Personal Finance Management

Retirement savers are getting a boost in 2026. The IRS just raised contribution limits, giving workers a little more room to build long-term security. Here’s the quick rundown: 🔹 Workplace plans (401(k), 403(b), 457) – New limit: $24,500 – Catch-up for 50+: $8,000 – Catch-up for ages 60–63: $11,250 🔹 IRAs – New limit: $7,500 – Catch-up: $1,100 These increases help your savings keep pace with inflation… but only about 14% of people actually max out their plans. One key update: if you earn more than $150,000 in 2025, your catch-up contributions must go into a Roth account — no upfront tax break, but tax-free withdrawals in retirement. If your employer offers a match, make sure you’re taking full advantage. And if you’re thinking about increasing your contributions for next year, these new limits give you more room to work with.

I sold my first company in 2020 for a life changing amount But I knew nothing about taxes and left money on the table Now that I'm running my second business, here are some personal finance things I now think about: • QSBS - Ensure your company is set up for QSBS as this allows you, your employees and your investors to pay no taxes on $10M each when you sell your company. • Your 83b Election - After you receive your equity, ensure you file an 83(b) election in the first 30 days and retain evidence of the submission. This could save millions in taxes! • Vesting - Make everyone vest equity, and longer than you think you need to. Standard vesting in 4 years & that's not enough to build a great company. But allow people 10-years post employment to buy their options. • Multiplying QSBS - Before raising a Series B, look into multiplying your QSBS exemption. QSBS is a $10M exemption per shareholder, but you can gift shares to family members or set up trusts to multiply it to $30, $40 or even $50M! • Secondaries - As the company does better, you may be tempted to pay yourself a very high salary. Don't do that - smaller secondaries (selling 1%-5%) every time you raise money is much more tax-efficient. • Exit Planning - Build the company like you're going to run it forever, otherwise you might just have to. Ironically, the best way to sell your business for a lot of money is to not be looking to sell your company. With that said, the hardest part is actually building a company that ends up being worth something... so that's where you should spend most of your time (vs optimizing your personal finances) Anything I'm missing? Leave a comment And if you like this type of content, I'm teaching a free workshop later this month on Personal Finance for Startup Founders: https://lnkd.in/e-3-meRG I'll send everyone who registers my free 2,500 word guide on optimizing QSBS!

No one likes talking about death, but here is something we must do, put together an “In case of Death Folder.” This isn’t inviting bad luck, it’s being responsible and kind to the people you love. ✅1. Key personal information Can be one page. • Full legal name • Date of birth • Address • ID numbers • Next of kin details When people are grieving, even basic things become hard to find. ✅2. Bank accounts and cash information List: • Bank names • Account numbers • Type of account • How funds can be accessed If there’s cash kept anywhere at home, state it plainly. ✅3. Investments and assets Include: • Investment apps and the asset inside, Stocks, mutual funds, treasury bills • Property documents • Business interests • Cooperative schemes Add contact persons if possible. Someone should know who to call. ✅4. Insurance and benefits Most benefits go unclaimed simply because no one knows they exist. List: • Life insurance policies • Employer benefits • Pension details • Any group cover Write down how claims work, even roughly. ✅5. Debts and obligations • Loans • Guarantees • Ongoing financial commitments Both what you owe and what’s owed to you. ✅6. Digital life Include: • Email accounts • Cloud storage • Social media preferences • Subscriptions You can state what should be deleted, transferred, or left alone. ✅7. Dependents and responsibilities Spell it out. • Children or dependents • School information • Care instructions • Trusted guardians or advisers Do not assume “they’ll figure it out.” ✅8. Legal documents If they exist, list them. • Will • Trust documents • Power of attorney And clearly state where the originals are kept. ✅9. A personal note This sounds small, but it matters. Write a short letter. Who to call first. What you want done immediately. Anything you feel strongly about. It helps your family breathe before the hard logistics begin. ✅10. Where this folder is kept This sounds obvious, but it’s often missed. Tell at least one trusted person: • Where the folder is • How to access it Planning for death is just planning for the people who survive us. You don’t need to finish it in one day. Start with one page. One list. That alone is already an act of love. You can update the folder periodically. SHARE for others to learn.

The first money decision I made as a mom was to write a will! Here’s why. There’s a total of Rs. 1.96 lakh crore worth of assets lying unclaimed, deposited in banks, invested in savings, mutual funds, and shares in India. The government currently has Rs. 84,000 Cr in “unclaimed shares” alone! Why? Because we don’t do proper nominations or succession planning. Assets get stuck in legal formalities. Families don’t even know where investments exist. Without legal heirs, money sits with the government. If you don’t want your wealth to end up the same way, here’s what you should do: → Always add nominees in MF/Stocks/FDs. → Keep a list of investments + passwords/private keys shared with your family. Include login credentials, nominee details, and relevant contact information. → Draft a succession plan covering every asset, especially financial instruments. These are the 4 ways to do succession planning: 1️⃣ Gift deed - You can transfer investments while you’re alive (through gifting units/shares). 2️⃣ Will - Your assets transfer post-death, optimal if you have a single child (less contestation risk). 3️⃣ HUF - Helps you pool and manage ancestral assets + investments, and get tax benefits. 4️⃣ Trust - Useful if you have large, scattered, or international assets. It doesn’t matter if you're worth 5L or 50Cr. If your kids fight over your property or your money ends up with the government, everything you built is meaningless. Do you think the same? Follow Neha Nagar to master your money. #NehaNagar #willplanning #successionplanning

