Your Mental Wealth Advisors Blog
Important New Filing Requirement for Entity involvement
As your Financial Advisor, we would like to keep you informed about new federal requirements that may affect your financial well-being, particularly if you hold a beneficial ownership in entities. Read More
Property Alert Services
It’s essential to stay vigilant and take proactive steps to safeguard our homes and assets. Your county may provide a free way to protect your property assets from scammers. Read More
You are being targeted by Search engine optimization (SEO) scams.
We wanted to bring to your attention a recent alert from Schwab regarding potential security threats that could affect your online interactions. Scammers are employing search engine optimization (SEO) techniques to create deceptive websites that may appear in search results when you're looking for trusted institutions like Schwab. Read More
Navigating the Tax Maze: A Comprehensive Guide to Documenting Your 2023 Tax Return
As we move through the year, tax season is getting closer, and it's time for individuals and businesses to dig into the details of their finances. To file your 2023 tax return properly, you need to carefully think about and collect the right documents. In this blog post, we'll help you by providing insights and guidance on the important documents you'll need to handle the complexities of tax preparation. Read More
December Market Commentary Rates: Lower and Sooner?
December Market Commentary Rates: Lower and Sooner? Read More
What Issues Should I Consider Before The End Of The Year 2023
As the year draws to a close, it's a time for reflection, gratitude, and planning for the future. Whether you're a diligent planner or someone who's just getting started, there are several critical issues to consider before the end of the year. Read More
A Raft of Reassuring Data – or Not?
For most of the summer, increasingly positive data releases fed into the market’s upbeat view of the economy. This seemed to belie the consistent messaging from the Federal Reserve that it isn’t done raising rates and inflation isn’t yet whupped. Read More
Guarding Your Financial Future: The Power of Credit Freezing
In an era where data breaches and identity theft have become all too common, taking proactive steps to protect your financial security is essential. Recent waves of high-profile security breaches and data leaks, impacting major corporations such as AT&T, Facebook, and Marriott, have underscored the vulnerability of personal information to cybercriminals. Read More
Deglobalization and Dedollarization
In this publication we assess common questions we receive about globalization. This includes whether global trade is on the decline, if onshoring is replacing foreign direct investment, and if the dollar’s status as the world’s reserve currency is in jeopardy. Global trade and FDI (foreign direct investment) flows are down from their early 2000s peaks, but by no means is globalization dead. Most of the downside in flows has come from China, which has been becoming more self-sufficient for longer than most may have thought. Read More
Debt Deadlines, Defaults and Downgrades
What Issues to Consider as my child becomes independent
As your children becomes independent, you may want to encourage them to develop their own decision-making skills, while still being there to offer guidance and support when needed. Read More
Estate Planning
In working with our clients, we find that estate planning is often one of the most rewarding financial tasks to tackle. It’s hard to think about it, but our clients find that going through the process of building a clean, creative plan provides security, peace of mind, and a chance to think through leaving a legacy. Read More
Tax Season Help Has Arrived
As another tax season is approaching, we wanted to send a quick note and help out with a cheat sheet (above) to help answer some of the questions we frequently get. Read More
Inflation Impacts
Inflation has been making our lives more expensive as the costs of many goods and services we use every day have skyrocketed. The Federal Reserve is attempting to lower inflation by using the bluntest tool in its arsenal – raising the key short-term interest rate. Read More
Should a Trust Be Part of Your Estate Plan?
