I discuss the 'Profit First' system by Mike Michalowicz, which helps business owners and individuals manage their finances effectively. The concept involves setting predetermined and strategically assigned percentages for various financial categories such as profit, operational expenses (OPEX), taxes, and owner’s compensation. I explore how to apply 'Profit First' principles to both business and personal finances, including setting up automation to manage cash flow efficiently. I outline my own financial framework and share practical tips for merging business and personal finances to achieve financial goals. I encourage listeners to be intentional about their financial management to ensure security in their future.

Key Takeaways & Timestamps:

• (00:00) Introduction to Profit First

• (01:15) Understanding Profit First from a Business Lens: Profit, OPEX, Tax, Owner’s Compensation

• (04:44) Applying Profit First to Personal Finances: Savings, Fixed Spending, Flex Spending, Non-monthly Spending

• (07:44) A Personal Example of How Profit First Works in our Business Income

• (09:02) A Personal Example of How Profit First Works in our Personal Budget

• (11:18) Concluding Thoughts

• (13:09) Download the Ultimate Military Finance Checklist

  
  

Mentions:

Profit First

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

I dive into the complexities of understanding tax returns. I share my yearly process of reviewing every client's tax return to identify forward-looking planning opportunities and to correct any errors from previous reporting. I discuss the importance of Roth contributions, the implications of the Tax Cuts and Jobs Act, and strategies for managing business and personal taxes, including the use of Schedule E and the benefits of regularly reviewing taxable interests and dividends. Further, I cover the importance of choosing between itemized and standard deductions, the impact of various income sources on tax obligations, and the overall strategy for financial planning and tax optimization for military families and veteran business owners.

Key Takeaways & Timestamps:

• (00:00) Introduction

• (00:51) Deep Dive into Tax Return Analysis

• (01:35) Exploring Tax Planning Opportunities

• (01:56) Understanding Taxable Income and Tax Brackets

• (02:24) Roth Contributions: A Strategic Move

• (03:21) Capital Gains and Investment Income Insights

• (06:58) Navigating Schedule E and Business Income

• (08:25) Maximizing Schedule B Income and Dividends

• (09:50) Standard Deduction vs. Itemizing

• (11:00) Concluding Thoughts

• (11:34) Download the Ultimate Military Finance Checklist

  
  

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/38

In this episode, I delve into the benefits and mechanics of donor advised funds (DAFs) and their role as a savvy tax strategy for charitable giving. If you're a high-income earner who's both charitably inclined and invested in the stock market, this is for you. I'll break down how DAFs function, highlighting their tax advantages, especially in light of the 2017 tax changes, and identifying who stands to gain the most from utilizing them.

Drawing from real-life scenarios, I'll show you how DAFs can yield substantial tax savings. By allowing individuals to donate appreciated securities or cash, claim immediate tax deductions, and then disperse these funds to charities over time, DAFs offer a strategic approach to giving back.

Throughout the episode, I'll differentiate between those best suited for DAFs and those who might not reap as many benefits. I stress the importance of having a charitable mindset, discuss the potential tax ramifications of appreciated securities, and consider how the standard deduction impacts charitable contributions.

My goal is to provide listeners with actionable insights to support their favorite causes while optimizing their financial plans. So, if you're eager to make a difference while making the most of your resources, tune in for some valuable guidance.

Key Takeaways & Timestamps:

• (00:00) Introduction

• (00:54) The Tax Mechanics of Donor Advised Funds

• (04:01) Who Should Consider Donor Advised Funds?

• (05:56) Who Might Not Benefit from Donor Advised Funds?

• (07:36) Illustrating the Impact of Donor Advised Funds With an Example

• (10:59) A Recap of What Criteria to Consider about Donor Advised Funds

• (11:48) Download the Ultimate Military Finance Checklist

  
  

  www.baskinfp.com/post/37-donor-advised-funds-one-of-the-most-powerful-tax-planning-tools

  
  

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

I'll share my financial journey from a second lieutenant fresh out of the Air Force Academy to a successful veteran business owner. I'll discuss the investment accounts I utilized at different stages, my strategy for allocating excess cash, and how my goals and priorities have shifted over time. Initially, I was focused on retirement accounts like Roth IRAs and Roth TSPs, but later on, I came to emphasize the importance of liquidity and the diverse goals of a veteran business owner. These goals include preparing for potential kids, moving houses, and ensuring business success. I advocate for a simple, long-term focused investment approach, free from market timing or speculative assets like cryptocurrency. This episode aims to provide a framework for listeners, especially those in high-income households or owning businesses, on intelligently allocating their money to achieve financial freedom.

