Key Points

1. is SWM ( AMSGPSL ) the best way to manage your money?
2. After implementing a Savings plan ( S in AMSGPSL ), determine the right G - Growth investments to fit your financial needs short-term and long-term financial plans

References

Key Concepts for Financial Growth

Your Life Plan - AMSGPSL

7 Questions to Answer to Set Your Direction in Life

1. Ask
   1. What do you want for your life?
2. Make
   1. how can you make income going forward?
3. Save
   1. how can you save to meet or exceed your goals?
4. Grow
   1. how will you grow your savings and assets to meet your goals and manage risk?
5. Protect
   1. how will you protect those important to you?
6. Spend
   1. how will you spend smart and get more from life for less?
7. Live
   1. how will you enjoy the journey not just the destination?

Grow

Understand income, taxes and wealth are important

wealth-concepts-2024-finance.yahoo.com-Are You Rich Heres The Net Worth You Need To Be Poor Middle Class And Wealthy.pdf.  link

wealth-concepts-2024-finance.yahoo.com-Are You Rich Heres The Net Worth You Need To Be Poor Middle Class And Wealthy.pdf.  file

Income is important for many reasons

• Provides funds to cover the cost of living (  housing, food, transportation, entertainment )
• Provides funds for savings, investments
• Your ability to spend and save is based on your income potential from wages, business and investment earnings and any other sources ( government, gifts )
• Are you building the skills and experience you need to generate significant income?
• How important is financial health to you and your family?
• Do you plan to retire or semi-retire in life?
• Do you get income from the government ?
• Do other people give you money?

Taxes are important for many reasons

Taxes are determined by MANY factors:

• Your marital status, your age, your income, where you live, how you earn money, what you spend, where you invest, and more
• All governments decide who pays taxes and who gets paid by the government
• All governments pass laws that favor some items and increase taxes on others ( smokers pay high taxes, 529 plans allow tax free education savings )
• Given the tax jurisdictions you are subject to, different factors affect your taxes
• Your advisor can help identify potential tax impacts of different actions and investments you take
• You should understand your options to earn, spend, invest, live and how taxes impact you

Wealth is important for many reasons

• In most cases, different types of wealth can generate funds or income or both
• asset investments can be bought and sold for net gains ( or losses ) - eg real estate, stocks, collectibles etc
• businesses can increase in value and be sold for funds
• businesses can generate income
• unless you want to work forever, creating wealth will give you future opportunities to raise funds and work less at some point

Understand Taxes and Investment Fees and how they impact your returns

US Federal Income Tax Rates

https://www.fidelity.com/learning-center/personal-finance/tax-brackets

Other taxes - Real Estate, Business Income

Investment Types that can Grow Your Capital

Real Estate -  real estate can earn income, grow in value as an asset and reduce taxes with depreciation 

ways to invest include 

buying your own property

or buying into a real-estate pool using an ETF or shares in a REIT

Alternate Investments - Art, NFTs, movies, loans, other uniquely valued assets

Create your own Assets - Art, Writing, Screen plays, private loans

Capital Markets - Equities, Options, Futures, Funds, ETFs, REITs, Limited Partnerships, Whole Life, Annuities, Bonds etc

My focus here is Equities BUT you SHOULD understand ALL the investment types on long-term returns, risks, taxes, limitations, pros and cons

Dividends vs Return of Capital vs Interest Payments differences and tax impacts

Dividends

Different security types offer different options to pay investors

Common and Preferred stock will often pay dividends 

preferred stock holders have higher priority on cash distributions of dividends then common stock holders if earnings don't cover dividends

DRIP - Dividend Reinvestment Programs - automatically grow your equity BUT you don't control timing of the purchases

Interest Payments

Debt instruments like bonds, loans will define fixed, variable or semi-variable interest rates 

borrowers are required to make the interest payments according to the terms of the debt instrument

there may be insurance payments borrowers make to insurers to protect against borrower defaults as well

Some debt instruments are revolving ( like credit card debt or line of credit debt, you are automatically renewed every period up to a limit )

Some debt instruments have call and call protection features 

Example of a callable bond:

Assume you buy a callable bond with call protection for 5 years that pays 8% per year.

Assume market interest rates drop to 4% for the same type of bond

Results

Your bond increases in market value because it pays double the market rate in interest

The borrower CAN NOT call your bond back ( repay the principal to get your bond ) during the call protection period ( 5 years here )

AFTER that, if rates are very low, the borrower is smart to call the bond repaying the principal and borrow in the market at a cheaper rate

You made 8% ( better than market rates ) for 5 years

AFTER that, you received your principal and need to reinvest in all likelihood

Return of Capital

https://www.investopedia.com/terms/r/returnofcapital.asp#:~:text=Return%20of%20capital%20distributions%20are%20taken%20from%20its%20paid%2Din,produce%20additional%20realized%20capital%20gains.

a>> Making YOUR DECISIONS on how to invest to meet YOUR GOALS AND RISKS

gdoc > _fin-market-income-trends-ex1 gdoc link

pdf > _fin-market-income-trends-ex1.pdf. file download

pdf > _fin-market-income-trends-ex1.pdf. link

They key decisions you must make to invest

1> Decide When will you need your money? ( plan when you need to use it )
2> Decide what you do if your investment goes up or down
3> Decide how to invest your money

Then follow up on your decisions on your schedule ( ideally at least every 3 months )

My Decisions Drove My Portfolio Returns this past year

1> Decide When will you need your money? ( plan when you need to use it )

Created 3 sleeves for my funds

Sleeve 1 - Money I might need in the next 24 months  ( 15% of my funds )

Sleeve 2 - Money I knew I could leave for 24 months or longer ( 70% of my funds )

Sleeve 3 - Money I knew I could leave for 5 years or longer  ( 15% of my funds )

2> Decide what you do if your investment goes up or down

Sleeve 1 - cash

• if market goes down more than 10%, move some cash into a market index ( eg SSO )
• if market goes up more than 10%, sell some market index to go to cash 

Sleeve 2 - Money I knew I could leave for 24 months or longer ( 70% of my funds )

• if stock goes up or down WITH the market, do nothing as long as dividend IS NOT at risk
• if dividend is cut more than 15%, then plan to move money out of that stock
• if stock goes down more than 15% COMPARED to the market, then plan to move money out of that stock
• if stock goes up more than 20% COMPARED to the market, consider selling only a small amount to move to a higher yielding dividend aristocrat

Sleeve 3 - Money I knew I could leave for 5 years or longer  ( 15% of my funds )

• if market goes down more than 20%, consider buying some market index 
• if market goes up more than 30%, consider selling some market index to go to cash 

3> Decide how to invest your money

Sleeve 1 - Money I might need in the next 24 months

• hold the money as cash with the ability to use IF needed ( but try not to )
• have the money available to invest IF the market drops by more than 15% 
  • that drop would likely last less than 12 months so investing funds in the market index then normally has a positive gain quickly

Sleeve 2 - Money I knew I could leave for 24 months or longer

• put the money in a high yielding investment with limited downside risk - typically a high yield, dividend aristocrat ( eg ET or other )
  • assumes the stock may drop up to 20% WITH the market and the dividend risk is real but not high ( a cut of no more than 15% in a bad market )

