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Thirty Years—and Counting
By Mark Leibman, President

50 years ago, I was finishing my first semester of college at the University of Nebraska at Omaha.

40 years ago, I became registered to work with investment products.

30 years ago, I affiliated with LPL Financial—December 1994.

That connection was the seed that sprouted into the business you see today, Leibman Financial Services at 228Main.com, online and on Main. We are an SEC-registered Investment Advisor, LPL still custodies client assets and provides services, and I remain a registered representative of LPL.

We might not be here today if not for two features of our relationship with LPL. The first is the spirit of independence, the freedom to build our business to fit our vision—not theirs.

The second is the unwavering support through the years for the voice of the advisor in digital media.

For a while in the middle, the health of my high school sweetheart became an existential crisis. I needed the business for the health insurance and resources to keep her alive. But her care required so much of my time that I could not communicate one-on-one with our clients, as I had before, in the volumes needed to maintain relationships.

That LPL Financial supported our voice in 21st century communications made all the difference. Email newsletters, blog posts, videos, social media—with these, we could talk with all of our clients at once.

Cathy Livingston Leibman fought for years after diagnosis, saw children marry and grandbabies born, before she passed. And I learned, in the daily triage of life, how to focus on the essentials like never before.

The business thrived in the face of adversity, becoming too large for me to operate by myself. So we transformed the investment advisory work into an enterprise, collaboratively owned and managed by three next-gen family members and me. We are now better built for the decades ahead.

And I have more time than ever to talk with you.

We have choices in our affiliations. The choice I made thirty years ago has stood up, and I hope it always will. In a time when allegiances are bought and sold, and short-term profit drives a lot of business decision-making, playing the long game is a competitive advantage.

Clients, that’s how we work with you, that is how we conduct our own affairs, that is why we are marking this 30th anniversary.

Thank you all, for everything.

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Compare and Despair?

By Caitie Leibman, Director of Communications

It’s said that comparison is the thief of joy. The grass is always greener, the Joneses are doing better, and no one else seems to have blemishes in their highlight reel.

This might feel like a modern problem, with how easy it is to fall into a cycle of “compare and despair” in this age of social media. But comparing ourselves to others is a very human tendency. Any strong group may feature some healthy competitiveness, for example.

But comparison becomes a problem when we forget to add some context back in. On LinkedIn, for example, we aren’t just seeing what our peers are up to on an average Tuesday: we’re also being fed content from the champions of every industry, as they chalk up lifetime achievements in real time!

What’s the antidote to the cycle of compare and despair? I sometimes daydream about deleting all my accounts, finding a nice quiet cave to hide in for a few months. (It’s not gonna happen, and it wouldn’t help anyway.)

Instead, we can just keep at it. That is, our version of “it.” Our work, our mission, bringing our attention back to whatever is happening in our lane. And research backs this approach.

“Keep your eyes on your own work,” psychologist Susan David reminds us in her book Emotional Agility. Maybe we heard this line a time or two in our school days, when teachers were on the lookout for cheating. While life is not a test, and there are no grades, this mantra might still do us some good.

Keeping our eyes on our own work might mean keeping ourselves at the center of our choices. When people give advice, it’s often in the form of, “Well, if I were you…” But they’re not you! You don’t need to know what others would do. They’re not in your shoes. You’re trying to find a way to figure out what you might do.

Comparison can spread doubt and add unhelpful pressure. We’re not trying to become that shiny person we saw on LinkedIn or even to become the friend with advice who is just trying to be helpful. That approach would be miserable. Susan David says this would lead us to become a “striving, lesser version of someone else.”

Instead, we can lean in to becoming even more of ourselves. This journey is not a race you can lose—because it’s not a race. Just keep your eyes on your own work. We’ll try to do the same.

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Going for the Gold and Trying Again 

What was your favorite part about the Olympics? Was it a specific event that caught your eye, a striking outfit? For us, it’s hard not to be blown away by the perfection among those gymnasts.

Watching the events, we may forget how much time and effort these athletes put into their trades. We only see the polished, precise versions of the routines, or the absolute fastest times or highest heights!

We aren’t there to watch them struggle on their way to perfection. We don’t see how many hours the athletes trained, the things they had to sacrifice. Sometimes it’s good to remind ourselves that we aren’t going to get it right the first time. We are going to fall down; it’s just a part of life.

The thing that sets us apart, though? What we do after we fail.

Olympic athletes don’t throw in the towel because they had a couple bad days at practice… and we shouldn’t either. We get back out there and try again!

