Money Talk Blog

ENCINO, Calif., Feb. 15, 2024 /PRNewswire/ — Pointwealth Capital Management, a boutique wealth management team focused on creating customized investment portfolios for each client’s unique situation, today announced that Founder and President Sandra Cho was named to the Best-in-State Top Women Advisors list by Forbes. She has been named to this list for three consecutive years and has been named a Top Women advisor by the same publication twice.

“It’s an incredible honor to be included among the top women in the industry again this year,” said Ms. Cho. “I believe in taking a highly personalized approach to helping my clients build a legacy and future for their families. Building trust to work closely with each individual client to support their long-term financial goals is how I define success and I’m thrilled that Forbes and SHOOK Research found that this process was worthy of recognition once again.”

The eighth annual ranking of Forbes SHOOK Top Women Wealth Advisors Best-In-State features 1,991 women managing cumulative assets of over $2.8 trillion. Forbes’ list was compiled by SHOOK Research, which uses financial data and interviews candidates nominated by their firms to rank advisors.

For additional information about this list please visit the Forbes’ website.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC.  

Investment advice offered through Pointwealth Capital Management, a Registered Investment Advisor and separate entity from LPL Financial. 

Nicole Petallides: 

Welcome back to the watch list. We’ve been looking at Uber and Lyft. Both are soaring double digits in percentage terms, while they conducted a joint effort for a strike at major airports. Ten US airports today during this lunchtime period, Valentine’s Day, because obviously we’ll discuss what goes on here. Anthony Bartolacci with us, Chief Strategy Officer at Sensor Tower. 

Also, Sandra Cho Founder and President, Point Wealth Capital Management. The strikes have been underway. I believe they were from 11 a.m. to 1 p.m. Eastern time or maybe 2 p.m. Eastern time. Likely finished at this point, but making the point, right? Lyft gave some concessions. I’ll start with you, Sandra, your thoughts?  

Sandra Cho: 

So, we’ve seen strikes before, especially last year. And I think part of the inflationary pressures and Main Street is feeling it right now. So drivers are feeling that economic pressure believing they should get more. I think Lyft handled it better than Uber since they made some concessions and showing that completely straight off the bat. But I do think that Lyft in general has some headwinds, not just headline news.  

Nicole: 

Right. How do you think they handled this, Anthony? I mean, you’re not going to see the company just come in and throw money at them, but they’re trying to make a point. 

Anthony Bartolacci: 

Yeah, I think they handled it well. But you know, going to the data and trying to see what the data is saying as it pertains to the supply of Lyft drivers. In the fourth quarter, we saw accelerating trends of individuals downloading the Lyft driver app, using the Lyft driver app, and significant gains in loyalty of the Lyft driver app. 

So, you know, as context to this strike that’s going on, we are seeing good growth trends for the supply of drivers for Lyft and more strength in the Lyft driver app than for some of its peer ridesharing names like Uber and DoorDash. So, you know, just setting the stage for what’s going on today. Users are still going into Lyft ecosystem, wanting to be a driver. 

Nicole: 

Right? Understood. I’m glad you mentioned DoorDash. We have that on the banner there. They also have striking drivers today. We’ve seen that Uber stock soaring. Lyft also is at some new highs, not the highest ever, but new highs. Sandra, where do you think these stocks are headed? As you see both names, do you like one better than the other? 

Sandra: 

So, Uber is ten times larger than Lyft. And they have additional revenue sources with Uber Eats and a recent acquisition. So, I think that Uber looks like they are poised well. Especially let’s talk about AI and their investment in AI. Lyft is not so I am a bit concerned about that because Lyft is concentrating on commuters and their regulars, regular users. But if they are not really investing in AI like Uber is, AI such as automated driving. 

So that’s a concern of mine heavily, they’re really pigeonholing themselves and I’m concerned about that over the long term.  

Nicole: 

Yeah, which one do you think is best positioned? Anthony I was just looking at the chart that went back to those IPO. They basically IPO’d around the same time and you know, Lyft had theirs. It was soaring, then sold off and I think Uber had something to learn from that, that IPO and then Uber went off. 

But Uber is at all-time highs, whereas Lyft is well off. I mean, I think it was 80% off those IPO highs or so. Which do you think is best positioned? 

Anthony: 

Yeah, I think to Sandra’s point, there’s a lot of areas where it points to Uber’s superiority on the U.S. exposure versus international skew. About 75% of Lyft mobile app users are in the U.S. per sensor tower, whereas Uber’s in the mid-teens. 

So, Uber is very much more global. We have a cool stat at Sensor Tower called audience Insights, which shows sort of the competitive dynamic in the U.S. between those two providers and of the Uber app users. Only one third of them also use Lyft, which is kind of showing Lyft’s complimentary status to Uber and doing the inverse of that. 

Starting with Lyft users, we see about two thirds of them also as Uber users. So, I think, you know, Uber is better situated, but we are seeing some good trends for last, which maybe just show some strength in the overall category.  

Nicole: 

Yeah. And the first ever buyback announced for up to 7 billion for Uber and also help to give it this lift today of 12.7%, Lyft is gaining 33%. Thank you so much for joining us. 

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC.  

Investment advice offered through Pointwealth Capital Management, a Registered Investment Advisor and separate entity from LPL Financial. 

The opinions voiced in this recording are for general information only and are not intended to provide specific advice or recommendations for any individual.  

To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. 

No strategy assures success or protects against loss. 

Stock investing includes risks, including fluctuating prices and loss of principal.  

Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company.  

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. 

Schwab Network, Pointwealth Capital Management and LPL Financial are separate entities.  

Any company names noted herin are for educational purposes only and not an indication of trading intent or solicitation of their products or services. 

Sandra: 

I do think that it’s so important to have a a process and you’re guiding people through it. I think that’s incredibly, incredibly important. If you could share a little bit about that, that would be fantastic.  

Torey: 

Yeah. You know, I am a UCLA grad, right? We can rock on every single day and talk about that. I’ve always felt an immediate connection to Coach Wooden because he coached at UCLA, and I live by his pyramid of success. My dad, who is also a UCLA grad, would pull out these things from the pyramid when I was a young child.  

Things like, be quick, don’t hurry. Your competitive best is needed the most at the most critical moment, which is the very top of the pyramid. So, all these things came colliding into my world a few years ago. About five years ago, when the Arizona Diamondbacks were at a turning point and as far as I’m concerned, under my watch, we hadn’t been winning. 

I started to feel all these emotions and these things were popping up every single day and these words were showing up and appearing in my world. Our team lacked accountability. I felt like we weren’t preparing well. We were making a good effort, but it wasn’t 100% effort every single day. So, I started to write down these words, and then it started to take the shape of a baseball field and I was given some feedback from my colleagues. 

And I rely on people around me to help me quite a bit. Lo and behold, we came up with what looks like a baseball field. And in a baseball diamond, what they talk about, the most important part of it is the catcher, the pitcher, the shortstop and center fielder. So going right up the gut from, you know, is you’re looking at that photo. 

It is love, trust, commitment and effort. Those are the backbone of the Arizona Diamondbacks. And then there’s other words in there. I do know by heart, you know, adaptability, communication, awareness, focus, little things like that that are also on the periphery as you’re as you’re going about your daily activity. This is what happens every single day inside of our culture. 

And it’s the real thing. And it’s real because it breathes. There’s a lot of times people will come up and say, you ought to do this. You know, go coach and go get a team and give it your best try. You know, those are so empty. Those things are empty to us. We make these words breathe every single day. 

So, I talk about them every single day. The players start to gravitate to them, and we understand every single word inside of this culture, and we have defined it to our guys. What does this mean to me? What does it mean to you? What does it mean to a team? There is no misunderstanding. We talk about what it means to be an Arizona Diamondback, and we live these words every single day. 

Sandra: 

Right, this brings me to a point that we as financial advisors often talk about. It’s not time timing the market, but time in the market. It sounds like sports where it’s an everyday process, training, and getting out there, doing that hard work daily to get the outcome you really want, right? 

Would you say that there’s some similarities between like, say, sports and what you’ve learned and experienced from the investment world? 

Torey: 

I would say so 100%. I am a baseball manager. I had a uniform my whole life, but I’ve tried to explore and understand and see what makes different industries work. I think the investment world is unique because it is constantly changing and constantly evolving, whether it’s new laws or new guidelines that you must follow or new structures and new setups for investments and and different types of funds, it never stops. 

And one of my biggest fears is getting stuck in 2005 or 2015 and not growing and learning. And I think the best financial advisors are the ones that are consistently still studying, consistently up to date, very creative, very proactive and reactive. You must be both, but you must be an expert in that field. 

And I think the best ones never stop learning and growing. And that’s what we do every day on a baseball field. We believe in the process, the routine, continuity, and it shows up every day. 

Sandra: 

Looking at this baseball diamond that you have here and and, the effort, commitment, trust, love, and the philosophy behind the hard work that goes into building a great team. Are there any financial rules or habits you abide by personally? 

Torey: 

Nothing earth shattering but I will say this. I trust those that I have given that responsibility to. I ask a lot of questions and I fearlessly outsource questions so I can learn and understand what’s going on. And in return, I think there’s two-way communication. 

You must be an active listener and participate in the conversation. So, I always appreciate the give and take inside of that world. A red flag for me is when somebody is asking me to do something and forces me to do something. It seems desperate and pushing me to do something I’m not ready for makes me a little uncomfortable. 

And I always back out of that and ask for a little bit more time. So, I’m always very thankful for the types of conversations that go back and forth to where I can learn and grow and feel like I have an investment in this as well. And trust me, I’m a baseball person first and foremost. 

Trust me, I know where I am when I’m having these conversations. But when there’s desperation, I can sense it and I don’t like it when there’s desperation in those types of conversations. 

Sandra: 

That seems like coaching, right? So, you can’t force a player to behave, do a play or train the way you think without a buy in from them. So, you need that kind of bias. I mean, that sounds quite like my world where you have a collaborative relationship, where you walk together with the client and the financial advisor and everyone’s going to be on the same page, right? So, it’s your money, but at the same time, it’s the financial advisor’s guidance. 

And for both people to be on that same page, have that buy in and then, and then that just makes it easier to move forward as a team. 

Torey: 

100%. So, as you’re looking at that, the baseball field that we’re talking about, the love trust, commitment and effort. You’ve got to you got to build a little bit of trust. So, once you have trust, you can’t damage that. And you have got to build a very strong foundation. And I obviously have known you for almost 25 years now. So, know that in our conversations, if you don’t know me and I ask questions, you might roll your eyes at me. 

Sandra: 

Never Torey! Never (laughing). 

Torey: 

If you didn’t know me, you’d probably be like, my God, is this guy serious? What’s he talking about? But because of the trust and confidence we have in one another and the stability within our friendship, where I’m coming from, that takes time, effort, and patience. 

And you have invested hours, hours, and conversations that built this trust. So, when we walk through something, we walk through it together I never feel like I’m alone. 

Sandra: 

Well, I just love working with you, working with your family and extended family. And what I absolutely love is what you said earlier that you think it’s important to ask those hard questions. 

I always know that you care about the success of your financial life. Some people don’t have as much interest. And I feel a little bit alone in the desert, shouldering that responsibility. But I do appreciate their trust. I love, though, that you do show an interest in learning in, walking with me on our financial journey. 

I also must say that you are an incredible role model, right? So, I know you. I know your family. Everyone does absolutely look up to you, but the players must also look up to you. And they’re probably looking for guidance, not just with being a better player, but also maybe with their finances. 

How are you able to guide them? I mean, most of your players are in their twenties, maybe even thirties. Is there any piece of financial advice that you impart to them and hope that they will follow? 

Torey: 

Yes, I am in a unique position, right? I’m their field manager. I’m the one that must tell them what to do and put them in a lineup and take playing time from them. I give them playing time, read and react to what they’re doing. 

But I think every successful manager has a relationship with every player. So, they can touch on these types of subjects. You know, I think way back in the day, old school managers were like cowboys, and they just would say, “Do it, shut up. And I don’t care to know you just give me the give me the results on the field and we’re good.” 

But what I’ve learned over time is that I got to have a relationship with these young players. They make a lot of money. They’re able to make a lot of good decisions, and they’re also able to make a lot of bad decisions so I can branch off into that area once again. I wish I had more knowledge in the financial world and could give them a better landscape, but I’m able to give them the basics. 

I’m able to talk to them about some of the things that we’re just talking about. You know, love, trust, commitment and effort in the Arizona Diamondbacks should be the things you believe in with your relationships outside of the baseball field. And you hit on a you know, a huge word, caring. When you know somebody cares about you the right way, you’re in good hands. 

You start to build trust and build faith that they’re going to be able to make good decisions. So, I make sure, and I talk to them about the financial impact of what they could potentially have, what they’re getting ready to walk into. Don’t leave your money scattered on the table. Find somebody that you trust and find somebody that you believe in and find somebody that you feel like you can build a long-standing relationship with because you will today be very happy when you’re my age that you’ve made some good base, good financial decisions. 

I’ve had a lot of friends of mine. I had a lot of players of mine that have run through their fortunes. And at the end of the rainbow there is no pot of gold. I want to ensure there’s a lot of stability by them making good decisions, sitting down, becoming educated, asking questions and asking why this is happening in my world when it comes to their finances. 

Sandra: 

That’s interesting. It makes me think that, yeah, you come across a lot of different situations. You’ve seen a lot, seen it all right? You’ve seen people just wipe through the hard-earned money that they have gotten from being such successful baseball players. So, what have you seen? What mistakes have you seen in your career with some of the players or even yourself when you learn something from it. You learn something that you just want to pass on to others. 

Torey: 

Yeah, the players. It’s a great question because sharing knowledge and sharing experiences are probably the most valuable thing that the a teacher and I consider myself a teacher can give the students which in this turn of the players, yeah, I made an investment in a very successful stock and it was making a lot of money and I suddenly became the expert and I made the decision to pull that money out of the stock and enjoy it. 

Enjoy what I thought was fortune. And it was probably 20 years too early. And I’m here today thinking, if I had left that money in that stock, I would be in a totally different financial situation. So, what I learned on that day was, yes, I can be stubborn. 

