Episode #30: Incorporating Flexible Spending Guidelines In Your Retirement Plan with Benjamin Brandt

In today’s episode we have a special guest: Benjamin Brandt.  Benjamin is a Retirement Income Certified Professional (RICP®), and the host of Retirement Starts Today Radio, a top-rated podcast dedicated to retirement planning.  Throughout the episode, Ben shares his wisdom on retirement income ideas, spending rules, incorporating flexible retirement spending into your retirement income plans, and numerous other topics.  Be sure to stay tuned until the end of the episode, where Ben talks about what people often get wrong in their transition to retirement. 

Show Notes

[01:28] Ben’s Story – Ben’s background and his journey through the financial planning industry. 

[06:37] The Four Percent Rule – Ben shares his take on the effectiveness of the 4% rule and why it may not be an ideal strategy in some situations. 

[10:04] Making Timely Decisions – How to adjust your retirement strategy according to varying market conditions. 

[17:11] Distributions – Ben explains the logistics aspect of pulling money from your portfolio and some ways Ben helps his clients plan their distributions.  

[19:55] Life After Retirement – Why it’s essential to dedicate yourself to something outside your regular career after retirement and what people do wrong in their transition to retirement. 

[24:01] Safe Investments – The value of making informed financial decisions to avoid investment failures.  

[29:04] Final Thoughts – Tips & tricks for preparing for retirement.  

Resources

Ben’s Podcast, Retirement Starts Today Radio:

podcasts.apple.com/us/podcast/retirement-starts-today-radio/id1052378769 

Ben’s Website:

retirementstartstodayradio.com 

Episode #29: How Much Life Insurance Do You REALLY Need?

This week we're shifting our focus a bit. Today's episode is all about life insurance. We cover how to determine how much life insurance you need, what types of insurance you should consider, and several other aspects of having a life insurance plan. Be sure to stay tuned until the end of the episode, where we review some options if you realize that you have an insurance policy that you no longer need.

Show Notes

[01:04] Insurance & Financial Planning - Why it’s important to consider life insurance as an essential part of your financial planning.

[06:33] Life Insurance in Business Environments - Grant reviews some of the circumstances where a business may need to have life insurance for their important personnel.

[10:20] Life Insurance & Financial Independence - You only need life insurance when people depend on your income and future earnings. Grant explains how you can evaluate the benefits of having an insurance policy versus the cost of keeping it alive, once you reach financial independence.

[12:15] Determining How Much Insurance You Need - Two methods of analyzing and calculating how much life insurance you need. 

[20:32] Insurance Policy Types - Grant reviews the most common types of insurance policies and key differences in the way they work.

[30:52] Laddering - A strategy of obtaining multiple life insurance policies to obtain maximum benefits with the bare minimum amount of insurance.

[34:26] Getting Rid of an Insurance Policy - How to determine whether you no longer need an insurance policy.

[37:18] 1035 Exchange - A mechanism to swap between financial products and how you can use it to your advantage when it comes to insurance.

Resources

1035 Exchange:

https://www.irs.gov/pub/irs-drop/n-03-51.pdf

Basic Types of Life Insurance Policies:

https://www.dfs.ny.gov/consumer/cli_basic.htm

Episode #28: The PPP Flexibility Act & What It Means for You

Over the last couple of months, we’ve been discussing the CARES Act and the Paycheck Protection Program in great detail. Today, we have another update related to the PPP.  On June 05, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA). This act brings substantial changes to the parameters surrounding forgiveness and amortization periods. Grant is here today to review the provisions of the new law and how you can take advantage of it.

Show Notes

[03:21] What Led to the PPPFA – The limitations of the paycheck protection program that paved the way for this new piece of legislation. 

[07:10] Provisions of the PPPFA – Grant reviews how the new act reduces the limitations of the initial paycheck protection program. 

[12:55] Payroll Taxes & PPP – How the PPPFA allows you to apply for PPP loans while deferring payroll taxes.

[15:33] Business Owner Compensation – A new provision in the PPPFA that allows partnerships, sole proprietorships, and single-member LLCs to add their business owner compensation to the calculation of the loan amount. 

[19:52] Amortization Period – Some of the changes made to the amortization period of PPP loans after the initial launch of the PPP.

[24:00] What Was Not in the Bill – An important part of the PPP that was a catalyst for discussions but wasn’t included in the PPPFA.

