Financial Tips of the Week
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November 14 ,
Are you considering a refinance or a new home mortgage?
A HELOC or a straight home equity loan? Be aware of the hidden points, fees, and embedded expenses on all these loans. It’s important for you and your family to have a true “apples to apples” expense breakdown to best make your decision.
If you cannot figure out the expenses, call us. We have very experienced and knowledgeable mortgage specialists to introduce you to.
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November 7 ,
Be careful of how you “save “ on your car/homeowners insurance. Cheaper? Perhaps. Apples to apples coverage and exactly the risk management strategy you need?
In most cases, not quite. It’s okay to shop for pricing; just be sure you’re protected. A new policy has dozens of pages. Are you reading it? If not, do you trust who is?
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October 31 ,
If you need to rebalance your portfolio, it’s best to do it while the markets are doing well. It’s very difficult to leave a fun party early, but taking SOME (not sell everything) profit is prudent and necessary while valuations are robust.
Too late means too late. No one rings a bell the day before it’s time to sell.
Stay vigilant out there…..especially in the next quarter or so.
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October 24 ,
Interest rates are heading downward.
It’s time to consider intermediate-term/longer-term bonds/CDs (e.g., consider going 2–5 years vs. 3 months to 1 year).
It may be prudent to consider them if you can lock in rates close to 4% for several years.
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October 17 ,
Most people see their tax professional/CPA once a year, get their “taxes done,” and move on.
We feel it’s prudent to spend time throughout the year to plan your tax return. Understand what you pay, what you owe, what you can deduct or take a tax credit for.
Spend 1 hour once a quarter learning more about your personal tax “situation.” Pay your tax professional a little extra to meet once during the year, well ahead of the tax filing season.
This time and money spent will likely pay for itself several times over.
#RetirementPlanningGurus
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October 10 ,
We often hear, regarding residential real estate investments, that my mortgage taxes and insurance are $3000, and my rent (monthly) is $3300. I have positive cash flow! What a great deal!
What about your vacancy factor. What about your maintenance factor? How about management? Are you paying someone to be the landlord, or are you doing it? That’s not a fun job so if you are doing it yourself, are you paying you? 5%? 10%? What are your nights and weekends worth?
Last but certainly not least, if you put 20% down on a $500,000 property, remember to factor in the opportunity cost of that $100,000. That money compounded at S&P 500 returns over 20 years is a hell of a lot of money.
Real estate is an excellent investment if you know your numbers and are honest with yourself about them.
#RetirementPlanningGurus
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October 3 ,
An interesting phenomenon regarding everyday investing is the concept of greed vs. fear. Very often, when the markets are doing well, people are in a hurry to send us more money. “YOU GUYS ARE DOING GREAT!!!!!!!!!!”
When the markets are down and performing poorly, people recoil, pull back and avoid investing. If you have a diversified long-term investment plan, you should be happy when things go down. You’re acquiring more shares for less money.
Buy low. Sell high. People make most of their money in bad markets-they just don’t realize it at that time. If you want to be a long-term successful investor (stocks, real estate, etc.), avoid following the herd.
#RetirementPlanningNowGurus
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September 26 ,
Interest rates are falling—they’ve dropped considerably already. The yield curve is no longer inverted—it has “normalized.” The 2-year is finally paying less than the 10-year.
That being said, interest to be earned on liquid funds, money markets, and 3-month Treasuries are still attractive (4-4.6%). Keeping a lot of cash in check/savings? Make sure you're being paid an appropriate interest rate. On a $50,000.00 balance, the interest is still $175.00/month or so. Certainly, it makes no sense to leave that money on the table. Get it while it lasts!
#RetirementPlanningGurus
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September 19 ,
The Federal Reserve meets today. They are almost certain to decrease rates .25% to .5%.
The economy is softening a bit, as is inflationary pressure. It’s probably a good time to “extend your duration” for your bond/CD portfolio.
Instead of a money market or 1 year, consider putting some money to work in the 3–5-year range also to lock in some longer term rates while still attractive.
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September 12 ,
Yesterday was the anniversary of 9/11. We would like to remember the heroes and the victims who sadly lost their lives on that fateful day.
We will never forget.
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September 5 ,
We see a lot of active traders.
Some are day traders, and some are just very active. We at Sage do not believe in active trading for the average person/family. In fact, we just won’t do it. First, we believe the best strategy is strong and steady growth. Long term.
Second, your tax rate on short-term (less than 1 year) capital gains is an ordinary income/marginal rate. Your long-term gain rates are usually 15% (20% in the highest bracket).
Why pay double the taxes
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August 29 , 2024
Are you reinvesting the dividends of your long-term investment holdings?
Reinvestment is usually very easy and free of charge. Dividend reinvestment is a great way to turbo charge your portfolio’s compounding.
Contact us to learn more!
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August 8 , 2024
Two weeks ago, we made mention of this, and it’s so important that we are shouting about it again. This is a great time (soon, now, today-days not months) to assess the risk in your portfolio. Record high markets and lots of uncertainty coming.
Be careful out there.
#RetirementPlanningGurus
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August 1 , 2024
Often, retirement planning (or planning for simple financial independence) is all about them numbers.
How much do I have, how much will I need, when will I need it, etc.? Cool tip for this week, make a one-year and three-year bucket list and create a “when all is said and done list.”
Life by design. While wealth building is necessary, maybe it doesn’t make sense for you to be the wealthiest person in the cemetery.
What do you wish to have? To witness, see, or taste? Where would like to travel to? What would you learn if you had the time? What would you share? What artists do you wish to see live? Make this an annual exercise. When you write and speak of it, it tends to happen.
Hurry up and dance before the music stops.
#RetirementPlanningGurus
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July 25 , 2024
Here we are at “halftime” in 2024.
The second half of this year is likely to be rather volatile. $35 trillion in debt. Russia/ Ukraine, Israel/Hamas. Is China heading into Taiwan?
Our election. The possible recession or continued sticky inflation. Do rates stay stubborn or head lower? Earnings are starting to soften a bit. Inventories are starting to rise a bit. There's a lot to be concerned about.
But………. The stock market, real estate market, gold, and commodities are all approaching or at all-time highs. So, now is the perfect time to look at your plan with your family’s needs, and your risk levels. Yours. Not everyone else’s. Or” what’s NVIDIA GONNA DO?”
Maybe, just maybe, it’s time to take some profit (not everything) off the table. Halftime is a good time to rebalance.
Have an awesome rest of the summer, everyone.
#retirementplanninggurus
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July 18, 2024
Investing in assets or purchasing equipment for the “write-off” makes no sense unless you need the equipment, or the investment makes sense.
Otherwise, it’s like using a 30% off coupon for a bunch of stuff you don’t need—senseless spending.
Discount + Need = smart business. Discount & no need = wasted capital.
#TheRetirementPlanningGurus
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July 11, 2024
We are often asked about social security options for women. What happens if my spouse passes? What happens if he takes his social security early? Is disabled? What happens if we get divorced? What if I re-marry?
Here is an excellent source of information: www.ssa.gov, “What every woman should know.” You can/should print this guide for current and future reference. Knowing your options and understanding them is imperative when it comes to a lifetime income source. And, of course, reach out to us if you need us—we are always happy to help.
#theRetirementPlanningGurus
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July 3, 2024
In lieu of an investment or retirement tip, we instead want to wish you and your families an amazing 4th of July week and leave you with some inspiration.
Always seek to be the hero in your own story. No one is coming to save you. Instead of waiting for the light at the end of the tunnel, light that SOB up yourself!!!
Let’s finish this year strong!!! Happy 4th of July, everyone.
#RetirementPlanningGurus
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June 26, 2024
Many people ask, "How much life insurance do I need? Term or whole life? These are indeed important questions to ask. What people rarely ask is a question that’s almost as important."
I have a bunch of life insurance. Do I need it anymore? Are there better uses for the cash balance and the monthly premium? What are our options (carefully considering risk, taxation, growth, etc.)?
We are here to help you answer all these questions. Please contact us for your NO-COST insurance analysis, we’d love to help.
#RetirementPlanningGurus
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June 13, 2024
Do you have a will? Was it done by an attorney well-versed in elder care law? Where is your will? Is it in safekeeping?
Do you have a durable power of attorney?
Who is your health proxy?
What are your living will/trust wishes?
What happens if you need skilled care?
Unsure? Contact us for a no-cost estate planning check-up. We’ll help create a well-thought-out plan to take to your lawyer for completion.
#Retirementplanninggurus
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June 6, 2024
We believe that caution is a good thing moving forward.
While we don’t subscribe to “sell it all,” we do think it’s time to take SOME profits and ratchet down the risk a bit. There is much to “worry” about in the coming months Election.
Geopolitical concerns /wars and inflation are stubborn, and recession (hard or soft landing) is very possible. Earnings in some sectors. Inventory surplus in many sectors. Oh, and…………. Stock Market? Near all-time highs. Bond rates- 15-year highs. Commodity prices record highs.
