In this solo episode of Success That Lasts, Jared Siegel discusses how families can prepare their heirs for wealth. He talks about the challenges involved in raising children in wealth, and how to combat them. “Money has the power to buy one's way out of trouble and mitigate both a lapse in judgment and offset a lack of effort,” Jared says. “When this characteristic impacts the younger generation, it insulates them from the natural consequences that we all learn from.” It’s challenging for parents to find the balance between making a child's life too easy, and overloading them with unnecessary difficulties. There’s no surefire way to prepare heirs who are empowered by wealth rather than entitled by it. One suggestion Jared makes is to personalize the wealth conversation to each specific child. “None of us had the opportunity to pick our parents, thus being born into a wealthy family is more luck than skill, [yet] some studies have found that those that inherit wealth posture as though they deserve the wealth or earned it,” Jared shares. Teaching gratitude is a good way to prevent this. There have been instances where recipients of sudden wealth who weren’t ready to receive it became resentful and thought of it as a burden they didn’t want to carry. Jared encourages wealth creators looking to leave money to their family to start small, as the wealth creators acquired their earnings gradually themselves. Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com

Success That Lasts

Preparing Heirs

In this solo episode of Success That Lasts, Jared Siegel shares a heuristic technique that eases the cognitive load of decision-making. “In 2021, we're creating 2.5 quintillion bytes of data every day; 90% of the world's data has been created in the last two years alone. That volume of data is due to double every two years… These vast amounts of data are designed to capture your attention rather than to educate you,” Jared says.  “If you're trying to evaluate decisions, don't skip past the obvious,” he adds. “What’s the starting line? What’s the finishing line? An outcome bias… is the tendency to judge a decision by its eventual outcome instead of based upon the quality of the decision at the time it was made. Results matter, but the outcome doesn't always reflect the quality of the decision. Ultimately, the decision-making process is more important over the long term.” Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com

Starting Lines & Finish Lines

In this solo episode of Success That Lasts, Jared Siegel discusses whether people should consider investing in the stock market at this point in time. “We are told that what goes up must come down, but stock prices are not dictated by those rules of gravity,” Jared says. “Seeing high should not necessarily lead to excitement nor dread about the future returns. Rather, as prices change, that tells us that markets are incorporating new information. History tells us there's no proven way to time the market.” “It's unclear what the next 5 or 10 years will bring,” he continues. “Having a great plan and sticking to it is going to be crucial by trying to time the market. Not only do you have to worry about when exactly to get out; you must also be concerned about getting back in at precisely the right moment. Being correct once is difficult but being correct both times is even more challenging.” Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com Morning Brew, August 31, 2021 Wall Street Journal, September 20, 2021 Returns Web All Time High Anxiety  **Past performance is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.**

Is Now a Bad Time to Invest?

In this solo episode of Success That Lasts, Jared Siegel discusses the recently proposed tax changes for 2022. “The proposal includes a new top ordinary income tax bracket of 39.6%. This rate would apply to a single filer with taxable income in excess of $400,000 a year or a joint filer with taxable income in excess of $450,000 a year,” Jared shares. “Another notable change to the estate code would be what appears to be a crackdown on the grantor trust planning strategies,” he adds. “It seems as though the intentionally defective grantor trust would no longer be a viable strategy; transfers between grantor and grantor trusts would be treated as a sale. Finally, the proposal includes the elimination of valuation discounts, such as no more discount for lack of marketability and minority ownership.” Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com

