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Our Midyear 2024 Market Update

By Jeff Gilbert 

Here we are, halfway through 2024 already—have you paused to take time for a financial check-in? How’s your money game going? Now is the perfect moment to slow down and notice the economic trends shaping our market and your portfolio. Despite the hurdles of 2023, we’ve spotted some bright spots in key sectors during the first half of this year.

Read on for a closer peek at our midyear market update. Let’s unpack what’s been shifting and get you set up for success in the months ahead.

Markets Are Up

So far in 2024, financial markets have shown steady, positive performance. While the Dow Jones took a dip in May, the S&P 500 extended its bull market gains into the end of the month. 

Around the same time, the Federal Reserve unanimously chose to keep policy rates unchanged for the sixth meeting in a row, and rates have remained steady since the beginning of 2024. That being said, strong inflation numbers from the first quarter suggest that hitting the 2% inflation target might take longer than anticipated. What’s more, the U.S. GDP has shown positive but slower-than-expected growth coming out of the first quarter. 

This combination of stable interest rates, persistent inflation, and soft GDP growth suggests that the market may see some cautious optimism but also volatility as investors figure out their next moves. How these factors will shape the stock market for the remainder of 2024 is still largely uncertain.

Employment Remains Strong

As of May 2024, the U.S. employment scene shows steady progress with an unemployment rate of 3.9%, which translates to about 6.5 million job seekers. In fact, many leading economists have noted that the labor market remains strong and stable, offering inflation-adjusted pay raises to the average worker. Additionally, real hourly earnings, which are wages adjusted for inflation, grew by 0.5% in April 2024 compared to the previous year.

GDP Is Soft

Despite facing numerous challenges, U.S. consumer spending remained strong throughout 2023. However, this momentum has started to fade. In the first quarter of 2024, the economy posted an annualized GDP growth of 1.3%, which was slightly below the forecasted 1.6%. Additionally, consumer spending grew by 2%, falling short of the anticipated 2.5%.

For 2024, real GDP (GDP adjusted to remove the effects of inflation) is projected to slow to 1.5% in 2024. Looking ahead, real GDP growth is expected to average 2.0% annually from 2024 to 2027—slightly below last year’s prediction of 2.5%.

The Federal Reserve, Interest Rates, and Inflation 

The Federal Reserve has raised its key interest rate to the highest level in 16 years to combat high inflation. After a streak of 11 rate hikes between 2022 and July 2023, the Federal Reserve has continued to hit pause for 2024 while reassessing the current economic growth and inflation. Inflation still remains above the Fed’s 2% target, though it remains lower than its peak of 9.1% in 2022. It’s yet to be seen whether interest rates, or inflation, will bounce back higher and hamper the economy for the remainder of 2024. 

Global Economies Face Similar Issues

Global growth is projected to continue growing at 3.2% for the remainder of this year and into 2025, the same pace as 2023. The global growth forecast for the five years from now is the lowest we’ve seen in decades, largely due to the tight policies needed to manage inflation, price instability, and continued geopolitical tensions. Inflation is expected to decline to 5.9% in 2024 and 4.5% in 2025. Despite the cautious outlook, the MSCI All Country World Index is up over 7% so far this year.

Prepare for Your Future Today

With that said, grasping the economic forecast is just the start—tackling the remainder of 2024 calls for a proactive strategy.

Consider your future: Are you saving enough for retirement? How much can you safely withdraw annually from your accounts? Do your investments align with your financial objectives and risk tolerance? While we can’t control the actions of the Federal Reserve, Congress, or inflation, we can take measures to preserve our financial well-being. The key lies in crafting a robust and flexible financial plan.

At Balboa Wealth Partners, we create personalized financial plans that guide you toward success. Our unique approach is designed to help you capitalize on any market situation. To schedule a complimentary call, give me a call at 949-445-1465 or email me at [email protected].

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 over 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, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email [email protected]. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor 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 Kingswood Capital Partners, LLC, member FINRA, SIPC.

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

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Retiring Comfortably: Determining Your Retirement Savings Target

By Jeff Gilbert

How much cash do you need in order to kick back in retirement? The experts throw around figures like 55-80% of your pre-retirement income, but is that the full story?

Spoiler alert: it’s not. Your dream retirement is as unique as you are. Maybe you’re envisioning cozy nights in your hometown surrounded by loved ones. Or perhaps you’re dreaming of globe-trotting adventures or soaking up the sun on a tropical beach. The bottom line? Your retirement, your rules.