Gold prices-record highs. And Real Estate?- You know the story there. We are not saying run for cover. We're saying you should exercise some caution and rebalance within your long-term plan.
The Piggies get fat, and the Hogs get slaughtered.
#RetirementPlanningGurus
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May 30, 2024
Do not borrow money to invest in the stock market! Period.
Just our view.
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May 23, 2024
For many of us, the Roth IRA/ROTH 401k is much better option.
Once the account is open 5 years, you never have to pay taxes again. Not on principal or earnings. More importantly, you no longer must adhere to RMD restrictions at 73 and your heirs get the balance tax-free (vs fully taxable and all taxes due within 10 years-for traditional IRA/401k).
You may also access a lump sum in retirement without massive tax consequences for a second home purchases or large trip. The main point here is, do not assume anything-do the plan. Do the math.
Think for yourself. Yes, with traditional 401k/IRA, you get your tax break now. And that’s always attractive. But, at what cost? What is your cost?
Call us for an analysis today.
#Retirement Planning Gurus
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May 16, 2024
"The stock market is a device to transfer wealth from the impatient to the patient."
Great research doesn’t win. Patience and temperament do. Stick to your plan
-Retirement Planning Guru
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May 9, 2024
WRITE-OFFS!!
Obviously, we are not giving tax advice here. That is for your CPA.
We are frequently asked about" write-offs, "and our belief is simple here.
If you can use the item or expense anyway, then a write-off is a nice added benefit. However, buying or spending simply for a write-off is akin to using a coupon for something you don’t need. Why pay the interest or even spend the money if it’s not something that drives your goals?
#TheRetirementPlanningGuru
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May 2, 2024
Many people yawn or roll their eyes when they hear the term “BUDGET”.
The BUDGET, however, is an exceptional financial tool. Its purpose is not to force you into an unwanted lifestyle or lack of spontaneity. Its purpose is to plan your spending so it flows to what’s decidedly most important in your life, such as your dreams or priorities.
Go ahead-embrace a budget (weekly, monthly, annually), and refocus your priorities. More savings + more discipline = more investment and more wealth.
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April 25, 2024
Just 5 companies account for over 25% of the S&P 500’s market cap.
This concentration remains a risk as we move deeper into Q2. This is an excellent point to understand exactly what you own and where. Make sure your portfolio doesn’t overlap. This isn’t a bad time in history to be a bit more cautious, either. Lots of concerns. But- 5% + US Treasury bonds (6mo-2yr) isn’t a bad return to wait it out with some of your capital.
– The retirement planning guru.
P.S.- GO RANGERS!!! GO KNICKS!!!
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April 18, 2024
Do not leave a bear market.
Do not sell your investments when they are (collectively) down significantly. Know your strategy cold before a bear hits, and understand that bears happen.
You can’t time or predict them. You also cannot afford to miss the best upside days on the way back, so avoid “trading” them. Stay with it. Quality always rises to the surface anyway.
We say this because we “may experience some negative bear market vibes” later this year. Markets are close to all time highs and there seems to be a few things to worry about out there. Know your plan and stick with it.
---- Your retirement planning GURU
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April 11, 2024
Save your money and let it work for you over the long haul. Compound interest is very powerful and much more possible to rely on before YOU RETIRE.
Savings are much harder on a fixed income. Live below your means now and invest your savings in productive assets. Be consistent (every week/month etc.).
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April 4, 2024
Gold is in the spotlight. We get frequent calls on the subject, and it's done very well recently. As a reminder, we like Gold as a hedge/insurance policy rather than as an investment (3-5% of liquid net worth).
If you choose to buy gold in paper form vs the physical metal (GLD OR IAU, for example), you may consider buying in your IRA. The gains on Gold are taxed as a "collectible" at 28% (plus applicable state taxes), not the average cap gain of 15-20%. This can eat your gains in a hurry.
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March 28, 2024
Far more often than not, a world-class investment plan is slow, methodical, and boring, but really effective.
Consistent and compounding it has your focus, but not daily. If your investments "excite and exhilarate," you are most likely going about it wrong. You can still achieve great returns without the excitement.
And it's absolutely expected that your plan will go down in value some years. Down in value is okay.
The investment, permanently going away, is not.
RULES:
# 1-DON'T LOSE THE MONEY
# 2- Don't ever forget rule # 1.
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March 22, 2024
Is there a way to get money from your IRA or 401K prior to 59 ½ without penalty? Yes. IRS CODE (section) 72T.
72 T gives you penalty-free access (not tax-free) to your retirement funds prior to 59 ½ if taken in "substantially equal payments." SEPP.
This is a nice tool to know about for those who chose to retire early or perhaps bridge to a pension beginning.
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March 14 , 2024
Hey, it's okay to rent temporarily, even for a few years. We see many "near retirement" families that wish to downsize or move to another state. In most cases, the families seem to be in a huge hurry to purchase something new.
What if you're not sure? What if you prefer to "try out" your new state before you commit to a huge purchase? What if you'd like to stay mobile, move around and mix it up?
Simply put, if your heart isn't set on permanent roots, renting is ok. If you're going to be somewhere for 3-5 years or less, renting is ok. Make your last buying decision when you're absolutely sure.
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March 7, 2024
Picking a great stock isn't that hard as long as you have patience and temperament. What is hard is knowing when to sell and when to take profits. Of course, there are a lot of things to consider, like account type, tax basis, ex-dividend dates, and "sell all or some part of."
If you've had the good fortune of riding Nvidia, Meta, Microsoft or Lilly (or any other great company with substantial upside), when do you take some of or all of your profit?
Here is what we know for sure and what we believe to be sound advice:
1.) No one ever rings a bell at "sell time."
2.) You have to leave the party a little early. Otherwise, being too late is inevitable and painful. Pick your spots.
3.) Be very aware of what percentage of your net worth this position represents. For example, if you have a $1mil portfolio and Nvidia is $40k, you can breathe a bit. Be gradual about it. If Nvidia represents $200k of your $1mil, perhaps think more aggressively.
4.) Consider an investment in rock-solid, diversified income-producing ideas as a base for your portfolio. Things you never have to sell they are sound, stable, forever, and pay a nice income for your "retirement/slow down years."
5.) And last, but hugely important. Like in Vegas, if you hit big, you may think you have the "touch." Over the long haul, the casino will fleece you. You will not outperform the markets over 10+ years. Begin with the end in mind. Keep your "trading" to small percentage of your nest egg (5-10% in a separate account).
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February 29, 2024
If you have assets at a brokerage firm or an RIA (FIDUCIARY) like ours, we suggest holding off on your taxes until early March.
There are always delays with custodians, ETFs, mutual funds, and especially LLP's regarding reporting delays.
IN 95% of the cases, it cannot be helped. We are at the mercy of the data, even if it's late.
Rather than drive ourselves crazy, postpone the tax prep to March 1st or after, and breathe easy
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February 22, 2024
Consider picking the same one or two days every year to rebalance your investment portfolio.
They should be approx. 6 months apart but easy to remember, for example, April 15th and your birthday, etc. We like to rebalance after a significant move from our desired allocation mix. If you are 70% stocks/equities, and it goes to 72%, leave it be; if it goes to 75-80%, perhaps it's time to rebalance.
Also, these annual dates can be used to see if there is any reason to change your overall plan (major life events, etc.).
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February 15, 2024
We are all aware by now of the incredible performance run the “Magnificent 7” stocks have had.
Microsoft, Meta, Nvidia, Google, Amazon, Apple, and Tesla. Throw in some weight loss drug stocks like ELI LILLY/NOVO NORDISK, and you have most of the market’s performance in 10-12 companies.
This week’s tip is simple. Where the party was the craziest, the hangover will be the greatest. What goes up must come down. Artificial intelligence is exciting, but buyers should beware; these valuations are not for the faint of heart.
Also, be mindful that almost every stock fund or ETF you own is laced heavily with these stocks. You may own a ton of them and not even realize it. Be vigilant and get educated.
And maybe this time………to be early.
Happy Valentine's Day to all the ladies out there (a day late).
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February 8, 2024
Sometimes……..more often than not, it seems it’s better to hold your winners and sell your losers vs. double up on your losers and sell the winners.
Sometimes, broken companies are just that.
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February 1, 2024
When choosing investments for your 401k or retirement plan, consider a contrarian point of view often.
Consider it. If the “super-hot artificial intelligence" laden large-cap growth fund is up 97% in 18 months, maybe it makes sense to take some profit, try something else, or consider the occasional contrarian investment.
What hasn’t performed well as a sector in 3 or 4 years? Why? Is it time? Give equal consideration to great value as you would “what’s hot.”
It’ll serve you well when the bear knocks.
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January 25, 2024
Although stock certificates are no longer used, they may still have value.
If you (or a parent) come across an old stock certificate in your files, do not throw it out. Send a picture to us (or your registered advisor), and make sure you’re not throwing out real money.
I think they’re cool bits of history, too. Even if they have no investment value, they are nice to teach with, “I Remember when…………….”
