Leading the Way: JB’s Journey to Director of Operations

/in /by

Since joining the Warren Street team in April 2023, Jennifer “JB” Battles has quickly proven herself as an invaluable asset to the team, leading with dedication, innovation, and a strong focus on operational excellence. Her journey to becoming our new Director of Operations has been nothing short of impressive, and we’re excited to see her continue making an impact in this role. For those who missed JB’s “Meet the Team” blog last year, be sure to check it out to learn more about her background and the strengths she brings to the team.

In this interview, we take a deep dive into JB’s vision for the future, her goals as Director of Operations, and how she plans to enhance the client experience. Get ready to be inspired by her leadership journey and her commitment to driving positive change for our clients and our team!

What are you most excited about in this new role? 

How has your experience so far prepared you for this new role? What key lessons have you learned along the way?

I bring experience from a wide range of businesses, all with one thing in common: people. They are at the heart of everything we do. The experience of satisfying clients and creating a work atmosphere conducive to growth has best prepared me for this new role. These simple truths have shaped me and continue to influence how I lead: treat others the way you’d like to be treated, leave people better than you found them, and always leave them with a smile.

As Director of Operations, what are your top priorities for the year?

Continue to cultivate a team atmosphere. Build a cross-functional team by providing members with opportunities to expand their reach. Optimize operational processes.

How do you see your role impacting the client experience, and what changes do you plan to implement to enhance it?

As Director of Operations, I have the opportunity to enhance our client experience by implementing changes that lead to seamless onboarding, efficient client service, and strengthened client retention. Our organization is growing, our team is growing, but our core values remain the same.

What does “clients’ best interest first” mean to you, and how do you ensure that mindset is reflected in operations?

Putting a client’s best interest first means stepping into their shoes, giving them the floor, and allowing them to be heard. Our clients deserve our very best, so we can meet their needs exactly where they are each time we serve them.

What advice would you give to others looking to grow in their careers and take on leadership roles?

Learn, listen, and lean in. When you have the opportunity to learn from others—take it. If someone with more experience is speaking—listen. When a project seems difficult or out of reach—lean in.

Please join us in congratulating JB on this well-deserved promotion, and we wish her the very best as she leads us into an even brighter future!

Jennifer La

Jennifer La

Director of Sales & Marketing, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Your 2024 Year-End Planning Guide

/in , , , /by

As the year winds down, the hustle and bustle of the season can leave little room for financial reflection. But taking some time to review your finances now can help you close out the year on a strong note—and get your new year off to a great start. 

Here are some key items to consider before December 31 rolls around:

Unstick Your Cash … and Put It to Work

We all try to make the best decisions we can around money, but we’re not perfect. Despite our best efforts, we can miss things from time to time. 

Consider the “flypaper effect.” Jason Zweig, of The Wall Street Journal, uses the term to describe how money has a tendency to stick where it lands, even when we had other ideas for where it should end up. For many, this can happen when rolling over their employer-sponsored 401(k) retirement account into a personal IRA. According to research from Vanguard, nearly a third of savers who transferred their 401(k) balances into IRAs in 2015 still had those funds sitting in cash seven years later. This inertia can be costly. Vanguard estimates that cash-heavy IRAs cost Americans $172 billion annually in missed growth opportunities. 

As the end of the year approaches, take some time to review all your accounts to make sure all your savings have landed where you wanted them. 

It’s also okay—and in fact, often wise—to keep some money in cash, such as an emergency fund. But even these accounts are worth a review. If cash in your emergency fund is just sitting in a basic, zero-interest checking account, consider placing it in a money market, high-yield savings, or similar FDIC-backed account. There, the money should remain safe and readily accessible, while still offering a bit of interest income—especially while interest rates are still relatively high. 

Stay Updated on Retirement Account Rules

Typically, any required minimum distributions (RMDs) from your own or an inherited retirement account are due by year-end—so there’s no time to waste if you’ve not yet made any RMDs due. However, there are new rules for 2024 that could delay, or even eliminate, the need to make an RMD. As always, we recommend consulting with a tax specialist before taking any tax-planning action.

