I like to describe myself as a financial advisor who looks at the “whole” picture before making recommendations to my clients. Too often I see families making decisions in a vacuum without looking at the complete picture of their financial lives.
It is my goal to not let this happen to my clients. I like to provide them with education about their finances so they can potentially make the best long term financial decisions for their families.
Below you can hear Win Damon and I review this comprehensive approach to financial planning. We chat about pertinent tax and financial topics on Radio 106.1 FM WNBP.com every Tuesday morning at 8:30.
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial experience in the high net worth market.
1) Will I outlive my money? This is the number one concern for seniors and more people are worried about this than actually passing away. As a result, seniors often look for investment options that are safe and produce earnings that are sufficient to cover their living expenses. Folks living on a fixed budget are very aware of how much money they need to draw out of their investments each month to cover their bills. If this earning power is diminished due to market fluctuations than seniors fear that they will run out of money. I had to tell a woman in my office the other day that if our assumptions hold true she will run out of money by age 82. This is not what she wants to hear but it is
information I have to report, and changes will have to be made.
2) Loss of Independence. Seniors often lose their will if they do not maintain their independence. If seniors lose control of their financial lives and decision making process this will surely lead to a loss of independence. No one wants to live with their kids when they are 70 or 80 and as a result the advanced planning becomes even more vital.
3) Beware the unscrupulous financial advisor. This can happen on many levels. First, many advisors are more interested in meeting sales goals or selling a product that has a higher commission. When this happens, seniors can get locked in to investments that were not best for them in the first place. I recommend the senior has a child or personal representative with them when meeting with an advisor and to have all their questions ready ahead of time. They should also interview the advisor him/herself and really learn about their business and where they work best.
Second, the scam artists are in full gear when it comes to internet and seniors. I have 2 clients who have parents who have been scammed sending their personal banking information to someone in Nigeria or Kenya. These cases happen far too often. Seniors can also fall victim to ponzi schemes, or fall victim to abuse of power of attorney to transact business that is not in the seniors best interest.
4) How to battle the rising cost of healthcare. How can seniors get affordable and quality healthcare? Modern medicine has made some tremendous strides and the human race is living longer and longer. As people age we are more likely to need health care. Seniors who have set up their plans in advance often include long term care policies to help protect with the potential cost of in home care, assisted living,
or nursing home care.
Listen below as Stu discusses this topic with Win Damon of WNBP 106.1 FM and wnbp.com
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial experience in the high net worth market.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Stock investing involves risk including loss of principal.
Securities offered through LPL Financial, Member FINRA/SIPC.
Now that the election is behind us we can focus on some of the positive aspects of our economy and how to improve Gross Domestic Product (GDP) and jobs in both in the short and long term. In the fall I blogged about the fact we ARE better off now than we were in 2008. One area that is definitely on the move is the housing market, recovering from a recession and unscrupulous dealings on Wall Street involving the sub-prime mortgage market.
There was a time when home ownership was the American Dream and it still is for some. With today’s low rates families can get into mortgages and buy properties that are very affordable. America was losing 750,000 jobs a month in 2008 and began adding jobs monthly since the spring of 2009. It has taken a little time to take hold, but the housing market as a whole is certainly on the way up and is expected to add 1/2 % to GDP in 2013. Here in Newburyport values of homes have improved at a rate higher then the national average and other major markets are improving modestly, while some like Las Vegas and Tampa, FL where homes lost ~50% will take longer to improve.
The low mortgage rates are getting real estate investors back in the game. The combination of low rates and low values make purchasing real estate and holding it for the long term a very viable option. Over 23 years I have worked closely with many personal real estate investors who came to me and said, for example: “Stu, I am going to buy these 2 3-familiy homes in (insert city); I will improve them and flip them in less than 1 year. I expect to make a profit of (Insert Profit) on the deal.” Many of these people failed for so many different reasons. The new real estate investor today is buying and holding the investment for the long term and collecting rent instead of flipping the property.
Today, builders of homes are the most optimistic they have been since the peak of the real estate market in 2006. Many are looking to hire new construction workers and will do so in 2013. Consumer confidence rose again in October (the highest this year) and the improving job market is the leading indicator. Housing will continue to rise as long jobs are being created.
If you are a homeowner you may also be able to benefit from the low rates by looking at your debt and refinancing your home. There has never been a better time to do so, and it is great that entire generations of families are able to refinance their homes at very low fixed rates. Get the answers you need as it pertains to your particular situation.
