Playbook of the Wealthy

Heather Townsend and the story of Townsend Financial | EP078

It's taken Heather Townsend 60+ episodes to agree to talk about herself. Dave finally corners her. In this Playbook of the Wealthy episode, Dave Grant of Retirement Matters puts co-host Heather Townsend of Townsend Financial in the hot seat. Heather — a former Big Four tax accountant turned CPA, CFP, and Registered Life Planner — walks through why she left tax work to become an advisor, how her niche evolved from "just women" to business owners and high-net-worth clients, her exact four-meeting planning process, and why she charges a flat fee instead of the industry-standard 1% AUM. Then things get personal: her favorite part of the job (client happy tears), her least favorite (state-by-state compliance), the one hire she made a year too late, and a home-renovation saga and a surprise trip to Scottsdale City Hall in the Highlights segment. ▶ Listen on Apple, Spotify, or visit https://playbookotw.com ★ WHAT YOU'LL LEARN ★ ▸ Why Heather became a financial advisor — the tax mistakes she kept seeing when advisors and CPAs didn't talk to each other ▸ How her niche evolved from a "just women" website in year one to business owners and high-net-worth clients today ▸ Her four-meeting planning process — discovery, an RLP-driven "ideal life" meeting, plan refinement, then delivery ▸ Why she charges a flat fee with a $20,000 minimum instead of the standard 1% of assets, and who it actually helps ▸ Her team: a senior client service specialist, dedicated traders, and the "mini Heather" she's searching for ▸ Favorite part of the job (client happy tears) vs. least favorite (multi-state compliance) ▸ The one lesson she'd change: hiring and delegating a full year too late ▸ What Would You Do: why choose Townsend Financial, and how clients know the fee is worth it ★ CHAPTERS ★ 00:00 Cold open: Heather's favorite part of the business 01:20 Welcome — cornering Heather on her own episode 03:05 Why Heather became a financial advisor 05:48 How her ideal client evolved over time 08:14 Her four-meeting financial planning process 11:10 Beyond investments: what clients actually get 12:53 Why choose Heather over another advisor 16:03 48 clients and the scale-or-stay-boutique question 21:05 Building the team: Cassie, traders, and the "mini Heather" 22:52 Flat fee vs. the industry's 1% AUM standard 23:56 Favorite part: client wins and happy tears 24:17 Least favorite part: compliance 24:52 The one lesson she'd change: hiring too late 26:20 What Would You Do? — Heather edition 32:34 Highlights: kitchen remodel chaos & a trip to City Hall 37:29 Wrap up ★ LISTEN ON ANY PLATFORM ★ Apple Podcasts: https://podcasts.apple.com/us/podcast/playbook-of-the-wealthy/id1787630097 Spotify: https://open.spotify.com/show/21LrI3IB2wMsOOJLiGsRJK Website: https://playbookotw.com ★ WATCH NEXT ★ LLC or S-Corp? How to choose your business structure | EP077: https://www.youtube.com/watch?v=isxbZ18XwW0 The Estate Tax Laws that could cost you thousands | EP076: https://www.youtube.com/watch?v=VYwUZI_JYjo ★ CONNECT ★ Submit a question: https://playbookotw.com Email: hello@playbookotw.com Dave Grant: https://www.instagram.com/davegrant82 Heather Townsend: https://www.instagram.com/heather.townsend.financial ★ ABOUT THE SHOW ★ Playbook of the Wealthy makes wealth planning and retirement simple, clear, and approachable. Hosted by financial advisors Dave Grant of Retirement Matters and Heather Townsend of Townsend Financial. ★ DISCLAIMER ★ All opinions expressed by Dave Grant and Heather Townsend are solely their own and do not reflect the views of their respective wealth management firms. This podcast is for informational purposes only and should not be relied upon for investment decisions. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Clients of Retirement Matters and Townsend Financial may maintain positions of the securities discussed. #TownsendFinancial #FinancialAdvisor #PlaybookOfTheWealthy

