In this episode on Certificates of Deposit (CDs) as investments, we talk about the nuanced decision-making involved in purchasing CDs and whether or not CDs are good investments, particularly in a rising interest rate environment, and we explain why interest rates are the only factor you need to consider.

Wealth creation isn't solely dependent on CD rates, and we need to consider the impact of inflation and interest rates to gain a comprehensive financial perspective. The episode also explores how government strategies to combat inflation by adjusting interest rates impact not only investors, but also shape the attractiveness of CDs as an investment option.

• In a rising interest rate environment, buying CDs may seem like a good idea but it depends on your needs and goals.
• Wealth isn't created by buying a CD based on a rate. It's created by understanding why the rate may not be all that important.
• Banks look at what is known as the federal funds rate, also known as a benchmark rate. This is the rate banks charge one another to borrow money overnight that's needed to maintain reserve requirements.
• Upstream in the decision making process is the Federal Open Market Committee or FOMC, who meet throughout the year to discuss and set monetary policy. Within these policies, rates are set and typically linked to inflation.
• When those rates are set, banks may adjust rates on loans, deposits and certificates of deposit. But just like any business, banks will adjust rates to compete in their market as they seek to cover their costs and maintain a profit.
• CDs specifically are an attractive tool for banks, because unlike a deposit account, CDs actually lock up customers with a maturity date, which gives banks better control of their cash flow. The higher rates draw in customers seeking to maximize their returns.
• Rates on CDs matter, but not as much when you factor in inflation and interest rates. If inflation is at 7% and interest rates are at 5%, the net is 2%. The same is true if inflation is at 0% and interest rates are at 2%. You have to look at both numbers to get a full picture.
• When you consider the gridlock within the housing market and the amount of debt our government holds, it's hard to believe rates can remain elevated over the long term. The government is desperately trying to combat inflation by raising rates.
• These higher rates not only impact consumers, but they also impact the government. According to the Congressional Budget Office, or CBO, in June of 2023, they projected that annual net interest costs on the federal debt would total $663 billion in 2023 and almost double over the next decade. Interest payments would total around $71 trillion over the next 30 years, taking up to 35% of all federal revenue by 2053.
• These numbers are impacted by interest rates and with lower rates come lower interest payments, so the government has reasons to see rates lower than they currently are.
• The question is: Does it make sense to lock in CD rates while rates are high? It depends. If you have money sitting in a bank account that you don't need and the CD rate is offering a higher rate than your savings, then it might be a good option.
• A good idea is to compare CD rates to other options like fixed annuities and money markets since they share some similarities but also have a few key differences that could make one choice better for your situation.
• Certificates of Deposit are offered by banks as a savings account that offers a fixed interest rate over a specified period of time, ranging from one month up to five years. They carry penalties if funds are removed before maturity, and they're FDIC insured up to $250,000.
• Fixed Rate annuities are issued by insurance companies and are financial products that offer a fixed interest rate over a specified period of time. Early withdrawals can incur a penalty, and interest earnings are tax deferred until you start taking distributions. The guarantees are backed by the claims paying ability of the insurance company and are insured by what is known as the State Guarantee Association.
• Money markets are funds issued by financial institutions that are backed by highly liquid short maturity investments. Maturities usually range from overnight to just under a year, and assets can be quickly converted to cash with minimal loss of value. They are generally considered more risky than a bank, CD or insurance company annuity, and the underlying investments include such things as treasury bills, commercial paper and CDs.
• While CDs offer the safety of fixed returns, they are not devoid of risks and limitations. It's essential to understand both the micro and macro economic factors that affect CD rates before diving in. 

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

“What to Know About How Banks Work”

The State Guaranty Association

References for this episode:

https://www.pbs.org/newshour/economy/americans-faith-in-banks-hit-low-after-failures-says-ap-norc-poll

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

https://fortune.com/recommends/banking/will-cd-rates-go-up

https://www.usbank.com/investing/financial-perspectives/market-news/federal-reserve-tapering-asset-purchases.html

https://www.pgpf.org/analysis/2023/07/higher-interest-rates-will-raise-interest-costs-on-the-national-debt

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

In this episode, we delve into the link between overall retirement quality and the confidence you have in your financial plan. We emphasize how a well-designed retirement strategy tailored to your needs, not solely reliant on market performance, is pivotal for boosting confidence and making your retirement plan a reality you can rely on.

