Read

Bulls, Bears, and… Red Pandas?

Animal metaphors are all over the business world. There are cash cows and fat cats and top dogs—oh my! 

And maybe you’ve heard of bull markets and bear markets? Bulls swipe their horns up to attack; bears swipe their paws down to attack. Bullish investors are preparing for prices to rise; bearish investors are preparing for prices to fall. These terms are common in investment and market news, but as you’ve learned with us, we don’t like to follow the herd. (See what we did there?) 

We don’t need an animal mascot that’s ready to “attack.” Business isn’t war. We’re trying to grow something here. 

But we could use an animal that’s flexible, light on its feet, and can think for itself. It should be a strong climber, too—ready for all the ups and downs of investing! 

And if we’re picking our own mascot, would it really be so bad if it also happened to be adorable? 

Enter, the red panda.  

Maybe you’ve already heard of these little cuties, but did you know how unique red pandas are? Red pandas are sometimes confused with foxes, traditional panda bears, and even racoons, but they are none of those things! In fact, they are the only species within their genus. They’re one of a kind.  

At first glance, you might also think most financial advisors would all be alike. But once you get to know us, you might find out we’re more like the red panda. It’s hard to put us in anybody else’s category. We’re unique, and we can’t help but be ourselves. 

As for the other qualities? Red pandas hit the mark.  

They’re fabulous climbers, easily scaling mountains and getting up and down trees and bamboo forests. They aren’t afraid to climb down headfirst, nearly vertical (it’s like they know that even the steepest drops won’t go down and down and down forever!). Red pandas have adapted over time and have a “false thumb,” an extra little feature that helps them grip as they climb all over. Flexible? Check.  

On their feet, red pandas have special hairs on the soles so that they don’t sink in the snow, even when they’re running and have to change directions. Their bushy tails also help them stabilize, keeping their balance as they walk along tree branches. Light on their feet? Check. 

Red pandas prefer solitary thought to group-think, so we know they won’t be getting caught up in any herd mentality or stampedes. 

And to top it off, did we mention that red pandas are a symbol of good fortune in some cultures? 

No guarantees, of course, but beyond the bulls and the bears… red pandas might be the animal mascot we’ve been waiting for. 

Clients, what do you think: is it time for 228 Main to adopt an animal friend for a mascot? Call or write in, any time. 

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

Bulls, Bears, and Pandas—Oh My! – 228Main.com Presents: The Best of Leibman Financial Services

This text can be found at https://www.228Main.com/.

Public Policies and Personal Choices 

Clients, there’s been plenty of buzz in the public sphere. Policy changes are on their way in many arenas, including potential tax breaks, increases in the national debt, and cutbacks in benefits.

Some of you have been wondering what it will all mean for you. It makes sense to have questions, especially when so many issues are in play right now. Here are a few of the policies that could impact you or someone you know:

We know the pendulum swings back and forth, and mandates to change law are sometimes modified before they can even go into effect. But it still can pay to do some planning when changes could be headed our way.

You may have questions about where to start, and the answers will depend on the particulars of your own situation. Instead, we’ll try to speak generally to some of the personal choices you might consider.

  • For those who are years or decades away from retirement, you might commit to higher monthly deposits to your long-term investments. If Social Security benefits could be lower when you reach retirement, you might offset the difference by socking away more now toward a 401(k), Roth IRA, or other long-term investment balance.
  • For those who depend on ACA or exchange health insurance and receive income-based subsidies, you could keep some extra flexibility in your short-term budget until you know how the subsidy cuts will affect you. Premiums may rise significantly for some people.
  • For those who are retired and have resources to spare, you might consider some targeted philanthropy. Individuals and families are facing cuts to health and nutrition programs, cuts that helped fund the tax breaks. For example, our local and regional food banks are under greater stress as some programs and grants have already been eliminated, and reductions in food benefits will only increase the number of people seeking help.

No matter what stage of life you find yourself in, it may be more important than ever to make sure that your long-term money is invested for the long term, meaning that long-term money is invested for growth—rather than stability.

Think of it this way. Higher government deficits may mean higher inflation, which typically makes the value of things go up while hurting the purchasing power of dollars. Rather than burying those dollars in the backyard—where the erosion will be worse!—we put them to work, buying stock.

Stock represents indirect ownership of the real assets of companies—it’s in mining operations and railways, factories and foundries, offices and stores, and on and on. Investing for the long term means we have a chance to capture the growth of dollars out there in the world, at work.

A lot of it comes back to this: so much seems beyond our control, yet it always pays to think creatively. How do we make the most of it?

Call or email us when you’re ready to talk.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

Public Policies and Personal Choices – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Enjoying the Fruits of Your Labor
photo shows a basket of apples and a hand reaching in to pick a red one up

by Mark Leibman

We’re inspired by recent conversations with clients and friends whose plans, as they say, have come to fruition.

