Fruit Crop Season

Don’t Be DAFfy: Planning Your Impact 

“I have enough, and enough is as good as a feast.” — Granny, as told to us by one of you

For many folks, giving and community are important pillars of their financial plans and planning. After all, once we discover that we have enough to get by on, we’ve got some important decisions to make about our resources.

What will our excesses and gains mean for the community around us? Or the next generation? Or causes and organizations we care about?

In 2025, Leibman Financial Services added a new type of account, a tool that may be an option for those with charitable intentions and a desire for a little organization.

Here is what we are talking about: a Donor Advised Fund, or DAF. A DAF is an account that we can open and manage for you here in-house. Money or securities that you send to the DAF are considered tax-deductible charitable contributions, even if they came from existing accounts here. (Consult your tax advisor about what this means for you in particular.)

The funds can be invested for long-term growth or disbursed more quickly; you may donate as much or as little as you choose, on your schedule. You request distributions, or “grants,” from your DAF to be sent to the nonprofits of your choosing.

A DAF would become part of our regular conversations about your portfolio, your goals, and your financial plans and planning.

Why consider a DAF? A DAF could be used…

  • As an alternative to creating a family foundation or other organizational structure on your own
  • As a way to simplify philanthropic activities, having a single destination for gift dollars and a single vehicle for sending out donations
  • As a way to organize tax deductions and tax planning
  • As a way to direct high-flying holdings toward charitable intentions (by gifting appreciated assets to a DAF, you pay no tax on the gains, and the DAF pays no tax on the gains)

We work with iGift, a registered 501(c)(3), to administer these accounts. iGift requires a minimum of $25,000 to open a DAF, though only a $1,000 minimum balance needs to maintained thereafter. You may send out gifts as small as $100 to approved nonprofits year-round.

Fees and rationales can be found in our disclosure documents where we discuss more about the terms of our services.

If the DAF still has funds at your passing, your designated successor—an heir or heirs—may direct future donations until the fund is exhausted, or you can elect to provide instructions for how to distribute the remainder among nonprofits.

Our money has a chance not only to outlast us—but to continue making ripples in the world.

The Donor Advised Fund concept has been used by people here at Leibman Financial as part of their tax planning and to organize charitable intentions. Not all account types are appropriate for everyone, though there’s a lot to like here.

Could it be a good time to learn more?

Reach out, anytime.

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

To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

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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Don’t Be DAFfy: Planning Your Impact – 228Main.com Presents: The Best of Leibman Financial Services

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Spare Time and Extra Money
Person looking out at the sunset.
by Mark Leibman, President

When we were a young family, two things seemed to belong in the the same mythical category as unicorns and leprechauns: spare time and extra money. These ideas sounded magical to us!

We usually had enough time and money to get by—usually—but life was often harried and hurried, and children have needs that sometimes require money to obtain. Then our children grew. The joys and pains of that chapter subsided over time, replaced by new circumstances and challenges.

There’s been an interesting theme to a few recent conversations with clients who are about my age—call it “sixty-something.” Reviewing their overall position, one person remarked they never planned on having so much money.

Another was trying to get perspective on the sense of buying a new vehicle to replace one with 100,000 miles. We came to the conclusion they had $600,000 more than they needed in their long-term portfolio.

And then there are folks scratching their itch to be more generous to causes and people than they ever imagined, with wealth they had never dreamed of.

It seems we caught the leprechaun. We saw the unicorn. There is such a thing as extra money. And the way compounding works, an extra half-million now might turn into an extra million, then two, if we live long enough. No guarantees, but in our opinion we’re liking the general trajectory.

This phenomenon brings deeper meaning to our refrain “invest wisely, spend well.” If you find yourself ahead of schedule on your goals, we’re more likely to put it this way: “Don’t pass up too many chances to have fun.”
Life is short, we’ve discovered.

Interestingly, the people we know with extra money now seem to have one thing in common: they invested 1) effectively 2) over a long period. They did not fall for the smoother ride to a poorer future; they knew that the ups and downs are an inherent part of striving for real investment market returns. In bad markets, they were not scrambling to sell out. They stayed the course—or added more!