Addressing common fears, exploring emotional extremes, and understanding the evolving landscape of retirement planning, will help you discover the significance of income-focused strategies and a diversified asset approach in building confidence in your retirement plan.

• When it comes to retirement, your quality of life in these golden years is often predicated on the level of confidence you have regarding your situation. A poorly-designed retirement plan can often cause emotional confusion, which leaves you feeling insecure and lacking confidence.
• Confidence is typically at its peak when a plan is optimized and is designed around meeting the needs of the client and not relying entirely on market performance.
• Retirement confidence is in direct correlation with how well your plan is designed to manage your exposure to risk and its ability to fulfill cash flow requirements. A plan built on hope and optimism can lead to very emotional times when the market doesn’t work out the way you’d hoped.
• Many client conversations relating to retirement are often centered around insecurities the client is working through.
• Common fears include running out of money before running out of life, market crashes, having a health crisis, missing opportunities, or simply making mistakes.
• There are typically two emotional extremes, no confidence or complete overconfidence.
• A lack of confidence leads to avoidance behavior and avoiding decisions, which often makes a person vulnerable to the very things they are afraid of.
• Overconfidence leads people to underestimate their vulnerabilities.
• Being skittish or practicing decision avoidance or fearing the idea of making a bad decision are all confidence killers, and the ultimate irony of this behavior is actually preventing the solution from being implemented, which can turn your fears into a reality.
• Confidence is about being able to rely on your retirement plan to do what you need it to do. If your retirement plan is anchored to the stock market, your confidence level relies entirely on the performance of the market.
• Most people’s retirement plans involve a stock market portfolio they plan to liquidate over time, Social Security, and a pension, but that’s really just the start.
• This paradigm seems to be rooted in watching our parents or grandparents work for decades in the same job and then retire with their pensions and Social Security benefits. However, circumstances have changed, and what worked back then isn’t going to cut it now.
• Pensions and company-provided retirement plans have been on the decline since the 1980’s. Baby Boomers started putting their money into retirement plans starting in the 90’s, which caused a growing stock market. 2016 was the first year that Baby Boomers started taking out money from those accounts.
• Those who ran the markets up are now the same group that is putting selling pressure on the markets, but there are other influences as well: government spending and policy, Fed policy, pandemics, interest rates, inflation, and more.
• When you lack certainty in the market, algorithms and a 24/7 news cycle can exacerbate the situation.
• There are two fundamental things that can have a profound impact on your retirement confidence. First is solving for income using income products. The foundation of a retirement plan is to generate consistent income, and unfortunately, consistency is not synonymous with the stock market.
• Separating your assets between long-term growth in public investments and income-generating private and fixed assets is a crucial component of being confident in your overall retirement plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

Brian's article - ‘Five Common Retirement Mistakes and How to Avoid Them’

References for this episode:

https://www.dol.gov/general/topic/retirement/erisa

https://www.thestreet.com/personal-finance/baby-boomers-could-cause-market-crash-12117996

https://www.forbes.com/sites/lizfrazierpeck/2021/02/11/the-coronavirus-crash-of-2020-and-the-investing-lesson-it-taught-us/?sh=17701bd846cf

https://www.marketwatch.com/story/u-s-stocks-would-be-much-lower-if-it-wasnt-for-excessive-government-spending-morgan-stanleys-mike-wilson-says-1b8e65d2

https://www.nasdaq.com/articles/what-does-the-fed-do-and-how-does-it-impact-the-stock-market

https://thefga.org/blog/president-biden-is-wrong-about-esg-heres-why/?gclid=CjwKCAjwvfmoBhAwEiwAG2tqzIhc3F2QbmLEygcbkIg9eV7bhXUz3dzXhO1A_hTNE3hNsMbTug59txoCPcwQAvD_BwE

https://centerpointsecurities.com/stock-market-algorithms/#:~:text=The%20main%20thing%20traders%20need,because%20you%20may%20lose%20fast.

https://www.statista.com/statistics/191077/inflation-rate-in-the-usa-since-1990

https://www.bankrate.com/banking/cds/historical-cd-interest-rates

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

Brian Skrobonja breaks down the repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). 

He covers how retirees can strategically use their lump sum to create long-term financial stability, the impact of the repeal on spousal and survivor benefits, and the broader financial strain on the Social Security system. 

Tune in to hear essential insights into how to adapt your financial strategy and take full advantage of this game-changing reform.

