Cornerstone Life

04/06/2026

Why my 100-pushup plus a day habit is actually a wealth strategy.

Body: Two weeks ago, I could barely squeeze out 20 pushups without a break. Recently I just hit a set of 40.

I’m 245 lbs now and started at 248lbs—so trust me, gravity is not doing me any favors. But I’m doing the work because of The Law of Accumulation.

Finance is the same way. Most people wait for the "perfect" time to invest, like waiting to be "fit enough" to go to the gym.

The first week: It hurts. You’re sore. You see zero results in the mirror. (This is the "investing is boring" phase).

The 4th week: You’re doing 115 reps instead of 100. Your "sets" are getting bigger. (This is the "compounding" phase).

Whether it’s reps or returns, the magic isn't in the intensity—it’s in the streak. The Question: What’s one small "financial rep" you’re committing to this month? (Automating $50? Maxing the 401k? Cutting the subscription you don't use?) Let’s hear it below!

04/03/2026

Ever look at your brokerage statement or 401k/IRA/Roth and think, "I hope this is doing what it’s supposed to do?" 📉📈

Most people have a collection of stocks and bonds, but not necessarily a strategy. Over time, portfolios can get "drifty"—maybe you’re taking more risk than you realize, or you're paying hidden fees that eat into your retirement.

I want to help you get some clarity. This month, I’m offering complimentary Portfolio Deep-Dives.

I’ll take a look at your current holdings and show you:

Your actual risk score (vs. what you think it is).

A breakdown of your stock-to-bond diversification.

Any "red flag" high-cost funds.

As a fiduciary, I’m bound to put your interests first. One of the most common issues I see is "overlap"—owning five different funds that all hold the exact same stocks.

Free Portfolio Stress Tests. We’ll look at how your current stock and bond mix would hold up in a market downturn and identify where you can optimize for efficiency.

The market has changed a lot in the last year. Your portfolio should change with it.

Here is my calendar link https://calendly.com/darrellellis/general-meeting

Or you can just DM me.

03/23/2026

What happened to $1 since 1950?

$1 in 1950 ≈ $13–$14 today

That’s inflation.

But here’s what that actually looks like in real life:

• Bread: $0.14 → $2–$3
• Milk: $0.83 → $3.50–$5
• Gas: $0.27 → ~$3

So far… pretty consistent with inflation.

New Car
• 1950: ~$1,500
• 2026: ~$35,000–$50,000
Cars have risen much faster due to technology, safety, and regulation.

But then look at this:
• Home: $7,300 → $400,000+
• Rent: $42/month → $1,200–$1,800
• College (tuition): ~$600/year → $10,000–$30,000+/year

That’s not just inflation… that’s acceleration.
Most people think rising costs are one big category.

They’re not.
Some expenses rise steadily (like food and gas)
Others outpace everything (like housing, healthcare, education)

Why does this matter?
Because if your financial plan only accounts for “average inflation”…
you may be underestimating your biggest future expenses.

Simple way to think about it:
Inflation tells part of the story.
Lifestyle costs tell the rest.

What is your plan for inflation? When projecting the cost of living for retirement, we often think in today's dollars rather than what it will be in 20-30 years. Taking these things into consideration makes a difference.

03/18/2026

“Should I contribute to a Roth IRA, Traditional IRA, 401(k)… or just invest in a brokerage account?”

It’s one of the most common questions I get…

And the honest answer is: it depends on your situation.
But here’s a simple framework with the most common tools.

401(k) (often where people start—especially with a match)
If your employer offers a match, this is usually step one.
Why?
Because that match = instant return on your money.
• Reduces taxable income today (traditional)
• Automated investing
• Strong foundation
At minimum: contribute enough to get the full match

Roth IRA (Your tax-free bucket)
One of the most powerful tools available.
• Tax-free growth
• Tax-free withdrawals (if structured properly)
• No required minimum distributions
Great for flexibility in retirement

Traditional IRA / Pre-tax accounts (Tax-deferred bucket)
Helpful if you want a tax break now.
• Potential deduction today
• Taxes deferred until later
• Can reduce current taxable income
Best if you expect lower taxes in retirement

Brokerage Account (The often overlooked tool)
This is where a lot of people miss opportunity.
• No contribution limits
• Full liquidity (access anytime)
• Capital gains tax treatment (often more favorable than income tax)
• No early withdrawal penalties
This becomes your “bridge account”
(especially if you want flexibility before retirement age)

The bigger picture most people miss…
It’s usually not about choosing one…
It’s about building tax diversification + flexibility.

