On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Brian McArthur, President of Design My Medicare to discuss upcoming changes to Medicare.

Here are some key takeaways from their discussion:

- Starting in 2025, Medicare Part D will see significant changes, including a $2,000 annual out-of-pocket cap on drug costs, aiming to provide relief for beneficiaries with high prescription costs.

- Insulin users will benefit from a $35 monthly cap, which began in 2023, and this will continue under the new changes to reduce financial burdens on those with diabetes.

- The confusing coverage gap in Part D, known as the "donut hole," is being eliminated, simplifying the cost structure for enrollees.

- Adjustments to how premium subsidies are calculated mean that those with lower incomes might qualify for more assistance in paying their Part D premiums.

- Pharmaceutical companies will now cover a portion of costs in the catastrophic phase, which previously required the federal government and beneficiaries to bear the bulk of these expenses.

-  Those enrolled in Medicare or planning to enroll should review their options during the annual election period, as the changes may significantly alter their cost-sharing responsibilities.

- Chris and Brian recommend listeners to consult with a Medicare advisor to navigate these changes and select the most appropriate plan for individual health and financial needs.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Joe Seetoo to discuss building generational wealth as a family business.

Here are some key takeaways from their discussion:

- Small businesses are the cornerstone of the American economy, and 90% of American small businesses are family owned.

- About 70% of family businesses do not get passed down to the second generation successfully. Succession is difficult because there are so many complicated dynamics to navigate. Not only are there familial relationships to consider, but employees who are not related to the family that have a sense of ownership and passion for the company who need to be treated fairly. 

- Implementing leadership training for the next generation and having more structures in place to ensure everyone is well-equipped and understands the shared vision is crucial.

- Assembling the right team with financial experts, estate attorneys, and exit planning advisors can increase the likelihood of a successful transition. Professionals can also help guide your children should they inherit a lot of wealth in how to best handle their new assets.

- It is important to have regular conversations with your family/team as a business owner and clearly communicate your intentions.

- If you or someone you know is thinking about a business succession, visit our Strategist offering page to learn more about how we can help.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Client Coordinator Morgan Jul to discuss financial literacy and a new California bill requiring high school students to take a financial literacy course starting in 2031. 

Here are some key takeaways from their conversation:

- The bill requires financial literacy courses to be offered to all California high school students by the 2027-28 school year and be part of the graduation requirements for the class of 2031.

- Research shows financial habits are often formed by the age of seven, making early education critical.

- Studies suggest proper financial literacy can add around $127,000 in value through better habits and knowledge around investing and saving. 

- Morgan shares her story of transitioning from a career in entertainment to finance after taking a financial literacy course. She says the course changed her perspective on money management and equipped her with more confidence and financial stability, ultimately inspiring her to want to help others in the same way. 

- Morgan and Chris encourage listeners to check out financial resources like THE FINANCIAL COMMUTE, other video series, Couchside Conversations, as well as websites like NerdWallet, Investopedia, and The Points Guy. 

- Chris also suggests younger, high-earning professionals to learn more about our Modearn offering, which provides tailored financial advice to the next generation who may not meet the typical wealth thresholds of other advisory firms. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Mike Rudow to discuss different tax-preference savings vehicles and how high earners can use these accounts to optimize their wealth.

Here are some key takeaways from their conversation:

-  Health Savings Accounts (HSAs) are highlighted for their “triple tax savings.” They offer tax deduction on contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses. 

- Traditional IRAs, 401(k)s, and Roth IRAs offer "double tax benefits." Traditional accounts provide tax deductions on contributions and tax-deferred growth, while Roth accounts offer tax-free growth and withdrawals after taxes are paid upfront. People who expect to be in a similar or higher tax bracket in retirement should contribute to a Roth. Sometimes, finding a balance between both can be an optimal tax strategy.

- Contribution to accounts should follow a hierarchy, prioritizing emergency funds, employer matches, and then high-interest debt repayment before moving on to other accounts.

- 529 plans offer tax-free growth and tax-free withdrawals for qualified education expenses. This includes tuition for K-12 education and college, as well as expenses like books and supplies. They can also be used to pay off up to $10,000 in student loans per beneficiary, and the beneficiary can be changed to another family member. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Jenn Caruso to discuss how to financially prepare for a divorce and how a Certified Divorce Financial Analyst (CDFA) can help. 

Here are some key takeaways from their conversation: 

- As a CDFA herself, Jenn explains that CDFAs can help clients understand the complex nuances of financial impact before, during and after a divorce. 

- Before the divorce process actually begins, it is best to get organized, locate important documents and assess one’s financial situation. 

- Jenn emphasizes the importance of cash flow planning and modeling different settlement options to ensure long-term financial stability.

- It is helpful to have an objective party involved like a CDFA, as they can mitigate the risk of making emotional decisions which can potentially lead to mistakes. 

- After the divorce, Jenn suggests reviewing and updating estate documents, insurance policies and financial plans.

- Alimony is no longer tax-deductible or considered taxable income for divorces finalized after 2019, except in California where certain exceptions apply. 