• Brian starts by explaining why the repeal of the WEP and the GPO is a big deal for retirees.
• A good example of how this repeal affects retirees is higher Social Security benefits--retirees can now reduce reliance on personal savings and investment withdrawals.
• Brian talks about the impact on spousal and survivor benefits. The repeal eliminates the harsh reductions that often left surviving spouses with little to no income.
• Brian explains why retirees need a strategy for their lump sum payments. Instead of spending it impulsively, consider reinvesting in assets that create long-term financial security.
• How the repeal changes retirement planning for government workers. Formerly penalized for having a pension, they can now receive full Social Security benefits without reductions.
• Brian highlights why this repeal adds financial strain to the Social Security system. The Congressional Budget Office projects billions in additional costs, worsening the program’s long-term stability.
• Brian reveals the biggest challenge Social Security now faces.
• Recalculating benefits for millions of retirees while managing retroactive payments creates an administrative nightmare for the Social Security office.
• Brian highlights the fairness issue with this change. Government employees with brief private-sector work history may now receive benefits exceeding lifelong private-sector workers with similar earnings.
• How younger workers may bear the financial burden of this repeal. Without a payroll tax increase, the long-term cost shifts onto the next generation of retirees.
• Understand how to make the most of this new opportunity. With higher benefits, retirees should rethink their tax strategy, pension withdrawals, and investment plans.
• Brian shares the best way to maximize Social Security benefits.
• Coordinating Social Security payments with pension income, investment distributions, and annuities can optimize cash flow for you in retirement.
• Brian explains the tax implications of higher Social Security benefits and how increased payments could push retirees into higher tax brackets.
• According to Brian, this change creates new financial planning opportunities. Retirees can explore strategies like Roth conversions or delaying withdrawals to reduce tax burdens.
• Brian explains how ignoring these changes could cost you and potentially derail your retirement.
• The repeal is a game changer and failing to adapt your financial strategy means missing out on valuable benefits or paying more in taxes. 

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

References for this episode:

https://www.nea.org/resource-library/faq-social-security-fairness-act#:~:text=Impacted%20individuals%20will%20see%20an%20estimated%20average%20increase%20of%20%24360,vary%20based%20on%20employment%20history

https://hayes.house.gov/2025/1/social-security-fairness-act-legislation-co-sponsored-by-hayes-signed-into-law-by-president-biden#:~:text=Additionally%2C%20the%20CBO%20estimates%20that,for%20380%2C000%20impacted%20spouses%20and

https://www.cbpp.org/research/social-security/repealing-social-securitys-wep-and-gpo-rules-would-be-misguided

https://www.cbo.gov/publication/60392#:~:text=In%20CBO's%20projections%2C%20the%20balance,the%20balance%20of%20the%20Disability

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Our firm is not endorsed by or affiliated with any government agency.

The complexity of Social Security calculations can cause some confusion around when someone eligible should file and claim their benefit. There are a lot of variables to consider and acronyms to decipher that can make Social Security feel like a confusing hedge maze.

Let’s cut through some of the noise and clarify some of the most pressing questions around Social Security benefits and what questions you need to consider to determine what’s best for you and your family.