Yes, I thought I knew everything, but I clearly can make a big mistake by being hasty and reading the wrong feelings. And I should have left I should have left it up to the expert and the expert was telling me you’re making a big mistake. But at the time, I thought it was I thought it was maxed out and it was far from maxed out. 

Sandra: 

Interesting. 

Torey: 

And I made a big mistake. So, I’ll pass that along to the players. You know, I’ll usually say, look, if you’re going to stay in the area, buy a home. If you have extra money, don’t go buy a car. Don’t do things that are unnecessary. Get your base and build that that trust with somebody that can handle your finances. And don’t try to be an expert outside your field. 

Sandra: 

Don’t knock yourself to the ground. You’re right. No one has a crystal ball. Hindsight’s 2020 and, it could have gone south, right? You know, they say, many people do build wealth through concentration, but keep their wealth through diversification. 

Concentration can work. And I’ve seen it I’ve seen it with some clients. Absolutely. But at the same time, it could have potentially gone in the other direction. There are different strategies, but I like how you lean on professionals now. You’re a professional in your field of expertise and it’s always good to have that advisory board with you. 

Right. Whether it be a CPA, estate planning attorney, financial advisor, loved one and whatnot. Your mom, a perfect example. Someone that’s really got your back and basically a team to support you. So, I think that’s great advice.  

Torey: 

If you want me to talk to you about picking up a ground ball or hitting a line drive to center field, I’m your guy. But if you want me to tell you about how to invest your money wisely, I am not your guy. So, I tell our young players, trust the people around you that they’re going to make good decisions and then take your eye off it and that that will take the burden off you. 

Right? Just relax and do what you do best and know financially that you’re going to be in a good spot because your hand, you have people that are experts in this field like you’re an expert on the baseball field. This is their thing. Take the burden, take the stress off, no anxiety financially, and you can go perform at a high level on the baseball field. 

Sandra: 

Absolutely. It helps you do your job and focus on your job. That brings me to my next question. You don’t necessarily have to be a baseball manager to be extremely busy, but you are extremely busy. I mean, you were one of the busiest people that I know. 

And I do know a lot of successful people that said, because you’re so busy managing a professional baseball team and making sure every player is set up to help the Diamondbacks win, it must leave you very little time to manage your own personal finances. How do you stay on top of things? Do you ever process? What do you do? 

Torey: 

Yeah, it’s a fairly difficult thing for me to do. I don’t micromanage it. I don’t pay attention to it every single day. I glanced at it at different points in time and then once again, just trusted the person and the people around me that have made these investments for me. Of course, I don’t run totally away from it. 

So, there is zero responsibility. I must be aware of what’s going on, but because of how busy I am, it is impossible. I just don’t have the bandwidth to do it every single day. Or by the week. But I like to stay informed. I think every good, good man or woman that pays attention to their financial structure and financial situation. 

I think it’s important and it maybe gives you a little bit of peace of mind when you see some things and you’re like, “okay, well, that’s going well,” or “that’s happening on the level that I wanted to.” And once again, you can have a very informed conversation and you can be just situationally aware of what’s going on around you. 

I can’t dive into it to the level that I want to. Maybe when I retire as a baseball manager I will. But for now, I know I’m in good hands and want to make sure people around me know that. And I want to give them the space to perform and do what they do best. 

Sandra: 

I love that. I love that you are trusting and loyal. I know that. And I love that you do lean on your trusted advisor. That said, I wanted to kind of switch topics to you wrenching that stock that shall not be named that you could have held on to maybe for 20 more years. 

In your heart, you might have looked at that as like a hiccup. You know it should be considered a successful investment in my book because you made money, but at the same time, you might consider it a slight failure because, if only I’d held on to it, right? 

But when looking at, say, for example, the Diamondbacks making it to the World Series, but just not quite winning it, I mean, I consider that a success because you made it to the World Series and there are only two teams that make it to the World Series. So, to me that’s a success. And to you, I know it was in some elements a disappointment, but what did you learn from it, right? Just like you learned from that stock experience, What you learned that you can really take away from your experience making it to the World Series? 

Torey: 

Yeah, I know that I’ve shared how I felt with you in another conversation. And you know what? I went through disappointment, the feeling like a failure. You didn’t do it. You get to the edge, and you can’t quite jump in the right direction. You kind of feel helpless that those were just the instinctual things that I was feeling right when the game was over. When we got eliminated in the World Series. But time has told me a different story. Time has told me that I am proud of what we did. 

I am proud of the organization. I am proud of the culture that we have built. We are going to remember the path forward every single day and remember what our purposes were every single day we did. Maybe, we got an A-minus on the tests. Everybody wants to get an A, but an A-minus was okay. 

So, I feel the failures, the coming the coming up short. However, you want to categorize it. I find that extremely motivating because I do strive for excellence. You know, it’s so impossible to be perfect, but I strive for excellence every single day. And that’ll be my message to the team this year. We did it, we got very close. 

We know what it tastes like. We know what it smells like, we know what it feels like. And there’s no reason for us not to go out every single day and give our best to one another. And that’s what it comes down to. You’re playing for the person next to you or playing for the name on the front of you on the front of your jersey rather than the back of your jersey. 

And we are a team that’s going to continue to grow and learn every single day. What I really learned is that anything is possible. My mom would send me texts and she would say, “You’re the little engine that could, Torey.” You just keep going on marching forward. Anything is possible. 

We were that that little engine. We were that little brother that grew up quickly. We believe in process. We believe in routine. And that when you are a united team, when you are a connected team, you’re a very dangerous team. And I know that’s a theme in every business. If you’re a connected business, if the boss can talk with anyone on the floor, that is helpful. 

And there’s connectivity from from player one player to two, player 45 all the way through to the front office and the manager. And we are extremely connected, and we can do very dangerous things. And I think everybody really believes that in their core, in their heart when, when they walk into our clubhouse. 

Sandra: 

Yeah, you can see it on the field, and here I think something you mentioned about putting your best foot forward is that little engine that could be inspirational. Is that something that you want to be remembered by? Is there anything else you want to be remembered by? That’s both on and off the baseball field right here. 

Torey: 

I think I want to be remembered by some of the values that I have. The wins and losses are going to come and go, and I love that. When you win, you’re the smartest manager in the world. When you lose, you’re the dopiest manager in the world. Right? But every single day I live by my values. I live by being accountable. I live by being open and honest. I live by being a good listener or a good communicator. 

I live by having a growth mindset. That’s what I want people to think of when they think of me. A good friend, a loyal friend, a loyal leader, and somebody that strives to make those around him better every single day. Those are unchangeable. You can’t win or lose games by some of the things that I just said. That’s who I am in my core, and that’s what I want people to think about when they think of me. 

Sandra: 

Last question before I let you kind of finish it off with your own words. I want to know where you want to be in five years. And obviously, you want to be standing on the podium with your team having won the World Series. But do you have any goals financially and professionally? Besides winning the World Series and how do they kind of connect?  

Torey: 

Yeah, well, I mean, a lot to unpack there. I think about things differently today than I did five years ago, clearly ten years ago and maybe even two years ago. I financially want to make sure that everything is secure and in place without worry for myself, my wife, my children. 

It’s just who I am. I am my stuff. I have a father that was named Samuel Veloso. I was raised in a certain way.  

Sandra: 

Great man. 

Torey: 

Thank you. And I just feel like I care for those around me, and I want to make sure everything’s okay. 25 years ago, that was the last thing on my mind. You grow up and evolve, you maybe mature. I guess I’m an older man now, but I just want to make sure that everything is set up in a way where there’s limited worry and there’s limited concern that if we want to go to Starbucks every single day in 15 years when I retire, we can go to Starbucks every single day for two years.  

So, I have made some good financial decisions. There is some financial stability and I just want to continue to make sure that it’s moving in that direction. That gives me great comfort when I put my head on the pillow professionally. I do want to win the World Series.  And you’re going to think this guy is the biggest idiot in the world, right? 

Sandra: 

Never! 

Torey: 

If you win one, I think people could say you’re lucky, right? You guys had a nice break here and there. You want to win two if you want to put a stamp on it, you know what I mean? You’re like, one is good to win. I’m here. You got you want to carve your name in the tree is what you want to do. 

Sandra: 

Yeah, you and the Arizona Diamondbacks. 

Torey: 

I want people to think of the Arizona Diamondbacks as a championship organization that had done it at a high level for a long time. And I don’t want to do this forever. I have a lot of friends of mine that have done this for a long, long time. And they kind of die in baseball. 

I have a very unbelievable family. And I want to repay them with some of the time and commitment that they’ve given me. So, if I do it five more years, I wouldn’t be surprised if I do ten, whatever it is, I got to a certain point in my life where I’m getting closer and I think about things a little bit differently, stability in my personal life, financially and personally and professionally to accomplish a few more things. 

And we’re close. I feel like we’re just about there.  

Sandra: 

I love it. It looks like professionally, you have a plan of great success and then financially it looks like you want and have a plan that you are living out, right? So, you know, it’s like having a playbook that you really abide by, to make for a successful win. 

So, I think that’s fantastic. Is there anything you want to leave us with, any final words you want to say before we end? 

Torey: 

It’s always hard for me to put words on things, so you’re able to kind of guide me down this path. But I just feel like every successful business, every successful organization, we are business in your business, world organization, I think there’s an overlap when you do it right and you do it with care, and you do it with love. 

That’s separator. I don’t care what people say when you give somebody that undivided attention, when you put down your pencil, when somebody walks into your office and look them in the eyes and have that type of conversation that he’s looking, he or she is looking to have with you, it’s invaluable. So sometimes a text is great, sometimes in emails is even better. 

But the best thing is, is when you can look somebody in the eye and have a conversation where, you know, you have their undivided attention and vice versa. That to me is the greatest connector anybody can have every single day. So, when you think you can’t give somebody 5 minutes, you just don’t know how far it’ll go for us. 

Sandra: 

That’s awesome. Well, you will always have my undivided attention, I can tell you that, because you always have something incredible to say that I gain value from. So, I appreciate you. Thank you so much for your time. Torey Lovullo. And I can’t say I wish you two wins because I feel confident that you will have two wins. 

And I know that you know more than anyone else’s. It’s not wishing that does it. It’s hard work and tenacity and that that stubbornness that some might think is a bad thing that I think is an amazing, good thing that’s gotten you to where you are today. So, thank you so much for your time.  

Torey: 

Anytime. Sandra, Thank you for the time. 

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.  

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. 

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.  

Pointwealth Capital Management and LPL Financial are seperate entities. 

Wealth managers have been so focused on shaking the trees for high-net-worth individuals in recent years that they’ve neglected to see the forest of minority market opportunities directly through them.

Minority markets have long been overlooked in America as financial advisors have generally preferred to fish for clientele in pools of established wealth. In many respects this is logical, of course, considering the time and energy it takes to prospect for new business. Like Willie Sutton, who robbed banks because “that’s where the money is,” wealth managers understandably gravitate to individuals with extensive, well, wealth.

Furthermore, it’s hard to blame an advisor for not chasing minnows when a single whale can help cover far more of their monthly nut. Smaller clients take as much time to service as big clients or, at least, so the saying goes.

But for many savvy advisors, especially those who are minorities themselves, minority communities offer huge untapped potential and opportunities to grow those minnows into whales, developing strong relationships along the way.

“A major benefit of bringing financial planning to minority markets is new client referrals. It’s very rare that we bring on a new client that was not a referral from an existing client” DELVIN JOYCE, PROSPERITY WEALTH GROUP

“In my experience, both minority and female markets are actively aware that they need help managing and growing their wealth, but they often feel intimidated or unwelcome by our industry,” said Debra Brennan Tagg, president of BFS Advisory Group.

“When they understand that you ‘get’ them and can provide services that they need with a fee that is transparent, they are very eager to work with you.

“For us, it is a business case – there is just so much untapped potential in these markets,” she added.

MY CLIENT, MYSELF

Having a diverse staff also provides a big advantage when attempting to break into minority markets. To put it in advisory terms, there’s a big difference between Finra’s “Know Your Customer” rule and truly knowing your customer through a shared background.

“We have the cultural competence to help our clients without coming from a place of judgement for mistakes they may have made prior to working with us,” Joyce said.

The benefits flow both ways, he added. “We personally benefit from working with diverse clients by knowing we are making a difference, reversing generational curses, and doing our part in helping to close the racial wealth gap by expanding access to financial planning advice.”

Similarly, Cho sees numerous benefits to running a diverse financial practice, including having a better chance of avoiding biases and potential pitfalls that a non-diverse financial practice may run into. This is the result of the wide array of personalities, opinions, and experiences that are present across a diverse company. In her opinion, that fact pays dividends, whether that’s in appealing to a wider range of potential customers, having a tighter-knit company culture, or having a broader set of entrepreneurial ideas.

TAPPING INTO MINORITY MARKETS

Tagg said she uses “transparency” and “candor” to gain access to minority investors, celebrating how they are unique instead of acting as if they won’t succeed with their finances.

“We engage them and we focus on them as individuals as opposed to a ‘female’ business owner or a ‘minority’ executive,” she said.

Delvin Joyce, financial planner at Prosperity Wealth Group, part of Prudential Financial, primarily serves Black Americans, and he said that often entails dealing with first-generation wealth. As a result, he finds his clients are passionate about building intergenerational financial security for their families. That makes them extremely coachable and enthusiastic about learning, he said.

Not only that – it also leads to referrals, the lifeblood of any advisory business.

“Working with a financial planner is a new concept in some minority communities, and our clients are typically so excited about the work that we’ve done with them that they want to introduce us to their friends and family, so a major benefit of bringing financial planning to minority markets is new client referrals,” Joyce said. “It’s very rare that we bring on a new client that was not a referral from an existing client.”

“For us, it is a business case – there is just so much untapped potential in these markets” DEBRA BRENNAN TAGG, BFS ADVISORY GROUP

Sandra Cho, president of Pointwealth Capital Management, said being a minority herself has enabled her to tap into minority markets, whether that’s through someone she knew directly or a cross-referral from her network. That said, she believes special strategies aren’t necessary to tap into minority markets. Instead, she said, employers and companies need to properly vet their candidate pool, and not discount individuals as mere statistics.

