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MAY/JUNE 2023
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Join Me for a Summer of Learning! AND EXPERT INSIGHT ON ESTATE PLANNING
The famous physicist Albert Einstein never stopped learning. You might think that after coming up with the equation E = mc 2 , he would put his feet up and retire, but he never did! Instead, he continued to read, think, discover, and push himself. He was still publishing papers about unified field theory at age 71. Impressive, right? Einstein famously said, “Once you stop learning, you start dying,” and I could not agree more. Here at Eagle & Fein, we are on a constant quest to learn and help our clients, friends, and colleagues do the same. Our goal is to inspire people to plan! Learning and educating others is a key for achieving our goal. This winter, I attended the ESOP Association 2023 Indiana Chapter Spring Conference and presented on the topic “What’s Going on With Your 12/31/22 ESOP Valuation?” It was wonderful presenting with two of my esteemed colleagues, Andy Manchir and Eric Dollin. We explained the internal and external factors that influence employee stock ownership plans (ESOPs) valuations, the importance of management projections, professional vs. internal trustees, and more. (If you’re a business owner new to ESOPs, turn to Page 2 for additional insight.) After the ESOP conference, our team is staying busy working on our Eagle Wealth Planning Institute Workshops. The Eagle Wealth Planning Institute hosts a series of events offered by me and my attorney colleagues at the firm. The mission
of the Institute is to bring together a varied and well-rounded group of professionals by providing a unique and dynamic learning experience focusing on the definition of proper planning. The Institute’s goal is to provide the tools to help take a select group of attorneys, financial advisors, and accountants’ practices to the next level. On April 4, we covered the topic “How and Why to Engage Your Clients in the Estate Planning Process.” That webinar is still upcoming as I write, but it will probably be over when this newsletter reaches your mailbox. Hopefully, you joined us! If not, you can still register for our upcoming workshops.
On May 19, we will be presenting a Reader’s Digest version of “Linking Your Client’s Estate Plan With Their Beneficiary Designations” at the Financial Planning Association (FPA) of Greater Indiana’s Quarterly Meeting. We are also honored to be the featured presenter during the Inspire Your Clients to Plan Professional Matters Series hosted by the Johnson County Community Foundation and Aspire Economic Development + Chamber Alliance. Our topics will include: Business Succession Planning on Thursday, June 15, and Charitable Planning on Thursday, Nov. 16. These events and workshops help our firm learn and grow — and they can do the same for you. All you need to do is sign up. Remember, Benjamin Franklin once said, “For the best return on your money, pour your purse onto your head.” The power of our minds is perhaps the greatest gift we have been given! – Brian Eagle
Upcoming Eagle Wealth Planning Institute Events You can join us in-person or via Zoom!
Estate Planning Fundamentals •
“Uses of Life Insurance in Estate & Business Planning” on Tuesday, June 6 “Linking Your Client’s Estate Plan With Their Beneficiary Designations” on Tuesday, Aug. 1 “Helping Your Clients Plan for Their Disability” on Tuesday, Oct. 3
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Business Succession Planning •
“Strategies to Sell to Outsiders” on Tuesday, July 11
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“The Legacy Plan” on Tuesday, September 12
“ESOPs” on Tuesday, November 7
To register, visit EagleWPI.com and reach out to Kendra ( kendra@eaglewpi.com ).
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THE BEST WAY TO CELEBRATE MYSTERY MONTH Host a Murder Mystery Dinner!