• Social Security has many layers, and the concept of eligibility can be pretty complex. It's not always clear when and how someone should begin taking their benefits because being eligible doesn't necessarily mean you should turn that benefit on.
• Social Security benefits can be turned on as early as age 62. Each year the benefit is delayed, you receive what is called a delayed retirement credit or DRC. These DRCs guarantee an automatic 8% increase in your Social Security benefit every year you delay up to age 70.
• There is also your full retirement age. This is the age when you are eligible to receive the full benefit without any offset for having earned income. Earned income being income from employment, which is different from income received from investments, pensions or annuities.
• For those born in 1960, or later, your FRA is age 67. Benefits are calculated by the Social Security Administration by taking 35 years of earnings that are indexed for inflation. Any years you didn’t work are counted as a zero in your average earnings calculation.
• These annual amounts are then totaled and divided by four and 20 months to arrive at the monthly figure known as your average indexed monthly earning. This number is different from your benefit amount. The SSA then applies a formula to that number which determines your primary insurance amount or PIA and this is your monthly Social Security benefit.
• If you choose to take your benefit before your FRA while employed, there's an offset that can significantly reduce the benefit if your income exceeds $21,240 in 2023. This reduction is $1 for every $2 of earned income over the limit. In the year you reach your FRA, the limit increases to $56,520 in 2023, with a benefit reduction of $1 for every $3 of earned income over the limit.
• After you've reached your FRA there's no earning limits and you receive the full benefit with no income offsets.
• Provisional income comes into play after your benefits are activated. Your provisional income is calculated by taking your adjusted gross income plus half of your Social Security benefit.
• If that total is less than $25,000, your Social Security benefit is not subject to federal tax. If it is  above 25,000, but below 34,000, 50% of the benefit is taxed, and if it's above 34,000, 85% of the benefit is taxed.
• If you're a government employee, there's something called a Windfall Elimination Provision, or WEP. And there's also a Government Pension Offset, or GPO.
• There are three common conversations we have with clients when it comes to Social Security. The first thing is determining the breakeven point.
• One method for deciding when to take Social Security benefits involves calculating the breakeven point, this is the future point in time when the value of one option equals that of another.
• For example, if your FRA benefit is $2,000 a month, and $1,400 at age 62, there's a $600 a month difference. When compared to waiting the five years and taking the full amount, the breakeven point would be 11.6 years.
• Something else to keep in mind is that by taking a benefit early, you reduce the amount of spousal benefit made available since the benefit in and of itself has been reduced and this could be an important consideration.
• The second consideration relates to one's health and longevity. If you don’t expect to live past that breakeven point, taking the benefit early might make more sense.
• From this perspective, it could be a win-win situation if they start receiving benefits early and they live longer than expected because the payments continue.
• We can’t know our lifespan for certain, but if you're in poor health, taking benefits early might be a reasonable option.
• The third consideration involves a person's retirement income requirement.
• Many clients we work with see Social Security simply as a piece of the retirement income strategy, and aren't necessarily concerned with breakeven points as much as they are with maximizing their assets and the resources. Many clients opt to turn their Social Security benefits on instead of tapping into their assets in order to maintain growth.
• Using assets to generate income in retirement also comes with variables that are hard to predict, like the conditions of the stock market and economic policy. Social Security, in comparison, is stable and easy to predict.
• Figuring out your retirement income requires careful planning, which is why it’s crucial to work with a professional that understands Social Security and its role in your retirement plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Common Sense: YOUR Guide to Making Smart Choices with YOUR Money by Brian Skrobonja

SSA.gov

References for this episode:

SSA.gov/benefits/retirement/planner/agereduction.html

SSA.gov/benefits/retirement/planner/delayret.html

SSA.gov/benefits/retirement/planner/agereduction.html

SSA.gov/benefits/retirement/planner/whileworking.html

SSA.gov/benefits/retirement/planner/whileworking.html

SSA.gov/benefits/retirement/planner/taxes.html

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered  individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be  rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in  place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you  away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or  lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the  issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole  basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no  statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and  opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

If you tune into social media, there are a lot of influencers and gurus peddling one-size-fits-all financial advice and unfortunately plenty of investors base their strategies on what these people recommend.

Find out why basing your investment decisions on what’s trending on TikTok is short sighted and discover the seven indispensable steps of building wealth that are the most common among our most successful clients.

