mark leibman

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.

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

Play the audio version of this post below:

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.

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

Play the audio version of this post below:

https://anchor.fm/s/516f3a3c/podcast/rss

An Orchard Is a Long-Term Endeavor

Why do we own the orchard? It’s a long-term endeavor, our favorite metaphor for retirement planning. We plant and tend the trees in our working years, but in our retirement years, we live on the fruit crop! It’s about the balances, until it’s not. Then it’s about what they produce. 🙏

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

Whose Money Is It?

Money you accumulate can work like an orchard, and the income—the fruit crop—helps run retirement life. Some in the industry would call clients taking out their own money “attrition.” Attrition, per the dictionary: “loss or destruction, corrosion, waste.” But to us, it’s simply investing wisely, spending well. Attrition, shmattrition.

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

When the Wisdom of the Crowd Becomes Herd Mentality

Sometimes it takes a big splashy effort to swim upstream! Our friends may be making different choices than us, but it doesn’t mean we’re wrong. What the crowd seems to want is not always right for us. So how do we decide?

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

Persisting through the Seasons

And just like that, the heat of summer is gone. The cycles of nature are such a useful way to think about the cycles in the economy and the markets.

No guarantees… but we seek to persist through the seasons. More in this week’s video.

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

We the People

“We the People of the United States, in Order to form a more perfect Union…”

So reads the Preamble to the Constitution, which frames the purpose of one of our nation’s fundamental documents. A quick search will reveal that the use of the word “perfect” might have meant something like complete, confident, or whole.

What would make the American enterprise more complete?

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

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.

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

Play the audio version of this post below:

You Just Never Know – 228Main.com Presents: The Best of Leibman Financial Services

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

The Power of Dominoes

It might help to think about financial goals like a line of dominoes. Only one domino needs to fall at first, and the momentum will build. We don’t have to do it all at once 🙏

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

What to Do When Something Smells “Phishy” 
By Greg Leibman, Advisor

As summer gives way to fall, we’re already thinking ahead. The end of the year will be here before we know it, and there are things we can do now to “winterize” our thinking. Because the truth is, the winter holidays are a busy season for everyone—including scam artists.

One of the most common forms of fraud is known as “phishing.” Phishing attempts may take the shape of an email, text message, website, or automated phone call that sounds like it comes from an official source.

Identity thieves have been known to pose as businesses or government entities to trick consumers into sharing their information with someone they thought was an authority. Often, identity thieves will claim there is some sort of problem and that you need to cooperate with them. (You can understand how someone might panic if they got a phone call suggesting they were in trouble with the IRS, right?)

Another tactic may be telling you that you are entitled to money or other rewards, if you only give them what they need.

The best way to protect yourself against identity theft is to stay calm and try to view the situation for what it is. Not sure whether you may be dealing with an imposter? Consider…

How is the message arriving?

Government agencies that have important matters to discuss with you will contact you via certified mail on official letterhead, not in a call or text message. Expect official correspondence to sound professional and not contain obvious spelling or grammatical mistakes.

What are they asking for?

There is no reason for government authorities to ask you for your personal information such as a Social Security number or date of birth. (They already have access to it: officials would be able to look it up themselves!)

If someone is legitimately trying to give you money, they should not need money from you to facilitate the payment that is supposedly coming your way, nor would they need your Social Security number or other compromising personal details in order to send you money.

Are they hurrying you?

If you owe money to the government, officials will not try to get a credit card on the spot, and they will definitely not ask you to use PayPal or other online money transfer services. Remember that time is on your side. Very few legitimate issues are so urgent that you couldn’t hang up and take time to verify the situation.

Bundle up: add layers for protection.

We don’t need to wait for the weather to turn colder to put on more layers! One way that we work to protect your accounts in case of identity theft is LPL’s Trusted Contact system. If we ever suspect that a request related to your account is fraudulent or that you are being manipulated, your Trusted Contact is someone we have permission to talk to about the situation to make sure that you are not being defrauded of your hard-earned money.

Trusted Contacts do not have authority to make changes on your accounts, but they can help verify that requests are actually coming from you and are on the level. It is up to you whether you want to designate a Trusted Contact with us, but it is another layer of protection in case your identity is stolen.

Clients, when you have questions about this or other topics please reach out. In any season, we’re here to help.

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

Play the audio version of this post below:

What To Do When Something Smells “Phishy” – 228Main.com Presents: The Best of Leibman Financial Services

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