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Time to Disavow the Dow Right Now? 01.14.2022

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The oldest and still most widely quoted proxy for the U.S. stock market, the Dow Jones Industrial Average (DJIA), or “the Dow” for short, continues to be regularly quoted by news broadcasts, newspapers, and smartphone apps as an indicator of the health (or lack thereof) of the financial markets and U.S. economy.

Newspaper Stand

The Dow history is interesting, as it was created in the late 19th century by Charles Dow, co-founder of Dow Jones & Company and co-founder and editor of the Wall Street Journal (WSJ), and Edward Jones, the WSJ’s other co-founder. It is an index that has gone through 57 different revisions since it was created, and to this day is supposed to encapsulate the overall state of the stock market in a single number.

The composition of the Dow right now is determined by the Index Committee, and is designed to change as the economy changes over time. Initially comprised of 12 of the biggest and most influential companies of the day, the Dow history includes an expansion to 20 companies in 1916; by 1928, it included 30 companies, which continues to be the number tracked today. Any current member of the Dow can be dropped by the Committee if the company is deemed to be less relevant to current economic trends, to be replaced by a new company that the Committee determines to better reflect said trends. The 30 companies that currently comprise the DJIA index, and the year they were added, are as follows:

Dow Jones Industrial Average
Dow Jones Industrial Average

As the U.S. economy has grown over time, so has the value of the Dow. Below is a graph from FRED (Federal Reserve Economic Data) reflecting how the DJIA has almost tripledover just the past ten years, growing from 12,741.02 on 1/12/2012, to 36,252.02 on 1/11/2022:

TPW FRED Graph

Ten years of data not enough for you? Below is a logarithmic chart from Macrotrendsreflecting the Dow history and growth over the past 100 years (the grey bands reflect recessions in the U.S.):

TPW DOW History Graph

Albeit with regular speed-bumps along the way, the continued and sustained growth of the Dow has been pretty amazing!

Interested in learning more? Click the thumbnail below for a straightforward YouTube video from PBS that discusses everything to do with the Dow right now:

The Dow Right Now

However, for all of its “glory” and history as the best-known and perhaps most widely followed stock market index in the world, is the Dow right now really all it’s cracked up to be? At Towerpoint Wealth, we argue the answer is no, as the index is as flawed today as when it was first calculated on May 26, 1896. The various “warts” of the Dow give us pause, and cause us to discourage our clients from considering it a truly useful proxy and viable resource to rely on.

Here are four specific reasons why we disavow the Dow right now:

1. It is narrow – “only” 30 companies are represented in the index.

Because (in theory) the 30 companies that comprise the Dow Jones Industrial Average (DJIA) index are the largest and most influential in the country, they represent only about 25% of the value of the entire U.S. stock market. However, many experts (ourselves included) feel that because it consists of only 30 large capitalization (“large cap”) U.S. companies, and neglects mid cap and small cap companies, the DJIA index does not properly represent the comprehensive state of the U.S. economy.

2. The Dow is a price-weighted index

An index that is price-weighted means that higher-priced stocks have greater weight and influence on the index compared to lower-priced stocks. On the surface this may seem logical, but the problem is that a higher-priced stock has zero correlation with a higher-value company. Put differently, a $9 stock could have a higher value than a $50 stock, but because the Dow is price-weighted, that doesn’t matter.

In a price-weighted index, a stock that increases from $90 to $100 (an 11% increase) will have the same effect on the value of the overall index as a stock that increases from $10 to $20 (a 100% increase), even though the percentage move for the lower priced stock is far greater than that of the higher-priced stock.

Put differently, a percentage change up or down in the Dow doesn’t necessarily mean that the entire market has gone up or down, or even that the Dow’s 30 companies have collectively gone up or down. The higher-priced stocks contained in the index simply exert a much greater influence on its overall direction and movement.

A prime example of why the price-weighted indexing method doesn’t make logical sense is when an index component undergoes a stock split. Prior to splitting 4-for-1 in August of 2020, Apple was the highest weighted position in the Dow at 11%, but once its stock split, it immediately had much less influence on the Dow, as it dropped to the 18th highest weighted stock in the index. While a stock split obviously does not have any influence nor change the underlying value of a company (it just lowers the share price and increases the amount of shares outstanding), it does change the influence a company has within the price-weighted index it is part of.

3. The Index Committee has only five members, and uses a vague methodology for including a stock in the Dow

Discretion is an integral part of how indices are constituted, and the Dow is certainly no exception. Unlike the S&P 500, which has a long list of eligibility requirements that some big companies can’t meet, the Dow does not have hard-and-fast rules regarding how a stock gains entry to the index. It is not governed by quantitative rules, with S&P Global subjectively stating that “A stock is typically added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors.”

