Episode #155: How to Avoid the 10% Withdrawal Penalty If You're Retiring Early

If you’re planning for early retirement and have saved money in tax qualified accounts, there are some important considerations to be aware of. In this week’s episode of Grow Money Business, we are going to dive into how early retirees can avoid the 10% withdrawal penalty. Throughout the episode, we discuss the details of the early withdrawal penalty, some common misunderstandings about Roth IRAs, and the three options you can use to avoid the 10% withdrawal penalty when you decide to retire before 59½.

Show Notes

[01.02] Early withdrawal penalty – Grant explains the ins and outs of the early withdrawal penalty, which applies to distributions taken from an IRA or retirement plan before the participant is 59½ years old.

[05.15] 401k Distributions – Grant shares some important considerations if you plan to take distributions from your 401K before IRAs or Roth IRAs.

[10.45] Substantially equal periodic payments – Grant explains how you can avoid the early withdrawal penalty by utilizing substantially equal periodic payments.

[16.15] Taxable Brokerage Accounts – Grant shares a third maneuver for avoiding the early withdrawal penalty that allows tax-deferred accounts to grow and compound.

[20.16] Roth IRA Myths – Grant clarifies some common misconceptions regarding the five-year ROTH IRA rule.

Resources

72t Distributions: The Ultimate Guide to Early Retirement –

https://www.abovethecanopy.us/the-ultimate-guide-to-early-retirement-with-72t-distributions/ 

Substantially Equal Periodic Payments –

https://www.irs.gov/retirement-plans/substantially-equal-periodic-payments 

Exceptions to Tax on Early Distributions –

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions 

Episode #154: The Small Business Owner's Financial Order of Operations

Whether it’s related to your personal or business finances, it is always essential to go one step at a time when comes to planning. This week on Grow Money Business, we are going to talk about the small business owners' financial order of operations. Throughout the episode, we dive into Dave Ramsey’s seven-step checklist, as well as Grant's 10-step financial planning checklist for small business owners.

Show Notes

[03.50] Ten steps checklist – Grant explains the benefits of financial planning and introduces his 10-step checklist for small business owners.

[09.51] Step one – Grant shares the first step of his checklist and explains the importance of establishing an emergency fund of one month’s worth of personal expenses.

[11.28] Step two – Grant dives into step two of his checklist: adding an emergency fund of one month's worth of operational expenses.

[12.25] Step three – Grant explains the importance of paying off both personal and business high-interest debts in his third step.

[13.00] Step four – Grant outlines step four, which is expanding personal emergency funds from one month's worth of expenses to between three to nine months' expenses.

[14.00] Step five – Grant dives into step five: expanding the business cash fund.

[15.30] Step six – Grant shares the sixth step of his checklist, which is establishing a company retirement plan.

[15.35] Step seven – Grant explains the importance of financial flexibility, and why your next step should be paying off your other non-mortgage debt (student loans, auto loans, etc). 

[17.00] Step eight – Grant reviews the eighth step of his check list, which is circling back to the retirement plan and maximizing your supplemental retirement saving options.

[18.00] Step nine – Grant dives into step nine: saving for your children’s education.

[18.40] Step ten – Grant shares the final step of his checklist, which is building wealth.

[23.27] Emergency fund – Grant shares some tips on choosing an amount for your emergency fund according to your current financial position.

Resources

Dave Ramsey’s 7 Baby Steps:
ramseysolutions.com/dave-ramsey-7-baby-steps 

Financial Order of Operations Course
learn.moneyguy.com/financial-order-of-operations-course

Episode #153: Have Stocks Already Hit Rock Bottom?

 The stock and bond markets have had a terrible time this year, and many wonder if the worst is over or if the next 12 months will bring more hardship. However, although the economy faces challenges, there are also grounds for optimism. In this episode, we'll dive into the details of what's been happening recently in the economy and the stock market, as well as some suggestions for how you might want to adjust your investment strategy.

Show Notes

[02:55] Long-Term Bond Yields  - Grant explains the current state of inflation, and how the long-term bond yield is a good proxy for inflation expectations.

[06:21] Inflation Expectations - Inflation expectations among the general public have decreased. Grant goes into greater depth on inflation expectations, elaborating on the labor market and US unemployment rates.

[09:53] The US Dollar – Grant explains the consequences of the US dollar's value and strength fluctuations.