Sleeve 3 - Money I knew I could leave for 5 years or longer

• put the money ( 15% ) into SSO - a double leveraged fund on the S&P 500 index
• IF the market goes down 15%, my position will be down 30%
• if the market goes up 15%, my position goes up 30%
• I can afford to keep the 15% of my funds there for at least 5 years in case the market goes and wait for it to return to a profit
• I have ONLY tied up 15% of my money but using SSO, I have a 30% participation in the market in case it goes up

Returns Compared to Market Returns

Overall I implemented this portfolio in the past year

you can see the returns beat the professionally managed funds and trail the gain in the SP500

in a down market the 70% in high yield provides a 6% overall cash flow from dividends if I need to draw any funds out without losing any investment equity

The Power of Time and Yield to Grow Savings

Savings-Growth-Rates-for-1M-Didnt Max Out Your 401k This Year Why You Probably Shouldnt Worry.pdf

SWP Money Management- Grow Your Money - my course **

swp_build_your_road_to_financial_success_v3.pptx

file uploaded 

swp_build_your_road_to_financial_success_v3.pdf

Portfolio Design Concepts 

https://drive.google.com/file/d/0BxqKQGV-b4WQTnVDZUlDdE5Bbkk/view?usp=sharing

Related investment tips

m Invest Markets

m Invest Markets

Invest Tools

JEM portfolio 1 - high cash flow, moderate risk

Pros

total annual expected cash flow rate >= 8%  from dividends, options with some adjustments up or down for risk design

Cons

won't handle black swan events without potential for losses > SPX

compare to some annuities that MAY have lower returns but MAY provide life insurance and guarantees on no loss of principal or no loss in a year ( even better )

Keys

need to start with risk profile then add annual cash flow return goals against that

need to have full range of option strategies to manage option exposures effectively

need to define valid option strategies for tax advantaged accounts where shorts aren't allowed ( eg short spreads covered in cash ok now )

need trade management plans for scenarios and automated alerts

KISS portfolio model

https://drive.google.com/file/d/0BxqKQGV-b4WQMGxNSzFNc0FNajQ/view?usp=sharing

Ideas on creating a tailored portfolio to match your needs

https://seekingalpha.com/article/4359278-i-to-build-new-portfolio-today?utm_medium=email&utm_source=seeking_alpha&mail_subject=if-i-had-to-build-a-new-portfolio-today&utm_campaign=nl-etf-daily&utm_content=link-0

https://drive.google.com/file/d/1OoZUdpTZ49xrpMnildKwVOJWo9QrkO6W/view?usp=sharing

Choosing the Best Retirement Plan for You

https://www.fool.com/retirement/plans/

retirement-plans-Choosing the Best Retirement Plan for You.pdf

consider the following options:

• 401(k)
• 403(b)
• 457
• IRA
• Roth IRA
• Nondeductible IRA
• Solo 401(k)
• SEP IRA
• SIMPLE IRA
• Keogh plan

Brokerage account or IRA account for investments, trading - what are the differences on investments?

Under SEC rules, there are limits on the types of trades allowed in retirement accounts like IRAs. The SEC doesn't require the same limits on brokerage accounts. Firms like Fidelity will set their own "house" rules on how to implement those policies and restrictions. 

As an example, it may be attractive based on your income level to maximize an IRA contribution in a given year to get tax benefits you should be aware of the retirement account restrictions. Many of those restrictions have to do with margin and option trading. 

Like Brokerage accounts, retirement ( IRA ) accounts also need approvals for certain types of trades ( options, margin, index options etc )

For example - some option trade scenarios with net margin impacts for retirement accounts - what's allowed?

1>> buy an IBM Oct 155 call — that's a charge to your account and is allowed as a long position

2>> sell a "naked" IBM Oct 155 call - that's not allowed because it is a short position

3>> sell an IBM spread -  sell an IBM Oct 145 call and buy an IBM Oct 155 call for a net credit - not allowed as a short position

4>> buy an IBM spread —  buy the IBM Oct 155 call and sell an IBM Oct 165. call for a net debit – that's allowed as a long position

The problem on a "buy spread (# 4)" is how to unwind it if you need to sell the spread. You can't just sell the Oct 155 call and let the Oct 165 expire – that creates a short position on margin

More details on margin trading limits for IRA accounts are available on Fidelity's site

https://www.fidelity.com/learning-center/trading-investing/trading/limited-margin-trading-IRA

IRA or Roth IRA?

https://www.investopedia.com/ask/answers/102714/what-are-risks-associated-roth-ira.asp?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral

Know your long-term plan for income tax ( Federal and State )

https://www.irs.gov/filing/federal-income-tax-rates-and-brackets

What should be put in a Roth IRA?

https://www.fool.com/investing/2021/12/11/be-smart-about-what-you-hold-in-your-roth-ira/

Assets that would have higher taxes in a regular account should go to Roth: REITS, High yield, short-term holdings ( options, spreads, momentum trades etc )

Current long-term capital gain rate is 20 or 23.8% today

Roth Contribution Limits for 2024

Roth IRA contributions are made on an after-tax basis or through a 529 rollover starting in 2024. However, keep in mind that your eligibility to contribute to a Roth IRA is based on your income level. If you file taxes as a single person, your Modified Adjusted Gross Income (MAGI) must be under $153,000 for tax year 2023 and $161,000 for tax year 2024 to contribute to a Roth IRA, and if you're married and file jointly, your MAGI must be under $228,000 for tax year 2023 and $240,000 for tax year 2024. The maximum total annual contribution for all your IRAs combined is:

• Tax Year 2023 - $6,500 if you're under age 50 / $7,500 if you're age 50 or older.
• Tax Year 2024 - $7,000 if you're under age 50 / $8,000 if you're age 50 or older.

With the passage of SECURE 2.0 Act, effective 1/1/2024 you may also be eligible to contribute to your Roth IRA using 529 rollover assets

Roth IRA and Backdoor contributions - pros and cons.  link

roth-ira-backdoor-2024-rebalance360.com-Backdoor Roth IRAs Are Promising and Perilous.pdf

Roth Backdoor IRA rollover from Traditional IRA

https://www.investopedia.com/ask/answers/102714/what-are-risks-associated-roth-ira.asp?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral

In 2022, Backdoor IRA option may be eliminated

There's a tricky but perfectly legal way for high income-earners to contribute to a Roth IRA even if their income exceeds the limits. This is called a backdoor Roth IRA and it entails contributing to a traditional IRA and then immediately rolling over the money into a Roth account.

Needless to say, this must be done strictly by the IRS rules.

Maximize Growth with Roth IRA

Roth IRA conversions from Traditional IRA

2021 tax law still allows Roth conversions from Traditional IRA after the RMD is done.

Consider large conversion and paying taxes out of normal funds to maximize total moved to Roth IRA

Tip>> consider a large conversion in case those are restricted in the future

Tip>> pay the net taxes owed on the Roth conversion from other funds maximizing the Roth conversion amount

Consider 401K rollovers to Traditional IRA to setup a Roth conversion

https://www.investopedia.com/articles/personal-finance/071715/8-reasons-roll-over-your-401k-ira.asp#4-the-roth-option

401K rollovers to Traditional IRA can be done after any RMD is taken for that year

No tax impacts from the 401K rollover

Year end smart financial planning and tax moves

https://finance.yahoo.com/news/7-end-wealth-moves-094206315.html

tax-planning-finance.yahoo-7 Year-End Wealth Moves

1. Harvest Your Tax Losses

As of early November, the S&P 500 is up 24% and the Dow Jones is up 18% for the year. Unfortunately, some stocks and mutual funds are still posting a loss for the year. Therefore, it is likely that some items in your portfolio show up in red when you check the “unrealized gains and losses” column in your brokerage statement.

