Our Mid-Year 2019 Economic Update

By Jeff Gilbert

Now that we are well into 2019, it’s time to take a look around at the economy. Despite the shaky start to the year, things are looking up! Here’s a quick overview to get you up to speed.  

Good Market Days

So far, 2019 has been a breath of fresh air for investors, who got the wind knocked out of them at the end of 2018. Not only have markets managed to recover from the tailspin that started at the end of September, but they have reached new highs. U.S. stocks were up 18.59% after the first four months of the year. (1)

While there were many factors that led to the market drop last year, two big ones were uncertainty over trade talks between the U.S. and China and fear that the Fed would continue to raise interest rates. Though still not solved, relations with China have improved greatly, leaving investors optimistic. The Fed also announced that they would halt rate hikes at the beginning of the year, paving the way for the impressive gains that we have seen thus far in 2019.

Employment Keeps Going Strong

The economy has also been bolstered by a continually tight labor market. Unemployment rates continue to hover near 50-year lows. This means that employers are having to increasingly compete for talent, which has pushed wages higher. Hourly wages are up 3.2%, (2) which is good for workers but will lower profit margins for businesses.

There was a moment of worry when the February jobs report was released with appallingly low numbers. However, fears were allayed with the March jobs report that exceeded expectations. Overall, the labor market remains robust, with slower job growth due more to a lack of qualified workers than anything else. (3)

GDP Is Growing

Gross domestic product (GDP), which measures our nation’s economic output, continues to grow. While there has been concern that the rate of growth is slowing down, first quarter GDP surprised analysts by growing at an annualized rate of 3.2%. (4)

The Fed Got Out Of The Way

Both the stock market and the economy owe some of their current success to the Federal Reserve. The Fed has been helpful not because of what they have done, but because of what they haven’t done.

After five successive quarters of rate hikes, the Fed finally pushed pause in March. Instead of continuing to raise rates, they indicated that they will hold off for 2019 to see what happens with the economy. This was enough to renew investor confidence and drive the impressive stock market gains that we have seen so far this year.

The World Isn’t Too Far Behind

While the U.S. economy continues to chug along, the rest of the world isn’t doing too bad either. There were concerns that China, the world’s second largest economy, was slowing, but some strategic moves by the Chinese government and a surge of industrial production led to better-than-expected GDP growth of 6.4% for them in the first quarter. (5)

Brexit is still a thorn in Europe’s side, as it seems the British government cannot agree on an exit plan. However, the negative economic effects have been minimal so far, especially with regards to the stock market. Thanks to continued growth worldwide, the MSCI All Country World Index is up over 15% so far this year. (6)

But It Can’t Last Forever

There is no doubt that we are now in the late-cycle phase of the expansion. Several months ago there was a real fear that the end was here, but concerns over a global recession have lessened. While we are seeing slowing in some quarters, the underlying economic fundamentals remain strong. We may be near the end of this expansion, but it’s still quite possible that this ending could last for several more prosperous years.

How We Can Help

You may be breathing a sigh of relief after reading these optimistic updates, but what’s more important than how the overall economy is doing is how your personal financial situation is doing. If your financial plan needs some attention or you want to take advantage of our current market cycle, we at Balboa Wealth Partners can help. Call me today at 949-445-1465 or email me at jgilbert@balboawealth.com to plan your path to financial independence.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

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(1) http://news.morningstar.com/index/indexreturn.html

(2) https://www.carsonwealth.com/insights/market-commentary/weekly-market-commentary-april-8-2019/

(3) https://www.carsonwealth.com/insights/market-commentary/weekly-market-commentary-april-8-2019/

(4) https://www.carsonwealth.com/insights/market-commentary/weekly-market-commentary-april-29-2019/

(5) https://www.carsonwealth.com/insights/market-commentary/weekly-market-commentary-april-22-2019/

(6) http://news.morningstar.com/index/indexreturn.html

We’re Never Too Busy To Help Someone You Care About

By Jeff Gilbert

What are the most important things in your life? Family? Health? A sense of purpose? While money may not top that list, it affects every part of your life and can give you the security and stability that positively impacts the things that matter most. But because of its far-reaching impact, managing money often leads to stress and worry. That’s why an advisor plays one of the most prominent roles in a person’s life, forming a long-lasting relationship and providing trusted counsel.

But how do you find an advisor who you can trust and want to work with for the long term? At Balboa Wealth Partners, we understand that this is an overwhelming and intimidating process. Trusting someone with your hard-earned money is not a decision you should take lightly. Knowing this, we are honored to have the opportunity to continue serving more and more families and individuals who conscientiously choose to place their finances in our hands.