[11:36] Oil Prices – Grant discusses whether or not the recent rise in oil prices can be attributed to Opec's decision to reduce its output.

[14:03] Investing -  Grant shares how you can use data to make better decisions about your investments.

[20:17] Valuation Measures – Grant shares some different valuation measures that you should be aware of.

Resources

Have The P/E Ratios Of S&P 500 ETFs Dropped Into The Buy Range?: seekingalpha.com/article/4544667-have-s-and-p-500-etfs-pe-ratios-dropped-into-the-buy-range

Here's one key measure of stock performance that suggests the market has already hit a bottom, Leuthold's Jim Paulsen says: msn.com/en-us/money/markets/heres-one-key-measure-of-stock-performance-that-suggests-the-market-has-already-hit-a-bottom-leutholds-jim-paulsen-says/ar-AA13ktlF

Episode #152: Responsible Emerging Markets Investing With Perth Tolle

Investments in developed economies like the U.S. and Europe are generally thought to be less risky than those in emerging markets. However, these emerging markets come with a great deal of investment potential. We dedicated today’s episode to exploring responsible emerging markets investing, and are joined by Perth Tolle, the founder of Life + Liberty Indexes. Throughout the episode, we dive into the Perth’s professional journey, freedom weighting, funding, ESG, operating expenses, and more.

Show Notes

[04.14] The Journey – Perth shares her story and the reason behind not investing in her home country.

[07.22] Freedom weighting – Perth explains how they use third-party freedom metrics based on three freedom categories; civil, political, and economic.

[12.16] Chile – We dive into the dynamics of the best-performing emerging market this year.

[16.28] Funding – Perth explains how the funding was done in 2019, and shares some performance metrics.

[21.20] Environmental, Social, and Governance – Perth shares why they are distancing from ESG.

[25.27] Lifecycle – Perth explains the process of starting her ETF.

[38.45] First purchasing – Perth shares details on the first security purchasing.

[42.18] ADRs – Perth and Grant discuss American Depositary Receipts (ADRs), which are negotiable security instruments issued by U.S. banks and reflect a certain number of shares in a foreign business traded on U.S. financial markets.

[44.50] Work-life balance – Perth explains the importance of a balanced personal and professional life.

[47.39] Next five years – Perth shares what the next five years in her organization will look like.

Resources

Connect with Perth

 https://www.linkedin.com/in/perth-tolle-7757b745/

 https://twitter.com/Perth_Tolle

https://www.lifeandlibertyindexes.com/

https://www.linkedin.com/company/life-liberty-indexes/

https://alphaarchitect.com/wp-content/uploads/compliance/etf/factsheets/FRDM_Factsheet.pdf

Episode #151: Managing Employment-Related Legal Risks With Andrew Esposito

Managing and treating employees fairly while maintaining compliance with state and federal regulations is a delicate aspect of any business organization. This week on Grow Money Business, we’re joined by Andrew Esposito. Andrew is a labor law practitioner, human resources attorney, and manager of client development at Clemans Nelson & Associates, a management consulting service provider for labor relations and human resource management needs. Throughout the episode, we dive into some of the biggest legal risks Andrew had to face related to employment and more.

Show Notes

[03.32] Background –Andrew dives into his professional career, where he currently works, and what services they are providing to customers.

[05.41] Labor law posters – Little things matter the most when it comes to a small business. Andrew dives into the importance of purchasing labor law posters yearly and posting them in a clear visible area.

[08.18] Businesses – Andrew shares what kind of businesses they are working with within their practice.

[10.09] 1099 Contractor vs. W2 employee – Andrew outlines some important considerations for small business who want to avoid legal problems related to hiring independent contractors.

[17.21] Salaried & hourly – Andrew explains the difference between salaried and hourly employees.

[25.53] Employee count – Andrew shares some relevant points around the employee count of an organization.

[32.06] Biggest risks – Andrew dives into the biggest risks that he had to take throughout his career.

[46.53] Exit & stay interviews – Andrew explains the differences between exit interviews and stay interviews.

Resources

https://clemansnelson.com/

Episode #150: 5 Investment Considerations for Business Owners in Down Markets

The recent increase in interest rates has resulted in lower asset prices across the board. For investors, it’s always beneficial to be aware of ways to minimize the impact of unfavorable market conditions. In this episode, Grant dives into five key measures investors can take to protect their investments in down markets and how to benefit from tax planning opportunities that arise in times of low business profitability.

