Episodios

  • 3 Factors to Consider Before Taking Your Social Security Benefits - Replay

    3 Factors to Consider Before Taking Your Social Security Benefits - Replay
    Oct 15 2025
    The complexity of Social Security calculations can cause some confusion around when someone eligible should file and claim their benefit. There are a lot of variables to consider and acronyms to decipher that can make Social Security feel like a confusing hedge maze. Let’s cut through some of the noise and clarify some of the most pressing questions around Social Security benefits and what questions you need to consider to determine what’s best for you and your family. Social Security has many layers, and the concept of eligibility can be pretty complex. It's not always clear when and how someone should begin taking their benefits because being eligible doesn't necessarily mean you should turn that benefit on.Social Security benefits can be turned on as early as age 62. Each year the benefit is delayed, you receive what is called a delayed retirement credit or DRC. These DRCs guarantee an automatic 8% increase in your Social Security benefit every year you delay up to age 70.There is also your full retirement age. This is the age when you are eligible to receive the full benefit without any offset for having earned income. Earned income being income from employment, which is different from income received from investments, pensions or annuities.For those born in 1960, or later, your FRA is age 67. Benefits are calculated by the Social Security Administration by taking 35 years of earnings that are indexed for inflation. Any years you didn’t work are counted as a zero in your average earnings calculation.These annual amounts are then totaled and divided by four and 20 months to arrive at the monthly figure known as your average indexed monthly earning. This number is different from your benefit amount. The SSA then applies a formula to that number which determines your primary insurance amount or PIA and this is your monthly Social Security benefit.If you choose to take your benefit before your FRA while employed, there's an offset that can significantly reduce the benefit if your income exceeds $21,240 in 2023. This reduction is $1 for every $2 of earned income over the limit. In the year you reach your FRA, the limit increases to $56,520 in 2023, with a benefit reduction of $1 for every $3 of earned income over the limit.After you've reached your FRA there's no earning limits and you receive the full benefit with no income offsets.Provisional income comes into play after your benefits are activated. Your provisional income is calculated by taking your adjusted gross income plus half of your Social Security benefit.If that total is less than $25,000, your Social Security benefit is not subject to federal tax. If it is above 25,000, but below 34,000, 50% of the benefit is taxed, and if it's above 34,000, 85% of the benefit is taxed.If you're a government employee, there's something called a Windfall Elimination Provision, or WEP. And there's also a Government Pension Offset, or GPO.There are three common conversations we have with clients when it comes to Social Security. The first thing is determining the breakeven point.One method for deciding when to take Social Security benefits involves calculating the breakeven point, this is the future point in time when the value of one option equals that of another.For example, if your FRA benefit is $2,000 a month, and $1,400 at age 62, there's a $600 a month difference. When compared to waiting the five years and taking the full amount, the breakeven point would be 11.6 years.Something else to keep in mind is that by taking a benefit early, you reduce the amount of spousal benefit made available since the benefit in and of itself has been reduced and this could be an important consideration.The second consideration relates to one's health and longevity. If you don’t expect to live past that breakeven point, taking the benefit early might make more sense.From this perspective, it could be a win-win situation if they start receiving benefits early and they live longer than expected because the payments continue.We can’t know our lifespan for certain, but if you're in poor health, taking benefits early might be a reasonable option.The third consideration involves a person's retirement income requirement.Many clients we work with see Social Security simply as a piece of the retirement income strategy, and aren't necessarily concerned with breakeven points as much as they are with maximizing their assets and the resources. Many clients opt to turn their Social Security benefits on instead of tapping into their assets in order to maintain growth.Using assets to generate income in retirement also comes with variables that are hard to predict, like the conditions of the stock market and economic policy. Social Security, in comparison, is stable and easy to predict.Figuring out your retirement income requires careful planning, which is why it’s crucial to work with a professional that understands Social Security and its role in your retirement plan....
