During this quarter of the year, one of the most popular questions is: I heard about tax-loss harvesting from my friends/CPA/family. Should I do it? Tax-loss harvesting is a strategy investors use to offset capital gains by intentionally selling investments in taxable accounts at a loss. While it may be useful for a complex taxable account, it does…

When it comes to private investments, guess what topic we get asked the most? Yes, real estate! Today, we will discuss a strategy called the “1031 exchange”. The biggest advantage is the tax deferral function. You can keep rolling from one real estate investment to the next (with some nuances.) And if you do it right, it can potentially eliminate c…

This is our “How to pick a financial advisor” mini-series. First, did you know that only roughly 15% of financial advisors are “fiduciaries”, meaning we are legally and ethically bound to act in the best interests of our clients. The rest are operating their business under the “suitability rule”, meaning they don’t need to do what’s best for you, a…

Today, we’re breaking down the order to invest your money. We hear this question from our clients all the time: my friends are investing in this private deal, should I do something like that as well? Well, hold the horses a bit, because before we go all the way to the “private deal”, there are some other basic (maybe not as sexy as a private deal),…

Investing can often feel like walking a tightrope. Balancing risk mitigation and return maximization is essential for any successful investment. Should you take a high risk in the hope of a high return? Or should you aim for safety and expect less? In today’s volatile market, which one should take priority?…

Nathaniel talked about how high interest rates impact your investments previously. In this episode, Tim discusses how interest rates impact daily financial planning, from mortgages, car loans, and credit cards, to savings and budgeting. Tim said it so well: the point of planning is positioning. It allows you to put yourself in a good position to ta…

As you may have already heard, the Federal Reserve announced that it plans to hold interest rates steady amid high inflation, and forecasted just one cut in 2024 instead of three to six. In this episode, Nathaniel discussed what that means for your investments. And why did the market keep going up in a high-interest rate environment when in theory …

Today we're diving into a topic that's crucial for self-employed individuals: investment account types. Whether you're a freelancer, consultant, or small business owner, understanding these options can be a game-changer for your financial future and retirement. So, let's get started.By LBW Wealth Management

This is our 2024 first-quarter commentary. Nathaniel discussed 3 main topics: US stock market performance, and why the S&P 500 doesn’t truly reflect the overall stock market; inflation, and how it impacts your investments; and lastly, the 2024 presidential election and how it may affect your financial planning.…

If you are planning to have a child, or you just had one, there are some financial preparations that you may find extremely beneficial in the long run: 1. Cash Flow: Create a realistic budget and increase your emergency fund; 2. Estate Planning: Pick your guardians, create a trust, or at least complete the free estate planning templates your state …

In this episode, Nathaniel and Tim discussed what the S&P 500 index is, its performance, and does it truly represent the overall stock market. From January 1 to June 20, 2023, the S&P 500 increased 14.3%. That's well above the 10-year and 20-year averages through that same time period of 3.6% and 3%, respectively. "The markets must be doing really …

In this episode, Tim and Nathaniel discussed estate planning for digital assets. This is a relatively new concept for older generations. Most of us are familiar with wills and trusts for cash, real estate, and other investments. But what about digital assets like Bitcoin, online bank accounts, etc.? If you are an influencer or work in the media ind…

In this episode, Tim and Nathaniel discussed private investments: what're their qualifications, why they have income/assets restrictions, and how should one view them. A couple of research filters to go through: define your goals, understand the vehicles, consider the risk, know the management/leadership, and pay the right price. Nathaniel made a g…

Threads is Meta’s latest social media app. It’s a Twitter-like product with short missives you can share with followers. It lets you post text, photos, links, and videos. It reached 100 million subscribers in a record time: within 2 days. In comparison: it took ChatGPT 2 months, TikTok 9 months, Instagram 30 months, cell phones 15 years, and teleph…

For this episode, Nathaniel and Tim discussed investments within the music industry. The earning method has changed in the past decade with streaming services. Nathaniel used Taylor Swift as a perfect example of how top artists can change the power dynamic with corporate giants. There are many different types of organizations in the music industry …

In the last episode, we discussed some frequent spending habits we’ve seen, and how we should interpret them. For this episode, we are going to discuss budgeting. Before we start, understand that this is going to be an emotional and hard exercise. Ask yourself, are you really ready to make a lifestyle change if needed? Be realistic about your expec…

This is part one of our spending habits discussion. Dan and Tim listed what people call “spending red flags”: frequent small expenses like coffee and restaurants; unused subscriptions and memberships; impulse purchases; and trying to keep up with your friends. We are not disagreeing with these points, but it’s also important to understand this: our…

The crypto ETFs are not doing too well for the past year. The fall of some leading players like Tierra/Luna and FTX hurt investors greatly, and the potential criminal fraud investigation is even more alarming. And now, with the rise of ChatGPT, you can clearly see that crypto is no longer ETFs’ favorite new baby; the money is moving to the AI world…