Listen below to hear Win Damon and I chat about this topic on WNBP Radio 106.1 FM and wnbp.com
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial experience in the high net worth market.
Welcome to the Newburyport Entrepreneur – CPA on the Street. In this series I travel around town and visit with other entrepreneurs and small business owners to find out if they love Newburyport as much as I do! The goal of the series is to provide educational and fun information directly from the business owners themselves.
Mike Pollard came to my home to clean my chimneys recently. He came highly recommended by other Newburyport families. What a nice man! He and his partner did a great job and explained exactly what they were doing and how they were going to do it. We got to talking and Mike mentioned this is his last year and he will be selling his business after the winter. If you know anyone who would like to buy a great local business please reach out anytime. Mike is glad to stay on board and help the transition run smoothly!
With more than 23 years of experience as a credentialed tax professional, Stu Steinberg, CPA, MBA brings a broad depth of knowledge to his work. He has worked with small business entrepreneurs for many years helping them plan their businesses more effectively. He can be reached at stu@eaglerockfinancial.net or 978-864-9581 anytime.
I remember it well. It was October 2007, and the stock market was at a high point. By the time we had reached March of 2009 the market had lost 52.9% of its value. We were losing close to $750,000 in jobs a month. There was legitimate panic in families of all shapes and sizes, including the so called 1% families. I know this to be true because as a CPA and financial advisor, I have chosen my life’s work to consult with families each and every day, and I found myself in the trenches like never before.
Most of my clients are hearty Northeasterners living in New York and New England, in addition to the locals who have escaped to points further south. Many of the 35–55 year olds I work with are caring for elderly parents and raising dependent children. I see a cross section of educated professionals who work in many fields including technology, healthcare, education, and small business entrepreneurship. I have many clients like the electrician or the plumber next door who are raising families and paying their bills and investing for the long term.
Client contact was at an all-time high during the winter of 2008-2009.
“I am going to cash all my accounts in and put the money in my safe” was a common comment.
“I am never buying the stock market again” was another.
“How am I ever going to be able to retire or educate my kids” was a question I heard all too much.
Most of the advice I gave was to “hang in there” and “things will get better”. I made sure that the mix of investments, (i.e. the client’s financial plan), was still best for the particular individual situation. I did a lot of handholding, and I educated, consulted and advised at a rapid rate. The panic everywhere was real and the media fanned the flames of anxiety. I stayed steady. I wanted to help my clients. This was the darkest time of their financial lives.
Now let’s fast forward to today. The economy and taxes are still a concern. We are not where we need to be. But the recovery is happening, slowly but surely. And guess what? The rampant fear is gone. Businesses of all sizes are doing better. Most of the businesses I consult with or patronize are all doing better than they were in late 2008 or early 2009. I know this because I ask the owners or the managers themselves. I get their real world opinions and it helps me become a more informed advisor. Our economy has now had 2 ½ straight years of monthly job gains. In 3 ½ short years the market has gained back almost all of its losses. Clients turned to me to help chart a steady course for them during the toughest financial market since the great depression and the most embarrassing political time of America’s existence, with approval ratings for Congress sliding down to about 10%, a 38 year low in that poll!
I get rewarded every day in my job. I feel blessed every day to work in a field where I can truly make a difference in the lives of every day Americans.
Listen below as Win Damon and I review this very topic on WNBP.com FM radio 106.1 in Newburyport
The opinions expressed in this material do not necessarily reflect the views of LPL Financial and are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results.
EAGLEROCK FINANCIAL IS PLEASED TO INTRODUCE A SPECIAL PRESENTATION
“Invest for Life: A road map for your financial future”
Thursday October 18, 2012 at 1 p.m.
As Lao Tzu said “A journey of a thousand miles begins with one step” Planning your financial future can take many twists and turns. You are the navigator of your future financial success. There are many steps in securing your future financial future.
** Learn how to Set Goals
** Working with the right financial advisor
** Mapping a personalized strategy
**Checking your progress through benchmarking and personal goals
**Selecting investment types
**Understanding assets and classes
**Principles of investing
Stuart Steinberg of Eaglerock Financial, Inc has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing in mutual funds involves risk, including possible loss of principal
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company.
