TPW Trending Today

Investing like the best is oftentimes simple, but not necessarily easy. It’s important to be prudent and disciplined, and one way to do this is to try to understand and embrace the mindset, outlook, wealth-building, and wealth-protecting philosophies of Warren Buffett.

As the Chairman of the Board for Berkshire Hathaway (NYSE: BRK), Buffett pens his Chairman’s Letter every year, highlighting BRK’s annual shareholder report. As has been the case since 1965, Berkshire’s 2022 annual report was released late last month, and scrutinizing Buffett’s Chairman’s Letter found within it continues to be a tradition for investors around the world. Considered a must-read, Buffett’s message this year was particularly anticipated, given today’s extremely unsettled and ever-changing economic and investing landscape.

While many believe that adhering to Buffett’s philosophies and principles is akin to investing like the best, the 92-year-old has certainly not been immune to criticism. Considered too conservative, too suspicious of technological advances, and too out of touch with modern markets, Buffett has his share of detractors, but his performance track record since taking over management and control of Berkshire Hathaway in 1965 is undeniable.

The stock market, as measured by the S&P 500, has grown +9.9% annually from 1965-2022. Berkshire Hathaway’s growth over the same time period? +19.8%.

Given this penchant for outperformance, it should come as no surprise that Buffett’s views and thinking are important to those who are interested in investing like the best. Key snippets from Buffett’s most recent letter, evincing his directness, common sense, and wisdom, are articulated below.

• The weeds wither away in significance as the flowers bloom.
  
  Let your winners run – as your winning investments become bigger, the losers become less significant.

• It is crucial to understand that stocks often trade at truly foolish prices, both high and low.
  
  Human beings, and investors, are emotional by nature. They oftentimes do the opposite of what they should, like buying high and selling low, which can drive stock prices artificially higher or lower.

• We are understanding about business mistakes; our tolerance for personal misconduct is zero.
  
  Investing like the best doesn’t mean you won’t make occasional business mistakes, those are expected. However, bad behavior is not tolerated.

• ‘Bold imaginative accounting,’ as a CEO once described his deception to me, has become one of the shames of capitalism.
  
  Buffett is skeptical of how CEOs use accounting gimmicks to help their companies achieve their short-term earnings goals. He also holds disdain for Wall Street analysts’ who provide quarterly earnings forecasts, as the threat of having to report “worse-than-expected earnings” can incentivize bad behavior.

Additionally, and especially telling in light of the new 1% excise tax on repurchases of corporate stock that was enacted last summer as part of the Inflation Reduction Act of 2022 (“IRA”), were Buffett’s comments on BRK company stock repurchases:

Share buybacks have become a popular strategy for companies who have cash and no other intelligent way to deploy it. In lay terms, buying back their own stock on the open market helps to boost demand and increase the stock price. Also, buybacks help to improve key metrics like earnings per share (EPS), helping the stock to be more attractive to prospective investors. This is good for CEOs, and also helps to maximize value for shareholders.

At Towerpoint Wealth it seems evident to us that investing like the best and utilizing an approach like Warren Buffet’s requires patience, discipline, and a longer-term perspective. With those thoughts in mind, we encourage each of our clients, friends, and colleagues to strongly consider one of Buffett’s closing quotes in his 2022 Chairman’s Letter.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients save and invest for retirement while minimizing taxes.

We would like to congratulate our Partner, Wealth Advisor, Jonathan LaTurner, and his wife Katie McDonald, PHR, on the birth of their first child, Thompson William LaTurner, on 2/15/23!

Welcome to the Towerpoint Wealth family, Thompson – we can’t wait to meet you!

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

---

What else is happening with the Towerpoint Wealth family?

The markets, politics, and economy are uncontrollable and unpredictable. However, income taxes and investing costs, while unpleasant, are unfortunately omnipresent. As you work to build and protect your net worth, investment expenses are unavoidable, and owning investments inevitably means you will be subject to paying income taxes as well.

The bad news? These two “necessary evils” are inevitable along your journey to growing and protecting your net worth. The good news? With intelligent and proactive planning, we DO have some control over reducing and minimizing both!

Click the Minimizing the Necessary Evils of Building Net Worth thumbnail below to learn more about specific strategies to reduce the drag on your nest egg and investment portfolio, allowing you to efficiently build and protect your wealth and net worth.

The More You Know About TAXES

As the 2023 tax season kicks into high gear, we would like to give you a few tips, debunk some myths, and get you some high-quality tax minimization strategies!

Click below to watch the first installment (focusing on tax withholding) of The More You Know About TAXES, a short yet impactful video series we have produced and designed to help make your tax season less stressful and hopefully save you some money!

---

Have questions or concerns about filing your 2022 tax return? 
We welcome connecting with you and are happy to help! 
Click below to begin a dialogue with Steve Pitchford, Director of Tax and Financial Planning.

Useful and interesting content we’ve read over the past two weeks:

World’s Largest Four-Day Work Week Trial Finds Few Are Going Back
Bloomberg – 2.28.2023

The largest-ever trial of the four-day work week found that most UK companies participating are not returning to the five-day standard, and a third are ready to make that change permanent.

The study involved 61 organizations and about 2,900 workers who voluntarily adopted truncated work weeks from June to December 2022. Only three organizations decided to the pause the experiment, and two are still considering shorter hours, data released Tuesday showed. The rest were convinced by revenue gains, drops in turnover and lower levels of worker burnout that four is the new five when it comes to work days.

---

Biden Bucks Liberals and Tells Democrats to Get Tough on Crime
NBC News – 3.4.2023

President Joe Biden’s decision last week on a local crime law sends a national message to fellow Democrats about how he believes they should address Republican criticism of the nation’s rising crime rates.

Democrats have focused predominantly on police reform since the George Floyd protests reignited a national debate over race and law enforcement three years ago. But rising violent crime rates and growing perceptions of unease in major cities have prompted a chorus of party strategists and officials to call for a tougher approach to counter Republican attacks.

---

Effort to Ban Stock Trading Among Executive Branch Officials Renewed
The Wall Street Journal – 3.5.2023

Sen. Josh Hawley (R., Mo.) is expected to introduce legislation Monday that would ban senior executive branch officials from owning or trading individual stocks, a push to toughen restrictions on conflicts of interest in the federal government.

Mr. Hawley’s bill is the latest fallout from a Wall Street Journal series that identified a sweeping pattern of financial conflicts across the executive branch, including finding that more than 2,600 officials invested in companies overseen by their agencies.

---

If you want to feel confident in your retirement planning decisions, reach out to us and schedule a 20-minute “Ask Anything” call – we are confident it will be time well spent!

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

---

At Towerpoint Wealth, we help you remove the hassle of properly coordinating all of your financial affairs, so you can live a happier life and enjoy retirement. If you are worried about how the 2024 election could affect your financial future, we welcome talking further with you about your personal situation.

Worried about whether you have enough set aside to retire? Check out our “Retiring with 2 Million Dollars” guide to learn five specific steps you can take immediately to work to grow your net worth!

Joseph Eschleman
Certified Investment Management Analyst, CIMA^®

Jonathan W. LaTurner
Wealth Advisor

Steve Pitchford
CPA, Certified Financial Planner^®

Lori A. Heppner
Director of Operations

Nathan P. Billigmeier
Director of Research and Analytics

Michelle Venezia
Client Service Specialist

Luis Barrera
Marketing Specialist

 Megan M. Miller, EA
Associate Wealth Advisor

 Connect with Towerpoint Wealth, your Sacramento Financial Advisor, on any of these platforms, and send us a message to share your preferred charity.

We will happily donate $10 to it!

Follow TPW on LinkedIn
Follow TPW on YouTube
Follow TPW on Facebook
Follow TPW on Instagram
Follow TPW on X
Follow TPW Podcast

If you’ve been to a Sacramento Kings home game this year at the Golden1 Center in downtown Sacramento during a game where the team emerges victorious, then you’ve certainly heard (and perhaps participated in) the new spirited and energetic crowd chant: “LIGHT THE BEAM! LIGHT THE BEAM!”

Anointed as the “Beam Team” earlier this year, the Kings franchise is clearly on the upswing, trending strongly towards ending their league-long 16-year playoff drought and looking to land a spot in the NBA playoffs for the first time since 2006. Head coach Mike Brown and GM Monte McNair have assembled a very competitive squad that is seeing this playoff goal become more and more attainable with every win the Beam Team achieves, as the Kings have assembled a diverse squad of both veteran leadership and youthful energy and talent.

As the Beam (yes, we’ve decided to capitalize it) has become a point of pride and unity for our Sacramento community, it also is a metaphor for the state of downtown Sacramento in 2023. As Mayor Darrell Steinberg said at Tuesday’s twenty-sixth annual State of Downtown Sacramento speech:

The Kings rise and the shining of the beam is not a matter of dumb luck.  And the truth is that the Kings rise was not a miracle brought on by a purple light, it was the result of careful planning, preparation, leadership, talent, and heart. Just like the downtown partnership and the people who have seen our downtown through its great rise, its most difficult times, and now get to be part of its inspiring comeback.

We’ve made a lot of progress: After ranking as the fifth most miserable city in America in 2012 according to Forbes, Sacramento in 2022 was ranked as NUMBER ONE California city to live in – what a turnaround!

