GMB Ep #112: Deferring Taxes Using 1031 Exchanges & Delaware Statutory Trusts with Jamie & Patrick Furlong

1031 Exchanges and Delaware statutory trusts are both nifty instruments for financial planning. In today’s episode, we explore more about the deferring taxes using 1031 Exchanges and Delaware statutory trusts with Jamie & Patrick Furlong. Jamie & Patrick specialize in 1031 Exchanges with DST’s and other securitized real estate investments. They exclusively serve clients seeking to acquire replacement properties in a 1031 exchange, navigate the complexities and time restrictions in the ever-changing 1031 environment through their company, Legacy Investment Real Estate.

Show Notes

[04:05] Story of Jamie & Patrick – Patrick shares their origin story, what they do, and how they do it.

[11:32] Delaware Statutory Trust – Jamie and Patrick explain Delaware statutory trust in detail, sharing compressive real-life examples.

[19:37] Importance of DST – Jamie talks about the significance of Delaware statutory trust and why someone should invest a property into a Delaware statutory trust in the first place.

[33:15] Holding Period – Non-traded real estate investment trusts can bring you a vast misfortune. Jamie discusses the holding time you should consider when contemplating real estate investment trusts.

[37:46] Role of the Manager – Patrick talks about the manager’s role in Delaware statutory trusts.

[46:49] 1031 Exchange Tax Code – Jamie and Patrick talk about the predictable changes in the 1031 Exchange tax code.

Information provided today is for educational purposes only, does not constitute as individual investment advice, and should not be relied upon as tax or legal advice.

Please consult the appropriate professional regarding your individual circumstance.

DST 1031 properties are only available to accredited investors (typically defined as having a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years; or have an active Series 7, Series 82, or Series 65. Individuals holding a Series 66 do not fall under this definition) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney.

There are material risks associated with investing in DST properties and real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal.

Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Legacy Investment Real Estate is independent of CIS.

Resources

Connect with Jamie and Patrick:

Website: legacyire.com/

Jamie

LinkedIn: linkedin.com/in/jamie-furlong-927b9658/

Email: [email protected]

Patrick

LinkedIn: linkedin.com/in/farmranch1031exchangennn/

Email: [email protected]

GMB Ep #111: Diving Into Crypto With Tim Picciott

Cryptocurrency has been one of the most popular topics in the financial media in the last few years. It is a transferable digital asset or digital form of money exclusively available online based on blockchain technology. My guest today, Timothy Picciott CFP® CRPC®, Wealth Advisor in Innovative Advisory Group, is a pioneer in cryptocurrency wealth management solutions. He works with Bitcoin and cryptocurrency early adopters to give innovative financial planning solutions, enabling them to pay a minimum tax on their highly appreciated asset as legally possible, while also educating crypto fans on investing in “Crypto IRAs” through self-directed IRAs and 401(K)s.

Show Notes

[03:19] Tim’s story – Tim shares details about his career and how he came to be in his current position.

[10.48] Fiat Currency – Tim expresses his thoughts about the evolution of fiat currency.

[14:41] Bitcoin and Blockchain – Tim elaborates on his views on Bitcoin and blockchain technology.

[16:57] Opinions – Tim discusses the significance of studying Bitcoins properly and thoroughly.

[22:11] Double-Spend Problem – Tim explains Bitcoin’s potential of solving the double-spend problem.

[27:58] Tech Aspects – Tim goes into greater detail on the technical aspects and benefits of Bitcoin.

[31:00] Electricity – Another objection leveled with Bitcoin is the electricity required to mine them. Tim evaluates the effect of power on bitcoin mining and the resulting implications.

[34:43] Smart Contracts – Tim discusses how smart contracts enabled by blockchain technology have the potential to transform lives.

[36:00] Geopolitical Implications – Tim shares his insights on current world trends along with his take on the US and China’s movements on Bitcoin.

[46:59] Future of Bitcoins – Tim goes to great length on his predictions for Bitcoin’s future.

