In this episode of Wealthyist podcast, host Brandon Lehman, director of Annex Private Client, discusses estate planning with a focus on inherited gold and jewelry. He is joined by Charlie Dixon, president of Schwanke Cash and Jewelers. Key points include:

Rising Gold Prices: With gold at $3,400 per ounce (up over $1,000 from last year), estates with gold jewelry or items are increasingly valuable, prompting heirs to consider their options.

Estate Planning Challenges: Inheriting valuable items like gold, watches, or jewelry requires tracking for estate planning, unlike less valuable items that are simply passed down.

Options for Inherited Jewelry:
Melting Gold: If the jewelry lacks sentimental value or isn't wearable, it can be melted for liquidity, especially with high gold prices.

Repurposing: High-quality gemstones (e.g., diamonds, rubies) can be reset into modern designs, preserving sentimental value while creating wearable pieces.

Appraisals: Schwanke Cash and Jewelers appraises inherited items to determine value, helping families decide what to keep, repurpose, or sell.

Thoughtful Process: Dixon emphasizes a strategic approach, encouraging clients to consider sentimental and practical factors rather than immediately melting down inherited gold.

Impact of High Gold Prices: While not aggressively advertising gold-buying services, Dixon notes that high prices may encourage people to liquidate gold from estates. However, it hasn't significantly affected their custom jewelry business, though they may use platinum (cheaper and scarcer) as an alternative.

Technology in Jewelry Design: Modern CAD (computer-aided design) streamlines jewelry creation, allowing faster production of custom pieces while maintaining artistic quality through hand-finishing.

Durability: Platinum is denser and heavier than gold, but both are soft. Eighteen-karat gold or platinum is preferred for jewelry durability over 24-karat gold, which is too soft.

Schwanke’s Role: As a 125-year-old, family-owned jeweler in Milwaukee, they offer in-house appraisals, design, and goldsmith services, assisting with the largest generational wealth transfer by helping families manage inherited jewelry.

The episode highlights the intersection of estate planning and jewelry, emphasizing thoughtful decision-making and modern technology in handling valuable inheritances.

In this episode of "Wealthyist," host Brian Lamborn, Senior Wealth Strategist at Annex Wealth Management, continues his discussion with Ryan Klund from the National Christian Foundation (NCF) about charitable giving, focusing on donor-advised funds (DAFs) and their role in wealth planning.
The conversation contrasts DAFs with private foundations, particularly for successful business owners who value control. Ryan explains that private foundations offer significant control but come with administrative burdens and IRS rules, sometimes becoming overwhelming for heirs after the founder’s passing, leading some to roll assets into DAFs for simplicity. DAFs, as public charities, allow donors to direct grants while relinquishing legal ownership to NCF, balancing control with tax benefits.

Ryan highlights that many NCF clients, rooted in Christian values, view themselves as stewards of wealth, which tempers their need for absolute control. Beyond DAFs, NCF offers tools like complex asset giving (e.g., real estate, business interests) and impact investing, where charitable capital is invested in for-profit companies aligned with NCF’s mission, with returns recycled into the DAF for further granting. For those new to philanthropy, Ryan suggests starting by identifying passions and getting involved, noting that DAFs help organize giving—streamlining tax receipts for donors supporting multiple nonprofits (averaging 12–15 annually).

The discussion emphasizes generational wealth transfer, with DAFs serving as a tool to teach children about giving. Examples include grandparents involving grandkids in choosing charities or parents making heirs equal participants in DAF decisions to instill values. Ryan also underscores DAFs in estate planning, offering flexibility to adjust beneficiaries (e.g., updating charities without legal revisions) and reduce estate taxes by excluding charitable gifts.
Creative strategies include naming a DAF as an “additional child” to split inheritances with charity or setting up post-death grants to sustain giving for years. The episode wraps up with Ryan stressing the importance of modeling generosity to leave a legacy of values, not just wealth, and Brian thanking him for the insights. The podcast notes its content is educational, not formal advice, urging listeners to consult professionals.

In this episode of "Wealthyist," host Brian Lamborne interviews Ryan Klund from the National Christian Foundation (NCF). The two met at an Exit Planning Institute event and discovered overlapping interests between Annex Wealth Management, where Brian works, and NCF. Ryan introduces NCF as the largest Christian donor-advised fund, designed to assist Christians serious about generosity with creative giving solutions, though it also serves some non-Christian clients. He describes a donor-advised fund as a hybrid between a charitable checking account and a cost-effective alternative to a private foundation, likening it to a "container ship" where families can manage charitable giving efficiently.

Ryan explains that NCF focuses on Christian values, offering discernment based on biblical principles, such as avoiding grants to organizations whose missions conflict with the Bible, though 99.9% of grant requests are approved. This appeals to clients—Christian or otherwise—who want to avoid supporting certain causes (e.g., tobacco or firearms) while pursuing philanthropy. The discussion touches on why wealthy individuals should consider generosity, with Ryan citing biblical motivations (e.g., John 3:16) and the broader desire to leave a lasting legacy beyond material wealth, a theme historically seen in families like the Rockefellers.