[26:08] Planning Opportunities -  Grant shares his take on some of the opportunities you can use to make the best of the forgiveness program.

Resources

Paycheck Protection Program Flexibility Act:
https://www.congress.gov/116/bills/hr7010/BILLS-116hr7010eh.pdf

Download PPP Forgiveness Application:
https://www.sba.gov/document/sba-form--paycheck-protection-program-loan-forgiveness-application

SBA’s PPP FAQ for Lenders & Borrowers:
https://www.sba.gov/document/support--faq-lenders-borrowers

Episode #27: Will COVID-19 Threaten Your Social Security Benefits?

The funding level of the Social Security trust fund is something that’s been getting quite a bit of attention on the news recently. Since a lot of people across the country are dependent on Social Security benefits, there’s a lot of speculation that the increasing unemployment numbers and reduced payroll taxes are going to have a negative impact on Social Security benefits. Grant is here today to review some facts about the mechanism behind the Social Security trust fund. Toward the end of the episode, Grant shares his take on where we’re at, where we’re going and what we can do to make the situation better.

Show Notes

[03:46] How Social Security Works – The mechanism of the social security trust fund and how different sources contribute to the fund and the social security benefits that are available to you.

[08:49] Calculating Benefits – Grant reviews the Social Security Administration’s method of calculating social security benefits.

[12:33] Annual Forecast – The trustees of the Social Security trust fund are compelled to publish an annual forecast on the status of the fund. Grant talks about what the current forecast tells us about the stability of the fund.

[16:12] The Social Security Act – The story of how the Social Security Act was signed into law back in the 1930’s and how it affected our life expectancy.

[23:52] Available Options – Grant reviews several options available to the officials to reduce the impact of COVID-19.

[29:15] Future Changes – Grant shares his take on how Social Security benefits may change in the future to minimize the impact of COVID-19.

Resources

Social Security Administration: ssa.gov

A Summary of the 2020 Annual Reports - Social Security and Medicare Boards of Trustees: https://www.ssa.gov/OACT/TRSUM/index.html

Episode #26: Are We About to See Massive Real Estate Opportunities?

Recently we have been observing that investment opportunities in the real estate market have become an area of interest for a lot of people. Grant is here today to review the current state of the real estate market and some of the things you should keep in mind if you are interested in real estate investment opportunities. Toward the end of the episode, we talk about the future of the commercial real estate industry.

Show Notes

[01:18] It’s a Popular Idea – What makes real estate investments attractive to investors.

[05:17] The Current State – Grant talks about an interesting conversation he had with a real estate professional. He also reviews how the current situation is different from the 2008 mortgage crisis.

[11:30] The Math of Investing in a Property – Return on investment, expenses, taxes, and other things you should take into account when you plan on investing in real estate.

[14:33] Tax Benefits – Real estate investments can give you a significant advantage in taxation. Grant explains different types of tax benefits that are specific to the real state arena and how to calculate the tax benefits on a property.

[19:14] Rent & ROI – How the rental for a property can affect the ROI over a long period.

[22:55] 1031 Exchange – How you can take advantage of the 1031 tax code to stabilize your ROI of a real estate investment.

[26:42] Commercial Real Estate – Grant shares his take on the future of the commercial real estate industry and how it will be affected by the recent trend of working remotely.

[29:03] Real Estate Investment Trust – Grant reviews two easy ways to invest in real estate, along with the pros and cons of each of them.

Resources

REIT, Real Estate Investment Trust: bit.ly/3grsH5h

Non-traded REITs: bit.ly/2X4dmjm

1031 Exchange: bit.ly/36y29e0

Episode #25: All About PPP Forgiveness

Throughout the last few weeks, we talked extensively about the CARES Act and the paycheck protection program. This week, we have another exciting episode with more updates on the paycheck protection program. A few days ago, the SBA released the PPP forgiveness application. Grant is here today to talk about what numbers they’re going to use to determine whether you’re eligible for forgiveness and how much will be forgiven. Stay tuned until the end of the episode, where Grant shares some opportunities that have come up as a result of this updated guidance.

Show Notes

[04:33] Take Action ASAP – Why you should take a look at this application and run your numbers as soon as possible.

[07:04] Application Structure – Grant explains the components of the application.

[09:34] Non-payroll Expenses – Grant starts a detailed explanation of the application with what you should consider when you include non-payroll expenses in the application.

[12:30] Payroll – How to include payroll and payroll equivalent expenses, and tips for documenting payroll.