You could still make lemonade out of these lemons by harvesting your losses for tax purposes. It is worth remembering that the IRS individual deduction for capital losses is limited to $3,000 for 2021. In other words, if you don't offset your losers with your winners, you may end up with a tax loss carryforward that could only be used in future years. This is not an ideal scenario.

You can also offset your losses against your gains. For example, suppose you sell some losers and accumulate $10,000 in losses. You could then also sell some winners. Then, if the gains in your winners add up to $10,000, you would have offset your gains with your losses, and you will not owe capital gain taxes on that combined trade!

Bear in mind that wealth strategy is not all about taxes. Tax loss harvesting could be a great opportunity to help you rebalance your portfolio with a reduced tax impact. Beware though of the wash sale rule: If you buy back your sold positions within 30 days, you will have negated the benefit.

2. Review Your Investment Planning

Tax-loss harvesting can be used effectively for short-term advantage. However, it also provides the opportunity to focus on more fundamental issues. In the first place, why did you buy these securities that you just sold? At one time, they probably played an important role in your investment strategy. And now with the cash from the sale, it’s important to be mindful when reinvesting.

You may be tempted to wait for a while to see how the market evolves. We may have been spoiled into complacency with the bull run that we have experienced since the Great Recession. However, we should not forget that volatility does happen.

It's almost impossible to predict accurately when the next bear market will start. And after more than 18 months of strong gains, it is time to reassess if you and your portfolio are well-positioned for a potential downturn.

You will want to ensure that your portfolio risk is aligned with your goals, and that your asset allocation is aligned with your risk target. Reach out to your wealth strategist to review.

3. Review your Retirement Planning

There is still time to top out your retirement account! In 2021, you can contribute up to $19,500 from your salary, including employer match, to a standard defined contribution plan such as 401(k), TSP, 403(b) or 457, subject to the terms and conditions of your plan. And if you happen to be 50 years old or older, you can contribute an additional $6,500 for this year.

If you have undercontributed to your plan, there may still be time. You have until Dec. 31 to boost your retirement planning by topping off your 2021 contributions. This will also have the benefit of reducing your 2021 taxable income, if you contribute pretax money to a traditional plan.

As an alternative, you could contribute to a Roth account if that plan option is offered by your employer.

Many employers offer a Roth in their employee retirement plans. If yours does not, schedule a chat with your HR department!

Many people think of the Roth account as tax-free. However, you should bear in mind that although Roth accounts are popularly designated as "tax-free" they are merely taxed differently, since you would be contributing after-tax funds. Double check with a Certified Financial Planner professional to determine whether choosing to defer some of your salary on a pretax basis or post-tax to a Roth account better fits your situation.

4. Roth Conversions

The current tax environment is especially favorable to Roth conversions. With the Tax Cuts and Jobs Act set to sunset, income tax rates will be going back up in 2026. Therefore, Roth conversions could cost less in current taxes until then. Of course, Congress could vote for tax rates to go up before the end of the year. There is even the possibility that Congress will remove the ability to do a Roth a conversion after 2021.

To do a Roth conversion, you withdraw money from a traditional tax-deferred retirement account, pay income taxes on the distribution, and move the assets into a Roth account. Then the assets can grow and be distributed tax-free, provided certain other requirements are met. If you think that your tax bracket will be higher in the future than it is now, you could benefit from a Roth conversion.

5. Choose Your Health Plan

With health insurance re-enrollment season, the annual ritual of choosing a health insurance plan is with us. With health insurance getting ever more expensive, this could be one of your more important short-term financial decisions.

Your first decision is to decide whether to subscribe to a high-deductible option or stick with a traditional plan with a “low” deductible. The high-deductible option will have a cheaper premium. However, if you have a lot of health issues, it may end up costing more. High-deductible plans allow access to health savings accounts (HSAs).

The HSA is a special instrument. With it, you can contribute money before taxes to pay for qualified health care expenses tax-free. Unlike with flexible spending accounts (FSAs), balances in HSAs can be carried forward to future years. They can also be invested to allow for potential earnings growth. This last feature is exciting to wealth managers, because in the right situation, clients could end up saving a lot of money.

If you choose a high-deductible plan, you should plan to fund your HSA to the maximum. Many employers will contribute as well to encourage their employees to pick that option. If you choose a low-deductible plan instead, make sure to fund your flexible spending account. FSAs are used to pay for medical expenses on a pretax basis. The unspent amount cannot be rolled over to future years, unlike HSAs.

6. Plan Your RMDs

Don't forget to take your required minimum distributions (RMDs) if you are 72 or older. At 50%, the penalty for not taking your RMD is steep. You must withdraw your first minimum distribution by April 1 of the year following the year in which you turn 72, and then by Dec. 31 for each year after.

Perhaps you don’t need the RMD? Then you may want to redirect the money to another cause. For example, you could fund a grandchild’s 529 tax-advantaged educational account. Contributions are post-tax, but growth and distributions are tax-free so long as they are used to pay for education.

You could also plan for a qualified charitable distribution from the IRA. That distribution must go directly from the IRA to a charity. Unlike a normal RMD, it is excluded from taxable income and may count toward your RMD under certain conditions.

7. Plan Your Charitable Donations

Charitable donations can also help reduce taxable income and provide financial planning benefits. However, the Tax Cut and Jobs Act of 2017 (TCJA) has made it more complicated. A significant result of the TCJA is that standard deductions for 2021 are $12,550 for individuals and $25,100 for joint filers. In practice, it means that the first $12,550 or $25,100 of deductible items have no tax benefits.

For example, if a married couple filing jointly (MFJ) pays $8,000 in real estate taxes and $5,000 in state income taxes for a total of $13,000 of deductions, they are better off taking the standard $25,100 deduction. The first $12,100 that they donate to charity would not yield a tax benefit. One way to get around this new situation is to bundle your donations in a given year and not spread them over many years. Or, within certain limits, to give directly from an IRA.

As an example, if you plan to give in 2021 as well as 2022, bundling your donations and giving just in 2021 could result in a deduction and the accompanying reduced tax. In this way, you are more likely to exceed the standard deduction limit.

If your thinking wheels are turning after reading this article, check in with your wealth strategist or financial planner: There may be other techniques that you could or should do before the end of the year!

Benefit from company 401K retirement plans

https://www.investopedia.com/articles/retirement/05/introroth401k.asp

The Roth 401(k) account made its debut in the retirement investment community in 2006. Created by a provision of the Economic Growth and Tax Relief Reconciliation Act of 2001 and modeled after the Roth IRA, the Roth 401(k) is an employer-sponsored investment savings account that allows employees to save for retirement with after-tax money.