“Individuals who are minorities use the same websites and databases as their non-minority counterparts,” said Cho. “It is just the fact that they are not the typical candidate or hire that a company usually makes. Thus, the burden is on the company to take the time to truly vet individuals, as their true value-add may be more than what first meets the eye.”

“I have also found that a diverse workforce also fosters enhanced employee engagement and, subsequently, boosts employee retention and productivity,” Cho said. “A diverse workforce leads people to be pushed outside of their comfort zone as they are exposed to personalities and experiences that are new to them. This then motivates them to explore more and engage with those that are different than what they are used to.”

As for Tagg, she finds having a diverse staff not only more interesting but challenging as well.

“We have different ideas, backgrounds, experiences, and outlooks on where both risks and opportunities exist,” she said. “My world view may be completely different than my teammates’, and that is a benefit for our clients as we consider all options for how they can succeed – or to identify where their plan may go off course.”

By Gregg Greenberg – ggreenberg@investmentnews.com

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. InvestmentNews, Pointwealth Capital Management, and LPL Financial are seperate entities.

Hi, this is Sandra Cho with Point Wealth Capital Management. Today I’m going to be going over January 2024. January proved to be resilient and bounced back from a slow first half. The S&P 500 finished the month, up 1.7%, the Dow up 1.3% and the Nasdaq up 1%, much like 2023. Large cap growth stocks led the way with the largest gainers being communication services up 4.8% and technology up 3.9%.

Nvidia continued its incredible run, finishing January up a stunning 24%. Developed international markets also did well with EAFE up 3.22%. On the flip side, emerging markets dragged down by China turned out a disappointing -4.6% for the month. The AG finished January basically flat at -0.3% as the Fed tempered rate cut expectations. However, we do still see bonds as being attractive due to favorable pricing and coupons at levels not seen for over a decade.

January ended with the conclusion of the first Fed meeting of 2024, with Powell signaling that the Fed’s rate cutting cycle will be slower than first anticipated, he basically insinuated that a cut at the March meeting was relatively unlikely and continued to mention that the Fed will be data dependent. This led to a sharp sell off in the markets following his commentary. Here at Point Wealth Capital Management, we have always held the belief that March was too early to expect a cut with all things considered equal. With over 40% of the S&P 500 having reported Q4 earnings, the overall results have been mixed 75% of earnings that have come in beat expectation.

However, overall earnings are tracking flat year over year. Large tech companies such as Microsoft and Google have seen their stocks drop despite solid earnings reports. The Magnificent Seven stocks seem to be losing steam. Quarter four GDP came in at an annualized rate of 3.3%, well above Wall Street’s 2% estimate. This gave investors continued optimism about the resilience of the economy, even as rates stay inflated.

Continued consumer spending remains strong with December online sales growth coming in at 9.7% year over year, people are still spending, especially at restaurants which had 11% year over year growth. Additionally, in other positive news, the PCE, which is the Fed’s preferred inflation gauge, continued to slow in December to 2.6% year over year, and consumer confidence rose in January to its highest level in two years.

Not all news was good, though. Private payroll growth declined sharply in January, possibly signaling a slowdown this year. While nothing is guaranteed, a positive January has historically been a bullish sign for stocks since 1950. The S&P 500 has posted an average annual return of 16.8% during years that had a positive January like we had last month. Let’s see if economic and market data can continue to move in the right direction during February and don’t forget to leap.

See you next month on point Wealth, Capital Management Point Wealth, Perspectives.

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. InvestmentNews, Pointwealth Capital Management, and LPL Financial are seperate entities.

This is Sandra Cho with Point Wealth Capital Management. Today I’m going to be going over 2023 in review entering 2023. We were hit with a regional banking crisis and investors were expecting a recession by the second half of the year. Instead, inflation cooled and the economy remained resilient. The markets climbed the wall of worry and ended the year with the S&P 500 up 24.2%, The Dow up 16.2 and the Nasdaq on the podium up 44.7%.

There were seven stocks that took the lead early in the year. There were aptly named the Magnificent Seven and they include Nvidia, Meta, Tesla, Apple, Alphabet, Amazon and Microsoft. Together, these seven mega stocks had an average return of 111% for the year. Because of these stocks. Large cap growth outperformed value by the second widest margin since 1978.

The Magnificent Seven contributed over 60% of the S&P 500 year to date return and currently make up close to 30% of the market weight of the S&P 500. They catapulted the NASDAQ 100, up 55.1%, its best performance since 1999. Besides these giants, there were other surprise winners. Duolingo was up 220% Abercrombie and Fitch jumped 274% and ImmunoGen ended up 522% for the year.

International developed markets also finished positive on the year, coming in at 18.4%, while emerging markets finished at a more modest 9.2%, partly due to China having a disappointing recovery from its much anticipated reopening. The Fed raised interest rates four times over the year, with a total of 11 rate hikes during 2022 and 2023. They stopped hiking in July and at the December meeting they signaled they will likely start lowering rates, With S&P 500 doing so well in 2023.

You would think all stock sectors would have been positive. Surprisingly, three sectors were negative and the health care sector barely broke even. Consumer staples, energy and utilities were all negative. Last year, volatility remained very high in the bond market. The yield on the US Treasury ten year note started and finished 2023 near 3.8%, but during the year rose to a 17 year high, near 5%.

High yield bonds performed strongly as the economy avoided recession in 2023. US high yield bonds gained 13.5% for the year, making it the best year since 2019. In 2023, the Treasury rate increase caused mortgage rates to rise. As mortgage rates jumped, housing sales dropped. But because inventory was low, housing prices remained strong. The consumer came to the rescue in 2023, with consumer spending representing two thirds of our GDP for the year.

Finally, globally, we continue to see fighting in Ukraine and a new warfront in Israel emerged after the terrorist attack, killing 1200 people. The Suez and Panama canals struggled with low water levels, which affected global supply chains. And now the Suez is contending with Houthi attacks. Still, 2023 was overall good, with markets up and hope for a soft landing carrying us into 2024.

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Pointwealth Capital Management and LPL Financial are seperate entities. Tony and Anna Valdez with PRMG are not endorsed by or affiliated with LPL Financial or Pointwealth Capital Management.

Hi, everyone. This is Sandra Cho, Pointwealth Capital Management and we are about to go over the real estate outlook, buying, selling and financing in today’s market environment. I am going to be introducing a very wonderful panel of a couple to people that are experts in their field of buying and selling real estate. As a real estate agent and then also mortgage and real estate financing experts Ann Duran Valdez and Tony Duran Valdez. 

In the meantime, I’m going to quickly go over the 2024 outlook. First, 2023 was interesting. The market saw double digit returns when we really thought at the beginning of 2023 that we might see a mild recession. 

Thankfully, we did not, and we saw better than expected consumer spending, which helped things. Now, in 2024, really the name of the game is going to be about rates and inflation. So, inflation continues to come down, moderate returns, consumer spending and jobs. And I’m going to be going over some bright spots in the markets. Yet where do we see rates and inflation heading? 

Well, the Fed has already announced that they’re going to be cutting rates at least three times in 2024. And why does that matter? Well, it’s less costly for people and companies with debt. So, just like Tony Valdez is going over today, mortgage rates are coming down. It’s less costly for people to finance cars, houses and take out personal loans as well as credit card debt. 

Also, not to mention student debt, which we must also be concerned about, but also companies. Now, not all companies are the same going to be going over that a little bit. It’s easier for companies to finance their growth and spending, and it helps smaller companies more than large. So, we might see a pickup in small cap which has underperformed relative to these huge, large companies, tech companies, and we call them specifically the Magnificent Seven, because there are seven of them, including NVIDIA and better, for example, that have done exceptionally well. 

These seven growth stocks in 2023 went up 75%, if you believe it, and that made up more than half of the gains of the S&P 500 last year. Moving on to market returns, what can you expect now? No one has a crystal ball, but obviously, you know, we do have what our expectation for this year might possibly be. 

The market is expected to be choppy. It’s a presidential election year. Generally during presidential election years, the market tends to have more volatility. That said, it looks like we’re going to have a soft landing, which would be amazing. There might be a mild recession, but let’s remember that a mild recession is part of a normal market cycle. 

We expect stock market returns for the S&P 500 to be high single, low double digits and we do expect that there will be a soft landing. That’s what it looks like. And I’m going to go over that a little bit more. Why do we expect a soft landing? Consumers are still spending, and consumers make up two thirds of the economy. 

Even the Council of Economic Advisors and the government says as the US consumer goes, so goes the US economy. So, consumers keep spending. And why do they keep spending? Well, the job market is still robust and if you’re working, you are spending. But there is a disconnect between the numbers because it looks like employers are saying that more jobs have been created than expected, over 300,000, in fact. 

But the household survey says over 80,000 jobs have been lost. So, there is that disconnect. Now, there are some bright spots in the market with interest rates forecast to go down. We have actually repositioned the portfolio to have some more longer-term bonds and lock in higher interest rates. Now that we know they’re going down, we are also overweight in value, which has not gone up as much as these magnificent seven tech stocks. 

Large cap growth asset classes year to date, as short as it’s been valued, outperformed. Growth and high dividend paying stocks are pro these high dividend paying stocks and small caps because they are trading at a discount and select emerging markets. Japan is not emerging market, but it is an international market we are very excited about. 

India is the emerging market that we are excited about. We’re very excited about Latin America as well. And home buying and building looks to be on the upswing as rates come down. So, you can see our full outlook on Bloomberg. You can click on the link on our website https://pointwealthcm.com. It’s on the landing page, right when you log on, if you scroll down. 

Also, if you click on Money Talk, you will be able to see the interviews and our market perspective as broadcast on Bloomberg TV and Radio and Yahoo! Finance. With no further ado, I am going to now introduce Tony and Anna of Duran Valdez.   

Happy New Year. I have known Anna for, you know, a few years since college, and Anna has over 20 years of experience. She primarily specializes in the valley, anywhere from Palm Springs to Santa Clarita and Ventura County. 

Anna is going to be talking about the real estate market today, both from the buyer’s perspective and the seller’s perspective, as well as, her outlook. So, Anna, I get lots of questions from my clients and I want to know from you, what are the answers? What are the most common questions you get regarding real estate right now? 

Anna: 

Most common questions are is now a good time to buy? Is now a good time to sell? What’s happening with the market? Is it going to crash? Where do I see it going into 2024? Here we are in 2024. So, to answer all those questions, basically it is yes. It’s a stellar time to buy and build one’s equity. 

It’s a great time to sell. There are although there is still limited inventory out there for buyers to buy, sellers are now realizing, okay, they’re ready. So, all in all, yes, it’s a great time to buy. So, right now I know that a lot of people are worried that the housing market is going to go down. 

Sandra:  

You mentioned that you don’t see it crashing. Inventory is low. There are so many buyers out there. What do you see as far as a housing market? Do you think it will crash and go down soon?  

Anna: 

Now, what I’ve seen and followed, is that as interest rates rose, we saw the prices of the homes teeter totter and balance out a little bit. 

Sellers were no longer shooting for that overly aggressive list price hoping to get that now they’ve had to either a price reduction as the rates went up, they saw that their house wasn’t moving at that price. So, we saw in the fourth quarter pretty much the prices normalized and even out now that we’ve had this tick downward of interest rates, it’s nice to see that prices have normalized. 

However, all the economists are saying that, yes, prices will probably most likely continue to climb up, especially if buyers enter the market. That kind of supply and demand really will bring prices up again.  

Sandra: 

Right, and then right now, it looks like a house sells after about 50 days (about 1 and a half months) on the market, including a 30-day escrow. A seller is getting about 100% asking price. Are you still seeing the multiple offers and the crazy, 100,000, 1 million over asking type of environment, or you see a more stable evening out.  

Anna: 

We are not seeing the crazy market that we did during COVID where interest rates were super low. That money was basically very cheap. And so, yes, the buyers would go in 100, 200, $300,000 over ask over list price, and it would appraise. Everyone was wowed, happy and thrilled. Now we’re not seeing the multiple offers of money per house during that time. We’re seeing about 2 to 5 offers on a well-priced prepared home. 

Sandra: 

Fantastic. And so, some people like to wait until the spring to buy. Would you say that’s the best strategy or would you say they should get out now?  

Anna: 

It’s a great question. It obviously is always going to fall back on what your personal circumstances are. If you can wait, maybe waiting is going to behoove you because you want multiple offers, multiple people coming through the house. Perhaps you need the next two months to prepare your house to go live in March. 

You were a seller, right? Yeah, that’s more for a seller. I was talking more on the buyer side. I’m sorry. Would you say it’s better for buyers to wait for spring to, get out there and look or would you say like they should get out now and start looking for the home that they want to buy? 

Less competition, even though the rate has dipped, you can always refinance, but getting out now you’re shopping with maybe two or three other shoppers as opposed to in the spring, you’re going to be shopping with 10 to 20 more shoppers. It doesn’t hurt to start looking if you find that house that you absolutely love and must have now, then there will be less buyer competition out there. Usually right around this time. 

So, there are pros and cons to it, but then you have all the time that you want depending on your situation. If you want to wait for a higher inventory period like the spring, like in March and April. If you’re one of those buyers out there that wants to see everything before you decide, then yes, perhaps, perhaps spring and summer may be your best bet. But if you feel like you are ready right now, go ahead.  

Sandra: 

And then what do you see as some of the pros right now about home buying? You know, it seems to be super high. Do you see that is better? Do you see more movement? Do you see more movement in the market? If you’re going to buy? 

Anna: 

Right now, I feel like it’s a great advantage because, again, like I just mentioned, there is less competition and less buyers out there to compete with. In other words, maybe you’re not having to bid over ask price, but also as the market continues to improve and values continue to rise, you’re moving into that house with some equity already. So that’s a huge benefit as well.  

Sandra: 

Now from the starter point of view, where do you see what a seller can do? What’s the best advice you can give to someone who is looking to get the best price on their home and they’re selling it? 

Anna: 

First and foremost. I would say if you’re aware of anything that you may want to repair or update, you have a discussion with your professional realtor. And then on a more simplistic level, step outside your house, put on a buyer’s cap. Put on your buyer eyes and walk your home from curb to backyard and just kind of walk through like, “Hey, is there anything that you notice that if you were to buy your own home”. Would you buy it for the price that you’re asking? 