No guarantees about the future, of course. Clients, if you would like to talk about whether or not you might be on track, please email us or call.

Oh, one more thing about spare time: it has remained elusive. Maybe it’s still out there, somewhere, with the leprechauns and unicorns.

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

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What Do the Happiest People Know about Spending?
Two cups of coffee with a leaf design in the foam.

No matter their savvy or experience level, most investors would probably agree that money is a means to an end. It’s not an end in itself. You could have all the cash and all the stock certificates in the world, but you can’t eat them or burn them for fuel. They make terribly inefficient insulation. They’re less fun than a deck of cards.

But when it comes to deploying our money to optimize pleasure, finding joy can be more of a challenge than you’d think. One reason? Psychologists call it the “hedonic treadmill”: our brains are so good at getting used to things that they will keep chasing new pleasures, new experiences, and the next thing that will bring us a boost.

In terms of our spending, this means that we get used to fancy new gadgets sooner than we think we will. Luxury goods lose their luster as fast as anything from the bargain bin.

The danger is that if we don’t notice that we’ve started running from one thing to the next, the costs mount and the returns on enjoyment diminish.

Consider how we make decisions the larger the ticket price gets: housing and transportation are huge outlays, and they make up sizeable portions of many household budgets.

Is the purpose of buying a new vehicle to replace a family car, to enjoy the everyday pleasure of being able to get reliably from point A to point B? Or is this “for fun,” for the joy of driving and being seen driving a particular make or model? If this is fun money, are you okay with the fun that might be given up, if the money goes toward this one decision?

It’s okay to deploy our discretionary spending however we see fit, but we might do well to remember something powerful: we shouldn’t underestimate how gratifying even the smallest of joys can be. In fact, sort of like the effects of compound interest, routine doses of fun can go much farther than those fewer, farther-between spending sprees.

This is why it’s vexing to hear a little treat like a latte get such a bad rap. As writer Laura Vanderkam explains, such “small, repeated pleasures” have the power to give life a lift, regularly. And better, even a lifetime of $3 lattes will not sink your longer-term goals the way that a $300,000 status symbol—like houses or cars truly beyond our means or needs—could.

So what do the happiest people know about spending? That if you want more of that proverbial bang for your buck, think more about the frequency than the size of life’s pleasures. The big stuff may be overrated, in that humans tend to overestimate the impact that large purchases will have on their happiness.

Tending more often to your joy and enjoyment as you spend? Now that sounds like a nice way to direct your time and money.

Want to talk more about how your money is working for you in your everyday life? Let’s visit, anytime.

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What Do the Happiest People Know about Spending? – 228Main.com Presents: The Best of Leibman Financial Services

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Happy Baby, Happy Investor

By Mark Leibman, President

One of the few childhood pictures of me shows a happy baby. My sister says I’ve always been a happy baby. Optimism has been a lifelong trait, for sure.

I can’t know what delighted me all those decades ago, when the photo was taken. But when I survey my finances these days, I still feel the same way the baby in the photo looks.

I like what I own—percentages of ownership in a couple dozen companies. Iconic names, dominating their sectors. Some companies that are working to sort out the future of their industries, which are in flux. A few enterprises in lines of work that did not exist when I was young. The largest player in a fragmented, but consolidating, industry. Producers of vital materials for the age we are in.

These diverse firms have one thing in common: our research team believes their shares of ownership may be more valuable in the future than they are today. No guarantees, of course.

What I own is only part of it. How I own is another key. With a large fraction in a Roth IRA, gains are free of tax as they compound, when they are taken out and spent in my real life, or when left to people or causes I love. All the income tax freight was paid in advance for all time, on those smaller balances I converted to Roth—not the compounding tax-free wealth I now own.

And really, all of that is the proverbial cherry on top. The greatest source of my joy arises not from what I own nor how I own it: the knowledge that my resources exceed my needs, that’s the big thing. It was not that way when we started out, was it? Now, I have enough.

A dear friend once related to me what Grandma always told her: “I have enough, and enough is as good as a feast.” I love this thought.

