We are celebrating our 100th episode of THE FINANCIAL COMMUTE this week! 

Thank you for listening and supporting Chris and our guests these past two years. We are excited to continue empowering our listeners with financial confidence and knowledge through this podcast. 

To make this episode extra special, host Chris Galeski had a conversation with Grant Williams, author of Things That Make You Go Hmmm…, host of The Grant Williams Podcast and co-founder of Real Vision.
  
Here are some key takeaways from their discussion:

- It is important to decide if you are a speculator or an investor. 
- Investors must be patient and adopt a long-term perspective in their investment strategies, focusing on the intrinsic value of what they are buying, and aiming to hold assets for extended periods of time, often through fluctuations.
- A speculator’s primary goal is to capitalize on market trends. This can be riskier since they are trying to time the market, which is often impossible. 
- Grant highlights gold as a reliable store of value during turbulent times.
- With increasing geopolitical risks, high debt levels, inflation, and upcoming policy decisions, this is a time of instability where investors need to not only worry about growing their wealth but keeping it. 
- Grant encourages investors to stay updated with the news and consider how governments and central banks may react to certain events or solve issues, and how their policies could impact one’s investments. It is important to be adaptable in your financial strategy as circumstances change.
- Grant also shares his thoughts on the upcoming U.S. election and potential tax policies of each candidate.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Chief Investment Officer Meghan Pinchuk to discuss the current real estate environment and investment opportunities.

Here are some key takeaways from their conversation:

- There is a noticeable drop in real estate transaction volume due to high interest rates and sellers holding out for better prices.

- Many real estate loans are coming due soon, creating potential opportunities for buyers as sellers may be forced to refinance at higher rates.

- Potential interest rate cuts are anticipated but are not guaranteed. Fed Chair Jerome Powell is speaking this Friday, where he may release more information on rate cuts.

- Inventory for single-family homes in California is low, which could drive prices higher if interest rates drop and more buyers enter the market.

- Meghan and Chris agree investing in real estate independently allows for greater control and potentially higher returns but requires time and capacity to handle tenant issues. For those looking for an alternative option, investing through a fund can offer access to better expertise and opportunities but may involve fees and less control.

- It is important to properly evaluate real estate investments by calculating potential income, expenses, net operating income, and comparing it to other investment opportunities. 

- People can have a lot of emotional ties to real estate. It’s important to understand what certain properties mean to you and how selling, renting, or other actions could potentially affect family dynamics, emotions, etc. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Managing Director of Investments Sasan Faiz to discuss inflation, interest rates, and monetary policy.

Here are some key takeaways from their conversation:

- Some people think that when inflation comes down, prices should decrease. That would be “deflation,” which is a concerning economic indicator. Inflation measures how much more expensive goods and services become over a certain period, so when inflation slows down, that means prices won’t increase as much or will stay the same.
- Sasan says the risk of stagflation (when inflation remains high while economic growth slows and unemployment increases) is currently high. 
- Because supply chain disruptions were the main driver of inflation in 2021, the Fed’s attempt to slow inflation by raising rates did not have much of an effect.
- The Fed might lower rates if the economy weakens significantly, but they are cautious due to the current economic stability and low unemployment.
- High interest rates have made it difficult for housing development, thus keeping rents and prices high.
- Sasan advises listeners to consider opportunities in private credit markets which may offer equity-like returns with better downside protection.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Jon Wingent to discuss opportunities in international investing.

Here are some key takeaways from their conversation:

-          Most investors tend to have a home country bias, allocating most of their investments toward domestic stocks and companies.

-          Most investors hold less than 10% of their portfolios in international stocks, despite the U.S. making up only 24% of global GDP.

-          Jon says U.S. stocks are currently more expensive compared to international stocks. Furthermore, international stocks can offer higher dividend yields than U.S. stocks.

-          Warren Buffett has invested a significant amount in Japan, indicating long-term potential. The weaker yen, economic reforms, and tourism boom have attracted a considerable amount of foreign investments in Japan recently.

-          Chris and Jon touch on the potential of emerging markets like India, Brazil and Vietnam, which have growing middle classes and are making favorable progress in fiscal policy.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Jenn Caruso to discuss recent financial headlines.

Here are some key takeaways from their conversation:

- The Dow Jones and NASDAQ have reached new highs; however, clients and consumers feel nervous.

- Clients often react emotionally to investment performance, wanting to sell underperforming assets and buy high-performing ones. 

- Jenn and Chris emphasize the importance of rebalancing portfolios and diversifying investments to manage risk, avoid chasing growth blindly, and align one’s portfolio with their personal goals, not just trends.

- Consumer behavior has shifted due to inflation; more people prioritize value over luxury. 

- Credit card balances are near all-time highs, and personal savings rates are down, reflecting financial strain.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Patrice Bening to discuss planning for your child’s education with 529 plans, state-specific rules, and how to maximize benefits. 

Here are some key takeaways from their conversation:

-          In California, 529 plan funds that are used for kindergarten through 12th grade private school tuition incur taxes and penalties.

-          Up to $10,000 from a 529 plan can be used for student loan payments, but this is a lifetime limit.

-          $35,000 of unused 529 funds can be rolled over (over several years because the annual contribution limit is $7,000 per year) into a Roth IRA for the beneficiary, with conditions:

o   The 529 must be open for at least 15 years 

o   Contributions made in the last five years are not eligible for rollover

o   Beneficiary must have earned income

-          529 funds can be used for tuition, mandatory fees, computers, books, supplies, and room and board, but specific rules apply. They can also cover food and groceries if the child lives off-campus, adhering to the university’s specifications.

-          Parents can use 529 funds to pay rent for a home they own and rent to their child, but the rent must be comparable to on-campus housing prices, the income is taxable, and the child can no longer be declared dependent on their parents and must have their own health insurance.