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January 19, 2024
One of the very best things about a well-crafted retirement income analysis is the general lack of anxiety it provides as we age. It’s not healthy or ideal to “worry” about your retirement income over the long haul. Your “retirement income” should be:
1.) More than enough
2.) Inflation-adjusted (long-term)
3.) Sustainable through your lifetime
4.) Understandable – where does the income come from, and how safe is it? What is the probability of its continuation in perpetuity (your lifetime)?
5.) Easily explainable to your partner/spouse
#Bulletproof your plan today.
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January 11, 2024
Here’s an odd tip on a possible “conversion” to an investable asset. We are often asked about precious metals, mainly silver and especially gold. How much of my liquid net worth should be in metals (3-5% perhaps), and of said metals, how much should be paper vs. actually holding the physical metal?
Although the answers to those questions vary from family to family, here’s an interesting tip for everyone. We all have some old jewelry lying around somewhere that is out of style and faded memories, and we won’t ever wear it again; it’s not that “sentimental” of a piece. Bring this scrap jewelry to a jeweler you trust, and scrap for cash. If gold, a reputable jeweler will normally get 90-95 cents/dollar for scrap. Use these proceeds for actual US gold bullion (or ETF SHARES IAU/GLD).
Convert a pile of scrap to an actual dollar value. Yes, you are parting with a few percentage points upfront, but the future use is much easier with a definite (non-debatable) value for when it counts.
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January 4, 2024
Real Estate 2024. Our prediction? It will likely be a good year here in the Hudson Valley.
Inventory is still very low, while demand is quite robust. Interest rates have eased a lot from 8% down towards 6% on 30-year mortgages.
Rents are still quite strong. If you are considering buying, selling, or investing, talk with your realtor and work out your plan. Thinking of refinancing? Check out your loan specialist while rates have eased. From an investment perspective, even REITS (real estate investment trusts) seem relatively cheap here.
Could be a great year for hard assets, especially real estate. Let’s just hope and pray there are no “black swan events” in our near future.
Happy 2024, and a prosperous one, too!
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December 28, 2023
We have heard the following formula for whether a rental property makes sense or “cash flows.”- As long as the rent covers my mortgage, taxes, and insurance, it’s a great deal.
Not so fast, and certainly not always. What about your renovation costs? What about the opportunity cost for 2-30 years on your 20% compounded at 7-10%? How about your vacancy factor? Maintenance factor? Are you going to manage it and be the landlord?
Not much. What is your time worth here? When you are making an investment in a rental property, don’t let the excitement lead the way. Be unemotional, run the numbers, and be honest with yourself.
Otherwise, there are far easier ways to make 3-4% on your money.
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December 21, 2023
Here’s a slightly controversial opinion of ours. We hate annuities in most cases-especially if they are purchased from a broker-dealer vs. RIA/Fee only fiduciary. Why?
They are obscenely expensive. Again, in some cases, annuities can be a solid tool to use to solve a very specific problem. In 9 out of 10 cases, they are sold/bought for a different reason.
And not a valid one. Remember-if a company is going to guarantee you a lifetime income in a lifetime of uncertainty, volatility and risk- they are going to charge you enough and tweak the numbers enough to where odds are always in their favor, not yours.
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December 14, 2023
Avoid Overlap in your portfolio.
If you own funds or ETFs, make sure they don’t hold the same companies and/or sectors. This is a common mistake.
An investor has 10 funds, and 7 of them do the same thing, They believe they are diversified, but instead, it’s the opposite. Concentrated. An easy way to do this is to “Google” search the top 10-25 holdings in your fund or ETF.
If you’re buying individual securities, pay attention to how many exist in the same industry. Simply put, do you wish to own the best 1-2 companies in the semiconductor space or ten companies? Uncover what you own. Know what you’re buying and avoid the overlap.
Your portfolio will be less volatile and perform better over the long haul.
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December 7, 2023
This a Quote in honor of Charlie Munger, who sadly passed away last week-
"The big money is never in the buying and selling but in the waiting."
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November 30, 2023
An inexpensive estate planning tip!
You can still bypass probate without a JTWROS account (joint tenants with right of survivorship) simply by adding TOD (transfer on death) documentation to your bank or brokerage account.
It’s usually free and names beneficiaries to the account without subjecting that account to the probate process. A TOD is usually used with testamentary assets like taxable brokerage accounts and bank checking accounts etc.
Non-testamentary assets such as IRA accounts, annuities and 401k’s already have named beneficiaries on the accounts and thus do not need a TOD. If your estate is more complex, a trust and a well-constructed estate plan with an elder care attorney is certainly recommended.
If, however, your estate is less complex, consider a TOD to ease the administrative burden on your heirs. It’s free, simple, and effective.
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November 22, 2023
Should you invest in precious metals such as gold, silver, and platinum?
We feel that metals are a terrific insurance policy against catastrophic events, a run-on currency, or the banking system, but leave a bit to be desired as a long-term investment.
To say it again, it is great as insurance but mediocre at best as an investment. Why? Your only hope is the next person pays you more.
Unless you purchase a fund or a miner with dividends, there is zero production from the asset aside from hopeful appreciation. We suggest 3% in metals as a percentage of investible net worth, gradually moving to no more than 5% or so.
Have an amazing Thanksgiving, everyone!
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November 16, 2023
If your preference is to invest in individual stocks, you most likely have a style. Do you invest for speculative growth? Do you day trade? Do you invest in 1 sector only? How about dividends? Hot tips on TV or social media?
When we do invest in individual stocks, we like the following: a company that has and continues to, over a long period of years, raise its dividend without fail.
A company that raises its dividend year or year, quarter over quarter, for 25 years straight, is likely a great company. A great company that is growing, has great cash flow, and management that’s not afraid to share the earnings.
If you can find such a company (hint-not difficult) and acquire it at a nice discount, even better. This is not exciting, just long-term profitable. Growth of your capital with a rising income stream.
Have a wonderful week, everyone.
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November 9, 2023
If you or a family member are entitled to a defined benefit-pension plan (examples are frequently police officers, corrections officers, teachers, state employees, government employees etc.) upon retirement, please carefully consider the “survivor benefit option”.
If you pass away, what will your spouse continue to receive? There are strategies available utilizing everything from the pension itself to life insurance policies in lieu of. This is a very important life decision, and the option that pays the “most” is not always the “best”. Please make it as well-informed as you’re able to.
We are here to help in any way we can -please reach out if you ever need pension advice.
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November 2, 2023
As we move closer to “retirement” or slowing down in life, it’s important to understand and own assets that are “productive.”
Yes, as we grow older, our assets should likely be more conservative by choice and design. But- if you rely on those assets for an income stream, those assets should also be productive.
A productive asset pays you income while you own it in the form of rent, royalties, dividends, and of course, interest. With a nonproductive asset, your hope is the next gal or guy pays more than you did to buy it and, in the interim, pays nothing.
Some NP assets are desirable and even recommended in some cases (like gold and silver) but should not be used too heavily where income is needed.
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October 26, 2023
Just an FYI-You don’t have to fully “retire”- with the big red X on the calendar. You can slow down and fade out gradually.
You can consult or work part-time. You can volunteer or turn a hobby into a small business. Likewise, you can help as a grandparent.
If you really love what you do, why stop entirely? Because society says you should? Your “retirement” goal should be to wake up daily a combination of relaxed and excited, with enough capital to stay right in that zone.
“Don’t worry, be happy.” Remember-it’s your plan. Your life. Your terms.
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October 19, 2023
If you insist on purchasing individual stocks/companies in your portfolio, try to invest in what you know. What are you an “expert” in?
Or at least much more knowledgeable about it than most people you know. What are your interests?
What is your profession/vocation? Do you notice certain competitors or suppliers doing very well?
Research what you already suspect. It will significantly improve your chance of success. If you’re a bio-medical engineer, look around you. If you’re in IT, what do you see?
What new products are flying off the shelves if you work at a grocery store? Are you a new Mom or Dad? What are you buying for your kids? If you know it, like it, and research it, the results are likely to be better than not.
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October 12, 2023
Don’t ever forget how badly you once wanted what you have now. Practice gratitude.
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October 5, 2023
If you (or your family member) are over the age of 72 and wish to make donations to qualified charities of your choice, consider using your traditional IRA’s required minimum distributions as the gift.
The gift will qualify as your RMD (Required Minimum Distribution) but will not be added to your AGI (Adjusted Gross Income). That’s a pretty good deal for you, a great thing for charity, and a most desirable trade for your heirs and beneficiaries.
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September 28, 2023
Keep your 401k or retirement plan diversified. You’d prefer not to have your retirement and employment security tied to the fate of the exact same company, if possible. Yes, there are success stories out there about going “all in” but far more that have ended badly. Be careful, follow your plan and be patient.
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September 21, 2023
This is an excellent time to review your personal real estate holdings and liquidate any properties that are not generating income or enjoyment. Sometimes it’s very profitable to hoard and hold but with inventories at all time lows and demand strong, this is a good time to consider taking some profits.
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September 14, 2023
A little inspiration ahead of Q4!