[16:58] Section Two – Grant reviews the second section of the application, where we determine whether the forgiveness on the listed expenses will be reduced.

[19:23] Clarifications & Options – Clarifications for some of the ambiguities surrounding full-time equivalent employees and available options for calculating full-time equivalent employees.

[24:50] Re-hiring Employees – Options for employees you have laid off.

[30:14] Planning Opportunities - Grant shares his take on some of the opportunities you can use to make the best of the forgiveness program.

Resources

Download PPP Forgiveness Application: bit.ly/2LKHU3u

SBA’s PPP FAQ for Lenders & Borrowers: bit.ly/2ZlXTwY

The CARES act: bit.ly/39x1A47

Episode #24: 8 Questions to Ask a Financial Advisor

With the recent trends in the financial markets, there’s an increasing demand for working with financial professionals. As the demand grows, we’re seeing a significant number of people who had subpar experiences working with someone who they thought was a good fit. We dedicated this episode to reviewing a few questions you can ask prospective financial advisors to make sure they are capable, qualified, and trustworthy.  

Show Notes

[02:14] Background – Grant talks about the conversation that led to today’s topic and why it’s essential to be cautious when you’re looking for a financial advisor. 

[07:19] Compensation – Different ways financial advisors get compensated and how the method of compensation affects the service provided by a financial advisor.

[14:08] Referral Fees – It’s a fairly common practice for financial advisors to take referral fees when they refer you to other professionals. Grant explains why you should know whether your financial advisor gets paid for referrals.  

[15:32] Fiduciary Standard – How to find out whether your prospective financial advisor has a legal obligation to act in your best interest at all times. 

[19:11] Fiduciary Oath – Confirming that your financial advisor will act in your best interest at all times.

[20:20] Regulations – How to check whether your potential financial advisor is disciplined by state regulators. 

[22:17] Comprehensive Financial Planning – Some financial advisors help you make decisions surrounding the entire scope of your financial household, while others may only help you manage your investments.  Grant explains how to figure out the scope of your financial advisor.

[25:07] Is This a Good Fit? – Other means of deciding whether your prospective financial advisor is capable of helping you. 

[27:08] Business Continuity – What happens in case of a sudden absence of your financial advisor. 

[29:07] Assessing Experience – Professional qualifications you can use to assess the experience of a financial advisor.

[32:43] Finding the Best Match for You - Tips for making sure your prospective financial advisor is a good fit for your needs.

Resources

Investment Adviser Public Disclosure (IAPD): adviserinfo.sec.gov

Regulation of Investment Advisers - Securities & Exchange Commission: sec.gov

What You Need to Know About Financial Planners – FINRA: finra.org

Episode #23: Healthshare Programs: A Less Expensive Way to Obtain Health Insurance?

Healthshare programs have been growing rapidly over the last decade, thanks in part to their low cost.  In today’s episode, Grant talks about what healthshare plans are, how they’re different from a conventional health insurance plan, and what you should consider before signing up for one.  Stay tuned until the end of the episode, where Grant shares some tips for deciding whether healthshare is a good option for you. 

Show Notes

[02:20] Insurance Basics – The insurance industry is complex and heavily regulated. Grant explains the functionality of insurance and some of the reasons why it’s tightly regulated. 

[06:09] What is Healthshare? – How healthshare plans work and differences between healthshare and traditional insurance plans. 

[09:44] Sharing Similar Values – One of the reasons why healthshare plans are less expensive is because the members have similar values and lifestyles. Grant reviews some of these similarities and common rules you have to follow to be eligible for a healthshare plan. 

[11:19] Legal Status  - A healthshare plan is not a legally binding insurance contract. Grant explains the legal background of healthshare plans and what they’re legally required to cover.  

[14:23] Limitations – Limitations of a healthshare plan compared to a traditional insurance plan.  

[17:39] Is It a Good Option for You? – Grant shares his take on how to decide whether a healthcare plan is the right decision or not, based on your lifestyle and health conditions.  

Resources

Understanding Faith-Based Options for Health Care: oid.ok.gov 

Christian Health Ministries: https://www.chministries.org/ 

Medi-Share: https://mychristiancare.org/ 

Liberty Healthshare: https://libertyhealthshare.org/ 

Samaritan Ministries: https://samaritanministries.org/ 

Episode #22: Mailbag!