Additionally, on the Dow’s Committee there are only two representatives from the Wall Street Journal and three from S&P Global. Given the cozy size of the Committee, the subjective nature of how the index is constructed, and the sheer size and financial importance of the Dow, any decisions to include or remove companies from the index impact trillions of dollars of investor funds, not to mention the potential retention of institutional investor clients by S&P Global. This can create conflicts of interest, or even opportunities for illegal activity and fraud. Don’t believe us? In September of 2020, James Yang, a member of the Index Committee, was charged with being part of an insider trading scheme leading to more than $900,000 in profits.

4. The Dow right now does not contain some of the largest and most dominant companies in the U.S. economy

Even though they represent well what has become the most dominant sector of the U.S. economy, three of the largest and most influential technology “titans” – Alphabet (formerly Google), Amazon, and Meta Platforms (formerly Facebook), are not part of the Dow. Why? See #2 above – their share prices are too high. While there is nothing fundamentally wrong with these companies, because of the Dow’s price weightings, they won’t be included in the index because they would swamp it due to their high share prices.

The only way the Dow would ever be able to accommodate any of these three stocks is if they went through a stock split, which makes zero sense, as does excluding companies from the Dow who clearly are excellent representatives of the overall United States economy just because their stock prices are too high.

The Dow has been around for 125 years, is not going anywhere, and continues to clearly be in the mind’s eye of investors. However, the four reasons listed above support our belief that it does not accurately represent the market, and just because the Dow right now is an old, familiar, and oft-quoted figure does not make it accurate, and it should not be used as a proxy for investors to gauge the health of our economy or to measure the progress (or lack thereof) of the stock market.

What’s Happening at TPW?

A big thank you and shout-out to two excellent Towerpoint Wealth clients, David Junod and Pauline Lhote, for the very generous and thoughtful sparkling wine holiday gift fromDomaine Chandon!

Now we just have to find an excuse to actually pop a bottle or two and enjoy, rather than just pretending! Cheers!

Team Photo with Chandon

Just last week, our President, Joseph Eschleman, CIMA®, earned his Certificate in Blockchain and Digital Assets (CBDA) from the Digital Assets Council of Financial Professionals.

The CBDA course is the only cryptocurrency certificate program designed specifically for financial professionals. Graduates of the program have gained the essential knowledge and understanding of blockchain and digital assets, better equipping them to provide investors the expertise and advice they need about this new and transformational asset class.

Click HERE to review exactly what Joe learned, and HERE to discuss with us how your portfolio might benefit by adding digital assets and cryptocurrency to it.

President, Joseph Eschleman, earned his Certificate in Blockchain and Digital Assets from the Digital Assets Council of Financial Professionals.
DACFP

TPW Taxes – 2022

2022 will assuredly be a different year than 2021, with income taxes no exception. Click the image below to access the 2022 Quick Tax Reference Guide, a practical resource providing a plethora of consolidated and easy-to-understand information to help you make sense of the complex and ever-evolving array of U.S. federal tax rules.

At Towerpoint Wealth, we recognize that income taxes are a “necessary evil” when helping you build and protect your wealth and net worth, but fortunately they can be planned for, managed, and oftentimes minimized!

Click HERE to read more about our “tax sensitivity” and philosophy towards reducing your obligation to Uncle Sam.

2022 Quick Tax Reference Guide

TPW News You Can Use

Useful and interesting content we read the past two weeks:

  1. Desperate No-Vaxxers Paying COVID-Positive People $150 for Dinner and COVID Infection – The Daily Beast – 1.12.2022

    A new vaccination mandate in Italy requires everyone over 50 to be vaccinated or pay a hefty fine. Some are opting to pay to get infected with COVID instead.
  2. The 2022 NFL Playoffs – Everything You Need to Know – com – 1.9.2022

    AFC, NFC, and Super Bowl 2022 schedule. Seedings. TV times, dates, locations. Find everything you need to know about the NFL playoffs here.
  3. Hillary 2024? Don’t Rule It Out – The New York Post – 1.12.2022

    Could a third time be the charm for Hillary Clinton? That’s the case made by two prominent Democrats who claim a “perfect storm” of President Biden’s plummeting job approval ratings, Vice President Kamala Harris’ own unpopularity, and the commander-in-chief’s advanced age could provide an opening for the former first lady and secretary of state.

Chart/ Infographic of the Week

After a 26.9% gain for the S&P 500 in 2021, many investors are hopeful that 2022 is another strong year for the markets. And while consistently and accurately predicting the future is next to impossible, the chart below from Morningstar gives hope to what the future may have in store for the market this year:

SP500 Chart

Quote of the Week

Staying positive and keeping a good attitude is key!