Show Notes

[01:46] Market Conditions – Grant discusses some of the recent negative changes in financial markets and the reasons behind them.

[02:41] Tax Loss Harvesting – Grant explains how to harvest losses by strategically selling securities in your portfolios, as well as the IRS rules associated with this maneuver.

[08:34] Accelerating Income – Down markets are often associated with a time of poor business profitability. Grant dives into how business owners can take advantage of lower tax brackets in tough times.

[13:53] Active Mutual Funds – Grant shares how down markets can affect active mutual funds and what investors should keep in mind about how this affects their tax bill.

[19:38] Rebalancing – When markets are down, the balance of different asset classes in an investment portfolio is going to change. Grant dives into why investors should rebalance their portfolios.

[22:04] Putting More Money to Work – Grant explains how savvy investors can take advantage of down markets by strategically adjusting their contributions to investment vehicles such as 401k plans or SEP IRAs.

Resources

Episode #61: Tax Gain Harvesting: What, Why, and How

Episode #16: Savvy Investing in Bear Markets

Episode #149: No, the 60/40 Portfolio Is Not Dead

Recently we’ve seen quite a few headlines that suggest that the concept of the 60/40 portfolio has run its course. However, a fair amount of pushback is caused by people adopting this concept for the wrong reasons. In this episode, Grant dives into the unique benefits of the 60/40 portfolio that made it so popular, why this concept is still valid, and how to properly use this portfolio concept in today’s economic conditions.

Show Notes

[01:40] The 60/40 Rule – Grant explains the idea behind the 60/40 rule, how it became extremely popular among investors over the last few decades, and why some people have started to question its relevance.

[04:00] Economic Trends – Grant dives into some of the economic trends related to inflation and deflation that caused a lot of speculation recently and their impact on businesses and investments.

[10:59] Diversification Benefits – Grant discusses the benefits of having both stocks and bonds in a portfolio and how it improves the risk-adjusted return over a long period.

[14:50] Tough Economic Conditions – Grant explains how the mortgage crisis affected people’s confidence around the diversification benefits of having stocks and bonds and how a combination of stocks and bonds can help your portfolio survive a period of tough economic conditions.

[23:20] The Bonds are Your War Chest – Grant dives into how to take advantage of bonds to improve your portfolio while stocks are underperforming.

Resources

Time, Not Timing, is What Matters:
capitalgroup.com/individual/planning/investing-fundamentals/time-not-timing-is-what-matters.html

Should You Sell Your Stocks When The Market Tanks? The Myth Of Missing The Best 10 Days:
forbes.com/sites/raulelizalde/2022/05/05/should-you-sell-your-stocks-when-the-market-tanks-the-myth-of-missing-the-best-10-days/?sh=2c7b090273ed

Episode #148: Using Entrepreneurship For Good With AnnMaria De Mars

Entrepreneurship is one of the best ways to change the world around us, and there’s a lot to learn from entrepreneurs who are building businesses that solve problems that exist in their communities. This week on Grow Money Business we’re joined by AnnMaria De Mars, the founder and president of 7 Generation Games, an educational software company that focuses on creating video games to teach math to kids and students. Throughout the episode, we dive into AnnMaria’s journey and how she’s using entrepreneurship to create a positive impact on the world.

Show Notes

[02:30] From Academics to Entrepreneurship – AnnMaria shares how her interest in mathematics helped her evolve into a serial entrepreneur.

[11:22] Video Games – AnnMaria explains what led her to start her venture in creating video games to teach mathematics.

[19:31] Solving Problems – AnnMaria shares what motivated her to develop businesses in a way that solves problems and helps people in rural communities.

[24:32] Building the Business – AnnMaria discusses how she gathered the required funding and other resources to build her business.

[28:38] Current Progress –AnnMaria describes her organization’s current performance, growth, and plans for the future.

[34:43] Sports – AnnMaria is a national champion in Judo. We talk about how she got into Judo and the profound impact of sports on her life and the lives of her children.

[46:31] Business and Life –AnnMaria explains how her risk tolerance evolved with her personal priorities.

[51:22] Fundraising for Startups – AnnMaria shares some of the ways startups can raise money with the help of people in a community.

