News & Blog

There’s been a lot of turbulence in the last few weeks in the markets.  Many news headlines are contributing to this turbulence—the U.S. debt ceiling, supply chain shortages, global elections, the Chinese Evergrande crisis and COVID itself.  With all of this, while September turned out to be the worst month for global equities since March 2020, this past quarter saw global equities down just over a percent from their June 30th close.  Our investment policy considers market fluctuations, so we are prepared as the markets adjust and react to these events.

Meanwhile, I’m carefully watching what is happening in Washington with respect to the budget and spending.  There’s a lot of press coverage and speculation on the proposed changes (and changes to the changes) and generally I prefer to wait to act on these proposals until they are passed unless there is an overwhelming reason to do so in advance.  Expect to hear from me if the change in situation is set to impact the tax plan we have for you.

It’s Cyber-Security Month

As the space between our online and offline lives continues to blur, we hear more and more about the need to stay safe and secure online.  With a continually fresh set of ‘game-changing’ data breaches and cyber-“concerns”, it won’t be long before we begin to rate cyber protection as financially important as your life or umbrella liability policies.  Data show that precious few people take their online security seriously, and in honor of October being National Cyber-Security Awareness Month I’d like to make sure you’re not in that crowd so indulge me while I pass along a few recommendations.

Protect Your Device:  Always make sure your devices are up to date on patches and updates. Take the three minutes to install and reboot now – it is a lot easier than trying to get your data back after a ransomware attack.

Password Manager:  Using a different password on each website. There are several services that can help you create secure passwords and store them for you inexpensively and with excellent cyber-security protection.  Some also allow you to appoint an individual to be granted access in the event you are incapacitated. Let me know if you want a recommendation.

Multi-Factor Authentication:  The recent T-Mobile hack has exposed the danger of using confirmation codes sent via text message. Best practice is to use an authenticator app on your phone on sites where it is offered, which will randomly generate codes for you.  These apps, such as Microsoft Authenticator and Google Authenticator, are free and easy to install.  Likewise, because of these dangers, I make it a point to avoid texting with you, favoring more secure methods of communication.

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2021 Q3 Passport Wealth Management client newsletter attached to quarterly statements from October 2021. The newsletter is published to the website for informational purposes only and is not financial or investment advice. You should consult a CERTIFIED FINANCIAL PLANNER™ Professional for financial advice. 

Past performance may not be indicative of future results. Indexes are not available for direct investment. Investing involves risks, including the potential for loss of principal. There is no guarantee that markets will act as they have in the past or that any investment plan or strategy will be successful.

The Things We Take With Us

Throughout human history immense change and innovation follow periods of turmoil and strife.  For example, the Second World War triggered incredible economic expansion, and the bubonic plague itself begot the Renaissance and Age of Enlightenment.  Unquestionably we are living through a period of turmoil ourselves, so my question is as we look ahead – how will each of us change, innovate, and grow?  In the last few months, as restrictions have decreased and the vaccine has given people hope, I’ve noticed renewed eagerness from clients, colleagues, and friends to make big life decisions that have otherwise been put off. Welcoming children (and grandchildren), moving, RV’ing, changing careers, starting businesses, launching a major home renovation, a new dedication to philanthropy… in short, we’re already experiencing this period of change.  What have you started or stopped doing over the last 15 months that you hope to make part of your life as we emerge from the pandemic? I’m here to talk if you want to discuss big life changes or new routines.

But What About Inflation

All that ‘immense change and innovation’ points to inflationary pressures as well.  We see it all over, from the grocery store to the lumber yard.  This is OK and to be expected.  We can cut the data a variety of different ways and see that it is reasonable to expect continued economic exuberance for the next year or so before coming back to ‘normal’ levels.  Yes, inflation is up but not radically so.  It is up in ways that match this unique period and there is every reason to believe it will gradually drift to levels more akin to recent years.  Even if it does remain elevated when compared to the last 20 years or so, it still wouldn’t be considered ‘high’ by historical comparison.

