The Pilot Money Guys

Have you ever considered buying a plane? In this episode, we dive into the complexities of such a decision and why it can't just be about saving on taxes. Contrary to popular belief, setting up an LLC or another corporation may not provide the tax benefits you expect. We explore the criteria for tax deductions and why expenses must be reasonable and directly related to business purposes. Additionally, we discuss the importance of evaluating your plans for using the plane, frequency of use, and geographical considerations to determine if buying is the best option. You can find show notes, resources and more at: https://tinyurl.com/mvwvnczs

How do you navigate the complexities of the economy and stock market? Andy Christopher, CFA, joins the show to shed light on the relationship between the two and provide insights into predicting market entry points with precision. In this episode, we aim to dispel common myths surrounding market dynamics to help you to protect your investments. From clarifying the role of the Fed to debunking misconceptions about presidential influence on markets, Andy offers practical advice on understanding and preparing for market fluctuations. You can find show notes, resources and more at: https://tinyurl.com/3zbbpas3

Are you contemplating whether to enlist the expertise of a financial advisor as your income rises? In this episode, we dive into the pivotal question: Should you hire a financial advisor? We discuss how to evaluate and question potential advisors, shedding light on the crucial questions you must ask before making a decision. You can find show notes, resources and more at: https://tinyurl.com/bd22j86d

Today we're diving deep into credit card points, sharing highlights for both seasoned collectors and newcomers alike. Joining us is Mary Graves, who shares her journey into the world of point collection and how it can pave the way for a fulfilling retirement. Discover the strategic moves necessary to accumulate points without depleting your savings, and learn how to leverage them effectively for travel experiences. You can find full show notes, resources and more at: https://tinyurl.com/3rr3hjsm 1 - Sign up bonus – Frequent Miler. Greg the Frequent Miler has a blog, a podcast, and a FB Insiders group – all for no cost. And he does a really good job of explaining programs with equal attention to the downsides as the benefits. Frequent Miler posts an updated page of best offers. This is the best place to check for all credit card offers BEFORE signing up – except for the BILT card. BILT is the only credit card that awards transferable points for rent payments. BILT does not have a structured SUB – but usually offers 5X points for all purchases up to 50,000 points for 5 days. This is a significant offer and way to earn lots of BILT points – so plan accordingly. If you'd like to apply for a no AF BILT card – please consider using my referral code: https://bilt.page/r/Z5N7-WTUX - I will receive 2500 BILT points for referring. 2 – Ongoing points multipliers and promos – check app or website – example BILT earns 3X points for travel (6X on the 1st of each month) but Amex Platinum earns 5X on airfare and offers travel insurance. Citi Premier is a great everyday card because it offers 3X at gas, grocery & travel with a $95 AF. AMEX gold gets 4X at grocery stores and restaurants up to $25,000 spend annually with a $250 AF. 3 – Credits for services such as Global Entry, Nexxus, Clear – most cards that offer the Global Entry credit only allow it's use once every 5 years – but Clear reimbursement usually is annually. GE is used to re-enter USA faster but it also affords the holder to TSA pre-check on all flights – domestic and international. 4 – Credits for travel and/or miscellaneous items – AMEX plat, Venture X – example Venture X comes with a $300 travel credit (used through the Venture X travel portal – so maybe not worth $300 in the wild) to help offset the $395 AF and Amex personal platinum has a $200 airline credit (I use mine annually to deposit into my United travel bank) and a $200 hotel credit when booking a hotel through the AMEX Fine Hotel & Resort collection (these can range from $100/night to $1600+/night and include free upgrades, breakfast, and a $100 hotel credit) to help offset the $695 AF. 5 – Fast track to elite status – Hilton Diamond via Amex Aspire, etc. – the AMEX Hilton Surpass offers Hilton Diamond Status which gives holder free breakfast & lounge access outside of US and a breakfast credit within US for $150 AF. 6 – Free bag checks, inflight purchase discounts, free companion pass – SW companion pass available when you earn 135,000 SW points in a single calendar year or complete 100 flights. This pass can last up to 2 calendar years depending on when in the year you earn it and allows you to bring one person free (+ $5.60 fee) on any flight you are one (whether paid or award ticket) as long as there is at least one seat (at any price level) left on the plane. Couples that use this pass report their savings as high as $3,000 per year. Annual fees for SW credit cards range from 0 - $199 per year. 7 – Travel insurance, lost baggage insurance, rental car primary insurance – this has been scaling back over the last few years but the two best cards for this are the AMEX platinum (business or personal) and the Chase Sapphire Reserve. 8 – Lounge access – Amex Centurion, Capital One Lounges, Chase Sapphire Lounges – Priority Pass is available with several cards like Venture X, Amex Plat, US Bank Altitude Reserve & Connect Visas, BOA Premium Rewards Elite Card. The more inclusive Priority Pass Select is available with Venture X and Chase Sapphire Reserve. 9 – Curated experiences – Bilt, Chase, Citi – Chase will set up a hospitality tent at a music festival or sporting event. 10 – Free night certificates for hotels – Marriott certs can range from 30K – 85K point value and you can "top off" a free night cert w/ up to 15K Marriott points. Hilton free night certs are considered the most valuable in the industry because they can be used for any Hilton property regardless of price or points as long as there is standard room inventory available. If you'd like to see where my points take me – feel free to follow me on IG @mary3graves or on Facebook: https://www.facebook.com/mary.graves.923/

With airlines finalizing new contracts and increased 401(k) contributions, the question of whether to invest in a Roth IRA has become a hot topic among pilots. In this episode, we aim to provide clarity on this complex decision and offer guidance tailored to various scenarios and limitations. From understanding who can contribute to a Roth IRA to delving into the concept of Roths, we explore considerations for first officers. You can find show notes, resources and more at: https://tinyurl.com/38ywhkfd

Did you know that you're leaving a legacy, whether you realize it or not? Join us for an eye-opening discussion on legacy planning with Jon Cremer, Financial Advisor. In this episode, we dive into the impact of intentional legacy planning and why it's crucial to start thinking about it sooner rather than later. You can find show notes, resources and more at: http://tinyurl.com/mryv6ysa

Are you ready to explore the dynamic world of Real Estate Investment Trusts (REITs)? Dr. John Worth is an expert in economics and the Executive Vice President of Research and Investment Outreach in a REIT, and he joins us to share his deep understanding of REITs, their crucial role in a diversified portfolio, and how they perform in today's economic environment. You can find show notes, resources and more at: http://tinyurl.com/mzw84wsh

Tune in as The PMG's discuss the following financial aspects of the SWA 2020 Contract: Market-Based Cash Balance Plan, Tax withholdings for the Ratification Bonus Pay (RBP), New Life Insurance benefits, One-time SWA Profit Sharing rollover opportunity, and more!

Join us for a deep dive into the complex world of taxes, where we'll dissect the mysteries of what's fraudulent, what's a gray area, and what's not only legal, but also incredibly smart. Discover why the allure of complexity may not be in your best interest and why trying to outsmart the tax man is a risky game. You can find show notes, resources and more at: http://tinyurl.com/y74d8at9

Kevin Gormley, CFP, CPA, PFS, and Lead Financial Planner at Leading Edge Financial Planning LLC., joins the show to help us explain the seven critical lessons learned in the tumultuous financial landscape of the past year. Brace yourself for a journey through bank failures, crypto turmoil, and market fluctuations that led to the collapse of major financial institutions, sending shockwaves through the industry. You can find show notes, resources and more at: http://tinyurl.com/5f9s9zux

Unlock the secrets of successful investing as we pay tribute to the legendary Charlie Munger. A titan in the business world, Munger's principles for both investing and life are timeless lessons that can shape your journey to prosperity. Delve into the wisdom of a man who, alongside Warren Buffett, navigated the complex world of finance with hunger, humility and unmatched intellect. You can find show notes, resources and more at: http://tinyurl.com/u4dzk9be

Explore the world of bonds with Jim Jackson, Co-Chief Investment Officer at Victory Capital. In this episode, Jim delves into the role bonds play in a diverse portfolio and the predictability of their performance compared to stocks. He also simplifies the complexities of bonds, emphasizing their mathematical nature in contrast to stocks, and challenges the financial industry's predictive shortcomings by opting instead for planning. You can find show notes, resources and more at: https://tinyurl.com/36upwv67

When it comes to creating a positive environment for success, it's not just about investment returns—it's about your mental framework and decision-making. In today's episode, we explore how to identify whether you have a wealthy mindset, as well as what it means to embrace the KISS principle. You'll find out why being a lifelong learner is crucial and how treating all aspects of your life as investments can lead to both financial prosperity and happiness with a sense of abundance. You can find show notes, resources and more at: https://tinyurl.com/5n94n9vc

What should you do with unexpected financial windfalls, such as a bonus check or unforeseen extra income? Today we answer this question and address the essential balance between celebrating your financial wins and planning for the future, sharing valuable tips to avoid financial pitfalls and the importance of building a robust emergency fund. Listen in to learn how to make the most of unexpected financial gains and more. You can find show notes, resources and more at: https://bit.ly/3QGFghf

Discover the secrets to a harmonious marriage and a prosperous financial life in this engaging panel discussion. Join us as we sit down with our team members at Leading Edge Planning, including Betsy Wheeler, Paraplanner, Kevin Gormley, Principal, Jon Cremer, Financial Advisor, and Nolan Clark, Paraplanner, to explore the intricate relationship between marriage and money. You can find show notes, resources and more at: https://tinyurl.com/mwjvtm5p

In this episode, we have the privilege of hearing the remarkable aviation journey of Roger Lance, a retired Air Force officer and Vietnam War veteran. Roger takes us on a captivating flight through his experiences, from his early days in aviation to the intense moments in the war. He provides a glimpse into the different aircraft he piloted and shares his favorites, shedding light on the competitive yet camaraderie-filled world of flying. You can find show notes, resources and more at: https://tinyurl.com/3hcuyejp

Today we're joined by investment expert Andy Christopher, a Naval Academy graduate and F-35 Contract Instructor Pilot, and Sunil Wahal, a Professor at Arizona State University and Consultant to Avantis Investors. Together, they shed light on the intricacies of investing, emphasizing its profound connection to life itself, and the importance of self-awareness, helping you calibrate your risk tolerance and assess potential risks in your investment portfolio. You can find show notes, resources and more at: https://tinyurl.com/nk7yz5sk

Meat of the Mission – Five Ways to Avoid Getting Hacked with Cyber Hunter Akiva Clark Always use Multi Factor Authentication. (MFA) Use different emails for more or less security sensitive accounts. Password strength is critically important. Use password manager. Freeze your credit – Click here to see specific instructions from Nerd Wallet to freeze/lock your credit at all FOUR credit reporting agencies.

