Broker Check

Window Dressing

| May 08, 2017
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Hello Hello!! So as spring is here…and the April 18th tax deadline is behind us…well for most...some on extension…I am getting my house painted …again, figured I could get thru one more winter…barely did! Bob the painter is on the job…house power washed…scrapping and sanding as we speak…priming as well, finishing with a freshly painted house in the next couple of weeks!

All of this got me thinking about window dressing because it is all about looking good right? Window dressing definition (Merriam- Webster) 1: the display of merchandise in a retail store window 2 a: the act or an instance of making something appear deceptively attractive or favorable. b: something used to create a deceptively favorable or impression. We recently had one of our members Restyle and take a $1,000,000+ lump sum pension!! Part of the allocation of those funds was to bonds. So we brought on a bond manager. Who goes out and buys bonds! The money he was going to manage came over to him toward the end of March. Upon receiving the $$ the manager called us to explain that he wanted to wait until after the quarter end and the corresponding “window dressing” that many…most? FUND managers engage in…(as this is often a time when the fund discloses its holdings…we prefer to know what we own all the time…and point in fact mutual fund investors don’t own anything other than shares of the fund...ok I digress) as this often results in bonds prices being driven artificially higher thus costing more. The point is how is your money being managed??...transparently…access to the folks who are making the buy/sell decisions?...where “window dressing is not an issue…in a manner where every dollar has a name?...and you don’t need to have $1,000,000 to access these managers…with the advancements in information and technology you can get these investments for as little as $25,000…sometime even less!!...and while I’m speaking of “window dressing” …so you got your tax return prepared and filed...with all the corresponding tax and financial savings attributable….ok maybe not all but some!!?? I mean you do have a tax professional and or financial advisor correct??...if your only/primary contact with the folks preparing your taxes was between the end of January and mid-April, when the other 2,000+ returns are being prepared, how much tax planning are you getting…ohhh and btw 2016’s tax planning in most cases needed to be done and implemented in 2016…not the spring of 2017!...and ohh you’ve got a financial advisor great!! What did you pay her for tax planning-reduction? And what tax planning have you done Q1 2017?? Are you falling victim to financial/tax advisory “window dressing” working with folks who “don’t know/don’t care?...Questions - contact us.

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