We place the utmost value on our clients, and we greatly appreciate the opportunity to serve the important people in their lives as well. We gladly welcome the chance to connect and get to know new clients who may benefit from the services we provide. Your referrals are the highest compliment and an integral part of our continued growth.

The Balboa Wealth Difference

We’ve been fortunate to work with a wide range of clients who do refer their friends and family to us. We believe so many people have referred others to us for a few different reasons:

  1. A personalized approach. We know that no two individuals’ financial planning needs will be the same, which is why we create a plan focused on your financial goals. We take the time to outline a tailored strategy based on your specific needs, goals, and circumstances.
  2. Strong relationships. We prioritize a hands-on client-centered approach, which has led us to build long-lasting relationships with so many of our clients. We’re proud to serve as a go-to resource and support system when someone faces a tough decision or goes through a life transition.
  3. A dedicated team. With a diverse team of experienced professionals who maintain a high-touch and personalized experience, we seek to serve as our clients’ most trusted financial consultant and help them make smart decisions with their money. By having a dedicated team of experts on your side, we hope you can feel more confident as you navigate life’s challenges and planning opportunities.

The People We Serve Best

At Balboa Wealth Partners, we desire to take away your fear and anxiety and help carry your financial burden. Because we like to form trusted and close relationships with our clients, we strive to work with people we believe we can best serve. We specialize in serving ultra-high-net-worth individuals who require customized strategies for their unique challenges.

Our advisors specialize in overseeing your financial affairs and coordinating the day-to-day execution of your long-term financial plans. We deliver high-touch, responsive service strategically paired with access to institutional-caliber investment expertise in a way that eliminates conflicts, reduces fees, and opens the doors to truly comprehensive planning and reporting.

Do You Know Someone Who Could Benefit From Our Services?

One of the reasons we work with a select number of clients is so we can provide personalized attention and care to each of our clients as well as their loved ones. When you have questions about your portfolio or strategies, we’re here to help. When you experience a new milestone in life, we’re here to help. And if you have a friend or family member who has questions or needs unbiased advice, we’re never too busy to help.

If you’re a client with our firm and you’ve enjoyed working with us, we hope you’ll refer a friend, colleague, or family member who may benefit from our services. For a no-obligation consultation, please forward this article to them and have them contact us at 949-445-1465 or jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

10 Things To Do Within 10 Years Of Retirement

By Jeff Gilbert

Your dreams of white sandy beaches, days spent on the golf course, or more time with family are just around the corner. After countless years of working and saving, you are finally getting closer to the retirement finish line. That doesn’t mean it’s time to put your feet up and count down the days until you pack up your office for good. Determine to finish the race stronger than you started by doing these 10 things within 10 years of retirement.

1. Run Your Numbers Through Different Scenarios

There are countless uncertainties when it comes to your retirement savings. While it may be impossible to predict exactly how long your nest egg will last, you can run your figures through different scenarios to evaluate what will happen if the market crashes, if you face unexpected healthcare costs, or if a spouse dies prematurely. Once you stress-test your savings in this way, you can come up with a plan to mitigate these risks. If you wait until you are retired to take this step, it may be too late to make the changes necessary to maximize your retirement income.

2. Test Out Your Retirement Income

Whether you choose to continue working during retirement or not, you’ll likely rely on a retirement income generated from several different sources, including Social Security, employer-sponsored retirement plans, personal retirement plans, and other savings and investment programs. Over the course of your working years, you’ve likely been contributing money to these accounts so you’ll have a consistent income in retirement. But how do you know if it’s enough money?

One way is to test it out. While it’s generally recommended to assume you’ll need 80% of your current income in retirement, you and your family may need more or less. For a few months, test drive a reduced budget. To start, try living on 80% of what you currently receive. Do you find yourself pinching pennies or did you find even more ways to cut back?

3. Up Your Savings Rate

The closer you get to retirement, the more you should aim to save. Cut back on expenses, channel any raises and bonuses directly to savings, and automate savings increases of 1% every few months.

Your increased savings can be invested into your company 401(k) or 403(b) plan or your personal IRA. If you are over 50, you can invest an extra $1,000 a year into an IRA for a total of $7,000 for 2019. At $6,000, the catch-up contribution for those over 50 is even greater for 401(k) and 403(b) plans, allowing a total annual contribution limit of $25,000.

4. Decide Where You Will Live

According to studies by the Employee Benefit Research Institute, housing expenses account for an overwhelming 43% of spending for those ages 75 and older—even more than healthcare. (1) As you approach retirement, think through where you’re going to live and how much you’ll spend on housing costs in retirement.

If you plan on relocating, do your research. Visit your potential locations, and decide if the climate, community, and area are right for you. If your plan includes staying where you are, ask yourself if downsizing is a viable option. If you want to stay in your current home, look at any modifications that are needed to accommodate aging. Plan to make any expensive adjustments and repairs now before you’re living on a tighter budget.