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    15 m
  • Rising Long-Term Care Costs: Strategies to Safeguard Your Retirement

    Rising Long-Term Care Costs: Strategies to Safeguard Your Retirement
    Oct 8 2025
    Brian Skrobonja talks about one of the most overlooked pieces of retirement planning — long-term care. He explains why preparing for care isn’t about being gloomy, it’s about protecting your freedom and keeping control over the life you’ve worked so hard to build. Expect to learn how to help prepare for care costs, protect your savings, and enjoy a stress-free retirement with clarity. Tune in to hear how to create a retirement plan that covers every “what if” retirement scenario. Brian starts by explaining why long-term care belongs in retirement plans. Long-term care is the piece that quietly shapes how much freedom you keep. Planning for it means you’re ready for life’s curveballs, not hiding from them.Brian reveals that if you’re 65 or older, there’s a 70% chance you’ll need some type of long-term care. This shocking number means long-term care is a reality worth preparing for. Brian shares what care costs today. Home health aid runs around $77,000 a year, assisted living about $70,000, and a private nursing room close to $128,000. And those are just today’s numbers, not tomorrow’s. Without a plan, those bills can eat through savings fast.For Brian, planning for long-term care doesn’t mean you’re pessimistic about life. A thoughtful plan helps keep your dreams alive even if your health changes.Brian shares Tom and Linda’s retirement story. They built a solid retirement, free of debt and rich with plans. Then Tom had a stroke, and their savings began to drain by $80,000 a year. Their story proves how quickly health events can rewrite even the best financial script.How long-term care shapes your life story. Brian says care isn’t just a medical issue; it’s a retirement event. It can shift finances, lifestyles, and even family roles. Brian reveals that having a strategy doesn’t erase every challenge. But it stops the burden from falling entirely on you, your spouse, or your children. Brian walks through planning choices, from paying out of pocket to using insurance. Each has pros and cons, and your goals decide what fits best. The key is to match your plan to your life, not someone else’s.Brian breaks down the pros and cons of traditional long-term care insurance. Brian reveals why Tom and Linda’s story is a wake-up call. They did almost everything right, yet one stroke changed everything. A clear plan could have protected their savings and eased Linda’s load. Stories like theirs remind us that planning is love in action.Without preparation, kids can be pulled into financial and caregiving roles they never expected. A solid plan keeps their lives intact and gives them confidence to support you. Planning helps protect everyone, not just your savings.How to see long-term care as part of a full life. Brian says it’s not just a health moment — it’s one chapter of retirement. You can decide whether it controls your story or blends into a life well lived. Final thoughts from Brian: He reminds us that ignoring care doesn’t make it vanish. Facing it gives you choice, dignity, and calm for the years ahead. That’s the gift every retiree deserves to give themselves. Mentioned in this episode: BrianSkrobonja.com SkrobonjaFinancial.com SkrobonjaWealth.com BUILDbanking.com Common Sense Financial Podcast on YouTube Common Sense Financial Podcast on Spotify References for this episode: https://acl.gov/ltc/basic-needs/how-much-care-will-you-need#:~:text=Someone%20turning%20age%2065%20today,for%20longer%20than%205%20years https://acl.gov/ltc/basic-needs/how-much-care-will-you-need https://investor.genworth.com/news-events/press-releases/detail/982/genworth-and-carescout-release-cost-of-care-survey-results#:~:text=The%202024%20survey%20found%20the,home%20increased%209%25%20to%20$127%2C750. https://www.healthyagingpoll.org/reports-more/report/long-term-care-are-older-adults-ready Alternative investments may be subject to less regulation than other types of pooled investment vehicles. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets. ---- BUILD Banking™ is a DBA of Skrobonja Insurance Services, LLC. Benefits and guarantees are based on the claims paying ability of the insurance company. Not FDIC insured. Results may vary. Any descriptions involving ...
