In over 25 years of monitoring financial markets, the volatile emotions generated by taxes have never failed to astonish, particularly the overwrought responses the mere discussion of a change in rates can generate.
It’s a natural fact that anyone who earns a dollar wants to keep as much of that dollar as possible. I do get lost, however, when people argue that they are making investment decisions based on the potential of higher rates — emphasis on the word “potential.”
A current investment decision ought to be made on current facts. One should always model and prepare for changes to the current reality, but the idea of moving money today based on an unknown reality seems a clear abrogation of duties.
Yet whenever discussion of an increased tax rate is followed by the inevitable pronouncements of investors making immediate allocation decisions based on the latest report, I’m reminded of a salient point Warren Buffett made in 2012. Suppose an investor you trust and admire comes to you with an investment idea. Would your reply possibly be: “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I’d rather leave the money in my savings account, earning a quarter of 1 percent.”
My point being: Prepare for tomorrow, but don’t cost yourself or your clients money today.
Beyond content generation and execution, firms that can offer answers around governance, transparency, and supervision are set to pull ahead in the next leg of the AI race.
The experienced advisory teams join Ameriprise and Janney as the race for experienced talent continues.
Rising drug and outpatient costs are pushing plan members to demand more financial guidance and most insurers are falling short.
Additional investment and partnership will see joint development of wealth management, brokerage and digital asset platforms.
FINRA's proposed rule filing would create a new 10-day fraud delay and nearly triple the maximum hold period for exploited senior investors.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
