Max Pashman, CFP®'s Linkedin Analytics

LA collected $110 million in parking ticket fines last year. Each day, drivers are presented with a choice. Every time you park, you’re presented with 3 potential outcomes: - Outcome 1: Don’t pay the meter, no ticket: $0 paid - Outcome 2: Don’t pay the meter, get a ticket: $60 paid - Outcome 3: Pay the meter: $2 paid Most people would rather have the third outcome. Why? The first choice is the least amount of money out of your pocket, but you're leaving yourself vulnerable to the risk. The second choice will result in the most money out, and you want to do whatever you can to avoid it. The third choice is a small payment, protecting you from the event altogether. People want the third choice because it minimizes risk by paying a premium now. They assess the risk and are willing to offload it with a payment. Welcome to Insurance 101

I've been doing financial planning for 10 years now. And I'll tell you something most advisors are afraid to admit. If you're running a business and not making enough profit to pay the bills and invest in your future? You should probably pause all investing and reinvest back into the business. I know. I preach building wealth. I preach long-term investing. I preach multiple income streams. You've heard it before: “Millionaires have 7 streams of income!” But if you actually study their story? They didn’t build 7 streams all at once. They built one strong primary stream first, usually from: – A W-2 job – A business That one reliable income source became the fuel for everything else. There’s no point chasing passive income if your active income isn’t even covering your life. So if your main income stream isn’t strong enough right now? That’s where the investment goes. Because investing in your active income is what makes long-term wealth, like passive income, possible. 1 reliable stream > 6 unreliable ones.

Financially confident people are 2.5x more likely to save regularly. Here are 10 ways to improve it: Like most things in life, what you say is what you become. Money is no different in this matter. Especially on a path of multiple decades. These 10 money flips can make the process easier. Which one is your favorite? - - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

Alright LinkedIn, which option would you choose: Post 1: 1,000 likes + comments, 10,000 views Post 2: 100 likes + comments, 100,000 views Assume both of these posts are targeted at your audience. Which option are you choosing?

Mortgage payments eat up 40%+ of income for new buyers. But there are ways to reduce this over time. Here's how: In today’s market, it’s only getting heavier. Between higher interest rates, inflated home prices, and the rising cost of taxes, insurance, and maintenance, locking into a 30-year mortgage can feel like a long financial leash. But you might have more flexibility than you think down the line. There are strategies that can help reduce the weight of your mortgage. Especially when in comes to monthly payments. The problem? Most people either don’t know they exist, or they misunderstand how they actually work. Let’s break down 3 strategies that every homeowner should know: 1. Overpaying your loan Extra payments reduce your loan’s principal... …but NOT your monthly payment. That’s where most people get tripped up. Yes, overpaying your mortgage helps pay it off faster But your monthly cost won’t go down. So if you're looking to reduce the term, this is path many take. But if you’re looking to reduce cash outflow today, this may not help. 2. Refinancing This creates an entirely new mortgage: - New rate - New term It can lower your monthly payment if interest rates have dropped significantly and you plan to stay in the home long enough to justify the closing costs. But refinancing doesn’t make sense for everyone. Especially in a high-rate environment like today. It's purely based on what happens in the climate. 3. Recasting This is the one few people talk about and it's underrated. Recasting lets you make a lump sum payment toward your mortgage and reduces your monthly payment by reamortizing the loan. You keep the same rate and term. But now, the balance is lower and so is the monthly bill. Perfect if you’ve received a windfall (bonus, inheritance, home sale, etc.) and want to lower your fixed costs without restarting your mortgage. Just note: - Not all lenders allow it - Minimum payment required - Small processing fee may apply - Be sure your emergency savings are intact first - Proceeding with this means locking up more liquidity There are lots of choices to choose from. Make sure you are weighing those options! - - - - - - - - - - - - - - - - If you are subscribed, you got this plus 3 visuals in the recent newsletter. For everyone else, don't miss out on the fun. Join now to receive the next one: https://lnkd.in/gJC9mTQH

What option would you rather have: Option A: $500,000 right now Option B: $1.3 million in 10 years. Which option are you choosing?