5. Keep An Eye On Your Investments

The 10-year pre-retirement mark is a particularly appropriate time to adjust your portfolio’s allocations. Meet with your financial advisor to review your current lineup and determine whether your risk tolerance should change.

Along with reallocating your investments, you’ll want to consider how the sequence of returns could impact your portfolio’s value over time. In the simplest of terms, sequence of returns refers to the risk of receiving lower or negative returns early in a period when you’re making withdrawals from your investments. If your retirement date correlates with the onset of a bear market, your savings can be depleted quickly as you withdraw from your portfolio. With a smaller investment base, you’ll have less wealth remaining to benefit from a future market upswing.

To mitigate the risk of sequence of returns ruining your retirement portfolio, work with your advisor to take the appropriate steps, such as reducing volatility, examining your withdrawal strategy, and finding different market options to protect your money.

6. Maximize Your Social Security Benefits

Social Security benefits can be claimed anytime between ages 62 and 70. However, the timing of when you decide to collect these benefits will impact the amount of payout you receive. At 62, you become eligible to receive Social Security benefits for the first time. But before you start claiming Social Security, it’s important to review your benefits and options for claiming so that you can plan to maximize your lifetime benefit.

If you start claiming benefits at age 62, your benefits are about 26% lower than if you waited for full retirement age, and over 40% less than if you wait until you are 70 to claim. It’s also important to consider how long you’ve worked and your lifetime average monthly earnings, which are used to calculate your benefit. In some cases, working a few extra years can have a big impact on your monthly Social Security benefit.

7. Think Long And Hard About Healthcare

No matter how healthy you are today, you may need more health services as you age. According to the Employee Benefits Research Institute, the average couple at age 65 will require anywhere from $157,000 to $392,000 in healthcare costs. (2) Most people don’t even have that much in their retirement accounts to live on, let alone cover medical costs. Even with Medicare, there could be significant out-of-pocket expenses and many conditions and treatments that are not covered.

When choosing your health insurance for retirement, make sure you understand all Medicare options and supplements and work with an experienced professional to help you evaluate your options.

8. Don’t Forget About Long-Term Care

Along the lines of health, think about your potential need for long-term care insurance. An average 63% of today’s 65-year-olds will require some form of long-term care during their lifetimes. (3) On average nationally, it costs $253 per day or $7,698 per month for a private room in a nursing home. (4) But the older you get, the higher your cost for a long-term care insurance policy will be and the greater the likelihood of your application being denied. Generally, the last age long-term care insurance is affordable is when you are in your mid-60s.

If you decide to plan for long-term care, you have a few options. You can go with a traditional long-term care insurance policy, add a long-term care rider to your life insurance policy, purchase an annuity with a long-term care rider, or start saving for your long-term care on your own through a contingency savings account.

9. Create A Tax Strategy

Tax planning can save you more money than you realize. By projecting your future income and taxes now, you may find opportunities to save. When you are living off a fixed income in retirement, tax strategizing can make a world of difference in the longevity of your nest egg.

For example, a $50,000 withdrawal from a Roth IRA will have a wildly different tax impact than that same distribution from a traditional IRA. Creating a tax plan can help you strategically withdraw from your various retirement accounts and minimize your tax liability.

10. Get Professional Advice

Even if you have been saving and planning on your own up until this point, these final years before retirement are critical for making decisions that have far-reaching consequences. If you want to spend your final working years enjoying life rather than worrying, our team at Balboa Wealth Partners would love to help you create a personalized retirement road map that will address your concerns and guide you to financial independence. Take the first step by reaching out to us at 949-445-1465 or jgilbert@balboawealth.com to schedule a no-obligation conversation.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

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(1) “How Does Household Expenditure Change With Age for Older Americans?” Employee Benefit Research Institute. September 2014. https://www.ebri.org/pdf/notespdf/EBRI_Notes_09_Sept-14_OldrAms-WBS.pdf

(2) https://www.ebri.org/pdf/notespdf/ebri.notes.oct13.retsvgs1.pdf

(3) https://longtermcare.acl.gov/the-basics/

(4) https://longtermcare.acl.gov/costs-how-to-pay/costs-of-care.html

Why I Love Living And Working In Newport Beach

Newport Beach is a gorgeous coastal city in Orange County, California. And let me tell you, it’s an absolute paradise—a paradise I’m lucky enough to call home. I can honestly say there are few places on this earth where I’d rather live.

If you’re looking for a place to live (or visit) in California, I’d highly recommend adding this delightful city to the top of your list. There are endless reasons to love it here, but if I had to narrow it down to just four, here’s what they’d be.

