.
• Brian began producing content back in 2010. And out of that came three books: Common Sense, Generational Planning, and Retirement Planning, which can all be found on Amazon.
• This led to the beginning of the Common Sense Financial Podcast, which has since been recognized by Forbes as a top 10 podcast by financial advisors. Brian also became a regular contributor for Kiplinger magazine locally in St. Louis. He’s gone on to win numerous awards for his work.
• After 30 years of helping clients create the passive income they need to create real financial freedom, Brian regularly hears clients say that his process has really opened their eyes about how money works and how to think about wealth.
• In his personal life, Brian has been married to his wife Carrie for 30 years and has three kids, who have also grown up and had families of their own.
• Throughout their lives, Brian and his wife have taught their children two main things. First, most importantly, for them to pursue a close personal relationship with Jesus Christ and to live out their faith in their daily walk. Second to that, is to understand that a worthy pursuit in life is the things money can't buy: building relationships, investing, and creating memories and experiences with people that you love.
• A key lesson that took Brian a long time to figure out is that the pursuit of things never brings satisfaction.
• Real wealth is not found in things but in the freedom to live your life free from having to work for a paycheck or trade your time for money, which is another lesson he tries to impart to his kids as well as his clients.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

SkrobonjaFinancial.com

SkrobonjaWealth.com

BuildBanking.com

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

Generational Planning by Brian Skrobonja

Retirement Planning: Have A Plan So You Can Live Your Life by Brian Skrobonja

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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In this episode we talk about the importance of using key performance indicators beyond just investment performance to gauge the health of one's retirement plan.

There are five crucial data points that form the foundation of a successful retirement strategy: passive income, effective tax rate, cash flow ratio, banking capacity, and horizontal asset allocation. By focusing on these metrics, you can adopt a comprehensive approach to retirement planning that factors in various financial variables and bridges the gaps in your financial plan.

• Business owners use KPIs or key performance indicators to track and understand the health of their business and marketing efforts. Those planning for retirement should consider their retirement KPIs to help measure the health of their financial situation.
• People often make the mistake of substituting investment performance for more meaningful key performance indicators. ROI is not the only KPI you should be paying attention to.
• People often view their finances in silos and tend to make standalone decisions about what to do while leaving out other important variables concerning their situation, which can result in having gaps in their overall retirement plan design.
• For example, the stock market can go down, but that doesn’t necessarily mean your plan should change. The flipside is also true: the market may be up, but that could mean you need to make adjustments.
• Knowing what KPIs to use and how to use them can help measure the health of your overall financial situation, not just track portfolio performance.
• A KPI is simply a collection of data points that helps provide a consistent method for measuring and monitoring the health of your retirement plan.
• In my experience, there are five key data points needed to measure the effectiveness of a retirement plan.
• The first is passive income.
  • Income is an obvious component and the central theme of a retirement plan.
  • Income is not growth of a share or unit of a particular investment. It is the income generated from the share or unit of an investment.
  • If there is a retirement income gap of $5,000 each month, the goal of the retirement plan is to not simply cash out investments each month or spend down savings to meet the goal. It is to create passive income sources that can consistently provide the cash flow.
  • Missing this point can be catastrophic to the longevity of a retirement plan.
• The second is the effective tax rate.
  • Tax rates in the United States of America are progressive. The more you make, the higher the marginal rate is on portions of your income. Marginal rates have their place when filing a return or making decisions about asset positioning.
  • The effective tax rate is a single rate that's calculated using the total taxes that are paid against the gross income. This percentage gives us a better overall understanding of the impact taxes are having on retirement income.
  • If the retirement income gap is $5,000 each month and the effective tax rate is 30%, we can determine the additional amount of income required to cover the tax liabilities.
  • The more tax mitigation techniques you incorporate into a retirement plan, the less pressure there is on your assets to generate additional income just to pay the tax.
• The third is cash flow ratio.
  • People often define cash flow too narrowly and often exclude things like taxes, retirement savings and health insurance premiums, which leaves gaps in understanding.
  • It is also important to know the ratio of income to bank payments, taxes, savings insurance, as well as fixed and variable expenses.
  • It’s also important to know the earned income versus passive income ratio along with the number of different income sources you rely on to fund your lifestyle.
• The fourth is your banking capacity.
  • When it comes to asset allocation, there is often the out-of-the-box structure where assets are divided up between investments and bank accounts. This approach oversimplifies a more complex situation and overlooks the realities of life and how people actually use and spend money.
  • There are many factors to consider outside of just growing assets and covering emergencies, such as big ticket purchases and other family needs, that could benefit from incorporating a family bank into the financial plan.
  • A family bank, aka Build Banking, is a specially designed life insurance contract that enables a family to have banking capabilities within their own financial ecosystem without relying on an actual bank outside of their financial situation.
  • This piece is usually missing from most retirement plans.
• The fifth is horizontal asset allocation.
  • Most people think of diversification as a vertical landscape of public market investments such as stocks, bonds, and mutual funds or ETFs, but that’s the wrong idea.
  • Asset allocation is similar to gardening. It requires diversity in many different forms to help manage growth, produce income, minimize risk and mitigate taxes.
  • Adding things such as real estate businesses, private equity, life insurance, annuities, amongst other things, can provide characteristics and other elements of stability to help support a retirement plan.
• To develop a retirement plan, you must first identify the gaps in your existing situation, and then begin to work out on strategies to help fill those gaps. Having a way to measure passive income tax exposure, cashflow, asset allocation, and your baking capacity are the most important metrics to start with.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/thegapreportstart

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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In this episode on Certificates of Deposit (CDs) as investments, we talk about the nuanced decision-making involved in purchasing CDs and whether or not CDs are good investments, particularly in a rising interest rate environment, and we explain why interest rates are the only factor you need to consider.

Wealth creation isn't solely dependent on CD rates, and we need to consider the impact of inflation and interest rates to gain a comprehensive financial perspective. The episode also explores how government strategies to combat inflation by adjusting interest rates impact not only investors, but also shape the attractiveness of CDs as an investment option.

• In a rising interest rate environment, buying CDs may seem like a good idea but it depends on your needs and goals.
• Wealth isn't created by buying a CD based on a rate. It's created by understanding why the rate may not be all that important.
• Banks look at what is known as the federal funds rate, also known as a benchmark rate. This is the rate banks charge one another to borrow money overnight that's needed to maintain reserve requirements.
• Upstream in the decision making process is the Federal Open Market Committee or FOMC, who meet throughout the year to discuss and set monetary policy. Within these policies, rates are set and typically linked to inflation.
• When those rates are set, banks may adjust rates on loans, deposits and certificates of deposit. But just like any business, banks will adjust rates to compete in their market as they seek to cover their costs and maintain a profit.
• CDs specifically are an attractive tool for banks, because unlike a deposit account, CDs actually lock up customers with a maturity date, which gives banks better control of their cash flow. The higher rates draw in customers seeking to maximize their returns.
• Rates on CDs matter, but not as much when you factor in inflation and interest rates. If inflation is at 7% and interest rates are at 5%, the net is 2%. The same is true if inflation is at 0% and interest rates are at 2%. You have to look at both numbers to get a full picture.
• When you consider the gridlock within the housing market and the amount of debt our government holds, it's hard to believe rates can remain elevated over the long term. The government is desperately trying to combat inflation by raising rates.
• These higher rates not only impact consumers, but they also impact the government. According to the Congressional Budget Office, or CBO, in June of 2023, they projected that annual net interest costs on the federal debt would total $663 billion in 2023 and almost double over the next decade. Interest payments would total around $71 trillion over the next 30 years, taking up to 35% of all federal revenue by 2053.
• These numbers are impacted by interest rates and with lower rates come lower interest payments, so the government has reasons to see rates lower than they currently are.
• The question is: Does it make sense to lock in CD rates while rates are high? It depends. If you have money sitting in a bank account that you don't need and the CD rate is offering a higher rate than your savings, then it might be a good option.
• A good idea is to compare CD rates to other options like fixed annuities and money markets since they share some similarities but also have a few key differences that could make one choice better for your situation.
• Certificates of Deposit are offered by banks as a savings account that offers a fixed interest rate over a specified period of time, ranging from one month up to five years. They carry penalties if funds are removed before maturity, and they're FDIC insured up to $250,000.
• Fixed Rate annuities are issued by insurance companies and are financial products that offer a fixed interest rate over a specified period of time. Early withdrawals can incur a penalty, and interest earnings are tax deferred until you start taking distributions. The guarantees are backed by the claims paying ability of the insurance company and are insured by what is known as the State Guarantee Association.
• Money markets are funds issued by financial institutions that are backed by highly liquid short maturity investments. Maturities usually range from overnight to just under a year, and assets can be quickly converted to cash with minimal loss of value. They are generally considered more risky than a bank, CD or insurance company annuity, and the underlying investments include such things as treasury bills, commercial paper and CDs.
• While CDs offer the safety of fixed returns, they are not devoid of risks and limitations. It's essential to understand both the micro and macro economic factors that affect CD rates before diving in.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

“What to Know About How Banks Work”

The State Guaranty Association

References for this episode:

https://www.pbs.org/newshour/economy/americans-faith-in-banks-hit-low-after-failures-says-ap-norc-poll

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

https://fortune.com/recommends/banking/will-cd-rates-go-up

https://www.usbank.com/investing/financial-perspectives/market-news/federal-reserve-tapering-asset-purchases.html

https://www.pgpf.org/analysis/2023/07/higher-interest-rates-will-raise-interest-costs-on-the-national-debt

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

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In this episode, Brian Skrobonja explains what alternative investments are and why they are the fastest route to growing your assets or retirement savings.

He sheds light on how the most successful investors in the world keep getting wealthier and how to use an endowment like strategy to position your retirement assets.

• Brian explores alternative investments opportunities.
• He goes over what larger investors are doing to diversify away from the public market in an effort to help clients protect downside risks.
• The shift in investment philosophy amongst the largest investors is something to pay attention to as it could offer valuable insights on how to position your retirement assets.
• Brian explains why it's prudent for investors to adopt an endowment like model.
• The wealthiest and most successful investors in the world keep getting wealthier, not because they are lucky or privileged, but because they are playing a different game than the average investor.
• According to Brian, with medical advancements extending life beyond what we have seen in the past, we are entering a longevity dilemma as people may find themselves living longer than their assets.
• For Brian, the traditional retirement age tied to social security eligibility has longevity implications that are being overlooked.
• The 4% rule suggests you can safely withdraw 4% of your retirement savings annually with the assumption that the balance in your account will sustain you for 30 years.
• Brian shares why he believes the 4% rule is not sustainable in the modern age.
• There's risk with any type of investment and alternatives are no exception.
• Brian talks about portfolio diversification and why we need to expand the definition of diversification.
• Brian talks about alternative investments and why you should consider having a portion of your savings in private equity, private debt, real estate trusts, and even oil and gas.
• For Brian, the stock market may be a core component of a portfolio, but it cannot be the only holding.
• Should investors get out of public markets entirely?
• According to Brian, investors should not get out of the market entirely, but should acknowledge that there are many investment opportunities that are far better than the stock market.
• We are seeing the world change before our eyes. The way we invest today needs to be forward looking to consider the changes that are underway.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

References for this episode:

kiplinger.com/article/investing/t047-c032-s014-to-succeed-at-investing-do-what-yale-does.html

brianskrobonja.com/podcasts/posts/ep-52-strategically-separating-your-assets-with-the-five-minute-retirement-plan/

prudential.com/financial-education/4-percent-rule-retirement#:~:text=The%204%25%20rule%20comes%20with,close%20to%20covering%20your%20needs.

wsj.com/finance/investing/pension-funds-stocks-bonds-679b8536

imf.org/external/pubs/ft/wp/2000/wp0018.pdf

weforum.org/agenda/2022/04/longer-healthier-lives-everyone/

nmhc.org/industry-topics/affordable-housing/apartment-supply-shortage/

sealynet.com/news/sealy-company-small-industrial-spaces/

nationalaffairs.com/publications/detail/inflation-and-debt

nasdaq.com/articles/revisiting-the-classic-60-40-portfolio-as-challenges-loom

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. The views and opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of Madison Avenue Securities, LLC

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.

Investing involves risk including the potential loss of principal. Consider your risk tolerance and specific situation before investing.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Carefully read all of the relevant investment product’s offering documents and information before investing. Seriously consider investment suitability by referencing your financial position, investment objectives, and risks profile before making any investment decision.

Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets. Endowment funds are managed for institutions not individuals. An endowment-like strategy is not an endowment or an endowment fund.

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In this episode, we delve into the link between overall retirement quality and the confidence you have in your financial plan. We emphasize how a well-designed retirement strategy tailored to your needs, not solely reliant on market performance, is pivotal for boosting confidence and making your retirement plan a reality you can rely on.

Addressing common fears, exploring emotional extremes, and understanding the evolving landscape of retirement planning, will help you discover the significance of income-focused strategies and a diversified asset approach in building confidence in your retirement plan.

• When it comes to retirement, your quality of life in these golden years is often predicated on the level of confidence you have regarding your situation. A poorly-designed retirement plan can often cause emotional confusion, which leaves you feeling insecure and lacking confidence.
• Confidence is typically at its peak when a plan is optimized and is designed around meeting the needs of the client and not relying entirely on market performance.
• Retirement confidence is in direct correlation with how well your plan is designed to manage your exposure to risk and its ability to fulfill cash flow requirements. A plan built on hope and optimism can lead to very emotional times when the market doesn’t work out the way you’d hoped.
• Many client conversations relating to retirement are often centered around insecurities the client is working through.
• Common fears include running out of money before running out of life, market crashes, having a health crisis, missing opportunities, or simply making mistakes.
• There are typically two emotional extremes, no confidence or complete overconfidence.
• A lack of confidence leads to avoidance behavior and avoiding decisions, which often makes a person vulnerable to the very things they are afraid of.
• Overconfidence leads people to underestimate their vulnerabilities.
• Being skittish or practicing decision avoidance or fearing the idea of making a bad decision are all confidence killers, and the ultimate irony of this behavior is actually preventing the solution from being implemented, which can turn your fears into a reality.
• Confidence is about being able to rely on your retirement plan to do what you need it to do. If your retirement plan is anchored to the stock market, your confidence level relies entirely on the performance of the market.
• Most people’s retirement plans involve a stock market portfolio they plan to liquidate over time, Social Security, and a pension, but that’s really just the start.
• This paradigm seems to be rooted in watching our parents or grandparents work for decades in the same job and then retire with their pensions and Social Security benefits. However, circumstances have changed, and what worked back then isn’t going to cut it now.
• Pensions and company-provided retirement plans have been on the decline since the 1980’s. Baby Boomers started putting their money into retirement plans starting in the 90’s, which caused a growing stock market. 2016 was the first year that Baby Boomers started taking out money from those accounts.
• Those who ran the markets up are now the same group that is putting selling pressure on the markets, but there are other influences as well: government spending and policy, Fed policy, pandemics, interest rates, inflation, and more.
• When you lack certainty in the market, algorithms and a 24/7 news cycle can exacerbate the situation.
• There are two fundamental things that can have a profound impact on your retirement confidence. First is solving for income using income products. The foundation of a retirement plan is to generate consistent income, and unfortunately, consistency is not synonymous with the stock market.
• Separating your assets between long-term growth in public investments and income-generating private and fixed assets is a crucial component of being confident in your overall retirement plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

Brian's article - ‘Five Common Retirement Mistakes and How to Avoid Them’

References for this episode:

https://www.dol.gov/general/topic/retirement/erisa

https://www.thestreet.com/personal-finance/baby-boomers-could-cause-market-crash-12117996

https://www.forbes.com/sites/lizfrazierpeck/2021/02/11/the-coronavirus-crash-of-2020-and-the-investing-lesson-it-taught-us/?sh=17701bd846cf

https://www.marketwatch.com/story/u-s-stocks-would-be-much-lower-if-it-wasnt-for-excessive-government-spending-morgan-stanleys-mike-wilson-says-1b8e65d2

https://www.nasdaq.com/articles/what-does-the-fed-do-and-how-does-it-impact-the-stock-market

https://thefga.org/blog/president-biden-is-wrong-about-esg-heres-why/?gclid=CjwKCAjwvfmoBhAwEiwAG2tqzIhc3F2QbmLEygcbkIg9eV7bhXUz3dzXhO1A_hTNE3hNsMbTug59txoCPcwQAvD_BwE

https://centerpointsecurities.com/stock-market-algorithms/#:~:text=The%20main%20thing%20traders%20need,because%20you%20may%20lose%20fast.

https://www.statista.com/statistics/191077/inflation-rate-in-the-usa-since-1990

https://www.bankrate.com/banking/cds/historical-cd-interest-rates

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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The complexity of Social Security calculations can cause some confusion around when someone eligible should file and claim their benefit. There are a lot of variables to consider and acronyms to decipher that can make Social Security feel like a confusing hedge maze.

Let’s cut through some of the noise and clarify some of the most pressing questions around Social Security benefits and what questions you need to consider to determine what’s best for you and your family.

• Social Security has many layers, and the concept of eligibility can be pretty complex. It's not always clear when and how someone should begin taking their benefits because being eligible doesn't necessarily mean you should turn that benefit on.
• Social Security benefits can be turned on as early as age 62. Each year the benefit is delayed, you receive what is called a delayed retirement credit or DRC. These DRCs guarantee an automatic 8% increase in your Social Security benefit every year you delay up to age 70.
• There is also your full retirement age. This is the age when you are eligible to receive the full benefit without any offset for having earned income. Earned income being income from employment, which is different from income received from investments, pensions or annuities.
• For those born in 1960, or later, your FRA is age 67. Benefits are calculated by the Social Security Administration by taking 35 years of earnings that are indexed for inflation. Any years you didn’t work are counted as a zero in your average earnings calculation.
• These annual amounts are then totaled and divided by four and 20 months to arrive at the monthly figure known as your average indexed monthly earning. This number is different from your benefit amount. The SSA then applies a formula to that number which determines your primary insurance amount or PIA and this is your monthly Social Security benefit.
• If you choose to take your benefit before your FRA while employed, there's an offset that can significantly reduce the benefit if your income exceeds $21,240 in 2023. This reduction is $1 for every $2 of earned income over the limit. In the year you reach your FRA, the limit increases to $56,520 in 2023, with a benefit reduction of $1 for every $3 of earned income over the limit.
• After you've reached your FRA there's no earning limits and you receive the full benefit with no income offsets.
• Provisional income comes into play after your benefits are activated. Your provisional income is calculated by taking your adjusted gross income plus half of your Social Security benefit.
• If that total is less than $25,000, your Social Security benefit is not subject to federal tax. If it is above 25,000, but below 34,000, 50% of the benefit is taxed, and if it's above 34,000, 85% of the benefit is taxed.
• If you're a government employee, there's something called a Windfall Elimination Provision, or WEP. And there's also a Government Pension Offset, or GPO.
• There are three common conversations we have with clients when it comes to Social Security. The first thing is determining the breakeven point.
• One method for deciding when to take Social Security benefits involves calculating the breakeven point, this is the future point in time when the value of one option equals that of another.
• For example, if your FRA benefit is $2,000 a month, and $1,400 at age 62, there's a $600 a month difference. When compared to waiting the five years and taking the full amount, the breakeven point would be 11.6 years.
• Something else to keep in mind is that by taking a benefit early, you reduce the amount of spousal benefit made available since the benefit in and of itself has been reduced and this could be an important consideration.
• The second consideration relates to one's health and longevity. If you don’t expect to live past that breakeven point, taking the benefit early might make more sense.
• From this perspective, it could be a win-win situation if they start receiving benefits early and they live longer than expected because the payments continue.
• We can’t know our lifespan for certain, but if you're in poor health, taking benefits early might be a reasonable option.
• The third consideration involves a person's retirement income requirement.
• Many clients we work with see Social Security simply as a piece of the retirement income strategy, and aren't necessarily concerned with breakeven points as much as they are with maximizing their assets and the resources. Many clients opt to turn their Social Security benefits on instead of tapping into their assets in order to maintain growth.
• Using assets to generate income in retirement also comes with variables that are hard to predict, like the conditions of the stock market and economic policy. Social Security, in comparison, is stable and easy to predict.
• Figuring out your retirement income requires careful planning, which is why it’s crucial to work with a professional that understands Social Security and its role in your retirement plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

SSA.gov

References for this episode:

SSA.gov/benefits/retirement/planner/agereduction.html

SSA.gov/benefits/retirement/planner/delayret.html

SSA.gov/benefits/retirement/planner/agereduction.html

SSA.gov/benefits/retirement/planner/whileworking.html

SSA.gov/benefits/retirement/planner/whileworking.html

SSA.gov/benefits/retirement/planner/taxes.html

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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If you tune into social media, there are a lot of influencers and gurus peddling one-size-fits-all financial advice and unfortunately plenty of investors base their strategies on what these people recommend.

Find out why basing your investment decisions on what’s trending on TikTok is short sighted and discover the seven indispensable steps of building wealth that are the most common among our most successful clients.

• Conventional wisdom such as paying off mortgages, quickly maxing out 401(k)'s or buying only Term Life insurance can be short sighted.
• Wealth isn't created by following rules of thumb, random one-size-fits-all fixes, or chasing trendy financial tips. Wealth is created by developing a custom-tailored strategy that facilitates wealth creation and prepares you for the future.
• The wealthiest people aren't doing the same things as the other 99%.
• Avoid rushing and applying random tidbits of information without first creating a comprehensive wealth strategy. We all have to take a long-term strategic view of wealth creation.
• There are seven key steps in building wealth that are common amongst all of our most successful clients.
• The first step is understanding cash flow.
  • Cash Flow isn't about monthly budgeting. It's a 12-month roadmap that outlines where your money will go including savings, investments, and day-to-day expenses.
  • Effective cash flow management is about abundance and a focus on wealth creation.
  • Budgeting operates from scarcity and measures success by such things as paying off debt or simply making ends meet. Wealth doesn't just magically form out of scarcity.
• Step two is really understanding your investment risk tolerance.
  • Many investors carry far too much risk for their stated tolerance levels but have really no way of gauging what risks they're carrying.
  • It's crucial to know where you fall on the risk spectrum and to work with a professional to help you tailor your investment strategy.
  • Complete the questionnaire on our website to discover your risk tolerance and know where to start that conversation.
• Step three is to learn your tax allocation.
  • Knowing how to help mitigate tax liabilities is an essential aspect of building and keeping wealth.
  • Tax deferral methods like 401 K's can be useful in some situations, they are not what we would consider comprehensive tax strategies. A deferral is not a savings.
  • Knowing how to allocate assets to mitigate tax liabilities requires an understanding of your entire financial picture.
  • A professional trio of maybe a certified public accountant, CPA, certified private wealth advisor, CPW, or a tax attorney, is essential for making the most of the opportunities available to you.
• Step four is to understand investment verticals.
  • The more public market investments that are acquired such as stocks, bonds and mutual funds, the deeper the portfolio vertically grows, but adding more of the same to your portfolio doesn't necessarily mitigate the exposure to the risk you're trying to diversify away from.
  • Horizontal opportunities are outside of the same vertical such as real estate businesses, private equity, and life insurance annuities, and they don't share in the same risk pools that each vertical may be exposed to.
  • Effectively diversifying reduces the risk in a portfolio overall and forms a stable foundation to build on.
  • Don't put all your eggs into one vertical basket.
• Step five is establishing multiple streams of income.
  • Relying on a single source of income, like your job or a single investment is a risky proposition.
  • Businesses, royalties, passive income investments, or other consulting or freelance opportunities are all ways to create more than one stream of income.
  • More sources of income mean your financial situation is more robust during economic storms and you have more capacity to take advantage of opportunities.
• Number six is to adopt financial delegation.
  • There's usually an element of cost and trust when managing financial decisions in a DIY fashion. There comes a tipping point when the perceived savings of doing things on your own becomes an opportunity cost.
  • The complexities involved with wealth management require specialized support from professionals.
  • The cost of working with a professional can be seen as an investment when it opens up new opportunities and it allows you to focus on your strengths.
  • Delegate specific financial tasks to professionals like accountants, lawyers, and financial planners. This allows you to focus your time and effort on enjoying the benefits of having the help and the division of labor helps ensure that all aspects of your financial life are managed optimally.
• Step seven is finding your purpose.
  • Scroll social media and you'll find that there are countless examples of miserable wealthy people.
  • Money certainly makes things easier and helps you afford some privileged experiences but happiness is derived from inside of ourselves. You'll never have enough money and there's always something more to achieve.
  • Answering the question of what you would do or commit your life to if money was not the motivation can offer insight into what you feel like your purpose is.
• Building wealth is not about quick fixes or following the herd. It's about strategic informed decision making that requires an opportunity that looks at cashflow, risk tolerance, tax allocation, diverse investments, multiple income streams, financial delegation, and purpose.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this episode, Brian Skrobonja answers the top questions he receives from people looking for help with their financial plan.

He sheds light on why a plan is more than just picking stocks, what most people get wrong about passive income, and the benefits of knowing how much tax liability you’ll have in the future.

• Brian answers the top questions he receives from people looking for financial planning assistance.
• He starts by explaining why a financial plan is more than just picking a few stocks or bonds.
• Unfortunately, there are many situations where products are being sold instead of financial plans being developed. For example, an annuity salesperson sells an annuity to somebody and suggests that the product is the retirement plan.
• So, what does a good financial plan look like?
• According to Brian, the first step is defining what success looks like. Growing your money is not a goal. You must understand and clearly know why you are saving money.
• The other question Brian gets asked a lot is about passive income--what it is and why it’s important.
• Passive income is income that is generated from an asset; it’s not cash in hand from selling an asset. For Brian, a retirement income plan cannot exist without passive income.
• Next is knowing how much future tax liability you have. The question here is what will you do to mitigate those taxes and what strategy do you have in place right now to reduce what taxes you owe right now?
• The other big question you must address when building a financial plan is the dangers you will face now and in the future.
• Life doesn't run in a positive straight line. We have to consider health challenges, an unforeseen death, market declines, and other scenarios that can disrupt your plans.
• The unique approach that Brian and his firm take is that they are more interested in knowing what clients want in life, than following a process to try to flush out the problems that could potentially disrupt those plans, and find solutions to satisfy those things.
• According to Brian, a plan has little to do with products and everything to do with what you want and how you can make that happen.
• Brian reveals the amount people have to pay to access his services and why he settled on that particular figure.
• He also breaks down the definition of a professional--they get paid for their knowledge and ability to help you.
• If someone is working for free, you have to ask what value is being delivered and what is their motivation for offering a free service.
• Cost is only an issue when there's an absence of value and any fee without value is too high.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation.

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Most business owners come into the financial game as the quarterback. They’re telling their CPA and financial advisor what they need and when they need it instead of working as a team to plan out a cohesive strategy.

This needs to change.

Listen to the latest episode of the podcast to learn why your business needs a financial team that works together, and how to incorporate tax planning strategies into your operation, so you’re not overpaying taxes and maximizing the odds of your long-term success.

• Tanner is a CPA with 22 years of experience in the tax world. Born and raised in Utah, Tanner was a natural mathematician and considered joining the FBI as an accountant but didn’t end up going that route. He spent 12 years with five different CPA firms, discovering what he liked and didn’t like, before venturing out on his own.
• The Trump tax cuts expire in 2025 and a lot of professionals are anticipating higher tax rates in the near future. One tax benefit that is likely to expire is the QBR deduction for small business owners.
• Every client is different, but one piece of advice that every business owner can benefit from is choosing the right entity. A lot will depend on what your lifestyle looks like and what you are already paying for.
• Tax deductions are great but finding tax credits is even better. A good example is the Research and Development tax credit, which can go back as many as three years.
• Most people wait until there is an immediate need to contact their CPA, but that leaves a lot of opportunity on the table.
• Tax planning is very different from tax preparation. Tax planning occurs throughout the year and is a more proactive approach that many don’t realize is an option.
• The relationship you have with your CPA is crucial and can play a pivotal role during tax season. With a good relationship you also get the benefit of your CPA’s experience in other industries. Taxes are changing all the time, so it helps to have someone you can reach out to throughout the year.
• Having a financial plan should incorporate tax mitigation strategies. You, your financial planner, your attorney, and your CPA should be working as a team to manage your business finances. The more they can communicate and work together, the more effective they can be.
• There are a lot of inefficiencies in your business by having your financial plan and tax plan operating in separate silos. Individually, everyone does their job well, but when working together they can really shine.
• Typically, there’s a three-year window on filing for a refund claim. If you feel like your current CPA may not be bringing all the opportunities to your attention, it might benefit you to get a second opinion.
• If you’re planning on selling your business, there are a few things to keep in mind. Is it a stock sale or an asset sale? Do you have clean and accurate records? Plan your sale as far out in advance as you can to make sure you have all that you need for a smooth transition.
• One of the most underrated and overlooked aspects of tax planning is your bookkeeping for your businesses. Monthly bookkeeping makes it a lot easier to plan and stay ahead of the finances and taxes compared to waiting until January or April to figure out what you have to do.
• If you make a lot of money, you're going to pay taxes, and that's just the way it is. But when it's a surprise, that's where the problem comes into play.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

MTAconsulting.net

Brian Skrobonja and Tanner Adams are not affiliated. There is no compensation exchanged between Brian Skrobonja and Tanner Adams.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Entrepreneurs by nature are continuously occupied with running their business and wearing multiple hats throughout the day just to keep things running smoothly. Unfortunately, that leads entrepreneurs into making a number of common mistakes.

Mistakes that damage the long-term success and potential of their business.

Listen to the latest episode of the podcast to learn about the four most common financial mistakes entrepreneurs make that put the future of their business at risk, and how you can avoid them.

• Many entrepreneurs find themselves underserved when it comes to financial planning and often rely too heavily on their CPA for financial advice.
• One common mistake entrepreneurs make is assuming that as long as they meet payroll, stay current on taxes and receive payments from customers, their business is financially healthy.
• The problem is CPAs primarily focus on looking backwards and reviewing the previous year or quarter to meet tax filing deadlines, instead of looking forward and making strategic plans for the following year.
• Proper financial planning can help your business reduce its tax liability and increase its profitability.
• Another common mistake is entrepreneurs take the profit of their business as income, which may not be the most efficient method of distribution. Proper planning helps find the balance between income and profit.
• Financial planning can also help you determine whether your business structure is still appropriate for where you are or if it needs to evolve.
• Financial planning also helps mitigate risk, and there are three major risks that every business faces: death, disability, and divorce. Any of these risks becoming a reality can seriously derail a business and its long-term potential.
• Entrepreneurs tend to visualize positive outcomes rather than seriously considering what could go wrong and how they should address those potential problems. Having a financial plan can include agreements and other triggering events that can help facilitate a smooth outcome when facing such events.
• Another common mistake made by business owners is treating the business exit as merely a transaction rather than a transition. Exiting the business involves more than just the sale itself; it requires planning for life after the exit.
• Owners frequently overvalue their business leading to unrealistic expectations regarding the outcome of the sale. Many business owners also underestimate the time and effort required to prepare for a successful exit.
• Preparation for a sale can take years of planning, if done right, and should be incorporated into an overall financial planning process.
• Another common mistake is succumbing to the pressure of spending money to avoid tax liabilities. While tax planning is essential, it should not be the sole, driving factor behind financial decisions.
• FOMO (fear of missing out) can also lead to poor cash flow management, where entrepreneurs may be tempted to seize every opportunity that comes their way without considering its compatibility with their business vision.
• By having a well defined cash flow plan, entrepreneurs can allocate resources efficiently, reduce financial stress, and build wealth inside and outside of their business while helping to maintain stability during both prosperous and challenging times.
• A cash flow strategy is an integral part of an overall financial plan and acts as a roadmap, guiding financial decisions and helping you make the most of the cash flow.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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High income professionals face a unique situation when it comes to their retirement. You have the dual challenge of having your money tied up in your investments and also looming tax burdens once you retire.

Listen to the latest episode of the podcast to learn about a Specially Designed Life Insurance policy, also known as a life insurance retirement plan, and how it could be the wealth preservation tool you’ve been looking for.

• A high cash value life insurance policy can help facilitate tax-advantaged growth that standard retirement accounts may not be able to match.
• Many professionals spend a considerable amount of effort accumulating wealth for most of their life only to find themselves in a bind: their money is inaccessible with looming tax burdens.
• High Income professionals often face a dual tax burden where their current high income places them in a high tax bracket, reducing the net income they have available for investment. Meanwhile, the money you've diligently saved in your retirement plan will be subjected to potentially hefty taxes upon withdrawal later in life.
• Retirement accounts are great vehicles for long-term savings, but they lack flexibility, and you're penalized for early withdrawals leaving you without a readily available source of funds for unexpected opportunities or emergencies.
• For high income individuals grappling with these issues, a Specially Designed Life Insurance policy may be the answer.
• A Specially Designed Life Insurance (SDLI) policy utilizes a high cash value life insurance policy to facilitate tax-advantaged growth and offer flexibility that standard retirement accounts simply can't match.
• Cash value builds over time in the policy, growing in a tax-deferred basis mirroring the benefits of a retirement account, yet the cash value can be accessed at any time through a non-recognition policy loan.
• If properly managed, these policy loans have flexibility and are not required to be repaid during your lifetime and can be simply deducted from the death benefit or cash surrender value when the policy pays out.
• The SDLI strategy enables you to tap into your wealth when needed, providing the liquidity to seize investment opportunities or meet unexpected expenses.
• The policy loans do have an interest charged on them, but well-designed policies provide an opportunity to offset the interest.
• Not all life insurance policies offer the features necessary to execute the strategy effectively. It's a delicate balance that must be carefully managed and is best done with the help of a professional.
• This strategic tool offers several other key advantages for wealth management, asset protection and estate planning.
• In many jurisdictions, life insurance policies are protected from creditors providing a shield for your assets.
• Life insurance can also play a crucial role in balancing out an estate amongst surviving family members.
• A life insurance policy can also provide immediate liquidity to family members or business partners upon a death, ensuring the continuity of a business or farm without the need to sell off assets.