On Monday, I had an insightful Retirement Planning session with Christine Karoki, DipCII, a pensions expert from the Association of Kenya Insurers [AKI] . These were my key takeaways: 1. Start by defining a clear retirement goal. Estimate your monthly expenses for 30–40 years post-retirement, include an inflation factor, and use online tools to work backwards to calculate your monthly savings target. 2. In your 20s and 30s, focus on growth assets that have the potential for higher returns. As you approach your 40s and beyond, transition to more moderate risk investments to protect your accumulated savings. 3. When switching employers, having an Individual Pension Plan (IPP) ensures that contributions continue seamlessly. 4. Carefully select an Individual Pension Plan provider by conducting due diligence. To confirm a provider’s legitimacy, visit akinsure.com 5. Once retired, you can convert your savings into an income stream through annuities or income drawdowns, which act as income replacement systems. 6. In Kenya, annuities and drawdowns can be accessed only from the age of 50. 7. The retirement industry in Kenya is valued at approximately KES 2 trillion, with much of the funds invested in fixed-income securities to maintain stability. 8. Statistics show that after age 60, around 40% of retirement funds may be needed for healthcare and caregiving expenses. 9. Consider contributing to a post-retirement medical scheme. These are relatively new schemes that build you a fund that you can access after retirement and use to invest in medical insurance or cover healthcare expenses after retirement. 10. Common Mistakes to Avoid: - Avoid interrupting your retirement savings, as it hampers compounding. - Regularly evaluate your retirement plan to track growth. - Don’t overlook or prematurely withdraw benefits that are meant to support you in the long term. For more information, visit akinsure.com

Can you explain what happened here? If you can't, your business may be in BIG trouble. If you work in strategic finance, understanding how to comprehend + explain financial data is not a nice to have...it's a MUST. It doesn't matter whether you are presenting to leadership...the board of directors...or investors. If you don't have a tight grip on your data, you'll be faced with some catastrophic surprises. Let's learn how to interpret + present this by walking through this report together 👇 ➡️ PROFIT & LOSS SUMMARY Your P&L might look decent at first glance... We beat our bottom line net income by 14% 🙌 But a closer look reveals some important details... - Revenue is down 10% ($50K below budget) This is a pretty alarming metric and may mean that your assumptions are too aggressive here. Was it because your conversions rates were lower than expected? Was churn higher than expected? - COGS is actually BETTER than expected by 40% This makes sense...your revenue was lower, so your COGS should also be lower. But there's something more interesting to address here... your gross margin was 80%, compared to your projected 70%. While the variance is favorable it highlights an important question - do you have a strong grip on your unit economics? - Operating expenses are 10% favorable compared to budget. That's good...but why? Which accounts? Was it timing? Was it a change to your plans? - Net Other Income was -$10k compared to your projected +10k. Accounts here typically relate to interest income/expense, depreciation/amortization, and non core business activity. Although $10k may not seem like a lot, it warrants an important analysis This all leads to a $15k favorable net income, which is 14% higher than expected. All done with our analysis? Not quite... We've analyzed the PROFITABILITY of our business, now it's time to analyze our CASH FLOWS ➡️ CASH FLOWS SUMMARY This is where things get puzzling: - Collections are down $70k (78% below target 🤯 ) - Inventory up by $20k over budget - Total cash flows is $35k below budget Woah! We beat earnings but missed our cash flows by 27%?? Believe it or not, this story happens all the time...and it's up to you to see the forest beyond the trees and take action QUICKLY. ➡️ PUTTING IT ALL TOGETHER Your P&L is looking OK, but there are some strong indicators that you don't have a grip on your unit economics, and your revenue projections may be a bit overstated. But the biggest issue by far is your cash flows. You were supposed to collect $90k more than you invoiced this month but instead you only collected $20k. If you have $1m in the bank that may not be too material. But if you have $200k in the bank? Now things get more dangerous. That's why it's CRUCIAL to review this report each and every period - you don't want to be taken by surprise. === How would you interpret these results? What actions would you take? Share your analysis in the comments below 👇

How to Read a Cash Flow Statement Like a Pro Many professionals stick to the P&L and balance sheet. But the cash flow statement often hides the truth about a company’s financial health. Here’s how to break it down step by step: 1. Start with Operating Cash Flow - This shows how much cash the core business is generating. - Healthy companies should consistently have positive OCF. - If profits are rising but OCF is falling, dig deepe, it may be earnings manipulation. 2. Move to Investing Cash Flow - Look at where the company is investing its money. - Negative ICF is not always bad; it often means the company is investing in growth (like new plants, tech, or acquisitions). - But frequent asset sales boosting ICF can signal trouble. 3. Check Financing Cash Flow - Tells you how the company raises and returns capital. - Continuous inflows from debt/equity issuance may suggest dependence on external funding. - Outflows in the form of dividends or buybacks show shareholder returns. 4. Focus on Free Cash Flow (FCF) - The cash left after operating and investing activities. - Positive and growing FCF indicates sustainability and long-term strength. Bottom line: Accounting profits can be dressed up, but cash rarely lies. Master the cash flow statement, and you’ll start seeing companies in a completely different light.