-          529 funds can be used to pay for off-campus housing if the amount doesn't exceed what the school charges for on-campus housing.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Financial Planning Manager Brittany Yudkowsky to discuss Social Security, acknowledging its relevance due to heightened public interest during an election year.

Here are some key takeaways from their conversation:

-  Many Americans fear Social Security may not be available in the future, thereby considering taking benefits early.

-  They examine taking Social Security early, including reduced benefits and penalties for earning above certain thresholds before full retirement age.

-  Chris and Brittany discuss the break-even analysis, a calculation used to determine the age at which the total benefits received if one delays Social Security surpass the total benefits received if one starts them earlier. This analysis helps individuals decide the financially optimal time to start collecting benefits based on their expected longevity. 

- Before jumping to conclusions and letting fear drive your decision to take Social Security early, it is important to have intentional conversations with your advisor/planner to see what makes the most sense for you.

On this episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Jeff Sarti, CEO of Morton Wealth, to discuss Warren Buffett’s sale of Apple shares. 

Here are some key takeaways from this conversation:

- Warren Buffett recently sold about 100 million shares of Apple, significantly reducing Berkshire Hathaway’s holdings from $174 billion to $135 billion.

- The sale was attributed to Buffett’s strategy to capitalize on currently low corporate tax rates.

- Chris and Jeff agree that many investors hesitate on selling assets with large unrealized gains to avoid facing tax bills. However, this may not be the wisest decision. Letting investments sit for too long can inadvertently increase risk due to the lack of realizing gains and rebalancing/diversifying one’s portfolio. They suggest investors consider realizing up to 5% of their portfolio’s value in capital gains annually. 

- Companies like Disney and Zoom have seen significant declines, emphasizing the risk of not diversifying and placing too much faith in trends.

In this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Mikey Taylor, President of Commune Capital, to discuss California real estate. 

Here are some key takeaways from their conversation:

-          Mikey discusses the difficulties of real estate development in California due to heavy regulation and entitlement challenges but points out that these barriers create less competition and more opportunities for growth in property values.

-          They highlight the housing crisis in California, exacerbated by a lack of construction post-financial crisis. Even though there has been a significant hike in interest rates, California real estate prices continue to rise (more so than other states) because of the severe shortage of housing supply.

-          Mikey explains Commune Capital’s unique fundraising approach through social media platforms like TikTok and Instagram, constituting a major part of their capital. He emphasizes the importance of financial education and his passion for spreading knowledge through social media.

-          Finally, Mikey touches on his role on the Thousand Oaks City Council, where he uses his real estate experience to address challenges imposed by state-level regulations.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Beau Wirick to discuss the potential dangers of following generic financial advice on the Internet.

Here are some key takeaways from their conversation:

- Beau stresses that financial advice online cannot be personalized the way a financial advisor can tailor their guidance to your individual situation and needs. 

- Many social media wealth “gurus” make content about financial decisions that can significantly impact one’s life, like social security, real estate investing, and health savings accounts. Influencers or gurus may simplify complex topics or even exploit emotions linked to these decisions, which may lead to misunderstanding and misinformation. Chris and Beau dive into their opinions on these individual topics.

- Chris and Beau also critique the concept of infinite banking and indexed universal life insurance as being oversold on social media, explaining it’s usually more about wealth protection than creation; IUL policies can also be costly and complex with high fees and long-term commitment requirements.

- It is critical to sift through financial advice thoughtfully before making rash decisions solely based on Internet content that is not personalized to you and may be overpromising.

‍Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Chief Investment Officer Meghan Pinchuk to discuss geopolitical tensions and how investors can protect their portfolios amid market uncertainty.

Here are some key takeaways from their conversation:

-          The global environment has become increasingly complex with the geopolitical unrest between Israel and Iran, alongside rising inflation and higher interest rates.

-          Meghan advises against making impulsive investment decisions based solely on headlines. Data suggests that by the time news impact markets, it’s generally too late for investors to react beneficially.

-          The market dropped initially in response to Israel’s retaliation, which quickly rebounded, illustrating the market’s short-term volatility.

-          Chris outlines a three-bucket approach for financial resilience: an emergency fund, income generation, and growth through calculated risks, designed to safeguard against sudden economic downturns.

-          Chris and Meghan emphasize gold as a long-term hedge against market volatility and inflation.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Mike Rudow to discuss his article, "Pitfalls of Selling a Business Without a Plan."

Here are some key takeaways from their conversation:

- Selling a business without a structured plan can lead to serious financial and personal repercussions.

- It is extremely important to ensure the business is valued correctly, and a professional transition team is hired, so the owner’s needs are met post-exit.

- Proper exit planning can help the business become more attractive to the right buyers, so the business’ legacy is maintained, and long-standing employees are cared for.

- Owners should reflect on what will drive them and fill their time after the business is sold, as many people tie their identities to their business and do not properly prepare for life post-exit.

Read his article here: https://share.mortonwealth.com/dl/U3f5zfN8iw?trk=article-ssr-frontend-pulse_little-text-block

On this week’s episode of THE FINANCIAL COMMUTE, Wealth Advisor Priscilla Brehm joins host Chris Galeski to discuss ways to build financial confidence.

Here are some key takeaways from their conversation:

- Access to too much information does not necessarily lead to true knowledge or confidence, highlighting the importance of one’s mindset towards money.

-  People often swing between scarcity and abundance mindsets. Wealth advisors can help clients move towards an abundance mindset to make confident financial decisions and make meaningful memories, instead of merely accumulating wealth.

- Creating a financial plan can help provide clarity on spending, income sources, and the rate of return needed for success.