Proposed Tax Changes for 2022

Enjoy this favorite interview with Moira Somers from the archive discussing the power of financial literacy and the impact of wealth on our psyche and behaviors. Moira Somers is an author, coach, keynote speaker, assistant professor and wealth psychologist. She joins Jared Siegel to discuss financial literacy and the psychological impact of wealth. Here are a few highlights from their insightful conversation: As a clinical neuropsychologist by training, Moira has observed that there is a profound interface between money and well-being; those who had better relationships to and with money seemed to have much better outcomes than those who didn’t.  Though we generally consider ourselves to be rational beings, data shows that we may have biological predispositions to making irrational decisions. Moira believes in embracing the totality of the human experience: acknowledging that sometimes we get diverted by things outside our best interest, have trouble persisting in things in our best interest, and are influenced by things outside our conscious awareness. Jared explains loss aversion - a concept in behavioral finance which claims we are motivated to avoid things that have negative outcomes - and how it may shape conversations about marketing.  Jared sees equilibrium as resource allocation rather than simply balance, and learning how to manage his time creates clarity around his financial decisions. Moira says that those born into wealth often do not hear about the struggles and sacrifices that had to be made in order to acquire it. Data shows that money can bring us sustainable happiness when we invest it in people and/or causes that matter to us.  Subsequent generations enhance family businesses by being more intentional about how to use the business to hold families together. Moira has observed that third and fourth generation business owners are holistically maintaining their businesses, instead of prioritizing profit above all else. Financial literacy combines knowledge with emotional intelligence, and skills in delaying gratification. Resources Moira Somers on LinkedIn MoneyMindandMeaning.com Recommended Reads Advice That Sticks by Moira Somers Intentional Wealth by Courtney Pullen The Coddling of the American Mind by Greg Lukianoff and Jonathan Haidt When Helping Hurts by Steve Corbett and Brian Fikkert Raising Financially Fit Kids by Joline Godfrey The 3 Big Questions for a Frantic Family by Patrick Lencioni Essentialism by Greg McKeown

[Replay] Financial Psychology with Moira Somers

In this solo episode of Success That Lasts, Jared Siegel discusses what defines success. Purpose must be deliberately conceived, chosen, and then pursued, according to Jared. Success is subjective to everyone, and we must each choose what it means to us. If we allow others to define our success, we could spend our whole lives chasing after someone else’s definition.  Defining success by an outcome, something out of your control, is more than likely to leave you at the mercy of luck, Jared says. It will never be up to you whether you succeed or not. “The wise man looks upon the purpose of all actions, not their consequences,” he quotes. “Beginnings are in our power, but Fortune judges the outcome, and I do not grant her verdict upon me.” Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com

Success That Lasts, and What That Entails

In this solo episode of Success That Lasts, Jared Siegel answers questions about investing outside the US, stock market returns, and stock market performance after rising interest rates. Many investors want to know why they should invest outside the US. “Don't put all of your eggs into one basket,” Jared warns. “If you wouldn't make a concentrated investment in one single stock, why would you limit your investment opportunities to just one country?... If you limit the geographic exposure of your [stock] portfolio, you're limiting your opportunity set, which may increase your risk and decrease the benefits of diversification.” The US stock market has returned 10% a year on average, but the road to the 10% can be incredibly bumpy. Returns in any particular year have ranged from as high as 54% to as low as -43%. “Many believe a rise in interest rates is a reflection of positive economic expectations from investors, while others believe it's more driven by inflation concerns or expectations,” Jared shares. “In reality, it's more likely a combination of all the available information.” Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com The Randomness of Global Stock Returns 

Non US Investments? Average Returns? Rising Rates and Stocks?

In this solo episode of Success That Lasts, Jared Siegel talks about the misconceptions and false expectations people have about economics. “As a wealth advisor, I’ve observed that the most persuasive evidence is whatever you want to be true,” Jared shares. “It's easy to seek out information that only confirms pre-existing beliefs; the incentives for being right when investing are so big that it's hard to think clearly about the decision without getting distracted by the potential rewards.” The people lauded as expert forecasters are actually no different from the average person, according to Jared. Forecasters, more often than not, aren’t even held accountable for their predictions, which are often vague and lack specific timelines. Luck is being passed off as a skill. Data shows that between 1992 and 2014, there were 153 recessions, of which economists only predicted 3%. “What if economists are more like rearview mirrors helping us make sense of economic data once it's behind us?” Jared questions.  “People who want different things out of the same asset create reasonable differences and opinions that can be misinterpreted as disagreements,” Jared remarks. “Different timelines and different objectives should influence how you think about your wealth.” Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com Michael Burry Predicts an Imminent Stock Market Crash The Psychology of Money: Timeless lessons on wealth, greed, and happiness by Morgan Housel Superforecasting: The Art and Science of Prediction by Phillip Tetlock Thinking, Fast and Slow by Daniel Kahneman 1992 Berkshire Hathaway Chairman Letter

