Market News
One’s investment portfolio is always at risk to an unforeseen event such as the 9/11 attacks, the implosion of the mortgage market in 2008, or even a foreign actor trying to invade a democracy. Imperil can be mitigated by diversifying an investment portfolio by industry, geography, and through the timing of investments (building positions over time.)
However, there are two drains on a portfolio’s performance that can be controlled:
Choosing the right investment vehicle
Generic investments are sometimes delivered in exotic insurance or limited partnership vehicles that hide excessive fees. Some of these investments marketed as being “tax favorable” will actually increase the tax rate on an investor’s appreciation. At Tre Api Wealth, our fees are transparent, and investments are held simply in an account at Charles Schwab & Co. We welcome our clients using to us as a sounding board to evaluate many of these too-good-to-be-true investments, and we will be able to steer you away from thousands of dollars in masked and unnecessary fees and commissions.
Taxes
Taxes can be minimized by both the simple titling of assets and the timing of transactions. For instance, it is rarely advisable for an elder person to sell a highly appreciated asset. “Joint tenancy “can also eliminate favorable tax benefits. We are here to provide you with a holistic investment experience.
Below are articles written by Lou Barberini that address some of these issues in more detail.
Shhh…. 5% Treasury Rates Are Crushing the Interest Banks and SFERS’ Deferred Comp is Paying
Historically, it was advisable for investors to balance their investments and/or their retirements accounts between fixed income investments and stock/mutual fund investments. Fixed income investments could be described as certificates of deposits, stable...
Propped-up Real Estate Values Surface in Individual Investors’ Market
In my November 2nd column, I questioned how self-appraised real estate investments purchased by public pensions, like the San Francisco Employees’ Retirement System (SFERS), had appreciated in value, while at the same time comparable investments that are...
How the Stock Market Decline Can Benefit Retirees’ Traditional 401k’s and IRA’s
Writer’s note: I was quoted and a portion of my subject matter from this article later appeared in the Wall Street Journal. Though my article is more about the psychology of taking taking “in-kind distributions” from an IRA at depressed share prices, and marrying...
Why Public Safety’s Paychecks Must Be Reduced
Ok, ok, that’s just a teaser line. But there is truth to the title, and it affects every employee in the country—not just public safety employees. Daily, and in every business or municipal jurisdiction, employees are approached by salespersons at fund...
Regarding Those Insurance Pitches at SFPD Roll Calls: Don’t Be Fooled
Prior to Covid, insurance agents were provided access to SFPD and other jurisdiction’s lineups (roll calls) to pitch their products. It appears that many insurance agents perceive public safety employees’ lifetime of predictable income similar to a highly...
INVEST IN TEACHERS OR HEDGE FUND MANAGERS?
If you work for the city or if you are a city taxpayer, you should be concerned that the ultimate responsibility for the viability of the San Francisco public employees’ pension falls on your shoulders. With that in mind, consider this question: Would you prefer...
Don’t Mistake Life Insurance as an Investment Product
With the stock market hitting severe turbulence, the sales pitches are going to increase for tax-free, riskless savings and investment vehicles that will grow and escape estate taxes. Beware! Many salespersons cloak the wolf of extremely high-commission insurance...
“Community Property” Can Be More Expensive
If you don’t have a living trust, a married couple should not hold their property titled as “community property.” Huh? If your house or brokerage account is titled as “community property,” a surviving spouse will pay a probate tax when they receive their deceased...
Is Roth participation in DC plans being suppressed by record keepers?
For a large portion of DC plan participants, a Roth plan might be better than a traditional plan. But few participants choose the Roth option. Every day, employees meet with pension record-keeper advisers and have a typical discussion about their 401(k), 403(b) or...
DEFERRED COMP ID@NT!TY THEFT TARGET
In mid-June I was transferring a portion of my Prudential San Francisco Employees' Deferred Comp account to another institution when I stumbled upon something I had overlooked: Prudential has never issued me, nor the other 25,000+ San Francisco public employees,...