In the past few episodes, we asked you to leave your questions in the mailbag page of our website. We dedicated this episode to answering your questions in depth. For today’s episode, Grant covers questions about rebalancing your investment portfolio, taking advantage of small-cap value stocks, and investing in gold.

Show Notes

Question 01: “The markets are really volatile right now. I know that it’s important to rebalance my portfolio periodically. Given that stocks and bond values are bouncing around so much right now, is now a good time to rebalance? Or should I wait until volatility goes back down?”

[03:22] The Theory Behind Rebalancing – Why rebalancing your portfolio is important, and the process of assessing your portfolio for balance.

[07:50] ETFs and Mutual Funds – How rebalancing works differently in exchange-traded funds and mutual funds.

[12:36] Challenges – Challenging situations you might have to face when you rebalance your portfolio and tips for getting a better outcome.

Question 02: “Small-cap value is something that you’ve mentioned several times recently. Why do you think this is a good opportunity? And how would you go about taking advantage of it?”

[15:53] Value & Growth – How stocks are categorized as value and growth and characteristics of the two types of stock.

[18:27] Valuation Measures – Measures for evaluating whether a stock is expensive or cheap.

[24:53] Observations – Grant reviews what historical data tell us about the performance of growth stocks and value stocks.

[32:01] Taking Advantage of Small-cap Value – How you can adjust your investment strategy to take advantage of small-cap value stocks.

Question 03: “Is now a good time to invest in gold? Especially with the markets being so volatile.”

[33:35] Investing in Gold – The pros and cons of investing in gold and other precious metals, and why Grant won’t recommend it to clients.

Resources

Leave Your Questions - growmoneybusiness.com/mailbag

Price-To-Earnings Ratio - bit.ly/2ShmEpu

Earnings Yield - bit.ly/3aMlCbJ

Value & Growth Stocks - bit.ly/2YlBGhI

Episode #21: Oil Price is NEGATIVE?

It’s been another action-packed week across the economy with more updates coming out on the economic stimulus and an unprecedented drop in the oil prices. Grant is here today to share some more updates on the loan programs launched under the CARES act and a few things you should consider if you have applied for these loans. If you’ve been wondering how the oil prices dropped into the negative territory, stay tuned until the end of the episode, where Grant explains the reason behind it and what the sub-zero rates actually mean.

Show Notes

[01:14] Updates – Grant sums up what happened in the last week with the Paycheck Protection Program and the Economic Injury Disaster Loan program.

[05:57] Who Received Money - What types of businesses received loans under the PPP and how the banks prioritized the applications.

[09:40] Stats From the SBA - Grant reviews statistics from the SBA about how loans were allocated to businesses of different sizes. He also discusses the possibility of a second round of funding for the PPP and the EIDL.

[15:50] The Root of the Problem – Grant shares his take on the reasons behind the inequitable nature of the paycheck protection program.

[19:15] How to Get Your Loans Forgiven – What expenses are eligible to be forgiven, calculating full-time equivalents and how to qualify for the maximum amount of forgiveness.

[26:23] Efforts of the Federal Reserve – Grant reviews how the Federal Reserve has been taking several measures to get more money in the system and the effects of those measures.

[36:57] What’s Going on in the Oil Market? – How the global oil markets work, the reasons behind the recent price drop, and what it means for the average consumer.

Resources

Economic Injury Disaster Loan: bit.ly/2UQx29x

Exchange-traded Fund - bit.ly/2Va31BN

The CARES act: bit.ly/39x1A47

Episode #20: PPP & EIDL Updates and the Importance of Human Intervention in the Investment Process

It’s been about a week since the Paycheck Protection Program was rolled out under the CARES act. Although many provisions of this program have been materialized, there are still a few unclear areas. In today’s episode, Grant shares some more updates about the Paycheck Protection Program and the Economic Injury Disaster Loan program. Later in the episode, Grant reviews the importance of human intervention in the investment process and some recent trends in the capital markets.

Show Notes

[03:19] A Quick Retrospect – Grant briefly sums up what we discussed in the last couple of weeks.

[07:09] Self-employed Individuals - How the rules of the paycheck protection program apply to self-employed individuals.

[10:40] Calculations – Guidelines for calculating the number of employees and payroll costs.

[14:24] Independent Contractors – How 1099 contractors can apply for the paycheck protection program.

[16:28] EIDL Updates - Current status of the Economic Disaster Injury Loan program and things you should consider if you’re applying for both PPP and EIDL.

