What would life be like if you could get to the essence of who you are and what you believe? In other words, why do you do the things you do? What if you could focus on doing what you are best at and love to do the most?

1. Exterior Balcony and Columns
W
98 Westlake Malibu Lifestyle MAY 2015 www.wmlifestyle.com MAY 2015 www.wmlifestyle.com Westlake Malibu Lifestyle 99
MONEYSMART/May 2015
For some, I included, we learned the hard lessons of life. My parents
told me not to touch the stove when it’s hot, but I had to touch
the stove to realize for myself I would get burned. Some of us had
great financial role models (and I was one of those) to educate us
on finance, teaching that easy money and plenty of credit do not
encourage responsible lifestyles. Just ask a college freshman how
easy it is to get a credit card. Then ask their parents how hard they
have to work to pay it off. It’s a great lesson for us all.
Today our country enjoys being the second largest economy in
the world with a GDP of $17 trillion. China is third with a GDP
of $9.2 trillion and Europe is number one when you add up all 28
nations; they have a combined GDP of $18 trillion. Yet, China’s debt
is now double its GDP and our debt in the last six years has gone
from $9 trillion to over $18 trillion and growing. And Europe will…
Just think Greece and the answers will fall in place.
Recently, a budget request was submitted to congress for the fiscal
year for 2016. The budget request also starts to point in the direction
that the government will be going in order to raise the revenue they
will need to provide for the promises made to retirees and folks
unable to meet their own needs to sustain their lifestyle.
Some will tell you, we have a spending problem. Others will argue,
we have a revenue problem. In reality, we have a math problem.
What would life be like if you could get to the essence of who you are and what you believe? In
other words, why do you do the things you do? What if you could focus on doing what you are
best at and love to do the most? What would our nation and our economy look like if we had
more makers than takers? More people inspired and passionate about who they are and what
they do. I can only imagine the feelings and the unbelievable success you would enjoy and our
nation and economy would benefit from if you had the resources to focus on your passion.
According to Economics Professor Laurence
Kotlikoff at Boston University, the “fiscal
Gap” for the whole country is $221 Trillion.
Currently Medicare and Social Security are
$126 Trillion and growing.
If our GDP is $17 Trillion and the Federal
Government takes in roughly $3 Trillion
and states and local taxes take in roughly $3
Trillion; that means the average American
is taxed at a bit over 35% to the Federal,
State and Local governments and that does
not include sales taxes and other duties we
pay. When the public sector takes too much
from the private sector the economy cannot
grow. The last six years we have seen the
markets recover with very little to no growth.
Ask yourself; are your wages higher, is your
college graduate still needing help? Are you
and your friends working harder and longer
and are bonuses falling or salaries flat? While
Corporate America is in great shape, are you?
Ask yourself, as a society, are we going
to let the 50% of the people who survive
on handouts go without food, shelter or
healthcare? Then ask yourself how will we
pay for it? If you have assets, a retirement
account and make a decent living, look in
the mirror.
The government is smart and calculating.
They will pick every loop hole apart. They
will say, “Only the rich itemize.” Deductions
for state income tax, property tax, home
mortgage interest, health insurance, and
medical out of pocket and maybe even
charity will disappear.
The current Budget proposal is asking for
$4 Trillion in spending - $1 Trillion more than
we bring in at the Federal Government level.
First: where are we going to find an extra $1
trillion? Ask yourself, does our government
live way beyond its means with easy money
and cheap credit? Second, will the government
get all that it is requesting? No, but this is why
many of our elected leaders will say, “We must
compromise and work together”.
Review some of the tax proposals made
in this budget and be amazed at how
aggressively it attacks the middle class.
First, they want to limit the tax breaks for
Net Unrealized Appreciation or NUA. If
you work for a company and they provide
matching in company stock or you purchase
it in your 401(k) this would eliminate that
portion from being taxed at long-term gains
and would then be taxed as ordinary income.
Roth IRA’s – First they want to only
allow conversions of pre-taxed dollars -
essentially illuminating the back door Roth
IRA conversion. Roth IRA’s would also
require required minimum distributions
(RMD) at age 70 ½ to match regular IRA’s.
That would get taxable money back in to
the system rather than continuing to allow
contributions to the Roth to grow tax free.