“I could have very easily sat back and kept dreaming, wishing, and hoping. Instead, I started doing. ONE DAY became DAY ONE, and this has made all the difference in the world.”- Sara Blakely
Where are you in your dream? One day or Day one?
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September 7, 2023
If you are an investor (not a trader/for speculation), consider looking for companies that buy back their own shares consistently.
If the share buyback is at a good discount, even better. If the CEO/board of directors feels the stock is cheap enough to allocate capital to more shares, it’s likely a reasonable risk and reward scenario.
Think of like this- everyone likes a Chef that eats his/her own cooking.
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August 31, 2023
Ok! Here’s a fun one if you are unaware of it.
Google NYS DEPT of unclaimed funds, then enter your name and the city you reside in.
See if you have any “found money.” I found over $800.00 personally a couple of years back, and one of our staff members just found over $1000! Very easy to use. It will take less than 30 seconds to check.
Good luck, and have an awesome Labor Day Weekend!
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August 24, 2023
This week’s tip is a very simple one. It could be considered an opinion more than a fact, but here goes.
Leave leverage (regarding the stock market) to the professionals and large companies. It usually ends badly, and when it comes to us “individual/family investors”, it almost never ends well. Etch this into your memory-, do not borrow money against your home to invest in stocks.
Do not borrow money from your credit cards/lines to invest in stocks. And this is probably more of an opinion, we are not believers in or users of margin loans against our portfolios to buy stocks.
We don’t use it for ourselves, and we won’t do it for clients. Investors invest over the long term with patience and proper temperament. Speculators and traders seek much higher returns, much faster returns, and often use leverage. We invest following principles and a plan. We don’t gamble. And last, if you must gamble (stocks or dice), use your own money (a small predetermined percentage) that you can afford to lose and keep it separate from your nest egg.
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August 17, 2023
Want to pay off your mortgage early? How? Here’s a simple example. Consider a $300,000, 30-year mortgage at 4.5%. Your principal and interest payment would be approximately $1,520.66/month.
If you make one extra payment per year directly to the principal ($1,520.66), you will pay off your mortgage about 4.5 years faster. In addition to the 4.5 years saved, you would save approximately $43,000.00 in interest. Add $700/per month (a little more than 4 extra principal payments per year) and the note could be paid in 15 years at a savings of $128,000 in interest.
Keep in mind, every little bit added to the principle helps. Start with smaller amounts if you need to. Another thing to consider: if your mortgage rate is 3.5% and the rate on your savings/CDs/safe money is 5.5%; perhaps it makes more sense to leave the money invested. Consider what’s best for both your wallet and your peace of mind.
Have a great weekend, everyone. A few more weeks of summer left, so let’s enjoy them!
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August 10, 2023
Charitable donations of IRA funds
A great way to donate money to the charity, or charities, of your choice is to gift them (QCD-qualified charitable donation) up to $100k from your traditional IRA instead of taking your RMD (required minimum distribution @ age 72 and older). This could be a great way to gift for a few reasons:
• Charity gets money directly and immediately.
• You are gifting with pre-tax dollars -better for you and much better for your kids/beneficiaries.
• The gift counts towards your RMD, but the $100k (or whatever size gift you choose as long as less than $100k) does not get added to your AGI- a big tax benefit.
If you are already considering charity for a portion of your estate, consider your Traditional IRA monies (401k, SEP, ETC ALSO) to be the first money you gift (after 72).
Why bequeath the tax liability to your kids if you don’t have to?
Note: Avoid gifting ROTH IRA monies if you can help it. These are the last funds to gift.
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August 3, 2023
STOP AND READ THIS!
Someone I know quite well was hit with an attempted financial scam via the telephone. We all know these scams quite well by now, but this one was much different.
Somehow, using AI (artificial intelligence), these scammers recorded the voice of this person’s daughter in distress. The call was suddenly cut off, but the voice was of her daughter. I will spare you the details of the incident for time’s sake but pay attention here.
If you are ever in an incident where a loved one in distress calls you, especially where money is involved, think first. Be calm, ask questions, and get the facts straight. This person has reported the incident to local police as a precaution for others.
Our suspicion is that financial scams will become much more sophisticated, and soon, AI can be used to dupe voice, pictures, sounds etc. Be careful, aware, and discuss with your elder and younger loved ones.
Stay vigilant out there.
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July 27 , 2023
At Sage Investment Advisers, we strongly believe in financial education and literacy, especially for our young adult children and grandchildren. We often discuss the lack of financial and life planning options our school systems offer.
Our tip of the week:
Make it a point to educate your kids and grandkids with regard to financial and life independence. We offer courses, online and in person, to teach them. The cost to them nothing other than a willingness to learn. Message us today for class dates and details.
Gift your legacy knowing they are capable of nurturing and protecting it. It’s about them.
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July 20 , 2023
Sometimes it’s prudent to sell your losers, not add to them. In fact, often it makes sense to pare your losers and ride your winners longer term (assuming quality not speculative investing) for better returns.
If you sell off the losses, you can deduct up to $3000.00 per year against other sources of income, including salary. You may deduct all your losses against like kind gains (long-term gains vs. long-term losses), which can be significant.
If you have more net loss than $3000.00 and no capital gains to balance against; you will have a “carry forward loss”. It’s important to always know this number (from yourself or CPA) for the sake of tax harvesting (note: losses in a taxable account, not an IRA or 401k).
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July 13 , 2023
Review the beneficiary designations of all non-testamentary assets you hold on an annual basis. Pick a day and put it on the calendar, just to be sure.
A non-testamentary asset is anything you leave to your heirs by naming a beneficiary vs. bequeathing these assets using a will or trust. An example of non-testamentary assets would include IRA, Roth IRA, 401k, retirement plans, annuities, life insurance policies and TOD designated accounts.
Due to death, divorce, the birth of other children, or simply a change in wishes-always make sure your beneficiaries are up to date.
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July 6 , 2023
Buy damaged stocks and/or sectors, not damaged companies. In the end, the goal is to own the very best companies/investments at a reasonable price vs. a damaged company at a great price.
Buy quality and hold it.
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June 29 , 2023
Here are a few tips to consider regarding college planning for your kids or grandchildren:
1.) If you are of retirement age or close to it, it makes more sense to get any loans in the child’s name vs. your own (if possible and feasible). Our children tug at our heartstrings, but NEVER sacrifice your old age security on massive school loans. They have 60 years to pay it; you don’t.
2.) When I was growing up (in the ’80s), it was imperative to get a college education. Now? Show me the value proposition. It makes zero sense to spend $250k on a degree for a job making $40,000/yr. Unless it’s something, the student is incredibly talented in or passionate about. Sometimes it’s ok not to pursue a degree.
Often (aside from contacts and networking), a state school or community college is a better deal. Remember, as far as value goes, a degree in biomedical engineering is far more valuable than a 4-year degree in the arts. Spend your capital wisely. Think of it as a business plan.
3.) Consider a more inexpensive route for the first 4 years, then pursue a top school for better value- if you have an MBA from Wharton, no employer really cares about where you did the first 4.
4.) For college savings, the best deals are usually your own state 529 college savings plans vs seeking an advisor here. They are inexpensive, easy, and effective. Consider an age-based portfolio for the child to “autopilot” the savings The funds are 100% tax-free if used for qualified education.
5.) If you are stuck in student loan hell, consider a refi through Credible.com or SoFi.com. Rates have risen sharply in recent months so temper expectations but keep looking for the long haul. The lower your rate the faster the payoff and freedom.
6.) Don’t snub your nose at trade schools. There is big need and big money in the trades. If the child prefers to be a mechanic over being a lawyer, embrace it.
7.) And last, start your college/trade school education savings very young. Let compound interest bear the bulk of the burden.
Have a magnificent 4th of July weekend (and week!).
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June 22 , 2023
Investing is a game of patience. If you don’t have it, let a professional guide you in your long-term decisions and planning.
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June 15 , 2023
In most cases, you must wait until you are 59 ½ years of age to take penalty-free (never tax-free unless ROTH) withdrawals from your 401k, IRA, 403b, 457, etc.
A non-qualified withdrawal prior to 59 ½ will result in a mandatory 10% penalty by the IRS on the amount withdrawn. A question we’ve been asked quite a bit over the years is, "is there any way to start taking my IRA distributions earlier than 59 ½?"
The answer is yes….BUT, you must follow IRS rule 72T, which allows penalty-free access to your money years earlier if needed. The key point in rule 72t is “SEPP” or Substantially equal periodic payments.
In other words, you may notify the IRS that you’ll take $2000/month at age 55 indefinitely. This would result in zero penalty. If you need a quick $30,000.00 for your new Harley-Davidson, you pay the penalty.
You may change the amount +/- within reason as time goes on as long as it’s considered- “SUBSTANTIALLY EQUAL PERIODIC PAYMENTS.”
Happy Father’s Day weekend to all the great Dad’s out there.
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June 8, 2023
We are all guilty of holding a winning position for too long due to sentimental attachment or unrealistic long-term expectations.