Key Takeaways & Timestamps:

• (00:00) Introduction

• (00:55) Investment Strategies: From Military Service to Entrepreneurship

• (01:53) Early Career: Accounts, Implementation & Goals

• (04:18) Veteran Business Owner: Accounts, Implementation & Goals

• (07:19) Future Financial Planning: Building Resilient Wealth

• (13:09) Simplicity and Long-Term Focus in Wealth Accumulation

• (14:44) Download the Ultimate Military Finance Checklist

  
  

  www.baskinfp.com/post/36-how-ive-invested-my-money-from-2nd-lieutenant-to-veteran-business-owner

  
  

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

In this episode, we delve deep into the topic of disability insurance and its critical role in financial planning. Disability insurance is often overlooked, especially among military families and veteran business owners, despite the statistics showing that one-fourth of individuals are expected to become disabled before retirement age. Let's talk about the essential features of disability insurance policies, including coverage specifics, the importance of insuring future income, and why a personal disability insurance policy remains vital across different job transitions and for business owners. Selecting the right policy is crucial. We discuss aspects like 'own occupation' coverage, inflation protection, and the intricacies of policy premiums. I also share a powerful example to illustrate the long-term benefits of securing a private disability insurance policy. It's important to highlight the general lack of awareness and misinformation surrounding this type of insurance. Disability insurance can be a lifeline in challenging times, and it's a cornerstone of financial security that shouldn't be overlooked.

Key Takeaways & Timestamps:

• (00:00) Why is Disability Insurance Overlooked?

• (02:04) Introduction

• (02:23) Disability Insurance Through Your Employer

• (03:47) The Importance of Personal Disability Insurance

• (05:03) How Much Disability Insurance Should You Have?

• (05:59) Essential Features in Disability Insurance

• (06:58) The Ultimate Military and Veteran Financial Checklist

• (07:20) When to Get Your Insurance Policy?

• (08:49) Why is Disability Insurance Valuable?

• (10:39) Challenges in Acquiring Disability Insurance

• (11:17) The Questions to Ask Yourself About Disability Insurance

• (12:49) Closing Remarks and Resources

  
  

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

In this episode, I talk about the superpowers of the often overlooked Roth IRA account. I go through what it is, the rules around it, and the three main benefits that it provides.

Time Stamps:

• 00:00-01:47: Intro
• 01:47-06:06: The Benefits of a Roth IRA
• 06:06-08:55 : Withdrawal Rules
• 08:55-11:20: Tax Free Compound Growth Example
• 11:20-14:30: Retirement Income Diversity Example
• 14:30-16:07: Wrap Up

www.baskinfp.com/post/34-the-super-powers-of-a-roth-ira

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⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Book an intro call⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠erik@baskinfp.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

In this episode, I walk through my financial order of operations to give you a framework for how to allocate your money in a way that makes sense on a quantitative and qualitative basis.

Time Stamps:

• 00:00-01:53: Intro
• 01:53-06:02: Emergency Fund, 401(k) Match, and High Interest Debt
• 06:02-09:04 : HSA, Roth IRA, and Children's Education
• 09:04-11:43: Max 401(k), Rental Real Estate, Lower Interest Debt
• 11:43-15:28: Taxable Brokerage Account, Mortgage, and Extreme Generosity

• 15:28-17:17: Wrap Up

www.baskinfp.com/post/33-the-financial-order-of-operations

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⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Book an intro call⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠erik@baskinfp.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

In this episode, I discuss the recent $418 Million settlement by the National Association of Realtors (NAR) and it's impact on your personal financial planning situation.

Time Stamps:

• 00:00-01:40: Intro to the Settlement
• 01:40-02:25: Background on the Settlement
• 02:25-07:39: The Changes Coming
• 07:39-11:56: Financial Planning Impacts and Wrap Up

www.baskinfp.com/post/32-financial-planning-implications-of-the-nar-settlement-on-realtor-commissions

Resources:

• NAR Wants VA to Change Regulations
• NAR Settlement

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⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Book an intro call⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠erik@baskinfp.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