The same trajectory is projected for the economy of Sacramento. Our Associate Wealth Advisor, Megan Miller, was one of almost 1,000 attendees at the State of Downtown Sacramento forum on Tuesday, held at the new SAFE Credit Union Convention Center, and afterwards she confirmed our opinion here at Towerpoint Wealth about downtown Sacramento: While we face big challenges, we are also firmly back “on the upswing” just like the Kings, and look forward to the continued unlocking of economic growth and expansion (and great food and entertainment!) that downtown Sacramento offers!

Understanding there are a myriad of different themes, topics, challenges, successes, and issues when it comes to the economy of Sacramento, below you will find a brief executive summary of the many positive catalysts creating Downtown Sacramento’s economic momentum and growth:

• This really cool list of current downtown development projects is growing quickly!
• Sacramento is growing its identity as a city of festivals:
  • 44,000 people stayed overnight in Sacramento, and more than 160,000 people attended the West Coast’s Biggest Rock Festival, Aftershock, in 2022, with an estimated economic impact of $30 million
  • Sacramento’s new country music festival, Golden Sky, drew 50,000 attendees last year, with an estimated economic impact of $12 million
  • The Sol Blume R&B festival drew 40,000 people to Discovery Park in 2022, with an estimated economic impact of $10 million
• The Sacramento Midtown Association is bringing back our beloved Second Saturday Art Walk beginning this May – hooray!
• Sacramento’s hotel occupancy is at 99% of pre-pandemic levels.
  • 684 new hotel rooms have been added over the past few years, including 179 at the new AC Marriott at 7th & I Street.
  • Mayor Steinberg wants to add another 800 rooms in the next five years (perhaps the NBA All-Star Game will finally land here in Sacramento!).
• 1,089 new housing units have been built in the central city over the past four years
  • 3,000 more units are currently under construction
  • The NE corner of 10th and J Street, which has sat blighted for the past 15 years, was just sold to a housing developer planning to build 250 units
  • The State of CA has made three state office buildings on Capitol Mall available for conversion to housing, with the prospect of a mixed-use urban village and up to 1,000 housing units looking more like a reality.
• Measure N was approved in November, allowing for an expanded use of “hotel tax” revenue to be used for economic development projects to create local jobs, visitor-serving facilities that promote tourism, economic development, and other activities that bolster the local economy, and theatre and arts venues.
• Revitalizing Old Sacramento and the Sacramento River waterfront are garnering more attention and capital
  • A near $30 million waterfront makeover is back in the works, aimed at opening up the public market buildings with glass sides, creating a two-story platform and walking bridge to the embarcadero, and installing a new children’s play area in waterfront park
  • CA State Parks is seeking input on design guidelines for a new 250 room hotel in Old Sac.
• SKK Development has asked the city for a loan to open a new Whole Foods midtown location at 16th and J Street, at the former Lucca Restaurant space, with 198 units of housing above it

This list is a lengthy and an exciting one, and by no means is it exhaustive or static. Here at Towerpoint Wealth, we expect that it will continue to evolve as our city does. The economy of Sacramento is on a roll, and we expect it to continue to grow and expand as the dynamism of downtown Sacramento follows suit!

Want to know more about the state of the economy of Sacramento and of downtown Sacramento overall? Check out the highlight video and the full 2022 Annual Report found below!

The Downtown Sacramento Partnership Annual Report measures the progress of Downtown Sacramento Partnership key programs and tracks the state of office, residential and retail market development activity in the urban core.

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients save and invest for retirement while minimizing taxes.

The disruption. The grind. The time. The energy. The chaos!

Sometimes it feels like it takes more brains and effort to complete your taxes than it does to earn the income!

Are you a CPA, an EA, an attorney, a real estate advisor, or industry professional who serves clients and their income tax needs? If so, mark your calendar for May 4, as we look forward to celebrating the end of tax season with you at our first annual spring industry mixer, held at Revolution Winery & Kitchen!

If you want to feel confident in your retirement planning decisions, reach out to us and schedule a 20-minute “Ask Anything” call – we are confident it will be time well spent!

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

What else is happening with the Towerpoint Wealth family?

Today marks the one year anniversary of Russia invading Ukraine. The brutality and inhumanity that have defined the Russian campaign continues to be revolting and disgusting, reconciliation and a cease-fire seems obscure at best, and it remains extremely difficult to accurately predict and assess the political and economic implications that are still developing.

Many questions remain, with two at the forefront of our mind: Is peace a tangible possibility, and will justice ever be served? Additionally, what do peace, and justice, actually look like? Regardless of what these answers may be, securing peace and finding some kind of justice not only will teach Russia a lesson, but also to warn those in the future who might be tempted to make war crimes part of their military strategy. All of us at Towerpoint Wealth, while pragmatic about the situation, also hold out hope and faith that this conflict…this war…ends sooner rather than later.

We also believe that the unique economic issues and financial and investment themes and ideals that this war has created need to be addressed, and much of what we discussed in our initial March, 2022 message to you, our clients, still rings true today, and we encourage you to click the image below to watch what our President, Joseph Eschleman, originally had to say.

A Schedule D form is what most people use to report capital gains and losses that result from the sale of capital assets, including property you own and use for personal or investment purposes.

The capital assets you are most likely to report on Schedule D are the stocks, bonds, and real estate you sell in a particular tax year.

These gains and losses are categorized as either short-term (the asset was held for less than 12 months) or long-term (held 12 months or more).

Please reference Page 36 of the below 2022 Tax Form Guide from Charles Schwab for additional information on how to complete your Schedule D (and Form 8949, if necessary).

Additionally, and as mentioned two weeks ago, Schwab’s Tax Resources page has a plethora of useful information to help you make tax time a little smoother, plus important tax law changes that may affect your investment and tax planning decisions.

---

Have questions or concerns about filing your 2022 tax return? 
We welcome connecting with you and are happy to help! 
Click below to begin a dialogue with Steve Pitchford, Director of Tax and Financial Planning.

Useful and interesting content we’ve read over the past two weeks:

‘The Country is Watching’: California Homeless Crisis Looms as Gov. Newsom Eyes Political Future

KHN – 2.9.2023

Driving through the industrial outskirts of Sacramento, a stretch of warehouses, wholesale suppliers, truck centers, and auto repair shops northeast of downtown, it’s hard to square California’s $18 billion investment in homeless services with the roadside misery.

Tents and tarps, run-down RVs, and rusted boats repurposed as shelter line one side of the main thoroughfare. More tents and plywood lean-tos hug the freeway underpasses that crisscross Roseville Road, and spill into the nearby neighborhoods and creek beds.

Boomer Dads Are Driving Real Estate Agents Nuts!

Curbed – 2.10.2023

Last spring at a townhouse showing in Bedford-Stuyvesant, the agent David Harris watched his client, a married millennial with a kid, bounce from room to room before taking a seat on a staged sofa — a gesture Harris had come to regard as a cue that a client feels at home and is about to make an offer.

He was right. His client liked the place. Harris suggested they go $50,000 over asking, or $1.7 million; he anticipated a bidding war. His client agreed. But first, the client had to make one phone call. Harris watched as he went outside and started pacing. “And then he takes the cigarette out,” Harris said. “It was his father.”

‘Lake Tahoe Has a People Problem’: How a Resort Town Became Unlivable

The Guardian – 2.12.2023 

Late last year, Lake Tahoe earned a spot on an exclusive travel guide. But the mountain destination, famed for its cobalt blue waters and Olympic-quality ski resorts, wasn’t there for the reason you’d think.

Fodor’s “No list” highlighted beloved getaways that needed a break, and Tahoe was up there with the neediest. Citing a pandemic influx of remote workers, second home buyers, traffic gridlock and packed beaches, the guide concluded “Lake Tahoe has a people problem”.

For fast-growing startups, an IPO is often the ultimate goal, a milestone after which the company has officially “made it” — but how is the class of 2020/21 getting on?

Robinhood, Coinbase, Airbnb and many other high-profile companies were among those to go public in the last 3 years, cashing in on frothy markets. However, since then, many have failed to live up to lofty expectations.

* Thanks to Chartr for the infographic and commentary.

---

---

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

---

At Towerpoint Wealth, we help you remove the hassle of properly coordinating all of your financial affairs, so you can live a happier life and enjoy retirement. If you are worried about how the 2024 election could affect your financial future, we welcome talking further with you about your personal situation.

Worried about whether you have enough set aside to retire? Check out our “Retiring with 2 Million Dollars” guide to learn five specific steps you can take immediately to work to grow your net worth!

Joseph Eschleman
Certified Investment Management Analyst, CIMA^®

Jonathan W. LaTurner
Wealth Advisor

Steve Pitchford
CPA, Certified Financial Planner^®

Lori A. Heppner
Director of Operations

Nathan P. Billigmeier
Director of Research and Analytics

Michelle Venezia
Client Service Specialist

Luis Barrera
Marketing Specialist

 Megan M. Miller, EA
Associate Wealth Advisor

 Connect with Towerpoint Wealth, your Sacramento Financial Advisor, on any of these platforms, and send us a message to share your preferred charity.

We will happily donate $10 to it!

Follow TPW on LinkedIn
Follow TPW on YouTube
Follow TPW on Facebook
Follow TPW on Instagram
Follow TPW on X
Follow TPW Podcast

Why is talking about money so hard?

Be it with your spouse, partner, children, parents, friends, or colleagues, having conversations and talking about money can be stressful, and oftentimes loaded with emotion. We have been taught that money and finances are private, and that talking about money is impolite, even uncouth. Some facts from recent surveys from financial and market research firms, as quoted in the Atlantic: 

• In 34% of cohabiting couples, one or both partners couldn’t correctly identify how much money the other makes

• Only 17% of parents with an income above $100,000 a year had told (or planned to tell) their children how much they earn or their net worth

People seem to be more comfortable talking with friends about marital discord, mental health, addiction, race, sex, and politics than money!

