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6 Reasons Why Estate Planning is Important 01.27.2023

“I’ve got a will, I’m in good shape.”

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

estate planning | Friends Joey gesture

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? Click the image below to read our white paper on the subject.

why estate planning is important | 411 estate planning

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?

Why estate planning is so important | Advance Directives

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).

13 states with a State Estate Tax, six states with State Inheritance Tax

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.

A quote attributed to Pablo Picasso

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.

Wealth Management Philosophy page on Towerpoint Wealth
Trending Today In Case You Missed It

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. In that spirit, click the image below!

11 key provisions of the Secure Act 2.0
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Towerpoint Wealth, LLC New Podcast 2023

Towerpoint Wealth, LLC New Podcast

Trending Today TPW Taxes

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!

The Frustrations of Form 1099

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

Steve Pitchford, CPA, CFP® Director of Tax and Certified Financial Planning
News You Can Use Trending Today

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.

Chart of the week Sacramento Financial Advisor

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

Black Rock illustrates the 10 worst years for US Bonds

Frank Zappa | A mind is like a parachute

Trending Today Our Community

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


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, Jonathan, Steve, Lori, Nathan, Michelle, Luis, and Megan

Thank You For Trusting Us Towerpoint Wealth Team 2023

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!

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Fortunately, the Market’s Past Performance in 2022 is No Guarantee of Future Results! 01.11.2023

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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%:
past performance of the S&P500
  • 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%.
monthly volume overall volatility

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?

S&P 500: The Year in Headlines – 2022

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.

investing based on past performance

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!

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.

Hartford Funds “The Price of Panic.”

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.

Wealth Management Philosophy page on Towerpoint Wealth
Trending Today In Case You Missed It

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!

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

Warren Buffet says Wealth 101

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.”

Trending Today TPW Taxes

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

Sequence of symbols wealth management

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.

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

Retirement Plan Saving Limits

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.

Steve Pitchford, CPA, CFP® Director of Tax and Certified Financial Planning
News You Can Use Trending Today

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.

Chart of the week Sacramento Financial Advisor

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

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

– Walter Scott

Past Performance - Recency bias "For success, attitude is equally important as ability.”

high IQs terrible investors

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

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Trending Today Our Community

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


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 (916-405-9140info@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, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

Towerpoint Wealth Thank You For Trusting

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

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Will Your Retirement Endure With the Passage of Secure (2.0)? 12.23.2022

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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.

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:

Tweet from Senator Rand Paul

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.

The Secure Act 2.0

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.

Wealth Management Philosophy page on Towerpoint Wealth
Trending Today In Case You Missed It

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.

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YouTube Wealth Management

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!

Trending Today TPW Taxes

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!

2022 Tax Planning Checklist

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?

Steve Pitchford, CPA, CFP® Director of Tax and Certified Financial Planning
News You Can Use Trending Today

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.

Chart of the week Sacramento Financial Advisor

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.

US government US Federal Reserve
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unsettled about their investments or advisor, we welcome talking with them.

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Trending Today Our Community

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

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 (916-405-9140info@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, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

Towerpoint Wealth Thank You For Trusting

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

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Does Sacramento Housing Have You Drowsing? 12.02.2022

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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:

US map showing high inbound migration data
100 metro areas
Graphs courtesy of Redfin

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!

Side by side comparison of Listing Price
Time to Buy?

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

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Trending Today In Case You Missed It

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!!

Joseph, Dan, and Sue in front of Michelle behind the desk with the Towerpoint Wealth
TPW clients, Dan and Sue Britts.
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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.”

The Top 5 Ways to Recession-Proof Your Portfolio
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Trending Today TPW Taxes

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.

Required Minimum Distributions | RMD strategies worth evaluating

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

Steve Pitchford, CPA, CFP® Director of Tax and Certified Financial Planning
News You Can Use Trending Today

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.

Chart of the week Sacramento Financial Advisor

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%.

15 worst months for S&P 500 decline
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Don't Wait To Buy Real Estate

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

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Trending Today Our Community

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


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 (916-405-9140info@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, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

Towerpoint Wealth Thank You For Trusting

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!

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Minimizing the Necessary Evils of Building Net Worth – Taxes and Investing Costs 11.18.2022

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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.