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    22 m
  • The 7 Indispensable Steps in Building Your Wealth Strategy - Replay

    The 7 Indispensable Steps in Building Your Wealth Strategy - Replay
    Oct 1 2025
    If you tune into social media, there are a lot of influencers and gurus peddling one-size-fits-all financial advice and unfortunately plenty of investors base their strategies on what these people recommend. Find out why basing your investment decisions on what’s trending on TikTok is short sighted and discover the seven indispensable steps of building wealth that are the most common among our most successful clients. Conventional wisdom such as paying off mortgages, quickly maxing out 401(k)'s or buying only Term Life insurance can be short sighted.Wealth isn't created by following rules of thumb, random one-size-fits-all fixes, or chasing trendy financial tips. Wealth is created by developing a custom-tailored strategy that facilitates wealth creation and prepares you for the future.The wealthiest people aren't doing the same things as the other 99%.Avoid rushing and applying random tidbits of information without first creating a comprehensive wealth strategy. We all have to take a long-term strategic view of wealth creation.There are seven key steps in building wealth that are common amongst all of our most successful clients.The first step is understanding cash flow. Cash Flow isn't about monthly budgeting. It's a 12-month roadmap that outlines where your money will go including savings, investments, and day-to-day expenses.Effective cash flow management is about abundance and a focus on wealth creation.Budgeting operates from scarcity and measures success by such things as paying off debt or simply making ends meet. Wealth doesn't just magically form out of scarcity. Step two is really understanding your investment risk tolerance. Many investors carry far too much risk for their stated tolerance levels but have really no way of gauging what risks they're carrying.It's crucial to know where you fall on the risk spectrum and to work with a professional to help you tailor your investment strategy.Complete the questionnaire on our website to discover your risk tolerance and know where to start that conversation. Step three is to learn your tax allocation. Knowing how to help mitigate tax liabilities is an essential aspect of building and keeping wealth.Tax deferral methods like 401 K's can be useful in some situations, they are not what we would consider comprehensive tax strategies. A deferral is not a savings.Knowing how to allocate assets to mitigate tax liabilities requires an understanding of your entire financial picture.A professional trio of maybe a certified public accountant, CPA, certified private wealth advisor, CPW, or a tax attorney, is essential for making the most of the opportunities available to you. Step four is to understand investment verticals. The more public market investments that are acquired such as stocks, bonds and mutual funds, the deeper the portfolio vertically grows, but adding more of the same to your portfolio doesn't necessarily mitigate the exposure to the risk you're trying to diversify away from.Horizontal opportunities are outside of the same vertical such as real estate businesses, private equity, and life insurance annuities, and they don't share in the same risk pools that each vertical may be exposed to.Effectively diversifying reduces the risk in a portfolio overall and forms a stable foundation to build on.Don't put all your eggs into one vertical basket. Step five is establishing multiple streams of income. Relying on a single source of income, like your job or a single investment is a risky proposition.Businesses, royalties, passive income investments, or other consulting or freelance opportunities are all ways to create more than one stream of income.More sources of income mean your financial situation is more robust during economic storms and you have more capacity to take advantage of opportunities. Number six is to adopt financial delegation. There's usually an element of cost and trust when managing financial decisions in a DIY fashion. There comes a tipping point when the perceived savings of doing things on your own becomes an opportunity cost.The complexities involved with wealth management require specialized support from professionals.The cost of working with a professional can be seen as an investment when it opens up new opportunities and it allows you to focus on your strengths.Delegate specific financial tasks to professionals like accountants, lawyers, and financial planners. This allows you to focus your time and effort on enjoying the benefits of having the help and the division of labor helps ensure that all aspects of your financial life are managed optimally. Step seven is finding your purpose. Scroll social media and you'll find that there are countless examples of miserable wealthy people.Money certainly makes things easier and helps you afford some privileged experiences but happiness is derived from inside of ourselves. You'll never have enough money and there's always something more to achieve.Answering the question of what you...