Here is a novel concept- It’s OK to pay taxes sometimes, especially in a rather uncertain environment.
Stop fearing the tax man and start to fear and respect the loss man because solid capital gains can and always will be fleeting.
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June 1, 2023
We come across a surprising number of families who have too many accounts, too much diversification, and are hindered by an issue rarely discussed.
Overlap. Overlap, simply put, is having more than 1 or 2 (often 5+) ETF’S, funds, or investments that do the exact same things. They own most of the same things and pose very similar risks. How does this happen? People seek diversification in their portfolios and simply pick different names based on last year's “what did best, I’ll go with that one” model.
Overlap is a wolf in sheep’s clothing. It’s thought to be diversified, but it’s a concentration of one asset class that will lead to more risk than was intended. Don’t just pick a name-dive deep and see what it owns and how it fits into your own investment plan. Your simple solution to avoid overlap DUE DILIGENCE. Know what you own, what’s in it, why you own it, and where it fits in your plan.
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May 25, 2023
When it comes to your investment plan or before making any large investment decisions, it’s best to check your political beliefs at the door.
Conservatives believe the markets will do poorly with Democrats in office. Liberals believe the markets will behave negatively if Republicans are in office.
Most voters want our political leaders to “get something done” as long as their party is in office, but often, political gridlock is best for investors.
Remember, the markets hate change and uncertainty more than anything else. When it comes to sound long-term investment principles, political agnosticism is wise. If you want to go down the proverbial “rabbit hole” on this one, Google the research. Election year statistics will be very different from inauguration year statistics.
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May 18, 2023
We are heading straight for a recession! Inflation is a killer! Supply-side disruption is still a major global issue! Russia is still in Ukraine! China might invade Taiwan! The debt ceiling showdown looms!
The country’s regional banks seem to be an inch away from insolvency! Mortgage rates have almost tripled! We are $32 trillion in debt! And my God, the political environment!! Guess what? The S&P 500 Stock market index is up 8.75% through May 17th. This is the perfect time to remember a few things:
You cannot time the short-term movements of the market. No one ever has, and I promise you won’t be the first.
The economy is NOT the stock market. The market is often perceived as a leading indicator of economic activity. Just because things look grim doesn’t mean the market won’t do well.
Which is why…….
Rarely, if ever, does it make sense to sell everything. Because we don’t know and can’t afford to miss the biggest up days after a down cycle. Know your risk tolerance before you invest and stick to your plan.
Don’t get too excited about this market gain; it could sell off hard later this quarter or year. We don’t know. You don’t know, and they don’t know.
Never focus on the “market.” Focus on your plan over a 5-10 year period on your own quality investments.
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May 11, 2023
Those who invest in individual stocks tend to fall into the “growth” or “value” investor category. Growth tends to be a more aggressive momentum-based style, while value investing seeks to invest in companies trading at a relatively bargain price vs. its book/intrinsic value.
Warren Buffet, who is widely considered the GOAT when it comes to securities investing, is a classic value investor. Today’s tip is a reading recommendation. Buffet routinely credits much of his success and style to the “father of “ value investing, Benjamin Graham.
If you are seeking more knowledge in purchasing value stocks, check out “The Intelligent Investor” by Benjamin Graham, originally written in 1949. His principles are still relevant today.
If the text is too much, might I suggest chapters 8 and 20 (kind of a cliff notes/shortcut suggestion).
Happy Mother’s Day weekend to all the wonderful Mom’s out there!
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May 4, 2023
This week’s tip is an odd one. Collectibles, memorabilia, and antiques. Are they an asset or a liability? The short answer is neither; they are a hobby.
Something to enjoy, study and chase during your “treasure hunt”. You should use only discretionary funds that you can afford to call “non-productive” assets. I have been very active in the numismatic (rare coins) space over the years.
I even spent a couple of years as a dealer, and what I learned was shocking. Sometimes a rare item would fetch a nice profit, but, in most cases, the only way to profit was to buy at a deep discount. Very rare, popular items will usually fetch nice prices.
Most of the time, dealers will offer 10-25% of what the “price guide” says they’re worth. Why? They must sit on the item for years, hoping to sell it one day. Bottom line: if you view your “collection” or item as a hobby or a want with little expectations other than enjoyment, you’ll be fine.
If you consider your collection an essential part of your long-term financial strategy, be warned. What is the best way to know? Ask for a price from a dealer or an estimate from an auction house. Be careful and have fun.
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April 27, 2023
What is your own definition of retirement? Some people have the big red X on the calendar. Count down those days when doing absolutely nothing is the goal.
For some people, it’s simply a point of financial independence. Other people will never retire because they love what they do. And some can never retire, simply because they cannot. My own personal belief is simple yet powerful (in my own opinion). Retirement (is mental, not physical) is when you stop sacrificing today for imagining tomorrow, especially regarding money or lifestyle.
Are you happy now? Present? Grateful in the moment? Are you playful and curious? Adventurous? And most of all, are you excited to wake up every day? Simply put - Be fearless in the pursuit of whatever it is that sets your soul on fire.
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April 20, 2023
We have been asked the following question many times throughout the years: The market looks like it’s going to go down. Things look very negative. CNBC said…… Should we get out of the markets entirely?
Absolutely not. It’s ok to reduce your exposure but not a great idea, in most cases, to bring that exposure to zero. Why? Reason number one- no matter what the “experts” say, NOONE in the history of the capital markets has ever been able to accurately predict the short/intermediate-term movements of the stock market on a consistent basis. Ever. It’s akin to flipping a coin.
Reason number two- It has statistically proven that missing the biggest several up days (coming out of a down market) over a decade will dramatically decrease your long-term returns. Build a plan that makes for your family, and try hard never to predict the unpredictable.
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April 13, 2023
This week’s “tip” might be more akin to a controversial opinion, but here it goes. I am of the belief that our education system in this country lacks a very important thing: financial literacy. Yes, there are occasional courses (electives vs. mandatory etc.) but not nearly enough.
We run into so many adults who have no idea about their 401k, mortgage, retirement plan, and wills let alone their budget and spending habits.
Society promotes instant gratification and uses credit card debt to fuel it. When our youth accepts their first job out of college or high school, being financially literate would be incredibly helpful. It is important for them to learn life lessons such as how to buy a house, how to harness the power of compound interest early in life to avoid struggle late in life.
Music, art, drama class, social studies etc. are all important to create a well-rounded education. Isn’t taking care of yourself and creating a stress-free financial life as or more important than what happened 500 years ago?
I’m not suggesting we dilute the importance of existing classes but I’m screaming from the rooftop- where are the courses (mandatory) on financial literacy in high school?
We’d like to help if you feel the same way. We offer live classes (via Zoom) several times a year right here at Sage. Finance and investing 101. These classes were originally intended for high school and students fresh out of college, but adults have signing up more frequently.
These classes are 100% free of charge, no strings. If you’d like more info, please reach out to us by phone at 845-240-1551 or by email at info@sageinvestmentadvisersllc.com for a class schedule and availability.
Whatever you or a young adult in your family may need, let us know. We want to help!
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April 6, 2023
Because interest rates moved substantially higher in the past year or so (.25% to almost 5%) to combat inflationary pressures, the rates themselves are being scrutinized more so than in recent past.
And for good reason!
The rate on your savings/checking/money/cd’s or your treasury bonds matter again. They are a very meaningful yet conservative part of your portfolio. Many would argue that we are losing money here- (4% rate vs. 6+% inflation).
Sometimes in a market/economy this uncertain and volatile, it’s ok to “hold your nose” to the phantom inflation loss, as long as it’s a short-term view.
We do want to caution the following however, and LOUDLY- keep it simple and plain vanilla here. Do not buy hard to understand products here. They are often a wolf in sheep’s clothing. If the FED is paying 4% and a “product” is paying 7% for a comparable duration, think twice. Really understand what your buying!
A 5% CD can be understood in one sentence. If a shiny new “deal” comes with 146-page prospectus, there’s a reason. You are usually not the winner there. Remember Buffet’s old quote- “ More money has been lost reaching for yield than at gunpoint.”
Happy Spring everyone!
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March 30, 2023
We have been asked several times in recent weeks about whether it’s prudent to wait for interest rates on mortgages to come back down before- buying/selling/listing/building/investing etc.
We believe that each case is unique. You should buy the home that’s right for you and sell when it’s time to sell. If the investment makes sense now, go for it. If not, wait.
I heard this quote from a friend, and it makes sense here- “marry the property but date the rate”. You may get a chance to refinance in the future. If you do, great! If not, you still have what you wanted/needed and what made sense in the first place.
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March 23, 2023
There have been a few inquiries this week on the heels of last week's “regional bank liquidity crisis.”
For 99.9% of us, here’s all you need to know. Don’t put $250,000 or more in one name under one bank roof (in any combination of cd’s savings, checking, etc.), period.
You can protect yourself by buying US TREASURIES or diversifying your bank holding (up to $250k).
