Episode #110: Navigating Family Business Successions With Stephen Shortt

A lack of succession planning can have disastrous consequences for a business, especially when your business is family owned and operated. This week on Grow Money Business, Stephen Shortt, an expert in family business succession planning, is joining us to share his experience and wisdom. Stephen has worked in his two-family businesses for most of his adult life and childhood, and as a result, he is familiar with the ups and downs associated with transitioning between generations. Throughout the episode, he delves into the framework needed to navigate family business successions successfully.

Show Notes

[03:35] Stephen's Background – Stephen introduces himself and provides an overview of his current work. 

[07:13] First Step – Stephen explains where to begin to ensure a seamless and successful family succession.  

[11:31] Mindsets – Stephen talks about three critical mindsets for succession planning 

[15:28] Personal Experience – Stephen shares his personal experience on his family business and how their transitions were handled.  

[19:27] Succession Strategy – Stephen broadly describes the succession strategy for a family business. 

[22:00] Challenges – Stephen explains overcoming various adversities during the succession process. 

[26:30] Family Board – Stephen expresses his thoughts on the importance of having a family board. 

[28:44] Five P’s – Stephen discusses the “five P’s” framework for navigating family business successions 

Resources

Connect with Stephen: 

Website: successfulsuccession.com/ 

LinkedIn: linkedin.com/in/stephenshortt/ 

Episode #109: Buying the Building Your Business Operates in With Trisha Talbot

Having ownership of the building in which your business is based can be a significant wealth building tool. This week on Grow Money Business we have a distinguished guest who educates physicians, owners, and investors on healthcare real estate investment opportunities. Trisha Talbot is the Managing Principal of Doc Properties, through which she supports healthcare practitioners in maximizing the economic worth of their real estate holdings on which they conduct business. Throughout this week's episode, we delve into numerous aspects of purchasing and constructing the building in which your firm operates.

Show Notes

[02.42] Trisha's Background - Trisha narrates her journey so far, and explains the work she carries out through her business.  

[06:56] Transfer Tenant Improvements - Trisha discusses numerous points to consider when transferring tenant improvements into a new location. 

[08:55] Patient Base - Trisha emphasizes the importance of the patient base while determining the best location for a medical practice. 

[11:00] Types of Buildings - Trisha reviews numerous types of buildings, while explaining the significance of real estate supply. 

[16.35] Commercial Property Asset Prices - Trisha talks about commercial real estate asset values and shares her viewpoint on using them as investments.  

[21.29] Lease Terms – Trisha highlights some of the critical factors to consider when filling out lease conditions. 

[26:44] Construction - Trisha discusses the advantages and disadvantages of constructing the buildings. 

[44:38] Role of Landlords - Trisha explains the role of a landlord, and shares some tax benefits related to owning a building.  

[51:59] Common Mistakes - Trisha highlights some potential problems that can arise while purchasing and constructing buildings.  

[55:59] Final Advice - Trisha delivers her final comments to business owners who are considering acquiring a building for business operations.  

Resources

Connect with Trisha:

Website: docproperties.com/ 

Email: ttalbot@docproperties.com 

LinkedIn: linkedin.com/in/trishatalbot/ 

Episode #108: Launching a Business in the Second Half of Life With Rick Terrien

There is a common misconception that successful entrepreneurship exists only for younger individuals. This week on the podcast, Rick Terrien shares why we should challenge that thought process. Rick, a long-term entrepreneur and author, shares how he has dedicated his time to assisting others with launching a business in their second half of life. Throughout the episode, we dive deep into the essentials of entrepreneurship and crucial information that will give you inspiration and guidance along the way.

Show Notes

[02:29] Rick’s Journey - Rick talks about his work and the latest events in his life.

[09: 56] Age and Entrepreneurship - Rick shares his views on the correlation between age and business.

[11:47] Initial Steps - Rick discusses how to think about the initial steps of organizing a business.

[12:59] Important Facts - Rick explains a few essential facts that need to be considered in entrepreneurship, especially when you’re considering starting a new business venture in the second half of your life.

[17:43] Non-Profit Work - Rick shares the non-profit work he currently engages in.

[31:20] Impact of Covid - Covid has changed a lot in people’s lives. Rick expresses his thoughts about how it has affected various occupations.

[33:48] Ageless Startup - Rick talks about his recently published book, Ageless Startup: Start a Business at Any Age.

[40:34] Common Mistakes - Rick highlights several critical mistakes many entrepreneurs make in their business ventures and how to avoid them.

Resources

Connect with Rick:

LinkedIn: linkedin.com/in/rickterrien/

Websites:

The Center for Ageless Entrepreneurs: agelessentrepreneurs.org 

Ageless Startup: Start a Business at Any Age: ageless-startup.com

Mentioned in the Episode:

Ageless Startup: Start a Business at Any Age: goodreads.com/book/show/53714833-ageless-startup?from_search=true&from_srp=true&qid=LtUd8Tuz3z&rank=1

Episode #107: Central Bank Digital Currency: Dangers & Possibilities With J Scott Christianson

Money has taken a lot of different forms over time, including gold & other metals in addition to fiat paper currencies. It's arguable whether bitcoin and other decentralized currencies are the next version of money. What's clear is that governments around the world are in an arms race to create their version of "centralized" digital currency. In today's episode of Grow Money Business, J Scott Christianson joins us to describe central bank digital currencies, the arms race to create them, and potential uses and misuses in the future.