Economic Mirage

Dick Clark is CEO at The Portland Clinic, the oldest physician-owned, multi-specialty clinic in the Portland area. The Portland Clinic has around 500 employees and has been operational for over 100 years. Dick joins Jared Siegel today to share his insights on communication, mentorship and leadership as a lifelong learner and avid reader with 40 years of work experience. “I think as business leaders we understand that communication is really a two-way street, and it starts with listening before talking,” Dick remarks. “In any conversation, you should listen before you talk and gain a perspective of where that person is coming from, and then when you do talk, you have to be honest and straightforward.” Eye contact makes for more authentic communication, according to Dick. You can also pick up on what a person is or isn’t saying by their tone of voice and mood.  The current pandemic has fatigued the average person, Dick says, which is influencing how we communicate with each other. He advises, “I think we have to judge where a person is at today. [We have to ask ourselves] ‘are they able to have this conversation now, or do they need to be doing something else?’” Jared asks Dick what people should consider when looking for a mentor. “I think you should seek people who are willing to tell you the truth and say ‘that is not a good idea,’” he replies. “I think you should seek out people who are going to give you a perspective opinion and not just the answer that you want.” The best mentors have the most experience. They can offer advice based on that experience; they can share with you what helped them succeed, and they can tell you about their failures, so you learn from their mistakes. They are good listeners and provide excellent encouragement. Jared asks Dick what changes the Portland Health clinic may need to embrace over the next 3-5 years. “Due to the emergency of COVID-19, we have embraced telehealth… It can't do everything, but it definitely has a role for the future, and a link to that is the immediacy of people that do their own research into their own health care. You need to have a balance between what you can research on your own and what you can trust a doctor to provide,” he responds. Resources Dick Clark on LinkedIn

Unpacking Communication, Mentorship and Leadership with Dick Clark

In this episode of Success That Lasts, Jared Siegel is answering questions that come up again and again amongst Delap clients. Find out whether or not you should focus your portfolio on dividend-paying stocks, and how to really think about the implications of tax policy changes on your portfolio. Q1: Is focusing your investments solely on dividend-paying stocks a reliable investment strategy? [01:15] Common misconceptions lead many investors to prioritize dividend payments at the expense of diversification, flexibility, and total investment return. Dividend payments aren’t guaranteed - in 2009, 50% of dividend-paying companies either eliminated or reduced their dividend payments - for investors looking to earn an income from their stocks, they should focus on their total return, not just dividends. Q2: What impact would a proposed tax hike have on the stock market?  [06:05] As part of the Biden Tax Proposal, various spending programs were included, of which some will be paid from an increase in taxes. While tax changes, specifically hikes, are always a source of angst, investors should be careful to extrapolate the impacts of tax policy on their portfolio.  Get in touch with your team member at Delap to talk about your personal mix of investment products, and how tax hikes might impact your own portfolio. Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com

Dividends and Tax Policy Changes - What You Need to Know to Protect Your Portfolio

In this solo episode of Success That Lasts, Jared Siegel talks about qualitative capital, and how we can combat the three-generation cycle of families’ failure to prosper. “Family businesses are among the world's most enduring and ubiquitous economic and social institutions,” Jared comments. “Through the foundation of social relationships and communities, successful family enterprises are incredible engines for generating wealth and expressing the owners’ values about business and the community.” Successful families that have been able to manage wealth across three generations for over 100 years demonstrate the following six qualities:  shared values and core purpose;  relational resilience;  long-term business resiliency,  growth and development;  education to the next generation about personal freedom and family responsibility, stewardship and values;  commitment to the community beyond the family. Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com The Family Balance Sheet 

Qualitative Capital & Resilient Families

In this solo episode of Success That Lasts, Jared Siegel explores the paradox of choice, and how money fits into it. The real goal of life should be about flourishing and independence, Jared says. Independence doesn't mean that you'll stop working; it means you only do the work that you like, with the people that you like, at the times you want, for as long as you want. At the same time, flourishing can be defined as a state in which all aspects of life are good, a state of complete and utter well-being. We all want wealth and more options. However, successfully navigating the abundance of choices and options created by more wealth while juggling the complexities and stress of wealth requires a certain skill set. “Isn't it ironic that within the biggest economy in the world, the wealthiest country in the history of the world with more choices than ever, we're still not happy? More money and more choices alone doesn't actually create more flourishing,” Jared shares. “With so many choices, people are more likely to experience paralysis than liberation.” When we really have clarity of purpose, it can lead to success; when we have success, it can lead to more options and more opportunities; when we have increased options and opportunities, however, it can dilute our focus, our efforts, and increase our overall stress. Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com The Paradox of Choice: Why More Is Less  Barry Schwartz: The paradox of choice | TED Talk

When is More Actually Less?