Resources

7 Generation Games:
www.7generationgames.com
youtube.com/c/7GenGamesTV

LinkedIn: www.linkedin.com/in/annmaria-de-mars-3549606

Episode #147: Expanding Your Estate to Other Countries with Mikkel Thorup

If you're interested in the advantages of foreign diversification for asset preservation and estate planning, this is the conversation for you. This week's guest on the show is Mikkel Thorup, the CEO of Expat Money™, a consulting advisory organization that assists individuals with foreign asset diversification. Mikkel assists clients in relocating their wealth out of the United States by helping them establish offshore trusts and foundations and facilitating foreign investments. In this episode, we explore how you can expand your estate beyond your home country's limits.

Show Notes

[02:34] Background – Mikkel summarizes his journey thus far by discussing his work, his clientele, and the source of his exposure to the industry in which he currently works.

[15:37] Asset Protection – Mikkel goes over the basics of asset protection, including what it is and how it operates.

[21:12] Trust vs. Foundation – Mikkel discusses trusts and foundations, as well as how his consulting firm helps its clients with these types of frameworks.

[26:46] Be Aware - Cross-border issues and scammers are a perennial concern in modern society. Mikkel outlines where people go wrong, what mistakes might be made, and what must occur to move assets overseas.

[32:28] Residency vs. Citizenship – Mikkel offers a comprehensive breakdown of the concepts of citizenship and residence in a foreign country.

[39:36] Opportunities – Mikkel explains his overall philosophy and strategy, as well as the process by which he sources opportunities for clients.

[43:35] Selections – Mikkel outlines how he decides which jurisdictions to work on or within.

Resources

Expat Money Summit 2022: expatmoneysummit.com

Website: expatmoney.com

Connect with Mikkel:

LinkedIn: linkedin.com/in/mikkelthorup/

Episode #146: Here's What Happened During the Meme Stock Rally of 2021

You may recall that at the beginning of 2021, the stock prices of AMC and GameStop skyrocketed. There were numerous news articles about people driving up the prices of companies that were not otherwise exceptionally profitable investments. This week on the podcast, Grant dives deep into what caused the Meme Stock Rally of 2021, as well as the importance of investing our portfolios as prudent, long-term investors.

Show Notes

[03:20] Meme Stock Rally - Grant recalls the events that transpired during the 2021 Meme Stock Rally involving AMC and GameStop.

[10:41] Two Options – Grant explains how short-selling stocks and the options market are the two most common ways to wager against a company.

[21:05] Changes - Grant outlines in broad terms how AMC and GameStop have changed as a result of this chain of events.

[26:22] Research – Grant presents the conclusions of the in-depth research that was conducted on the Meme Stock Rally at both the SEC and Harvard.

[34:30] Lessons – Grant explains how the Meme Stock Rally serves as an excellent lesson on time horizon and irrationality, illustrating how wise investors should consider investing in their portfolios.

Resources

Did Pandemic Stimulus Funds Spur the Rise of 'Meme Stocks'?: hbswk.hbs.edu/item/did-pandemic-stimulus-funds-spur-the-rise-of-meme-stocks

How AMC rode the meme stock rally to revitalize its business: cnbc.com/2022/01/26/how-amc-rode-the-meme-stock-rally-to-revitalize-its-business.html

Robinhood almost imploded during the GameStop meme stock chaos: techcrunch.com/2022/06/27/robinhood-report-meme-stock-gamestop/

Robinhood and CNBC's Jim Cramer fuel stocks for "stimmy" rally: cbsnews.com/news/robinhood-jim-cramer-stimulus-stock-market/

Stock Market Stimulus: hbs.edu/faculty/Pages/item.aspx?num=62111

Episode #145: Everything You Need to Know About Biden’s Student Debt Forgiveness

Last week, President Joe Biden announced a new student loan relief program that promises to cancel $10,000 of student debt for low- to middle-income borrowers. Since then, this topic has become somewhat controversial and has ignited a fair amount of debate online. This week on the podcast, Grant dives into the provisions of this new student loan relief program, eligibility criteria, and some of the planning opportunities that have emerged from the program.

Show Notes

[03:31] Background – Grant shares the details of President Biden’s new executive action and why it’s considered controversial. 