401k - Taxable accounts on one side and Tax-advantaged accounts

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

Wealth Management Philosophy page on Towerpoint Wealth
Trending Today In Case You Missed It

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.

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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.

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Trending Today TPW Taxes

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?

Steve Pitchford, CPA, CFP® Director of Tax and Certified Financial Planning
News You Can Use Trending Today

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.

Chart of the week Sacramento Financial Advisor

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.

Click here to Introduce Us
Trending Today Our Community

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


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 (916-405-9140info@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, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

Towerpoint Wealth Thank You For Trusting

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

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The 2022 Midterm Election – Cause for a Market Correction? 11.05.2022

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

2022 Midterm Elections

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.

equity market volatility

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.

Image of Warren Buffet and his quotation

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.

John Kenneth Galbraith and his quote

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.

Average 4th quarter US stock performance
Post Elections 2023 Strong Year

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

Wealth Management Philosophy page on Towerpoint Wealth

Trending Today In Case You Missed It
Cathedral of the Blessed Sacrament in Downtown
Watch the short video montage of our morning!

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.


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Restricted Stock Units and stock options | What is an RSU?
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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.”
Trending Today TPW Taxes
How distributions are taxed

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?

Steve Pitchford, CPA, CFP® Director of Tax and Certified Financial Planning
News You Can Use Trending Today

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
Battle for the Senate 2022
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.
What Do Thieves Do with a 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.
Guns Police Face Armed Public

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

Chart of the week Sacramento Financial Advisor
equity performance 12 months after inflation peaks

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!


Brene Brown quote

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
Trending Today Our Community

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


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 (916-405-9140info@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, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

Towerpoint Wealth Thank You For Trusting

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

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Holding Cash is No Longer Trash! 10.10.2022

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

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

George Costanza, “The Pitch”,

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:

banks paying negative interest rates on savings

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

holding cash in an investment portfolio

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.
Warren Buffet Quote Cash Priceless Holding Cash

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

Wealth Management Philosophy page on Towerpoint Wealth

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YouTube Wealth Management

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!

long term investing strategies and philosophies
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Trending Today TPW Taxes

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

2021 tax rules and deadlines
Click here to download Trending today

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

Steve Pitchford, CPA, CFP® Director of Tax and Certified Financial Planning
News You Can Use Trending Today

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.
For Pelosi and McCarthy, A Toxic Relationship
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.
Best Before’ Labels Cause Confusion
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.
US National Debt Tops $31 Trillion

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

Chart of the week Sacramento Financial Advisor

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!

peak inflation and stock market

shelby collum davis quote

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Trending Today Our Community

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


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 (916-405-9140info@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, Jonathan, Steve, Lori, Nathan, Michelle, and Luis

Towerpoint Wealth Thank You For Trusting

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.
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Inflation Reduction or Addition? 08.12.2022

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What We Know about the $740 Billion Inflation Reduction Act

The Inflation Reduction Act of 2022 (IRA) passed the Senate on a 51-50 party-line vote on Sunday (with Vice President Kamala Harris casting the tiebreaking vote), and is expected to get a final vote in the House today. And while it is a far cry from President Biden’s original and wildly ambitious $3.5 trillion Build Back Better Act, this $740 billion spending package marks a significant legislative victory for the President and for Democrats.

Inflation Reduction New York Times Climate Action

The IRA legislation is an excellent representation of today’s polarized and partisan political landscape, and a microcosm of the “fact or fiction?” question surrounding the integrity of and spin found within today’s journalism.

  • Speaker of the House, Nancy Pelosi: “It’s a great bill. It’s historic.
Speaker of the House, Nancy Pelosi: - Inflation Reduction
  • House Minority Leader Kevin McCarthy: “They’ll spend more money, which brought us into this problem.”
House Minority Leader Kevin McCarthy | Inflation Addition

Putting aside whether we agree with the intent and myriad of provisions found within the bill, we can all acknowledge it is broad-based, comprehensive, and confusing. And while inflation reduction remains a key point of contention surrounding the legislation, our focus is to pointedly address the question: “What’s in it for you, our clients?

First, what is not in it for you.

1. Direct payments or checks in the mail.

2. A “clean vehicle” tax credit of up to $7,500 (see below) if the vehicle you purchase does not meet all of the requirements for electricity power and mineral or battery components.
-This credit would be cut or eliminated if your vehicle is not sold by a “qualified manufacturer” and/or the final assembly did not take place in North America.