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    14 m
  • Top 2 Questions Answered - Replay

    Top 2 Questions Answered - Replay
    Sep 24 2025
    In this episode, Brian Skrobonja answers the top questions he receives from people looking for help with their financial plan. He sheds light on why a plan is more than just picking stocks, what most people get wrong about passive income, and the benefits of knowing how much tax liability you’ll have in the future. Brian answers the top questions he receives from people looking for financial planning assistance. He starts by explaining why a financial plan is more than just picking a few stocks or bonds.Unfortunately, there are many situations where products are being sold instead of financial plans being developed. For example, an annuity salesperson sells an annuity to somebody and suggests that the product is the retirement plan. So, what does a good financial plan look like? According to Brian, the first step is defining what success looks like. Growing your money is not a goal. You must understand and clearly know why you are saving money. The other question Brian gets asked a lot is about passive income--what it is and why it’s important. Passive income is income that is generated from an asset; it’s not cash in hand from selling an asset. For Brian, a retirement income plan cannot exist without passive income.Next is knowing how much future tax liability you have. The question here is what will you do to mitigate those taxes and what strategy do you have in place right now to reduce what taxes you owe right now?The other big question you must address when building a financial plan is the dangers you will face now and in the future.Life doesn't run in a positive straight line. We have to consider health challenges, an unforeseen death, market declines, and other scenarios that can disrupt your plans.The unique approach that Brian and his firm take is that they are more interested in knowing what clients want in life, than following a process to try to flush out the problems that could potentially disrupt those plans, and find solutions to satisfy those things.According to Brian, a plan has little to do with products and everything to do with what you want and how you can make that happen.Brian reveals the amount people have to pay to access his services and why he settled on that particular figure. He also breaks down the definition of a professional--they get paid for their knowledge and ability to help you. If someone is working for free, you have to ask what value is being delivered and what is their motivation for offering a free service. Cost is only an issue when there's an absence of value and any fee without value is too high. Mentioned in this episode: BrianSkrobonja.com SkrobonjaFinancial.com SkrobonjaWealth.com BUILDbanking.com Common Sense Financial Podcast on YouTube Common Sense Financial Podcast on Spotify Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured. Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Gas and oil investments are speculative in nature and are sold by Private Placement Memorandum (PPM). Carefully read the PPM before investing. Certain accreditation requirements may apply. Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation.
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    18 m
  • Hidden Tax Strategies, with CPA Tanner Adams - Replay

    Hidden Tax Strategies, with CPA Tanner Adams - Replay
    Sep 17 2025
    Most business owners come into the financial game as the quarterback. They’re telling their CPA and financial advisor what they need and when they need it instead of working as a team to plan out a cohesive strategy. This needs to change. Listen to the latest episode of the podcast to learn why your business needs a financial team that works together, and how to incorporate tax planning strategies into your operation, so you’re not overpaying taxes and maximizing the odds of your long-term success. Tanner is a CPA with 22 years of experience in the tax world. Born and raised in Utah, Tanner was a natural mathematician and considered joining the FBI as an accountant but didn’t end up going that route. He spent 12 years with five different CPA firms, discovering what he liked and didn’t like, before venturing out on his own.The Trump tax cuts expire in 2025 and a lot of professionals are anticipating higher tax rates in the near future. One tax benefit that is likely to expire is the QBR deduction for small business owners.Every client is different, but one piece of advice that every business owner can benefit from is choosing the right entity. A lot will depend on what your lifestyle looks like and what you are already paying for.Tax deductions are great but finding tax credits is even better. A good example is the Research and Development tax credit, which can go back as many as three years.Most people wait until there is an immediate need to contact their CPA, but that leaves a lot of opportunity on the table.Tax planning is very different from tax preparation. Tax planning occurs throughout the year and is a more proactive approach that many don’t realize is an option.The relationship you have with your CPA is crucial and can play a pivotal role during tax season. With a good relationship you also get the benefit of your CPA’s experience in other industries. Taxes are changing all the time, so it helps to have someone you can reach out to throughout the year.Having a financial plan should incorporate tax mitigation strategies. You, your financial planner, your attorney, and your CPA should be working as a team to manage your business finances. The more they can communicate and work together, the more effective they can be.There are a lot of inefficiencies in your business by having your financial plan and tax plan operating in separate silos. Individually, everyone does their job well, but when working together they can really shine.Typically, there’s a three-year window on filing for a refund claim. If you feel like your current CPA may not be bringing all the opportunities to your attention, it might benefit you to get a second opinion.If you’re planning on selling your business, there are a few things to keep in mind. Is it a stock sale or an asset sale? Do you have clean and accurate records? Plan your sale as far out in advance as you can to make sure you have all that you need for a smooth transition.One of the most underrated and overlooked aspects of tax planning is your bookkeeping for your businesses. Monthly bookkeeping makes it a lot easier to plan and stay ahead of the finances and taxes compared to waiting until January or April to figure out what you have to do.If you make a lot of money, you're going to pay taxes, and that's just the way it is. But when it's a surprise, that's where the problem comes into play. Mentioned in this episode: BrianSkrobonja.com Common Sense Financial Podcast on YouTube Common Sense Financial Podcast on Spotify MTAconsulting.net Brian Skrobonja and Tanner Adams are not affiliated. There is no compensation exchanged between Brian Skrobonja and Tanner Adams. Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of ...