Flight #63 - Dumb Things Smart People Do with Money Questions from the flight deck: · Next year all 401k catch up contributions will be Roth. How will this affect your taxes? · https://www.kiplinger.com/taxes/the-problem-with-401k-catch-up-contributions o Under SECURE 2.0, if you are at least 50 years old and earned $145,000 or more in the previous year, you can make catch-up contributions to your employer-sponsored 401(k) account. o But there's a catch. You would have to make those extra contributions on a Roth basis, using after-tax money. o You wouldn't be able to get tax deductions on those catch-up contributions as you would with typical 401(k) contributions, but you could withdraw the money tax-free when you retire. Dumb Things Smart People Do with Money · Vanguard's Advisor's Alpha – They say most value is from behavioral coaching. o https://advisors.vanguard.com/advisors-alpha#overview · Buy High – Sell Low – why? · Example: Value investment premium – Part of premium could be from our human behavior that seems to persist and is not arbitraged away. o "According to the behavioral school of thought, human tendencies are behind the existence of the value premium. Many investors are lured by the appeal of companies with exciting growth stories and prospect of strong short-term returns, while being deterred by those that receive little fanfare or are unloved by the masses." § From article by Investment Firm Robeco. · "Human instincts drive the Value premium" · Recency bias – Recency bias is the tendency to put too much emphasis on recent events, such as a stock-market rout, the meteoric rise of bitcoin or a meme stock such as GameStop, for example. o The "Lost Decade" is mostly ignored due to lack of recency. o "The term "Lost Decade for Stocks" refers to the ten-year period from 12/31/1999 through 12/31/2009, when the S&P 500® generated an annualized total return of -0.9% over the period. This was only the second time that the market actually had a negative total return over a decade period." · Average investor performance vs. The investment's performance – ARKK. o See Pilot Money Guys Podcast/Flight #30 "Chasing Hot Stocks – Investing in the Rearview Mirror" · Morningstar's "Mind the Gap..." https://www.morningstar.com/lp/mind-the-gap · Morningstar Article: "Bad timing cost investors one fifth of their funds' returns" Morningstar investor research firm recently published an article titled, "Bad Timing Cost Investors One Fifth of Their Funds' Returns

Airline/Aviation News: United AIP, American, FedEx AIP segway Questions From The Flight Deck: What if age 67 passes? What is Hybrid retirement? https://www.nbcnews.com/news/amp/rcna95349 The Senate still needs to pass its own version of the bill before the current authorization expires on Sept. 30. Make an intentional decision - I.e., plan. Those that do not plan – life happens to them, and they get angry and bitter. If you're squarely "in the green" - Retire! 70% - 90% If you LOVE flying – fly part time. If you don't love slipping the surely bonds BUT you're on the financial bubble – Hybrid retire. Do NOT save in your retirement accounts! Additional $30k plus in your pocket for spending. Fly part-time – 1-2 trips per month. 2 years of NO retirement distributions: ~8% improvement or more income VSP ~ $1000 per month 5 years Social Security Strategy – wait till 70? Insurance against bad stock market $7mm left over versus $4mm Meat of the Mission: What is a cash balance plan? Cash Balance Plan Basics: Pension-like, Hybrid...DC versus DB. Big picture – a better way to save more money! Is it guaranteed or not? Fiduciary responsibility. Market-based plans are a type of cash balance plan where the account's growth is tied to the actual return on plan assets. This contrasts with a traditional cash balance plan that typically has a fixed interest credit rate. Pros/Cons in relation to 401k, in relation to Pension. MBCBP – may underperform... Think annuity-like versus market like...what does the average investor get for investment returns? Flexible – unlike Non-Qualified "spill-over" plans Differences at airlines? Decision points for FedEx, Delta, American etc. https://www.msn.com/en-us/money/companies/american-airlines-pilots-want-bargaining-do-over-after-united-bests-on-pay/ar-AA1e5RMo

Questions From the Flight Deck: What do we do with large retro/bonus checks? Is a cash balance plan any good? Meat of the Mission: Never spend more than they make. How? Habit Patterns... What type of spend Spend money on fun stuff; Leisure, fun, travel Don't spend money on stuff that does not add value – cut it out. YNAB, EveryDollar, or other apps. https://www.iwillteachyoutoberich.com/ Amelie Riendle Podcast (Flight #44 and Flight #27) Prepare more, plan more... What do you want to do in retirement? You can only sit on the beach or play golf so much. The #1 thing people do in retirement is watch television! Michael Finke. Know your retirement needs...it's expensive! Start a financial plan now to know your "number" for how much to save to meet your retirement financial goals. Don't let it be a lingering question. Simulate (software), practice...take some time off and live on the retirement budget. Deliberation, Planning, and Intention in and of themselves make people happier in retirement: (Michael Finke) E.g., Those that retire in accordance with their plan vs. Forced retirement. Both experience happiness, but forced retirement is a delayed happiness (3- 4 years). E.g., Those that move after retirement...not b/c they move but because they had a deliberate plan with intentionality. Control vs. Out of Control??? Michael Finke says "Invest in Imagination" Never compromise their health: exercise and eat right. Exercise not only helps you feel better in retirement but also helps mental capacity and cognitive health. Flight #58 Exercise and the Brain: The Neuroscience of Fitness Explored. "Exercise stimulates neurogenesis – the creation of new neurons – primarily in the hippocampus, influencing memory and learning while increasing key mood-regulating neurotransmitters. It also enhances brain plasticity, essential for recovery from injury and aging, and improves cognitive functions such as attention and memory." Estimated that average couple will need $315k to cover medical expenses in retirement, excluding LTC (https://institutional.fidelity.com/app/item/RD_13569_42402/retirement-planninghealth-care-costs.html) Invest more in their relationships and always work to build new connections. (Michael Finke) "Dude...you're not as good at retirement as the women are." Invest in relationships outside of work. Strongest predictor of life satisfaction during retirement: Relationship with your spouse – huge impact, good and bad. Highest statistical significance. Marital counseling to prepare...? (Valuable investment) Friends – Second highest statistical significance. Your kids – not as significant...statistically and FB comments online. Takeaway – Invest in your marriage...invest in friendships outside of work. Plan, prepare for taxes...it is a large (frustrating) expense What are the financial AND emotional costs of paying too much taxes in retirement? RMDs – when not needed? Legacy planning: Roth, 529, Brokerage account. Practical side: HSA, Roth, Cash, Taxable Brokerage The right mindset – what is money? It does not make you happy... Money is paper or numbers on a computer screen...E.g., bricks to build a house. Pre-Retirement: Don't allow money to make you miserable... Examples of how money ALONE has made people miserable By chasing after it too much...like a trophy Airlines are great b/c fly more = more pay. BUT... Money is a tool to reduce stress and increase your enjoyment...there are other tools! Post-Retirement: It's okay to spend your retirement money on frivolous stuff... Example, people spend from pensions but not on IRAs, 401ks. Defined Contributions versus Defined Benefit. Finke example: Mom has a pension and spends every dollar happily, but refuses/hates to draw from her IRA Understand what truly DOES make you happy in retirement – you must invest in these three things: Finances Health Relationships Realize there are things that you cannot control – Realize that you have more control (of other areas) than you realize: Example – Short-term stock market gyrations versus your own personal inflation. Example – Our country's debt crisis – saving more to prepare. Example – Higher inflation and taxes in the future – save more to prepare. If things go really badly – you'll be glad you prepared, saved, etc. Example – MGP "bad timing" scenario – 2008-type retirement for airline pilots at age 60. Be an Ant during working years and be a Grasshopper in retirement (up to a point). Though Aesop's fable is regarded as a lesson in thriftiness, "grasshoppers" are likelier to smooth their spending over their lifespans. Don't wear thriftiness as a badge of honor- you saved to consume later- hint, it is now later! (https://www.aaii.com/journal/article/grasshoppers-and-ants-in-retirement) Don't compare (especially finances) – live someone else's values. Comparison is the thief of joy! From this article: "Feelings of jealousy, frustration, and hopelessness emerge if comparisons continue. If left unaddressed, chronic anxiety and d

Questions From The Flight Deck: Introducing: Andy Christopher – F18 Navy Fighter Pilot and Investment Advisor Background How'd you get interested in flying? Why the Navy? Navy flight experience. Ejection story – first flight!?! Meat of the Mission – 529s Common Questions: What if my kid gets a scholarship? Do I need to invest in my state's 529? No! What if I overfund the 529? Can I give my 529 to my child? How does the 529 affect financial aid? Can I use the 529 for United, Delta, SWA feeder schools – aka career development programs. United Aviate Delta Propel Program SWA Destination 225 Should I just use the Roth IRA? Roth 401k? The major difference between Roth IRA withdrawals and Roth 401k withdrawals: There is one catch, though. Early withdrawals have to be prorated between (nontaxable) contributions and (taxable) earnings. To calculate the portion of the withdrawal attributable to earnings, simply multiply the withdrawal amount by the ratio of total account earnings to account balance. U.S. Department of Labor. "401(k) Plans for Small Businesses Supplement." Why save for college? College Tuition Inflation Statistics | BestColleges Tuition increases over time have traditionally outpaced inflation Avoid student loan debt (for parents and children) One of the most expensive "investments" in one's life 529 basics Similar to Roth IRA: After-tax money in, tax-free money out when used for qualifying tuition expenses FAFSA: Does a 529 plan affect financial aid? - Savingforcollege.com Any parental assets beyond that amount ($10,000) will reduce a student's aid package by up to a maximum of 5.64% of the asset's value. So, if a parent's 529 account exceeds the Asset Protection Allowance by $10,000, his child's financial aid award could be reduced by as much as $564. Which plan to pick? What Is a 529 Plan? - Savingforcollege.com Don't have to use your state's plan, but may be reasons to use in-house plan Unique plan rules for transfer of ownership, total account value limits for contributions State tax benefits (OH) E.g., Virginia residents – tax deduction PER ACCOUNT, age 70 rule and tax deductions carry forward... Low-cost plans (Utah my529, W VA, etc.) How much to save? Vanguard Savings Calculator Rule of thumb: Public vs. Private Scholarship Other sources of funding: grandparents, GI Bill, etc. "Superfunding": 10 Rules for Superfunding a 529 Plan - Savingforcollege.com How to invest the contributions? Low-cost/index approach Target-enrollment date (works like a 401(k) target-date fund) What if you don't use the funds? Estate Planning Considerations: Dynasty 529 Plan For Multigenerational College Expenses (kitces.com) Secure Act 2.0 Changes: The SECURE Act 2.0: The Most Impactful Provisions #10 — Moving 529 Assets to a Roth IRA - Fred Reish Withdrawal Options: Penalty-free (not tax free) for service academies, scholarship, death/disability Changing beneficiaries Veteran Benefits GI Bill Transfer State Specific Benefits (CalVets, etc.) Hazlewood Act - Through the state's Hazlewood Act, originally approved in 1943, Texas promises its veterans or their survivors 150 free credit hours at any of the state's public universities or community colleges, once their federal benefits have been exhausted. And vets may transfer hours they don't use to their children. Hazlewood benefits are available to veterans who currently reside in Texas and who lived in Texas or had Texas as their home of record at the time of enlistment, or who simply enlisted in Texas. 1. Vanguard college funding calculators https://vanguard.wealthmsi.com/csp.php 2. Leading Edge 529 video https://youtu.be/Br4ws8waxDQ 3. Morningstar College report, comparison. https://www.morningstar.com/personal-finance/best-529-plans-2023