Maybe some of us are not happy with the amount of money we have saved so far for retirement. Instead of giving up on the idea of saving all together, we can formulate a new plan. We can analyze the budget, start reallocating cash, take advantage of IRA contributions. We can take the time to invest in ourselves and our futures.

Maybe some of us have little ones at home and are starting to think about saving for their college education. We don’t have to save as much as we can, as fast as we can. There are investment options to help you contribute at your own pace, while putting the money to work to take advantage of that potential growth.

While the Olympics is a competition, saving for retirement or a life-changing event is not. We are all on different journeys, with different resources, at different points in our lives. There is not one perfect plan for all investors.

One thing we can learn from the Olympic gymnasts is their power of flexibility. (While of course they are physically flexible, we are talking about their mental flexibility.) If their practice or routine isn’t working for them any longer, they will change it. We can do the same thing with our financial plan!

Setbacks in life are part of the journey. If we gave up when the going gets tough, we wouldn’t get to enjoy the fruits of our labors. We won’t sell out when the market is low, just like we won’t sell ourselves short when we don’t stick the landing every time.

We keep our eyes on the prize and keep moving forward.

If you are going through something right now and you didn’t get it right the first time, that’s okay. You can always try again next time. We aim for progress, not perfection. Progress—that’s going for the gold.

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RMD at Age 73: What’s Up with That?
By Mark Leibman, President

We have noticed that the rules about IRA account withdrawals can cause some confusion, particularly among those who are getting close to the “Required Minimum Distribution” age.

Here, we’d like to cover what the basics might mean for most people, though it is not intended to be advice or a recommendation for your specific situation.

For traditional or rollover IRA account owners, withdrawals after age 59½ are free of penalty, but income taxes must be paid on the amounts withdrawn. One may withdraw money or not, in accordance with their needs and plans.

But beginning at age 73, the rules change.

For each year beginning with the year you turn 73, a “Required Minimum Distribution” (RMD) must be withdrawn:

  • “Required” means there is no option about it—it must be done.
  • “Minimum” means that you must withdraw at least the calculated amount, though you may withdraw more if you choose.
  • “Distribution” is simply the word the IRS uses for withdrawals.

The way the numbers work, the RMD starts out at a little under 4% of the account balance at age 73. Then, the RMD rises gradually each year. The RMD gets to a little over 5% at age 80 and closer to 10% by age 92. The withdrawals will be taxable—that is the whole object of the exercise, from the IRS’s perspective.

Even with those requirements, IRA accounts may still have significant balances until advanced ages.

Here are just a few fine points:

  • The calculation begins with the prior year-end balance.
  • The factor used comes from an IRS table, and we can do the arithmetic for you.
  • The withdrawal may be made any time in the calendar year.
  • If you have multiple IRA accounts, it can get confusing. Some people consolidate and simplify their finances at this point.

For more information, the IRS explains more details about RMDs online, available here. Please also keep in mind that different rules apply to inherited IRAs, Roth IRAs, and certain other situations, so do seek specific advice for your situation as necessary.

As for our role, our object for each client is to help have your money do what you need it to do.

So the question of how you should manage your accounts and your withdrawal strategy is best answered in a one-on-one discussion. If you would like our help talking through your situation, please call or email us. Happy to help.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

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You Just Never Know 
By Caitie Leibman, Director of Communications

We’d like to think that with age comes wisdom. But it’s not just racking up the years. We try to learn from our experiences—and integrate those lessons into our thinking.

I can’t speak for anyone else on our 228 Main team, but I can say that I am still a little surprised I’m here.

And I mean that in every way. I didn’t know the turns my career would take, and yet the path I took here is still the one that made the most sense. It’s led to the best possible outcomes. I didn’t know my current neighborhood even existed until we found a place to live in it. I didn’t know the mental health struggles I would explore in my early 30s, but I wouldn’t be who I am today without them.

What’s it all mean? The lesson I take is this: I couldn’t have called any of this ahead of time, so, therefore, maybe there are more surprises ahead.

We’ve heard from a few of you about the unexpected turns in your lives. One of them was, “I never thought I’d own a yoga mat.”

Another one was, “I never thought I’d be living in a house again.”

Big stuff, small stuff—you just never know. It’s possible to feel like you’re in the driver’s seat and that the road will keep bringing us twists and turns. Sometimes we crest a hill in the sunshine, and it’s like our whole future is laid out before us.

