Here's my checklist for having a new baby:
open 529
update estate plan
add as credit card AU
reserve email address
add to health insurance
register domain name(s)
freeze credit w/ 3 bureaus
update account beneficiaries
create airline loyalty accounts
What did I miss?
Is it just me or do you think inheritance is kind of silly?
- usually received when kids are in their 50's or 60's and they don't need it
- could have been more impactful decades earlier
- missed opportunity for memorable experiences w/ family
Thoughts?
@JohnMcNee1
@EddyElfenbein
Looks like their exec team makes about $120M/yr.
So, if they all worked for free the company would save that expense and their margin would move from 2.39% to 2.41%
🙄
"you don't wear a suit to meet with clients?"
No.
1) it's unnecessary
2) it's 2024, not 1994
3) if clients are fixated on attire rather than value and results, they're not a good fit
What did I miss?
A great question to test self-awareness of a finance person:
"Will there be a recession in 2024?"
Any answer that isn't some form of "I don't know" is incorrect.
I quit my job last week.
Walked away from a highly respected company, a stellar team, and a great salary.
Why would I do this? Am I taking crazy pills? 🤪
Nah. I'm thinking more clearly than ever!
At this point, I value time > money.
1/3
@EddyElfenbein
The moral of the story is that you need ownership.
Paychecks won't make you wealthy, ownership will.
Own companies, own a small business, own real estate, own something that generates income.
"Should I buy or rent?"
You can argue the numbers all you want
But knowing that a landlord can't boot you out when your lease is done is a huge benefit of owning.
@White_RhinoCap
Custodial IRA requires earned income by the child. Also, don't forget the 529 to Roth rollover that was passed into law a few years ago.
@GlennYaney
Some in both groups.
Despite popular opinion, 401k's are not locked up until 59.5.
It's common for early retirees to use methods like:
1) SEPP
2) Roth conversion ladder
3) rule of 55
to access early without penalty.
The 4% rule is great at preventing "type 1" plan failures - running out of money.
But it sucks at preventing "type 2" plan failures - dying with millions (unintentionally).
What's your plan to prevent type 2 failure?
@sampullara
are you talking about an irrevocable trust?
These have pros and cons, but the estate tax exemption is currently about $13 million per person. Not a concern for 99.999% of people.
Another day, another client rescued from a 𝙙𝙪𝙢𝙥𝙨𝙩𝙚𝙧 𝙛𝙞𝙧𝙚 portfolio.
This one was designed by a big-name firm and had some serious issues:
❌ 21 funds, many with overlapping exposure
❌ Fund fees as high as 0.79%
❌ Roth and Traditional IRA's had exactly the same
2020: had an idea
2021: finished CFA
2022: launched 7 Saturdays Financial
2023: left corporate
2024: replaced prior salary
Anything worth doing takes years of effort.
It's not easy.
But it's 100% worth it.
What are you waiting for?
📢 It's MISCONCEPTION MONDAY!
"Your 401(k) money is locked up until age 59.5"
❌ Wrong.
There are several ways to access this money early.
And you can avoid the 10% early withdrawal penalty.
Just takes a little planning!
Check it out 👇
1/6
**ALERT: Dividends are not magic or free money.**
They're often viewed as extra yield, a “bonus” on top of a stock’s normal return.
Sounds great... but that's not how it works.
1/7
@Michael_Medina8
@danielcrosby
Pretty scammy. You know the host is pocketing most of that cleaning fee. Kind of like how ebay sellers will charge a much smaller amount for the item but a fat shipping and handling fee.
We "waste" money on:
- a lawn guy
- a house cleaner
- pricey gym memberships
- prepped lunches delivered
But we're not just lighting cash on fire...🔥
We're buying time. ⏳
→ An hour not mowing or cleaning = an hour to spend with my kids
→ A healthy lunch ready to go in
Just helped a client save $125,000 on their tax bill this year.