[20:42] Robot Advisors – How automated tools have become more common in the investment markets lately and why letting a computer algorithm take over your investment strategy may not be an ideal solution in these volatile times.

[27:31] Impact of S&P 500 Index – What happens if S&P decides not to reconstitute the index due to the volatility.

[32:45] Exchange-traded Funds – How ETFs work and differences between ETFs and mutual funds.

[45:12] The Value of Human Intervention – Why it’s important to have some sort of human intervention in your investment process.

Resources

Join the webinar on investing in a COVID-19 world: https://www.facebook.com/3oakscapital/

What is an Exchange-traded Fund - bit.ly/2Va31BN

Economic Injury Disaster Loan: bit.ly/2UQx29x

The CARES act: bit.ly/39x1A47

Episode #19: Paycheck Protection Program Update and Helpful CARES Act Provisions for Individuals

As the COVID-19 pandemic continues to disrupt the economy, the CARES act was signed into law with a massive economic stimulus package for businesses and individuals that are affected by the coronavirus crisis. In the previous episode, we reviewed some of the provisions of the CARES act. Today, we continue that discussion focusing on what has materialized in the last week and some more provisions of the CARES act that we missed last week.

Show Notes

[02:10] The Paycheck Protection Program – A brief explanation of the paycheck protection program.

[05:50] Launching the Paycheck Protection Program – Grant explains how the program will be rolled out and the reasons behind some of the recent changes made to the program.

[10:37] Practical Limitations – Grant shares his take on the drawbacks of the way the paycheck protection program is structured.

[18:33] Workarounds – Two strategies to work around the problems in the paycheck protection program.

[25:10] Another Wave of Stimulus – Grant shares his take on the possibility of another round of funding.

[26:09] Unemployment Insurance – Grant reviews how the CARES act expands unemployment insurance.

[31:21] Mandatory Distribution Holiday – The CARES act also changes the rules for mandatory distributions for qualified retirement plans. Grant explains how this provision works.

[39:43] Stimulus Cheques - The CARES act also provides provisions to cut checks to taxpaying individuals. Grant explains in detail how this works, how much money you’ll get in different scenarios, and the timeline of the program.

[43:31] Student Loans – The CARES act includes a generous offer for student loans. Grant explains the features of this provision and who qualifies.

Resources

Unemployment Claims Chart – The New York Times: nyti.ms/2RoeFXr

Economic Injury Disaster Loan: bit.ly/2UQx29x

The CARES act: bit.ly/39x1A47

Episode #18: Unpacking the CARES Act Opportunities for Small Businesses

The much anticipated Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, in an attempt to help U.S. citizens and businesses recover from the economic impact of the COVID-19 pandemic. We dedicated today’s episode to reviewing provisions of this act. Grant discusses several major features of the CARES act and what they mean for entrepreneurs and small business owners.

Show Notes

[02:00] Introduction – A brief overview of the CARES act and its purpose.

[05:45] Paycheck Protection Program – The CARES act offers a loan program to help small businesses with their payroll. Grant reviews the terms of this program and the process of obtaining a loan under this program.

[11:21] Forgivable Loans – For loans obtained under the paycheck protection program, certain types of expenses are forgivable. Grant explains what types of expenses are eligible for this.

[18:42] Employee Retention Credit – Grant talks about how the CARES act offers an incentive for employers to lay fewer people off.

[26:05] Payroll Tax Deferral – The CARES act has a provision that allows you to stop paying payroll taxes right now and defer them until 2021 or 2022. Grant explains how this could be beneficial to small business owners as well as self-employed people.

[29:54] Net Operating Losses – Grant reviews the tax benefits available under the CARES act when you have a net operating loss in your business.

[33:23] Checks for Individuals – The CARES act also provides provisions to cut checks to taxpaying individuals. Grant discusses the eligibility criteria for this and the amounts available in different scenarios.

[38:53] Charitable Contributions – Grant discusses what new benefits are available for charitable contributions under the CARES act.

Resources

The CARES Act: bit.ly/39x1A47

Episode 02: An Overview of SBA lending with Joe McClure & Chris Boessenecker – bit.ly/2QCF9Eg

SBA Lending Info: bit.ly/34V0g9O

Episode #17: Economic Stimulus & Where We Go From Here

With the coronavirus pandemic disrupting more and more businesses, it has been another tough week in the financial markets. In this episode, Grant reviews what has happened in the financial markets recently, some of the available policy options, and what they could mean for you. Toward the end of the episode, Grant shares his take on where the economy is heading at the moment.