3. A tax (which was removed from the final version of the legislation) on carried interest payments to private equity and hedge fund managers.

Next, what is in it for you:

1. If you are a Medicare beneficiary, your yearly out-of-pocket Part D drug expenses capped at $2,000/year (starting in 2025).

Today, there is no cap.

2. Also for Medicare beneficiaries, a $35 monthly cap on the cost of covered insulin products (starting in 2023).

According to a Health Affairs study published just last month, spending on insulin has reached catastrophic levels.

3. An extension of a key Affordable Care Act (Obamacare) subsidy that reduces annual medical insurance premiums by $800 through 2025.

  • This was set to expire this year, and makes health insurance more affordable for Americans who buy it on their own.

4. Potentially less expensive prescriptions. For the first time, Medicare could, beginning in 2026, negotiate bulk discounts with drug companies for pharmaceuticals (something many private insurers currently do).

  • This is getting publicity because policymakers have been trying for years to give Medicare managers some ability to bargain with pharmaceutical companies. However, these new negotiating powers are only applicable for 10 drugs per year.

5. A new “clean vehicle” tax credit of up to $7,500.

This credit applies and is earned as follows:

  • New clean automobiles that cost up to $55,000.
  • New trucks, vans, and SUVs that cost up to $80,000.
  • You must earn less than $150,000 (single) or $300,000 (married filing jointly).

6. A used “clean vehicle” tax credit of up to $4,000.

This credit applies and is earned as follows:

  • Used clean vehicles (two years old or older) that sell for $25,000 or less, the credit is up to $4,000.

7. Energy-efficient home credits.

  • The credit for installing qualified goods (such as Energy Star products including solar electric, solar water heating, fuel cell, small wind energy and geothermal heat pumps) at non-business properties increases from 10% to 30%.
  • A lifetime cap on these credits is replaced with a $1,200 annual credit ceiling ($600 for energy-efficient windows, $500 for energy-efficient doors).
  • A $2,000 energy-efficient home credit would be offered for biomass stoves and heat pumps.
  • Existing credits would also be enhanced to cover home energy audits (up to $150) and electrical panel upgrades (up to $600).
Inflation Reduction US Net Greenhouse Gas Emissions Energy

Last, how is it paid for?

1. New taxes.

  • A new 1% levy on stock buybacks by publicly-traded companies (will this be increased in the future?).
  • A new 15% alternative minimum tax on larger corporations (will this be immediately passed on to consumers and stockholders?), some of which report significant profits, but pay little or even nothing due to credits or deductions.

2. Collection of unpaid taxes.

  • The IRS will be adding thousands of new agents to go after tax cheats, increasing the need for labor (but where will these new employees come from, understanding the tight labor market?).
  • This is expected to substantially increase the audit rate on those earning more than $400,000 annually.

3. Drug savings / price controls.

  • As discussed above.

Many have asked “Where is the inflation reduction?” that this legislation claims to produce. According to initial estimates, the measure would raise a total of $739B in revenue, and spend a total of $433B, reducing the budget deficit (and therefore, inflation) by roughly $300B over a decade.

The non-partisan Congressional Budget Office also found that the package would reduce the deficit by about $102B over the next 10 years, and would be in-line with the deficit reductions claimed by Sens. Chuck Schumer and Joe Manchin if revenue from tax enforcement was included in the calculations.

Sens. Chuck Schumer and Joe Manchin

It is also important to understand that if Republicans end up regaining control of the Senate in January 2023, they might be able to zero-out any Inflation Reduction Act taxes, tax break amounts, or other Medicare benefits change amounts in future must-pass budget or spending packages.

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

Sacramento wealth management firm
What's Happening At TPW - Trending today

The entire Towerpoint Wealth Team came out on Community Volunteer Day to lend a hand to the American River Parkway Foundation program to clean up trash along Sacramento’s urban gem.

Spanning 23 miles and covering 4,800 acres, the Parkway is a mecca for outdoor enthusiasts and those looking to refresh themselves.

In 2021, more than 200 fires burned over 15% of the parkway. The Parkway in Peril program created by the Foundation aims to mitigate fire risk by cleaning up trash. Volunteers play an essential role in conservation of the parkway.