Year-Round Beautiful Weather

In Newport Beach, we enjoy year-round sunny weather. Summer temperatures average out at a comfortable 80 degrees, while winter temperatures drop slightly and hover around the mid-60s. Not bad at all. What’s more, we typically receive less than 10 inches of rain per year. All in all, it makes for “perfect day” weather pretty much every day (definitely no lack of Vitamin D here). I can’t imagine it getting much better than this. Seriously, what more could you ask for?

A Great Family Community

With highly rated public schools, safe neighborhoods, and superb quality of life, Newport Beach is the perfect place to raise a family. Speaking of public schools, Newport Beach has many impressive options, including Orange County School of the Arts, University High School, and Corona Del Mar High School. These are some of the top-rated schools in not only Orange County, but in all of California. (1)

Ample Opportunities For Community Service

There is little I find more rewarding than giving back to my community. And in Newport Beach, there are many ways to do it. Whether it be volunteering in senior centers, tutoring children, working to protect the environment, or caring for animals, there is always something to do to build relationships and serve the community in meaningful ways.

Endless Entertainment For The Entire Family

I absolutely love the beach. And the vast coastline in and around Newport Beach doesn’t disappoint. That said, there’s much more to this city than just surf, sun, and sand.

Fun opportunities for kids are basically unlimited. A few favorites include the Centennial Farm, Marina Park playground, and Balboa Fun Zone. Adults are also guaranteed to stay entertained with great camping locations, shopping malls, sporting activities, fantastic restaurants, and exciting nightlife.

Whatever your age or interests, you can always find something fun to do. I’d even go as far as to say that it’s hard to get bored here.

Want To Live In Newport Beach?

Whether you’re single, married, or have kids, Newport Beach is a dream destination to lay down roots. However, as you can imagine, living in such a perfect location isn’t cheap. That said, if Newport Beach sounds like your ideal home, don’t lose hope yet. With smart financial planning, you may be surprised at what you can afford (or how quickly you can save).

At Balboa Wealth Partners, we can put together a personalized financial plan that will help you reach your goals. If you’re interested in hearing how we can help, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC. Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

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(1) https://www.niche.com/places-to-live/newport-beach-orange-ca/

Jump-Start Your Financial Plan For 2019!

What new goals are you trying to reach in 2019? Are you focusing on your physical health by joining a gym and cleaning up your diet? Are you throwing yourself into your career in order to earn a promotion? Or maybe, like millions of other people, you are using this year’s fresh start to find renewed motivation and make plans to get out of debt, save more, or reach a financial milestone such as purchasing a vacation home or retiring.

While setting goals can be a healthy way to focus on what matters in the new year, 80% of resolutions fail by February. (1) Your finances are too important to fail, so if you have dreams of making 2019 your best financial year yet, these 6 small but impactful steps will help you jump-start your financial plan and set a solid foundation for your financial life.

1. Create An Action Plan For Your Goals

Have you ever put your financial dreams in writing? Now is the time to do just that! Whether your dream is to save $100,000 in the next five years or fully fund your child’s college education, putting your thoughts on paper will help you turn your dreams into goals and your goals into a step-by-step plan. And since it will take time to reach your goals and plenty of obstacles will come up along the way, set attainable objectives and celebrate your progress.

Come up with deadlines to reach specific milestones on the way toward your overall goal. If you are trying to eliminate debt, for example, determine how much you will pay each month and what your subsequent debt amount will look like in six months, one year, or five years. It’s also important to use visual reminders to keep you on track and help you avoid discouragement. Whether you use a spreadsheet or a chart hung on your fridge door, measure your progress as time goes on, and remember that small steps add up to significant progress over time.

Be sure to reevaluate your goals frequently and make adjustments as needed. Having goals and an action plan to achieve your goals will give you perspective in your day-to-day decisions and help you prioritize your saving and spending.

2. Leverage Technology To Make Your Life Easier

Our lives are becoming increasingly busy, and it’s often the seemingly less important financial tasks that fall to the wayside. Thankfully, financial technology has come a long way. Take advantage of the tools available to streamline your financial life so you can devote your time and attention to the things that matter most.

Automating your bills and savings not only organizes your life but also has long-term benefits for your financial picture. Paying your bills automatically tends to improve your credit score, makes budgeting simpler, and can also make income tax preparation easier. Additionally, by automating your savings, you give yourself a chance to save before you can even touch the money.

If budgeting is your pain point, look for a budgeting platform that works for you, and don’t forget to talk to your financial professional to find out if they offer software that allows you to see all your accounts in one place so you can stay organized and track your progress toward your goals.

3. Eliminate Debt

It’s difficult to accumulate wealth and make progress toward your goals when you are paying high interest rates on things like credit cards, car loans, and student loans. Become relentless about reducing your debt and interest costs, and consolidate accounts where you can.

