Top 5 Tax Savings Tips For Business Owners

1. Start-Up Costs: Start-up costs are amounts paid or incurred for investigating or creating your business. Those that are paid or incurred before the actual business start date are amortized over a period of years, whereas costs incurred on or after the business start date are fully deductible in the year they were incurred. By planning for the earliest possible …

DOL Rule Is Seismic Shift For Advisors

By Karen DeMasters | Financial Advisor Magazine | Labor Secretary Alexander Acosta’s announcement that the new fiduciary rule will go into effect June 9 as planned will dramatically impact the lives of financial advisors who deal with retirement plans, according to advisors, lawyers and consultants. Full implementation of the rule for broker-dealers and advisors is still set for Jan. 1, …

Financial Transparency…Do Kids Need The Truth?

One of the greatest challenges financially successful families have is how to talk about their wealth with their children. More specifically, we are commonly asked by parents (aka, wealth holders), “Should we talk about our family wealth with our children?” “If so, at what age do we start talking about the money?” There are two primary reasons for this challenge. …

Taxes, Trump, Transparency: Who Ordered The Pie?

What Is Trump’s Tax Plan? Lower Rates For The Wealthy And Business Owners: The top income tax rate would decrease from 39.6% to 35%, and the 7 marginal rates would condense to 3 (35%, 25%, 10%). There was no mention of any changes to capital gain rates. The corporate rate would lower from 35% to 15%, and includes pass-through entities …

Full Transparency…Where’s The BeEf?

By David Karp, PagnatoKarp The 1980’s were a very interesting decade for many reasons beyond just financial. It was one that saw astronomical interest rate moves, peak equity valuations, inflation and market collapses. The 1980’s also provided us with one of the most unforgettable slogans of all time: “Where’s the Beef?”. With full transparency, we ask ourselves that very same …

What Might We Be Missing?

By David Karp, PagnatoKarp When we have opinions that differ from many investors, we need to ask ourselves what might we be missing. While we applaud some of the current administration’s economic initiatives, we struggle to share the market’s optimism over their eventual success. To provide insight into why that is, we summarize the major economic proposals and the potential …

The Lowest Common Denominator: Debt

By Michael Lebowitz At a recent investment conference, hedge fund billionaire Stanley Druckenmiller predicted that in-terest rates would continue rising. Specifically, he suggested that, consistent with the prospects for economic growth, the 10-year U.S. Treasury yield could reach 6.00% over the next couple of years. Druckenmiller’s track record lends credence to his economic perspectives. While we would very much like …

Assets Under Management

Brokers Once Disdained Independent Advisers. Now They Copy Them.

By Paul Pagnato Originally published in the Wall Street Journal on January 6, 2017. Written by Michael Wursthorn Wall Street brokerages are moving to comply with new retirement-advice regulations, boost profit and take back market share. Executives at Wall Street’s biggest brokerages for years have dismissed independent financial advisers as unsophisticated rivals who worked out of strip malls. These registered investment …

Deception

Deception

By Michael Lebowitz Janet Yellen: At the December 14, 2016 FOMC press conference, Federal Reserve Chairwoman Janet Yellen responded to a reporter’s question about equity valuations and the possibility that equities are in a bubble by stating the following: “I believe it’s fair to say that they (valuations) remain within normal ranges”. She further justified her statement, by comparing equity …

Lessons Learned from the Dow Hitting 10k

By Paul Pagnato When the Dow hit the once unthinkable 10,000 mark in March 1999, there was euphoria and significant optimism. This was the longest bull market run in history. Today, the Dow hovers around an incredible 20K. Talk about exciting times. 1999 was the last market up year of the famous technology bubble. I can recall my taxi cab driver …

Doing Taxes

What a Trump Presidency Means for 2016 Year-end Tax Planning

By Paul Pagnato It’s now been one week since the elections and the level of change already underway is significant, if not downright mind boggling. Never before has our country witnessed such a sharp contrast in leadership, seemingly overnight. While there are still many unknowns, one thing is certain – the impact of a surprise Trump presidency will be felt by …

Perception vs. Reality

By Michael Lebowitz When asset valuations are extended well beyond historical norms, as they are today, some investment managers elect to take a more defensive and cautious posture than the consensus. In “Bubbles and Elevators”, we discussed how behavioral instincts to follow the herd dominate human nature, but fighting those instincts is necessary to limit exposure to, or avoid entirely, …

What, Me Worry?

By Michael Lebowitz Normally, in the weeks preceding a presidential election, yard signs and bumper stickers litter the landscape touting the candidates. Voting citizens across the country proudly express their preference and enthusiasm. That is not the case this year, but this election year has been anything but normal. Perhaps candidates’ use of the internet and e-mail has altered campaign …

Fear of Missing Out

Bubbles and Elevators

By Michael Lebowitz Volumes have been written on behavioral finance and the seemingly “irrational” decisions investors tend to make to avoid straying from the herd. This article examines a current example coined “FOMO” (fear of missing out), in today’s texting parlance. Through a better understanding of the psychological dynamics of bubble mentality, we hope to help you better grasp the …

Economy and Environment Crossroads

Our View from the Peak

By Michael Lebowitz To build and preserve your wealth, we primarily focus on three broad factors to help determine our investment themes: asset valuation, economic activity and geopolitical risks. These factors along with your specific goals, drive our recommendations of asset allocation and risk management. Following is a summary of our observations on these key factors. Investment Valuations Extraordinary monetary …

Stock Exchange

IEX Stock Exchange: Faster than a Speeding Bullet….

By Michael Lebowitz On June 17, 2016, the Securities Exchange Commission (SEC) designated Investors Exchange (IEX) a full-fledged stock exchange, making it the 13th official stock exchange. PagnatoKarp welcomes this news as IEX has the potential to help level the playing field which should allow our clients to receive better trade executions, thus lower trading costs. This article discusses high …

Limiting Losses

By Michael Lebowitz “Most investors are primarily oriented toward return, how much they can make and pay little attention to risk, how much they can lose.” Seth Klarman Growing wealth through investing typically occurs over a long time horizon that includes many bullish and bearish market cycles. While making the most out of bull markets is important, it is equally …

Financial Times Top Financial Advisers 2016

Genuine Quality: PagnatoKarp a Financial Times Top 300 Financial Advisor

Just released this week, the 3rd edition of the Financial Times Top 300 Registered Investment Advisors includes PagnatoKarp – more recognition for our genuine True Fiduciary™ approach that puts our clients interests above our own and our maniacal commitment to customer service. Consistently ranked by Barron’s, PagnatoKarp is one of America’s premier independent wealth protection specialists. We focus on high net-worth …

Ethical Business

In Support of our Clients’ Best Interest

Winning at business is perhaps one of the more rewarding slices of life. Successfully building a brand and amassing wealth for your family now and for future generations brings you satisfaction and, for the ones who matter most, security. Protecting that wealth on the other hand isn’t always a slam dunk. There are many reasons for this of course but …