2022 Positivity Quote

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

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 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

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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Questions to Ask if Building Wealth is the Task 05.28.2021

As we sit on the eve of 2021’s Memorial Day Weekend, 73% of those in a Quinnipiac poll said their plans are similar to the ones they had pre-pandemic. The light at the end of the pandemic tunnel is getting brighter and brighter by the day!

building Wealth Questions to Ask

We’re looking at plunging COVID-19 case and death rates and widening vaccination uptake rates here in the United States, in addition to an uptake in exuberance and economic optimism by investors that has driven the stock market to all time highs. And, as is typically true during periods of market extremes, the talking heads, market strategists, investment gurus, and even your brother-in-law Frank seem to have all the answers as to why this is happening, and what lies around the corner. Our advice to you: Ignore this nonsense, and ignore them all.

Rather than become enamored by these predictions and/or fall prey to a well-articulated story spun by a seemingly well-credentialed “expert,” we encourage you to tune out this noise, and not worry nor think too much or too hard about interest rates, cryptocurrencies, inflation, China, large caps and small caps, mask mandates, or the U.S. deficit. Don’t worry about what the “new normal” means, and don’t get too worked up about “getting your share” of the possible American Jobs Plan or the American Families Plan stimulus packages (we’re purposefully not even linking to any of these themes). Instead, let’s channel our energy and attention into things that we have control over.


While we do believe you should always be ready for the unexpected, we also feel it is way more important to understand and internalize a number of foundational investing and wealth building principles. Ask yourself if you can succinctly and confidently answer the following questions:

  • Can I remain objective and rational, and recognize when you are being fearful, greedy, and emotional about your money? Your worst investment enemy is usually found by looking in the mirror. The limbic system is a wonderfully complex set of brain structures that deal with emotions, but activating your fight or flight response in reaction to fear, greed, and anger is not conducive to successful investing or successful longer-term wealth building. 
  • Do I understand that my neighbors, friends, and co-workers are perhaps confused and delusional? Not only do they probably spend too much and boast too much about their portfolio, but the chances their financial decisions are rooted in any of the principles listed here are quite low.
  • Am I trying to simply make money, or am I working to build and protect my wealth? We equate the former to gambling, and the latter to investing. While anything can happen on a daily, weekly, monthly, and even annual basis, we believe your odds of success increase significantly if you establish and follow a disciplined longer-term wealth building plan.
  • What am I doing to proactively insulate my downside from a major catastrophe during a market correction? We believe this is way more important than hitting a home run during a period of market strength. While his two rules are a bit binary, the spirit of Warren Buffett’s quote should resonate:
  • Why am I investing, and do I have a plan? For obvious reasons, it is invaluable to not only think through, articulate, and quantify the goals and vision you have for your and your family’s future, but also to have a methodology for how you attend to your personal financial decision-making. And this methodology will be different than your friend’s, neighbor’s, or co-worker’s, as we all obviously have different things that motivate us and that we ultimately want out of life. This is assuming that your friend, neighbor, or co-worker even has a plan at all.
  • Do I recognize that costs, fees, expenses, and taxes matter? At Towerpoint Wealth, we call them “necessary evils” to helping clients grow and protect their net worth. And while we can never eliminate the drag that costs, fees, expenses, and taxes creates, we certainly can work to identify, and reduce, these friction points.
  • Am I aware that saving money is the single most effective way to build my wealth and to retire? While you need to have balance between saving for tomorrow and living your life today, the capital you spend today is capital no longer available to fund your retirement. Saving money equals peace of mind.

Towerpoint Wealth Turns Four!

On May 26, 2017, with zero clients and $0 in assets under management, we officially launched Towerpoint Wealth. Classified as a “bold,” “risky,” “fearless,” and “courageous” decision by our clients and colleagues, it fortunately turned out to be a prescient and extremely positive one based on the feedback we continue to receive and strategic growth we continue to experience.

Today, we are approaching $350 million in assets under management, and continue to be thrilled to serve YOU, always striving to expand your peace of mind by helping you remove the hassle of properly coordinating your financial affairs.

What’s Happening at TPW?

The Towerpoint Wealth crew recently spent some time in a professional photo shoot with Tim Engle, of Tim Engle Photography – below is one of our favorite shots from the session.

We hold our collective noses to the grindstone at Towerpoint Wealth ~ 97% of the time. However, the culture we have built at the firm is also predicated on spending time outside the office and having fun together as a work family, which is why we regularly schedule fun teambuilding events.

We had an enjoyable “hooky afternoon” earlier this month, pedaling through midtown Sacramento on the Sacramento Brew Bike, with pit stops at Public House DowntownKupros, and The Golden Bear. A well-behaved and fun afternoon!