• A Roth 401(k) is an employer-sponsored savings plan that gives employees the option of investing after-tax dollars for retirement.
• Contribution limits for 2021 are $19,500 ($20,500 for 2022) for people under age 50, with an allowed $6,500 additional catch-up contribution per year allowed each for those age 50 and above.
• Although you pay taxes on your contributions, withdrawals that you take after age 59½ will be tax-free if the account has been funded for at least five years.

 the Roth 401(k) generates current revenue in the form of tax dollars

The money you earn today is taxed today. When you put this after-tax money into your Roth 401(k), withdrawals that you take after you reach age 59½ will be tax-free if the account has been funded for at least five years

2022 401K limit = 19600   — over 50  limit = 27000

example deduction amount for a deduction rate for given a salary

var salary = 160000;
var rate = .12;

console.log(` 401k total contribution based on rate ${rate} = ${ salary * ( rate ) }`);
VM20451:1 401k total contribution based on rate 0.12 = 19200

rate = .03;
0.03
console.log(` 401k total contribution based on rate ${rate} = ${ salary * ( rate ) }`);
VM20631:1 401k total contribution based on rate 0.03 = 4800

Impact of higher future tax rates on Roth decisions

While it may seem intuitive that most investors will experience a decrease in their tax rate upon retirement, retirees often have fewer tax deductions, and there's also the potential impact of future legislation, which could result in higher tax rates. Considering the uncertainty of tax rates in the future, young workers who currently have lower income tax rates may want to consider investing in after-tax programs like the Roth 401(k), essentially locking in the lower tax rate

Roth 401K rules

1. Unlike Roth IRAs, Roth 401(k) participants are subject to required minimum distributions at age 72, which forces investors to take distributions even if they don't need or want them.3 
2. The distribution requirement can be avoided by rolling over to a Roth IRA, but doing so is an administrative hassle, and legislators may change the rules at any time to forbid such transfers
3. Any matching contributions your employer makes to your Roth 401(k) must be deposited into a traditional 401(k) account

Roth 401K rollover rules on leaving a job

https://www.investopedia.com/articles/retirement/09/roth-401k-rollover.asp

• A Roth 401(k) can be rolled over to a new or existing Roth IRA or Roth 401(k).
• As a rule, a transfer to a Roth IRA is most desirable, since it facilitates a wider range of investment options.
• It is best to move the money to an existing Roth IRA account, if you have one, because of the five-year rule governing qualified distributions.2
• If you plan to withdraw the transferred funds soon, moving them to another Roth 401(k) may provide favorable tax treatment.
• Roth 401K investment options more limited than Roth IRA

Article - Buy, Borrow, Die to grow Wealth long term

https://finance.yahoo.com/news/buy-borrow-die-rich-avoid-140004536.html

wealth-building-2023-finance.yahoo.com-Buy Borrow Die This is How the Rich Avoid Taxes.pdf link

wealth-building-2023-finance.yahoo.com-Buy Borrow Die This is How the Rich Avoid Taxes.pdf file

Good ideas here but ignores the risks in general

highly dependent on current tax laws

need to focus on both trust laws and state taxes on inheritance and estates ( not covered here )

dependent on long-term rising asset values in a country with low crime and stable, effective political and governance institutions

fluctuating asset values and high leverage are a bad combination if you don't have long-term stable income stream to cover leverage risks

getting started is not easy ( building your first million in net worth is always hard )

tax-free-income-strategies-- Proven Methods.pdf   link

1. a health savings account
   1. check the limitations on both contributions and valid expenses as they change
2. Contribute to a Roth IRA or Roth 401K 
   1. depending on your income tax level Roth accounts MAY be better long-term for higher returns
   2. Roth accounts do not have RMDs 
   3. If you can't directly contribute to a Roth because of income level, Look at back-door Roth conversions from an IRA
3. Municipal bonds and funds
   1. Is the rate high enough compared to other investments?
   2. how long is the duration of the bonds now?
   3. are the bonds callable if rates drop?
4. Social Security payments
   1. based on your income level up to 85% of Social Security Income may be taxable as regular income
5. Cash value life insurance
   1. If you are married, have children, have maxed out your contributions to your existing retirement account, or
      are in an upper tax bracket, cash-value life insurance might be a great way to achieve the financial freedom
      we all want.
6. Inheritances - where and how much tax do you pay?
   1. States with inheritance or estate taxes /state-estate-tax-inheritance-tax-2023/
   2. The federal estate tax generally applies to assets over $13.61 million in 2024, and the estate tax rate ranges from 18% to 40%. Some states also have estate taxes, and they might have much lower exemption thresholds than the IRS. Assets that spouses inherit generally aren't subject to estate tax.

Equality or Equity - Which is Fair?

Equality - We both have relatively equal opportunity under the law and in the markeplace to be successful based on our decisions, our skills and our effort

Equity - You work twice as much as me, produce twice the value I did and took twice the risk I did but we are paid the same

The government is no different than ordinary family. I gave my brother a car and he didn't even say thank you because it was my old car. He figures that since I make more than him I'm rich and should have given him a new car. This plays out the same with all my family. I tell them I work for a living and have bills, but it falls on deaf ears because my earnings are $150K per year and the make less than $50K. Since they pay no income tax they figure I don't either etc.... You know the rest. I should be paying my fair share of my saved assets to them so they can live like me. For some reason we should be equals even though I worked my tail off all my life and face 10x the pressure they do. None of that matters. I have saved more and make more and the deserve some of it. Equality will get more and more play going forward and some kind of communistic revolution is coming in the next 30 yrs. Just wait until these youngster control government. Taxes will be 90% and everyone will be equals.

>>

Yep. No matter how much they pay, it is never enough. Especially in the minds of people who've been brainwashed into believing that the "rich" are bad people that made their money at the expense of the poor and then avoided paying taxes.

>> asset value risk

This strategy worked well from 1980 to 2021, when declining interest rates virtually assured increased asset prices. Maybe not so today.

I think the idea of not selling appreciated liquid assets, solely to avoid taxes, is silly. I sell when I think appropriate, and invest elsewhere. Anyone who held Meta the last 24 months can attest to the risk

How to get started on building wealth for the average person - it's a choice

I've got over a million dollars in real estate debt on which I'm paying about 3% interest, I have tenants paying my mortgages with a profit left over for me. I have a bunch of dividend paying stocks which earn nearly 10% paid monthly. When I die my heirs get all the real estate growth (hundreds of thousands) with a step-up. I'm a high school drop out. I used to live on rice and beans when I started. It's called get an education, live below your means, start small and keep building.