Guided by Alex Watson, the TPW team hauled out ~ 1,400 lbs. of old bicycles, couches, and what felt like a ton of plastic waste in sweltering temperatures.

Click the thumbnail below to watch an inspiring video where you can see the TPW team all hard at work helping preserve this Sacramento treasure!

American River Parkway Foundation - Community Day

The Towerpoint Wealth Investment Committee (TPWIC) is working hard for our clients every day, evaluating our model portfolios and debating new ideas, investments, and tactical economic trends.

The ultimate goal? Helping YOU to remove the hassle of properly coordinating all of your financial affairs, so you can live a happier life and enjoy retirement. Click below to watch a video “short” of TPWIC’s most recent meeting!

watch a video “short” of TPWIC’s most recent meeting | Sacramento Financial Planner

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Towerpoint Trending Today Banner Images Taxes.png

$4,104,725,000,000!

Thanks in part to an ongoing recovery from the pandemic, spiking inflation, and Americans who are receiving higher wages than ever before, tax receipts for the IRS have broken a record.

According to the monthly US Treasury statement, the federal government collected more than four trillion dollars in total taxes in the first ten months of fiscal 2022 (October, 2021 – July, 2022), up almost 14% from what the US Treasury collected in taxes in the first ten months of fiscal 2021 and setting a new record.

However, don’t forget about federal government outlays, as we spent $4,830,844,000,000 in the same time period, resulting in a deficit of more than $726 billion.

Inflation Reduction federal government budgeting and spending

Are you generally happy with the federal government’s budgeting and spending, or do you think there is room for improvement?

Sacramento Certified Financial Planner | Steve Pitchford, CPA, CFP® Director of Tax and Financial Planning
News You Can Use

Useful and interesting content we read the past two weeks:

1. Yes, China Would Go To War Over Taiwan – The Cato Institute – 8.2.2022

Yes, China Would Go To War Over Taiwan

U.S. officials in four administrations disregarded Moscow’s increasingly pointed warnings, and we are now witnessing the tragic results in Ukraine. It is imperative that Washington not make the same blunder with respect to China’s warnings about Taiwan.

China is as likely to use military force to defend a vital national security interest as Russia was to repel U.S. meddling in Ukraine. Washington needs to take the PRC’s escalating warnings about outside powers interfering in Taiwan much more seriously than it has to this point.

2. Trump’s Bond with GOP Deepens After Primary Wins, FBI Search – AP News – 8.10.2022

Trump’s Bond with GOP

This week’s rapid developments have crystalized the former president’s singular status atop a party he has spent the past seven years breaking down and rebuilding in his image. Facing mounting legal vulnerabilities and considering another presidential run, he needs support from the party to maintain his political career.

But, whether they like it or not, many in the party also need Trump, whose endorsement has proven crucial for those seeking to advance to the November ballot.

3. Electric Cars Too Costly For Many, Even With Aid in Climate Bill – The NY Times – 8.9.2022

Electric Cars Too Costly

Battery-powered vehicles are considered essential to the fight against climate change, but most models are aimed at the affluent.

And experts say broader steps are needed to make electric cars more affordable and to get enough of them on the road to put a serious dent in greenhouse gas emissions.

Towerpoint Trending Today illustration of the week
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Quote of the Week
Bertha Calloway Quote Wind Sail

Not everyone handles market volatility the same way. If you happen to be speaking with someone who is concerned about their investments or advisor, we welcome talking with them.

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Trending Today Towerpoint Wealth Financial Advisor

As the 24/7 news cycle churns, twists, and turns, a number of trending and notable events have occurred over the past few weeks:

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 extremely unsettled and complicated place, and we are here to help you properly plan for and make sense of it.

Joseph, 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!

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The Twitter Musk Soap Opera – Should We Actually Care? 07.15.2022

Coming as a surprise to virtually no one, and as you have probably read or heard, Elon Musk is attempting to terminate his $44 billion takeover of Twitter.

The Twitter Musk Soap Opera – Should We Actually Care?