If you have a loan with a significantly higher interest rate than the others, you may want to work on paying off that one first. Or, if you’re feeling overwhelmed by debt, try paying off the loan with the smallest balance first, no matter the interest rate, in order to gain some momentum. Use a debt calculator to calculate out how long it will take to pay off your debt, then build extra payments into your monthly budget so you aren’t tempted to spend that money elsewhere.

Creating an emergency fund can help you avoid accumulating more debt. By setting up a liquid, easily accessible savings account, you won’t have to rely on debt to cover those inevitable life expenses, such as home repairs or medical bills. Create this cash cushion by putting aside money from each paycheck until you have enough to cover approximately three to six months’ worth of living expenses. You will never regret having an emergency fund at the ready.

4. Invest With Purpose

Anyone can close their eyes and pick a random mix of mutual funds to invest in, but having a customized retirement plan based on your circumstances, goals, and risk level is what will get you from point A to point B. Asset allocation is the most critical investment decision you can make, especially in our current volatile market.

Work with a financial professional to determine your risk tolerance level and create an investment strategy that will give your portfolio a clear sense of purpose. It’s also critical to rebalance on occasion to ensure your portfolio is still aligned with your goals and time horizon.

5. Mitigate Risks

No matter how hard you work to create a foolproof financial plan, there will always be risks and roadblocks that have the potential to get you off course. Inflation will decrease your purchasing power, and rising healthcare costs can eat away at your nest egg. Unexpected early retirement could change the time frame of your goals, tax changes could throw a wrench into your planning, and the loss of a spouse could impact your standard of living. Speak with your advisor to find ways to protect yourself against these risks.

6. Partner With A Financial Professional

Regardless of where you are in the planning process or what goals you have set for your financial life, we are here to support you, guide you, and help you navigate the challenges of life so you can attain your current and future financial needs. At Balboa Wealth Partners, our advisors specialize in overseeing your financial affairs and coordinating the day-to-day execution of your long-term financial plan, all with high-touch, responsive service. Let us help you jump-start your financial plan in 2019 by contacting me at 949-445-1465 or jgilbert@balboawealth.com to set up a no-obligation conversation.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

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(1) https://health.usnews.com/health-news/blogs/eat-run/articles/2015-12-29/why-80-percent-of-new-years-resolutions-fail

What Should You Do During A Stock Market Decline?

The markets took a big dip early this week, reacting to fears of potential trade wars and an economic slowdown. After the Dow lost nearly 800 points, investors are understandably nervous. If you are worried about your retirement accounts, you’re not alone. But during stock market volatility, it’s important to keep a level head to avoid financial mistakes.

Stay Calm

At times like these, it’s important to put current conditions into perspective. This is not the first time the market has taken a tumble and it won’t be the last. Declines in the Dow Jones Industrial Average are actually fairly regular events. In fact, drops of 10% or more happen about once a year on average.

Play Dead

There’s an old saying that the best thing to do when you meet a bear market is the same as if you were to meet a bear in the woods: play dead. While easier said than done, successful long-term investors know that it’s important to stay calm during a market correction.

Market volatility has increased in recent years and the media can often make it seem like each episode is worse than the one before. In reality, volatility does not hurt investors, but selling when the market is down will lock in losses.

Remember That Your Portfolio is Diversified

We understand that volatility and market declines are stressful. However, we encourage you to keep in mind that while the stock market may be down significantly, your portfolio is made up of both stocks, bonds, and other assets that are designed to work together to decrease overall losses. It’s important to consider your specific portfolio, investment horizon, and circumstances when reflecting on economic events. If you have questions about your portfolio, get in touch with our office.

Review Your 401(k) and Other Accounts

Now is a good time to take a look at all of your investment accounts, including your 401(k) to make sure it is well-diversified. If you have not reviewed the investment accounts that we do not manage, get in touch with our office and we’ll take a look and offer recommendations to minimize potential losses.

Speak With Your Advisor

Whether you’re new to investing or an experienced investor, it’s helpful to consult with an objective third-party. Human nature causes us all to act out of emotion when our accounts go down. As an independent firm, we put your best interests first. We seek to serve as a support system for our clients, helping them make informed financial decisions that aren’t driven solely by emotion.

We’re Here for Your Friends and Family

If you have friends or family who need help with their investments, we are happy to offer a complimentary portfolio review and recommendations. We can discuss what is appropriate for their immediate needs and long-term objectives. Sometimes, simply speaking with a financial advisor may help investors feel more confident and less concerned with the day-to-day market activity. Give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

Balboa Wealth Partners Welcomes Two New Team Members!