Airline News: Pilot retirement age 67!!! Maybe... https://www.usnews.com/news/us/articles/2023-06-14/u-s-house-panel-votes-to-raise-commercial-pilot-retirement-age-to-67#:~:text=%22While%20commercial%20airline%20pilots%20are,help%20address%20a%20pilot%20shortage The pilot age proposal faces opposition from unions and an uncertain fate by a U.S. Senate committee, which will consider its version of the FAA measure on Thursday and does not currently include the pilot age hike. The Air Line Pilots Association (ALPA) opposed raising the retirement age and says it could cause airline scheduling and pilot training issues and require reopening pilot contracts. Even if the proposal is approved, the union noted that international rules would still prevent pilots older than 65 from flying in most countries outside the U.S. ALPA called the proposal a "politically driven choice that betrays a fundamental understanding of airline industry operations, the pilot profession, and safety." American Airlines pilot sues over ESG funds in his 401k. "The complaint by American Airlines pilot Bryan Spence was filed on June 2, 2023, in federal court in Fort Worth, Texas, against American Airlines, its employee benefits committee, Fidelity Investments Institutional, and Financial Engines Advisors." "...the suit is significant because it concerns one of America's largest pensions, takes aim at new federal guidance involving retirement plans, and may affect the plan's self- directed brokerage account option, also known as the brokerage window. The brokerage window is the part of a plan that lets participants invest in funds and publicly traded securities outside the limited menu on offer. In 2021, the American Airlines plan brokerage window reportedly had 12% of the plan value." "What's concerning about this lawsuit if it goes anywhere, is it suggests there is some sort of fiduciary obligation to vet individual funds and individual securities available through a brokerage window," Hadley says. Attorneys for the plaintiff didn't respond to requests for comment." Questions From The Flight Deck: What are the best wealth building habits we've seen and learned in our experience working with clients? I've stopped investing...tired of throwing good money after bad. Meat of the Mission: How to think about LTC...mindset. Hard to plan for your 85-year-old self... Four options/basis types: Standard LTC insurance – pay monthly, forever Premiums increase, strict medical screening. Use or lose...not totally true, always. Annuity – increased payouts Do you need an annuity? Payout doubles for a few years... Hybrid Life Insurance – 2nd to die...or individual policy. Life insurance or LTC insurance. Self-Funding... Plan for it... Set aside the funds and name it! Tax Considerations VA Benefits https://www.va.gov/health-care/about-va-health-benefits/long-term-care/ Private Pay: Even though VA, Medicare, Medicaid and other funding sources cover the costs of some long-term care services and settings, depending on eligibility, many people need to use their own income or savings to pay part of the costs for long term care services or settings they need or prefer. For example, people often use their own resources to pay for: Residing in an Assisted Living Facility or Adult Family Home Paid caregiver assistance with personal care needs, chores, or meals in their home Medicaid Trusts? Medicaid trusts are designed to help people qualify for Medicaid, the government health insurance program. Unlike Medicare, which is not means-tested, Medicaid is only available to people of limited financial means. The program is administered by states, which determine their own Medicaid eligibility requirements in a variety of ways. In most, the annual income limit is $29,160 or less. This cap includes Social Security and pension benefits as well as wages and investment income. Financial resources such as bank accounts, investments, revocable trusts and real estate typically can't total more than $2,000. People who have more income and more assets may have to spend their own assets to pay for nursing home care until their assets have declined to the point, they meet the Medicaid caps. An irrevocable Medicaid trust is designed to help someone qualify for Medicaid without having to deplete their own assets. After creating the trust, they can transfer in enough assets to bring them below Medicaid's caps. Once they have done that, assuming they have followed the rules, Medicaid will pay some or all of their nursing home costs. In this way, an irrevocable trust can protect assets from nursing home costs. Sources https://www.morningstar.com/sustainable-investing/pilot-sues-american-airlines-others-over-esg-funds-his-401k https://www.morningstar.com/personal-finance/100-must-know-statistics-about-long-term-care-2023-edition Yahoo Finance on Irrevocable Trusts for LTC Is Long-Term Care Insurance Tax-Deductible? - SmartAsset Do You Have to Pay a Long-Term Care Tax? - SmartAsset https://ww

Airline News: American Airlines, FedEx Agreements in Principle: AIP... How To Think About Your Health And Improve Your Quality Of Life Now And In Retirement Sources: Financial wellness can increase the quality of your physical health. High levels of financial stress manifest through physical symptoms like sleep loss, anxiety, headaches/migraines, compromised immune systems, digestive issues, high blood pressure, muscle tension, heart arrhythmia, depression and a feeling of being overwhelmed. Can induce feelings of happiness. Enhances the quality of your sleep. Physical activity is often associated with reduced symptoms of depression and anxiety. Exercising is critical for airline pilots due to the sedentary lifestyle of flying and traveling. How: You must be intentional. What's the best diet/eating habits? What's the best exercise routine? The one that you'll do! What you are able to make part of your lifestyle. Without a plan, you will drift... to bad nutrition and exercise habits. Hire a fitness instructor. Also, develop an eating plan. Especially plan for days on the road. It's not your age that has you feeling the need to rest -- it's that you're not moving. Even older adults with serious health problems -- heart disease, diabetes, arthritis, and others -- can live better lives by getting up and moving. Resources: https://neurosciencenews.com/fitness-neuroscience-23228/ https://www.purdue.edu/hr/CHL/healthyboiler/news/newsletter/2020-01/finances-health.php

Questions From The Flight Deck: What the heck is ChatGPT, and what jobs will most be impacted? What is it...? https://en.wikipedia.org/wiki/ChatGPT What jobs are at risk...? https://www.visualcapitalist.com/cp/which-jobs-artificial-intelligence-gptimpact/ What about ChatGPT from an investing perspective? ETFs: AIQ, BOTZ, ROBT, AIEQ – see Kwanti. https://www.visualcapitalist.com/how-smart-is-chatgpt/ AI in the Cockpit? https://theaircurrent.com/technology/natural-language-processing-aviation-atccockpit/ Optimism – It's NOT cool! Have we always been pessimistic? Or is it a new phenomenon? "The preacher man says it's the end of time and the Mississippi river, she's goin dry...the interest is up and the stock market's down and you only get mugged if you go downtown..." Great survival story...Hank Williams Jr. If Everything is Getting Better, Why Are People So Pessimistic? "...Those are three emotional biases toward pessimism. We also have cognitive biases that incline us that way, foremost among them being the "availability heuristic." This is a feature of the psychology of probability also documented by Tversky, in collaboration with the Nobel Prize–winning economist Daniel Kahneman. Forty years ago, Kahnemanm and Tversky argued that one of the ways the human brain estimates probability is by using a simple rule of thumb: the more easily you can recall an example of something, the more likely you estimate it to be. The result is that anything that makes an incident more memorable will also make it seem more probable. The quirks of the brain's ability to retain information will bleed into our estimates of a risk's likelihood." "...The bad‐ dominates‐ good phenomenon is multiplied by a second source of bias, sometimes called the illusion of the good old days. People always pine for a golden age. They're nostalgic about an era in which life was simpler and more predictable. The psychologist Roger Eibach has argued that this is because people confuse changes in themselves with changes in the times. As we get older, certain things inevitably happen to us. We take on more responsibilities, so we have a greater cognitive burden. We become more vigilant about threats, especially as we become parents. ...At the same time, we see our own capacities decline. As we get older, we become stupider in terms of the sheer ability to process and retain information. There's a strong tendency to misattribute these changes in ourselves to changes in the world. A number of experimental manipulations bear this out. If you have people try to make some change in their lives — say, to eat less fat — often they become convinced that there are more and more advertisements for fatty foods." Ten Reasons Clients Should Be Optimistic About The Future: https://www.fa-mag.com/news/ten-reasons-clients-should-be-optimistic-about-the-future-72935.html?section=68&utm_source=FA+Subscribers&utm_campaign=d580b67712-FAN_IP_Next_Chapter_Parnassus_050422_COPY_01&utm_medium=email&utm_term=0_6bebc79291-d580b67712-240228216 The US is a net oil exporter. Higher short-term interest rates. Inflation is moderating Companies are great at passing along costs. Now is the time to seek out lower cost providers/products. The Federal Reserve is not a bunch of dummies. Companies know how to cut expenses to boost profits. The stock market has been the best way to make money consistently for decades. The US dollar is the world's reserve currency. Riding High... Some Alternatives: https://www.nbcnews.com/business/economy/how-is-the-economy-doing-right-now-inflationinterest-rate-hikes-rcna73613 Inflation cooling – 4.9% in April – announced today – 10 May 2023. The Fed doesn't have as much control as you think. And no more, QE! https://awealthofcommonsense.com/2023/05/some-things-the-fed-doesnt-control/ US households are in excellent shape, the ratio of liabilities to net wealth has declined 50% since the 2008 financial crisis, and household leverage is currently at levels last seen in the early 1980s; see chart below. If the unemployment rate rises, consumer spending will slow down, but the starting point for US households is very strong. Balance Sheets Are Barriers Against Contagion...Household, corporate and bank balance sheets are more resilient today than during past crises. Factfullness: Ten Reasons We're Wrong About the World—And Why Things Are Better Than You Think. https://www.amazon.com/Factfulness-Reasons-World-ThingsBetter/dp/1250123828/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=&sr= Author Hans Rosling Quotes The first is from philosopher, historian, psychologist, William James: "Pessimism leads to weakness, optimism to power." The second from the late former Chairman of the Joint Chiefs of Staff, Army General Colin Powell: "Perpetual optimism is a force multiplier." Resources https://www.theatlantic.com/newsletters/archive/2022/09/bill-melinda-gatesfoundation-goalkeepers-report-poverty/671415/ https://www.morningstar.com/articles/1103776/why-optimism-is-a-secret-

Special Test Flight Edition – The Banking System: How Do Banks Operate And What Happens When They Take On Too Much Risk – Silicon Valley Bank? ~Exclusive Captain Rob "Rubber Mallet" Eklund Where is the best cup of cappuccino in New York City, according to Rob's new friend Luciano Pavarotti?!? Actually, a friend of a friend of Pavarotti...Samir Sanbar. Previously served at the United Nations as International Communications and Media Consultant. How do banking systems work? How do they benefit the consumer and make our money safer? In exchange for leaving your money with them, the banks pay you an interest on those dollars What does fractional banking system mean? What were some banking factors that led to the subprime mortgage crisis of 2008? What did long-term government bonds have to do with the failure of Silicon Valley Bank? What if your broker-dealer (aka custodian) goes bankrupt? What happens to your investments? "Banking is a very good business. If you don't do anything dumb." ~Warren Buffett "The good bankers, like good tea, can only be appreciated when they're in hot water." ~Jafar Hussein, a Malaysian banker.