<< worked hard, saved hard, manages his good investments actively, 

States with inheritance and estate taxes

https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/state-and-local-backgrounders/estate-and-inheritance-taxes

Good set of investment critieria for Equities

invest-valuation-criterial-good-seekingalpha.com-5 Relatively Safe And Cheap Dividend Stocks To Invest In - July 2023.pdf file

invest-valuation-criterial-good-seekingalpha.com-5 Relatively Safe And Cheap Dividend Stocks To Invest In - July 2023.pdf. link

July 2023 Search List Results for the Criteria

invest-valuation-criterial-good-seekingalpha.com-5 Relatively Safe And Cheap Dividend Stocks To Invest In - July 2023.xlsx file

invest-valuation-criterial-good-seekingalpha.com-5 Relatively Safe And Cheap Dividend Stocks To Invest In - July 2023.xlsx link

Generational Wealth > Create Your Strategy to Build It

https://www.gobankingrates.com/money/wealth/key-signs-your-investments-will-build-generational-wealth/

6 Key Signs Your Investments Will Build Generational Wealth.pdf file

6 Key Signs Your Investments Will Build Generational Wealth.pdf link

Key Wealth Management Tips

1. Reinvest your dividends automatically
2. Own an SP500 Index Fund
3. Specify Your Heirs in a Will and Educate them on Wealth Management
4. Own Income Generating Assets ( Stocks, Real Estate, more )
5. Protect Assets for Heirs in Trusts that manage Tax Burdens
6. Avoid Investment Fads ( limiting risks )

Market Value Risks of Investments Example for different investment types

Compare the 5 year total return for the 3 options shown:

1. an individually managed stock portfolio impacted by both market factors AND a loss due to a job hire with investment rules
2. the S&P 500 index 
3. a good, high dividend yield stock with moderate risk 

Investments of any type have risks - here's a portfolio performance for 5 years showing major impacts on market value

An individually managed stock portfolio return for 5 years with key market loss events shown

The total loss over 5 years was -9.3 % 

IF the job hire had not happened, the investment rules loss would be eliminated, net loss would have been only  -1%

The S&P 500 Index for the last 5 years 

https://www.financecharts.com/etfs/SPY/performance/total-return

The total return for SPDR S&P 500 ETF Trust (SPY) stock is 7.62% over the past 12 months. So far it's up 15.32% this year. The 5-year total return is 66.34%, meaning $100 invested in SPY stock 5 years ago would be worth $166.34 today. Total return includes price appreciation plus reinvesting any dividends paid out.

SP500 compared to growth stocks and ET over 5 years

Hi Dividend Stocks Report - 2024

https://seekingalpha.com/mp/1091-big-dividends-plus/articles/5974775-top-10-big-yields-cefs-bdcs-reits-mlps-update

JDN - Jim Dividend Nbr. =  the dividend rate + 1/3 time the dividend growth rate for 5 years 

https://docs.google.com/spreadsheets/d/1MLieUZBTKd1xquL1b4DwchLF3ZLR2pfMwilXUggeP4Q/edit#gid=12575452

Market Economic Factors - Corporate EPS, Rates, Money Supply, Trade Balances, Credit Risks

https://seekingalpha.com/article/4663858-weekly-indicators-profits-make-3-year-low-as-stocks-hit-all-time-high-one-is-wrong

_economic-indicators-seekingalpha.com-Weekly Indicators Profits Make 3-Year Low As Stocks Hit All-Time High One Is Wrong.pdf.  link

_economic-indicators-seekingalpha.com-Weekly Indicators Profits Make 3-Year Low As Stocks Hit All-Time High One Is Wrong.pdf file

Energy Transfer ( ET )

Hi Dividend Common Stock with limited payout risks and small growth potential from 2024 onward

Energy Transfer: Top 5 Big-Yield MLPs. 240115

ET is an MLP not a Stock for tax purposes

This MLP structure creates a few critically important nuances for investors to be aware of. For starters, you won’t receive the typical 1099 at tax time, instead you’ll receive a K-1 statement. And as the company explains:

“Energy Transfer will not pay any federal income tax. This allows for a higher potential cash flow payout to unitholders. Instead, each unitholder will be required to report on his or her income tax return his or her share of our income, gains, losses, and deductions without regard to whether corresponding cash distributions are received. As a result, a unitholder’s share of taxable income, and possibly the income tax payable by the unithholder with respect to that income, may exceed the cash actually distributed to the unitholder. Since MLPs generally pay more cash distributions than the amount of taxable income allocated, the tax basis of the unitholder is decreased by the difference between total cash received and taxable income reported. Cash distributions will become taxable if the unitholders’s cost basis is reduced to zero.”

MLPs less valuable in Roth accounts because they are already tax free earnings

MLPs and Individual Retirement Accounts:

Technically, you can own an MLP in your retirement account (e.g. Traditional or Roth IRAs and 401Ks), but according to the Energy Infrastructure Council (“EIC”) there are some special considerations you need to keep in mind:

“First, remember that one reason many people buy MLPs is for the tax advantages — the tax-deferred distribution and the ability to offset taxable income passed through from the MLP with depreciation and other deductions. In a retirement account, however, the income is already tax-deferred, so the tax benefits of an MLP are, in a sense, ‘wasted.’”

And very importantly, holding an MLP in a retirement account can end up resulting in you owing income tax, through the concept of “Unrelated Business Tax income” (“UBTI”). According to the EIC:

“As a partner in the MLP, the IRA or other account is considered to be “earning” its share of the MLP’s business income. The MLP’s business is not related to the retirement account’s tax-exempt purpose; therefore the IRA’s share of the MLP’s income is treated as UBTI and is taxed accordingly.”

The bottom line here is that there are important nuances to holding MLPs in a retirement account, and depending on your own personal situation, it may or may not make sense to do so. Also worth mentioning, some brokerages won't even allow you to own an MLP in a tax-advantaged retirement account (e.g. IRA, 401K).

Tax risks of C-corp conversion where company is sold and gain taxed

And according to a November 2023 note from Morningstar Strategist, Stephen Ellis:

“Energy Transfer seems to be considering a C-Corporation conversion, or C-Corp, alternative more seriously than it has in the past as an alternative to buybacks. Co-CEO Thomas Long said he thinks the C-Corp currency makes a lot of sense, and the company is spending considerable time evaluating it. This shift seems to suggest that Energy Transfer management may have thought the stock would rerate higher with the increased yield (currently 9%), but in the absence of that, it may consider a C-Corp conversion to address the long-standing EBITDA multiple discount versus peers.”

Energy Transfer Total Return for the Last 5 years

https://www.financecharts.com/stocks/ET/performance/total-return

The total return for Energy Transfer LP (ET) stock is 20.78% over the past 12 months. So far it's up 17.69% this year. The 5-year total return is 13.65%, meaning $100 invested in ET stock 5 years ago would be worth $113.65 today. Total return includes price appreciation plus reinvesting any dividends paid out.

see more on Energy Transfer analysis here: 

m Fundamental Analysis#EnergyTransfer-apipelinecompanyinUSandEuropeforoil%2CLPG

see more on Energy Transfer operating risks on pipelines and profitability

see more on Energy Transfer operating risks on pipelines and profitability

et-230918-seekingalpha.com-Energy Transfer An Old Adversary Threatens A Material Future Change.pdf link

et-230918-seekingalpha.com-Energy Transfer An Old Adversary Threatens A Material Future Change.pdf

ET management presentation - 2024 - see strategic goals

https://www.energytransfer.com/wp-content/uploads/2024/01/ET-January-2024-Investor-Presentation_Final-1.pdf

ET compared to Top Tech Stocks - 2 year view

ET compared to Top Tech Stocks - 5 year view

ARCC ( a BDC ) Total Return for the Last 5 years

https://www.financecharts.com/stocks/ARCC/performance/total-return

had concerns in 2023 when they approved a policy to issue 25% more common but that hasn't impacted dividends or earnings so far 

