May 11, 2018
We are going to talk about a double edged sword, some of the
wisdom of Will Rogers, and interesting financial segments along
with your email questions.
Main Questions Asked:
- How can I protect my gains and minimize taxes?
- How to put an inheritance to the best use?
- How do I reduce risk, but maximize gains?
Key Lessons Learned:
The Financial Double Edged Sword
- You want to sell stock to take advantage of growth, but you
don’t want to deal with taxes. We are due for a market correction
and want to take some money off of the table. To alleviate capital
gains keep the money in your brokerage account, but sell some of
the stocks in your 401k or IRA to change your asset allocation. You
could also harvest some losses to offset gains.
- You just received a big inheritance, but you are also mourning
the loss of a loved one. You have to be prudent with the money you
have inherited. You want to get good advice and honor the money
being left to you.
- You want to put money in a Roth to grow tax free, but you also
want to put money in a traditional IRA. It’s an individual decision
before you can be advised one way or another. Sometimes it depends
on the flexibility you may want in the future.
- You want to reduce the risk in your portfolio, but you don’t
want to miss out on potential growth. People want to reduce risk,
but can miss a gain and leave money on the table. Asset allocation
and where your personal goals and needs are the key. There are also
tools that can help. You need to protect against the downside with
your asset allocation.
Wisdom of Will Rogers
- There are three kinds of men. The one that learns by reading.
The few who learn by observation. The rest of them have to pee on
the electric fence for themselves.
- Some people are more academic and need to read and research
things. Other’s like to learn by observation either personal or
other people’s behavior. Make a blind experiment not knowing what
the results will be.
- The only difference between death and taxes is that death
doesn’t get worse every time Congress meets.
- We just had a big tax overhaul and it might take three or four
years to find out who is right or wrong about the tax plan being
good. This comment by Will Rogers still rings true today. We have
to take control over our own financial future.
- When you’re satisfied your successful for that’s all there is
to success is satisfaction.
- Personal satisfaction, peace of mind, and happiness all have
nothing to do with money. Don’t try to chase a certain net worth.
Look at what matters in life. Realize what is really
- It’s not what you pay a man, but what he cost you that
- One of the greatest investments I can make in my business is
employees. Looking at employees as costs is a bad road to go
- I’m not as concerned on the return on my money as I am on the
return of my money.
- This is perfect advice if you are over 55 years old. You want
to make sure you preserve your principal with a reasonable rate of
return. The priority should be protection of your principle with a
reasonable rate of return.
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!