Finance

If you’re like many Americans, the bulk of your retirement savings likely sits in tax-deferred accounts like 401(k)s and IRAs. But when tax rates rise—as many experts predict they will—how much of your hard-earned money will you actually get to keep?

With the national debt growing at an unsustainable pace and entitlement programs placing increasing pressure on the federal budget, significant tax increases appear inevitable.

In this episode, we’re honored to welcome David McKnight—nationally renowned tax expert and bestselling author of The Power of Zero, Tax-Free Income for Life, and The Guru Gap. David draws from years of experience and collaboration with leading tax authorities, including insights from his documentary film The Power of Zero: The Tax Train Is Coming.

America has made financial promises it simply can’t keep. With the national debt projected to hit $62 trillion by 2034, no combination of tax hikes or spending cuts appears capable of reversing the course. The “tax train” is coming—and retirement savers must prepare.

One of the most powerful tools for protecting your retirement income is converting tax-deferred accounts to Roth IRAs. Doing so—particularly within favorable brackets like the 24%—can dramatically reduce your long-term tax exposure. But it must be done strategically to avoid unnecessary tax consequences.

In this episode, we explore:

As an independent & full-service financial planning firm, Wise Wealth gives truly objective advice. If you want a retirement plan tailored to your goals and your future, we’re here to help.

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In this episode, Stephen Stricklin, Founder & President of Wise Wealth, is joined by Paul Brock, Vice President. They discuss the importance of having a comprehensive financial plan, focusing on key components such as a liquid plan, an income plan, and a growth plan.

One major risk for retirees is long-term care, which should always be addressed in any financial plan. Additionally, the concept of short-term care is becoming increasingly relevant in retirement planning.

Paul Brock, an insurance expert with over 21 years of experience, explains the differences between short-term and long-term care. Short-term care typically lasts up to a year, while long-term care extends beyond that, with each serving different healthcare needs. Despite Medicare covering a range of healthcare services, it does not cover either long-term or short-term care, making it crucial to understand these distinctions when planning for retirement.

Tune in to the full episode and learn more about:

For more information on this topic or to explore any other questions you may have, contact the Wise Wealth team at 816.246.WISE (9473) or by email at [email protected].

Visit us at www.wisewealth.com.

In this episode of The Blockchain Breakdown: Understanding Cryptocurrency, we explore the importance of understanding digital assets and cryptocurrency as they become mainstream.

Digital assets, including cryptocurrencies, are emerging as a new asset class with unique risks and opportunities for diversification. Tune in as we discuss key terms such as Bitcoin, tokens, NFTs, and share our insights on how to incorporate digital assets into a well-diversified portfolio

While investing in digital assets, like Bitcoin, can add significant potential upside to a portfolio, it should be a small allocation (around 1%) using only funds set aside for high risk. It’s also important to treat it as a long-term investment (5+ years) and be prepared for the possibility of losses.

The key to successful investing in Bitcoin or other cryptocurrencies is having time and discipline, rather than acting on fear or greed. A well-balanced, thoughtful strategy with small allocations (1-5%) and a long-term horizon (5+ years) is essential. Ultimately, investing should provide peace of mind, fit within your broader financial plan, and free you to focus on life’s most important priorities.

If you want to learn more about Wise Wealth and our Retirement Freedom Plan™ feel free to contact our team. One of our experience financial advisors will be happy to answer any questions you have!

Contact Us:

www.wisewealth.com/contact-us

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Today, we’re joined by Starla Hendricks, Vice President of Intermediary Sales at KEEP by Stone Castle. With over 30 years in financial services, Starla works closely with RIAs and wealth managers to help them navigate the cash and deposit landscape, providing solutions like KEEP—a high-yield, FDIC-insured cash account that offers protection and a better rate than typical savings accounts at local banks.

We’re excited to dive into how KEEP can provide clients with a secure, higher-yield alternative to traditional banking.

• KEEP by Stone Castle offers a unique advantage by providing up to $100 million in FDIC insurance on a single account, compared to the typical $250,000 limit at a local bank. Unlike local banks, where individuals with larger sums must spread their funds across multiple institutions to maintain FDIC coverage, KEEP allows clients to consolidate their funds into one account with full protection, all under a single tax ID.

• It’s crucial for individuals to fully understand the limits of FDIC insurance. If you have more than $250,000 in a single bank account, any amount over that is not protected if the bank fails. Many people don’t realize that, for example, if they inherit money or have accumulated significant savings, they could be leaving a large portion of it uninsured. With over $7 trillion currently sitting above the FDIC limit, much of it earning zero interest, it’s essential to stay informed and ensure your funds are properly protected and earning a competitive return.

• KEEP not only offers higher returns but also makes a positive impact by investing in community banks and credit unions, particularly those serving underserved populations. Through the Keep Impact initiative, funds are directed to minority depository institutions and community development financial institutions, helping to fund housing, minority-owned businesses, and other vital community projects. It’s important to note, this is an option and there are other products to consider.