But before you start picturing those carefree days, let’s dig into the details. Here are a few key questions to help you pin down your magic retirement savings number.

What’s Your Ideal Retirement Date?

Your age (now and in retirement) is one of the most significant factors to consider when determining how much money you need to save. If you want to retire early, you’ll have fewer years to save for a longer retirement. And if you start claiming Social Security benefits before full retirement age, you’ll also have to factor in a smaller monthly benefit amount.

The state of the stock market can also play a role in how much money you need and how long your money lasts. A Vanguard study found that you have a 31% higher chance of running out of money if you retire near or during a bear market. Of course, you have no way of knowing if we’ll be in a bear or bull market when you retire—but this is a scenario you must account for in your retirement planning. 

What Do You Want Your Retirement Life to Look Like?

Have you thought about the type of lifestyle you want to have in retirement? If you know you want to travel, play golf, or spend time with your grandkids, you need to factor in what that looks like and how much it will cost.

For example, if you plan to travel, you’ll need to consider: 

  • Will you be traveling stateside or internationally?
  • How often do you want to travel?
  • How would you like to get there? (e.g., car, plane, or RV)
  • Where would you like to stay? (e.g., 5-star hotel, Airbnb, with family members)
  • Will you be traveling with your family? Would you like to cover their expenses too?
  • Will you maintain your primary residence? If so, who will watch your house and maintain it while you’re gone?

Even if your dream is simply to spend time with your grandkids, you’ll still need to think through your expectations and expenses. To some people, “spending time with grandkids” means babysitting a few times a week. To others, it means footing the bill for all-expenses-paid trips to various destinations of their choosing. Whatever it is you want to do with your time, map out the details so you can have a clear picture of how much you’ll need to make it a reality. 

Will You Earn an Income in Retirement?

Working during your retirement is a great way to stay active, keep your mind sharp, and maintain a sense of purpose. Some retirees choose to build a second career through consulting. Others decide to pick up a low-stress, part-time job at a family office or retail store. No matter what you do, if you plan to work during retirement, you won’t have to save as much to live comfortably. 

How Much Debt Do You Carry?

Bringing debt into retirement has two major drawbacks: 

  1. It reduces the amount of cash flow you have for housing, travel, hobbies, and other non-essential purchases.
  2. It can potentially drain your retirement savings quicker, which means you may run out of money or have to adjust your lifestyle down the road.  

If you carry debt, take a close look at what you owe and figure out how much cash flow you’ll need in retirement to cover these expenses. Some people prefer to pay off any high-interest consumer debt before they retire. Others will take it one step further by paying down their mortgage and auto loans too.

What Kind of Healthcare Coverage Do You Expect to Have?

Right now, you most likely have health insurance through your employer. When you stop working, you’ll need to have a plan for healthcare coverage another way. You may be able to hop on your spouse’s plan, if he or she is still working. Or you can get coverage through the healthcare marketplace. You qualify for Medicare starting at age 65, but even then, you may want additional coverage to pay for prescription drugs, dental care, eye exams, and other expenses. 

Retirees sometimes fail to fully plan for expenses during the later stages of retirement, and medical care often tops the list. It’s estimated that retirees will use 15% of their income for health expenses, and the average retired couple could see healthcare expenses of approximately $315,000 after age 65. Don’t let this be a planning oversight that prevents you from retiring comfortably!

Will You Have Any Dependents?

Your kids may be grown and out of the house by the time you retire, but that doesn’t necessarily mean you’ll stop supporting them financially. Over 79% of parents said they still give financial support to their adult children (ages 18 to 34), according to a Merrill Lynch study, and the COVID-19 pandemic caused a boomerang effect, with 67% of adult children still living at home with their parents after returning home in need of financial help.

And even if you aren’t helping your kids out with daily expenses, you may want to contribute to their weddings or down payments on home purchases down the road.  

Where Will You Live?

Housing may be your biggest expense in retirement. And even if your home is paid off, you might want to consider downsizing to a smaller place that requires less maintenance and has cheaper utility costs. 

To save even more, you can think about relocating to an area that has an overall lower cost of living. For example, the cost of living in Orlando, FL, is only 3.3% higher than the national U.S. average, whereas the cost of living in Los Angeles, CA, is 76.2% higher than the U.S average. As you can see, where you live can make a huge impact on the overall cost of retirement.

What Is Your Family’s Health History?