If you have specific questions you’d like us to cover, visit growmoneybusiness.com, and drop your questions in the Mailbag section. Grant will answer your questions in a future episode.

Show Notes

[01:44] Recent Events – Grant reviews what has happened in the financial markets last week.

[06:01] The Federal Reserve – Grant explains the Federal Reserve’s role in keeping the economy stable.

[09:15] Federal Funds Rate – The Federal Open Markets Committee recently decided to reduce the federal funds rate by a full percentage point. Grant talks about the reason behind this decision and how the federal funds rate works.

[12:44] Fiscal Stimulus – The government is planning to cut checks to U.S. adult citizens in an attempt to help people get through this crisis. Grant explains how this fiscal stimulus works.

[18:19] Loans for Small Businesses – A part of the fiscal stimulus is meant to give loans to small businesses. Grant talks about the process of obtaining these loans.

[20:57] Bailout for Airlines – Last week, Airlines for America, a trade organization for the U.S airline industry, asked the secretary of the treasury for a bailout. Grant shares his take on the controversial nature of this.

[23:02] Stock Buybacks – Grant explains what stock buybacks are, and how the airlines have been doing it for years.

[28:44] Where We Are at Now – Grant shares his take on the current status of the economy, and what we might expect in the next few weeks.

Resources

Episode 02: An Overview of SBA lending with Joe McClure & Chris Boessenecker – bit.ly/2QCF9Eg

Federal Funds Rate: bit.ly/2Utxqti

Stock Buybacks: A Breakdown: bit.ly/2QEKI4K

The Federal Reserve: bit.ly/2xV55nR

Episode #16: Savvy Investing in Bear Markets

Since last week, the U.S. stock market has officially entered a bear market. In today’s episode, Grant shares his thoughts on making smart investment decisions in bear markets. Grant reviews how long bear markets typically last, and what we might expect in the next few weeks. Grant also discusses five savvy investment strategies you can use when markets sell off.

Show Notes

[02:49] Circuit breakers – Stock markets have safety measures that shut off markets if the stock markets fall rapidly. Grant explains how these measures work and how they kicked in last week.

[04:33] Bear markets – Grant covers what a bear market is and how we have arrived in bear market territory in the least amount of time in record.

[07:47] What historical data tells us – Grant reviews a chart created by J.P. Morgan Asset Management that shows annual returns vs. intra-year sell-offs since 1980.

[10:31] Long market crashes in history – Grant talks about long it has taken to recover from previous bear markets. He also covers how the current situation is different from historical bear markets.

[14:36] Possibility of a recession – Grant shares his thoughts on whether this situation will escalate into a recession.

[16:17] Harvesting capital losses – Benefits you can get from investing your capital losses in your taxable investment account.

[23:20] Harvesting capital gains – How you can qualify for long term capital gain tax treatment by wisely harvesting your capital gains.

[26:27] Rebalance your portfolio – Grant explains how the value of bonds typically rises when stock values fall and how you can take advantage of it.

[29:33] Fund your accounts for the year – A bear market situation is an excellent time to contribute to a 529 account, an education account, an IRA, or a similar fund. Grant explains the reason for this and the benefits you can get from funding your accounts for the year while stock markets have fallen.

[30:53] Roth IRA conversion - Grant explains why a Roth IRA conversion can be a wise move when your stock funds are down.

Resources

An overview of Bull & Bear Markets - bit.ly/2wZ4ocM

529 Plan - bit.ly/33nf54T

Roth IRA and Traditional IRA: bit.ly/39NrIIN

What is a recession: bit.ly/33oIdsG

Episode #15: The Why & How of Investing Outside Your Business

Most business owners have most of their financial assets tied up in the equity of their business, which can be a dangerous approach.  In today’s episode Grant reviews the importance of investing outside your business – even when it’s growing rapidly.   He also talks about different tax advantaged options available and the pros & cons of each. 

Show Notes

[02:08] The familiarity bias – Grant starts the episode explaining why it’s tempting for business owners to invest extra cash in their own businesses. 

[04:19] Why it’s dangerous – Grant describes, with stats from Exit Planning Institute and BizBuySell, why deploying 100% of your free cash back into your business is dangerous. 

[09:50] Exit plan – The importance of having a business transition and exit plan. 