The Twitter Musk “saga” has certainly been an interesting and increasingly outlandish one. On one hand, Musk said that Twitter rebuffed his efforts to obtain information and details surrounding fake users and accounts (aka bots, or automated accounts that can do the same things as human beings), alleging that the company is not as valuable, and is not as profitable, as their current official 400MM user count suggests. Twitter’s stock has plummeted on the news that the world’s richest person intends to revoke his offer of $54.20 per Twitter share.

Twitter Musk

On the other hand, Twitter says they have “played ball,” have continued to act in good faith, and have justified not sharing the information with Musk by saying that it was worried he would build a competing platform after abandoning the acquisition. Additionally, with Twitter fully intending to call the bluff on Musk’s “billionaire vanity project,” and with Twitter stock now trading in the mid 30’s, a $54.20/share takeover offer is way too sweet to let Musk walk away!

Semi-ironically (considering that Twitter never wanted to be acquired in the first place), Twitter filed a much-anticipated lawsuit earlier this week to force Elon Musk to close his acquisition of the company. With the lawsuit set to begin in mid-September, what happens next with Twitter Musk is anyone’s guess, but for some, it will be must-see TV (and must-see Tweeting, as evidenced by the clickable image below).

Elon Musk They Said I Couldn't Bug Twitter

How could this Twitter Musk soap opera end? Here are eight ways it could happen.

Perhaps more importantly, why does this Twitter Musk stuff even matter and why should you care? Five important considerations may answer that question:

1. Free speech – Musk said in his news release announcing his purchase that “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”

2. Advertising – Many are concerned that advertisers would be less willing to spend advertising dollars on Twitter if Musk removes content moderation to further promote free speech. Additionally, advertisers could move to other platforms like YouTube, TikTok, or other online channels.

3. Donald Trump – Would or wouldn’t Musk let Trump back? Few people if any did a better job of dominating the “media ecosystem” via Twitter than Donald Trump prior to his ban in early 2021. Love him or hate him, Musk said at an April, 2022 TED conference that he prefers timeouts for “offending” Twitter users, and would be very cautious with permanent bans. It seems difficult not to argue that nothing would stoke the Twitter Musk soap opera more than a Trump reinstatement…

4. Tesla – Would acquiring Twitter put too much on Musk’s plate? Musk is planning on using TSLA stock as collateral for a loan to finance the takeover. Do Tesla shareholders really want to see Twitter stock added to the Tesla portfolio, and have their visionary CEO shoulder even more responsibility?

5. Current Twitter users – Alternative social media platforms (WeChat, Facebook, YouTube, Truth Social, WhatsApp, Snapchat, and Instagram come to mind) abound in today’s digital ecosystem. Additionally, would Twitter be nearly as viable if its largest users (Barack Obama, Justin Bieber, Katy Perry, Rihanna, Cristiano Ronaldo, Taylor Swift, Lady Gaga, and Elon Musk himself) decided to close their account and move to another platform?

Twitter continues to be an extremely popular communication and information dissemination platform, and we certainly expect this saga to carry on for quite some time. Being humble about our ability to consistently and accurately predict the future, our preference at Towerpoint Wealth is to simply sit back with some popcorn and watch these important and entertaining twists and turns of the Twitter Musk soap opera as they unfold.

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

Sacramento wealth management firm
What's Happening At TPW - Trending today

The Towerpoint Wealth crew was well represented at the American Century Celebrity Championship last weekend, as our Director of Research and Analytics, Nathan Billigmeier, his wife Jessica, our President, Joseph Eschleman, his son Henry, and our Partner, Wealth Advisor, Jonathan LaTurner, and his wife, Katie McDonald, all “crashed” Edgewood Tahoe Golf Course in South Lake Tahoe, NV

A lineup of more than 80 athletes and celebrities, including Steph Curry, Justin Timberlake, Charles Barkley, Jerry Rice, Patrick Mahomes II, and Nick Jonas, competed in the three-day tournament, won for a third time by former Dallas Cowboys quarterback Tony Romo on the second hole of an exciting playoff!

Edgewood Tahoe Golf Course in South Lake Tahoe, NV!
former Philadelphia Phillies player Shane Victorino
Joseph and two-time all star and former Philadelphia Phillies playerShane Victorino 
(aka The Flyin’ Hawaiian) pose for a selfie!

Earlier this month our new Marketing Specialist, Luis Barrera, visited Morelia, Mexico to spend some family time with his cousin (and designer, TV host, and businesswoman), Rossana Salgado, at her wedding to Jose Luis Higuera.