Show Notes

[02:44] Digital Currency - While digital currencies have become relatively recent mainstream phenomena, they have existed for decades. Scott discusses this new endeavor of developing digital currency.

[07:28] Adopting Digital Currency – Scott highlights the gravity of adopting digital currency in a country by assessing its dangers and possibilities.

[10:39] Transition - Scott outlines how moving from a conventional reserve system to digital money works logistically.

[13:37] China and Digital Currency - Scott broadly talks about China's stance on digital currency from various angles.

[19:37] China and El Salvador - While China prohibits bitcoin transactions and mining, El Salvador accepts Bitcoin as legal tender. Scott shares his perspective on this schism.

[23:36] Role of USA – Scott discusses the options that the US may have in its arsenal to delay China's deployment of programmable money.

[28:25] Banking System in the Future - Scott discusses the potential of more authoritarian counties attempting to implement controlled digital currencies, and his predictions for the global banking system in five years.

[35:23] Fiat Currency and Cryptocurrency - Scott shares his thoughts on that intersection between fiat currency and cryptocurrency.

[40:42] Artificial Intelligence – Scott briefly discusses artificial intelligence and his predictions for where it will go in the next five to ten years.

[48:48] Life with AI – Scott shares what applications he believes AI will enable in the following years.

Resources

Connect With Scott:

Website: christiansonjs.com/

Newsletter: frtech.substack.com/

LinkedIn: linkedin.com/in/jscottchristianson/

Instagram: instagram.com/jscott_mo/

Mentioned in the Episode:

China's Second Continent: How a Million Migrants Are Building a New Empire in Africa: goodreads.com/book/show/18373202-china-s-second-continent

Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It: goodreads.com/book/show/36204377-edge-of-chaos

Episode #106: Business Exit Planning With Scott Snider

Many business owners eventually come to the point where they will be moving on from the business they passionately built over the years, and having a good exit strategy will help them navigate this important and intimate event in their journey of entrepreneurship. This week on Grow Money Business, we have a distinguished guest, Scott Snider, the President and the co-owner of the Exit Planning Institute (EPI). Scott is an industry leader, growth expert, and entrepreneur. Throughout the episode, he discusses how he assists company owners in developing substantial businesses while also aligning their own financial objectives and personal purposes. He also explains several vital factors that every business owner should consider when exiting their company.

Show Notes

[03:26] Current Role – Scott talks about his current role and how he helps businesses with exit planning.

[06:40] Perfect Exit - Scott shares his insights about the perfect exit to a business owner who is about to do so in a few years.

[10:23] Emotional Hurdles -  Scott expresses his thoughts on managing psychology and people's emotional hurdles along the business exit process.

[14:12] CEPA - CEPA is an acronym for Certified Exit Planning Advisor. Scott gives a brief explanation for the entire CEPA process.

[18:54] Exit Strategy for Young Entrepreneurs - Scott leaves a message to all the young business owners out there.

[20:21] Scott's Story- Scott emphasizes the significance of not letting your business define you while sharing his story and takeaways from his past experience.

[29:35] Family Business – Explaining the nature of the family business, Scott shares how he and his father work together in their family business.

[41:43] Vision - CEPA is suitable for any advisor who wants to learn how to help an owner position their company for a successful and significant exit. Scott broadly talks about the vision of the Exit Planning Institute.

[47:43] Future Plans - Having explained the concept of the wealth gap, Scott explains the future plans for his business.

[53:33] Research Findings -Scott shares details about one of his recent researches and exciting factors they discovered through it.

Resources

Connect With Scott:

LinkedIn: linkedin.com/in/scott-snider-epi/

Website: exit-planning-institute.org

Facebook : facebook.com/exitplanninginstitute/

Instagram: instagram.com/exitplanninginstitute/

Mentioned in the Episode:

Certified Exit Planning Advisor: exit-planning-institute.org/program/certified-exit-planning-advisor/

Owner Readiness: exit-planning-institute.org/state-of-owner-readiness/

Every Family's Business by Tom Deans: https://everyfamiliesbusiness.com/book/

Traction by Gino Wickman: https://www.audible.com/pd/Traction-Audiobook/B00A9ZO7T6

Episode #105: All About Inflation

From October 2020 to October 2021, the Consumer Price Index for All Urban Consumers grew by 6.2 percent, which according to the Bureau of Labor Statistics, was the most significant 12-month gain since November 1990. In relation to this data, we have dedicated today's episode to exploring more about inflation. Throughout this episode, Grant shares his thoughts about the impact of inflation on the present economic environment and numerous ways to mitigate the risk of inflation.

Show Notes

[04:21] CPI – Grant explains what CPI is and its relationship with the inflation rate.  

