HB Clients Featured in Philly Inquirer, Advisor News and Accounting Today

From stock market forecasts, to the dollar’s impact on emerging markets, to getting your firm to the next level of growth, HB clients educated the national financial media last week.

With respect to the dollar’s impact on emerging markets, our client Matt Topley (@MattTopley), chief investment officer of Valley Forge, PA-based Fortis Wealth told the Philadelphia Inquirer that the greenback’s strength has hurt emerging markets where the majority of debt is dollar-denominated. As a result, emerging market stock markets sold off and are extremely cheap, explained Topley. “One fund we use for clients and which is my biggest position personally is DFA Emerging Market Value” (symbol: DFEVX), The fund trades at below book value, which is a buying opportunity,” Topley added.  The key takeaway is that if you think the president and other factors will push down the dollar, then this may be a point in time to start buying emerging markets.

Meanwhile, HB clients Bill Schultheis and James Nevers (Soundmark Wealth Management) told Advisor News last week that “There is nothing on the horizon that leads us to believe a bear market is imminent.” Soundmark’s forecast calls for muted economic global growth on the horizon as they explained in an Advisor News piece entitled Are Investors Losing Faith In The Stock Market?

Kirkland, Washington-based Soundmark expects common stocks to return somewhere in the 5 percent-to-7 percent range. “We have incorporated these conservative estimates into our clients' projections,” they added.

Meanwhile, our client Kyle Walters (@AtlasCFO), a partner at Dallas-based L&H CPAs and Advisors just published his latest guest column in Accounting Today (Are you committed to being a better firm or just interested?).

This is the time of year that CPA firms like to have their offsite retreats in which great ideas are bandied about, but rarely implemented upon returning to the office. To break through this inertia, Walters wrote that you have to set a realistic timeline for implementing change. “Start with a bite-size chunk that you can commit to implementing in the next 90 days—a change that will have a big impact on your firm and the value you’re delivering to clients. Call those your ‘90-day rocks.’ Don’t do five things—just do one.’”

Conclusion

Whether investing or overseeing a professional service firm, the winners today are those that set realistic expectations and always follow through on what they promise. That’s what our highest performing clients have figured out—and the media is taking notice. As Warren Buffet famously said, “Price is what you pay. Value is what you get.”

TAGS:  Soundmark Wealth, James Nevers, Bill Schultheis, Advisor News, Kyle Walters, Accounting Today, L&H CPAs, Warren Buffet

HB Clients Rock NYC Accounting & Finance Show

As the old saying goes, “If you want something done, ask a busy person to do it.” Three of our most peripatetic clients—Molly Grubb, Anthony Glomski and Cecil Nazareth--took time out of their hectic schedules to share their expertise with 2,000 attendees at the  Accounting & Finance Show last week at New York City’s Javits Convention Center.

Molly Grubb, exit planning expert and founder of Columbus, Ohio-based Grubb Wealth, revealed secrets from her forthcoming book Build Your Dynasty. After watching her family’s success evaporate due to no plan or system, she built a system that is easily customizable to any CEO to help that owner define their purpose, simplify their life, gain more control over their business and multiply their success.

Anthony Glomski, a former Big Four CPA and founder of LA-based AG Asset Advisory, shared tips for CPAs interested in evolving from tax preparer to personal CFO. Author of the new book Liquidity and You: A Personal Guide for Tech and Business Entrepreneurs Approaching an Exit, Glomski warned attendees that IBM Watson’s alliance with H&R Block is not necessarily going to put tax preparers out of business, “but it’s definitely a sign of things to come and you need to adjust fast.” Providing investment advice alone is not enough Glomski explained, adding that you need a process that includes advanced planning and relationship management capabilities.

Anthony Glomski at NYC Accounting & Finance Show

Cecil Nazareth, CPA, Fordham University adjunct professor and co-founder of Nazareth CPAs with three offices in the NYC tristate area, is the author of the new book, International Tax & Compliance Handbook. Using his unique lens as a global citizen, practitioner, teacher and coach, Nazareth draws on a myriad of practical examples and case studies he has collected from years in the trenches with clients, colleagues and students. When it comes to investing and doing business across borders, Nazareth said most of the reporting and compliance mistakes made by practitioners and their clients go under the heading of “they don’t know what they don’t know.” But ignorance isn’t bliss, when penalties and interest start piling up on you, Nazareth cautioned.

Empathy and generosity 
In addition to being HB clients, Molly, Anthony and Cecil each worked through tremendous hardships growing up and have a genuine desire to help others make smart decisions about their wealth.