I’ve tested these 14 tax strategies for over a decade. They are the most reliable for keeping more money in your pocket: For Real Estate Investors: Cost Segregation Studies: These remain valuable for accelerating depreciation on high-value assets, even with declining bonus depreciation rates 1031 Exchanges: Still available for deferring capital gains when selling properties. Real Estate Professional Status (REPS): This status continues to allow investors to deduct rental losses against active income Self-directed IRAs: These remain a viable option for investing in real estate while deferring taxation. For Business Owners: S Corp Tax Election: This strategy for reducing self-employment taxes is still applicable. QBI Deduction: The 20% Qualified Business Income deduction remains available for pass-through entities Home Office Deduction: Still available for those who use part of their home exclusively for business Hiring Family Members: This strategy for income shifting continues to be valid. Retirement Plan Contributions: Maximizing contributions to Solo 401(k)s and SEP IRAs remains an effective tax-reduction strategy For High-Income Earners: Municipal Bonds: These continue to provide tax-free interest income. HSAs & FSAs: These tax-advantaged accounts for medical expenses are still available. Charitable Giving Strategies: Donating appreciated assets remains a tax-efficient giving method. Tax-Loss Harvesting: This strategy for offsetting capital gains is still applicable. Deferred Compensation Plans: These plans continue to be useful for managing tax brackets. Don’t wait until your tax bill arrives—fix it before it’s too late.

🎓 Earlier this week in my Harvard Business School course, Demystifying the Family Enterprise, we studied a case I wrote that focused on the importance of estate planning — "Ken Talbot: A Life Well Lived." Ken Talbot built a remarkable business and had a deep commitment to giving back. But when he passed unexpectedly, his estate plan hadn’t kept up with his success or his intentions. What followed was a decade of legal battles, fractured relationships, and a legacy delayed. ➡️ The lesson is simple — and it applies to everyone, not just those with extraordinary wealth. No matter your age or financial situation, you need a will. Estate planning isn’t about predicting the future — it’s about protecting the people you love from uncertainty. It’s about clarity, not control. And it’s one of the most meaningful acts of stewardship we can offer. From the case and my broader research, a few principles stand out: ✅ Have a will — even a simple one is better than none. ✅ Keep it current as life, family, and finances evolve. ✅ Communicate your intentions early and openly — silence creates confusion. ✅ Choose your trustees and executors with care — expertise matters more than familiarity. Having these conversations may feel uncomfortable, but the hardest discussions are often the most loving ones. ❓ If tomorrow came sooner than expected, would your loved ones know your wishes? #EstatePlanning #Legacy #FamilyEnterprise #Stewardship #WealthWithPurpose

Recently, one of his friends passed away unexpectedly , and he witnessed how painful his friend’s family went through it. These past weeks , it has given him some space to reflect and reevaluate what is really important in life. And because of this certain questions have begun bubbling to the surface. ❤️Are my loved ones protected? ❤️What if something were to happen to me tomorrow? ❤️Should I have a plan in place for the future? With so much uncertainty and 3 minor children , it's the time to prioritize creating an estate plan. When it comes to planning for the future, most of us focus on goals like career advancement, financial stability, and personal achievements. However, one crucial aspect that often gets overlooked is estate planning. Frequently, many may have the misconception that Estate planning is for the wealthy or elderly. But the true fact is it is for anyone who wants to secure their loved one's future. Estate planning is about providing peace of mind by safeguarding your family's financial well-being and ensuring your wishes are carried out. Here are a few factors you could consider when embarking your estate planning . 📌Allocating all your assets and liabilities ✳️This includes all your finances documents, like bank account statements and investment statements, also including mortgage and debts as well. 📌Deciding who will act in crucial role ✳️This position includes some who serve in your best interest if you become incapacitated, and an executor, to administer your estate. 📌Pick who will be the guardian for your minor children ✳️Select a capable and trustworthy person to look after your children's welfare. 📌How’s you like your assets to pass to your heirs or preferred charities ✳️Specific instruction can be given on the type of gift to distribute, to whom and in what proportions. 📌 Who is your beneficiaries ✳️That is people who will benefit from your estate plan. They can be anyone, not necessary family members. 📌Find the trusted professional to assist you ✳️You want someone with whom you feel comfortable and who has the expertise to advise you on these matters. There’s no denying that Estate Planning seems like a daunting chore, but it’s something we all need to face. By taking some important steps now, you can make things easier on your family, allowing them to focus on the most important thing when the time comes, like spending quality time together and honoring the life and legacy of your loved ones. With that in mind, take some time to start thinking about your estate plan and the decisions you want to make while you’re able. #Vivfpjourney #financialplanning #estateplanning