[06:40] Inflation – Grant explains inflation in simple terms, pointing out several misconceptions about it. 

[09:20] Will the History Repeat? – Grant analyzes and compares the current economic context in the US with the economy in the late 70s and early 80s.  

[10:12] Gold and US Dollars – Grant broadly explains the evolution of the relationship between gold and US dollars. 

[15:30] Present Economic Situation – Grant delves deeply into the current economic climate in the United States from various perspectives and then provides his thoughts on those observations.  

[20:55] TIPS -  Grant discusses how increasing your allocation to Treasury Inflation-Protected Securities can act as an inflation hedge.  

[23:32] Series I bonds – Grant identifies investing in these types of bonds as an excellent alternative to hedge inflation.  

[28:26] Investing in Gold – Grant discusses the potential of investing in gold and shares his thoughts on the matter.  

[32:12] Equity – Grant identifies equities as an excellent inflation hedge in the long term. 

[34:52 ] Asset Allocation– As a final remark, Grant discusses his ideas on asset allocation in general. 

Resources

Bureau of Labor Statistics & CPI-U: bls.gov/cpi/ 

Treasury Direct & Series I Bonds: treasurydirect.gov/indiv/products/prod_ibonds_glance.html 

Episode #104: An Entrepreneurial Success Story With Lindsay Pinchuk

From developing an idea into a viable business to growing revenue, managing finances, and eventual exit and sale, the journey of entrepreneurship can be risky and fascinating. In the upcoming episodes of Grow Money Business, we will have individuals on the show sharing their exciting entrepreneurial stories.  In today’s episode, Lindsay Pinchuk, an award-winning entrepreneur, joins us today to share her story of growing Bump Club & Beyond, one of the premier parenting communities in the country.

Show Notes

[03:36] Lindsay’s Story – Lindsay shares how she got the idea of starting her business and the exciting entrepreneurial journey that came with it.

[9.57] Structure – Lindsay explains how her previous work experience helped her in modeling her business structure.

[10:38] Monetizing – Whatever the business is, monetizing plays a vital role. Lindsay broadly describes how she utilizes the power of community for monetization.

[15:33] Taking the Shift – Lindsay talks about why she gave up her career for her business and what that transition looked like.

[17.33] Financing – Lindsay shares how she embedded the financial aspects, such as bookkeeping and having an accountant, into her business as it grew.

[20:00] Entity Structure – Lindsay shares with us some of the lessons she learned about setting up the right business structure and hiring the right kind of people for the business to flourish.

[28:54] Outsourced CFO – Lindsay talks about the financial support she got by outsourcing the CFO position, especially when creating valuations for the business.

[30.30] Acquisitions – Lindsay talks about how she received acquisition offers from three different entities for her business in 2018 and the process that followed.

[33.13] Message to the Entrepreneurs - Lindsay shares some lessons she learned from her business journey.

[42:30] Business & Personal Life – Lindsay shares her experience of managing personal finances and business as a mother.

Resources

Connect with Lindsay

Website: lindsaypinchuk.com/

LinkedIn: linkedin.com/in/lindsaypinchuk/

For more tips to help you start and grow your business, follow Lindsay on Instagram: instagram.com/lindsaypinchuk/

You can also grab some of her free guides: 

5 Tips + Tools for Starting Your Own Business: view.flodesk.com/pages/6192a54d3a0e5bcf6f542228

Six Super Simple Tips for Social Media Success:view.flodesk.com/pages/61929cab839edddd7aa02829

Make sure you check out her podcast Dear Found Her, coming in January. Subscribe on Apple, Spotify, or wherever you listen.: podcasts.apple.com/us/podcast/dear-foundher/id1591976277

For further discussion with other founders, join the Dear Found Her Facebook Group: facebook.com/groups/dearfoundher/

Episode #103: Revisiting Social Security Reform: The Social Security 2100 Act

The Social Security 2100 Act was recently introduced by the Social Security Subcommittee of the House Ways and Means Committee. The reinstatement follows the Social Security Administration's latest forecasts that the trust funds will deplete in 13 years. In this episode, Grant dives into the status of the Social Security Trust fund, some potential solutions to buffer its reserves, and his overall thoughts on the proposed bill.

Show Notes

[04:35] Concept of Social Security Trust Fund – Grant explains the whole idea behind the social security trust fund and how it has evolved over the decades.

[06:10] Time to Revise – Why this is the time to revise rules and regulations related to social security.

[09:54] Running out of Money – Grant shares his take on the depleting reserve in the social security trust fund.

[14:26] Raise the Retirement age – Though raising the retirement age is an option for buffering the reserve on the trust fund, Grant explains why it may not be as easy as it sounds.

[15:06] Increase Taxes – Grant identifies a tax increase as the easiest option politically, and explains how this solution will contribute to the elimination of wealth inequality in the country.

[17:30] Adjust the Benefits – How adjusting the amount going out of the fund is another option to prolong the reserve.

[18:18] Social Security 2100 act – Grant dives deep into the provisions of the proposed act and shares his thoughts.

