By Michael Gold, CFP®, MBA, Founder & CEO, Wealth Advisor
While many things are happening right now that are out of our control, we focus on what we can control—how we communicate with each other. We want you to know without a doubt in your mind that we are here for you and have the experience to manage your financial situation with the level of excellence you expect and deserve.
What are we doing to support you, and what are some potential opportunities for our clients to take advantage of during this period?
Communicating Informational Support And Proactive Wealth Management Solutions
We serve clients across the country and are efficient users of Zoom video conferences to communicate with you effectively even without being in person. We are leveraging technology to its full potential and expanding our hours to nights and weekends to be accessible whenever you have a question or concern during this time. We also communicate with a weekly email letter we call “The Week Ahead,” which provides perspective and guidance on what to do and what not to do during tumultuous times.
Amid any crisis, bear market, or panic, behavioral consulting and support are key. Every client receives a call directly from Michael Gold, CFP®, MBA, Founder & CEO, Wealth Advisor of Gold Family Wealth, LLC, to ensure you have the support you need. All your questions and/or concerns are addressed so that you have the proper guidance to help you feel confident in your financial plan and how to best ensure your plan stays on track. We understand how investing in the financial markets can often feel like a roller coaster and how after a sharp drop, you want to make sure you land on your feet with everything intact.
Implementing Strategic Investment Management
Your financial well-being is of the utmost importance. To demonstrate that we are doing everything possible to make sure you are well taken care of, here are a few strategies woven into the DNA of sound portfolio management. These have been implemented to ensure your wealth is in a healthy position once this storm blows over and the financial markets eventually rebound:
- Dynamic rebalancing:This includes regularly buying or selling assets in a portfolio to preserve the integrity of your plans target asset allocation and initial/desired amount of risk. (1)
- Dividend reinvesting: Instead of receiving cash dividend payments, the money is reinvested to buy more shares. (2) When valuations in stocks or funds decline, those dividends are buying more shares at lower prices, helping to reduce your cost basis and ultimately improving your potential profit margin.
- Tax-loss harvesting:This means selling a security that has experienced a loss. By doing this, you can offset taxes on gains and income of those securities. (3) The logistics behind tax-loss harvesting are as follows: if there is a security at a loss in your portfolio, you sell it to realize that loss. The loss can then be used to offset capital gains in other parts of the portfolio (or even outside the portfolio), reducing your final tax bill. The second component, replacing sold securities by identifying and purchasing securities with similar characteristics to those we’ve sold for a loss, thereby preserving the portfolio’s overall compositions and asset allocation.
Opportunities For Us To Discuss
Aside from what we are already doing to maximize financial stability and growth for you, here are 3 opportunities we can consider in order to further improve your situation even more:
1. Roth Conversion
This is an ideal time to explore a Roth conversion while the values of your account are temporarily lower than they have been. When you convert funds from a traditional IRA or 401(k) to a Roth IRA, all that money in your Roth grows tax-free. Since the values in those accounts are lower now than when you initially invested, your tax exposure on the conversion amount is less than if you did this a month or two ago. Also, when or if you ever decide to take a distribution from your Roth, those withdrawals will not be taxed.
2. Start A Donor-Advised Fund (DAF)
A DAF acts like a philanthropic personal giving account where you can contribute money that is tax-deductible, advise on which charity you want the funds to be given to and all the assets will grow tax-free until it leaves the account. (4)
In a season where there are so many needs and countless nonprofits who need funds, this could be a significant win for you and them.
3. Transfer Assets To An Irrevocable Trust
When you transfer a house, stocks, or other appreciating assets into an irrevocable trust and prices rise after you make the transfer, that appreciation value does not count toward the estate of the person making the transfer. (5) In other words, the person making the transfer doesn’t have to worry about any of the growth of those assets being taxed within their estate.
What Other Ways Can We Encourage And Support You?
We are doing everything in our power to affirm that you and your financial situation are a priority. If you have any questions or concerns, or if you would like to explore opportunities mentioned in this article further, please reach out to Gold Family Wealth, LLC at firstname.lastname@example.org or (800) 303-2533.
Michael Gold is the Founder and CEO, Wealth Advisor of Gold Family Wealth, an independent wealth management boutique, and named one of the Top 100 People in Finance. Michael has 20 years of experience in the financial industry and has a bachelor’s degree in business and economics from the State University of New York College at Oneonta, an MBA from NYU Stern School of Business, specializing in Quantitative Finance and Leadership, and his CERTIFIED FINANCIAL PLANNER™ (CFP®) credential. He serves business owners and entrepreneurs by stress-testing their financial plan to identify red flags and missed opportunities. Michael strategically outsources professionals from various fields, such as tax, insurance, retirement and trust, and estate law to collaborate on potential solutions to help position his clients to pursue their desired goals.
Michael currently lives in Westport, CT. When he’s not working, you can find him spending time with his wife, Giselle, their three children, Sebastian, Aria, and Pierce, and their dog, Charly. To learn more about Michael, connect with him on LinkedIn.
Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors.”
“Top 100 Magazine selections are made utilizing proprietary software, which employs an algorithm to search a variety of online resources for industry-specific terms and key words. These resources include social media, blog posts, peer reviews, and Google indices. In addition, wealth managers must also the following criteria: 1. Registered with the SEC as a registered investment adviser or a registered investment adviser representative; 2. Not more than 1 filed complaint and never been convicted of a felony. Listing in this publication and/or award is not a guarantee of future investment success. This recognition should not be construed as an endorsement of the advisor by any client.”
“A diversified portfolio does not assure a profit or protect against loss in a declining market.”
“Converting from a traditional IRA to a Roth IRA is a taxable event.”