  • Roth 401(k) changes: Starting in 2024, RMDs are no longer mandatory for Roth 401(k) accounts. This was already true of Roth IRAs. If you don’t need income from your Roth 401(k) this year, leave it alone and let your savings continue to grow tax-free for as long as you like.
  • New spousal IRA benefits: If a younger spouse with an IRA passes away, the surviving spouse can now delay RMDs until the deceased would have turned 73. This allows for more years of tax-deferred growth, which can make a big difference in retirement savings over time.
  • RMD age increasing: For younger investors looking ahead, the age for RMDs will rise to 75 in 2033, again providing more time for tax-deferred growth as well as more flexibility in withdrawal strategies.

Maximize Your Gifts to Charity with Higher QCD Limits

December is a peak time for charitable giving. It’s the holidays, after all, and giving offers a meaningful way to support causes you care about while potentially reducing your 2024 tax bill. 

If you have RMDs due, one way to participate in tax-wise year-end giving is to replace some or all of your RMDs with qualified charitable distributions (QCDs) from your IRA directly to charity. This year, you may give up to $105,000 in QCDs, according to the IRS. This in turn, can lower or eliminate your RMDs, which would otherwise have been taxed at ordinary income rates. Lowering your reportable income may also help you avoid being pushed into a higher income tax bracket or subject to other tax deduction phaseouts.

Important Date Reminders

Some best practices are perennial, including keeping an eye on important dates. Naturally, there are a number of deadlines associated with year-end. For those who are itemizing deductions, it’s the deadline for 2024 tax-deductible charitable contributions. It’s also the last day you can fund your 401(k). You can contribute up to $23,000 in a 401(k) this year, and next year that limit increases to $23,500. Catch-up contributions for 401(k)s for individuals aged 50 and older is $7,500 for 2024. It will remain that way in 2025, but there will also be a higher catch-up contribution limit of $11,250 for those aged 60 through 63. 

IRAs and health savings accounts allow you to make 2024 contributions up until April 15, 2025. You’ve got a little bit of time, but the sooner you invest, the quicker you can put your money to work and take advantage of the power of compounding returns.

Rest and Recharge

While financial planning is essential, don’t overlook the importance of self-care. Amid the year-end flurry, a good night’s sleep might be one of the best investments you can make in your overall well-being, especially during the holidays. In fact, research suggests that better sleep health can reduce loneliness, spark stronger social connections, and foster positive emotional experiences.

And if it’s not better sleep, please take some time for yourself, whether it’s curling up with a good book, having dinner with friends, or taking a long walk with the dog. After all, one of the most important reasons we put so much effort into financial well-being is so we can build a more fulfilling life for ourselves and the ones we love. 

Wondering how else you can wind down 2024 and prepare for a fruitful 2025? Reach out and let’s talk.

Justin D. Rucci, CFP®

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Meet the Team: Ernest Jones, CPA

/in /by

We are excited to introduce Ernest Jones, a seasoned CPA and Certified Fraud Examiner (CFE) with over a decade of experience in the accounting field. Ernest brings a wealth of knowledge and a personalized approach to serving small business owners, helping them navigate the intricacies of tax and business consulting. 

Please enjoy this interview to give you a deeper understanding of who Ernest is and how he serves you!

Can you share a bit about your professional background and what led you to specialize in tax?

I graduated from the University of Nevada Las Vegas with a Bachelor’s and later a Master’s in Accounting. My career began at a local CPA firm in Las Vegas, where I gained experience in various areas of accounting, from payroll tax filings to conducting financial statement audits. Over time, I found myself gravitating more towards income tax and business consulting, which sparked my interest in working directly with small business owners. This eventually led me to establish my own practice, where I help clients navigate the complexities of taxes and the administrative side of running their businesses.

What excites you about joining our team and working with our clients?

I’ve worked closely with the Warren Street team now for the better part of 7 years, so I feel like I already am part of the team, and we’ve already worked together on some mutual clients already. I’m looking forward to more fully integrating into the team and working to continue to get better results for clients.