The podcast also explores advanced giving strategies, such as donating a percentage of a business to a donor-advised fund before a sale to maximize tax benefits and create a charitable cash flow. Ryan notes this is growing in popularity, especially as the "great wealth transfer" from boomers to millennials looms, with business ownership being a key asset class in transition. NCF facilitates complex gifts like real estate or closely held business interests, supported by a team of lawyers, offering donors flexibility and control over future distributions—unlike direct gifts to charities.

The episode concludes with a teaser for a follow-up discussion, emphasizing tax-efficient strategies like front-loading multiple years of giving into a donor-advised fund. The podcast aims to educate listeners on wealth strategies, blending financial planning with philanthropy, while noting that the content is for informational purposes and not formal advice.

This episode of Wealthyist, hosted by Brandon Lehman of Annex Wealth Management,is based on his recent observations from eight weeks of work-related travel.

Central Question: "What’s Next After Retirement?"

1. • Lehman notes a recurring question from successful executives nearing retirement: “What do I do next?” Many have thrived in corporate life, amassed wealth, and are ready to leave the 9-to-5, but they still want to work in some capacity.
   • A common follow-up is whether to follow a friend’s lead into consulting. Lehman suggests “yes” if they want to keep working, as consulting offers flexibility (e.g., walking away when desired) and tax advantages (e.g., 1099 income, solo 401(k)s, write-offs for business expenses like cars or travel). He finds these planning discussions “a blast” as they open up creative tax strategies unavailable with W-2 income.
2. Observation 1: Trend of Registering Vehicles in Montana
   • Lehman observes wealthy individuals increasingly registering high-end cars (e.g., Porsches, Bugattis) and private planes in Montana, despite living far from the state. Reasons include:
     • Privacy: Montana LLCs hide ownership details.
     • Tax Benefits: No sales tax, lower registration fees, no use or property tax for planes, and no emissions testing (e.g., for diesel trucks).
   • He doesn’t condone this but reports it as a trend, noting some states are cracking down on it as a form of tax evasion.
3. Observation 2: Spring Cleaning and Document Retention
   • With tax season wrapping up, Lehman discusses document management:
     • IRS recommends keeping tax returns for 3 years (6 years if income is underreported by 25%, 7 years for bad debt/losses, indefinitely for fraud or non-filing).
     • He scans and encrypts his records digitally, suggesting listeners do the same to go paperless.
     • Post-2011 brokerage statements can be shredded since firms like Schwab retain digital copies.
   • For shredding, he advises using secure services with locked bins, chain-of-custody tracking, and cross-cut/micro-cut shredders (not strip-cut).

The podcast "Wealthyist," hosted by Brandon Lehman, Director of Annex Private Client, addresses the common question posed at mergers and acquisitions conferences: "How do I even get started?" with regard to transitioning out of a business while ensuring a prosperous life post-exit. Lehman explores various exit strategies beyond the humorous option of death, such as selling to the next generation, employees, an outside party, a competitor, or pursuing a private equity route. He emphasizes the importance of starting succession planning early—even if the business is only a few years old—to build value independent of the owner’s direct involvement, which enhances its marketability.

Lehman highlights that many next-generation family members are uninterested in taking over, prompting owners to consider alternatives like competitors, business brokers, or employee stock option plans (ESOPs). He stresses the necessity of assembling a team of expert advisors—attorneys, CPAs, and wealth management firms—to navigate the legal, financial, and personal aspects of the transition. While hiring such a team involves upfront costs, Lehman argues it’s an investment that pays off by maximizing the business’s sale value and ensuring a smooth exit.

The podcast also delves into personal financial planning, urging owners to assess their true lifestyle expenses (including "owner’s privilege" perks like gas or dinners often covered by the business) to determine the sale price needed to sustain their desired post-exit lifestyle. Lehman touches on additional considerations like philanthropy, tax implications, and the looming changes in estate tax laws set to expire in December 2025, which could halve current exemptions and necessitate proactive planning.

Succession planning, he notes, hinges on building a reliable team—whether family or outsiders—to preserve the business’s legacy and value. Lehman encourages owners to leverage existing trusted advisors, peer groups, or industry contacts to kickstart the process. He advises beginning at least five years in advance to allow time for preparation, underscoring that the opportunity to sell could arise unexpectedly. The episode concludes with a call to action: start planning immediately with the right advisors to ensure decades of hard work pay off.

In this episode of "Wealthyist", hosted by Brandon Lehman, Director of Annex Private Client at Annex Wealth Management, the focus is on the importance of diversification for business owners. Lehman emphasizes that many business owners invest all their time, energy, and resources into building their businesses, often neglecting to diversify their assets. This lack of diversification can leave them vulnerable to various risks, such as economic downturns, regulatory changes, or shifts in market conditions, which could render their business worthless or unsellable.