Resources

Connect with Tim:

Website: thelibertyadvisor.com/

Website: innovativewealth.com/

LinkedIn: linkedin.com/in/timothy-t-picciott-cfp%C2%AE-crpc%C2%AE-547b0b8/

Instagram: @the_liberty_advisor

Podcast: The Liberty Advisor Show W/ Tim Picciott: podcasts.apple.com/us/podcast/the-liberty-advisor-show-w-tim-picciott/id1238430499

Mentioned in the episode:

Ep #107 – Central Bank Digital Currency: Dangers & Possibilities with J Scott Christianson: growmoneybusiness.libsyn.com/website/ep-107-central-bank-digital-currency-dangers-possibilities-with-j-scott-christianson

GMB Ep #110: Navigating Family Business Successions With Stephen Shortt

A lack of succession planning can have disastrous consequences for a business, especially when your business is family owned and operated. This week on Grow Money Business, Stephen Shortt, an expert in family business succession planning, is joining us to share his experience and wisdom. Stephen has worked in his two-family businesses for most of his adult life and childhood, and as a result, he is familiar with the ups and downs associated with transitioning between generations. Throughout the episode, he delves into the framework needed to navigate family business successions successfully.

Show Notes

[03:35] Stephen’s Background – Stephen introduces himself and provides an overview of his current work.

[07:13] First Step – Stephen explains where to begin to ensure a seamless and successful family succession.

[11:31] Mindsets – Stephen talks about three critical mindsets for succession planning

[15:28] Personal Experience – Stephen shares his personal experience on his family business and how their transitions were handled.

[19:27] Succession Strategy – Stephen broadly describes the succession strategy for a family business.

[22:00] Challenges – Stephen explains overcoming various adversities during the succession process.

[26:30] Family Board – Stephen expresses his thoughts on the importance of having a family board.

[28:44] Five P’s – Stephen discusses the “five P’s” framework for navigating family business successions

Resources

Website: successfulsuccession.com/

LinkedIn: linkedin.com/in/stephenshortt/

GMB Ep #109: Buying the Building Your Business Operates in With Trisha Talbot

Having ownership of the building in which your business is based can be a significant wealth building tool. This week on Grow Money Business we have a distinguished guest who educates physicians, owners, and investors on healthcare real estate investment opportunities. Trisha Talbot is the Managing Principal of Doc Properties, through which she supports healthcare practitioners in maximizing the economic worth of their real estate holdings on which they conduct business. Throughout this week’s episode, we delve into numerous aspects of purchasing and constructing the building in which you firm operates.

Show Notes

[02.42] Trisha’s Background – Trisha narrates her journey so far, and explains the work she carries out through her business.

[06:56] Transfer Tenant Improvements – Trisha discusses numerous points to consider when transferring tenant improvements into a new location.

[08:55] Patient Base – Trisha emphasizes the importance of the patient base while determining the best location for a medical practice.

[11:00] Types of Buildings – Trisha reviews numerous types of buildings, while explaining the significance of real estate supply.

[16.35] Commercial Property Asset Prices – Trisha talks about commercial real estate asset values and shares her viewpoint on using them as investments.

[21.29] Lease Terms – Trisha highlights some of the critical factors to consider when filling out lease conditions.

[26:44] Construction – Trisha discusses the advantages and disadvantages of constructing the buildings.

[44:38] Role of Landlords – Trisha explains the role of a landlord, and shares some tax benefits related to owning a building.

[51:59] Common Mistakes – Trisha highlights some potential problems that can arise while purchasing and constructing buildings.

[55:59] Final Advice – Trisha delivers her final comments to business owners who are considering acquiring a building for business operations.

Resources

Connect with Trisha:

Website: docproperties.com/

Email: [email protected]

LinkedIn: linkedin.com/in/trishatalbot/

GMB Ep #108: Launching a Business in the Second Half of Life With Rick Terrien

There is a common misconception that successful entrepreneurship exists only for younger individuals. This week on the podcast, Rick Terrien shares why we should challenge that thought process. Rick, a long-term entrepreneur and author, shares how he has dedicated his time to assisting others with launching a business in their second half of life. Throughout the episode, we dive deep into the essentials of entrepreneurship and crucial information that will give you inspiration and guidance along the way.

