Your Wealth, Your Legacy

There is one tax mistake that costs business owners thousands of dollars, and we see it on a regular basis. In this podcast episode, we discuss the net investment income tax and the mistake we frequently see that can be easily avoided.

The net investment income tax is an additional 3.8% tax that applies to investment income once income crosses a specific threshold. However, this tax was never intended to reach the income a business owner earns from a business they actively run. Despite that, we often see it applied to active business income.

The reason is fairly simple. Tax software generally includes income and capital gains from private businesses in the calculation by default, and backing that income out is usually a manual step. If the preparer does not know whether the owner materially participates in the business, the income often stays in and the owner writes a larger check to the IRS than they should.

In a typical year, that mistake costs a business owner thousands of dollars. In the year they sell the business, it can cost well into six figures.

In this podcast episode, Nathan and Steve cover what actually counts as net investment income, who the tax applies to, where the adjustment belongs on the return, and the two lines every business owner can check on their own return this week. Thanks for listening!

For more details, check out our blog post at pw-wm.com/learn/financial-planning/the-tax-mistake-that-costs-business-owners-thousands/

Most people assume their financial professional is free to recommend whatever solution is best for them. In many cases, that freedom is more limited than you may think.

In this episode, we cover what it actually means for a financial advisor to be independent. We start with a simple analogy: the difference between a retail store that only sells one brand of product and a store that carries the best products regardless of brand. Employees at both stores may genuinely want to help, but only one has the freedom to adjust their recommendation to your specific need.

We then walk through four conflicts that can eliminate independence: proprietary investment products, revenue sharing arrangements, sales quotas, and conflicts that arise when an advisor works within a larger financial institution. Each of these can shape the recommendations you receive in ways that are difficult to detect.

We also cover the connection between independence and fee-only compensation, why the choice of custodian matters, and the questions we believe every person should ask before engaging a financial advisor.

Thanks for listening!

For more details, check out our blog post https://pw-wm.com/learn/financial-planning/is-your-financial-advisor-truly-independent/

Many individuals who work for large, publicly traded companies accumulate a significant amount of employer stock over their career. When that position represents a significant portion of their overall portfolio, it creates meaningful concentration risk, and if they still work for the same employer, both their income and investments depend on that one company’s success.

In this episode, we cover a strategy that can generate income from existing shares while creating a disciplined plan to manage overall risk: covered calls.

We walk through what a covered call is, the key terms you need to know, the advantages and limitations of the strategy, and why it does not have to be all or nothing. We also work through a real-world example showing exactly how the numbers work.

Finally, we cover the tax implications, including how income is treated depending on whether the option expires, is closed, or is exercised, and we address the questions we hear most often.

If you are interested in learning more about how covered calls can be an effective tool to increase income and manage concentration risk, we think you’ll enjoy this episode!

Thanks for listening!

For more details, check out our blog post at https://pw-wm.com/learn/financial-planning/covered-calls-get-paid-to-manage-risk/

Most people look to their financial professional to provide financial advice and put their interests first at all times. What most individuals don’t realize is that there are two primary legal standards that govern the financial industry. One that is applicable to those who sell products and a higher standard for those who sell advice.

In this episode, we cover the history of the financial services industry including how it started as a sales-first industry where financial professionals worked for a firm and focused on selling the firm’s products. Over the years, the industry has expanded to include advice-focused, independent advisors who work directly for the client.

While the legal standard that governs the relationship between the financial professional and the client differs depending on the type of relationship in place, many individuals aren’t aware that a difference exists.

In our conversation, we cover what each standard requires and clarify which legal standard applies to each professional. Finally, we discuss our recommendation that families who are searching for comprehensive, financial advice choose an advisor that is held to the fiduciary standard 100% of the time.

Thanks for listening!

For more details, check out our blog post at https://pw-wm.com/learn/financial-planning/does-your-financial-professional-work-for-you-or-someone-else/

Starting July 4, 2026, parents can open a brand-new type of tax-advantaged account for their children called a Trump Account. With a $1,000 pilot contribution from the U.S. Treasury for children born between 2025 and 2028, plus the ability to contribute up to $5,000 per year, these accounts offer a meaningful new way to build long-term wealth for your family.

In this episode, we break down everything you need to know: how Trump Accounts work, the two phases that govern the rules, what you can contribute and how each type of contribution is taxed, the investment restrictions during the growth period, and the important planning opportunities and pitfalls that arise in the year the beneficiary turns 18.

We also cover where Trump Accounts fit in the recommended order of priority for child savings alongside Roth IRAs, 529 plans, and custodial accounts, and walk through three important concerns every family should consider before opening one: the child's full access at age 18, state tax differences, and a potential gift tax filing requirement.

