In this episode of the "Wealthyist" podcast, hosted by Dr. Brian Jacobsen, Chief Economist at Annex Wealth Management, and featuring Erik Strom, Director of Financial Planning, the discussion centers on the impact of the "big beautiful bill" on charitable giving and tax-efficient strategies. Key points include:

1. Standard Deduction Increase: The 2017 Tax Cuts and Jobs Act doubled the standard deduction starting in 2018, leading many taxpayers, including Strom and his wife, to stop itemizing deductions, which contributed to a decline in charitable giving. The recent bill permanently extends this larger standard deduction with an additional boost, and a new senior deduction is available even for those taking the standard deduction.
2. State and Local Tax (SALT) Deduction: Previously capped at $10,000, the SALT deduction has been increased to $40,000 through 2029, potentially encouraging more taxpayers to itemize. However, for incomes exceeding $500,000, the SALT deduction phases out rapidly up to $600,000, creating a steep effective tax rate.
3. New Charitable Deduction for Non-Itemizers: Starting in 2026, non-itemizers can deduct up to $1,000 (single filers) or $2,000 (married filers) for charitable contributions, incentivizing record-keeping for donations.
4. Charitable Deduction Floor for Itemizers: A new rule effective in 2026 introduces a floor for charitable deductions, set at 0.5% of adjusted gross income (AGI). For example, with a $200,000 AGI, the first $1,000 of charitable contributions is non-deductible, making strategies like bunching donations or using donor-advised funds (DAFs) more critical.
5. Donor-Advised Funds (DAFs): DAFs are highlighted as a tax-efficient way to frontload charitable contributions, especially in high-income years, to avoid the new AGI-based floor. Contributions to DAFs in 2025 can bypass this floor, allowing distributions to charities over time.
6. Qualified Charitable Distributions (QCDs): For those over 70.5 with required minimum distributions (RMDs), QCDs allow direct IRA donations to charities, excluding the amount from taxable income, which can help manage income levels to avoid SALT deduction phase-outs.
7. High-Income Considerations: For those in the top 37% tax bracket, a new limitation claws back itemized deductions, reminiscent of the Alternative Minimum Tax (AMT), which was largely mitigated by the 2017 Act but still affects those with incomes over $1 million. This adds complexity for high-income earners navigating tax planning.

The episode emphasizes the importance of strategic tax planning, such as bunching donations, using DAFs, or leveraging QCDs, to maximize the impact of charitable giving while minimizing tax burdens. Jacobsen and Strom stress the value of professional guidance, like that offered by Annex Wealth Management, to navigate these complex changes effectively.

In this episode of Wealthyist, hosted by Brian Lamborne, senior wealth strategist at Annex Private Client, and featuring new team member Anthony Mlachnik, the discussion focuses on strategic financing as a tool for the wealthy. Continuing from a prior conversation on tax-aware investing, they explore how strategic financing leverages assets to borrow money tax-free, providing liquidity without triggering taxable gains. This approach is particularly useful for short-term needs, such as relocating from Wisconsin to Florida, funding college, or buying a car, by using options like margin accounts, pledged asset lines of credit, or home equity lines of credit.

Key points include:

• Tax Efficiency: Borrowing against assets (e.g., stocks or home equity) avoids capital gains taxes, offering a cost-effective alternative to selling investments.
• Flexibility: Clients can bank with multiple institutions, and advisors help negotiate competitive rates, potentially saving on interest costs.
• Applications: Strategic financing supports personal transitions, business needs, charitable giving, and estate planning, such as gifting to children without selling stocks or using low-interest loans to facilitate business succession.
• Advisory Role: As fee-only fiduciaries, the team collaborates with clients’ professionals (e.g., lawyers, bankers) to tailor solutions, ensuring the best interest of the client over bank profits.
• Options and Customization: Strategies vary by situation, from using personal loans to family-held notes, emphasizing the importance of exploring all possibilities with a wealth manager.

The episode highlights the value of professional guidance in navigating financing options and optimizing taxes, with plans to delve deeper into advanced topics in future episodes.