• Life insurance proceeds can also provide a tax free inheritance to your beneficiaries, helping to preserve your legacy.

• A common pushback against using life insurance as an accumulation vehicle is the perception that it is expensive and takes a long time to accumulate substantial cash values. This is because most common policies are focused on maximizing a death benefit instead of rapid cash value accumulation.

• While there is an undeniable cost associated with a special desire life insurance policy, it's crucial to consider this expense in contrast to the potential tax liabilities.
• Retirement account distributions are generally taxed as ordinary income. For a high income individual, this can be losing a substantial chunk of your retirement savings to taxes.
• In many cases, the cost of a Specially Designed Life Insurance policy could be a mere fraction of what the tax liabilities may be on an investment growth over time.
• The true cost of these policies become apparent only when considering the full financial picture, including current and future tax burdens, access to cash and long-term wealth accumulation.
• A Specially Designed Life Insurance policy is not a catch-all solution but rather a tool within the context of a comprehensive wealth management plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BuildBanking.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™️, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™️ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC. Any references to protection, safety or guarantees, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Skrobonja Insurance Services, LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.

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The concept of investing is often associated only with money and the pursuit of wealth, but this Annuities are a popular thing these days… why is that the case?

And are they a valid option for those planning their retirement?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja explores the world of annuities – from what they are and the three types of annuities all the way to four common myths, Brian’s “unpopular opinion” and why annuities and investments aren’t in competition.

Plus, Brian reveals what he considers the best way to accumulate wealth.

• You need to keep in mind that there are plenty of unknown factors in your life, such as how long you’re going to live, inflation, how the market is performing, healthcare costs, and economic shifts.
• Brian believes that the uncertainty surrounding retirement is why annuities are so popular.
• Annuities are a way to transfer risk over to an insurance company and provide some sense of safety for the future, says Brian.
• According to Statista, the risk of running out of money is a real concern for many retirees, with an estimated $2.53 trillion of retirement assets held inside of annuities.
• Brian breaks down the three types of annuities – variable, fixed-indexed, and fixed-rate – and shares a common misconception about income benefits.
• In his own words, Brian has an “unpopular” stance: he’s a believer in the fact that whether or not someone should use an annuity depends on their situation.
• Brian touches upon when it makes sense for you to use an annuity and when it doesn’t.
• “Capital appreciation over time” is what Brian considers the best way to accumulate wealth.
• Brian explains that annuities and investments aren’t in competition, because they both have a place at different times in someone’s life, depending on their needs.
• Brian goes over four common annuity-related myths.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Statista.com

Brian’s article: My 5-Minute Retirement Plan

Brian’s article: The Financial Fiduciary Standard Explained

Brian's article: What to Do With Cash in a Low Interest Rate Environment

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this episode, Brian Skrobonja breaks down ways to save, grow, and invest your money.

He sheds light on what a well-diversified portfolio looks like, the true definition of financial freedom, and why you need different mindsets for spending versus investing money.

• We all want the same thing when it comes to money--we all desire to make money, grow money, and use the money that we have.
• However, most people have a belief system that is rooted strictly on growing money--which, on some level, makes sense. But this singular focus leaves out the idea of using money.
• Why is this important? Because how we grow money is not the same as how we spend money. Growing money and using money require different approaches and different ways of thinking.
• Brian reveals that many people spend money wrong. This is not about what people spend money on, but the source of the income being spent.
• If you earn a dollar and spend it, it's gone forever. If you earn a dollar and invest it for income, you potentially have income for life.
• Brian explains why it makes more sense to spend the money your investments earn versus spending the money you earn directly.
• Why is this important? If you want to grow your wealth over time, you should find ways to hang on to as much money as possible.
• What is the difference between making and growing money?
• Brian breaks down a brilliant way to use other people’s money to access cash while your money continues to grow.
• The definition of passive income and the benefits of making money with little to no effort.
• Better ways to generate income other than the stock market. Brian explains why the stock market is great for growing money, but it’s not the best option for generating recurring income.
• Ideally, you want to position assets so you have a tax-free, passive income to live on. You need to have the ability to spend money with uninterrupted growth while simultaneously investing long-term.
• Financial freedom is defined by how much passive income you are generating.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation.

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The concept of investing is often associated only with money and the pursuit of wealth, but this fails to capture the true essence of investing.

An ideal future isn’t encapsulated by a stack of $100 bills.

The true essence of investing is not about building wealth, but about building the atmospheric conditions that align with your ideal future self.

Listen to the latest episode of the podcast to learn why a relentless focus on accumulating wealth will end up costing you what you’re actually working for, and why you need to have a more encompassing vision for what your retirement can be beyond your portfolio.

• Your quality of life isn’t determined just by the number in your bank account. Those dollars are merely the resources you use to create the ideal life.
• Wealth extends beyond the mere accumulation of money. It’s about the life you can construct around it and the atmospheric conditions you can create for yourself.
• You can possess all the wealth in the world, but without the cornerstones of a healthy life like thriving relationships, health, purpose and meaning, the value of that wealth diminishes.
• We need to exercise caution in our perception of wealth and the significance we ascribe to money. Investing shouldn’t only mean contributing to your financial future but should be considered building towards your ideal future.
• Having a vision for your retirement that involves activities and people requires a keen understanding of what’s important.
• Brian had a client who embodied the rags to riches narrative that people in the West admire so much, but after years of diligently working toward accumulating his wealth, this client ended up sacrificing his health. Instead of traveling the world and enjoying the fruits of his labor, this client spent his golden years visiting doctors and hospitals.
• “Man sacrifices his health to make money, then he sacrifices his money to recuperate his health.” -Dalai Lama
• A healthy lifestyle lays the foundation for our capacity to live fully and pursue our ambitions actively. The importance of investing in health can not be overstated.
• Along with health, investing into your relationships is paramount. Relationships form an integral part of our support system. The rewards are not always monetary, but they are no less important, and investing time into relationships is crucial.
• Investing into a steady flow of income beyond just building a portfolio is another key component to enjoying your retirement.
• Growth is not income generating and growth is not the same as income. Retirement needs to be a time of shifting from a diversification of growth assets into a diversification of income producing assets.
• The true essence of investing is not about building wealth, but about building the atmospheric conditions that aligns with your ideal future self. That includes nurturing your health, cultivating meaningful relationships, ensuring a steady income, and fostering cognitive ability.
• Money is a tool to reach those goals, and not the goal itself.
• Retirement should be seen as a chapter in your life that is ripe with potential.
• True wealth is not just the abundance of money, but the presence of all the components that make life fulfilling.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

Previous episode - Make Health Planning Part of Your Retirement Planning, with Regan Archibald

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Many people accumulate their wealth in a bank or a long-term investment, and this may create problems.

But there is a different strategy.

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over the Build Banking strategy and how you can consider a different banking paradigm using specially designed life insurance policies that allow you to start banking on yourself.

• Most people know that banks use other people’s money to generate profits. This process is known as Fractional Reserve Banking, which is basically the bank using the spread between interest rates to profit.
• For banks, it goes a little deeper. Banks can loan out the money they have on deposit to people, and those dollars are then deposited again, which begins the cycle anew. This process acts as a money-printing machine within the economy.
• Banks aren’t currently required to hold any reserves to cover their customer’s deposits. The result of Fractional Reserve Banking is the expansion of the money supply which contributes to increased inflation.
• Silicon Valley Bank recently found itself in trouble and was unable to cover its liabilities leaving depositors to rely on the government to bail them out.
• It’s not realistic to be able to bypass the banking system entirely, but there are ways to take control of how you save and store money with a personal bank-like strategy.
• Build Banking uses a specially designed whole life insurance policy that’s built on the inherent tax-favored nature and unique capabilities of those policies.
• What makes Build Banking different is the design allows for rapid cash accumulation with uninterrupted tax-free growth, while having access to cash without having to rely on banks or Wall Street, but you have to set aside your preconceptions around life insurance.
• The challenge is the language around life insurance policies and how most people understand what they are capable of.
• With traditional banking, you either accumulate money and spend or borrow and then repay it. The Build Banking method offers a different strategy with a specially designed life insurance system that allows you to take back some of the control.
• Not all policies are the same and loan features can vary greatly, so it’s important to work with a professional with experience in this area.
• The main benefit of the Build Banking strategy is the ability to have your money remain in the policy and continue to grow uninterrupted, while simultaneously using a policy loan from the insurance company for personal use.
• A business owner has an extra advantage because they can leverage the loan in their business, creating both an internal and external return.
• This strategy also gives the policy owner a lot of control over how and when the loan is repaid because of the nature of the life insurance policy.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

BUILD Banking™️ is a DBA of Skrobonja Insurance Services, LLC. Benefits and guarantees are based on the claims paying ability of the insurance company. Not FDIC insured. Results may vary.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™️, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™️ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC.

Any references to protection, safety or guarantees, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Skrobonja Insurance Services, LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Time is your most precious resource, but how you use it is up to you.

The shift from earning to retirement can be quite challenging, as you have to thread the needle between income, growth, and time.

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over the most important mindset shift people need to make in order for their retirement plan to succeed.

• It is possible to retire without growth, but it’s impossible to succeed without income. But many people have trouble shifting their mindset from focusing on long-term growth into a consistent and reliable income.
• When you invest long-term, that means not having to withdraw money from your assets for a long time. But once you enter retirement, your timeline moves from the future to the present.
• This transition requires a mindset shift to be made before significant progress can be made.
• Retirement planning is a discovery process that boils down to learning whether or not you have an income gap in retirement and, once that’s discovered, the whole plan is built around replacing that income.
• Without that number, everything else is a guessing game. If you shortcut this step with estimates, you will only compound the issue downstream.
• Retirement seems like a simple concept, but it’s surprisingly complex and solving the issue with old ways of thinking will lead you astray.
• Future performance of investments can’t be determined by looking at the past. An investment doesn’t address the risks you face in retirement. The sooner you figure out that investing is a spoke in a very large wheel, the sooner you can begin to formulate a true retirement roadmap.
• There are common components for retirement scenarios, like the income gap.
• There are also common risks that all retirement plans need to account for: sequence of return risk, market risk, interest rate risk, mortality risk, legislative risk, longevity risk, and health risk. All retirement plans should be built around the idea of protecting yourself and mitigating as much risk as you possibly can.
• Most people’s largest asset is their income, but it’s often not considered for insurance.
• Confirmation bias can hinder our ability to consider alternative perspectives and make the mindset shifts we need to make in retirement. People can find themselves endlessly searching for experts to tell them that they don’t need to change their strategy in retirement because of our natural need to confirm our beliefs.
• The more successful a person becomes, the more valuable their time becomes. To preserve those valuable hours, it becomes increasingly more important to surround yourself with professionals to whom you can delegate responsibilities to free up time.
• Insurance is just a form of delegation. You delegate your risk to the insurance company, which mitigates the risk and increases the quality of your time.
• Delegating the research and leveraging the experience of a professional in retirement planning can help you leverage your time with confidence.

Mentioned in this episode:

BrianSkrobonja.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this episode, Brian Skrobonja sheds light on the complex and often overwhelming process of managing an estate after the loss of a loved one. This is a step-by-step guide from the initial steps you need to take after a loved one passes, to the intricate details of settling an estate.

Brian offers valuable advice and practical tips to navigate this difficult time with grace and efficiency.

• Having a clearly defined process in place for managing an estate can help avoid the emotional drain of making important decisions through the loss of a loved one.
• Friends and family may wish well and provide advice on what to do, but without a proper plan in place, that can lead to more financial problems in the future.
• Setting expectations for yourself and the beneficiaries of the estate is a great first step to help minimize the confusion and questions around how long it will take to settle an estate. This process can take anywhere from two months to several years depending on the type of assets that are owned and the size and complexity of the estate.
• A funeral home director will often help obtain death certificates, which will be required before making any claims. It’s a good idea to request 10 to 12 original documents because, once submitted, you may not get them back.
• It's important to first locate the deceased’s will, trust, or other estate documents they have on file. If none of these exist, you could have difficulty settling a person's estate which will most likely require an attorney to assist you through the probate process.
• Check to determine if the person may have left a letter of instruction behind as well. A letter of instruction is not a legal document, but it's a letter that can provide more personal intentions and information regarding an estate.
• The next step is to begin gathering an itemized list of all known financial institutions where money is held and life insurance companies for filing a claim. It's a good idea to put the list together before jumping into making calls because you'll want to keep track of phone conversations and other instructions.
• Tip: A really good practice is to keep a journal or Excel spreadsheet of all the conversations to keep track of everything. You'll want to avoid writing on the back of envelopes or scrap pieces of paper as that can become really unmanageable.
• Checks made out to the deceased will require a bank account to deposit them. Avoid closing bank accounts too early because of this.
• You will have to notify Social Security that a death has occurred as well as any pension provider to have payments stopped and any eligible benefits paid to the estate.
• If your loved one served in the military, you may be eligible for veterans benefits. You can get more information about these benefits by visiting va.gov.
• Over the next one to three months, you will want to screen incoming mail, both physical and email, to look for and gather bills, statements, and notices relating to various types of accounts and insurance policies. You will want to review credit card statements to identify subscriptions or other recurring charges to follow up with the service providers about cancellation.
• Next, notify creditors and credit card companies that were a part of your loved ones credit history. You can notify the big three credit bureaus; Experian, Equifax, and TransUnion, of their passing, which can usually be done online over the phone or by letter.
• You will also want to locate where they filed important documents to find deeds, titles to real estate, car titles, or lease agreements as well as storage space keys and account records.
• Look for a computer file or printout with digital account passwords so you can disable any active social media accounts.
• If the person was still working, contact the human resources office at their place of work to inform them of what has happened, the HR officer may need you to fill out some paperwork pertaining to retirement plans, health benefits and compensation for unused vacation time.
• If your loved one owned a small business or professional practice, a discussion with business partners and clients may be necessary as well as consulting with the company attorney who has advised the business.
• If there was a child in college, it may be a good idea to contact the Financial Aid Office to inform them of what has happened. Depending on the school and the financial situation the surviving child may qualify for more assistance.
• Before rushing into this process, you should consider speaking with a financial advisor and attorney. There are so many areas where you can make expensive mistakes, working with a professional through this difficult time is usually the best decision.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

va.gov

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

The appearances in Kiplinger were obtained through a PR program. The columnist is not affiliated with, nor endorsed by Kiplinger. Kiplinger did not compensate the columnist in any way.

Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation.

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“The more money you have, the bigger the mistakes,” someone once told Brian…

How does that translate into retirement planning? And how can you help ensure you approach your financial planning for your “golden years” in the best possible way?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over five retirement mistakes that you should stay away from at all costs, as well as what retirement is actually about.

• Brian touches upon something that a very successful person told him when he was getting started with his business back in 1993: ‘The more money you have, the bigger the mistakes.’
• With his desire to work hard and strong work ethic, Brian quickly became successful. But there was a problem with his approach – Brian opens up about that.
• Brian shares some of the retirement mistakes he has seen people make in his 30-year career.
• Having a distorted view of what wealth really is and having what Brian calls “vertical diversification” are two common mistakes Brian has seen over and over again in his career.
• There are many factors to consider when attempting to diversify. You shouldn’t believe that a bank account and a portfolio of public investments are all that’s available to you as you move your diversification horizontally.
• Brian points out a common practice to avoid: making an investment decision based on the tax deduction alone.
• When making decisions regarding how you save money, Brian suggests considering how you’ll ultimately use the money.
• Brian discusses why you shouldn’t have too much dependency on markets nor having complacency.
• Brian sees retirement as a balancing act between growing money for the future while drawing income for your retirement needs.

Mentioned in this episode:

BrianSkrobonja.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Are you part of that 68% of people who would like to have a personalized financial plan, but aren’t sure where to find a financial advisor?

What should you pay attention to when trying to get a financial planning expert to help you, and you’re evaluating different options?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja shares six factors you should keep into consideration and look at when going through different financial advisor options.

• According to a May 2022 PR Newswire survey, 68% of people would like to have a personalized financial plan, but they’re not sure where to find a financial advisor.
• Brian sees information-gathering and understanding that planning isn’t the same as investing are the biggest mental hurdles of financial planning.
• When it comes to picking a financial advisor, there are six primary factors Brian suggests looking at.
• A 2022 study found that 80-90% of advisors fail in the first three years of practice – the main reason being the steep learning curve involved in serving clients.
• 10 years is the minimum that Brian would look for in terms of experience a financial advisor has.
• Brian discusses the different designations a financial advisor might have.
• Brian touches upon the importance of whether a financial advisor owns the company and the range of services they offer.

Mentioned in this episode:

BrianSkrobonja.com

Dan Sullivan

Chat GPT

FINRA

The Financial Fiduciary Standard Explained (2021 Kipliger article by Brian)

Reference for this episode:

https://www.prnewswire.com/news-releases/nearly-3-in-5-americans-59-want-financial-advice-but-are-not-sure-where-to-get-it-according-to-intelliflo-survey-301494402.html

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Past performance is no guarantee of future returns. Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This video is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. Our firm is not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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You feel healthy so everything is okay, right? Have you ever thought that health planning should be part of your retirement planning efforts?

If you’ve answered ‘yes,’ pay close attention to Regan Archibald!

Regan joins host Brian Skrobonja to discuss how people should approach health planning, the world of preventive care, the role of nutrition, and why longevity medicine is something you should be mindful of.

• Regan Archibald kicks off the conversation by sharing his origin story.
• In his work with entrepreneurs, Regan has found that when people focus on creating more balance and focus on their health, their business improves – and so does everything else.
• One of the major health issues both Regan and Brian have noticed is that many people think that if they feel okay, everything is okay…
• Regan stresses the importance not only to focus on a certain problem (like high blood pressure) but on trying to understand its cause (so, asking “Why is my blood pressure high?”).
• Regan illustrates how longevity medicine and financial planning share some of the same characteristics.
• “Peptides have been one of the most exciting developments,” says Regan. He explains why that’s the case.
• Regan believes that people should approach their health insurance the same way they approach their car insurance.
• What’s a good amount to budget toward health planning? For Regan, the answer to that is $15k/year.
• For Regan, making your health the #1 priority so that you feel it internally, is an excellent way to get started with health planning.
• Brian and Regan talk about what working with Regan actually looks like, and discuss diets and how to approach nutrition.

Mentioned in this episode:

BrianSkrobonja.com

ThePeptideExpert.com

Unreasonable Health Podcast

The Peptide Blueprint: Achieving Optimal Health and Performance at Any Age

Never Stop Healing: The Unknown Shortcuts With Peptides for an Extraordinary Life

EastWest Health

Dan Sullivan

Peter Diamandis

Bryan Johnson

Charles Schwab

Head Strong: The Bulletproof Plan to Activate Untapped Brain Energy to Work Smarter and Think Faster by Dave Asprey

Chat GPT

Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, MAS and Regan Archibald are not affiliated entities. NO compensation has been exchanged between Brian Skrobonja and Regan Archibald.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this milestone 100th episode of the Common Sense Financial Podcast, host Brian Skrobonja delves into the critical topic of managing taxes in retirement. The episode focuses on strategies for minimizing tax liabilities, especially for retirees with tax-deferred accounts facing potential hefty tax bills.

Brian emphasizes the importance of sustainable income creation during retirement and the role of tax optimization in this process.

• Most people envision their retirement to be built from predominantly tax-free income, but after many years of deferring taxes, retirees are facing a sizable tax bill on distributions taken from their retirement accounts that could be a third or more of what has been accumulated.
• When you’re saving for retirement, growth of your assets is the priority. But many people don’t realize that once they retire that’s no longer true. The priority is actually creating sustainable income to support you through retirement while minimizing taxes.
• A common issue I’ve seen is future retirees knowing they will owe taxes on their deferred accounts, but not realizing the extent of the problem since the rules change once they retire.
• Many retirees we work with tend to have the same income goals in retirement, yet with fewer deductions. They no longer have children or mortgage interest to help them offset their tax burdens, which makes the situation more complex.
• Delaying distributions isn’t an option either. Required Minimum Distributions will eventually force your hand.
• There are two tax problems facing retirees: taxes you will have to contend with today, and taxes that you will have to contend with in the future.
• With the national deficit continuing to rise, do you expect tax rates to go down in the future or go up? The most likely answer is that tax rates are on the rise, so we should be planning accordingly.
• There are two possibilities to help minimize the level at which you participate in paying your fair share towards the government's future revenue increases. You can either complete a Roth conversion or through tax deferred withdrawals contribute to an overfunded permanent life insurance policy.
• Making the decision of which strategy to implement is the easy part. The trick really is completing this process with minimal tax liabilities, which requires specialized knowledge.
• The progressive nature of the code makes understanding your tax burden complicated and miscalculating this could result in having a larger tax liability than anticipated.
• Depending on your income level, a taxable distribution can subject your Social Security to additional taxes. This is a separate calculation from the income tax brackets and uses a two step process to determine how much of your social security will be subject to taxation.
• This is important to know because a taxable distribution may not only push you into a higher income tax bracket, but it could trigger additional taxes on your social security, which could result in a higher effective rate.
• You should also be aware of the impact a taxable distribution can have on Medicare premiums. The impact of any possible premium increase is typically delayed by two years. This is one of those things that often comes as a surprise when people make decisions about distributions.
• The antidote to taxable income is deductions, credits and losses which can help reduce the net income subject to tax. There are a few options that can help offset the burden of taxes and make the transition from tax-deferred to tax-free easier, but they don’t work for everyone, which is why we recommend working with a professional.
• The first thing is a donor advised fund or DAF. This allows you to contribute future charitable donations into a fund that you control when distributions are made that can also receive the tax benefit of the donation in the year you make the contribution into the fund. By making multiple years of donations in a single year into that fund, you have the potential of helping offset a taxable distribution from your retirement account in that year.
• The second is a Charitable Remainder Trust (CRT), where you can contribute future charitable donations into the trust and receive the tax benefit of the donation in the year you make the contribution. You can also receive income from the trust while you're living within IRS limits. A CRT is a more complex arrangement than a DAF with many options and requires an attorney to draft the trust.
• The third is a qualified charitable donation or QCD, which allows for anyone over the age of 70 and a half to make a direct donation from a qualified account to a charity.
• The fourth is something known as IDCs, or intangible drilling costs, which allows accredited investors to participate in the drilling expenses of an oil and gas company that could provide reportable tax losses that can help offset all forms of income, as well as the potential for cash flow back to the investor once the wells are operational.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Brian's article - From Tax-Deferred to Tax-Free: Navigating Taxes in Retirement

References for this episode:

https://www.usdebtclock.org/

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024

https://www.ssa.gov/benefits/retirement/planner/taxes.html

https://www.ssa.gov/benefits/medicare/medicare-premiums.html#anchor5

https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions

https://www.irs.gov/charities-non-profits/charitable-remainder-trusts

https://www.irs.gov/newsroom/qualified-charitable-distributions-allow-eligible-ira-owners-up-to-100000-in-tax-free-gifts-to-charity

https://www.investopedia.com/terms/i/intangible-drilling-costs.asp

https://www.crfb.org/blogs/tax-break-down-intangible-drilling-costs

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

A ROTH Conversion is a taxable event. Consult your tax advisor regarding your situation.

Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply.

Donor Advised Funds represent an irrevocable gift of assets from the donor to the fund. Contributions made to the fund are irrevocable and cannot be returned or used for any other individual or used for any purpose other than grant making to charities. The gift is not an investment or a security. When evaluating a contribution to the fund, carefully consider the terms and conditions, limitations, charges, and expenses. Depending on the tax filing status, DAF contributions may or may not be tax deductible.

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Life when you’re gone… an uncomfortable conversation most people prefer to avoid.

Why isn’t that a good idea? How can estate planning help you ensure that things are taken care of once you aren’t around anymore?

Listen to learn about big mistakes people make, the different elements that make up the estate plan puzzle, the three primary areas of cash flow, and the type of plan you should have in place.

• When it comes to end of life financial planning, many people tend to put it off because it’s an uncomfortable conversation to have.
• Even though the process for end of life planning is relatively simple in nature, Brian recommends getting professional help to deal with the details, which can be complex.
• Despite every situation being different, there are several core aspects of estate planning that everyone should consider.
• The first has to do with title and legal work. Brian has noticed that many people have a complete misunderstanding of the role legal work plays within their planning.
• Then, there’s life insurance. Many households rely on two incomes – or people – contributing to the family’s ecosystem.
• Their contribution to the family must be replaced when they’re gone, and that’s where life insurance comes into play.
• Another important, but often overlooked, aspect to an estate plan is budgets and cash flow. Brian doesn’t recommend planning in terms of weeks or months for it… rather, to plan in terms of years.
• “Your cash flow can be broken down into three primary areas,” says Brian. “Reoccurring obligations, irregular obligations, and savings.”
• Debts and investments are an additional area that makes up the estate plan puzzle.
• Brian stresses the importance of cash flow and shares a couple of examples that illustrate its key role.
• End of life planning is a difficult topic to address. Brian’s suggestion is to take steps to protect your loved ones by creating a custom comprehensive plan with the help of professionals.
• After that, the next step is to communicate the plan with your partner and family members – then, enjoy the peace of mind that comes along with knowing you have done everything in your power to provide for your loved ones.

Mentioned in this episode:

BrianSkrobonja.com

Estate Planning Checklist

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Did you know that a good part of American households haven’t thought about retirement planning?

When it comes to planning for retirement, there are some key concepts to understand and three traps you should do your best to avoid.

Listen to learn why a money increase doesn’t always equal a lifestyle enhancement, the three things people often look at but that come back to bite them later on, and how you can effectively plan for retirement and protect your money.

• As life expectancy increases, people will be finding themselves needing to save more money for retirement.
• Brian believes that it’s going to be possible to be retired for as many years as one has worked, because people are living longer than ever before.
• According to a 2019 retirement confidence survey by the Employee Benefit Research Institute, more than half of American households are at risk of running out of money in retirement due to the lack of savings and the unpredictability of the stock market.
• If you look back and think about how much money you were making when you first started working and compare it to today, you should see an increase.
• However, more than a lifestyle enhancement, the increase is just an inflation adjustment. And the crazy thing is that only 42% of Americans have tried to calculate how much money they will need for retirement!
• Brian has noticed that many people go into retirement because of eligibility, without having actually calculated how much money they would need – this is a problem, especially because of three things that are outside of their control: inflation, markets, and taxes.
• To offset inflation, you need to earn more on your money than the inflation rate that is eroding your purchasing power.
• Want to protect yourself from market losses? Then, you either need to not be in the market or work to insulate your portfolio through diversification strategies that are challenging for most people to leverage.
• As far as taxes are concerned, the best way to tackle them would be to focus on building tax-free assets and stop the propensity to kick the “tax can” down the road.
• Even though these may sound like obvious moves, Brian has seen people do the opposite – with things like funding their 401k accounts, parking money in the bank, or pouring it into the stock market.
• Brian warns against tapping into the stock market as a means to draw income because it’s the Government and Wall Street that have control over it, not you.
• There’s a key difference that some people tend to forget when it comes to retirement planning: accumulating money is done one way, drawing income for retirement is done another way.
• Brian stresses the importance of not taking retirement planning lightly.
• Remember: underestimating the amount of money needed to maintain a comfortable lifestyle in retirement, or relying on too many things outside of your control can be a significant financial risk.

Mentioned in this episode:

BrianSkrobonja.com

BrianSkrobonja.com/FamilyOfficeQuiz

Center for Disease Control

Pew Research Center

Employee Benefit Research Institute

Susan Powter

Chat GPT

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clientsor prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Our firm is not permitted to offer and no statement made during this podcast shall constitute tax or legal advice.

Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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Emergencies and retirement. This is what we're taught to save for. But what if you created a different system, which allowed you to pay for the expenses you will incur between now and retirement age – without losing the ability to build wealth?

Find out why you may need to rethink your financial planning approach and what you should do about the “Missing Middle.”

• According to popular opinion, sound financial planning advice typically consists of two main steps: saving for emergencies and saving for retirement.
• Brian found this to be slightly misleading because of the phenomenon he refers to as “The Missing Middle.”
• Think about how life generally goes: there are car payments, furniture, credit cards, tuition… you also have money going into an account that you can’t touch until you’re 60 and then, before you know it, you have thousands of dollars of debt. And that’s by following general advice.
• However, opting for a less traditional and more customized approach allows you to pay for the expenses you incur between now and retirement – the middle of your life, without entirely losing the ability to build wealth.
• Brian believes that the real benchmark you’re going to use should be based on your personal needs, goals, and financial situation.
• When there are big expenses people don’t account for in their regular cash flow, one of two things happens.
• People either continually deplete savings in order to pay for the things in cash (constantly funneling money back into their bank account to replenish the emergency fund).
• Alternatively, they finance everything with bank loans and credit cards. Neither option leads to wealth being created.
• Brian is convinced that you should model your entire financial life around your actual life, instead of around arbitrary concepts or ideas that don’t fit into the puzzle of what you’re actually trying to create (Brian calls this Your Life Cycle Model).
• In the Life Cycle Model individuals allocate resources over their lifetime with the aim of avoiding sharp changes in their standard of living, while avoiding debt and simultaneously building wealth.
• Brian explains how using the so-called build banking instead of a traditional bank can help you leverage the Life Cycle Model (and why you shouldn’t compare it to the stock market).
• People tend to separate their money into two buckets: saving and spending. Brian explains why that may not be the best of approaches – and what to do instead.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

How Long Will My Money Last in Retirement

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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What comes to mind when you think about retiring? Is it enjoying your "golden years?"

That's an outdated approach, says today's guest Dean Jackson!

He joins host Brian Skrobonja to discuss a new way to think about retirement – and how doing things this way will change your life – the concept of "pre-tiring," two types of economy, and what "money hobby" and self-managing companies are all about.

• The idea of the conversation with Dean came to Brian as the result of conversations he has been having with clients, plus the increased longevity and the outdated models that are still presented as the tools to approach retirement planning.
• From an early age, Dean realized the difference between what Dan Sullivan calls the time & effort economy, and the results economy.
• In the first type of economy. you get paid a fixed amount for your time and effort, whereas in the latter. you’re paid by the results you create.
• Dean has been “pre-tiring” since 1999, splitting his time between Canada and Florida.
• For Dean, trying to define what success means to you and what your ideal lifestyle looks like are key aspects to reflect on.
• Society has been structured in a way where people worked with an eye on retirement, where they would spend their golden years. Now, things have changed.
• As Dean points out, there are billions of definitions of what "a perfect life" looks like, and "everyone’s in possession of what could be a perfect life in their definition."
• The key is filling the blank, using your own situation and words, in regards to the sentence "I know I’ll be successful when ____."
• Rehearsing for retirement is one of the things Brian has been helping clients with. Retirement is a transition, so being prepared for it is crucial.
• Dean believes that one of the important steps to take to prepare for the transition into retirement is what he calls "money hobby."
• Find something you’re truly passionate about and look at whether you can turn it into some kind of business, like the Ryan’s Toys YouTube channel, for example.
• Brian thinks that retirement isn’t an age but a mindset. You can retire at 65 or at 35 if you have the right mindset and path to run down to create passive income.
• Citing Dan Sullivan’s ideas and work, Dean and Brian touch upon the whole idea of life extender and making your future bigger than your past.
• For Dean, it isn’t about how to do something but who can get something done for your company.
• You should decide whether you want to find a who that can help you with a specific thing – you can then turn into a business – or become that who yourself, for someone else’s business, and do the what you really love.
• Dean talks about the so-called eight profit activators, a blueprint that’s universally applicable to all businesses. It’s about looking for opportunities to activate profits in any of the eight areas.

Mentioned in this episode:

BrianSkrobonja.com

Previous episode - Retirement is Not an Age

DeanJackson.com

Dan Sullivan - StrategicCoach.com/our-team/#/people/dan-sullivan

Tony Robbins’ New Money Master program

Thomas Leonard

Shopify.com

Ryan’s World on YouTube

Chat GPT

Brian, Dean Jackson and MAS are not affiliated entities.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this podcast episode, Brian Skrobonja takes us on a thought-provoking journey through the evolving concept of retirement. As we dive into the past, present, and future of retirement, Brian helps us unravel the complexities of this modern-day concept which, though deeply ingrained in our society, is relatively new in human history.

This episode is essential for anyone planning for retirement, offering a fresh perspective on how to approach this significant life stage in the context of rapid societal shifts, economic developments, and increasing human longevity.

