Everything listed under: Investment Management

  • The New DOL Fiduciary Rule - Who's on Your Side?

    Friday, June 9th, quietly marked an historic day in the financial services world. Moving forward, all financial advisors are required to forego any sales agenda and give advice that will benefit their clients—or, if they decide otherwise, to explain how and why they intend to give advice that instead primarily benefits themselves and their brokerage company. This new rule only pertains to rollovers from a qualified plan like a 401(k) into an IRA, and to the investment recommendations for t...  Read More...

  • September Volatility - A Reason to Panic?

    The answer to that question at least 99% of the time is resoundingly, "No!"  This time is no different. On Friday, the S&P 500 Index fell 2.4%; and, of course, we heard the usual exaggerations from the press about a possible “panic.” Perhaps, the media had merely been lulled into a sense of boredom as the markets have been relatively quiet over the summer and even into September – historically, the most volatile month for the markets. True, Friday w...  Read More...

  • Audit Triggers, Brackets, Phase-Outs: A Quick Guide to Some Key Numbers

    Is it tax season already? In truth, it’s always tax season. As we near the 4th quarter of the year, however, we are able to take a much closer look at the 2016 and 2017 tax picture for each of our clients.   Read More...

  • A Quick Look at the Presidential Candidates’ Tax Proposals

    As summer winds down and we head in to the final stretch of the 2016 presidential election, including the first one-on-one debate on September 26th, we thought we might provide some “facts-only” information regarding the candidates’ tax proposals. Though tax policies haven't received top billing in this year's presidential election dialogue, they are still part of the conversation. We all understand that promises and reality may not be conforming, however, what follows is at least what has been ...  Read More...

  • Tax Loss Harvesting - "Making Lemonade out of Lemons"

    When is the last time you cheered when the market dropped 5%?  At first blush, a market correction isn't intuitively a reason for a "Woohooo!"  Look again, however, to find that these downturns actually provide great opportunity.  While it's true that they offer an entry point for cash 'on the side' that may have been waiting to be invested, more importantly, they provide the conditions to aggressively Tax Loss Harvest (TLH) your portfolio.   Read More...

  • New Fiduciary Ruling - A Better Standard

      An important ruling passed on April 8th, 2016 by the Department of Labor should be considered a major win for investors everywhere. http://www.dol.gov/ebsa/regs/conflictsofinterest.html In a nutshell, many advisors and investment managers currently adhere to what is referred to as a “suitability” rule meaning that their advice has to be considered suitable for a client, however, it is not required that the advice be in the client’s best interest. This new ruling moves the investment world...  Read More...

  • Case Study: Original Owner of Healthcare Technology Company IPOs - Managing a Windfall

    Setting: Newly-married couple in their early 30’s originally met and worked in New York before moving to Austin where she joined a privately-held, healthcare technology company. She found the work to be both high energy and highly demanding. While the compensation was generous, they knew they wanted to build a home, start a family, and achieve financial freedom at an early age.   Read More...

  • Case Study: OB/GYN Practice Weighing Strategic Options and Decides Not to Sell

    Setting: Our client is a young OB/GYN physician that is one of three partners in a practice in Texas. In this increasingly regulated and challenging Affordable Care Act environment, he contemplated merging his practice with one of two large hospital groups, or another similar sized practice. We had only recently begun to on-board this client when he presented us with this “life happens” consideration, but we prioritized our on-boarding process to  move quickly in analyzing how this might im...  Read More...

  • Case Study: Orthopedic Surgeon Builds Practice, Weighs Strategic Options

    Setting: We first met this orthopedic surgeon when he was a newly minted graduate from his residency program, and we have been partnering with him on his life journey ever since (5 years). He comes from a large low-to-middle class family with a lot of siblings, which perhaps explains his attention to detail and propensity to save. Unlike most of our physician/surgeon clients who have seen the increasingly complex regulatory environment erode their income and take away their autonomy, this client...  Read More...

  • Case Study: A New Resident Gets Started on the Right Foot

    Setting: Our client and her fiancé sought our help about six months after they each began the residency phase of their education. They had made it through the first two rigorous phases with a modest student loan amount ($180K). They were used to living lean, but admittedly had some pent-up spending desires as they watched their non-medical student peers begin to buy homes and nice cars.   Read More...

  • Case Study: Thinking of Getting Married? Maintaining Your Financial Independence

    Setting: Our client came to us in her late twenties as a newly engaged young woman. She had a built a comfortable investment base for her age, was enjoying success in her career, and had managed her finances to date with the help of a robo-advisor. She correctly assessed that her financial planning opportunities were about to get more complex as she looked ahead to marriage and children.   Read More...

  • Case Study: Software Company Takes on Strategic Investor - Planning for Liquidity Events

    Setting: Our involvement with this partial sale (~$40 million) of a software company began by building a defined contribution plan which improved their company’s talent recruitment and provided a tax optimized investment opportunity for both the business owners and employees. The positive result of these efforts resulted in the owners seeking personal finance integration and business planning as they contemplated a partial liquidity event by taking on a strategic investor. How Did We Help? As t...  Read More...