The average 65-year-old man has a 35% chance of living until age 90; that rate goes up to 46% for a woman the same age. And while life expectancy is unpredictable, if your family has a strong history of living to age 90 and beyond, your chances may be even greater than these odds. In this case, you’ll need to determine if your planned retirement savings will last long enough. 

Similarly, if you have known health conditions and/or a family history of health problems that could affect your life span, you’ll want to consider this too. 

Plan Ahead for a Comfortable Retirement

Figuring out the ideal amount for your retirement isn’t as simple as plugging numbers into a formula. It’s a personalized journey that involves understanding your financial landscape, family dynamics, and future aspirations.

At Balboa Wealth Partners, we’re dedicated to simplifying retirement planning and tailor our solutions to fit your unique needs, which include determining your retirement savings goal. With us by your side, you can gain the confidence to make informed financial decisions, knowing that your money is in good hands. Let us take the weight off your shoulders so you can enjoy life without worrying about your finances.

Ready to partner with a financial planner who cares about your future as much as you do? Give me a call at 949-445-1465 or email me at [email protected], and let’s start building your customized retirement plan together.

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 over 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, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email [email protected]. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor 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 Kingswood Capital Partners, LLC, member FINRA, SIPC.

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

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Planning for the Long Haul: Addressing Inflation’s Impact on Your Financial Plan

By Jeff Gilbert

Inflation acts like erosion as it quietly eats away at the value of our money—often without us realizing it until many years down the road. You might only notice the effect it’s had on your day-to-day life when there’s a bit less in your bank account than before, or when your grocery shopping doesn’t stretch as far as it used to. But when it comes to financial planning, inflation’s impact can be far more significant, particularly for retirees relying on fixed or slowly increasing incomes like Social Security or pensions without cost-of-living adjustments (COLA).

Rising Costs Negatively Impact Income

Let’s start with income, whether you are still working or retired. Some of the largest money problems in the U.S. are rooted in our incomes failing to keep up with rising costs. Take college costs, for example. One of the chief causes for the massive amount of student loans today ($1.77 trillion as of Q3 2023 according to the Federal Reserve) was the disparity between stagnant wages over the past decade and college tuition inflation, which has averaged 8% annually, according to Bankrate.com. 

This rate of increase not only dwarfs wage/salary COLAs, but most prudent college-saving investment vehicles as well. For parents trying to save and pay for their children’s college expenses, this type of inflation could ruin the best-laid financial plans.

Medical and healthcare inflation ranks right behind college tuition as one of the fastest-rising expenses, especially for retirees who tend to incur these costs more often than most other adults. According to Deloitte, a leading accounting and financial consulting company, from 2001 to 2021, healthcare costs increased a clip of 3.3% annually, nearly a third more than the average of all goods and services, and consumer incomes aren’t enough to keep pace.

Inflation also creeps into other sectors of our financial lives. From travel expenses, to purchasing a car, building supply and labor costs that add up into the price of a new home, each little tick up in inflation figures can compound into driving up the final cost of many of the goods and services we enjoy daily. It is for this very reason that the Federal Open Market Committee (Federal Reserve) has been so adamant about driving down the high inflation we experienced post-pandemic.

Wise Investments Can Curb Inflation’s Devastating Effects

On the asset side, inflation is a critical reason we need to invest our money wisely. As the post-pandemic years showed us, high inflation (and the accompanying high interest rates that arise as a result), can have a devastating effect on whether our investments (and purchasing power) are truly growing, keeping pace, or falling behind. For example, if inflation is cited as 6% but your bank CD or savings account is only yielding 3-4%, or your monthly pension benefit does not have a cost-of-living increase each year, the purchasing power of your money is falling behind. 

Factor Inflation Into Your Financial Plan

Considering these factors, it’s essential to integrate inflation into your financial plan, whether you’re doing it independently or with a financial advisor. Even though there are many financial planning software programs, inflation assumptions still can vary widely. Over a 25-year retirement period, a person’s retirement expenses could potentially double by the later years.

Whether you’re already retired, approaching retirement, or saving for future goals, adjusting inflation assumptions for different expense categories can increase the accuracy of your financial plan.

And like it or not, inflation will always be a factor throughout our lives, which highlights the need to address its impact in every financial conversation. Are you seeking a financial partner to support your long-term financial well-being? Balboa Wealth Partners is here for you. Let’s tackle the important questions together and move toward your financial goals with confidence. Contact us today at 949-445-1465 or email me at [email protected].

