Key Points

1. is SWM ( AMSGPSL ) the best way to manage your money?

References

Key Concepts for Life and Planning

7 C's for Better Communications and Understanding

Be: 

1. clear - simplify the message
2. concrete - give your best, real example for concepts
3. complete - make a complete thought
4. concise - be as short as possible while being complete
5. courteous - be polite, not aggressive
6. correct - be accurate with your facts and have supporting evidence
7. considerate - communicate when your audience is ready, not before
8. collaborative - make it a team exercise to work with your audience of problems, solutions
9. cooperative - listen and cooperate with others wherever you can to build the most support and create a better group answer

Key: 7 keys to happiness

1. Think less, feel more
2. Frown less, smile more
3. Talk less, listen more
4. Judge less, accept more
5. Watch less, do more
6. Complain less, appreciate more - life is your best moments
7. Fear less, love more - Love is your greatest gift. Those who love you will give it back

https://www.investopedia.com/terms/f/financial_plan.asp#:~:text=The%20main%20elements%20of%20a,strategy%2C%20and%20an%20estate%20plan.

SmartWealthHelp Road to Your Financial Health

How SWH is different for your Financial Health

Our mission

Our goals

Our process - Discovery > Assessment > Plan > Execution > Updates

Our resources

Our Life Coaches

Choose the right road for your financial health - DIY,  DIY w SWH, DIY w SWH & your coach?

DIY ? Sure if you have all the skills, resources, time, expertise to create your roadmap and manage it going forward - Congratulations you Won!

DIY with SWH ?  SWH can help with free resources, community feedback and support to help you create and succeed with your own roadmap

DIY with SWH and consultant support ? If you have more advanced needs, challenges, questions that go beyond the SWH DIY resources we can help

BYP - Build Your Plan - AMSGPSL << smartwealthhelp.com  

create your plan

The Build AMSGPSL process  with milestones

UYP - Update Your Plan - AMSGPSL  << smartwealthhelp.com

Annual maintenance fee to update your plan quarterly

The Update AMSGPSL process  with milestones

#Communicate - plan-family-fidelity.com-Leading indicators of enduring family harmony.pdf 

How to Build Good Family Plans Together - Fidelity  url

Family engagement around financial topics can predict the future of family relationships.

Really well focused on how to build a family team approach to financial planning ***

• Money, wealth, and estate planning topics are developmental arenas where families learn to make choices and decisions together.
• Enduring family harmony is a state of closeness and connection where people have a voice in decisions that impact them.
• Leading indicators give families a tool for aligning current practices with their wish for enduring harmony around money, wealth, and estate planning discussions.
  

Challenges to family harmony on money, life

• Large differences in goals and attitudes for money, futures, life
• Large differences in health, education
• lack of knowledge of financial systems, tools, services

Dialog to find shared meaning

Talking through money, wealth, and estate planning topics means engaging and understanding each other's perspectives, exploring the impact of decisions, and aligning around interests and outcomes. In dialogue, individuals avoid problematic modes of communication, such as debating opinions, telling versus asking, or leveraging emotions to get their own way.

Do your family members:

• Naturally engage around money, wealth, and estate planning topics? Ask about and honor the feelings and views of other family members?
• Hold strong opinions in a way that makes family members feel it is safe to engage?
• Talk in a way that creates deeper understanding and generates new insights?

Story: Creating shared understanding

Developing a shared understanding of your family story helps build intimacy. In money, wealth, and estate planning, talking through your stories around buying things, saving, investing, helping and gifting, planning for the future, and passing money on shape your current and future family story.

Do your family members:

• Engage in the emotional and meaningful parts of the family story?
• Tell the good and the bad parts of the family story?
• Allow everyone’s version of the family story to be told and heard?
• Step into—not over—other family members’ lives and embrace their stories?

Collective: Creating shared identity

As an individual, you have your own thoughts, feelings, and wishes. You are also part of a larger group that has its own collective beliefs, expectations, and loyalties. And those different perspectives are not always aligned. Emotional development and health come from being able to hold the “me” and the “us” in tension, not living too much on one side or the other, including with money, wealth, and estate planning.