LLC or S-Corp? - How to choose your business structure | EP077

Your buddy at the gym swears an S Corp will save you a fortune. Your accountant says don't bother. Who's right? Both — and it comes down to one number most people get wrong: profit, not revenue. In this Playbook of the Wealthy episode, financial advisors Dave Grant of Retirement Matters and Heather Townsend of Townsend Financial untangle the LLC-vs-S-Corp confusion clogging your social feed. Heather (a self-described "humongous nerd") goes deep on the real math — the self-employment tax savings everyone brags about, the costs that quietly erode them, the QBI deduction, the PTET state-tax workaround, putting kids on payroll, and the reasonable-salary trap that gets S Corps audited — while Dave keeps her out of the weeds. ▶ Listen on Apple, Spotify, or visit https://playbookotw.com ★ WHAT YOU'LL LEARN ★ ▸ Why "I'm an LLC" is the wrong answer to "how are you taxed?" — an LLC is liability protection, not a tax status, and you tell the IRS how it's taxed ▸ The S Corp tax savings explained simply: pay yourself a W-2 wage, take the rest as distributions, and skip the 15.3% self-employment tax on that portion ▸ The costs that eat the savings — a separate 1120-S return, payroll software, unemployment and franchise taxes ▸ How the 20% QBI deduction shrinks once you're an S Corp, and why high earners in "specified service" businesses can lose it entirely ▸ PTET: the state-tax workaround that gets you a federal deduction past the SALT cap — but usually only if you're an S Corp or partnership ▸ The profit thresholds that actually matter: under $80K probably no, $80-150K run the numbers, $150-400K usually yes, $400K+ almost always ▸ Why a too-low salary is one of the biggest S Corp audit risks — pay yourself what it would cost to replace you ★ CHAPTERS ★ 00:00 Cold open: who's right about the S Corp? 01:11 Welcome — LLC, S Corp, or none of the above? 03:11 Why "I'm an LLC" doesn't tell anyone how you're taxed 05:09 The trap: jumping to an S Corp too soon (profit, not revenue) 06:35 Benefit: the self-employment tax savings everyone talks about 08:53 Cost: S Corps are pricier and more complex 11:13 QBI: how the 20% deduction shifts under an S Corp 14:00 PTET: the state-tax workaround you need an S Corp for 17:42 Kids on payroll & retirement contribution math 19:56 The accountable plan and the Augusta rule 20:42 Who should actually elect: the profit thresholds 23:14 Heather's bow: the higher the profit, the more it makes sense 23:56 What Would You Do? — listener scenarios 28:15 Highlights: Heather's "woo woo" signs & Dave's gaming 34:00 Wrap up ★ LISTEN ON ANY PLATFORM ★ Apple Podcasts: https://podcasts.apple.com/us/podcast/playbook-of-the-wealthy/id1787630097 Spotify: https://open.spotify.com/show/21LrI3IB2wMsOOJLiGsRJK Website: https://playbookotw.com ★ WATCH NEXT ★ 9 financial charts explaining the world today | EP075: https://www.youtube.com/watch?v=sNOgDL6x5cA What are Buffered ETFs and should you have them in your portfolio? | EP074: https://www.youtube.com/watch?v=ZzKEyyJePx8 ★ CONNECT ★ Submit a question: https://playbookotw.com Email: hello@playbookotw.com Dave Grant: https://www.instagram.com/davegrant82 Heather Townsend: https://www.instagram.com/heather.townsend.financial ★ ABOUT THE SHOW ★ Playbook of the Wealthy makes wealth planning and retirement simple, clear, and approachable. Hosted by financial advisors Dave Grant of Retirement Matters and Heather Townsend of Townsend Financial. ★ DISCLAIMER ★ All opinions expressed by Dave Grant and Heather Townsend are solely their own and do not reflect the views of their respective wealth management firms. This podcast is for informational purposes only and should not be relied upon for investment decisions. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Clients of Retirement Matters and Townsend Financial may maintain positions of the securities discussed. #SCorp #SmallBusinessTaxes #PlaybookOfTheWealthy