Rossana Salgado, at her wedding to Jose Luis Higuera

What else is happening with the Towerpoint Wealth family?

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Towerpoint Trending Today The Golden States Warriors

While having little if any effect on your personal income tax return or liability, the recent $346 million spending spree by the Golden State Warriors has placed the 2021-2022 NBA Champs knee-deep into the NBA luxury tax, an incremental tax meant to control team spending and penalize owners who go over the NBA salary cap.

Largest NBA Luxury Tax Bills In History

Understanding the Warriors have been anything but shy about spending money in order to maintain the roster that has helped them win four NBA titles since 2014-15, their spending on player salaries, while legal, has not sat very well with many NBA owners, and was a hot topic at the recent NBA owners’ meeting in Las Vegas

Steph Curry earns close to $50 million/year. Klay Thompson, Andrew Wiggins, and Draymond Green combine for almost another $100 million in salary. Star center Kevon Looney just signed a new three-year, $25.5 million contract, and up-and-coming star Jordan Poole expects to earn a contract extension upwards of $100 million.

Is all of this fair? Well, it’s legal. But click the thumbnail below for an excellent commentary on why this is such an important issue, and what the league may, or may not, do about it:

NBA Warriors

Curious about how Towerpoint Wealth is interfacing with our clients’ CPAs to do proactive and collaborative tax planning?

Steve Pitchford, CPA, CFP® Director of Tax and Financial Planning
News You Can Use

Useful and interesting content we read the past two weeks:

1. We Don’t Have a Microwave Democracy – com (Myron Clifton) – 7.6.2022

We Don’t Have a Microwave Democracy

Democracy isn’t made in a microwave. Democracy takes time. Democracy requires an investment in process. And Democracy requires sharing across generations to sustain progress and pass along lessons that should not be forgotten.

Every vote is your most important vote. You will not always get your way, but you significantly increase your chances of improving our nation and perfecting our democracy when you exercise your inherited civic duty.

If you want your way there’s only one way to get it: Vote and vote every time you have the opportunity to and ensure future Americans have more and better rights, laws, and government.

2. Pension Funds Plunge Into Riskier Bets – Just As Markets Are Struggling – The Wall Street Journal – 6.26.2022

Pension Funds Plunge Into Riskier Bets – Just As Markets Are Struggling

US public pension funds don’t have nearly enough money to pay for all their obligations to future retirees. A growing number are adopting a risky solution: Using leverage and investing borrowed money in an effort to earn higher returns and close big funding gaps.

As both stock and bond markets struggle, it’s a precarious gamble.

3. How Justice Amy Coney Barrett is Wielding Enormous Influence on the Supreme Court – USA Today – 7.13.2022

 How Justice Amy Coney Barrett is Wielding Enormous Influence on the Supreme Court

After a term in which the court’s conservative majority overturned Roe v. Wade, set a tougher standard for assessing gun regulations, and redrew the line separating church and state, Americans are debating whether the court is putting forth an honest effort (even if one you ultimately don’t agree with) to determine what the Constitution and precedent requires, or if it is purely results-driven and designed to impose the policy preferences of the majority.

This discussion inevitably leads back to Barrett herself – and her influence on the nation’s highest court.

Towerpoint Wealth Chart Of The Week

In order to successfully achieve their longer-term financial and investment goals, it is essential that investors make rational, informed, and unemotional decisions – easier said than done sometimes!

Warren Buffet Be Fearful When Others Are Greedy. Be Greedy When Others are Fearful.

As human beings, we fall victim to the emotional roller-coaster of a typical market and economic cycle, with the investor sentiment lifecycle delineated below.

Investor Sentiment Lifecycle : Source Barclays

Let us know where you currently find yourself falling within the above chart!

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Trending Today Featured In Sacramento Bee

Our President, Joseph Eschleman, CIMA®, dove into a number of specific opportunities and valuable money-saving tips to navigate today’s inflationary environment with Sacramento Bee reporter Hanh Truong, in her recent article: “Should You Keep Cash On Hand as Inflation Rises? California Adviser Gives Money-Saving Tips.”

As inflation continues to be a challenge for virtually all in the Sacramento area, many residents harbor significant concerns that today’s prices on the rise will persist for some time.