• We start off by exploring the concept of retirement and its transformation from ancient societies to the modern era.
• The Industrial Revolution marked a significant shift from agrarian societies to industrial ones, influencing how people viewed work and retirement. It even shaped the way that families and communities lived together.
• The change in how work was done over the centuries resulted in the creation of a retirement system based on pensions, which was the precursor to modern-day retirement benefits.
• In the 1900’s, Social Security was introduced which shifted the responsibility from families and communities onto the government.
• In a relatively short period of time, the concept of retirement has changed drastically, and the pace of change is continuing to accelerate. Based on the way technology and healthcare are developing, it’s very likely that retirement will look very different in the future as well.
• As the Baby Boomer generation progresses toward retirement, it will put tremendous strain on programs like Social Security and Medicare due to a considerably lower worker-to-retiree ratio than ever before in history.
• The programs and retirement paradigm will change, similar to the way that pensions underwent change. Pensions used to be the default vehicle for retirement but have become scarce and relegated, mainly for those with government jobs.
• According to the Social Security Administration, benefits are projected to run negative by 2033. And according to the Congressional Budget Office, the national debt is projected to reach $52 trillion in 2033.
• Life expectancy also continues to rise, which puts pressure on the current retirement paradigm from another angle. With new breakthroughs in human longevity, the concept of retirement will have to adapt.
• Retirement was once considered a necessary transition when a person was no longer productive in their work and had a short life expectancy once retired. Today, people retire when they're still fully capable of working. That reality is widening the chasm between the number of workers and retirees, as well as the financial resources needed to sustain retirement for longer periods of time.
• Retirement needs to be redefined, since the reality of shorter lifespans is no longer the case for most people.
• There are three factors that contribute to success in retirement.
• The first is contribution. The longer you contribute, the better. Perhaps redefining expectations after the age of 60 and looking toward a second half of life with a meaningful career or business may be called for.
• The second is prevention. The longer your retirement is, the more risks are amplified and can have a significant impact. Finding ways to move things into your control helps prevent unforeseen problems that put your retirement at risk. Examples of this include: insurance, annuities, and tax-free investments.
• The third is delegation. Retirement planning is a team sport. You can delegate the heavy lifting of a retirement plan to financial advisors, attorneys, insurance agents and CPAs and then use that collective wisdom to implement the actual plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

References for this episode:

https://www.washingtonpost.com/technology/interactive/2023/aging-america-retirees-workforce-economy/

https://www.ssa.gov/OACT/TRSUM/index.html

https://www.cbo.gov/publication/58946

https://www.econlib.org/library/Enc/IndustrialRevolutionandtheStandardofLiving.html#:~:text=On%20the%20other%20hand%2C%20according,come%2C%20it%20was%20nevertheless%20substantial

https://www.ssa.gov/history/lifeexpect.html#:~:text=Life%20expectancy%20at%20birth%20in,and%20paid%20into%20Social%20Security

https://www.macrotrends.net/countries/USA/united-states/life-expectancy#:~:text=The%20current%20life%20expectancy%20for,a%200.08%25%20increase%20from%202020

https://www.diamandis.com/blog/mark-hyman

https://www.kiplinger.com/taxes/what-to-do-before-tax-cuts-and-jobs-act-tcja-provisions-sunset

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Our firm is not affiliated with or endorsed by any government agency.

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You can live without saving money, and you can live with debt, but you cannot live without cash flow. In fact, if you want your personal finance to flourish, cash flow is a key element you need to focus on – passive income too. Why is that the case?

Find out about critical personal financing missteps you should avoid making, what to focus on to measure financial progress and happiness, and the key traits you can learn from the happiest and most successful people to win more in personal finance.

• Just like many other areas of life, personal finance too is dependent on your own tank both from a mental, physical, and resources standpoint.
• Trying to do too much with their resources is one of the most common personal finance missteps people make.
• There’s a tendency of segregating financial goals into silos and of gravitating towards what looks easiest over what is often best – which typically leads to personal finance goals not being achieved.
• Brian believes that the key to maximizing your capabilities should be on building resources, and then creating cash flow from them to fund everything else.
• Passive income plays a crucial role in that it fills your income gap, allowing you to free up your time.
• Brian sees people often getting caught up in their silos and finding themselves beholden to their system of working to spend.
• It’s possible to live without saving money, and with debt, but it’s impossible to live without cash flow.
• How do you measure financial progress? To identify what makes them happy, people often go beyond financial aspects and look at things such as family, friends, faith, fitness, and free time.
• Once you have this aspect figured out, you can either do everything by yourself – with all the risks that this approach entails – or you can delegate.
• In The 7 Habits of Highly Effective People, Stephen Covey explains that the happiest and most successful people have figured out how to buy more time by relying on professionals with the knowledge and experience to help them manage their relationships, health, time, and money.
• Tom Rath, author of Stengths Finder 2.0, has found that successful people tend to leverage strengths and delegate weaknesses. They spend their time on things they’re good at and want to spend their time on, and they delegate the tasks they can gain more time from by not doing them.

Mentioned in this episode:

BrianSkrobonja.com

BrianSkrobonja.com/FamilyOfficeQuiz

Chat GPT

The 7 Habits of Highly Effective People by Stephen Covey

Strengths Finder 2.0 by Tom Rath

This is a replay of "In Financial Planning, Consider Your ‘Fuel Tank of Capability’"

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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In this podcast episode, Brian shares his remarkable journey from his parents' middle-class immigrant background to achieving financial freedom through decades of learning and building businesses.

He recounts his early aspiration for an opulent lifestyle and the pivotal moment when he realized the importance of creating income-producing assets. Through content creation, including three books and the Common Sense Financial Podcast, Brian's financial wisdom and expertise have garnered recognition and awards, providing valuable insights into wealth, financial freedom, and the pursuit of life's true riches.

Join us as we explore Brian's wealth-building principles, the significance of faith, family, and relationships, and the pursuit of genuine financial freedom.

• It was over 30 years ago when Brian got started in business and he’s spent this time building his knowledge while building teams and companies.
• Brian begins by telling the story of his parents and how they came over from Croatia and lived a middle-class life.
• His father worked evenings and weekends as a lab engineer while also running a business on the side. His work ethic greatly inspired Brian as he grew up.
• As a teen, he always dreamed of having expensive things, but his only model for getting that done involved trading time for money, which is exactly what he did throughout his early 20’s. This led to him working harder to keep up with his increasingly expensive lifestyle.
• After doing it wrong for years, Brian had an epiphany where he realized he needed to create income-producing assets that would pay for his lifestyle.
• He set out to create a passive income stream to support his lifestyle and successfully accomplished it. That’s when his focus for what he was really trying to do for his clients came into clarity.
• Brian began producing content back in 2010. And out of that came three books: Common Sense, Generational Planning, and Retirement Planning, which can all be found on Amazon.
• This led to the beginning of the Common Sense Financial Podcast, which has since been recognized by Forbes as a top 10 podcast by financial advisors. Brian also became a regular contributor for Kiplinger magazine locally in St. Louis. He’s gone on to win numerous awards for his work.
• After 30 years of helping clients create the passive income they need to create real financial freedom, Brian regularly hears clients say that his process has really opened their eyes about how money works and how to think about wealth.
• In his personal life, Brian has been married to his wife Carrie for 30 years and has three kids, who have also grown up and had families of their own.
• Throughout their lives, Brian and his wife have taught their children two main things. First, most importantly, for them to pursue a close personal relationship with Jesus Christ and to live out their faith in their daily walk. Second to that, is to understand that a worthy pursuit in life is the things money can't buy: building relationships, investing, and creating memories and experiences with people that you love.
• A key lesson that took Brian a long time to figure out is that the pursuit of things never brings satisfaction.
• Real wealth is not found in things but in the freedom to live your life free from having to work for a paycheck or trade your time for money, which is another lesson he tries to impart to his kids as well as his clients.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

SkrobonjaFinancial.com

SkrobonjaWealth.com

BuildBanking.com

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

Generational Planning by Brian Skrobonja

Retirement Planning: Have A Plan So You Can Live Your Life by Brian Skrobonja

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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In this episode we talk about the importance of using key performance indicators beyond just investment performance to gauge the health of one's retirement plan.

There are five crucial data points that form the foundation of a successful retirement strategy: passive income, effective tax rate, cash flow ratio, banking capacity, and horizontal asset allocation. By focusing on these metrics, you can adopt a comprehensive approach to retirement planning that factors in various financial variables and bridges the gaps in your financial plan.

• Business owners use KPIs or key performance indicators to track and understand the health of their business and marketing efforts. Those planning for retirement should consider their retirement KPIs to help measure the health of their financial situation.
• People often make the mistake of substituting investment performance for more meaningful key performance indicators. ROI is not the only KPI you should be paying attention to.
• People often view their finances in silos and tend to make standalone decisions about what to do while leaving out other important variables concerning their situation, which can result in having gaps in their overall retirement plan design.
• For example, the stock market can go down, but that doesn’t necessarily mean your plan should change. The flipside is also true: the market may be up, but that could mean you need to make adjustments.
• Knowing what KPIs to use and how to use them can help measure the health of your overall financial situation, not just track portfolio performance.
• A KPI is simply a collection of data points that helps provide a consistent method for measuring and monitoring the health of your retirement plan.
• In my experience, there are five key data points needed to measure the effectiveness of a retirement plan.
• The first is passive income.
  • Income is an obvious component and the central theme of a retirement plan.
  • Income is not growth of a share or unit of a particular investment. It is the income generated from the share or unit of an investment.
  • If there is a retirement income gap of $5,000 each month, the goal of the retirement plan is to not simply cash out investments each month or spend down savings to meet the goal. It is to create passive income sources that can consistently provide the cash flow.
  • Missing this point can be catastrophic to the longevity of a retirement plan.
• The second is the effective tax rate.
  • Tax rates in the United States of America are progressive. The more you make, the higher the marginal rate is on portions of your income. Marginal rates have their place when filing a return or making decisions about asset positioning.
  • The effective tax rate is a single rate that's calculated using the total taxes that are paid against the gross income. This percentage gives us a better overall understanding of the impact taxes are having on retirement income.
  • If the retirement income gap is $5,000 each month and the effective tax rate is 30%, we can determine the additional amount of income required to cover the tax liabilities.
  • The more tax mitigation techniques you incorporate into a retirement plan, the less pressure there is on your assets to generate additional income just to pay the tax.
• The third is cash flow ratio.
  • People often define cash flow too narrowly and often exclude things like taxes, retirement savings and health insurance premiums, which leaves gaps in understanding.
  • It is also important to know the ratio of income to bank payments, taxes, savings insurance, as well as fixed and variable expenses.
  • It’s also important to know the earned income versus passive income ratio along with the number of different income sources you rely on to fund your lifestyle.
• The fourth is your banking capacity.
  • When it comes to asset allocation, there is often the out-of-the-box structure where assets are divided up between investments and bank accounts. This approach oversimplifies a more complex situation and overlooks the realities of life and how people actually use and spend money.
  • There are many factors to consider outside of just growing assets and covering emergencies, such as big ticket purchases and other family needs, that could benefit from incorporating a family bank into the financial plan.
  • A family bank, aka Build Banking, is a specially designed life insurance contract that enables a family to have banking capabilities within their own financial ecosystem without relying on an actual bank outside of their financial situation.
  • This piece is usually missing from most retirement plans.
• The fifth is horizontal asset allocation.
  • Most people think of diversification as a vertical landscape of public market investments such as stocks, bonds, and mutual funds or ETFs, but that’s the wrong idea.
  • Asset allocation is similar to gardening. It requires diversity in many different forms to help manage growth, produce income, minimize risk and mitigate taxes.
  • Adding things such as real estate businesses, private equity, life insurance, annuities, amongst other things, can provide characteristics and other elements of stability to help support a retirement plan.
• To develop a retirement plan, you must first identify the gaps in your existing situation, and then begin to work out on strategies to help fill those gaps. Having a way to measure passive income tax exposure, cashflow, asset allocation, and your baking capacity are the most important metrics to start with.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/thegapreportstart

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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In this episode on Certificates of Deposit (CDs) as investments, we talk about the nuanced decision-making involved in purchasing CDs and whether or not CDs are good investments, particularly in a rising interest rate environment, and we explain why interest rates are the only factor you need to consider.

Wealth creation isn't solely dependent on CD rates, and we need to consider the impact of inflation and interest rates to gain a comprehensive financial perspective. The episode also explores how government strategies to combat inflation by adjusting interest rates impact not only investors, but also shape the attractiveness of CDs as an investment option.

• In a rising interest rate environment, buying CDs may seem like a good idea but it depends on your needs and goals.
• Wealth isn't created by buying a CD based on a rate. It's created by understanding why the rate may not be all that important.
• Banks look at what is known as the federal funds rate, also known as a benchmark rate. This is the rate banks charge one another to borrow money overnight that's needed to maintain reserve requirements.
• Upstream in the decision making process is the Federal Open Market Committee or FOMC, who meet throughout the year to discuss and set monetary policy. Within these policies, rates are set and typically linked to inflation.
• When those rates are set, banks may adjust rates on loans, deposits and certificates of deposit. But just like any business, banks will adjust rates to compete in their market as they seek to cover their costs and maintain a profit.
• CDs specifically are an attractive tool for banks, because unlike a deposit account, CDs actually lock up customers with a maturity date, which gives banks better control of their cash flow. The higher rates draw in customers seeking to maximize their returns.
• Rates on CDs matter, but not as much when you factor in inflation and interest rates. If inflation is at 7% and interest rates are at 5%, the net is 2%. The same is true if inflation is at 0% and interest rates are at 2%. You have to look at both numbers to get a full picture.
• When you consider the gridlock within the housing market and the amount of debt our government holds, it's hard to believe rates can remain elevated over the long term. The government is desperately trying to combat inflation by raising rates.
• These higher rates not only impact consumers, but they also impact the government. According to the Congressional Budget Office, or CBO, in June of 2023, they projected that annual net interest costs on the federal debt would total $663 billion in 2023 and almost double over the next decade. Interest payments would total around $71 trillion over the next 30 years, taking up to 35% of all federal revenue by 2053.
• These numbers are impacted by interest rates and with lower rates come lower interest payments, so the government has reasons to see rates lower than they currently are.
• The question is: Does it make sense to lock in CD rates while rates are high? It depends. If you have money sitting in a bank account that you don't need and the CD rate is offering a higher rate than your savings, then it might be a good option.
• A good idea is to compare CD rates to other options like fixed annuities and money markets since they share some similarities but also have a few key differences that could make one choice better for your situation.
• Certificates of Deposit are offered by banks as a savings account that offers a fixed interest rate over a specified period of time, ranging from one month up to five years. They carry penalties if funds are removed before maturity, and they're FDIC insured up to $250,000.
• Fixed Rate annuities are issued by insurance companies and are financial products that offer a fixed interest rate over a specified period of time. Early withdrawals can incur a penalty, and interest earnings are tax deferred until you start taking distributions. The guarantees are backed by the claims paying ability of the insurance company and are insured by what is known as the State Guarantee Association.
• Money markets are funds issued by financial institutions that are backed by highly liquid short maturity investments. Maturities usually range from overnight to just under a year, and assets can be quickly converted to cash with minimal loss of value. They are generally considered more risky than a bank, CD or insurance company annuity, and the underlying investments include such things as treasury bills, commercial paper and CDs.
• While CDs offer the safety of fixed returns, they are not devoid of risks and limitations. It's essential to understand both the micro and macro economic factors that affect CD rates before diving in.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

“What to Know About How Banks Work”

The State Guaranty Association

References for this episode:

https://www.pbs.org/newshour/economy/americans-faith-in-banks-hit-low-after-failures-says-ap-norc-poll

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

https://fortune.com/recommends/banking/will-cd-rates-go-up

https://www.usbank.com/investing/financial-perspectives/market-news/federal-reserve-tapering-asset-purchases.html

https://www.pgpf.org/analysis/2023/07/higher-interest-rates-will-raise-interest-costs-on-the-national-debt

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

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In this episode, we delve into the link between overall retirement quality and the confidence you have in your financial plan. We emphasize how a well-designed retirement strategy tailored to your needs, not solely reliant on market performance, is pivotal for boosting confidence and making your retirement plan a reality you can rely on.

Addressing common fears, exploring emotional extremes, and understanding the evolving landscape of retirement planning, will help you discover the significance of income-focused strategies and a diversified asset approach in building confidence in your retirement plan.

• When it comes to retirement, your quality of life in these golden years is often predicated on the level of confidence you have regarding your situation. A poorly-designed retirement plan can often cause emotional confusion, which leaves you feeling insecure and lacking confidence.
• Confidence is typically at its peak when a plan is optimized and is designed around meeting the needs of the client and not relying entirely on market performance.
• Retirement confidence is in direct correlation with how well your plan is designed to manage your exposure to risk and its ability to fulfill cash flow requirements. A plan built on hope and optimism can lead to very emotional times when the market doesn’t work out the way you’d hoped.
• Many client conversations relating to retirement are often centered around insecurities the client is working through.
• Common fears include running out of money before running out of life, market crashes, having a health crisis, missing opportunities, or simply making mistakes.
• There are typically two emotional extremes, no confidence or complete overconfidence.
• A lack of confidence leads to avoidance behavior and avoiding decisions, which often makes a person vulnerable to the very things they are afraid of.
• Overconfidence leads people to underestimate their vulnerabilities.
• Being skittish or practicing decision avoidance or fearing the idea of making a bad decision are all confidence killers, and the ultimate irony of this behavior is actually preventing the solution from being implemented, which can turn your fears into a reality.
• Confidence is about being able to rely on your retirement plan to do what you need it to do. If your retirement plan is anchored to the stock market, your confidence level relies entirely on the performance of the market.
• Most people’s retirement plans involve a stock market portfolio they plan to liquidate over time, Social Security, and a pension, but that’s really just the start.
• This paradigm seems to be rooted in watching our parents or grandparents work for decades in the same job and then retire with their pensions and Social Security benefits. However, circumstances have changed, and what worked back then isn’t going to cut it now.
• Pensions and company-provided retirement plans have been on the decline since the 1980’s. Baby Boomers started putting their money into retirement plans starting in the 90’s, which caused a growing stock market. 2016 was the first year that Baby Boomers started taking out money from those accounts.
• Those who ran the markets up are now the same group that is putting selling pressure on the markets, but there are other influences as well: government spending and policy, Fed policy, pandemics, interest rates, inflation, and more.
• When you lack certainty in the market, algorithms and a 24/7 news cycle can exacerbate the situation.
• There are two fundamental things that can have a profound impact on your retirement confidence. First is solving for income using income products. The foundation of a retirement plan is to generate consistent income, and unfortunately, consistency is not synonymous with the stock market.
• Separating your assets between long-term growth in public investments and income-generating private and fixed assets is a crucial component of being confident in your overall retirement plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

Brian's article - ‘Five Common Retirement Mistakes and How to Avoid Them’

References for this episode:

https://www.dol.gov/general/topic/retirement/erisa

https://www.thestreet.com/personal-finance/baby-boomers-could-cause-market-crash-12117996

https://www.forbes.com/sites/lizfrazierpeck/2021/02/11/the-coronavirus-crash-of-2020-and-the-investing-lesson-it-taught-us/?sh=17701bd846cf

https://www.marketwatch.com/story/u-s-stocks-would-be-much-lower-if-it-wasnt-for-excessive-government-spending-morgan-stanleys-mike-wilson-says-1b8e65d2

https://www.nasdaq.com/articles/what-does-the-fed-do-and-how-does-it-impact-the-stock-market

https://thefga.org/blog/president-biden-is-wrong-about-esg-heres-why/?gclid=CjwKCAjwvfmoBhAwEiwAG2tqzIhc3F2QbmLEygcbkIg9eV7bhXUz3dzXhO1A_hTNE3hNsMbTug59txoCPcwQAvD_BwE

https://centerpointsecurities.com/stock-market-algorithms/#:~:text=The%20main%20thing%20traders%20need,because%20you%20may%20lose%20fast.

https://www.statista.com/statistics/191077/inflation-rate-in-the-usa-since-1990

https://www.bankrate.com/banking/cds/historical-cd-interest-rates

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

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The complexity of Social Security calculations can cause some confusion around when someone eligible should file and claim their benefit. There are a lot of variables to consider and acronyms to decipher that can make Social Security feel like a confusing hedge maze.

Let’s cut through some of the noise and clarify some of the most pressing questions around Social Security benefits and what questions you need to consider to determine what’s best for you and your family.

• Social Security has many layers, and the concept of eligibility can be pretty complex. It's not always clear when and how someone should begin taking their benefits because being eligible doesn't necessarily mean you should turn that benefit on.
• Social Security benefits can be turned on as early as age 62. Each year the benefit is delayed, you receive what is called a delayed retirement credit or DRC. These DRCs guarantee an automatic 8% increase in your Social Security benefit every year you delay up to age 70.
• There is also your full retirement age. This is the age when you are eligible to receive the full benefit without any offset for having earned income. Earned income being income from employment, which is different from income received from investments, pensions or annuities.
• For those born in 1960, or later, your FRA is age 67. Benefits are calculated by the Social Security Administration by taking 35 years of earnings that are indexed for inflation. Any years you didn’t work are counted as a zero in your average earnings calculation.
• These annual amounts are then totaled and divided by four and 20 months to arrive at the monthly figure known as your average indexed monthly earning. This number is different from your benefit amount. The SSA then applies a formula to that number which determines your primary insurance amount or PIA and this is your monthly Social Security benefit.
• If you choose to take your benefit before your FRA while employed, there's an offset that can significantly reduce the benefit if your income exceeds $21,240 in 2023. This reduction is $1 for every $2 of earned income over the limit. In the year you reach your FRA, the limit increases to $56,520 in 2023, with a benefit reduction of $1 for every $3 of earned income over the limit.
• After you've reached your FRA there's no earning limits and you receive the full benefit with no income offsets.
• Provisional income comes into play after your benefits are activated. Your provisional income is calculated by taking your adjusted gross income plus half of your Social Security benefit.
• If that total is less than $25,000, your Social Security benefit is not subject to federal tax. If it is above 25,000, but below 34,000, 50% of the benefit is taxed, and if it's above 34,000, 85% of the benefit is taxed.
• If you're a government employee, there's something called a Windfall Elimination Provision, or WEP. And there's also a Government Pension Offset, or GPO.
• There are three common conversations we have with clients when it comes to Social Security. The first thing is determining the breakeven point.
• One method for deciding when to take Social Security benefits involves calculating the breakeven point, this is the future point in time when the value of one option equals that of another.
• For example, if your FRA benefit is $2,000 a month, and $1,400 at age 62, there's a $600 a month difference. When compared to waiting the five years and taking the full amount, the breakeven point would be 11.6 years.
• Something else to keep in mind is that by taking a benefit early, you reduce the amount of spousal benefit made available since the benefit in and of itself has been reduced and this could be an important consideration.
• The second consideration relates to one's health and longevity. If you don’t expect to live past that breakeven point, taking the benefit early might make more sense.
• From this perspective, it could be a win-win situation if they start receiving benefits early and they live longer than expected because the payments continue.
• We can’t know our lifespan for certain, but if you're in poor health, taking benefits early might be a reasonable option.
• The third consideration involves a person's retirement income requirement.
• Many clients we work with see Social Security simply as a piece of the retirement income strategy, and aren't necessarily concerned with breakeven points as much as they are with maximizing their assets and the resources. Many clients opt to turn their Social Security benefits on instead of tapping into their assets in order to maintain growth.
• Using assets to generate income in retirement also comes with variables that are hard to predict, like the conditions of the stock market and economic policy. Social Security, in comparison, is stable and easy to predict.
• Figuring out your retirement income requires careful planning, which is why it’s crucial to work with a professional that understands Social Security and its role in your retirement plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

SSA.gov

References for this episode:

SSA.gov/benefits/retirement/planner/agereduction.html

SSA.gov/benefits/retirement/planner/delayret.html

SSA.gov/benefits/retirement/planner/agereduction.html

SSA.gov/benefits/retirement/planner/whileworking.html

SSA.gov/benefits/retirement/planner/whileworking.html

SSA.gov/benefits/retirement/planner/taxes.html

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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If you tune into social media, there are a lot of influencers and gurus peddling one-size-fits-all financial advice and unfortunately plenty of investors base their strategies on what these people recommend.

Find out why basing your investment decisions on what’s trending on TikTok is short sighted and discover the seven indispensable steps of building wealth that are the most common among our most successful clients.

• Conventional wisdom such as paying off mortgages, quickly maxing out 401(k)'s or buying only Term Life insurance can be short sighted.
• Wealth isn't created by following rules of thumb, random one-size-fits-all fixes, or chasing trendy financial tips. Wealth is created by developing a custom-tailored strategy that facilitates wealth creation and prepares you for the future.
• The wealthiest people aren't doing the same things as the other 99%.
• Avoid rushing and applying random tidbits of information without first creating a comprehensive wealth strategy. We all have to take a long-term strategic view of wealth creation.
• There are seven key steps in building wealth that are common amongst all of our most successful clients.
• The first step is understanding cash flow.
  • Cash Flow isn't about monthly budgeting. It's a 12-month roadmap that outlines where your money will go including savings, investments, and day-to-day expenses.
  • Effective cash flow management is about abundance and a focus on wealth creation.
  • Budgeting operates from scarcity and measures success by such things as paying off debt or simply making ends meet. Wealth doesn't just magically form out of scarcity.
• Step two is really understanding your investment risk tolerance.
  • Many investors carry far too much risk for their stated tolerance levels but have really no way of gauging what risks they're carrying.
  • It's crucial to know where you fall on the risk spectrum and to work with a professional to help you tailor your investment strategy.
  • Complete the questionnaire on our website to discover your risk tolerance and know where to start that conversation.
• Step three is to learn your tax allocation.
  • Knowing how to help mitigate tax liabilities is an essential aspect of building and keeping wealth.
  • Tax deferral methods like 401 K's can be useful in some situations, they are not what we would consider comprehensive tax strategies. A deferral is not a savings.
  • Knowing how to allocate assets to mitigate tax liabilities requires an understanding of your entire financial picture.
  • A professional trio of maybe a certified public accountant, CPA, certified private wealth advisor, CPW, or a tax attorney, is essential for making the most of the opportunities available to you.
• Step four is to understand investment verticals.
  • The more public market investments that are acquired such as stocks, bonds and mutual funds, the deeper the portfolio vertically grows, but adding more of the same to your portfolio doesn't necessarily mitigate the exposure to the risk you're trying to diversify away from.
  • Horizontal opportunities are outside of the same vertical such as real estate businesses, private equity, and life insurance annuities, and they don't share in the same risk pools that each vertical may be exposed to.
  • Effectively diversifying reduces the risk in a portfolio overall and forms a stable foundation to build on.
  • Don't put all your eggs into one vertical basket.
• Step five is establishing multiple streams of income.
  • Relying on a single source of income, like your job or a single investment is a risky proposition.
  • Businesses, royalties, passive income investments, or other consulting or freelance opportunities are all ways to create more than one stream of income.
  • More sources of income mean your financial situation is more robust during economic storms and you have more capacity to take advantage of opportunities.
• Number six is to adopt financial delegation.
  • There's usually an element of cost and trust when managing financial decisions in a DIY fashion. There comes a tipping point when the perceived savings of doing things on your own becomes an opportunity cost.
  • The complexities involved with wealth management require specialized support from professionals.
  • The cost of working with a professional can be seen as an investment when it opens up new opportunities and it allows you to focus on your strengths.
  • Delegate specific financial tasks to professionals like accountants, lawyers, and financial planners. This allows you to focus your time and effort on enjoying the benefits of having the help and the division of labor helps ensure that all aspects of your financial life are managed optimally.
• Step seven is finding your purpose.
  • Scroll social media and you'll find that there are countless examples of miserable wealthy people.
  • Money certainly makes things easier and helps you afford some privileged experiences but happiness is derived from inside of ourselves. You'll never have enough money and there's always something more to achieve.
  • Answering the question of what you would do or commit your life to if money was not the motivation can offer insight into what you feel like your purpose is.
• Building wealth is not about quick fixes or following the herd. It's about strategic informed decision making that requires an opportunity that looks at cashflow, risk tolerance, tax allocation, diverse investments, multiple income streams, financial delegation, and purpose.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Most business owners come into the financial game as the quarterback. They’re telling their CPA and financial advisor what they need and when they need it instead of working as a team to plan out a cohesive strategy.

This needs to change.

Listen to the latest episode of the podcast to learn why your business needs a financial team that works together, and how to incorporate tax planning strategies into your operation, so you’re not overpaying taxes and maximizing the odds of your long-term success.

• Tanner is a CPA with 22 years of experience in the tax world. Born and raised in Utah, Tanner was a natural mathematician and considered joining the FBI as an accountant but didn’t end up going that route. He spent 12 years with five different CPA firms, discovering what he liked and didn’t like, before venturing out on his own.
• The Trump tax cuts expire in 2025 and a lot of professionals are anticipating higher tax rates in the near future. One tax benefit that is likely to expire is the QBR deduction for small business owners.
• Every client is different, but one piece of advice that every business owner can benefit from is choosing the right entity. A lot will depend on what your lifestyle looks like and what you are already paying for.
• Tax deductions are great but finding tax credits is even better. A good example is the Research and Development tax credit, which can go back as many as three years.
• Most people wait until there is an immediate need to contact their CPA, but that leaves a lot of opportunity on the table.
• Tax planning is very different from tax preparation. Tax planning occurs throughout the year and is a more proactive approach that many don’t realize is an option.
• The relationship you have with your CPA is crucial and can play a pivotal role during tax season. With a good relationship you also get the benefit of your CPA’s experience in other industries. Taxes are changing all the time, so it helps to have someone you can reach out to throughout the year.
• Having a financial plan should incorporate tax mitigation strategies. You, your financial planner, your attorney, and your CPA should be working as a team to manage your business finances. The more they can communicate and work together, the more effective they can be.
• There are a lot of inefficiencies in your business by having your financial plan and tax plan operating in separate silos. Individually, everyone does their job well, but when working together they can really shine.
• Typically, there’s a three-year window on filing for a refund claim. If you feel like your current CPA may not be bringing all the opportunities to your attention, it might benefit you to get a second opinion.
• If you’re planning on selling your business, there are a few things to keep in mind. Is it a stock sale or an asset sale? Do you have clean and accurate records? Plan your sale as far out in advance as you can to make sure you have all that you need for a smooth transition.
• One of the most underrated and overlooked aspects of tax planning is your bookkeeping for your businesses. Monthly bookkeeping makes it a lot easier to plan and stay ahead of the finances and taxes compared to waiting until January or April to figure out what you have to do.
• If you make a lot of money, you're going to pay taxes, and that's just the way it is. But when it's a surprise, that's where the problem comes into play.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

MTAconsulting.net

Brian Skrobonja and Tanner Adams are not affiliated. There is no compensation exchanged between Brian Skrobonja and Tanner Adams.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Entrepreneurs by nature are continuously occupied with running their business and wearing multiple hats throughout the day just to keep things running smoothly. Unfortunately, that leads entrepreneurs into making a number of common mistakes.

Mistakes that damage the long-term success and potential of their business.

Listen to the latest episode of the podcast to learn about the four most common financial mistakes entrepreneurs make that put the future of their business at risk, and how you can avoid them.

• Many entrepreneurs find themselves underserved when it comes to financial planning and often rely too heavily on their CPA for financial advice.
• One common mistake entrepreneurs make is assuming that as long as they meet payroll, stay current on taxes and receive payments from customers, their business is financially healthy.
• The problem is CPAs primarily focus on looking backwards and reviewing the previous year or quarter to meet tax filing deadlines, instead of looking forward and making strategic plans for the following year.
• Proper financial planning can help your business reduce its tax liability and increase its profitability.
• Another common mistake is entrepreneurs take the profit of their business as income, which may not be the most efficient method of distribution. Proper planning helps find the balance between income and profit.
• Financial planning can also help you determine whether your business structure is still appropriate for where you are or if it needs to evolve.
• Financial planning also helps mitigate risk, and there are three major risks that every business faces: death, disability, and divorce. Any of these risks becoming a reality can seriously derail a business and its long-term potential.
• Entrepreneurs tend to visualize positive outcomes rather than seriously considering what could go wrong and how they should address those potential problems. Having a financial plan can include agreements and other triggering events that can help facilitate a smooth outcome when facing such events.
• Another common mistake made by business owners is treating the business exit as merely a transaction rather than a transition. Exiting the business involves more than just the sale itself; it requires planning for life after the exit.
• Owners frequently overvalue their business leading to unrealistic expectations regarding the outcome of the sale. Many business owners also underestimate the time and effort required to prepare for a successful exit.
• Preparation for a sale can take years of planning, if done right, and should be incorporated into an overall financial planning process.
• Another common mistake is succumbing to the pressure of spending money to avoid tax liabilities. While tax planning is essential, it should not be the sole, driving factor behind financial decisions.
• FOMO (fear of missing out) can also lead to poor cash flow management, where entrepreneurs may be tempted to seize every opportunity that comes their way without considering its compatibility with their business vision.
• By having a well defined cash flow plan, entrepreneurs can allocate resources efficiently, reduce financial stress, and build wealth inside and outside of their business while helping to maintain stability during both prosperous and challenging times.
• A cash flow strategy is an integral part of an overall financial plan and acts as a roadmap, guiding financial decisions and helping you make the most of the cash flow.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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High income professionals face a unique situation when it comes to their retirement. You have the dual challenge of having your money tied up in your investments and also looming tax burdens once you retire.