In other words, will a fresh coat of paint on the front door help? That always makes that great first impression. New flowers in the front yard, a fresh coat of paint, windows cleaned, floors washed. Some very general things make the house shine in its best way. 

I always like to say when a homeowner is going to put their home on the market, “you have to think about it like you’re going on your prom date”. You get your hair done, your makeup done, a nice new dress. Everything from head to toe is just super nice. You make that great first impression. 

And I found it valuable when I sold my house. I’m a professional as a professional. People use me because they know I’m making investments day in and day out. Now, with a professional realtor or a real estate broker, they have that. 

They’re able to look through and say, “Hey, we might want to stage this, but, you know, you might want to declutter, you might want to get a pre inspection to help identify items to repair and replace prior to going live, you know, these kinds of things”. For me, I really value that expertise. 

Right. So anyway, and I know what they want these days. You know, they absolutely are gathering information. They’re getting inspiration from Pinterest. They know what they want, whether it’s a small little house or a large home. They know what they want.  

Sandra: 

Yeah. Thank you. And then you know what? What should someone look for in a realtor? What are some of the the main qualities that they should really make sure that they have, whether you’re buying or selling?  

Anna: 

I would say some key points are that you want somebody who is a strong negotiator and good communicator. Someone that is experienced and can foresee any issue prior to an issue coming up. How are you going to know that in just meeting with them, meet with them, have a cup of coffee? 

All realtors love to meet with clients, buyers or sellers to feel each other out. You know, it’s got to be a mutual friendship going forward. You’re going to be with this person for the next 30, 60, 90 days (about 3 months). You really want to feel like they are advocating for you and for your best interests. 

Sandra: 

Then what about capabilities? Like is it important, for example, you know, to be able to do drone videos, virtual tours, social media, paid advertisements to a targeted audience partnering with top realtors? Is that important or is it just about the relationship knowing that they’re an advocate?  

Anna: 

No, absolutely. You’re going to want, you know, all those things I mentioned, plus partnered with somebody that knows how to market a property correctly. We often get tips that a realtor just sticks a sign in the yard and puts it on the MLS. Well, that is not the case anymore, nor should that be what any seller expects or would hire somebody for. You want somebody to market it in so many different realms from social media, internet, networking, networking with other brokers, buyers, investors, and all those things. 

Sandra: 

Right. One thing I’ll mention is when we bought our house, it was interesting because we were the only people to view it. It was a private listing, and it was just, you know, within that network of realtors. So, you’re with Compass, and I know that you share listings with other companies, realtors and a lot of realtors. 

Anna:  

Well, not a lot. Some realtors can do that.  

Sandra: 

Right. Second to last question, hot spots. Where are people moving to? We hear a lot about people moving from California. Where are they moving to right now?  

Anna: 

We’ve seen the largest departure from California. About 69,000 people have left California and moved to Texas. So that’s anywhere from New Braunfels to Austin, Dallas suburbs. Texas seems to have been the hot spot this past year with South Carolina, Tennessee, Montana coming in as well. And anybody that is coming into California, San Diego has been the hot spot. So, we’re probably evening out a little bit with how many people have left California, too. How many people are coming in.  

Sandra: 

Last question, because I know you’ve got to run. First, tell us anything I might have forgotten to ask you that you wanted to impart. I also wanted to touch base on some of this controversy about whether I should use a realtor? The commissions are so high, maybe I’ll just do it on my own or use a discount broker or use the seller’s agent. What can you speak to about that?  

Anna: 

Good question. I mean, it’s always obviously that whole mantra of you get what you pay for. So, you want to work with somebody that is respected, licensed, knows the ins and outs of real estate law, knows the ins and outs of contracts, your contingencies. This is the largest purchase of your lifetime. 

You want someone that knows how to read, understand, follow the timelines, and be that person for you and handhold you through the process. That would be my biggest suggestion for anybody looking to sell or buy. You know, there’s a lot of liabilities going on right now or lawsuits going on. You know, we’re held liable. Our job is to protect either the buyer or the seller from any litigation whatsoever.  

Sandra: 

Okay. Fantastic. Any comments, anything you wanted to add or Anna? 

Anna: 

I would just say 2024 is going to be a really strong year. We’re already feeling it. Both my husband and I are getting preapproved right now. If you’re looking to buy or have relatives looking to buy, it’s always good to start early. I’ve already gone out to show property right up day after Christmas with a newly married couple. I mean, they’re ready. They lost out this last year on the economy and they’re ready now. So, I would say just roll up your sleeves and get in touch with a professional. 

First and foremost, your lender and the realtor partner together. And let’s have a discussion, a consultation on what are the steps to take to get out there, either to buy or sell.  

Sandra: 

Okay. Thank you so much, Anna. Really appreciate it. And have a great day. I know you’re leaving right now. Thank you. 

Anna: 

Yes, thank you so much for having me.  

Sandra: 

Okay. So now we have Tony Valdez, thank you so much.  

Tony: 

Hey there, Sandra, How are you?  

Sandra: 

Great. Tony Valdez, thank you so much for joining us. I just wanted to introduce you. You have around 23 to 24 years of experience. I know you’re only 24, so you must have started at birth. And I’ve known Tony for as long as I’ve known Anna. So, all the way from, those college days just yesterday. So, Tony is with PRMG. He does everything from mortgages, home equity lines of credit to even unconventional loans. And I’m going to be asking him about that because I have had several clients that have needed to do that. But, Tony, take it away, let the viewership know what’s going on right now in the mortgage industry where rates and the environment. 

Tony: 

Yes, perfect. Great. Again, thank you for having me, Sandra. Great to be here. Yes, the mortgage world saw 2023 as a rough year. We saw rates climb up to eight and a half percent, which is scary. It squeezed out a lot of buyers from being able to afford homes because they went from a low-rate environment to now a super high environment. 

So, I’m super excited for what the new year brings. 2024, It looks like the Fed has come out and said that lowering the rate is in their radar. Hopefully at least three times is what they’ve come out and hinted at. No promises or guarantees, but that bodes well for an industry that came to a screeching halt in 2023 as far as transactions go. Right when rates went up, when compared to what we saw during COVID 2021 where rates were super artificially low and lots of activity going on from a refinance or even a purchasing standpoint. 

But overall, I’m super excited for what the new Year will bring. We’re looking forward to helping a lot of families that have been on the sidelines waiting for the rates to come down. And it appears that we peaked as far as rates going up and now, we’re seeing rates with with good credit. As of today, as low as 6.375, which is phenomenal and that’s on the conventional side. 

Now if we look at VA or FHA rates could be as low as 5.75 again, with excellent credit. Again, I’m really excited about that. And I’m looking forward to what the new year will bring.  

Sandra: 

Wonderful. So, we asked some questions about rates and credit. What would you say is the base credit score that you need to qualify for a home equity line of credit and for a mortgage? 

Tony: 

Right. Great question. And that’s a question that we’re often asked. Right? What’s the minimum and a mortgage? The mortgage world is all about risk. The better your credit score, the lower risk you are, so the better your credit score, the lower the rate that you will have. If we’re speaking about minimums, the minimum credit score we can lend on is as low as 585 to 580, which is low. 

But that’s the bare minimum on a first mortgage. If we’re talking about home equity lines of credit, they’re a little more conservative. And the minimum credit score you require there is 660. Again, it just speaks to the risk. The lower the risk, the lower your credit rate will be. 

Sandra: 

And then you mentioned before, a lot of people got squeezed out last year. Rates just skyrocketed and a lot of people also got scared. HELOCs, home equity lines of credit really took off. What are some reasons why people opened or started an equity line of credit?  

Tony: 

The home equity line of credit is something that’s very popular, very common that we do right now. It’s a way for folks to tap into their equity for short term purposes. It’s never a long-term vehicle, but for short term purposes, it is of great use. For instance, we have a lot of clients that use it for home improvements, home renovations, home additions, the likes of like an ADU that’s very popular nowadays. 

Sandra: 

We’ve seen people use it for big events such as weddings or paying for tuition or schooling for kids. Right. And in in some cases, we’re having folks tap into that equity to help their kids who perhaps are buying for the first time, as we’re speaking, right down payment affordability, high rates, high payment are all has come together. 

Tony: 

Right. So, it seems many first-time buyers need help from mom and dad. Mom and dad can easily tap into their equity via a home equity line of credit right? And I had also heard that people use it for debt consolidation estimated tax payments. I’ve experienced my clients use lines of credit for estimated tax payments. Business owners using their home to finance cash flow for their business even if they just want to take out some money because they’re worried. They want some extra cash sitting on the sidelines because they’re worried about how things might go.  

Sandra: 

I’ve definitely heard of all the things that you’ve mentioned as well. Now, where do you see the 30-year fixed going in 2024? Can you speak a little bit about that?  

Tony: 

Yes. Again, it’s been hinted by the Fed that the rates will come down and we’ve already seen that take place. I think rates will continue to drop. There’s no telling when, but that’s the direction that we’re going. As inflation has tapered off a little bit. 

Right. My hope is that rates will continue to go down maybe into the fives, low fives for perhaps somewhere healthy. I’d hate to see your rates go down to the artificially low rates that we saw in the past. But I don’t think that will happen. For me, a healthy rate market would be anything that begins with the five and hopefully in the low figures I think that would be that would be healthy for the real estate and mortgage economies. 

Sandra:  

Absolutely. And I mean, a lot of people talk about when that is going to happen? Is that going to happen in March when they meet first? Some strategists think that they’re going to start lowering rates in March. We’re of the mindset that here at Pointwealth, that it’s probably going to be like mid-year or late year doesn’t really seem to matter, though, as far as mortgages are concerned. Mortgage rates started coming down just when the anticipation that the Fed was going to lower rates. 

It’s been dramatic how the mortgage environment, the mortgage interest rates have been affected just in anticipation of the future, lowering of the Fed rates. That’s interesting. Now, in regard to something that we hadn’t spoken about before are like, you know, before in 2008, after or I should say after 2008, banks became very, very strict. Do you see banks being as restrictive as they were before, or is it is it kind of easier or easy to get a loan now?  

Tony: 

Well, yes and no. Banks continue to be very restrictive in their lending practices, right? In the sense that we want to ensure that whoever is applying for a loan can make payments on that, to make good on that payment. 

I think we’ll never see what we saw back in 2008, right? To that end, as an independent mortgage banker myself, we also have other means of lending to qualified individuals, individuals who perhaps are self-employed or perhaps have a large portfolio, but don’t have a pay stub or a W-2 or don’t show anything on their tax returns. 

It doesn’t mean that they’re not qualified or able to make a payment on their loans. It just means that lenders like me, who are independent brokers need to be creative and have outlets for such borrowers or consumers to be able to take on a loan.  

Sandra: 

Right. So, I remember when we were talking a little bit about before the webinar that you were talking about non-QM (Non-conforming mortgage) loans. Can you talk a little bit about alternative documentation loans and QM loans being statement loans, no ratio loans, asset dissipation, asset depletion loans. What are some of these avenues that you’re seeing work nowadays for those people that don’t necessarily qualify for a traditional loan? 

Tony: 

Right. Great question. So here at PRMG, we use the waterfall approach to qualifying individuals where we first look at an individual’s financials to determine if they’re able to go the full dark route. If not, then the next step is to consider going into a non-QM and non-core. That simply means that we’re using one of those creative ways to determine their ability to pay back on those monthly payments, right? It could be something like a bank statement loan, right? Where we’re measuring a self-employed individual’s average deposits for the last 12 months. 

Sandra:  

It’s still a very secure way to ensure and to qualify by measuring what’s coming in. 

Tony: 

Right. And then determining that even though he doesn’t show a net gain on his on his tax returns, he’s still generating a lot of monthly income in that one-year period, right? Other ways could be, as you indicated, asset dissipation loans where we take an individual’s large portfolio that they might have and then maybe a 360, 30-year average. 

I’m sorry, divide that by 360, which is a 30-year period or a 20-year period, and be able to assume that if needed, they could start generating that income to pay back the loan. So, we have bank depleted like basically takes systematic withdrawals out of their investment account. As long as the numbers look like they would be able to cover the entire mortgage liability, they would still qualify. 

That approach is unlike going to a large bank where they have a one size fits all. If you don’t fit their perfect box, then you can’t get a loan whereas an independent mortgage banker is able to be creative with our solutions depending on the client’s situation. 

Sandra: 

That’s wonderful. I wanted to ask you about what you tell someone who gets this. Interest rates are coming down. Maybe they found the house that they want, but they’re worried about getting a mortgage right now. What do you say to those people? How do you guide them? 

Tony: 

Great question. As we know, owning a home is our largest investment. And with that comes a lot of uncertainty, because if you’re a first-time buyer, it could be a daunting task. But it could be as simple as just making sure that your financials are in order, that you filed your taxes, that you have access to not only your tax return, but also your bank statements, and your W-2s. 

And then, of course, a big one is to make sure that that your credit is maintained. You don’t want to be late or delinquent on your credit cards or on anything where you’re making monthly payments that will sacrifice and lower your credit score. So, you want to make sure you’re buttoned up with your financials, that you had your credit in order that we owe. 

And of course, we can’t forget to have your down payment accounted for. Whether it’s through making sure that you have it available in your savings or if you’re secure in a gift from parents, that they have it available. So, all those little things alleviate a lot of the stress that buyers take on when they start shopping and looking for homes. 

Sandra: 

Great. Also, this is just from my perspective, if you’ve found the home that you really love, that you want, that you’ve fallen in love with, don’t forget that you can refinance. I mean, obviously there are costs associated with refinancing, closing costs and whatnot. 

But at the end of the day, if you’ve found your home and you get the best rate that you can at the time, don’t forget if interest rates do come down more, then you can always refinance in the future. So in that case, Tony, would you recommend that someone initially get a 30-year or get a five-year, if there’s an anticipation of rates coming down? Or would you say, like, play it safe, don’t get a five-year and get a 30-year fixed? What do you say to that person?  

Tony: 

Yeah, I think you know, what I would say to that is,  whether you’re getting a five-year or a 30-year fixed, what you don’t want to do is pay points to lower or to buy down your rate. Because you’re never going to be in that home or in that loan, I should say, long enough to recover that upfront cost that you paid for those points to permanently buy down your rate incrementally. 