Families that can grow to honor and talk about the “me” and “us” similarities and differences find more enduring health and harmony. This is particularly important for your family journey from parent-child relationships to adult peership, which are relationships based on mutual love, respect, feedback, and dialogue regardless of varying ages, roles, genders, or decision rights. Peership is the developmental goal of families.

When raising money, wealth, and estate planning topics for discussion with your family, be intentional about giving a peership voice to family members and clarifying who has a vote or decision depending on the topic and life stage

Do your family members:

• Allow others to share their views on topics that are important to them?
• Give others a full range of choices without recrimination for their decisions?
• Create an atmosphere where people own their responsibilities, rather than blaming others?
• Cultivate positive views that give others the benefit of the doubt?

Life events: Creating shared experiences

Life events, such as birthdays, graduations, weddings, and holidays, hold significance and meaning for us all as individuals and families. How you engage verbally, emotionally, and functionally around life events is a key driver of intimacy and connection through time. Life events also have important money, wealth, and estate planning topics attached to them, which makes them a gateway into developmental conversations.

When life events intersect with money, wealth, and estate planning, they can become complex and emotionally loaded. Teasing out the complexity from the significance of the event allows your family to foster connection and intimacy.

Anticipate the significance of upcoming life events. Think about what opportunities and emotions they represent. And consider how your family history influences patterns of behavior today, such as who calls whom when important life events occur or how you talk about money, gifts, and appreciation. Aim for transparency and be willing to be vulnerable whenever your family marks a major life event.

Do your family members:

• Think ahead about the individual and family significance of life events?
• Discuss and define what it means to be together as they move through life stages?
• Practice openness about the financial and life decisions that impact their lives?
• Allow others to evolve in their roles and views through time?

Family alignment: Creating shared purpose

The objective of alignment is to elevate conversations above debate or a drive to agree on specific outcomes. Alignment has 4 separate parts you can practice. First, establish a shared vision by hearing family members’ wishes. Then, co-create principles to guide the conversation and decision-making. Then, intentionally share your vulnerabilities—feelings, concerns, and hopes—about the process or outcomes. Finally, discuss what it means to trust the process, which includes understanding that there will be obstacles, challenges, and disappointments on the path toward achieving your shared vision.

Why it matters: Your family can better navigate the most important money, wealth, and estate planning matters, such as marriages and prenuptials, in-law relationships, planning, and end-of-life wishes, when you align around a shared purpose for the future.

What you can do: Be more intentional about your family’s conversational process. Don’t just jump into important life-changing topics. A colloquialism we often use is this: “Have the right people talking about the right things in the right way at the right time.” The practices of alignment—combined with the skills of dialogue—can ensure you do just that.

Do your family members:

• Successfully hear wishes and envision the future together?
• Use clear guiding principles as touchstones for family decision-making?
• Understand the importance of vulnerability and bringing their whole selves to conversations?
• Trust the process and allow the future to unfold?

Each of these 5 leading indicators can be a reflective guide in your family journey toward more intimate communication and connection around money, wealth, and estate planning. By working with your financial advisor, you can begin incorporating these leading indicators and practices into your family engagement to help you move closer to one of life’s most elusive and rewarding destinations: enduring family harmony.

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?

Your Life Plan Process

1. Read the short Master Life book here 
2. Find a trusted financial advisor ( someone who puts your needs first, has the financial expertise you need ) to help you go through this process
3. Review Where You are Now in Life
4. Create YOUR Life plan using AMSGPSL
   1. Create your financial workbook from the template AMSGPSL
   2. Answer the key questions for EACH sheet starting with your Profile
   3. Meet with your financial advisor to review your sheets 
   4. Update all sheets in your plan
5. Track your performance against plan at least monthly
6. Meet at least quarterly with your advisor to review and update your plan
7. Make any changess to any areas in your plan
8. Repeat this process as needed

#Ask - free consultation ( self-directed and counselor )