Listen to the latest episode of the podcast to learn about a Specially Designed Life Insurance policy, also known as a life insurance retirement plan, and how it could be the wealth preservation tool you’ve been looking for.

• A high cash value life insurance policy can help facilitate tax-advantaged growth that standard retirement accounts may not be able to match.
• Many professionals spend a considerable amount of effort accumulating wealth for most of their life only to find themselves in a bind: their money is inaccessible with looming tax burdens.
• High Income professionals often face a dual tax burden where their current high income places them in a high tax bracket, reducing the net income they have available for investment. Meanwhile, the money you've diligently saved in your retirement plan will be subjected to potentially hefty taxes upon withdrawal later in life.
• Retirement accounts are great vehicles for long-term savings, but they lack flexibility, and you're penalized for early withdrawals leaving you without a readily available source of funds for unexpected opportunities or emergencies.
• For high income individuals grappling with these issues, a Specially Designed Life Insurance policy may be the answer.
• A Specially Designed Life Insurance (SDLI) policy utilizes a high cash value life insurance policy to facilitate tax-advantaged growth and offer flexibility that standard retirement accounts simply can't match.
• Cash value builds over time in the policy, growing in a tax-deferred basis mirroring the benefits of a retirement account, yet the cash value can be accessed at any time through a non-recognition policy loan.
• If properly managed, these policy loans have flexibility and are not required to be repaid during your lifetime and can be simply deducted from the death benefit or cash surrender value when the policy pays out.
• The SDLI strategy enables you to tap into your wealth when needed, providing the liquidity to seize investment opportunities or meet unexpected expenses.
• The policy loans do have an interest charged on them, but well-designed policies provide an opportunity to offset the interest.
• Not all life insurance policies offer the features necessary to execute the strategy effectively. It's a delicate balance that must be carefully managed and is best done with the help of a professional.
• This strategic tool offers several other key advantages for wealth management, asset protection and estate planning.
• In many jurisdictions, life insurance policies are protected from creditors providing a shield for your assets.
• Life insurance can also play a crucial role in balancing out an estate amongst surviving family members.
• A life insurance policy can also provide immediate liquidity to family members or business partners upon a death, ensuring the continuity of a business or farm without the need to sell off assets.

• Life insurance proceeds can also provide a tax free inheritance to your beneficiaries, helping to preserve your legacy.

• A common pushback against using life insurance as an accumulation vehicle is the perception that it is expensive and takes a long time to accumulate substantial cash values. This is because most common policies are focused on maximizing a death benefit instead of rapid cash value accumulation.

• While there is an undeniable cost associated with a special desire life insurance policy, it's crucial to consider this expense in contrast to the potential tax liabilities.
• Retirement account distributions are generally taxed as ordinary income. For a high income individual, this can be losing a substantial chunk of your retirement savings to taxes.
• In many cases, the cost of a Specially Designed Life Insurance policy could be a mere fraction of what the tax liabilities may be on an investment growth over time.
• The true cost of these policies become apparent only when considering the full financial picture, including current and future tax burdens, access to cash and long-term wealth accumulation.
• A Specially Designed Life Insurance policy is not a catch-all solution but rather a tool within the context of a comprehensive wealth management plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

BuildBanking.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™️, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™️ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC. Any references to protection, safety or guarantees, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Skrobonja Insurance Services, LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.

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The concept of investing is often associated only with money and the pursuit of wealth, but this Annuities are a popular thing these days… why is that the case?

And are they a valid option for those planning their retirement?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja explores the world of annuities – from what they are and the three types of annuities all the way to four common myths, Brian’s “unpopular opinion” and why annuities and investments aren’t in competition.

Plus, Brian reveals what he considers the best way to accumulate wealth.

• You need to keep in mind that there are plenty of unknown factors in your life, such as how long you’re going to live, inflation, how the market is performing, healthcare costs, and economic shifts.
• Brian believes that the uncertainty surrounding retirement is why annuities are so popular.
• Annuities are a way to transfer risk over to an insurance company and provide some sense of safety for the future, says Brian.
• According to Statista, the risk of running out of money is a real concern for many retirees, with an estimated $2.53 trillion of retirement assets held inside of annuities.
• Brian breaks down the three types of annuities – variable, fixed-indexed, and fixed-rate – and shares a common misconception about income benefits.
• In his own words, Brian has an “unpopular” stance: he’s a believer in the fact that whether or not someone should use an annuity depends on their situation.
• Brian touches upon when it makes sense for you to use an annuity and when it doesn’t.
• “Capital appreciation over time” is what Brian considers the best way to accumulate wealth.
• Brian explains that annuities and investments aren’t in competition, because they both have a place at different times in someone’s life, depending on their needs.
• Brian goes over four common annuity-related myths.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify

Statista.com

Brian’s article: My 5-Minute Retirement Plan

Brian’s article: The Financial Fiduciary Standard Explained

Brian's article: What to Do With Cash in a Low Interest Rate Environment

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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The concept of investing is often associated only with money and the pursuit of wealth, but this fails to capture the true essence of investing.

An ideal future isn’t encapsulated by a stack of $100 bills.

The true essence of investing is not about building wealth, but about building the atmospheric conditions that align with your ideal future self.

Listen to the latest episode of the podcast to learn why a relentless focus on accumulating wealth will end up costing you what you’re actually working for, and why you need to have a more encompassing vision for what your retirement can be beyond your portfolio.

• Your quality of life isn’t determined just by the number in your bank account. Those dollars are merely the resources you use to create the ideal life.
• Wealth extends beyond the mere accumulation of money. It’s about the life you can construct around it and the atmospheric conditions you can create for yourself.
• You can possess all the wealth in the world, but without the cornerstones of a healthy life like thriving relationships, health, purpose and meaning, the value of that wealth diminishes.
• We need to exercise caution in our perception of wealth and the significance we ascribe to money. Investing shouldn’t only mean contributing to your financial future but should be considered building towards your ideal future.
• Having a vision for your retirement that involves activities and people requires a keen understanding of what’s important.
• Brian had a client who embodied the rags to riches narrative that people in the West admire so much, but after years of diligently working toward accumulating his wealth, this client ended up sacrificing his health. Instead of traveling the world and enjoying the fruits of his labor, this client spent his golden years visiting doctors and hospitals.
• “Man sacrifices his health to make money, then he sacrifices his money to recuperate his health.” -Dalai Lama
• A healthy lifestyle lays the foundation for our capacity to live fully and pursue our ambitions actively. The importance of investing in health can not be overstated.
• Along with health, investing into your relationships is paramount. Relationships form an integral part of our support system. The rewards are not always monetary, but they are no less important, and investing time into relationships is crucial.
• Investing into a steady flow of income beyond just building a portfolio is another key component to enjoying your retirement.
• Growth is not income generating and growth is not the same as income. Retirement needs to be a time of shifting from a diversification of growth assets into a diversification of income producing assets.
• The true essence of investing is not about building wealth, but about building the atmospheric conditions that aligns with your ideal future self. That includes nurturing your health, cultivating meaningful relationships, ensuring a steady income, and fostering cognitive ability.
• Money is a tool to reach those goals, and not the goal itself.
• Retirement should be seen as a chapter in your life that is ripe with potential.
• True wealth is not just the abundance of money, but the presence of all the components that make life fulfilling.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

Previous episode - Make Health Planning Part of Your Retirement Planning, with Regan Archibald

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Many people accumulate their wealth in a bank or a long-term investment, and this may create problems.

But there is a different strategy.

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over the Build Banking strategy and how you can consider a different banking paradigm using specially designed life insurance policies that allow you to start banking on yourself.

• Most people know that banks use other people’s money to generate profits. This process is known as Fractional Reserve Banking, which is basically the bank using the spread between interest rates to profit.
• For banks, it goes a little deeper. Banks can loan out the money they have on deposit to people, and those dollars are then deposited again, which begins the cycle anew. This process acts as a money-printing machine within the economy.
• Banks aren’t currently required to hold any reserves to cover their customer’s deposits. The result of Fractional Reserve Banking is the expansion of the money supply which contributes to increased inflation.
• Silicon Valley Bank recently found itself in trouble and was unable to cover its liabilities leaving depositors to rely on the government to bail them out.
• It’s not realistic to be able to bypass the banking system entirely, but there are ways to take control of how you save and store money with a personal bank-like strategy.
• Build Banking uses a specially designed whole life insurance policy that’s built on the inherent tax-favored nature and unique capabilities of those policies.
• What makes Build Banking different is the design allows for rapid cash accumulation with uninterrupted tax-free growth, while having access to cash without having to rely on banks or Wall Street, but you have to set aside your preconceptions around life insurance.
• The challenge is the language around life insurance policies and how most people understand what they are capable of.
• With traditional banking, you either accumulate money and spend or borrow and then repay it. The Build Banking method offers a different strategy with a specially designed life insurance system that allows you to take back some of the control.
• Not all policies are the same and loan features can vary greatly, so it’s important to work with a professional with experience in this area.
• The main benefit of the Build Banking strategy is the ability to have your money remain in the policy and continue to grow uninterrupted, while simultaneously using a policy loan from the insurance company for personal use.
• A business owner has an extra advantage because they can leverage the loan in their business, creating both an internal and external return.
• This strategy also gives the policy owner a lot of control over how and when the loan is repaid because of the nature of the life insurance policy.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

BUILD Banking™️ is a DBA of Skrobonja Insurance Services, LLC. Benefits and guarantees are based on the claims paying ability of the insurance company. Not FDIC insured. Results may vary.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™️, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™️ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC.

Any references to protection, safety or guarantees, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Skrobonja Insurance Services, LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Time is your most precious resource, but how you use it is up to you.

The shift from earning to retirement can be quite challenging, as you have to thread the needle between income, growth, and time.

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over the most important mindset shift people need to make in order for their retirement plan to succeed.

• It is possible to retire without growth, but it’s impossible to succeed without income. But many people have trouble shifting their mindset from focusing on long-term growth into a consistent and reliable income.
• When you invest long-term, that means not having to withdraw money from your assets for a long time. But once you enter retirement, your timeline moves from the future to the present.
• This transition requires a mindset shift to be made before significant progress can be made.
• Retirement planning is a discovery process that boils down to learning whether or not you have an income gap in retirement and, once that’s discovered, the whole plan is built around replacing that income.
• Without that number, everything else is a guessing game. If you shortcut this step with estimates, you will only compound the issue downstream.
• Retirement seems like a simple concept, but it’s surprisingly complex and solving the issue with old ways of thinking will lead you astray.
• Future performance of investments can’t be determined by looking at the past. An investment doesn’t address the risks you face in retirement. The sooner you figure out that investing is a spoke in a very large wheel, the sooner you can begin to formulate a true retirement roadmap.
• There are common components for retirement scenarios, like the income gap.
• There are also common risks that all retirement plans need to account for: sequence of return risk, market risk, interest rate risk, mortality risk, legislative risk, longevity risk, and health risk. All retirement plans should be built around the idea of protecting yourself and mitigating as much risk as you possibly can.
• Most people’s largest asset is their income, but it’s often not considered for insurance.
• Confirmation bias can hinder our ability to consider alternative perspectives and make the mindset shifts we need to make in retirement. People can find themselves endlessly searching for experts to tell them that they don’t need to change their strategy in retirement because of our natural need to confirm our beliefs.
• The more successful a person becomes, the more valuable their time becomes. To preserve those valuable hours, it becomes increasingly more important to surround yourself with professionals to whom you can delegate responsibilities to free up time.
• Insurance is just a form of delegation. You delegate your risk to the insurance company, which mitigates the risk and increases the quality of your time.
• Delegating the research and leveraging the experience of a professional in retirement planning can help you leverage your time with confidence.

Mentioned in this episode:

BrianSkrobonja.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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“The more money you have, the bigger the mistakes,” someone once told Brian…

How does that translate into retirement planning? And how can you help ensure you approach your financial planning for your “golden years” in the best possible way?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja goes over five retirement mistakes that you should stay away from at all costs, as well as what retirement is actually about.

• Brian touches upon something that a very successful person told him when he was getting started with his business back in 1993: ‘The more money you have, the bigger the mistakes.’
• With his desire to work hard and strong work ethic, Brian quickly became successful. But there was a problem with his approach – Brian opens up about that.
• Brian shares some of the retirement mistakes he has seen people make in his 30-year career.
• Having a distorted view of what wealth really is and having what Brian calls “vertical diversification” are two common mistakes Brian has seen over and over again in his career.
• There are many factors to consider when attempting to diversify. You shouldn’t believe that a bank account and a portfolio of public investments are all that’s available to you as you move your diversification horizontally.
• Brian points out a common practice to avoid: making an investment decision based on the tax deduction alone.
• When making decisions regarding how you save money, Brian suggests considering how you’ll ultimately use the money.
• Brian discusses why you shouldn’t have too much dependency on markets nor having complacency.
• Brian sees retirement as a balancing act between growing money for the future while drawing income for your retirement needs.

Mentioned in this episode:

BrianSkrobonja.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Are you part of that 68% of people who would like to have a personalized financial plan, but aren’t sure where to find a financial advisor?

What should you pay attention to when trying to get a financial planning expert to help you, and you’re evaluating different options?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja shares six factors you should keep into consideration and look at when going through different financial advisor options.

• According to a May 2022 PR Newswire survey, 68% of people would like to have a personalized financial plan, but they’re not sure where to find a financial advisor.
• Brian sees information-gathering and understanding that planning isn’t the same as investing are the biggest mental hurdles of financial planning.
• When it comes to picking a financial advisor, there are six primary factors Brian suggests looking at.
• A 2022 study found that 80-90% of advisors fail in the first three years of practice – the main reason being the steep learning curve involved in serving clients.
• 10 years is the minimum that Brian would look for in terms of experience a financial advisor has.
• Brian discusses the different designations a financial advisor might have.
• Brian touches upon the importance of whether a financial advisor owns the company and the range of services they offer.

Mentioned in this episode:

BrianSkrobonja.com

Dan Sullivan

Chat GPT

FINRA

The Financial Fiduciary Standard Explained (2021 Kipliger article by Brian)

Reference for this episode:

https://www.prnewswire.com/news-releases/nearly-3-in-5-americans-59-want-financial-advice-but-are-not-sure-where-to-get-it-according-to-intelliflo-survey-301494402.html

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Past performance is no guarantee of future returns. Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This video is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. Our firm is not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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You feel healthy so everything is okay, right? Have you ever thought that health planning should be part of your retirement planning efforts?

If you’ve answered ‘yes,’ pay close attention to Regan Archibald!

Regan joins host Brian Skrobonja to discuss how people should approach health planning, the world of preventive care, the role of nutrition, and why longevity medicine is something you should be mindful of.

• Regan Archibald kicks off the conversation by sharing his origin story.
• In his work with entrepreneurs, Regan has found that when people focus on creating more balance and focus on their health, their business improves – and so does everything else.
• One of the major health issues both Regan and Brian have noticed is that many people think that if they feel okay, everything is okay…
• Regan stresses the importance not only to focus on a certain problem (like high blood pressure) but on trying to understand its cause (so, asking “Why is my blood pressure high?”).
• Regan illustrates how longevity medicine and financial planning share some of the same characteristics.
• “Peptides have been one of the most exciting developments,” says Regan. He explains why that’s the case.
• Regan believes that people should approach their health insurance the same way they approach their car insurance.
• What’s a good amount to budget toward health planning? For Regan, the answer to that is $15k/year.
• For Regan, making your health the #1 priority so that you feel it internally, is an excellent way to get started with health planning.
• Brian and Regan talk about what working with Regan actually looks like, and discuss diets and how to approach nutrition.

Mentioned in this episode:

BrianSkrobonja.com

ThePeptideExpert.com

Unreasonable Health Podcast

The Peptide Blueprint: Achieving Optimal Health and Performance at Any Age

Never Stop Healing: The Unknown Shortcuts With Peptides for an Extraordinary Life

EastWest Health

Dan Sullivan

Peter Diamandis

Bryan Johnson

Charles Schwab

Head Strong: The Bulletproof Plan to Activate Untapped Brain Energy to Work Smarter and Think Faster by Dave Asprey

Chat GPT

Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, MAS and Regan Archibald are not affiliated entities. NO compensation has been exchanged between Brian Skrobonja and Regan Archibald.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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What comes to mind when you think about retiring? Is it enjoying your "golden years"?

That's an outdated approach, says today's guest Dean Jackson!

He joins host Brian Skrobonja to discuss a new way to think about retirement – and how doing things this way will change your life – the concept of "pre-tiring," two types of economy, and what "money hobby" and self-managing companies are all about.

• The idea of the conversation with Dean came to Brian as the result of conversations he has been having with clients, plus the increased longevity and the outdated models that are still presented as the tools to approach retirement planning.
• From an early age, Dean realized the difference between what Dan Sullivan calls the time & effort economy, and the results economy.
• In the first type of economy. you get paid a fixed amount for your time and effort, whereas in the latter. you’re paid by the results you create.
• Dean has been “pre-tiring” since 1999, splitting his time between Canada and Florida.
• For Dean, trying to define what success means to you and what your ideal lifestyle looks like are key aspects to reflect on.
• Society has been structured in a way where people worked with an eye on retirement, where they would spend their golden years. Now, things have changed.
• As Dean points out, there are billions of definitions of what "a perfect life" looks like, and "everyone’s in possession of what could be a perfect life in their definition."
• The key is filling the blank, using your own situation and words, in regards to the sentence "I know I’ll be successful when ____."
• Rehearsing for retirement is one of the things Brian has been helping clients with. Retirement is a transition, so being prepared for it is crucial.
• Dean believes that one of the important steps to take to prepare for the transition into retirement is what he calls "money hobby."
• Find something you’re truly passionate about and look at whether you can turn it into some kind of business, like the Ryan’s Toys YouTube channel, for example.
• Brian thinks that retirement isn’t an age but a mindset. You can retire at 65 or at 35 if you have the right mindset and path to run down to create passive income.
• Citing Dan Sullivan’s ideas and work, Dean and Brian touch upon the whole idea of life extender and making your future bigger than your past.
• For Dean, it isn’t about how to do something but who can get something done for your company.
• You should decide whether you want to find a who that can help you with a specific thing – you can then turn into a business – or become that who yourself, for someone else’s business, and do the what you really love.
• Dean talks about the so-called eight profit activators, a blueprint that’s universally applicable to all businesses. It’s about looking for opportunities to activate profits in any of the eight areas.

Mentioned in this episode:

BrianSkrobonja.com

Previous episode - Retirement is Not an Age

DeanJackson.com

Dan Sullivan - StrategicCoach.com/our-team/#/people/dan-sullivan

Tony Robbins’ New Money Master program

Thomas Leonard

Shopify.com

Ryan’s World on YouTube

Chat GPT

Brian, Dean Jackson and MAS are not affiliated entities.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Life when you’re gone… an uncomfortable conversation most people prefer to avoid.

Why isn’t that a good idea? How can estate planning help you ensure that things are taken care of once you aren’t around anymore?

Listen to learn about big mistakes people make, the different elements that make up the estate plan puzzle, the three primary areas of cash flow, and the type of plan you should have in place.

• When it comes to end of life financial planning, many people tend to put it off because it’s an uncomfortable conversation to have.
• Even though the process for end of life planning is relatively simple in nature, Brian recommends getting professional help to deal with the details, which can be complex.
• Despite every situation being different, there are several core aspects of estate planning that everyone should consider.
• The first has to do with title and legal work. Brian has noticed that many people have a complete misunderstanding of the role legal work plays within their planning.
• Then, there’s life insurance. Many households rely on two incomes – or people – contributing to the family’s ecosystem.
• Their contribution to the family must be replaced when they’re gone, and that’s where life insurance comes into play.
• Another important, but often overlooked, aspect to an estate plan is budgets and cash flow. Brian doesn’t recommend planning in terms of weeks or months for it… rather, to plan in terms of years.
• “Your cash flow can be broken down into three primary areas,” says Brian. “Reoccurring obligations, irregular obligations, and savings.”
• Debts and investments are an additional area that makes up the estate plan puzzle.
• Brian stresses the importance of cash flow and shares a couple of examples that illustrate its key role.
• End of life planning is a difficult topic to address. Brian’s suggestion is to take steps to protect your loved ones by creating a custom comprehensive plan with the help of professionals.
• After that, the next step is to communicate the plan with your partner and family members – then, enjoy the peace of mind that comes along with knowing you have done everything in your power to provide for your loved ones.

Mentioned in this episode:

BrianSkrobonja.com

Estate Planning Checklist

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Did you know that a good part of American households haven’t thought about retirement planning?

When it comes to planning for retirement, there are some key concepts to understand and three traps you should do your best to avoid.

Listen to learn why a money increase doesn’t always equal a lifestyle enhancement, the three things people often look at but that come back to bite them later on, and how you can effectively plan for retirement and protect your money.

• As life expectancy increases, people will be finding themselves needing to save more money for retirement.
• Brian believes that it’s going to be possible to be retired for as many years as one has worked, because people are living longer than ever before.
• According to a 2019 retirement confidence survey by the Employee Benefit Research Institute, more than half of American households are at risk of running out of money in retirement due to the lack of savings and the unpredictability of the stock market.
• If you look back and think about how much money you were making when you first started working and compare it to today, you should see an increase.
• However, more than a lifestyle enhancement, the increase is just an inflation adjustment. And the crazy thing is that only 42% of Americans have tried to calculate how much money they will need for retirement!
• Brian has noticed that many people go into retirement because of eligibility, without having actually calculated how much money they would need – this is a problem, especially because of three things that are outside of their control: inflation, markets, and taxes.
• To offset inflation, you need to earn more on your money than the inflation rate that is eroding your purchasing power.
• Want to protect yourself from market losses? Then, you either need to not be in the market or work to insulate your portfolio through diversification strategies that are challenging for most people to leverage.
• As far as taxes are concerned, the best way to tackle them would be to focus on building tax-free assets and stop the propensity to kick the “tax can” down the road.
• Even though these may sound like obvious moves, Brian has seen people do the opposite – with things like funding their 401k accounts, parking money in the bank, or pouring it into the stock market.
• Brian warns against tapping into the stock market as a means to draw income because it’s the Government and Wall Street that have control over it, not you.
• There’s a key difference that some people tend to forget when it comes to retirement planning: accumulating money is done one way, drawing income for retirement is done another way.
• Brian stresses the importance of not taking retirement planning lightly.
• Remember: underestimating the amount of money needed to maintain a comfortable lifestyle in retirement, or relying on too many things outside of your control can be a significant financial risk.

Mentioned in this episode:

BrianSkrobonja.com

BrianSkrobonja.com/FamilyOfficeQuiz

Center for Disease Control

Pew Research Center

Employee Benefit Research Institute

Susan Powter

Chat GPT

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clientsor prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Our firm is not permitted to offer and no statement made during this podcast shall constitute tax or legal advice.

Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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You can live without saving money, and you can live with debt, but you cannot live without cash flow. In fact, if you want your personal finance to flourish, cash flow is a key element you need to focus on – passive income too. Why is that the case?

Find out about critical personal financing missteps you should avoid making, what to focus on to measure financial progress and happiness, and the key traits you can learn from the happiest and most successful people to win more in personal finance.

• Just like many other areas of life, personal finance too is dependent on your own tank both from a mental, physical, and resources standpoint.
• Trying to do too much with their resources is one of the most common personal finance missteps people make.
• There’s a tendency of segregating financial goals into silos and of gravitating towards what looks easiest over what is often best – which typically leads to personal finance goals not being achieved.
• Brian believes that the key to maximizing your capabilities should be on building resources, and then creating cash flow from them to fund everything else.
• Passive income plays a crucial role in that it fills your income gap, allowing you to free up your time.
• Brian sees people often getting caught up in their silos and finding themselves beholden to their system of working to spend.
• It’s possible to live without saving money, and with debt, but it’s impossible to live without cash flow.
• How do you measure financial progress? To identify what makes them happy, people often go beyond financial aspects and look at things such as family, friends, faith, fitness, and free time.
• Once you have this aspect figured out, you can either do everything by yourself – with all the risks that this approach entails – or you can delegate.
• In The 7 Habits of Highly Effective People, Stephen Covey explains that the happiest and most successful people have figured out how to buy more time by relying on professionals with the knowledge and experience to help them manage their relationships, health, time, and money.
• Tom Rath, author of Stengths Finder 2.0, has found that successful people tend to leverage strengths and delegate weaknesses. They spend their time on things they’re good at and want to spend their time on, and they delegate the tasks they can gain more time from by not doing them.

Mentioned in this episode:

BrianSkrobonja.com

BrianSkrobonja.com/FamilyOfficeQuiz

Chat GPT

The 7 Habits of Highly Effective People by Stephen Covey

Strengths Finder 2.0 by Tom Rath

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Emergencies and retirement. This is what we're taught to save for. But what if you created a different system, which allowed you to pay for the expenses you will incur between now and retirement age – without losing the ability to build wealth?

Find out why you may need to rethink your financial planning approach and what you should do about the “Missing Middle.”

• According to popular opinion, sound financial planning advice typically consists of two main steps: saving for emergencies and saving for retirement.
• Brian found this to be slightly misleading because of the phenomenon he refers to as “The Missing Middle.”
• Think about how life generally goes: there are car payments, furniture, credit cards, tuition… you also have money going into an account that you can’t touch until you’re 60 and then, before you know it, you have thousands of dollars of debt. And that’s by following general advice.
• However, opting for a less traditional and more customized approach allows you to pay for the expenses you incur between now and retirement – the middle of your life, without entirely losing the ability to build wealth.
• Brian believes that the real benchmark you’re going to use should be based on your personal needs, goals, and financial situation.
• When there are big expenses people don’t account for in their regular cash flow, one of two things happens.
• People either continually deplete savings in order to pay for the things in cash (constantly funneling money back into their bank account to replenish the emergency fund).
• Alternatively, they finance everything with bank loans and credit cards. Neither option leads to wealth being created.
• Brian is convinced that you should model your entire financial life around your actual life, instead of around arbitrary concepts or ideas that don’t fit into the puzzle of what you’re actually trying to create (Brian calls this Your Life Cycle Model).
• In the Life Cycle Model individuals allocate resources over their lifetime with the aim of avoiding sharp changes in their standard of living, while avoiding debt and simultaneously building wealth.
• Brian explains how using the so-called build banking instead of a traditional bank can help you leverage the Life Cycle Model (and why you shouldn’t compare it to the stock market).
• People tend to separate their money into two buckets: saving and spending. Brian explains why that may not be the best of approaches – and what to do instead.

Mentioned in this episode:

BrianSkrobonja.com

BuildBanking.com

How Long Will My Money Last in Retirement

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in place. Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

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Retirement isn’t a thing that happens. It's a time of life that needs to be planned for. When it comes to planning for retirement, there are a huge number of assumptions that people make about what’s going to happen and when, but what if those assumptions are wrong? Find out why you may need to rethink your retirement plans.

• Most people envision retirement as a destination. A fixed point in time where their pension or Social Security begins, but retirement is a transition, not a timestamp.
• Planning for the rest of your life requires certainty, not hope and optimism. Most retirees retire while relying on things that are out of their control, and on assumptions made in the past.
• They assume the rate of return, their income needs, their life expectancy, inflation rates and tax liabilities.
• Take longevity. The world of health and medicine is likely to make a major transformation. We are already seeing more people live beyond the age of 100. What if your retirement plan had to take into account you living an additional 10 to 20 years?
• The 4% Rule may make sense if you live an average of 30 years as a retired person, but if the average lifespan keeps increasing, the 4% Rule could lead to disaster instead.
• Any financial strategy that relies entirely on the stock market for support relies on performance that you have absolutely no control over.
• Looking at the past performance of the market doesn’t paint a great picture, and even averages can be misleading if you’re looking at a large enough time period. The problem is compounded when you add in withdrawals in retirement.
• Sequence of return risk is a major problem all retirees face. Making withdrawals during a down period can rapidly deplete your assets.
• Taxes are never going to go away. The government controls us using the tax code and there are 1000s, if not millions of jobs supported by having a complicated tax code. Every administration wants to either tax the rich or cut taxes on the middle class, and you can’t be sure what’s going to happen when you’re retired.
• We are guaranteed a tax increase in 2025 whether or not anything changes. Inflation is another constant that we need to take into account.
• It’s risky business when your plan is heavily reliant on consistent stock market returns, low taxes, low inflation, and a mortality that is historically in line with what is anticipated because all of this is outside of our control.
• Many financial advisors use probability analysis to offer confidence in a form of a percentage likelihood of money lasting until a predefined age. The trouble is the factors used in the analysis are based on the same risks.
• The core of every retirement plan is the fear of running out of money. You need to look at the worst case scenario and do what’s necessary to prevent that.
• Your goal should be moving more into your control, not giving up control.

Mentioned in this episode:

bubblegumlogic.com

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Would you rather look back on the past and regret what happened or would you rather look to the future and make plans so that you can choose the outcomes you want? The latter of course! But when it comes to taxes, most people take the first option without even realizing there are better choices. Learn about the difference between tax preparation and tax planning, and how you can create a comprehensive wealth strategy for your future, but you have to start now.

• There's a huge difference between a tax preparer and a tax planner. Generally speaking, a CPA is a historian who's looking backwards over the last year's tax situation using tax software for determining whether you owe or whether you'll receive a refund.
• If you’re getting a refund, they give you the good news with a smile. If not, they make the suggestion of an IRA contribution to lessen the pain.
• With a tax deductible account, you are allowed to defer taxes on contributions until the age of 59 and a half. You can’t access that money before that age without a penalty and are required to take distributions by age 72.
• By imposing a 50% penalty for failure to follow the rules, the government taxes 100% of the contribution and any gains at a rate to be determined in the future. This level of trust in the government to manage your finances is not always the most comfortable deal.
• You exchange paying taxes today for paying taxes in the future at an unknown rate. Deferring taxes is not saving you from having to pay taxes.
• However, tax deferral makes sense in two scenarios: You are a high income earner now and will drastically reduce your lifestyle in retirement, or if you don’t already have large, well-funded retirement accounts already.
• The desire to reduce taxes is never going to go away. You will pay the taxes owed now or you'll pay them later. If you choose to pay them later, you are gambling that both your income and tax rates will be lower.
• When you’re working with a tax preparer, remember that funding a retirement account does not actually save you on taxes.
• As a W2 employee, there is not a whole lot you can do to reduce your tax burden. Business owners and people with larger amounts of assets can benefit tremendously from digging into the tax code.
• There are 5800 pages in the tax code, and less than 30 of them are about raising revenue for the government. The majority deals with how business and investment incentives can actually lower taxes.
• Most tax preparers only focus on those 30 pages, and that’s why their clients miss out on opportunities that exist in the other 5770 pages.
• Most people and business owners work with tax preparers, but spend very little time with tax planning.
• The government uses these incentives to encourage businesses and investors to invest in ways that are beneficial to the goals of the government, but many tax professionals narrow their focus and don’t know what the possibilities are.
• For any of these professionals to break away from the status quo training they receive, they have to do the hard work of learning for themselves what they need to know, then moving out of the center lanes to professionally guide their clients. Partnering with a skilled wealth advisor is the secret to creating a comprehensive tax planning strategy for clients.
• The way to go about this is to find a team that has already been assembled because it costs a lot of money and time to form such a team.
• For tax professionals that want to find a team to plug into, go to qualifiedtoworkwithbrian.com to see if you’re a good fit.

Mentioned in this episode:

takebriansquiz.com

qualifytoworkwithbrian.com

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Social Security can be a maze of rules, exceptions, and formulas and can feel almost impossible to navigate for most people. That’s why Rich Grawer is back to talk about making sense of Social Security and the common sense guidelines that allow you to maximize your Social Security benefit and minimize your tax liability while in retirement.