Balboa Wealth Partners is growing! Not only are we passionate about offering the highest level of service to each and every client that comes our way, but we continually stretch ourselves and grow in our knowledge and experience. We believe our commitment to our values and our clients is what sets us apart. This is why we are excited to announce the addition of two new advisors who have extensive experience in financial planning for individuals, families, and business owners, and who bring relationships, expertise, and knowledge that will be a tremendous asset to our team and our clients.

Meet Jeremy

Jeremy Tate graduated from Utah Valley University with a bachelor’s degree in business management and finance and went on to become an investment advisor with Edward D. Jones. During his time there, he specialized in goal-based retirement planning and income and distribution planning. He then spent the next five years as a senior portfolio manager and partner of the Sierra Pacific Group at Morgan Stanley, where he managed portfolios for high-net-worth and ultra-high net-worth clients.

Jeremy’s background as an entrepreneur and business owner makes him uniquely qualified to work with business owners and their complex investment needs. He focuses his services and expertise on business owners and retirees seeking current income. Jeremy has been a public guest speaker at UCSD for their retirement association on Social Security planning, Medicare, and retirement planning. He currently resides in Del Mar, California.   

Meet Jerry

Jerry Zelko earned his Bachelor of Science degree from Azusa Pacific University and began his career as a financial advisor at PaineWebber/UBS. He was recruited to Wachovia/Wells Fargo Advisors in 2007 to operate a high-net-worth division within the firm. With the experience and knowledge gained from this experience, Jerry wanted to access more investment options and distance himself from the scandals of the big banks and the large Wall Street firms. As a result, he took the leap to become an independent financial advisor and partnered with Balboa Wealth Partners.

Jerry provides investment planning and wealth management services for successful families. His experience navigating through periods of major market shifts has helped him guide his clients toward achieving their goals. He believes individuals can improve their investment results by utilizing the same investment strategies and processes as institutional investors, such as endowments, foundations, and other large investment entities.

Away from work, Jerry enjoys international travel and has visited all 7 continents and over 50 countries. Jerry is an avid photographer, and he particularly enjoys practicing his photography skills when traveling. He is a passionate sports fan, enjoys playing softball, and is an ardent mountain biker. Jerry is a member of the Orange County Mensa chapter and has authored articles for local publications, including the OC METRO.

A New Partnership

We are proud to have Jeremy and Jerry on our team. By banding together, we can offer our clients additional services and increase the depth of value we offer to our clients. We believe this partnership will bear much fruit in the future and benefit all of those involved! If you would like to meet our new advisors or find out what Balboa Wealth Partners can do for your financial life, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high net-worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services provided by Balboa Wealth Partners, Inc, an Investment Adviser registered with the SEC.  Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC. Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

What We Are Thankful For In 2018

Happy Thanksgiving from our team at Balboa Wealth Partners! We want to take a moment to thank you for being a part of our family. We sincerely appreciate the trust you place in our firm and we take our responsibility to you and your family very seriously.

Cultivating Gratitude This Season

The world we live in doesn’t lend itself well to gratitude. Outwardly, it may seem that there are few silver linings amidst all the headlines of political drama, international unrest, and natural disasters. While it’s easy to be distracted by all this noise, it’s important to take a step back and acknowledge the many things we have to be thankful for.

Family

Family probably tops the list for many of us, but in this season, I am reminded of how much family means to me and the importance of surrounding yourself with people who know, love, and support you.

Friends

We live in a transient culture where many people change jobs and locations regularly, which can make it difficult to cultivate and maintain friendships. But no matter how busy we are or what life changes come our way, friendships are vital to our well-being. I am incredibly grateful for the community that surrounds me and I am privileged to count many of my clients as my friends as well.

Pursuing My Passions

I am so blessed to have found a career I feel so passionate about. I wake up every day excited about the people I get to work with and my role in helping them achieve their financial goals. Not everyone can say this about their jobs, so I don’t take this opportunity for granted!

We Are Thankful For You!

At Balboa Wealth Partners, we truly appreciate the long-lasting relationships we have with each of you and want to help you work towards your ideal financial future. We celebrate with you as you reach financial and personal milestones and become empowered to take control of your financial life. We care about your lives and want to minimize the stress and details that often accompany financial decisions so that you can focus on all the blessings in your life.

As we reflect on all we’re grateful for this year, we want to take a moment to thank you, our clients, for choosing Balboa Wealth Partners to guide you in your financial life. We look forward to supporting you and your family in the future!