- Educating oneself, creating a spending plan that allows enjoyment and security for both the present and future, understanding cash flow, and establishing an emergency fund are all crucial elements of financial confidence. 

- Having a financial advisor or someone trustworthy to discuss these matters with can give one peace of mind and enhance their decision-making process. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Patrice Bening to discuss current market issues and the unique value of gold. 

Some topics they highlighted…

-          Amid conflicting market signals, gold remains a store of long-term value. Even after a century, a gold bar is still worth the price of the average American home.

-          Potential issues with our current financial system include heavy reliance on credit expansion and the balancing act of managing interest rates without destabilizing asset prices. 

-          Especially in times of inflation, gold serves as an important store of value in a portfolio to help preserve purchasing power over time.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Justin Pizzola, co-CEO of Greyhawk Insurance, to discuss homeowner’s insurance coverage. 

Here are the key takeaways covered in their conversation 

-          Flood insurance can be very complex, as internal water damage is generally covered but external water intrusion is not typically covered without specific insurance.

-          While insurance typically covers accidental water discharge, it does not cover wear or tear or aging infrastructure.

-          They also discuss fire insurance, as the impact of fires in California has led to higher premiums and stricter underwriting, forcing some insurers to exit the California market.

-          It is very important to understand your homeowner’s policy thoroughly to ensure you are protected in unpredictable situations.

-          Justin discusses Greyhawk's role in developing innovative insurance programs by partnering with risk retention groups, reinsurance companies, and carriers to address market gaps and offer solutions. Visit www.greyhawkinsurance.com to learn more.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski and Wealth Advisor Beau Wirick discuss the recent policy changes around realtor commissions due to the National Association of Realtors’ settlement and how they may affect the market.

·         Three key changes are highlighted:

• Listing agents are now banned from offering co-fee sharing with the buyer’s agent
• Buyers are now required to pre-negotiate agent fees
• Realtors are now prohibited from insisting sellers offer compensation to cooperating brokers

·         Because of the elimination of automatic co-fee sharing between sellers’ and buyers’ agents, buyers would now be responsible for directly compensating their agents. This may lead to higher upfront costs or opting out of agent representation.

·         Beau says even though sellers do not have to pay the buyer’s agent, it is unlikely they will lower their home price just because of that.

·         Despite potential benefits for sellers in the short term, there is uncertainty about the long-term effects on the real estate market, including the possibility of freezing the housing market further due to increased costs for buyers. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Estate Planning Attorney Brian Standing to discuss upcoming estate tax law changes and how they may affect you. 

-          The estate tax exemption as of today is $13.6 million per individual, meaning estates valued over this amount are subject to estate tax. This amount is expected to be cut in half to about $7 million at the end of 2025. 

-          Using entities like Family Limited Partnerships (FLPs) or Limited Liability Companies (LLCs) for estate planning can lead to discounted valuations of transferred assets, potentially reducing estate taxes.

-          The strategy of holding onto high-appreciation assets to benefit from a step-up in basis at death is discussed, highlighting the trade-off between avoiding capital gains tax and potential estate taxes.

-          Real estate presents unique challenges in estate planning, including issues with leverage (loans), depreciation recapture, and property tax reassessment. 

-          Brian and Chris stress the importance of careful planning and timing when gifting assets to ensure that the chosen strategies align with the individuals' overall financial goals and estate planning objectives.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Chief Investment Officer Meghan Pinchuk to discuss recent headlines and the overall economic landscape. They highlight topics like:

-Recent banking sector issues, with a focus on New York Community Bank’s struggles 
-The Federal Reserve’s potential interest rate cuts
-Market volatility, including the impact of geopolitical tensions like the war in Ukraine
-How investors can balance between risk and opportunity, and the risks of chasing market trends
-How investors can diversify their portfolios with private lending and credit 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Patrice Bening to discuss eight tax-saving strategies.

1. Health Savings Accounts (HSAs) are highlighted as a triple benefit tax-saving strategy, allowing pre-tax contributions, tax-free growth for medical expenses, and tax-free withdrawals for those expenses
2. Retirement contributions to plans like 401(k)s and IRAs are recommended for tax savings.
3. Marriage can offer tax benefits by providing access to wider tax brackets and potentially lowering the overall tax liability for the couple. 
4. Some eco-friendly purchases on items like solar panels and electric vehicles can offer dollar-for-dollar tax credits. Click here to learn more. 
5. Donor Advised Funds (DAFs) can be an efficient way to manage charitable donations, offering immediate tax deductions for contributions made to the fund, the ability to grow donations tax-free, and flexibility in distributing funds to charities over time.
6. Conducting a cost segregation study for short-term rentals can accelerate depreciation deductions. By doing so, owners can significantly reduce their taxable income.
7. Obtaining a professional designation in real estate can offset W-2 income with real estate losses.
8. Making less money will also minimize your taxes, although not recommended!

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Joe Seetoo to discuss the recent rise in NVIDIA's stock price, including topics like:

- how NVIDIA's groundbreaking work in AI has contributed to their stock valuation

- competition from AMD, Intel, and potential threats from startups and cloud providers

- whether NVIDIA’s current valuation at $800 a share is justified or if its success will burst like BlackBerry

- how quickly technology evolves and how this may impact NVIDIA

In this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Priscilla Brehm to discuss the differences between brokerage firms and RIAs (Registered Investment Advisors). 

Priscilla and Chris encourage listeners to understand how compensation works when choosing between an RIA and brokerage firms, as brokerages often compensate their advisors based on transactions, which can lead to potential conflicts of interest. On the other hand, RIAs are generally compensated through a fee structure, which may align the advisor’s incentives more closely with the client’s success. Furthermore, listeners should understand the investment philosophy of the advisor, whether the advisor requires the client’s approval for every transaction, and whether the advisor acts as a fiduciary since fiduciaries are legally obligated to put their clients’ interest ahead of their own. 