IRA’s - The budget also requests a
maximum tax deduction of 28 percent of
contributions to 401(K)’s and IRA’s and
other qualified plans. This means, if your tax
bracket is over 28% you lose out on the full
deduction.
How about this: The budget asks to
eliminate inherited or stretch IRA’s for
anyone except the spouse. This probably
has the best chance to pass because the
government feels these portfolios are for
retirement and if your kids inherit they
feel that non-spouses are not retirement
recipients. Who would be motivated to save
in these accounts if they are punished for
being good stewards of their money? Are we
punishing the wise to help the foolish?
Step up in basis – The budget also asks to
eliminate the step up in basis. This means if
you inherit a piece of property or investment
you lose the ability to get a step up to the
value or price as of the date of death and
would pay taxes based on the original cost
basis. This could destroy family businesses,
family farms and ranches or real estate.
These are only a few of the proposals
that attack the American worker and
middle class who make up the majority of
participants in 401(k) and other qualified
plans and Roth IRA’s.
If you are a business owner, entrepreneur
or own income property, you still have
options. Seek true financial planning and
advice. Understand your options, and most
importantly, strive to get your business
goals in line with your financial goals. Often
business owners find themselves in the
enviable position of a liquidity event and
have not prepared for that situation and leave
millions of dollars on the table in the form of
taxes. Make sure your business is in concert
with your financial plan to maximize what is
most likely your largest asset.
Our firm focuses on providing our clients
clarity on complex financial issues. Together
we can build solutions that allow our clients
to focus on what they do best. Enjoy doing
what you love most.
Doug De Groote
Managing Director
Located in Westlake Village
800.984.3302 805.230.0111
http://www.Degrootefinancial.com.
De Groote Financial Group, LLC is a federally registered invest-
ment adviser that maintains a principal office in the State of
California. De Groote Financial Group, LLC provides advice
and makes recommendations based on the specific needs and
makes recommendations based on the specific needs and cir-
cumstances of each client. Investing in securities involves risk;
please contact your financial adviser with questions about your
specific needs and circumstances. The information contained
in this newsletter is intended for information only, is not a
recommendation to buy or sell any securities, and should not be
considered investment advice.
MONEYSMART/Your Passion or Their Why?
YOUR PASSION OR THEIR WHY?
By Doug De Groote, MBA, CFP®

2. Exterior Balcony and Columns
W
98 Westlake Malibu Lifestyle MAY 2015 www.wmlifestyle.com MAY 2015 www.wmlifestyle.com Westlake Malibu Lifestyle 99
MONEYSMART/May 2015
For some, I included, we learned the hard lessons of life. My parents
told me not to touch the stove when it’s hot, but I had to touch
the stove to realize for myself I would get burned. Some of us had
great financial role models (and I was one of those) to educate us
on finance, teaching that easy money and plenty of credit do not
encourage responsible lifestyles. Just ask a college freshman how
easy it is to get a credit card. Then ask their parents how hard they
have to work to pay it off. It’s a great lesson for us all.
Today our country enjoys being the second largest economy in
the world with a GDP of $17 trillion. China is third with a GDP
of $9.2 trillion and Europe is number one when you add up all 28
nations; they have a combined GDP of $18 trillion. Yet, China’s debt
is now double its GDP and our debt in the last six years has gone
from $9 trillion to over $18 trillion and growing. And Europe will…
Just think Greece and the answers will fall in place.
Recently, a budget request was submitted to congress for the fiscal
year for 2016. The budget request also starts to point in the direction
that the government will be going in order to raise the revenue they
will need to provide for the promises made to retirees and folks
unable to meet their own needs to sustain their lifestyle.
Some will tell you, we have a spending problem. Others will argue,
we have a revenue problem. In reality, we have a math problem.
What would life be like if you could get to the essence of who you are and what you believe? In
other words, why do you do the things you do? What if you could focus on doing what you are
best at and love to do the most? What would our nation and our economy look like if we had
more makers than takers? More people inspired and passionate about who they are and what
they do. I can only imagine the feelings and the unbelievable success you would enjoy and our
nation and economy would benefit from if you had the resources to focus on your passion.
According to Economics Professor Laurence
Kotlikoff at Boston University, the “fiscal
Gap” for the whole country is $221 Trillion.
Currently Medicare and Social Security are
$126 Trillion and growing.