[23:11] Investing in US Government Bonds – Though there is added risk, Grant explains how investing the excess of the social security trust fund in US government bonds will help to grow the pool of assets a little bit faster.

Resources

Social Security Board of Trustees: Combined Trust Funds Projected Depletion One Year Sooner Than Last Year: ssa.gov/news/press/releases/2021/#8-2021-2

Congress has a new plan to fix Social Security. How it would change benefits: cnbc.com/2021/10/26/social-security-what-a-new-plan-in-congress-would-mean-for-benefits.html

Episode #102: Don't Let Cap Gains Distributions Catch You Sleeping

Every year mutual funds are required to distribute capital gains to shareholders – whether you like it or not. Even though “gains” are typically a good thing, they can also leave you with a big unwanted tax bill. This week we cover everything you need to know about mutual fund capital gains distributions, including how to forecast, plan for, and avoid them.

Show Notes

[02:35] Important Period – Grant starts the discussion by mentioning the parties that need to stay updated about mutual funds during this time of the year.

[05:45] Structure of Mutual Funds – Grant provides a broad description of the structure of mutual funds from various perspectives.

[11:16] Capital Gains Distribution – Keeping an eye on the company portfolio in the mutual fund is important as an investor. Grant shares his thoughts on how to benefit from capital gains distributions.

[14:12] Options for the Investors – Grant explains the numerous options that the investors have at the year-end related to mutual fund investments.

[16:45] Active Mutual Funds and Passive Mutual Funds – Grant analyzes the effect on the distributions of capital gains by active and passive mutual funds, giving numerical examples.

[19:48] Exchange Traded Fund – Capital gains distributions of exchange-traded funds are quite different from the above. Grant dives into exchange-traded funds explaining it with several examples.

Resources

Capital Gains Roundup: 2021 Edition | Strong performance and outflows generate some big taxable distributions: morningstar.com/articles/1065314/capital-gains-roundup-2021-edition

Fund Capital Gains Distributions: What to Expect in 2021 |A strong year suggests that a decent amount of capital gains will be paid out: morningstar.com/articles/1063488/fund-capital-gains-distributions-what-to-expect-in-2021

Episode #101: Bitcoin ETFs Are Here

Bitcoin ETFs are here.

They’re not quite what you might think though. We walk through the details of how these beasts are structured and what you need to know before buying them in this week’s podcast episode.

Show Notes

[02:09] Recent Developments – Grant starts the discussion with a review of how and why cryptocurrencies grew in popularity over the last few years.

[04:37] Diversity of ETFs – How the diverse nature of the ETFs allowed them to utilize cryptocurrencies and the challenges associated with getting a cryptocurrency involved in a mainstream investment vehicle.

[08:12] Newcomers to the Market – Grant reviews a couple of newly introduced ETFs that are backed by Bitcoin and the pros and cons of investing in these compared to a traditional ETF.

[10:48] Futures Contracts – How the futures markets work and how they relate to the way crypto-backed ETFs function.

[14:36] Obscure Costs – Because of the way BTC-backed ETFs are connected to futures contracts, there are some costs involved in the process that may go unnoticed. Grant explains what investors need to keep in mind about the costs of the Bitcoin ETFs.

[16:41] Leveraged ETFs & Mutual Funds – Grant shares his thoughts on the functionality of the two investment vehicles and the similarities they share with Bitcoin ETFs.

[20:10] Bond Funds – Grant explains the difference between how bond funds operate versus investment vehicles based on futures contracts.

Resources

The Wall Street Journal - ETFs Are a Bad Way to Bet on Bitcoin: wsj.com/articles/etfs-are-a-bad-way-to-bet-on-bitcoin-11635261745

The Wall Street Journal - Bitcoin ETF’s Success Could Come at Fundholders’ Expense: wsj.com/articles/bitcoin-etfs-success-could-come-at-fundholders-expense-11635080580

Episode #100: Reducing Small Business Health Insurance Costs With John Butler

Health insurance is an essential aspect in recruiting and retaining employees as well as sustaining productivity and employee happiness in a small business. In today’s episode, we have a distinguished guest, John Butler, joining us to take a deep dive into what business owners should know about health insurance. John is a national C-suite health benefits consultant, strategic coach, and the author of “Health Insurance Sucks,” the number one ranking book on Amazon in its category. Throughout this episode, John shares his insights on how businesses can reduce the cost of the health insurance they provide to their employees.

Show Notes

[02:22] John’s background - John shares his journey and what inspired him to write the book “Health Insurance Sucks.”

[05:25] Healthcare Costs - John explains his observations and findings on numerous methods to reduce healthcare costs.

[07:05] PEO - John describes how small businesses can benefit from Professional Employer Organizations.

[08:20] Custom Plan Solutions - With a comprehensive analysis, John points out how a custom health plan assures the highest quality service with a reasonable cost.

[18:56] Insurance Companies and Brokers – John talks about the relationship between insurance companies and brokers, and shares his thoughts from the perspective of each party.

[34:15] Federal Requirements - John explores the federal requirements and penalties related to employees’ health plans.