Thanks for listening!

For more details, check out our blog post https://pw-wm.com/learn/financial-planning/trump-accounts-what-every-parent-needs-to-know/

Most people assume that if someone is legally licensed to give investment advice, they have completed a rigorous amount of education and training, have demonstrated advanced knowledge by passing exams that test the real-world application of concepts, and have a minimum level of real-world experience.

The answer is much more complicated, and the truth is that there can be significant variation in education, experience, and ability beyond the basic, legal threshold.

In this episode, we break down the minimum legal standard to become a licensed investment adviser representative and why there can be meaningful differences in the depth of knowledge and experience among licensed advisors.

We cover what it takes to satisfy the basic legal standard which is the Series 65 exam, the over 200 designations that exist in the financial industry, how to tell which designations demonstrate a long-term commitment to developing high-quality planning capabilities, and the three credentials that we believe rise to the top: the CPA, the CFP®, and the CFA®.

We walk through the education, experience, examination, and ethics requirements for each, share the questions every person should ask a financial advisor before engaging them, and explain why the right advisor will always welcome those questions.

For individuals and families with significant assets and complex financial needs, understanding whether your advisor holds one of these designations is an important step in determining whether your advisor is the best fit for your family.

Thanks for listening!

For more details, check out our blog post at https://pw-wm.com/learn/financial-planning/what-are-your-financial-advisors-qualifications/

Most people know the standard 401(k) contribution limit. Very few know about the much higher total additions limit and the powerful strategy hiding in the gap between the two.

In this episode, we break down the mega back-door Roth strategy: what it is, how it works, who can use it, and what the long-term numbers actually look like for families who take full advantage.

We cover the difference between pre-tax, Roth, and after-tax 401(k) contributions, how after-tax contributions can be converted to Roth to create permanent tax-free growth, and what plan features are required for the strategy to work. We also discuss the special opportunity available to self-employed individuals through a Solo 401(k), why high-income earners benefit most, and how this strategy compares to the standard back-door Roth IRA.

For families with strong cash flow looking to maximize their tax-free retirement savings, this is one of the most significant planning opportunities available under current tax law.

Thanks for listening!

For more details, check out our blog post at https://pw-wm.com/learn/financial-planning/mega-back-door-roth/

Ever wonder why two financial advisors can offer similar services but charge very differently and why it matters?

In this episode, we break down the five most common ways financial advisors are compensated: commissions, hourly fees, flat project fees, retainers, and AUM-based fees. We explain how each model works, the incentives each structure creates, and why understanding your advisor's compensation is one of the most important steps in evaluating the advice you receive.

We also discuss why searching for the lowest fee can often be a costly mistake and what questions to ask any advisor before engaging them.

If you want to understand what you're really paying for and ensure your advisor's incentives are aligned with your goals, this is an episode you won't want to miss.

Thanks for listening!

For more details, check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/a-simple-guide-to-advisor-compensation/

What if you could borrow at rates comparable to U.S. Treasury yields without going to a bank?

In this episode, we break down box spread loans - a lesser-known strategy that allows investors to access liquidity from their portfolio at highly competitive rates (currently under 4%). We explain how box spreads work, why institutional investors have used them for years, and when they may be a smarter alternative to traditional lending options.

We also discuss key considerations, including potential tax treatment of the interest expense, practical use cases (like bridging a home purchase or avoiding the realization of capital gains), and how to structure a box spread loan to reduce the risk of a margin call if markets fluctuate.

If you’re looking for flexible, low-cost financing without disrupting your long-term investment strategy, this is an episode you won’t want to miss.

Thanks for listening!

For more details we recommend that you check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/how-the-wealthy-borrow-box-spread-loans/

In this episode, we break down one of the most misunderstood parts of the financial industry: the difference between financial advice and product sales and why it matters more than most people realize.

Most people seek out a financial professional because they want advice. They want to confirm they’re on track, want help building a comprehensive plan, or are seeking guidance for a specific financial decision. What many don’t realize is that the financial industry has historically been structured as a sales-based business. According to feeonlynetwork.com, fewer than 2% of the 295,000 financial professionals in the United States can be classified as Fee-Only for the advice they provide.

We explore how compensation, sales quotas, and limited product offerings can influence recommendations, often blurring the line between objective advice and a sales presentation. We end with a simple recommendation of how to quickly identify advisors who have prioritized advice and eliminated the sales-based commission and revenue sharing incentives from their practices.

If you want to better understand the incentives behind the advice you receive, this episode will give you a framework to ask the right questions and choose a financial professional that is right for you.

Thanks for listening!

For more details we recommend that you check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/why-financial-advice-vs-product-sales-matters/