If you must keep more than $250k (.i.e.. operating capital or payroll for your company), there are alternatives such as US Treasury-based money markets, etc. Most say, “don’t worry, they bail us out.” While that has been true for the most part, we are approaching $33 Trillion in debt in this country.
Does the levy ever break? Who knows, but- why take the chance when the fix is so easy.
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March 16, 2023
Due to the SVB bank crisis (regional bank crisis as a whole), quite a few people have inquired about the safety of their money/cash/savings-especially at the “BANK”.
We have been advocating for months now the use of treasury bonds (very short to 5 yr. terms). Regardless of the actual risk of a run on your bank, isn’t it nice to avoid worry about $250k FDIC limits-as well as great rates, liquidity, no state tax etc.
It’s likely to be unreasonable to worry about your day-to-day checking/savings but may make sense to avoid worry on larger balances. And last-consider weather treasuries work for your plan not whether you should hurry and consider because of negative press on regional banks.
Sometimes the very best offense is a terrific defense.
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March 9, 2023
“It’s waiting that helps you as an investor and a lot of people can’t stand to wait. If you didn’t get the delayed gratification gene, you’ll have to work very hard to overcome that.”- Charlie Munger, Berkshire Hathaway
Good Lesson here- if you have the wrong temperament (impatient/impulsive/thrill seeking/gambler mentality), it’s best to have a plan with an advisor to implement and do the trading for you.
This forced discipline can be invaluable. If you must “trade actively” and seek all the hottest tips, you are best to limit this activity to some percentage of your total portfolio (.i.e.-10%). It is also wise to hold your trading assets in an entirely different account than your investment assets.
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March 2, 2023
Do you have an Umbrella policy?
An umbrella policy is relatively inexpensive for catastrophic coverage. Policies are usually sought in the $1mil-$5mil range and are great for excess liability coverage (you are sued for a significant sum and that suit would be catastrophic if you paid from your own assets). You should consider one especially if you have any of the following:
• Younger kids driving
• Swimming pools
• Trampolines
• A business
• Engagement in dangerous activities (off road recreational vehicles on your property)
Could your family benefit from an Umbrella? If so, how much do you need?
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February 23, 2023
RETIREMENT!
One day you will wake up and never have to work again. It’s what many people strive for. However, it is more than ok to semi-retire too.
You don’t have to 100% retire. Consider flexible positions or become a consultant in your chosen field. A semi-retirement can bridge both the financial gap as well as the “boredom/ I like to work” gap.
Can you choose to “fade out”? Absolutely. Should you? (Money aside)- That’s up to the individual.
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February 16, 2023
Most of us see our physician once per year at a minimum for an annual physical after we hit “middle age” or older.
You should absolutely conduct a one-per-year “physical” of your finances as well as an investment policy statement.
Once have your team of experts in place, use their knowledge and opinion. Did you have any major life changes this year? Are you on track?
In essence, KNOW vs. guess. Always.
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February 9, 2023
Savings on taxes should not be your primary investment objective.
A lot of investors ask us about Municipal bonds. “TAX-FREE BONDS!”
They are ready to invest without doing any math. It’s not the taxes you pay but the post-tax rate of return you should pay attention too.
In the end, it’s not what you make but what you keep so be sure to approach the math from both sides.
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February 2, 2023
Compare yourself to who you were yesterday, not who someone else is today.
Consider the absolute power of compounding interest in yourself.
The world has a habit of making room for the woman/man whose actions show that they know where they’re going.
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January 26, 2023
Many families ask us about Trusts- to protect their estates from risk, taxation, skilled nursing costs, and more.
We discuss these difficult issues in detail and help build a solid plan to take to their attorney for execution. We have found that a fair number of those families haven’t even built the foundation of their estate plans.
The simple “musts”. For this week’s tip/suggestion, we ask the following:
1. do you have a last will and testament? How old is it?
2. do you have a durable (financial) power of attorney named in the event of mental or physical incapacity?
3. who is your named healthcare proxy? Are your health proxy documents in order?
4. do you have a living will and is it in good order?
5. are all these documents recent and in an easy-to-find place?
Call us if you have any questions/doubts regarding your current estate plan. We are always happy to help.
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January 19, 2023
Most people see their CPA or tax preparers once a year.
Once tax preparation is done and their tax return is filed, they will see their accountant next year.
There is incredible value in seeking extra time with your CPA (even if it costs a bit more) to plan and understand your own tax liabilities. Seek one or two meetings throughout the year prior to tax preparation to ensure the implementation of your plan.
Most people don’t plan to fail in this area, they fail to plan.
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January 12, 2023
Most people see their CPA or tax preparers once a year.
Once tax preparation is done and their tax return is filed, they will see their accountant next year.
There is incredible value in seeking extra time with your CPA (even if it costs a bit more) to plan and understand your own tax liabilities. Seek one or two meetings throughout the year prior to tax preparation to ensure the implementation of your plan.
Most people don’t plan to fail in this area, they fail to plan.
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January 5, 2023
Be mindful of the following FACT as we move forward in 2023!
No one in the history of capital markets has ever been able to accurately predict the short-term movements of the markets consistently.
It’s akin to flipping a coin. If a coin is flipped a number of times and they guess right a couple of times, a person can begin to believe they know or can predict. But they can’t. Neither can you and neither can we.
Be careful of making any significant moves based on one research source. It’s ok to shift your risk asset allocation percentages up a bit or down a bit but avoid an “all-in” bet in this market. A recession looks likely if we’re not already in one but that does not automatically mean a raging bear market.
The stock market is a leading indicator in most economic cases, so it tends to fall 6 months to a year prior to economic data actually showing a recession. 2022 is certainly representative of this. Keep your plan intact and follow your investment policy statement with discipline.
Perhaps the markets will reflect another negative at 2023’s end………..or maybe it’s a great year. A toast to peace and prosperity- Happy New Year everyone.
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December 29, 2022
Did you take your required minimum distribution from your IRA?!
If you (or your family member) are over the age of 72, you should have taken a minimum distribution. You have until tomorrow at the close of business to do so!
Be sure to contact your financial advisor if you need help doing so.
Happy New Year everyone!
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December 22, 2022
If you’re an investor in individual stocks (companies vs funds/etfs), it’s wise to have a strategy as we are very possibly heading into a recession in 2023.
Consider companies that are cash-rich for dividends, share buybacks, and overall health. Consider companies that have little to no debt so it’s much easier to weather the coming storm.
Consider market leaders that have pricing power as they can raise their prices quickly to adjust to the environment. And last but not least, this is an environment to buy great companies and reasonable prices not marginal/mediocre companies at great prices.
Stay away from suspect companies here. The buffet always said- “you never know who’s been swimming naked until the tide goes out”.
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December 15, 2022
We have been sounding the warning bell on “crypto-currencies” for a couple of years now. We are still avoiding the space even after it has imploded.
Our firm is not a fan of assets that are non-producing (hoping the next guy or girl pays more is the only hope for a return). Blockchain tech absolutely has a place in our future, but not like this.
As always in this space-buyers beware.
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December 8, 2022
Many investments out there are risk-averse, and some of the time, that is ok. However, when inflation is running at 6-8% and your “safe “ assets are paying 3%, you are losing 2-5% and don’t realize it.
This reality may not hurt too much in short term but too many years of being behind in inflation can come back to haunt you. Just make sure your own plan accounts for this reality.
Be aware!
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December 1, 2022
Food for thought:
The last time the $20 Gold coin was minted for circulation in the US was 1933. That coin was 1 ounce of gold, while Silver coins (also 1 ounce) were $1.00.
Simply put the ratio between gold and silver as currency back then was 20/1. As of today (close approximation), gold is $1788 per ounce and silver is $22+ per ounce.
Today’s ratio is 81/1 vs 20/1. Perhaps a small amount of silver in your portfolio could represent both a nice hedge and also a reasonable long-term value.
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November 25, 2022
Consider a Roth Ira or even (and especially) a Roth 401K.
The modern 401k was born in 1978. At that time, the thought process was this- You can accumulate retirement assets pre-tax and someday when retired you can withdraw said assets at a much lower tax bracket than you were accustomed to in your working years.
Many investors (if reasonably successful and consistent) will not escape the high tax bracket even in retirement. Most likely-EVER. If your tax liability is likely to stay burdensome, we strongly suggest looking for a Roth structure instead. Why? After a 5-year grace period, the money and its earnings are tax-free forever. The advantages include:
No required distributions after 72 years of age
No ordinary income taxes owed by your children or heirs after you pass (estate tax may apply). Traditional 401k plans and IRAs pass the tax burden to your heirs.
Control over your assets- in essence, 35%+ doesn’t belong to the IRS. It’s yours.
Obviously check with your CPA to see what makes the most sense for you.
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November 17, 2022
“The big money is not in the buying and the selling but the waiting.”- Charlie Munger
Be patient. If your plan is well crafted, you’ll almost always be rewarded for your patience.
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November 10, 2022
CRYPTOCURRENCY- As we have repeatedly warned over the past couple of years, Cryptocurrency has become a dangerous means for speculation.