friends takes on the persona of a character in the story, and when one of them is “murdered,” you compete to uncover who dunnit. Step 1: Pick your kit. Planning a murder mystery dinner from scratch would take the ingenuity of Sir Arthur Conan Doyle. Luckily, you have several ready-made mysteries to choose from! You can find boxes from Masters of Mystery and My Mystery Party at your local board game store, but you can find many options available online, too. Night of Mystery (NightOfMystery.com), for example, sells both in-person and virtual kits with themes ranging from ‘80s prom to Christmas homicide. If your friends and family don’t like the idea of acting and dressing up, that’s okay — you can still solve a mystery over dinner! Look into kits available through Unsolved Case Files
(UnsolvedCaseFiles.com) or Hunt A Killer (Shop. HuntAKiller.com), which involve collaborative mystery-solving without the character work. Step 2: Curate your guest list. Most murder mystery dinners require at least four people, while some include characters for six, eight, or more! Check the number of players on your kit and invite your most creative, analytical, theatrical, and mystery-loving friends. Step 3: Decorate and plan the menu. If you choose a themed murder mystery, level up your event with a matching menu and decor! For games taking place in England, whip up a shepherd’s pie and make a cardboard cutout of Big Ben. For Havana Nights, plan a build-your- own Cubano bar and throw on an Afro-Cuban playlist. You can be as over-the-top as you like. Remember, it’s Mystery Month!
Did you know
May is Mystery Month? There are dozens of ways to celebrate this enigmatic occasion,
from playing Clue to rewatching “Glass Onion” — but why not bring those experiences to life and host your own murder mystery dinner at home? Thanks to a plethora of kits on the market, doing so is easier than ever! What is a murder mystery dinner? A murder mystery dinner is essentially a real-life game of Clue. You invite friends over for dinner and turn your home into the set of “Knives Out” — without the blood, of course. Each of your
This Strategy Could Save Your Family Business!
THE SMART WAY TO USE AN ESOP
If you own a business and want to pass it on to your kids, grandkids, or other family members one day, you should consider implementing an employee stock ownership plan (ESOP) as soon as possible. Not only will this qualified employee benefit plan save your family thousands (or even millions!) of dollars in capital gains taxes, gift taxes, and estate taxes when you pass away, but it will also secure your legacy and potentially save your business from falling apart. Is an ESOP right for you? ESOPs work best for businesses with 20 or more employees and at least $1 million in earnings before interest, taxes, depreciation, and amortization. You should consider one if you want to transition your business to your family, purchase minority family-owned interests, and/or keep your business in your community long-term. ESOPs work well for entrepreneurs who want to reward their employees, diversify their portfolios, and reduce or eliminate estate taxes. An ESOP may also be a good fit if you have considered a Wealth Replacement Trust with a second-to-die life insurance policy. This ESOP was a smashing success. To understand how an ESOP works, it is best to see one in action. So, imagine an older couple named Bob and Mary. They own a business called
JKM Industries with 150 employees, and three of their five children are actively involved in running the company. Their estate is valued at $40 million, the company is valued at $25 million, and they plan to leave it to the three children who work there.
Suppose Bob and Mary pass away without an ESOP. In that case, their estate will owe more than $7 million in estate taxes and their business will be divided between all five of their children. However, with an ESOP, they will save $1.6 million in capital gains tax, save $3.48 million in gift and estate tax, and ensure the business passes to the right children. That is just the tip of the benefits iceberg! To learn more about how an ESOP would benefit your business, reach out to our firm. We will answer your questions and help you get started.
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BY PICKING QUALITY STOCKS Invest Smarter
BLOSSOM DERBY
EMERALD FERTILIZE GEMINI HORSE LIGHTSABER MOTHER
NATURE PARADE
Deciding which stocks to invest in can be a complicated and intimidating process. You may have heard how some average Joe struck it big by playing the stock market
SEEDLING VETERANS
and decided it was finally time to invest. Many download Robinhood, Fidelity, or Acorns to their phones, hoping to find some stocks worth their money, but quickly find the process overwhelming. So, how do you know which stocks are worth adding to your portfolio?
Thankfully, you can follow a four-step system to give yourself the best chance at investing in quality stocks.