In this episode of "Wealthyist," hosted by Brian Lamborne, Senior Wealth Strategist with the Annex Private Client Team, the focus is on tax-aware investing and aligning financial strategies with clients' purposes. Brian introduces Anthony Mlachnik, a new senior wealth manager at Annex Private Client, who shares his background and his experience working with complex clients nationwide.

The discussion centers on the importance of tax-aware investing, which involves aligning estate planning, investments, and tax strategies to optimize client outcomes. Anthony emphasizes the need to define a client’s purpose—such as family happiness or legacy building—to guide financial decisions. Key strategies discussed include:

• Tax-Aware Investing: Making investment decisions with tax implications in mind, such as minimizing taxes through asset allocation and loss harvesting.
• Purpose-Driven Planning: Helping clients identify their goals (e.g., spending time with family or passing wealth to future generations) to align financial strategies.
• Tax Loss Harvesting: Selling assets at a loss to offset capital gains, either in the current year or carried forward, to reduce tax liabilities.
• Managing Large Gains: Gradually reducing concentrated stock positions to avoid large tax hits, using tools like loss harvesting, donor-advised funds, or exchange funds for tax efficiency.
• Long-Term vs. Short-Term Gains: Prioritizing long-term capital gains for better tax rates and considering charitable giving to manage highly appreciated assets.
• Estate and Distribution Planning: Tailoring strategies based on whether clients want to spend wealth during their lifetime or pass it to heirs, leveraging tax benefits like step-up in basis at death.

Anthony stresses making investment decisions first and tax decisions second to avoid missing opportunities. The episode highlights the power of compounding tax savings over time and the importance of working with professionals to navigate dynamic tax laws and emotional decision-making, especially during retirement distributions. The episode concludes with a promise to continue the discussion in the next installment.

In this episode of Wealthyist podcast, hosts Brian Lamborne, a senior wealth strategist, and Alec Durand, an estate planning attorney with Annex Wealth, discuss the implications of the recently passed One Big Beautiful Bill Act in the context of the Tax Cuts and Jobs Act of 2017 (TCJA). The TCJA, effective since 2018, doubled the federal estate tax exemption to around $14 million (adjusted to $13.99 million in 2025), reduced income tax brackets, doubled the standard deduction, and introduced benefits like the Qualified Business Income (QBI) deduction and bonus depreciation for businesses. These changes simplified estate planning for many, as fewer people faced federal estate tax issues, and complex strategies became less necessary.

The One Big Beautiful Bill Act largely continues the TCJA provisions, providing clarity by making them permanent and eliminating the sunset provisions set to expire in 2025. Key updates include increasing the estate tax exemption to $15 million in 2026 (indexed for inflation thereafter) and maintaining income tax brackets and the standard deduction. This permanence alleviates concerns about the exemption dropping significantly, which would have impacted estates valued between $10-20 million. The bill also made minor tweaks to QBI and other tax provisions but didn’t drastically alter the tax landscape.

The hosts emphasize that the planning prompted by the TCJA’s potential sunset was still valuable and remains relevant. For high-net-worth individuals, particularly business owners, the clarity provided by the new law offers opportunities to refine estate plans, update documents like buy-sell agreements, and ensure alignment with current goals. They stress the importance of reviewing operating agreements, business valuations, and estate plans to avoid conflicts (e.g., between buy-sell agreements and trusts) and to prepare for wealth transitions, especially for estates up to $30 million for married couples. The episode underscores that while the new law didn’t change much in tax policy, proactive planning remains critical for effective wealth management and transfer.

Episode Focus: The episode explores the lifestyles, choices, and strategies of the wealthy, with a specific focus on their interest in exclusive and rare wines, wine trends, and the art of collecting and storing wine.