[06:35] Qualified Loans – Grant explains the types of loans that are qualified under the provisions of the student loan forgiveness program. 

[08:42] Income – Income is the most prominent factor that determines eligibility for loan forgiveness. Grant breaks down the numbers of the income levels that qualify for this program. 

[14:05] Income-driven Payments – Grant shares his thoughts on the differences between income-driven payment programs that were introduced earlier and President Biden’s new program. 

[20:00] Planning Opportunities – Grant discusses some of the tax planning opportunities that may allow you to qualify for the new loan forgiveness program. 

[29:58] Earlier Programs – Grant shares some highlights of the provisions that were included in the income-driven payment programs that were introduced earlier. 

[35:00] Enrolling in a New Program – Grant shares his take on the pros and cons of enrolling in a new income-driven repayment program. 

Resources

FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most 
whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/ 

Biden-Harris Administration Announces Final Student Loan Pause Extension Through December 31 and Targeted Debt Cancellation to Smooth Transition to Repayment 
www.ed.gov/news/press-releases/biden-harris-administration-announces-final-student-loan-pause-extension-through-december-31-and-targeted-debt-cancellation-smooth-transition-repayment 

Episode #144: The Long Term Care Insurance Landscape With Matt McCann

The need for long-term care has been steadily increasing over the last decade, primarily due to our aging demographics and retiring baby boomers. This week on Grow Money Business, our guest is one of the nation’s leading experts in long-term care insurance. Matt McCann, the managing editor at LTCNews.com, and Principal Owner/Long Term Care Planning Specialist at McCann Insurance Services, joins us to dive deep into the structure of long-term care insurance policies. Throughout the episode Grant and Matt discuss available options as well as some opportunities to reduce the costs associated with long-term care insurance.

Show Notes

[02:05] Matt’s Journey – Matt shares how his career started in radio and transitioned into insurance.

[05:28] The Need for Long-term Care – Matt explains how the changes in our population have increased the need for long-term care and how different states are responding to this situation.

[15:09] Insurance & Financial Planning – Matt shares his thoughts on the costs associated with long-term care and how those affect the financial strength and investments of a person.

[23:40] Regulations & Pricing – Grant and Matt discuss how the regulations related to long-term care insurance have been updated in recent years, as well as changes in pricing models that followed.

[30:57] Tax-free Exchanges – Matt explains the process of a tax-free exchange, which allows life insurance policyholders to get long-term care without actually writing a check.

[34:37] Insurance for Business – Matt shares some of the tax benefits business owners can get by arranging long-term care insurance for their employees.

[42:03] Family & Emotional Impact – Matt discusses how familial concerns can be solved by planning for long-term care insurance, as well as how insurance relates to retirement planning.

[45:52] Options for Long-term Care – Matt shares several options available for people who are in need of long-term care.

Resources

Connect with Matt

Websites:

www.ltcnews.com

mccannltc.net/quote

LinkedIn: linkedin.com/in/matt-mccann-ltc

Episode #143: The Back to Front of Cryptocurrency Taxation with Micah Fraim

Cryptocurrency as an investment is relatively new, especially compared to other investment vehicles such as stocks and bonds. Because of this, there is a lot of confusion and a lack of guidance around how taxation applies to cryptocurrency-based investments. This week on Grow Money Business, we are joined by Micah Fraim, a Certified Public Accountant who specializes in crypto taxes. Throughout the episode, we take a dive deep into the tax aspect of cryptocurrencies, NFTs, and other blockchain-based assets.

Show Notes

[02:01] Getting to Know Micah – We start the conversation with a brief look at Micah’s career and how he got into his current line of work in taxation for cryptocurrency.

[04:12] Taxation for Crypto – Micah dives into the limitations of our current tax system in relation to cryptocurrency and  virtual assets, as well as some of the attempts that have been taken to introduce legislation related to cryptocurrencies.

[10:45] Tax Basics – Grant and Micah discuss some of the most basic tax concepts related to investments and how they apply to cryptocurrencies.

[15:47] Opportunities – Micah shares some of the opportunities that arise along with a crypto bear market.

[25:31] NFTs – Micah explains the current tax code’s application to NFTs and how the wide range of use cases available for NFTs will call for more advanced tax rules.

[30:44] Play-to-earn Games – Micah shares his thoughts on how games are introducing new in-game economies and how they are connected to crypto investments.