• Conventional wisdom such as paying off mortgages, quickly maxing out 401(k)'s or buying only Term Life insurance can be short sighted.
• Wealth isn't created by following rules of thumb, random one-size-fits-all fixes, or chasing trendy financial tips. Wealth is created by developing a custom-tailored strategy that facilitates wealth creation and prepares you for the future.
• The wealthiest people aren't doing the same things as the other 99%.
• Avoid rushing and applying random tidbits of information without first creating a comprehensive wealth strategy. We all have to take a long-term strategic view of wealth creation.
• There are seven key steps in building wealth that are common amongst all of our most successful clients.
• The first step is understanding cash flow.
  • Cash Flow isn't about monthly budgeting. It's a 12-month roadmap that outlines where your money will go including savings, investments, and day-to-day expenses.
  • Effective cash flow management is about abundance and a focus on wealth creation.
  • Budgeting operates from scarcity and measures success by such things as paying off debt or simply making ends meet. Wealth doesn't just magically form out of scarcity.
• Step two is really understanding your investment risk tolerance.
  • Many investors carry far too much risk for their stated tolerance levels but have really no way of gauging what risks they're carrying.
  • It's crucial to know where you fall on the risk spectrum and to work with a professional to help you tailor your investment strategy.
  • Complete the questionnaire on our website to discover your risk tolerance and know where to start that conversation.
• Step three is to learn your tax allocation.
  • Knowing how to help mitigate tax liabilities is an essential aspect of building and keeping wealth.
  • Tax deferral methods like 401 K's can be useful in some situations, they are not what we would consider comprehensive tax strategies. A deferral is not a savings.
  • Knowing how to allocate assets to mitigate tax liabilities requires an understanding of your entire financial picture.
  • A professional trio of maybe a certified public accountant, CPA, certified private wealth advisor, CPW, or a tax attorney, is essential for making the most of the opportunities available to you.
• Step four is to understand investment verticals.
  • The more public market investments that are acquired such as stocks, bonds and mutual funds, the deeper the portfolio vertically grows, but adding more of the same to your portfolio doesn't necessarily mitigate the exposure to the risk you're trying to diversify away from.
  • Horizontal opportunities are outside of the same vertical such as real estate businesses, private equity, and life insurance annuities, and they don't share in the same risk pools that each vertical may be exposed to.
  • Effectively diversifying reduces the risk in a portfolio overall and forms a stable foundation to build on.
  • Don't put all your eggs into one vertical basket.
• Step five is establishing multiple streams of income.
  • Relying on a single source of income, like your job or a single investment is a risky proposition.
  • Businesses, royalties, passive income investments, or other consulting or freelance opportunities are all ways to create more than one stream of income.
  • More sources of income mean your financial situation is more robust during economic storms and you have more capacity to take advantage of opportunities.
• Number six is to adopt financial delegation.
  • There's usually an element of cost and trust when managing financial decisions in a DIY fashion. There comes a tipping point when the perceived savings of doing things on your own becomes an opportunity cost.
  • The complexities involved with wealth management require specialized support from professionals.
  • The cost of working with a professional can be seen as an investment when it opens up new opportunities and it allows you to focus on your strengths.
  • Delegate specific financial tasks to professionals like accountants, lawyers, and financial planners. This allows you to focus your time and effort on enjoying the benefits of having the help and the division of labor helps ensure that all aspects of your financial life are managed optimally.
• Step seven is finding your purpose.
  • Scroll social media and you'll find that there are countless examples of miserable wealthy people.
  • Money certainly makes things easier and helps you afford some privileged experiences but happiness is derived from inside of ourselves. You'll never have enough money and there's always something more to achieve.
  • Answering the question of what you would do or commit your life to if money was not the motivation can offer insight into what you feel like your purpose is.
• Building wealth is not about quick fixes or following the herd. It's about strategic informed decision making that requires an opportunity that looks at cashflow, risk tolerance, tax allocation, diverse investments, multiple income streams, financial delegation, and purpose.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources - Free Resources To Help You Protect Your Financial Future

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered  individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be  rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in  place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you  away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or  lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the  issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole  basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no  statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and  opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

Most business owners come into the financial game as the quarterback. They’re telling their CPA and financial advisor what they need and when they need it instead of working as a team to plan out a cohesive strategy.

This needs to change.

Listen to the latest episode of the podcast to learn why your business needs a financial team that works together, and how to incorporate tax planning strategies into your operation, so you’re not overpaying taxes and maximizing the odds of your long-term success.