And sometimes we can only see as far as the headlights reach.

Having a team to support us along the way can make such a difference. I wasn’t alone through any of my own twists and turns. My team included professionals and specialists, everyone from my primary care doc to a new accountant to help my household.

It included my loved ones, friends, and the people in my life I knew I could text any time, day or night.

Who’s on your team?

Let’s assume the twists and turns will continue to surprise us—and sometimes delight us! We’re here for all of it. You just never know.

And we’re glad to share it with you.

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“Is It Investable?”
by Caitie Leibman, Director of Communications

Clients, we love hearing from you about what you’re seeing. Life changes at such a clip, it’s helpful to hear about the patterns and evolutions that pop up in our everyday lives.

When someone pitches us an idea, we don’t start with the obvious question. The obvious question would be, “So, is this investable?”

The real question is, “What’s this mean?”

This happens to us in our own research process. We don’t start with the hottest investment headlines. Instead, maybe we read something about a new technology, then dive in and realize it’s a true innovation in its field.

Then the real question whispers, “Hmm… What does this mean?”

We follow that thread and wonder, “How could people use this in the future?” or “What would the world look like if this were normal?” or “What should companies be doing now to get ready for this?”

Little clues about the future might sprout from these questions. Dorie Clark talks about this idea in her book The Long Game. We don’t have to limit ourselves to one topic with laser focus. We don’t need perfect clarity.

Sometimes, we’ve got enough signals to work with. “Interesting” can be a good enough guide. “Interesting” can lead us to meaningful.

The research process is not a mission: it’s an experiment. Flexible, not rigid. Curious. Open.

We optimize for interesting.

We do the research, put the evidence in context, and go from there. Maybe it would be nice to be able to boil it down more than that, but then… if it were any simpler, everyone would be doing it, right?

It’s fun to be us, and it’s fun to be in it with you.

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

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The Organizing Question: Mark’s Role, New Clients, and More 
By Mark Leibman, President

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 are not changing.

I recently heard second-hand the misperception that “Mark Leibman is not taking new clients.” But from a business sense, Mark Leibman became Leibman Financial Services, Inc. (LFS), a long time ago. And LFS is definitely working with anyone who contacts us with an interest in what we’re doing in here. Everyone gets access to the same set of services. One story, one philosophy, one book of business.

And still, anyone with an internet connection can know what I, Mark, am thinking. Every client gets the impact of my ongoing obsession with the markets. And they get a lot more brainpower working for them than I personally possess.

I have always asked myself, and you, and my teammates, and our mentors this question: “What could we be doing differently or better?” The underlying object has always been to try to grow the buckets—and help people connect their money to their lives. Some of you tell us we have done it differently and better.

In an industry seemingly focused on getting new clients and finding new money, we 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.

These distinctions empowered our evolution into a different and better organization. We have many teammates, and ownership and management is now a four-person collaboration. But we still have one story, one philosophy, and one book of business. Many “financial advisor” shops, however, are like a collection of sole proprietors, each on the prowl for new business all the time.

We believe we are organized differently—and better.

At the beginning, Colonel Sanders cooked all the chicken. At the beginning, I did everything, too. The business has grown into something that no single person could operate on their own—not me, not Sanders, not any one of my three partners. It takes all of us.

All three of my partners have the credentials and experience to consult with clients, to take the lead when they are the best fit. Each of us brings the same philosophy, the same investment offerings based on the same research, to every client. Any client can call any one of us. I am still here to talk—and so are my partners.

And the whole enterprise rests on the same values and principles, the same herbs and spices that we started with.

Wondering what any of this means for you? Call me, or any one of them, any time.

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“Fiduciaries” and You
By Greg Leibman, Office Manager

You may have seen headlines in recent weeks about new financial regulations from the Department of Labor regarding retirement accounts.

Some parties affected by the rules are having a pretty sour reaction, but we are looking upon these changes a little more favorably—and believe they have been a long time coming.

A little background: our business is mostly managed on an advisory basis where we make investment decisions on clients’ behalf. That carries with it a fiduciary obligation to disclose and avoid possible conflicts of interest and to put clients’ interests ahead of our own. That’s what being a fiduciary is, upholding that standard.

We prefer this model for many reasons, not least because it aligns our goals with yours: growing your bucket is good for you and us.

So what’s new, now? The latest Department of Labor rule expands this fiduciary duty to almost everyone who services any retirement accounts, whether or not they meet the definition of an “investment advisor.” Now brokerage agents who sell on commission and have no ongoing obligations to clients now also must act in clients’ best interests any time they are dealing with retirement money.