[35:38] Tracking Crypto Transactions – Micah discusses how to track crypto transactions across multiple trading platforms for taxation purposes.

[42:06] Audit Risks – Micah dives into the risks that could arise from irregularities in crypto transactions that are reported to the IRS.

[44:41] Crypto as Payments – Grant and Micah discuss some important considerations for business owners who are accepting payments in cryptocurrencies and how it may affect business operations.

[50:00] Future of Crypto – Micah shares his thoughts on how cryptocurrency projects may evolve in the near future, as well as how the regulations may be adjusted to match the innovations in the crypto space.

Resources

Connect with Micah

Websites:
cryptotaxcpa.com
www.fraimcpa.com
micahfraim.com

Micah’s Books

Decrypting Crypto Taxes: The Complete Guide to Cryptocurrency and NFT Taxation
amazon.com/Decrypting-Crypto-Taxes-Complete-Cryptocurrency-ebook/dp/B0B88Y42JF

The Little Big Small Business Book
amazon.com/Little-Big-Small-Business-Book-ebook/dp/B00ZE5YWFK

Episode #142: Using Pricing Strategy to Create Business Value

Pricing is a potent tool that businesses can use to increase profitability as well as the value of the company. However, at times, increasing the price of a product or service can be scary for a lot of small businesses. This week on Grow Money Business, we have a fascinating conversation with an expert in pricing, Robert Ribciuc. Robert is the managing partner of EBITDA Catalyst, a firm that helps businesses improve their pricing strategy. Throughout the episode, we dive into why pricing strategy is important to businesses of all sizes and some of the key things business owners should consider when setting prices for their products and services.

Show Notes

[02:37] Robert’s Story – We start the conversation with a brief look at Robert’s career journey, what led him to start his firm, EBITDA Catalyst, and how it helps businesses improve their pricing strategy.

[04:57] Impact of Pricing – The role pricing plays in the success of a business and how it impacts the valuation of the company in the long term.

[11:59] Acquisitions – Robert shares his thoughts on how the pricing strategy of a business comes into play in an acquisition.

[16:25] Pricing in a Competitive Market – For small businesses in very competitive markets, increasing the price of goods or services can be scary. Robert dives into how to identify good opportunities for higher prices and how to deal with the anxiety that comes with it.

[21:23] Pricing and Cost – What business owners should consider when adjusting pricing to compensate for the costs that have gone up.

[29:47] Value Proposition and Pricing – How business can adjust their pricing in a way that generates maximum returns according to the value provided to the customer.

[34:07] Mission-driven Pricing – Robert shares his take on the unique opportunity that smaller businesses have to optimize their businesses towards goals and causes other than just profit.

[37:00] Evaluating Value – What business owners should consider when evaluating their value proposition in turbulent market conditions.

[41:19] Monetizing Innovation – Robert shares his thoughts on pricing for new products or services.

[46:40] SMB Bootcamp – Robert shares his excitement about his Small and Medium Business Pricing Bootcamp, while discussing some of the most rewarding aspects of working with entrepreneurs.

Resources

Connect with Robert

Website: ebitdacatalyst.com
LinkedIn: linkedin.com/in/ribciuc

SMB Training: ebitdacatalyst.com/smb-pricing-bootcamp/

Episode #141: A Venture Capital Vet’s Building Blocks of Success

This week on Grow Money Business, distinguished guest Rick Dennen joins us. Rick is Chief Corporate Banking Officer at First Financial Bank and the founder of Oak Street Funding. Having evaluated hundreds of business deals over his decades-long career, Rick has a lot of knowledge and experience in venture capital. In today’s episode, we dive into what business owners should keep in mind when funding their business ventures with debt or equity.

Show Notes

[02:49] Rick’s Story - We start the discussion with a brief look at Rick’s career and how he started Oak Street Funding. 

[07:52] Working with Banks – When Rick started his firm in the early 2000’s, banks were reluctant to lend to service-based businesses even though they had positive cashflows. We dive into the reasons behind this behavior and how things have changed after two decades.  

[11:35] Recent Market Shifts – Rick shares his thoughts on how the M&A market is responding to the recent changes in the economy. 

[15:28] Debt vs. Equity – Rick explains what business owners need to consider when deciding between taking on debt and looking for an equity partner.  