  • Downside Pain vs. Upside Gain

    We are wrapping up tax meetings with our clients which are used as working sessions in advance of their tax filing. Collaborating closely with clients and their tax preparers to determine near-term and long-term tax efficiencies, maintaining an updated financial plan and executing a disciplined investment management process are central to financial goal achievement. We believe maximizing retirement investment opportunities and optimizing clients’ tax liabilities is much more impactful than tryin...  Read More...

  • A Retirement Income Roadmap for Women

    More women are working and taking charge of their own retirement planning than ever before. What does retirement mean to you? Do you dream of traveling?   Read More...

  • Market Volatility - Calm is Contagious

    We presume you would be hard-pressed to find anyone in your circles that isn’t aware of the recent global market volatility, so, we thought we would reach out to provide some perspective. While calm is contagious, so too can be concern. Bottom line up-front; we (and you) should fully expect these “corrections” (down 10%) and, occasionally, “bear markets” (down 20%) to occur as part of economic cycles.   Read More...

  • Predictions and Advice, Rate Hikes and Gifting

    Predictions and Advice As 2015 draws to a close, we’d like to take this opportunity to first say that we appreciate our relationship with you, our clients and community members. We wish you a very peaceful and prosperous 2016. For many, year-end will provide an opportunity to reflect, and to make plans for the year ahead, financially and otherwise.   Read More...

  • Independent Women - A Concise List of Reminders

    Women and Money - Taking Charge of your Financial Future If you are like many women, most activities get performed under the "mulit-tasking" umbrella.  In this age of partial attention, at-a-glance bullet points are the often the fastest and most comprehensible way to receive key bits of information.  To that end, a few simple reminders follow to help you stay on track financially.  Reasons for Optimism Women represent almost half the workforce The percentage of household income e...  Read More...

  • Technological Changes and Their Possible Economic Impacts

    When you look at recent history, the changes in our daily lives have been breathtaking. While, this of course, is not new news, it is indeed remarkable. Nine years ago, the iPhone hadn’t been invented.   Read More...

  • Global Market Volatility, Exchange Traded Funds and Hedge Funds

    Global Market Volatility, Exchange Traded Funds and Hedge Funds Global Market Volatility: We thought it would be appropriate to book-end our August 22nd market piece sent to clients with a follow-up message after ‘the week that was.’ The trading range of most asset classes was much narrower on Friday (Aug 28th) than has been true over the last week. It goes without saying that the down-side volatility we observed in the earlier part of the week (and last Friday, August 21st) was long overdue. Th...  Read More...

  • Moving Forward Financially Afer the Loss of a Spouse

    The loss of a spouse can be a devastating, life-changing event. Due to longer life expectancies, women are more likely to face this situation. According to the U.S.   Read More...

  • Women and Retirement Income

    Women face special challenges when planning for retirement. Because their careers are often interrupted to care for children or elderly parents, women may spend less time in the workforce and earn less money than men in the same age group. As a result, their retirement plan balances, Social Security benefits, and pension benefits are often lower.   Read More...

  • Cyber Awareness Vigilance and "Frame of Reference Risk"

    Cyber Awareness Vigilance and "Frame of Reference" Risk It seems like a week doesn’t pass without a high profile security breach of some sort, portending challenges ahead for all institutions, and even more so for those that don’t maintain a continually renewed commitment to protect against cyber-criminals. The most recent and prominent example is the New York Times article on February 14th about bank hackers that stole millions via malware (http://www.nytimes.com/2015/02/15/world/bank-hackers-s...  Read More...

  • Wurstfest Veteran’s and Wounded Warrior Appreciation Event and Market Losses

    Wurstfest Veteran’s and Wounded Warrior Appreciation Event Our firm has been instrumental in organizing and contributing to a program during Wurstfest in New Braunfels, an annual German festival which has become a Texas institution, to raise awareness (and capital) for wounded warriors through two 501 (c)(3) organizations with whom we are involved. Because of the growth in interest and participation, the event has moved to a larger venue on the grounds of Wurstfest. Furthermore, the planners are...  Read More...

  • Retirement's Social Experiment and Summertime Market Thoughts

    For those who have engaged with our firm in the last couple of years, it’s likely we have exchanged ideas about how the concept of retirement, as it was defined in the post-World War II era, is experiencing its own make-over. In the following text, we will walk through some of our thoughts on the topic, and then separately try to get in front of some of the market worries that may be catalysts for the inevitable market volatility that we are likely to see in the year ahead. With deference to Mit...  Read More...

  • Our Perspective on the Crisis in the Ukraine

    As is customary, we try to share our thoughts on world events that bubble into focus (recall we wrote a piece on Cyprus and on the bankruptcy in Detroit). Having served in war torn areas of the globe, our hearts and prayers go out to the people of Ukraine, as they undergo both an internal political crisis and what appears to be (or have been) military intervention from Russia. For people of a certain age (including my father), the current events, with tanks rolling across the Russian border into...  Read More...

  • Our Thoughts on the Recent Market Correction and the new U.S. Treasury "Floaters"

    On Monday, January 20th the U.S. markets decreased roughly 1% in value, and European and Asian indices were down by similar amounts the following day. The S&P 500, which as a reminder is regarded by most as the best metric of large company U.S.   Read More...