Key points from the podcast include:

1. Risk of Non-Diversification: Business owners who pour everything into their business without diversifying may find themselves with nothing to fall back on if the business fails or cannot be sold. Lehman highlights the importance of understanding that even a successful business may not have a high resale value.
2. Importance of Diversification: Diversifying outside the business provides flexibility, options, and risk mitigation. This involves investing in assets uncorrelated to the business, such as avoiding investments in the same industry or market as the business.
3. Practical Steps for Diversification:
   • Cash Flow Management: Using excess cash flow (e.g., from a $600,000 net income) to invest in diverse assets like money markets, treasuries, brokerage accounts, or retirement plans.
   • Retirement Accounts: Leveraging tax-advantaged options like 401(k)s, SEP IRAs, or solo 401(k)s to save for the future while reducing current tax liability.
   • Portfolio Diversification: Ensuring investments are not concentrated in the same sector as the business to avoid compounded risk.
   • Real Estate and Alternative Investments: Owning property through a separate LLC or investing in unrelated businesses to create additional income streams, while understanding the associated risks and illiquidity.
4. Tax and Long-Term Planning: Diversification enables efficient tax strategies, such as harvesting losses to offset gains or setting up structures like S-Corps to optimize tax outcomes.
5. Liquidity and Illiquidity Risks: Businesses are often illiquid assets, taking years to sell. Lehman advises building liquidity through diversified investments to prepare for retirement or unexpected events, reducing reliance on a business sale.
6. Post-Business Life: Diversification ensures that when a business ends—whether sold or closed—owners have financial security and can focus on personal goals and new ventures.

Lehman stresses integrating business planning with personal finance, tax, and estate planning to build a robust financial future. He cautions that external events (e.g., the 2008 financial crisis) can unpredictably impact a business, making diversification essential. The episode concludes with an invitation for listener feedback and a reminder that the content is for educational purposes, not specific investment advice, encouraging consultation with professionals.

This podcast underscores the message that while passion and hard work are critical to building a business, diversification is equally vital to protect and sustain wealth over the long term.

In this episode of "Wealthyist," Liam McKinney, Wealth Strategist at Annex Wealth Management, featuring Brian Jacobson, the Chief Economist at Annex Wealth Management. The episode focuses on private equity, its appeal to wealthy investors, and its role in portfolio diversification.

The podcast begins by highlighting the growth of private equity, noting that in 2024, U.S. private equity deal value rose 19.3% from the previous year to $838.5 billion. Private equity is defined as investing in companies not traded on public exchanges, contrasting with public equity like stocks on the NYSE or NASDAQ. It encompasses a range of investments, from venture capital for startups to ownership stakes in established businesses, with the goal of creating value through transformation—either by improving efficiency, scaling operations, or preparing a company for sale to a strategic buyer.

The discussion explains how private equity differs from public markets, where companies often rely on retained earnings or debt for growth. Private equity provides capital to businesses, sometimes with investors taking a passive role and other times exerting control to drive change. Two common investment vehicles are discussed: "drawdown funds," where investors commit capital that’s deployed as opportunities arise, and "perpetual strategies," which offer a continuous pipeline of investments and more liquidity options (e.g., quarterly redemptions). Drawdown funds are riskier due to their smaller scope and longer lockup periods, while perpetual funds provide quicker capital deployment and potential exits.

Private equity appeals to wealthy investors due to its potential for higher returns and diversification. With fewer public companies (down from 8,000 in 2000 to 4,500 today) and an estimated 40,000 private firms suitable for investment, it offers a broader opportunity set. However, it comes with risks, notably illiquidity—investors must commit to long-term holdings (often around seven years)—and the use of leverage, which can amplify both gains and losses. Leverage can occur at the company level or through private credit used by funds to finance acquisitions, increasing the range of potential outcomes.

The podcast addresses societal impacts, noting that while private equity can get a bad reputation for cost-cutting (e.g., layoffs), many firms focus on long-term growth by integrating companies into broader ecosystems. Unlike public companies driven by quarterly earnings, private equity’s longer horizon allows for strategic projects that may not yield immediate results but offer significant value over time.

Risks in the private equity space include overpaying for deals, which could hurt returns if exits underperform, though concerns about a "bubble" have been overstated for years without materializing. The key for investors is due diligence—choosing reputable firms—and ensuring private equity fits their risk tolerance and liquidity needs. As a guideline, it might constitute 10% of a portfolio, though this varies by individual circumstances.

The episode concludes by emphasizing that private equity isn’t for everyone but can complement a diversified portfolio if approached thoughtfully. Annex Wealth Management acts as a fiduciary, aligning with clients’ interests rather than earning fees from private equity firms, and stresses the importance of understanding what you own, why, and at what cost.

This summary captures the essence of the discussion, blending educational insights with practical considerations for wealthy investors exploring private equity.