As a fiduciary advisor, it is our responsibility to consider all options available and determine what products are a good fit based on the individual needs and goals of every client.

Let’s create your Retirement Freedom Plan™, starting with the “Clarity Conversation”.

Reach out to us at 816-246-WISE or email [email protected] to start the journey toward freedom.

📅 SCHEDULE A CONSULTATION: 816.246.WISE (9473) [email protected] www.wisewealth.com

In this episode, Stephen Stricklin and Paul Brock discuss the importance of providing clients with a balanced approach to investing, focusing on portfolio construction that aligns with both financial goals and values.

Guests Ben Malik and Mark Riefer offer their experience and expertise.

Ben Malik: A chartered financial analyst (CFA) and certified kingdom advisor (CKA), Ben focuses on buildingbiblically responsible portfolios under Bright Portfolios, which balance good returns with ethical investments.

Mark Riefer: A financial advisor, and certified kingdom advisor (CKA), with a long history of managing portfolios and experience in biblically responsible investing. He emphasizes the importance of asset allocation, strategy, and moral screening in portfolio management.

Philosophy of Investing:

Wise Wealth emphasizes long-term investing and discipline, advising clients to stay committed to their growth portfolios despite short-term market fluctuations.

Modern Portfolio Theory: While both Mark and Ben appreciate the theory’s focus on risk-adjusted returns, they recognize inefficiencies in the market that provide opportunities for active management.

Diversification and Asset Allocation: They advocate a forward-looking approach in portfolio construction, taking into account market cycles, risk levels, and opportunities for adjusting asset allocations. 

Importance of Values-Based Investing:

A key element of the episode is the integration of biblically responsible investing (BRI), ensuring the companies they invest in align with ethical and moral values.

Their portfolios are regularly reviewed and adjusted, focusing on long-term growth without losing sight of the clients’ values.

Investor Behavior:

The hosts discuss the importance of investor discipline and how managing emotions during market fluctuations is critical to long-term success.

Wise Wealth builds investment portfolios that not only meet financial objectives but also adhere to clients’ moral and ethical standards, blending portfolio management with biblically responsible investing principles.

Interested in learning more about our portfolios?

Schedule a 15-minute Conversation with one of our experienced financial advisors.

www.wisewealth.com/contact-us

816.246.WISE (9473)

[email protected]

People often research financial products after hearing about them through various channels, but they may be swayed by either overly positive or negative information. This can lead to risky decisions, as news often highlights sensational or negative stories to attract readers and sell ads.

Algorithms amplify confirmation bias by continuously showing users articles that align with their previous clicks, which is why we advocate for principles-based financial planning—principles remain constant even as products and industry trends evolve.

While products and industry trends may change, principles remain constant, and we’ve emphasized these principles throughout our previous podcast episodes.

For clients of Wise Wealth, we provide continued education, and we were thrilled to host our Summer Education Series. This year’s theme, “Non-Traditional Investment, Income, and Inheritance Options,” which sparked many engaging discussions.

We’re focusing on non-traditional financial methods this season, including reverse mortgages, beneficiary liquidity planning, and digital assets, and we’ll be discussing these topics in upcoming podcast episodes. Understanding your options can help you find the best fit for your individual needs.

Having a plan is crucial because it allows for a thoughtful evaluation of various financial options, ensuring that each choice aligns with individual goals and needs. As fiduciaries, we are committed to presenting unbiased, well-researched information on diverse financial topics to help clients make informed decisions within the context of a comprehensive plan.

If you’re not a client of Weiss Wealth and lack a personalized financial plan, we offer a clarity conversation to help you get started. You can reach out via email, phone, or by taking our online quiz for a free copy of our updated book, “Simplify Your Retirement.” Our goal is to simplify your retirement planning so you can fully enjoy life. Thank you for joining us as we kick off the sixth season of our podcast!

816.246.WISE (9473)

[email protected]

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It’s often said that people spend more time planning vacations than they do for retirement. But just as you wouldn’t wing a vacation, retirement planning requires careful consideration.

With potential decades ahead, the time invested in planning is relatively short. Therefore, it’s crucial to approach retirement seriously, laying out all your desires to ensure they align with your vision.

A common mistake is solely focusing on the day you can stop working. While reaching this milestone is significant, the ultimate goal is not just retirement but retirement freedom.

Our goal is to guide individuals towards this state of financial freedom, not just reaching retirement but thriving through it. We aim to alleviate the fears and frustrations that often accompany retirement, enabling people to enjoy their golden years with peace of mind. And at the core of achieving this peace is having a well-thought-out plan.

Whether it’s the cost of healthcare, rising taxes, stock market volatility, or inflation, our personalized Retirement Freedom Plan™ covers all potential risks eliminating those fears and what-ifs.

In retirement, you want the freedom to pursue your desires without worrying about uncertainties or risks. Working with someone who understands this is crucial. Going it alone might work, but you could still face fear and frustration along the way.