[38:54] Health Sharing Programs – John emphasizes the significance of health sharing programs.

[48:28] Current Social Context – The healthcare insurance industry consists of many complex layers. John shares his take on the healthcare plans in the current social context.

Resources

Connect with John Butler:

Website: jb-benefits.com/

LinkedIn: linkedin.com/in/jbbenefitsconsulting/

Mentioned in the Episode

Health Insurance Sucks - The Moral Case for Better Business Healthcare: goodreads.com/book/show/58502517-health-insurance-sucks---the-moral-case-for-better-business-healthcare?from_search=true&from_srp=true&qid=KIWCNRWz38&rank=1

Episode #99: Maximizing Workplace Benefits With FSAs and HSAs

The open enrollment period for Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) is approaching. During the enrollment period, employees can enroll in or amend their contributions for the future year for FSAs and HSAs, which they can use to pay for their healthcare-related expenses. We dedicated today’s episode to taking a deep dive into several vital facts related to FSA, Dependent care FSA, HSA, and the numerous ways to maximize your workplace benefits under each of them.

Show Notes

[04:37] Flexible Spending Account (FSA) - Grant explains what FSA means, how it works, and who can contribute.  

[07:55] Plan the Health Expenses – Why it is essential to forecast the health expenses to pay them on a tax-deferred basis through FSA versus paying out of pocket. 

[09:18] Spend the Fund at Pharmacy – Beneficial features of FSAs, such as the ability to spend the funds at a pharmacy, and why having this option is significant. 

[10:10] Dependent Care FSA – Grant explains the purpose of a Dependent Care FSA, its benefits, and several facts to keep in mind if you are considering using one. 

[15:30] HSA – How to contribute to and HSA and the fantastic tax benefits and investment opportunities that come along with it 

[19:12] Eligibility for HSA – Grant explains the eligibility requirements for HSAs, including having a High-Deductible Health Plan (HDHP). 

[26:00] Connection to the employer - Grant discusses the connection between your HSA and your employer, and why employees can take their balance with them when they’re switching employers. 

Resources

What Is a Flexible Spending Account (FSA)? 
investopedia.com/terms/f/flexiblespendingaccount.asp 

What Is a Health Savings Account (HSA)? 
investopedia.com/terms/h/hsa.asp 

Episode #98: Everything You Need to Know About Medicare With Danielle Roberts

With the open enrollment period set to start on October 15th 2021, this is a great time to dive deep into the vital facts related to Medicare. In today’s episode, we have a distinguished guest, Danielle Roberts, joining us. Danielle is a co-owner of Boomer Benefits, a firm dedicated to helping senior citizens make confident decisions when enrolling into Medicare, as well as the author of the best-selling book “10 Costly Medicare Mistakes You Can’t Afford to Make”. Throughout this episode, Danielle shares her wisdom on all the crucial points you need to know if you intend to enroll in Medicare.

Show Notes

[02:25] Danielle’s Background - Danielle introduces herself and explains what they do at Boomer Benefits.

[04:00] Common Mistakes - Danielle shares some of the most common mistakes she sees people make when enrolling for Medicare, and what you can do to avoid them.

[08:01] Parts of Medicare – Parts A, B, C, and D of Medicare and the differences between them.

[10:49] Medigap Plan and Medicare Advantage Plan - Danielle broadly describes the role of Medicare Advantage policy and the Medigap plans while highlighting their differences.

[16:59] Most Suitable Plan for You - While 34% of beneficiaries choose Medicare advantage plans, Danielle explains how to be mindful when making the best decision for you.

[21:47] Subsequent Changes to the Plan – Danielle’s suggestions on how beneficiaries can change their enrolled plans in subsequent years.

[26:48] Switching Between Medigap Policies - Possible ways to switch between different Medigap policies and the procedures you’ll need to follow.

[28:59] Eligibility Criteria for Medicare - Danielle outlines the eligibility criteria for enrolling in Medicare.

[32:23] Medicare Fund - The correlation between the reserves in the Medicare fund and the benefits Medicare offers.

[38:08] Single-payer System - Danielle shares her insights on the rising health care costs and the viability of a single-payer system.

[42:23] Pharmaceuticals and Drugs - Grant and Danielle discuss some of the current trends in the pharmaceuticals industry and the business interests that may affect Medicare.

[47:09] Boomer Benefits - Danielle talks about how Boomer Benefits helps people with Medicare basics, benefits, and coverage.

Resources

Connect with Danielle Roberts:

Website: boomerbenefits.com/

YouTube: youtube.com/c/BoomerBenefits

Facebook Page: facebook.com/BoomerBenefits

Facebook Group: facebook.com/groups/BoomerBenefits

LinkedIn: linkedin.com/in/daniellekunkle/

Mentioned in the Episode:

10 Costly Medicare Mistakes You Can’t Afford to Make:

goodreads.com/book/show/55204934-10-costly-medicare-mistakes-you-can-t-afford-to-make?from_search=true&from_srp=true&qid=1Wia7eTzTY&rank=1

The United States Social Security Website: ssa.gov/

Official U.S. government site for Medicare: medicare.gov/

Episode #97: My Current Thinking on Cryptocurrency

A lot has happened in the cryptocurrency arena since we last covered this topic on Grow Money Business. Last week China announced that they are banning all activities in cryptocurrency while a month ago, El-Salvador announced that it would accept Bitcoin as a legal tender. In today's episode, Grant shares his current thoughts and observations on cryptocurrency-related developments in the United States and around the world.