What are you most thankful for? What successes and blessings has this past year brought for you? We’d love to hear your stories. Give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high and ultra-high net worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services offered through Balboa Wealth Partners, Inc. An SEC registered Investment Adviser.  Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

5 Unexpected Threats To Your Retirement Plan

There’s no doubt that there are plenty of things that could threaten your financial success. A personal tragedy could cost you everything you have, a natural disaster could destroy your home, and a recession could diminish your nest egg. While these events have the potential to wipe out your retirement savings, they are largely out of your control. The real dangers to your retirement plan are the little-known and often ignored threats that could cause you to lose what you have diligently worked for. Here are some ways you could run into retirement trouble:

1. Not Estimating Your Retirement Needs

If you’ve managed to amass a significant nest egg, you may be pretty proud of yourself. But even if you have half a million or a million dollars saved, it may not be enough. If you plan to retire in your early or mid-sixties, your retirement savings will need to carry you through 30 years or more. Not to mention, you will encounter additional expenses along the way, such as health care costs, home maintenance, and taxes.

The best way to avoid financial anxiety in retirement is to set up contingency funds to cover the unexpected and work with your financial professional to map out various retirement scenarios to see what your savings can handle. Then, find ways to maximize your savings to give yourself a cushion.

2. Neglecting To Create A Withdrawal Strategy

Just because you’ve worked hard to save for retirement and build up a nest egg doesn’t mean you can rest easy. Once you start tapping into your savings, you need to develop a strategy to withdraw your funds so they last the rest of your life, however long that may be.

Since you know that stocks have historically earned an average of 8% a year, you might assume that you can afford to withdraw 8% of the initial portfolio value (plus a little more for inflation each year). (1) But in reality, to protect against the uncertainty of the market, you may have to limit your withdrawals to 4% or less. (2) Since there is no simple, one-size-fits-all plan, you need to figure out what will work for you and your unique situation, taking various factors into account, such as time horizon, risk tolerance, asset allocation, and unexpected living expenses.

3. Putting All Your Eggs In One Basket

Diversification is one of the most talked about investment strategies for a reason: it protects your investments from market volatility. While you can’t eliminate risk from your portfolio entirely, you can cushion the blow if things go south. If you put too much of your money into one stock or even one sector of the economy, you put yourself in danger of losing your retirement savings.

Working with a professional, evaluate your portfolio’s current allocation to determine if it needs to be rebalanced or diversified. Look at the big picture of all your accounts, including employer-sponsored ones, and ensure you are diversified across the board.

4. Forgetting To Take Required Minimum Distributions

If you are 70½, you must begin taking required minimum distributions (RMDs) from your traditional IRA and employer-sponsored retirement accounts. It doesn’t matter if you need the money when you reach this age, you must still adhere to the RMD rules. What happens if you don’t follow through? The IRS will charge you an excess accumulation penalty of 50%! That can significantly harm your retirement savings amount.

As an example, if you are required to withdraw $5,000 and don’t, you will owe a whopping $2,500. That’s an unnecessary and avoidable loss. Depending on how much you have in an emergency fund, you may even be forced to use your retirement savings to pay the penalty, further damaging your future financials.

5. Premature Loss Of A Spouse

Losing your spouse is devastating, regardless of when it happens. But losing a spouse during the final years of their career can be dangerous for the surviving spouse’s financial plan. Furthermore, retirement and long-term care costs may increase without a spouse to share costs and provide care. Depending on pension benefits selected, a spouse’s pension may not pay out to the surviving spouse in the event of his or her death. An early death may also decrease the spousal Social Security benefits the surviving spouse receives, leaving him or her with little income.

It’s critical for both spouses to be actively involved in the planning process to avoid a setback if this tragedy occurs. Take the time to consider benefits for the surviving spouse, such as life insurance. Wills, trusts, and beneficiary designations should be reviewed to ensure both spouses are protected financially. You should also create a pension and Social Security strategy to optimize the benefit for the surviving spouse. Examine multiple scenarios and make sure that you are taken care of no matter what happens.

Create An Action Plan

Retirement planning can be complicated and stressful due to the many unpredictable factors that go along with it. However, by understanding some of the risks and common roadblocks you can experience, you can plan ahead for the unexpected and reduce the chances that your retirement plan will fail.

At Balboa Wealth Partners, our goal is to guide you to financial success and help you navigate the challenges of life. With our comprehensive planning process, we can help you prepare for life’s expected and unexpected circumstances. If you think your retirement plan needs a second look, call me today at 949-445-1465 or email me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high and ultra-high net worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services offered through Balboa Wealth Partners, Inc. An SEC registered Investment Adviser.  Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC. Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

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(1) http://www.simplestockinvesting.com/SP500-historical-real-total-returns.htm

(2) http://www.nytimes.com/2015/05/09/your-money/some-new-math-for-the-4-percent-retirement-rule.html?_r=0

How To Teach Your Kids About Money

Becoming a parent is a life-changing event, and there are numerous things we want to teach our children to become independent and successful adults. As a society, we are excelling in some areas of parenting, but falling behind in others. In a recent National Financial Capabilities Study, only 24% of Millennials (age 23-35) were able to answer the first three financial literacy questions correctly, and a mere 8% answered them all correctly. (1)

Most parents agree that we need to do a better job teaching our kids about money. Last year, T Rowe Price reported that 80% of parents didn’t think schools were doing enough to teach kids about financial matters. (2) However, parents cannot abdicate all responsibility to the schools. Raising children and teaching them to navigate the world is first and foremost a parent’s responsibility, and it’s easier to start when they’re young than try to catch-up when they are teenagers.