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    44 m
  • The 5 Billionaire Habits That Unlock Real Freedom

    The 5 Billionaire Habits That Unlock Real Freedom
    Sep 10 2025
    Brian Skrobonja talks about the five habits billionaires live by, habits you can use to create your own financial freedom. Tune in to hear the benefits of having ruthless focus, how frugality with purpose can actually give you more freedom, and why you need to start looking at your life in decades instead of paychecks. Expect to hear practical ideas you can start right away, like trying a 30-day luxury swap, creating a simple “not-to-do” list, and carving out time each week to invest in your own growth. These habits aren’t about making more money. They’re about making smarter decisions with the money you already have. Brian starts by explaining the habits billionaires live by, habits you can use to build your own financial freedom without ever needing their billions.Habit #1 – Relentless Focus. Brian reveals why focus beats chasing every opportunity. When you treat your biggest financial decisions as limited, you naturally filter out the noise. Billionaires like Warren Buffett, built their fortunes not by jumping on every hot IPO, but by concentrating on businesses they deeply understood, like Coca-Cola, American Express, and Apple, and letting those few bets compound for decades. Habit #2 – Frugality with a Purpose. Learn how to spend with intention instead of deprivation. When most people hear “frugality,” they think of avoiding fun and living on less. But the kind of frugality billionaires practice is built on ensuring money serves a purpose instead of wasting it away.Learn how trimming just one recurring expense and redirecting it into savings, investments, or even a passion project can completely shift your financial future.Try Brian’s 30-day luxury swap challenge: Pick one expense that’s nice, but not essential, maybe a subscription or upgrade you don’t really need. Cut it for a month, and redirect that money toward your retirement account, debt payoff, or travel fund. Habit #3 – Long-Term Vision. Brian emphasizes that one of the most dangerous habits with money, and in life, is thinking too small and too short-term. Most people plan only until the next paycheck, vacation, or bill. But billionaires stretch their thinking into decades, sometimes even generations.Learn how to apply Jeff Bezos’ “Day One” mindset and how it can help keep you hungry, curious, and willing to make bold moves for the long game.Brian shares how you can apply this principle to your own finances and career, so that you’re not just reacting to what’s in front of you, but building something designed to last. Habit #4 – Investing in Knowledge. Brian shares why billionaires obsess over learning: They treat knowledge like an asset that compounds faster than money. The goal of reading and studying isn’t to become a walking encyclopedia, it’s to build a mental toolkit that helps you spot opportunities, make sharper decisions, and avoid costly mistakes. Habit #5 – What Billionaires Don’t Do. Learn the power of ruthless elimination: Billionaires don’t have more hours than the rest of us, the difference is what they choose to ignore. Brian explains that billionaire success comes from cutting out distractions, declining projects that don’t align with their goals, and saying “no” to almost everything that doesn’t matter.How to create your “Not-To-Do List”: Brian challenges you to write down three things you’ll ignore for the next 30 days. Maybe it’s obsessively checking your portfolio, doomscrolling the news, or saying yes to commitments that drain your energy. According to Brian, billionaires are successful because they know what to work on, what to ignore, and they build habits that compound for decades. The good news is you don’t need a billion dollars to build these habits. Mentioned in this episode: BrianSkrobonja.com SkrobonjaFinancial.com SkrobonjaWealth.com BUILDbanking.com Common Sense Financial Podcast on YouTube Common Sense Financial Podcast on Spotify References for this episode: Lesson 1 – Relentless Focus https://www.fool.com/investing/general/2004/05/05/warren-buffett-and-his-20-punches.aspx https://www.investopedia.com/articles/stocks/08/buffett-style.asp?utm_source=chatgpt.com https://fortune.com/2023/11/20/elon-musk-10-laws-of-management/ https://www.forbes.com/profile/charles-koch/?utm_source=chatgpt.com Lesson 2 – Frugality with Purpose https://www.forbes.com/sites/michaeldominguez/2018/02/20/the-frugal-habits-of-the-ikea-founder-that-built-a-40-billion-company/ https://www.businessinsider.com/how-warren-buffett-spends-money-net-worth?utm_source=chatgpt.com https://www.marketwatch.com/story/warren-buffett-reveals-how-much-he-spends-on-breakfast-2017-05-08?utm_source=chatgpt.com https://finance.yahoo.com/news/multi-billionaire-still-calls-cable-165400872.html Lesson 3 – Long-Term Vision https://www.aboutamazon.com/news/company-news/amazons-original-1997-letter-to-shareholders https://www.forbes.com/sites/quora/2017/04/21/...