• Social Security as the system is an income replacement system. It is not meant to be your sole source of income in retirement. The first thing to understand is that the system is not meant to replace your whole income, and earners can expect to receive between 35% and 54% of their working wages in retirement.
• There are three different ages you begin taking Social Security. The first is age 62, the second is age 65 when Medicare becomes available, and the third is your full retirement age.
• The advantage to waiting until your full retirement age is that you can work and earn at the same time as receiving your full Social Security benefit.
• One recent change in the past few years is that if you were born after January 1 of 1954, unless you’re the surviving spouse, you must take the highest benefit available to you when you file for Social Security.
• The most a spousal benefit will be is 50% of what the spouse will get at their full retirement age, so if your own benefit is higher, you have to take your own. It also doesn’t count if your spouse waits beyond their full retirement age, the calculation remains the same.
• Another key point is that every year before your full retirement age you take your Social Security, the more it’s reduced, and each year you wait your benefit is increased by 8% for each year it’s delayed.
• At age 70, those Delayed Retirement Credits stop accumulating so there’s no rational reason to wait past the age of 70.
• For widowers, the spousal benefit is 100% of the spouse’s full retirement age amount unless the Social Security was started early. The lowest amount is 71.5%. It’s also possible for widowers to start receiving one benefit and switch to another if the circumstances make sense. It's very important for people that are involved in a death and receiving a survivor benefit to get sound advice on this and not try to do it themselves.
• There are exceptions to every rule, and with 2700 rules, there are plenty of exceptions to the rules of Social Security.
• The Social Security Administration can only give you the facts. They can’t advise you on the best course of action, so it’s important to seek out sound financial advice from an advisor you trust.
• When it comes to retirement planning, or even the death of a spouse, pulling in the resources, and pulling the team together to make sure that everything is being looked at from multiple angles is critical for optimizing everything.
• Many government employees don’t pay into Social Security, and for them the WEP was created to balance the benefits between pensions and Social Security.
• Social Security is intended for low wage earners. Firefighters and policemen working additional part time jobs don’t fit that description, which is why the WEP was introduced. The more years of substantial earnings you have, and the definition of substantial changes from year to year, the less the impact of the WEP.
• The WEP can’t completely eliminate your Social Security benefit. The GPO (Government Pension Offset) can greatly reduce a widower’s benefit to the tune of ⅔.
• Social Security always starts calculating your benefit based on your full retirement age. One common myth is that Social Security looks at your last 10 years to make the calculation but that’s incorrect. They look at 35 years of earnings.
• If you don’t have 35 years of work history, the calculation defaults to 0, so it’s a good idea to work at least 35 years prior to retiring.
• You are unable to leave your Social Security benefit to anyone other than your spouse. If both spouses die, the Social Security benefit for both stops.
• People often rely on Social Security and pensions for income in retirement without planning for what happens when a spouse dies and some or all of that benefit goes away. That scenario is where life insurance can come into play to make up for the income gap.
• Social Security has been doing more online since the beginning of Covid. The best way to begin your application is to go online to ssa.gov and avoid waiting on the phone. Applying for widower benefits must be done in person or over the phone.
• Always emphasize when you want your benefits to start when applying online. You can’t apply for benefits any earlier than four months from when they would start. You won’t get the final calculation right away, it has to go through a human being first but you should receive your benefit calculation roughly ten days after filing your application.
• Don't plan for retirement two weeks before you get ready to retire, you really need to be looking at that at least two years leading up to retirement to know what your timelines are.
• Social Security uses something called provisional income to determine if any, some or all of your Social Security benefits will be federally taxed. Provisional income, by definition simply means your adjusted gross income plus one half of your Social Security benefits. The highest your Social Security can be taxed is 85%.

Mentioned in this episode:

ssa.gov

questionsforbrian.com

brianskrobonja.com

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It’s no secret that entrepreneurs and real estate investors are responsible for the majority of the wealth creation in the world, but did you know it’s possible to take the same strategies they use and apply them to your own investments? Learn how to multiply your wealth through the power of leverage and how to use the idea of internal and external rates of return to acquire assets that not only appreciate but generate cash flow at the same time.

• Many investors have a contradictory attitude when it comes to investments and leverage. With their investments, they favor risk but when it comes to leveraging they adopt a scarcity mindset.
• Entrepreneurs and real estate investors are the biggest wealth creators in the world, but the typical investor can benefit from using the same strategies they use.
• There are two primary reasons those two types of people create so much wealth. The first is they effectively leverage other people’s money. The second is they create cash flow using internal and external rates of return.
• Rarely do real estate investors purchase a house in cash because the more money that is tied up in one property, the less there is to purchase another.
• By using the bank's money to leverage the purchases, they have the ability to use the same amount of money to acquire multiple properties. This allows them to grow their wealth using internal and external rates of return.
• What many people fail to understand about real estate is that the property is worth the same whether or not it has a mortgage. The investor benefits from the appreciation of the property, not the bank.
• A $100,000 property with a $75,000 mortgage on it that appreciates 5% is the equivalent of a 20% yield on the investor's $25,000 investment. That’s the internal rate of return.
• Real estate investors also have the ability to create cash flow from the investment. The rent collected can vary, but assuming a rent payment of around $1200 per month or $14,400 per year, using the same example as above, $14,400 would equate to around 14% of the value of the property and a whopping 57% on the investor's $25,000. Even factoring in the interest on the mortgage, the total rate of return is still exceptional.
• This is why it makes more sense to leverage $100,000 to buy four separate properties than to buy one $100,000 property in cash.
• The concept of external and internal rates of return can be applied to anyone who owns real estate or cash value life insurance policies.
• The challenge many people face is that they dislike the idea of holding a mortgage and would prefer to pay it off quickly. If you can leverage the mortgage to get a higher rate of return, the logic doesn’t support the decision to pay down the mortgage quicker than you have to.
• There are very few subjects more misunderstood than the subject of life insurance and with so many options it’s easy to see why, but when a dividend-paying whole life insurance policy is designed and funded correctly, its benefits mirror that of most real estate.
• Both are properties that build equity, grow tax-deferred, allow for tax-free access to cash, and can be owned free and clear. Both are conduits for internal and external rates of return.
• With insurance, cash values will appreciate the same whether or not there's a loan. That's an internal return, and you can use tax-free loans to leverage as capital and generate cash flow.
• Using your home equity to make home improvements can increase the home’s value and possibly increase the overall cash flow, while essentially costing you none of your own money. Taking a loan from a life insurance policy and leveraging it into an investment or property accomplishes the same thing.

Mentioned in this episode:

buildbanking.com

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The sale or transition of a business is a messy, complex, and time consuming process. If you want to make sure it’s a success and doesn’t tear your family apart, you have to make sure it’s done right. Randy Long reveals the biggest misconceptions around selling a business and how to make sure your children still want to eat Thanksgiving dinner together afterward.

• Randy is a lawyer by trade with a background in finance, having practiced for the past 25 years. Around half way into his career in law, Randy started working with the father of exit planning, John Brown.
• Around 9 years ago, Randy and his daughter started a separate consulting firm focused on helping multi-family, multi-owner businesses get prepared to sell.
• Many business owners have no idea what it takes to prepare a business to be sold. Working in the business and getting the day-to-day tasks done can make it hard to step out of that role and plan for the future. That’s typically where Randy comes in.
• Transition periods can be quite long, with most businesses working with Randy for more than a year. Some families contract with him for multiple years when the situation involves transitioning between generations.
• One of the biggest misconceptions is business owners don't understand that buyers are going to look at their business differently than they do. They don't look at it with the same set of eyes.
• The business owner has to be able to put on the glasses of a buyer to look fresh at their company, which can be a major challenge. Many business owners struggle with transitioning their business to their kids without causing a lot of conflict and strife among the other family members.
• Randy uses the Thanksgiving Test to judge the success of a business transition to the next generation. The first year after the parents are gone, will the kids still have Thanksgiving dinner together and be happy to be there?
• Not communicating with the family can be devastating after a parent’s death.
• Another major misconception is the belief that a person’s business will sell for a hypothetical average multiple, but the truth is each business is unique and sold on their pros and cons.
• Many business owners also find themselves in trouble after selling their business where they no longer have the income, benefits, and insurance they used to be able to deduct.
• There are a lot of variables when it comes to selling a business and no two sales are going to be quite the same.
• The business and merger and acquisition cycles also have an impact on the sale of a business. Ideally, business owners time the sale to maximize the value. Don’t wait until you absolutely want to get out of your business, plan around the business cycles instead.
• Service-based businesses can be sold too, they just need to be structured in a way that the business owner isn’t physically necessary to get the work done. Those types of business owners need to shift their thinking from the down to earth job of getting things done to higher level strategies like joint ventures.
• Randy usually starts working with those business owners by eliminating their tasks and slowly delegating them out to employees, which frees up the owner to do what they are good at: finding new business and inspiring employees.
• You’ve got to get away from the day-to-day grind to give yourself time to think and get your head around the future.
• Business owners often desire control, which can prevent them from scaling past a certain point. The most successful multiply themselves and expect progress instead of perfection.
• The first step is finding the work the business owner hates doing. Once those tasks are identified, they become the job description of the next employee.
• Randy prefers to keep his consulting business small and work with around 15 clients at any given time.
• Most financial advisors are W2 employees, not business owners. Those employees can be integral to a business and are often targeted during a transition to encourage them to stay on.
• One of the keys to the sale is identifying key employees. Randy tries to put a package together for them to stay during the transition that’s beneficial to them and to the future owner.
• Buyers are always looking to eliminate risk, and locking in key employees is one of the most important ways to mitigate risks of the purchase.
• Randy usually takes businesses through a sale over 6 to 12 months and works with companies earning anywhere from $2 million to $100 million annually.
• You have to reinvent the company as you move forward. You’re not going to run the company that your father ran because the world has changed.
• Just like how there is more to retirement than a 401k, there is more than just the dollars and cents in the sale of a business.
• The secrecy of money is an obstacle that many families face when trying to leave a legacy. Open lines of communication are crucial to the success of a generational business transition.
• One of the big benefits of working with Randy is his company brings a lot of things to light that might have previously been completely unknown.
• Randy works with business owners to figure out all aspects of their financial life prior to the sale of the business, and that can include closing the gap on what the business needs to sell for in order to fulfill the client’s needs.
• There are ways to limit tax exposure, especially capital gains taxes, but it requires extensive planning and time prior to the sale.
• The problem is business owners typically aren’t qualified to decide what they really need in this arena, but some professionals take the easy way and just do whatever the owner wants. This can lead to silo-style planning that causes more problems than it resolves.

Mentioned in this episode:

questionsforbrian.com

brianskrobonja.com

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There is a key mindset shift that many people fail to make when they retire and it can cost them thousands of dollars from their investment portfolio. Hear about Hypothetical Helen and how her plan to pay off her mortgage with money from her 401k once she retires actually puts her further away from her goals, and what the most optimal solution for cash flow in retirement is.

• Retirement in its purest form is simply the creation of passive income sources used to support your cash flow requirements.
• Everything revolves around your cash flow in retirement, yet many people lose sight of this fact and overcomplicate their investment strategy.
• Take the example of Helen. Helen was to have $40,000 per year to supplement her Social Security income. She has a million dollars in a 401k and has a mortgage of $200,000 with a payment of $14,400 annually, and her home is valued at $500,000.
• Her plan is to eliminate her mortgage with funds from her 401k as well as make some renovation while living off a 4% draw each year from the remainder.
• The 4% Rule is not necessarily the best strategy for income in retirement. The assets to income stacking method often yields better results, and can often create an additional $20,000 a year in cash flow from the same $1 million investment.
• Using the 401k triggers a tax liability on the full $200,000. Using an estimated 25% tax rate, Helen would end up with a distribution of $262,500, leaving just $737,500 to draw from at 4%.
• Factoring in the home renovations, Helen would be paying around $75,000 in taxes and reducing her annualized income by $5,100. Every one of those decisions moves her further and further away from her goal.
• Every decision you make flows downstream to your cash flow, which is why everything should be about maximizing that amount.
• Giving up control over your money is usually a bad idea. Whether that’s a bank or the government.
• Many people get hung up on paying a mortgage, but in Helen’s situation maintaining the mortgage would be the best solution to getting the most income from her assets.
• To satisfy Helen’s $40,000 retirement income goal, she could designate about $667,000 at 6%. The remaining $333,000 could be invested long term to help offset inflation or other cash needs along the way.
• She could also refinance her mortgage and pay roughly the same each month, but also get access to $50,000 tax-free with which to make those renovations.
• Instead of using her 401k which will cost her $75,000 in taxes to obtain, while also lowering her income by over $5,000 for the rest of her life, she can just use her home equity to give her the cash she needs while maximizing her income potential.
• A few key takeaways: tax-free money is better than taxable money. Home equity and life insurance values are tax-free sources of money. A home will appreciate whether or not it has a mortgage and has inflation as its tailwind.
• Once money is spent, it's gone forever and is no longer able to create income, and there's opportunity cost for every dollar spent.
• The mindset shift from accumulation over to utilization is where most people struggle in retirement.

Mentioned in this episode:

CSF episode - The First Domino

questionsforbrian.com

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Regret and retirement don’t have to go together, but for many people they often do. Learn about the top five regrets people have in retirement and how you can set yourself up so instead of feeling like you should have done more, you can retire with confidence.

• When it comes to retirement, there are almost always things that you’re going to regret. Investments you missed the boat on or investments that went sour. Unfortunately, there is no crystal ball to make retirement planning easy.
• There are five common regrets that most retirees have and the first is not starting soon enough.
• The sooner you begin to save the longer your wealth has to compound over time. In addition to saving sooner, retirees often wish they had begun planning for the transition to retirement sooner as well.
• There is more to planning your retirement than just having a large investment account and picking the start date. Many retirees, mere weeks before retiring, find out there's much more to it and wish they had started years earlier.
• The next big regret is not asking for help sooner. Making assumptions is a slippery slope, and there is so much to consider. It can be challenging even for a seasoned advisor to navigate all the tax implications and available products.
• Not changing strategies is another major regret of many retirees. There are certain phases of growing assets that require a different approach and knowing when you are entering into another phase is critical for capitalizing on opportunities.
• Many would-be retirees start off investing in mutual funds but end up blowing right past the time they should be adjusting their investment strategy. You shouldn’t be investing the same way in retirement as you did in your 20’s.
• Not saving enough is one of the most common regrets of people retiring today. The idea that saving 10% will allow you to achieve your goals is inaccurate. We’re seeing the most effective plans are coming from people saving in the 20%-30% range and with the end goal in mind.
• Many people put their head in the sand when it comes to making important decisions about their retirement because it brings to mind their own mortality, but it’s important to think ahead. The ideal time to figure out long-term care is not when you’re forced to.
• Many of these regrets may seem like common sense, but the vast majority of people aren’t following through with them, common sense or not.

Mentioned in this episode:

brianskrobonja.com/retirement-checklist

questionsforbrian.com

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Most people think about what investments they should be making or what stocks they should have in their portfolio when they approach retirement age, but they are going about it backwards. Brian Skrobonja breaks down the calculations you need to make in order to understand how ready you are for retirement and what your retirement plan needs to factor in to be truly financially free.

• How do you know when it's safe to retire? The answer depends on your plan and understanding the most important numbers in retirement.
• Success is the result of following a plan to fruition. The more specific the plan is, the higher the probability of reaching the goal.
• If you’re on the cusp of retirement, you may have a number of new questions and concerns starting to enter your mind. Are you invested in the right assets for retirement? How much should you be withdrawing from your accounts? Do you have enough saved up to last your whole retirement?
• If you search the internet, you’ll end up finding a lot of often contradictory advice. If you want to get a good sense of direction, take our complimentary Retirement Readiness Quiz. The quiz will ask you a series of questions to help you gauge how ready you are for retirement and give you an idea for what you still need to work on.
• One of the most important numbers you can know when it comes to retirement is your income needs. When you understand what level of income you need to afford everything in retirement, it’s much easier to work backwards from there to figure out what you need to create that flow of income.
• Total up all your bank payments, insurance, tax, and monthly living expenses. Include your regular expenses throughout the year as well because the total you’re looking for is how much money you will spend over a year.
• Keep in mind that your income needs in retirement will not be the same as they are when you’re working. Be sure to think about how you'll be spending your time in retirement because you will have a lot of time to fill.
• Once you have your income needs for the year calculated, subtract your Social Security and/or pension benefits, and any other fixed income. What’s left over is your income gap.
• With the income gap number you can calculate how much of your invested retirement money is required for retirement income. This will also tell you the yield you need to achieve to fund your lifestyle from the assets you have.
• This figure shouldn’t be more than 4% or 5%. Any higher and you considerably increase the risk of running out of money before you run out of life.
• You also have to factor in inflation on top of market volatility and healthcare expenses. If you stretch your resources too far right off the bat, you are setting yourself up to run out of money much sooner than you would otherwise. When making these calculations it’s best to err on the side of caution.
• Inflation will continue to be a major factor going forward. Using a historical figure of 3.5% inflation each year, we can estimate that over the course of 15 years, your income will depreciate by 68%. This is why you need two pools of income for retirement, one for income now and another for income later.
• The key is in finding income-producing assets, particularly ones that are pegged or indexed for inflation. This can be done either actively (getting a part time job, buying a business, owning a rental property) or more passively (annuities and other similar investments).
• Formulate a plan that articulates where you are, where you're going and what needs to be done to start receiving the income you need.

Mentioned in this Episode:

Retirement Readiness Scorecard - brianskrobonja.com/retirementreadinessscorecard/

6 Things You Can Do Right Now to Ensure Your Money Will Last in Retirement - kiplinger.com/retirement/retirement-planning/603596/6-things-you-can-do-right-now-to-ensure-your-money-will-last

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How do you pick between a lump sum payment from your pension and an annuity? A lot of that decision depends, but if you want to have control over your financial assets, a lump sum is often the better option. Find out when you should take a lump sum option instead of an annuity, why insurance is one of the most important pieces of the puzzle, and how to ensure your family doesn’t lose out either way.

• The choice between a pension annuity and a lump sum often comes down to which provides the greatest income, but that’s not the only factor you need to consider.
• We're seeing fewer and fewer pensions than we did 20 years ago because of the systemic issues with defined benefit programs. They are often replaced with defined contribution programs like 401(k)s.
• People used to retire at the age of 65 and could expect to live another 10 to 15 years on average. Today, people are retiring sooner and living longer than ever, and that is making the traditional approach to retirement unsustainable.
• Historically, pensions aimed for between 4.5% and 7.5% to calculate their projection of benefits. With interest rates being below that range for decades and with life expectancy being lower in the past, the math worked out, but that’s no longer the case.
• According to an article in the Daily News, nearly 1 million working and retired Americans are currently covered by pension plans that are in imminent danger of insolvency.
• Pensions are insured similarly to bank accounts by the Pension Benefit Guaranty Corporation (PBGC), but according to Heritage.org, they found that for promised benefits of $24,000 a year, they're insured up to $12,870.
• The PBGC has the same problem as the FDIC. The FDIC has billions and reserves, but has exposure to trillions of dollars in bank accounts. The promise of insurance for both pensions and bank accounts is not mathematically supported.
• If the PBGC becomes insolvent, the promise goes from $12,870 down to about $1,500.
• If you are relying on an annuity payment from a pension, you're placing a lot of trust in the pension calculations. And if the calculations are off, there's not enough insurance to cover the loss.
• The alternative to the pension annuity, the lump sum payment, gives you much more control over the future of your finances.
• Not all pensions are destined to go broke, but the risk should be taken into consideration when constructing the income streams that will support you for the rest of your life.
• A lump sum payment gives you control over your financial assets. Your income needs can fluctuate in retirement and the control of the assets backing your income gives you flexibility to meet your income needs. In the event that you predecease your spouse, they gain control of the asset.
• Your heirs can also inherit the asset, which is not the case with a pension annuity.
• Not all pensions offer a lump sum offer. In that case, the goal is to move as much of it into your control as possible. A single life annuity option is often your highest monthly benefit and is the quickest way to get the most from the pension in the shortest period of time.
• The downside to electing this option is that it can leave your spouse with an income shortage, which is why your spouse will have to sign off on it. In that case, you should buy insurance either within the pension or outside of it.
• With insurance outside the pension, you would accept the single life benefit taking the highest annuity payment then pay a premium to an insurance contract to pay a lump sum to the surviving spouse or the children if you die. Inside the pension, you take the lower annuity amount to ensure your spouse continues to receive the benefit after your death.
• Buying insurance within a pension that has a cost of living adjustment also comes with additional costs which compound over time. For most people, this means you’re paying an ever increasing monthly premium for a decreasing benefit.
• It's critical that the type of policy you purchase and the amount of the insurance obtained are in alignment with what you need to protect your family. One misstep in this process can leave your policy at risk of lapsing or expiring, leaving your spouse vulnerable to a significant income gap.

Mentioned in this episode:

pensionelectionguide.com

questionsforbrian.com

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When it comes to investing for retirement, following the status quo investment advice is one of the worst things you can do. Most people are deferring taxes in their 401k, storing money in a bank, and working to pay off their mortgage, all without realizing that doing those things won’t move them closer to what they really want in retirement. Find out how to ditch the status quo and build an investment portfolio that allows you to retire without having to worry about income, taxes, or what’s happening in the stock market.

• There are no perfect investments that are right for everyone. Financial unicorns don’t exist, but it is possible to create a portfolio of investments that accomplish everything you would want from that one investment.
• In order to find what you’re looking for in an investment, you have to know what you’re looking for. You need to know what your goals are and what investment features you need to accomplish those goals.
• People often default to doing things that don't always align with what they're looking to achieve.
• Example: A 45-year-old business owner storing cash in a bank account earning nothing while borrowing money from a bank and paying interest to finance equipment purchases.
• We usually see people settling for the status quo out of a desire to do something, but it's most often not what they're looking for. They are usually following some generic advice they heard about investing that doesn’t really apply to them or their life situation.
• Most savers are looking for financial security. They know they need to do something to achieve that, but don’t know exactly what actions they should be taking so they default to what everyone else is doing.
• Deferring taxes in a 401k. Storing money in the bank, and paying off a mortgage are the three most common financial aspirations, however, these three concepts for handling money have caused more problems and difficulty for people than anything else other than debt issues.
• They are simple, which makes them easy to understand and appealing for most people, but the results are often underwhelming and frustrating.
• If you're storing money at the bank, the bank is making money on your money while paying you next to nothing in return.
• If you're borrowing money from the bank, you're giving up control of a portion of your cash flow to repay the loan while paying the bank interest.
• When you fund a tax-deferred account, you're essentially allowing the government to dictate when you can access your money, and have no real idea what tax rates will be in the future, gambling with your money in the process.
• There are four broad categories to consider when pairing products together, you have long-term growth, consistent income, access to cash, and tax mitigation.
• Aside from entrepreneurship and real estate, public markets have the highest growth potential over the long term specifically centered around capital appreciation. But there are two other aspects of growth that most people overlook, growth through income and uninterrupted growth.
• Growth of income is centered around an asset that creates income to reinvest and is best achieved through private markets.
• Uninterrupted growth is where your money continues to accumulate and earn interest in a vehicle like a specially structured whole life insurance policy while allowing you to borrow against it essentially for free. See our past episode on Infinite Banking to learn more.
• Stacking these growth strategies together expands your diversification. It reduces risk and volatility and can increase your wealth more effectively, giving you more control over time.
• Having consistent income ranks highest on the list of things needed to have financial security. Without consistent income flowing into your checking account, you cannot effectively manage your cash flow. If the source of the income is at risk, you add another layer threatening the longevity of your income.
• The public stock market is the status quo default of retirement plans and is the least manageable of all the areas being discussed, yet most people only think of the stock market when they think about investing.
• You cannot control the markets and therefore cannot predict the income account value or its longevity.
• Annuities and private market investments are best suited for income and should be the primary source for fulfilling the goal of having consistent income in retirement, you just need to know what you’re looking for.
• Having access to cash is also high on the list of priorities. Traditional stock market investments fail this requirement with age restrictions, market volatility, and tax liabilities all being major negative aspects.
• Public markets are best suited for long-term growth and banks are best suited for moving money around to pay your bills and conduct business.
• Tax mitigation is desired by everyone but seldom seen in real life because tax mitigation strategies fall outside the status quo.
• Tax deferral does not equal tax mitigation. Deferring taxes may actually be causing you more headaches in the future as we can’t be sure what tax rates will be during your retirement with many experts predicting them to be considerably higher.
• Tax mitigation is a complicated process and has a lot of factors. It’s best to consult a professional about your exact situation to come up with a plan for mitigating taxes and minimizing taxes along the way.

Mentioned in this episode:

Past Infinite Banking episode - podcasts.apple.com/us/podcast/an-alternative-banking-option-encore/id1226624694?i=1000554171157

takebriansquiz.com

questionsforbrian.com

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Gold has been a source of wealth for thousands of years and a safe haven in uncertain times, but with cryptocurrencies like Bitcoin coming onto the scene, is that about to change? Before we can answer that question, we need to understand the history of the US dollar and how gold has fared over the past 100 years to get an idea what the future may hold. Find out what makes Bitcoin so special and why it may be the gold of the 21st century.

• A growing number of people believe Bitcoin and other cryptocurrencies could soon replace gold as a safe haven against a depreciating dollar.
• Compared to the other cryptocurrencies, one of the unique features that sets Bitcoin apart is the fact that the total supply is structurally restricted to 21 million coins. This is a hard cap on the total amount of Bitcoins that will ever be in existence and is one of the reasons why so many investors are bullish on the future value of Bitcoin.
• Bitcoin has been often compared to gold. Gold has been used to store value during uncertain times for thousands of years. With mining on the decline and demand going up, it’s safe to assume that prices will rise in the future.
• Whether you lean toward digital currencies or prefer gold, at the core of the debate is a universal distrust of government. In recent years, governments around the world have spent and printed fiat currency at an unprecedented level, the results of which remain to be seen.
• With gold, history has proven its viability, but historical events have impacted its price. After the Federal Reserve Act was implemented in 1913, the government wanted to increase the money supply and declared that the spot price of gold would increase by 69%. In ancient Rome, Caesar diluted and trimmed the gold coins used as currency in order to increase the overall supply of coins.
• In 1971, the government was facing another money supply shortage. With the US dollar still on the gold standard, their printing capabilities were restricted. Their answer was to leave the gold standard and convert to a fiat currency.
• Fiat currency is a currency that’s not backed or pegged to any real world asset, and instead is backed by the printing country's credit worthiness. Gold has been on a rocky incline since.
• Gold seems to be inversely correlated to world events. When things are uncertain, gold rises as people look for a safe haven for their wealth, and in good times the price declines as people are more willing to put their money elsewhere.
• After 2001, the US experienced a series of drastic changes. 9/11, the tech bubble, and the 2008 financial crash all happened within an eight-year span and since then, the government has been printing money in an unprecedented fashion.
• In recent years, and as a result of tax cuts and deregulation, the markets rose by 56%.
• There have been many comparisons between the United States and the Roman Empire. The US is currently going down the same economic road Rome did before the collapse of the empire.
• There are rising tensions between the US and Russia, as well as China, that are creating conditions eerily similar to the Cold War.
• It’s impossible to know for sure if Bitcoin will replace gold as the new safe haven for wealth. For diversified investors, the best answer may be to own both.
• Bitcoin and the blockchain technology have some advantages compared to gold, but it also comes with disadvantages. Bitcoin may be revolutionary in the near future, but it still relies on systems like electricity and the internet to function, whereas gold doesn’t have those drawbacks.
• At this point, Bitcoin is too volatile to truly replace gold as a storage of wealth.
• One of the most important things to consider before buying gold, Bitcoin, or any other investments is really understanding and knowing your risk tolerance. Discover your exact risk tolerance score at skrobonjafinancialgroup.com/risk-tolerance.

Mentioned in this episode:

skrobonjafinancialgroup.com/risk-tolerance

questionsforbrian.com

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There is no silver bullet investment that’s right for everyone, so beware of financial professionals recommending a particular investment or product without first understanding where you are in your life and what your money goals are first. That’s essentially like prescribing a treatment before your doctor diagnoses your problem! Find out what questions you should be asking yourself and your financial advisor to figure out what you’re trying to achieve and the best strategy for you to get it done.

• Discussing investment options with an advisor without first having a strategic plan in place is like asking for a prescription without a diagnosis.
• The majority of people are confused about how to approach their financial situation, but the people that need to hear this message the most are the most likely ones who think that this message is for someone else.
• It's important to know why you're building the wealth and not just learning about what investments to add to your portfolio.
• Asking about a specific type of investment is the wrong question to ask. You should think about your investments in the context of what you’re trying to achieve and what stage of life you’re in.
• Recommending an investment would be like recommending a drug for a random ailment. A doctor can’t prescribe a treatment without first diagnosing the issue. In the same way a financial advisor can’t say a particular investment is right for someone without first going through what they need and where they are trying to go, but that is surprisingly common in the way people approach investing.
• Solving a problem like retirement income planning requires specific solutions.
• Management styles, approaches to diversification, benchmarks, performance, and other metrics are important to consider, but they come after figuring out the overall financial plan and goals.
• People who have accumulated wealth understand how to grow money. But when it comes time to begin using the money or protecting it, it can lead to confusion and uneasiness.
• Every investor wants to grow their money, but that isn’t enough information to be able to plan around and make recommendations on what should be in their portfolio.
• What’s the number one priority in your life right now? Is it to build income streams for when you retire? To make sure your wife is taken care of when you die? Answering that question will go a long way to pointing you in the right direction.
• Financial advisors are often so focused on gathering assets to manage that they often miss the forest to the trees. They assume people want their assets to grow and focus solely on that goal.
• Financial Planning is not about investments. It's about mapping out how to use your money now and in the future. Investments are tools used to accomplish that goal.
• Not everyone is an expert at investing and there is often a disconnect between their needs and investments.
• Remember, there are specific things you need the money to do for you in retirement, and you should focus on that. What do you need the money for?
• If your current advisor is entirely focused on the products they are offering and not your financial goals in the long-term, maybe it’s time to look for another advisor.

Mentioned in this episode:

brianskrobonja.com/resources

questionsforbrian.com

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Brian Skrobonja breaks down the myths and the mechanics of Infinite Banking and how this strategy allows you to take control of your cash flow and finance larger purchases while still allowing your money to earn dividends and interest. Learn how Infinite Banking works, why you need to forget what you think you know about whole life insurance, and whether this strategy is right for you. 

• In order to understand the concept of Infinite Banking, you have to set aside the common understanding of how life insurance works. You also have to realize that there are pros and cons with every financial strategy and there isn’t any silver bullet that everyone should adopt.
• Infinite Banking, also known as Privatized Banking, Cash Flow Banking, or Bank On Yourself, utilizes a specially designed whole life insurance contract. If you search for those terms you’re likely to find a huge number of articles on how the process works (or doesn’t work) because the strategy has been around for years.
• When you look at the course of someone’s life, you might be surprised at how much money is actually earned and spent. Capturing and maintaining control of this money as it comes in and goes out is the core of this strategy.
• Many of us use banks on a day-to-day basis. Aside from the recurring expenses that we all need to spend money on, there are also semi-frequent large transactions that you may want to save for.
• Big ticket items may require borrowing money from a bank, but no matter how you go about funding those purchases, the end result is a zero-sum game which requires a continuous need to earn money.
• In the example of purchasing a $30,000 automobile every five years, you save money each month and then write a check at the five-year mark, bringing your account to zero with the whole process starting off again.
• Using a specially designed life insurance contract can create long-term wealth from money that you would have otherwise spent. It requires using the life insurance contract that is very different from the traditional approach.
• Make sure you are working with a financial advisor that understands the concept.
• Many people dismiss whole life insurance as too expensive with rates of return that are too low, and in some ways that’s true. Term life is usually a better option for life insurance, but we are not talking about simply buying life insurance.
• The idea is using a whole life insurance contract as a cash alternative, not an investment alternative or life insurance solution.
• A specially designed whole life insurance contract has a specific feature to allow the policy owner access to money through non-recognition loans from the insurance company. This allows for your entire cash value to stay within the policy earning interest and dividends, and allows for uninterrupted growth.
• Compared to a savings account where you are withdrawing money and the interest earning balance declines each time, borrowing money against your policy allows that money to continue to earn interest and grow. There are ways to structure the contract that can also offset the cost of the loan.
• This kind of strategy is the best for business owners and habitual savers who don’t require every dollar they make.
• The loan on the contract comes with flexibility because it doesn’t come with the usual repayment schedule. From the insurance company’s perspective, the loan is covered by the collateral in the policy.
• You’re likely to want to repay the loan so that you have access to the money later. This strategy is all about cash flow and how the design creates a conduit to creating more money than simply paying cash or financing purchases through a bank.
• There are also tax considerations for life insurance. The earnings within a policy are tax-free, same with the money growing within the policy, the death benefit, and the loans.
• If you are a good saver, this strategy could work for you. Infinite Banking will lock up your money for up to five to seven years. The lack of liquidity covers the cost of the life insurance and to disregard that could be careless.
• Don’t beat yourself up about financial decisions you’ve made in the past. There is a lot of misinformation about financial topics out there.

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How much does an average rate of return matter? Or does it even matter at all? And what about your 401k? Is the way you’re approaching it the right one? Listen to this episode to hear a few common myths being busted – and get all the positives that will come your way as a result.