Show Notes

[02:46] Recent Events - Grant starts the conversation by briefly explaining the impact of both China and El Salvador’s approaches to using cryptocurrency.

[05:17] Benefits of Cryptocurrency - The benefits of cryptocurrency and why it is an appealing and convenient alternative for existing currency issues.

[07:05] Growing Chinese Economy - Grant compares the pace of China's economic growth to the USA and reviews its intention of overtaking the USA as a world economic power.

[08:50] World Reserve Currency - Grant dives into the world reserve currency from numerous perspectives, including economic privileges that it opens for certain countries and why the USA needs US dollars as the world reserve currency. 

[12:45] China and Cryptocurrency - The cryptocurrency activities in China before the government-imposed ban and Grant’s take on the reasons behind that government action.

[14:46] El Salvador and Cryptocurrency - El Salvador's economic background and impacts on the country's social context by encouraging citizens to transact in Bitcoin.

[15:52] Benefits and Challenges for El Salvador - The possible future occurrences related to cryptocurrency, as well as Grant’s take on the probable risks and benefits El Salvador may experience with the decision to accept cryptocurrency.

[18:40] Future Cryptocurrency Approach of Countries - The future measures of the world, and how China's recent decision has knocked the price of cryptocurrencies.

[21:00] Increasing Credibility and Viability of Cryptocurrency - Grant explains the widespread adoption of cryptocurrency at the institutional level and how it has enhanced the credibility and viability of cryptocurrencies.

[22:58] Bitcoin and Ethereum - Cryptocurrency consists of numerous types of coins, including Bitcoins and Ethereum. Grant reveals his thoughts on the benefits and usage of each.

[28:01] Conclusion - Grant sums up his takes on recent changes of monetary and economic policies related to cryptocurrency and how countries will decide and set rules regarding cryptocurrency in the coming future. 

Resources

Ep #65 - My Take on Bitcoin & Cryptocurrency

growmoneybusiness.libsyn.com/website/ep-65-my-take-on-bitcoin-cryptocurrency

Ep #64 - Where to Invest an Extra $50,000 Right Now

growmoneybusiness.libsyn.com/website/ep-64-where-to-invest-an-extra-50000-right-now

JPMorgan Warns Big Investors Are Suddenly Dumping Bitcoin for Ethereum Amid A $150 Billion Crypto Price Crash:

forbes.com/sites/billybambrough/2021/09/26/big-investors-are-suddenly-dumping-bitcoin

China's top regulators ban crypto trading and mining, sending bitcoin tumbling:

reuters.com/world/china/china-central-bank-vows-crackdown-cryptocurrency-trading

Episode #96: 5 Year End Financial Moves to Make With the Tax Bill Looming

As we covered in the previous episode of Grow Money Business, the House Ways & Means Committee recently released proposed tax reform legislation that brings significant changes to the current levels of taxation. This week, Grant dives into five strategies you can utilize to take advantage of the substantial changes introduced by the proposed tax bill and reduce your tax liability. Throughout the episode, Grant reviews some of the sections of the tax code that will likely be updated by the new legislation and actions you can take within this year to make the best of the current tax code.

Show Notes

[01:52] Background and Progress - Grant starts the conversation with a brief review of the previous episode, explaining why he believes that the proposed tax bill is more likely to be passed in its current form.

[06:11] Profit Distributions From S-Corps  - The new proposed legislation reforms a set of provisions that will tax S-Corporations’ profit distribution at a higher rate. Grant emphasizes the necessity of delaying expenses and increasing the income for this year.

[08:51] Estate Taxation - Grant dives into the effects of the proposed provisions for estate taxation, revocable and irrevocable trusts, and how to take advantage of the current thresholds and exemptions

[13:15] Grantor Trust – The proposed legislation includes some provisions that take away some of the planning opportunities related to trusts that are currently available for taxpayers. Grant shares his take on how to prepare for these upcoming changes.

[18:14] Family Limited Partnership - Grant shares his thoughts on taking advantage of a family limited partnership’s marketability and minority ownership discounts for estate planning.

[23:22] Roth Conversions – The new legislation comes with several changes to the Roth conversions. Grant discusses the importance of the pro-rata rule, which you need to keep in mind if you’re planning to do a Roth conversion of pre-tax dollars.

[33:01] High-Income Earners - High-income earners will have to pay higher tax rates with the proposed tax bill. Grant scrutinizes the necessity of having fewer deductions to increase the income under the current tax rate.