Click the thumbnail image below to read Truong’s article, as Eschleman contributes specific strategies for possible relief and protection from this rampant inflation.

Towerpoint Wealth’s President featured in the Sacramento Bee

Have additional questions about how to position yourself and your portfolio to better protect against and possibly even profit from inflation?

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Quote of the Week

Today’s rampant inflation continues to be a central economic issue of interest and concern, as June’s Consumer Price Index (CPI) reading of +9.1% was the highest on record since November of 1981.

Today’s post-COVID increased consumer demand and spending, coupled with trillions of dollars of recent government COVID stimulus, and today’s continued supply chain constraints, equal a perfect recipe for inflation. And while fighting inflation is now a central goal of our government, successfully doing so can be a challenge.

Inflation is like toothpaste. Once it's out, you can hardly get it back in again. Karl Otto Pohl
Trending Today Towerpoint Wealth Financial Advisor

As the 24/7 news cycle churns, twists, and turns, a number of trending and notable events have occurred over the past few weeks:

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 extremely unsettled and complicated place, and we are here to help you properly plan for and make sense of it.

Download Newsletter Towerpoint Wealth

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

Towerpoint Wealth, Sacramento - Financial Planning Services

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

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The Top 5 Things We Will NOT Do in 2022! 12.29.2021

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If your inbox looks anything like ours right now, the last thing you need is a generic 2021 recap or a run-of-the-mill outlook for 2022!

Towerpoint Wealth Inbox

Never inclined to jump on a bandwagon, we’d like to offer you something a bit different, and with that being said, here is what we at Towerpoint Wealth will NOT do in 2022:

1. We will NOT glean our news from TV nor from social media

It takes a herculean effort to source truly objective and reliable news nowadays. And unfortunately, for the most part, stories we see and hear on TV do have some sort of slant or bias, that even extends to the numbers and statistics presented. Everything feels politicized, and it can be extremely difficult to separate fact from fiction, and/or opinion from objectivity.

68 percent news

Are you skeptical or trusting of the news media?

News Media Trust Sacramento Wealth Management

It obviously is important to recognize that news is negative by design, and that impressions and clicks are fast replacing television Nielsen ratings. And understanding that the fight for eyeballs (and concurrently, advertising revenue) is as intense as ever, negative stories have always sold.

What to do? Read the news, don’t watch it on TV. If you are liberal, read conservative sources. And if you are conservative, read liberal sources. Put differently, understand that completely unbiased reporting is challenging even for the most seasoned journalists; look for the whole picture, be mindful of having a “deep bench” of diverse and well-rounded news sources (click HERE for a good head start), and do not become pigeon-holed into only reading stories that feel right and feed into your belief system.

We value the importance of having convictions and opinions, but be disciplined enough to have opinions that are formulated from a solid foundation of quality information and sources. Read carefully, and trust cautiously.

2. We, and our clients, will NOT be misled by “lonely numbers”

“The world cannot be understood without numbers. But

the world cannot be understood with numbers alone.”

-Hans Rosling, Factfulness

Numbers and statistics can appear to offer support or even hard proof about a particular issue. However, without a larger context, they can be meaningless or even misleading. The world of wealth management, investing, and economics is awash in numbers and statistics, and we will continue to be mindful and think hard about how to help our clients appropriately interpret and find meaning in them.

Towerpoint Wealht Average Female Height Stocks and Goals numbers and statistics

Additionally, our clients expect us to be statistically literate, and we acknowledge and embrace the fact that part of our job is to figure out exactly what story the numbers tell, and why it matters. Data is an important tool for allocating capital, developing strategy, and making tactical decisions as circumstances change and evolve, but incomplete or incorrect data can muddy the waters and create a false sense of safety and a false sense of urgency (see number 3 below).

Click HERE and HERE to review two excellent sources about misleading graphs.

3. We will NOT lose perspective during this, or the next, crisis

Use of the word “crisis” in news stories may be at an all-time high, with reported crises involving:child-carecollege dropoutsimmigrationthe climateSudanhomelessnessrural healthcareScandinavian money launderingavocadosthe automotive industryIranMoldovaPakistanIsraeli baconTrump’s reelection prospects, and Canadian national unity.