Aviation News: Age 67 retirement? - https://www.lgraham.senate.gov/public/index.cfm/2023/3/graham-senators-reintroduce-bill-to-address-pilot-shortage#:~:text=The%20legislation%3A,be%20renewed%20every%20six%20months Bill reintroduces Let Experienced Pilots Fly Act…. Pilot Incapacitation recent events, Southwest, Envoy, and others https://www.youtube.com/watch?v=hPUbr6SPcy8 Questions From The Flight Deck: How to vote proxy if you're a stock owner. DFAS – Discontinue survivor benefit plan (SBP) for military retirement? Pros/Cons Tax season lessons learned: DFAS withholding, Social Security withholding – defaults to 8%...spouse earning money – 68 cents versus 76 cents. Safe harbor – 100% of this year or 110% of last year is a safe harbor to prevent penalties. The stock market has been down – why not get 5% guaranteed T-bills. Sell bonds? Sell stocks? What are your savings goals? What if rates drop? US Dollar World Reserve Currency: https://realeconomy.rsmus.com/why-the-dollar-remains-the-worlds-reserve-currency/ "Why the dollar remains the world's reserve currency, and will stay that way"...APR. 17, 2023 BY JOSEPH BRUSUELAS We find the recent discussion around the end of the dollar dominance bereft of any linkage to the reality of international finance and understanding of the dollar's role as the anchor of the rules-based order that governs global economics. Economies like China that run surpluses need dollar-based demand from the United States to make up for their own weak consumption and high savings rates. Rather, the recent conversation is stoked by global grievances about the relative disparity of economic power and the dead end in which some economies find themselves. Pilot Money Guys Flight #55: US Dollar as World Reserve Currency Here's How Reserve Currencies Have Evolved Over 120 Years https://www.visualcapitalist.com/cp/how-reserve-currencies-evolved-over-120- years/ CDs (callable vs noncallable) When to sell I-bonds The composite rate for I bonds issued from November 2022 through April 2023 is 6.89 New rates are 4.3% composite: 3.4% Inflation component and 0.9% fixed rate. Kevin "The Professor" Gormley: https://www.youtube.com/watch?v=v1SACB6S7kQ Meat of The Mission: Get up for health and wealth... Should you own Gold? Two things: Gold as an investment – diversification? Gold as a currency in times of economic collapse. https://awealthofcommonsense.com/2015/07/a-history-of-gold-returns/ Why is gold attractive? Hot button issue... Gold standard...vs. Fiat currency – us versus them. Very political and ideological. Three Options For Owning/Investing In Gold: Physical gold in your home, safety deposit box. How could one use physical gold in an economic collapse https://atlantagoldandcoin.com/how-will-gold-silver-coins-be-used-following-a-monetary-collapse/ Gold and/or Gold Miners ETF in your portfolio. Is it a diversified? How has gold performed? What about bonds? https://awealthofcommonsense.com/2015/07/a-history-of-gold-returns/ Ben Carlson's stance: "My stance on gold has always been that I have no idea what's going to happen with it in the future. No one else does either." As of 2015...Even after the most recent crash, gold is actually up around 10% per year over the past decade. But it's unlikely many individuals actually participated in this rise unless they held physical gold. The Gold ETF (GLD) only had around $3 billion in assets in 2005. It then grew to nearly $80 billion by the peak in 2011-12, before falling back down to less than $25 billion more recently. Unfortunately, that means many of the bandwagon investors got sucked in very late to the bull market and lost a lot of money in the ensuing crash. Physical Gold in a Self-Directed IRA. Why? Can I own physical gold in my IRA? If you opt for the actual metal, certain criteria apply for it to be held in an IRA. "The precious metal coins or bars must meet IRS fineness standards and must be held by the IRA trustee instead of the IRA owner," says Moy. "The gold must be stored in an IRS-approved depository." https://www.investopedia.com/articles/personal-finance/091814/analysis-should-you-get-gold-ira.asp Tax Implications of Gold Coins...28% Physical gold (including the ETF – GLD) is tax as collectible. However, the IRS considers physical quantities of metal to be a "collectible." For collectibles, such as coins, art and bullion, the standard tax rate is 28%. As a result, owning physical gold, or owning funds that themselves own physical gold, means that you can pay a higher maximum capital gains rate of 28%. https://smartasset.com/taxes/avoid-capital-gains-tax-on-gold#:~:text=This%20is%20called%20the%20capital,a%20general%20rate%20of%2028%25 The Ascent of Money: A Financial History of the World - By Niall Ferguson

Questions from the Flight Deck: What if the US Dollar is not the dominant world currency? https://www.visualcapitalist.com/cp/how-reserve-currencies-evolved-over-120-years/ Part 1: How to know how much FDIC insurance you have? https://edie.fdic.gov/calculator.html? Should we be nervous about the banking system? There is no safer place... How much can I actually hold in my bank account, FDIC insured? See FCIC calculator. Why are banks and brokerage firms different? Banks accept deposits onto their balance sheet. When you deposit money, it becomes a liability for the bank. Brokers are middlemen. They hold your money (custodial relationship) and then allow you to buy investments. These do NOT go onto the broker's balance sheet. They take a little to "broker the sales" but do not own anything. You own the underlying investments. What would happen if Schwab went bankrupt? FDIC, SIPC. Rule 15c3-1, "Net Capital Rule" of the U.S. Securities and Exchange Commission (SEC), makes it mandatory for brokerages to maintain a minimum amount of prescribed capital in liquid form. Rule 15c3-3, "Customer Protection Rule," requires brokerage firms to keep client assets (both cash and securities) in a separate account from the firm's assets to avoid any confusion What does a broker (Schwab) do with our money versus what a bank does with our money? Bank invests and loans your money Schwab puts it in stocks that YOU own. Schwab doesn't hold them. Schwab can't do anything with your money. It's not even on their balance sheet. However, Schwab does have a banking component. A subsidiary of Charles Schwab. Schwab has several components, subsidiaries: ETFs, Mutuals Funds Custodian, Broker-Dealer Banks Who controls money at ETFs, Mutual Funds... Securities of underlying funds are not held at Schwab, Vanguard. They hire and pay a custodian to keep these securities separate... Who WAS the same – Bernie Madoff. https://international.schwab.com/account-protection Broker collapsing versus broker theft... Protected up to US$600 million. The combined total of our SIPC coverage and our "excess SIPC" coverage means Schwab provides protection up to an aggregate of US$600 million, limited to a combined return of US$150 million per customer, up to US $1.15 million of which may be in cash. This protection becomes available in the event SIPC limits are exhausted. SIPC covers shares, not $$$ amounts: For example, if an investor is holding 200 shares of ABC Inc. originally purchased through a failed stock broker, SIPC will work to replace or restore the same number of shares to the investor. However, if the stock price plummets during the time the stock broker goes bust to the time that the SIPC steps in, the SIPC will not reimburse the money the investor lost. Ron Berger: https://www.youtube.com/watch?v=wz64z1YuL0A&t=816s Part 2: https://www.businesstrialgroup.com/practice-areas/securities-litigation/oil-gas-partnerships/ Why do we go after these types of investments? Are they necessary to be successful? Do they add diversification? Private REITs Land Investments Mineral Rights Oil and Gas LPs Why do they look so attractive? 10-12% annual Yield... Phoenix Capital Group... What does Yield mean? Early bank run on Blackstone last December but it is NOT a bank. This guys says it is OK but if you wanted your money out of it- you cannot have it https://seekingalpha.com/article/4563565-the-truth-about-blackstone How do you value something? Are short sellers able to sell private securities easily. How do we know if the price is right, close to right or downright wrong. In public markets, is volatility a bug or a feature? "Fox watching the hen house" Fundrise claims that privately held outperform public markets but there are multiple issues with this kind of data: https://fundrise.com/education/why-private-markets-outperform-traditional-publicly-traded Internal rate of return helps private equity firms but NOT always clients Are losers in private equity always captured in data? survivorship bias. What counts in private investment is the quality of people, trust, and the investments? How many private firms are zombies that still show value on balance sheets When the tide goes out... you see who swimming is nakedly. ..."But I get my 8%, 9% or 10% dividend : ) " Where does the dividend come from? Wall Street moved from banks & public markets (active mutual funds) to private- why? Because that is where the story, the reputation, the glitz, can be manufactured- with out all this "nobody can beat the market stuff" That is where the money is in the roaring 20s.!

Craig Pieper Publisher & Founder of Aero Crew News Scott Rehn CEO of Aero Crew Solutions & Co-Founder of Aero Crew News Craig Pieper's Linkedin Scott Rehn's Linkedin Make sure to follow Aero Crew News on Facebook, Instagram, & Twitter Aero Crew Solutions Phone Number: 484-NEW-NEWS

Pilot News https://www.reuters.com/business/aerospace-defense/european-regulator-rules-out-single-pilot-flying-by-2030-2023-02-06/ Question From The Flight Deck: Q: Are all annuities Crap? A: Annuities are NOT investments; they are Insurance income products, and most of them are sold as something they are not - again, not investments! People that hate annuities compare them to investments - life insurance is used when people die. Annuities can help people that live too long or need mortality credits to decrease anxiety or smooth out the journey. LEFP is not licensed, nor makes commissions on annuities, but we do sometimes recommend them through third parties. Find someone who does NOT make commissions on annuities but believes that they are sometimes necessary and EVEN helpful as a part of a financial plan. 2022 was the number one year of annuities sales in history. Contingent Deferred Annuities: CDAs, Retire One - "Constance" No changes in taxation – Roth IRA, Taxable brokerage account Remain invested in Mutual Funds, ETFs Turn off anytime... A CDA acts as a sort of "risk wrapper" for your IRAs, Roth IRAs and taxable brokerage accounts, but the insurance portion is unbundled from the underlying accounts so that investments in ETFs and mutual funds may be covered. The amount of income you receive from the CDA (your coverage base) is calculated from the total of your initial investment, and will not drop below that amount, no matterwhat the markets do. In fact, your coverage base may go up, and those annual income payments can range from 3% to 6%. Keep in mind that excess withdrawals CAN impact your coverage base, however. The CDA's income payments trigger when you need them and are paid by the insurance company for the rest of your life, even after your assets are depleted. https://www.financial-planning.com/news/2022-was-the-best-annuity-sales-year-in-history https://awealthofcommonsense.com/2023/03/talk-your-book-lifetime-income/ Q: Should I own bonds? A: There are two reasons to own bonds. Decrease recovery time in your portfolio: TYPICALLY, (not 2022) bonds act as ballast. During a recession, Treasury bonds act as a flight to safety, plus Fed may lower interest rates which may cause bond prices to increase. See JPMorgan Chase Charts. It's all about the math...50% decline in your investment dollars requires a 100% increase to get back to even. $100,000, 50% loss = $50,000. 100% gain = $100,000. A 25% decline in stock prices requires $100,000, 25% loss = $75,000. 33.3% gain required to get $100,000. https://www.hughcalc.org/getback.php Then why would anyone be 100% equity??? There is actually yield, interest now. T-Bills Annuities, higher CD, Money Market higher Long-term investors are better off after bond price declines and interest rate increases from 2022 Main Topic – Tax-Efficient Giving Strategies When to use a Donor Advised Fund - https://www.morningstar.com/articles/1039795/pros-andcons-of-donor-advised-funds Pros: The major benefit of donor-advised funds is the ability to take an immediate tax deduction on the amount contributed. Donors contributing cash can take a deduction of up to 60% of adjusted gross income... Donors can also contribute a wide range of appreciated assets, including stocks, bonds, mutual funds, privately held business interests, restricted stock, and even bitcoin and other cryptocurrencies. Donors contributing securities or other assets can take a deduction of up to 30% of adjusted gross income. Cons: Donor-advised funds also come with an additional layer of annual administrative costs. Fidelity, Vanguard, and Schwab all charge a 0.6% administrative fee for accounts with balances up to $500,000. All three have tiered expense structures, so accounts with balances greater than $500,000 are subject to lower fees in percentage terms. These charges are in addition to the fees on the underlying investments (operating expenses for mutual funds and exchange-traded funds, or trading commissions for individual stocks and bonds). All these fees come out of the amount donated, making donor-advised funds less cost-efficient than donating directly to a charity. Gifting highly appreciated stock https://www.blackrock.com/us/financial-professionals/insights/donate-stock-to-charity-for-tax-savings Gift your star performers. Maximize your savings on capital gains taxes by donating your strongest-performing stocks. They may be your favorite holdings, but this is not goodbye – replenish your portfolio by purchasing the same security (or a similar exposure). Because the stock has appreciated since your original purchase, your new cost basis will be higher, which creates the potential to harvest tax losses to offset gains in future years. When do you get to deduct your giving on your tax return? https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/tax-deduction-wisdom-should-youitemize/L8Ln7K0Gp "Add up all of these taxes, but remember the IRS limits your state and local tax deduction to