Because in retirement, you don’t want to ask:
“Can I access my money?”
You want to ask:
“Which bucket should I pull from for the best outcome?”

Simple strategy:
• 401(k) → with match
• Roth → Tax-free income later
• Traditional → Tax deferral today
• Brokerage → Flexibility and access anytime

The goal isn’t just saving…
It’s building control, flexibility, and efficient income over time.

Other great options are a properly structured whole life policy as a good storage place for capital that can replace some of the fixed (bond and cash) side of your portfolio with some great tax benefits and protection for your family and business. A Fixed Index Annuity can be a great bond alternative also and provide income for life. There is no one-size-fits-all plan. Each business owner and family has different needs and goals and you should have a plan that lines up with your individual situation and be sure you understand how it works.

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03/18/2026

Solo 401(k) vs. SEP IRA — Which is Better for Business Owners?
If you’re self-employed or own a small business, you’ve probably heard of both.
But they are not interchangeable.

Here’s a simple breakdown:

SEP IRA (Simplified Employee Pension)
Think of this as the easy, flexible option.
✔️ Employer contributions only
✔️ Up to ~25% of compensation
✔️ Very simple to set up and maintain
✔️ Great for variable income years
Tradeoff:
No employee contributions = less control over how much you can put away

Solo 401(k)
This is the maximization tool for owner-only businesses.
✔️ You contribute as BOTH employee + employer
✔️ Much higher contribution potential at lower incomes
✔️ Roth option often available
✔️ Can include loans (in many plans)
Tradeoff:
A little more administration once assets grow

Why this matters

Two business owners making the same income could have very different retirement outcomes depending on which plan they use.
Especially in the early years…
The Solo 401(k) often allows you to put away significantly more.
Simple rule of thumb:
• Want simplicity → SEP IRA
• Want maximum contribution + flexibility → Solo 401(k)

The goal isn’t just to save…
It’s to use the right vehicle for your situation so your money is working as efficiently as possible. There are many other options for situations where you can contribute far more if needed.

03/16/2026

Retirement Isn’t One Phase… It’s Three.
Many people plan for retirement as if spending stays the same every year.
In reality, retirement usually happens in three phases:

The “Go-Go Years” (Early Retirement)
This is when people are most active. Travel, hobbies, time with grandkids, and new experiences.
Spending is often higher than expected during this stage.

The “Slow-Go Years”
Life begins to slow down a bit. Travel becomes less frequent and day-to-day life becomes more routine.
Expenses often level off or decline slightly, but healthcare costs may begin to increase.

The “No-Go Years”
Later retirement typically brings reduced activity and potentially higher medical or care expenses.
Spending patterns shift again.

Why this matters for retirement planning
Many strategies assume a flat withdrawal rate (like the traditional 4% rule).
But real life rarely follows a straight line.

A well-designed retirement plan should consider:
• Income flexibility across different phases
• Social Security timing
• Guaranteed income sources
• Healthcare and long-term care considerations
• Tax efficiency over decades

The goal isn’t just to accumulate money.
It’s to create a plan that provides reliable income throughout every stage of retirement.

Because retirement isn’t just about the number you retire with…
It’s about how your income supports the life you want to live.

03/13/2026

2026 Retirement Account Limits Are Out

Each year the IRS adjusts retirement contribution limits for inflation, and 2026 gives savers a little more room to build for the future.
Here are some of the key numbers to know:

401(k), 403(b), and most 457 plans
• $24,500 contribution limit
• $32,500 if age 50+ (includes an $8,000 catch-up)
• Ages 60–63 may contribute up to $35,750 due to enhanced catch-up provisions under SECURE 2.0

Traditional & Roth IRAs
• $7,500 contribution limit
• $8,600 if age 50+ (includes a $1,100 catch-up)

Total 401(k) contribution limit (employee + employer)
• Up to $72,000 in 2026 (more with catch-ups)

Other options are available for those in high-earning, tax-burdened situations.