Fruition—the realization or fulfillment of a plan or project—scarcely begins to describe the satisfaction and joy we’ve seen.

What types of projects?

There’s recent retirees who downsized to a maintenance-free home, going to art festivals instead of pulling weeds, having more dinners with their descendants, and seeing more ball games. There’s the people going on that Alaska cruise or the tour of Italy. There’s the people turning hobbies into true avocations.

These are just some of the plans we’ve seen come to fruition for people we are close to.

A wise person once said that a plan is a dream put into writing. We are in the business of trying to make the arithmetic work for people who would like to try to make their dreams come true. We’ve written before about the best way to retire, and the point is, dreams are personal.

What are you trying to do? Where do you want to wind up?

One of the privileges of long experience in our work is seeing the realization or fulfillment of those plans made long ago. But life sometimes throws curve balls. So we’ve also seen adjustments made by people who would have preferred to avoid the need to adapt. Not everyone we love lives as long as we wished, health may be fleeting, and circumstances often present a mixed bag. Nevertheless, sound plans usually put us in better shape to deal with the unanticipated.

Money is not the most important thing in the world. But it is also true that our resources can buy us options we might otherwise not have. Wealth may free up our time, and time is what life is made of. Dreams and arithmetic working together may make the best things more likely.

If you would like to discuss your dreams and plans in greater detail, please write or call.

Want content like this in your inbox each week? Leave your email here.

Just One Founder, and Just One Team

What a journey thus far!

I started at the kitchen table. Bought the office building at 228 Main when I could neither afford it nor afford to pass it up. Struggled and juggled for years. Fit a snowbird lifestyle into the middle of it. Survived personal tragedy, a cruel disease that slowly took the life of my high school sweetheart.

And through it all, we grew. More and more people entrusted more and more wealth to our care. More and more teammates helped me hold up my end of the deal.

They say it is not the strongest or the smartest who survive and thrive, but those who adapt and adjust to change.

But then, there are the things that have not changed. We are a team of four advisors—myself, Greg, Caitie, and Billy—along with two full-time service team members, Whitney and Brenda. All of us serve one book of business. Everyone gets access to the same set of services. One story, one philosophy, one book of business.

You may not recognize how different this makes us. (But you also know I’ve never been one to follow the crowd!)

  • In an industry seemingly focused on getting new clients and finding new money, we instead aim all of our intentional efforts entirely at you, our clients. Don’t have time to chase “new money.” Not me, not my teammates.
  • Eliminating sales activity enables us to put investment research, portfolio management, and communicating with you at the center of our work. Many other investment advisors outsource all of that into model portfolios managed by others and buy canned communications, all so that they can go look for new customers.
  • Paradoxically (or not), when we stopped pursuing prospects, we began attracting more clients. People tend to like it a lot when their buckets grow.

Many financial advisor shops, however, are a collection of sole proprietors, each on the prowl for new business all the time. There may be other four-advisor shops that work more like four separate teams that happen to compete nearby each other—not like teammates who play together, toward the same goal.

We believe we are organized differently—and better.

With a team set-up, any client can call any one of us. Four advisors, two service team members, one team. No matter who picks up the phone, we’re committed to getting you pointed in the right direction.

That’s what the team means to me, today.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

Just One Founder, Just One Team – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Wonder How Wonder Woman Does It?

by Caitie Leibman, CEO

More content from Caitie

As a parent, I’ve noticed a lot of messages out there telling me that “moms are superheroes.” (Seriously, you can get it on t-shirts and coffee mugs and wine glasses and keychains and anything else you can think of.) 

There’s this idea that a woman today is someone who can handle anything and get it all done. She’s strong. She’s always ready. She basically needs to be Wonder Woman: fight for what’s right, get the job done, and somehow avoid a wardrobe malfunction! 

Whether it’s parenthood or my personal life or my career, I know I don’t need any superhuman expectations piled on me. Regular, everyday expectations are plenty, thank you.  

Instead of comparing myself to a superhero, I prefer to think of myself as a superhero in a superhero movie. 

I never have to go it alone. If this is a superhero movie, then I get my own stunt double! I get a makeup artist and an assistant and a crew and editors—and we’re all in it together. Same goal. We’re all part of making the story happen. The production only comes together when we each pitch in. 

These things are true of my real life, too. I bring my time and talents to work so that I have a chance to use them in service of my clients. I get help from my teammates when I have a question or could benefit from someone else’s strengths. I don’t have to do it all, and neither do my teammates.  