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    22 m
  • Four Big Financial Planning Mistakes Business Owners Make - Replay

    Four Big Financial Planning Mistakes Business Owners Make - Replay
    Sep 3 2025
    Entrepreneurs by nature are continuously occupied with running their business and wearing multiple hats throughout the day just to keep things running smoothly. Unfortunately, that leads entrepreneurs into making a number of common mistakes. Mistakes that damage the long-term success and potential of their business. Listen to the latest episode of the podcast to learn about the four most common financial mistakes entrepreneurs make that put the future of their business at risk, and how you can avoid them. Many entrepreneurs find themselves underserved when it comes to financial planning and often rely too heavily on their CPA for financial advice.One common mistake entrepreneurs make is assuming that as long as they meet payroll, stay current on taxes and receive payments from customers, their business is financially healthy.The problem is CPAs primarily focus on looking backwards and reviewing the previous year or quarter to meet tax filing deadlines, instead of looking forward and making strategic plans for the following year.Proper financial planning can help your business reduce its tax liability and increase its profitability.Another common mistake is entrepreneurs take the profit of their business as income, which may not be the most efficient method of distribution. Proper planning helps find the balance between income and profit.Financial planning can also help you determine whether your business structure is still appropriate for where you are or if it needs to evolve.Financial planning also helps mitigate risk, and there are three major risks that every business faces: death, disability, and divorce. Any of these risks becoming a reality can seriously derail a business and its long-term potential.Entrepreneurs tend to visualize positive outcomes rather than seriously considering what could go wrong and how they should address those potential problems. Having a financial plan can include agreements and other triggering events that can help facilitate a smooth outcome when facing such events.Another common mistake made by business owners is treating the business exit as merely a transaction rather than a transition. Exiting the business involves more than just the sale itself; it requires planning for life after the exit.Owners frequently overvalue their business leading to unrealistic expectations regarding the outcome of the sale. Many business owners also underestimate the time and effort required to prepare for a successful exit.Preparation for a sale can take years of planning, if done right, and should be incorporated into an overall financial planning process.Another common mistake is succumbing to the pressure of spending money to avoid tax liabilities. While tax planning is essential, it should not be the sole, driving factor behind financial decisions.FOMO (fear of missing out) can also lead to poor cash flow management, where entrepreneurs may be tempted to seize every opportunity that comes their way without considering its compatibility with their business vision.By having a well defined cash flow plan, entrepreneurs can allocate resources efficiently, reduce financial stress, and build wealth inside and outside of their business while helping to maintain stability during both prosperous and challenging times.A cash flow strategy is an integral part of an overall financial plan and acts as a roadmap, guiding financial decisions and helping you make the most of the cash flow. Mentioned in this episode: BrianSkrobonja.com Common Sense Financial Podcast on YouTube Common Sense Financial Podcast on Spotify BrianSkrobonja.com/Resources Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS. The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Skrobonja Wealth ...