- A frequent mistake people make is wanting to keep the family home purely because of sentimental reasons, when it may not be financially sustainable. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes CEO Jeff Sarti to discuss our upcoming Investor Symposium.

Here are some key takeaways from their conversation: 

- Grant Williams, author of Things That Make You Go Hmmm… and co-founder of Real Vision, will be the keynote speaker at our upcoming Investor Symposium. If you haven’t watched our special 100th episode with Grant yet, check it out here.

- Grant Williams and Jeff both see gold as a reliable store of value in uncertain times. 

- In a media environment that often encourages short-term speculation, it is more important than ever to maintain a long-term investment mindset. 

-  Our upcoming Investor Symposium will be held on Thursday, October 17 at the Westlake Village Inn. Topics will include the political environment, how to replace income in retirement, California housing market predictions, upcoming estate and tax law changes set to take effect next year, investment strategies, and more.

-  Learn more and RSVP for the Investor Symposium here.

We are celebrating our 100th episode of THE FINANCIAL COMMUTE this week! 

Thank you for listening and supporting Chris and our guests these past two years. We are excited to continue empowering our listeners with financial confidence and knowledge through this podcast. 

To make this episode extra special, host Chris Galeski had a conversation with Grant Williams, author of Things That Make You Go Hmmm…, host of The Grant Williams Podcast and co-founder of Real Vision.
  
Here are some key takeaways from their discussion:

- It is important to decide if you are a speculator or an investor. 
- Investors must be patient and adopt a long-term perspective in their investment strategies, focusing on the intrinsic value of what they are buying, and aiming to hold assets for extended periods of time, often through fluctuations.
- A speculator’s primary goal is to capitalize on market trends. This can be riskier since they are trying to time the market, which is often impossible. 
- Grant highlights gold as a reliable store of value during turbulent times.
- With increasing geopolitical risks, high debt levels, inflation, and upcoming policy decisions, this is a time of instability where investors need to not only worry about growing their wealth but keeping it. 
- Grant encourages investors to stay updated with the news and consider how governments and central banks may react to certain events or solve issues, and how their policies could impact one’s investments. It is important to be adaptable in your financial strategy as circumstances change.
- Grant also shares his thoughts on the upcoming U.S. election and potential tax policies of each candidate.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Chief Investment Officer Meghan Pinchuk to discuss the current real estate environment and investment opportunities.

Here are some key takeaways from their conversation:

- There is a noticeable drop in real estate transaction volume due to high interest rates and sellers holding out for better prices.

- Many real estate loans are coming due soon, creating potential opportunities for buyers as sellers may be forced to refinance at higher rates.

- Potential interest rate cuts are anticipated but are not guaranteed. Fed Chair Jerome Powell is speaking this Friday, where he may release more information on rate cuts.

- Inventory for single-family homes in California is low, which could drive prices higher if interest rates drop and more buyers enter the market.

- Meghan and Chris agree investing in real estate independently allows for greater control and potentially higher returns but requires time and capacity to handle tenant issues. For those looking for an alternative option, investing through a fund can offer access to better expertise and opportunities but may involve fees and less control.

- It is important to properly evaluate real estate investments by calculating potential income, expenses, net operating income, and comparing it to other investment opportunities. 

- People can have a lot of emotional ties to real estate. It’s important to understand what certain properties mean to you and how selling, renting, or other actions could potentially affect family dynamics, emotions, etc. 

On this week’s episode of THE FINANCIAL COMMUTE, Wealth Advisor Priscilla Brehm joins host Chris Galeski to discuss ways to build financial confidence.

Here are some key takeaways from their conversation:

- Access to too much information does not necessarily lead to true knowledge or confidence, highlighting the importance of one’s mindset towards money.

-  People often swing between scarcity and abundance mindsets. Wealth advisors can help clients move towards an abundance mindset to make confident financial decisions and make meaningful memories, instead of merely accumulating wealth.

- Creating a financial plan can help provide clarity on spending, income sources, and the rate of return needed for success.

- Educating oneself, creating a spending plan that allows enjoyment and security for both the present and future, understanding cash flow, and establishing an emergency fund are all crucial elements of financial confidence. 

- Having a financial advisor or someone trustworthy to discuss these matters with can give one peace of mind and enhance their decision-making process. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Managing Director of Investments Sasan Faiz to discuss the global stock market selloff. 

Here are some key takeaways from their conversation: 

- Tech stocks’ valuations were high due to AI excitement and hype, but recent corrections highlight the importance of true diversification.

-  The ISM Manufacturing Index indicates a recession in the manufacturing sector, though consumer spending, a major economic driver, remains relatively strong.

-  Indicators of financial stress among consumers include low savings rates and rising credit card balances, with unemployment slightly increasing to 4.2%.

- The Nikkei (a stock market index for the Tokyo Stock Exchange) saw significant drops due to the carry trade’s impact and the Bank of Japan’s interest rate changes.

- Chris and Sasan agree investors and consumers should be aware of the ongoing volatility but avoid panicking. Market corrections are necessary for long-term market health, and these volatile times are not unprecedented or insurmountable. It is important to diversify your portfolio beyond traditional stock and bonds to build resilience, and Morton has been preparing for such volatility accordingly.