[13:36] Available options – Grant talks about what options are available to invest outside your business, starting with different types of retirement plans. 

[18:28] Traditional IRA – How you can invest in a traditional IRA and what taxation applies to traditional IRAs. 

[24:27] Roth IRA – Grant explains the features of Roth IRAs and why he’s a huge fan of Roth IRAs. 

[29:09] Other options – How SIMPLE-IRAs and SEP-IRAs work and things you should consider before getting into these options. 

[37:14] The 401(k) plan – Grant discusses qualified retirement plans & 401(k) plans. 

[42:00] Working with a financial adviser – Grant describes the process of working with a financial advisor to set up a retirement plan & how he works with clients at Three Oaks Capital. 

[46:12] Final thoughts – Grant sums up reasons to invest outside your business and the benefits from doing so. 

Resources

BizBuySell 2019 Insight Report: bit.ly/2Tw63PU 

Exit Planning Institute: exit-planning-institute.org 

Exit Planning Institute Key Takeaways: bit.ly/32Ytch5 

SIMPLE IRA: bit.ly/3cIHarS 

SEP-IRA: bit.ly/2vDwY3f 

Roth IRA: bit.ly/39NrIIN 

401(K) Plan: bit.ly/2TMCwQV 

Episode #14: The Coronavirus and Your Investments

With Coronavirus cases being reported in 56 countries in six of the seven continents, it has created a global concern about its health impact as well as the economic impact.  Today we talk about how the Coronavirus outbreak might impact your portfolio and how we should react as investors.  Grant also studies by Charles Schwab and Vanguard on market timing, and how they relate to markets now. 

Show Notes

[00:41] A quick look at the situation – Some quicks facts and stats about the outbreak and its effects on the stock markets. 

[04:58] Don’t panic! – Grant explains, with numbers from similar previous incidents, why you should not panic even if it sounds scary.   

[06:22] It doesn’t matter when you’re in the market; it matters that you’re in the market – Grant talks about two interesting studies done by Charles Schwab and Vanguard that shows us how timing comes into play when investing. 

[13.18] Dividends and interests – Grant explains why you should invest and take advantage of dividends and interests rather than waiting for the perfect moment to invest. 

[14:47] Going through market drawbacks – How to avoid poor decision making in a time of crisis and holding on till the market bounces back. 

[17:52] Contingency planning – Grant talks about planning for worst-case scenarios. 

[21:55] Final thoughts – Grant explains why you should keep a consistent investment methodology in times like this and how all the empirical data points to the fact that you should remain invested and take advantage of dividends and interest.  

Resources

Charles Schwab’s Study on Timing the Market: bit.ly/2TxAVy5 

List of stock market corrections after WW2: cnb.cx/2VCVyvB 

Episode #13: Stepping into a Commercial Lease with Eric Anderson

If negotiating commercial real estate is something you’ve been struggling with, today’s episode is for you. Eric Anderson from Colliers International is here to talk all about commercial real estate leases. Eric is a commercial real estate broker with years of experience working on behalf of both tenants and landlords.  

In today’s episode, Grant and Eric talk about what’s negotiable, what tenants should consider, why you should work with a broker and more wisdom from Eric. Towards the end of the episode, Eric shares some of the things every tenant needs to know before entering negotiations. 

Show Notes

[03:11] What Eric does for a living – Eric shares his role at Colliers International and how he works with both tenants and landlords.   

[05:38] Looking for real estate for the first time – Grant asks Eric what to do when you’re on the market for office space for a new business.  

[09:11] How brokerage fees work – Eric explains how the fees for brokers come in to play for tenants as well as landlords. 

[15:31] Getting started with a broker – Eric explains the process he goes through with his clients who want to find office spaces. 

[22:49] Early termination – How early termination clauses work and what to do if your business grows and runs out of space and you want to move out before your lease ends. 

[31:03] What if the worst happens? – Eric talks about what happens if your business dries up for some reason before the lease ends. 

 [38:12] Due diligence by landlords – Grant asks Eric what sort of guarantees and financial track records a reputable landlord might ask when negotiating a real estate lease. 

[39:47] Grading of office spaces – Eric explains how they classify office spaces into different grades and how the grading varies from market to market. 

[42:20] Biggest mistakes tenants make – Eric shares some of the biggest mistakes he has seen tenants make over his career and how to avoid them. 