Cecil came to the U.S. from India at age 18 with no job and less than $100 in his pocket. He spent several years driving cabs and waiting tables until he finally landed a job at an accounting firm. Anthony’s father had little job security and his mom had health issues that prevented her from working. Further, his high school guidance counselor told him he wasn’t smart enough to go to college—after his parents told him they didn’t have enough money. Molly saw her family’s business go under—while her sister battled a life-threatening illness--which forced them into bankruptcy and foreclosure.

Conclusion

“The fear of scarcity always loomed large in our house,” recalled Glomski. “So, I responded in two ways: (1) I went out and made money, and (2) I learned as much as I possibly could about preserving the money I made. I never ever wanted to feel that sense of scarcity again.”
 

As Molly, Cecil and Anthony have demonstrated again and again, empathy is one of the most valuable skills that successful wealth advisors have, no matter how many credentials they may have after their names. Read their books. Get inspired. Share your story with us.

TAGS:  NYC Accounting & Finance Show, Anthony Glomski, AG Asset Advisory, Cecil Nazareth, Nazareth CPAs, Molly Grubb, Grubb Wealth

Estate Planning Myths and Misconceptions

Now is the time of year when extended families get together at the beach, lake, mountains or national parks. While the focus is on meals, family bonding and R&R, it’s also a good time to get the ball moving about those sensitive estate planning issues.

According to my friend Valentino Sabuco, founder of The Financial Awareness Foundation, half of the U.S. adult population has NO financial, estate or gift plan. As most of you know, estate planning is not just for the wealthy or elderly. It’s essential for anyone who wants to make their own decisions about their assets and their heirs—rather than the government making it for them.

I don’t have to remind you that estate planning is not only a touchy subject; it’s complex and often misunderstood. In response, several of our clients have been speaking to the national media recently about estate planning myths and misconceptions that frequently trip successful families up.

With the significant increase in the lifetime exemption under the 2017 tax act ($11.2 million per spouse in 2018), our client, Blake Christian, CPA said even many affluent taxpayers do not believe estate planning is truly necessary. “Nothing could be further from the truth,” said Christian, a partner of HCVT in Long Beach, CA. “Even for the 99 percent who will never pay estate tax, estate planning is very necessary for numerous reasons, including:

1) Avoiding the probate process.
2) Asset protection.
3) Simplifying mixed-family complexities associated with divorce, blended families and common-law marriage situations.
4) Titling assets properly can also make the difference between getting a full or partial step-up in an asset's tax basis for the heirs.

5) Making sure your assets are distributed correctly to provide your heirs with sufficient after-tax income after you are gone,” added Christian. 

According to our client, Mark A. Rioboli, CFP®, CFS, director of wealth management at Wayne, PA-based Independence Advisors, “The misconception is that if you have a will, it controls everything. In reality, it only controls the assets in your own name.” 

*** NOTE: HB clients Anthony Glosmki, Molly Grubb and I will be speaking about advanced planning topics at the Accounting & Finance Show in NYC this week at the Javits Center. More than 2,000 attendees and 200 speakers are expected. Stop by if you are in the Big Apple.

Our client, James Nevers, an advisor at Soundmark Wealth near Seattle, WA agreed. He said it’s a common mistake to believe that if you have a Will, you don’t need to worry about your beneficiary designations on retirement accounts. “I manage several 401(k) plans for medical groups. When I provide participant education to their staffs, I tell them the same story every time we meet – ‘If your primary beneficiary designation on your retirement accounts says your ex-spouse, then all your hard-earned savings in your 401(k) is coming to your ex-spouse, regardless of what your Will states.’”

According to Nevers, you should also check to see if a minor child is listed as a beneficiary. “I don’t know many 8 year-olds who can responsibly manage $100,000. Nor do I know anyone who wants their ex-spouse to get one more penny than they’ve already received,” added Nevers. “Beneficiary designations supersede your will – simple as that.  I advise everyone to consult with their estate attorney about who they should designate, whether it is their spouse, a trust, or another individual.”

Conclusion
As Benjamin Franklin famously said, "Failing to plan is planning to fail." Don’t let that happen to you and your clients. Hope to see you at the Accounting & Finance Show on July 11th and 12th.

TAGS:  Mark Rioboli, Independence Advisors, Blake Christian, HCVT, James Nevers, Soundmark Wealth, NYC Accounting & Finance Show, Valentino Sabuco, The Financial Awareness Foundation