More often than not, when we think about talking about money, we channel deep feelings and vulnerabilities. Moreover, the cultural and societal attitudes around money can contribute to the discomfort and reluctance to have conversations about it. For example, some cultures emphasize the importance of being financially secure and self-sufficient, while others discourage discussion of personal finances.

Another reason why talking about money can be hard is that it can be tied to emotions and personal values. Money can represent security, independence, status, or even love and affection. When someone is asked to disclose their financial situation, they may feel like they are being judged or evaluated based on their wealth, income, or spending habits. This can lead to feelings of insecurity or embarrassment and can make it challenging to have an open and honest conversation about money.

Furthermore, money can also be a source of conflict in relationships. Differences in financial goals, spending habits, or attitudes towards saving and investing can create tension between partners, family members, or friends. Discussing money can bring up sensitive and uncomfortable topics, such as disagreements about budgets, spending priorities, or saving for the future. This can make it hard to have productive and constructive conversations about money.

Click the image below for an excellent set of resources from Capital Group, as their report talks about talking about money!

Talking about money can be challenging because of the cultural and emotional factors that are associated with it. However, it is important to have open and honest conversations about finances in order to achieve financial stability, security, and independence. Overcoming the taboo and discomfort associated with discussing money can lead to stronger relationships, better financial decision-making, and increased peace of mind.

As Carl Richards said: “I have a powerful exercise to help you get started. It’s a technique I’ve carefully crafted over thousands of hours of working as a financial adviser. It’s called ‘Just Start.’”

Here’s how it works: Grab the person you want to talk about money. And…. just start! That’s it.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients save and invest for retirement while minimizing taxes.

While gold underperformed other asset classes in 2022 due to a strong US dollar, recession fears on the horizon this year are causing some to be more optimistic about the outlook for gold in 2023.

One of the oldest investments out there, gold is considered a “safe haven” from inflation and geopolitical conflict, and massive government stimulus programs and money-printing.

Click the image below to read our white paper on gold, and message us with any thoughts or questions you may have!

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

---

What else is happening with the Towerpoint Wealth family?

Just last week the Towerpoint Wealth team headed to Folsom for our quarterly teambuilding day.

We had the pleasure of learning CPR, as well as the importance of knowing how to provide first aid in case of an emergency. Our half-day of training was provided by the Rescue Training Institute, and it was awesome!

We all left feeling much better prepared, and with a sense of security knowing we can now help and render first aid. Watch this short video recap of our day!

The 2022 tax season is no longer “right around the corner” – it’s now upon us! And part of this right of passage is the inevitable and time-consuming process of tracking down your various tax forms and other pieces of tax information.

If you are a Towerpoint Wealth client, then you are also a client of Charles Schwab, as we have chosen to partner with Schwab to provide custody of our client’s assets. And the inevitable question we receive from clients this time of year:

“When can I expect my 1099’s from Schwab?”

To better answer that question, click the image below to open and download a well-assembled fact sheet offering a timeline of the expected mail dates for the various Schwab 2022 income tax forms.

Additionally, Schwab’s Tax Resources page has a plethora of useful information to help you make tax time a little smoother, plus important tax law changes that may affect your investment and tax planning decisions.

---

Have questions or concerns about filing your 2022 tax return? 
We welcome connecting with you and are happy to help! 
Click below to begin a dialogue with Steve Pitchford, Director of Tax and Financial Planning.

Useful and interesting content we’ve read over the past two weeks:

Get Used to Face Recognition in Stadiums

Wired – 2.2.2023

While Madison Square Garden came under fire for using the technology, other venues are exploring their own uses of face algorithms, raising privacy concerns.

Calorie Restriction Slows Pace of Aging in Healthy Adults

Columbia School of Public Health – 2.9.2023

Eating less could help you live longer, a study found. Experts say slashing calorie intake slows the ageing process and reduces the risk of an early death.

Scientists think eating too many calories causes cells to age faster. It could even boost your health as much as quitting smoking. Researchers at Columbia University in New York looked at age-related damage on the DNA of 145 people after telling them to go on a diet for two years

More than 150 Years Later the Hunt for Gold is Still On in NorCal. This Year’s Winter Storms Bring a New Fever!

KCRA3 – 2.8.2023

The recent heavy rains in the Sacramento Valley created flooding in many of the streams and rivers. It also pushed gold from the mountains down into the valley, leading to a bit of a gold rush. It’s a modern day treasure hunt!

Our current I.O.U. – $1.4 trillion!

The latest budget from the US Treasury reveals that, in fiscal year 2022, the federal government collected nearly $5tn in revenue, with more than 50% of that coming from individual income taxes.

However, the US government spent even more, leading to a nearly $1.4tn deficit.

To make up the difference the US government does what everyone who overspends their budget does — they borrow. This then adds to the already enormous tab (AKA the national debt), which currently sits at the $31.4 trillion debt ceiling limit, a topic which received a fair amount of audience participation when brought up in Biden’s SOTU speech.

With a debt pile that big, the interest payments aren’t small. Indeed, last year the US government spent ~$480 billion on net interest payments!

* Thanks to Chartr for the infographic and commentary.

---

---

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

---

At Towerpoint Wealth, we help you remove the hassle of properly coordinating all of your financial affairs, so you can live a happier life and enjoy retirement. If you are worried about how the 2024 election could affect your financial future, we welcome talking further with you about your personal situation.

Worried about whether you have enough set aside to retire? Check out our “Retiring with 2 Million Dollars” guide to learn five specific steps you can take immediately to work to grow your net worth!

Joseph Eschleman
Certified Investment Management Analyst, CIMA^®

Jonathan W. LaTurner
Wealth Advisor

Steve Pitchford
CPA, Certified Financial Planner^®

Lori A. Heppner
Director of Operations

Nathan P. Billigmeier
Director of Research and Analytics

Michelle Venezia
Client Service Specialist

Luis Barrera
Marketing Specialist

 Megan M. Miller, EA
Associate Wealth Advisor

 Connect with Towerpoint Wealth, your Sacramento Financial Advisor, on any of these platforms, and send us a message to share your preferred charity.

We will happily donate $10 to it!

Follow TPW on LinkedIn
Follow TPW on YouTube
Follow TPW on Facebook
Follow TPW on Instagram
Follow TPW on X

“I’ve got a will, I’m in good shape.”

“I know why estate planning is important – I’ll get around to it soon.”

Have you been putting off your estate planning? Why not make 2023 the year you get your estate in order?

The thought of planning around your incapacity or death can oftentimes feel like too much to contemplate, and thinking about the meaning of intimidating legal jargon can quickly lead to distraction and procrastination. However, while rarely at the top of a “to-do” list, most investors recognize the importance of proper estate planning, even if deferring or flat-out avoiding the creation of a thoughtful and customized estate plan is a huge error we see made time and time again.

Having an estate plan is not just for those who are wealthy or who are in their later years, as there is an abundance of reasons why estate planning is important. And as you will see below, estate planning is more than just having a collection of documents that specify how you want your assets distributed upon incapacity or death.

It is important to have a foundational understanding and working knowledge about fundamental estate planning documents. Want to bone up? The 411 on Estate Planning read our financial guide.

If you have any assets to leave behind, and people important to you, then read on – here are six reasons why estate planning is important!

1. To protect your children.

If you die, or become incapacitated, would you prefer to have a probate court appoint a legal guardian for your children and other dependents, or would you prefer to dictate who takes care of them? Clearly a rhetorical question.

Without an estate plan, the court will be making these decisions. And if a minor child has no surviving family members, and a third party such as a family friend does not step up, the child could end up in foster care.

2. To protect YOU.

What happens if you are incapable or unable to manage your own legal or financial affairs? Unless you have a durable power of attorney (one component of a well-assembled estate plan) the probate courts will get involved. This is time consuming, expensive, and tedious. Can you be certain about the court’s capacity to truly act in your best interests?

Additionally, having a healthcare proxy grants someone permission to make healthcare decisions for you if you are incapable of making them for yourself. Don’t have one? Fingers crossed that someone the probate court appoints, or a random hospital staffer who is unfamiliar with you and your wishes, may be in charge of you and your health. Also known as a living will, it is extremely important to have an updated one in place. 

3. To protect against overpaying taxes.

While estate planning is oftentimes associated with the wealthy because of federal estate taxes, there is a much lower economic bar to being subject to state estate and inheritance taxes, depending on the state you live in.

The current federal estate tax exemption for 2023 is $12.92 million per individual. This is the amount you can pass on at your death and be exempt from federal estate and gift taxes. If you are a married couple, you can pass almost $26 million in assets tax free.

However, this exemption will revert back to $5 million (adjusted for inflation) per individual in 2026, and more people will be subject to it.

Additionally, while California surprisingly does not, 12 states (and the District of Columbia) do impose a state estate tax, and six states impose an inheritance tax, usually with much lower financial thresholds than the federal levels mentioned above. Massachusetts and Oregon tax estates valued at more than $1 million, and in Nebraska, heirs may pay inheritance tax on anything over $10,000 (depending on their relationship to the decedent).

4. To avoid probate and protect against wasting time and money.

Probate is the court-supervised legal process of authenticating, validating, and administrating your will (if there is one), assessing the value of your assets, paying off debts, and then distributing the remainder to whom the probate court deems to be your rightful heirs.