On this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Patrice Bening to examine the stock market, the economy’s resilience, and last year’s banking crisis that may potentially resurface.

They discuss the exposure of small and mid-sized banks to commercial real estate loans. With interest rates on the rise, these banks face increased risk as loans come due and need refinancing. Given the tightening credit guidelines, there is a looming threat of liquidity issues, which could compound the challenges these banks are facing. Especially given the high vacancy rates in office spaces, and the fact that small and mid-sized banks hold nearly 70% of the outstanding loans on commercial real estate, there could be a potential risk to the broader financial system if these loans begin to default, thus re-triggering a regional banking crisis.  

Although the markets are hitting new highs, it is extremely important to monitor economic indicators closely, stay updated with new policies, be mindful of FDIC insurance limits, and gain a better understanding of how banks operate, including reserve requirements and liquidity positions.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites CEO Jeff Sarti to discuss building a resilient investment portfolio and what “resilience” means.

Jeff and Chris define resilience as an investment’s capability to withstand a variety of unforeseen scenarios without significant loss. Although uncertainty is inevitable, building a diversified portfolio can help investors navigate tumultuous circumstances. 

Private lending, specifically equipment lease financing, can be a solid example of a resilient investment, as it may offer consistent returns and security even in downturns. Compared to bonds, private lending may be even more resilient due to its tangible collateral and structured repayment schedules. Studies show that people who invest with a long-term mindset generally perform better than those who get in and out of the market; therefore, it is important for investors to choose investments that will withstand different market conditions over a long period of time.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Managing Director of Investments Sasan Faiz to discuss the global stock market selloff. 

Here are some key takeaways from their conversation: 

- Tech stocks’ valuations were high due to AI excitement and hype, but recent corrections highlight the importance of true diversification.

-  The ISM Manufacturing Index indicates a recession in the manufacturing sector, though consumer spending, a major economic driver, remains relatively strong.

-  Indicators of financial stress among consumers include low savings rates and rising credit card balances, with unemployment slightly increasing to 4.2%.

- The Nikkei (a stock market index for the Tokyo Stock Exchange) saw significant drops due to the carry trade’s impact and the Bank of Japan’s interest rate changes.

- Chris and Sasan agree investors and consumers should be aware of the ongoing volatility but avoid panicking. Market corrections are necessary for long-term market health, and these volatile times are not unprecedented or insurmountable. It is important to diversify your portfolio beyond traditional stock and bonds to build resilience, and Morton has been preparing for such volatility accordingly.  

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Kevin Rex to discuss different methods of investing in real estate. 

Although being a landlord is a popular way to invest in real estate, Kevin says it requires consistent effort to resolve maintenance issues and handle difficult tenants. If an investor is interested in a more passive strategy, REITs (real estate investment trusts) and private funds are options to consider. 

REITs are publicly traded equities, making them highly liquid. This allows for easy entry/exit, but also subjects the investment to the volatility of the stock market and interest rates. Private funds offer more control over investment type and require larger minimum commitments than REITs. These funds involve managers who are responsible for making strategic investment decisions and are generally less liquid. It is important for investors to understand the fund’s investment strategy, fee structures, and risks associated with the fund’s investment focus before committing. 

On this week’s episode of THE FINANCIAL COMMUTE¸ host Chris Galeski welcomes COO and Wealth Advisor Stacey McKinnon to discuss liquidity. 

Illiquidity can be nerve-wracking due to the emotional bond people have with their money and the comfort that comes from having easy access to it. Stacey discusses conversations she has with clients about balancing liquid assets for immediate needs versus investing in long-term illiquid assets like businesses or real estate, which may offer better returns but less accessibility. Different account types, cash flow needs, and individual circumstances have a huge impact on which illiquid investments one should acquire and how much of one’s portfolio should be made of illiquid investments. 

It is critical to take a balanced approach to liquidity in financial planning, and investors should consider having different “buckets” of assets categorized by their liquidity needs to meet various goals. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Chief Investment Officer Meghan Pinchuk to discuss Bitcoin ETFs that have recently been approved by the SEC (Securities and Exchange Commission). 

They discuss Bitcoin’s similarities to gold, particularly its role as a potential store of value as opposed to fiat currencies, while also noting Bitcoin’s relatively short history and high volatility compared to gold’s long-standing stability. 

Meghan and Chris also consider the technological complexities associated with direct Bitcoin ownership, including private keys and the irreversible nature of losing them. Therefore, the emergence of Bitcoin ETFs is a significant development as they offer easier access to Bitcoin’s price movements through regulated, mainstream financial instruments. 

Although Morton is not currently investing in these ETFs, we are still watching these trends closely and speaking with managers to see which ETFs are most structurally sound and gaining adoption in the market.  

Disclosure: Information and references to specific investments presented herein are for educational purposes only, are not intended as an offer or solicitation with respect to the purchase of any security or asset class, and should not be relied on for investment recommendations. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. The investments discussed may fluctuate in price or value. All investments involve risk, including the loss of principal. Past results are no guarantee of future results. You should consult with your financial advisor to thoroughly review all information and consider all ramifications before implementing any transactions and/or strategies concerning your finances.

On this week’s episode of THE FINANCIAL COMMUTE, Wealth Advisor Joe Seetoo discusses Pender Capital’s investment strategy with CEO Cory Johnson at Morton’s 2023 Investor Symposium. Pender is a commercial real estate debt lender focusing on the lower middle market in secondary and tertiary markets, especially in Middle America. Cory talks about how the pandemic impacted various sectors and Pender’s strategic shift toward asset types like multifamily and industrial real estate, which showed resilience throughout the pandemic. 

