Finance

The fact that 81% of young people set to inherit large wealth are planning to fire dad's financial advisor is not a surprise. The surprise is how few legacy wealth management firms and private banks have any plan to address this whatsoever. Don't get me wrong, I'm sure they have meetings about it and pay consultants to "produce educational content" for the household offspring. But then they also have million-dollar minimums or payout grids disincentivizing FAs from taking sub-$5 million accounts. And that's why they're going to lose and you're going to win. They don't want it badly enough. They're not willing to put time, effort or capital on the line. Here are three actions you can take right now: INVEST in hiring and training younger advisors. Feed them now so they'll be ready for this opportunity when the time comes. It's a leap of faith to put new prospective clients in front of less experienced CFPs. Have faith in your next-gen advisors. Take the risk. SEGMENT your service tiers so that there is a grown-up, beyond-robo solution in place for HENRY (High Earner Not Rich Yet) households that doesn't infantilize them. Treat young adults like they're important to the firm, not a side business or a farm team. Educate them about what you're doing to the point they can repeat it back to you. CREATE so you can get in front of the inheritor generation, winning hearts and minds on the platforms they use. Communicate in an authentic way. Under 40's will not be marketed to by brands, they want to believe in you and your people. Do you believe? If not, they won't either. Read Robert Frank for CNBC https://lnkd.in/ewdUzVTk

Not long after college, I had to have a tough conversation with my father. He had worked hard his entire life, but he didn’t have enough saved to retire when he planned. That moment shaped how I think about retirement security. Our nation has come a long way in helping people save more for retirement, but we haven’t focused enough on making sure those savings will last. With pensions disappearing and Social Security replacing only about 40% of pre-retirement income, too many Americans are left wondering if their money will run out in retirement. That’s not security. When it comes to retirement planning, income has to be the outcome. We need solutions that help every worker turn their savings into guaranteed income—so that when retirement comes, they can count on their money lasting the rest of their lives. TIAA has been leading this charge, advocating for solutions that make lifetime income a central part of retirement planning. I shared in the The New York Times why this issue matters and how we can create a future where financial security doesn’t end at retirement. Let’s rethink what true retirement security should look like. https://lnkd.in/ec35tRGy #RetirementSecurity #LifetimeIncome

A $125B fund to protect tropical forests is gaining traction, reports Justin Catanoso from #COP16. At COP16 in Colombia, an idea as audacious as it is pragmatic took center stage: the Tropical Forest Finance Facility (TFFF), a potentially transformative step in conservation finance. Conceived as a new model for protecting tropical forests, TFFF aims to establish a reliable, results-based income stream for nations stewarding these biodiverse reserves—essentially treating tropical forests as stakeholders in our planet’s future. Despite a patchwork of conservation funds, financing has simply not kept pace with the rapid rate of forest loss. Enter the TFFF, structured to attract up to $125 billion from a mix of sovereign investors, philanthropies, and private sources. Its ambition is to reward countries for slowing deforestation and safeguarding tropical forests, offering an annual return of $4 billion, contingent upon rigorous satellite monitoring and adherence to conservation targets. While other funds have relied on goodwill and grants, TFFF introduces a model akin to a bond fund, rewarding investors while incentivizing nations to keep forests intact. The initiative’s architects envision a diversified portfolio, combining climate-friendly investments—such as green bonds in developing economies—with fixed-income securities in more established markets, aiming for stable returns to underwrite ambitious payouts. Penalties for deforestation are stringent: each hectare lost forfeits the equivalent of rewards for 100 hectares. Such measures aim to maintain a steady yield over an anticipated 20-year lifecycle, supporting more than 70 tropical nations in preserving, rather than depleting, their natural capital. Beyond its environmental goals, TFFF’s structure addresses the governance and transparency challenges often faced by global finance initiatives. A globally recognized body would oversee fund administration, minimizing political influence and ensuring that proceeds are distributed equitably and transparently. Payments will be tracked and verified, supported by an annual “Global Score Card” to enhance public accountability. If successful, TFFF could represent a shift from traditional conservation financing, creating an asset-backed approach where nature's essential services are finally valued. Tropical forests—indispensable for climate stability, biodiversity, and local livelihoods—have long been absent from balance sheets. As TFFF’s supporters might say, it’s high time forests were valued for their productivity as ecosystems, not just as raw materials. 📰 Catanoso's story: https://lnkd.in/gfmdvyPm Photos: various rainforests I've photographed.