Your free initial life plan interview consultation options - self directed questionnaire or Life Plan Counselor

Life plan counselor ( free initial consultation ) to answer questions with you

Self-directed questionnaire ( see below )

1. Question > Is a Life Plan Right for You?
   1. Interview - is this the right solution for you?
   2. have you managed your weight successfully in the past?
   3. managing money successfully takes the same discipline
2. Question > What Makes You Happy? 
3. Question > What are your priorities? 
4. Question > Who Is Important To You?
5. Question > What Is Important To You?
6. Question > What Keeps You Up At Night?
7. Question > What Has Worked Well for You ?
8. Question > Where Can Your Life Be Improved?
9. Question > Who Can Help You ?
10. Question > What Do You Need to Learn?
11. Question > What Are Your Most Important Goals ?
12. Question > How Do You Measure Your Life Success ?
13. Question >  Do You Have the Money, Resources You Need to Succeed Now?
14. Question > Will You Have the Money, Resoureces You Need to Meet Your Goals?

One person's life and financial priorities for simple lifestyle, early retirement

I want to retire before I am 30!!

What most people want is not to retire but to have financial freedom and be able to do what they want.

Here goes; 20 points to keep in mind on your journey to financial freedom 👇🏻

1. Save 25x-30x of your expected annual expenses. Let us say your annual expenses are Rs 6 lacs, you need to have at least 1.5 crore saved and invested to achieve true freedom. You can also adjust this number based on your future expected increase in expenses for a better target number.

2. The younger you are the less money you need saved before you can achieve financial freedom, as you will have a much longer compounding period for your investments.

3. Save atleast 50% of your future raises & bonuses; in other words DO NOT increase your lifestyle expenses at the same rate of your hike. Keep your lifestyle inflation minimum.

4. Defer taking your investment gains as long as possible, to enjoy the magic of compounding and avoid paying taxes.

5. Have at least one year of expenses as cash in hand or in liquid funds.

6. Market crashes are usually buying opportunities. So ALWAYS have liquidity.

7. Focus on building side hustles that generate cash every month to cover your expenses. Have a home loan EMI of 20K, try to build a passive income stream for 20k, that way you don't have to worry about these expenses if you decide to stop working or change career directions. 

8. Live off your side or passive income as long as possible/ Try to replace your job with passive income streams. 

9. Spend 5 minutes a day on your money, soon you will become a pro at it and you will start seeing more & more oppurtunities to make money and it will become easier. 

10. Do not get too emotional with money.

11. You will never feel rich enough and that is fine, there will always be someone richer than you, ahead of you or with more money and accept that. 

12. Stop comparing your salary and net worth with others. 

13. Time is limited, money is unlimited. Optimise for earning more money in as little time as possible. 

14. The relationship between money and time is not linear. You don’t need to sacrifice more time to earn more money. Trust me, this is true. 

15. Try to increase your savings rate every month or every quarter, 1% increase in savings every quarter will help you save and invest 4% more every year

16. Test of true financial freedom; when you don’t have to work full time to 
1. Cover the bare minimum expenses to live,
2. Maintain your current lifestyle &
3. Live the life you have dreamed about

17. Minimize risk, minimise fees, minimise taxes AND Maximise returns 

18. Do not fear volatility, you have to face some downside to earn the maximum upside. 

19. Chill as hard as you hustle. 

20. Life > Money.

Follow me for honest & real content 🚀

Source- Internet, My Personal observations, multiple books- psychology of money, the lifestyle investor, just keep buying, joys of compounding, financial freedom.

#Make - define income streams

Define your current and future income opportunities

Business income > Do you own a business that can generate revenue, income, tax deductions?

Job income > Do you have a job that pays ( salary, w2, 1099, other )?

Benefits income > Do you receive government or insurance benefits?

Investment income > Do you have investments that can provide monthly cash flow? asset growth?

Real estate income > Do you own real estate that generates income ( rentals etc ), tax deductions ?

Other income > Do you have other sources of income ( eg writing , art, other services, partnerships  ) ?