Sandra: 

That’s a great point, because you should only keep once if you’re going to be in that home for a long time. If you’re going to fulfill the 30 years, if you think you’re going to refinance, don’t get the points. Why do it right? If there’s a chance that you will be moving out of the home before you recover the expense or there’s a chance that you will be refinancing before you recover the expense, then don’t pay points. Go with the 00 loan. And of course, as we’ve been talking, we anticipate rates going down, whether it’s in March, June or at the end of the year. 

The chances are if you’re buying a home now or if you bought it in the last year, you will be refinancing in the short future. Not only that, but I always tell clients you’re right. It could be 6%, 6.5% or 7% right now. But let’s say you want to pay more towards principal. 

You can reduce the internal rate. The effective rate will be lower if you pay more towards principal. Instead, for example, trying to get that lower rate by paying points or doing an ARM, which also can be risky. And then refinance later when interest rates are where you think they’re going to be optimal. 

Tony: 

Now, you’re spot on with that, Sandra. There are many ways to minimize your interest payment. And that’s one quick way of doing it, by sending extra towards a principal reduction. But the main thing is that we all need to recognize that rates will be going down. As the popular saying goes, “date the rate and marry the house”. You can refinance the rate, but you can’t refinance the price of the home.  

Sandra: 

That’s a great, catchy phrase. Tony, any words of advice or anything that you want to impart before we end?  

Tony: 

Yes. You know what I would say, Sandra, is that for all those that have been on the fence to buy or not to buy, should I buy now, or should I wait until rates drop? My suggestion would be for you to buy when it makes sense for you and your family when you can. When you know that you can handle the payment and you’re qualified for that payment that you’re looking at for the home. Because as we’ve said, you know, the rates will go down. That will take care of itself. 

And you could refinance later. The argument of buying now versus buying later, I would agree with that. And we should be buying. Now, if you’re thinking of buying versus waiting, because the competition is only going to go up now, the rate comes down. It’s going to bring in a lot of buyers that have been on the fence, whether to buy now, buy later as soon as those rates start to go down even more. Imagine if they go down into the fives. That’s going to bring a lot of people that that were squeezed out with that affordable any gap or a lot of buyers that said, you know what, I’m just going to wait things out until rates come down. 

Well, guess what? That point is coming at some point. And for those that that bought now, I think that’s very strategic because they’ll avoid a lot of competition. They’ll secure a lower price and then and then be able to refinance down the road, perhaps for a long term 30-year fixed rate that they won’t have to think about for a while. 

Sandra: 

Last question is how long does it take to originate a home equity credit or a mortgage? How long does that take?  

Tony: 

Yes, right now, with volume being where it is, we’re not as crazy busy as we were a couple of years back. A short escrow is in order now. We can close an escrow on a purchase in as short of 15-20 days. That’s not in right now. Even though a 30-day escrow is usually the default. Whatever one is accustomed to. But in some situations where it helps the buyer or the seller or both, we can’t close a transaction in 15, 20 days (about 3 weeks) now as far as he likes. 

Typically, there’s not as much of an urgency. His logs are running right around 20 days (about 3 weeks), 20 to 30 days (about 4 and a half weeks) as the normal turnaround time from start to finish. All right.  

Sandra: 

Thank you, Tony, for the wonderful information you gave me and the time you spent with us. And now I’m going to share your contact information for you and Anna, in case they do want to utilize your expertise. So please feel free to contact Anna or Tony directly. In the meantime, if you have any questions about investments at all, please consider us your resource here at Pointwealth Capital Management.  

Once again, feel free to see not only the 2024 outlook, but all our commentary on https://pointwealthcm.com and you click on the money talk tab at the top and you will see all our interviews as well as our market perspectives and articles. Thank you so much. Have a wonderful day and a great start to your 2024. 

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Pointwealth Capital Management and LPL Financial are seperate entities. Tony and Anna Valdez with PRMG are not endorsed by or affiliated with LPL Financial or Pointwealth Capital Management.

Sonali:
Welcome to Bloomberg markets I’m Sonali Basak alongside Vonnie Quinn. Vonnie, after eight weeks of green S&P, we are continuing that Santa Claus rally looking at a year ending pretty strong.  

Vonnie: 

Not too many participants this week. I imagine Sonali, there will be a lot lower liquidity, but at the same time we are seeing stocks in the green. The Santa Claus rally is still on track. And don’t forget it encompasses easily the last five trading sessions of the old year and the first two of the new ones. So, we’ll see if we can continue the streak. We’re very, very close to that record. We’ll see where we close today.  

47, 71, up 4/10 of a percent on the S&P 500. Now, we had a two-year auction, which was successful. You see, the ten-year yield is below 390. Unbelievable action on the part of bonds. And then we’re continuing to see gains in oil up another 3.3% for New York crude. WTI is 7598. And as you can see, the VIX index above 13, that will be one of the interesting questions for 2024. Will we see an elevated VIX because we certainly haven’t this year. 

Sonali: 

Finally, yeah, it’s been calm with all things considered. Let’s look at the other indices as well, because you are seeing green across the board. The Nasdaq 100, up about 4/10 of 1%. Remember, this is being driven up a little bit in part with Intel rising more than 4%. But most of the stocks in that index are in the green, you also have the Nasdaq composite up, helped by M&A. 

You have RES bio being one of the biggest gainers in that index. You have Bristol-Myers Squibb adding to its buying spree with some M&A. We are still watching deals going into the end of the year. And look at that stock semiconductor index, more than 1.5% also ending the year as strong small to mid-cap stocks. Russell 2000 also seeing up almost 1.2%. 

Joining us now, we’re going to talk more about the markets with Sandra Cho. She’s the president and founder of Point Wealth Capital Management. Sandra let’s start with some of the things that we’re seeing across the market here, because you are seeing love in those small to mid-caps. It has been something we’ve seen for recent weeks. At what point do you see the other parts of the market really start to catch up with the love that we’ve seen in the large caps? 

Sandra: 

Yeah, we’ve seen more participation from the rest of the market, not just the Magnificent Seven, which has gone up about 75% YTD. Incredible. We’re now seeing that rally kind of broaden. So, we’re seeing small cap tick up. And, you know, small cap value really has only gone up 15% YTD. So, you know, we really think that that’s going to start picking up pace in 2024. 

Sonali: 

What sets the stage for 2024 with the rally we’ve already seen in especially the tech indices, how much more steam is there really to drive the market higher into next year? 

Sandra: 

Well, with AI, you could see the Mag Seven go up before it comes down. That said, you know what supports the stock price and the Mag Seven right now? I mean, it’s going to be hard to really see revenue fulfilled and support the prices that we’re seeing and increase that we saw in 2023. That said, we’re looking at these other sectors that haven’t done well in 2023, like energy, which you see an uptick today. You know, consumer staples, health care, utilities, these four sectors are negative still for 2023. 

We think that there is going to be that reversion to the mean. So, if 2023 was a year of disparity where you saw large cap growth really outperform and you were rewarded for concentration, we really see 2024 as a year of equilibrium, where you are going to see the laggard’s kind of come back up.  

Vonnie: 

Do we start to see that early in the new year, Sandra? Is there going to be a lot of reallocations early in January? 

Sandra: 

Well, we’re starting to see that now, so we think that will continue and set the pace for 2024. That said, you were talking about volatility in 2024 and perhaps seeing an uptick in the VIX. We also believe that 2024 is, you know, the year of the presidential election. We generally see volatility during those years. But back to the question; We do see that small cap and some of these laggards are going to be coming up. 

Vonnie: 

You mentioned that it’s likely that the mega caps, the Magnificent Seven could continue to perform well. But what will they do with the amount of cash that they have absorbed so far? They’re very cash rich right now. 

Sandra: 

Absolutely. You see 7 to $8 trillion that have flowed into money markets and it’s still the number one attraction for inflows. And we believe there will be some FOMO, fear of missing out. You’re going to see some of that cash coming into both equities and the fixed income markets in 2024, and that’s going to be that tailwind. So, we are cautiously optimistic about both markets. 

Sonali: 

You’re finally starting to see a significant bit in the bond market at this point. Do you start to play the bond market more significantly next year or do you play equities? 

Sandra: 

Well, we are seeing low equity risk premium, so we are seeing that, you know, it really doesn’t pay to be necessarily overweight in equities fixed income in 2024. You’ve got the yield and fixed income very, very attractive. And then you also see the potential with rate cuts, you see a bit more appreciation, potential in fixed income. So, combine the two and you get a very attractive market in fixed income.  

That said, not all fixed income is created equal. We’re seeing more opportunity and investment grade. We see a high yield right now. Those spreads are very tight. So, we are slightly overweight, fixed income and we’re overweight investment grade going more long term than shorter term. 

Sonali: 

When you’re thinking about the equity market, do you play the indices or do you start to pick on specific names that have been unloved in this market? 

Sandra: 

Yes, picking the names that have been lacking in the love in 2023, we see that, there has been obviously this trend over the past year to go towards passive investing in ETFs. But we really see 2024 that it’s going to be more about active investing. If you stay passive, we recommend equal weight S&P 500 versus market weight because there has been this dominance with large cap growth. 

So, if you go equal weight, you’re going to see just naturally if the laggards pick up, you’re going to see more outperformance.  

Vonnie: 

Doesn’t it all depend, though, Sandra, on what the Fed does? Can we make a prediction on what stocks will do until we know if the Fed starts cutting in the first quarter or beyond? 

Sandra: 

It’s true. We don’t have a crystal ball. We don’t know what the Fed is going to do. But they said they will likely cut rates three times, and if you look at the individual members of the FOMC, they’re forecasting four times. You look at the markets, markets have priced in six, maybe even seven times that the Fed is going to be cutting rates. So, although we don’t have a crystal ball, we can go by generally what they’re saying, which is that they are going to be cutting rates. 

Vonnie: 

What are the challenges to your view? Are you concerned about things like, say, interest expense or demand destruction from the interest rate increases that we’ve seen and the lag of monetary policy? 

Sandra: 

Yes, we’re concerned. We’re optimistic, but we’re cautiously optimistic. Right. So, the rate increases haven’t been fully manifest in the economy. But, you know, the markets are kind of a bit ahead of themselves. So, what we are really looking at and we’re looking at closely are jobs. We think the Fed is looking closely at jobs and the unemployment rate. Unemployment ticked downward from November to December. 

And then, you know, CPI has gone down and, you know, the ten-year Treasury has gone down. So, this looks good. That said, we are looking very closely at those three things, just like the Fed is.  

Sonali: 

How closely are you looking at consumer strength? On one hand, the consumers held up strong and, to your point, the job market is starting to weaken a bit here. So, if we’re looking at a consumer that has held up so far this year at what point does their weakness start to bleed into the market next year?  

 

Sandra: 

We are seeing it right now. We’re seeing even though consumer spending is still very strong and really bolstering in GDP and the economy right now, we’re seeing people start to spend on the margin. We’re seeing credit card debt increase. We’re seeing credit card balances stay longer. And we’re also seeing that people are being more careful about where they’re spending and how much they’re spending. We think that’s going to continue, and if unemployment increases, then we think we will see consumer spending drop. Consumer confidence has also come down. 

Sonali: 

We’ve been asking you so much about the types of things you would buy in this environment heading into next year. But what you’re saying about the consumer, does that point to any selling areas too? 

Sandra: 

Yes, we believe you should invest in areas that have been unloved in 2023. You should be a bit wary and expect volatility in the areas that have done exceptionally well, like consumer discretionary. So, in 2024, look for perhaps some of these sectors that have done extremely well, maybe do not as well not necessarily come down, but be more volatile than some of the unloved sectors.  

Vonnie 

Sandra, a little more detail on bonds. You say you slightly favor them over stocks. So where exactly in fixed income look attractive? 

Sandra: 

We’re seeing inflows in longer-term duration bonds and investment grade. And we think those are going to be those areas that you’re really going to want to move more money into, because the Fed cuts interest rates, right? The fixed income market and knows that. And so, what are the rates that will be fixed for the longer term? Those are going to be the longer duration areas. 

Vonnie: 

Sandra, thank you so much for joining us today. Sandra Cho of Pointwealth Capital Management. Thank you so much. And Sonali, it’s fascinating to watch this equity market just continuing to inch ever higher. 

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

The end of the year is upon us – and it’s either the most wonderful time or an incredibly stressful period for everyone, including financial advisors. Regardless of where you fall, the final months of the year pass in the blink of an eye.

With days left in the year running low and the clarion call of spiked eggnog ringing throughout the land, here are a few easy steps that you should take to responsibly end the current year and prepare for what lies ahead.

1. Review your current income and spending amounts – Having a rough idea of what you spend is critical but do yourself a favor and don’t sweat the small stuff. It’s too late this year anyway.
   I have found a relatively quick and easy way to see how much you spend is to log into your checking account and download the activity for the first 11 months of the year, carefully avoiding all of December so you don’t include the one-off end of year expenses.Sort by amount and delete all the deposits. That will leave you with what you have spent. Total all the expenses, divide by 11 and voila, you have your average monthly expenses. You can check for spikes in certain months and start planning accordingly. This baseline will be useful in the coming year – but again don’t sweat the mistakes of the past.
2. Contribute to your 401(k) – This is your last chance of the year to become a future millionaire. Throw a Hail Mary and do a last-minute contribution if you can. At the minimum, aim to contribute as much as your company matches. This is one of the easiest ways to build your personal wealth in the future.
3. Review your employee benefits – I’m sorry, but you need to hear this: you are not getting younger. Review your health, dental and vision plans, and other insurance coverage options. Any life changes like a new spouse, kid, pet or house? Protect it, don’t neglect it. These small expenses over the course of the year can protect you and your loved ones when you need it most.
4. Review your investments – Take a look at your portfolio to make sure your investment allocation and security selection is appropriate for your risk tolerance level or seek investment advice from a professional.  While this may seem self-serving, it isn’t. As professional planners and advisors, we spend every working hour on these considerations, and we can deliver real value to you and your family in the long-term.
5. Enjoy the holidays with your loved ones – Don’t let the chaos and stress of year-end planning distract you from the people that you love the most. For many of us, the holidays are a rare time when family comes together to celebrate and rejoice. Make sure you stay present and enjoy this valuable time. Oh, and avoid getting between Uncle Bob and the Christmas ham.

