Sounded like a bad Hollywood
movie script, but sadly it wasn’t.
Despite the market’s resilience
(for now), it was enough to test the resolve of even the most optimistic among
us. I’m sure you received calls from nervous clients asking if it was
time to take a more defensive position. See what’s keeping your peers and their
clients up at night.
In these extraordinarily volatile times, several advisors who participate in
our PR Light
program shared common sense wisdom about maintaining one’s financial
cool during unsettling times. We hope you find their insights comforting and
enlightening:
DR. GUY BAKER, PH.D. (Wealth
Teams Alliance, Irvine, CA) told Forbes that not all
assets are created equal, especially when calculating your net worth. He
also counseled Yahoo
Finance readers to prioritize
their credit card debt during their post-Holiday hangover and told Moneywise
readers to brace for “higher tax rates, higher interest rates and slower
economic growth during the early years of the Biden administration as the Fed
acts to offset rising inflation.”
*** Contact us here if
you’d like to learn more about our PR Light program. Give us one hour per week
of your time, and you can 10X your profile.
Prepping for a new Administration
At a time when commercial real estate seems at the abyss, BLAKE
CHRISTIAN, senior tax partner of HCVT, LLP (Long, Beach, CA) believes
the Opportunity Zone (OZ) program may have a unique role in leading the
comeback of businesses in disadvantaged communities. It may also reinvigorate commercial
real estate overall. Christian told National Real Estate Investor that
both President-elect Biden and Vice President-elect Kamala Harris have praised
the Opportunity Zone program as an economic development tool and that they’ll
give it even more support as greater transparency and accountability is being built
into the program.
“I’ve been doing this for 40 years and, and OZ is the most flexible and
impactful economic development program that I’ve seen in my career,” observed Christian.
“It works really well for real estate, it’s way more flexible than a 1031 exchange and
it’s fantastic for operating businesses.”
Part of the power of Opportunity Zones is that they’re not restricted to real
estate. “A third of my opportunity zone business is on operating businesses,” Christian
told The New York Times recently. “They’re
accelerating quicker than real estate projects at this point.” Practicing what
he preaches, Christian is creating an OZ fund to finance the expansion of a
manufacturing business, of which he is a co-owner, that converts shipping
containers into housing for homeless and low-income earners.
In
these uncertain economic times, KAREN KOCH, a partner of Bedford Cost Segregation,
(Louisville, KY) told The
Tax Adviser that research and development (R&D)
tax credits can be highly effective way for all kinds of businesses to replenish
valuable dollars spent on new and innovative products or processes. Koch
said many companies leave thousands of potential R&D credits on the table
because they think they must create breakthrough innovations from scratch. In
reality, Koch said they can earn valuable R&D credits simply by properly documenting
improvement they’ve made in their products or internal processes.
Speaking of
processes, KYLE WALTERS (L&H CPAs, Dallas, TX) shared great tips for
cutting through “analysis
paralysis” and “expanding
the power of your network” in separate recent columns for
Accounting Today.
Finally, RANDY FOX, founder of the advanced planning firm,
Two Hawks Consulting, (Skokie, IL) told WealthManagement.com why he was
committed to raising $10 billion for charity. Hint: It’s
about better educating advisors; not about finding big money donors.
Conclusion
My dad always told me things are never as bad as they seem when the chips are
down, just as things are never as good as they seem when you’re on a roll. There
are plenty of ways to prosper in good times and bad. As financier George Soros said:
“Markets are
constantly in a state of uncertainty and flux. Money is made by discounting the
obvious and betting on the unexpected.”
There will be plenty of time for that in 2021. While you’re at it, give
your folks a call. They’d love to hear from you and chances are they’re right.
What’s keeping your clients
(and peers) up at night? See our 2021 CPA/Wealth Advisor Confidence Survey™.
#practicemanagement,
#thought leadership, #wisdom, #blakechristian, #GuyBaker, #thepersonalcfo,
@BedfordCostSeg, Randyfox, wealthadvisorconfidence
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