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 over 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, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email [email protected]. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor 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 Kingswood Capital Partners, LLC, member FINRA, SIPC.

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

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Top 10 Tax-Planning Strategies to Maximize Your Savings

By Jeff Gilbert

Tax planning often falls into the category of tasks we tend to procrastinate—those things we know we should do but would rather avoid. While it’s tempting to delay until tax day approaches, being proactive with your tax-planning efforts can ultimately save you both time and money. 

At Balboa Wealth Partners, our mission is to guide our clients with strategies to retain more of their earnings by reducing tax liabilities and optimizing savings. Here are my top 10 tax-planning strategies for 2024 to consider in your financial plan.

Maximize Your Retirement Contributions

Maximizing your retirement contributions is one of the best ways to minimize your tax liability. This is because retirement plans offer useful tax advantages that are not available if you were to simply put your money in a savings account. There are several accounts to consider, depending on your unique circumstances:

  • 401(k), 403(b), and 457 Plans: These accounts allow you to contribute up to $23,000 annually for 2024 ($30,500 if over age 50). Not only that, but contributions done pre-tax won’t show up as part of your annual income. This is a great way to defer taxes until your retirement years when you could potentially be in a lower tax bracket.
  • Traditional IRA: Contributing to a traditional IRA is another way to reduce your tax liability if your income is within certain limits. You can contribute up to $6,500 for 2023 and $7,000 for 2024, with a $1,000 catch-up contribution limit for those over age 50. Unlike the qualified retirement plans listed above, contributions to a traditional IRA can be made until the April 15th tax filing deadline.
  • Roth IRA: This is an attractive savings vehicle for many reasons, including no required minimum distributions (RMDs), tax-free withdrawals after age 59½, and the ability to pass wealth tax-free to your heirs. The contribution limits are the same as traditional IRAs. However, Roth IRAs have income restrictions and you may not be able to open an account outright if you are above certain limits.

Consider Roth Conversions

If you are outside of the income eligibility threshold for Roth IRAs but still want to take advantage of the Roth tax benefits, a Roth conversion could be the right strategy for you. It works by paying the income tax on your pre-tax traditional IRA and converting the funds to a Roth IRA.

You could also consider the mega backdoor Roth and backdoor Roth IRA strategies:

  • Mega Backdoor Roth: With this strategy, you would convert a portion of your 401(k) plan to a Roth. This involves first maximizing the after-tax, non-Roth contributions in your plan, then rolling it over to either a Roth 401(k) or your Roth IRA. With the mega backdoor Roth, you convert a portion of your 401(k) plan to Roth dollars.
  • Backdoor Roth IRA: In this case, you would make an after-tax (non-deductible) contribution to a traditional IRA. You then immediately convert the funds to a Roth IRA to prevent any earnings from accumulating. This strategy makes sense if you don’t already have an IRA set up yet.

All three Roth conversion strategies will allow the contributions to grow completely tax-free and allow you to avoid future RMDs, which is helpful if you expect to be in a higher tax bracket in the future. 

3. Contribute to a Health Savings Account

An efficient but underutilized way to maximize your savings and minimize your taxes is to contribute to a health savings account (HSA). HSAs offer triple tax savings: contributions are tax-deductible, earnings grow tax-free, and you can withdraw the funds tax-free to pay for medical expenses. Unused funds roll over each year and will essentially become an IRA at age 65, at which point you can withdraw funds penalty-free for non-medical expenses. You must be enrolled in a high-deductible health plan in order to qualify for an HSA. 

HSAs can be a great tax-management tool if you are able to pay medical expenses out of pocket and leave the HSA funds to grow. The 2023 contribution limits for HSAs are $3,850 for individuals and $7,750 for families. (The 2024 limits increased to $4,150 and $8,300, respectively.) If you are 55 or older, you may also be able to make catch-up contributions of $1,000 per year. You have until April 15th for your contributions to count for the previous year’s tax return. 

4. Contribute to a Donor-Advised Fund

If you itemize your tax deductions because of charitable contributions, you may want to consider investing in a donor-advised fund (DAF). You can contribute a lump sum all at once and then distribute those funds to various charities over several years. With this strategy, you can itemize deductions when you make the initial contribution and then take the standard deduction in the following years, allowing you to make the most out of your donation tax-wise.