For more on ARCC

Ares Capital’s NAV, Valuation, And Dividend Versus 14 BDC Peers – Part 1 (Post Q2 2023 Earnings) url

arcc-230921-seekingalpha.com-Ares Capitals NAV Valuation And Dividend Versus 14 BDC Peers - Part 1 Includes Recommendations As Of .pdf. link

arcc-230921-seekingalpha.com-Ares Capitals NAV Valuation And Dividend Versus 14 BDC Peers - Part 1 Includes Recommendations As Of .pdf file

Ares Capital's NAV, Valuation, And Dividend Vs. 14 BDC Peers - Part 2 (Includes Q4 2023 + Q1 2024 Dividend Projection). url

arcc-230922-Ares Capital's NAV, Valuation, And Dividend Vs. 14 BDC Peers - Part 2 (Includes Q4 2023 + Q1 2024 Dividend Projection). link

arcc-230922-Ares Capital's NAV, Valuation, And Dividend Vs. 14 BDC Peers - Part 2 Includes Q4 2023 + Q1 2024 Dividend Projection.pdf file

Jim100-ModerateRiskReturn1Portfolio

Total Return Calculator

https://www.financecharts.com/stocks/ET/performance/total-return

SmithDiv-A 9%-YieldingPortfolioWithLow-RiskDividendsForSustainablePassiveIncome

Value insurance companies using the combined ratio

The company has an excellent risk management history, which you can observe by its combined ratio. This essential insurance metric is the sum of claims costs (how much an insurance company pays out on a policy) and expenses (like employee compensation or fixed overhead) divided by the premiums the company collects.

Over the past two decades, Chubb's average combined ratio was 90.8%, well below the industry average of 100%. This matters because it translates into free cash flow, which the company uses to pay dividends, buy back shares, or invest in things like bonds and stocks. Chubb's solid growth is why it has raised its dividend payout for 31 consecutive years.

Protect

Who do you help?

Who do you need to protect? when? for how long?

Your Health Insurance Options

Medicare - Medigap or Advantage Programs

Medicare cheat sheet - read at age 64

https://www.dummies.com/personal-finance/insurance/health-insurance/medicare-for-dummies-cheat-sheet/

medicare-enrollment-options-dummies-Medicare For Dummies Cheat Sheet.pdf

medicare part A and part B coverages

https://www.dummies.com/personal-finance/insurance/health-insurance/medicare-health-insurance-options-for-people-over-65/

medicare-options-dummies-Medicare Health Insurance Options for People over 65.pdf

Medigap options

https://www.fidelity.com/insights/retirement/medigap-medicare-insurance

medigap-fidelity.com-Medigap 101 What you need to know.pdf

Medigap or Advantage - which is best for you?

https://www.investopedia.com/articles/personal-finance/071014/medigap-vs-medicare-advantage-which-better.asp

_investopedia.com-Medicare Advantage vs Medigap.pdf

Disenroll at Social Security from Medicare Part B once you have private insurance, re-enroll later

https://www.dummies.com/personal-finance/insurance/health-insurance/how-to-disenroll-from-medicare-part-b/

https://www.aarp.org/health/medicare-insurance/info-05-2008/ask_ms__medicare_5.html

Your Social Security Plans

2022 Social Security Changes

https://www.investopedia.com/retirement/social-security-changes

• Social Security recipients will get a 5.9% raise for 2022, compared with the 1.3% hike that beneficiaries received in 2021.1
• Maximum earnings subject to the Social Security tax also increased—from $142,800 a year to $147,000.
• Other changes for 2022 include an increase in how much money working Social Security recipients can earn before their benefits are reduced and a slight rise in disability benefits.
• Social Security tax rates remain the same for 2022: 6.2% on employees and 12.4% on the self-employed.
• It now takes $1,510 to earn a single Social Security credit, up just $40 from 2021.2

Maximize Social Security for your Spouse

Option for Widowed Spouse to elect spousal benefits

https://www.marketwatch.com/story/you-can-still-claim-social-security-spousal-benefits-even-if-your-spouse-is-gone-2020-10-08?mod=newsviewer_click

Retirement Delaying Social Security can protect a surviving spouse.pdf

Widow can elect to replace their benefits with deceased spouse benefits

Options for Spousal benefits 

https://www.marketwatch.com/story/when-it-comes-to-social-security-these-strategies-can-pay-off-for-married-couples-2020-09-29?mod=article_inline

You can still claim Social Security spousal benefits even if your spouse is gone

Spend

Manage your credit score

Most of us need to borrow money for short-term credit, long-term mortgages or car loans etc.

If you establish and manage your credit history well, you will be able to borrow money from lenders at good rates.

If you don't manage your credit history well, borrowing money will be difficult.

Info from Experian on how your credit score is determined and tips to manage

https://www.experian.com/blogs/ask-experian/infographic-what-are-the-different-scoring-ranges/?pc=crm_exp_0&cc=emm_f_m_act_86059_onbeftt_20181025_x_102

Mortgage Types and Factors to consider

https://fhmtg.com/2019/08/23/what-is-a-non-qualified-mortgage/

mortgage-fhmtg-What is a Non-Qualified Mortgage.pdf

A qualified mortgage (QM-loan) is a home loan that meets certain standards set forth by the Consumer Protection Act and the Dodd-Frank Wall Street Reform Act, signed by President Obama following the 2008 housing crisis.

The requirements for a qualified mortgage include:

• Verification of income is required, otherwise known as the “ability-to-repay” rule
• Debt ratio cannot exceed 43%
• Points and fees should not exceed 3% of the loan amount
• The loan cannot have risky features such as negative amortization or interest-only
• The loan term cannot exceed 30 years

These guidelines were adopted by the Consumer Financial Protection Bureau (CFPB) to help prevent poor lending practices that sparked the previous financial crisis.

A Non-Qualified Mortgage (Non-QM) is a loan that doesn’t meet the standards of a qualified mortgage and uses non-traditional methods of income verification to help a borrower get approved for a home loan. 

Manage automatic credit payments better

With credit cards and online payment services, many subscription programs will automatically bill you on a periodic basis.

For each credit source, you should know how to review, manage and cancel those automatic payments.

Many times, vendors will say you cancel at any time BUT the process they have to cancel automatic subscriptions often does not work well at all leaving you hung for more payments after you want to cancel.

The credit services all have ways you can manage cancelling the automatic payments on their end if the vendor side doesn't work

For Paypal - log in to your PayPal account, go to Profile, and click My money. Update your agreement in the "My pre-approved payments" section.

Live - What's important today for you?  tomorrow for all ?

Focus on Health, Diet, Nutrition, Exercise

See Jim Chi or "You Chi" program for age appropriate body weight exercises

high intensity (HIIT) cardio.

In terms of the time you're taking to work out, HIIT has a clear advantage, as you'll be burning a higher number of calories in a shorter window than you would be during a lower-intensity session. However, this also requires a higher skill level, explains Beaugrand. "If you're doing sprints, you need to be at least good enough to be able to do that in all-out intensity," he says, "whereas in lower or moderate intensity, we don't need a lot of skill for that, we can do something like walking, riding our bike, going out for a hike."

 "If we're doing a significant amount of steady-state cardio, we're creating this adaptation response where our body wants to be good at cardio," says Beaugrand. "Being good at cardio and being a good bodybuilder don't necessarily go hand in hand."

https://www.menshealth.com/fitness/a37465121/physique-coach-weight-loss-advice-shredded-abs-paul-revelia/

Diet

 Food, he says, is about macro nutrients; once you begin to think of it that way, you’ll have a much better understanding of how to eat to achieve your goals. It gives you the flexibility to create a diet that works for you. And you’ll be more likely to lose weight and keept it off. “There are no bad foods,” he says, but some will fit your goals better than others.