What is your philosophy when it comes to creating tax strategies for clients?

Keeping it simple. No one likes paying tax, but I’ve found that doing the basics of tax planning are more fruitful—as opposed to falling down the rabbit hole of the latest social media post that promises tax savings through questionable strategies.

What are some of your key accomplishments in your career that you’re most proud of?

I have a handful of feather-in-the-cap stories where I was able to save taxpayers a few hundred thousand dollars in taxes. I even have a story where I got a taxpayer back a million dollars in overpaid taxes. I think every tax professional will have a few of those stories, and it is hokey to say this, but the most meaningful have been the client interactions where I’ve caught a taxpayer when they haven’t filed for a few years. The client didn’t think they would ever be able to get it resolved or addressed. Those clients are always the most appreciative, and the key thing I’ve learned from that is that any monumental task is best approached by breaking it down into steps and taking it one step at a time.

Who or what motivates you? 

My wife, Sandra.

What are three fun facts about you?

  1. I make craft cocktails. It was something I took up during the pandemic because I really missed getting a high quality drink. I’ve gotten to the point where I make my own clear ice.
  2. I’ve been a UNLV men’s basketball season ticket holder for the past 15 years.
  3. I’m born and raised in Las Vegas and still reside here.

We are thrilled to welcome Ernest to the team! His extensive background in accounting, passion for helping small business owners, and commitment to providing personalized service make him an invaluable addition to our firm. With Ernest on board, we look forward to continuing to offer our clients the outstanding support and care they deserve. Welcome, Ernest—we’re excited to have you with us!

Jennifer Battles

Director of Operations, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

How Will the Election Results Impact Your Financial Future?

/in , /by

With election day over, many are reflecting on what this new leadership might mean for their financial future and the country. While elections can stir strong emotions, it’s important to remember that, historically, markets have been influenced more by economic fundamentals than by which party is in power.

As this chart shows, while the stock market has fluctuated under presidents of both parties, the S&P 500 has trended higher over the long term, no matter who’s sitting in the Oval Office.1

  • Long-Term Trends: The stock market, as represented by the S&P 500, has generally trended higher over the long term, regardless of which party holds the presidency.
  • Company Growth: The dynamic U.S. economy has consistently produced successful companies, contributing to economic strength under various administrations.
  • Market Priorities: Factors like earnings growth, economic conditions, and technological advancements can have more influence on market performance than political changes.
  • Investor Focus: Your investment strategy should align with your goals, time horizon, and risk tolerance—not the outcome of a single election.

While elections do have consequences, it’s important to keep perspective. In the meantime, we’ll be closely monitoring how the new administration’s agenda might impact areas like tax policy, regulations, and corporate competitiveness. Market reactions to political shifts can create short-term volatility, but these fluctuations can be temporary.

As always, the key is to stay focused on your financial goals. Sudden moves in response to short-term events might be more detrimental than beneficial. We’re here to help you navigate any uncertainty while pursuing your overall financial strategy.

If you have questions about how current events could impact your investments or want to discuss your financial strategy, feel free to reach out.

Bryan Cassick, MBA, CFP®

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Stocks are measured by the Standard & Poor’s 500 Composite Index, an unmanaged index considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. Stock price returns and principal values will fluctuate as market conditions change. Shares, when sold, may be worth more or less than their original cost.

1. Chart https://go.ycharts.com/hubfs/How_Do_Presidential_Elections_Impact_the_Market/Election_Guide.pdf

4 Tips for Navigating the Markets During Election Season

/in /by

We’re heading toward another contentious presidential election in the United States. If you’re on edge in this political climate, you’re not alone.

We don’t want your valid political qualms to lead you to make financial missteps. That’s why we’ve compiled four essential tips to help you maintain a level head and effectively manage your financial future in the face of political uncertainty.

1. Look at the History

Despite the month-long parade of anxiety-inducing headlines that typically precede a national election, recent history shows that elections rarely cause significant upset to financial markets.

