Receiving an inheritance can be a significant life event, often accompanied by a mix of emotions and financial considerations. As an investment advisor, I understand the importance of making informed decisions when managing newfound wealth.

In this short video, I walk you through some key steps to help you make thoughtful decisions about your inheritance, honor your loved one’s legacy, and align it with your financial goals.

Transcript:

Understanding the Complexities of Inheriting Money

Hi, I’m Brad Pappas, an investment advisor at Rocky Mountain Humane Investing.
I want to spend a few moments today talking about inheriting money because inheriting money can be more complex for new investors than you might think. While you might have good intentions, it’s easy to overlook things, especially when you’re grieving.

Take Time to Process Your Loss Before Making Financial Decisions

So if you’ve received an inheritance or anticipate receiving one, here are some things to consider.
My first suggestion is to take a period of time to process the loss before making decisions about the money. Initial ideas are usually influenced by emotions, so give yourself some time to think and plan.

Honoring Your Loved One’s Legacy Through Smart Financial Choices

Your loved one likely spent their lifetime building their wealth. They probably hope you’d make some wise decisions and overcome the initial temptation to splurge. In other words, take care of your own emotions to safeguard the wealth they’ve gifted to you.

Understanding the Type of Inheritance You’ve Received

Next, it’s critical to understand the type of inheritance you’ve received. How do you access the funds? Are there any taxes associated with it? And what are your options going forward? Here’s a realistic scenario.

Practical Ways to Use Your Inheritance Wisely

Your inheritance came in the form of cash.
You could use a portion of it to pay off bills. Afterwards, you could establish a retirement account or pay down your mortgage or put down a deposit for a home. If you have children, establish college savings accounts.

Balancing Enjoyment with Long-Term Financial Planning

Finally, after more pressing needs have been addressed, maybe it’s time to take that dream vacation you’ve been planning and then decide to solidify your future with an investment account.

The Value of Working with a Fiduciary Investment Advisor

At this point, it’s smart to reach out to help with an investment advisor who has fiduciary responsibility. If you’re ready to schedule a meeting, you can call me at 970-222-2592 or send an email to brad@greeninvestment.com. Thank you.

More investors are looking for ways to support cruelty-free companies. How can they follow their consciences while maximizing tax efficiency? This video offers some ideas on how to take positive steps that benefit all sides.

Transcript:

Why More Investors Are Avoiding Certain Companies

Today’s investors have different reasons for avoiding certain industries than previous generations. Ethical investing has evolved, incorporating concerns about animal welfare, the environment, and human rights.

The Origins of Animal Cruelty Screens in Investing

In the early 90s, while rescuing dogs, I created the first animal cruelty screen. This approach has since expanded to include additional social and environmental considerations.

Aligning Investments with Your Beliefs

Many investors want to avoid companies that conflict with their values. For taxable investors, it’s also crucial to incorporate tax-efficient strategies. In this video, I’ll explain how we blend social screening with tax efficiency.

What Does Cruelty-Free Investing Exclude?

We avoid investments in:

• Factory farm companies
•  Companies that conduct animal testing (biotech, pharmaceuticals)
•  Food and leather retailers (supermarkets, shoe retailers)
•  Oil and mining companies

Are You Missing Out on Profitable Investments?

The industries we screen out often have:

•  Low profit margins
• Slow or no free cash flow growth

By avoiding these industries, you’re not necessarily sacrificing strong financial returns.

Long-Term Investing for Tax Efficiency

The best way to minimize taxes on profitable investments in taxable accounts? Never sell. However, most stocks are too volatile for a true buy-and-hold strategy.

The Key to Sustainable Investing: High-Quality Stocks

We focus on companies with:

• Protective moats and barriers to entry
• Decades-long lifespans
• Consistent capital and free cash flow growth

Balancing Risk and Return for Long-Term Growth

Studies by Morningstar and others show that investing in high-quality stocks is one of the best ways to manage risk while maximizing returns. We prioritize companies that demonstrate steady, year-over-year growth.

Examples of Strong, Ethical Investments

FICO and Cintas are great examples of consistent, high-quality investments that align with our strategy.

Using Charitable Giving for Tax Efficiency

Donating shares of low-cost-basis stocks to a qualified charity helps investors:

• Avoid capital gains tax
• Potentially receive a tax deduction if they itemize deductions

Work with a Qualified Advisor for a Tailored Strategy

Considering socially responsible investing? A qualified investment advisor can:

• Define investments that align with your values
• Maximize tax efficiency
• Make strategic year-end or mid-year portfolio adjustments

Final Thoughts

If you’re looking to invest ethically without sacrificing returns, an expert advisor can help you make informed, tax-efficient decisions. Thank you.

In this brief video, we delve into the details of the Social Security shortfall and explore its potential implications for your retirement. We discuss the key factors contributing to the shortfall, its potential impacts, and strategies to help you navigate these uncertainties.

We encourage you to watch the video and reach out to our team with any questions or concerns.

Introduction

Hello, I’m Brad Pappas, President of Rocky Mountain Humane Investing. Today I’d like to share my thoughts about the coming potential shortfall in Social Security benefits. Let’s start by talking about why the shortfall is happening in the first place.

Causes of the Social Security Shortfall

First of all, it’s due to declining demographics, whereby the number of people working and contributing to the fund is being overwhelmed by the growing number of retirees. This is not a new revelation, but the political party has been keeping the can down the road for years. Other factors include decreasing birth rates, increases in life expectancy, and payroll tax cuts due to recessions.

The Impact of Immigration Policy Changes

A new wild card has formed that would be the deportation of taxpaying immigrants. That being said, the policies of the incoming Trump administration, if approved, will accelerate the timeline of the Social Security deficits. Trump’s offer to stop tackling Social Security may sound wonderful to retirees, the results of which would be a disaster, because taxes on Social Security benefits are funneled back into Social Security and Medicare trust funds.

Congressional Budget Office Predictions

According to the CBO, or the Congressional Budget Office, before the election, the CBO estimated that the Social Security trust fund would be insolvent by 2034. If President-elect Trump’s agenda passed on the aggregate, the trust fund would run out of money even faster. The promises include eliminating the tax on Social Security that we already mentioned, tips, overtime, imposed tariffs, and expanding deportations.

Accelerated Insolvency and Projected Cuts

The insolvency of Social Security would advance by three years to 2031. The Committee for a Responsible Federal Budget, or the CRFB, believes Trump’s agenda would cause a 33% cut in benefits by 2035. Based on current law, once insolvency is reached, outgoing Social Security funds would be limited to the incoming revenue stream.

Proposed Solutions to the Shortfall

Money going in equals money going out. There are solutions proposed by the CFRB, reducing current benefits by one-third, or increasing the revenue by 50%, which would likely be in the form of an increase in taxes. Or do nothing.

The Impact of Increasing the National Debt

This would mean increasing the national debt to cover the Social Security shortfall, and in addition to increasing the national debt by putting more money into the economy to stimulate the economy and cover deficit spending.

The Uncertainty of Predictions

None of these predictions are written in stone. Too many unknown variables exist.

Conclusion and Strategy

We think it’s best to understand the situation and prepare an investment strategy to anticipate the potential cuts. Thank you for watching. I’m Brad Pappas at Rocky Mountain Humane Investing. I can be reached at Brad@GreenInvestment.com or 970-222-2592.