 Make a routine that you can stick to, and know what you’re going to be doing before you do it.

Where to Live ?  US

https://money.usnews.com/money/retirement/baby-boomers/slideshows/the-best-beach-towns-to-retire-in-the-us

https://finance.yahoo.com/news/20-cheapest-beach-towns-retire-203120775.html

https://moneywise.com/retirement/affordable-beach-towns

Where to Live ? Overseas

https://www.yahoo.com/lifestyle/considering-move-abroad-2024-best-100025391.html

SWP Common Sense Financial Planning

1> the basic investment course for those who don't have time or interest 

2> the "JimK" program for your kids investment future

3> Build Your Life Plan

4> Life Tracker Keeps Your Life Plan Working

Finance Life Tracker Process

Initial Consultation

is this right for you?

free assessment

Build your plan

fee based based on plan scope

data gathering & validation

goal setting

resources

risk profile

validation

create plan

long-term kpi

short-term kpi

plan delivery validation

adjustments

plan implementation

Periodic Plan Checkins

no charge

based on kpis at standard times

family bonus plan - semi-annual plan update reviews

Plan Review & Updates

fee based based on plan scope

as needed

CFP 2019 Approved Financial Planning Process

https://blog.emoneyadvisor.com/industry-news/the-7-step-financial-planning-process-how-advisors-can-adapt-for-compliance/

The seven steps include:

1. Understanding the Client’s Personal and Financial Circumstances
2. Identifying and Selecting Goals
3. Analyzing the Client’s Current Course of Action and Potential Alternative Courses of Action
4. Developing the Financial Planning Recommendation(s)
5. Presenting the Financial Planning Recommendation(s)
6. Implementing the Financial Planning Recommendation(s)
7. Monitoring Progress and Updating

The CFP Board requires compliance with these standards under three distinct circumstances. The first is when you agree to provide, or provide financial planning, under a written client engagement agreement.

The second situation is when, to act in the Client’s best interests, you agree to provide, or do provide financial advice based on your client’s personal or financial circumstances. Even if you’re not providing formal financial planning, your financial advice might be necessary to honor your fiduciary responsibilities.

In the third case, you’re beholden to the new Codes and Standards when your client reasonably believes you will provide, or have provided financial planning. Anybody who markets themselves as a CFP® professional will be responsible for adhering to the new Code and Standards.

Holistic approach to planning

One of the most significant changes in the CFP Board’s financial planning process outlines the way in which advisors must take a holistic approach to advice. There are changes to all steps in the new standards to incorporate consideration of all of a client’s financial goals, even if an advisor doesn’t handle every aspect of their financial lives.

Planning Ideas, Articles

What retired people wish they had done earlier

https://www.yahoo.com/news/5-retirees-reveal-wish-d-100700165.html

retirement-plan-regrets-yahoo.com-Retirees Confess What They Wish Theyd Done With Their Money.pdf

10 Steps to Financial Security Before Age 30

https://www.investopedia.com/articles/younginvestors/08/generation-y.asp?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral

10 Steps to Financial Security Before Age 30 pdf

1. Track Your Spending

A free budgeting app like Mint can help you do this.

2. Live Within Your Means

Keep your standard of living below what your earnings can accommodate

3. Don't Borrow to Finance a Lifestyle

Borrowed money should be used when your gain will outrun your borrowing costs. This might mean investing in yourself—for your education, to start a business, or to buy a house.

4. Set Short-Term Goals

 set a series of small short-term goals that are both measurable and precise—for example, paying off credit card debt within a year or contributing to a retirement plan with a set contribution each month

5. Become Financially Literate

Taking the time and effort to become knowledgeable in the areas of personal finance and investing will pay off throughout your life. Making sound financial and investment decisions is important for achieving your financial goals.

6. Save What You Can for Retirement

Try setting up automatic monthly contributions to a retirement plan, such as an employer-sponsored 401(k) if you have access to one, or an IRA if you don't. You can increase your contributions when your income rises or when you've achieved more of your short-term goals.

7. Don't Leave Money on the Table

If you work for a company that offers a 401(k), make sure to contribute at least up to the maximum of what your employer will match, otherwise you are leaving money on the table. In addition, you can deduct your contributions in the year you make them, which lowers your taxable income for the year.1

8. Take Calculated Risks

Examples of calculated risks include:

• Moving to a new city with more job opportunities
• Going back to school for additional training
• Taking a new job at a different company for less pay but more upside potential
• Investing in high risk/high return stocks

9. Invest in Yourself

Look at yourself as a financial asset. Investing in yourself will pay off in the future. Your skills, knowledge, and experience are the biggest assets you have. Increase your value by continually upgrading your skills and knowledge and by making smart career choices.

10. Find the Right Balance

Striking a proper balance between your life today and the future is also important. Financially, we can't live as if today is our last day. We have to decide between what we spend today versus what we spend in the future. For example, set a short-term goal to save for a trip to a destination you've always wanted to see instead of using a credit card to finance it. Finding the correct balance is an important step toward achieving financial security. 

11. Generally avoid credit card loans

You should ALWAYS pay off credit card debt monthly to avoid the finance charges that can legally run up to 30%

KEY TAKEAWAYS

1. Knowing how much you spend can keep spending in check.
2. Live within your means, don’t use credit to fund a lifestyle, and set short-term achievable financial goals.
3. Become financially literate and save what you can for retirement.
4. Take calculated risks, such as moving to a city with more job opportunities or taking on a new job that pays less but has more upside potential.
5. Invest in yourself by continually upgrading your skills and knowledge.
6. Strike a balance—working toward financial security doesn’t mean you need to deprive yourself.

Potential Value Opportunities

Building Better People

Tips on managing life ****

Master Life.pdf

Master Life gdoc

Help Kids Become the Best version of themselves

expectations and consequences are the 2 biggest words to understand ***

Dad: Set the right expectations, Provide the right support, Live the right example

7 key skills for kids ****

https://www.cnbc.com/2022/04/16/these-skills-separate-successful-kids-from-those-who-struggle-says-psychologist-parenting-expert.html

7 skills for kids-cnbc.com-A psychologist says these 7 skills separate successful kids from the ones who struggleand how parents.pdf

7 Key Attitudes for Successful People

https://www.cnbc.com/2022/04/16/these-skills-separate-successful-kids-from-those-who-struggle-says-psychologist-parenting-expert.html