Practice What You Preach

The first step in teaching your kids about finances is letting them watch you make financial decisions and modeling what you want them to learn. The same T Rowe Price study mentioned above found that 69% of parents are very/extremely concerned about setting a good financial example for their kids. The vast majority, eight out of ten, feel that they are setting a good financial example, but two-thirds also admit to doing things that wouldn’t qualify as setting a good example.

A significant 40% said that when it comes to talking to their kids about finances, it’s “Do as I say, not as I do.” Anyone who has raised kids knows that won’t cut it. The first step in teaching your kids about money is simple: Show them.  

Start The Conversation

Sometimes a silent model isn’t quite enough, and some areas of personal finance aren’t very visible. That is why it is critical to talk to your kids about finances. Unfortunately, talking about money is a long-standing cultural taboo. A 2013 study found that 63% of Americans would rather share their body weight with co-workers than their bank account balance. (3) Often this reluctance to discuss financial matters spills over into the home as well.

Forty-nine percent of the parents in the T Rowe Price study said they rarely or never discuss family finances with their children. Eighteen percent admitted to being very/extremely reluctant to discuss financial matters with their kids, and 72% of parents experience at least some reluctance to having such a discussion. Many parents even say they would rather discuss drugs or sex with their kids than money. (4)

But how are kids going to learn about money if you avoid talking to them about it, as 41% of T Rowe Price respondents admitted to doing? Most parents don’t expect their kids to understand the dangers of drugs just because they have never seen their parents shoot up. Some things require more in-depth discussion and openness, and finances are one of them. And if you set the precedent of being open about finances when they are young, hopefully they will still come to your for advice or assistance when they get older.

Let Them Try

For financial understanding to truly sink in, you need to get your kids involved. Learning theory and research have consistently shown that the more active a learning experience is, the greater the learning gains and retention. (5) Most people have to do something to really learn it.

How does this work with kids? For one, try letting them divide their allowance into different categories, set short-term and long-term goals, and helping them understand what things are worth. Give your 5-year-old some money to buy something at the store so they learn the value of different items and realize that in order to obtain something (a toy), they have to exchange it with something else (money). You may try letting your 10-year-old figure out the cost of the new video game he wants, plus tax, and help him save up his allowance for it. Let your teenager buy her back-to-school clothes on her own with a set amount of money.

Don’t be afraid to let them make mistakes either. Sometimes learning the hard way is the best way to grow, and it’s better for them to learn those lessons when they are young and the consequences aren’t as severe.

Getting Started

Imparting financial wisdom to your kids is a challenging process that takes years. So, if you don’t feel like you’re doing an adequate job of teaching your kids about money, you’re not alone. Even if you are doing a good job, you probably agree with the 77% of the T Rowe Price survey parents who said that they wished there were more resources available to help them teach their kids about financial matters.

Here at Balboa Wealth Partners, we believe that every child can learn critical financial lessons at a young age that will set them up for future success. We want to provide you with the tools to help you on this journey. To set up a meeting, contact me at 949-445-1465 or jgilbert@balboawealth.com. Together we can make sure that this next generation enters adulthood with the knowledge necessary to build a secure financial foundation for their bright futures.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With nearly three decades of industry experience, he has worked as both an advisor and executive level manager, partnering with and serving a diverse range of clients. Specializing in serving high and ultra-high net worth families, Jeff aims to help clients achieve their short-term and long-term goals and to worry less about their finances and more on their passions in life. Based in Orange County, he works with clients throughout Southern California, as well as Arizona, Oregon, and Washington. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com.

Advisory services offered through Balboa Wealth Partners, Inc. An SEC registered Investment Adviser.  Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC

Balboa offers advisory services independent of Chalice.  Neither firm is affiliated.

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(1) http://gflec.org/wp-content/uploads/2015/01/a738b9_b453bb8368e248f1bc546bb257ad0d2e.pdf

(2) https://corporate.troweprice.com/Money-Confident-Kids/images/emk/2015-PKM-Report-2015-FINAL.pdf

(3) http://www.countryfinancialsecurityblog.com/cfsi-april-2013/

(4) http://www.dailyfinance.com/2009/06/11/parents-would-rather-talk-with-their-kids-about-sex-than-money/

(5) http://www.joe.org/joe/1994august/a6.php