Show Notes

[02:29] Rick’s Journey – Rick talks about his work and the latest events in his life.

[09: 56] Age and Entrepreneurship – Rick shares his views on the correlation between age and business.

[11:47] Initial Steps – Rick discusses how to think about the initial steps of organizing a business.

[12:59] Important Facts – Rick explains a few essential facts that need to be considered in entrepreneurship, especially when you’re considering starting a new business venture in the second half of your life.

[17:43] Non-Profit Work – Rick shares the non-profit work he currently engages in.

[31:20] Impact of Covid – Covid has changed a lot in people’s lives. Rick expresses his thoughts about how it has affected various occupations.

[33:48] Ageless Startup – Rick talks about his recently published book, Ageless Startup: Start a Business at Any Age.

[40:34] Common Mistakes – Rick highlights several critical mistakes many entrepreneurs make in their business ventures and how to avoid them.

Resources

Connect with Rick:

LinkedIn: linkedin.com/in/rickterrien/

Websites:

The Center for Ageless Entrepreneurs: agelessentrepreneurs.org

Ageless Startup: Start a Business at Any Age: ageless-startup.com

Mentioned in the Episode:

Ageless Startup: Start a Business at Any Age: goodreads.com/book/show/53714833-ageless-startup?from_search=true&from_srp=true&qid=LtUd8Tuz3z&rank=1

GMB Ep #107: Central Bank Digital Currency: Dangers & Possibilities With J Scott Christianson

Money has taken a lot of different forms over time, including gold & other metals in addition to fiat paper currencies. It’s arguable whether bitcoin and other decentralized currencies are the next version of money. What’s clear is that governments around the world are in an arms race to create their version of “centralized” digital currency. In today’s episode of Grow Money Business, J Scott Christianson joins us to describe central bank digital currencies, the arms race to create them, and potential uses and misuses in the future.

Show Notes

[02:44] Digital Currency – While digital currencies have become relatively recent mainstream phenomena, they have existed for decades. Scott discusses this new endeavor of developing digital currency.

[07:28] Adopting Digital Currency – Scott highlights the gravity of adopting digital currency in a country by assessing its dangers and possibilities.

[10:39] Transition – Scott outlines how moving from a conventional reserve system to digital money works logistically.

[13:37] China and Digital Currency – Scott broadly talks about China’s stance on digital currency from various angles.

[19:37] China and El Salvador – While China prohibits bitcoin transactions and mining, El Salvador accepts Bitcoin as legal tender. Scott shares his perspective on this schism.

[23:36] Role of USA – Scott discusses the options that the US may have in its arsenal to delay China’s deployment of programmable money.

[28:25] Banking System in the Future – Scott discusses the potential of more authoritarian counties attempting to implement controlled digital currencies, and his predictions for the global banking system in five years.

[35:23] Fiat Currency and Cryptocurrency – Scott shares his thoughts on that intersection between fiat currency and cryptocurrency.

[40:42] Artificial Intelligence – Scott briefly discusses artificial intelligence and his predictions for where it will go in the next five to ten years.

[48:48] Life with AI – Scott shares what applications he believes AI will enable in the following years.

Resources

Connect With Scott:

Website: christiansonjs.com/

Newsletter: frtech.substack.com/

LinkedIn: linkedin.com/in/jscottchristianson/

Instagram: instagram.com/jscott_mo/

Mentioned in the Episode:

China’s Second Continent: How a Million Migrants Are Building a New Empire in Africa:

goodreads.com/book/show/18373202-china-s-second-continent

Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth and How to Fix It:

goodreads.com/book/show/36204377-edge-of-chaos

GMB Ep #106: Business Exit Planning With Scott Snider

Many business owners eventually come to the point where they will be moving on from the business they passionately built over the years, and having a good exit strategy will help them navigate this important and intimate event in their journey of entrepreneurship. This week on Grow Money Business, we have a distinguished guest, Scott Snider, the President and the co-owner of the Exit Planning Institute (EPI). Scott is an industry leader, growth expert, and entrepreneur. Throughout the episode, he discusses how he assists company owners in developing substantial businesses while also aligning their own financial objectives and personal purposes. He also explains several vital factors that every business owner should consider when exiting their company.