Sound complicated and tedious? Probate usually is, costing your family and loved ones time, stress, and money. However, the good news is that it is avoidable! Simply create a revocable trust and retitle your assets into its name during your lifetime, and any asset titled in the trust is a “probate-free” asset.

Click the image below to watch our educational video

5. To restrict your assets from and protect against the bad decisions of other family members.

Owning and holding assets in the name of your revocable trust is a good safety measure for not only you, but for your family as well. Establishing clauses on when and at what age beneficiaries may receive your assets is a powerful tool, as is dictating who will act as the trustee.

Additionally, with a well-assembled estate plan, you have the ability to ensure that your assets go to your children or grandchildren rather than to a spouse’s new partner or other family members, cutting out unwanted inheritors.

6. To protect your privacy.

Probate is public, and if your will goes to it, it becomes public record. Unless you don’t mind everyone knowing about your financial position, information, beneficiaries, and intent, you want to do everything to avoid it!

These six reasons for ensuring that you have a comprehensive and documented estate plan and strategy should eliminate any question of why estate planning is important. People always think they have enough time left for planning like this, until they don’t.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients save and invest for retirement while minimizing taxes.

We wrote about the many wealth-building opportunities and retirement planning considerations created with the passage of the brand-new Secure Act 2.0 in our December 23, 2022 Trending Today newsletter, which was very well-received by our clients, colleagues, and friends.

Understanding this interest and demand, we created a CliffsNotes version of what we feel to be the major and most important provisions of Secure Act 2.0.

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

What else is happening with the Towerpoint Wealth family?

Tax season is right around the corner. And with it will come the inevitable onslaught of forms, schedules, and statements. The centerpiece in this tax paperwork deluge are your 1099s.

What exactly is a Form 1099, why can they be so frustrating to process, and importantly, how do you manage the problem of receiving a late, amended one? Click below to read our white paper and find out!

---

Click below to begin a dialogue with Steve Pitchford, Director of Tax and Financial Planning.

Useful and interesting content we’ve read over the past two weeks:

Your Stuff is Actually Worse Now

Vox – 1.4.2023

Consumer goods have faced a dip in comparative quality. All manner of things we wear, plus kitchen appliances, personal tech devices, and construction tools, are among the objects that have been stunted by a concerted effort to simultaneously expedite the rate of production while making it more difficult to easily repair what we already own, experts say.

How an Alaskan ‘Puppy Bus’ Went Viral

NPR – 1.24.2023

Mo Thompson never planned to be a dog walker — and she definitely didn’t plan to go viral on TikTok. But recently, her videos of the pups she walks have racked up millions of views, especially the ones showcasing how she picks them up: the puppy bus.

“They’re getting on the bus and they get in their seat, and the Internet just lost it,” she said. “50 million views. That was wild.”

The Fiscal Arsonists

Noahpinion – 1.22.2023

I regret to inform you that once again, people are playing weird political games with the U.S. fiscal system.

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

Understanding that 2022 was the worst year ever for bonds, BlackRock’s chart below gives us optimism that 2023 will be better.

---

---

At Towerpoint Wealth, we help you remove the hassle of properly coordinating all of your financial affairs, so you can live a happier life and enjoy retirement. If you are worried about how the 2024 election could affect your financial future, we welcome talking further with you about your personal situation.

Worried about whether you have enough set aside to retire? Check out our “Retiring with 2 Million Dollars” guide to learn five specific steps you can take immediately to work to grow your net worth!

Joseph Eschleman
Certified Investment Management Analyst, CIMA^®

Jonathan W. LaTurner
Wealth Advisor

Steve Pitchford
CPA, Certified Financial Planner^®

Lori A. Heppner
Director of Operations

Nathan P. Billigmeier
Director of Research and Analytics

Michelle Venezia
Client Service Specialist

Luis Barrera
Marketing Specialist

 Megan M. Miller, EA
Associate Wealth Advisor

 Connect with Towerpoint Wealth, your Sacramento Financial Advisor, on any of these platforms, and send us a message to share your preferred charity.

We will happily donate $10 to it!

Follow TPW on LinkedIn
Follow TPW on YouTube
Follow TPW on Facebook
Follow TPW on Instagram
Follow TPW on X

As our clocks struck midnight this past Saturday, advancing from 2022 into 2023, many investors were eager to turn the page on what was a grinding, unsettled, and very difficult year in the financial markets. The only good news that can be taken from the 2022 investor experience? Fortunately, past performance is no guarantee of future results!

• Stocks, as represented by the S&P 500, finished 2022 down just shy of -20%:

• Bonds, typically the “Steady Eddies” of a properly diversified portfolio, did not fare much better, with 2022 being one of the worst years for bond returns in h The US Federal Reserve raised (“tightened”) its target short-term interest rate seven times to fight inflation, from 0.25% to 4.50%, representing an unprecedented pace of increases in such a short period of time for the 109-year-old central bank. 
  
  This interest rate tightening led to historically poor returns for bonds in 2022. Long-term US Treasuries were down -31.2%, and the Bloomberg US Aggregate Bond Index (the Agg), a broad measure of the overall bond market, had its worst year on record, down -13%.

Except for those holding cash, or commodities or energy stocks, 2022 was an awful year for the capital markets, one that virtually all of us would like to forget. This has caused many investors to ask – with 2022 as bad as it was, will 2023 be similar?

Below we will explore how recency bias can lead to poor and irrational financial and investment decision-making, oftentimes because investors FORGET that past performance is no guarantee of future results!

As we exit 2022, what were the major headlines for the year that drove this volatility?

Here at Towerpoint Wealth (TPW), we believe what’s past is prologue, and in light of the difficult year that investors had to endure in 2022, we are certain that many will exhibit recency bias when thinking about the future of their investments, portfolio, and overall status of their personal net worth. 

We also believe that doing so is a mistake.

Is it reasonable to believe that 2022’s poor market performance repeats itself in 2023? We believe no. Does having recency bias oftentimes lead to short-sighted and poor financial planning and investment decision making? We believe yes. And while historical patterns are important, and will always shape how investors feel about the future of their portfolios and investments, our core TPW wealth management philosophy leads us to counsel and work with our clients to be disciplined, to remain level-headed, to have a plan, and to objectively execute on it. 

The common investment disclaimer rings particularly true to us here at Towerpoint Wealth as we move into 2023: Past performance is no guarantee of future results.

Put more succinctly: We strongly encourage you to not fall prey to recency bias!

Lastly, there will always be the temptation to deviate from your plan, to not be disciplined, and to capitulate and sell to “stop the bleeding.” Much more often than not, these choices are strongly influenced by recency bias, and considered at the worst possible time – when prices are temporarily low. If you notice yourself feeling this way right now, we encourage you to reach out to us, and/or click the report found below.

Here’s to a productive and hopefully profitable 2023. We can’t wait to see what the new year has in store for all of us!

Have questions or concerns? Message us to share them,
and let us know you’re interested in learning more.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients save and invest for retirement while minimizing taxes.

Our TPW family continues to grow as we prepare for an exciting new year in 2023!

Just three short weeks ago, we happily welcomed our new Associate Wealth Advisor, Megan M. Miller, EA, to the firm.

We feel extremely fortunate to have this experienced, caring, talented, highly ethical, engaged, and organized professional joining the Towerpoint Wealth team, and encourage you to click the image below (and also hit that thumbs up button on YouTube!) to find out more about Megan. Hint – she’s awesome!

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

What else is happening with the Towerpoint Wealth family?

He is one of the most successful investors in the world for a reason – Warren Buffett is the epitome of value and disciplined investing!

Click the image above to watch an excellent video reel of Warren, riffing on his optimism about America, the importance of buying low (and also when people are scared), and why trying to predict the future is futile. A few excerpts:

“I bought stocks after 9/11.”  |  “I bought stocks in 1987 after the big crash and the fall.”  |  “The country’s not going to go away.”  |  “The country will grow in value over time.”  |  “Now… who gets it is another question!”  |  “It’s a terrible mistake to buy or sell stocks based on what you think business are going to do next month, even next year.”

Are you self-employed? Looking for opportunities to lower your taxable income while building personal net worth?

Traditional employees with W-2 income usually have an omnipresent income tax deduction available to them: Making traditional, pre-tax 401(k), 457, or 403(b) contributions.

Conversely, if you are self-employed, you are not an employee, and will not have a company-sponsored retirement plan to contribute to. However, all is certainly not lost if you are a sole proprietor, as there are a number of powerful self-employed retirement plan options available to you to reduce your taxable income while growing your portfolio and nest egg, arguably better than the traditional retirement plans offered to W-2 employees!

Click the image below to better understand the differences, advantages, and disadvantages of “crawling” via a

1.) SIMPLE-IRA, “walking” via a

2.) SEP-IRA, “running” via a

3.) OnePersonK or Solo 401(k), and “flying” via a

4.) personal defined benefit plan (DBP), as each type of account offers self-employed individuals a tremendous opportunity to save money on taxes and build wealth.

Are you self-employed, and would like to learn more about strategies still available to you to REDUCE your 2022 income taxes? Click below to begin a dialogue with Steve Pitchford, Director of Tax and Financial Planning.

Have more questions? Contact us or click below to message our Director of Tax and Financial Planning, Steve Pitchford, to request a complimentary analysis.

1. How SpaceX’s Starlink terminals first arrived in Ukraine

Quartz – 12.22.2022

Weeks before Russia invaded Ukraine, the US began scrambling to find satellite communications equipment that could keep the Ukrainian government connected to the rest of the world, new documents reveal.