In this episode, Nathaniel discussed 4 hot industries that he won’t invest in, and what his exceptions are: 1. No commodities like oil, gold, and silver, etc., but yes to commodity royalties. 2. No Bitcoin, but yes to blockchain technology or other related industries. 3. No real estate as a landlord, but yes to professional real estate investment g…

The U.S. government has never defaulted on its debt, and it’s unlikely it will default this time either. But if it were to happen theoretically, it would have severe consequences for the country's economy and global financial markets, from rising interest rates to lower stock market prices, and from higher inflation to the end of the U.S. Dollar do…

Charlie Munger and Warren Buffett are Nathaniel's all-time favorite investors. As always, they offered a lot of wisdom (and a couple of zings) at the 2023 Berkshire Hathaway annual meeting. Tim and Nathaniel discussed the duo's take on: 1. Why are they against "diversification" when everyone else thinks it's the golden rule, and the importance of b…

For this episode, we asked ChatGPT and Google Bard: "Write a podcast outline on how will ChatGPT/Google Bard change the financial planning industry?" Here is the second part of each chatbot's outline. Discuss potential concerns and limitations of using ChatGPT in financial planning: o Make mistakes that could lead to financial losses. o Be biased i…

For this episode, we asked ChatGPT and Google Bard: "Write a podcast outline on how will ChatGPT/Google Bard change the financial planning industry?" Here is the first part of each chatbot's outline. From Chat GPT: I. Introduction A. Introduce the topic of how ChatGPT is poised to revolutionize the financial planning industry B. Briefly explain wha…

In this episode, Ying and Nathaniel discussed the fight between Disney World and the state of Florida. Back in 2022, the state of Florida passed the Parental Rights in Education bill, aka “Don't Say Gay” law. Because of Disney World’s pushback, the Governor of Florida sought to take away Disney’s special tax district until he realized that the abol…

Many studies have been done from quality and quantity perspectives on whether money can buy happiness. It can, to a certain level. Caroline recommended reading the book: "Happy Money: The New Science of Smarter Spending" by Elizabeth Dunn and Michael Norton. The authors discussed 5 ways to actually increase happiness with money: 1. buying experienc…

In today's world, with social media's help (or curse?), we are beyond "keeping up with the Joneses." Billions of people on the internet are our "neighbor Jones" that we are trying to keep up and compete with, from the five bedrooms house in the Valley to the new Porsche, from traveling to Naples on a whim with some friends to the new Birkin special…

Nathaniel and Tim discussed the collapse of Silicon Valley Bank: what happened and what went wrong. First, unlike most banks, most of SVB's clients are not retail individuals/small businesses, but VC-funded tech/crypto startups. As you know, they are having a tough year. They are burning through cash and thus taking significant deposits out of SVB.…

Caroline and Tim discussed some highlights of SECURE ACT 2.0 and how it impacts us: 1. The age changes of RMDs (Required Minimum Distributions). 2. Allowing direct transfers from 529 plans to Roth IRAs under certain circumstances. 3. Changes with 401(k)s. 4. 401(k) catch-up contributions. 5. New Roth SIMPLE/SEP IRAs for small businesses and self-em…

1.Free estate planning documents. 2.Guardianship for minor children (or your pets!) 3.Is Trust right for me? 4.Burial instructions. 5.End-of-life instructions (Living Will). 6.POAs. 7.Asset distribution. 8.Knick-knacks. 9.Communicating with your loved ones about where you store your documents. 10.Routine review.…

Some people say that with today's technology, there's no need to have a financial advisor anymore. Robo/AI advisor has its uses: it's relatively cheaper, it can work 24/7 without any vacation, and the algorithms make objective investment decisions without bias. But does this mean we no longer need a human touch in financial decisions? Absolutely no…

For part II of the episode, Dan and Kennidy discussed how to manage your financial routine as a couple/partner. Do you join finances? Do you consolidate debts? How do you define the roles of finances? Is one of you taking the lead? Do you value your partners' non-monetary contributions? How to effectively discuss financial goals such as college pla…

This is part I of the episode where we discuss how can a couple/partners talk about finances. A survey showed that 41% of divorced Gen Xers and 29% of Boomers say they ended their marriage due to disagreements about money. Talking about money is important for any couple, whether you are dating, are domestic partners, or are married. “Even at the da…

There's increasing discussion about Central Bank Digital Currency (CBDC) - don't confuse it with Bitcoin or other cryptocurrencies. CBDC is not a new crypto. It's still US dollars released by the Federal Reserve, just in the digital format. The benefits are clear: more efficient and low-cost; faster access to assets and financial systems; it can al…