Tips to succeed at work

https://www.rd.com/list/how-to-stand-out-at-work/

1. Ask for more feedback
   Sit down with your boss to figure out what you should be doing and how you can improve. Make it an ongoing dialogue so you can keep your manager up to date on how what your standard procedures are, and offer suggestions about how you can make them even better
2. Take a Myers Briggs test
   “When you have an understanding of what those strengths are, focus on working on the projects and things that show what those strengths are or lean in to what those strengths are,
   https://www.rd.com/list/myers-briggs-personality-type/
   https://www.rd.com/article/career-tests/
3. Say yes to projects that show off your strengths
   You’ll be able to pour your energy into what you do best, without getting bogged down by tasks that someone else could do better
4. Become the go-to problem solver
   brush up on how other people have solved similar issues in the past. Analyze what went well—and what didn’t—to figure out how to proceed. You’ll probably end up finding a go-to strategy you can apply to a number of problems. “All the research shows that when people learn from existing best practices or learn from repeatable solutions to recurring problems, that’s the best way to learn problem-solving,”
5. Speak up more during meetings
   Leadership needs you to speak up so everyone has a chance of learning,
   Speak up to make a point without offending by asking the right questions of others
6. Don’t be an annoying emailer
   Emails should be thought out and apply in terms of scope and situation,” he says. He recommends sending a draft to yourself first, then revising it before sending the real deal
7. Have more in-person conversations
   You can’t always understand what someone is expressing,” says Drumwright. Pop into the other person’s office, or schedule a time to sit down and chat about your disagreements.
   a Zoom meeting with video - no recordings
8. Talk less, listen more
   “Watch twice as much as you talk, and listen twice as much as you talk,” says Tulgan. “You only add value in proportion to what you’re learning.” When you’re listening, you’re finding out where people are coming from, what they need from you, and what you can offer, he says
9. Don’t just be any listener—be an active listener
   By actively listening without getting distracted by your own response, you’ll be more open-minded. “Think of what they’re saying and consider it for yourself,
10. Go the extra mile - follow through
    “Show up early and get things done and tie a ribbon on it,” says Tulgan. Always follow through on your promises, and help others finish tasks that you’ve assigned to them. If you keep giving others credit where it’s due and take blame when necessary, you’ll earn a reputation as a team player who others can trust.
11. Bring back old-fashioned professionalism
    Seemingly small things like timeliness, organization, and poise will go a long way in getting your boss to notice you.

Understand VCRS for all opportunities and all key teammates

V = Value of opportunity

C = total costs of opportunity ( implement, operate, retirement )

R = What does it take to do it RIGHT ( more than basic risk management )

S = Success keys ?  Support you need from others to succeed ?

_career-cheat-tips-2023-medium.com-Career Cheat Codes I Know at 36 That I Wish I Knew at 26.pdf file

1. Make your boss’s job easier

2. Trade non-financial poker chips - better things you can trade with your employer/boss instead of money 

3. The path to follow that isn’t obvious - work that will stimulate you

4. The least risky career path is a nightmare - Careers where you never take a risk lead to regrets

5. Business is about who has the best story

6. Put your career in brutal context - do work that makes a damn difference.

7. Career plans = career p*rn - don't wait for something that’s never going to happen

8. The #1 sign of a successful career - when Monday feels like Saturday night fever it's right

9. Never work for a weak leader when you can work for a strong leader

10. The point of a job is to learn - When a job teaches you new skills you earn more money. 

11. Motivation over credentials - choose the positive person with more motivation over the person with the best credentials.