• Tanner is a CPA with 22 years of experience in the tax world. Born and raised in Utah, Tanner was a natural mathematician and considered joining the FBI as an accountant but didn’t end up going that route. He spent 12 years with five different CPA firms, discovering what he liked and didn’t like, before venturing out on his own.
• The Trump tax cuts expire in 2025 and a lot of professionals are anticipating higher tax rates in the near future. One tax benefit that is likely to expire is the QBR deduction for small business owners.
• Every client is different, but one piece of advice that every business owner can benefit from is choosing the right entity. A lot will depend on what your lifestyle looks like and what you are already paying for.
• Tax deductions are great but finding tax credits is even better. A good example is the Research and Development tax credit, which can go back as many as three years.
• Most people wait until there is an immediate need to contact their CPA, but that leaves a lot of opportunity on the table.
• Tax planning is very different from tax preparation. Tax planning occurs throughout the year and is a more proactive approach that many don’t realize is an option.
• The relationship you have with your CPA is crucial and can play a pivotal role during tax season. With a good relationship you also get the benefit of your CPA’s experience in other industries. Taxes are changing all the time, so it helps to have someone you can reach out to throughout the year.
• Having a financial plan should incorporate tax mitigation strategies. You, your financial planner, your attorney, and your CPA should be working as a team to manage your business finances. The more they can communicate and work together, the more effective they can be.
• There are a lot of inefficiencies in your business by having your financial plan and tax plan operating in separate silos. Individually, everyone does their job well, but when working together they can really shine.
• Typically, there’s a three-year window on filing for a refund claim. If you feel like your current CPA may not be bringing all the opportunities to your attention, it might benefit you to get a second opinion.
• If you’re planning on selling your business, there are a few things to keep in mind. Is it a stock sale or an asset sale? Do you have clean and accurate records? Plan your sale as far out in advance as you can to make sure you have all that you need for a smooth transition.
• One of the most underrated and overlooked aspects of tax planning is your bookkeeping for your businesses. Monthly bookkeeping makes it a lot easier to plan and stay ahead of the finances and taxes compared to waiting until January or April to figure out what you have to do.
• If you make a lot of money, you're going to pay taxes, and that's just the way it is. But when it's a surprise, that's where the problem comes into play.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

MTAconsulting.net

Brian Skrobonja and Tanner Adams are not affiliated. There is no compensation exchanged between Brian Skrobonja and Tanner Adams.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered  individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be  rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in  place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you  away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or  lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the  issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole  basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no  statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and  opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

Brian Skrobonja discusses the crucial role a well-defined investing strategy plays in making smarter financial decisions.

He covers ways to create an investing framework you can follow, why blindly taking investing risks is a recipe for disaster, and ways to navigate financial decisions with confidence and clarity.

• Brian starts by highlighting the crucial role a well-defined investing framework plays in securing your financial future.
• He highlights a common misconception about retirement: many people think retirement is the final destination. In reality, it’s just a transition point, and how you prepare for this phase can shape your financial future.
• Brian explains how having a defined strategy can simplify your retirement journey and help ensure a smooth transition.
• Brian compares retirement to halftime in a game: it's a moment to reassess, adjust your strategy, and return to the field with more clarity.
• Do you have a system for achieving your financial goals? Brian encourages you to create a framework that delivers consistent, predictable results.
• Many people misunderstand what it takes to build an effective investing system. Brian stresses that reshaping your thinking and approach is key to achieving larger financial goals and breaking free from outdated processes.
• The multitude of paths available can make financial decision-making feel overwhelming. Brian’s advice: to find success, you must be open to learning and reshaping your thinking about investing.
• Learn how to assess and manage risk effectively and align your investments with your goals.
• Understand that quantifying risk can be challenging because the outcome of an investment may not be clear until much later.
• Second-generation business owners often struggle with newfound wealth and responsibilities. Brian shares insights on how to overcome these challenges and ways to help secure your financial legacy.
• According to Brian, a solid investing formula can help you navigate risk and enhance your financial outcomes.
• How do you define risk? For Brian, your level of education and understanding shapes your personal risk tolerance--being aware of this helps you make more informed decisions.
• The true level of risk you’re carrying when investing can be difficult to assess. Understanding your financial situation and making educated choices helps reduce uncertainty.
• Brian reveals how having a clear plan empowers you to make smarter decisions and manage your portfolio more effectively.
• Brian reveals why a solid investing formula should be built on a checklist focused on proven rules rather than past market performance or others’ opinions.
• If you don’t have a framework for making financial decisions, now is the time to create one.
• Building wealth is not about random decisions or chance—it’s about following a well-designed formula.
• Trying to prepare a financial plan without a clear system leads to wasted time and unpredictable results. Brian’s recommended approach ensures you follow a formula that drives consistent and measurable success.
• Many people misunderstand the concept of diversification. Brian explains that it’s not just about picking stocks—it’s about creating a broader asset allocation framework that works for your unique goals.
• Hoping for a good future is much different than mapping out your future.
• Brian shows how having a clear strategy ensures you make the right decisions at every stage of your financial journey.
• It’s not enough to simply create a framework—you must commit to following it. Brian explains how dedication to your strategy is the key to achieving the financial results you desire.

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

How to Make a Few Billion Dollars by Brad Jacobs

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.  Actual future results and trends may differ materially from what is forecast.

Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. 

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.  This show is intended for informational purposes only.  It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.  

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. 

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency. 

The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.

Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets. Endowment funds are managed for institutions not individuals. An endowment-like strategy is not an endowment or an endowment fund.

Entrepreneurs by nature are continuously occupied with running their business and wearing multiple hats throughout the day just to keep things running smoothly. Unfortunately, that leads entrepreneurs into making a number of common mistakes.

Mistakes that damage the long-term success and potential of their business.

Listen to the latest episode of the podcast to learn about the four most common financial mistakes entrepreneurs make that put the future of their business at risk, and how you can avoid them.

• Many entrepreneurs find themselves underserved when it comes to financial planning and often rely too heavily on their CPA for financial advice.
• One common mistake entrepreneurs make is assuming that as long as they meet payroll, stay current on taxes and receive payments from customers, their business is financially healthy.
• The problem is CPAs primarily focus on looking backwards and reviewing the previous year or quarter to meet tax filing deadlines, instead of looking forward and making strategic plans for the following year.
• Proper financial planning can help your business reduce its tax liability and increase its profitability.
• Another common mistake is entrepreneurs take the profit of their business as income, which may not be the most efficient method of distribution. Proper planning helps find the balance between income and profit.
• Financial planning can also help you determine whether your business structure is still appropriate for where you are or if it needs to evolve.
• Financial planning also helps mitigate risk, and there are three major risks that every business faces: death, disability, and divorce. Any of these risks becoming a reality can seriously derail a business and its long-term potential.
• Entrepreneurs tend to visualize positive outcomes rather than seriously considering what could go wrong and how they should address those potential problems. Having a financial plan can include agreements and other triggering events that can help facilitate a smooth outcome when facing such events.
• Another common mistake made by business owners is treating the business exit as merely a transaction rather than a transition. Exiting the business involves more than just the sale itself; it requires planning for life after the exit.
• Owners frequently overvalue their business leading to unrealistic expectations regarding the outcome of the sale. Many business owners also underestimate the time and effort required to prepare for a successful exit.
• Preparation for a sale can take years of planning, if done right, and should be incorporated into an overall financial planning process.
• Another common mistake is succumbing to the pressure of spending money to avoid tax liabilities. While tax planning is essential, it should not be the sole, driving factor behind financial decisions.
• FOMO (fear of missing out) can also lead to poor cash flow management, where entrepreneurs may be tempted to seize every opportunity that comes their way without considering its compatibility with their business vision.
• By having a well defined cash flow plan, entrepreneurs can allocate resources efficiently, reduce financial stress, and build wealth inside and outside of their business while helping to maintain stability during both prosperous and challenging times.
• A cash flow strategy is an integral part of an overall financial plan and acts as a roadmap, guiding financial decisions and helping you make the most of the cash flow.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

BrianSkrobonja.com/Resources

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered  individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be  rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in  place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you  away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or  lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the  issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole  basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no  statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and  opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.

High income professionals face a unique situation when it comes to their retirement. You have the dual challenge of having your money tied up in your investments and also looming tax burdens once you retire.

Listen to the latest episode of the podcast to learn about a Specially Designed Life Insurance policy, also known as a life insurance retirement plan, and how it could be the wealth preservation tool you’ve been looking for.