[21:29] Lessons for Businesses – Rick shares some key takeaways about funding and the growth of a business. 

[24:48] Evaluating Businesses – How Rick approaches evaluating a new business idea and the metrics used for measuring performance. 

[27:15] Business & Parenting – Rick is the father of three children in their early 20s. We talk about how they are involved in business and why Rick approaches business-related conversations with his children. 

[34:48] What’s Next for Rick – We talk about Rick’s area of focus and future plans for his new role at the bank. 

Resources

Connect with Rick 

LinkedIn: linkedin.com/in/rick-dennen-721b363 

Website: 

www.oakstreetfunding.com 
www.firstfranchisecapital.com 
www.bankatfirst.com 

Episode #140: Here’s Exactly What To Do With Your Old Life Insurance Policy

In our financial planning firm, we come across many people who are raising the question of whether or not their old insurance policies are worth maintaining. However, it is important to know that there are certain ramifications and complexities are associated with getting rid of an insurance policy. In this episode, Grant dives deep into important considerations related to choosing, maintaining, or terminating insurance policies.

Show Notes

[02:28] Purpose of Insurance – Grant discusses the purpose of insurance policies and how they create a safety net for you and your loved ones.

[05:50] Do You Really Need Insurance? – Grant explains how to determine whether you really need life insurance, given the nature of your existing insurance policies, your financial status, and income streams.

[09:08] Types of Insurance – Grant describes the two main types of life insurance and how to determine which is the right type of policy for you.

[13:00] Cost Breakdown – Grant explains the cost breakdown of insurance policies.

[17:01] What to do With a Permanent Policy – Grant shares some options for people who no longer need their permanent policy.

[28:33] The Right Option – Grant explains how he helps clients decide which option is best depending on their financial status and goals.

[31:59] Insurance Products That Actually Make Sense – Grant shares his take on some of the legitimate use cases for some common insurance products.

Resources

How to Find Out if an Old Life Insurance Policy is Worth Anything
www.harborlifesettlements.com/old-life-insurance-policy-worth-anything

What to Do with an Old Life Insurance Policy
kiplinger.com/article/insurance/t064-c032-s014-what-to-do-with-an-old-life-insurance-policy.html

What to Do About That Old Life Insurance Policy
investinganswers.com/articles/what-do-about-old-life-insurance-policy 

Episode #139: Using Financial Data to Manage Your Small Business with Anne Gannon

Data-driven decisions are a key factor in the success of any modern business. Although larger businesses tend to be very good at making data-driven decisions, this isn’t always the case for small business owners. This week on Grow Money Business, we speak with a professional who helps small businesses use the financial data that they can have at their fingertips to make better decisions. Anne Gannon, the principal and the founder of The Largo Group, shares her wisdom on how and why business owners should utilize the power of data to grow their businesses.

Show Notes

[02:06] Anne’s Story – We start the conversation with a brief look at Anne’s career and what her firm, The Largo Group, offers to small businesses.

[06:00] Cashflow – Anne shares some trategies for small business owners to analyze the cash flow and review business transactions.

[09:56] Budgeting – Anne explains why it’s a good exercise for small business owners to create a budget and analyze their business expenses.

 [15:19] Paying Yourself – Anne dives deep into how and when small business owners should pay themselves.

[21:06] Surviving the Pandemic – Anne explains how The Largo Group helped its clients survive through the pandemic.

[26:00] SBA Loans – Anne shares her thoughts on the SBA loan program with some pros and cons.

[33:33] Growth – Anne explains what small business owners should consider when planning for growth.

[36:06] Tax Strategies – Anne shares some tax strategies restaurants and other similar businesses can utilize to minimize their tax liabilities.

[43:47] Mindset – Why mindset is a key factor in the success of a business owner and some other business lessons from Anne’s career in professional golf.

Resources

Connect with Anne:

Website: www.thelargogroup.com
LinkedIn: linkedin.com/in/anne-gannon-529107148

Episode #138: How to Use Options as Portfolio Insurance

As we approach an era of economic uncertainty, many investors are becoming concerned about the value of their investments falling. This is where, if used carefully, options contracts can give investors the ability to safeguard their investment portfolios. In this week's episode, Grant explains the pros and cons using options as portfolio insurance, as well as some major risks investors could face when using this investment strategy.