Clients, I want you to know that we go to work for you. We want your story to come to life, and we feel lucky to be part of the production process. If it was reasonable to expect everybody to just figure it all out on their own, we wouldn’t be in business—and a lot of life would probably get more stressful, trying to tough things out alone. 

Each of us is the star of our own show, but think about how long the credits would be. 

Clients, reach out any time. We’re glad to be fighting for you, together. 

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

Wonder How Wonder Woman Does It? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

To Be or Not To Be—and Everything in Between

“To be, or not to be: that is the question.”

In his famous line, Shakespeare’s Hamlet was talking about life and, well, its end. The play has many timeless themes, but we never want to mistake drama for wisdom. (Hamlet was a desperate man pushed to the edge, remember!)

Perhaps we could focus on how things happen between now and then. The idea of longevity can have a lot of layers. Consider these three:

  • Lifespan: how long you live.
  • Healthspan: how long you live independently.
  • Wealthspan: how long you live independently, where and how you want.

While we don’t get to dictate how life unfolds, our attitudes and habits can influence all of these things. Our access to health information and data is increasing every day. Many of us already know the decisions that will help us prevent heart disease, and diabetes, and cancer, and Alzheimer’s. That’s power.

For my part, I’m having a good time on this earth. I try to pay attention to ways I might stretch out my healthspan: I am a health hobbyist, you could say. Health is not a formal part of our business, however.

Instead, in our professional capacity, we work with you on your wealthspan—striving to grow your bucket and to connect your money to your life, in order to invest wisely and spend well.

It all goes together: the healthier we are, the longer we might live. The longer we live, the greater the opportunity to compound our wealth—and decide how to deploy it fruitfully.

We can’t know exactly what’s in store for each of us. But here in the present, we can make it more likely for the best things to happen. For many of us, that means living independently, where and how we want, for a long time: our wealthspan.

It’s a grand adventure we’re on, isn’t it?

Clients, if you would like to talk about this or anything else, please email us or call.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

To Be or Not to Be – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Spicing Things Up: Catsup, Ketchup, or Catch-Up?
graphic shows a piggy bank looking on curiously at a bottle of ketchup

One of these is not about tomato-based condiments.

In the world of IRAs—Individual Retirement Accounts—we consider the beginning of January through tax filing day “catch-up season.” Whether Roth or traditional, if we are eligible to make contributions, then we can catch up on our 2024 contributions even though 2024 is over.

Those just learning about the power of Roth IRAs can use this season to make two years’ worth of contributions at once. The limit on contributions is $7,000 for 2024 plus $7,000 for 2025. Another note to know: for people who turn 50 by year-end, there is an extra $1,000 per year that can go in—a “catch-up” contribution.

Consider even just the standard contribution limits. Imagine if you had $14,000 in a regular account (in which you pay tax on earnings) and were eligible to contribute to a Roth IRA for 2024 and 2025. If you won’t be spending that money in the next few years, the question comes down to whether you would like to never pay tax on earnings on that money, ever again, for the rest of your life.

If that value were to double over the years and double again, as sometimes happens with long-term investments, there might be $56,000 available later with zero tax. And if you didn’t spend it, your beneficiaries would receive it, free of income tax.

No guarantees, of course: the markets go up and down.

The way Roth IRAs work, after five years your contributions can be withdrawn without tax. At the later of five years or age 59½, the earnings may be withdrawn without tax. There is a maximum earnings limit on Roth contribution eligibility; we’d be happy to visit with you about your eligibility. Simply email us or call if you have an interest in learning more.

There is a whole world of other lifetime tax reduction strategies related to Roth conversions; we’ll talk about those another time.

For now, happy catch-up season, one and all!

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA.

A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss.

This information is not intended to be a substitute for specific individualized tax or legal advice. Neither LPL Financial, nor its registered representatives, offer tax or legal advice. We recommend you discuss your specific situation with a qualified tax or legal advisor.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

Spicing Things Up: Catsup, Ketchup, or Catch-Up? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

The Last 30 Years and the Next 30 Years 
By Greg Leibman, Billy Garver, and Caitie Leibman

Friends, a lot of things can happen in three decades. In December 2024, our President Mark Leibman celebrated 30 years of affiliation with LPL Financial. There is a lot of work a person can do in that amount of time, and Mark has chosen to spend a lot of it with you and on this enterprise we now share.

He still intends to work until age 92, and he is energized by the work. Mark’s the founder and he’s still in it for the long haul.

So what’s our story, we “next generation” advisors? All three of us may very well have more years in this industry left ahead of us than there are behind us. It behooves us to remember the importance of the long view.

Thirty years. Something about it just sounded so lovely, it got stuck in our brains.

Back in December, we also celebrated our system of longevity discounts. This is one of the ways that we at 228 Main try to walk the walk: we reward the commitment it takes to become an effective investor, so the program includes fee reductions at certain milestones.