Show Notes

[03:26] Current Role – Scott talks about his current role and how he helps with business exit planning.

[06:40] Perfect Exit – Scott shares his insights about the perfect exit to a business owner who is about to do so in a few years.

[10:23] Emotional Hurdles – Scott expresses his thoughts on managing psychology and people’s emotional hurdles along the business exit process.

[14:12] CEPA – CEPA is an acronym for Certified Exit Planning Advisor. Scott gives a brief explanation for the entire CEPA process.

[18:54] Exit Strategy for Young Entrepreneurs – Scott leaves a message to all the young business owners out there.

[20:21] Scott’s Story- Scott emphasizes the significance of not letting your business define you while sharing his story and takeaways from his past experience.

[29:35] Family Business – Explaining the nature of the family business, Scott shares how he and his father work together in their family business.

[41:43] Vision – CEPA is suitable for any advisor who wants to learn how to help an owner position their company for a successful and significant exit. Scott broadly talks about the vision of the Exit Planning Institute.

[47:43] Future Plans – Having explained the concept of the wealth gap, Scott explains the future plans for his business.

[53:33] Research Findings -Scott shares details about one of his recent researches and exciting factors they discovered through it.

Resources

Connect With Scott:

LinkedIn: linkedin.com/in/scott-snider-epi/

Website: exit-planning-institute.org

Facebook : facebook.com/exitplanninginstitute/

Instagram: instagram.com/exitplanninginstitute/

Mentioned in the Episode:

Certified Exit Planning Advisor: exit-planning-institute.org/program/certified-exit-planning-advisor/

Owner Readiness: exit-planning-institute.org/state-of-owner-readiness/

Every Family’s Business by Tom Deans: https://everyfamiliesbusiness.com/book/

Traction by Gino Wickman: https://www.audible.com/pd/Traction-Audiobook/B00A9ZO7T6

GMB Ep #105: All About Inflation

From October 2020 to October 2021, the Consumer Price Index for All Urban Consumers grew by 6.2 percent, which according to the Bureau of Labor Statistics, was the most significant 12-month gain since November 1990. In relation to this data, we have dedicated today’s episode to exploring more about inflation. Throughout this episode, Grant shares his thoughts about the impact of inflation on the present economic environment and numerous ways to mitigate the risk of inflation.

Show Notes

[04:21] CPI – Grant explains what CPI is and its relationship with the inflation rate.

[06:40] Inflation – Grant explains inflation in simple terms, pointing out several misconceptions about it.

[09:20] Will the History Repeat? – Grant analyzes and compares the current economic context in the US with the economy in the late 70s and early 80s.

[10:12] Gold and US Dollars – Grant broadly explains the evolution of the relationship between gold and US dollars.

[15:30] Present Economic Situation – Grant delves deeply into the current economic climate in the United States from various perspectives and then provides his thoughts on those observations.

[20:55] TIPS – Grant discusses how increasing your allocation to Treasury Inflation-Protected Securities can act as an inflation hedge.

[23:32] Series I bonds – Grant identifies investing in these types of bonds as an excellent alternative to hedge inflation.

[28:26] Investing in Gold – Grant discusses the potential of investing in gold and shares his thoughts on the matter.

[32:12] Equity – Grant identifies equities as an excellent inflation hedge in the long term.

[34:52] Asset Allocation– As a final remark, Grant discusses his ideas on asset allocation in general.