How to Be a Real Estate Professional & Save on Taxes with Gina Roth (4:30) How do you recommend selling your primary residence and ensure you don't pay taxes? You have to live in it as your primary residence for two out of the trailing five years Once you complete this, it is free capital gains Married: $500,000 exclusion Single: $250,000 exclusion These can include any improvements to the property (7:15) Requirements to be a Real Estate Professional for tax purposes You must spend 750 hours/year doing some sort of real estate duties (brokerage sales counts towards this) Documentation of hours is a necessity (17:15) Real Estate & Taxes Passive income from real estate can often be offset with income from your main source of income Depreciation is your superhero in real estate! You can make your money from your main source of income, all of that income gets taxed as ordinary, and the real estate can be used as depreciation to offset some of that main source of income (21:00) Gina's Advice If someone has the ability & willingness to keep their first starter home, it can be a great tool to use as rental income in the future It can be a huge wealth builder, great for diversification, & helps with cash flow in retirement because you won't have to touch your nest egg (26:30) Multiplex They are very favorable because you have multiple tenants paying rent at the same time. If one person moves out, there is still some cash flows Less maintenance typically on a multiplex (28:15) Other Real Estate Licenses Active in Real Estate License: For people that make less than $150,000 Material Participation: Not having a rental unit, but a business (29:00) Short Term Rental Benefits A short-term rentals are anything that can qualify for anything less than 30 days of occupation You can classify any losses associated with the business as offset to your ordinary income (you must own a short-term rental, you have to be material participation, & documentation!) There are many tools today that allow you to manage short term rentals (even out of state) You have to be the one who is property manager and must document everything (40:26) Breckendrige, CO has made it very complicated by putting different zone/resort zones. So, to buy a short-term rental, you would need a very qualified agent right now Some alternatives to Breckenridge could be Keystone and Grand County (46:20) Gina's Book Recommendations/Resources Rich Dad Poor Dad by Robert T. Kiyosaki Short-Term Rental, Long-Term Wealth by Joseph Bafia The Seven Tests of Participation (Material Participation Tests: Definition, IRS Rules, Vs. Passive (investopedia.com)) You participate in the activity at least 500 hours during the year. Your participation constitutes substantially all the participation for the year by anyone, including nonowners. You participate more than 100 hours and as much or more than any other person. The activity is a "significant participation activity" — that is, you participate more than 100 hours — but you participate less than one or more other people yet your participation in all your significant participation activities for the year totals more than 500 hours. You materially participated in the activity for any five of the preceding 10 tax years. The activity is a personal service activity in which you materially participated in any three previous tax years. Regardless of the number of hours, based on all the facts and circumstances, you participate in the activity on a regular, continuous, and substantial basis.

Quote: Nelson Mandela once said: "I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear." Kim "KC" Campbell - "Fear can prevent us from achieving success or it can lead us to a greater path of growth and change if we harness it effectively." Your story: Mother and father...encouraging You developed a higher calling, higher purpose...? Air Force Academy, the first time that a father and daughter both served as cadet wing commander What values, principles about yourself, and others you admire are most valuable to you? The Flight - Bagdad What?!? A-10 got shot down the next day??? Launched on CSAR mission? Retirement August 2021... Leadership Lessons for us, our audience: Simultaneous fear and courage...you admit to fear. Leadership lessons for airline pilots now - going through tough negotiations, multiple near misses...trying times All of us can use these lessons with spouses, kids, friends, family. We all go through stuff! How did/do you balance being a wife, mother, Group CC, Entrepreneur, etc? As we get older and comfortable, having achieved things, how do we stretch ourselves??? How do I use your lessons in leadership and character with my kids? What are some of the failures you've learned the most from? Humility, courage, respect, balance. The greatest leadership attributes are courage, integrity and balance. Air Force Afterlife: What are you transitioning to in the business sector? Victory Strategies https://www.victory-strategies.com/#services-section Keynotes speaking, center for leadership and character development How do we create a culture of courage at our business? Links for show notes: @kchawg987 www.kim-kc-cambell.com Flying in the face of fear; a fighter pilot's lessons on leading with courage https://www.amazon.com/Flying-Face-Fear-Fighter-Lessons/dp/1394152353/ref=sr_1_1?crid=321E4AO1WBGRB&keywords=kc+campbell&qid=1676310099&sprefix=kc+cambell%2Caps%2C98&sr=8-1 Aiming Higher: A Journey Through Military Aviation Leadership (Military Mentorship Mastermind Aiming Higher: https://www.amazon.com/Aiming-Higher-Leadership-MentorshipMastermind/dp/B0B1CP8G5X Victory Strategies: https://www.victory-strategies.com/#services-section

Dave Goetsch shares his fascinating story about his investing experience and journey. He started as an investor that was emotionally tied to every up and down the stock market experienced. He was known as the "Chief Worrier." Through his own studies and the counsel of his financial advisor, he's more at peace with the short-term craziness of the stock markets, and continuous news headlines of impending doom we all seem to hear daily. In many ways, Dave's journey is very similar to all of ours. However, he's better at telling the story since he's a Hollywood writer! Finally, Dave's passion for helping others learn through his experience is contagious. It was truly an honor to have Dave on our podcast, and we're grateful for his desire to share his personal story so others can learn and eventually come to be a bit more comfortable with the uncertainty of the stock market. "...when you have a plan for the future, for kids and retirement...You don't know [everything] exactly...but you have a plan. The effect of that is that you can feel better now. And that's the big, big game changer, which is awesome to have less stress so that you can spend more time with your family...spend more time on the things you care about." ~Dave Goetsch Book that helped Dave Goetsch go from the "Chief Worrier" to the "Transformed Investor": The Investment Answer: Learn to Manage Your Money & Protect Your Financial Future

Airline News Delta Airline Pilot Contract Updates: https://www.cnbc.com/2022/12/03/delta-pilots-would-get-more-than-30percent-in-pay-raises-under-new-contract-deal.html The agreement includes an 18% increase on the day the contract is signed, then a 5% increase one year later and two 4% raises in each of the following years. It also includes a one-time payment of 4% of 2020 and 2021 pay each, plus 14% of 2022 pay. Being a Father: https://vitaliy.substack.com/p/being-a-father?utm_source=emarketing&utm_medium=email&utm_campaign=cid75618&utm_content=emailid143539 People have memories – markets do not. "One of the best things about markets is that they don't have memories. They don't remember what happened last week or last year. They don't even remember what happened a minute ago. Prices change based on what's happening right now and what people think will happen in the future." ~David Bood, Chairman and Founder of Dimensional. https://www.dimensional.com/us-en/insights/people-have-memories-markets-dont?utm_source=linkedin&utm_medium=organic&utm_campaign= Obsession with Recessions: https://seekingalpha.com/article/4547443-the-recession-obsession Other resources: Why can't we time the market before a recession? Flight #43 Myth vs Fact in Down Markets. What the evidence says with Apollo Lupescu, VP Dimensional Here what Kevin and Charlie say about a "Dead Cat Bounce"! https://youtu.be/oI-DqJfD6Ho

Flight #48: New 401k, IRA Limits New SECURE ACT 2.0 A Airline News: New IRA, 401k 401(a)17 and 415 Limits Secure Act 2.0 Highlights: Setting Every Community Up for Retirement Enhancement (SECURE) Act...originally passed in December 2019. December 23, 2022, passed the Consolidated Appropriations Act of 2023, an omnibus spending bill that includes the much anticipated and long-awaited retirement bill known as SECURE Act 2.0. RMD 73,75...plus reduced penalty 73-1951-1959 / 1960+ RMD 75 ▪ What does this do...Roth Conversions??? Plus 10-year rule from Secure Act 1.0 Beware of higher RMD at 73/75 - jump tax brackets??? QCD no effect – still 70 and a half years old. No Roth 401k RMD (2024) Roth style SEP and SIMPLE IRA 529 plans to Roth IRA transfers up to $35,000. Subject to annual Roth limits and 529 accounts in existence for 15 years. Student loan payments count and qualify the employee for 401k matching. I.e., you'll get matched in your 401k for student loan payments. Base matching contributions on student loan repayments. Catch up contributions: 2025 – 60-63 – catch up contribution of 10,000 or 50% more than the standard catch-up contribution that year. Catch up contributions are now linked with inflation 2024 - $145k – catch-up contributions must be made in Roth Roth basis if permitted by the plan sponsor SECURE Act 2.0 provides that all catch-up contributions to qualified retirement plans are subject to Roth tax treatment, effective for taxable years beginning after December 31, 2023, An exception is provided for employees with compensation of $145,000 or less (indexed) https://www.kitces.com/blog/secure-act-2-omnibus-2022-hr-2954-rmd-75-529-roth-rollover-increase-qcd-student-loan-match/?utm_source=social&utm_medium=linkedin&utm_campaign=tagged_author https://www.youtube.com/watch?v=i-PXuU_2wnA

Q&A: Most common client questions lately: The whole world is going into a recession! What is a recession? Schwab "dominoes" diagram...there's only a few things missing to be in a recession – Labor market weakness, EPS growth falls, NBER (Nat'l Bureau of Economic Research) recession declared. See Flight #33 for "Inverted Yield Curve – Canary in the Coal Mine." https://podcasts.apple.com/us/podcast/inverted-yield-curve-canary-in-the-coal- mine/id1557278856?i=1000564180334 So, what does this mean...mild recession. Already priced in? See DFA "...Official Announcements" graphic Why should we stay in the market? Why would we keep investing? 1st - gotta have a plan...context for why you're doing what you're doing. Flight #43 Appolo from DFA https://podcasts.apple.com/us/podcast/flight-43-with-dimensional-fund-advisors- vice/id1557278856?i=1000585072712 What if I'm near retirement? Podcast/Flight #45 Sequence of Return Risk https://podcasts.apple.com/us/podcast/flight-45-what-is-sequence-of-returns-risk- and/id1557278856?i=1000588498807 What are the positives to the current environment? No more quantitative easing. "The Fed is propping up the markets/economy" Higher future returns expected...fairly valued equities? Higher yields on cash – great for short-term savers and retirees. 4%-5% - CDs, T-Bills, Annuities Housing was getting out-of-control – would soon become unaffordable for most Americans. Two jobs for every one person is not a healthy job market. The Fed is fighting inflation! That's the real risk...unlike the Fed of the 70's. So, what do we do...as investors Stay globally diversified, don't chase trends or recent trends, performance. Bonds are back! Quality investments: Profitability, Dividends... Improve your balance sheet Prepare/Insure for deep risks... Flight #42 https://podcasts.apple.com/us/podcast/flight-42-why-is-the-fed-driving-us-into-a/id1557278856?i=1000583422605 Lessons Learned from 2022: Rob's Lesson Learned: Identify and accept what I cannot control. And realize that the only thing that I can control is how I react to the situation. When experiencing difficult times with family health it would be easy to get angry, frustrated and allow negative emotions to be destructive to yourself and those around you. Instead, make a disciplined decision (with help from trusted friends, loved ones) to have a positive attitude and make the best of a difficult situation. When going through difficult times thing about: "What does this make possible?" In Rob's situation, he was able to spend focused time with his son and get help from the doctors that may improve his son's health. Charlie's Lesson Learned: Time is the most valuable, precious resource. Become a protector and defender of your time. Time goes by so fast, take the time and be intentional about the impact you are having with your time. Take time to plan your time and how you will be using it wisely, for the benefit of you and your family. https://www.forbes.com/sites/kevinkruse/2016/07/18/successful -people-agree-this-is-their-most-valuable-asset/?sh=cf1f1aa42d78 Kevin Kruse: CEO of Leadx and author of Great Leaders Have No Rules. Rob's Lesson Learned: Treat others with respect and kindness. Even when it's not easy. It's easy to treat friends and people you like well. However, there will be many opportunities to treat people with respect and kindness that don't treat you that way. This takes intentionality and planning. You must think about how you will react when someone makes you angry. How will you react with your personal values and principles in mind. Charlie's Lesson Learned: Choosing the meaningful over the urgent. Don't let tasks drive your day and distract you from the meaningful things. https://valorieburton.com/ "Choosing the meaningful over the urgent so that our life is unhurried, yet purposeful and reflects the values and the impact we want to make, takes reflection. It takes intention. It takes planning..." Think about the analogy of filling the glass container throughout the week. Fill the container with the big rocks first. The most important things. Then the smaller rocks, sand will fill in around the larger rocks. Rob's Lesson Learned: Be present, stay on target, remain focused on the task at hand. Sometimes we get caught up on thinking of past wrongs and/or mistakes and it can negatively affect our present performance and quality of life. Be present! See Lesson Learned #1: Control what you can control. Sometimes the only thing you can control is only your reaction to difficult situations. Charlie and Rob, Final Lesson Learned: Practice Gratitude! It will improve every aspect of your life and those around you. Without practicing gratitude, other things in your life will suffer: Mental health, physical health, quality of relationships, your positive impact on those around you. By practicing gratitude, you become a person other people enjoy being around. Your positive influence grows as your gratitude, even during difficult times