Most crypto’s are down 75% or more in the past 12 months. Most crypto’s will not remain solvent. We agree the returns for a lot of people have been astounding (while they lasted) but for all the wrong reasons. People made money because of greed, hysteria, and speculation, not because of sound underlying asset values.
Cryptocurrency will not last as a currency. Nothing that volatile with 75% price swings can be called a “currency”. We do believe that “BLOCK CHAIN TECHNOLOGY” is here to stay and will likely be a prominent part of our society and economy in years to come (think early internet). There is a solid chance a sound “cryptocurrency” could be born in the future-just not now. Not like this.
Buyers beware!!!!!
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November 3, 2022
Do not try and time this stock market.
It’s very difficult to predict and catch extreme highs and lows in the market. If you want to be a successful investor, be disciplined, patient and buy quality.
Unsuccessful investors are emotional and try to time the market.
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October 27, 2022
Pay attention to the rate of return on your cash, checking, savings, and emergency funds!
1-year treasury bonds exactly a year ago paid .14%. Right now, it pays 4.6%. The long-term average is 2.85%.
On a $100,000 balance that’s $140 vs $4600.00 for the year. Don’t leave money on the table.
Also, these rates will likely fall as we head toward a recession next year. If you need fixed income and rely on the payments-consider locking up some of these rates for the longer term as well (2yrs-10yrs).
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October 20, 2022
Financial Tip of the Week: Wills
Do you have a will?
When was it last updated?
Do you have your durable power of attorney in place? Have you chosen the person(s) wisely?
Is your health proxy in place? Have you selected the proper person there? Does your living will spell out your wishes very specifically?
Have the beneficiaries been updated and double-checked for your non-testamentary assets/accounts?
Should you consider a trust?
Is your estate plan where it needs to be?
Is the attorney that helped you very well versed in estate and elder care law?
These are questions you should be asking whether you are 20 or 70. Anything can happen at any time to anyone, so you should always be prepared to give yourself and your loved one's peace of mind.
Food for thought as we approach the end of 2022.
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October 13, 2022
CONSIDER A 1031 EXCHANGE
If you sell an investment property, you can defer the taxes on the gains by reinvesting the proceeds into a similar property (often of higher value) within 6 months.
But within 45 days you must choose the property you wish to buy. You’ll be required to keep the proceeds in an escrow account with your attorney until the new deal closes.
It’s also important to remember that this is a tax deferral move, not a tax-free move.
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October 6, 2022
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it’s marked down.”
The goal should always be to own quality companies at a reasonable price, not mediocre companies at great prices. A bear market often gives us this opportunity.
This advice will help take many investors, especially those new to the game, to the top. We often see newcomers buy into companies at high prices just because they are well known, but they end up seeing little to no return on investment.
To make it in investing, it is best to utilize the bear market to your advantage and select low stocks from quality companies where you will see your return on investment.
An experienced financial advisor can help you pinpoint those ROI companies.
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September 29, 2022
“History provides crucial insight regarding market crisis: they are inevitable, painful, and ultimately surmountable.”- Shelby Davis
Stick to your plan. If you hold quality, it will prevail in the end!
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September 22, 2022
We have and have had for several weeks now, what’s known as an inverted yield curve. It often signals a recession is well underway.
Research, if you’re curious, but it simply means the 2-year treasury bonds are paying more than the 10-year treasury bonds. This is important for a lot of reasons but for today, there’s only one reason we want to shout from the rooftop.
Short-term yields are the highest they’ve been in many years. The 2-year bonds (100% insured) are paying over 4%, for example.
If your bank is still paying 1%, call us.
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September 15, 2022
Yes, things are volatile, but continue to stay the course and stick to your long-term plan.
Remember, you cannot accurately predict the unpredictable.
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September 8, 2022
Financial Tip of the Week: When Your Why is Big Enough
"When your why is big enough, you’ll find your how. I promise."
This is perfect advice for everyday life as well as in the investing world. There is always a reason for why you are doing what you are doing. The issue is many do not know how to get to where they want to be.
However, with your why and determination you will figure out how you can get there.
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September 1, 2022
Financial Tip of the Week: Bond Funds in 401ks
Be aware of bond funds in your 401k and personal portfolios. These funds are supposed to be your “safe” money but often they are a wolf in sheep’s clothing.
They can actually be very leveraged and expensive; underlying holdings can be junk disguised as safe.
Be aware and be educated as to what you own.
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August 25, 2022
Financial Tip of the Week: Stop looking for fast and easy results.
Stop looking for fast.
Stop searching for easy.
You’ll be absolutely blown away by what happens.
When looking for a quick and easy method of investing, it usually ends up "blowing up in your face" and you lose out. The famous saying is true, "slow and steady wins the race!"
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August 18, 2022
Financial Tip of the Week:
AVOID complex investment OR insurance products.
Many companies issue products that are complex and difficult to understand.
The very best ideas are usually simple and concrete as they can be explained quickly. If your investment requires a 200pg booklet/prospectus to understand, you’re likely to be disappointed.
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August 11, 2022
Financial Tip of the Week: Invest with Your Own Money Only!
Do not borrow money to invest in the stock market! If investing in the stock market is right for you, do it with your own money.
Avoid borrowing money from anyone including yourself (credit cards/margin loans) to speculate in stocks.
Bear markets can force selling to cover these debts at undesirable times therefore compounding the risk due to leverage.
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August 4, 2022
“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.”—Franklin D. Roosevelt
Invest in what excites you and do what you love! Seek your passions in life and the money will follow.
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July 28, 2022
“Many people take little care of their money till they come nearly to the end of it, and others do just the same with their time.”- Johann Wolfgang Von Goethe
Be focused, seek balance, and absolutely, dance before the music stops.
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July 21, 2022
A little motivation for the day. This is a quote from Sara Blakely that I’ve kept with me for years.“I could have very easily sat back and kept dreaming, wishing, and hoping. Instead, I started doing. One day became DAY ONE!!!!!!!!! - and this has made all the difference in the world.
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July 14, 2022
Families that have accumulated substantial wealth buy assets.
Most middle-class families buy liabilities they think are assets (cars, boats, big houses, etc.).
Assets put money in your pocket while liabilities take money OUT of your pocket.
Luxury items and toys are much more fun when your assets pay for them vs your “paycheck”. Buy assets first (delayed gratification) and the things you want will come.
Which side of the balance sheet do you live on?
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July 7, 2022
As your wealth grows and the complexity of your plan with it, consider the use of a reputable and experienced CPA.
More importantly, have a tax plan as well! Most people “get their taxes done” and that’s the only communication they have with their CPA.
A couple of “planning” meetings throughout the year when your CPA has the time (not during tax season) is a great investment.
Are you leaving anything on the table?
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June 30, 2022
Since 1926, 32% of all returns generated from the S&P 500 are from the compounding reinvestment of dividends.
Yes, it’s wonderful when our stocks appreciate but DIVIDENDS MATTER! A LOT!
Dividends are usually a sign that companies have stability in their cash flow.
Dividends are great for being a part of your longer-term plans.
They a nice additional stream of income when needed without having to liquidate those positions, especially in down markets like these.
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June 23, 2022
"You can’t control the wind, but you can adjust the sails.”
With the capital markets down almost 30% and bond markets proving to be very volatile with interest rates on the upswing, it’s a very good time to consider rebalancing your portfolio to align with your long-term plan.
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June 16, 2022
“Wealth consists not in having great possessions, but in having few wants.”- Epictetus
When creating your long-term wealth plan, think deeply about what’s right for you and for your family, and don’t worry about what everyone else is doing.
You should ask yourself the following questions when creating a long-term plan:
What makes sense for you?
What is your own definition of wealth?
Are you there?
If not, what’s YOUR plan?
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June 9, 2022
Financial Tip of the Week: A little motivation for the week
Six months of incredible focus and hard work can put you five years ahead in life. Don’t underestimate the power of heart, hustle, focus, and consistency.
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May 26, 2022
“You get recessions, you have stock market declines. If you don’t understand that‘s going to happen, you won’t do well in the markets.”- Peter Lynch
When hit with recessions or a decline, you must stay the course. Economies are cyclical and will recover so make sure you are part of the recovery.
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May 19, 2022
Financial Tip of the Week: Downside Volatility
Yes, there has been a lot of downside volatility in the stock market recently.
Yes, we think there will be some very attractive opportunities in the future, however, the conservative side of your portfolio deserves significant attention right now as well.
Interest rates have risen sharply in the past 6 months and may continue to move higher. You can now attain comfortably above 3% on your bonds/CDs vs. the .3% they were paying. Use this opportunity to gradually sure up your safer assets.
Also, make sure you are being paid fairly for your savings accounts and money market as the next 2 years are not the time to leave money on the table.
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May 12, 2022
“Rule no. 1 is never losing money.
Rule no. 2is never forget rule no. 1”
- Warren Buffett
It’s perfectly normal and expected for your investments to go up AND down in value at times, however, it’s not acceptable if your money goes away.