Those efforts resulted in thousands of satellite-antenna terminals that connect to SpaceX’s Starlink broadband internet network being sent to Ukraine. They have proven vital to Ukraine’s war effort, but became a source of controversy for both SpaceX and the US over the service’s cost, and who is paying for it.

2. Lawmakers Say McCarthy Speaker Fight Portends Debt Ceiling Crisis

The Hill – 1.6.2023

The messy, drawn-out battle over electing the next Speaker is raising the danger of a debt limit crisis later this year, lawmakers in both parties warn.

Conservative rebels in the House are demanding that the next Speaker, whether it’s Rep. Kevin McCarthy (R-Calif.) or someone else, make a stand against passing a clean debt limit increase, which would set up a major fight with Senate Democrats and President Biden.

3. Freudenschaude (Freudenfreude)

Barry Ritholz, The Big Picture – 1.2.2023

As the new year begins, perhaps we would all be better off if we engaged in less Schadenfreude and more Freudenfreude. Let’s stop taking delight in other people’s misfortunes, and recognize that there but for the grace of God go I. Let’s recognize how rare and fragile success is, and revel in it – even if that means there is no increase in our bank accounts, our follower numbers, or our status among the neighbors.

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

For this edition of Trending Today, it’s not a chart, but a graphic.

“For success, attitude is equally important as ability.”

– Walter Scott

---

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

---

At Towerpoint Wealth, we help you remove the hassle of properly coordinating all of your financial affairs, so you can live a happier life and enjoy retirement. If you are worried about how the 2024 election could affect your financial future, we welcome talking further with you about your personal situation.

Worried about whether you have enough set aside to retire? Check out our “Retiring with 2 Million Dollars” guide to learn five specific steps you can take immediately to work to grow your net worth!

Joseph Eschleman
Certified Investment Management Analyst, CIMA^®

Jonathan W. LaTurner
Wealth Advisor

Steve Pitchford
CPA, Certified Financial Planner^®

Lori A. Heppner
Director of Operations

Nathan P. Billigmeier
Director of Research and Analytics

Michelle Venezia
Client Service Specialist

Luis Barrera
Marketing Specialist

 Megan M. Miller, EA
Associate Wealth Advisor

 Connect with Towerpoint Wealth, your Sacramento Financial Advisor, on any of these platforms, and send us a message to share your preferred charity.

We will happily donate $10 to it!

Follow TPW on LinkedIn
Follow TPW on YouTube
Follow TPW on Facebook
Follow TPW on Instagram
Follow TPW on X

Please click below for a special one minute holiday message from all of us at Towerpoint Wealth!

While we’re wishing for peace, and working to help you coordinate all of your financial affairs during this holiday season, US lawmakers are currently considering major tax reform—again. Put differently, we can’t help wondering about the Secure Act 2.0 status.

The massive $1.7 trillion year-end omnibus spending bill could be voted on in the coming days, funding our government through September of 2023. Putting the sheer size of this legislation in physical perspective (and love him or hate him), here is a Tweet from Senator Rand Paul (R-KY) standing next to a photo of the 4,155 page bill:

Putting aside the very real possibility that the legislation could add another $500 billion to the $31 trillion US national debt, what is of particular interest to our clients, and therefore to us, is the Secure Act 2.0 status, a major component of this omnibus spending bill.

Secure 2.0 is bipartisan retirement savings legislation that is part of the sweeping $1.7 trillion omnibus spending bill, and is a package of proposed tax reforms and changes to help Americans save and invest more for retirement.

Why do we care at Towerpoint Wealth about the Secure Act 2.0 status? Put simply, we believe that any changes in law that help Americans save and invest for retirement are positive changes!

While there are more than 100 provisions in the Secure 2.0, here are six important highlights regarding how the Secure Act 2.0 may help and benefit YOU, if passed:

1.  Increased age for retirement plan required minimum distributions (RMDs)

Currently, you must begin taking RMDs from your retirement accounts at age 72. Secure 2.0 would increase this RMD age to 73 as of January 1 of 2023, and to 75 over the next ten years.

2.  Bigger “catch up” contribution limits for people ages 60 to 63

Currently, you can put an extra $6,500 annually into your 401(k) once you hit age 50. Secure 2.0 would increase that limit to $10,000 (or 50% more than the regular catch up amount) starting in 2025 for retirement plan savers ages 60 to 63.

3.  Emergency savings accounts

One provision of Secure 2.0 would let employees withdraw up to $1,000/year from retirement accounts for emergency expenses without having to pay the typical 10% federal tax penalty for pre age-59 ½ withdrawals.

Companies could also let workers set up an emergency savings account through automatic payroll deductions, up to $2,500/year.

Contributions to this account would be treated like a Roth account – they’d be after-tax contributions and their growth would be tax free. This could create a Roth-type account for employees to save in their retirement accounts to meet emergency expenses in the future. Leftover money would stay in the account year-to-year and could be rolled over to a Roth IRA in the future.

4.  Matching contributions for student debt payments

Beginning in 2024, student loan payments would count as retirement contributions in workplace retirement plans such as 401(k), 403(b), 457(b), and SIMPLE-IRA accounts, and would qualify student debtors for a matching company contribution into their retirement account while paying their student loans.

5.  Saver’s Match

Workers with incomes up to $71,000 will receive a matching contribution from the government when they save inside of an IRA and/or workplace retirement plan.

In its current form, the Saver’s Credit allows individuals to receive up to 50 percent of their retirement savings contribution (capped at $2,000), in the form of a nonrefundable tax credit. Put differently, they receive the money back, up to $1,000, if they owe at least that much in taxes. If they don’t owe any taxes, they don’t receive the benefit. 

However, starting in 2027, instead of the nonrefundable tax credit (paid in cash as part of a tax refund), taxpayers will receive a federal matching contribution that must be deposited into their IRA or retirement plan.

6.  Broadening uses for “unspent” tax-free 529 college savings money

Tax and penalty-free rollovers of up to $35,000 from 529 college savings accounts to Roth IRAs would be allowed, as long as the 529 has been open for at least 15 years.

Like those big holiday meals, this new legislation sure is a lot to digest.

To be clear, the $1.7 trillion omnibus spending bill is very controversial, and may or may not be passed by Congress. However, if it does pass, President Biden is expected to sign it into law, making the Secure Act 2.0 status no longer a question, but reality.

Have questions or concerns? Message us to share them, and let us know you’re interested in learning more.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients save and invest for retirement while minimizing taxes.

What do falling off a bike, the movie Elf, baking calzone, BB guns and broken windows, homemade chocolate pie, why Santa Claus doesn’t “do” Mexico, and a 110 lb. rottweiler have in common? Click the thumbnail image below to find out!

We hope you get a kick out of our video, where the one consistent theme amongst everyone at TPW was spending time with family.

Don’t forget to have a good laugh at the TPW grinch at the 2:42 mark, and most importantly, we hope that you have a peaceful, warm, and joyous holiday season.

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

What else is happening with the Towerpoint Wealth family?

We were all very fortunate to spend some quality fun time together earlier this month, connecting for our 2022 Towerpoint Wealth holiday party!

Surrounded by our close friends and family, we gave thanks for another year of blessings and good fortune as we enjoyed an evening toasting our clients and our TPW family.

A special thank you to the wonderful team at Mulvaney’s B&L for the amazing food and great service, and to Patrick Mulvaney for his cameo appearance!

As you and your family continue with your holiday festivities, we want to express our gratitude for your confidence and trust in our planning, counsel, discipline, and service, and wish everyone a prosperous 2023 as well!

As 2023 quickly approaches, it is essential that your overall financial, investment, and retirement plan and strategy is evaluated for year-end tax saving and tax minimization opportunities. Personal income tax situations constantly change, and we believe that tax law changes in 2023 are inevitable – two baseline reasons that highlight the importance of proactive tax planning prior to December 31.

The 2022 Tax Planning Checklist found below, courtesy of our friends at BNY Mellon, does an excellent job of outlining potential tax minimization strategies to consider. Get on it before the ball drops in Times Square, and be sure you have done everything you can to reduce your obligation to Uncle Sam this year!

Have more questions? Contact us or click below to message our Director of Tax and Financial Planning, Steve Pitchford, to request a complimentary analysis.

Have you proactively considered end of year strategies to REDUCE your 2022 income taxes?

Useful and interesting content we’ve read over the past two weeks:

1. The Quiet Disappearance of the Safe Deposit Box

the Hustle – 12.2.2022

Once revered as the safest way to store physical valuables, safe deposit boxes are now being phased out by major banks. The move is already starting to backfire.

2. Surging Retail Theft Could Force WalMart to Close Stores and Raise Prices, CEO Doug McMillon Warns

NY Post – 12.7.2022 

A gesture towards closing stores is part of a retail industry effort to highlight dollar increases in “shrinkage” or inventory lost to thieves, although national data suggests shrinkage has not risen as a percentage of revenue in recent years.

3. Thousands Wait at US-Mexico Border, Awaiting Ruling on Title 42 Asylum Limits

Associated Press – 12.21.2022

Migrants along the U.S. border with Mexico crowded into shelters Wednesday as they waited for the Supreme Court to rule on whether and when to lift pandemic-era restrictions that have prevented many from seeking asylum.

The limits on border crossings had been set to expire Wednesday before conservative-leaning states sought the top court’s help to keep them in place. The Biden administration asked the court to lift the restrictions, but not before Christmas.

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

We all know that the US government (in this case, the US Federal Reserve) is aggressively increasing interest rates to combat the rampant inflation we have experienced throughout 2022, but this fast, and this quickly?

