Prairiewood Wealth Management

11/02/2026

Are you a business owner? If so, are you making a common tax mistake that can cost business owners thousands of dollars?

Most business owners have never looked at Form 8960 in their tax return, which can be a big mistake. In this month’s blog post and podcast episode, we discuss the net investment income tax, who it applies to, and the mistake we frequently see on business owners’ returns.

Tax software includes income and capital gains from private businesses in the net investment income calculation by default. However, if you “materially participate” in the business, the related income isn’t subject to the net investment income tax.

Unfortunately, backing that income out is often a manual step, so if nobody makes the adjustment, the owner pays a tax that was never intended to apply.

If you own a business or you are thinking about selling one, this month’s podcast is for you.

Thanks for listening!
https://pw-wm.com/podcast/ep-62-the-tax-mistake-that-costs-business-owners-thousands/

Learn more about the net investment income tax and the costly mistake that is frequently made by business owners.

10/01/2026

Independent – A simple word that can make all the difference. What does it mean, and how can you tell whether an advisor has the freedom to put you first?

One major barrier to independence is that many financial firms create their own proprietary products to use with clients while others have revenue sharing arrangements with third party investment companies.

These types of products and arrangements increase the fees earned by the advisory firm and often restrict the advisor’s freedom of choice for clients.

In this month’s blog post and podcast episode, we cover what it means for a financial advisor to be independent. We walk through four conflicts that can compromise independence, explain why the choice of custodian matters, and share the questions we believe everyone should ask before engaging an advisor.

Thanks for tuning in!

Independent – A simple word that can make all the difference. What it means and how to tell if your advisor has the freedom to put you first.

09/01/2026

Did you know that if you hold a large, concentrated stock position, you may be able to generate income from it while creating a disciplined plan to manage your risk?

For many employees of Microsoft, Apple, Nvidia, Amazon, and other companies who have experienced a large increase in stock price, thoughtfully managing concentration risk is one of their most important financial planning priorities.

In this month’s blog post and podcast episode, we cover covered calls which is an options strategy that allows individuals with concentrated stock positions to get paid for committing to a risk management plan they were already willing to follow.

We walk through how the strategy works, the advantages and limitations, a real-world Microsoft example with actual numbers, the tax implications, and when the strategy does and does not make sense.

If you or someone you know holds a large position in a single stock, especially employer stock, this month’s update is worth checking out.

Thanks for tuning in!

08/01/2026

Is your financial professional legally held to the highest standard?

Did you know that there are two primary legal standards that govern the financial industry - one for professionals who sell products, and a higher standard for those who provide advice?

In this episode, we cover the history of the financial services industry including how it started as a sales-first industry where financial professionals worked for a firm and focused on selling the firm’s products. Over the years, the industry has expanded to include advice-focused, independent advisors who work directly for the client.

While the legal standard that governs the relationship between the financial professional and the client differs depending on the type of relationship in place, many individuals aren’t aware that a difference exists.

In this podcast, we cover how to identify which standard applies to your financial professional, and why we recommend that families who are searching for comprehensive, financial advice choose an advisor that is held to the fiduciary standard 100% of the time.

Thanks for tuning in!

Does your financial professional work for you or someone else? How to identify advisors who are required to put your first at all times.

07/01/2026

What if the government handed your newborn child or grandchild $1,000 to start building their financial future? Starting July 4, 2026, that is exactly what Trump Accounts do for children born between 2025 and 2028.

In this month's blog post and podcast episode, we break down how Trump Accounts work, what the numbers look like if you contribute $5,000 per year from birth through age 17, and where they fit alongside Roth IRAs, 529 plans, and custodial accounts in the recommended order of priority for child savings.

We also cover the important planning opportunities that arise when the beneficiary turns 18, the concerns every family should evaluate before opening one, and a step-by-step guide for how to get started.

If you have children or grandchildren, this month's blog and podcast is worth your time.

Thanks for tuning in!

Trump Accounts are available July 4, 2026. Here's what parents need to know about these new tax-advantaged savings accounts for children.

06/01/2026

Did you know that the legal standard to be an investment advisor representative is passing a 130-question multiple-choice exam with no educational prerequisites and no limit on number of retakes*?

Further, getting 71% of the questions correct qualifies as a passing grade.

Most consumers assume that if someone is legally licensed to give investment advice, they have completed rigorous education and training, have demonstrated advanced knowledge by passing exams that test the real-world application of concepts, and have a minimum level of supervised experience.

The answer is much more complicated, and the truth is that there can be significant variation in the education, experience, and capabilities of financial advisors beyond the basic, legal threshold.

In this month's blog post and podcast episode, we break down the minimum standard, and why it is important for individuals to understand their advisor’s qualifications.

Then we consider three designations that genuinely raise the bar: the CPA, the CFP®, and the CFA®. Each requires a significant combination of education and professional experience, rigorous multi-part examinations, and ongoing ethics standards. We also share the questions everyone should ask before engaging a financial advisor.

If you want to make sure your advisor's qualifications match the complexity of your financial situation, this month's update is for you.

Thanks for tuning in!

* Retakes are subject to a waiting period and additional fees.

Does your financial advisor’s experience and ability match the complexity of your financial life? Learn what the legal minimum requires and which credentials truly raise the bar.

05/01/2026

Most people know you can contribute up to $24,500 to a 401(k) each year. Far fewer know the IRS actually allows total contributions of up to $72,000.

The mega back-door Roth strategy is designed to take advantage of that gap by allowing high-income earners to contribute up to $47,500 of additional after-tax dollars into a Roth account each year, with no income limits and all future growth permanently tax-free!

In this month's blog post and podcast episode, we break down exactly how the strategy works, what plan features are required, and what lifetime tax savings can look like when the strategy is executed consistently over time.

If you've maxed out your standard 401(k) contributions and are looking for meaningful ways to keep building tax-free retirement savings, this month’s blog and podcast is worth checking out.

Thanks for tuning in!

The standard 401(k) contribution limit most people know is only a fraction of what is allowed. Learn how to maximize your tax-free savings!

04/01/2026

Ever wonder why two financial advisors can offer similar services but charge very differently and why it matters?

In this episode, we break down the five most common advisor compensation models: commissions, hourly fees, flat fees, retainers, and AUM-based fees. We explain the incentives each structure creates and why the compensation model your advisor uses matters far more than most people realize.

We also cover why low advertised fees can mask significant hidden costs, what questions to ask before engaging any advisor, and why alignment between your success and your advisor's compensation is an important feature of a healthy advisory relationship.

If you're evaluating a financial advisor or wondering whether your current arrangement is truly working in your favor, this month’s podcast is for you.

Thanks for tuning in!

Confused about how financial advisors get paid? Learn the five most common compensation models and how they impact the advice you receive.