 Now… go enjoy your eggnog.

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

That said, there is another way for those investors determined to invest with purpose yet sidestep the partisan frenzy. It’s called impact investing and it’s been around far longer than the oldest cable network — or stock exchange for that manner.

“ESG looks really at how environmental, social and governance factors affect financial return and performance of a company. Impact Investing looks at how you can use your investments to actually create net positive impact in the world,” said Jed Emerson, managing director at AlTi Global. “It’s been around actually since the beginning of modern financial capitalism with the first publicly traded stock company.”

Emerson, who recently published a book titled “The Purpose of Capital,” said impact investing works on a portfolio basis, so diversification is paramount, just as with any other investment strategy.

“You can be in fixed income, you can be in various debt instruments, you can be in private equity, direct investments, real estate. It’s the whole gamut of asset classes that are available today,” he said, adding that some of the “better opportunities are really outside of the U.S. at this point.”

For example, Emerson said there are a variety of impact investing opportunities in microfinance, sustainable agriculture and “a variety of fintech areas.”

“I think a good impact investing portfolio is one that begins with the question of the purpose of your capital. As an asset owner, what are you really trying to achieve? What levels of financial return? And I say levels because different instruments and strategies give you different types of financial return,” he said. “Having clarity about what you’re trying to do first is the the preliminary step you have to take in order to do well later.”

“Good,” of course, is a relative term. For one client, it may entail gifting an estate to a nonprofit, while for another it may mean staying away from sin stocks.

“Regardless of what ‘good’ means to someone, I feel it’s an integral part of my job to direct their money to potentially grow in the direction of what a client defines as good,” said Sandra Cho, president of Pointwealth Capital Management.

Cho believes that ESG and impact investing are currently in a “toddler stage,” and said that while the will to do good is there, there needs to be more consensus on how to accurately track strategy, performance and execution.

“It’s also important to bear in mind that like people, no company is perfect, but there are companies that are better than others,” she said. “Being in the toddler phase means that it’s easier to generally invest in ESG via ESG mutual funds and ETFs, versus trying to screen individual companies and avoid or invest in specific stocks and bonds.”

Renae Ransdell, wealth advisor at SageView Advisory Group, agrees that there’s no single best way to invest for clients who want to “do well” while also “doing good.”

“When discussing this concept with clients interested in conscientious investing, we first spend time determining what ‘doing good’ means to them. That conversation runs parallel to their overall financial situation and what it means to ‘do well’ in meeting their financial goals,” Ransdell said.

“Once we understand both, we discuss available strategies like social impact investing, ESG investing, portfolio screening to avoid companies or sectors they disagree with and lending to local business or nonprofits whose missions they believe in,” she said.

Ryan R. Hyslop, managing partner at Sierra Pacific Wealth Management, part of the Prospera Financial Services network, encourages his advisors and clients to allocate funds to make a difference in the world. He says his aim is to align “financial goals with values, customizing each portfolio to help invest in companies and projects that prioritize progress, sustainability and ethical governance.”

“Our team guides clients in crafting well-diversified portfolios that help contribute to a more sustainable future. The way each of our clients want to impact the world we live in is unique to them. Working to identify investments that enable a client’s vision must come after understanding the details and nuances of their values,” Hyslop said.

In Emerson’s view, doing well and doing good are most definitely not mutually exclusive. That said, having the best of intentions does not protect an investor from making bad or unprofitable decisions.

“Just because you’re doing this doesn’t mean that somehow the gods will shine and you’ll be rich and wealthy and feel really great about yourself,” he said.

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

ENCINO, Calif., July 17, 2023 /PRNewswire/ — Pointwealth Capital Management, a boutique wealth management team focused on creating customized investment portfolios for each client’s unique situation, today announced the appointment of Edward Suero as a financial advisor. Mr. Suero will work closely with Pointwealth President Sandra Cho to expand its client base and address the demand for the firm’s services among emerging high-net-worth and high earning not yet rich (HENRY) clients.

“As I searched for the right person to bring aboard to support our current clients and expand our services offerings, I wanted to find someone who understood my dedication to a holistic approach to our clients’ needs, and I found that in Edward,” said Ms. Cho. “He leverages his experience in banking and financial services, and deep-seeded interest in people to deliver the right kind of client experience – one my clients expect from me, and one I hope to foster in our firm as we continue to grow.”

Mr. Suero has been in the banking and financial services field since 2004. He earned a bachelor’s degree in information science from the University of North Florida. Additionally, he obtained the Chartered Retirement Planning Counselor designation from the College of Financial Planning in 2016. He currently holds his FINRA Series 7 Registration through LPL Financial and Series 66 Registration through both LPL Financial and Golden State Wealth Management. He also holds a California Life Insurance license.

“I’m thrilled to join Sandra and the entire Pointwealth team as we write a new chapter,” said Mr. Suero. “I wanted to find a place where I could grow together with a firm that valued my approach and the opinions of our clients. Sandra’s dedication to delivering a personalized service, that takes into account more than just the numbers, fosters the exact kind of environment I wanted in a new professional home.”

Prior to joining Pointwealth, Mr. Suero served as an LPL Financial Advisor with Logix Financial Services from 2021 to 2023.Before that he was a Senior Financial Advisor/Vice President with UnionBanc Investment Services and a Financial Solutions Advisors with Bank of America Merrill Lynch. In addition to general investment management, he also specializes in cash management, alternative income generating investments, and tax efficient strategies.

American adults surveyed for Northwestern Mutual’s 2023 Planning & Progress Study said they will require $1.27 million to retire comfortably, up from $1.25 million last year. Meanwhile, the report showed the average amount U.S. adults have saved for retirement rose 3% to $89,300, from $86,869 in 2022.

The study said people in their 50s expect to need over $1.5 million for a contented retirement, while respondents in their 60s and 70s anticipated they would spend less, primarily because many have already entered retirement.

Those with more than $1 million in investible assets, aka high-net-worth individuals, believe they’ll need $3 million to retire happily, the study said.

Aditi Javeri Gokhale, chief strategy officer, head of institutional investments and president of retail investments at Northwestern Mutual, said the good news in the higher retirement number is that it shows Americans are serious about saving and investing, despite high inflation and market volatility.

“That is a step in the right direction and a reverse of what we saw last year, when the gap widened rather than narrowed,” Gokhale said in a statement. “The challenging news is that there continues to be a big disparity between what they think they’ll need to retire and what they’ve saved to date.”

Generationally speaking, Gen Zers are the most confident they’ll be financially prepared for retirement when it arrives, the study said. Older generations, on the other hand, were more pessimistic, with more than half of Gen Xers saying they won’t be ready, and nearly half of millennials and unretired boomers admitting the same.

Elsewhere, the report showed Americans see a 45% probability that they outlive their savings. Nevertheless, a sizable 33% of respondents haven’t taken any steps to address this longevity risk. That said, for those who work with an advisor, nine out of ten (89%) have taken steps to address the possibility of outliving their savings.

On average, Americans plan to work until the age of 65, up from 64 last year and 62.6 in 2021, the study showed.

On the topic of aging, the study found three in ten (28%) Americans think it’s likely they’ll live to be 100. However, such expectations are much higher among younger adults, with 40% of Gen Zers and millennials expecting to hit triple digits, the study said.

“The survey is consistent with the trends we are seeing among our clients. While every retiree’s situation is different, retirees’ increased cost of living and longevity has many rethinking their approach to retirement from both a financial and timing perspective,” said Chad Olson, financial advisor at SageView Advisory Group.

Sandra Cho, CEO and founder of Pointwealth Capital Management, believes that no matter how much advisors would like to simplify the formula, there is no one size fits all for retirement planning.

“Your burn rate is just as important as how much you have saved for retirement,” Cho said. “The outcome is the same whether you run out of fuel or burn through it too fast — you will not make it to your destination.”

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

Personally, I love the process of cleaning out my house. It provides a sense of accomplishment and for some reason makes me feel cleaner and more organized mentally as well.

Of course, cleaning out the garage or an extra closet takes time, energy and a bit of forethought. Yet all too often this grand plan to establish balance leads to the reorganization of the same junk on same the shelf. I know I’m guilty of saving old magazines I’ll never reread and shoes ten seasons out of style. But then occasionally, I’ll find a priceless heirloom thought lost to the dustbin of history.

As we get into the height of spring-cleaning season, investors need to dump those decades-old magazines and worn-out sneakers – and address those lost gems – within their portfolios. And advisors need to help their clients do that hard work of spring cleaning. 

Clean it out

No one likes to admit that they picked a loser. And it is even harder when that loser costs you money. But you need to get over that now and get rid of the losers in your portfolio. Because there are ways to take those losses and shift them into wins.

The most obvious is through tax loss harvesting. Working with your accountant, you can offset income from those other sources on your annual tax return and save in other places. While it may not complete make up for the loss, it should help blunt the blow.

Additionally, no one is perfect when it comes to applying an investment strategy to stock picking. Even the best investor makes mistakes. However, those striving to be among the best will use the lessons learned as you admit defeat to consider your risk tolerance, diversification strategy and how to weigh the facts of a portfolio without emotion as you move forward.

This also means you need to know when to sell a winner. This period of market volatility forces savvy investors to take wins when they might not have done so in more stable periods. While anyone who tells you they know what will happen is lying or delusional, hindsight is 20/20, and in this environment, a win is a win. This spring might be the right time to reap the benefits or at least take out the money you invested and leave the gains to ride.

Keep what is working

After cleaning up a messy portfolio, reviewing what has worked and will continue to fit into a revised strategy should provide a balanced, time-sensitive approach to your portfolio. Yet there is value in holding on to what you believe in and like. Just like those old magazines, there is some value in keeping investments that make you happy and feel secure.

And sometimes it’s very difficult to identify the long-term value of those investments that have other value to you. While I fully believe that it is never about timing the market but rather time in the market, having a fully reviewed investment strategy on an annual basis serves all parties.

Take stock of your stocks

During this tumultuous spring in the market, advisors will need to guide their clients through meaningful conversations that ask the tough questions. Even in a generally calm, growing market, advisors should be doing this regularly – spring is the perfect time to do it.

The work of cleaning out the mess in any part of your life can be difficult – but when it is done right, it almost always pays dividends. And when you are looking to clean up, and shape up, a portfolio. Spring cleaning can bring clarity and better position you for a bright future.

Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Golden State Wealth Management, DBA Pointwealth Capital Management, a Registered Investment Advisor. Golden State Wealth Management, Pointwealth Capital Management and LPL Financial are separate entities.

Total fixed annuity sales surged 101% to $70.9 billion in the first three months of 2023, compared with last year’s results.

The hot streak in fixed annuity sales kept going in the first quarter of 2023.

Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Golden State Wealth Management, DBA Pointwealth Capital Management, a Registered Investment Advisor. Golden State Wealth Management, Pointwealth Capital Management and LPL Financial are separate entities.

Putting one’s hard-earned money in the hands of a stranger is always a difficult proposition, but when wealth management is boiled down, it is essentially trusting someone to take care of your money. And, frankly, no one cares as much about your money as you do.

There are ways advisors can make sure potential clients feel heard and that they feel like their money is safe. Clients want a solid financial plan and their advisors to be proactive in outlining a detailed path forward. This is key to developing a trusting relationship, and it all begins with understanding a client’s goals.

If an advisor is willing to develop a real plan before the formal engagement, it proves they will listen to your needs, invest their time into your success and care about your money.

Plans Make Individuals Feel Like They Are Not Alone

By putting pen to paper, advisors can help eliminate some uncertainty. In providing a draft plan, your advisor can outline an approach to achieve your goals. Such a plan would be more detailed than an engagement letter and would include things such as financial priorities, risk tolerances and an exploration of values. All of this would be used as a road map to get to your financial destination.

This physical piece of paper—or its digital counterpart—may not be the final product, but it shows that an advisor is working for you right away.

Of course, this doesn’t remove downside risk. But it does provide clients, especially those who are not accustomed to advisory support, with a deeper understanding that they have someone in their corner. The plan itself outlines what you and your advisor are expected to do to reach your goals.

When I first started doing this, my clients were shocked that I would spend this kind of time before we’d formally start our engagement, but in the end, it helped me close more business because my potential clients knew they were not alone in this process.

Proactivity Is The Name Of The Game

Planning is about being ready for anything. By starting a plan before a formal engagement, clients get a peek at what might be coming for them and their financial security in the future. While an advisor should never use fear to close the deal, proactively preparing for the worst-case scenario is extremely valuable, especially for those who have recently come into significant wealth, face uncertainty in their lives or had a major transition—such as a new job, divorce or a death in the family.

Personally, taking these proactive steps helps me prepare even for what isn’t on the list of eventualities. For example, when I was 32 years old and pregnant with our second child, I didn’t expect my husband to get into a car accident and pass away. But life happens, and I was as prepared for it as I think I could have been.

Building A Long-Term Relationship Takes Bold Early Action

The most successful relationships are based on quality communication. To achieve meaningful communication between parties, both need clear expectations of responsibilities. Taking the time to outline these matters early in a relationship builds a solid foundation.

This is critical in a financial advisor/client relationship, especially because we are talking about money. As a society, we don’t like talking about money because it can be uncomfortable. When your advisor clearly states what they will provide and what they expect from you, they will eliminate some of the awkwardness.

Getting What You Deserve

You are right to expect the best possible service when you engage someone to take care of your finances. You worked hard for that money, and you should understand what will happen to it and why. The only way for that to occur is if your advisor shares a detailed financial plan before you sign on the dotted line.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered Investment Advisor and separate entity from LPL Financial.

I think that clients today are expecting different things from their financial advisors than they had before. So before or they just managed they just managed their money. But nowadays they need us to manage their emotions as well and to also give them some foundation for what they could possibly expect. Right now, it’s a very difficult time for everyone, but especially for our clients.

I think the biggest challenge right now is that we have to be there for them, for them, and we have to be there for us. So we have to do what it takes to build us up and be knowledgeable and efficient so that we can be there for our clients. Right now is a very precarious time. I think a lot of financial advisors believe and think that they are financial advocates as well and in that sense, we’re no different.