For borrowers, this is bad news. However, for savers and lenders (if you own bonds, or have a savings or money market account, this means you!), this is good news, as it generally means more money and interest income in your pocket.

Click here to send us a message

If you speak with someone who is concerned or
unsettled about their investments or advisor, we welcome talking with them.

Click here to introduce us

As always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth. We encourage you to reach out to us at any time (916-405-9140, info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an unsettled and complicated place, and we are here to help you properly plan for and make sense of it. 

– Joseph Eschleman, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

We enjoy social media, and are actively growing our online community!

Follow us on any of these platforms, message us there and let us know your favorite charity.
We will happily donate $10 to it!

Click HERE to follow TPW on LinkedIn
Click HERE to follow TPW on YouTube
Click HERE to follow TPW on Facebook
Click HERE to follow TPW on Instagram
Click HERE to follow TPW on X
Click HERE to follow TPW Podcast : A Wealth of Knowledge

You’ve probably noticed, the Sacramento housing market is falling asleep!

Understanding that real estate is an important part of the net worth of virtually all of our clients, and whether you are in the market to buy, sell, or just hold real estate, a combination of metrics right now has people in Sacramento almost expecting real estate prices to drop. This is certainly a different, weaker market than what it was seven short months ago.

In our own April 22, 2022 Trending Today newsletter, Will Homeowners Frown with Housing Prices Going Down?, we wrote of legitimate reasons for housing “bulls” to say that the “pandemic housing boom” had room to run. There was:

• Virtually no inventory!
• Demand remained strong.
• Buyer urgency remained high.

We also mentioned what the housing and real estate “bears” were warning us about – a hawkish US Federal Reserve, surging interest rates on 30-year mortgages, horrible affordability, and homebuilder stocks that were completely out-of-favor.

Yes, things are different now.

Sacramento home prices are declining, and interest rates are much higher. Both sales volume and sales prices are down. Will these declining prices continue? Is there a bottom yet to come in this housing cycle, as the image below would indicate?

This weakness is not just here in Sacramento, it is occurring throughout the Western US and virtually the entire country:

Migration is one factor that is not causing real estate prices to drop here in Sacramento, as we are still much more of an inbound destination, which provides some support for the value of Sacramento housing:

While nice to see, this migration data has not mitigated a slowdown in sales here in Sacramento, as November real estate sales were the worst in two decades for the Sacramento region, down close to 50% from last year’s November sales number.

In light of much of this bearish news about Sacramento housing, let’s keep some perspective – since a combination of reasons have caused real estate prices to drop, the market is much more attractive and affordable now if you are a buyer!

If you are looking for more perspective and perhaps a forecast of what to expect for 2023, this timely Realtor.com article has a lot to say!

Have questions or concerns? Message us to share them, and let us know you’re interested in learning more.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients build and protect their net worth

Our President, Joseph Eschleman, recently conducted an extremely productive financial, investment, and retirement comprehensive review meeting with two excellent and long-time TPW clients, Dan and Sue Britts.

Dan, Sue, it was great to see and connect with both of you – LOVE your big smiles, and glad to hear how enjoyable your recent trip to Ville de Sanary-sur-Mer was!!

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

What else is happening with the Towerpoint Wealth family?

Is a recession around the corner? Quite possibly…

Are you worried your portfolio will suffer further declines? Just about everyone is…

Do you wonder: How can I better protect my investments from the pain a US recession might bring?

Have you considered: Are there ways to take advantage of a recession if and when one occurs?

Well, we have some answers for you!

Click the image below to watch our newly-published educational video, “The Top 5 Ways to Recession-Proof Your Portfolio.”

Required Minimum Distributions

Dreading a Required Minimum Distribution, or RMD, from a retirement account? No doubt, it’s because of T-A-X-E-S.

While RMDs can be an unwanted by-product of contributing to and investing in retirement accounts such as 401(k)s, IRAs, 403(b)s, etc., there are impactful and proactive tax planning strategies that can materially lessen the tax sting of an RMD.

What are RMDs, and how should an individual plan for them within the context of a tax-efficient retirement strategy? Click below to learn more about RMDs, and specifically, three actionable RMD strategies worth evaluating to better keep Uncle Sam at bay.

Have you considered how to plan around taking your 2022 RMDs? Click below to message Steve!

Useful and interesting content we’ve read over the past two weeks:

1. #NeverTesla – Elon Musks’s Twitter is Full of People Swearing off Tesla

Bloomberg – 11.29.2022

The belligerent and erratic performance in his new role as “chief Twit” has raised Elon Musk’s already stratospheric public profile to new heights. If Twitter is a global town square, Musk has transitioned overnight from one of its loudest orators to equal parts mayor and sheriff, with the potential to irritate far beyond the echo chamber of his 118 million followers. For owners and potential buyers of Tesla cars, it has become all but impossible to find neutral ground on the controversies that surround Musk.

---

2. Tiger Woods Concedes He’s Almost Done Playing Golf, Unloads on LIV’s Greg Norman

Yahoo Sports – 11.29.2022

Tiger Woods’ playing days are almost done. But his influence on the game will clearly continue long after he’s holed his last putt.

Woods spoke Tuesday morning in advance of the Hero World Challenge, his own tiny-field tournament in the Bahamas, and as has become the norm at this event, he was unusually open and forthright, both about his own game and the state of the sport in general.

---

3. Crypto Creep Claims No Fraud!

CNBC – 11.30.2022

Former FTX CEO Sam Bankman-Fried, in possibly the understatement of 2022, said Wednesday, “I’ve had a bad month.”

The former billionaire added that he “didn’t do a good job” at upholding his responsibilities to regulators, customers and investors in a hotly anticipated conversation with CNBC’s Andrew Ross Sorkin at the DealBook Summit.

---

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

September, 2022 was one of the worst months in the stock market, as represented by the S&P 500, since 1950.

The good news? In looking back at the worst 15 individual months for the S&P 500, stocks have historically rebounded, with 1-year forward returns averaging more than +23%.

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

While the global 24/7 news cycle churns, twists, and turns, here are a number of fun, local trending events of note:

• November 25 – January 1 – Enchant Sacramento – Sutter Health Park
• November 18 – January 2 – Imaginarium – Light Up the Night – Cal Expo Center
• December 4 – Chicago Bulls vs. Sacramento Kings, December 4, Golden1 Center
• December 7 – Adam Sandler, LIVE – Golden1 Center
• December 10, 11 – The Nutcracker with Live Orchestra – SAFE Credit Union Performing Arts Center
• December 11 – Kevin Hart: Reality Check Tour – Golden1 Center

---

As always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth. We encourage you to reach out to us at any time (916-405-9140, info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an unsettled and complicated place, and we are here to help you properly plan for and make sense of it. 

Joseph Eschleman, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

We enjoy social media, and are actively growing our online community!

The markets, politics, and economy are uncontrollable and unpredictable. However, income taxes and investing costs, while unpleasant for sure, are omnipresent and forever.

As you work to build and protect your net worth, investing costs, fees, and expenses are virtually unavoidable. And owning investments inevitably means you will be subject to income tax obligations as well. The bad news? These two “necessary evils” are inevitable and unavoidable when working to grow and protect your net worth. The good news? With intelligent and proactive planning, we DO have some control over reducing and minimizing both!

Be it taxes or investment costs, it’s not what you make but what you keep. Let’s take a closer look at both necessary evils, and what can be done to reduce and minimize each of them.

Necessary Evil 1 – Taxes

Are income taxes dragging you down, ruining the “gas mileage” of your portfolio, and bringing down its real return? While financial and investment decisions should never be primarily driven by taxes, evaluating opportunities to reduce and minimize the income tax drag of your portfolio should always be top of mind.

Things to consider:

1.  The location of your investments matters: If you have a “regular” taxable account and also a tax-deferred retirement account, understanding which account to hold which of your investments in makes a huge difference. Knowing how to leverage, and what to hold, inside of IRA and 401(k) accounts can have a significant influence on your net, after-tax returns.

2.  When to buy and sell your investments matters: Tax-loss harvesting and the strategic realization of capital gains can make a huge difference when reducing the overall tax drag of your portfolio.

3.  Which accounts to trade in matters: Should you buy and sell in your tax-deferred IRA or 401(k) account, or would it be better to take advantage of the long-term capital gain and/or return of principal opportunities that a “regular” taxable account offers?

4.  The type of investments and funds you own also matters: Certain funds trade less and have lower turnover, tending to be inherently more tax efficient, as compared to funds that do a lot of active buying and selling, which can generate unwanted income and capital gain distributions.

5.  Which accounts you make withdrawals from matters: When taking money from your portfolio, being mindful of the type of account you decide to draw from matters, as does your personal income tax bracket at the time these withdrawals occur.

Necessary Evil 2 – Investment Costs

Four out of 10 investors don’t know how much they are paying in fees and investment costs, according to a study by Consumer Reports. And one of the easiest ways to bolster your returns and to better grow and protect your net worth is through expense, fee, and cost reductions.

Things to consider:

1.  Consider low-cost index funds and ETFs over actively-managed funds. While you don’t receive a bill in the mail to physically write a check to pay the internal costs and expenses of your diversified investment funds (these are paid directly out its returns), it is essential to be aware of, and work to reduce, this necessary evil.

2.  Reduce/eliminate account custodial fees and trading commissions/costs. Use a custodian or brokerage firm that doesn’t charge for these things. This is simple, and an absolute no-brainer. Towerpoint Wealth has partnered with Charles Schwab as our custodian, and our clients do not pay any account custodial fees, nor any stock/ETF trading commissions.