Oh, my holdings go up and down too, just like yours. Sometimes a company we own messes up. But we know how this works, don’t we? We believe our principles and persistence will get us through, and knowing that is another source of joy.

Clients, if you would like to talk about what you own, how you own it, or what makes for enough, email us or call.

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

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.

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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Happy Baby, Happy Investor – 228Main.com Presents: The Best of Leibman Financial Services

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Waffles, Friends, Work
NBC / Getty Images

“We need to remember what’s important in life: friends, waffles, work. Or waffles, friends, work. Doesn’t matter, but work is third.” 

—Leslie Knope 

I think we all can relate to Leslie Knope from Parks and Recreation from time to time. This TV heroine’s persistent optimism and love for improving her community are things that resonate with us.  

Although our first instinct is to laugh when we read the above quote from Leslie, we do think there are some great takeaways in this phrase: we can remember to cherish our relationships and treat ourselves, even as we are working towards our goals. 

Life is short, so we love to spend time with friends and family while we can. Instead of staying late at work to finish up a project that can wait until tomorrow, we learn to call a friend instead and see if we can stop by. Some days, it’s a rush to get home to a beautiful family and cuddle our loved ones. Any moment can be precious. 

We take the time to treat ourselves and relish what comforts us. What’s that one dish that takes you back to your childhood or a great time in your life? Whether it’s a potato salad that reminds you of Grandma or a dish you had on your wedding day, food is a simple way to reconnect with ourselves or others. Our bodies should be nourished both physically and mentally, so don’t deprive yourself. 

While we need to work to provide for ourselves or our families, there is more to life than your career: work is just one part of our story. Not many of us will be looking back on life and thinking, “Gee, I should’ve spent more time at work!” Instead, we will reflect on the memories we’ve made with the people we love. We work so we can enjoy all of the wonderful things life has to offer, on or off the clock. 

How do we prioritize the people or things that are important in life? It’s up to each of us. Leslie Knope is a character who is passionate about her work—but even more passionate about her friends. (Does that sound like a friendly shop on Main Street you might know?) 

We hope that the work we do together will let you spend less time stressing about your financial plans, so you can have more time to spend on what matters, from friends and waffles to whatever else is precious to you. 

Call or email, anytime.

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Waffles, Friends, and Work – 228Main.com Presents: The Best of Leibman Financial Services

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

A Tangle of Time, Money, and Enjoyment

Ever notice how hard it is to say, “Okay Einstein…” without sounding sarcastic? So I’m no Einstein, but I am thinking about my own theory of relativity. Spoiler: don’t let the project of accumulation blur the enjoyment out of life.

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The Dragon and the Hobbit

Do you remember The Hobbit? If you ever read J. R. R. Tolkien’s novel or watched the movies, you may remember the scene where the title character discovers the dragon Smaug sleeping atop an enormous pile of gold and treasure. 

It’s a striking image: the entire wealth of a once-prosperous kingdom, gathered up, a bed for a giant dragon. Tolkien uses this splendid scenery to good effect, exciting the reader’s imagination with his description of riches. In the story, after reclaiming the dragon’s hoard, the hero Bilbo Baggins is able to ransom an entire city with just a one-fourteenth share of the treasure. 

You have to wonder… what good did owning such unimaginable riches actually do for Smaug? After all, he was a dragon. It’s not like he had shopping to do or bills to pay. Piling it up to make a nest for naptime just seems like a poor use of the assets. 

What’s more, the misused treasure had become a burden over time. When Bilbo first encountered the dragon, he managed to steal a single gold cup from the hoard. The loss of even this smallest part of his holdings made Smaug miserable and furious. For all his vast wealth, Smaug spent all his time and energy worrying about it. 

We don’t know many dragons or hobbits, but wealth is certainly important to the humans we know.  

Money can buy a better bed than a pile of gold (for a lot less, too). But money can also be a source of stress and frustration, from unexpected home repairs to medical bills and car accidents. It can feel like life keeps sending hobbits to pilfer the hoard you worked so hard to accumulate.  