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    13 m
  • How SDLI Can Provide Flexibility - Replay

    How SDLI Can Provide Flexibility - Replay
    Aug 27 2025
    High income professionals face a unique situation when it comes to their retirement. You have the dual challenge of having your money tied up in your investments and also looming tax burdens once you retire. Listen to the latest episode of the podcast to learn about a Specially Designed Life Insurance policy, also known as a life insurance retirement plan, and how it could be the wealth preservation tool you’ve been looking for. A high cash value life insurance policy can help facilitate tax-advantaged growth that standard retirement accounts may not be able to match.Many professionals spend a considerable amount of effort accumulating wealth for most of their life only to find themselves in a bind: their money is inaccessible with looming tax burdens.High Income professionals often face a dual tax burden where their current high income places them in a high tax bracket, reducing the net income they have available for investment. Meanwhile, the money you've diligently saved in your retirement plan will be subjected to potentially hefty taxes upon withdrawal later in life.Retirement accounts are great vehicles for long-term savings, but they lack flexibility, and you're penalized for early withdrawals leaving you without a readily available source of funds for unexpected opportunities or emergencies.For high income individuals grappling with these issues, a Specially Designed Life Insurance policy may be the answer.A Specially Designed Life Insurance (SDLI) policy utilizes a high cash value life insurance policy to facilitate tax-advantaged growth and offer flexibility that standard retirement accounts simply can't match.Cash value builds over time in the policy, growing in a tax-deferred basis mirroring the benefits of a retirement account, yet the cash value can be accessed at any time through a non-recognition policy loan.If properly managed, these policy loans have flexibility and are not required to be repaid during your lifetime and can be simply deducted from the death benefit or cash surrender value when the policy pays out.The SDLI strategy enables you to tap into your wealth when needed, providing the liquidity to seize investment opportunities or meet unexpected expenses.The policy loans do have an interest charged on them, but well-designed policies provide an opportunity to offset the interest.Not all life insurance policies offer the features necessary to execute the strategy effectively. It's a delicate balance that must be carefully managed and is best done with the help of a professional.This strategic tool offers several other key advantages for wealth management, asset protection and estate planning.In many jurisdictions, life insurance policies are protected from creditors providing a shield for your assets.Life insurance can also play a crucial role in balancing out an estate amongst surviving family members.A life insurance policy can also provide immediate liquidity to family members or business partners upon a death, ensuring the continuity of a business or farm without the need to sell off assets.Life insurance proceeds can also provide a tax free inheritance to your beneficiaries, helping to preserve your legacy. A common pushback against using life insurance as an accumulation vehicle is the perception that it is expensive and takes a long time to accumulate substantial cash values. This is because most common policies are focused on maximizing a death benefit instead of rapid cash value accumulation.While there is an undeniable cost associated with a special desire life insurance policy, it's crucial to consider this expense in contrast to the potential tax liabilities.Retirement account distributions are generally taxed as ordinary income. For a high income individual, this can be losing a substantial chunk of your retirement savings to taxes.In many cases, the cost of a Specially Designed Life Insurance policy could be a mere fraction of what the tax liabilities may be on an investment growth over time.The true cost of these policies become apparent only when considering the full financial picture, including current and future tax burdens, access to cash and long-term wealth accumulation.A Specially Designed Life Insurance policy is not a catch-all solution but rather a tool within the context of a comprehensive wealth management plan. Mentioned in this episode: BrianSkrobonja.com Common Sense Financial Podcast on YouTube Common Sense Financial Podcast on Spotify BuildBanking.com Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax ...
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