1. Self-confidence
2. Empathy
3. Self-control
4. Integrity
5. Curiosity
6. Perseverance
7. Optimism

Jim Mason

boys2-men-medium.com-10 Habits That Change Boys Into Men.pdf

Better Communications Comes from Better Communications Skills

1. Focus as a group
2. Bring the right attitude to the conversation
3. Understand the audience roles, motivations, credibility (and gaps) and temperature they bring to the meeting
4. Be prepared (not rehearsed) >> find your voice, passion on: the roles, issues, impacts, solutions, progress, gaps and challenges, opportunities, success keys
5. Follow the IBM LSP model to id problems, impact, solutions and agree on a plan
   1. introduction and rapport
   2. IBS - initial benefit statement  - why are we here now?
   3. Qualifications - get agreement on >> what are your challenges now? solutions? results and history?  road forward?
   4. FBR - get agreement on >> Feature, Benefit, Responses on a solution strategy
   5. Trial close to qualify the close process and find objections and decision authority
   6. Clarify and Manage Objections >> validate agreements
   7. Agree on the Action Plan
6. Follow up on any prior outstanding items and actions
7. Survey the audience for better understanding
8. Listen to understand, not respond
9. Ask for clarity and concrete examples when needed
10. Get agreement on the problem, impacts and value before the solution
11. Ask where are we now? then understand then respond
12. Don't give the answers
13. Let the audience find the right answers by asking the right questions
14. Pause for impact and understanding
15. Have everyone answer what the solution looks like?  Why?
16. Have each party provide the VCRS - Value, Cost, Risks ( What's it take to do it right? ) and Support ( What's needed from each of us when ? )
17. Work through the VCRS as a team
18. Set the next action plan, responsibilities and commitments and then follow up
19. 3 outcomes from meeting:
    1. 1> committed action plan 
    2. 2> more research on the solution, problems, impacts, responsibilities, roles, resources
    3. 3> end the effort because the VCRS doesn't it make it worth the effort

Potential Challenges

Maxing ROTH contributions annually

https://www.investopedia.com/ask/answers/102714/where-else-can-i-save-retirement-after-i-max-out-my-roth-ira.asp?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo

Banks randomly cancelling customer accounts - AI algorithms will make this worse

https://www.yahoo.com/news/why-banks-suddenly-closing-down-155511987.html

The reasons vary, but the scene that plays out is almost always the same.

Bank customers get a letter in the mail saying their institution is closing all of their checking and savings accounts. Their debit and credit cards are shuttered, too. The explanation, if there is one, usually lacks any useful detail.

Or maybe the customers don’t see the letter, or never get one at all. Instead, they discover that their accounts no longer work while they’re at the grocery store, rental car counter or ATM. When they call their bank, frantic, representatives show concern at first. “Oh, no, so sorry,” they say. “We’ll do whatever we can to fix this.”

But then comes the telltale pause and shift in tone. “Per your account agreement, we can close your account for any reason at any time,” the script often goes.

In the process, banks are evicting what appear to be an increasing number of individuals, families and small-business owners. Often, they don’t have the faintest idea why their banks turned against them.

But there are almost always red flags — transactions that appear out of character, for example — that lead to the eviction. The algorithmically generated alerts are reviewed every day by human employees

Candidate Solutions

Annuity vs Traditional Investment Accounts

Annuity ?  High commissions, stable returns

Investment Account ? Higher returns and losses, lower commissions

JimK plan

IRA, 401K Accounts

Roth IRA, 401K Accounts

Annual contributions limited by MAGI

Roth conversions allow withdrawals from retirement accounts that can be converted to Roth Accounts

https://www.investopedia.com/ask/answers/042214/how-can-i-fund-roth-ira-if-my-income-too-high-make-direct-contributions.asp?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral

JEM Hedge Fund

Tailored portfolios to meet different goals

Low growth, high income, moderate risk

All have dividend yields > 4%

1. ATT 
   1. high yield and high long-term risk on stock price - dropped to #3 in wireless, HBO MAX may be an also ran in streaming wars
   2. no dividend risk based on short-term cash flow
   3. yield almost 7%
2. Verizon
   1. good dividend with no risks now
   2. number 1 in wireless but may drop with price wars from T-Mobile, ATT
   3. yield > 4%
3. IBM
   1. declining revenue company with good cash flow but high debt service levels
   2. dividend safe now
   3. yield > 5%
4. Citizens Bank
   1. strong regional bank ( number 10 US ? ) with some growth
   2. high yield because of COVID economy and failure on a stress test
   3. analyst recommended
   4. yield > 6%

Strong growth, moderate income, moderate risk

FAANG + Microsoft + Salesforce + Johnson & Johnson + Walmart + ???

dividends are low or non-existent

capital appreciation is high

potential directional option spreads for increased risk, yields –  debit or credit spreads

most are segment leaders so they have a wider moat

High growth, high risk 

Small tech companies 

what are the odds it's the next Amazon or Microsoft?  Low

Stable income, low risk

ETFs like PGX that tie to bond market more than stock market

PGX

1. return averages > 5%
2. pays monthly
3. invests 90% in US financial institutions preferred stock so in bad times not likely to get cut like common dividends

Trusts for Wealth Transfer

Revocable vs Irrevocable Trusts

Medicare Trusts

A Smart Option for Transferring Wealth Through Generations: The Dynasty Trust

https://finance.yahoo.com/news/smart-option-transferring-wealth-generations-083007593.html

trusts-A Smart Option for Transferring Wealth Through Generations The Dynasty Trust.pdf

Estate taxes are due upon the deaths of Mom and Dad when assets are ultimately transferred to the children or grandchildren. In most circumstances, assets are transferred outright, free of trust, which means the assets are distributed free and clear from all oversight and directly to the beneficiary. A check is made payable to the beneficiary or assets are titled in the beneficiary's name, and the beneficiary does as he or she wants with the inheritance.

The problem is if you transfer assets outright, you are exposing those same assets to a second generation of estate taxes. And if you try to transfer assets directly to your grandchildren, you could be exposing those assets to a third set of taxes called generation-skipping transfer tax (GSTT). That is the dilemma. Most people I deal with who want to include their grandchildren in their planning just do not realize those assets could be subject to another tax due.

Trust options

if you own a Family Limited Partnership (FLP) or Limited Liability Company (LLC), possibly owning real estate or having a large equity portfolio, these assets offer tremendous gifting and wealth transfer opportunities. You do not even have to give up control of these assets, you just must want to provide for your family one day in the future and protect them for always.

Dynasty Trust 

A dynasty trust is created to transfer wealth from generation to generation without being subject to the various gift, estate and/or GSTT taxes for as long as the assets remain in the trust, based on applicable state laws. In addition, a dynasty trust can protect those assets from creditors, divorcing spouses and other issues.

A lot of people use an irrevocable life insurance trust (ILIT), and they transfer the assets free of trust upon death. And most living trusts are transferred the same way, without the benefit of being held within trusts.

Why not transfer assets in trust and protect those assets? You are not taking anything away from your children, and all you are doing is adding a layer of asset protection and protecting them for generations to come.

How Dynasty Trust works

Let us assume you have a limited liability company that owns real estate, and you want to transfer that real estate to the children one day in the future. Why not gift non-managing member shares of that same LLC to the trust, and allow those shares to generate enough income to buy life insurance within the trust? Think about this: You are taking a tax-favored and leveraged asset — life insurance — and now making it tax-free for generations to come. Life insurance is a very effective vehicle for wealth transfer planning. Additional advantages of this planning: no annual gift tax returns and no Crummey letters required. When you gift assets for life insurance or various outright gifts you use a vehicle called Crummey gifts (named after the subject of a landmark tax case in 1968), otherwise you could be subject to taxation on the gift.

If you want to protect your children, their children, and your great-grandchildren, and provide for them, put a dynasty trust together, buy life insurance, and you are on your way.

Step-by-step guide for Example

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