The BoomX Show: Laws of Money

There are four types of taxes that are important to all retirees: 1) income tax; 2) capital gains tax; 3) estate tax, and 4) gift tax. New tax proposals may alter three of these types of tax and could decrease your family's overall wealth. If you feel confused by what it all means, do not worry! BoomX Show host Darol Tuttle breaksand offers resources and tips to not only understand but leverage the old and new tax laws. Simply put, this episode is about more dollars in your pocket by tax efficient investing.

You can join BoomX Academy for free and will be automatically enrolled in the BoomX Show Companion Course. The lesson for this podcast includes the Estate and Gift Tax publication and a thorough explanation of mutual fund taxation. Learn more at www.boomxacademy.com.

You also may receive the FREE BoomX Retirement Plan provided by SC Financial Group by clicking this link.

They say there are two certainties in life: death and taxes. While the imposition of tax is certain, the tax rate and even the type of tax are not. This is more true than most years as President Biden's tax proposals are likely to increase tax rates on most fronts.

If you feel confused by it all, this episode is for you. Join Darol Tuttle as he interviews financial advisor and BoomX Show sponsor Shane Cloninger as they summarize basic tax rules and offer powerful tips to turn the tables on unnecessary tax. Referred to as "tax-efficient investing", Shane explains how tax lost harvesting can increase your after-tax returns now and in the future.

Episode Bonuses

BoomX Retirement Plan:

Click this link to receive the FREE BoomX Retirement Plan provided by SC Financial Group.

$1 BoomX Family Leader Membership for thirty days.

Continuing the conversation with Michelle Mendoza, BoomX Show host Darol Tuttle provides explains further the legal requirements of forming a limited liability company and the annual compliance rules. He also answers Michelle's questions as she reviews the LLC operating agreement Darol drafted for her. Key points include:

Limited liabilities are created by state law. Once formed, the LLC owner may make elect to be taxed as an S Corporation with the IRS. This will allow a portion of profits to be taxed free of self-employment tax.

The LLC operating agreement is the business playbook. With the mandatory annual meeting, the document can create the business' swim lane and set the framework for an envisioned future.

You can join BoomX Academy for free and will be automatically enrolled in the BoomX Show Companion Course. The Companion Course offers enhanced content. For this episode, you may find samples of the documents Michelle received to form her business. Learn more at www.boomxacademy.com.

You also may request a FREE BoomX Retirement Roadmap from SC Financial Group.

BoomX Retirement Plan:

Click this link to receive the FREE BoomX Retirement Plan provided by SC Financial Group. 

New entrepreneurs often charge into their business ideas with little thought into established legal requirements of all businesses.  In this episode, Darol interviews one such young business person, Michelle Mendoza, about her business goals and what she needs to do to set her business up for success.   Check out Michelle's podcast, My Michelle Live.

This episode lays out the steps to form a new business correctly: 

Step One: Draft, sign, and file your business formation documents with your state’s corporations agency. 

Step Two: Register your business with your state’s tax agency, typically referred to as a department or division of revenue, etc. 

Step Three:  Obtain a federal taxpayer identification number from the Internal Revenue Service.

Step Four: Obtain a city business license authorizing you to conduct business in your town or city. 

BoomX Retirement Plan:

Click this link to receive the FREE BoomX Retirement Plan provided by SC Financial Group.

Most retirees are concerned about long-term care costs. Yet, most people take no steps to mitigate the risk of high costs let alone develop a solid strategy to finance those costs. In this episode, BoomX guest Brian Ott of 525 Advisors explains the ins and outs of long-term care costs and solid tips on making the right choice. Brian Ott is a Retirement Income Certified Professional (RICP), i.e.a financial professional who specializes in retirement income planning. RICPs advise retirees and near-retirees as to the best way to use the assets they have accumulated for retirement to live comfortably within a realistic budget and not run out of money prematurely. You can learn more about Brian and his business by visiting www.525longtermcare.com.

This episode is sponsored by SC Financial Group, LLC, located at 1417 116th Ave NE Suite 202, Bellevue, WA 98004. You can reach SC Financial Group by calling (425) 451-2950 or visiting their website at https://scfinancialgroup.com. (Securities and Advisory Services offered through Cadaret, Grant & Co., Inc., a Registered Investment Advisor and Member SC Financial Group LLC and Cadaret, Grant & Co., Inc. are separate entities.)

SC Financial Group, LLC, was founded by Shane Cloninger. Shane Cloninger has over 30 years of experience in financial services. He is a co-founder of SC Financial Group, LLC and a registered principal of Cadaret, Grant & Co., Inc. Mr. Cloninger graduated from Southern Connecticut State University in 1990 with a Bachelor of Science degree in Economics/Finance.

He is currently a co-host on the ‘Retirement Freedom’ radio show, a live call-in talk radio show developed to help the average investor gain clarity on a very complex financial world. ‘Retirement Freedom’ is in its 9th year on air and can be heard live Saturdays at 10am on 820 AM KGNW, simulcast on 1590 AM The Answer. The show has been on other stations in the past including KVI 570 AM and KKOL 1300 AM.