You might be surprised to learn that some financial professionals were not required to act in their clients’ best interest before now. Obviously, fraud is fraud; agents were never legally allowed to lie about what they were selling.

But until now, in one-time brokerage relationships, there was nothing stopping agents from steering clients towards higher-commission products based solely on the peddler’s own benefit.

Owning stocks in individual companies is different than owning packaged investment products. Having equity ownership in companies we’re familiar with gives us transparency in our holdings and avoids adding a (usually hidden!) layer of “middleman” fees to investment product sponsors. That’s our preference, when it’s appropriate by client and situation.

The rules are in place to try and prevent agents from selling complex products with high commissions that are inappropriate for the client. Of course, regulations do have costs. Over the past 20 years, the amount of paperwork required to open accounts and do our jobs has more than doubled. Does practicing within the regulations take time and money? Yes. Will it always stop crooks? No.

But the spirit of the rules… Well, we do happen to believe that when you’re better off, we’re better off. So your best interest has to stay in the center.

Clients, if you have an advisory account with us, and are wondering what impact the new rules will have, the answer is: very little. This rule will bring more change in the world of commission-based agents, which is not what we are to our advisory clients.

When you do have any questions, we are always happy to talk.

Stock investing includes risks, including fluctuating prices and loss of principal. 

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Welcome, Brenda! The Dream Works with Teamwork 
by Caitie Leibman, Director of Communications

Clients, you may have already spotted the new face or heard the new voice around the office. Let us take a moment to get everyone up to speed on some exciting developments.

You may remember that our dear friend Larry Wiederspan “retired” a couple years ago, but it didn’t stick. Then, the time came for certain: his last day in our employment came and went in April. While we miss seeing Larry so regularly, his retirement brought us a new opportunity. (Life’s all about beginnings and endings, isn’t it?)

With Larry’s departure, we were ready for some help on the Client Services team. Our Client Services Coordinator Whitney Engle has been with us full-time for more than a year now, and she’s been on top of everything we’ve been able to throw to her—and then some! She’s so proactive. And Client Services Associate Patsy Havenridge has been holding down the front office with grace and good humor since 2018. Where does the time go?

And now, joining as our newest Client Services Associate, we’re pleased to introduce Brenda Smith!

Brenda brings years of experience in financial services and administrative support, and we were so pleased to discover that her skills were a match for our needs. Her warm personality and easy-going spirit were evident from our first encounters.

Brenda is a Louisville native, and her son Isaac is a third-generation LHS student. When she’s not in the office at 228 Main, she enjoys traveling, reading, cooking, and spending time with friends and family. “I have a group of lifelong friends who still refer to ourselves as ‘the Louisville Girls,’ and we try to get together at least once a month to catch up,” Brenda says. “I’m a history nerd and can be found watching historical documentaries and historical shows and movies when I’m at home.”

Brenda may be the latest addition to the 228 Main team, but she is already caught up on the “history” of our work here. The mission is the same for the whole team: we strive to grow your buckets. And that project takes all of us, from research and trading to paperwork and communications—it happens when all of us are ready to be of service to each other.

Come in and say hello whenever you have a chance. Welcome, Brenda!

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Life Sentences

Sometimes I marvel at my brain. I might wake up from a vivid dream or be surprised by a random thought that pops into my mind while I’m innocently doing the dishes, and I’ll wonder, “Where did that come from?”

It’s a gift to be able to notice when thoughts come and go. Sometimes, our thoughts can start to feel so familiar, we don’t notice them anymore. They turn into wallpaper: we can be surrounded by them all day and never notice. We take them for granted as fact.

Maybe you’ve heard some of these sentences before, swirling around in your own mind or coming out of someone else’s mouth:

“Never go into business with family.” (Ha!)

“I’m not good with money.”

“I can’t do something that risky.”

Are these sentences—or life sentences? Are you serving time in the name of a belief? It’s not “the big house” we get trapped in: it’s a small life.

Our words can become cages when we take them more seriously than we need to. But a thought can just be a thought. Like a cloud we watch in the sky, can we allow it to do its thing, and then go on its way?

We can’t stop those stories from popping up any more than we can keep clouds out of the sky. But maybe we can sprinkle in some more helpful sentences, ones that won’t hold us back.

“What if this works out?”

“What if there was a different way?”

“What if I could?”

In any case, we’re glad to be here with you—for whatever comes our way.

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