If your wealth depends 100% on one stock, that’s not investing. That’s a massive bet. But here’s the honest question: → Are you okay with that? Because everyone has a different appetite for risk. It could be the right answer for those with a high risk tolerance. But it could also be completely disaligned for others. And if you’re wondering whether you’ve got too much riding on one investment like a stock, real estate, or crypto, ask yourself this: “How comfortable am I knowing X% of my future is tied to the success or failure of this single investment?” Pause for a second. ☝️ Then read that again. That is not a hypothetical. That is reality kicking in and understanding your risk. There’s no one-size-fits-all answer to this question. Just a reminder: Concentration → More risk, more reward if you’re right Diversification → Spread risk, spread the potential reward Some of the biggest winners in history have come from concentration. But not without accounting the amount or losers along the way. (That's called "Survivorship Bias") Which is why some diversification can help mitigate that and be aligned to the risk level YOU are comfortable with. You can have both elements of concentration in some areas. While also incorporating diversification in other areas. There’s no universally correct answer to this one. But only your answer for YOU is the right one. Know what yours is. - - - - - - - - - - - - - - - Like this fun simple money visual? You'll love the weekly money visual newsletter. Next one shoots out soon! Subscribe here: https://lnkd.in/gJC9mTQH

Balance is overrated on the path to making income. Yet, it's underrated when accumulating wealth. Why? It's probably not wise to spend ALL right now. But you do not have to be saving ALL now too. I see this all the time with entrepreneurs I work with. There is a fine line when it comes to going all-in and balance. When it comes to revenue generation? Yes. This is when it's best to concentrate with your finances and time to achieve a desired income. But once you are ready to build wealth and your finances? You need a balanced approach to diversify. It's risk management 101.

Your impatience is costing you a fortune. You see the headlines like this 👇 "MARKET IS DOWN!" Then you check your portfolio immediately. →What do you find? →You’re in the red. →Suddenly, you’re thinking... → “I’m in the red. I’m doing this wrong!” Fast forward later? New headlines come up. "MARKET IS GREAT!" →You check your portfolio again. →You’re in the green. →But instead of cheering? →You’re comparing the top performers. → Suddenly you’re thinking. → “I’m in the green, but I’m doing this wrong!” In this mindset, it’s almost a lose-lose situation. →Never happy. →Always disappointed. →Now, in absolute regret. →You change everything This irrational behavior has been noted for decades. And it has noticeably cost investors over time. According to Morgan Stanley in their Guide to the Markets? Average investors have been getting only 3.6% from 2002-2021 Which means they’ve barely beaten inflation. One of the culprits? Most of the pinpoints come from trying to outsmart the markets. You might be able to win and beat the markets here and there. But over the long run, it’s an incredibly tough game to play consistently. And if it sounds like you, it might be hard to execute on your own. What you might need is actually: - A soundboard - A person to talk out your concerns - Someone who keeps you in check - A person who gives you peace of mind - A person who will keep you certain on your future You just happen to be reading his post. And if this sounds like your situation? You should reach out to him. - - - - - - - - - - - - - If you love visuals like this, you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

"My commissions are taxed at a higher rate" Not true at all, and here’s why: Selling Sally works hard at her job. She typically gets half in salary and half in commissions. She’s hit her quota and is excited for those commissions to kick in. But when she checks her paycheck, she notices something… Her commissions were "taxed" at a lower rate than her salary. At first, this seems great, more money in her bank account! But then, tax season arrives. After filing her taxes, her accountant lets her know she owes a massive tax bill! Now she's frustrated that she has to write a big check and wonders: Did something go wrong with her return? Did she get taxed more than expected? Did she get hit with some penalty? Nope. She owes more because her employer withheld less than she actually owed. And that's the key word here: withheld. Whenever you have monthly income like a salary, it’s considered “regular,” which gets taxed progressively like usual. But whenever you have irregular income like: Awards Bonuses Commissions Equity Compensation Or anything that doesn’t pay monthly …it’s considered “supplemental.” And these irregular forms of income are withheld at different flat rates by default. For commissions, the default withholding is 22% for the first $1 million and 37% for any amount beyond that (Federal rate for 2025). This is just withholding, not the actual tax owed. Since Sally makes $500,000, her actual marginal tax rate is 35%. But her commissions were only withheld at 22%, which wasn’t enough. So instead of getting a refund, she ended up owing the difference at tax time. She didn’t pay more for her commissions. She just had less withheld than owed. Big difference! - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this, you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

You have 1000's of tools in front of you: - ChatGPT - Robo Advisors - Budgeting apps - Investment calculators - YouTube finance channels - Reddit personal finance threads - Financial podcasts - High-yield savings accounts - Low-cost index funds - Tax-loss harvesting software - Brokerage platforms - Expense trackers - Automated savings tools - Credit score monitoring - Retirement calculators - Spreadsheets and templates - Books by top financial authors - Online money courses - Tax optimization guides - Stock screeners And yet, people still struggle to create wealth. Or really, understanding what to do with it after. Even with high-income earners, this is a struggle. Tools and info will continue to get better One thing remains true out there: Execution triumphs all. And sometimes, paying a premium for that accountability and advice is worth it to make that happen.

What option you rather have: Option A: $500,000 right now Option B: $1 million in 10 years What's your choice and why?