Resources: https://awealthofcommonsense.com/2013/08/ignore-noise/ https://podcasts.apple.com/us/podcast/stay-wealthy-retirement- show/id1260181429?i=1000470057040 The Narrative There's a lot going on...in the past few years; Covid, Stock Market stress, impending recession, inflation, politics...crypto collapse??? Our audience is especially vulnerable to information (news) overload: Traveling; downtime pick up the phone and review news, talk about it during the 3-hour flight, TV on in the hotel room, gym, etc. Where is the balance? What is the truth? Why does this matter – Why does the news and/or events make me angry. Being disrespected or treated unfairly? Examples? Higher taxes, wealth re-distribution Fear...threatened, violated, offended? Is my preferred way of life at risk? Being interrupted when you are trying to achieve a goal Retirement??? Feeling powerless... Loss of control Can't control the short-term gyrations of the market. Uncertainty is a feeling of powerlessness... Being angry is a natural reaction. When experienced in excess, however, you might ask yourself "why am I feeling so mad?" and it can result in health problems, including depression, anxiety, high blood pressure, heart disease, and more. It's okay to ask yourself, "why am I feeling so mad?", but it's important to deal with those emotions. Example of uncertainty: All issues are about a million times more complex than we'd like to believe. We search for simplicity to help us cope and explain things. We hate uncertainty. Loss of control: https://dariusforoux.com/about/ Does Social Media Leave You Feeling Angry? That Might Be Intentional September 13, 2022 - New York Times reporter Max Fisher took a deep dive into the impact of social media in his book, "The Chaos Machine: The Inside Story of How Social Media Rewired Our Minds and Our World." He shares with us how platform leaders have prioritized profit and growth over safeguards and how the polarizing effect of social media is only speeding up. "...This is because algorithms consistently select content that evokes anger and outrage from its users to maximize engagement. And sometimes, those extreme emotions turn into extreme actions." Serenityrecovery.org Neurobiology & Anger In the moment anger feels good. It's so powerful that it overrides our rational and moral frameworks we've established because it comes from our primordial, original limbic system: the center of the brain – where our most automatic emotions like fight or flight originate. This response system controls adrenaline, heart rate, alertness, and other instincts that prepare you for battle or a quick escape. Similar to other addictions like gambling, extreme sports, or even drugs like cocaine the brain releases a dopamine reward when you're angry which clouds your judgment and can lead to terrifying consequences. Anger & the Ego Anger can often times be triggered by underlying feelings of weakness or insecurity. Anger is an easy way to feel powerful and get attention in the moment and overcome feelings of inadequacy. It also gives you a feeling of being in control of things that in reality you don't have control over. The sad irony is when anger takes over, not only do you not have control of the things making you angry, you've also lost control of yourself. The cycle continues because it damages you in the eyes of the people who you want to connect with most which just adds to your ego insecurities. So what do we do to tune out the noise and be happy? Guard your mind! "A man is but the product of his thoughts. What he thinks, he becomes." Ghandi "I will not let anyone walk through my mind with their dirty feet." What do we do? 1. Know the science. Knowing what drives your emotions Investment academic research 2. Maintain A/C control...Focus on what really matters in your life. Focus on what you can control and realize there is a lot you cannot control. 3. Be a long-term investor...in all aspects of life. 4. Prepare for the inevitable: "Chairfly" Planning Know the source and the motivation of the source of the information you're taking in... Read the financial news to take the emotion out of it. How to avoid making decisions based on the noise? From the book Decisive: How to make better choices in life and in work. Chip and Dan Heath. Normal decision process in four steps: You encounter a choice. But narrow framing makes you miss options. You analyze your options. But the confirmation bias leads you to gather self-serving information. You make a choice. But short-term emotion will often tempt you to make the wrong one. Then you live with it. But you'll often be overconfident about how the future will unfold.

Q&A: Most common client questions lately: Election Lessons Learned: "Vote with your ballot not yourlife savings." ~Dimensional founder David Booth https://my.dimensional.com/elect-to-leave-your-portfolio-alone Will the stock market do worse now that xxx party has won and the election is over? What do the numbers show? Does the stock market do better or worse when "X" party is in office, power? Lessons learned – do not anticipate or try to outguess the markets. Maintain discipline. Lots of advisors said: After the mid-terms, the markets will "pop." After Biden was elected lots of folks said markets will tank. Some things are unknowable...in the short-term. Luckily, we do not have to know. "Did anyone predict that Joe Biden would be elected president and that the US stock market would have its strongest election-week results since 1932?" What the heck is FTX and how did Sam Bankman-Friedlose $16 billion in one day? https://www.visualcapitalist.com/ftx-leaked-balance-sheet-visualized/ Founder and CEO Sam Bankman-Fried –FTX. What crypto companies went bankrupt? FTX's move marks the third crypto company to seek bankruptcy protection this year, following Voyager Digital and Celsius Network. The filing also clouds the fate of BlockFi, a crypto lender that FTX helped bail out with $400 million earlier this year. ~CBS News Boring is beautiful! TRUMPLOSE tokens –on the FTX balance sheet. Created by FTX to enable a betting market on whether Donald Trump would win or lose the 2020 presidential election. https://awealthofcommonsense.com/2022/11/boring-is-beautiful-in-investing/ "Those old stodgy blue-chip stocks in the Dow that pay dividends and have stable cash flows are crushing the innovation-led stocks that have more potential than profits in 2022. This is in stark contrast to the FOMO days of 2020 and 2021 when it felt like the only place to put your money was the most intoxicating of investments. French philosopher Blaise Pascal once wrote, "All of humanity's problems stem from man's inability to sit quietly in a room alone." The investor play on words here would be: "All portfolio problems stem from investor's inability to stick with a boring old asset allocation." Successful investing should be boring. It should be long-term in nature. It requires patience and discipline and the ability to ignore the madness of the crowds. But you can't brag about boring to your friends and co-workers. No one writes glowing profiles about normal people who diligently save and invest their hard-earned money, keep fees to a minimum and stay the course. That's not sexy. Sexy is SPACs, meme stocks, IPOs and life-changing amounts of money in a short period of time. Why wait decades to build wealth when you witnessed someone else do it overnight? "Flight #45 –Retirement Income: The Narrative Why is investing during retirement very different from investing in the accumulation phase of your life? Example: A) You are an accumulator, and you invest $12,000 January 1, 2020. You fall asleep and wake up on December 31, 2020. B) You are in retirement taking monthly income. You have $12,000 on January 1 and you are taking monthly income of $1,000 per month. Accumulators are like chickens and eggs...you're involved in producing eggs. Retirees are like pigs, and they are producing bacon. You are committed in retirement! How to avoid running out of money in retirement: Know your budget – Spending plan. Spend Conservatively. Spending flexibility. Social Security timing. Keep investing! (In equities) Reduce volatility. Buffer Assets – Avoid selling at losses. Taxes: Minimize RMDs Roth Conversions when income declines –65-70. Life expectancy – Longevity. E.g., client age 85. Sequence of return risk https://www.schwab.com/learn/story/timing-matters-understanding-sequence-returns-risk Avoid withdrawing assets in a down market. Will I have to change my retirement goals or retirement income due to the down market? Part 2 – How to mitigate the above risks...especially #6. Have a plan – Pick one or a combination of... Annuities? Annuities in general –Sales commissions! Fees... SPIA –Best, but no access to principle. Contingent Deferred Annuity –Constance from RetireOne Risk wrap: Same investments, income guarantee. Turn on –Turn off. Retirement Bucket approach? 4% Rule Target Date funds Dynamic spending, ongoing planning. Monte Carlo...MGP What's wrong with online calculators? One said I'll have $12,500 and the other said $19,500. Why does seeking advice pay off? Annual withdrawal rates can change What about underspending in retirement? Don't get to age 90 with millions left over...unless that's your goal. Spend more in the early part of retirement...the retirement smile. Mitigating the risks What if...! Higher Inflation Part-time job Reverse mortgage Long Term Care Risks From Retirement Researcher –Wade Pfau, Professor of Retirement Income at the American College.

Q&A: Most common client questions lately: Will I have to change my retirement goals or retirement income due to the down market? Short-term risk versus long-term risk, taxes, inflation, overspending Sequence of return risk... https://www.schwab.com/learn/story/timing-matters-understanding-sequence-returns-risk Worst year ever for bonds? https://www.advisorperspectives.com/articles/2022/10/17/six-good-things-to-tell-clients-about-this-horrible-market Article: "Six Good Things to Tell Clients About This Horrible Market" by Allan Roth, 10/17/2022. Four Options Plus Combo Option for Preparing for Potential Airline Disability Be ready to live on your maximum disability payout. Takes careful budgeting and cash flow management. For example: Be ready to freeze your "core" budget at FO pay. Or on one person's salary if you are a dual-income family. Create a (mega) Emergency Fund. Work to self-insure. Becoming your own insurance company! We believe the six-month emergency fund is the minimum for airline pilots. One year is even better. An emergency fund of cash or cash-like investments gives you great flexibility. It can bridge the gap until you are able to get your FAA medical back. If appropriate and cost-effective, purchase additional disability insurance. Consider how a long-term disability would affect your retirement savings. For example, if you can live on the current disability insurance your airline offers, would you also be able to save for retirement? Your retirement plan assumes annual savings into tax-advantaged retirement accounts. Become financially independent! This most likely applies to the pilots that are nearer to retirement. If they lost their FAA medical, then these folks could more easily transition into early retirement. On the other hand, this is a great goal for all pilots to shoot for as soon as possible. This step encompasses working on all the steps listed here as well as saving in your retirement accounts. Combination of 2 or more options 1-4. Additionally, we suggest exploring other skill sets that may allow for additional income away from aviation in the case of long-term disability. What do you love to do outside of flying? Have fun with it and dream a little! For example, become a financial planner! Pilots are much more marketable than they think.