Key Points Discussed:

1. A Memorable Wine Hunt Story:
   • Ben from Waterford Wine (https://waterfordwine.com/) shares a story from 20 years ago when a CEO visited his store and requested a specific wine, Masetto. Initially unfamiliar with it, Ben researched and tracked down a rare three-liter Jeroboam bottle after persistent effort. This led to a valuable client relationship, showcasing the effort behind sourcing rare wines.
2. Wine and Alcohol Trends:
   • Ben discusses industry trends, noting that hard seltzers and craft beer have seen peaks and declines, while craft spirits are likely to decline soon. Wine remains relatively stable, but overall alcohol sales in Wisconsin have been declining over the last three years, except for THC products, which are rising due to a legal loophole.
   • At Waterford Wines, clients typically engage seriously after 3-4 years into their careers, shifting from bar visits to dining at home, insulating the store from industry declines and contributing to slight growth.
3. Guiding New Wine Customers:
   • Ben emphasizes a non-transactional approach, with staff spending about 25 minutes with customers to understand their preferences. Instead of asking about budget, they explore the customer’s goals (e.g., pairing with food or building a collection).
   • Staff are trained to taste wines across price points (inexpensive, medium, expensive) and learn engaging facts about each to guide customers effectively, avoiding limiting their choices based on cost.
4. Investing in Wine:
   • Wine as an investment has faded since its peak around 2000-2005, particularly with first-growth Bordeaux (e.g., Mouton, Lafite, Latour, O’Brien, Margaux). These wines, classified in 1865, were once high-growth investments but are less so now.
   • Ben advises new collectors to start small (e.g., buying 3-4 bottles) to explore preferences, as tastes evolve. Many clients ignore this and fill cellars quickly, only to shift preferences later (e.g., from Malbec to Italian wines).
5. Wine Storage and Cellars:
   • Proper storage requires a constant temperature (55-65°F) and high humidity to prevent cork drying and wine oxidation, which can be challenging in homes due to mold risks.
   • Ben advises against elaborate cellars until a true passion for wine is developed, recommending investment in wine first. Many clients build lavish cellars with marble floors and tasting tables but are encouraged to focus on the wine itself initially.
6. Wine Aging:
   • Most wines are consumed too young in the U.S. (within days). Aging 1-3 years enhances fruit character and smoothness. After this, savory flavors (e.g., herbs, potpourri) emerge, and the wine’s body lightens.
   • Vintage dates reflect the grape harvest year, and some regions (e.g., Brunello, Napa Valley) have mandatory aging periods before release, effectively pre-aging the wine.
7. Wine Travel Recommendations:
   • Ben highlights Napa Valley as an expensive but dramatic destination for wine lovers, with Sonoma Valley offering a more casual vibe, Paso Robles a farm-focused experience, and Willamette Valley a farmer-centric one.
   • Internationally, Italy is recommended for its hospitality, 2,000 grape varieties, and cultural integration of wine with food, enhancing the drinking experience. Clients often return with new preferences (e.g., Vermentino) and appreciate the lower alcohol impact due to pairing with meals and increased physical activity.

Key Takeaways:

• The episode blends storytelling, industry insights, and practical advice for wine enthusiasts, particularly those with wealth looking to explore or invest in wine.
• Ben’s approach at Waterford Wines emphasizes education, exploration, and building long-term client relationships over quick sales.
• Wine collecting is both a passion and a strategic process, requiring patience, palate development, and proper storage to maximize enjoyment and value.

This week's episode of Wealthyist podcast, hosted by Kent Helene, Associate Wealth Manager at Annex Wealth Management, features a conversation with Sandy Wysocki, Executive Director of the Sharon Lynne Wilson Center for the Arts. The episode explores the intersection of arts, philanthropy, and financial planning, particularly for high-net-worth individuals. Here’s a summary of the key points:

• Overview of the Sharon Lynne Wilson Center: Sandy discusses the center’s mission to provide a vibrant arts destination in Brookfield, Wisconsin, focusing on performing arts, arts education, and visual arts. The center serves as a cultural anchor in the Greater Milwaukee community, hosting diverse performances and educational programs.
• Revenue and Funding: About one-third of the center’s revenue comes from performances, which include:
  • Mainstage Series: Monthly shows in a 613-seat theater, featuring a variety of genres like country (e.g., Marty Stuart), Broadway, jazz, and bluegrass.
  • Matinee Series: Targeted at seniors, with popular shows like Hollywood Revisited, showcasing vintage movie costumes and songs.
  • Studio Series: Cabaret-style performances in a smaller, 100-seat venue with a casual, coffeehouse vibe.
  • Beyond the Classroom: Field trips for students, bringing books to life through performances.
• Donations and Philanthropy: Donations are a significant funding source, driven by nostalgia (e.g., parents whose children performed at the center), financial planning needs (e.g., required minimum distributions), or a desire to make an impact. The center maintains transparency with financials and impact reports on its website to build trust with donors.
• Financial Planning Connection: Ken ties the center’s work to wealth management strategies, such as:
  • Charitable Giving: Donating appreciated stock to avoid capital gains taxes, benefiting both the donor and the center.
  • Estate Planning: Incorporating charitable giving into trusts and legacy planning, especially relevant with the $80 trillion baby boomer wealth transfer.
• Future Goals: The center aims to celebrate its 25th anniversary in two years by increasing its endowment for sustainability and upgrading technology (e.g., sound and lighting systems) to remain state-of-the-art.
• Community Impact: Sandy emphasizes the arts’ role in enhancing mental health and fostering shared experiences, distinguishing live performances from digital consumption. The center’s free Starry Nights outdoor concerts, starting June 27, 2025, were highlighted as an accessible community event.
• Notable Highlight: Sandy shares her enthusiasm for the Ukulele Orchestra of Great Britain, a surprisingly entertaining act that sold out and is planned to return in a couple of years.

The episode underscores how the Sharon Lynne Wilson Center balances artistic programming with financial sustainability while aligning with wealth management strategies like tax and estate planning for charitably inclined individuals. For more information, visit annexwealth.com or wilson-center.com.

In episode 25 of "Wealthyist," Annex Private Client Wealth Strategist Brian Lamborne  discusses charitable giving with Jason Kohout, Chair of the Family Office area at Foley and Lardner and director of the Wisconsin Philanthropy Network. Kohout, an estate planner, focuses on helping clients with wills, trusts, tax planning, and charitable contributions, including creating private foundations. Key points include:

• Current Trends: High-profile charitable acts, like the Patagonia founder donating 98% of the company to environmental causes, are rare but notable. Naming rights for buildings at universities or hospitals are common in philanthropy.
• Economic Impact: Recent economic turbulence hasn’t significantly altered charitable giving patterns. However, investment advisors are increasingly integrating charitable giving into tax-efficient strategies, with donor-advised funds (DAFs) becoming mainstream over the past decade.
• Tax Planning and DAFs: DAFs are popular for their simplicity and tax benefits, especially for gifting appreciated assets like business interests before a sale, which can reduce capital gains tax and provide deductions.
• Pending Legislation: Uncertainty around tax legislation, particularly the estate tax exemption potentially halving by December 31, 2025, is a concern. Kohout advises against delaying planning due to this uncertainty, as most charitable strategies remain effective regardless of legislative outcomes.
• Timing Considerations: End-of-year planning can strain resources, so early action is recommended for complex gifts requiring valuations or legal work.
• Gender Dynamics: Women influence 85% of charitable giving, often driving decisions in couples or as surviving spouses, focusing on community impact.
• Religious Giving: Religious organizations receive about 36% of charitable gifts. For complex gifts (e.g., appreciated securities or real estate), Cahute suggests using sophisticated DAFs to manage funds effectively, as smaller organizations may lack expertise.
• Younger Donors: Millennials and Gen Z integrate technology into giving, using DAFs via mobile platforms and prioritizing philanthropy in lifestyle choices. They also invest in newer assets like AI and crypto, which poses challenges due to outdated IRS rules from 1969, requiring valuations for non-currency assets like cryptocurrency.

Kohout emphasizes aligning charitable giving with personal values, tax efficiency, and long-term goals, while navigating evolving economic and regulatory landscapes.