Because the U.S. has been running on a deficit (less tax revenue than the total spending) for the last few decades (with a few exceptions), we have a debt problem. The U.S. national debt hit $31.51 trillion as of Jan. 26. 2023. Our current debt ceiling is $31.4 trillion. What happens then? Nathaniel and Tim discussed how Congress can increase the d…

Why is it important to talk about finance in the family? Because money is not just about money. It’s particularly hard to discuss finance with your aging parents/loved ones because it makes them feel vulnerable. In addition, you can be 60 years old, but your 88-year-old father still views you as a child. Some important topics you should cover with …

How's the first week of your 2023 so far? Dan and Tim discussed the 2023 new year's resolutions for personal finance. First, before you start creating your list, take a step back, and think about two questions: what does money mean to you? What does enough mean to you? Some great financial resolutions are: get your taxes done earlier; plan your med…

There are some investment vehicles that allow you to save and invest for retirement with tremendous tax benefits: 401(k)s, IRAs, Roth IRAs, etc. Basically, traditional IRAs allow you to take the tax deductions today, but you will have to pay income taxes in the future when you take out distributions; meanwhile, Roth IRAs make you pay your taxes now…

A Roth conversion refers to taking all or part of the balance of an existing traditional IRA (or 401(k), 403(b), 457(b), etc.) and moving it into a Roth IRA. The point is to pay the tax now so that the assets can grow tax-free for the rest of your life. One of the myths we frequently hear from people refusing to do a Roth conversion is that: I will…

In today’s market, where interest rates are high, but sellers still think they can get premium prices, people are often more hesitant to invest. However, as legendary investor Warren Buffett once said, “be fearful when others are greedy, and greedy when others are fearful.” There are always great deals if you understand the fundamental mechanics of…

We invited Jorjio from MLG Capital back to the podcast and discussed more on real estate investing. How does real estate fit in people’s overall portfolio, compared with equities, fixed income, etc.? How can we build our real estate portfolios from scratch? Jorjio talked about the advantages and disadvantages of passive and active real estate inves…

FTX went from a crypto exchange leader with a $32 billion valuation to bankruptcy in a matter of days, with potential criminal investigations and class-action lawsuits pending. What happened? FTX is a crypto exchange that was started by Sam Bankman-Fried (SBF). Prior to FTX, he started a hedge fund Alameda Research, which the main purpose was to "a…

2022 has been a crazy volatile year for the stock market. In the US, the S&P 500 index is down more than 20% year-to-date. Considering the fact that the index had a positive 26.61% annual return for 2021, this certainly has been a roller coaster. In this episode, Nathaniel and Kennidy discussed the emotions of an investor. We had clients pressuring…

Today we are going to discuss the high-trending event: Elon Musk's Twitter purchase. Musk offered to purchase Twitter back in April 2022 and waived due diligence. Then in July, he attempted to back out of the deal due to a spam bots claim, and Twitter sued. The acquisition was closed on October 2022. Nathaniel spoke of Musk's Twitter debt and cash …

As you know, here in LBW we have four partners: Dan, Tim, Nathaniel, and Ying. None of us are mind readers. How do we ensure we are on the same page? How do we communicate? First, talk about what you want, constantly. Not just business needs, but sometimes personal/household needs. Have an operating agreement (even if your partners are your family …

Most of the people we work with are first-generation wealth. This means many of them, even though they're rich now, are still developing their relationship with money. How can they help their kids have a healthier relationship with finance, without the "taboo" feeling associated with wealth? Dan and Kennidy spoke about their respective childhoods, …

Treasuries have been a trendy product for investors recently due to inflation and higher interest rates. Nathaniel explained what U.S. Treasuries are: bills, notes, and bonds. They're considered relatively risk-free investments (as long as the U.S. government doesn't default on its debt). So if you want a fixed income portion within your investment…

In this episode, Nathaniel discussed with Kennidy why he's a firm advocate for "buy and hold" long-term investing instead of market timing, and short-term trading. Do you know that if you had invested in the S&P 500 starting in 1930 and never touched that money again, your total return by the end of 2020 would have been a stunning 17,715%? And yet,…

We invited Danan Kirby from Ariel Funds to join us and discuss investing in sports. Danan started with some interesting data: for the past 25 years, what do you think is the average return for an investment in the average sports team? The answer is a whopping 19.9 times! And that's just the average team. Even though investing in sports teams usuall…

Two weeks after Nathaniel talked about his homebuying journey where he said they hadn't found "the one" yet, Ying and Nathaniel bought a beautiful condo with a gorgeous view. So, we invited them back to talk about their journey of finding their forever home. They talked about how they locked in an amazing 2.25% mortgage rate, their emotional journe…

This is a reaction video to some financial advice we found on TikTok recently. "Don't put a down payment on your house, always put down as little as possible", "Buy crypto here, sell it there, and you will be rich". Say what????? Let's take a look.By LBW Wealth Management