What I do see as different with us and hopefully more and more financial advisors also become this, is that we are financial concierge. We actually fulfill any kind of need that that client has for financial services and wealth management and an ear. Because right now people just don’t know where to go to, to seek advice. Not just advice about their investment, but advice about their life.

How much is it going to cost for their kids to go to college? Can they afford that? What college should they go to and look at from a financial perspective, even when that child graduates, what major should that child have that can really help them moving forward? That’s going to be practical for them, but not just for their kids.

Also, should they buy that second home now or should they wait? Should they upgrade their home or should they sell and buy another one? All these are questions that a lot of people have right now because it is a different era. It’s not just about financial advising. Financial advising has evolved in so many different ways and we have to evolve with them. So I really consider our company and myself a financial concierge to our clients.

I think the biggest struggle that clients are having nowadays is that they’re afraid and they’re even afraid to ask their financial advisor for that emotional guidance. They’re afraid to call us. And so I think it’s really important now for us to be proactive as financial advisors and reach out to our clients, anticipate their concerns. And hopefully we’ve been proactive and we asked clients before they were even clients what were their greatest financial fears and that we evolved with them so that we can answer and be there for our clients the way they want us to be there for them, not the way we think that we should be there for them.

Disclosures: The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered Investment Advisor and separate entity from LPL Financial. Riskalyze, Advisorpedia and LPL Financial are separate entities.

Today I’m going to be talking about a possible recession in 2022. Some people think we’re already in a recession because we’ve had 2 quarters of negative GDP. The first quarter came in at -1.4, at least preliminarily, and the second quarter came in at -0.9. Now that might not seem like a lot. It might not seem like a big drop, but technically it is 2 quarters of negative GDP.

A lot of economists don’t just use 2 quarters of negative GDP as a barometer of whether we’re in a recession. They also look at whether we’ve been spending, like consumer spending, whether, you know we have high unemployment, and whether we’ve had wage growth. Now we have had wage growth, but as we all know, inflation has ticked up, higher, and inflation has actually ticked up higher than the wage growth. So, the real money that we’re taking home isn’t as much. Even if the dollar amount is bigger.

Another question that I’m getting right now from a lot of my clients is, “Market’s down, is it good right now to put more money in?” or “Should I make changes right now? Should anything be changed?” Well, the answer to the first question is Maybe. It’s not a definitive yes. Yes, the market is lower right now than it was January 1st, but we also have to look at earnings.

Another question that I’m getting right now from a lot of my clients is, “Market’s down, is it good right now to put more money in?” or “Should I make changes right now? Should anything be changed?” Well, the answer to the first question is Maybe. It’s not a definitive yes. Yes, the market is lower right now than it was January 1st, but we also have to look at earnings.

The stock market is dependent on corporate earnings. Are those earnings projected to be good? Well, not really, and it does depend. I highly recommend that you speak to your investment professional as to whether you should contribute to your portfolio or investment portfolio right now, now that the market is lower.

By the way, the US stock market isn’t just lower, pretty much everything is lower. You’ve got international stocks lower, you’ve got US bonds lower, you’ve got US stocks lower, and we’re not just talking about large S&P500 blue chip companies that are lower. We’re talking about smaller companies that are publicly traded; mid-size companies. We’re talking about growth, we’re talking about value. Pretty much everything is lower.

The only things that aren’t lower right now are commodities really. Gas for example, is definitely not lower. Energy is definitely up double digits this year, and you’ve gold and precious metals, also up. There are certain things that are up, once again it’s a good time to get a portfolio review to see whether you are well-diversified and to see whether it’s a good time to add more money. Over the long term, I don’t think it hurts to ever get an investment portfolio review or a second pair of eyes to take a look at your portfolio to see how resilient it is during these difficult times.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Today we’re going to be talking about diversification and asset allocation. And some people get diversification and asset allocation mixed up. Diversification is simply having stocks, bonds and cash. If you have these three elements, then you are technically diversified. How much stocks, bonds and cash you have really depends on whether you are a growth investor, a middle of the road moderate investor, or whether you’re a conservative investor.

That really depends on how much up and down volatility and risk you personally can take on without stressing out too much. So if you’re a growth investor, you might have more stocks than you have bonds. If you’re a middle of the road investor, you might have what we call a 60/40 portfolio, which is about 60% stocks, 40% bonds.

If you are a conservative investor, then you might have more of a 50% stock, 50% bond mix, or you might even have more bonds than you have stock. Now, we come to what’s known as asset allocation. Asset allocation is when you have a mixture of stocks and when you have a mixture of bonds. So, for example, if you have asset allocation, you’re going to have big mega conglomerate US stocks, mid-sized company stocks, small company stocks, but you’re also going to have international developed country stocks, for example, stocks from Europe, from Japan, Australia.

You’re even going to have emerging market stocks from countries like Russia, Brazil, India and China. You’re also going to have international bonds as well as U.S. bonds. And if you are broadly diversified, you are also going to have some alternative investments. Alternative investments is anything other than just playing stocks and bonds. So, for example, energy commodities like gold and precious metals and alternative investments such as structured notes that are indexed CDs, maybe tied to equities or stocks.

So once again, you can see now how diversification and asset allocation are a bit different. Then we come to cash. With cash, you generally want to keep 3 to 6 months worth of living expenses in the bank in a savings account and hopefully a higher yielding one. I personally don’t recommend locking up the money that you might need in CDs, because generally you get a penalty if you access that money before the term is up, and that’s something that you don’t want.

That’s why you keep it in cash. So it’s very important that before you decide how much stocks, bonds and cash you have, how much diversification asset allocation you have, how much you keep in cash that you speak to your investment professionals so that you can get a customized portfolio analysis and assessment of what you personally need. Thank you so much and have a great day.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial.The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a nondiversified portfolio. Diversification does not protect against market risk.Asset allocation does not ensure a profit or protect against a loss.

Today we’re going to be talking about educational accounts. So the first account that I’m going to be talking about are 529 plans and 529 plans are wonderful saving vehicle, especially when you’re saving for higher education. 529 plans are named after the IRS code 529, and you put in money after tax. Then if your child is young, that money has a long time to grow. When you take out that money, it’s all tax free.

It sounds really great. Well, it gets even better in certain states. You get a state tax deduction for the money that you put in to save for your child’s education. Unfortunately, not for California, where I live, but there are definitely quite a few states that do give a state tax deduction.

Now, some points about 529 plans are that it must be used for higher education, otherwise you get a 10% federal withholding penalty. Do be aware of that. And the money, like I mentioned before, grows and grows and grows because you can invest it in different investment options. You can be as conservative, moderate or aggressive as you want to be.

You can also even do age based investment options so that the money’s invested very aggressively when they’re younger and gets more and more conservative as they near the age where they’re going to start college. So that that’s one way to go with 529 plans. Now, you can be the owner as a parent of a 529 plan, but really anyone can be the owner, so a grandparent can be the owner of a 529 plan.

You can also even do age based investment options so that the money’s invested very aggressively when they’re younger and gets more and more conservative as they near the age where they’re going to start college. So that that’s one way to go with 529 plans. Now, you can be the owner as a parent of a 529 plan, but really anyone can be the owner, so a grandparent can be the owner of a 529 plan.

The nice thing is, starting from October 20, 22, a grandparent can be the owner and none of the money is considered against the child when determining whether they qualify for financial aid, unlike a parent. So if a parent is the owner of a 529 plan, then 5.64% of the money held in that 529 plan will be considered when determining financial aid. Let me give you an example. Let’s say I putting money into my child’s 529 plan right when they’re born and you do have to wait until they’re born.

I put in money. I put in money, put in money and it grew. It grew and grew. The child turned 18. The child’s about to go to college, I saved a whopping $100,000.

Sounds fantastic, but even better than that is they might qualify for financial aid, depending on how much I make. And if that’s the case, out of the $100,000, only $5,640 is counted when determining financial aid. And if instead of me being the owner, if their grand parent is the owner, then none of it is considered against them when determining financial aid.

The nice thing about a 529 plan is that you have higher limits of contribution. In fact, you can contribute $16,000 into a 529 plan per child per year without ever having to declare that on your tax return. And that can be very significant, especially, say, for example, if other people contribute. So let’s say I can only contribute $5,000 a year, but maybe their grandparents contribute six are able to contribute 16,000 and maybe my other contribute some money maybe on their birthdays or Christmas instead of birthday gifts or Christmas gifts, I ask them to contribute to the 529 plan and then they’re able to accumulate so much faster.

Also that 16,000, let’s say I have a windfall inheritance and I want to contribute more than that. 16,000. Well, you can contribute up to five years ahead of time and then just not contribute for the next four years. That means 16,000 times five. And then I can put that into that money has more time to grow for them.

Another thing is that 529 plans are pretty flexible. Not only can they be used for tuition, but also housing books. They can be used for technology like a laptop and let’s see, that child wants to study abroad and use that money for a university in another country. They can do that a trade school, as long as it’s accredited.

So there’s lots of lots of different ways that it can be used. If it’s not used for that. And let’s say the child and, you know, they get a scholarship, they’re so smart that they don’t need that 529 plan money. Well, guess what? You can change a beneficiary on that 529 plan to your grandchild, your great grandchild and so on and so on and so on.

In fact, you can go up to five generations of tax deferral. So it is amazing. It’s not the only educational account that exists. So you can have also a UTMA or UGMA account, which is a custodial account. So let’s say for example, you know you want to give money to your child or your grandchild, but you want them to be able to use it for anything, not just education, but maybe to buy a car or buy a house in their future.

Well, you can you can do that. Just know that it’ll count more against them when financial aid is being determined. So it can affect financial aid up to 20, 25%. So it’s just a good thing to be aware of. Also, the great thing is that you can have a Roth IRA, you, you yourself can have a Roth IRA, and you can use that money for your education, your kid’s education, your grandchild’s education or your spouse’s education.

So some people use a Roth IRA or Roth 401k as an alternative to an educational account. So there are lots of different ways you can save for education for your child. But also, don’t forget to save for yourself. Retirement is also very important and you don’t want to save for your child’s education, only leave yourself behind and then become a burden to your children later on in life.

Thank you so much. I strongly encourage you to talk to your investment professional when considering different educational accounts and which one might be right for you. Have a great day.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial.The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.Prior to investing in a 529 plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

Fixed-indexed annuities are a hybrid between fixed annuities and variable annuities. They blend the growth potential of a variable annuity and the guarantees of a fixed annuity. The great thing about fixed-indexed annuities is like fixed-annuities, they do not have a fee. Whereas variable annuities often have fees associated with them.

Fixed-indexed annuities also are tied to an ETF. For example, the S&P500, so that you can go up with the S&P500 if it goes up, but if it goes down, you do not go down. Seems like an ideal investment, however there’s always some catches. One of those is that because the annuity carrier or life insurance company is guaranteeing your principal in a fixed-indexed annuity, your upside for your potential growth is capped.

One way that it could be capped is it could be monthly capped. Your performance per month might be limited, or it could annually capped. You also generally have investment options with fixed-indexed annuities. You can choose which ETF you are invested in. Sometimes they give you the option to invest in the S&P500, which is generally the 500 largest publicly traded companies in America, the Russel 2000, which are small US publicly traded companies, or maybe even some lesser-known ETF’s or investments such as European stocks, or international developed stock indexes.

Another nice thing about fixed-indexed annuities is that like fixed annuities you generally have access to some of the principal on an annual basis without a penalty. A lot of fixed-indexed annuities allow you to take out 10% for example, per year. You might have to wait 1 full year before you have access to that fixed-indexed annuity. As a client if you have money in a fixed-indexed annuity you generally are only credited on your anniversary date which is one year after you put the money in. If you take the money out early before that anniversary date for that portion of money you took out, you might not get credited for.

Another nice thing about fixed-indexed annuities is that they are tax deferred. If you put in non-qualified aka non-IRA money into a fixed-indexed annuity It can grow tax deferred until you take it out. Please be aware that with any annuities including fixed-indexed you can’t take out the money until you are 59 and 1/2. If you do, you will be penalized by the IRS 10% federal withholding. Plus, you will be taxed ordinary income tax rates. Please be aware I’m not a tax advisor, I don’t give tax advice, and I highly recommend you speak to your CPA or tax advisor.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Fixed Indexed Annuities (FIA) are not suitable for all investors. FIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. FIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims-paying ability of the issuing insurance company. This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This content is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information. Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.

I just want to mention that fixed annuities are one of the most plain, vanilla, conservative investments that you can get. They’re actually fairly simple as far as investments go. You get a fixed interest rate which is why it’s called fixed annuity. That interest rate can vary. For example, right now it’s a low interest rate environment.

Fairly low, but interest rates are coming up as of August 24th, 2022. Right now, one of the interest rates for example that we can get is a 3-year at 3.4% or a 5-year at close to 4%. Now interest rates do depend on the products, the company, and the timing of when you get that annuity. However, that interest rate is fixed, and it compounds daily. That’s one of the nice things about a fixed annuity.

Generally, don’t expect a lot of statements because it does not fluctuate, so in all probability you’re going to get one statement a year. Some people worry about that, but it’s only because this just a conservative investment and you’re not going to see fluctuations. One thing about fixed annuities is that it is not FDIC insured. Even though it is guaranteed by the issuer. It is principal protected but not by the FDIC.

For example, if you get a fixed annuity by AIG, that annuity is going to be guaranteed by AIG. If AIG goes under, then you might be in a bit of trouble. However, unlike other investments where there is not a guarantee, fixed annuities are not only guaranteed by the issuer, but they have a second layer called the state guarantee fund for fixed annuities. Every state is different but in the state of California the state guarantee fund will guarantee you 80% up to $250,000.

One strategy that I use for some conservative clients is I might ladder fixed annuities. I might put some money in a 3-year fixed annuity, some in a 5-year fixed annuity, and some in a 7-year fixed annuity. That way every 2 years, some money is maturing from a fixed annuity, and they have access to it. Now most fixed annuities allow you to take some money without any penalty at all. Generally, that amount is about 10%.