You can obtain a FREE retirement planning roadmap mentioned in this episode by clicking this link.

In this episode, you will learn that there are five levels of care. Home care, Assisted Living Facility Care, Memory Care, Group or Adult Family Home, Skilled Nursing. Parenthetically, each Assisted Living Facility offers services by their own "levels", usually one through nine levels or "ala carte". Ala carte refers to a menu of services a new resident can select, regardless of the level.

You can pay for long-term care in one of three ways: 1) private pay, i.e., your own funds, 2) government benefit programs such as Medicaid, state waiver programs, or veterans' benefits, or 3) insurance that pays for long-term care. Long-term care is defined as custodial care after 100 days. Medicare does not pay for long-term care. Medicare is a government-sponsored chronic insurance program for people over 65. Part A of Medicare will cover part of the first 100 days of skilled nursing care if certain conditions are met. Medicaid is the national benefits program for long-term care.

Long-term care is either premium-based or asset-based. Premium-based policies are analogous to car insurance policies in which the insured pays monthly premiums for a month of coverage. When the premiums are not paid, the coverage lapses. Policies vary in cost depending on the health and age of the insured and the levels of care desired.

Asset-based policies are structured as lump-sum deposits in which the initial premium is invested by the company and the return is used to grow the value of the deposit and also offer long-term care benefits if the insured becomes ill. Unlike premium-based policies, an asset-based plan can grow and when the policy terminates the insured can have his or her premium returned with interest. This assumes, of course, the insured did not become ill and did not draw on the policy to pay for care.

These policies can be structured in different ways. There is no guarantee of a return of premium or a positive return because circumstances and policies vary. It is possible to structure a plan with both types of policies.

You should contact Brian Ott or another long-term care professional to discuss your situation rather than roll the dice and hope for the best.

Special guest Patrick Palace discusses the state of the legal profession, the ways Covid has changed expectations, and the benefits of a virtual-only law firm. Patrick is the owner of the Palace law firm, located in Tacoma, Washington. He is also a frequent guest on podcasts through the Legal Talk Network, active in his local bar as well as the American Bar Association, and a respected contributor on topics related to technology and the law. You can learn more about Patrick by visiting his website www.palacelaw.com.

This episode gives listeners a peek into a values-driven law firm but also a project BoomX Show host, Darol Tuttle, is launching to reduce legal fees to just $40.00 per month. This project, the BoomX Academy, gives users access to his firm's drafting app, live meetings weekly, an online community of students, document storage, and more. You can learn more by visiting www.boomxacademy.com.

In this episode, Darol gives insight, tips, and resources to solve the problem of asset loss due to unplanned care costs. An important resource can be found at the BoomX Academy. Go to www.boomxacademy.com for more information.

Financial planning aside, Darol interviews Lisa Doyle, the owner and operator of Cay Care, a care assessment, management, and placement company. A registered nurse, Lisa lays out the value of a separate assessment before making any care decisions. She succinctly summarizes care options, ways to include and empower the aged patient, and a framework for successful decision making.

A decade ago, BoomX Show host Darol Tuttle aired his first radio episode. Unconfident, he took the airwaves by interviewing two of his clients who had found their stubborn, aged mother unconscious in her garden. The weather that day was below freezing and she was near death. At the time, Darol was skilled in elder law but still found himself moved by their story and the lengths to which they were forced to go to manage their mother's care.

In the episode, Darol laid out the costs of care as they existed in 2011. Then, he analyzes the levels of care, the increase in prices in just ten years, and gives listeners an important resource to learn how they can avoid the mistakes this family made.

Darol also announces the launch of "How to Protect Your Nest Egg: How to Pay for Unreimbursed Medical Expenses Without Paying High Insurance Premiums or Hiring an Expensive Lawyer." This course also gives students access to an easy-to-use drafting app so that they can walk through a guided interview and have the legal document they need to start a true asset protection plan delivered to their Inbox in seconds. To learn more, check out the new BoomX Academy.

Endorsed by Dave Ramsey, Mama Bear Legal Forms is a legal document creation application. In this review, Darol Tuttle walks through the creation of a Last Will and Testament, health care power of attorney and financial power of attorney, and rates the website design, legal/technical, accuracy in representation, asset protection and value of Dave's endorsement. Does Mama Bear Legal Forms live up to the hype?

How does a radio show host stack up against a trained wealth professional who chose a legal profession when advising on topics that matter to your family's wealth? It is a valid question. Should you listen to Dave Ramsey? If so, is his expertise limited? When should his advice be followed and when should it be considered entertainment?

In this episode, Darol compares the different professional requirements for an attorney as compared to a financial advisor. The education and training aside, the importance of asset protection as compared to the message of the radio show hosts as it relates to basic budgeting. In plain English, Darol lays out a simple test for all listeners of any financial show to use when deciding if the host deserves another second of your time.