• A high cash value life insurance policy can help facilitate tax-advantaged growth that standard retirement accounts may not be able to match.
• Many professionals spend a considerable amount of effort accumulating wealth for most of their life only to find themselves in a bind: their money is inaccessible with looming tax burdens.
• High Income professionals often face a dual tax burden where their current high income places them in a high tax bracket, reducing the net income they have available for investment. Meanwhile, the money you've diligently saved in your retirement plan will be subjected to potentially hefty taxes upon withdrawal later in life.
• Retirement accounts are great vehicles for long-term savings, but they lack flexibility, and you're penalized for early withdrawals leaving you without a readily available source of funds for unexpected opportunities or emergencies.
• For high income individuals grappling with these issues, a Specially Designed Life Insurance policy may be the answer.
• A Specially Designed Life Insurance (SDLI) policy utilizes a high cash value life insurance policy to facilitate tax-advantaged growth and offer flexibility that standard retirement accounts simply can't match.
• Cash value builds over time in the policy, growing in a tax-deferred basis mirroring the benefits of a retirement account, yet the cash value can be accessed at any time through a non-recognition policy loan.
• If properly managed, these policy loans have flexibility and are not required to be repaid during your lifetime and can be simply deducted from the death benefit or cash surrender value when the policy pays out.
• The SDLI strategy enables you to tap into your wealth when needed, providing the liquidity to seize investment opportunities or meet unexpected expenses.
• The policy loans do have an interest charged on them, but well-designed policies provide an opportunity to offset the interest.
• Not all life insurance policies offer the features necessary to execute the strategy effectively. It's a delicate balance that must be carefully managed and is best done with the help of a professional.
• This strategic tool offers several other key advantages for wealth management, asset protection and estate planning.
• In many jurisdictions, life insurance policies are protected from creditors providing a shield for your assets.
• Life insurance can also play a crucial role in balancing out an estate amongst surviving family members.
• A life insurance policy can also provide immediate liquidity to family members or business partners upon a death, ensuring the continuity of a business or farm without the need to sell off assets.
• Life insurance proceeds can also provide a tax free inheritance to your beneficiaries, helping to preserve your legacy.
• A common pushback against using life insurance as an accumulation vehicle is the perception that it is expensive and takes a long time to accumulate substantial cash values. This is because most common policies are focused on maximizing a death benefit instead of rapid cash value accumulation.
• While there is an undeniable cost associated with a special desire life insurance policy, it's crucial to consider this expense in contrast to the potential tax liabilities.
• Retirement account distributions are generally taxed as ordinary income. For a high income individual, this can be losing a substantial chunk of your retirement savings to taxes.
• In many cases, the cost of a Specially Designed Life Insurance policy could be a mere fraction of what the tax liabilities may be on an investment growth over time.
• The true cost of these policies become apparent only when considering the full financial picture, including current and future tax burdens, access to cash and long-term wealth accumulation.
• A Specially Designed Life Insurance policy is not a catch-all solution but rather a tool within the context of a comprehensive wealth management plan.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

BuildBanking.com

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™️, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™️ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC. Any references to protection, safety or guarantees, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Skrobonja Insurance Services, LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.

The concept of investing is often associated only with money and the pursuit of wealth, but this Annuities are a popular thing these days… why is that the case?

And are they a valid option for those planning their retirement?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja explores the world of annuities – from what they are and the three types of annuities all the way to four common myths, Brian’s “unpopular opinion” and why annuities and investments aren’t in competition.

Plus, Brian reveals what he considers the best way to accumulate wealth.

• You need to keep in mind that there are plenty of unknown factors in your life, such as how long you’re going to live, inflation, how the market is performing, healthcare costs, and economic shifts.
• Brian believes that the uncertainty surrounding retirement is why annuities are so popular.
• Annuities are a way to transfer risk over to an insurance company and provide some sense of safety for the future, says Brian.
• According to Statista, the risk of running out of money is a real concern for many retirees, with an estimated $2.53 trillion of retirement assets held inside of annuities.
• Brian breaks down the three types of annuities – variable, fixed-indexed, and fixed-rate – and shares a common misconception about income benefits.
• In his own words, Brian has an “unpopular” stance: he’s a believer in the fact that whether or not someone should use an annuity depends on their situation.
• Brian touches upon when it makes sense for you to use an annuity and when it doesn’t.
• “Capital appreciation over time” is what Brian considers the best way to accumulate wealth.
• Brian explains that annuities and investments aren’t in competition, because they both have a place at different times in someone’s life, depending on their needs.
• Brian goes over four common annuity-related myths.

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

Statista.com

Brian’s article: My 5-Minute Retirement Plan

Brian’s article: The Financial Fiduciary Standard Explained

Brian's article: What to Do With Cash in a Low Interest Rate Environment

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered  individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be  rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in  place.

Skrobonja Financial Group, LLC provides links for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you  away from our website. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites. Any references to protection, safety or  lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the  issuing carrier.

This is intended for informational purposes only. It is not intended to be used as the sole  basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer, and no  statement made on this site shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and  opinions contained here in provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Brian Skrobonja is stated or implied. The awards, accolades and appearances are not representative of any one client’s experience and is not indicative of future performance. Each of these awards have set criteria for their nominations and eligibility requirements. “Best Wealth Managers” and “Future 50 Company” are annual surveys conducted by Small Business Monthly. The winner is chosen by an online vote of the general public and no specific criteria is utilized to determine the winner other than number of votes. Some voters may not be clients of Brian Skrobonja and Skrobonja Financial Group. These awards are not representative of any one client’s experience and is not indicative of future performance.