The first time I looked at a VC term sheet, I made the classic founder move: Scanned for valuation. Mentally celebrated. Big mistake. Because the stuff that actually matters? It’s hidden in the fine print. Here are 3 terms that quietly screw over founders: 1) Liquidation Preference – If it’s 2x participating, investors get paid twice before you see a dime. That “big exit”? Might feel more like a rounding error. 2) Board Control – You built the company, but if the board’s stacked with VCs… they can fire you. Even if you’re hitting your numbers. 3) Option Pool Shuffle – If VCs ask to increase the option pool before they invest, guess who gets diluted? You. Always ask: pre- or post-money? Too many founders learn this stuff the hard way. You don’t raise your Series A to get blindsided. >> Read the term sheet. >> Understand the incentives. >> Protect your equity. What’s the sneakiest term you’ve seen on a VC term sheet? Did you negotiate your first deal solo or bring in a lawyer? What’s one thing you wish you knew before signing? Teaser: we are working on an agent that will make sure that you don't sign your company away: upload and we will flag what you need to know. #startups #founders #venturecapital #fundraising

In much of the world, digital financial tools are a daily reality—used to process paychecks, pay for dinner, buy groceries, and more. But 1.4 billion adults in low- and middle-income countries still lack access to these tools.    This isn’t just an inconvenience for them; it's a barrier to economic growth and empowerment. According to a 2023 UN analysis, digital public infrastructure—including digital ID, payments, and data exchange—could accelerate GDP growth in these countries by 20 to 33 percent.    That’s where Mojaloop Foundation comes in: Their open-source software makes it possible for countries to build inclusive digital payment systems that allow anyone with a mobile phone to send and receive money securely, instantly, and affordably. This has the potential to drive economic inclusion—and open the doors to financial freedom—for billions.

I spent 3 years researching a book on wealth. 34 lessons on money everyone needs to hear: 1. Being Mega-Rich is wildly overrated. 2. There are a lot of rich people who spend all their time trying to impress even more rich people. 3. The best uses of money are those that create one of four things in your life: Time, experiences, purpose, or health. 4. The highest Return on Investment in my portfolio is on the 12 months of emergency funds I keep in cash. 5. You can’t improve what you don’t track. 6. 20 years from now, the only people that will remember you worked late are your kids. 7. Alignment with your partner about money is a must for a successful relationship. 8. There are no hacks or shortcuts (and you should run if someone tries to sell you one). 9. How you earned it is more important than how much you earned. 10. Never, ever carry credit card debt. 11. Run disaster simulations to be prepared for the unknown. 12. Lifestyle Creep is really just a byproduct of Expectations Creep. 13. Relatedly, your environment governs a lot of your expectations. 14. Liquidity is much more valuable than you think. 15. But liquidity can also be a bug if you’re prone to emotional decisions. 16. Being likable is a legitimate competitive advantage. 17. Nothing will accelerate your career more than building a reputation for figuring it out. 18. If your self-worth is dictated by where you vacation or your kid’s private school tuition, you need to rethink your life. 19. The time associated with an investment is just as important as the money. When you make an investment, you’re putting both your money and your time into it as an input. 20. Sometimes the cheap option is the most expensive. 21. Would you buy that thing if you couldn't tell anyone about it? 22. Never finance a luxury material purchase if you can’t buy it 2x in cash. 23. Time-for-money trades aren't as bad as the internet gurus want you to believe. 24. Cash flow is king. 25. Don't waste time trying to outperform the market (unless it's your full time job). 26. Never think twice about investments in yourself. 27. Follow a 24-hour Cool Off Rule for non-essential purchases. 28. Side hustles are usually just distractions masquerading as productivity. 29. Conduct a regular audit of your recurring monthly expenses. 30. Automate the payment of your regular expenses that are below a threshold. 31. Be wary of using money to optimize the life out of your life. 32. Enough is the most important word that very few people understand. 33. Live frugally first so you can live wonderfully later. 34. Generosity creates significantly more happiness than consumption. I hope this short list of lessons is a helpful start on the journey. 📌 Want the books that built my best systems and ideas? Download my Favorite Books PDF (free) and join 800,000+ who get my newsletter: https://lnkd.in/e__9zSeM.

Hot off the press is the latest private markets quarterly update from our CIO team. Here’s what we’re seeing right now across asset classes: In #privateequity, we still like value-oriented buyouts, and specifically, managers with strong track records in operational value creation. We also recommend allocations to secondaries, as secondary exit solutions should remain a favored liquidity option and NAV discounts remain in the double digits. We continue to recommend #privatecredit, but selectivity will be key as manager dispersion is far greater here than in public credit. Spreads have tightened as competition has returned to the loan market. But we remain constructive on the sector given yields near 10%, low defaults, declining leverage, and ample covenants. Our outlook for lower growth combined with two Fed cuts in 2H25 is also supportive. In #realestate, a bottoming trend in a majority of CRE values began occurring in late 2024. We believe 2025-30 will be rewarding for investors that can identify and lean into markets benefitting from strong demographics, migratory patterns, and job creation. We believe there are opportunities emerging from properties facing financial distress that are still solid assets – which we’ve often seen in multifamily. Full report below.