Securities Offered through LPL Financial, Member FINRA/SIPC
I wish I had a dime for every time someone called me with a hot tip or a new investment idea. Boy I certainly would be a rich man. I am glad I did not take all that advice for sure. Every single investor is different and has varying needs, wants, and desires. Here are some common myths about money and investing:
1) You need a lot of money to invest. It is actually the opposite. The sooner you start with a disciplined, long term, financial strategy, the better. I always say: “Start with $50/month for a while. As life progresses, and your career advances, your monthly savings will increase as well. Your long term plan will be off and running!
2) You need to find a more complex investment strategy to beat the market. While some portfolios need to be more complex and further diversified because of the large size of the investment, although no strategy assures success or protects against loss, often times it is the simple buy monthly and hold, value oriented strategy that does the best over time. Yes, I know this is boring. But some of the best long term strategies I have seen over the years are the simplest, even if the personal or business assets get into the millions! Sometimes it is best to remain simple, and truly understand the investments you are making.
3) You need to shoot for aggressive “home run” investments to get to where you want to be. Again the goal here is really the opposite. Let’s say your friend at work has a great tip on an investment. You decide to invest $100,000, the entire amount of your bank account! Of course, the investment does not work out and you lose ½ and sell the asset netting $50,000. A loss of 50%! What will it take now to get back to where you started? A 100% gain! This of course will be very challenging to reach in many situations. So instead of trying to hit a home run, it is often best to hit many quality singles and build for the long term.
4) You need to study the market constantly in order to beat the market. It is best to have a basic understanding of the various markets you are investing in, and to know what they are doing. But it is often best to stop there. At this point, I would rather you study yourself, and what makes you tick. Study your needs and wants and desires and see how they all fit in with your big picture financial plan. It is important to not get swallowed up in the latest stock or tip or what the media says. With the help of a trusted advisor you may able to take some or all of the emotion out of the actual investment and really benefit from the understanding of the process.
5) You need to do what your friends, family, and co-workers dowith their money. Believe it or not, this is what many people do. They follow the herd and do whatever everyone else is doing. It is obviously not the recommended path for anyone to take. It is the foundation of emotional investing, and it is also commonly seen in certain consumer behavior as well as in politics. In dealing with the public and their money for over 23 years, I can truly say that no 2 clients are the same. Even the best of friends or brothers and sisters!
6) You NEED to own a home because renting is like throwing money away. Rent is like other household money you spend like gas, food, and utilities that gets used up over time but is necessary for basic living. You would not consider those expenses as throw away, would you? Buying a home to live in is certainly an investment, but I like to think of it as my home as opposed to a certain investment that needs to make money. Besides, with a traditional 30 year fixed rate at 4% on a $300,000 mortgage. After 5 years you will have made ~$86,000 in payments yet still owe ~$271,000 on the mortgage. Many would consider that throwing away ~$57,000 in interest.
Listen below to hear Win Damon and I review this very topic on WNBP Radio 1450 and wnbp.com. Win and I have educational financial chats every Tuesaday morning at 8:30!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Stock investing involves risk including loss of principal.
Securities Offered through LPL Financial, Member FINRA/SIPC
STUART STEINBERG OF EAGLEROCK FINANCIAL IS PROUD TO INTRODUCE A SPECIAL PRESENTATION:
“Five Tips for Surviving Market Volatility Presentation”
Thursday October 4, 2012 at 1 p.m.
There are many factors that contribute to market volatility including consumer confidence, inflation, credit rates, oil prices, and even corporate earnings. How severe will these factors be? How long will they last? How much of an impact will this have in your financial planning? In this presentation you will:
** Learn about the factors that contribute to market fluctuations and to put the volatility in better perspective
** Learn the importance of taking a long-term approach to your financial plan
** Implement a diversified investment strategy
** Maintain realistic expectations regarding your investments and your plan
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial specialist in the high net worth market.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Securities Offered through LPL Financial, Member FINRA/SIPC
The following commentary exresses the political view of the author and in no way represents the views of LPL Financial. The assumptions made are based on the proposed 2013 budget and tax provisions, which have yet to be approved by Congress and are subject to change.
The Supreme Court of the United States of America has upheld the health care law. The provision in the law that requires people without insurance to purchase insurance or pay a fee was deemed constitutional under the power of Congress. I hear a ton of fallacies from the American public, mostly because people do not understand the complexities of the law or how it will impact them specifically. Also, many folks are simply moaning about the liberal president and how this awful law will destroy America. Well, of course it will not, despite the efforts of Republicans who have voted 33 times to repeal the law, wasting some $50 million (and counting) of taxpayer funds. I am fairly certain that many low income taxpayers who are against Obamacare do not even realize that they will be helped by the provisions of the law.