- Front loading charitable giving into a DAF
- Setting up+ maxing a solo 401k
- Maxing HSA
Feels good, man.
@NxtGenPlanning
It says a lot less about real estate as an investment vs. how horrible the average person is at saving.
Leverage does increase the return on equity, though.
@MJSANGIULIANO
When you have people who depend on your income.
For young people with no dependents, (sufficient) disability insurance is much more critical.
I'm not a "traditional" financial advisor 👇
- I don't like to golf
- I don't sell insurance
- I don't have employees
- I do proactive tax planning
- I wear jeans and a polo shirt
- I use a modern pricing model
- I don't pay to be in magazines
- I usually do meetings on Zoom
- I
Just looked over a friend's IRA statement and her "advisor" (salesman) put her in a 4.75% front load target date fund.
Why? Just because you can skim off a cut doesn't mean you should.
She's rolling her accounts out to self-manage and avoid any future swindling.
Did you know: You can pay zero tax on a $100,000+ income?
Here's how it works 👇
Taxable (non-retirement) accounts receive preferable tax rates on qualified dividends and long-term capital gains.
Let's say you retire with a million dollars in this account.
The stocks you
Today marks 2 years since I launched 7 Saturdays Financial.
Since then, I've grown the business and replaced the income from my corporate job.
Here are a few pieces of knowledge that helped me build my "company of one". 👇
@dollarsanddata
We're always balancing 3 finite resources - money, time, and health.
Be careful not to sacrifice too much time and health accumulating more money than you'll ever need.
@markcecchini
I'd be talking to a broker about an exchange fund.
Contribute your highly appreciated stock to a pool with others in the situation, receive shares of the diversified "fund" in exchange for your contribution.
No tax event.
I quit my corporate job 1 year ago.
It's been full throttle on 7 Saturdays Financial ever since.
Building a company is totally different than working for someone else.
The funny thing is...
it doesn't feel like work at all!
It feels like being unplugged from the matrix.
@azmark99921960
There are limits to what is prudent.
If a financial plan says you need $X to maintain your standard of living in retirement, is it necessary to hold onto 2X, 3X, or 5X until death?
@lady__bost
85%+ of active fund managers don't beat their index benchmarks over 15 years. These are the guys with an army of ivy league quants. Diversify, keep costs low, mind tax-efficiency, rebalance periodically, ignore the noise.
I'm taking a break from normal finance nerdery to brag on my wife.
Not only is she a world-class life partner, thoughtful listener, endless supporter, best friend, and adventure companion...
She's also a badass Mom! 🙌
Prioritizing our daughters.
@dollarsanddata
There are multiple ways to access tax-deferred money before old age.
Here are a few:
1) Rule of 55
2) roll to IRA > SEPP withdrawals
3) roll to IRA > Roth conversion ladder
4) pay 10% early w/d penalty until 59.5
These are very common strategies for early retirees.
Working on a plan to help a client:
-Retire at age 60,
-Get free healthcare until 65 thanks to ACA tax credits, and
-Save hundreds of thousands in lifetime taxes with strategic Roth conversions.
This is the stuff that puts extra pep in my step!
#taxplanning
#fintwit
Let's imagine there's a business for sale in your hometown.
Its fair market value is $100,000, including $10,000 in the bank.
What would it be worth if the owner emptied the bank account prior to sale?
This is how dividends work. There is no free lunch.
📢 Watch out for sneaky salesman tricks!
Those pitching insurance products often compare their solution to a stock index like the S&P500.
The chart on this LinkedIn post shows the annuity product beating the S&P from 1998-2016.
It's incredible!
But...
The data is
@Mike_TheMaestro
@FounderKyle
How is performing the job satisfactorily "taking advantage" of the employer?
Employers should be concerned with outputs and results, not inputs.
As you prep to file your tax return this season, don't forget -
Drug dealing and theft are considered taxable income. Be sure to report them to the IRS.
#themoreyouknow
#taxes
#muellermoney