TPW Service Highlight – RETIREMENT – Building wealth

We only semi-jokingly say that you can retire any time you want, but will you be able to with the lifestyle and income stream you desire?

At Towerpoint Wealth, we believe that everyone deserves a secure retirement, and we stand ready to help you with a myriad of retirement-specific tools and planning considerations. The cornerstone of this process is the development of a customized retirement and financial plan using our modeling software from RightCapital(R).

Click HERE to review a sample customized RightCapital financial plan.

Additional retirement-specific services include sustainable and tax-efficient retirement income planning, “black swan” event planning and modeling, customized Social Security benefit election optimization analysis, corporate pension modeling and optimization, fixed/variable/immediate annuity analysis, and optimal-retirement-age projections.

Chart of the Week

Real estate values continue to be on fire! Click HERE to watch an excellent video in which our President, Joseph Eschleman discusses the white hot Sacramento real estate market with long-time Sacramento realtor, Brian Kassis.

And while there is no question about the tremendous price increases homeowners have experienced over the past year and a half, the chart below makes an interesting comparison between the value of the stock market (using the S&P 500 as a proxy) and the value of residential real estate (using the Case Shiller U.S. National Home Price Index as a proxy) over the past 30 years.

Understanding the importance of owning both real estate AND equities when working to build net worth, and recognizing that people seem to be more relational to the increases in the value of their home, the chart below from Visual Capitalist is an eye-opener!

In addition to home prices going up and U.S. COVID numbers going down, 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, and Michelle

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Hope for Immunity in Our Community? 03.12.2021

A year ago yesterday, on March 11, 2020, the WHO officially declared COVID-19 to be a global pandemic. Later that night, the NBA pulled the plug on two scheduled games (including the Pelicans/Kings game here in Sacramento), and then immediately suspended its season after Rudy Gobert and Donovan Mitchell both tested positive for the disease:

NBA Immunity

The battle against coronavirus has unquestionably been a difficult, painful, arduous, and seemingly constant one over the past 12 months, with the underlying question constantly on everyone’s mind: “When will we reopen and get back to normal?” And while we are by no means at the finish line yet, at Towerpoint Wealth we believe we are much closer to the end of the pandemic than we are to the beginning of it.

Why the hope? We will let the visuals support a number of key reasons for our optimism:

Huge declines in COVID-19 cases, deaths, and hospitalizations

Widespread vaccine distribution

Extreme fiscal stimulus

Measured re-opening of the economy

Pending herd immunity

At Towerpoint Wealth, we believe it is also time to look forward, without letting our guard down, with expanding optimism and appreciation for what the future holds. Understanding we will always remain pragmatic, and avoid cockeyed optimism, we do believe that the marathon is almost at its conclusion.

What’s Happening at TPW?

Our lovely Director of Operations, Lori Heppner, along with her Bella. 🙂

Our Partner, Wealth Advisor, Jonathan LaTurner, spent a few days last month in Tulum, Mexico, doing some wedding venue due diligence with his bride-to-be, Katie McDonald. Yes, we’re all very jealous of you two, walking Tulum Beach and both looking great!

TPW Service Highlight – Charitable Giving

It used to be (and still can be) as simple as writing a check and mailing it off to your favorite charity. However, simply giving cash may not be the best, nor the most beneficial or impactful, way to be philanthropic. Fortunately, today’s donors have a myriad of gifting strategies that can increase the economic benefits of their gifts, both for the charity, as well as for you.

From charitable remainder trusts, charitable lead trusts, and private foundations, to donor advised and pooled income funds, and from IRA qualified charitable distributions (QCDs) to charitable gift annuities, there are many options for those who are inclined towards philanthropy. Determining which charitable strategy is best for your personal circumstances can be challenging, and as experts in this field, we stand ready to help you better understand the advantages and disadvantages of each as we develop the most appropriate gifting strategy for you. Click HERE to talk more with us about your philanthropic intent and charitable gifting plan.

Issuance of Amended 2020 Form 1099s – Don’t File Too Early!

Have you received your 2020 Form 1099s in the mail or via email? Have you already received amendments to your original 1099s? Scroll down to read a newly-published report authored by our Director of Tax and Financial Planning, Steve Pitchford, to find out why we recommend NOT actually filing your tax return until early April!

The Frustrations of Form 1099 | It's Tax Time

Chart of the Week

It’s not unusual to see -2%, -5%, and even -10% pullbacks in the stock market. Frankly, we should *expect* them to happen, remain objective and not worry about them when they do, and have a plan and the flexibility to make tactical portfolio adjustments to take advantage of them when they occur.

Trending Today

In addition to shots and stocks, a number of trending and notable events have occurred over the past few weeks:

As always, we sincerely value our relationships and partnerships with 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 complicated place, and we are here to help you properly plan for and make sense of it.

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