You can also donate appreciated stock, which can further maximize your tax savings. By donating the appreciated position, you avoid paying the capital gain tax that would have been due upon sale of the stock and you are effectively donating more to your charities of choice than if you had sold the stock and donated the proceeds.

5. Make a Qualified Charitable Donation

If you own a qualified retirement account and are at least 70½, you can use a qualified charitable distribution (QCD) to receive a tax benefit for your charitable giving. Since this is an above-the-line deduction, it can be used in conjunction with other charitable tax strategies. A QCD is a distribution made from your retirement account directly to your charity of choice. It can also count toward your RMD when you turn age 73, but unlike RMDs, it won’t count toward your taxable income. Individuals can donate up to $100,000 in QCDs per year, which means a married couple can contribute a combined amount of $200,000!

6. Utilize Tax-Loss Harvesting

Tax-loss harvesting involves selling investments at a loss in order to offset the gains in your portfolio. By realizing a capital loss, you are able to counterbalance the taxes owed on capital gains. The investments that are sold are usually replaced with similar securities in order to maintain the desired asset allocation and expected return. 

With the ups and downs the market experienced in 2023, chances are you have some capital losses that can be utilized. For example, if you are expecting a large capital gain this year, sell an underperforming stock and harvest the losses to offset your gain. 

Tax-loss harvesting can also be used to reduce your ordinary income tax liability if capital losses exceed capital gains. In this case, up to $3,000 can be deducted from your income, and capital losses in excess of this amount can be carried forward to later tax years. 

7. Understand Long-Term vs. Short-Term Capital Gains

Understanding the tax implications of long-term versus short-term capital gains can go a long way in reducing your tax liability. For instance, in 2023 a married taxpayer would have paid 0% capital gains tax on their long-term capital gains if their taxable income falls below $89,250. That rate jumps to 15% and 20% for taxable incomes that exceed $89,250 and $553,850, respectively. Understanding where you fall on the tax table is an important part of minimizing your liability. 

Gains that are short term in nature (held less than one year) will be taxed at your marginal tax bracket, which could be up to 37%! Knowing both the nature of your gain, as well as your tax bracket, is crucial information if you want to minimize your tax liability. 

8. Take a Qualified Business Income Deduction

Business owners involved in partnerships, S corporations, or sole proprietorships can take a qualified business income deduction (QBID) to help reduce taxable income and maximize tax savings. This allows for a maximum deduction of 20% of qualified business income, but limits apply if your taxable income exceeds a certain threshold. To qualify for this deduction, consider reducing or deferring income so that you can remain below the phase out threshold. A great way to do this is to maximize your retirement contributions to tax-advantaged accounts (as discussed in point #1).

9. Consider Estate Tax-Planning Techniques

Estate tax-planning techniques can also be an effective way to reduce current-year tax liability. For 2024, the lifetime exemption for assets that can be given gift-tax-free is estimated at $13.61 million for individuals and $27.22 for married couples (12.92 million for 2023). 

The annual gift tax exclusion increased to $18,000 per recipient in 2024, up from $17,000 in 2023. This is the annual amount taxpayers can give tax-free without using any of the above-mentioned lifetime exemption. Not only that, but the annual exclusion applies on a per-person basis, so each taxpayer can give $18,000 per person to any number of people per year. 

Though gifting and other estate tax-planning strategies are not tax-deductible, they can help to significantly reduce your taxable estate over time.

10. Make Sure Your Advisory Team Is Working Together

Beyond consulting with a tax professional, you’ll want to be sure your entire financial team is working together to provide cohesive oversight and guidance. This should include professionals like CPAs, financial advisors, investment advisors, and estate attorneys. Your finances don’t exist in a bubble and so neither will your tax-minimization strategies. When your advisory team works together, strategies are easier to identify and execute, and proactive tax solutions become much easier to implement, reducing stress and your tax bill.

Take Action Today

Tax planning doesn’t need to feel confusing, especially when you have the guidance of an advisor with years of experience in tax strategy. At Balboa Wealth Partners, we specialize in simplifying the complexity of the tax code and creating a plan to meet your specific needs. If you’re ready to reduce your tax burden and boost your savings, we’re here to assist you. Schedule an initial consultation by contacting us at 949-445-1465 or email me at [email protected].

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 over 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, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email [email protected]. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor 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 Kingswood Capital Partners, LLC, member FINRA, SIPC.

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

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Season’s Greetings: Warm Wishes From Our Team!