Pender emphasizes principle preservation first and yield generation second. They also focus on underwriting to refinance rather than to sale, which distinguishes them from other lenders. Finally, Cory discusses the opportunities emerging in the current market, especially in private credit, due to the liquidity issues in the banking sector.

Happy New Year! On today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Chief Investment Officer Meghan Pinchuk to reflect on 2023 and discuss what this new year may bring.

Due to the recent moderation in the inflation rate, markets responded positively, and the Fed announced they will cut interest rates in 2024. Meghan reminds listeners that just because the inflation rate has moderated, prices won’t necessarily come down- they will just increase at a slower pace. Meghan and Jeff also discuss how bonds’ performance rebounded in 2023 after a poor 2022, as well as gold. They agree that gold is a store of value in a portfolio, serving as a hedge against inflation. 

Going into 2024, the upcoming election, political division and a potential recession or economic downturn may leave investors feeling uncertain about what is to come. Meghan and Jeff emphasize the importance of a diversified and resilient investment strategy in times like this. 

On this week’s episode of THE FINANCIAL COMMUTE, Wealth Advisor Bruce Tyson discusses Cliffwater’s investment strategy with Head of Capital Markets Fran Beyers. 

Cliffwater’s goal is to provide solid compounding returns in even tumultuous environments. Fran explains how direct lending may offer predictability, lower interest rate risk, and yield premium over public markets. Cliffwater is intentional and selective about the managers they choose and tend to lend to defensive sectors. Fran and Bruce note that rising interest rates are both a challenge and an opportunity in the direct lending market, which is growing rapidly and gaining market share from traditional bonds.

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Visit our website: 
https://www.mortonwealth.com

Disclosure: Information presented is for illustrative purposes only and is subject to change without notice. It is not intended as investment advice and should not be construed as an offer or solicitation with respect to the purchase of any security. This investment opportunity may only be available to eligible clients and involves a higher degree of risk. Opportunities for withdrawal and transferability of shares in such investment will be limited, so investors may not have access to capital when it is needed. Additionally, the fees and expenses charged in connection with this investment may be higher than the fees and expenses of other investment alternatives and may offset profits. Fund fees charged are approximately 1.63% on NAV (excludes fees and interest payments on borrowed funds of 1.90%). Each investment opportunity is unique, and it is not known whether the same or similar type of opportunity will be available. Morton makes no representations as to the actual composition or performance of any security. All investments involve risk, including the loss of principal. Past performance is no guarantee of future results. 

Although the information contained in this report is from sources deemed to be reliable, Morton makes no representation as to the adequacy, accuracy or completeness of such information and it has accepted the information without further verification. It should not be assumed that Morton will make investment recommendations in the future that are consistent with the views expressed herein.

Target returns or other forecasts contained herein are based upon subjective estimates and assumptions about circumstances and events that may not yet have taken place and may never take place. Targets are objectives, are shown for information purposes and should not be construed as providing any assurance as to the results that may be realized in the future from investments. There is no guarantee that the investment objective will be achieved. Morton Wealth makes no representation that the strategies described are suitable or appropriate for any person. You should consult with your financial advisor to thoroughly review all information before implementing any transactions and/or strategies concerning your finances. 

See our website for full disclosures

On today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Managing Director at Keystone National Group John Earl to our 2023 Investor Symposium stage. They discuss Keystone and their approach to lending and investments.  

Keystone is a private credit platform with a focus on asset value. They provide lending and leasing services to companies, family offices, and fund managers with a typical transaction size of $20 million to $50 million. Keystone tends to thrive in high interest rate environments, as traditional banks may become more conservative, thus triggering more private lending opportunities. One of their specialties is equipment lease financing, as they own mission-critical equipment and lease it on a short-term basis with the goal of full amortization during the lease term.

Keystone sees opportunities in real estate lending due to banks’ reluctance to engage in this sector and are currently involved in various real estate projects.

Information presented is for educational purposes only and is not intended as an offer or solicitation with respect to the purchase of any asset class. This podcast should not be relied on for investment recommendations. The private investment opportunities discussed herein are speculative and involve a high degree of risk. They are available only to eligible clients and can only be made after the client’s careful review and completion of the applicable Offering Documents. Although the information contained in this report is from sources deemed to be reliable, Morton makes no representation as to the adequacy, accuracy or completeness of such information and it has accepted the information without further verification. Past performance is not indicative of future results. Each investment opportunity is unique, and it is not known whether the same or similar type of opportunity will be available in the future. Targets or other forecasts contained herein are based upon subjective estimates and assumptions about circumstances and events that may not yet have taken place and may never take place. If any of the assumptions used do not prove to be true, results may vary substantially from the target return. Targets are objectives, are shown for information purposes and should not be construed as providing any assurance as to the results that may be realized in the future.  Many factors affect performance including changes in market conditions and interest rates and changes in response to other economic, political, or financial developments. There is no guarantee that the investment objective will be achieved, and Morton makes no representations as to the actual composition or performance of any fund. Performance data presented is net of fund fees but does not reflect the deduction of your Morton Capital investment advisory fees. Your returns may be reduced by the advisory fee and other expenses incurred in the management of your account. For example, the deduction of a 1% advisory fee over a 10-year period would reduce a 10% gross return to an 8.9% net return. All investments involve risk, including the loss of principal.

On today’s episode of THE FINANCIAL COMMUTE, Managing Director of Investments Sasan Faiz and Wealth Advisor Mike Rudow take the stage at our 2023 Investor Symposium to discuss artificial intelligence and its potential.