• The other day, Brian came across a quote that read,‘If things you thought were true were actually false, when would you want to know?’ As someone who is continuously seeking information to either support his way of thinking or to provide more insight into what he’s thinking, he tends to be pretty grounded, thanks to that process.
• One of the biggest half truths out there has to do with an investment’s average rate of return. Brian often hears mutual fund companies, investment advisers, and colleagues of his discuss investment averages and he uses this information to make decisions about which investment to choose. If you look at the math, you’ll notice that an investment’s average rate of return doesn’t mean much.
• Let’s say you hear that an investment made a 25% average rate of return, then you would think that if you invested $100 over four years, you would have $244. Perhaps you would, but there are also cases where, with a 25% average, you would end up breaking even and end up with $100. Investments don’t typically have the same positive returns year after year – they can fluctuate up and down, and that’s what creates an average over time.
• If you made a 100% rate of return, one year, your $100 would become $200. If the following year you would lose 50% you would go back to the original $100. Think of it for a moment: if you took a 100% gain, 50% loss, 100% gain, 50% loss fluctuation, your average rate of return would be 25%.
• The next myth has to do with your mortgage. Quite often, Brian hears conversations related to the fact that, according to popular belief, doing a 15-year mortgage over a 30-year mortgage is the way to go. This typically stems from the idea that if you pay on a loan for 15 years compared to 30 years, then you’re going to pay less interest.
• That is indeed true, but there’s more to the equation than simply looking at the interest paid. Too many people get hung up on just interest rates and very micro topics. However, whenever you look at a financial topic, it’s important to look at it in a macro view, and make sure that you consider all the variables that come into it.
• Then, there’s something many people contribute to without actually understanding how it really works: their 401k. Why contribute to someone you don’t know much about? Many people do so simply because contributing to a 401k is convenient and offers a tax deduction.
• And there’s even a myth within the myth: the misconception that the same tax code exists for people working as they do for people retired. This is actually incorrect – while it’s true that some of the income one receives in return is taxed differently, the tax bracket used is actually the same. The IRS doesn’t offer a tax bracket just for retirees.
• As you’re thinking about your finances and your retirement, there’s a trap some fall into, and that is not understanding that some tax deductions may be available now but they won’t be in the future.
• Brian has three examples of tax deductions you may be getting now but might not be getting later.
• The first one is your 401k: as you get ready to retire, you probably won’t be contributing to it anymore. Then, there are your children. When they don’t live with you anymore, you won’t be entitled to receive any child tax credits. And, lastly, your home mortgage interest – if you have your home paid off before you retire, your interest deduction will be decreasing.
• And in case you’re thinking about accessing your 401k money, you’d better think again. In fact, there’s a 10% penalty fee in place for those who decide to touch that money before they are 59 and a half. That money can only be accessed without penalties when you reach that age or when you terminate the employment the 401k fund is tied to.
• On the flip side, when you are 70 and a half, they force you to take the 401k money out whether you need it or not…
• Here are a couple of questions worth reflecting on: ‘Does it make sense to risk deferring taxes and retirement just to get the tax deduction?’ and ‘Does it make sense to pay taxes now when we know what the tax codes are?’

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Money is a HUGE part of our life, yet schools don’t spend time teaching us how to manage it and most families don’t share their experiences with one another. Without guidance and learning best practices to achieve success, we are set up for FAILURE before we even begin our relationship with money. It seems reasonable to believe that it would be a good idea to acquire some training on how to effectively think about and handle money BEFORE we get started.

These are a few basic points about handling and thinking about money that I believe are the FOUNDATION for all other decisions you will ever need to make with money.

• Everything is about cash flow
• Work to control the outcome
• Average rates of return are misleading
• The government is not your friend
• Unicorns aren’t real
• Banks are not your friends
• Projections are made up
• Don’t be a consumer
• Know the difference between leverage and debt

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What should you know, consider, and do when it comes to your social security benefits? And what about Medicare? Join Social Security and Medicare expert Rich Grawer and Brian to learn about how to determine your retirement age, whether or not a non-working spouse can qualify for their spouse’s benefit, understanding potential taxes on your social security benefits, and in which scenarios one can qualify for Medicare.

• Social security and Medicare expert Rich Grawer addresses some of the most frequently asked questions Brian gets asked by his clients.
• In order to qualify for a social security benefit, you need the so-called 40 credits. You can gain a maximum of four credits a year, and in 2017 you had to have earned and paid social security taxes on at least $5,200.
• The full retirement age is determined by the year you were born: if you were born between 1943 and 1954, your retirement age is 66. If you were born it would be 66 and 2 months – and it keeps going up.
• After that, they take your 35 highest years of earnings (if you don’t have them, you’ll get a zero), they index them to inflation, and divide them up by 420. That’s how they come up with an average monthly benefit. Social security then reduces that benefit further by applying a formula that’s heavily weighted toward lower- and middle-wage earners.
• The general principle is this: if you take your benefit before your full retirement age, it’s going to get reduced. If you take your benefit after your full retirement age, it will automatically get increased by about 8% a year until you reach age 70.
• In the case of a spouse that has never worked, that spouse qualifies for the partner’s own benefit – they can get a maximum that’s 50% of the working spouse’s benefit. This benefit gets cut if one of them claims it before having reached retirement age.
• There are exceptions but, generally, if a partner dies, there’s a possibility for the surviving partner to either claim their own benefit if it’s greater than the other spouse’s benefit.
• A primary benefit is one that you claim off your own work record. A secondary benefit is when you claim off someone else’s record.
• The Government Pension Offset is a rule that wipes out any attempt by someone who’s getting a government pension to file for a spouse or widow benefit off their husband or wife.
• There are three ways to file for benefits: over the phone, in person through an appointment, or online. Because of the bureaucracy of the situation, Rich always advises clients to file two months in advance.
• To determine whether your social security benefits are going to be taxable, it depends on the so-called Provisional Income. It’s your adjusted gross income plus 50% of your social security benefits. If you’re single, that’s higher than $25,000. If you’re a couple, then that number is greater than $32,000. The social security tax is proportionally dependent on how much over those thresholds you are.
• As Rich explains, in the worst-case scenario, only 85% of your social security benefit will be taxed.
• The easiest way to qualify for Medicare is to reach age 65. The month you turn 65, the first of that particular month, is when you become immediately eligible for Medicare.
• You can also automatically qualify for Medicare if you have never worked and earned any social security quarters or credits but your spouse has or if you have been on social security disability for 24 months.
• If you are working past 65, then you become eligible the moment you quit your job and stop being on your work health plan.
• When it was set up in 1965, Medicare had two parts: one focused on hospital, home health, hospice, while the other part covered pretty much everything that was left – doctor’s visits, x-rays, blood tests, etc.
• There are a few mistakes you should avoid making when it comes to Medicare: not signing when you’re supposed to, putting your Medicare plans on autopilot, and not tapping into the network.

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What should you think about when positioning your 401k and pension assets? How can you avoid the pension trap many people fall into? Find out about the two main purposes of your money, the role your cash flow plays, and how to make the most out of your pension choices in this podcast episode.

• When you’re accumulating money – when you’re working and accumulating – you’re not needing the money that you’re saving. You’re putting it away for retirement. You’re living on the income that you’re receiving. In this phase, everything is about watching your account value grow.
• On the other hand, when you reach retirement and shift over to utilization, it’s no longer about rate of return. The focus here is on having money available when you need it.
• When it boils down to your money, there are two main purposes. Money can be used as a resource to produce income (the proverbial “golden goose” that produces income each month or each year for whatever duration of time needed). However, money can also be the money that’s set aside and that you use for big ticket items, college expenses, vacations, and similar expenses – this is the consistent flow of capital coming in and that you can live off of.
• The way in which you can determine how much money you need for income is understanding your cash flow. By understanding the chronological cash needs that you have, you’re going to learn just how much money you’re going to need to spend.
• Your cash flow design becomes the blueprint for how to arrange the assets you have. Once you know the purpose of the money, you can focus on arranging your assets to fulfill its purpose – and the purpose can either be using the money for income or using that money to ultimately spend it on big-ticket items.
• For Brian, understanding your cash flow before making any decisions regarding the distribution of your 401k or pension is key.
• In some instances, you may find yourself in the position of having to choose between a monthly amount or a lump sum option. If your main focus is maximizing the amount of the monthly income today, oftentimes opting for the monthly pension benefit makes more sense. However, if you don’t necessarily need the income right away – or would like to have some flexibility or control over that money – then, it’s advisable to take the lump sum option instead.
• Beware of what Brian refers to as a “pension trap”. In some cases, taking the reduced benefit leads to your spouse getting the reduced benefit if you pass away but to your children not inheriting anything in the case of the passing of both you and your spouse.
• Many pensions have the so-called Cost of Living Adjustments (or COLA) built in. COLA is based upon parameters such as the consumer price index, and it’s really there to protect the person receiving the pension from the erosion of inflation going forward.
• When purchasing your insurance through the pension department, you may be put in a situation where, basically, the cost of your life insurance policy increases every single year, while the benefits decrease. That’s because, with such a policy, every year you live is one less year of benefits your spouse is going to receive.
• As a potential solution to the problem, Brian suggests looking for alternative planning options by using a personal life insurance policy that’s outside of your pension. This would give you more control on how much life insurance you purchase, as well ashow long you maintain that policy.
• According to Brian, retirement planning is about having access to money when you need it, and about having as much control as possible over the purpose of that money.
• The handling of your money is always about knowing how you plan to use the money you have.

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The truth is that we all, as human beings, carry around this proverbial backpack of beliefs and emotions, and we carry it everywhere we go. And when we show up somewhere that's in a relationship and a conversation having to make a decision, we unpack the backpack. There's no hiding the backpack. It's with us all the time. It is full of of a lot of good things, but mixed in with it our limited beliefs that can wreak havoc with our decision making.

These beliefs are just an accumulation of information that you either hear you read, you experience that can have you instantly forming an opinion that then drives your behavior and decision making. It's what drives your thoughts, your opinions, your attitudes and your propensity.

Think about it. You eat bad sushi and then you get sick. That belief forms that sushi is bad and you throw that belief into the backpack.

You go into a store and have a bad experience.

You belief into the backpack.

You meet someone for the first time and within ten seconds a belief is cemented in your head and into the backpack it goes.

You hear a financial opinion into the backpack. You do it constantly. And at times you may find your beliefs challenged the way you think, your relationships, your attitude, your finances, and begin to question why you believe what you believe.

But this isn't always a bad thing. Cleaning out the backpack of beliefs occasionally can prove to be a good thing when you can get rid of beliefs that are preventing you from making important decisions in your life. The psychology of why we do what we do is the topic of today's show.

And here to discuss this with us is Chez Barbosa. Chez is going to help break all this down for us and offers some strategies and techniques that could possibly help you make some life altering improvements.

I've known Chez and his wife charity for many years and at one time even had him consulting with my company before he made the jump to where he is now. He's been married for 16 years and has three children. He's the CEO and co-founder of True Vine Christian Services, which is a final one C three organization that offers professional mental health, mediation and coaching services.

He's a licensed counselor specializing in marriage and family dynamics, along with communication and conflict resolution training. He's also very active in his community, serving as a board member and has leadership roles and other nonprofit organizations. And he earned a bachelor's degree in psychology from Southwest Baptist University and his master's in counseling from Missouri Baptist University.

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What’s the #1 thing successful investors are doing that average investors aren’t? What are some of the traps people typically fall into when it comes to investing that prevent them from achieving growth and freedom? Find out about what you can learn from Yale endowments, and what you should do to become a successful investor.

• ‘Nothing changes if nothing changes’ is one of the mantras around Brian’s house. It’s a reminder to not complain about an outcome or circumstance, but rather to try to find a solution.
• Typically, a simple mindset, behavioral or attitude shift, is all that’s needed to make the difference and get to a more favorable outcome.
• According to Brian, the truth is that the wealthiest investors in the world keep getting wealthier. This happens not because they're lucky or privileged, but because they're playing a different game than the average investor. They do not rely on 401k's average rates of return and stock performance to find security for themselves. The attitude wealthiest investors have toward money is completely different.
• The average investor is spinning their wheels, following the herd in their search for financial freedom and ultimately being discouraged with the results. These investors follow advice – such as funding their retirement accounts, accelerating the payoff on their home and storing money in the bank which will lead to security – that has proven to fall short of producing the results they were promised.
• A commitment of resources toward rapidly paying down debt often leads to tunnel vision for the fact that the need for money never stops: home repairs, college tuitions, etc., putting pressure on your retirement and future goals. And while storing money in the bank does promise security by giving you easy access to cash, it only ends up proving to be a burden for the fact that nothing is being done to grow your money for the future.
  Yet, this is how the majority of people handle their money – an approach that leads them to a place of frustration, disappointment, and disillusion.
• Another phenomenon that can be seen when it comes to investing is how average investors find themselves relying on and hoping for things outside of their control to bring them happiness and success. This is most evident when there are extremes happening in the market: when markets are good, greed sets in and there’s euphoria that spurs a belief in eagerness that more growth is coming. This is the equivalent of a gambler’s rush. On the other hand, when markets are bad, fear sets in and there’s anxiety, which spurs a belief that more losses will come. This is what Brian refers to as a ‘spectator’s approach to money’ – people are passively watching to see what happens next and are simply along for the ride with no control over the outcome.
• What creates wealth isn’t luck but the information and what you do with it. The wealthiest investors follow a system for creating income and achieve financial freedom.
• A look at Yale’s endowments shows you that the goal top investors pursue is to consistently produce income that is used to fund their school of operation. They strive for consistent growth with a focus on avoiding losses by using proven strategies to control the outcome.
• Despite this, the average investor typically allocates nearly 100% of their money to the stock market with no strategy, only hope. The average investor tends to focus on average rates of return, while wealthy investors focus on real rates of return. The wealthiest investors focus on consistency, over peaks and valleys.
• One of the key differences is that they focus on minimizing losses and controlling the outcome – this is a differentiating factor that prevents the average investor from experiencing the growth and freedom they’re seeking.
• Most successful investors have a broader range of products they use. They don’t use averages of past performances to dictate their choices per portfolio, rather they go for a portfolio diversification that goes beyond the stock market and includes alternative investments, annuities, life insurance, and so forth.
• It’s important to remember that security and success aren’t determined solely by how much money you have, but it’s a measurement of how much income is generated from the assets you have. The key here is consistent income.
• For the average investor, the mindset revolves around the growth of their money. The problem with this approach is that the idea of taking from your stack of money requires you to continuously replenish your stack in order to prevent it from running out. This approach leaves you needing to either work to earn money or live in the hope that the stock market will produce positive returns. Instead of spending a stack of $100 bills, you should focus on having those $100 bills create income to spend.
• Brian and his team have developed the Build Wealth System framework designed to help you build and protect your wealth. It can be broken down into 5 steps: clarity, identifying roadblocks, building a solid foundation, mirroring success, and mapping the progress.
• As an investor, you shouldn’t be greedy with unreasonable expectations (like the belief that markets produce real returns of 10% or more, while that figure is actually closer to 5%) but focus on what can be controlled. Strive to increase the income from your assets over rate of return.
• Brian and his team have found that 60% or more of the average person’s cash flow and assets are outside of their control. In your quest for financial independence, it’s essential to reduce dependency on banks and keep your money allocated in a way that enables you to control the outcome.

Mentioned in this Episode:

The Build Wealth System at brianskrobonja.com/consultation

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Sorting matters related to your retirement isn’t something you should wait until the last minute to take care of. What can you do to make sure you’re ready for retirement when time arrives? Learn about 6 things you can do right now to ensure that you’re indeed ready for retirement.

• If you are within six months away from retiring, there are certain things you need to do now to help prepare yourself for the transition into retirement throughout this retirement preparation process.
• While, at times, the retirement preparation process feels as if you’re making a series of rapid-fire micro decisions (Social Security benefits, Medicare options, pension elections, etc.), it’s important to understand that the decisions to be made are many and they have serious long-term ramifications.
• People often underestimate the complexities that exist when preparing for retirement and find themselves in over their head when making important financial decisions. Without understanding the long-term effects of one decision over another, a retiree may be well into the retirement years before the problem begins to surface.
• Retirement planning shouldn't be viewed as a rapid-fire micro decision-making process. Rather, it should be viewed as a time to design a master plan that's focused on what you can control. Then, protecting yourself from what you can't control and considering very little as being in your control.
• You should develop an income plan, detailing exactly how much income you need to fund your retirement lifestyle. It may be tempting to skip this part, but you should keep in mind that your lifestyle will change along with your tax situation, which means that what you need now will not necessarily be the same when you retire.
• Another step is identifying your income sources and showing exactly how much income will be generated from each source to satisfy your annual income need. You should seek to know an exact amount from each resource you have.
• Most people begin to struggle because of a disconnect between their mindset around their assets and the need they have for them. There are generally two camps with this, those who focus on protecting the principal by holding onto cash, while others hold onto public markets and hopes for long-term growth, making it difficult to abruptly change how that money is handled and effort to generate income.
• Most people have money sitting in bank accounts, large amounts of equity in their home, and money combined together in public markets. This isn’t a good strategy as cash in the bank is not earning anything, equity in a home is not earning anything, and money in the stock market has varying levels of risk. None of which translates to having consistent income in retirement, to get a handle on this.
• You have to realize that the system or mindset used to accumulate assets is not the same system or mindset used to utilize those assets.
• Designing an income replacement plan to have in place for your spouse to cover the loss of Social Security or pension income is another crucial step.
• You should ensure that your legal documents designating the financial power of attorneys, medical directors, wills, trusts, etc., are updated. Most people kick this part down the road thinking they’ll have time to get this done later, and later means when they need it.

Mentioned in this Episode:

Successful Retirement Checklist

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How can a mindset shift help you avoid one of the most common retirement planning mistakes? And how can you know assets you should set aside to generate the income needed to retire? Learn about the Five Minute Retirement Plan and why it’s an invaluable resource to leverage as you’re planning your retirement.

• The most common mistake people make when planning their retirement is assuming that the way wealth was created is the same way they should hold wealth in retirement, with the added twist of being a little bit more conservative.
• Popular belief suggests that, as you age, the level of risk an investor should take declines in an effort to preserve assets and protect them from market loss.
• Most people face a dilemma: by taking on too much risk they run the risk of losing money, while by not taking on enough risk they run the risk of running out of money.
• One approach often used is to simply keep the risk moderately high with the belief that profits can be skimmed from the portfolio while remaining below the total earnings for the year in an effort to protect principal and continue to grow the portfolio long-term.
• A variation of this approach is to use a dividend portfolio where you can receive dividends for income.
• With both strategies you face uncertainty when it comes to the income you’ll receive one month to the next, and you’re forced to accept the possibility of having no earnings in a given year due to market volatility or poor company earnings.
• Thinking of bonds as the answer? Think again. With interest rates on the rise, there’s a high probability of losing principal.
• The 4% rule for taking distribution: based on past performance, if you withdraw 4% from your account, then you should statistically carry those assets for 30 years.
• There’s an assumption that the way wealth was created (typically using a portfolio of growth stocks and ETFs) is the same way wealth should be held in retirement but leaning more conservatively.
• The biggest hurdle when it comes to retirement planning is the mindset you have about it. The primary goal of building wealth is to ultimately generate income.
• Most of Brian’s clients find themselves transitioning from having to work for a living to worrying about their money for a living – neither is a picture of freedom.
• The solution to this issue is understanding that growing money is done one way, and distributing income is done another way.
• Financial freedom is only achieved if the income is sustainable and you don’t wake up every day wondering if that freedom is going to be washed away with the next pandemic, political decision, leadership decision and other things outside of your control.
• Here’s how to calculate the assets you should set aside to generate the income needed to retire. Take your annual income total and divide it by 6% (this is the average using the Assets2Income Method). The result you’ll get is the amount needed to set aside to generate the income you need, right now, to retire. The remaining assets will be separated and invested long-term as a flushing inflation hedge.

Mentioned in this Episode:

brianskrobonja.com/training-video

brianskrobonja.com/consultation

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Most people think about what investments they should be making or what stocks they should have in their portfolio when they approach retirement age, but they are going about it backwards. Brian Skrobonja breaks down the calculations you need to make in order to understand how ready you are for retirement and what your retirement plan needs to factor in to be truly financially free.

• How do you know when it's safe to retire? The answer depends on your plan and understanding the most important numbers in retirement.
• Success is the result of following a plan to fruition. The more specific the plan is, the higher the probability of reaching the goal.
• If you’re on the cusp of retirement, you may have a number of new questions and concerns starting to enter your mind. Are you invested in the right assets for retirement? How much should you be withdrawing from your accounts? Do you have enough saved up to last your whole retirement?
• If you search the internet, you’ll end up finding a lot of often contradictory advice. If you want to get a good sense of direction, take our complimentary Retirement Readiness Quiz. The quiz will ask you a series of questions to help you gauge how ready you are for retirement and give you an idea for what you still need to work on.
• One of the most important numbers you can know when it comes to retirement is your income needs. When you understand what level of income you need to afford everything in retirement, it’s much easier to work backwards from there to figure out what you need to create that flow of income.
• Total up all your bank payments, insurance, tax, and monthly living expenses. Include your regular expenses throughout the year as well because the total you’re looking for is how much money you will spend over a year.
• Keep in mind that your income needs in retirement will not be the same as they are when you’re working. Be sure to think about how you'll be spending your time in retirement because you will have a lot of time to fill.
• Once you have your income needs for the year calculated, subtract your Social Security and/or pension benefits, and any other fixed income. What’s left over is your income gap.
• With the income gap number you can calculate how much of your invested retirement money is required for retirement income. This will also tell you the yield you need to achieve to fund your lifestyle from the assets you have.
• This figure shouldn’t be more than 4% or 5%. Any higher and you considerably increase the risk of running out of money before you run out of life.
• You also have to factor in inflation on top of market volatility and healthcare expenses. If you stretch your resources too far right off the bat, you are setting yourself up to run out of money much sooner than you would otherwise. When making these calculations it’s best to err on the side of caution.
• Inflation will continue to be a major factor going forward. Using a historical figure of 3.5% inflation each year, we can estimate that over the course of 15 years, your income will depreciate by 68%. This is why you need two pools of income for retirement, one for income now and another for income later.
• The key is in finding income-producing assets, particularly ones that are pegged or indexed for inflation. This can be done either actively (getting a part time job, buying a business, owning a rental property) or more passively (annuities and other similar investments).
• Formulate a plan that articulates where you are, where you're going and what needs to be done to start receiving the income you need.

Mentioned in this Episode:

Retirement Readiness Scorecard - brianskrobonja.com/retirementreadinessscorecard/

6 Things You Can Do Right Now to Ensure Your Money Will Last in Retirement - kiplinger.com/retirement/retirement-planning/603596/6-things-you-can-do-right-now-to-ensure-your-money-will-last

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What can you do right now to make this year the best year financially that you've ever had? And what is the one thing that makes some people achieve financial freedom faster than others? Learn about the simple mindset shift that will change the way you think about financial freedom and a quick mental exercise you can do to make that shift right now.

• There is a hidden danger that most people don’t even realize is a risk to their wealth and it’s the status quo. The slow slide of entropy limits your potential for growth.
• Brian made a commitment to himself a few years ago to get into better shape, and as much as the actual exercise and nutrition helped him lose weight, it was breaking his routine and changing things up that really unlocked things for him.
• The mindset shift from being someone “who doesn’t work out” to someone “who does work out” was a monumental change. Even a small mindset shift can make a difference when followed up with action.
• Many people dream but most never execute.
• For the majority of the things in life, the only true way to fail is to give up. The problem is not usually the action, it’s in the commitment to taking action.
• It’s easier to do something 100% than it is to do it 95%. When you’re not committed you will always use the remaining 5% to make excuses.
• Shifting your mindset is the first step to financial freedom. A simple exercise of imagining what your life would be like if you had an extra $100 a month, $1000 a month, $10,000 a month will help you visualize a more secure life. The key to the exercise is in thinking at what dollar amount do you stop thinking about yourself and start thinking about helping other people.
• What limits your ability to retire, to give, and to help others is the absence of financial security. In the absence of financial security, there's no confidence.
• For the average retiree/investor, they are usually focused on rates of return, paying off debts, and other peripheral things. What really matters is income.
• There are two stages of life: when you work to earn a paycheck to support your lifestyle, and when you have income from your assets to support your lifestyle. The sooner you get to the second stage, the closer you are to financial freedom.
• The mindset shift has to be a renewed focus on creating income sources. By focusing on how much income your assets are generating, you have a true measurement of how close you are to achieving financial freedom status and the ability to give and contribute to those around you. For most people, when they begin this process the amount they get from assets is zero.
• Their portfolios are usually designed to grow, not to generate an income. One of the biggest mistakes people make in retirement is spending down their assets and resources instead of finding an income-generating asset to support their spending needs.
• The entire goal of all financial planning is to use assets to generate income. The more assets you keep and grow, the more income you'll have coming in. Make adjustments to your portfolio to have income-generating assets, because the sooner you build your passive income sources, the sooner you will have financial freedom.

Mentioned in this Episode:

brianskrobonja.com/newyearshift

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The Chinese proverb “rags to rags in three generations” says that family wealth does not last for three generations. The first generation makes the money, the second spends it and the third sees none of the wealth.

The Chinese aren’t the only ones who acknowledge this as a problem. In the U.S. it is referenced as “shirtsleeves to shirtsleeves in three generations,” and in Japan it’s “rice paddies to rice paddies in three generations.”

These sayings contradict what I hear clients tell me they want their money doing for them after death. After nearly three decades of assisting families with estate planning, what I have found is that the majority have a deep desire to leave a legacy for their family. The idea of leaving a thumbprint on future generations seems to give meaning to what people spend a lifetime accumulating.

So the question is, if people have an inherent desire to leave a legacy for their families, why is there such a high failure rate among generational wealth? I believe the answer lies in how estate planning is defined and how it is approached.

A common definition goes like this: Estate planning is the process of designating who will receive your assets and handle your responsibilities after your death or incapacitation. The very definition of estate planning omits any mention of generational intent. That’s a problem. Once the first generation passes away, the estate plan has essentially fulfilled its purpose once the second generation has access to the estate.

The idea for generational wealth is not new. Two of the most referenced figures related to generational wealth are Cornelius Vanderbilt — whose famous last words to his family were, ''Keep the money together” — and John D. Rockefeller. The Vanderbilt’s didn’t follow their patriarch’s advice, and the family fortune dwindled away, but the Rockefellers heeded the advice and are now in their seventh generation of wealth with billions in assets.

The Making of a Generational Plan

Leaving a legacy necessitates a written strategy designed to equip future generations with the information they need to carry out the plans set before them. This written strategy is in addition to traditional estate planning documents. The legal documents are needed to hold the assets, but a written generational plan is what actually keeps the money together.

There are three foundational components needed for you to begin a conversation with your professional team of advisers to create and implement a generational plan. Once you have these worked out, you can begin to build the framework for what could be one of the most meaningful things you ever do for your family.

First: You Need the Right Mindset

When you are thinking about your legacy, it’s helpful for you to “blur the faces” of your heirs. The reason for this is that your goal is to reach as far into the future as possible to include generations you will never meet. At this stage of planning you’re thinking big picture about your legacy, and this is difficult if you have your kids and grandkids front of mind.

It doesn’t mean you can’t have as part of your estate plan specific gifts to living family members, but that is a separate part of this process.

Second: You Need to Be Open with Your Family

You need to be open with your family about your assets and your intentions. In general, people tend to live as if their money, their beliefs, their values and their wishes are a secret and miss the opportunity to communicate knowledge and wisdom to their children or grandchildren.

To have a generational plan, you cannot have a mindset that assumes everyone in the family knows what you know and that they will learn what to do through osmosis. Your children may have a good education or a successful career, but that does not mean they understand financial or generational planning.

It is the giver’s responsibility to offer guidance and leadership to the family for them to know what to do when you pass away.

I have had clients in my office in tears many times over the fact their parents will not communicate anything with them. In some cases, no guidance is being offered for managing the inheritance coming, and the heirs have to wait until their parents’ death to learn what is going on.

There could be a number of reasons for this situation. Some holders of wealth either don’t care what happens after they pass away or simply do not want to deal with having the conversation. If this is you, then the idea of generational planning may not be for you, and that is OK. It’s your money, and you can do with it what you wish.

But for those who do have generational aspirations, this is an opportunity for you to bring your family together to cast a vision for the wealth you have and outline your vision of a family legacy. This can spark meaningful discussions about what your family stands for, what values you share, what wealth strategies are in place, and outline what to expect as one generation dies and a new one is born.

This has the potential to pave the way for each family member to understand his or her role and responsibility to perpetuate the legacy.

Third: You Need to Put Your Intentions in Writing

Legal documents can be a guide for administering the plan, but the truth is that the heirs of the estate will be the ones instituting the plan after your gone. So it is critical not only that they know and understand your intentions, but that they are put down in writing so that they are transferrable to future generations.

To maintain generational wealth, the goal should be to set specific provisions for how money is to be used, placing restrictions on how money is accessed and how money is to be replenished.

For instance, many of my clients are not interested in helping their kids get out of debt or drive fancy cars. What they really want is to see their family investing in themselves (i.e., a higher education, business startup or expansion and charitable donations that support the family values) while growing the assets in the plan.

Most successful people will tell you that experiencing what it took to create the wealth is also what helps them keep and grow the wealth. What it takes to create wealth is not transferrable to those who have never created wealth for themselves. So, the idea is to offer your heirs the means to be able to get a higher education, to earn more money or to start a business to generate wealth for themselves and experience what it takes to not only create the wealth but to keep it.

Put your plan down in writing, possibly as part of a family constitution or set of bylaws that can be passed down. Each generation has a fiduciary responsibility to carry forward the intentions of the previous generation with the sole purpose to leave the estate better off than it was when they received it for the benefit of the next generation.

How to Keep Your Estate’s Assets Growing for Generations

When you think of money and growing wealth, the tendency is to assume that investments are the primary driver behind the strategy. However, when it comes to a generational plan, a specially designed whole life insurance policy, I believe, is the primary catalyst for growing and protecting the assets while also providing access to cash.

The reason these contract designs are so effective within generational planning is due to their risk-mitigation characteristics. The inherent features of these contracts (if designed properly) guarantee the results and have everything needed to give a generational plan predictable results one generation at a time:

Guaranteed Death Benefit. A life insurance death benefit is guaranteed to pay a large tax-free lump sum at the insured’s death without the need for taking on market risk. This death benefit has a multiplying effect, because it is purchased using discounted dollars (the total death benefit is greater than the total premiums paid). Once a policy owner passes away within one generation, the death benefit proceeds can be used to purchase new life insurance policies on select people in the next generation; thus creating new wealth for the next generation.

Guaranteed Access to Cash. Through the special design of a whole life policy, the high early cash values offer access to cash through policy loans. This loan privilege allows the beneficiaries of the generational plan to have access to cash while the cash values of the contract continue to grow uninterrupted. Policy loans allow a private banking system to form within the generational plan and allow for unique repayment capabilities, because the insurance company does not require payment on loans until the death of the insured. By keeping money continuously flowing into these policies, new death benefits are established that create new future wealth while simultaneously driving cash values higher, allowing more access to cash.

Guaranteed Cash Values. There are two parts that make up the cash accumulation within these policy designs: the guaranteed cash and dividends. Benefits and guarantees are backed by the claims-paying ability of the insurance company, and dividends are the result of low mortality along with profit sharing of the performance from the insurance companies underlining assets. The total cash value accumulates at a consistent and predictable growth rate that is tax-free and without market risk or volatility concerns. This allows for easy cash flow planning due to having consistent and predictable growth.

Of course, life insurance is not a unicorn and could potentially have unintended consequences if the contracts were mismanaged. For instance,

• Income and growth on accumulated cash values are generally taxable upon withdrawal.
• Adverse tax consequences may result if withdrawals exceed premiums paid into the policy.
• Withdrawals or surrenders made during a surrender charge period may be subject to surrender charges and may reduce the ultimate death benefit and cash value.
• Surrender charges vary by product, issue age, sex, underwriting class and policy year.
• A MEC or Modified Endowment classification can trigger adverse tax consequences by violating IRS funding rules.
• Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse.
• Additional premium payments may be required to keep the policy in force.
• In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax.

The Bottom Line on Generational Wealth

To wrap up, the success or failure of a generational plan rests on three things:

• Articulating your vision for the future and getting buy-in from your family for the vision.

• Communicating your vision through a written document that details your vision and equips future generations to carry the plan forward.

• Having proper legal work and life insurance designs in place as the catalyst for bringing your vision to fruition. Finding competent professionals who have a full understanding of generational strategies will be important.

You can visit visit BUILDBanking.com and brianskrobonja.com for more on this topic.

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When I talk about my definition of retirement, I think it sometimes catches people off guard.

In my mind, retirement is not who you are or where you’re at in life, rather it is the transition of your time and money.

In other words, it is a process you go through … not your identity.

The transition for money is a transition from accumulating money to utilizing it.

For time, it is a transition of reallocating the 40-plus hours per week you spent working.

This distinction of what retirement means is an important one to make, because many people identify themselves with their work — but when someone is no longer working, they default to labeling themselves as “retired.”

Here is the problem: This default “I’m retired” mindset leaves people stuck, and they never really progress toward reinventing themselves.

In essence, they have made retirement their new identity, which just seems odd considering when you say something is “retired” it often infers that it has outlived its usefulness.

But I don’t think this is an accurate description for most successful people who have lived a life of purpose, who have gained valuable insight and wisdom from their life experiences and who have refined their talents and unique abilities over decades.

Therefore, retirement should not be a label used to describe who someone is — it’s not their identity — rather, retirement is a term used to describe the transition a person is going through from one phase of life to another.

This is important, because the success of your retirement transition is predicated on how well you grasp this distinction and your ability to shift your mindset in three specific areas.

And if done successfully, you can emerge on the other side of your retirement transition living a life of abundance.

Reframe Your Mindset of Time

In Dan Sullivan’s coaching program Strategic Coach®, he uses an exercise called The Lifetime Extender.®

It is a tool used to formulate a new paradigm around time with the goal of making our future more important than our past.