By Jeff Gilbert

Wishing you a joyful holiday season from our team at Balboa Wealth Partners! As we reflect on the past year, filled with both highs and lows, we remain deeply grateful for clients like you. Your trust in us is truly appreciated, and we value the opportunity to deliver exceptional service to you and your loved ones. Our mission is to instill confidence in your future so you feel prepared to face whatever lies ahead. May this holiday season bring you peace and joy, with the assurance that we’re here to guide your steps to greater financial success.

Looking Back on 2023

Before we bid farewell to 2023, we want to take a moment to reflect on the challenges, triumphs, and growth we’ve experienced over the past 12 months. In the face of continued economic uncertainties, including inflation, stock market volatility, recession concerns, and international turmoil, we’ve continued to persevere unwavering—and we truly feel better equipped for the journey ahead. While not every day was easy, the challenges we encountered have contributed to our collective growth. Turning the page to a new year often comes with mixed emotions, but we are closing out 2023 with optimism and high hopes for the future.

Looking Ahead to 2024

We hope you feel the same excitement we do about the potential 2024 holds. Let’s embrace this transition by dreaming big about the possibilities that lie ahead in the coming year. The holiday season is a perfect time to recharge, set fresh goals, and reignite our motivation; let’s prepare to hit the ground running come January! The canvas of the new year is blank—what masterpiece will you create?

Gratitude for a Wonderful Year

At Balboa Wealth Partners, we extend our deepest gratitude to you, our valued clients, for being the cornerstone of our success. As always, your loyalty has opened new doors, and your trust has paved the way for enduring relationships. Everything we achieve as a firm is a reflection of your support. We understand that life’s twists and turns are inevitable, and we want you to rest assured that, whenever you need advice, guidance, or a listening ear, we are here for you.

From all of us at Balboa Wealth Partners, here’s to a joyful holiday season and a prosperous and fulfilling new year! Thank you for allowing us to be part of your financial journey.

Schedule a Year-End Review

As the year draws to a close, now is the perfect time to review your financial plan so your finances are primed for a successful 2024. To schedule a review and analysis, feel free to give me a call at 949-445-1465 or email me at [email protected]. Don’t hesitate to get in touch—we look forward to hearing from you!

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 over 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, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email [email protected]. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor 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 Kingswood Capital Partners, LLC, member FINRA, SIPC.

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

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Balboa Wealth Named Runner-up in AZ As One of the 50 Fastest Growing RIAs

By Jeff Gilbert

Balboa Wealth Partners is proud to announce that we’ve been selected as a runner-up in Arizona for Citywire’s 50 Growers Across America report! We’d like to thank our dedicated clients for allowing us to be your advisor of choice, as well as our team for providing you with the tools needed to grow and shield your wealth. Here’s more about the report and how we made it on the list. 

How the List Was Determined

The 50 Growers Across America special report is the brainchild of former Citywire RIA editor Alex Rosenberg, which he implemented in 2020. Each year, the Citywire team receives and thoroughly reviews information from Discovery Data to determine the top 50 fastest-growing RIAs across the country. They run this list through several layers of analysis to get an accurate picture of which independent advisors are eligible for consideration. 

They then use this data to assign each RIA what they term a “growth factor.” This number determines each advisor’s place on the list and is based on their performance over the previous year in areas such as percentage growth in AUM, monetary growth in AUM, and percentage growth in employees. Each firm on the list is then contacted by the team at Citywire for participation in the report and is invited to an awards ceremony. 

Pictured below is Alex Aretakis, one of our advisors in the Scottsdale, Arizona office, accepting this award at the conference in Austin.

Balboa at Citywire conference

What We Have Done to Grow

We strive for excellence in all we do at Balboa Wealth Partners, and our success is proof of that mindset. While there is a lot involved in how we pursue and achieve excellence, there are a few main factors we can attribute to our growth. 

Clients Come First

Our mission here at Balboa Wealth Partners is to serve as a guide and advocate to our clients so they can turn their financial goals into reality. We are passionate about listening and understanding what is important to you. Beyond investment and financial planning advice, we care deeply about helping you reach your short-term and long-term goals. 

Attract New Advisors

One of the main goals of our firm, along with serving as a trusted advisor for our clients, is to provide a supportive environment where Investment Advisors can have the collaboration and resources of a larger firm but still run their businesses independently. We have even added multiple team members to our AZ office in 2022 alone.  