The Estate Tax Laws that could cost you thousands | EP076

So many people obsess over estate tax laws and the $15 million federal estate tax exemption, and quietly walk right into a state estate tax problem they never saw coming. In this episode, Dave and Heather dig into the tax that's already hitting their clients: the 12 states that tax estates at limits far below federal, where a single dollar over the line can make your ENTIRE estate taxable.▶ Listen on Apple, Spotify, or visit https://playbookotw.com★ WHAT YOU'LL LEARN ★▸ Why the federal exemption is a red herring — only 12 states levy an estate tax, but their limits run from $1M (Oregon) to ~$13M (Connecticut), and that's the gap that gets you▸ The "cliff" that should terrify you: cross Illinois' $4M limit by a single dollar and the entire estate becomes taxable — plus a graduated tax and a mountain of compliance▸ Why seven-figure earners in their 40s already have an estate problem — and why their documents have to be designed as if they could die tomorrow▸ The portability trap: some states (like Washington) won't let a surviving spouse inherit the deceased's exemption — so it simply vanishes▸ Why illiquid assets are the real danger — you can't "sell a bedroom" or chop off part of a business to cover the tax bill the state wants up front▸ How to spot a good estate attorney from a bad one — the ones who design pretty documents without thinking through taxes, liquidity, and how it all actually gets carried out▸ The vacation-home tax bomb: own a second home in a taxing state and it becomes partially taxable there, even if you never lived there▸ Annual gifting in plain English — $19,000 per person in 2026 ($38k per recipient for married couples) and how "warm hands vs. cold hands" reframes giving▸ AB trusts vs. disclaimer trusts — why a strategy that nearly died at the federal level is roaring back as a STATE planning tool, and why optionality matters▸ How business owners use an ILIT so heirs can pay the estate tax with insurance proceeds instead of being forced to sell the business★ CHAPTERS ★00:00 Cold open: illiquid assets, family fights, and "warm hands vs. cold hands"01:18 Welcome — today we're talking state estate tax law (yes, it's nerdy)01:40 What the federal estate tax exemption actually means02:10 The part everyone forgets: your state may want its own cut03:20 Problem 1: Does your state's limit differ from federal? (only 12 states tax)04:40 Problem 2: The "cliff" — go $1 over and your whole estate is taxable05:43 Why high earners in their 40s have to plan now06:21 Problem 3: Lack of portability between spouses09:42 Problem 4: The liquidity trap of real estate and businesses10:05 How to tell a good estate attorney from a bad one11:02 Problem 5: Real estate in multiple states (the vacation-home bomb)12:13 Solutions begin: annual gifting and gift splitting13:59 "Warm hands vs. cold hands" — the case for giving while you're alive14:42 AB trusts and disclaimer trusts explained19:31 ILITs: irrevocable life insurance trusts for business owners20:38 Tying a bow: start with your end goal, and don't make anything permanent22:37 What Would You Do?22:42 Scenario 1: 45, single, $3.5M estate in a $4M-limit state23:55 Scenario 2: 85 couple, real estate in three states, $6M total26:15 Scenario 3: 70-year-old leaving a $12M business to three sons29:46 Highlights: Heather's fitness reboot and the seven-miles-a-day plan31:31 Highlights: the accidental backyard pumpkin patch34:02 Wrap up

9 financial charts explaining the world today | EP075

Your financial advisor's favorite charts, read out loud. Every quarter Dave and Heather crack open J.P. Morgan's guide to the markets — and this episode is the two of them flipping through nine charts that explain what's actually happening in the economy right now. If you're a visual learner, this one's for you (and yes, they know that's a strange thing to say on a podcast).In this Playbook of the Wealthy episode, financial advisors Dave Grant of Retirement Matters and Heather Townsend of Townsend Financial go chart by chart through the data behind today's headlines: whether war actually moves the stock market, the labor-market numbers quietly inching toward a recession signal, the Fed's tightrope between inflation and jobs, what's really fueling inflation (and why everyone's so mad about gas), the brutal math of missing the market's best days, the surprising 15-year global-equity winner that wasn't the US, the truth about real estate funds and gold, and the hidden tax drag that makes active mutual funds so painful. Plus highlights: Dave's house-music obsession and Heather's run of New York conferences.▶ Listen on Apple, Spotify, or visit https://playbookotw.com★ WHAT YOU'LL LEARN ★▸ Why the stock market barely flinches at war — and what the S&P actually returned in the years during and after major conflicts▸ The labor-market signal quietly flashing recession: payroll growth slowing while unemployment ticks toward its 30-year average▸ Why rising unemployment isn't all bad news — and the impossible tightrope the Fed walks between taming inflation and keeping people hired▸ What's really driving inflation right now — why volatile energy prices have all but vanished from the numbers while shelter never leaves▸ The "missing the best days" math that should end market-timing forever: miss just 40 days in 25 years and $1,000 becomes $670▸ The 15-year global-equity winner that beat the S&P 500 — it's not the US — and why staying diversified still wins▸ How real estate funds actually pay you: a steady ~5% income stream sitting on top of wildly swinging capital appreciation▸ Why gold had a monster 2025 — and why it's still more volatile than the S&P 500 and a poor stand-in for bonds▸ The silent tax drag of active mutual funds: capital gains you owe on income you never received — and how it can even push up your Medicare premiums▸ The simple moves that follow from all of it: lock in CDs when rates are high, refinance when they're low, and favor ETFs over active mutual funds★ CHAPTERS ★00:00 Cold open: the stock market doesn't actually care about war00:43 Cold open: miss 40 days in 25 years and you lose money01:17 Welcome — today we're talking charts01:39 Why we do chart episodes (we're nerds, you're visual learners)02:23 Chart 1: Does war really move the stock market?05:42 Chart 2: Labor market — payrolls, unemployment & wage growth08:41 Chart 3: Interest rates and the Fed's tightrope11:28 Chart 4: What's really driving inflation (energy vs. shelter)14:11 The great gas-price freak-out15:52 Chart 5: The cost of missing the market's best days18:31 Chart 6: Global equity markets — guess the 15-year winner21:17 Chart 7: Global real estate — steady income vs. wild appreciation23:58 Chart 8: Gold — more volatile than the S&P 50026:26 Chart 9: The hidden tax drag of active mutual funds30:42 Recap: the takeaways from all nine charts31:52 Highlights: Dave's house-music pick (Mismo)32:53 Highlights: Heather's New York advisor & tax conferences34:20 Wrap up★ LISTEN ON ANY PLATFORM ★Apple Podcasts: https://podcasts.apple.com/us/podcast/playbook-of-the-wealthy/id1787630097Spotify: https://open.spotify.com/show/21LrI3IB2wMsOOJLiGsRJKWebsite: https://playbookotw.com