In evaluating data from the past five presidential elections, short-term volatility does occur in the days and weeks immediately before and after the election. But those fluctuations fade quickly, and the market reverts to whatever trajectory it was already on.*

2. Enhance Your Media Literacy

In the coming months, headlines will likely try to tie every newsworthy event — big and small — into the 2024 election. While that will include financial news, it’s important to remember that small events typically don’t drive markets.

Instead, macro events move the needle. The subprime mortgage crisis sparked the Great Recession. A once-in-a-century pandemic set off economic upheaval in 2020. Be wary of headlines that try to convince you the economic world is falling off its axis because of an event that is ultimately micro in scale.

To navigate stories around the upcoming election it helps to increase your media literacy. Some sources cultivate panic or anger to drive more views, clicks, and revenue.

Use these tactics to evaluate the trustworthiness of a story:

  • Scrutinize the source. Does the individual or organization have the credentials to speak on the topic?
  • Question the melodrama. Is any emotion in the piece necessary, or is it a tactic to elicit a specific response or manipulate the reader?
  • Examine the tone. Look for words that are designed to provoke emotional reactions.
  • Consider the motive. Is the information neutral and purely informative, or is there a self-serving angle to the piece?
  • Check the facts. Is the piece based on facts or opinions? If information is being presented as factual, can you independently verify it with a reputable third party?

3. Keep Calm and Invest On

Advisors preach this all the time, but it bears repeating during a stressful news cycle: Staying invested is one of the most beneficial things you can do for your financial future.

The stock market has averaged a 10% rate of return over the past 50 years — a period that includes stagflation, the ’79 energy crisis, the dot-com bubble, the Great Recession, and Covid-19.** Those who have remained invested regardless of the economic ups and downs have seen their money grow thanks to compounding.

Instead of letting external economic forces influence your decision, look inward. Remaining focused on your personal long-term financial goals can help you stick to the plan you and your advisor have created.

4. Turn To Your Advisor for Support

If you’re struggling to maintain your serenity, reach out to your advisor. The economic chatter can be stressful and advisors are committed to helping you tune out the noise and remain focused.

Advisors can help you by:

  • Contextualizing economic headlines. Advisors spend a lot of time tracking trends and watching markets. They can fill in critical blanks when you encounter a news story that sounds scary.
  • Running stress tests. Advisors use technology to help us create hypothetical projections so they can better understand potential upside and downside risk in various macroeconomic scenarios. If you have a particular concern about a macro force, they can run that stress test on your portfolio and walk you through the results.
  • Revisiting your financial plan. Advisors are here to help you keep a level head and stay focused on what matters. They can walk through your plan together and review projections to inspire you to stay the course.

Feel free to download this guide and share it with your friends, so they too can benefit from these strategies for navigating market uncertainty during election season.

If you’re feeling uncertain or have questions about how the current events may impact your investments, don’t hesitate to reach out. We’re here to provide guidance, offer perspective, and help you stay focused on your long-term financial goals. 

WSWA

Warren Street Wealth Advisors

Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

* Source: Bratanova-Cvetanova, K. (2024, January 24). Do stock and bond markets become more volatile around US presidential elections? FactSet Insight. https://insight.factset.com/do-stock-and-bond-markets-become-more-volatile-around-us-presidential-elections 

** Source: Price, M. (2023, November 23). Average Stock Market Return. The Motley Fool. https://www.fool.com/investing/how-to-invest/stocks/average-stock-market-return/ 

Meet the Team: Len Hanson

/in /by

Welcome to another edition of our “Meet the Team” blog! Many of you may already know and trust Len Hanson, one of our standout team members. If you happened to miss our previous introduction, you can catch up by clicking here.

Len has been an integral part of our team since Warren Street’s inception, bringing over a decade of experience in helping clients navigate and prepare for retirement. His dedication and expertise have made a significant impact on the lives of hundreds of Chevron clients, ensuring they achieve their retirement goals with confidence and peace of mind. Today, let’s dive into what makes Len an invaluable part of our team and how he contributes to our mission of delivering exceptional service.