Industry Expertise

Not only do our advisors represent a wealth of industry expertise in various areas, but as a firm, we make it a goal to stay on top of market trends and share that knowledge with our clients. We do this by publishing a brief weekly market commentary on our website, along with other content on the topics of wealth management, retirement, and investing. 

We Are Grateful for You

While we are certainly proud to be included on this esteemed list, we wouldn’t be here if it wasn’t for our clients. We value the trust you place in us to guide you toward financial independence as we help you pursue your financial goals with confidence. 

At Balboa Wealth Partners, our goal is to deliver uncompromising advice, exceptional investment strategies, and outstanding service to our clients. Thank you for helping us become one of the fastest-growing RIAs in Arizona in 2022. We look forward to years of success in providing you with value and services that help your wealth grow. If you have any questions or would like more information on partnering with us, reach out to us at 949-445-1465 (CA), 480-801-5100 (AZ), or email [email protected]. 

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 over 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, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email [email protected]. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor 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 Kingswood Capital Partners, LLC, member FINRA, SIPC.

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

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My Experience at the Cooperstown Adult League Baseball Tournament

By Jeff Gilbert

For many years, I’ve maintained a passion for America’s favorite pastime, playing in adult baseball leagues throughout the seasons. These leagues have not only been a source of camaraderie but also a way to keep the thrill of the game alive in my adult years. A few times each year, I’ve had the privilege of teaming up with old friends and teammates to participate in baseball tournaments. 

Today I wanted to share a bit about my unforgettable experience playing on the iconic Doubleday Field in Cooperstown, New York, and my first visit to the Baseball Hall of Fame.

Doubleday Field

It was a dream invitation—I was invited to play for the first time in the adult league baseball tournament in Cooperstown, a veritable mecca of baseball. Arriving in Cooperstown, I was immediately struck by the idyllic beauty of the town, but it was the sight of Doubleday Field that truly took my breath away. As I stepped into the historic ballpark, the same turf once graced by baseball legends, I couldn’t help but feel a profound connection to the history of the sport.

The Hall of Fame 

Beyond the tournament, my time in Cooperstown held another highlight: my first visit to the Baseball Hall of Fame. Walking through the halls of this shrine to the sport, I was surrounded by baseball’s rich history, from Babe Ruth’s iconic bat to Jackie Robinson’s game-worn jersey. It was an awesome reminder of the profound impact baseball has had on American culture as well as the hearts of its fans.

A Championship Moment

As the tournament progressed, my team advanced, and finally we stood victorious on Doubleday Field, champions of the Cooperstown adult league baseball tournament. It was an incredible moment, a culmination of years of dedication to the game.

My journey to Cooperstown was more than just a baseball tournament; it was a pilgrimage to the heart and soul of the sport I love. It was a reminder that no matter how many years I’ve played, the game still has the power to surprise, inspire, and bring people together.

Team Up to Leave a Legacy

At Balboa Wealth Partners, we believe in creating a life that includes your passions and purpose. We take the values you love and integrate them into a financial plan that builds into a lasting legacy. If you’re ready to team up, give me a call at 949-445-1465 or email me at [email protected].

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 over 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, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email [email protected]. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor 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 Kingswood Capital Partners, LLC, member FINRA, SIPC.

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

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Don’t Leave the IRS a Tip: The Importance of Tax Planning and Reviewing Your Return

By Jeff Gilbert

Instead of working on our taxes, most of us would rather…well, do just about anything else. Sure, it’s not exactly fun, but one of the best ways to retain more of your wealth (and we all want that) is to reduce the burden of taxation. An ongoing tax strategy can reduce your tax bill and keep as much of your money as possible out of the IRS’s hands.

Think of it like a game: If you understand all the rules of tax law, you will have a greater chance of “winning”—or, in this instance, reducing your tax bill and paying less. Rather than just crossing your fingers and hoping for the best, let’s look at some tips on how to make that a reality. 

Build a Tax-Efficient Retirement Plan

When working with your financial advisor, retirement planning will often be a key point of conversation. By stress-testing your plan, you can quickly see if your current retirement accounts, savings rates, and other assets will be adequate for the retirement lifestyle you desire.

A direct way to reduce your tax bill is to contribute money into tax-deferred savings accounts, such as a 401(k) or IRA. But, in order to maximize your savings, you will need to determine both your current cash flow needs and your ideal retirement income. A proper financial plan will look at both factors and determine the best way to use your tax-deferred savings accounts to save you money both now and in the future. 

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 reduce your tax liability. 