3.  Do not pay a “load” when investing in a mutual fund. A “load” is another word for commission. Don’t pay them, and instead seek out no-load and institutional funds, and financial advisors who recommend them.

4.  Pay attention to hidden fees within your company-sponsored retirement plan. Ask to see the summary plan description, also known as the plan document. If your menu of investment choices is a limited selection of high-expense/high-fee funds, ask your plan administrator why, and what lower-cost options are available to you.

Reducing and minimizing investment costs and income taxes is a significant responsibility of properly managing, protecting, and growing your net worth. There is no question that the drag created by these two necessary evils reduces the overall “gas mileage” of your portfolio, but fortunately, you do have direct control over the application and implementation of the above-mentioned strategies. As Warren Buffett said:

Have questions or concerns? Let’s talk.

Message us to schedule a no-strings-attached initial conversation.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients build and protect their net worth

Keeping our professional saw sharp! Click to read more

After two years of having to host the conference virtually, the 2022 Charles Schwab IMPACT conference, aka the “World Series of Investment Conferences,” was back in full effect in Denver, CO this month.

Among the more than 5,000 invite-only attendees were our Director of Research and Analytics, Nathan Billigmeier, our Director of Tax and Financial Planning, Steve Pitchford, and our Partner, Wealth Advisor, Jonathan LaTurner. 

From live keynote presentations from some of the biggest names in business, finance, wealth management, and politics, to intimate and interactive breakout sessions throughout the three-day event, the conference is a one-of-a-kind and fully-immersive experience for attendees.

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

What else is happening with the Towerpoint Wealth family?

Are you aware of your ability to align your investment portfolio with your personal values?

Watch an interesting and insightful conversation between our President, Joseph F. Eschleman, CIMA®, and Jay Lipman, co-founder at Ethic Investments, a global leader in ESG investing who helps empower wealth advisors and investors to create sustainable and socially-responsible portfolios.

Joseph and Jay specifically touch on:

• What is ESG, sustainable, and responsible investing?
• Why demand for ESG, sustainable, and responsible investing has exploded over just the past 18 months.
• Why returns and growth no longer need to be sacrificed when utilizing and implementing an ESG and sustainable investment philosophy.
• Why utilizing a customized separately managed account (SMA) is a much more effective way to develop and implement a inclusionary and exclusionary ESG-focused portfolio, as opposed to an ESG ETF or open-end mutual fund.
• How the pandemic and COVID-19 accelerated the growth and focus on ESG investing.
• What the future of ESG, sustainable, and responsible investing looks like.

Have you heard of an exchange fund? Are you aware of how an exchange fund can help you diversify your holdings and defer capital-gains taxes?

Exchange funds, also known as swap funds, pool large amounts of concentrated shareholders of different companies into a single investment pool, allowing large shareholders of a single stock to exchange this concentrated stock holding into a share in the pool’s more diversified portfolio.

Each exchange fund investor receives a share of partnership units commensurate with their contribution. The fund then employs its strategy, and usually after seven years, you have the option to redeem your units. When you do, you typically receive a pro-rata share of some or all of the stocks in a fund’s portfolio, depending on the policy of the individual fund. Or, you can continue to stay invested in the partnership on a tax-deferred basis.

Have more questions? Contact us or click below to message our Director of Tax and Financial Planning, Steve Pitchford, to request a complimentary analysis.

---

Have you considered specific 4Q, 2022 tax-planning and tax-reduction opportunities, before December 31 comes and goes?

Useful and interesting content we’ve read over the past two weeks:

1. Republican Infighting Roils Congress As Midterms Fallout Continues

Washington Post – 11.15.2022

Republicans in both chambers of Congress mounted challenges to their leaders Tuesday as disappointment over their lackluster performance in the midterm elections manifested in infighting and instability at the Capitol.

2. CNN, ABC News Cuts: TV News’ Belt-Tightening Era Begins

Hollywood Reporter – 11.16.2022

As CNN, ABC News, and others grapple with an advertising downturn and lower linear (non-streaming) viewership, the new mandate is to trim costs and find savings however they can while staffers weather the storm.

3. Yankees Ready to Pay Top Dollar to Keep Aaron Judge

NY Post – 11.15.2022

Hal Steinbrenner sounds prepared to do what it takes to keep Aaron Judge a Yankee – to a point. The Yankees’ managing general partner said Tuesday he told Judge he wants him to stay in the Bronx and indicated money won’t prevent that from happening.

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

The below chart reflects the material range of possible outcomes, depending on whether or not a tax-smart approach was taken. Whether investing for short-term or long-term gains, a failure to follow a tax-sensitive strategy can significantly impact your financial security.

Broken record: Let us help you keep as much of your growth and returns as possible. 

---

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

As always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth. We encourage you to reach out to us at any time (916-405-9140, info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an unsettled and complicated place, and we are here to help you properly plan for and make sense of it. 

Joseph Eschleman, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

We enjoy social media, and are actively growing our online community!

Follow us on any of these platforms, message us there and let us know your favorite charity.
We will happily donate $10 to it!

Click HERE to follow TPW on LinkedIn
Click HERE to follow TPW on Facebook
Click HERE to follow TPW on Twitter

Many investors are asking: “If the (insert: REPUBLICANS or DEMOCRATS) win the 2022 midterm election, should I change my investment strategy?”

Be it a bear, a bull, a donkey, or an elephant, investors tend to place a significantly greater amount of attention on political outcomes than is necessary, at least when it comes to their investment portfolios.

Given the relative stability of our economic system, US history has shown that there is not a “preferred” political party for the overall stock market. While electoral developments at the federal level may create shorter-term volatility, who ultimately sits in Congress matters less than you think. And regardless of which party wins the House and Senate next week, the historical performance of the stock market after the 2022 midterm election may end up being very good.

At Towerpoint Wealth, we believe that good, well-run, and profitable companies will almost always remain good, well-run, profitable companies, regardless of which way the political winds are blowing. Regardless of whether the White House and Congress are unified or divided, the stock market tends to march higher over time. However, what is also true is that volatility tends to elevate during midterm election years, even if temporarily.

Sound like 2022 so far? Understanding this data, we believe that 2023 can’t get here fast enough!

Putting aside the market and investment implications of the upcoming 2022 midterm election, below is what has happened historically in Congress.

Here at Towerpoint Wealth, we witness it firsthand every two years – a cross-section of clients who lean Democrat tend to become more worried, uneasy, and concerned about their investments after a Republican win, and conversely, certain Republican clients have the exact same feelings after a Democrat victory. Either way, we recognize it can be difficult to be fully rational during this period of heightened political discourse and rhetoric.

We have seen that politics can oftentimes distract an investor from focusing on and ultimately achieving longer-term financial goals. While there is no question that government policy can have an impact on economic growth, and can also affect specific stocks, bonds, and sectors, for most long-term investors, it makes more sense to focus on economic and market fundamentals rather than the upcoming midterm election poll results.

Two important reasons we have this viewpoint:

1. Investment returns over the longer-term correlate directly to the economic cycle, which has less to do with who’s in office as compared to other factors that drive growth. Many economic and technological trends are much larger than politics.
2. Economic policy is difficult to evaluate and often works with a lag. For instance, while corporate tax cuts may result in a short-term jump in the stock market, the true economic benefits occur over years and decades.

There will ALWAYS be pundits and “talking heads” on both sides of the aisle, predicting doom and gloom based on the other party’s proposals. And while there are policies that can promote long-term investment spending and job growth, the record shows that it’s incredibly difficult to accurately predict the shorter-term economic impact of any particular proposal.

It is paramount to focus on fundamentals in an uncertain environment like the one we are in today. The Towerpoint Wealth Investment Committee anticipates that the economic and market conditions that have fueled the volatility we have experienced this year will remain in place for some time after the last votes are counted, and the “noise” from the 2022 midterm elections subsides. However, we encourage you to not get too low, as the 4th quarter of 2022, and 2023 as a whole (the third year of President Biden’s term), could and probably will be quite different than what has happened so far in 2022, as evidenced by the two charts below.

Have questions or concerns? Let’s talk.

Let’s talk – message us to schedule a no-strings-attached initial conversation.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients build and protect their net worth

---

The Towerpoint Wealth team donated and handed out close to 100 brown bag lunches to the unhoused and other people in need at the footsteps of the Cathedral of the Blessed Sacrament in Downtown Sacramento two Tuesday’s ago.

During this Community Volunteer Day, the TPW team connected with this underserved sector of our community, directly helping unhoused people in dire need of basic necessities like food, water, clothing, and in some instances, pet food.

While the recent surge of the unhoused population in our region has split community leaders looking for solutions, we at Towerpoint Wealth were proud to do our small part in helping meet the basic needs of the most in need, at least for one day.

To find out how you can help and to learn more about this program, please visit https://www.cathedralsacramento.orgministries and refer to the Brown Bag Lunch Ministry.

---

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

---

What else is happening with the Towerpoint Wealth family?

Are you a technology director, VP, or engineer? Are you receiving restricted stock units, or RSUs, as a meaningful component of your overall compensation package?

Click below to watch our brand-new educational video, featuring our President, Joseph F. Eschleman, CIMA®, who discusses in detail how to manage RSU compensation packages for technology directors, VPs, and engineers.

Joseph specifically touches on:

• How to reduce the risk of receiving and holding your restricted stock units.
• How to structure a tax-efficient RSU “unwind” strategy.
• How to best manage the capital gains consequences of selling your RSUs.
• How to protect against becoming too “concentrated in your employer.”