In this episode of "Wealthyist" podcast, host Brandon Lehman interviews Dale Kooyenga, president of the Metro Milwaukee Association of Commerce, about economic development in the Milwaukee region, specifically the Milwaukee Seven (M7), which represents seven counties in southeast Wisconsin: Milwaukee, Kenosha, Ozaukee, Racine, Walworth, Waukesha, and Washington. The M7 focuses on regional economic development to attract large companies like Microsoft, Eli Lilly, and Hasbro by leveraging the area’s strengths.

Key Points:

• Attracting Companies: Companies choose Milwaukee over other regions like Chicago or Atlanta due to factors like access to water, a reliable energy grid, and a strong talent pool, particularly in advanced manufacturing and food and beverage industries. The region’s livability, with amenities like professional sports, golf courses, and a vibrant downtown, also appeals to companies recruiting talent.
• Cost of Living and Housing: Milwaukee offers relatively affordable housing compared to other metros of its size, though housing costs are rising due to high labor, material costs, and interest rates. The region’s high per capita income and affordability make it attractive, but property taxes are approaching those of Chicago’s suburbs, raising concerns about competitiveness.
• Lifestyle and Amenities: Milwaukee’s appeal includes its lively downtown, proximity to Lake Michigan, professional sports teams (Bucks and Brewers), and short commutes (20 minutes vs. 1-1.5 hours in larger cities), allowing for a balance of family and professional life. The Wall Street Journal recently highlighted Milwaukee as the nation’s hottest housing market.
• Water and Energy: Access to abundant water from Lake Michigan is a major draw for industries like data centers and manufacturing, which require significant water and energy resources. Wisconsin’s reliable energy grid and leadership in nuclear technology (e.g., micro nuclear) position it well for future growth.
• Economic Shifts: Milwaukee’s economy is transitioning from traditional blue-collar manufacturing to high-tech and financial services, with a strong presence of mid-tier manufacturers and private equity firms. Manufacturing output is up despite fewer jobs, reflecting productivity gains.
• Challenges and Opportunities: Kooyenga highlights three priorities for Milwaukee’s growth: (1) establishing a top-tier R1 research university, (2) adopting advanced nuclear technology for sustainable energy, and (3) attracting more immigrants, who are more likely to start businesses and drive economic growth. Milwaukee’s population growth is strong in the Midwest but lags due to lower immigration compared to cities like Chicago.
• Policy Concerns: High income taxes (e.g., 7.65% vs. Illinois’ 5% flat tax) and rising property taxes are barriers to attracting executives and talent. Kooyenga suggests a flatter, lower tax rate (3-4%) to boost competitiveness, warning that overturning reforms like Act 10 could worsen property tax burdens.
• Vision for M7: The ultimate goal is to enhance Milwaukee’s appeal as a top destination by integrating it more closely with Madison (a one-hour commute) to create a powerhouse region combining Milwaukee’s amenities with Madison’s capital and university assets. Reducing the psychological and logistical divide between the two cities could make the region globally competitive.

The podcast emphasizes Milwaukee’s strengths, ongoing challenges, and strategies to elevate its economic and lifestyle appeal, with a focus on attracting businesses, talent, and wealth to the region.

In this episode of the Wealthyist podcast, hosts Brian Lambourne and Alec Durand discuss the common misconception that forming an LLC is primarily for tax benefits. They clarify that the primary purpose of an LLC (Limited Liability Company) or corporation is to limit liability for business owners, not to provide tax advantages. 

Key points include:

1. Purpose of LLCs and Corporations: These entities are designed to protect business owners from personal liability for business-related actions, separating personal and business assets. For example, an LLC can shield owners from liabilities arising from the business, but it does not protect against personal actions (e.g., if the owner causes an accident while driving).
2. Misconceptions About LLCs: Many people mistakenly believe LLCs are mainly for tax benefits. The hosts emphasize that the decision to form an LLC should be based on the need for liability protection, not just tax considerations.
3. Liability Protection: LLCs are effective for businesses with employees or significant assets (e.g., real estate). For instance, if an employee causes an accident, the LLC can limit the owner's personal liability. In contrast, for solo entrepreneurs offering personal services (e.g., consulting or teaching music), an LLC may offer little protection since the individual and business are essentially the same.
4. Corporate Formalities: To maintain liability protection, businesses must observe corporate formalities, such as keeping separate bank accounts and not using business assets for personal expenses. Failure to do so risks "piercing the corporate veil," where courts may hold owners personally liable.
5. Real Estate and LLCs: LLCs are particularly useful for real estate investors. Separate LLCs for each property can isolate liabilities, protecting other assets if an issue arises with one property.
6. Tax Implications: While liability protection is the primary goal, tax considerations also matter. LLCs offer flexibility, defaulting to sole proprietorship taxation for single-member LLCs or partnership taxation for multi-member LLCs. Owners can elect to be taxed as an S corporation or C corporation, each with different tax implications (e.g., C corporations face double taxation, while S corporations and partnerships are pass-through entities).
7. Sophisticated Use of LLCs: High-net-worth individuals and complex businesses often use multiple LLCs to separate liabilities across different business lines or assets. For example, real estate and operational businesses may be held in separate entities.
8. Estate Planning: LLCs can offer estate tax benefits, such as a step-up in basis for assets like real estate upon the owner’s death, which is not typically available with corporations.
9. Importance of Experts: The hosts stress the need for professional guidance from attorneys and accountants to choose the right entity and tax structure, ensuring proper setup and avoiding costly mistakes.

The episode concludes with a reminder to evaluate the need for asset protection first, then consider tax implications, and to consult experts to tailor solutions to specific business goals.

In this episode of the Wealthyist podcast, hosted by Brandon Lehman, Director of Private Client, the focus is on the booming global pet care market, valued at $247 billion in 2023 and projected to reach $425 billion by 2032. Lehman interviews Allen Kline, owner of K9 Resorts of Brookfield, a luxury dog daycare and boarding facility branded as the "Ritz-Carlton of dog hotels." 

Key Points:

• Luxury Pet Care Concept: K9 Resorts was inspired by high-end hospitality, addressing a gap in premium pet care. Founders, two brothers from New Jersey, modeled it after luxury hotels, incorporating features like chandeliers, premium air quality systems to prevent airborne illnesses, and a clean, aesthetically pleasing environment.
• Client Demands: Pet owners, particularly wealthier clients who travel frequently (5–6 times a year, including trips to Europe or Mexico), seek high-quality care, health monitoring, and peace of mind. Services include daily photo/video updates, detailed health reports, and a focus on comfort and safety.
• Staff Training: Employees undergo 8–12 hours of training to recognize health issues in dogs, with the daycare manager leveraging 20 years of experience to identify subtle cues, preventing serious health issues in several cases. All staff are dog CPR and first-aid certified.
• Socialization and Services: Post-COVID, many dogs lack socialization, so K9 Resorts offers private play sessions to ease dogs into group environments. They carefully introduce new dogs to groups, monitoring for stress signals to ensure safe integration. Luxury suites, equipped with dog TVs, antibacterial floors, and tiled walls, are booked 90% of the time, often months in advance for holidays.
• Marketing and Growth: The facility relies on social media (Facebook, Instagram) for daily posts and word-of-mouth referrals, with its high-visibility retail location on Blue Mound driving significant traffic. Grassroots efforts, like farmers' markets, also boost awareness.
• Trends and Future Outlook: Kline predicts dynamic pricing in the pet care industry, similar to hotels, where high demand (e.g., holidays) could increase rates for luxury suites. AI may play a role in pricing and operations. The facility is seeing strong growth, with holidays fully booked and June weekends sold out.
• Clientele and Impact: Wealthier clients, who travel more, treat K9 Resorts as an extension of their family, prioritizing premium care. The facility’s cleanliness, quiet environment, and ability to keep dogs healthy and engaged (with group play and structured nap times) impress clients, setting it apart from competitors in industrial parks.

Takeaway: K9 Resorts  delivers a premium, health-focused, and personalized pet care experience, catering to affluent pet owners seeking peace of mind. Its success reflects the growing demand for luxury pet services, aligning with the expanding pet care market.

For further details, listeners are directed to contact Allen Kline at K9 Resorts of Brookfield.