My friend raised $100 million from well-known VCs and is shutting the company down in the next couple of weeks. I met with him to learn what went wrong. He asked me to share his recent startup experience with my LinkedIn community, hoping it could benefit other founders. His biggest regret on his nearly 7-year journey was accepting a significantly overvalued Series A round. He raised a large financing round at a massive valuation from well-known VCs, which generated significant media buzz. This was the kind of moment many founders post about and celebrate. He had many term sheets and took the one with the largest valuation. Turns out, that inflated valuation from his round created immense pressure and set expectations so high that securing crucial follow-on funding became impossible. Then a few product delays hit. A key hire fell through. Normal startup turbulence. Follow-on funding dried up. Morale dropped. The story shifted. He also had many early VCs on his cap table that were chasing markups. Their playbook was simple: inject capital, hype the company, and flip it to the next investor at a higher valuation. The lesson? Valuation is not validation. It’s a bet. And if it’s misaligned with reality, it can sink even the most promising company. A more grounded valuation is the key to sustainable growth and navigating the long, unpredictable startup journey. Raise what you need. From people you trust. Build a good foundation to get through any ups and downs. #founder #funding #investing #vc #venturecapital #entrepreneur #startup

"My CPA told me: You don't have to spend your HSA — just let it grow." Last week, I reviewed a client's tax return. They contributed $8,300 to their HSA... and panicked thinking they had to spend it all. They'd been saving receipts all year, planning a December shopping spree for eligible expenses. I stopped them cold: "That's FSA thinking. Your HSA never expires." That money? Still sitting there, tax-free, compounding. Completely untaxed growth — potentially for decades. Their face when they realized their HSA could become a stealth retirement account was priceless. The HSA is the ONLY triple-tax-free account in existence: - Tax-deductible going in (immediate savings) - Grows tax-free (no capital gains taxes ever) - Withdraw tax-free for qualified medical expenses — even decades later And if you don't use it for medical expenses? At age 65, it works like a traditional IRA — withdraw for anything, just pay income tax (no penalties). Here's how to actually win with an HSA: - Max out the contribution every year ($8,300 family limit for 2024, rising to $8,550 in 2025) - Do NOT spend it. Pay medical costs out-of-pocket if you can  - Invest the HSA balance — don't leave it in cash earning nothing - Keep every medical receipt digitally. You can reimburse yourself years later, tax-free - Treat your HSA as part of your retirement portfolio — not a short-term medical fund Remember: The average couple needs $315,000 for healthcare in retirement. Your future self will thank you for this tax-free medical nest egg. If your CPA hasn't explained this strategy to you, you're leaving one of the most powerful tax advantages on the table.

Ever think about what happens after you're gone? Let’s talk life insurance. 👇 September is Life Insurance Awareness Month, And it's the perfect time to chat about why life insurance isn’t just a box to tick off on your adulting checklist. It’s a key piece of the puzzle in securing your family’s future—especially if the unexpected happens. It’s not about the gloomy 'what-ifs.' It’s about peace of mind, knowing your loved ones will be okay, no matter what. That’s the power of life insurance—it’s a financial hug for your family when they need it most. A lot of people think life insurance is complicated or only for the breadwinner in the family. That’s not true! Just like anything else, life insurance isn’t one-size-fits-all. Whether you’re single, married, a parent, or a business owner, there’s a policy that fits your life and your needs perfectly. Here’s how to kickstart this conversation: 💎 Understand Your Needs: → Look at what expenses your family (or future family) will need to cover if you're not around. →Think mortgages, education, and even day-to-day living costs. 💎 Choose the Right Policy: → There's more than one type of life insurance. → Whether it's term for temporary needs or whole life for lifelong coverage, pick what matches your family's long-term goals. 💎 Consider the Benefits: → Beyond just the payout, some policies accumulate cash value or offer riders like critical illness benefits, giving you more bang for your buck. Talking about life insurance doesn’t attract bad luck. It’s a proactive step towards good financial health. It’s about love, responsibility, and care. Are you fully covered? DM me ‘PEACE’ to start a conversation. Your family’s future deserves that security. September's the month to get informed and take action.