The idea is that you have the choice to imagine your own future, and when you change the time frame you are operating in, you change the way you think.

For example, Dan is planning on living to 156!

This exercise gives you the freedom to reframe your future and reprogram your thinking about how to live the second half of your life.

There is a lot of psychology around how this works that I won’t get into here, but when you expand the amount of time you think you have left here on this earth, your mind begins to follow that way of thinking.

Now I realize that this may be a little too “woo-woo” for some, but when you consider that none of us actually knows how much time we have left to live, what do you have to lose?

You have a choice: You can live as if you have been set out to pasture to retire or you can live as if you are just entering your second half of your life.

Your future reality is created in your mind, and whatever you focus on expands.

So, expand your time and pick a number, then begin working on your future self.

Reinvent Yourself

St. Augustine said that asking yourself the question of your own legacy — “What do I wish to be remembered for?” — is the beginning of adulthood.

In Bob Buford’s book Halftime, Bob quotes Matthew 13:5-9, which illustrates the eventual harvest of a farmer who sows his seed.

Bob uses this verse to point toward his own epitaph of 100x.

He says, “I want to be remembered as the seed that was planted in good soil and multiplied a hundred-fold.

It is how I wish to live…how I attempt to envision my own legacy…to be a symbol of higher yields, in life and in death.”

The theme of the book is what the title suggests: that wherever you are right now, you are at halftime in your life, and the second half should be the better half.

Every day up until your retirement transition, you dedicated eight or more of the 24 hours a day that you had to someone or something to earn a living.

That commitment of time and what you were responsible for during that time manifests into a sense of purpose.

When that time commitment goes away, so can that sense of purpose.

Your purpose while working may have been closely associated with your daily projects, leading a team, fulfilling a role or other responsibilities.

It could have been a sense of belonging to a team, a brotherhood (or sisterhood), a company or group that gave you motivation each day to go to work.

This is all left behind once you retire, and what often happens after the “retirement party” is over is the onset of feeling lost, unfulfilled, bored or even depressed.

This underscores the importance of viewing retirement as a transition, not as your new reality.

When I consult with clients who are retiring, I often encourage them to begin thinking about how they will spend their time once they make the transition.

This conversation is not only important for cash flow planning, but it is the first step in helping them begin to think beyond the transition of retirement and about their purpose.

Playing golf, traveling and spending time with grandkids are all great things, but they are not anyone’s purpose.

When asked what someone does, unless they are a professional golfer, they aren’t going to say they golf. They may play golf, but it is not their purpose.

Author and futurist Buckminster Fuller has a question designed for finding your life’s mission: “What is it on this planet that needs doing that I know something about, that probably won’t happen unless I take responsibility for it?”

The transition of retirement is not the destination; it is the transition to what is next.

It is your opportunity to reinvent yourself and live out the second half of your life with purpose.

Reframe Your Mindset About Money

I dedicate this podcast — The Common Sense Financial Podcast — to helping people align their money with their purpose.

Now, you may think that money alignment is something fairly obvious to everyone, but so much of what people do with their money is not at all in alignment with their purpose.

Nearly 100% of the time, when someone hires my team to plan their retirement transition, I find that their money is either sitting in 401(k)s or IRAs invested for growth or they have large amounts of money sitting in cash.

So yes, I saw a need to dedicate an entire podcast on helping people align their money with their purpose, because I have found that there is a vacuum of common-sense financial information available to retirees.

The goal of the podcast is to bridge the gap between what people dream about in their thinking time and what they need to do with their money to make what they are dreaming about a reality.

More often than not, people tend to envision a life of abundance for themselves or being able to leave a financial legacy for their children and grandchildren.

But without knowing how to go about this, people will inherently default to what they know and think they understand — which, when it comes to making financial decisions, is most often rates of return and account balances.

As a result of this misalignment, confusion and feelings of unsettledness creep in when they attempt to retire and then discover that there is a disconnect between what they see their purpose for their money is and what their money is actually doing for them.

It is like having a power cord that is too short to reach the outlet.

You know there is power in the outlet, and the machine you’re trying to power up can do the job you need it to do but you can’t get them to connect, so nothing happens.

This is why measuring your financial success based solely on rate of return or how much money is in your bank account is the wrong measurement.

The measurement for your success should be on how much income you can generate from your assets that is consistent and predictable.

It’s income from your assets that grants you freedom of money and time so you can dedicate your talents to pursue your purpose.

The key to a successful retirement transition is to reframe your mindset about money, focus on maximizing cash flow, expand your concept of time and reinvent your purpose in life, because there is likely more to your story that has yet to be written.

That concludes todays podcast, thank you for listening to the common sense financial podcast.

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We all have blinders about various things in our life that leave us blind to things we do not know or understand.

What is a blinder?  Well, it could be a bias about something, it could be a protection mechanism to ignore something, it could be immaturity about something or it could simply be ignorance of not knowing any better. 

In fact, what I have found is that for most people who are experiencing investing immaturity is that once they are provided more education about how to invest, they often move past this stage into more advanced wealth strategies.

The best way to look at this is that like anything: We only know what we know.  In other words, the root cause of investing immaturity for most people is simply not knowing any different.

To make the most of your investments, you need to think about them in the right way because investing immaturity can hold you back from reaching the next level with your finances.

This is an encore presentation of one of our most popular episodes.

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We often hear the mantra that debt is bad. Yet that doesn’t stop the majority of people from assuming they will always have bank payments. For many, using credit to purchase vehicles, take vacations or fund home improvement projects is a normal mindset for making their lifestyle work. They believe borrowing money to fill income gaps is the answer to supporting their lifestyle.

In reality, it enters them into a money hamster wheel, which means they work to earn a paycheck and then spend the money they earn to pay bills and make payments to the bank.

This is flawed logic and creates a trap or cycle of continuously relying on banks to fulfill your cash flow needs.

Reset Your Thinking and Reclaim Your Financial Situation

Let’s take a step back and look at the big picture when it comes to money. That big picture is actually relatively simple: Money is either flowing toward you or away from you. If money is flowing toward you, you have control. If money is flowing away from you, you are giving up control.

This is the problem with the typical conversation surrounding debt, the focus often centers solely on paying off the debt. And while getting out of debt is important it cannot be the sole focus.

The focus has to be on the source of the problem not just the symptoms. The source of the problem is poor planning (poor cash flow management and making money decisions in a silo). The symptom is the debt itself.

If we only focus on the symptom (paying the debt off) nothing has been accomplished to fix the problem (poor planning) and is why focusing on the symptom is a lifetime prescription for remaining in the debt cycle.

Therefore, you must first wrest your thinking away from loan terms and how much of a bank payment you can afford and begin to shift toward minimizing the percentage of income you have flowing to banks. By having less money flowing to banks, you have more money flowing into your control that can be used to build wealth for yourself.

So, if you find yourself with cash flowing away from you and into banks, your goal should be to immediately work to restructure or eliminate those payments. Notice I said payments…not the balance.

How to Tell If a Loan Is ‘Bad’

The first step in this process is to identify the loans that require too much of your monthly resources and begin to work toward restructuring them to give control of those dollars back to you to focus on building wealth.

A strategy we use to determine if a loan is in your favor or if it favors the bank is to divide the balance you owe by the minimum monthly payment.

• If that number is lower than 50, then we would consider this a bad loan.
• If the number is between 50 and 100, we would consider this suspect.
• If it is over 100, then we would consider this a good loan.

For example, an auto loan of $30,000 may have a payment of $670 per month. Using our formula, this loan would be assigned a score of 44. This score suggests that the loan is a bad loan and is pulling too much of your monthly income away from you and out of your control. What should you do about it? One option may be to remove equity from a home to lower the payment to $143 per month and assign it a new score of 209, which suggests this is a good loan. This strategy moves $527 per month away from the bank and back into your control to focus on building wealth.

Next, itemize your current debt balances and minimum payments. Use the formula explained above to identify the loans that need your attention.

Refinancing to Take Control of Debt

Once you have this information written out, the next step is to begin to identify what options are available to you for restructuring the debts determined to be bad loans. That process begins by itemizing all of your resources, such as cash on hand, investments, life insurance cash values and home equity. You will also want to include how much money you are contributing to these each month. This will help you identify how you may be able to tackle your bad loans by focusing your available resources on doing so.

A note on the home equity, if you take the value of your home and multiply that amount by 80% and then subtract your current mortgage amount, you come up with your home’s available equity. If you have a positive number, this is equity you can use to help reduce your payment as described earlier with the refinancing of an auto loan.

Your home: You will likely see that refinancing a home to use home equity is going to be the best-scoring option using our formula. A home mortgage often has more favorable rates and terms that allow you to begin taking back more control of your cash flow. This is not about paying off the home; it is about lowering your bank commitments. Using a 30-year loan is the most favorable loan and results in the lowest possible payment.

Your vehicle: Sometimes refinancing a vehicle can free up money to consolidate other balances and can reduce payments. Again, this is not about the car loan itself; it is about fixing the problem, which begins by looking at your entire financial picture to determine how to best carry the debt you already have to pay off. In this case, an auto loan is a more structured and controllable loan compared to a floating rate credit card that also allows you to charge more onto it.

Your student loans: Renegotiating student loans can work if you stretch the balance out and focus on keeping required payments as low as possible. When it comes to extending terms, many people immediately begin to think about interest charges and extended terms. This is where a utopia collides with reality. If all you have is a student loan and are paying cash for automobiles and other big-ticket items, then this should not be a focus of yours. However, the majority of people who have student loans also have auto loans and credit card debt. All of this is a set of dominoes where a debt payment for something like a student loan can contribute to having limited resources, forcing other bank loans for making ends meet.

Life insurance: A banking strategy using whole life insurance can work in some cases where there is cash on hand enabling us to use the provisions of the policy to consolidate debt and control payments. Cash value life insurance contracts allow for access to loans where the insurance company will use your death benefit and cash surrender value as a collateral. These loans come with very favorable terms, and depending on the design of the policy itself may have uninterrupted growth of your cash values

When You Have Few Options, Try the Snowball System

Unfortunately, there are circumstances where there is no room for changes. For example, if you are maxed out on credit with little if any resources, there may not be many options available. In this scenario, your best bet is to focus on a debt snowball system, where you pay above the minimum payment on the smallest balances first while paying minimum payments on the other balances. When a debt is paid off you use that payment for paying down the next smallest balance and so on.

Of course, you can take this to another level and begin selling things, downsizing homes and cars and getting a second job, which for some people may be exactly what you need to do.

Your Long-Term Debt Solution

Every situation is different, and you may benefit from using some or all of these strategies. My goal with the information, strategies and techniques discussed here is to help you realize that there needs to be a focus on changing behavior so you no longer use banks to fund your lifestyle.

There are purchases in your past that created the debt that you have and if you dedicate all of your resources to paying those debts off you will find yourself in a continuous cycle of debt. You cannot neglect the fact that you will have future cash needs, and if you are not planning for those now, you will resort to taking more bank loans.

By moving more money into your control and creating a strategic financial plan itemizing all future big ticket needs, you can determine how much of your cash flow should be used to pay down debt and how much should be used to fulfill your future needs.

To get off the hamster wheel of debt requires thinking differently about what purchases you make and how you make them as well as redirecting your focus toward building wealth.

If you focus on building wealth and having access and control of the money you have, you will soon find that you no longer need banks to satisfy your lifestyle.

Securities offered through Kalos Capital, Inc., Member FINRA/SIPC/MSRB and investment advisory services offered through Kalos Management, Inc., an SEC registered Investment Advisor, both located at11525 Park Wood Circle, Alpharetta, GA 30005. Kalos Capital, Inc. and Kalos Management, Inc. do not provide tax or legal advice. Skrobonja Financial Group, LLC and Skrobonja Insurance Services, LLC are not an affiliate or subsidiary of Kalos Capital, Inc. or Kalos Management, Inc

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Employees love their 401(k)s, but love can be blind. These plans are riddled with traps, restrictions and caveats that are not apparent until you attempt to access your money out of the plan. Retirement savers need to open their eyes to some serious flaws built into these accounts.

A 401(k) is a type of employer-sponsored retirement savings plan utilized in for-profit organizations. Related types of plans are the 403(b), used in not-for-profit and education, and 457 plans, designed for government employees. While all different, each is categorized as the same type of plan, designed for participants to save for retirement.

First, the Good

The good news with these accounts is that they are an easy way to save for retirement. Through payroll deductions, you can set a percentage to be taken from your paycheck and deposited into the plan for your retirement. Often this contribution can be tax deductible, reducing your current year tax liability.

Some plans even offer a matching contribution, which means that your employer will contribute into the plan, equal to your contribution, up to certain predefined limits that are set by the employer.

Now, the Bad

While these plans are popular, there is an inherent problem with them. You relinquish control of your money until specific triggering events grant you permission to access your money from the plan. Once deposited into the account, your money is serving a proverbial jail sentence.

Here are three triggering events that grant you permission to escape:

1. You leave your current employer. Whether you retire, quit or are fired from a job, separation from an employer is a triggering event that allows you to move money out of the plan. Of course, that doesn’t mean you can just pull all your money out of the plan without the possibility of incurring taxes or penalties.
2. You reach age 59½. For some plans, reaching the age of 59½ is a triggering event that allows you to move money out of the plan. However, not all plans offer this as an option.
3. You have a qualifying hardship. If your employer allows them, there are a few life events or circumstance that allow money to be taken out of the plan, such as certain medical expenses or buying a home. If you elect to use this option, keep in mind that you may be subject to a 10% penalty and tax liabilities.

A few things to think about when it comes to tying your money up in these plans are:

• Distributions from a 401k are subject to an early withdrawal penalty of 10% prior to age 55 if you are separated from employment (59½ if still “in service” with your employer.
• You have very limited access to the money while you remain employed, including taking a 401(k) loan – something that’s more of a last resort than anything else.
• For tax-deferred 401(k) plans, you are eventually forced to take your money out through required minimum distributions (RMDs) whether you need it or not. (The IRS enforces a Required Minimum Distribution (RMD) if you reached 70-1/2 in 2019. For those reaching 70-1/2 in 2020 and beyond the new RMD age is 72 thanks to the Secure Act.)

So, overall, these savings plans can be very restrictive. The act of giving up control of your money can limit your ability to fulfill important life events, and it’s seldom in your best interest to do so. The bottom line is that the rules for these plans are set and regulated by our government, and they don’t always coincide with your needs.

You’re Kicking the Tax Can Down the Road

Another problem with these plans is that you may misunderstand the actual benefits they provide. When it comes to contributions, you may believe you are saving on taxes because you are receiving a tax deduction in the year the funds are contributed. However, you are merely deferring taxes. A tax deduction through deferral is not the same as a tax savings. In other words, you either pay taxes now or you pay them later. A true tax savings is something you can write off on your taxes to receive the deduction with no future liabilities. With these plans, you are simply deferring taxes to a later point in time when the liabilities await you.

Example:

You contribute $10,000 a year into your 401(k), deducting the contribution from your current year taxes. Assuming a hypothetical 8% annual rate of return over 30 years you would accumulate $1,223,000. Since the $10,000 a year you put into the plan was tax-deductible (you didn’t pay any taxes on the money contributed or the growth) the entire account balance is subject to tax.

So, a few things to think about when it comes to the tax liabilities are:

• You are deferring the tax liability to a point in the future when you have no idea what the tax rate will be.
• When you retire you will likely not have the same amount of total tax deductions as you do today. Deductions may include the 401(k) contributions themselves, child credits, other deductions along with home mortgage interest, etc.
• The IRS does not offer a different tax code for retirees. You have the same tax brackets when you retire as you do while you are working. Granted, you may have less income in retirement, which would move you to a lower tax bracket, but reducing your income is not a goal worth pursuing.

The bottom line is that our focus needs to be on how money will be used and structure a plan around receiving the tax benefits at the point money will be used. Postponing taxes for when you need the money can leave you overexposed to tax liabilities later in life.

When a 401(k) Makes Sense

If you haven’t figured it out yet, I am not a fan of 401(k)s. However, there are a couple of exceptions … with caveats:

• If an employer offers matching contributions to your 401(k), it may make sense to contribute to the plan to receive the company match, but only in conjunction with other non-qualified accounts mentioned below. You never want to tie all your money up into these plans, regardless of a match.
• Some plans offer a Roth 401(k) option. If this is the case, opt for your contributions to go here even though they will not be tax deductible. The advantage is that the money will grow tax-free and doesn’t have the same tax complications down the road. However, the fact still remains that a 401(k) is restrictive and does not offer the same flexibility that other programs offer.

One of the primary reasons people contribute to their 401(k)s is out of convenience. We most often opt for the easier, more popular option when it comes to making decisions, which doesn’t necessarily mean it is best. McDonald’s says it serves “billions,” but we all know eating there is not good for our health.

Some Other Options to Consider

Another reason people use 401(k)s is the fact that they don’t understand there are other options. There are better options to save for the future that include more access and control over your money, depending on your situation.

Consider the following:

• A Roth IRA has no deduction for contributions but offers tax-free growth for retirement. These plans are different from employer-sponsored plans since you are considered the owner. These plans do carry restrictions, but you always maintain access to the money, though taxes and penalties may apply.
• A non-qualified investment account, such as a brokerage account, can help manage tax liabilities, while allowing you access and control of the funds. That means you are free to access and use the money as you choose with no government oversight or penalties.
• A specially designed life insurance contract is a high cash value policy that offers access to the account value through loans or withdrawals. Policies have no tax deduction on contributions but do have favorable tax treatment by the IRS. These plans also provide you with easy access to cash at any age without penalties.

These options can work well and provide a more flexible alternative to employer plans when used in the right situations.

Just keep in mind that there are no unicorns, and there is no perfect investment. There are positives and negatives for every decision you make. However, one thing is certain: When considering where to store your money, having access and control of your money is paramount.

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Finding Yield In a Low Interest Rate Environment

It is no secret that savers are having a difficult time knowing how and where to hold their cash in this low interest rate environment.

Storing money in traditionally “safe” places no longer makes sense and has pushed some into more risky alternatives — such as fixed income securities like bonds and, in some cases even the stock market — in search of yield.

However, while fixed income securities may offer a potentially higher yield than deposit accounts, they are not a “safe” alternative for storing cash since there is potential risk of losing principal due to longevity and interest rate risk.

So the question is, what do you do when traditional methods for storing money are no longer working? There is an answer, but you must first understand two things:

1. The future is looking to be much different than the past

Looking back, we find that interest rates climbed for 40 years (early 1940s – early 1980s) then changed direction and began a steady decline for the next 30 years (early 1980s – late 2000s), when interest rates ultimately hit zero and then flatlined. This declining interest rate environment made for an ideal fixed income bull run that has since faded into a stagnant corner of the market.

1. What worked in the past may not work in the future

Fixed income experienced satisfying returns during a time of declining interest rates. However, this is no longer the case. The fact is that interest rates have no room to the downside left without going negative, and since fixed income investments like bonds have an inverse relationship to interest rates, there is no remaining upside. We have to assume that when interest rates begin rising, fixed income will eventually be negatively impacted.

The truth is that it is difficult to see how this will all play out until it is actually happening, but savers need to accept the reality that things are not what they used to be.

Savers need to think outside of the box to find ways to protect their cash, take advantage of the current interest rate environment and be positioned for what happens in the future.

What you find outside of the box may surprise you

A few years back a colleague of mine asked me what I thought about the idea of using dividend-paying whole life insurance as a way to get clients higher yields on “safe money” without the interest rate risk of fixed income and without tying money up long term.

At first I dismissed the idea — like some of you may be doing right now — but the gravity of the problem made me curious enough to investigate and test the hypothesis with anticipation of finding a viable solution. Here is what I learned through my research…

But The Truth is that Not all policies are created equal

While whole life insurance is a broadly used term for a type of permanent insurance, there are in fact many variations to choose from, leading to much of the confusion that exists about how they work.

What makes a dividend paying whole life insurance contract different than other forms of “permanent” life insurance is its consistent growth through contract guarantees and dividends and ultimate ownership of the death benefit.

Compare these features with other forms of ”permanent” insurance and you’ll discover that a dividend-paying whole life insurance policy is arguably the only form of insurance that has the characteristics to function as a bank or bond alternative. Hybrids, such as variable, indexed, universal life or even non-participating whole life (non-participating means there are no dividends paid) have design flaws that prevent them from functioning as a viable option, and here is why:

• Variable and index contracts rely on stock market performance in determining their returns. If markets are negative or flat, the contract fees and cost of insurance can cause negative returns making the performance unpredictable.
• A dividend-paying whole life policy, on the other hand, does not rely on stock market performance. Company guarantees and dividend tables determine the contracts’ growth, both of which are interest rate positive which means they react favorably to rising interest rates.
• Variable, index and universal life contracts have perpetual contract fees and insurance costs that are deducted from the cash value of the contract. These can erode your equity over time.
• Meanwhile, a whole life policy has a defined funding period (usually modified at seven years) that leads to having ownership of the policy with no future cost or premiums due.

Now the debate often is associated with premiums, costs and fees but this is the wrong conversation

Some like to debate that the death benefit of a whole life policy is too expensive compared with other forms of life insurance, leading to this paradigm that whole life insurance is a bad deal.

But I want to clarify that this is not about debating whether the death benefit is too expensive … that is the wrong conversation to be having.

We are not discussing death benefits and cheap rates for coverage.

We are talking about having a place to put money that can generate 3% to 4% net of costs, fees and commissions in a low interest rate environment.

Let me repeat that….

We are talking about having a place to put money that can generate 3% to 4% net of costs, fees and commissions in a low interest rate environment.

If you get mentally caught up in the insurance debate you will miss the benefit of what is being discussed.

But realize that there is no perfect investment or product

The truth is that whether you put money in a bank account, the stock market or an insurance policy, there will be certain things about each of them you do not like. Maybe there is too much risk, too many fees or low returns.

Regardless of the issue, there is no perfect investment — and whole life insurance is no different. These contracts have a couple drawbacks that should be considered:

1. There are premium (deposit) requirements for 5-7 years depending on the design.
2. Policies have some cash restrictions in the early years that decrease over time allowing more access each year that passes. (In year one, 65-80% access to cash and increasing to 100% by years 8-10 years depending on the design)

But knowing this to be true, we have to weigh the negatives with the positives and then consider the alternatives.

Here is a quick comparison of popular options for storing money to highlight the attributes of each of them side by side:

| Whole Life Insurance | Fixed Income | Deposit Account | | Consistent Growth | x | x | | No Market Risk | x | x | | Tax Free Access | x | | Access to Cash | x | x |

When you evaluate the three options, you find:

• A low interest deposit account paying close to zero.
• A fixed income option paying below 3% with volatility, tax liabilities and with interest rate risk.
• A dividend-paying whole life insurance contract with consistent growth of 3% to 4%, not subject to market risk, tax-free growth and access to cash.

Clearly not a unicorn, but when comparing the attributes of these contracts to deposit and fixed income accounts, whole life insurance does prove to be a “best” option.

I have been in the financial planning business for nearly three decades and have had my own personal roller coaster relationship with life insurance over the years.

It wasn’t until I was challenged to set my personal biases and opinions aside to look at the facts that I able to see the possibilities of using specially designed life insurance.

The truth is that most of what you hear or read about whole life insurance are repeated thoughts and opinions from one person to another with little if any testing or vetting of the facts.

Knowing the facts and avoiding too much opinion when making decisions will help you navigate these decisions and lead you to the answer you are looking for.

You can learn more about this in other podcast episodes: Life Insurance as a Bank Alternative and Life Insurance as an Asset Class.

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When my kids were growing up, many days my wife would sit with them on the floor putting puzzles together. They would laugh and talk as they worked together arranging the pieces to create the picture on the box.

When the kids were young, the puzzles consisted of 20 pieces that could be put together without much need for the picture on the box. The older the kids got, the more complex the puzzles became and the more important the picture became for them to fully study, understand and refer back to in order to complete the puzzle.

The same is true for a financial plan. When someone is just getting started with his or her financial life, the process can seem rudimentary without much consideration. However, as assets are accumulated and life becomes more complex, the picture on the box becomes the most important part of assembling the puzzle.

The Importance of the Picture on the Box

Think of your personal financial situation as a puzzle made up of dozens of pieces. The pieces represent all of the products, programs, thoughts, decisions, purchases, ideas, investments and anything else involving your financial life.

The picture on the box to your puzzle is your CASH FLOW. It’s where everything flows from and where everything originates. It’s where the most important decisions are made and is the most important aspect of planning to understand. You simply cannot fully put the puzzle together without the picture.

Yet, most people work around the edges of their puzzle and don’t take the time to study the picture. People will spend their time talking and debating about the pieces without considering the picture on the box. It’s similar to what often happens during financial or retirement planning. Instead of working to fulfill the picture on the box, focusing on the completion of the puzzle rather than the individual pieces, they go from one idea or adviser to the next focused on products and rates of return. The puzzle is never complete.

What is cash flow?

Cash flow is understanding where money originates. It’s about strategically using money to not only live your life but to create more income sources for yourself. When you put your focus on cash flow, it solves a hundred other decisions.

The confusing part about cash flow is that too few people understand what this really is. They believe that a monthly budget represents their cash flow. It doesn’t.

A budget is used to track expenses. It focuses on limiting them to stay within your means in order to save money. It is a mindset of scarcity and is like using a rearview mirror for managing money. A budget is merely a piece of your puzzle.

Cash flow is the picture. It focuses on where your money needs to go to fulfill the goals that you have for your future. It is like looking through a windshield to see where you are going and allows you to direct money toward creating wealth and ultimately more income. It is an abundance mindset, not a scarcity mindset.

The purpose of cash flow awareness is not simply to make ends meet, but rather to properly organize the flow of money, which allows you to create wealth and avoid debt.

How to Build a Plan Based on Cash Flow

Developing the picture on the box and assembling the pieces is a fairly straightforward process. It doesn’t require a great deal of time if you follow a few basic steps. When you think of your cash flow, break down your annual expenses into five groupings:

1. Debt payments
2. Tax payments
3. Regular monthly expenses
4. Savings and insurance transactions
5. Irregular expenses throughout the year

Then list in chronological order the big-ticket items you plan to spend money on in chunks over the next five to 10 years. (This would include education, transportation, home improvements, etc.)

It is important to include the assets you plan to purchase or invest in to create more income on this list. This may be a business, rental property or some other income-producing asset you plan to acquire.

During this stage of the process, don’t think about how you will pay for these big-ticket items, just list what they are, and then circle back later to strategize as part of a financial planning process to work out the details.

Take a few minutes to complete this exercise. Once you do, you’ll discover whether your current cash flow is in alignment with your plans or if adjustments need to be made.

Defining your intention for the money you have allows you to begin assembling your financial plan in a strategic, chronological manner to seek opportunities for developing new income sources.

The goal is to ultimately generate enough income from your assets to satisfy these big-ticket purchases and support your entire lifestyle.

That is how financial independence is achieved.

Securities offered through Kalos Capital Inc., Member FINRA/SIPC/MSRB, and investment advisory services offered through Kalos Management Inc., an SEC registered Investment Advisor, both located at11525 Park Wood Circle, Alpharetta, GA 30005. Kalos Capital Inc. and Kalos Management Inc. do not provide tax or legal advice. Skrobonja Financial Group LLC and Skrobonja Insurance Services LLC are not an affiliate or subsidiary of Kalos Capital Inc. or Kalos Management Inc.

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The Chinese proverb “rags to rags in three generations” says that family wealth does not last for three generations. The first generation makes the money, the second spends it and the third sees none of the wealth.

The Chinese aren’t the only ones who acknowledge this as a problem. In the U.S. it is referenced as “shirtsleeves to shirtsleeves in three generations,” and in Japan it’s “rice paddies to rice paddies in three generations.”

These sayings contradict what I hear clients tell me they want their money doing for them after death. After nearly three decades of assisting families with estate planning, what I have found is that the majority have a deep desire to leave a legacy for their family. The idea of leaving a thumbprint on future generations seems to give meaning to what people spend a lifetime accumulating.

So the question is, if people have an inherent desire to leave a legacy for their families, why is there such a high failure rate among generational wealth? I believe the answer lies in how estate planning is defined and how it is approached.

A common definition goes like this: Estate planning is the process of designating who will receive your assets and handle your responsibilities after your death or incapacitation. The very definition of estate planning omits any mention of generational intent. That’s a problem. Once the first generation passes away, the estate plan has essentially fulfilled its purpose once the second generation has access to the estate.

The idea for generational wealth is not new. Two of the most referenced figures related to generational wealth are Cornelius Vanderbilt — whose famous last words to his family were, ''Keep the money together” — and John D. Rockefeller. The Vanderbilt’s didn’t follow their patriarch’s advice, and the family fortune dwindled away, but the Rockefellers heeded the advice and are now in their seventh generation of wealth with billions in assets.

The Making of a Generational Plan

Leaving a legacy necessitates a written strategy designed to equip future generations with the information they need to carry out the plans set before them. This written strategy is in addition to traditional estate planning documents. The legal documents are needed to hold the assets, but a written generational plan is what actually keeps the money together.

There are three foundational components needed for you to begin a conversation with your professional team of advisers to create and implement a generational plan. Once you have these worked out, you can begin to build the framework for what could be one of the most meaningful things you ever do for your family.

First: You Need the Right Mindset

When you are thinking about your legacy, it’s helpful for you to “blur the faces” of your heirs. The reason for this is that your goal is to reach as far into the future as possible to include generations you will never meet. At this stage of planning you’re thinking big picture about your legacy, and this is difficult if you have your kids and grandkids front of mind.

It doesn’t mean you can’t have as part of your estate plan specific gifts to living family members, but that is a separate part of this process.

Second: You Need to Be Open with Your Family

You need to be open with your family about your assets and your intentions. In general, people tend to live as if their money, their beliefs, their values and their wishes are a secret and miss the opportunity to communicate knowledge and wisdom to their children or grandchildren.

To have a generational plan, you cannot have a mindset that assumes everyone in the family knows what you know and that they will learn what to do through osmosis. Your children may have a good education or a successful career, but that does not mean they understand financial or generational planning.

It is the giver’s responsibility to offer guidance and leadership to the family for them to know what to do when you pass away.

I have had clients in my office in tears many times over the fact their parents will not communicate anything with them. In some cases, no guidance is being offered for managing the inheritance coming, and the heirs have to wait until their parents’ death to learn what is going on.

There could be a number of reasons for this situation. Some holders of wealth either don’t care what happens after they pass away or simply do not want to deal with having the conversation. If this is you, then the idea of generational planning may not be for you, and that is OK. It’s your money, and you can do with it what you wish.

But for those who do have generational aspirations, this is an opportunity for you to bring your family together to cast a vision for the wealth you have and outline your vision of a family legacy. This can spark meaningful discussions about what your family stands for, what values you share, what wealth strategies are in place, and outline what to expect as one generation dies and a new one is born.

This has the potential to pave the way for each family member to understand his or her role and responsibility to perpetuate the legacy.

Third: You Need to Put Your Intentions in Writing

Legal documents can be a guide for administering the plan, but the truth is that the heirs of the estate will be the ones instituting the plan after your gone. So it is critical not only that they know and understand your intentions, but that they are put down in writing so that they are transferrable to future generations.

To maintain generational wealth, the goal should be to set specific provisions for how money is to be used, placing restrictions on how money is accessed and how money is to be replenished.

For instance, many of my clients are not interested in helping their kids get out of debt or drive fancy cars. What they really want is to see their family investing in themselves (i.e., a higher education, business startup or expansion and charitable donations that support the family values) while growing the assets in the plan.

Most successful people will tell you that experiencing what it took to create the wealth is also what helps them keep and grow the wealth. What it takes to create wealth is not transferrable to those who have never created wealth for themselves. So, the idea is to offer your heirs the means to be able to get a higher education, to earn more money or to start a business to generate wealth for themselves and experience what it takes to not only create the wealth but to keep it.

Put your plan down in writing, possibly as part of a family constitution or set of bylaws that can be passed down. Each generation has a fiduciary responsibility to carry forward the intentions of the previous generation with the sole purpose to leave the estate better off than it was when they received it for the benefit of the next generation.

How to Keep Your Estate’s Assets Growing for Generations

When you think of money and growing wealth, the tendency is to assume that investments are the primary driver behind the strategy. However, when it comes to a generational plan, a specially designed whole life insurance policy, I believe, is the primary catalyst for growing and protecting the assets while also providing access to cash.

The reason these contract designs are so effective within generational planning is due to their risk-mitigation characteristics. The inherent features of these contracts (if designed properly) guarantee the results and have everything needed to give a generational plan predictable results one generation at a time:

Guaranteed Death Benefit. A life insurance death benefit is guaranteed to pay a large tax-free lump sum at the insured’s death without the need for taking on market risk. This death benefit has a multiplying effect, because it is purchased using discounted dollars (the total death benefit is greater than the total premiums paid). Once a policy owner passes away within one generation, the death benefit proceeds can be used to purchase new life insurance policies on select people in the next generation; thus creating new wealth for the next generation.