Earl Pierce is the newly appointed CEO of Delap LLP. He has worked at Delap for 15 years. He joins Jared Siegel to talk about his professional journey, mentorship, and the power of financial literacy. Here are a few highlights from their conversation: Being surrounded by a team of energetic leaders has made his transition into the position of CEO much easier, Earl says. It would have been more challenging to take on the responsibility without their comforting support. Working in public accounting afforded Earl the opportunity to coach others; it brought him satisfaction to help people gain experience and develop the necessary skills to pursue their dreams and excel. Jared shares that Earl was involved in his interview for Delap. He commends the company on its commitment to living its mission statement. Delap prioritizes their employees’ goals and aspirations over the organization’s objectives, so that if an employee wants to move on, Delap will assist them in every way possible. People consider money as a metric to measure success because it is often correlated with a level of professional achievement. Other important investments, such as interpersonal relationships with friends and family, are not as tangible or as easily gathered as money, so they are harder to measure and easier to forget. Teenagers can be debilitated if they do not have perspective about the necessities for living. Earl speaks about his experiences mentoring adolescents about financial literacy. Earl’s “favorite mistake” was when he decided he wasn’t good enough to continue attending university, because it led him to the desire to improve himself and build relationships to help that goal. A failure is temporary, Earl says.  The first step to combating team dysfunction is to be open, vulnerable, and build trust. Resources Earl Pierce on LinkedIn DelapCPA.com

[Replay] Mentorship and The Power of Financial Literacy with Earl Pierce

In this solo episode of Success That Lasts, Jared Siegel reminds listeners of the value of living in the present. It’s easy to assume that acquiring more money will create more choices, power, freedom, security and experiences. In many ways it does, but all these things don’t automatically create flourishing. Flourishing isn’t an accident; it occurs when life is lived intentionally and on purpose.  In order to flourish, you must do well across five domains: happiness and life satisfaction, physical and mental health, meaning and purpose, character and virtue, and finally close social relationships.  Wealth is not limited to finances. Other aspects of wealth include spiritual capital, relational capital, and social and community capital. Resources Jared Siegel on LinkedIn | Twitter DelapCPA.com

Flourishing in the Present Tense

Dr. Brian Liebreich is a psychiatrist and psychosomatic doctor at Providence Health & Services. He is a speaker and the author of Waking Up: Stress Management Principles for Effective Living. He joins Jared Siegel to explore the scientific relationship between our emotional health and physical health.  According to Jared, people often think that more professional success creates more financial success, and that more financial success creates flexibility and flourishing. However, that is not always the case.  We all know the age-old adage ‘money can’t buy happiness.’ “There is no evidence saying that people who earn or have a lot of money are happier than those who don’t above the poverty level,” Brian claims.  “People don’t change until the pain of their circumstances exceeds the pain of the change,” Jared says. He asks Brian how we can create the necessary pain to trigger change in our lives before we have a real crisis. “A goal is inherently disruptive, as it is a planned conflict with the status quo,” Brian replies. He talks about the four S’s for developing goals. When people are fully engaged in what they are doing, there is a sense of satisfaction, regardless of how mundane the activity is.  “A lot of people have limiting beliefs [about themselves and their abilities] that keep them from doing things they like,” Briam remarks. “I think it’s important for people to write down what they want out of their life. I’ve had many people do this and most of the time, it’s achievable… it’s a self-worth issue.” You have to be comfortable with being uncomfortable. In becoming your best self, you have to be willing to be vulnerable. “Being comfortable with my limitations, strengths, not shying away from opportunities in fear of messing up… that’s what makes life exciting and meaningful to me,” Brian shares. Resources Dr. Brian Liebreich on LinkedIn Waking Up: Stress Management Principles for Effective Living

Waking Up - Principles for Effective Living with Dr. Brian Liebreich

Success doesn’t always feel like success, and when it looks like you’ve ‘made it’ to the rest of the world, you can be left feeling like there’s still so much to do – but without a clear direction or plan. On the Success that Lasts podcast, hosted by Jared Siegel, we're going behind the scenes with business owners, real estate investors, and industry consultants to deconstruct the complicated topic of success. We'll be exploring questions, strategies and experiences that help create clarity and confidence surrounding your financial decisions.

hubhopper

Success That Lasts

hubhopper