Episodios
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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. -
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. -
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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