Although the adoption of AI has been relatively effortless for individuals, it may not be so on a larger enterprise scale. This is because organizations may experience initial productivity dips and will have to teach their workforce new skills when integrating AI. AI will ultimately produce more efficient systems for most companies, but the initial cost of time and money may discourage them from adopting AI as quickly as individuals. 

Mike and Sasan agree healthcare and education will be heavily improved by AI. Artificial intelligence can help enhance curriculums, provide data analytics for educators, and improve accessibility for disabled/neurodivergent students. In the health industry, we may be able to bring AI-powered tools to countries where medical facilities are limited, use AI to accelerate drug discovery, diagnoses, genomic sciences, and provide telehealth services. 

Some risks AI may present are job displacement, bias in data, privacy/security, ethical dilemmas, regulations, and more. As AI continues to develop, we must ensure it is used responsibly. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Bob Louzan, Managing Partner at WhiteHawk Capital Partners to the 2023 Investor Symposium stage. 

WhiteHawk specializes in lending to companies that cannot secure loans from traditional banks or capital providers. Because of this structure, WhiteHawk tends to perform well during economic downturns when organizations face difficulties accessing capital markets. Their primary focus is on the liquidation value of the assets that a borrowing company possesses rather than solely relying on the company's performance. Bob highlights consumer goods, healthcare and automotive as industries that may present more opportunities for lending due to market conditions.

Looking to watch some of the live sessions from our Investor Symposium? Stay tuned as we release more episodes like these in the coming weeks such as A.I.: Possibilities and Pitfalls of Artificial Intelligence, Generating Attractive Returns Through Creative Private Lending, and Bond Alternative: A Smarter Way to Lend to Corporate America.

Stay tuned for more episodes from the Investor Symposium like A.I: Possibilities and Pitfalls of Artificial Intelligence!

This week’s episode of THE FINANCIAL COMMUTE features a conversation on Bitcoin from Morton Wealth’s 2023 Investor Symposium led by host Chris Galeski, Wealth Planner Brian Standing and founder of The Bitcoin Layer Nik Bhatia. Nik is also a CFA® charterholder and teaches finance and business economics at USC. 

Nik explains that Bitcoin is both a software and a unit of account within the software. The unique innovation Bitcoin offers is that people can use and move these units without a central party (like a financial system or government authorities). This makes it resistant to censorship and interference. Bitcoin miners constantly have their computers on to secure networks and create blockchains that give Bitcoin value. Many Bitcoin investors see it as a hedge against inflation due to its store-of-value properties, like gold. 

They also discuss how U.S. government legislations have been pro-Bitcoin so far, as the SEC just approved a Bitcoin futures ETF and states like Wyoming have created a favorable regulatory environment for blockchain companies. However, it is important to conduct proper research on Bitcoin and consult experts before considering it as an investment. 

Stay tuned for more episodes from the Investor Symposium like Lending to Out-of-Favor Companies with Substantial Assets and A.I: Possibilities and Pitfalls of Artificial Intelligence! 

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On this episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes COO & CMO Stacey McKinnon to discuss retirement planning. How much do people really need to retire comfortably?

Here are some key takeaways from their conversation:

- Over 55% of Americans feel behind in retirement planning.

- It is crucial to create a retirement plan custom to your lifestyle instead of taking generic advice from people who may have different standards than you. 

- 65 is generally seen as the “right” time to retire. However, Stacey and Chris urge listeners to consider their financial readiness, health and life aspirations rather than defaulting to the traditional retirement age. 

- Many people target age 65 for retirement to take advantage of Medicare, as it is cheaper than private insurance. But, the savings are around $5,000 to $6,000 annually, which may not make delaying retirement worth it for people who are financially prepared.

- Consider diversifying savings between personal savings, retirement accounts and home equity to avoid over-reliance on one source.

-  In order to avoid over-sacrificing in the present, Stacey suggests thinking about other ways to fund your retirement, like selling a property, considering the inheritance you may receive from parents/guardians, etc.

 In this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski and Wealth Advisor Jon Wingent discuss international living and the financial uncertainties often faced by expats. 

Many expats may have questions about whether their contributions in another country will count towards their U.S. Social Security benefits. The U.S. has Social Security treaties with many countries to prevent double taxation and ensure individuals receive the appropriate benefits. Systems can vary from one country to another, so it is important to research each nation and its terms. Expats who have contributed to Social Security-equivalent programs in multiple countries may be able to combine their work credits to qualify for benefits from each country.

Jon and Chris also discuss the intricacies of international taxation and the need for careful planning when it comes to retirement accounts, investments, and titling/selling assets in different countries. Additionally, they stress the importance of distinguishing between domicile and citizenship in estate planning. It is crucial for expats and multinational families to consult professionals on these complex issues.   

In this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Kevin Rex to discuss wealth hacks and tax planning strategies.

Some strategies they explore are Donor Advised Funds and Qualified Charitable Distributions. These methods can help individuals save on taxes while supporting philanthropic causes. Health Savings Accounts can also be advantageous as contributions made to an HSA are tax-deductible, funds within an HSA can be invested and growth is tax-free if used for qualified medical expenses, and withdrawals are also tax-free if used for qualified medical expenses. After age 65, you can withdraw funds from your HSA for any expense without penalties. They also briefly review ways to optimize mortgage interest deductions, including cash purchases and refinancing.

Finally, Chris and Kevin address the importance of managing one’s emotions when making investment decisions. Many investors want to avoid losses but end up missing out on better opportunities because they don’t want to take action during market downturns.

In this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Bruce Tyson to discuss how the market has performed this past year, including bank failures, debt issues, government shutdowns, inflation, and interest rates.  

They dissect the common belief that the average annual return of the stock market over the long-term is around 9-10%. The market experiences fluctuations, sometimes delivering very positive and negative returns. Therefore, investors should not expect a consistent 9-10% return year after year in the stock market and must maintain a long-term perspective. 