Show Notes

[02:19] Introduction -  Grant discusses how investing in options can be used to reduce portfolio risk for some investors.

[06:57] Put Option – Grant gives a comprehensive overview of put options and the benefits and risks of investing in them.

[17:10] ETF - Grant explains how having option contracts on ETFs can be advantageous.

[20:25] SPY – Grant describes SPY ETFs and provides a hypothetical scenario on utilizing option contracts.

[24:30] Call Option – Grant shares the pros and cons of call options.

[31:20] Combining Strategies – Grant describes an investment option in which you can create revenue by selling call options against positions that you already hold in your portfolio.

[34:22] Be Mindful -Grant stresses the importance of limiting risk, and why you should proceed with caution if you’re considering this investment option.

Resources

Mentioned in the episode:

Portfolio Insurance using Index Puts:

theoptionsguide.com/portfolio-insurance-using-index-puts.aspx

Stocks, Bonds, Options, Futures, and Portfolio Insurance: A Rose by Any Other Name: bostonfed.org/-/media/Documents/neer/neer495c.pdf

Using Put Options To Protect A Portfolio Of Tech Stocks:

investors.com/research/options/put-options-protect-portfolio-of-tech-stocks/

Episode #137: All About I-Bonds, TIPS, and Bond Investing in Inflationary Times

As inflation continues to rise, many questions have come up regarding best practices for safeguarding investments. This week on Grow Money Business, Grant takes a deep dive into bond investing in an inflationary market, and answers some important questions about Treasury Inflation-Protected Securities (TIPS) and I-bonds. Throughout the episode, Grant shares his thoughts on when they may be a good fit for your portfolio, as well as some important considerations and strategic approaches to bond investing.

Show Notes

[04:07] Bond Investing – Grant explains the process of bond investing and the importance of allocating a portion of your portfolio to US government securities.

[08:44] Treasury Inflation-Protected Securities – Grant discusses the similarities and distinctions between ordinary US government securities and treasury inflation-protected securities.

[13:41] Interest Rate Risk – Grant explains why the value of TIPS are decreasing even though they are intended to protect investors against inflation.

[21:26] I Bonds – Grant describes the structure of I-Bonds, and shares his thoughts on who is best suited to invest in them.

[25:48] $10,000 Limitation – Grant shares a strategic approach on how to circumvent the $10,000 per year per person investment limit that the Treasury Direct website imposes.

[29:00] Emergency Fund Cash – Grant explains why he does not recommend investing emergency fund cash in I bonds.

[32:50] Borrowings – Grant describes how rising inflation affects borrowing and how to benefit from borrowing in inflationary times.

Resources

Treasury Direct: treasurydirect.gov/

Treasury Inflation-Protected Securities: wsj.com/market-data/bonds/tips

Treasury Inflation-Protected Securities: FAQs about TIPS: schwab.com/learn/story/treasury-inflation-protected-securities-faqs-about-tips

Episode #136: Taming the Cost of College With Brad Baldridge

Properly planning for a college education has become one of the crucial decisions that could define the future of a young adult. This week on Grow Money Business, we’re joined by Brad Baldridge, a licensed financial planner, consultant for college funding, and main podcaster for the “Taming the High Cost of Education.” Brad assists families in preparing and saving for college by offering individualized planning services and insights on the most recent tax, cash flow, and academic strategies. Throughout the episode we discuss many important strategies for reducing the cost of college expenses, as well as some common mistakes you don’t want to make.

Show Notes

[01:54] Background – Brad describes how he became interested in college planning and shares some thoughts on why it is so expensive.

[05:23] Sticker Price – Brad explains the evolution of sticker pricing and how it impacts college planning.

[21:24] Process -  Brad walks us through his advising process on how he helps individuals apply, enroll, and select the best school for them.

[27:16] Strategies for Business Owners -  Brad explains what company owners should know about planning and paying for their children’s college education.

[45:36] Common Mistakes – Brad outlines several common mistakes people make when planning for a future college education.

[50:22] Best Choice – Brad explains how to differentiate between applying to a college with a reputable financial aid office versus one that may not be as transparent.

[59:42] Taming the High Cost of College – Brad describes how his college funding company serves its clients.

Resources

Connect with Brad:

LinkedIn: linkedin.com/in/bradbaldridge/

Website: tamingthehighcostofcollege.com/

Website: bradbaldridge.com/