Guaranteed Access to Cash. Through the special design of a whole life policy, the high early cash values offer access to cash through policy loans. This loan privilege allows the beneficiaries of the generational plan to have access to cash while the cash values of the contract continue to grow uninterrupted. Policy loans allow a private banking system to form within the generational plan and allow for unique repayment capabilities, because the insurance company does not require payment on loans until the death of the insured. By keeping money continuously flowing into these policies, new death benefits are established that create new future wealth while simultaneously driving cash values higher, allowing more access to cash.

Guaranteed Cash Values. There are two parts that make up the cash accumulation within these policy designs: the guaranteed cash and dividends. Benefits and guarantees are backed by the claims-paying ability of the insurance company, and dividends are the result of low mortality along with profit sharing of the performance from the insurance companies underlining assets. The total cash value accumulates at a consistent and predictable growth rate that is tax-free and without market risk or volatility concerns. This allows for easy cash flow planning due to having consistent and predictable growth.

Of course, life insurance is not a unicorn and could potentially have unintended consequences if the contracts were mismanaged. For instance,

• Income and growth on accumulated cash values are generally taxable upon withdrawal.
• Adverse tax consequences may result if withdrawals exceed premiums paid into the policy.
• Withdrawals or surrenders made during a surrender charge period may be subject to surrender charges and may reduce the ultimate death benefit and cash value.
• Surrender charges vary by product, issue age, sex, underwriting class and policy year.
• A MEC or Modified Endowment classification can trigger adverse tax consequences by violating IRS funding rules.
• Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse.
• Additional premium payments may be required to keep the policy in force.
• In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax.

The Bottom Line on Generational Wealth

To wrap up, the success or failure of a generational plan rests on three things:

• Articulating your vision for the future and getting buy-in from your family for the vision.

• Communicating your vision through a written document that details your vision and equips future generations to carry the plan forward.

• Having proper legal work and life insurance designs in place as the catalyst for bringing your vision to fruition. Finding competent professionals who have a full understanding of generational strategies will be important.

You can visit visit BUILDBanking.com and brianskrobonja.com for more on this topic.

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I’m an entrepreneur and just so happen to be in the business of providing other entrepreneurs with financial advice.

But I don’t typically offer up the usual status quo advice that tells you to do things that aren’t always in alignment with growing your business.

My views originate from my experiences and at times are contrarian to what’s being recommended by the usual tax preparer and other financial advisers, because I am in the trenches running a business just like you.

I know what it takes to grow a business, make payroll, deal with IRS notices and manage cash flow.

The truth is that being an entrepreneur can be isolating at times as a result of being wrapped up in the day-to-day of running your business.

When you are hyper-focused on your business, it is difficult to also be an expert at managing the profits of the company. You may be great at making money, but once it’s made, what do you do with it?

Thinking differently about your company and how you will use it to build wealth is the key to true financial success.

There are five strategic ways you can shift your mindset about money to transform how you define and operate your business and approach your financial decisions.

It will help you visualize what you really want and that is to have what Dan Sullivan calls A Self-Managing Company®.

Mind Shift No. 1: Understand that Retirement Savings Plans Don’t ‘Lower’ Your Tax Bill

As a business owner, you are probably time-starved and used to making fast decisions.

And you may be tempted to make fast decisions at tax time, especially when your tax preparer suggests that tax-deferred investments are the answer to lower your tax bill and save some money for retirement.

Easy enough, right?

This is what I like to call a half-truth.

It’s true that you’ll get the deduction for that year’s taxes.

But the other half of the story uncovers the problem with the use of SEP IRAs, 401(k)s and other tax-deferred options to “lower” your tax bill.

The reality is that you are taking money from your business where you have some level of control and redirecting those dollars into the stock market where you have absolutely no control.

The money is tied up until you are 59½ years old and face potentially higher tax liabilities than you previously owed with no access to your cash if it is needed for growing or sustaining your business.

When you own a business, the half-truths you hear from many finance professionals and the mainstream media can at times negatively impact your ability to grow your business and protect your interests.

I have found there are other, more productive ways to build wealth outside of your business, beyond the base-level concepts of investing or putting money in an IRA or 401(k).

Mind Shift No. 2: View Your Company Not as Your Job, but as a Tool for Building Your Wealth

If you run a healthy business, you have a long-term strategy.

You know what the end-goal is. You think about the business as a whole, rather than focusing on simply the day-to-day tasks.

We’ve all heard the old adage: Work on your business, not in your business.

That’s because if you’re working in your business all the time, you’ve only created a job for yourself.

The goal is to build systems and develop people to slowly work yourself out of the role you have and allow the business to run on its own.

The sooner you shift your mindset to this way of thinking, the sooner you can begin to experience the results.

First, carve out the time in your day to think about your business.

Many business owners I talk to don’t do this, because they are buried in the work.

Take time to talk to your future self about what you want your life to look like in the future.

What would your future self say to you about the decisions and choices you are making?

It helps to outline your thinking time, keep a journal of your discoveries, meditate to de-stress, and use the time to reflect on what you are trying to accomplish in the business.

Next, think about your business as a piece of your financial plan.

How much time and capital are you investing into the business, and what are you getting out of it?

What is your ROI?

I’ve found that a business can offer the biggest opportunity to build wealth, and in many cases — depending on your results — it can offer more than what you might get from investing in the market.

Finally, think with the end in mind.

At the end of the day, what are you trying to get out of your company? To build wealth through your business, you must identify what will build its value.

Building value revolves around creating a self-managing company, one that runs without you and has a strategy to sustain itself into the future.

This allows you to sell it for maximum value, or even create a passive income stream without actually having to work in the business.

Shifting your mindset is important, because you probably didn’t start your business that way.

Many business owners don’t, and that’s OK while you’re getting things up and running.

But it’s important to remember that what got you started will not get you to the next level and will not build the wealth needed to successfully exit the business.

Mind Shift No. 3: Master Your Cash Flow

I tend to bust a lot of myths when it comes to financial matters, and one of them has to do with cash flow.

This is especially important to understand as an entrepreneur.

Your cash flow is not there to simply pay your bills. Yes, you must pay your bills of course, but there is more to it than simply making payroll.

Cash flow is a tool to help you build wealth and the value of your company.

Healthy cash flow allows for you to control your money, and there are strategies you can explore to help you maximize it.

I recently spoke with a partner of a business who was earning a W-2 salary of $400,000 per year.

In working with his CPA, we were able to rework his partnership agreement, removing him as an employee and adding him as a consultant of his own LLC.

While this simple strategy reduced his tax liability by $20,000, implementing this strategy was about more than just lowering taxes.

This was about cash flow – everything is always about cash flow.

By making this little tweak, he increased his cash flow by $1,666 per month.

I’m not a CPA and don’t provide tax advice, but I ask a lot of questions and propose many scenarios for the tax professionals to consider – scenarios that can increase cash flow for business owners.

Increasing and optimizing your cash flow should be a top priority for your business.

Mind Shift No. 4: Be Your Own Bank

Companies with cash are able to do many things without having to rely on a bank or other source of funding. In essence, they can be their own bank.

Think about it.

When you have cash, you can use it to work on your wealth-building strategy.

You could buy a company, invest in equipment, hire more people (maybe even a replacement for yourself who can run the company while you collect passive income), buy property, or take advantage of any other opportunity that may come your way.

But there is another way you can be your own bank.

Maybe you’ve heard of the concept of “BUILD Banking™,” a cash flow strategy using a specially designed life insurance contract.

It’s a strategy that I use personally and with many of my clients who want to have greater control of their cash flow.

It frees them from dependence on banks for capital infusions and avoids government red tape when they need to access their money.

For more information about this strategy of BUILD Banking™, you can visit www.buildbanking.com.

This strategy enables business owners to grow assets tax-free and have access to those funds whenever they’re needed.

In essence, you’re accessing cash when it is needed while having uninterrupted compounding growth for your future.

Mind Shift No. 5: Understand Your Legal Exposures and Protect Yourself

You likely have some form, or forms, of insurance in place for your business.

And you may believe that these policies have you covered.

Well, they may, and they may not.

The coverage you need goes far beyond liability, even extending into punitive damages.

It’s important to work with an insurance professional who specializes in business coverage to ensure that you have the right type of policies and the proper level of protection for your specific business.

There are also certain types of insurance policies (including the BUILD Banking strategy I’ve described above) that can serve a strategic purpose for your business.

It’s common, and valuable, for business owners to have a life insurance contract as part of their succession plan, acting as a funding mechanism for the beneficiary to purchase the deceased owner’s share of the business.

Again, you will want to have a collaborating team of insurance professionals who have expertise in their vertical and who understand your business, your goals and what you are trying to accomplish.

It’s also a good idea to include your CPA, attorney and financial planner in on those discussions.

These five financial planning tips and mindset shifts will help you use your business as a tool to start building wealth (or build greater wealth).

They may be things you’ve never thought about, or things you’ve considered but haven’t been able to implement.

Putting these ideas to work can get you on the path to true business success.

Results may vary. Any descriptions involving life insurance policies and their use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance. Benefits and guarantees are based on the claims paying ability of the insurance company.

The terms BUILD Banking™, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions.

This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™ is offered by Skrobonja Insurance Services LLC only and is not offered by Kalos Capital Inc. nor Kalos Management.

BUILD Banking™ is a DBA of Skrobonja Insurance Services LLC. Skrobonja Insurance Services LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal adviser for such guidance.

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When I talk about my definition of retirement, I think it sometimes catches people off guard.

In my mind, retirement is not who you are or where you’re at in life, rather it is the transition of your time and money.

In other words, it is a process you go through … not your identity.

The transition for money is a transition from accumulating money to utilizing it.

For time, it is a transition of reallocating the 40-plus hours per week you spent working.

This distinction of what retirement means is an important one to make, because many people identify themselves with their work — but when someone is no longer working, they default to labeling themselves as “retired.”

Here is the problem: This default “I’m retired” mindset leaves people stuck, and they never really progress toward reinventing themselves.

In essence, they have made retirement their new identity, which just seems odd considering when you say something is “retired” it often infers that it has outlived its usefulness.

But I don’t think this is an accurate description for most successful people who have lived a life of purpose, who have gained valuable insight and wisdom from their life experiences and who have refined their talents and unique abilities over decades.

Therefore, retirement should not be a label used to describe who someone is — it’s not their identity — rather, retirement is a term used to describe the transition a person is going through from one phase of life to another.

This is important, because the success of your retirement transition is predicated on how well you grasp this distinction and your ability to shift your mindset in three specific areas.

And if done successfully, you can emerge on the other side of your retirement transition living a life of abundance.

Reframe Your Mindset of Time

In Dan Sullivan’s coaching program Strategic Coach®, he uses an exercise called The Lifetime Extender.®

It is a tool used to formulate a new paradigm around time with the goal of making our future more important than our past.

The idea is that you have the choice to imagine your own future, and when you change the time frame you are operating in, you change the way you think.

For example, Dan is planning on living to 156!

This exercise gives you the freedom to reframe your future and reprogram your thinking about how to live the second half of your life.

There is a lot of psychology around how this works that I won’t get into here, but when you expand the amount of time you think you have left here on this earth, your mind begins to follow that way of thinking.

Now I realize that this may be a little too “woo-woo” for some, but when you consider that none of us actually knows how much time we have left to live, what do you have to lose?

You have a choice: You can live as if you have been set out to pasture to retire or you can live as if you are just entering your second half of your life.

Your future reality is created in your mind, and whatever you focus on expands.

So, expand your time and pick a number, then begin working on your future self.

Reinvent Yourself

St. Augustine said that asking yourself the question of your own legacy — “What do I wish to be remembered for?” — is the beginning of adulthood.

In Bob Buford’s book Halftime, Bob quotes Matthew 13:5-9, which illustrates the eventual harvest of a farmer who sows his seed.

Bob uses this verse to point toward his own epitaph of 100x.

He says, “I want to be remembered as the seed that was planted in good soil and multiplied a hundred-fold.

It is how I wish to live…how I attempt to envision my own legacy…to be a symbol of higher yields, in life and in death.”

The theme of the book is what the title suggests: that wherever you are right now, you are at halftime in your life, and the second half should be the better half.

Every day up until your retirement transition, you dedicated eight or more of the 24 hours a day that you had to someone or something to earn a living.

That commitment of time and what you were responsible for during that time manifests into a sense of purpose.

When that time commitment goes away, so can that sense of purpose.

Your purpose while working may have been closely associated with your daily projects, leading a team, fulfilling a role or other responsibilities.

It could have been a sense of belonging to a team, a brotherhood (or sisterhood), a company or group that gave you motivation each day to go to work.

This is all left behind once you retire, and what often happens after the “retirement party” is over is the onset of feeling lost, unfulfilled, bored or even depressed.

This underscores the importance of viewing retirement as a transition, not as your new reality.

When I consult with clients who are retiring, I often encourage them to begin thinking about how they will spend their time once they make the transition.

This conversation is not only important for cash flow planning, but it is the first step in helping them begin to think beyond the transition of retirement and about their purpose.

Playing golf, traveling and spending time with grandkids are all great things, but they are not anyone’s purpose.

When asked what someone does, unless they are a professional golfer, they aren’t going to say they golf. They may play golf, but it is not their purpose.

Author and futurist Buckminster Fuller has a question designed for finding your life’s mission: “What is it on this planet that needs doing that I know something about, that probably won’t happen unless I take responsibility for it?”

The transition of retirement is not the destination; it is the transition to what is next.

It is your opportunity to reinvent yourself and live out the second half of your life with purpose.

Reframe Your Mindset About Money

I dedicate this podcast — The Common Sense Financial Podcast — to helping people align their money with their purpose.

Now, you may think that money alignment is something fairly obvious to everyone, but so much of what people do with their money is not at all in alignment with their purpose.

Nearly 100% of the time, when someone hires my team to plan their retirement transition, I find that their money is either sitting in 401(k)s or IRAs invested for growth or they have large amounts of money sitting in cash.

So yes, I saw a need to dedicate an entire podcast on helping people align their money with their purpose, because I have found that there is a vacuum of common-sense financial information available to retirees.

The goal of the podcast is to bridge the gap between what people dream about in their thinking time and what they need to do with their money to make what they are dreaming about a reality.

More often than not, people tend to envision a life of abundance for themselves or being able to leave a financial legacy for their children and grandchildren.

But without knowing how to go about this, people will inherently default to what they know and think they understand — which, when it comes to making financial decisions, is most often rates of return and account balances.

As a result of this misalignment, confusion and feelings of unsettledness creep in when they attempt to retire and then discover that there is a disconnect between what they see their purpose for their money is and what their money is actually doing for them.

It is like having a power cord that is too short to reach the outlet.

You know there is power in the outlet, and the machine you’re trying to power up can do the job you need it to do but you can’t get them to connect, so nothing happens.

This is why measuring your financial success based solely on rate of return or how much money is in your bank account is the wrong measurement.

The measurement for your success should be on how much income you can generate from your assets that is consistent and predictable.

It’s income from your assets that grants you freedom of money and time so you can dedicate your talents to pursue your purpose.

The key to a successful retirement transition is to reframe your mindset about money, focus on maximizing cash flow, expand your concept of time and reinvent your purpose in life, because there is likely more to your story that has yet to be written.

That concludes todays podcast, thank you for listening to the common sense financial podcast.

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We all have blinders about various things in our life that leave us blind to things we do not know or understand.

What is a blinder?  Well, it could be a bias about something, it could be a protection mechanism to ignore something, it could be immaturity about something or it could simply be ignorance of not knowing any better. 

In fact, what I have found is that for most people who are experiencing investing immaturity is that once they are provided more education about how to invest, they often move past this stage into more advanced wealth strategies.

The best way to look at this is that like anything: We only know what we know.  In other words, the root cause of investing immaturity for most people is simply not knowing any different.

To make the most of your investments, you need to think about them in the right way because investing immaturity can hold you back from reaching the next level with your finances.

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00:00 – Opening

1:03 – Joe's Story

11:10 – How The Dominos Fall

12:28 – Brian's Final Thoughts

On this episode, Brian shares a story about Joe and his mental tug of war about how to best utilize his cash assets… Pay off a mortgage? Keep the cash in the bank? Build Wealth?

Listen to the podcast to hear the full story and Brian’s thoughts about the situation.

“Every financial decision you make – big or small - is like the first domino, each decision has a domino effect and it is best to see how those dominos fall before acting on that decision.”

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The truth is that we all, as human beings, carry around this proverbial backpack of beliefs and emotions, and we carry it everywhere we go. And when we show up somewhere that's in a relationship and a conversation having to make a decision, we unpack the backpack. There's no hiding the backpack. It's with us all the time. It is full of of a lot of good things, but mixed in with it our limited beliefs that can wreak havoc with our decision making.

These beliefs are just an accumulation of information that you either hear you read, you experience that can have you instantly forming an opinion that then drives your behavior and decision making. It's what drives your thoughts, your opinions, your attitudes and your propensity.

Think about it. You eat bad sushi and then you get sick. That belief forms that sushi is bad and you throw that belief into the backpack.

You go into a store and have a bad experience.

You belief into the backpack.

You meet someone for the first time and within ten seconds a belief is cemented in your head and into the backpack it goes.

You hear a financial opinion into the backpack. You do it constantly. And at times you may find your beliefs challenged the way you think, your relationships, your attitude, your finances, and begin to question why you believe what you believe.

But this isn't always a bad thing. Cleaning out the backpack of beliefs occasionally can prove to be a good thing when you can get rid of beliefs that are preventing you from making important decisions in your life. The psychology of why we do what we do is the topic of today's show.

And here to discuss this with us is Chez Barbosa. Chez is going to help break all this down for us and offers some strategies and techniques that could possibly help you make some life altering improvements.

I've known Chez and his wife charity for many years and at one time even had him consulting with my company before he made the jump to where he is now. He's been married for 16 years and has three children. He's the CEO and co-founder of True Vine Christian Services, which is a final one C three organization that offers professional mental health, mediation and coaching services.

He's a licensed counselor specializing in marriage and family dynamics, along with communication and conflict resolution training. He's also very active in his community, serving as a board member and has leadership roles and other nonprofit organizations. And he earned a bachelor's degree in psychology from Southwest Baptist University and his master's in counseling from Missouri Baptist University.

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You hear me reference and emphasis the importance of having a financial plan in nearly every topic we cover and estate planning is an area of that plan discussed in todays podcast. In this episode of The Common Sense Financial Podcast, I have a conversation with Jessie Naeger of the Law Office of Andrew Weinhaus about estate planning and other important consideration for protecting your estate. Jessie and I have worked on several client cases together over the years and I felt bringing her on to the show would be helpful for everyone to get a legal perspective on why estate planning is so important. There is no better time than right now to learn why having an estate plan is an absolute must for everyone to have no matter the size of your estate

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Traditional public markets have been historically viewed as normal when it comes to investing but over the last decade we have seen a shift in this attitude toward finding alternatives to the stock market. Though we have been seeing a shift in investor behavior and attitude about markets for quite some time, COVID has brought a sense of urgency to the conversation for finding an alternative to traditional markets. And it is not difficult to understand why. The abrupt volatility that investors have experienced lately has them going from peak to valley in the matter of days. And any rational investor at one point or another has questioned if there is a better way. Now to be clear, there is risk in any type if investment. There is no unicorn that can deliver all things good but I do believe that a new normal is taking shape that offers investors an updated paradigm of what diversification really is. Whether you realized that this was happening or not, this path is already being paved by forward thinking investors and money managers who recognized this shift several years ago and are now operating under a new normal. I believe what we are discussing here is the answer to what many investors are asking for and its why I decided to spend time today sharing this information with you. Today I have on with us portfolio manager Daniel Wildermuth to discuss the growing interest in private markets and how they differ from public markets.

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I am sure you would agree that if you talk with ten people regarding any subject, you're liable to get ten differing opinions from those people. Opinions are everywhere and I believe they are the #1 reason most people live their entire lives thinking a lot of things are true when they are actually false. I became a Christian in November of 1998, I was operating my financial business and raising kids while learning as much as I could about my new faith as a Christian. What I learned fairly quickly is that Christians have some pretty strong opinions about a lot of things and money is definitely on that list. I know this because as people would find out that I was in finance they would approach me and freely share their views and opinions about what they thought a Christian should think about and do with money. So with that, today’s podcast is going to be a little different. I had the opportunity to sit down with my pastor Kenny Qualls recently and had a real life conversation about wealth and the bible. He has served as President and Associate Executive Director for the Missouri Baptist Convention, Executive Committee member for The Southern Baptist Convention, President of the National Large Church Roundtable and Ambassador to Missouri for The North American Mission Board. He is heavily involved in global missions, is a mentor to young pastors and is a well-respected leader within our community here in St Louis. For the last 15 years, he has served as the senior pastor of First Baptist Church of Arnold where my family has attended for the last 20+ years.

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CSFP 033 | The #1 Thing That Successful Investors Are Doing That Average Investors Aren't by Brian Skrobonja: Author, Financial Advisor, Entrepreneur

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One thing I have learned over the last six months during a time of growing markets and economy to a sudden shift of social distancing and virtual workplaces due to the covid-19 pandemic, is that people are motivated by two emotions, Fear and Greed. I know reading this can almost seem insensitive or downright offensive but it’s the truth. Think about it... As a parent, business owner, friend, employee, spouse or neighbor, our emotions can lead us into making decisions that we can reflect back on after the emotion passes to realize maybe we could have done better. I see this all the time with people when it comes to investment decisions. When markets are good, people believe markets will go higher and they become eager to ride the markets higher. And when markets are bad, people believe markets will go lower and can experience an onset of panic that if not managed can lead to bad decisions.

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“The Truth Will Set You Free!” This is a phrase we have all heard and it originated in the New Testament in John 8:32, when Jesus said to the new believers, “you will know the truth, and the truth will set you free.” Whether you are trying to figure out the destination of your soul and the meaning of life or simply trying to figure out how to be smart with money and build real wealth, you have to know the truth. You have to know what is real and not just theory, what is fact and not fiction, what is truth and not just opinion. Opinions are like a beating heart, everyone has one and they flow from each of us like breath but you have to protect yourself from being a collector of opinions and be a seeker of truth. People often speak with confidence when sharing their theories, ideas, and opinions explaining them as facts. People also tend to show only what they want you to see. Social media is a huge part of our society these days and if you spend anytime on it at all you quickly discover that everyone is more successful than you are, they have nicer cars, take nicer vacations and their family is better than yours. That is all of course a lie but it can still leave you having these feelings and the feelings can drive behavior. It doesn’t have to be social media, it can be anything that influences your way of thinking. All can lead to irrational decision making and living in this gap between fact and fiction. The Gap is the space between what you think you should be doing and what you actually should be doing.…It is this space between what you think you know and what you don’t know. The biggest mistakes are made in this gap. In this podcast I will discuss The 6 Biggest Mistakes of 2019 and how to avoid them in 2020.

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The most wealthy and financially independent people I know realize something that most people don’t. They realize that wealth…true financial independence… is not found in the amount of money that you have. That is what most people believe… they think that if they have a lot of money saved that they will have this sense of independence. And there is some truth to that…accumulating a lot of money is a great accomplishment in this consumer driven society. In this podcast I want to share with you this simple paradigm shift that I believe could be the most significant money lesson you ever learn.

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Pensions are becoming more and more of a dinosaur as companies are moving away from them and are replacing them with 401k type plans. There are multitudes of reason why this shift is occurring but the primary reason is due to the simple fact that pensions are unsustainable. Pension had their hay day in the 1960s but began to fail opening the door for the government to enter the picture. The truth is, pensions have been struggling to keep their head above water ever since and outside of government are no longer viable. The point is that at one time pensions were as common as 401k’s are today but times are changing and if you have a pension there are things you should consider to protect yourself from a financial crisis. Whether you are drawing a pension now or are planning to draw from one in your retirement, what I will share in this podcast may impact your future benefits.

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The goal of every business owner is to increase and expand income sources and grow profits while minimizing what is needed to generate the income. To grow your income, you can do more of what it is that you do that creates revenue or find ways to tweak your systems that will result in an increase in cash flow without the need to create more revenue. Know and understand your cash flow needs. Plugging leaks in your spending can increase cash flow and your ability to invest back into your company. Anticipate your future cash needs can free you from relying on a bank to lend you money giving you the benefit of EARNING interest instead of PAYING interest. Overpaying your taxes when there are legal and ethical ways to reduce them is wiliness on your part to overpay your taxes and voluntarily give up precious resources that you could be using for your business. Whether you want to build a business to sell or build a business for generating a stream of income for yourself…the goal should be to have a business that runs and operates without your day-to-day involvement.

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Money is a HUGE part of our life yet schools don’t spend time teaching us how to manage it and most families don’t share their experiences with one another. Without guidance and learning best practices to achieve success, we are set up for FAILURE before we even begin our relationship with money. It seems reasonable to believe that it would be a good idea to acquire some training on how to effectively think about and handle money BEFORE we get started. These are a few basic points about handling and thinking about money that I believe are the FOUNDATION for all other decisions you will ever need to make with money. • Everything is about cash flow • Work to control the outcome • Average rates of return are misleading • The government is not your friend • Unicorns aren’t real. • Banks are not your friends • Projections are made up • Don’t be a consumer • Know the difference between leverage and debt

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It’s interesting to me how little people really know about life insurance. Most people when they think of life insurance they think about its use to protect families, pensions, liabilities and business. But there are other uses such as banking, retirement, tax reduction, long term care and portfolio diversification that is not often considered when thinking about life insurance. I think one of the limitations people have about life insurance is its complexity but its also the negativity that surrounds these plans. We are going to discuss all of this and more but before we do I want to say that to get the most from this, I would encourage you to set aside any biases you may have based on things you have heard and consider why I use this in my personal planning.

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The older I get the more I realize the impact our mindset has on every aspect of our life including our finances. What you think about, what you believe and the way you go about making decisions and living life is a direct result of how we think. We all know that there is no shortage of information and opinions on the topic of money. Turn on the TV and you are inundated with commercials for products, services, books and seminars that are screaming for your attention. How do we process so much information? There is an overwhelming amount of content that seems impossible to sort through and understand. In fact, it is said that the brain processes 400 billion bits of information per second and it is estimated that we consume 34 gigabits of information per day . Our brains are set to overdrive trying to sort through and make sense of what we are consuming. It seeks short cuts as it associates information with something we are already familiar with. It is like an assembly line grabbing things and throwing them into predefined categories you have already established for yourself. This process reduces the amount of thought that goes into figuring out what something means. The challenge is that once you have created this association or pathway in your mind about something, it is difficult to redefine it unless you stop to consider what is happening.

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CSFP 024 | The Family Office Model by Brian Skrobonja: Author, Financial Advisor, Entrepreneur

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In this podcast we will discuss nine specific threats that are always lingering and are threatening your cashflow. Inflation, sequence of returns, unfilled income gaps, market risk, interest rate risks, taxes, long term care expenses, rising health care costs, technology and medical advancements are all real concerns that you need to think about. These are without a doubt the biggest threats and if left unchecked can really cause problems for retirees who have not planned well to overcome them.

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CSFP 022 | Wall Street Is Broken by Brian Skrobonja: Author, Financial Advisor, Entrepreneur

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In this episode, Brian discusses best practices for starting the new year off right and using techniques to help increase the chances of success of you achieving your goals. Brian walks through his 'Five F's' and explains a simple way to get organized with your thoughts and put a plan in place to have a successful 2019.

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In this podcast, Brian breaks down a client case to give listeners a behind the scenes look into how he is able to help clients achieve their financial goals and help them retire and live with confidence.

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CSFP 020 | The Four Headwinds That Could Ruin A Retirement Plan by Brian Skrobonja: Author, Financial Advisor, Entrepreneur

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I had a thirty year old client make a comment to me recently about retirement. She said it was too far off to think clearly about it and made a point to say it is 30 years from now. Why do people believe that retirement is at 62 or 65? I think it is simply because it is the status quo. It doesn't have to be this way!

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You will be surprised to learn who the world's greatest investors actually are. The way that they manage money is entirely different than the way the typical person manages money. They're not going online and using a computer to just answer 10 questions and have it produce a risk tolerance that they plug into an automatic portfolio for a few. The wealthy are doing it differently.

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2018 marks Brian's 25th year in business and with that comes a lot of experience working with other financial advisors. Some of those experiences are good while some of them, well, not as good. The truth is that there are many people in the financial services business that are truly helping people. They are sincere and put their best foot forward trying to help. However, not all financial advisors are alike.

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In this episode of the Common Sense Financial Podcast, Brian discusses one of most frequently asked questions, how Financial Advisors are paid.In this podcast, Brian discusses some of the biggest challenges people face today as they venture into the unknown of saving for retirement. Specifically, the question of 'how much to save' for retirement.

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In this podcast, I interview one of our tax resources, Kathy Ayres. We discuss some tax strategies and some of the confusion around important tax decisions. Hopefully this will equip you to make informed decisions when the time comes. There are so many things to consider when it comes to planning how you are going to save your money, how you are going to use your money and how you will handle your tax liabilities.

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There is so much information in circulation about what to do and what not to do with your money that it is causing many people to get confused about their options. You hear one thing from one person and then an entirely different thing from someone else and none of it seems to make sense after a while. In this podcast Brian explains what a mindset is and how you can use them when making financial decisions. Information provided is for illustrative purposes only and does not constitute investment, tax or legal advice. Information has been obtained from sources that are deemed to be reliable but its accuracy and completeness are not guaranteed. Neither NPC nor the hosts of this show or Skrobonja Financial Group LLC accept any liability for the use of the information discussed. Consult with a qualified financial, legal or tax professional prior to taking any action. Securities and advisory services offered through NATIONAL PLANNING CORPORATION (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Skrobonja Financial Group, LLC and NPC are separate and unrelated companies.

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Mortgages is an area that many people seem confused about and often ask a lot of questions. Today the goal is to reduce the mystery around mortgages and to do this I have Brandon Smith with us who has a been a great resource for me over the years to help clients with their mortgage needs. Brandon is the branch manager and senior loan officer for New American Funding in Clayton, Missouri.

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CSFP 012 | Estate Planning Legal Work - An Interview with Attorney Andy Weinhaus by Brian Skrobonja: Author, Financial Advisor, Entrepreneur

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In this podcast, we had the opportunity to interview Business and Relationship Coach, Mike Lindstrom. Mike earned his JD from California Western School of Law and worked right out of college as a consultant with Tony Robbins Organization. He has been interviewed on FOX, CNN and HLN and speaks regularly at corporate events on behavioral skills for success in leadership. Throughout my blogs, podcasts and videos you hear me talk a lot about mindsets. I touch on this a lof because mindsets are a way of thinking that drives our decisions, our behavior and our relationships. To learn more about Mike, visit his website: http://bit.ly/2vWZQ3X

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As with most things, many of us want a quick fix or quick answer to our questions. What I have learned is that not everything can be answered with a quick cookie cutter answer. For Instance, I am often asked 'What should I be investing in?'. Well, if I was simply trying to sell books or give a simple cookie cutter approach to investing, then this would be easy to respond to because I would say the same thing to everybody who asks. Every investor operates with varying degrees of knowledge and experience with investing. In this podcast, I talk about some of the different investment philosophies that people have.

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I recently published my second book titled 'Generational Planning - Creating and perpetuating wealth for generations'. I wrote the book for a number of reasons, but primarily it was to help educate the public about what planning your estate really means. There is a lot of limiting thinking when it comes to transferring assets to the next generation. I want to lift the fog on this topic and provide some light on how to think this through.

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If you have a living mother, father, grandparents, brothers, sisters, children or grandchildren then this is a topic that could be beneficial for you. There is never a one size fits all solution for how a generational plan is to be arranged. Family dynamics, their belief system, and their financial situation will dictate the details of a plan. The framework of a generational plan begins with the mindset of thinking beyond and accepting a broader vision for what is possible.

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This podcast is the first of it's kind in this series because Brian discusses a very specific strategy for handling your cash flow. The past few podcasts have been about cashflow and how banks work and some common financial myths that are considered mainstream. This podcast attempts to bring them all together. Brian digs deeper in how money flows in and out of your life and will discuss how to use privatized banking or infinite banking to capitalize on your cash flow.

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In this episode, Brian lifts the hood on banks and shines a light on a few things that you may not be aware of. While we use banks nearly everyday, very few people know and understand how they really work. It's A Wonderful Life - https://www.youtube.com/watch?v=iPkJH6BT7dM Dana Loesch Interview - https://www.youtube.com/watch?v=t_skdx_HuX8

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If things you thought were true were actually false, when would you want to know? We are told things all the time that seem to be good, but in the end may not actually be true and may doing more harm than good. In this episode, Brian busts some common myths and challenges mindsets around the status quo that would lead us to believe are non negotiable topics.

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Today we discuss how money flows in and out of our life and why understanding your cash flow is the most important part of our financial planning. We live in a world where there are more and more external things that keep much of our financial life out of our control. For more information, visit www.SkrobonjaFinancialGroup.com CASH FLOW WORKSHEET:: https://www.skrobonjafinancialgroup.com/shownotes

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Today's podcast is an interview with our Social Security resource, Rich Grawer. Over the last ten years, he has been a student of Social Security and if you have ever been around him, you know that he is passionate about teaching people. This episode includes some of the most common questions that Brian is asked regarding Social Security and Medicare.

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CSFP 002 | Positioning Your 401k and Pension Assets by Brian Skrobonja: Author, Financial Advisor, Entrepreneur