How did you get started in this business?

In your role as Regional Director – South Bay, how do you assist Warren Street’s clients?

As the Regional Director – South Bay, I assist Warren Street’s clients by guiding Chevron employees through the retirement process. I help them prepare for retirement by ensuring they have the proper accounts set up and providing personalized advice to secure their financial future.

How does Warren Street align with your personal values? 

Warren Street aligns with my personal values by prioritizing the client’s best interests above all else. Teaming up with Warren Street was the best way to ensure this principle is upheld, allowing me to focus on guiding clients effectively rather than managing accounts.

What do you love most about working at Warren Street?

What I love most about working at Warren Street is the ability to help a greater number of people. If I were working on my own, I could only assist a limited number of clients. However, being part of a team allows me to reach and support many more individuals in achieving their financial goals.

Who or what motivates you? 

I’m motivated by the opportunity to do what I love every day. My work doesn’t even feel like work. It’s rewarding to know that I’m doing exactly what I would choose to do on my own, but with the added benefit of making a positive impact on others’ lives. 

What are three fun facts about you?

1. I love pickleball. Check out some of our past pickleball events hosted by Warren Street!

2. I have a passion for numbers, puzzles, and the business of finance. While many people dislike handling money, I genuinely enjoy it.

3. I love traveling with my wife, Danya. We always have two vacations planned in advance to look forward to.

If you know someone or if you are someone who can benefit from Len’s extensive experience in retirement planning, please don’t hesitate to schedule time with him. Len is eager to help you or your loved ones achieve financial security and peace of mind. 

Veronica Cabral

Director of Operations & Chief Compliance Officer, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Planning Your Perfect Summer Trip: Budgeting Made Easy

/in , , /by

Get ready to have some fun in the sun! Whether you’re heading to a tropical paradise or exploring a new city, proper budgeting can make your summer trip stress-free and enjoyable. Here are some key categories to remember when planning your budget:

1. Travel

Whether you’re taking a bus, train, car, airplane, or a combination of all these, set aside a portion of your budget for travel expenses. This includes not only the main mode of transportation but also any additional costs like gas, tolls, or rideshares.

2. Accommodations 

Don’t forget to budget for where you’ll be staying. Whether it’s a hotel room, vacation rental, or even a cozy cabin, make sure you allocate enough funds for your accommodations. Comfort is key to a relaxing vacation!

3. Dining

Dining out can get expensive quickly, especially if you plan to eat out for most of your meals. Be realistic and allocate a generous portion of your budget to dining. Trying new restaurants and local cuisines is one of the best parts of traveling!

4. Experiences

Life is meant for living, so don’t forget to budget for experiences. Whether you’re renting bicycles for a day of exploration or going on an exciting excursion, make sure you set aside some funds for fun activities, because life is meant for living. 

By keeping these categories in mind and planning accordingly, you’ll be all set for a fantastic summer adventure. Need help planning your summer travel budget or have other financial planning needs? Reach out to us today, and let’s make your dream vacation a reality! Happy travels! 

Bryan Cassick, MBA, CFP®

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Meet the Team: Jennifer La

/in /by

Since our last “Meet the Team” series, we’ve welcomed two new members, Bryan Cassick and Jennifer “JB” Battles, to our Warren Street family. However, today we want to shine a spotlight on an existing team member who has recently been promoted. We had the pleasure of sitting down with Jennifer, who is now our Director of Sales & Marketing. Get to know more about Jennifer’s role, hobbies, and future goals. 

In your role as Director of Sales & Marketing, how do you assist Warren Street’s clients? 

I focus on client communication and strive to enhance the user experience, from your initial contact with us through your entire journey as a client. My responsibilities include managing email campaign communications, such as the quarterly newsletter you receive. Additionally, I plan and host events, including our annual client appreciation event, which is our way of thanking you for your support and loyalty.

How does Warren Street align with your personal values?