12. Don’t get stuck in the passenger seat on the road to nowhere - get control by writing down goals, taking risks, shopping for the best career deal

13. The saddest part of a career is stagnation - Change employers like you change underwear.?

14. Lazy people hold a lot of meetings

15. Work only feels like work when you can’t stop thinking about something else

16. Try this career paradox for yourself - Your career only grows when you start taking the opportunities you’re not qualified for

17. The most courageous career act one can achieve - start your own business

18. Stay the heck away from red tape - execution trumps process

19. This career skill is a rare diamond  - learn how to teach yourself how to solve the problems you face

20. The career backup plan everyone needs  - side hustles where you learn and make some money

21. Fact: Your employer doesn’t give a crap about you

#Save - define current savings plans & opportunities

Kiplinger - Secure Act is overall improvement for 401K with some BIG issues

https://finance.yahoo.com/news/leave-legacy-secure-act-122241601.html

Pros:

1. More part time workers have 401K access
2. No age limit on contributions
3. $5K no penalty withdrawals before 59 for child birth expenses
4. RMDs now not due until age 72
5. Roth IRA Distributions are tax free

Cons:

1. leaving a legacy through a "Stretch" 401K for a non-spouse is now more difficult with only 10 years to complete the distribution of funds

Thoughts:

1. consider annual tax free gift distributions of securities to dependents up to $15K per year each
2. consider special needs trusts to pass assets to dependents but asset control passes to executors

Secure 2.0 Act improves retirement plans overall - Roth IRA and Roth 401K

https://finance.yahoo.com/news/congress-just-approved-401-k-160947480.html

roth-secure-act-2-better-roth-options-finance.yahoo.com-Congress just approved 401k and IRA changes that affect workers across generations Here are the key p.pdf  link

roth-secure-act-2-better-roth-options-finance.yahoo.com-Congress just approved 401k and IRA changes that affect workers across generations Here are the key p.pdf file

Tax planning on retirement accounts 

retirement-taxes-fidelity.com-How to cut retirement income taxes.pdf. link

retirement-taxes-fidelity.com-How to cut retirement income taxes.pdf. file 

#Grow - define current plans to grow your wealth, income

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

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

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

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 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 )

Equality or Equity - Which is Fair?

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.

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

#Protect - Define how to protect your family and your assets

Key Transition Questions

What transitions have you gone through in life?

How have they worked out?

What transitions are you looking at going forward in life?

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 - Define how to spend smarter

Spend Smart Tips 

1. Make A Budget And Stick To It To Save Money This Year
2. Cancel Any Subscriptions Or Memberships You Don’t Use
3. Shop Around For The Best Deals On Groceries, Clothes, And Other Items
4. Cook Meals At Home Instead Of Dining Out To Save Money
5. Sell Things You Don’t Need And Put The Money In A Savings Account
6. Use Public Transportation Or Carpool When Possible
7. Negotiate A Lower Rate On Your Car Insurance Or Cell Phone Plan
8. Track Your Spending To Save Money This Year
9. Avoid Impulse Purchases
10. Learn How To Fix Things Around The House Yourself
11. Follow These Tips Above To Save Money This Year!
    
    

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 ?  How to live your best life ?

Key Questions

What transitions have you gone through in life?

How have they worked out?

What transitions are you looking at going forward in life?

Paint me a picture of what's important

What is important to you and your family today?

How have those priorities and goals changed in the last 10 years?

What's important to live a better life going forward?

Is there a job or career change in focus?

Is retirement important ( full or partial ) ?

https://www.yahoo.com/finance/news/americans-are-feeling-hopeful-about-retirement-according-to-two-new-reports-090003455.html

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.

Potential Value Opportunities

Simple Smart Money Tips

https://yourmoneytoday.net/10-ways-to-save-money-this-year/?utm_source=2&utm_term=135834449&utm_medium=email&utm_campaign=10-Ways-To-Save-Money-This-Year

Make A Budget And Stick To It To Save Money This Year
Cancel Any Subscriptions Or Memberships You Don’t Use
Shop Around For The Best Deals On Groceries, Clothes, And Other Items
Cook Meals At Home Instead Of Dining Out To Save Money
Sell Things You Don’t Need And Put The Money In A Savings Account
Use Public Transportation Or Carpool When Possible
Negotiate A Lower Rate On Your Car Insurance Or Cell Phone Plan
Track Your Spending To Save Money This Year
Avoid Impulse Purchases
Learn How To Fix Things Around The House Yourself
Follow These Tips Above To Save Money This Year!

