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New on the Pod
Ben Carlson spoke with Nick Maggiulli, author and blogger at Of Dollars and Data, to discuss the growing popularity of tax-aware long/short strategies and when they actually make sense for investors. They break down tax-loss harvesting, the costs and risks that come with leverage and shorting, and why tax deferral shouldn’t be confused with tax avoidance. Plus, why investors hate paying taxes more than they like making money, when minimizing taxes can actually hurt your financial plan, the tradeoff between maximizing wealth and actually using it, and why the best strategy is often situational rather than one-size-fits-all. (Listen)
Good Stuff This Week
Smodic notes that advisors have three obligations to their clients loyalty, care and following instructions. The challenge arises when there conflicts between these obligations. The ultimate decision is whether the advisor can continue the relationship or whether the conflict rises to the level of having to resign.
Gif by schittscreek on Giphy
One of the biggest hurdles in client acquisition is actually convincing a prospect that they need a financial advisor. In the best case they come to this conclusion on their own. Appel in this piece looks at the many circumstances under which hiring an advisor makes sense. The challenge is getting someone to hire an advisor when they can, not when they have to.
The Rest of the Story
Savvy Wealth raises $100 million. (WealthManagement)
Four myths about women investors. (Vanguard)
The years before required minimum distributions are an idea time for Roth conversions. (Morningstar)
Liquidity without liquidation: tax-efficient withdrawals from tax-aware strategies. (SSRN)
Living poor to die rich. (Of Dollars and Data)
On the goal of being ‘Whole Foods rich.’ (Evan Armstrong)
On the dangers of chasing peak financial (or health) optimization. (Jordan Grumet)
Living an analog life. (The Retired Alchemist)