What are Buffered ETFs and should you have them in your portfolio? | EP074

What if you could own the S&P 500 and never see a negative year? That's the pitch behind buffered ETFs — and like every pitch that sounds too good, the fine print is where it gets interesting. The protection is real. So are the caps, the costs, and the ways to pick the wrong one. ★ WHAT YOU'LL LEARN ★ ▸ What a buffered ETF really is — the "defined outcome ETF" that tracks an index, protects the downside, and caps the upside ▸ How big this corner of the market has become: 420 products and $58 billion since 2018 ▸ How calls and puts actually create the buffer — walked through on a fake $100 stock, no rabbit holes ▸ The 100%-protection trade-off: your return never goes negative, but your cap lands around 6–7% and resets every year ▸ How a 10% or 15% buffer works in practice — what you really lose when the market drops 12% ▸ Why "the stock market averages 10%" is the most misleading stat in investing — and what a cap actually costs you in real, lumpy markets ▸ Dave's real-world strategy: splitting a retiree's S&P 500 allocation in half — roughly 75% of the upside with half the downside ▸ Buffered ETF vs. annuity: the liquidity difference, the fee difference (about 0.8% vs. up to 3.5%), and the one promise only an annuity can make ▸ How these products behaved during this spring's market temper tantrum ★ CHAPTERS ★ 00:00 Cold open: best annuity product? Buffered ETFs all day 01:02 If the market drops 20% right at retirement — what could you have done? 01:21 Welcome — today you become a nerd like us 01:40 Fair warning: this one's finance 4.0 02:02 The definition: what a "defined outcome ETF" is 02:58 Not new: 420 products and $58B since 2018 03:40 The catch — protection isn't free and upside gets capped 04:23 How they're built: calls and puts on a $100 stock 07:10 Packaging the buffer: how much insurance do you want? 07:33 Headline: Dave uses these, Heather doesn't (yet) 08:17 Client one: Sally Smith and 100% downside protection 09:37 How a 10% or 15% buffer actually works 10:12 Client two: Joe Sample wants upside with a safety net 11:25 Why "10% average returns" misleads — caps in real markets 11:52 Why these have been a hard sell in a three-year bull run 13:21 How Dave really uses them: split the S&P allocation in half 15:01 Heather pushes back — modeling the trade-off honestly 15:51 Who this is for (and who it definitely isn't) 16:39 "You just explained an annuity" — the comparison everyone asks 17:46 How buffered ETFs handled this year's volatility 18:38 The one thing an annuity does that this never will 19:24 Modeling buffered ETFs in a financial plan 20:29 What they cost: ~0.8% — cheaper than an annuity, pricier than an index fund 21:49 Final cautions: dual-direction products and buying the wrong one 22:45 A quick ask — like, comment, subscribe 23:17 The bow: terrified of volatility? This might be for you 23:53 What Would You Do? 24:00 Q1: Retiring in six months and scared of a drop — buckets, then buffers 26:14 Q2: My insurance broker wants my 401(k) in a fixed index annuity 28:41 Q3: 420 products — how do I pick the right buffered ETF? 30:54 Caps, resets, and the new-product-every-month strategy 33:21 Highlights 33:27 Highlights: Dave is back in the credit-card points game 35:23 Highlights: Heather survives the Scottsdale fair 37:03 Wrap up