Trusts used to be seen as an estate planning tool for only the very wealthy, who have complicated family situations to sort out, and high-value assets to protect. Times have changed. Modern lives are complicated, asset values are higher, and solid estate planning is for everyone. Read More
How to Have “The Talk” With Your Aging Parents
Whether it builds gradually or happens overnight – there may come a moment when you realize that you need to care for the people that cared for you. Read More
The psychology of retirement
The phrase may seem cliché, but it holds true. We can lose track of the big picture along the journey if we aren’t careful. This can lead to challenging adjustment periods, and even make us feel like we have lost our sense of purpose. Read More
The Optimal Retirement Withdrawal Plan
You've saved diligently and invested prudently, and now it's time to turn savings into income. But how do you do that? Read More
Avoiding the Big Mistake
Market volatility has many investors concerned, no matter where they are on their financial journey. Headlines and statement balances create panic, and often the need to “do something.” The feeling that markets are out of control, so reeling your portfolio back in – or selling it off – are common reactions to help regain a sense of equilibrium. Read More
The Overlooked Key to Estate Planning Success: The Psychology of Communication
Estate planning focuses on three goals: protecting yourself and your family, passing on assets, and keeping as much of an estate away from the taxman as possible. There are essential documents, such as a medical power of attorney and a will; there are structures, such as trusts, and procedures to go through. Read More
Higher and Faster: The Fed Turns Up the Heat
With one 25 basis point rate hike in place, the Fed is already indicating that at the May Federal Open Market Committee (FOMC) meeting, the key short-term interest rate will jump substantially. In recent remarks, Federal Reserve Chairman Powell said the Fed would be "moving a little more quickly." The first 50 basis point hike in 22 years is the start of the new timeline for how high rates will likely get and when. Read More
Taxes FAQ 2022
For 2022, there were a few more minor changes to the tax laws and codes, but not the significant tax changes enacted in the Tax Cuts and Jobs Act (TCJA) passed in late 2017. The law kept the old structure of seven individual income tax brackets, but it lowered the rates in most cases. The top rate fell from 39.6% to 37%, while the 33% bracket declined to 32%. The 28% bracket dropped to 24%, the 25% bracket to 22%, and the 15% bracket to 12%. The lowest bracket remained at 10%, and the 35% bracket didn't change. The income bands corresponding to the new rates were also lowered, compared to the 2018 brackets, for the five highest brackets. This year, the income brackets were adjusted slightly for inflation, but just the income ranges in each bracket. Read More
Four Steps to Cope with Market Madness
After hitting one record close after another in 2021, the stock market responded to geopolitical uncertainty, spiking inflation, and the prospect of a much more aggressive Federal Reserve by dropping – a lot. Read More
The Russian Invasion of Ukraine
The invasion of Ukraine is distressing on a humanitarian level and our hearts go out to the individuals and families who are being impacted by this crisis - both directly and indirectly. Witnessing this trauma unfold can be quite unsettling. It’s also normal to worry about the impact of such a tragedy on one’s life savings, family’s financial security, and investment portfolios. Fear creates market drops. And the world is nervous. We can’t predict the future. But we can learn from the past and present to help guide us forward. Read More
Five Questions to Ask Before Investing in Crypto
The world of digital assets—cryptocurrencies, NFTs, and decentralized finance—were the hottest topics of 2021. Should you include them in your investment plan? There’s a lot to unpack, so before putting money into digital assets start by asking a few key questions. Read More
April 2021 Newsletter
During the last quarter Q1 2021, we have celebrated the first-year anniversary of the global Covid-19 pandemic. More than a year has passed since it started to weigh in on our lives and capital markets. As it has been said many times before, we were once again reminded of a dangerous four-letter statement; this time is different. Only this time though, it has been truly different. Read More
Markets Comfortably Numb, or Confused?
If you think the stock market was down 5% since November, then up 8%, then down 2%…and it’s been on a trade mill during which time the end result performance has been flat for the last 8 months – you’d be correct (you’d get a very similar result with Dow Jones). Read More
5 Tips for loving life in tough economic times
Many of us hold onto the belief that more money would make us happy. Research shows that there is a correlation between money and happiness. However this is only true up to a certain level of income. Poverty, with all of its profound stressors, is clearly a cause for unhappiness. However, when a household income rises above $75,000 per year, there is no real connection between money and happiness. Now $75,000 per year is nothing to sneeze at, especially in this economy. Still it’s hard for many of us to swallow that an extra million dollars wouldn't bring some happiness. But this just isn't the case. There have been significant economic gains experienced by Americans in the past few decades. These gains have NOT been accompanied by a rise in happiness. In fact, these economic gains have been associated with increases in depression. Read More
Once Again, It’s the End of the World
The most popular question these days is: when will life get back to normal? The most accurate and honest answer to that is: no one knows. Especially when dealing with a novel virus with no vaccine, and the immunity levels of the people with antibodies unknown, making predictions seems like a fool’s errand, and yet, we can’t stop thinking about it because everything else depends on it. Let me present a case below, on how expectations and the outcome can fall on exactly opposite directions. Read More
Is a financial Planner Really Worth their Planning and Investment Advisory Fee?
A recent survey indicates that an increasing number of high net worth investors are willing to pay for solid, unbiased, fee-only investment advice and financial planning. This is not really surprising considering the challenges of today’s markets and the economic environment. Read More
Nurturing a Child’s Relationship with Money
My six year old son asks me a lot of questions about money. How much do we have? How much does that cost? Why can’t we buy this? It would seem he is a little obsessed. Maybe some of that comes with being a son of a Financial Advisor, but I think it is just a part of growing up and inserting values on what we see around us. Like it or not, money is integrated into a lot of our day-to-day decisions and even our relationships. Read More
Are Investors Their Own Worst Enemy?
