#39 | Generational Wealth and CBD Entrepreneurs feat. Brandon Neely & Melanie Kossan

Practical Tax with Steve Moskowitz

What are both the practical and strategic advantages of financial planning for young children, and how are women CEOs faring in the world of CBD start-ups? Episode Transcript Intro: Welcome to the Practical Tax podcast, with tax attorney Steve Moskowitz. The Practical Tax podcast is brought to you by Moskowitz, LLP, a tax law firm. Disclaimer: The information contained in this podcast is based upon information available as of date of recording and will not be updated for changes in law regulation. Any information is not to be considered tax advice or legal advice and does not form an attorney/client relationship. Further, this podcast may be construed as attorney advertising. You should see professional consultation for your individual tax and legal situation. Chip Franklin: Welcome to yet another edition of Practical Tax, with tax attorney Steve Moskowitz. Steve, you're looking well my friend. Steve Moskowitz: As you Chip, thanks so much. Chip Franklin: There's a lot to talk about with taxes. I know you see tax implications in almost every human behavior, which makes sense. Steve Moskowitz: Of course. Chip Franklin: It is, right? Joining us right now, again, this is an interesting guy. Brandon Neely is not only a financial planner, but he's got an interesting niche, and he joins us here on the Practical Tax Show. Brandon, welcome. Say hi to Steve. Brandon Neely: Hey Steve, thanks for having me. Steve Moskowitz: Hey Brandon, how are you doing? Brandon Neely: Good... go ahead. Chip Franklin: Let's start right away, if we can, with the whole concept of financial planning, and this goes out to both of you guys. I know that they say, "Start young." Are there any other advantages to starting a financial plan for small children? Maybe Steve, you can also explain why the IRS now wants us to have social security numbers out of the womb. Start with you, Brad. Steve Moskowitz: The government likes keeping track of us. Chip Franklin: Yeah. Steve Moskowitz: As far as doing that, for example, if mom and dad have a business, and they employ their child under the age of 18, they don't have to pay social security taxes on that. That's just a little wrinkle in the law for employing your kids under age 18. Chip Franklin: Trump's dad did that, didn't he? If I recall correctly. Steve Moskowitz: They take advantage of every law, which we all should. Chip Franklin: Right. Steve Moskowitz: The other thing is, the banks always have these posters up. If you take a kid, and the day that kid is born, you have an account set up for him, and you make little deposits in there, but regular deposits, by the time that kid has graduated from college, that account can be enormous. Instead of coming out of school saying, "Oh, how am I going to pay all these? That's for my basket weaving classes and these other things," the kid says, "Hey, look at me. I have a big, fat bank account. I can do what I want. I'm not forced to take a job to pay my student loan, and my rent, if mom and dad kick me out." The bottom line is, and I'd love to say, "I just figured this out, get your pencils out," but the financial people over and over and over again have said that if you have a small amount... but regular, that's the trick. It's like exercise. It's got to be regular. There'd be a tremendous amount here, then we can get into, how do we invest the funds, and how much is conservative, and how much is aggressive? I won't even get into that part. Not to mention Chip, I'm always preaching about the benefits of companies having pension plans. How much more if the kid comes to work for mom and dad, and they say, "As part of being an employee here, now you're entitled to the pension plan." It's just tremendous savings. To me, that's a no brainer. Chip Franklin: Brandon, you've obviously been dealing with this a lot, too. What's your take? Brandon Neely: I agree with him.