At Warren Street, we place a strong emphasis on passion. I strive to live my daily life engaged in activities that truly matter to me. I do not want to live a life that feels idle or mundane. My work is driven by genuine enthusiasm and purpose—I am here because I want to be, not because I have to be. This passion fuels my commitment to making a meaningful impact both in my role and in the lives of our clients.

What do you love most about working at Warren Street?

One of the things I appreciate most about Warren Street is the incredible flexibility, as our entire team operates remotely. Despite being spread out across the country, I feel very close to my team members, to the point where I consider them my family. We stay connected through regular activities, such as our monthly lunch club. Additionally, when we meet our annual sales goals, we celebrate with a special trip called “Path To,” where we enjoy our success together. 

What is your biggest accomplishment thus far?

My biggest accomplishment is stepping into the role of Director of Sales & Marketing. It comes with many responsibilities, but I am ready to grow in this position and serve you proudly.

Who or what motivates you?

My parents are my biggest motivation. They immigrated from Vietnam without knowing any English and with zero dollars in their pockets. Despite facing immense struggles and making countless sacrifices, they worked tirelessly to create a better future and provide a better life for my sister and me. Their dedication drives me to give back even a fraction of what they’ve given me.

What are your aspirations?

I absolutely love traveling, and my dream is to visit at least 100 countries in my lifetime. I’ve already explored various countries in Southeast Asia and recently visited Iceland in March 2024. Among all the places I’ve been to thus far, Japan has been my favorite. I highly recommend everyone to experience its unique culture and beauty firsthand someday!

What are three fun facts about you?

  1. I own over 100 plushies of Winnie the Pooh, my favorite character of all time. 
  2. I have visited 31 of the 50 states. 
  3. I have an Etsy shop with my cousin, where we sell hand-made amigurumi plushies. Follow us on Instagram @QTWorks!

Get to know our other team members, including Aileen Obedoza and Emily Balmages. Let’s congratulate Jennifer on her new role as Director of Sales & Marketing. 

Veronica Cabral

Director of Operations & Chief Compliance Officer, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Tax-Loss Harvesting: Opportunities and Obstacles

/in , , , , /by

So much of investing is beyond our control (picking stock prices, timing market movements, and so on) that it’s nice to know there are several “power tools” that can potentially enhance overall returns. Tax-loss harvesting is one such instrument, but — like many tools — it’s best used skillfully, and only when it is the right tool for the task. 

The (Ideal) Logistics 

When properly applied, tax-loss harvesting is the equivalent of turning your financial lemons into lemonade by converting market downturns into tangible tax savings. A successful tax-loss harvest lowers your tax bill, without substantially altering or impacting your long-term investment outcomes. 

Tax Savings

If you sell all or part of a position in your taxable account when it is worth less than you paid for it, this generates a realized capital loss. You can use that loss to offset capital gains and other income in the year you realize it, or you can carry it forward into future years. We can realize losses on a holding’s original shares, its reinvested dividends, or both. (There are quite a few more caveats on how to report losses, gains, and other income. A tax professional should be consulted, but that’s the general premise.)

Your Greater Goals 

When harvesting a loss, it’s imperative that we remain true to your existing investment plan. To prevent a tax-loss harvest from knocking your carefully structured portfolio out of balance, we reinvest the proceeds of any tax-loss harvest sale into a similar position (but not one that is “substantially identical,” as defined by the IRS). Typically, we then return the proceeds to your original position no sooner than 31 days later (after the IRS’s “wash sale rule” period has passed). 

The Tax-Loss Harvest Round Trip

In short, once the dust has settled, our goal is to have generated a substantive capital loss to report on your tax returns, without dramatically altering your market positions during or after the event. Here’s a three-step summary of the round trip typically involved: 

  1. Sell all or part of a position in your portfolio when it is worth less than you paid for it. 
  2. Reinvest the proceeds in a similar (not “substantially identical”) position. 
  3. Return the proceeds to the original position no sooner than 31 days later. 