Some carriers allow you to take out more. Say for example 15% another thing that you want to be aware of with fixed annuities is that it doesn’t necessarily go by calendar years. For example, if you invest in a fixed annuity and let’s say you put the money in on May 1st, that annuity anniversary date is going to be May 1st. You then would wait 1 full year and that would be that first year.

Let’s say you go into a 5-year fixed annuity, you have to stay in that annuity for 5 years in order to not get a penalty when you take everything out. That said, if you remember that you can usually take out 10% every year, then you do have access to some of that money before that 5-year term is up. You also want to be aware that the devil is in the details with fixed annuities. Make sure you understand the contract. Make sure that you understand if there is a penalty-free withdrawal meaning you can take out money every year.

Also, can you take out that 10% or 15%, or whatever it is within that first year? Some allow you to, or do you have to wait 1 full year before you can even take out a withdrawal. One thing about fixed annuities is that because it is guaranteed by the issuer AKA the life insurance company, you want to make sure that, that company is strong. Now while credit agencies and credit ratings aren’t the end all be all, one good place to start is to make sure that, that company has a good credit rating.

Another very important detail about fixed annuities is whether you have a free withdrawal or not. You cannot take out money from a fixed annuity or any annuity for that matter until you are 59 and 1/2 without getting a 10% federal withholding penalty and being taxed ordinary income tax rates. This type of investment is generally good for people who want to set aside this money for retirement specifically, or for older people that are near or over 59 and 1/2. Also be aware of the tax consequences of having an annuity.

If you put non-qualified or non-IRA money into an annuity and that money grows and grows, and you haven’t paid taxes on that growth, when you take out that money you will be paying taxes on that growth first. The IRS makes sure about that. So, make sure you understand the terms and the conditions of your annuity. Please be aware I’m not a tax advisor, I don’t give tax advice and I highly recommend you speak to your CPA or tax advisor.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.

Universal life insurance, otherwise known as UL, is a permanent life insurance policy like whole life. Unlike whole life, a UL does not have a fixed guaranteed growth rate, fixed premiums, and a fixed death benefit. In fact, the death benefit premiums and cash value can be changed to some extent with a UL. Now with a UL, you can invest in variable options like mutual funds, and when you do so that’s known as a VUL, or variable universal life.

It’s called variable because the investment varies, and they do fluctuate. There is no guarantee that they will make money, but they do have greater growth potential. If you’re more conservative and you want to invest in something that you can’t lose money in, you might want to try a universal life fixed-indexed policy. Those types of policies are invested in ETF’s and they cannot lose money, but you generally have limited upside potential as well. There’s also no guarantee you are going to make money in a fixed-indexed UL policy.

One use of universal life insurance policies is to do what’s called, “a second to die.” A second to die policy pays out to the beneficiary when two people pass away. The two people can be married, or could be a father and daughter, or any combination. Universal life second to die policies are generally cheaper than if you just insure one person, and it can be a great way to leave grandchildren, or children money after both parents pass.

As with all life insurance, the proceeds of universal life policies are generally tax free as long as the estate is under the approximate $12,000,000 estate tax limit, as of this recording. Contact your investment professional so that you can get customized investment advice particular to your situation. I’m not a tax advisor, and I do not give tax advice.

 

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This content is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information. Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value. Fixed Indexed Annuities (FIA) are not suitable for all investors. FIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. FIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims-paying ability of the issuing insurance company. Variable Universal Life Insurance/Variable Life Insurance policies are subject to substantial fees and charges. Policy values will fluctuate and are subject to market risk and to possible loss of principal. Guarantees are based on the claims paying ability of the issuer.

There are 3 main types of life insurance. The first is whole life, the second is permanent life insurance, otherwise known as universal life, and the last is term insurance. Now term insurance is the least expensive type of insurance, and it generally fulfills a need. For example, let’s say you have a child, and you want to make sure that, that child is taken care of until they reach adulthood. You might want to take out a 20-year term life insurance policy, and that way, if anything happens to you, knock on wood and God-forbid, you know that child is going to be financially okay until they get old enough to take care of themselves.

Another reason might be maybe you bought a house with your spouse, and you can’t afford to take care of the entire mortgage if anything happens to your spouse and vice versa. Then you both might want to get a 30-year term life insurance policy and that way if anything happens to you, either the house is partially or completely paid off and your spouse can then afford the payments that they’re going to have to make on that remaining mortgage. So that way you know they’re going to be okay and vice versa. You might want to take a life insurance policy out on them if something happens to them and you can’t afford those mortgage payments.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

Today we’re gonna be talking about estate planning. Now I am not a tax advisor or legal advisor, and I do not give tax or legal advice. So please do talk with your CPA and/or your estate planning attorney for more information. So first of all let me begin with, why do any estate planning? Well, I know no one plans to die, but no one makes it out of life alive I heard.

So it’s good to be proactive about that. Especially if you have a family, and a family can really be anyone, right? It can be like if you have a mother, siblings, kids, a wife, or husband, or significant other. The reason why it’s so important is you want to make sure that your wishes really come through if anything happens to you. It’s not just about how you want to be buried, if you want to be cremated or whatnot, or where you want to be buried, but also what you want your existing money, if there’s any left, to do for your beneficiaries and who you want it to go to.

So the main considerations with estate planning are: having a trust, a medical directive, a power of attorney, and a will. These elements are part of a general package If you have a spouse or significant other you might want to have one or two separate trusts. You might want to have a will for each of you. A power of attorney for each of you, and a medical directive for each of you.

First things first, medical directive. I can’t tell you how important that is. Right now especially when a lot of people are finding out that if their loved one gets sick or ill and they’re hospitalized that they can’t even visit them unless they’re married. What if you’re not married? Well if you’re listed in the medical directive as a first, second, third, or at all in the medical directive as someone who would make a decision in whatever order.

Maybe you’re the fourth person down the line, but if your name is on that medical directive, you get visitation rights. That’s very important especially during this time. This pandemic that is probably likely not going away. You know it can be so important to visit your loved one should you have to.

Now the second thing is a trust. For a trust, let’s say you have kids. You’re gonna want to list who you want to be the custodian of your children. That can also mean that you also list who you want to handle the financial affairs if anything happens to you. That person might not be the the same person.

So maybe someone’s very nurturing, awesome, wonderful with your kids. Maybe you want them to be the custodian of your kids. However, maybe they’re not great at finances or with money. Maybe you want to have someone totally different be the financial caretaker of the money, if anything happens to you and they can dole that out to the person taking care of the kids as need be.

Another consideration is a will. A will is extremely important even if you have a trust. That just delineates where you want the money to go. Sometimes it can be very similar to the trust as far as you know, listing out the beneficiaries and how you want things to be handled.

Then we get to power of attorney. Now power of attorney is interesting because you can have a limited power of attorney or you could be having an all-encompassing durable power of attorney. Some people feel very uncomfortable with having a power of attorney. Which is someone who basically can sign and take care of things for you and do things as if they were you.

Sometimes that person takes care of things only financially. Other times that person takes care of everything you could possibly imagine. I personally have a power of attorney that goes into effect if I’m incapacitated. Only one doctor needs to say I’m incapacitated In order for that durable power of attorney to take effect. Sometimes people have 2 doctors listed or 2 doctors that have to make sure that they sign off or write a letter saying you’re incapacitated in order for that power of attorney to take effect.

If you’re very concerned, you just don’t feel comfortable with it, you can have a limited power of attorney. Definitely talk with your estate planning attorney on what those differences are and which one is right for you. One incredibly important often missed thing that I see so often with my clients is not having beneficiaries on your account. Now I don’t care whether it’s an investment account, a little tiny savings account that you have at a bank that you forgot about, or whether it’s some other type of account, life insurance and whatnot.

You want to make sure that you have beneficiaries, and if you think you have beneficiaries just double check. Every single account. Also make sure you have a list of all those different accounts. Make sure you have the firm name, the contact person of the person who is gonna help your beneficiaries if anything happens to you. Make sure you have the account number, the account title; is it in the trust, is it just in your name, is it a joint account?

Make sure you have the beneficiaries listed. Sometimes you want to make sure you have on that list, not just big accounts and investment accounts, but life insurance policies and hard assets like jewelry. You want to have that listed. Is that jewelry in a safe deposit box? Where is it? Where’s the key to that safe deposit box?

You want to make sure that you have that person whoever you want to take care of that listed as the power of attorney or the successor trustee on your trust. Additionally, make sure you go over all of this with them, or maybe have that list available with your trust and all the other documents. Maybe even give them a copy of it if you feel comfortable, just in case anything happens to you. Also factor in tax minimization.

So for example tax minimization comes into play not just during your life, such as how much in taxes you’re paying right now and trying to minimize that, but also in retirement, and then also when you pass away. Right now the tax exemption amount, the amount of money you can pass on to your beneficiaries without having to pay a death tax or an estate tax, is a whopping over $12,000,000. $12,060,000 to be exact. That’s likely gonna be going down. It’s likely gonna be changing.

Be aware that you factor that in when say for example thinking about life insurance. So let’s say I want my kids to be rich when I pass away and let’s say I’m in pretty good health and I want to  take a huge life insurance policy out on me, but I also have a house, I’ve got investments, assets, retirement assets, everything you could imagine. That’s all great, and fine, and dandy let’s say my total estate is worth over $12,060,000 If you include the life insurance component. If that’s the case you might want to have an irrevocable life insurance trust or do some advanced estate planning that really can be done with your financial planner and your estate planning attorney.

Now all these different things are important considerations. You definitely need to do estate planning. You definitely want to think about life insurance as part of that, and a will, medical directive, power of attorney, and trust. All those things, check your beneficiaries and do all of that. And most importantly, talk to with your financial advisor for customized investment advice.

Speak with your estate planning attorney, to get all that done if you want to. If you don’t think that you have enough assets to really make it meaningful, maybe you just do it yourself. I highly recommend working with an estate planning attorney, but if you just don’t want to pay that fee there are online do it yourself (DIY) estate planning kits that you can download and use. At least that’s one option.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

Financial planning is different than financial advising in that financial advising is, you basically give your money to a financial advisor or an investment advisor and they invest it, hopefully, in a diversified portfolio that has stocks, bonds, alternative investments perhaps like real estate investment trusts or alternative investments such as commodities and structured notes. However, financial planning is different. Financial planning is basically a roadmap to get from point A to point B. Point B is the end of your life. Now that might sound morbid, but at the end of the day you don’t want to run out of money at the end of your life.

You want to make sure you’re living your best life. If you want to make sure that you truly are set to do that, you might want to go to a financial planner and have a financial plan done for you so that you can see that even if things get a little awry, the market goes down and whatnot, that you’re gonna be okay. Also you will have saved enough so that you can buy that dream home, or that second home, or put your kids through college, or your grandkids through college, or leave your family a legacy. If that’s what you wanna do and that’s what a financial plan is.

Some financial planners charge hourly and some charge just a flat fee. I personally build it into my managed accounts if you have an account with me you get a financial plan free of charge and the reason for that at least for me is that I don’t wanna give advice unless I truly know everything about your situation so that I can give accurate advice applicable and customized to your situation. Whether a financial plan is right for you or not please if you are gonna get one, seek professional advice. You don’t wanna get this one wrong.

A financial plan takes lots of things into consideration one of the things that I think is extremely important in a financial plan is tax minimization. So for example, if you are in a higher tax bracket now maybe you make $200,000 a year and you think you might be in a lower tax bracket when you retire. A financial plan will figure that out and if so that financial plan might say hey you might wanna contribute the maximum amount towards a retirement plan like a 401k or SEP IRA.

So that, that money that you put in for example lets say you put in $15,000 a year into a retirement plan you are gonna be paying taxes on that $15,000. In fact, that money is gonna grow and grow, so that when you are retired you’re gonna be taking $15,000 out plus all the growth at a lower tax rate. That’s just one of the considerations in a financial plan there are so many more, so definitely talk to your financial professional and do get a financial plan. They are fantastic, it’s a great roadmap make sure that financially going where you wanna be.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. The opinions voiced in this recording are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Dollar cost averaging is a strategy where you invest over a certain period of time. So for example, if you have $60,000 to invest, and you want to get in over a 6 month period of time, you would invest $10,000 each month for 6 months until you were fully invested. The purpose of dollar cost averaging is to get the average price, so that you take out the ups and the downs of the market and you are able to gradually get in to the market without worrying about whether you’re getting in at exactly the right time.

There is no way to know whether you’re getting in at the absolute bottom the market. So there are pros and cons with dollar cost averaging. Obviously, if you dollar cost average and the market went up after you fully went in it would’ve been better for you to invest all the money at the very beginning, that way you would’ve gotten all the gains and appreciation during that 6 months. However, a pro is if the market went down or you think the market’s gonna go down, then it’s better that you gradually got in because your average price per share will be lower than if you bought in all at once if it was higher than at the end of the 6 months.

So say for example the $60,000 that we were talking about earlier lets say you put in $10,000 and you were getting a balanced mutual fund, and that balanced mutual fund right now is selling for $10 a share you get $10,000 at $10 a share. Then the next month maybe you get it $9 a share, $8 a share, $9 a share $10 a share, $11 a share, guess what? You just now got the average over that 6 month period of time. So investing gradually into the market using a dollar cost averaging strategy is not necessarily good for everyone in every situation. I highly recommend that you talk to your investment professional so that you can see if dollar cost averaging is right for you.

 

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.

I often get asked the question whether it’s better to be in a regular brokerage account, or a fee-based managed account. The main difference is with a brokerage account you get one-time advice for a one-time commission fee. If you are going to want ongoing professional financial advice, and you want that professional to be placing trades in your account and managing the investment portfolio for you.

Generally speaking, I like the fee-based account because it allows me to give advice whenever the client needs it, and to transact on behalf of the client, and have discretion over that account, so I can place trades, and that client knows that when I’m placing a trade, I’m doing it for the best interest of the client. I’m not getting any additional commission for it, and I can buy and sell as I see fit. That financial advisor is generally, in my opinion, better able to be on the same side of the fence as you, and you know that they’re making decisions and placing trades in your best interest.

Disclosures: Sandra Cho is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Pointwealth Capital Management, a Registered  Investment Advisor and separate entity from LPL Financial. The opinions voiced in this blog are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.