Contribute to Your Health Savings Account

Health savings accounts (HSAs) offer triple the tax savings. This may sound too good to be true, but HSAs have no federal income tax, no state or local taxes, and no Federal Insurance Contribution Act (FICA) taxes. If you are eligible for an HSA, your money will be tax-deferred and can be withdrawn tax-free to pay for medical expenses. 

Because HSA account balances roll over from year to year, by contributing to the limit each year, you can build up quite a nest egg to cover either current medical expenses or future medical expenses in retirement. Think of it as a Roth IRA for medical expenses. 

As of 2023, HSA owners now have higher contribution limits to help them do just that. If you have individual coverage, you can contribute $3,850; for family coverage, the limit is $7,750. There is also an extra catch-up contribution of $1,000 available for those age 55 and older. If you can’t max out the yearly limit, attempt to contribute enough to cover your deductible and take advantage of your employer match, if available. 

Use a Roth IRA to Transfer Wealth

Roth IRAs are an attractive savings vehicle for many reasons, including no required minimum distributions (RMDs), tax-free withdrawals after age 59½, and the ability to pass wealth tax-free to your heirs. Although Roth IRAs don’t have RMDs, other accounts like a traditional IRA might. This will force you to increase your income and could bump you up to a higher Medicare range, which can add $100 to $150 each month in premiums.

You probably know the effects taxation can have on your assets and the inheritance you hope to pass on to future generations. For example, if you passed down a traditional IRA, non-spouse beneficiaries used to be able to stretch the distributions from that account over the beneficiary’s life, but now they have to liquidate the account within 10 years of inheriting it (with some exceptions), thanks to the new SECURE Act. This significantly decreases the value of the account due to the amount of taxes paid in a short time. But, if you pass down a Roth IRA instead, there is no income tax due on the distributions, as long as the account is held for more than five years and the account holder is 59½ or older. 

If you have traditional IRAs already or earn too much to qualify for a Roth IRA, consider a Roth conversion to remedy the tax loss. The basic process to convert your IRA is to withdraw the amount you’d like to invest in a Roth, pay the tax owed on the distribution, then reinvest it into a Roth account. Be sure to work with a professional to determine the best time to do this so you don’t push yourself into a higher tax bracket or are forced to use funds from the account to pay the extra taxes on the distribution.

Deduct Eligible Charitable Contributions

Annual gifts to qualified charitable organizations may be deemed an eligible itemized deduction. Under the Tax Cuts and Jobs Act, fewer taxpayers itemize deductions due to the doubling of the standard deduction. Regardless, charitable giving is still a useful tax-minimization strategy.

In order to benefit from charitable giving, you’ll have to plan ahead. With the new higher standard deduction, you’ll need to make sure your total deductions for the year, giving included, exceed $13,850 for an individual filer and $27,700 for those married filing jointly. If your deductions fall below this amount, consider bunching your giving or doing several years’ worth of giving in one year.

You may also want to look into using a donor-advised fund to combine all charitable contributions in a year and then distribute the funds to various charities over several years. With this strategy, you may be able to itemize deductions in one year and take the standard deduction in the following years so you can achieve a tax benefit that you may not have received otherwise.

Review Your Previous Tax Returns

You can learn a lot from the past. Look at your previous tax returns with a professional to search for deductions or credits you may have missed, opportunities to lower taxable income, and plan for the next tax season. Take these factors into consideration when making a tax plan for the future:

  • Review notable tax law changes for 2023 that may affect you
  • Review your capital gains and losses
  • Review your retirement savings options
  • Consider Roth IRA conversions
  • Consider additional year-end tax strategies
  • Understand potential tax law proposals

Get Ahead With Tax Planning

Time spent on your tax strategy is worth the effort—as it can potentially save you money both now and in the future. But the key is partnering with an experienced professional who can help you understand how each possible opportunity works and how it fits into your big-picture strategy and long-term goals. 

With years of experience in financial and tax planning, our team at Balboa Wealth Partners knows how to implement appropriate tax-minimization strategies to help you save more of your hard-earned money. And our mission is to be your guide to financial independence. 

If you have questions about any of these tax strategies and whether they’d be right for you, give me a call at 949-445-1465 or email me at [email protected] to schedule a  no-obligation conversation. To reach our Scottsdale office, call 480-801-5100 or email [email protected].

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 over 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, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email [email protected]. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor 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 Kingswood Capital Partners, LLC, member FINRA, SIPC.

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

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