Clients get a fee reduction after 5 continuous years with us and then again at 15 continuous years. Beneficiaries or descendants who come on board with us may also take advantage of their forebears’ start date. In this sense, the longevity discount becomes a “legacy” discount.

But this stuff is all contagious, so we couldn’t help ourselves. We told Mark that we needed to add another level: why not include a 30-year discount? Can you imagine the joy of getting to tell a client of 30 years that you would like them to start paying you less? We could. We’re hungry for it.

And we wanted to give Mark this chance. Another excuse to celebrate some of his oldest friends? Yes, please. Why not?

This is what it’s all about. Growing the buckets. For the long haul. As a team. We’re trying to put our money where our mouth is—which is to say, we’re trying to put our policies where our values are.

Want to talk about this or anything else? Write or call, any time.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below

The Last 30 Years and the Next 30 – 228Main.com Presents: The Best of Leibman Financial Services

This text can be found at https://www.228Main.com/.

The Best of Both Worlds: Learning from the Past, Building for the Future 
By Greg Leibman, Billy Garver, and Caitie Leibman

This time of year often invites some reflection. We’ve said goodbye to 2024 and are welcoming 2025. We’re thinking about beginnings, endings, and transitions.

In Roman mythology, Janus is the god of these things. He had two faces, one looking forward and another looking back. His purview included doors, archways, and gates.

It feels natural at this time to take stock of where we’ve been—and think about the best way forward. That’s what we’re doing at 228 Main.

When Mark founded this enterprise decades ago, it was just him at a kitchen table. In 2000, he moved the business to the digs at 228 Main Street in beautiful downtown Louisville. He knew that he was on to something, that he could keep building something special on a simple but powerful foundation: if he took care of his clients, their business would take care of him.

And the work kept growing. In those intermediate years, he hired staff to help him manage. Among their ranks were family and friends who provided administrative and service support.

Since 2020, the staff has continued to transform. Today, the team is both more specialized and more interwoven. The three of us “next-gen” advisors are co-owners with Mark, with three portions of 24.9% of the shares to his 25.3% portion.

Now we’re in transition, preparing for the decades ahead. There are six of us total on the LFS team, each one still growing and learning. But it takes all of us to make sure our three key activities can happen: 1) We talk with you to sort out what you are trying to do in life. 2) We research investment opportunities. 3) We manage your portfolios.

As we do these things, we’re planning a structure for the enterprise that is collaborative and collegial, where every generation and every teammate puts their gifts on the table for the benefit of all: the wisdom of experience, the energy of youth, and all the diversity of talents and interests we bring.

Many of you know from company lore—and your friendships with Mark—that he intends to work to age 92. (It’s a whole thing for him, a vision that he gleaned from some important mentors early in life. Ask him sometime.) We can’t know the future. And some of us may actually have more years ahead of us in this line of work than there are behind us.

But it’s fair to say that we are all indeed in this for the long haul. So how do we make this thing more sustainable?

We’re all committed to some important things: continuing to build on our strengths and what’s working and staying open to the future and all the opportunities ahead. We learn and grow from both perspectives.

Like the Roman god Janus, we’re looking back and we’re looking forward. Working with the foundation of our history and the road ahead—that’s the superpower of this team.

Want to talk about this or anything else? Call or write, anytime.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

Best of Both Worlds – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Actions Speak Louder?
By Mark Leibman, President

In business, it is popular to claim that one is “client-centered,” that the focus is on the clients. Well, we should hope that any service would be client-centered!

So what exactly does that mean to us?

I’ve often said that our only business objective is to grow your buckets. When you do well, we do well. We talk about that a lot, along with the importance of the long view.

So a few years back, when your individual successes began to add up to success for our firm, our costs began to go down. With the savings, we reduced the fees for our loyal clients.

We put in a discount for those with five years’ tenure, and another for fifteen years.

We reviewed these discounts recently, and they spread across the more than 50% of portfolios that have been with us more than fifteen years and the 25% more that have notched at least five years.

It is gratifying to enjoy such loyalty! And it’s also a celebration of the long time horizon that effective investing requires. The effects of compounding have a much greater impact over the long term, too—maybe you’ve noticed?

Many of you have heard me say I plan to work to age 92. But is it work, to talk all day with people I like about stuff I am interested in? It does not seem that way to me. It is an honor to have worked with so many of you for so many years. And it gets easier for me, the bigger and more capable our team here at 228 Main.

Some companies spend their time and money and energy chasing prospective customers. We’re doing very well by striving to grow the ones we already have—and we think that makes things more pleasant for you, too.

Those dollars in fee savings could not be going to nicer folks, in my view. Thank you all, for everything.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

Actions Speak Louder? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.