57% of workers are currently contributing to their 401(k). But most don't know if theirs is good. Here's what you should know: The truth is that not all 401(k)s are treated equally. Some are good. While others are disappointing. But the account is not at fault: it's how it's structured. Employers create them how they see fit. So, what are the top areas to look at? In my view: - Whether they limit your contribution limits - Do they offer a Roth option to you - Do they offer a match to you - Do they offer more than a target date - Do they offer low-cost index options - Do they offer an after-tax option that you can convert The more these boxes are checked off, the better. It's not about the account you have. It's how you use the account too! Do you have a 401(k)? - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this, you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

Bamboo takes 5 years to sprout from the ground. But then it takes 6 weeks after to grow 90 feet tall. Doesn't that sound like long term wealth? You start small with the root. You build onto it that can take years. And you see results thanks to what you've built. It seems so repetitive saying these things. But what is proven and true SHOULD be repetitive. Your future self depends on it after all. Build your money like bamboo. Build long-term. - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this, you'll love my money visual newsletter "Money to the Max". Subscribe here to get it weekly: https://lnkd.in/gJC9mTQH

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If you aren't a millionaire in your 30, you're a failure. ☝ This has been the sentiment I've been hearing all too much. I made this tweet and it somewhat blew up. Some interesting responses: "Easy to become a multi millionaire in your 30s, you had 15 years to get there assuming mid 30s. If age 35 and haven't hit $1m in networth (including spouse) then you are poor If you don’t hit it by 40 though your prob not gonna make it (including primaryres)" There's a difference between what is possible and what is easy. Anyone who actually did this will tell you it's hard to accomplish. Not to mention, very few people have actually done this. Unplug yourself, go outside, and touch some grass. What you see online does not represent reality.

LLCs are completely overhyped. Here’s what you actually need to know: I don't know who needs to hear this, but there are no huge tax secrets when you open and use an LLC. It stands for Limited Liability Company. Its job is to do one thing only: Separation of assets. So when it comes to legal and debt issues? Anything owned by the LLC is subject to those matters. And could keep your personal assets separated from them. However, within an LLC, you can choose how you want it taxed. Whether that is being treated as a: - Sole proprietorship (default for a single-member LLC) - Partnership (default for a multi-member LLC) - S-Corp (with a formal tax election) - C-Corp (with a formal tax election) This determines how your profits are passed through (or taxed at the entity level). The choice of which depends on multiple variables like: - Number of employees - Goals for company growth - Total revenue and profits for the year - Taxation preferences - Administrative complexity - Costs - And more But this is purely the tax election within the legal entity. The LLC itself just limits liability. Having one isn't some tax hack. The tax treatment depends on the election you choose. Big difference! - - - - - - - - - - - - - - - - - - - - If you love visuals like this, you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

40% of business owners aren’t sure they picked the right entity. Here's what you need to know about entity structure: When choosing a tax entity, you gotta choose with what aligns with you. Some of the characteristics include: → What legal protection is provided → Is the income earned a pass-through → Are there self-employment taxes → How much admin is there → What are the tax impacts → Is there double taxation → How much does it cost And so on. Consulting with the combo between a CPA and CFP is a great way to make sure you are on the right path here! What kind of business do you currently have? - - - - - - - - - - - - - - - - - - - - - - - - - - - - If you love visuals like this you'll love the weekly money visual newsletter! Be sure to be subscribed here: https://lnkd.in/gJC9mTQH

Shaq blew $1,000,000 in 30 minutes. But that mistake set him up for a $420,000,000 net worth. One of the best stories you'll hear. In Shaq's prime, he got his first endorsement deal. The payment was worth around $1 million. Finally, he got paid! So he started with buying a car $150,000 Mercedes Then he bought his dad a car $150,000 Mercedes (same model) Then he bought jewelry. Top tailored suits. Nice stuff. But of course, he didn't realize he still had payments to make The taxes for the payout. The fees for his agents. And so on. Until he got a call from his accountant. He told him he was $80,000 in the red! He describes this as the life-changing moment when his finances changed. Notice, it wasn't the moment he got all of his income. It was the moment he spent all of it. And soon he changed. And so did his habits. Fast forward today, he has a $420 million net worth. And he deployed his earnings in investments: - Stocks - Businesses - Real estate No matter where you are, everyone learns about money. And usually, the hard way is when it gets you. The art is not what you earn, but what you keep! How are you keeping yours?

I don't like absolutes, but if you're getting advice to liquidate your 401(k) to buy an insurance policy, here's some advice for you: RUN. When you do it, you're: - Paying a 10% penalty - Paying taxes on the proceeds - Have to do a mandatory 20% withholding - Paying a commission for the new insurance policy If someone recommends this, you're not talking to a fiduciary. You're talking to a sales rep.