Information about today's podcast: Dimensional Fund Advisors (DFA) - https://us.dimensional.com/ "The assets we(DFA)manage represent more than shares in a portfolio. That money represents the savings, sacrifice, and dreams that investors have entrusted to us. We take this responsibility seriously. Founded in 1981, Dimensional has a long history of applying academic research to practical investing. We offer a full range of equity and fixed income strategies designed to target higher expected returns." Apollo Lupescu, PhD, Vice President, Dimensional Fund Advisors: Apollo Lupescu is vice president at Dimensional Fund Advisors, one of the premier investment managers in the world, managing around $650 billion in assets. He is a nationally and internationally recognized speaker who has delivered hundreds of lectures and seminars to financial professionals and individual investors on various investment topics. Apollo is considered "secretary of explaining stuff", because he has a knack for explaining complicated issues in a clear and understandable way. Apollo has been with Dimensional in Santa Monica for over 18 years, and prior to that he taught at the University of California. Apollo also served in a variety of roles with the US Department of State, from which he formed his own consulting firm, Apollo Consulting Group. He received his PhD in economics and finance from UC Santa Barbara. Apollo also holds a BA in economics from Michigan State University, where he competed and coached water polo. Rumor has it that even to this day he is still playing, and more recently he is not only in the pool, but also learning how to surf in the ocean. Top Investor Myths... Common Questions & Lessons Learned: What does the evidence tell us about what to do in down markets? What do our innate biases tell us to do and why are they the opposite? 1. Myth -Successful advisors need to "time the market." Common Question: "Clearly, the stock market is going down and going to get worse, why not just go to cash...?" The idea that an investor wants to avoid downturns in the market is an understandable and reasonable response. The challenge in the execution. Most of the time, it turns into a bigger loss and more stress than staying invested. In summary, mistiming the market comes with punishing consequences. From our experience, when someone sells their equity positions to relieve stress, they simply replace the stress of being in the market with the stress of being out of the market and wondering when they should get back in. There is no magic signal. In other words, they exchange one stress for another. We miss the best days in the market... therefore "portfolio performance could be decimated." See JPMorgan "The Case For (Always) Staying Invested"https://www.jpmorgan.com/wealth-management/wealth-partners/insights/the-case-for-always-staying-invested#infographic-text-version-uniqId1663780633203 This chart shows the annualized performance of a $10,000 investment made between January 2002 and January 2022. A fully invested investment returned 9.4% or $60,253. When the investor missed the10 best days, the return is 5.21% or $27,604. When the investor missed the 20 best days, the return is 2.51% or $16,414. Finally, when the investor missed the 30 best days, the return is 0.32% or $10,651. An added fact is that seven of the 10 best days occurred within 15 days of the 10 worst days. 2. Myth - The Fed funds rate changes and impacts on bonds and stock returns. Common Question: "So, the Fed raises rates because the economy is strong enough to stand on its own and the stock market tanks? That doesn't make sense?" The expectations of the Fed's actions, commitment, and plan to fight inflation are very important. For example, if consumers, employers, and investors believe inflation is here to stay, then in many ways, it becomes a self-fulfilling prophecy. If we have confidence and believe the Fed is going to take strong action to fight inflation, then people's behaviors (spending patterns) will fall in line with those expectations as well. What does recent history tell us about stock market (S&P500) performance and rising interest rate environments? Rising interest rates can and will cause short-term pain in the economy and sometimes the stock market. However, in the most recent rising rate environments the stock market has been up. From January 2000 to December 2021, five out of six years of rising interest rates the market did not drop. As an investor, "...it is critical to remember that the stock market is about purchasing ownership in public companies. And the value of the ownership depends on the profits that the company expects to make. And we'll come back to this because it is a crucial concept. If you think in terms of the value of a company like Apple, Google, Facebook, you name it, Coca-Cola, etc., it is tied to the profits that they make. The question is, is the federal funds rate a primary variable that you can link directly to the prof

Q&A: Most common client questions lately: Headline of the day! (See slide...) https://www.jpmorgan.com/wealth-management/wealth-partners/insights/the-case-for-always-staying-invested#infographic-text-version-uniqId1663780633203 This chart shows the annualized performance of a $10,000 investment made between January 2002 and January 2022. A fully invested investment returned 9.4% or $60,253. When the investor missed the 10 best days, the return is 5.21% or $27,604. When the investor missed the 20 best days, the return is 2.51% or $16,414. Finally, when the investor missed the 30 best days, the return is 0.32% or $10,651. An added fact is that seven of the 10 best days occurred within 15 days of the 10 worst days. Topics we have been writing about, helping our clients with... Non-Airline Company Life Insurance and Portability... The limits of standard Disability Insurance and how to manage those limits How to stay disciplined in this battle...bad stock market What's the best path for young aspiring pilots? Cargo, Passenger, Fractional, Military? Meat of the Mission: Why is the Fed raising rates such that we could go into a recession Why is inflation so dangerous? What role does psychology play in our economy, inflation, etc.? i. 1970, 1980's... Why would we keep investing if we knew we were headed for a recession? Official dates of the Great Recession: December 2007 – June 2009 S&P 500 Market returns January 1 – December 2009 – 26.5% 2010 – S&P 500....about 15% What is Deep Risk versus Shallow Risk? We are afraid of the wrong things. Book by ...Deep Risk: How History Informs Portfolio Design (Investing for Adults) William Bernstein - William J. Bernstein is an American financial theorist and neurologist. The Four Pillars of Investing If You Can Deep Risk Deep Risk: Deep Risk are inflation, deflation, confiscation, and devastation... "any useful discussion of portfolio design of necessity incorporates their probabilities, consequences, and costs of mitigation." For example, investment discipline, taxes, inflation, disability, death, spending, income... Shallow Risk: "The Biggest Lie" Leading Edge video, news media. CNBC. Short-term market performance. You will experience shallow risk every few years... This down market does not help but it is factored in. It's part of investment, a cost, not a risk. Something to be planned for... Ongoing, below average returns would be a big concern. In other words, what did you plan for? What are your market expectations? For example, March 2020 – down 30%-ish. 35% from the high in February. Do not allow shallow risk to become deep risk... Investor discipline https://www.jpmorgan.com/wealth-management/wealth-partners/insights/the-case-for-always-staying-invested#infographic-text-version-uniqId1663780633203 This chart shows the 20-year annualized return by asset class (2001–2020). REITs returned 10%. EM equity returned 9.9%. Small cap returned 8.7%. High yield returned 8.2%. The S&P 500 returned 7.5%. A 60/40 portfolio returned 6.4%. A 40/60 portfolio returned 5.9%. DM equity returned 5%. Bonds returned 4.8%. Homes returned 3.7%. The average investor returned 2.9%. Inflation ran at 2.1%. Cash returned 1.4%. Finally, commodities returned -0.5%. Full Show Notes

15 Lessons Aviation Can Teach You About Life: 1. You are responsible. 2. Attention is life. Inattention will be at least minimally harmful if not deadly. 3. There is always a curriculum. Preparation is advised. 4. A well-lived life, like flying, requires constant adjustments. 5. Think before you speak or key the mic. .... Listen for more. Q&A: Most common client questions lately: o Headlines – Beware! ▪ See housing market headline from Redfin o Headlines are meant to make you fearful. They have about three seconds to grab your attention in the world of fast-paced news. You will often see over-the-top headlines that are not even related to the article itself. o For example, "Redfin predicts sharpest turn in housing market since 2008 crash" ▪ If you actually read the article here is an example of the content: • "...for the first time since 2021, the average home is selling for less than its list price..." • "While home prices are still higher than a year ago, with the average home now selling for just under $370,000, inflation and high interest rates are slowing down the market." Please sign up for our monthly Leading Edge-Read-Before-Fly Newsletter and Rate and Share our Podcast. 1. Please sign up for our monthly pilot newsletter: Leading Edge "Read Before Fly" • Go to Leading Edge Planning.com and sign up for our monthly pilot newsletter. Pop up or click on contact us... • Scroll to the bottom of the podcast page, click on "The Pilot Money Guys" then "Subscribe" in the upper right corner. 2. Please rate and review our podcast... • Step one – Hit "library" then "shows" then hit the thumbnail pic then, scroll down to the bottom of our podcast feed on iTunes • Step two – Hit the 5th star on the rating. • Step three: look slightly below that area and hit "Write a review" ... • Step four: type something (awesome and funny) in and hit "send." • I've learned that it knows when I've personally rated and reviewed the podcast more than a dozen times... What's the best path for young aspiring pilots? Cargo, Passenger, Fractional, Military? Common questions and points-to-ponder when deciding which path is right for you. • Do you enjoy long-haul flights that may last six to twelve hours? • How long are you comfortable being away from home? o Oftentimes, cargo pilots are gone for longer periods of time but they may also get large chunks of time off. For example, ten days on and ten days off. o Fractional carriers like NetJets typically work seven on and seven off. o Southwest Airlines' typical schedule would be three days on and four days off. • What are the differences in pay? o You'll probably make more at the cargo carries since most of the flying is wide- body, international. o You'll probably make less than average at fractionals but you may enjoy the type of flying more. For example, it is much more dynamic and less rote from day-to- day. Many people that have a passion for general aviation love the type of flying at a fractional carrier. • What type of commute should you expect? o For example, if you fly for FedEx or UPS, your bases will be very limited. So you'll probably be a commuter. o NetJets will fly you on a commercial carrier from your home to wherever your trip begins. o Either way, the panel of pilots agrees, living where you are based can greatly increase your quality of life and increase your income. Tune in for more details and differences in the types of commercial aviation.

Financial Q&A: Most common client questions lately: 1. How to get some sort of return/interest for short-term goals? 1-5 years? a. I-Bonds: Currently paying an annualized 9.62% for the next six months. https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm#:~:text=The%20composite%20rate%20for%20I,October%202022%20is%209.62%20percent. b. Treasury Bills: Payingabout 2.8%-3.4% depending on the term. https://ycharts.com/indicators/3_month_t_bill https://ycharts.com/indicators/1_year_treasury_rate c. Treasury Bonds: https://ycharts.com/indicators/2_year_treasury_rate#:~:text=Basic%20Info&text=2%20Year%20Treasury%20Rate%20is%20at%203.42%25%2C%20compared%20to%203.37,long%20term%20average%20of%203.14%25. 2. Should I stop saving and investing since the market is tanking? a. No! This is the best time to save and invest. Buy low! Stay invested, even when it's difficult because the stock market tends to recover quietly. There is no magic signal or announcement that the stock markets are doing better. Special guest Darren Ellisor: Darren Ellisor is a Captain at SouthwestAirlines with over 11,000 flying hours. He started flying for Southwest in 2008 after serving more than 10 years in the active-duty Air Force. Darren graduated from the US Air Force Academy in 1997. In the Air Force he flew multiple versions of the Boeing707, accumulating the majority of his time in the E-3 AWACS as an Instructor and Evaluator Pilot. In the E-3, he flew numerous Combat Support flights during Operation NOBLE EAGLE and during middle east deployments for Operation NORTHERN WATCH, Operation SOUTHERN WATCH, and counter-drug operations. During tours at Tinker AFB, OK and Geilenkirchen NATO Airbase, Germany, Darren worked as Squadron Chief of Standardization and Evaluation, as well as Squadron Chief of Flight Safety. He was named Pilot of the Year at Geilenkirchen in 2004. On April 17, 2018, Darren was flying with Captain Tammie Jo Shults from LaGuardia to Dallas-Love on Southwest Airlines Flight 1380. Climbing through 32,500 feet, the number one engine exploded, causing shrapnel to damage much of the left wing and a passenger window to blow out. The aircraft banked more than 41 degrees to the left and experienced extreme aircraft vibration, hydraulic malfunctions, and an explosive decompression of the cabin. Darren, who was flying the aircraft at the time, recovered from the ensuing unusual attitude and started a descent. He worked alongside Captain Shults and their flight attendants Rachel Fernheimer, Kathryn Sandoval, and Seanique Mallory to safely make an emergency landing of the crippled jet at Philadelphia International airport—saving 148 lives. One passenger was unfortunately killed in the accident. In his free time, Darren has volunteered as a Cub Scout Pack Leader and as a Little League baseball coach. Darren and his wife, Jennifer, live in League City with their four children.