If our GDP is $17 Trillion and the Federal
Government takes in roughly $3 Trillion
and states and local taxes take in roughly $3
Trillion; that means the average American
is taxed at a bit over 35% to the Federal,
State and Local governments and that does
not include sales taxes and other duties we
pay. When the public sector takes too much
from the private sector the economy cannot
grow. The last six years we have seen the
markets recover with very little to no growth.
Ask yourself; are your wages higher, is your
college graduate still needing help? Are you
and your friends working harder and longer
and are bonuses falling or salaries flat? While
Corporate America is in great shape, are you?
Ask yourself, as a society, are we going
to let the 50% of the people who survive
on handouts go without food, shelter or
healthcare? Then ask yourself how will we
pay for it? If you have assets, a retirement
account and make a decent living, look in
the mirror.
The government is smart and calculating.
They will pick every loop hole apart. They
will say, “Only the rich itemize.” Deductions
for state income tax, property tax, home
mortgage interest, health insurance, and
medical out of pocket and maybe even
charity will disappear.
The current Budget proposal is asking for
$4 Trillion in spending - $1 Trillion more than
we bring in at the Federal Government level.
First: where are we going to find an extra $1
trillion? Ask yourself, does our government
live way beyond its means with easy money
and cheap credit? Second, will the government
get all that it is requesting? No, but this is why
many of our elected leaders will say, “We must
compromise and work together”.
Review some of the tax proposals made
in this budget and be amazed at how
aggressively it attacks the middle class.
First, they want to limit the tax breaks for
Net Unrealized Appreciation or NUA. If
you work for a company and they provide
matching in company stock or you purchase
it in your 401(k) this would eliminate that
portion from being taxed at long-term gains
and would then be taxed as ordinary income.
Roth IRA’s – First they want to only
allow conversions of pre-taxed dollars -
essentially illuminating the back door Roth
IRA conversion. Roth IRA’s would also
require required minimum distributions
(RMD) at age 70 ½ to match regular IRA’s.
That would get taxable money back in to
the system rather than continuing to allow
contributions to the Roth to grow tax free.
IRA’s - The budget also requests a
maximum tax deduction of 28 percent of
contributions to 401(K)’s and IRA’s and
other qualified plans. This means, if your tax
bracket is over 28% you lose out on the full
deduction.
How about this: The budget asks to
eliminate inherited or stretch IRA’s for
anyone except the spouse. This probably
has the best chance to pass because the
government feels these portfolios are for
retirement and if your kids inherit they
feel that non-spouses are not retirement
recipients. Who would be motivated to save
in these accounts if they are punished for
being good stewards of their money? Are we
punishing the wise to help the foolish?
Step up in basis – The budget also asks to
eliminate the step up in basis. This means if
you inherit a piece of property or investment
you lose the ability to get a step up to the
value or price as of the date of death and
would pay taxes based on the original cost
basis. This could destroy family businesses,
family farms and ranches or real estate.
These are only a few of the proposals
that attack the American worker and
middle class who make up the majority of
participants in 401(k) and other qualified
plans and Roth IRA’s.
If you are a business owner, entrepreneur
or own income property, you still have
options. Seek true financial planning and
advice. Understand your options, and most
importantly, strive to get your business
goals in line with your financial goals. Often
business owners find themselves in the
enviable position of a liquidity event and
have not prepared for that situation and leave
millions of dollars on the table in the form of
taxes. Make sure your business is in concert
with your financial plan to maximize what is
most likely your largest asset.
Our firm focuses on providing our clients
clarity on complex financial issues. Together
we can build solutions that allow our clients
to focus on what they do best. Enjoy doing
what you love most.
Doug De Groote
Managing Director
Located in Westlake Village
800.984.3302 805.230.0111
http://www.Degrootefinancial.com.
De Groote Financial Group, LLC is a federally registered invest-
ment adviser that maintains a principal office in the State of
California. De Groote Financial Group, LLC provides advice
and makes recommendations based on the specific needs and
makes recommendations based on the specific needs and cir-
cumstances of each client. Investing in securities involves risk;
please contact your financial adviser with questions about your
specific needs and circumstances. The information contained
in this newsletter is intended for information only, is not a
recommendation to buy or sell any securities, and should not be
considered investment advice.
MONEYSMART/Your Passion or Their Why?
YOUR PASSION OR THEIR WHY?
By Doug De Groote, MBA, CFP®