Resources

Ep #95 - We Have a New Tax Bill [And It’s a Whopper]
growmoneybusiness.com/podcast/we-have-a-new-tax-bill-and-its-a-whopper

Episode #95: We Have a New Tax Bill [And It's a Whopper]

The House Ways & Means Committee recently released proposed tax reform legislation that brings major changes to the current levels of taxation, including reversals of several provisions introduced in the Tax Cuts and Jobs Act of 2017. We dedicated this episode to exploring what this new proposal includes and some of the key aspects of the proposal that may interest our listeners. Throughout the episode, Grant dives deep into proposed provisions related to retirement, new tax brackets, business tax, tax on cryptocurrency, estate planning, and more.

Show Notes

[02:19] Background and Progress – Grant starts the conversation with a brief review of what led to this new proposed piece of legislation, its current status, and the path to getting it signed into law.

[08:16] Roth IRA Conversions – The proposed tax bill calls to prohibit Roth IRA conversions on after-tax contributions, which has been a very convenient maneuver for tax planning. Grant shares his thoughts on what to keep in mind if you’re considering a Roth IRA conversion.

[12:35] High-Income Earners – The new tax bill also brings provisions to restrict high-income earners from doing any Roth IRA conversions starting from 2031. Grant dives into the reasoning behind this, why this provision is proposed to come into effect ten years from now, and some other restrictions that apply to high-income earners.

[16:27] Mandatory Distributions – How the proposed new legislation mandates taking money out of your retirement accounts if the total value of all your retirement accounts exceeds a given threshold.

[20:00] Tax Brackets and Rates – Grant dives into how the tax brackets and applicable tax rates are updated in the proposed legislation and proposed changes to taxation on capital gains.

[27:47] Ultra-high Income – Grant shares his take on the 3 percent surtax proposed to apply for people who make over $5 million.

[29:47] Surtax on Trusts – The proposed legislation also brings provisions to add a surtax on trusts. Grant talks about the proposed tax brackets and rates related to trusts and what you should keep in mind when considering estate planning.

[31:08] Business Tax – How the proposed tax bill affects businesses depending on the type of business entity and some of the planning opportunities that emerge with the new proposal.

[35:35] Business Income Deductions – The new proposed legislation reforms a set of provisions related to business deductions that are introduced in the Tax Cuts and Jobs Act of 2017. Grant explains some of these reforms and what business owners should keep in mind about tax planning.

[39:02] Cryptocurrency Assets – Some of the tax-related legislations that apply to other assets such as stocks and bonds do not currently apply to cryptocurrency assets. Grant shares his thoughts on how that may change in the new proposed tax bill and what crypto investors show know about the new tax bill.

[42:26] Estate Planning – Another provision in the proposed tax bill brings some significant changes to taxes related to estate planning. Grant dives into what these updates include and what you should keep in mind about taking advantage of the current thresholds and exemptions.

Resources

https://waysandmeans.house.gov/media-center/press-releases/chairman-neal-announces-additional-days-markup-build-back-better-act

Episode #94: 4 Tactics for Reducing Capital Gains Taxes on Appreciated Assets

Following the financial crisis of 2009, we entered one of the longest running bull markets in history. During this time, the Federal Reserve has injected a massive amount of US dollars into the monetary system, which has driven up the value of capital assets across the board. If you’re someone who holds equities or other assets at a substantial gain, you might be hesitant to sell them because of tax concerns. In today’s episode, Grant dives into four strategies you can use for exposure to appreciated assets and/or taxation when selling at a gain.

Show Notes

[02:29] Concentration and Risk – Why it’s risky to hold on to assets for too long and why it can be beneficial to repurpose your assets at the right time.

[07:57] Exchange Fund – Exchange funds can be used to diversify your holdings without triggering a taxable event. Grant shares his thoughts on the pros and cons of this method.

[13:28] Options – How to use stock options to reduce the risk of losing the value of your holdings during price fluctuations.

[20:05] Donor-advised Funds – Grant explores how donor-advised funds work and how investors can get tax benefits while contributing to charity.

[28:58] Charitable Remainder Trust – How charitable remainder trusts work, how they differ from donor-advised funds, and how to get started with them.

[34:38] Family & Insurance –Grant shares some ways you can reinvest the benefits of a charitable remainder trust to avoid financial stress within your family.

Resources

Donor-Advised Funds: irs.gov/charities-non-profits/charitable-organizations/donor-advised-funds

Convert Appreciated Assets into Income with a Charitable Remainder Trust: schwabcharitable.org/maximize-your-impact/develop-a-giving-strategy/align-your-giving-vehicles/charitable-remainder-trust

Episode #93: Managing Student Loans When You're Over 50 With Erik Kroll

Having outstanding student loans at the age of 50 versus earlier in your career will have a very different impact on your financial status. In today’s episode, we have a distinguished guest who specializes in helping people over the age of 50 to repay their student loans. Erik Kroll, Certified Financial Planner® and the owner of studentloansover50.com joins us to explain different strategies to manage your student loans, as well as how that approach changes with time.

Show Notes

[02:02] Student Loans Over 50 – We start the conversation with a brief review of Erik’s background, the work he’s doing as a financial planner, and what lead him into specializing in student loans.