Bruce and Chris also go over historical investment returns, with small value stocks showing the most significant growth over nearly a century. A dollar that was invested in large-cap stocks 98 years ago would have grown to about $11,000 by now, while it would have grown to about $128,000 if invested in small-value stocks. Chris and Bruce encourage investors to properly diversify their portfolios and consider if they’re exposed to these areas of the market. Additionally, they discuss the evolving investment landscape, particularly the rise of income-generating investments like fixed-income and private lending, due to changing interest rates. 

In this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski and Wealth Advisor Mike Rudow discuss artificial intelligence and its potential impact on the financial industry/other fields. 

Mike emphasizes that AI is a large language model with access to data, which can be flawed due to inherent biases. Because it still has a long way to go in making totally accurate conclusions and analyses, it is not recommended to take financial advice from AI. However, Chris and Mike acknowledge the effectiveness of using AI in conjunction with human expert knowledge. Studies show that AI can frame medical diagnoses in a more empathetic manner and help professionals across all fields conduct research and create content more efficiently. 

As the world continues to evolve in the direction of AI-powered tools and software, it is important to be aware of the positive implications of this technology while still being intentional and cautious about how we use it.

In today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Managing Director of Investments Sasan Faiz to discuss the current economic landscape.

The global economy is uncertain due to the war happening in the Middle East, rising interest rates driven by the Fed’s efforts to lower inflation, and the dysfunction in the U.S. Congress related to budget resolutions. The 10-year U.S. Treasury yield reaching a 16-year high of 5% also magnifies the risk that the higher rates environment poses to the economy. Furthermore, U.S. consumers and corporations are facing higher borrowing costs, which dampens economic activity. 

According to Sasan, earnings expectations for mega-cap companies may already be priced into the market, with interest rates and geopolitical factors acting as the main forces driving current market dynamics. He encourages listeners to diversify their portfolios and consider gold amid this uncertain environment. Private credit and lending strategies may also be attractive as they offer potential returns comparable to equities. 

 Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites CEO Jeff Sarti to recap the Investor Symposium and looks ahead to Morton’s future. 

Firstly, Jeff and Chris address the Israel-Hamas war and its potential impact on global markets. Jeff emphasizes the importance of diversification in building resilient portfolios to weather unforeseen events like this. 

Last Thursday, we delved into the different funds and strategies that strengthen and diversify our clients’ portfolios at the Investor Symposium. Morton advisors, fund managers, and other external speakers discussed investment and financial planning topics like how to raise financially savvy kids, the possibilities and pitfalls of artificial intelligence, Bitcoin/cryptocurrency, and how to handle financial disagreements with one’s spouse. 

To close the symposium, Jeff and Meghan Pinchuk, our Chief Investment Officer, announced our plans to form our own fund with the goal of democratizing investments and expanding access to diversification. Stay tuned for more updates on this process! We would like to thank everyone who attended the conference and hope the sessions were helpful to you.

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

In this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Managing Director of Investment Sasan Faiz to discuss Q3 and how investors can try to protect themselves in unpredictable market conditions.  

Q3 saw a struggling market with the S&P 500 down 3.2% and MSCI EAFE down 4%. Bonds have also faced challenges as they were down 3.2% for the quarter and 1.2% for the year. This is because higher interest rates have had a negative impact on equities and bonds. 

Sasan and Chris agree that investors should consider adding gold to their diversified portfolios to try shielding themselves against these volatile market conditions. Gold has historically maintained its value and is viewed as a hedge against inflation. Costco has been selling one-ounce gold bars online that sell out within hours even though members are limited to two per order, so demand has clearly been increasing as people realize inflation is rising and the dollar is depreciating.   

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Mike Rudow, his very first guest, to celebrate the podcast’s one year anniversary. Chris reflects on this accomplishment and feels grateful that he and his guests have been able to deliver valuable financial knowledge to listeners for a year.

Chris and Mike also discuss the Investor Symposium and the topics they are excited to listen to, like Battle of the Spouses, Current Me vs. Future Me, and Possibilities & Pitfalls of Artificial Intelligence. Furthermore, Chris will be talking with private lenders like Keystone and Whitehawk to give clients insights into their strategies.  

Click here to secure a spot at the Investor Symposium on October 12th. We look forward to seeing you there! 

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Brian Farwell, Branch Manager at CrossCountry Mortgage, to discuss residential real estate and interest rates. 

The single-family home market remains resilient due to limited supply and high demand. It’s an expensive market for buyers, but Brian says it may be best to buy now rather than wait for prices to decrease significantly, as that is not likely to happen. Brian also thinks in the next couple years, interest rates may stabilize and come down due to election cycles. Buyers may be able to refinance loans later if/when rates drop, but they cannot go back in time and pay for a home with less competition. 

Chris and Brian agree that residential properties will not be running into the same problems as multifamily apartments, commercial and retail properties, as loans for these larger spaces typically involve shorter-term loans with adjustable interest rates. As the interest rate has jumped from 3% to 7% this past year, monthly payments will increase by 60% for these borrowers while residential mortgages are still locked in their long-term, fixed-rate loans. 

Brian emphasizes the importance of understanding your financial profile when buying a home and securing a mortgage. He helps his clients assess their finances and tailors mortgage options to their individual needs.

Learn more about CrossCountry Mortgage here: https://crosscountrymortgage.com/

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Managing Director at KCB Real Estate Megan Pautler-Gutnikov to discuss KCB Real Estate and their investment strategies. KCB is a buy-and-hold control investor in a wide variety of income-producing property types. 

