financial planning

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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Going for the Gold and Trying Again – 228Main.com Presents: The Best of Leibman Financial Services

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

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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Up the Creek, With a Paddle!

Our daily struggles might have more going for them than we first think. Imagine tripping on the coffee table and thinking, “Gee, it sure is nice to have toes to stub!” A little perspective goes a long way. So “rock bottom” may sound like a terrible place to find oneself, but it also could make a solid place to push off from. This week’s video: a serious lesson from a funny show. 

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We Choose the Orchard!

We believe in saving for the future, but the present is where we live. Your retirement flow might go toward any mix of spending: cash for bills, a stash for unexpected events, or maybe it’s for that adventure in the Florida Keys! None of it takes a pile of money: instead, we tend the orchard for the fruit crop.

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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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The Organizing Principle – 228Main.com Presents: The Best of Leibman Financial Services

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What’s the Cake For?
They say you can’t have your cake and eat it, too… but what if your cake had the potential to grow over time? Who says you can’t snack when you’re hungry and still save some for later?

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We Are All Authors

Even heroes get knocked down a time or two when fighting their monsters. There may be a couple of bumps in the road, but what good plot doesn’t have some conflict? With our passions in mind, a little bit of perseverance, and a good plan, we all get to be the hero of our own story. Want to talk through what’s important in your story? Call or email to chat.

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Three People In One

There are at least three people involved in every decision you make: past you, present you, and future you! How well is the committee getting along? And who’s getting the final say?

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Sorting the Buckets and Cleaning the Kitchen 
A bowl of fruit on a counter.

We’re not ones for putting on airs, but we came across an idea lately that has us thinking about fine dining.

In French, it’s mise en place. (To get kind of close, you can say it like “mee zon ploss.”) For those who aren’t in the know, mise en place is French for “sort the buckets.”

Just kidding.

It’s a culinary term for “gathering” or “putting in place.” It’s the practice of preparing the kitchen workspace before service begins. You organize the ingredients. You put together what you’ll need at arm’s reach, and you tidy away what you won’t need for a while.

It can refer to the time you put into the process, and it can refer to the state of mind you get into.

Sound familiar? When we work on your financial plans and planning, we have called this process “sorting the buckets.” (Now, say it again with a French accent!) We take stock of our resources and arrange by time horizon. What do I need now? What will I need later?

What am I low on? What could use some tidying up? Sometimes even a quick review and a few small moves can make a world of difference. More things become possible with a little organization—and a little space to work.

There’s a certain calm afforded us when we know how we’re going to pay the bills, where we would go in an emergency, and what we can turn toward for the future.

That’s “sorting the buckets.” That’s mise en place.

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Sorting the Buckets and Cleaning the Kitchen – 228Main.com Presents: The Best of Leibman Financial Services

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Something Wonderful is “Afoot”
by Mark Leibman, President

Each of our feet has 19 muscles, 26 bones, and 33 joints, but we usually do not think about a single one of them when we take a step. Coordination and balance are elements that happen beneath our consciousness. We are free to enjoy our walk, to daydream or reminisce or plan.

Can you imagine trying to think about what each of 19 muscles should do with each step?

Meanwhile, each of our portfolios has between twenty and forty holdings. We make adjustments every few months to pare some back and add to others, to buy new opportunities and sell out of others. We’re reading SEC filings, quarterly reports, economic news, and investment research to inform our efforts.

You—the best clients in the world—do not have to think about any of that while you are living life. Whether you are investing for the day you can live on your capital or already “living on the fruit crop” after a career tending the orchard, we are busy coordinating and balancing the elements to help build your wealth.

I like to walk; my feet are rather important in that process. But I appreciate not having to think about the flexor digitorum brevis muscle… or any of them! I’m free to think about anything else while I’m out on the trail or walking around the lakes or on the riverbank.

In case you do want to learn more about what is going on behind the scenes, our blog posts and videos and podcasts are a good way to learn about our philosophy and strategies and tactics. And you can always call or email us when you want a one-on-one conversation—we are here for it.

In the meantime, just like your feet, we’ll be working to get you where you want to go.

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

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Play the audio version of this post below:

Something Wonderful Is “Afoot” – 228Main.com Presents: The Best of Leibman Financial Services

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