EP 131: Taxes, Putting Yourself Out There & Runna

What's in store for you:

1. Photo From My Life
2. Financial Thought: Pay More Taxes
3. Life Thought: Putting Yourself Out There Is Hard
4. Good Sh*t: Runna

Photo From My Life:

Financial Thought:

Pay More Taxes: This week, I sat down with a client and their CPA to discuss year-end tax planning. It was a great reminder of something I think gets overlooked far too often in financial planning.

The goal isn’t to pay the least amount of taxes. The goal is to maximize your long-term financial well-being.

For business owners, year-end tax planning is particularly important. It’s often difficult to predict exactly what taxable income will look like until the final few months of the year. A good CPA will work hard to identify opportunities to reduce that taxable income through retirement contributions, business expenses, depreciation, and other strategies.

This is incredibly valuable work. However, minimizing taxes is only one piece of the financial puzzle.

As a wealth manager, my job is to take the tax strategy and connect it back to the client’s broader financial plan.

• What are their goals?
• How much liquidity do they need?
• Are they planning to buy a house, invest in another business, or fund their children’s education?

These questions matter because sometimes the best tax decision isn’t the best financial decision.

For example, imagine a business owner who has the opportunity to reduce their taxable income by making a large retirement contribution. From a tax perspective, it’s a great decision.

However, what if that same business owner wants to buy a vacation home in two years? Locking that capital into a retirement account may create more problems than the tax savings are worth.

The same logic applies to business owners who aggressively reinvest in their companies to minimize taxable income. Sure, there may be meaningful tax benefits, but what if those investments leave the family without enough liquidity to pursue other important goals?

Taxes are one of the largest expenses most wealthy families will face. You should absolutely work to minimize them when possible. However, I think too many people become obsessed with minimizing their annual tax bill without considering the bigger picture.

I’d much rather see a client pay a bit more in taxes and achieve their financial goals than save on taxes at the expense of the life they’re trying to build.

My Recent YouTube Video:

How Much House Can You Actually Afford? (5 Tests)

Watch Here

Life Thought:

Putting Yourself Out There Is Hard: I was recently at dinner with a group of friends who I respect and admire. At some point, the conversation shifted to someone who was putting themselves out there on social media. Nothing malicious was said, but there were a few comments about how their content was a bit “cringe.”

I get it. We’ve all seen someone post something on social media that makes us cringe a little. I’ve certainly been guilty of making similar comments. However, this conversation hit me a bit differently.

Over the last few years, I’ve been making a conscious effort to put myself out there more. Whether it’s writing this newsletter, posting on social media, or sharing what I’m building professionally, I’m trying to become more comfortable being public.

And candidly, I find it incredibly uncomfortable.

I often wonder how many old friends, former colleagues, or family members see my posts and think, “What the hell is Andy doing?” Are they laughing at me? Do they find my content cringe? Do they wonder why I’m suddenly sharing so much about my life and business?

The answer is probably yes. At least for some people.

But, I’ve come to realize two important things:

1. People don’t think about you nearly as much as you think they do. We all spend so much time worrying about what others think of us. In reality, most people are too busy living their own lives to spend much time thinking about yours. Someone might laugh at a post, make a comment, and forget about it 30 seconds later. Meanwhile, I’m still thinking about it three days later.
2. The upside of putting yourself out there far outweighs the downside. Building a personal brand has real value. It creates relationships, generates business opportunities, and allows you to connect with people you’d otherwise never meet. If putting myself out there helps me grow my businesses and build meaningful relationships, isn’t that worth a few people thinking I’m a bit cringe?

I’ve also realized that I shouldn’t care nearly as much about the opinions of people whose advice I wouldn’t seek in the first place. It’s easy to say, but much harder to actually believe.

The funny thing is that I know all of this intellectually. I’ve accepted that putting myself out there is the right decision for my long-term goals. However, that doesn’t make it any easier when I hit publish on something that feels a bit uncomfortable.

So, if you’re putting yourself out there and feeling a bit cringe, you’re not alone. I’m right there with you. And if you happen to be laughing at one of my posts with your friends over dinner, I guess that’s okay too.

Good Sh*t:

Runna: I’m almost done training for a half marathon and I couldn’t be happier about it. I’ve enjoyed the challenge, but I’m also very ready to stop spending my free time running.

One of the best discoveries during this process has been Runna, an app that builds personalized running plans based on your fitness level, goals, and schedule.

What I’ve appreciated most is that it takes all the thinking out of training. Instead of wondering how far or fast I should run, I just open the app and follow the plan.

I’m not sure I’ll be signing up for another half marathon anytime soon, but Runna has made the training process significantly easier. Check it out here.

Disclaimer: VDB Wealth is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance is not indicative of future performance.