  • 2013 Market Returns and Your Portfolio

    Despite all the uncertainties that we faced in 2013 (the government shutdown, Boston bombings, the ongoing Syrian uprisings, debt ceiling debates, National Security Agency (NSA) revelations, super‐storm Sandy, nuclear standoff with Iran) and predictions of a poor investing year, the U.S. stock market moved to record highs on the final trading day of the year. Investors who got out of U.S.   Read More...

  • Investor Returns vs. Market Returns

    A healthy dose of skepticism toward the media and its reporting on financial matters and markets is a common theme in our thought pieces. A quick analysis of the return data routinely provided by the financial media shows how misleading this reporting can be. In fact, investor returns are almost guaranteed to be different from whatever the markets and the funds you've invested in have reported.   Read More...

  • Market Glitches and Tax Efficient Retirement

    As we have been thinking through and putting the finishing edits on our periodic thought piece, the news of the NASDAQ market exchange’s halt in trading for 3 hours starting at 12:14 pm yesterday was unfolding. The industry, and NASDAQ in particular, has been grappling with the vulnerabilities of an increasingly digital world, and the incident is another black eye for the NASDAQ market, which you may recall botched the initial public offering of Facebook (ironically one of the companies that has...  Read More...

  • The Role of Bonds in Client Portfolios

    The Role of Bonds in Client Portfolios Given the recent volatility in the bond markets, we thought it would be an appropriate time to send out a message on what role bonds play in your portfolio. We welcome your feedback and hope that you have been enjoying your summer so far, in spite of the recent market volatility. Bond prices go up when interest rates go down, and rates have been doing just that since the Reagan Administration.   Read More...

  • Our Perspective on the Market Rally

      Notwithstanding the market volatility and correction which were evident yesterday, you have likely observed that equity “bulls” are excited about the markets’ present positive run. The Dow Jones Industrial Average and the S&P 500 index have each reached record highs so far this year, and European shares (as measured by the Stoxx Europe 600 index) have reached their highest levels in almost five years. In spite of this rally, we continue to recommend to our investors to stay the course...  Read More...

  • Pot of Gold All at Once or Turning it Into Lifetime Payments?

    An estimated 10,000 people are retiring every day, and this unprecedented surge of new retirees is expected to last for the next 17 years. Many, perhaps most, will roll their retirement plan assets into an IRA account, and that money--plus Social Security and any taxable retirement accounts they may have--will provide their living expenses for the rest of their lives. This is different from retirees in the past, who often received regular payments from their defined benefit plans--their equivale...  Read More...

  • Should I Pay Off My Mortgage or Invest?

    Should I Pay Off My Mortgage or Invest? Given the current environment of historically low interest rates, we have received a lot of questions about whether to pay off one’s mortgage or consider refinancing. We actively track the mortgage market vis-à-vis our client records, and reach out to them when we see potential savings that a re-finance might bring.   Read More...

  • Market Rules to Remember

    As you know, at Pauley Financial we don't subscribe to the sensationalism of the financial press or prognostications about future market returns. We happened upon two of Bob Farrell's rules recently that reinforce some of the rationale behind this philosophy and approach. These rules may help to rationalize volatile sentiments that are increasingly rampant in investor behavior.  Additionally, new tax planning opportunities await us as "Obamacare" moves ahead (new Medicare tax).   Read More...

  • The Great May Swoon

    Bond Anamolies At Pauley Financial, we believe clients’ portfolios should be customized to match one’s risk tolerance as closely as possible, and should take into account one’s years until retirement. Introducing bond exposure to portfolios usually not only can help reduce risk, but also can diversify one’s exposure geographically. As a firm that is rooted in military service, we believe our role is to ensure our clients are disciplined about maintaining their target exposures to U.S.   Read More...

  • Prediction Addiction

    Prediction Addiction A COSTLY APPROACH Earlier this year, Harry S. Dent Jr., advisor and author of The Great Depression Ahead, predicted stocks would start to plummet in June. He noted that personal spending is 70% of the economy and that, over time, as baby boomers become elderly, their personal spending will dive.   Read More...

  • "Client Last" Attitude

    "Client Last" Attitude I founded Pauley Financial over 16 years ago because of my passion for helping and serving others. I decided early on that the FeeOnly™ approach of aligning our firm’s interests with that of our clients was best suited for the my personality and, more importantly, best for our clients. We remain steadfast in our belief in this approach, as it ensures that no other financial incentive is provided by any institution to our firm - that we do not receive commissions on the act...  Read More...

  • A Focus on IRAs

    Focus on IRAs Individual Retirement Arrangement is the technical IRS term for what most investors have come to call Individual Retirement Accounts or (“IRAs”). [Note: this article does not address SEP-IRAs – simplified retirement plans for the self-employed.] As the tax deadline of April 17th for 2011’s calendar year contributions approaches, we are writing to ask our clients and friends to focus on this annual opportunity before it passes again. Below are some lesser known attributes and compon...  Read More...