Capital preservation should be the main priority of every investor.
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May 5, 2022
“Opportunity is missed by most people because it’s dressed in overalls and looks like work”- Thomas Edison
There is no easy path to the creation of significant wealth aside from the lotto or inheriting well. It takes really hard work, focus, patience, and perseverance. True wealth is not the accumulation of “stuff”- it’s freedom, peace of mind, and finding your joy.
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April 28, 2022
We are asked frequently- “Should I invest in Gold, Silver, or other precious metals?”.
The short answer is no. The longer answer is simply put, we do not use precious metals as an investment opportunity, but rather as an insurance policy.; they tend to provide a nice hedge in the event of inflation, currency issues, or a deep economic collapse.
No, it does not always go up in value during these times either. Gold is the standard while silver, platinum, and other metals are typically much more volatile. We recommend a portfolio weighting of 3-5% in most cases for Gold and metals.
To reiterate- Gold and metals are not widely viewed as a great long-term investment but they can be a terrific hedge against a (near) collapse or catastrophic event. Our nation is $30 trillion in debt and borrowing (at a minimum) another trillion per year just to keep the lights on. We’ll be holding some Gold for the long haul.
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April 21, 2022
Financial Tip of the Week: Hiring an Expert Realtor
Always consider using an experienced full-time realtor when engaging in the purchase or sale of any real estate.
A seasoned agent will have expert knowledge of your target market and can also provide far superior visibility to market your property, or assist in finding one.
Their service will be a more seamless transaction, as well as superior pricing, which will usually more than cover their fee. Be sure to seek a full-time agent vs one that enjoys it as a side hustle. You’ll likely benefit from the experience and the attention.
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April 14, 2022
Financial Tip of the Week: Don't Panic!
No one has ever made a dime panicking!
There will always be a better time to leave the table, so it’s best to avoid the fleeing masses.
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April 7, 2022
Financial Tip of the Week: Keep Your 401k Diversified
“Keep your 401k diversified”
Many employers use their 401(k) plans as a means of distributing company stock to employers, though there can be risks in doing so.
However, do remember Enron where more than half of Enron’s employees’ assets in the company’s 401(k) plan were in Enron stock and was almost entirely lost in 2001?
Be sure to keep your portfolio diversified inside of your 401(k).
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March 31, 2022
Financial Tip of the Week: Stocks
It’s ok to trade stocks.
It’s ok to try day trading.
It’s ok to be speculative in your Robinhood account.
It’s perfectly fine to buy the hot “POT” or “MEME” STOCKS.
However, use a very small (5-10%) of your total portfolio to do these things, and do NOT commingle these transactions with your core long-term retirement portfolio.
And last, it’s best to try these things after the markets fall and not chase the “momentum “otherwise it’s just like gambling- in the end, the casino always wins.
Be cautious out there.
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March 24, 2022
Financial Tip of the Week: Could a Recession Be Here Soon?
Americans are feeling the effects of the 40-year high inflation and asking for help from the government. Unfortunately, the Federal Reserve is unlikely to engineer a soft landing to reduce inflation without ramping up unemployment or causing a recession.
The 5-year treasury moved higher than the 10-year treasury yesterday, which is a leading indicator of sorts (inverted yield curve that a recession may be in our future. If the 2-year treasury moves higher than the 10-year we will likely be in a recession.
As always, be aware of “it’s different this time” and do not make the same mistakes that cost you before. Be cautious out there and keep your eyes open.
And yes, I hope we’re wrong.
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March 17, 2022
Financial Tip of the Week: 4 Most Dangerous Words in Investing
There are many dangerous words in the investing world, but there are none that are more fatal than these four words:
“The four most dangerous words in investing are, it’s different this time.”- Sir John Templeton
History always repeats itself!!!!!
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March 10, 2022
Financial Tip of the Week
Diversify, but don’t overdo it.
Often, investors have too many holdings that lead to redundancy and overlap, in other words, they have several funds doing the same thing or they have several stocks in the same sector.
Choose the best 1 or 2 stocks and invest in a different area and invest with a plan-one that avoids “too many holdings”. We want to avoid overlap and allow some concentration in our strongest investments.
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March 3, 2022
Financial Tip of the Week: In Investing, Profits Do Not Equal Comfort
“In investing, what is comfortable is rarely profitable.” Robert Arnott
Times of rapid change or turmoil often yield the best investment returns.
But, you must be comfortable with the amount of fluctuation in your investments.
Make sure your investments match your Risk Tolerance so you are not panic selling during emotional times
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February 24, 2022
Do not try to time the market!
Never in the history of the “stock market” has there been anyone that could accurately predict the short-term direction of the capital markets.
Do not try and be the first. Be sure to have a well-constructed plan and stick with it and rebalance it when necessary.
Avoid emotional transactions; expect downturns rather than reacting to them.
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February 17, 2022
Tip of the Week: Start Investing Today!
The best time to plant a tree was 20 years ago. The second-best time is today.
Start investing early as well as teach and encourage your children and grandchildren to do the same. Never underestimate the power of compound interest!
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February 3, 2022
Tip of the Week: Proper Investing = Time & Patience
“Investing should be more like watching paint dry or grass grow. If you want excitement, take $800 and go to Las Vegas.”- Paul Samuelson
If you think investing is the same as gambling, you’re doing it wrong. The work involved requires patience and planning, though the gains you see over the long run, however, are quite exciting.
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February 3, 2022
Financial Tip of the week: Understanding Investing
It’s imperative as an investor for your own future and financial well-being to fully understand what you're investing in and what you're buying.
If you don’t understand the investment or have no idea what the company does, then you’re not investing, you’re speculating. Yes, you can “win the bet” sometimes, but it is not a sound long-term, wealth-building strategy. Rolling the dice is fun, but your investment policy statement is for real.
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January 27, 2022
Financial Tip of the Week: Do not sell stocks/equities in a down-market cycle.
If your investment policy statement and asset allocation plan are well constructed, you shouldn’t have to sell even if you’re taking income.
Would you list your home if the housing market goes south? So why sell stocks in a bear market if you don’t need to?
If the plan is quality and the investments are good quality, wait it out.
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January 20, 2022
Investing Smart in the Long-term Is NOT Gambling!
Many investment firms hear from their clients that investing is a gamble just like playing the lottery. This cannot be farther from the truth.
Sound long-term investing is not gambling as long as you invest in companies or indices that are not in “hot stocks of the week”.
Also, DO NOT borrow money to invest in the stock market!
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January 13, 2022
“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”
-Benjamin Graham, Father of Value Investing
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Thursday, January 6, 2022
Everyone always panics when they hear the market will be a bear market, however, there is not a need to panic.
“You make most of your money in a bear market, you just don’t realize it at the time.”- Shelby Cullom Davis
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Thursday, December 30, 2021
Be careful of any kind of annuity!
Annuities are rarely a good deal as they are loaded with massive hidden costs and are layered in complication.
If your investment “problem” is best solved by having an annuity as a tool, then buy one through a fee-only fiduciary rather than through a broker-dealer. Buying through a fee-only fiduciary will at least cut the costs significantly and increase transparency.
If you already have an annuity, consult with a fiduciary on whether or not that product should be held, liquidated or rolled tax-deferred (section 1035 exchange) into something far more cost effective.
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Thursday, December 23, 2021
WILLDURABLE POWER OF ATTORNEYHEALTH CARE PROXY
Do you have each one of these crucial decision making components and keep them regularly updated?Did you have a professional Elder Care/ Estate Planning Attorneydraft up the documents to ensure every important detail and matter is included?Life happens, but you are still able to have your wishes kept when it comes to important matters.These items will help you to leave your legacy and provide peace of mind for you and your loved ones.
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Thursday, December 16, 2021
“Be fearful when others are greedy. Be greedy when others are fearful.”- Warren Buffett. Chairman, Berkshire Hathaway
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Thursday, December 9, 2021
INFLATION IS HERE!- Avoid being overcautious in your investment approach, especially as inflation rates continue to rise.
Simply put: if your "bank account" is yielding .25% in interest and inflation is 3.5%, you are LOSING money (or purchasing power).
You are most likely under the impression that your funds are "safe", but in reality, you're losing 3% per year. The long-term effects of this, specifically for seniors with a fixed income, can be devastating.
Consider buying some assets along with continuing to save in the bank to help offset the impact of inflation. Some examples of these assets are:
1. Stocks with Pricing Power
2. Real Estate
3. Commodities/Metals
4.Gold
5.Inflation Protected Treasuries
6.Series I Bonds (nod to Dave T.)
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Thursday, November 22, 2021
While the Fed has repeatedly stated the inflation we’re seeing is “transitory” or temporary, we believe it’s wise to consider the alternative. What happens if it’s not temporary? What will you do to prepare for the first real inflationary trend we’ve seen in almost 40 years?
Tip of the week: Consider Treasury Inflation Protected Securities (TIPS) (these are a form of U.S. Treasury Bonds designed to help protect investors from inflation), gold, or other strategies to keep long-term purchasing power on par with inflation.
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