The Basics of Roth Conversions 1. In General, young, lower income (e.g., new First Officer) expect a higher tax bracket in retirement...Roth can be a no-brainer. a. But there are other very important considerations that may go against this rule of thumb. 2. Important to know – Everyone, regardless of income, can contribute to an after-tax or nondeductible IRA. 3. What are my options if I only have pre-tax IRAs? a. Convert the pre-tax IRA to a Roth IRA, and you will be taxed at your marginal income tax rate. Or... b. Roll the pre-tax IRA into your 401k, then execute back door Roth the following calendar year. 4. What are my options if I have after-tax IRA contributions? Also known as "basis" in your IRA. a. Convert to Roth and pay fewer taxes than you would if all the IRA were pre-tax. b. But you must know your basis. Sometimes, that can be a challenge to figure out. 5. Roth Conversions are more advantageous when markets are down. a. You will pay less taxes on the conversion. Vanguard's Article - "A BETR approach to Roth conversions" Click here for the full article. (see below for hyperlink address) 6. Three situations in which the BETR (break-even tax rate) is lower than the current marginal tax rate: In other words, making a Roth conversion when your future tax rate will be lower than your current tax rate. a. When a conversion tax is paid from a different account. i. In this case, the longer the investment horizon, the lower the BETR. ii. How you pay the tax on the Roth conversion really matters. Paying the taxes from your cash flow or a tax-inefficient investment account is ideal. b. When the traditional IRA includes non-taxable basis. c. When the conversion of the traditional IRA opens the "back door" to future Roth contributions. 7. Future tax rates are only one consideration for Roth conversions. What are other valuable considerations? a. Flexibility in retirement; example, large purchases-house purchase, build. b. Estate planning – pass on Roth to your children – 10-year required minimum distribution RMD (Required Minimum Distributions) requirements. c. Tax diversification in retirement. "Most investors will benefit from tax diversification by holding taxable, tax-deferred, and Roth accounts" ... (also HSA (Health Savings Account)) Bonus! 8. What is the Mega-Back Door Roth? a. Some employer 401ks allow for after-tax 401k contributions. If so, you can contribute above the normal 401k contribution limits and then convert those contributions to Roth 401k. 9. What is the next best option if I cannot save in Roth 401k or do Roth conversions? a. Health Savings Account (HSA) - The only account that is completely tax-free. b. Taxable Brokerage Account. I.e. a non-IRA investment account. WARNING: Tracking Roth IRA conversions on your tax return is not easy. Many tax professionals struggle in this area. If you do not document after-tax IRA contributions and Roth conversions correctly on Form 8606 in your tax return, you will highly likely get a letter from the IRS saying you owe some taxes. Even though this situation can be rectified with proper documentation, it is never fun to get a letter from the IRS! https://institutional.vanguard.com/insights-and-research/report/a-betr-approach-to-roth-conversions.html#:~:text=The%20traditional%20wisdom%20has%20been,investor%20indiff erent%20to%20a%20conversion

In this podcast, we discuss steps to maintain a high-performance, high-energy lifestyle as we get older. More specifically, creating a life where you feel great, more fulfilled, and more joyful as well as creating a legacy with not just your wealth but your health and outlook on life for generations to come. Our audience is high-performing professionals and pilots, BUT we all go through times where we are not performing at our peak; mentally, spiritually, physically. Especially as we age... Now is a unique and stressful time for airline pilots, corporate, cargo, and commercial pilots. Most major airlines are under contract negotiations –stressful! Flights have been full, chronically late with angry passengers. Flying has not been a fun place to be in the last 2 years –post-Covid. Ron Broyles is our guest today because he is walking the walk. He is 69 and full of life, energy, joy, and fulfillment. How do we as pilots maintain the mental and emotional toughness to maintain our quality of lives, enjoy our families and feel a sense of joy and peace during these difficult airline times? Why bother with health, nutrition, positive mental attitude? We are in a race...we are meant for growth. It is as if we are in a highly competitive game or fighting for our peace of mind, focus, finances, health, and joy and we don't even know it. Every entity in our lives is fighting against us having those things, and we are not fighting back. We know this as being intentional or proactive. Marketing agencies, social media, news media are fighting for your time, money, attention –your mind and they are playing with PhD level minds and huge supplies of money. We are not equipping ourselves to win! We need to be intentional about training to win the fight. We need to take proactive, aggressive steps to live a life of purpose on purpose. Why not? Choose your "hard"...Life is hard when you eat right and exercise and choose to be joyful. Life is much harder when you simply drift along allowing life to happen to you. You will leave a legacy in every aspect of your life whether you know it or not. Your health is your wealth! Seven practical steps for maintaining physical, spiritual, and mental health: Realize you are one or two choices away each day for either building a great life or living a life of mediocrity or worse chronic unhappiness and bad health. Healthy relationships and accountability partnerships. Ask someone to help you stay on track. Similar to AA and Weight watchers. More importantly, someone you can share your feelings with –seriously! Men are especially bad at this and it's bad for your health. Get a workout instructor. See a counselor. Don't minimize your emotional health – Do not try to John Wayne through it! Be intentional about the feelings you want – Happy, joyful, peace, love, anger... Studies have even shown that unhealthy anger in its repressed state has been linked to cancer. Sigmund Freud – "unexpressed emotions will never die. They are buried alive and will come forth later in uglier ways." This is one of the most underestimated keys to our quality of life. Nutrition - Read the labels on your food and understand what you are eating. You can't outwork your bad eating habits as you get older! An attitude of gratitude leads to a healthy life! Write down three things a day Give! Give away some of your money, some of your time or both. Your perspective will change. The importance of physical activity and exercise! Links to some of Ron's Adventures: https://coronadotimes.com/news/2013/07/17/1986-flashback-thrill-junkie-ron-broyles-jumps-from-coronado-bridge-from-limo-roof-video/ https://www.youtube.com/watch?v=iaXM7WmIuQg https://www.latimes.com/archives/la-xpm-2003-oct-15-me-bike15-story.html https://www.nytimes.com/1983/03/15/us/stuntman-scales-tower.html https://www.knoxnews.com/news/local/mad-jack-fielden-turned-furniture-sales-into-stunt-work-ep-360004879-356614601.html https://newspaperarchive.com/altoona-mirror-mar-15-1983-p-24/ Books or Podcasts that we mentioned or recommend on this topic: Atomic Habits by James Clear The Power of One More, The Ultimate Guide to Happiness and Success Ed Mylett The Infinite Game by Simon Sinek Salt Sugar Fat: How the Food Giants Hooked Us Michael Moss Sickening: How Big Pharma Broke American Health Care and How We Can Repair It. John Abramson, MD, MSc Can't Hurt Me David Goggins Favorite podcasts Ed Mylett –The Ed Mylett Show Jon Gordon –Positive University Podcast

Leading Edge's own, co-founder and CFO, Kevin "The Professor" Gormley, CPA, PFS, CFP® is our special guest today. We think of a 5-year runway to take off for retirement. It can take that long to mentally prepare for the end of your career. It also may be enough time until retirement to make significant course corrections if necessary. At a minimum, this is the time to make sure you run that last Before Takeoff (retirement) checklist, and you are ready for a great retirement! A quick peek into the discussion with the Pilot Money Guys and "The Professor." Understand the difference between risk tolerance and risk capacity. You may not have the capacity for investment risk at age 60 due to your income requirements in retirement. You should have an idea, the more clarity the better, on how much you want or need to spend in retirement. You need to know if your portfolio and other sources of income can support your desired level of lifestyle spending in retirement. What is the best way to ensure you do not run out of money in retirement? One way is to use a Monte Carlo analysis. But you must understand what the results actually mean. As you head into retirement, it may be beneficial to have the required spending needs in retirement covered by guaranteed sources. This includes military pensions, social security, and possibly annuities. The good news is the annuity marketplace now offers commission-free annuities!

In this episode, the Pilot Money Guys are talking about Value investing. We describe what value investing is, and talk about lessons learned as investors in value companies. Value Investing and Lessons Learned Even though past returns are not indicative of future performance, Value investing has shown to do well during periods of higher inflation. The recent poor performance of Value investing is almost unprecedented. Therefore, making it difficult to stick with a disciplined, diversified portfolio. Do not give in to FOMO when selecting your investment strategy. The recent run-up in Growth Stocks was partly fueled by FOMO. Most of the time when investing based on your emotions instead of a disciplined strategy, investors end up buying high and selling low. There is no evidence that investors can use investment timing techniques to switch from growth to value to take advantage of higher returns. You have to stay diversified even when it feels painful to own underperforming asset classes. It is very dangerous as an investor to assume that you know things that are unknowable. For example, we do not know for certain which asset classes will outperform in the future. Investors must remain humble, be prepared to be wrong and understand that there will always be information in the news, social media, YouTube, etc. that may seem to confirm our false beliefs. When markets are volatile you may have opportunities to rebalance into the pain. For example, when international or value asset class is performing poorly, you can sell your winning asset classes and purchase assets classes that have not performed as well. This is counter-intuitive, and takes discipline but results in buying low and selling high.

In this episode of the Pilot Money Guys we sit down with Peachez, aka Micah Porter. Micah is a former Top Gun Navy fighter pilot turned Air Force fighter pilot and current UPS pilot who sheds light on what its really like in Top Gun and how he rates Tom Cruise's performance in the new movie. We hope you enjoy a break from the financial topics - this is a fun one! We'll be back next time talking Value Investing on the next episode. Thanks for listening! The Pilot Money Guys

We're calling this episode of the pilot money guys "Forever in Blue Jeans" because as the famous song goes: "Money talks But it don't sing and dance and it don't walk And long as I can have you here with me I'd much rather be forever in blue jeans" In this episode we discuss the Florida man who lands a plane with no experience, we have a Q&A segment, and we have a heart felt discussion about creating lasting and fulfilling success with finances. Thank you for listening!

In this episode of the pilot money guys, we are talking about the yield curve inversion that has been the topic of many new articles recently. If you're unfamiliar, an inverted yield curve is supposed to be the magic predictor of a looming recession. Recently the yield curve inverted, so is a recession on the horizon? Charlie and Rob dive into the yield curve topic and cover in this discussion: What is a yield curve? What if it points to a recession every time? If it was 100% reliable, would that change how we invest? Are there any actions steps that we can take now that the curve has inverted? With recession talk ramping up, inflation continuing to rise, and investments dropping rapidly, now is a good time to review your saving, investing, and retirement plans. If you are nervous about the current situation, please give us a call. We'd love to talk about your situation and how a plan will help give you peace of mind. Thank you for listening to our podcast, The Pilot Money Guys