Robo-advisors lack the human touch needed to address your unique concerns. While they can provide numbers and estimates, they can’t offer the empathy and experience of a human advisor. Trusting solely in automated assessments, like those from 401k providers, may not give you the full picture. What you really need is a financial planner who can guide you not just to retirement but through it, providing both expertise and empathy tailored to your needs.

Let’s create your Retirement Freedom Plan™, starting with the “Clarity Conversation”. Reach out to us at 816-246-WISE or email [email protected] to start the journey toward freedom.

www.wisewealth.com

Tax Planning: A Lifetime Approach to Minimize Your Taxes

In today’s episode, we dive into the topic of taxes, drawing inspiration from Benjamin Franklin’s famous quote: “There are only two things certain in life, death and taxes.”

Considering the uncertainty surrounding taxes and the fear it can evoke, we emphasize the importance of having a plan in case of tax increases. While your current tax rate forms the basis of our strategy, we also incorporate a contingency for potential future tax rate hikes, stressing the need for preparation regardless of your decision to convert to a Roth or not.

Now, let me introduce Becca Ollar, whose unique background as a CPA with experience in financial planning sets her apart. Unlike CPAs in accounting firms primarily dealing with business and corporate returns, Becca’s focus within a financial planning firm revolves around individual planning.

In CPA firms or accounting firms, the work often happens behind closed doors with minimal interaction. Unlike the typical accounting firm setup where clients drop off tax documents in February and only reconnect in March or the following year, working with Becca involves more engagement and conversation throughout the year.

It’s rare to find a CPA focused on building meaningful relationships and actively helping clients achieve their goals, rather than just offering tax preparation services. This approach involves proactive communication, strategic planning before deadlines, and a partnership mentality, ensuring clients are well-informed and minimizing surprises come tax time.

The advantage of combining CPA and financial advisor services lies in seamless access to comprehensive records and consistent advice. The proactive approach, often lacking in traditional tax preparation services, is crucial for a positive client experience.

Interested in Tax Preparation? Call our office at 816.246.WISE (9473), or visit our website, www.wisewealth.com.

Watch or listen to the full episode to hear Stephen’s perspective on paying taxes upfront on the seed, rather than navigating the uncertainties of future tax rates and amounts during the harvest. Also learn other tax strategies such as:

By incorporating these insights into your tax planning, you can make informed decisions that align with your financial goals.

In today’s episode, the last of Season 4, Stephen Stricklin, along with Paul Brock, answer FAQ’s surrounding retirement planning. In addition to their answers in this episode, we encourage you to look back through the seasons to gain more clarity!

One listener asks, “Do you see value in splitting accounts over a few different advisors?” Stephen says with multiple advisors working with the same client, you can end up with similar portfolios, and that may not be as diversified as you’d think. In addition, different advisors have different financial philosophies, Stephen believes in simplicity and consolidation, getting all assets under the same roof. 

A common question Stephen and Paul face is, “Should I have an alternative to bonds?” In this current environment where the interest rates are rising, and the value of bonds go down, ultimately it depends what your plan is. Their suggestion is a fixed indexed annuity, a fixed annuity, or CD’s. In exchange for the liquidity that bonds offer, you get guaranteed principal protection and no downside risk.  

When it comes to retirement planning, someone asks, “How can I build a retirement plan when I don’t know when I will retire?” Stephen suggests picking a date and going from there. It doesn’t have to be set in stone, but it’s best to start putting together a plan sooner than later, to have peace of mind. 

Stephen and Paul Discuss: 

Resources:

Connect With Stephen Stricklin:

Have you ever considered the views of the companies you’ve invested in? Do they align with yours? Join Stephen Stricklin and Paul Brock, along with guests Ben Malick and David Sandhu, as they discuss Biblically Responsible Investing. Ben and David have years of financial experience with Wise Wealth, and in this episode, offer clarity on how we can make good decisions when it comes to thinking biblically about our investments. 

As an investor, you must screen for companies that take into account the acronym, ESG, Environment, Social and Governance. Do they care for the environment? How do they treat their customers and employees? How well is their board structured? Look for companies that are not harming others for the sake of profit. 

As a christian, being aware of what you invest your money in is of highest importance. Focus on companies that give back to their employees and their community and support christian values. In the long run, businesses that care for people will flourish. 

Bright Portfolios is Wise Wealth’s solution. Bright Portfolios is an asset allocation where they manage the portfolios for individual clients. They screen for companies exhibiting good values, and build a fully diversified portfolio. You can feel good about the companies you own and feel good about the returns. You get positive returns and know the money you’re investing is actually doing good in the world. 

Ben and David Discuss: 

Resources:

Connect With Ben and David:

Connect With Stephen Stricklin:

About Our Guests:

David Sandhu is a Wise Wealth Financial Advisor, Certified Kingdom Advisor and Chartered Retirement Planning Counselor.