[04:45] Age and Student Loans – The differences between having student loans as a fresh graduate versus having student loans at the age of 50 and how our life priorities in come into play.

[08:28] Forgiveness – Erik dives into important considerations for student loan forgiveness, including different options, qualification criteria, and taxation.

[15:12] Accumulating Debt – Common patterns for individuals over 50 with student loans, including Parent Plus loans, post-graduate education, and career changes.

[22:03] Double Consolidation – Erik explains the process of utilizing consolidation and other strategies to reduce monthly loan payments.

[29:10] Rehabilitation – The path to rehabilitation and qualifying for forgiveness after your loans have gone to debt collection.

[34:18] Student Loans Over 50 Playbook – Erik shares his thoughts on what led him to create his eBook and what readers can learn from it.

[37:11] Recent Developments – Erik shares his take on some of President Joe Biden’s recently proposed loan forgiveness provisions.

[41:07] Private Loans – The pros and cons to a private refinance, and important things to consider when making this decision.

Resources

Connect with Erik: 

LinkedIn: linkedin.com/in/erikkroll 
Website & Ebook: studentloansover50.com 

Past episodes on Student Loans: 

Episode #34: Why College Is So Expensive & How to Pay For It With Robert Farrington 
growmoneybusiness.com/podcast/why-college-is-so-expensive-with-robert-farrington

Episode #90: This is Exactly What to Do With Your Student Loans 
growmoneybusiness.com/podcast/this-is-exactly-what-to-do-with-your-student-loans

Episode #92: Money Funds & Where to Park Your Emergency Cash

You are probably already familiar with the concept of reserving an emergency fund for unexpected expenses. You may even already have one in place. However, deciding how much to reserve or where to keep this money can be tricky. We dedicated this episode to exploring why you should maintain an emergency fund, how to determine how large yours should be, and a few different savings options that can be safe & accessible, while still giving you the greatest possible returns.

Show Notes

[02:09] Managing Emergency Cash – Why it’s crucial for everyone to set aside some emergency funds and the importance of keeping your cash in the right place.

[05:23] How Much to Save – Grant shares a method of estimating how much you should save as an emergency fund based on your income, expenses, and risk tolerance.

[08:31] Too Much in Cash - Why it’s a better idea to have your emergency savings as investments and the ideal investment method for your funds.

[12:17] CD Ladder & High Yield Savings – Grant explains how using multiple Certificates of Deposits and high yield savings accounts can help you make the most out of your emergency cash.

[16:36] Money Market Mutual Funds – How money market mutual funds work, how they’re different from money market savings accounts, and some of the recent reforms related to money market mutual funds.

[24:14] Types of Money Market Funds – How the reforms led to the creation of two types of money market funds, the differences between the two types, and what you should keep in mind about parking your emergency cash in a money market fund.

[28:24] Government Funds – The feasibility of putting your emergency cash in government funds and the benefits of utilizing multiple methods of investments.

Resources

Money-Market Funds Buckled in Two Crises in a Row. Regulators Look to Fix Them Again: 
wsj.com/articles/money-market-funds-buckled-in-two-crises-in-a-row-regulators-look-to-fix-them-again-11626687001 

Firms Wary as Money-Market Rule Changes Studied After Covid-19 Run: 
wsj.com/articles/firms-wary-as-money-market-rule-changes-studied-after-covid-19-run-11630056602 

Episode #91: Why Mutual Fund Managers Are Converting to ETFs

One of the trends we’ve been recently observing is the tendency of mutual fund managers to convert their fund structure to Exchange-Traded Funds. Throughout this episode, Grant reviews the structures of mutual funds and ETFs, what makes them different from each other, the reasons why it makes sense for mutual fund managers to switch to ETFs, and what investors should keep in mind about mutual funds being converted to ETFs.

Show Notes

[01:43] Mutual Funds – Grant reviews how mutual funds are structured and how the mutual fund managers use funds from a group of investors to generate greater returns than what individual investors have the capacity to generate on their own.

[08:42] Limitations – Limitation of mutual funds and how these limitations may create unfavorable situations for mutual fund managers in some scenarios.

[13:50] Understanding ETFs – What led to the creation of Exchange-traded Funds, how they work, and the difference between mutual funds and ETFs.

[21:51] Benefits – Grant dives into the attractive characteristics and tax benefits of exchange-traded funds.

[25:00] Popularity of ETFs – Grant shares his thoughts on how ETFs became popular in the last decade and the trend of some mutual funds being converted to ETFs.

[30:00] Why Investors Should Care – How this trend of mutual fund managers converting their structure to ETFs affects the investors in terms of expenses, taxation, benefits, and what to do if their mutual funds are being converted.

Resources

Investor Bulletin: Mutual Fund Conversion to Exchange-Traded Fund (ETF):
investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/mutual-fund-conversion-exchange-traded-fund

Making the Switch: Turning a Mutual Fund into an Exchange-Traded Fund:
bbh.com/us/en/insights/investor-services-insights/making-the-switch-turning-a-mutual-fund-into-an-exchangetraded.html