We like to think that we are logical, rational beings. We want to believe that we weigh the pros and cons of each decision and choose the most effective course of action before we act. However, when it comes to money, our brains haven't evolved much beyond those of our furry animal friends. Read More
Hind Sight is Twenty Nineteen
In this last newsletter of the year, I think it is suitable to start with a story involving Dionysus, the god of wine, ritual ecstasy and theater, as most of us will likely be engaged in a related activity in one shape or form, joining the spirit of the season. Read More
Charitable Giving: Beyond the Basics
We all love to give. It feels great to give to others, whether it is your favorite charity, or as a demonstration of love and support of friends and family members. However, just like any expense, giving should be budgeted, tracked, and done with intention. It is not healthy to give beyond one’s means. It is not wise to support financial dependence in others, or to give out of a sense of guilt or shame. Time spent in support of people and causes you love can be just as valuable, as a financial gesture. Many find this kind of hands on giving to be even more rewarding. Read More
Financial Win-Win: Give to Charity and Avoid the Income Taxes on $100k
The tax code, with all of its hundreds of pages of regulations, stipulations, and loopholes always leave something be learned. Not only is the U.S. Internal Revenue Code massive, different write-offs and deductions occur at different stages in life, so it’s unsurprising if you don’t know the details of the IRA (Individual Retirement Account) charitable rollover. Read More
It’s Official: Correction is Here
The late September, early October market highs in stocks, may be this year’s all-time high in stock values. This is not due to the US economy doing poorly, or companies reporting dismal results. The stock market is forward looking, and so with rising input, financing and labor costs, along with a slowing down of global trade, European Union troubled with Brexit and Italy, China still on controlled slow down mode, equity investors are having a hard time finding bright spots. One thing is for sure, that the volatility is back and major indexes have touched the correction territory. Read More
Both Pedals to the Metal
I would like to start by apologizing for not writing my newsletters lately in their usual quarterly frequency. This has been an unusual year for many reasons, one of which is the time I have spent finishing my first book titled “Stop Overspending.” I am lucky enough to be asked the reason for my silence on the newsletter front, and this is one reason why. I will send a link to it once published, which is going to be in the next few months, and I hope you’ll enjoy reading it. Read More
To Cut, Or Not To Cut…FED Is The Question
We’re living in interesting times indeed. Wherever we look, a new, better, improved version of every product, service, policy or methodology is available for a spin. Some of these trials end up becoming hugely successful, and some of them prove to be disastrous. Read More
Pour Some Sugar On me
Current market conditions remind me of a scene from the 2000 Ridley Scott movie Gladiator, in which, the protagonist Maximus (Russel Crowe), a Roman army general turned gladiator, walks out of a wooden cage filled with other fighters, all paying their respects to him, while some so fearful that they can’t control their urine. After killing four opponents in one session, Maximus throws his sword at the spectators, filled with disgust of their enthusiasm towards violence, shouting his famous line “Are you entertained?”. Read More
2019…And the Plot Thickens
According to the Chinese calendar, 2019 is going to be a Pig year and since it is a water animal, it can be as murky and confusing as a mud pile, or as clear as Lake Tahoe. Today, I will attempt to turn the murkiness of the current market conditions into a clearer picture. My goal is to share relevant facts without distorting them, and make useful and actionable forecasts…so, let’s start. Read More
It’s Official: Correction is Here
The late September, early October market highs in stocks, may be this year’s all-time high in stock values. This is not due to the US economy doing poorly, or companies reporting dismal results. The stock market is forward looking, and so with rising input, financing and labor costs, along with a slowing down of global trade, European Union troubled with Brexit and Italy, China still on controlled slow down mode, equity investors are having a hard time finding bright spots. One thing is for sure, that the volatility is back and major indexes have touched the correction territory. Read More
…And Now, The End Is Near?