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

BYP - Build Your Plan - AMSGPSL << smartwealthhelp.com  

1 time fee to create your plan

The Build AMSGPSL process  with milestones

UYP - Update Your Plan - AMSGPSL  << smartwealthhelp.com

Annual maintenance fee to update your plan quarterly

The Update AMSGPSL process  with milestones

JimK plan

Assume $100 / month after tax invested in brokerage account every month for 35 years

Assume $100 / month as a matching contribution from another source

Assume all funds reinvested every year in a TAX FREE ROTH IRA

Assume. 9% dividend payout year 1,  inflation = 3% per year, dividend payout growth of 2% per year for a "net effective return annually = 8% after inflation"

<<Results

you invested total $42,000 over 35 years

your effective annual income at that time = $40,410 per year. ( accounting for inflation of 3% per year )

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

Roth IRA Account Example showing future net income 

AMSGPSL - 2 - Make - Wages - Work#Make-Wages-Work-RothAccountGrowthExample1-Assume9%25growthannuallyinportfoliovaluefor35years

JEM Hedge Fund

Tailored portfolios to meet different goals

Emphasize high-yield "Buffett" companies 

1. Charile Munger stock purchases >> buy great companies at good prices
2. sustainable competitive business model and execution and good barriers to entry ( IP, high capital investment or ? )
3. sustainable operating income and margins where risks of stock price PE compression stay low ( unlike Amazon, Tesla at a point )
4. industries that serve basic needs well where demand is relatively stable in down economies
5. a good ( not perfect ) track record on meeting revenue and EPS targets
6. a management team and company strategy committed to:
   1. has a holistic view of the stakeholder roles in their VCE - Value-Chain Economy their businesses operate in
   2. managing business and financial risks aggressively, proactively
   3. finding more long-term brand loyalty, value and efficiencies in their existing markets, solutions
   4. provide sustainable common dividend payout ratios 
   5. grow sustainable revenue and cash flows through organic and accretive acquisition growth
   6. manage leverage, debt levels and sensitivity to interest rates effectively 
   7. strong, effective, sustainable partnerships  ( no win-lose models )
   8. smart divestitures of business segments that are no longer strategic

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

Estate Planning Concepts

Here are five key points from the "Money Unscripted Podcast | Estate Planning | Fidelity" episode:

1. **Importance of Preparation**: The podcast emphasizes the importance of getting organized and making plans for estate distribution while still alive to avoid family disputes after passing. It's recommended to put all plans in writing to clearly communicate one's wishes.

2. **Engaging in Conversations**: Initiating discussions with family members about estate distribution is crucial. The episode highlights that having these conversations openly while one is alive can help manage expectations and reduce conflicts.

3. **Fair Distribution of Assets**: The podcast discusses strategies for fair distribution of both valuable and sentimental items, such as creating an inventory and possibly using appraisals for valuable items to ensure equitable distribution among heirs.

4. **Legal and Practical Advice**: Legal tools like wills, trusts, and tangible personal property memorandums are discussed as methods to manage and pass on assets effectively. The importance of legal guidance to navigate these tools is also highlighted.

5. **Maintaining Family Harmony**: The overarching message is focused on the emotional and relational aspects of estate planning. The goal is to ensure that the process of distributing one’s estate does not lead to family strife but rather preserves family bonds and honors the deceased’s wishes.

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.

US Passport renewals

https://travel.state.gov/content/travel/en/passports/have-passport/renew-online.html

Follow these steps to renew your passport online and track your status:

1. Confirm you meet the requirements
2. Create your account 
3. Start your application
4. Enter your most recent passport info
5. Enter travel plans
6. Upload digital photo
7. Sign and pay
8. Enroll in email updates

digital photo upload tips - good headshot etc

https://travel.state.gov/content/travel/en/passports/how-apply/online-renewal-photo.html

passport photo examples from 3rd party

Step-by-step guide for Example

sample code block

Recommended Next Steps

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