Practical Caveats

An effective tax-loss harvest can contribute to your net worth by lowering your tax bills. That’s why we keep a year-round eye on potential harvesting opportunities, so we are ready to spring into action whenever market conditions and your best interests warrant it. 

That said, there are several reasons that not every loss can or should be harvested. Here are a few of the most common caveats to bear in mind. 

  • Trading costs – You shouldn’t execute a tax-loss harvest unless it is expected to generate more than enough tax savings to offset the trading costs involved. As described above, a typical tax-loss harvest calls for four trades: There’s one trade to sell the original holding and another to stay invested in the market during the waiting period dictated by the IRS’s wash sale rule. After that, there are two more trades to sell the interim holding and buy back the original position. 
  • Market volatility – When the time comes to sell the interim holding and repurchase your original position, you ideally want to sell it for no more than it cost, lest it generate a short-term taxable gain that can negate the benefits of the harvest. We may avoid initiating a tax-loss harvest in highly volatile markets, especially if your overall investment plans might be harmed if we are unable to cost-effectively repurchase your original position when advisable. 
  • Tax planning – While a successful tax-loss harvest shouldn’t have any impact on your long-term investment strategy, it can lower the basis of your holdings once it’s completed, which can generate higher capital gains taxes for you later on. As such, we want to carefully manage any tax-loss harvesting opportunities in concert with your larger tax-planning needs. 
  • Asset location – Holdings in your tax-sheltered accounts (such as your IRA) don’t generate taxable gains or realized losses when sold, so we can only harvest losses from assets held in your taxable accounts. 

Adding Value with Tax-Loss Harvesting

It’s never fun to endure market downturns, but they are an inherent part of nearly every investor’s journey toward accumulating new wealth. When they occur, we can sometimes soften the sting by leveraging losses to your advantage. Determining when and how to seize a tax-loss harvesting opportunity, while avoiding the obstacles involved, is one more way we seek to add value to your end returns and to your advisory relationship with us. Let us know if we can ever answer any questions about this or other tax-planning strategies you may have in mind. 

Bryan Cassick, MBA, CFP®

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

How to Cultivate Financial Literacy in Children and Create a Pathway to Lifelong Success

/in , , /by

At the core of financial literacy lies a set of values and behaviors that extend beyond mere dollars and cents. As parents, caregivers, and educators, we have the unique opportunity to shape the financial mindsets of the next generation by imparting timeless wisdom that transcends monetary transactions. 

As we celebrate Financial Literacy Month this April, let’s commit to empowering our children with the knowledge, skills, and values they need to thrive in an increasingly interconnected world. Teach your children these  four fundamental lessons that build financial savviness over time.

  1. Believe in Yourself: Confidence is the cornerstone of success in any endeavor. Encourage children to believe in their abilities and to recognize the value they bring to the table. By fostering a sense of self-assurance, we empower our youth to navigate the complexities of the financial landscape with poise and resilience.
  1. Listen to Others: Effective communication is a two-way street that involves not only speaking but also actively listening. Teach children the importance of lending an ear to others, as every voice has the potential to impart valuable insights. By honing their listening skills, children cultivate a sense of empathy and discernment that serves them well in both personal and professional spheres.
  1. Put in the Hard Work: Success seldom comes without effort. Encourage children to embrace the virtue of hard work by involving them in household chores, encouraging academic diligence, or exploring part-time employment opportunities. By instilling a strong work ethic, we equip children with the tools they need to pursue their goals with diligence and determination.
  1. Budget, Save, & Invest: Introduce children to the concepts of budgeting, saving, and investing in a manner that is accessible and relatable. Emphasize the connection between hard work and financial resources, illustrating how responsible financial management enables individuals to achieve their aspirations. Encourage children to set aside a portion of their earnings for savings and explore the possibilities of investment, laying the groundwork for a secure financial future.

By integrating these principles into everyday interactions and activities, you can nurture a generation of financially literate individuals who are equipped to navigate the complexities of an ever-evolving economic landscape. Together, we can pave the way for a brighter, more prosperous future for generations to come.

Bryan Cassick, MBA, CFP®

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.