For years now, market participants have been arguing on whether or not “the” market top has been seen. So far, those who had suggested “a” market top yes, but not “the” market top have won the argument and prevailed. That being said, “this time”, both economically and market wise, it appears likely that we are in the later stages of a growth and bull cycle. Read More
It May Get Worse Before It Gets Better
One piece of the profit/loss puzzle of investments that is so easy to see in hindsight, is that market pull backs, or corrections present investment opportunities. The bigger the drop, the better the opportunity. Therefore, in theory, a successful investor would be happy to see market lows, but that’s not how the story goes for a variety of reasons. The hard part is how to keep your cool and implement this wisdom in the midst of crisis, fear and while losing the market value of your invested funds. Read More
2018: A Challenging Year Might Be Ahead
First thing first: I hope you had a wonderful Thanksgiving with your family and loved ones, and wish you a great Holiday Season, Christmas, News Year….under whatever name, shape or form you enjoy celebrating. My usual attitude I have adopted from a longtime friend is: “Is there something to celebrate? What are we waiting for?” Read More
Yep, More of the Same, Which is Terrific
One key concept of Buddhism is “impermanence.” That which changes cannot be real, and so we shouldn’t concern ourselves with what is not real…right? Given the stock market’s impermanent nature, which is bound to cease at some point (as resilient as it has been), should we still concern ourselves with its potential next move? Read More
A Mixed Bag of More of the Same
Many observers are surprised with the current levels of US Stock Indices. There is so much talk about stretched valuations, Trump Trade being over, the potential damage of rising interest rates, trade/currency wars, political uncertainty, rising inflation and last but not the least, the aging economic growth cycle, that given all this, stock prices seem unjustified. Read More
End of an Era: A Big Change Underway
When the stock market goes down, we wonder much how lower it can go. When it goes up, we wonder if we’ve reached a market top. Wonder, is the name of our game. Even if the result of the US presidential election were different, the title of my last newsletter for 2016 would be same. Read More
Looking Ahead to 2016
On May 21st, the S&P 500 index hit an all-time high, 3.5% above December 31st close, only to drop 12.35% in the following three months. A similar and even deeper fall occurred during the summer of 2011, a loss of 17.6% in the same index. Read More
First Half Report, Brexit and More
At first glance, the US stock market performance in the first half of 2016 can be summarized as a “all hat no cattle” type of action. Put in other words, a sideway trend has been the name of the game, with a lot of volatility, only to end back to square one for large US stock indexes such as S&P 500 and Dow Jones. Read More
The Key Question Is…
Hello tax season survivors. In this commentary, I will do my best to explain the current state of capital markets as simply as it would please Einstein, and dive deeper as I move along. Read More
What is Wrong with the US Stock Market?
A client and friend asked why the current US stock market was having a hard time finding a path and if I saw this lack of a path as a threat to the global financial stability. Read More
Macro Factors In Play
My last market commentary’s title was “Dollar Is Up, Oil Is Down, Stocks Get Confused”. If you’re wondering why I haven’t written a newsletter for the last few months, that’s because this analysis has been as valid as it was a few months ago. Since November 2014, stocks have been in a sideway trend, dollar has been climbing up and oil looking for a bottom at around $40-$50 per barrel. Read More
Oil Falls, Dollar Rises, Stocks Get Confused
As we come close to the end of a volatile year in stocks, one sudden an unexpected development (for some surely it was expected) slowed down the pace of a typical Santa Claus rally, it caused a shallow pull back, and raised a lot of questions. Crude oil price’s sharp decline caught many investors off guard and the confusion increased volatility. Read More
Most Hated Bull Still Running
Recently, I’ve got invited to a Rotary Club to share my thoughts on current economic and market conditions. I chose instead, a topic more interesting and not as dry for many, and talked about the findings of a relatively new field of study called Behavioral Finance. It is a hybrid of psychology and economics and aims to understand how people make financial and consumption decisions. Read More
Glass Half Full (or empty?)
When the markets don’t give us a clear direction and has mixed data flowing from many different sources, depending on our bias, one can easily call it half full or half empty. Either way, we would be right. Today, one can conclude that the stock market is due a correction or that it is building momentum for an uptrend. How so? Read More
An Irrational Stock Market?
There are many reasons why managing your own investments is a daunting task. The biggest challenge isn’t the lack of expertise or time…those can be attained. The ultimate challenge is removing your emotions from your money and investments. If you associate success, self-worth, security and future well-being with the balance in your bank account, then you need to be aware of the emotional roller coaster you are on. Read More
Investment management
Investment management is the combination of science and intuition, anticipating what others anticipate, about a future set of events that are inherently unknowable. That’s what I will attempt to do in this market letter: Anticipate what others may anticipate about capital markets performance and behavior in 2014. Before I progress any further, I do need to disclose that I do not know. Having established some faith and confidence here, let’s pay a quick visit to 2013. Read More
Is Good News Actually The Bad News
As I was looking for a quote to start October’s market letter, I have stopped yawning when I saw this one liner from my favorite fictitious character, Sherlock Holmes. It captures the current market mood perfectly as I have never seen a market rally that is much hated, and much ignored. Read More
Surprise: Long Term Equity Trends Intact
While chatting with a friend, who works at a large wealth management firm in San Francisco, I wanted to hear his take on whether we have seen a market top in stocks. He answered “…how many times have we asked this question in the last five years?” Read More