[50:19] Fiduciary responsibility of brokers – Eric explains how he works in the best interest of his clients and the reasons behind it. 

[54:58] More real estate wisdom – Eric shares quite a few things tenants should consider when looking for business spaces. 

Resources

Basics of commercial real estate: bit.ly/3c5PKRa 

What Commercial Real Estate Agents Do: bit.ly/2v0FDfP

Episode #12: How to Save on Taxes in Retirement

In today’s episode Grant covers several methods to help you save on taxes in retirement.  Grant discusses various ways to tweak your savings strategy, execute strategic Roth IRA conversions, and create a thoughtful long term plan viewed through a tax lens.  Stay tuned until the end of the episode where Grant gives away some tips about asset location, and placing your assets in the right kind of accounts. 

Show Notes

[01:26] The concept of retirement is changing – Grant starts today’s episode with a focus on how the way people think about retirement has changed over the decades and what the future might look like. 

[03:16] Retirement gap years – Grant explains the idea of the gap between when you stop working and when your guaranteed income sources such as Social Security Benefits or mandatory distributions from qualified retirement accounts start to come in. 

[07:03] Long term approach to reduce tax – Grant talks about how he works with clients with reducing tax liability over a long period of time in mind. 

[10:57] How to save tax in the retirement gap years – Once of the ways you can take advantage of falling into a lower tax bracket after you retire. 

[14:00] Benefits of Roth IRAs – Grant explains some other benefits you can have from transferring your retirement funds to a Roth IRA during your retirement gap years. 

[19:28] Inheritance of IRAs – What happens when someone inherits an IRA, the changes made by the SECURE act to the inheritance process and the tax and other benefits of Roth IRAs for descendants.  

[23:17] Benefits for Medicare – Grant explains some ways you can avoid increases in Medicare premiums by adjusting your retirement funds strategy.  

[26:18] Be thoughtful with asset location – Grant explains how to distribute assets among taxable, tax-deferred and tax-exempt accounts so that you get the maximum tax benefits. 

Resources

Social Security Benefits: bit.ly/2wssMn3 

Required Minimum Distributions: bit.ly/38ENnT2 

Roth IRA and Traditional IRA: bit.ly/39NrIIN 

Medicare: www.medicare.go 

SECURE Act: bit.ly/2RxAi6L 

Episode #11: Everything Health Benefits with Andrea Murphrey

In today’s episode, we have a very special guest, Andrea Murphrey. Andrea is an employee benefits consultant at Capitol Health Management in Sacramento. Andrea is here to talk about all things health benefits for small businesses.

Today we talk about some regulations that come into play when you need to offer health benefits to your employees. Andrea shares her wisdom on how to get started, the costs involved and some other valuable things every small business owner should know before offering a health benefits package in their business.

Show Notes

[02:07] Andrea’s story – Andrea shares how she got started with her 30-year career in employee benefits consulting.

[03:38] When are you required to offer health benefits – Andrea explains when a small business is required to offer health benefits to employees and the related regulation, the Affordable Care Act.

[05:09] Full time & part-time employees – What happens when you have a pool of full time and part-time employees and how to know if you are required to offer health benefits.

[08:08] How to manage different plans – Andrea explains your options when your employees want to select different plans and the process and costs associated with it.

[11:05] Health Savings Accounts & Flex Spending Accounts – Grant and Andrea discuss the pros and cons of the 2 types of accounts.

[15:33] Can HASs and FSAs coexist? – Grant asks Andrea how to make use of both types at once.

[17:00] Why premiums rise so much year to year? – Andrea explains the reasons behind the increase in premiums.

[21:13] How to offer a decent benefits package – Andrea talks about ways for small businesses to offer a good benefits package without paying out the years.

[28:48] Common misconceptions – Andrea shares some of the biggest misconceptions she has seen among small business owners over her long career.

[32:00] Going through the exchange versus working with a broker – Grant and Andrea discuss the pros and cons of these two methods of obtaining coverage.

[40:54] Current state of the Affordable Care Act – Grant asks Andrea about the changes to the Affordable Care Act made by the current administration.

[44:55] What else you should know about health benefits – Andrea share what she would most like people to know about health benefits before you see a professional like her.

Resources

Drug Price Info – www.goodrx.com

Affordable Care Act - bit.ly/37j9EUV

Health Savings Accounts - bit.ly/2Sy4fUH

Flex Spending Accounts - bit.ly/2UE5T9Z