But what does this all mean for you? Let’s review some of the key provisions of the Affordable Care Act, and its effect on your particular situation:
1) Some changes already went into effect in 2011 and 2012, most importantly that children can now stay on their parents plan until they are 26 and that insurance companies can no longer deny insurance to children who have pre-existing conditions. Tax credits are available to small businesses to help cover the cost of the premiums.
2) In 2013 many of the big changes will take effect. Upper income earners will be the ones hit the hardest. If you are single and make more than $200,000 or married and make more than $250,000, you will pay a .9% additional Medicare surtax. That translates into $1800 for the single taxpayer and $2250 for the married taxpayer. If your income doubles, than the tax is doubled. Self-employed taxpayers will take the hit here too. A couple making $500,000 will pay $4500 extra in tax for 2013.
3) A 3.8% Medicare surtax on unearned income will be imposed in 2013. Income includes interest, dividends, capital gains, annuities, and passive income from rental properties. The same income limits apply, $200,000 for singles and $250,000 for married tax payers. So for example, let’s say a married couple with $400,000 modified Income has a dividend form general Electric stock totaling $20,000. This family will pay an extra $760 in the Medicare surtax.
4) Other items which will take effect in 2013 include the limitation on the deduction for medical expenses for filers under 65 years old, a 2.3% tax on certain medical devices, payins to flexible spending accounts will be capped at $2500/year, and the retiree drug plan that is federally subsidized will not be tax deductible
5) In 2014, Medicaid will expand to cover those families that are at the 133% poverty line, equal to a salary of $30,657 for a family of four. This is sure to help out these families in need in a tremendous way. Insurance companies will have to cover everyone in 2014, regardless of race, color, creed, health history, or religious preference. Also, every citizen is required to have insurance or pay a fine. The penalty will be capped for families in 2014 at $285, although the cap does rise sharply by 2016 to $2085/family. Families making less than $88,000 will get some tax credits to help them offset the cost of the insurance. Employers take a hit in 2014 also, especially the ones with more than 50 employees and no health plan. The fine is $2000/employee
6) By 2018, a 40% excise tax will be levied on the insurer on policies with premiums over $10,200 for individuals or $27,500 for family coverage (indexed for inflation).
The bottom line here is this: The IRS’s role in health care is only going to get larger. The government will attempt to pay for the reform by potential savings in Medicare and Medicaid, and future taxes and fees that are yet to be determined. But one thing still holds true: prevention is the key. If we can get people to be healthier and to see a doctor more frequently, we can hopefully prevent the chronic care that is so costly. In 2009, 7 out of 10 deaths were caused by chronic conditions such as obesity, poor diet, physical inactivity, and tobacco use. If we can help these individuals proactively, we can potentially help them live a happy and healthy life, and lower our long term health care costs as a nation along the way!
Listen below to WIn Damon and Stu review this very topic on radio 1450 AM Newburyport and WNBP.com every Tuesday morning at 8:30 AM.
Stuart Steinberg, CPA, MBA has been dealing with families and their money issues since 1988. He can be reached at 55 Pleasant Street Newburyport and at (978)864-9581 and stu@eaglerockfinancial.net
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.
Securities Offered through LPL Financial, Member FINRA/SIPC
EAGLEROCK FINANCIAL IS PLEASED TO INTRODUCE A SPECIAL PRESENTATION
“IT’S ALWAYS SOMETHING – FROM CRISIS TO CONFIDENCE” (Tracking #681605)
You can always find reasons NOT to invest. However there is always something happening, some trends for the future that you may want to invest in. All part of your own particular investment program
** Learn strategies to diverse globally.
** Learn the long term persepctive needed for long term investing
** Innovation can drive markets and the effect on your long term planning
Stuart Steinberg of Eaglerock Financial, Inc has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment.
WHEN: Wednesday June 6th at 10:00 A.M est and Thursday June 7th at 1:00 est
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing in mutual funds involves risk, including possible loss of principal.
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company.
Securities Offered through LPL Financial, Member FINRA/SIPC
I like to describe myself as a financial advisor who looks at the “whole” picture before making recommendations to my clients. Too often I see families making decisions in a vacuum without looking at the complete picture of their financial lives.