A couple of thoughts when I see these numbers:
Most people focus on investment returns, but one of the most powerful levers in retirement planning is simply how much you consistently save.
Increasing contributions over time — even by small amounts — can make a significant difference over a 20–30 year career.

And once retirement arrives, the conversation shifts from how to build the assets… to how to turn them into income that lasts.

Both phases matter.

If you're a business owner or professional, it may also be worth exploring additional retirement plan structures that allow even larger contributions depending on income and business structure.

The limits go up each year — the opportunity to use them is up to us.

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03/13/2026

The 4% Rule: A Helpful Guideline… But Not the Whole Plan

Many people nearing retirement have heard of the 4% rule.

The basic idea is simple: withdraw 4% of your retirement savings in the first year, and then increase that amount each year to keep up with inflation.

Historically, this approach was designed to help a portfolio last around 30 years.
The research behind it came from financial planner William Bengen, and it has served as a helpful starting point for thinking about retirement income.

But real life is rarely that simple.

One of the biggest challenges is something called sequence of returns risk. If the market drops early in retirement while you are taking withdrawals, the combination of losses and spending can put real pressure on a portfolio.

Another thing to consider is that spending in retirement rarely stays the same every year. Many people spend more in the early years while they are active, less in the middle years, and then more again later as healthcare expenses increase.

And of course, many people today may need their retirement income to last longer than 30 years.

Because of this, many planners today see the 4% rule as a guideline, not a complete strategy.

In practice, retirement income planning often works better when a few different ideas come together. That might include:
• Adjusting withdrawals when markets are up or down
• Structuring investments in time-based “buckets”
• Being thoughtful about taxes when drawing income
• Creating reliable income sources that aren’t dependent on the market

One tool that can play an important role here is an income annuity.
When used appropriately, an income annuity can provide guaranteed income for life, helping cover core expenses like housing, food, or utilities. That can take some pressure off an investment portfolio, especially during market downturns.
By pairing reliable income sources — like Social Security and income annuities — with investment assets, retirees can often create a more stable and sustainable income plan.

Researchers like Wade Pfau have written extensively about how combining strategies often leads to better retirement outcomes than relying on a single rule.

In the end, the real question may not be:
“What percentage should I withdraw?”

But rather:
“How can I structure my income so my money lasts as long as I do?”

Because retirement planning isn’t just about building a portfolio.
It’s about creating income that supports the life you want to live.

03/05/2026

Whole Life companies are having a great year in dividend declarations. Mass Mutual is added to that list with $2.9 billion in dividends to be paid out. They are one of only 6 whole life companies we will work with. A proven track record matters. They have paid a dividend every single year since 1869. Policyholders get to participate in those profits and the financial strength of a very well-run company.

All-time-high earnings, higher capital and high dividend underscore the continuing firepower of the US mutual in the life and wealth markets

03/03/2026

The difference between marginal tax rate and effective tax rate.

As you’re working on your tax return, you’ll want to know your marginal and effective tax rates. Learn how to calculate each.

02/23/2026

Not every failure is bad.

Some failures come from carelessness. Others come from courage. Learning the difference matters.
Healthy leaders and organizations know how to distinguish between blameworthy mistakes and praiseworthy attempts that lead to discovery and improvement.

If you’re ready to stop fearing failure and start leveraging it for growth, get your copy of How to Get a Return on Failure by today — and learn how to turn setbacks into stepping stones.

Purchase your copy today: www.returnonfailurebook.com

02/19/2026

Order of Payout in a Corporate Bankruptcy (Priority of Claims)

Secured Creditors (Paid First)

These creditors have collateral backing their loans.

Examples:

Secured bondholders

Banks with collateralized loans

Mortgage lenders

They have the highest claim on assets.

Unsecured Creditors

No collateral, but still legally owed money.

Examples:

Debenture holders (unsecured bonds)

Suppliers (accounts payable)

Employees (wages owed)

They get paid before any stockholders.

Preferred Stockholders

Preferred shareholders have:

Priority over common stock

But still behind all creditors

They may receive:

Liquidation preference (if assets remain)

Common Stockholders (Paid Last)

Residual owners of the company.

They only get paid:

If anything is left after ALL debts and preferred claims are satisfied.

Often receive nothing in bankruptcy.