1. Determine investment goals and risk tolerance.
Before you even start looking at stocks, you must decide what you want out of your investments. Are you looking for long-term gains, or do you want a quick turnaround to make fast money? Are you willing to take on higher levels of risk in exchange for potentially higher yields? You should ask yourself these questions as you decide which stocks are best for your situation. Research potential investments. Now that you’ve established your investing goals, you should start finding stocks worth your time and money. Look for companies with strong financials, including strong revenue growth, solid balance sheets, and positive earnings. Also, look at how their industries are fairing as a whole and where each business stands within their industry. Once you find a few stocks worth investing in, go for it! Diversify your portfolio. When you invest in stocks, don’t dump everything into one business or industry. Instead, spread your investments across a range of different companies, industries, and even countries. This will help reduce the impact of any potential losses from single investments. If you invest too much in one company and start seeing a downward trend, it may be too late, and you’ll quickly find yourself in a hole.
This dish is light and refreshing, making it perfect for spring! The crispy salmon patties pair perfectly with the cool dill sauce dolloped on top.
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INGREDIENTS
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1 1/2 cups plain yogurt or fat-free sour cream
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1 large white onion, finely chopped
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1/4 cup Dijon mustard
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4 large eggs, beaten
6 sprigs fresh dill, chopped 2 14.75-oz cans salmon packed in water
1/2 tbsp salt
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1 tbsp pepper 2 tbsp olive oil
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4 celery stalks, finely chopped
DIRECTIONS
1. In a small bowl, whisk together yogurt, Dijon mustard, and dill to make the dill sauce. Set aside. 2. Drain the salmon, then remove and discard the bones and skin. In a large bowl, mix the salmon, celery, onion, eggs, salt, and pepper. Form the mixture into 8 patties. Coat a medium skillet with olive oil and heat it over medium-high heat. Cook the patties until browned on both sides, about 5 minutes per side. 3. Put a dollop of the dill sauce on top of each patty and serve.
4. Monitor your stocks. Once you’ve started investing, sitting back and waiting is not enough. You need to monitor your stocks actively. Stay current on the performance of the companies you’ve invested in, and consider selling stocks if they no longer meet your investment goals. It’s vital to pay close attention to the businesses you have invested in as well as the ones you are considering backing in the future. If you do this, making the right choices with your current, previous, and future investments will be much easier.
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INSIDE THIS ISSUE
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Financial Professionals: Our Summer Plans Include You! Host an Unforgettable Murder Mystery Dinner Tax-Savvy Way to Pass Down a Family Business Invest Smarter in 4 Simple Steps Salmon Croquettes With Dill Sauce A Safe Banking Tip for Business Owners
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PROTECT YOUR MONEY FROM BANK FAILURE!
A Lesson for Business Owners and Money Managers The government came through for depositors who took a risk with SVB (and Signature Bank, which failed shortly afterward). But it was not required to do so. It seems unlikely federal regulators will offer the same compensation to depositors if more banks fail. This is a sign to business owners and money managers: Do not put all of your eggs in one bank basket. How to Keep Your Money Safe Never deposit more than the FDIC-insured limit of $250,000 “per depositor, per insured bank, for each account ownership category” with a single bank. Split up your funds between multiple banks to make sure they are fully insured. That way, you will have government protection if more banking institutions go the same way as SVB and Signature Bank. To learn more about recent bank failures and their impact, tune in to The New York Times podcast “The Daily” and listen to the episodes from March 14, 17, and 22.
This March, one of the biggest banks in the country collapsed, and business owners lost millions — at least, they thought they did. You likely followed this story closely, but if not, here are the Cliffs Notes every financial professional should know. Silicon Valley Bank’s Demise Silicon Valley Bank (SVB) was 40 years old at the time of its failure and held roughly $209 billion in assets. It had a reputation for funding small businesses and startups and encouraged its members to bank exclusively with SVB. This led many companies to deposit funds well beyond the $250,000 the Federal Deposit Insurance Corporation (FDIC) insures in case of a bank failure. The TV streaming giant Roku, for example, held $487 million in assets with SVB. SVB collapsed after what The New York Times describes as “emergency moves to handle withdrawal requests and a precipitous decline in the value of its investment holdings [which] shocked Wall Street and depositors, sending its stock careening.” The FDIC took over the bank, and in an unexpected move, the federal government announced SVB depositors would get all of their money back — not just the insured $250,000.
A LESSON FROM SILICON VALLEY BANK’S COLLAPSE
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