Stocks and Goals numbers and statistics

At Towerpoint Wealth, we are attuned to reports, numbers and statistics, but never are we reactionary to the hour-by-hour developments in the economy and financial markets. In the case of a reported crisis, we encourage you to follow our lead. Take a deep breath before hitting the panic button, and try to consider a larger context. There is always a broader, longer-term narrative with every news story.

4. We will NOT take outsized risks in pursuit of outlandish growth

While we faithfully execute on the customized plans we establish in tandem with our clients to compound and grow their net worth and assets, we recognize that protecting that net worth is just as important as aggressively growing it and will only take calculated and justified risks.

The math behind “making up” for investment declines speaks for itself:

Investment Declines numbers and statistics

If you suffer a 50% loss, you will need to DOUBLE your money to get back to break-even!

Proverbs Quote Making Money

We are also quite mindful of the following:

The only thing people hate more than losing money is the person who lost it for them.

5. We will NOT lose confidence in the longer-term health of our country, our society, our government, the American economy and the American dream.

Some argue that the American Dream has become a nightmare. We vehemently disagree. No matter who we are or where we’re from or what we look like or who we love, the American Dream excludes no one. Our core values as a nation are not Republican nor Democrat, not conservative nor liberal, they are American ideologies. And as we head into 2022, we believe that Julian Castro’s quote sums it up well:

American Dream Castro

What’s Happening at TPW?

A rare photo of the Grinch (aka our Director of Operations, Lori Heppner), sneaking around on Christmas Day!

The Grinch Lori

Our Director of Research and Analytics, Nathan Billigmeier, took his son Ethan to his firstSacramento Kings game last week at the Golden1 Center. The Kings didn’t win, but both dad and son had a great time!

Kings Game

Don and Beth Parvin, two important Towerpoint Wealth clients, were in the office for a review meeting last week, and gifted a sweet throwback Christian Brothers High School winter jacket to our President, Joseph Eschleman, which, though our offices are heated, he just had to try on.

Happy Holidays, Don and Beth – thank you for your generosity!

Don and Beth Wealth Management

TPW News You Can Use

Useful and interesting content we read the past two weeks:

  1. I Got COVID Three Times 
    – BuzzFeed News – 12.23.2021

    Yes, you can get COVID twice, and even more. While this situation is incredibly rare, this is a story of a person who was directly exposed to the virus (or parts of it that trigger an immune reaction), five times. “My antibodies should be as jacked as an Instagram bodybuilder. But apparently, they’re not…”

  2. A-Rod Building Business Empire After Controversial MLB Career 
    – BNNBloomberg – 12.23.2021

    Alex Rodriguez had one of the most successful – and controversial – careers in Major League Baseball history. Now eligible for the Hall of Fame, the baseball world continues to weigh his lofty achievements against his sins. However, his goals in business have been as lofty as his athletic endeavors, and his ambitions are accelerating.

  3. Will Apple or Microsoft Hit $3 Trillion Next Year? 10 Tech Predictions for 2022 
    – SeekingAlpha – 12.24.2021

    Wall Street has started its annual “look-ahead” predictions for 2022, with Wedbush Securities Dan Ives predicting big growth in the NASDAQ, the metaverse, cybersecurity spending, and the cloud, along with a moderation in the microchip shortage.

Chart/Infographic of the Week

A great legend at Merrill Lynch for several decades, Bob Farrell had a front-row seat to the go-go markets of the late ‘60’s, mid ‘80’s, and late ‘90’s, as well as the brutal bear market of ’73-’74, and also the October of ’87 crash. He was a pioneer in investor sentiment studies and market psychology, and perhaps was most famous for his Ten Rules for Investing, which are still passed around on Wall Street today:

Quote of the Week

Having a strong disdain for the scientific pretensions and formal apparatus of modern economics, and despite his Harvard professorship, John Kenneth Galbraith was never really an economist in the ordinary sense. He believed that the math and numbers-crunching missed the point, and was a full believer in being careful not to fall prey to paralysis by analysis.

Quote of Week December 8 2021

Trending Today

As the 24/7 news cycle churns, twists, and turns, a number of trending and notable events have occurred over the past few weeks:

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 (916-405-9140info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an extremely unsettled and complicated place, and we are here to help you properly plan for and make sense of it.

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

Towerpoint Wealth Sacramento Independent Financial Advisor

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