If you consciously decide to hold – and not sell – shares of a mutual fund you hold in a “regular,” non-retirement account such as an individual, joint, or trust account, then you don’t have to pay capital gains taxes, right? For better or worse, sometimes the answer is WRONG!

You may be dealt an unexpected tax bill in 2022 that you may not be ready for and certainly did not ask for – a short or long-term capital gain distribution, which is a taxable event resulting from the fund’s manager selling shares or securities held within the fund.

Before it is too late (many funds make these distributions in early or mid-December), contact us or click below to message our Director of Tax and Financial Planning, Steve Pitchford, to request a complimentary analysis of your potential 2022 capital gains tax exposure.

---

Have you considered specific 4Q, 2022 tax-planning and tax-reduction opportunities, before December 31 comes and goes?

Useful and interesting content we’ve read over the past two weeks:

1.Recent commentary and news stories about the midterm elections (in some cases, not for the faint of heart!) RealClearPolitics – 11.3.2022 Democrats Aren’t Lauging at Dr. Oz Anymore Why Republican Attacks on Crime are so Potent How Low Can the Herschel Walker Campaign Go? Friendly Reminder: Sen. Warnock Has a Lot of Baggage The Missing Factor in the Election Story: Turnout
2. What Do Thieves Do with a Stolen iPhone? iMobie – 9.28.2022 It is quite annoying if the iPhone was stolen which could release your privacy and also cause some losses. Therefore, you have to know what to do if your iPhone was stolen in time which may help you to get back your iPhone and protect the data. For example, you may need to know how to locate a lost cell phone even when it’s turned off, how to use Find My, etc. Besides, This article will discuss what will happen to the stolen iPhone.
3.Texas Goes Permitless on Guns. Police Face Armed Public NY Times – 10.26.2022 Many sheriffs, police leaders and district attorneys in urban areas of Texas say there has been an increase in people carrying weapons and in spur-of-the-moment gunfire in the year since the state began allowing most adults 21 or over to carry a handgun without a license. At the same time, mainly in rural counties, other sheriffs said they had seen little change, and proponents of gun rights said more people lawfully carrying guns could be part of why shootings have declined in some parts of the state.

---

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

Have we reached peak inflation?

The stock market has historically rallied after inflation peaks (as measured by the CPI).

Since 1927, the average return for the S&P 500 in the 12 months following a peak in CPI was +11.5%.

Was June’s CPI figure of +9.1% the peak inflation rate for this current inflationary cycle? Based on the chart below from Blackrock, we are hopeful the answer is yes.

Concerned about inflation? At Towerpoint Wealth, we can help you – let’s talk about it!

---

---

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

While the global 24/7 news cycle churns, twists, and turns, here are a number of fun, local trending events of note:

• The 2021-2022 NBA-champion Golden State Warriors visit the Sacramento Kings on November 13
• The Beatles Guitar Project, celebrating the 55th anniversary of the Beatles 1967, visits the Sacramento Memorial Auditorium on November 13
• The Book of Mormon continues its tour at the SAFE Credit Union Performing Arts Center, through November 13
• Betty Wine Bar and Bottle Shop set to open in November
• Comedian Whitney Cummings, live at the Punch Line from November 17-19

---

As always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth. We encourage you to reach out to us at any time (916-405-9140, info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an unsettled and complicated place, and we are here to help you properly plan for and make sense of it. 

Joseph Eschleman, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

We enjoy social media, and are actively growing our online community!

Follow us on any of these platforms, message us there and let us know your favorite charity.
We will happily donate $10 to it!

Click HERE to follow TPW on LinkedIn
Click HERE to follow TPW on Facebook
Click HERE to follow TPW on Instagram
Click HERE to follow TPW on Twitter

“Everybody’s doing something. We’ll do nothing!”

– George Costanza, “The Pitch”, Seinfeld, Season 4, Episode 3

Holding cash in your investment portfolio, aka not investing it, is akin to “doing nothing.” Historical arguments against holding cash in an investment portfolio cite that it is boring and unproductive to do so, and an extremely defensive position to take.

However, considering the afflictions facing today’s financial markets, could holding cash be just what the doctor ordered?

Depending on your unique financial plan and investment strategy — and the current and expected state of the economy and financial markets — doing nothing could be a sound strategy or a foolish one that, in the long term, will be detrimental to the health of your nest egg.

It was only a little more than three years ago when we wrote about the possibility of banks paying negative interest rates on savings and money market accounts. Today, the economic and market environment is certainly quite different:

Arguments have historically been made that holding cash in an investment portfolio is boring, unproductive, and extremely defensive.

At Towerpoint Wealth, we have always believed that having a small allocation to cash – and cash’s cousin, cash alternatives – within a properly diversified portfolio is appropriate, for three main reasons:

1. Holding cash provides stability and insulation to a portfolio during times of market weakness.
2. Maintaining a small allocation to cash protects an investor against having to sell other investments at an inopportune time if an unexpected withdrawal need arises.
3. Cash acts as “dry powder” during a time of market weakness, giving investors the ability to buy low when prices are temporarily low, without having to sell other securities in their portfolio.

And now that interest rates have quickly moved up in 2022, and are expected to increase even further before the year is out, holding cash balances that are relatively larger is not as unproductive as it was even a few years ago.

Do you currently have cash in a checking account, savings account, money market account, or as part of your investment portfolio? Is it too much? Not enough? Is it working as productively as it can be for you?

Let’s talk – message us to schedule a no-strings-attached initial conversation.

---

Click the Wealth Management Philosophy thumbnail image below to learn more about exactly how we help our clients build and protect their net worth

---

Here are some of our top trending moments at Towerpoint you might have missed on our social platforms.

Click the images below!

---

What else is happening with the Towerpoint Wealth family?

Are you really a long term investor?

Or do you say you are, but sometimes tempted to behave more like a trader or a gambler, and fail to apply long term investment strategies to your portfolio?

Watch our President, Joseph F. Eschleman, CIMA®, discuss exactly what it takes to truly act and behave like a long term investor, and what specific long term investing strategies and philosophies need to be developed and internalized to be a successful long term investor.

Watch our educational video on YouTube!

---

There is never a bad time for tax planning – especially right now!

• The October 15 deadline for 2021 income tax returns on extension is right around the corner.
• The December 31 deadline for many 2021 tax planning opportunities is also right around the corner.

We encourage you to click below for an excellent two-page guide that summarizes the current “lay of the land” regarding 2021 tax rules and deadlines, and remember, the lower your tax bill, the lower the drag on your overall investment portfolio

---

Have you considered specific 4Q, 2022 tax-planning and tax-reduction opportunities, before December 31 comes and goes?

Useful and interesting content we’ve read over the past two weeks:

1. For Pelosi and McCarthy, A Toxic Relationship Worsens As Elections Approach NY Times – 10.5.2022 The hostility between the speaker and the man in line to succeed her should Republicans win control of the House has only intensified as the decisive moment nears.
2. Keep It or Toss It? ‘Best Before’ Labels Cause Confusion Associated Press – 10.4.2022 As awareness grows around the world about the problem of food waste, one culprit in particular is drawing scrutiny: “best before” labels.
3. US National Debt Tops $31 Trillion For First Time The Miami Herald – October 5, 2022 America’s total national debt surpassed $31 trillion for the first time on October 3, according to newly released Treasury Department data. Though the debt had been growing steadily in recent years, the rate of growth increased substantially throughout the pandemic.

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

Have we reached peak inflation?

The stock market has historically rallied after inflation peaks (as measured by the CPI).

Since 1927, the average return for the S&P 500 in the 12 months following a peak in CPI was +11.5%.

Was June’s CPI figure of +9.1% the peak inflation rate for this current inflationary cycle? Let’s hope so.

Concerned about the upcoming midterm elections? At Towerpoint Wealth, we can help you – let’s talk about it!

---

---

If you speak with someone who is concerned or unsettled about their investments or advisor, we welcome talking with them.

While the global 24/7 news cycle churns, twists, and turns, here are a number of fun, local trending events of note:

• These 33 restaurants just opened around Sacramento. Check out new dim sum, burgers, and more. (open in private/incognito mode)
• The Sacramento Turn Verein is hosting its 53rd Annual Oktoberfest!
• The Aftershock Festival continues, with Papa Roach and My Chemical Romance on Saturday, and Shinedown and Muse on Sunday.
• 2nd Saturday Art Walk in Natomas is Saturday, October 8.
• The 4-0 Sac State Hornets put their undefeated record on the line vs. Northern Colorado on Saturday, October 8 at 6:00PM.
• Rock With You – a Michael Jackson Tribute, at Swabbies on the River, Saturday, October 8.
• The Sacramento Natural Foods Co-Op’s 2022 Harvest Festival is this Saturday, October 8, from 1-5PM, on the top floor of the 28th & S Street parking garage!
• The Sacramento Greek Festival is back (!), from October 7th – 9th.

---

As always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth. We encourage you to reach out to us at any time (916-405-9140, info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an unsettled and complicated place, and we are here to help you properly plan for and make sense of it.

Joseph Eschleman, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

We enjoy social media, and are actively growing our online community!

Follow us on any of these platforms, message us there and let us know your favorite charity.
We will happily donate $10 to it!

Click HERE to follow TPW on LinkedIn
Click HERE to follow TPW on Facebook
Click HERE to follow TPW on Instagram
Click HERE to follow TPW on Twitter