We have felt confident in our partnership with KCB because of their long-term, disciplined, and patient outlook. They work with operating partners with a strong track record and prefer assets they can hold indefinitely. 

Megan emphasizes the need for investors to balance patience with a willingness to adapt to changing conditions, as rising interest rates, widening spreads, and bank failures have been contributing to lower property valuations. The debt maturity wall and national housing shortage may also affect the market in the future. It may be easy to fall into short-term, high-leverage strategies, but a quickly changing market makes it challenging for such approaches to work. 

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Patrice Bening to discuss dollar cost averaging, an investment strategy where investments are bought over time. Purchases occur regularly regardless of the asset’s price. 

Here are some key takeaways from their conversation:

- Patrice shares her first experience with dollar cost averaging through her 401(k), highlighting its discipline and long-term benefits despite market volatility. 
- Dollar cost averaging (DCA) can help mitigate emotional stress when investing large sums. It can also offer potential tax benefits and loss offsetting through tax loss harvesting.
- Chris emphasizes DCA’s role in systematic and automatic investing, providing stability during market fluctuations.
- Studies indicate that lump sum investing may outperform dollar cost averaging two thirds of the time, although DCA still has its benefits.

On this episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Planner Brian Standing. They discuss potential complications that may arise when a parent or grandparent helps their child buy real estate.

Firstly, it is critical to decide if the financial assistance offered is considered a gift or a loan. Gifts may be subject to gift taxes, and there may be income tax consequences for loans. Furthermore, it is important to ensure your child is financially stable enough to maintain their property and pay property taxes after they become a homeowner. If you are helping with a partial down payment, your child still needs to be able to qualify for their own loan so they can be on the title. 

Another area of potential complexity is when a child’s partner is involved, as a parent or grandparent may want to ensure that their contribution is protected. Prenuptial or postnuptial agreements can be made to specify how the property will be treated in the event of a divorce. 

Other issues to consider are changing life circumstances (your child may not stay in the same area for the rest of their life) and equalization among heirs to establish fairness.  

Brian and Chris agree it is always important to have conversations with your family and wealth advisor about these intricacies before gifting or loaning a substantial amount of money to another family member. 

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Beau Wirick to discuss assets that may or may not be beneficial to inherit.

Chris and Beau agree that a Roth IRA is the best type of account to leave heirs as money grows tax-free, and withdrawals are tax-free. Brokerage/non-retirement accounts are also beneficial, as the heir can sell shares without paying capital gains taxes on them. Traditional IRAs may not be as advantageous because distributions are taxable, and new legislative changes under the SECURE Act forces heirs to withdraw the entire balance of the account within 10 years of the original owner’s death. This may cause issues with higher tax as each sum of money that needs to be withdrawn would be higher than if the heir could take the money out over a longer period. 

When it comes to real estate, properties with high maintenance costs may burden heirs. It may be wiser to invest in real estate funds that can be passed on. 

Businesses are also a potentially complex asset to leave to an heir. It is important to create a buy-sell agreement, a legally binding document that outlines how to distribute the shares of a departed or deceased partner amongst other partners and beneficiaries; this could save heirs from headaches and conflict. Another option is to consider selling the business altogether if the owner’s death is anticipated. 

When it comes to Health Savings Accounts, passing it to a spouse allows tax-free use for their medical expenses. However, leaving it to anyone else could result in that account being considered income in the year it is received, thereby boosting them into a higher tax bracket. Furthermore, anyone besides the spouse cannot use the tax advantages for their own healthcare. 

It is crucial to have these conversations with your wealth advisor to examine your individual situation and what makes the most sense for you and your beneficiaries. 

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On this episode of THE FINANCIAL COMMUTE, host Chris Galeski and Jeff Sarti, our CEO, discuss our investment philosophy and upcoming Investor Symposium. 

Although many investment firms place an emphasis on stocks and bonds, other assets tend to be more resilient in volatile times. Jeff says we are willing to look different than the rest of the industry because we believe our focus on the alternatives space is in our clients’ best interest.

Clients will be able to meet fund managers, learn more about our investment strategies, and hear live conversations about various financial planning topics at our Investor Symposium on October 12th at Westlake Village Inn. Topics will include cryptocurrency, AI, navigating financial decisions with one’s spouse, complexities of the sandwich generation (people who are responsible for taking care of their children as well as their aging parents), real estate investments, private lending, and more.

Details coming soon!

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Patrice Bening to discuss recent changes to student loan repayment plans. It is important to note these changes impact federal student loans, not private loans. The Department of Education started notifying eligible borrowers (those who have been on repayment plans for 20-25 years of qualifying months) on Friday, July 14. The Department of Education will continue to notify eligible borrowers who have reached the forgiveness threshold every two months. 

Income driven repayment plans previously had four options: income based, income-contingent, pay as you earn, and revised pay as you earn. The revised pay as you earn option is now replaced by the SAVE plan. Under SAVE, payments will be reduced from 10% to 5% of discretionary income. The discretionary income threshold will also increase to 225% of the poverty line (it was 150% before), so for borrowers making $32,800 or less (or $67,500 in a family of four), monthly payments will be reduced to $0. Furthermore, those with balances of up to $12,000 can reach total forgiveness after 10 years of payments. 

Patrice and Chris also highlight that remaining interest for both subsidized and unsubsidized loans will be eliminated after a scheduled payment is made under the SAVE plan. This means that when a borrower’s monthly payment is less than the new interest that accrues, the excess interest will be waived. The SAVE plan also excludes spousal income for borrowers who are married and file separately. Moreover, when one consolidates loans, they will not lose time towards their forgiveness, and payments made before 2024 will count towards time to forgiveness. 

Finally, Patrice and Chris encourage listeners to consult with experts and financial planners before making decisions on consolidation and repayment plans. 

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.