But these moments are precisely what we saved for in the first place. As stressful as paying bills might be, it is less stressful than having bills and not being able to pay them. 

A pile of money can make your life easier, but only if you let it.  

At the end of The Hobbit, Bilbo returns home only to find that his house and possessions have been auctioned off in his absence. He is forced to spend his remaining fraction of the treasure buying his own belongings back from greedy relatives. 

Where Smaug lost sleep over a single gold cup, Bilbo feels only relief at giving up his hard-earned treasure to secure the happy and comfortable hobbit life he wants for himself. 

It’s no burrow, and there’s no tea kettle over an open fire, but you’re always welcome to our office in beautiful downtown Louisville, where there’s always a pot of coffee going. 

Call or drop by anytime: we’re glad to share the adventure. 

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The Dragon and the Hobbit – 228Main.com Presents: The Best of Leibman Financial Services

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Life Is Short… Pick What’s Precious
photo shows a winding path through brush on a causeway

by Mark Leibman, President

Decades ago, my father told me something about perspective. He said, “The mortality rate is 100%.” It was a lesson, one which gave me a better understanding of his terminal illness. But the more lasting perspective is the one it gave me on life, a lesson that reminds me how precious—and short—life is.

We got into a discussion recently with a person who is close to retiring from an active career. After getting a sense for what life in retirement might look like for them, our talks focused on money and numbers.

After it became evident that this whole retirement thing could work out, anxiety about the change began to build.

When we spend four or five decades earning a paycheck, having them every month for several hundred months in a row, it is sort of jarring to step into the unknown—to live without the steady comfort of that paycheck coming in. Some uneasiness is understandable.

It is one thing to understand the concept of owning the orchard for the fruit crop—living off your portfolio—but it is a whole different thing to trust that concept with your wellbeing and way of life.

Yet if we never make that leap of faith, we might labor at a job forever, even one that drains us, even when our means actually exceed our needs.

And we can’t think or logic our way out of facing our feelings. (If we could, many of us would’ve already flexed our smarts and sidestepped these pesky feelings, right?)

So perhaps it is useful to try to finish this sentence: “Life is short, we better __.”

The fact is, time is what life is made of. Another day spent as an employee is one not spent on our own, personal priorities. When we fill in the blank, we are defining those priorities.

Clients, if you would like to talk about how you would fill in the blank, or finance it, please email us or call.

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Life Is Short… Pick What's Precious – 228Main.com Presents: The Best of Leibman Financial Services

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What Do I Do with All These Retirement Accounts? Some IRA Strategies and Tactics
photo shows a group of pink piggy banks on a blue surface

There is no law against having more than one retirement account. But it is possible to take this too far—and get yourself a headache down the road. Instead, we’d like to suggest some IRA strategies and tactics that may help.

One person we know is dealing with Required Minimum Distributions (or RMDs) on four accounts in different institutions. Another, recently widowed, is faced with seven sets of IRA beneficiary claim forms in order to consolidate things. And many others have to struggle to understand the overall situation because information about different accounts comes in different forms at different times.

We help by consolidating smaller accounts in various locations into a larger, central account where total values are reported each month and are available online any time. RMDs, beneficiary claims, and other administrative tasks only need to be handled one time instead of many times.

There may be an edge, too, in having an intentional investment strategy that guides all tactical decisions, based on sound principles. In our diversified portfolios, we are able to select the precise source of funds when needed from among dozens of holdings. And we know which options are at the top of our list whenever new money becomes available to invest.

We believe this is a superior approach than just putting money in or taking it out of “the market,” although we can offer no guarantees.

And none of this is to mention that the quality of our advice and perspective might be improved when we’re able to understand all the pieces of the puzzle.

At the end of the day, organizing our abundance is a pretty wonderful problem to have. Wealth seems to be more useful when we understand its meaning, what it can do for us in our real lives. So if you would like to visit about this or anything else, please email us or call.

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What Do I Do With All These Retirement Accounts? Some IRA Strategies and Tactics – 228Main.com Presents: The Best of Leibman Financial Services

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What Fades and What Stays

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