Resources

Bureau of Labor Statistics & CPI-U: bls.gov/cpi/

Treasury Direct & Series I Bonds: treasurydirect.gov/indiv/products/prod_ibonds_glance.html

GMB Ep #104: An Entrepreneurial Success Story With Lindsay Pinchuk

From developing an idea into a viable business to growing revenue, managing finances, and eventual exit and sale, the journey of entrepreneurship can be risky and fascinating. In the upcoming episodes of Grow Money Business, we will have individuals on the show sharing their exciting entrepreneurial stories. In today’s episode, Lindsay Pinchuk, an award-winning entrepreneur, joins us today to share her story of growing Bump Club & Beyond, one of the premier parenting communities in the country.

Show Notes

[03:36] Lindsay’s Story – Lindsay shares how she got the idea of starting her business and the exciting entrepreneurial journey that came with it.

[9.57] Structure – Lindsay explains how her previous work experience helped her in modeling her business structure.

[10:38] Monetizing – Whatever the business is, monetizing plays a vital role. Lindsay broadly describes how she utilizes the power of community for monetization.

[15:33] Taking the Shift – Lindsay talks about why she gave up her career for her business and what that transition looked like.

[17.33] Financing – Lindsay shares how she embedded the financial aspects, such as bookkeeping and having an accountant, into her business as it grew.

[20:00] Entity Structure – Lindsay shares with us some of the lessons she learned about setting up the right business structure and hiring the right kind of people for the business to flourish.

[28:54] Outsourced CFO – Lindsay talks about the financial support she got by outsourcing the CFO position, especially when creating valuations for the business.

[30.30] Acquisitions – Lindsay talks about how she received acquisition offers from three different entities for her business in 2018 and the process that followed.

[33.13] Message to the Entrepreneurs – Lindsay shares some lessons she learned from her business journey.

[42:30] Business & Personal Life – Lindsay shares her experience of managing personal finances and business as a mother.

Resources

Connect with Lindsay

Website: lindsaypinchuk.com/

LinkedIn: linkedin.com/in/lindsaypinchuk/

For more tips to help you start and grow your business, follow Lindsay on Instagram: instagram.com/lindsaypinchuk/

You can also grab some of her free guides:

5 Tips + Tools for Starting Your Own Business: view.flodesk.com/pages/6192a54d3a0e5bcf6f542228

Six Super Simple Tips for Social Media Success:view.flodesk.com/pages/61929cab839edddd7aa02829

Make sure you check out her podcast Dear Found Her, coming in January. Subscribe on Apple, Spotify, or wherever you listen.: podcasts.apple.com/us/podcast/dear-foundher/id1591976277

For further discussion with other founders, join the Dear Found Her Facebook Group: facebook.com/groups/dearfoundher/

GMB EP #102: Don’t Let Cap Gains Distributions Catch You Sleeping

Every year mutual funds are required to distribute capital gains to shareholders – whether you like it or not. Even though “gains” are typically a good thing, they can also leave you with a big unwanted tax bill. This week we cover everything you need to know about mutual fund capital gains distributions, including how to forecast, plan for, and avoid them.

Show Notes

[02:35] Important Period – Grant starts the discussion by mentioning the parties that need to stay updated about mutual funds during this time of the year.

[05:45] Structure of Mutual Funds – Grant provides a broad description of the structure of mutual funds from various perspectives.

[11:16] Capital Gains Distribution – Keeping an eye on the company portfolio in the mutual fund is important as an investor. Grant shares his thoughts on how to benefit from capital gains distributions.

[14:12] Options for the Investors – Grant explains the numerous options that the investors have at the year-end related to mutual fund investments.

[16:45] Active Mutual Funds and Passive Mutual Funds – Grant analyzes the effect on the distributions of capital gains by active and passive mutual funds, giving numerical examples.

[19:48] Exchange Traded Fund – Capital gains distributions of exchange-traded funds are quite different from the above. Grant dives into exchange-traded funds explaining it with several examples.

Resources

Capital Gains Roundup: 2021 Edition | Strong performance and outflows generate some big taxable distributions: morningstar.com/articles/1065314/capital-gains-roundup-2021-edition

Fund Capital Gains Distributions: What to Expect in 2021 |A strong year suggests that a decent amount of capital gains will be paid out: morningstar.com/articles/1063488/fund-capital-gains-distributions-what-to-expect-in-2021