Changes at my529

Those clients holding 529 Educational Savings Plans with my529 received notification several weeks ago regarding a handful of changes to the manner in which 529s within the my529 program are managed.  I have reviewed these changes in depth and communicated with my529 about several specific aspects of the change and believe these to be very positive steps forward overall.  Although no action is required, I will be reviewing all 529 plans following the transition to confirm that no action is warranted and will make small adjustments if it is appropriate to do so.  If you have any questions regarding the change please don’t hesitate to reach out.

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2021 Q2 Passport Wealth Management client newsletter attached to quarterly statements from July 2021. The newsletter is published to the website for informational purposes only and is not financial or investment advice. You should consult a CERTIFIED FINANCIAL PLANNER™ Professional for financial advice. 

Past performance may not be indicative of future results. Indexes are not available for direct investment. Investing involves risks, including the potential for loss of principal. There is no guarantee that markets will act as they have in the past or that any investment plan or strategy will be successful. 

COVID-19: One Year Later

In many places in the United States, it feels like we can see the light at the end of the proverbial COVID-19 tunnel. Vaccinations are up, transmission rates and hospitalizations are far short of their high-water marks, and people are starting to awaken to the idea that a return to ‘normalcy’ may be on the horizon. While my crystal ball remains murky as to the timing of that, now is undoubtedly a good time to proactively look forward to the things we can control so that when the time is right, we are ready to jump back in.

Online Security: It should come as no surprise that online shopping rates are higher now compared to the start of 2020. While the convenience of getting everything delivered to your door or curbside to your car is great, remember to take a few quick steps to protect yourself, as your risk of identity theft or data breach has increased. Changing passwords from time to time and not using the same password on multiple sites is a must. There are a few great security tools to help organize passwords, many of which allow you to name an emergency contact who can gain access to your ‘password vault’ in the event you are incapacitated. If this is something you have thought about doing, or have never heard of it but are intrigued, now is a great time to start and I’ll be happy to help you think through the steps and get it done.

Property & Casualty Insurance: In the last weeks of 2020 we built a [for the kids, of course!] a giant jungle gym in our backyard, complete with monkey bars and the start of an American Ninja Warrior course. I’ve already communicated this home ‘addition’ to our insurance agent and confirmed our coverage is adequate to cover any potential injuries. If you’ve added or renovated anything in the last year or are planning to make some changes this summer, take a few minutes to confirm coverage with your agent. Avoid being surprised when an accident occurs.

Travel Planning: Although I am not entirely sure when we’ll be gallivanting around the globe again, there are positive signs on the horizon. We have taken the last few months to make some adjustments to the credit cards we carry. Small changes can have outsized affects when it comes time to traveling on points and miles.

Estate Planning: If it has been a while since you have reviewed your estate documents, spring is an excellent time to do so. My wife and I updated our documents just last year, and I’ll be happy to help you think through changes of your own if it is time for an adjustment.

How You’re Invested: This past year was extreme in lots of ways. Thankfully, the market’s downturn was followed by a sustained and relatively quick recovery. Portfolio returns for the last 12 months are generally above average and the story is mostly a good one. Still, if the heartburn caused from the market drop remains a poignant memory, let’s talk about it and make an adjustment. Give me a call.

A Brief Update on Schwabitrade

In 2019 Charles Schwab announced the acquisition of TD Ameritrade, which passed its final regulatory hurdle in late 2020 and has now been completed. Although there have been signs of growing pains, and I continue to monitor the situation for anything that could materially affect you and your accounts, it appears to be business as usual for the time being.

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2021 Q1 Passport Wealth Management client newsletter attached to quarterly statements from April 2021. The newsletter is published to the website for informational purposes only and is not financial or investment advice. You should consult a CERTIFIED FINANCIAL PLANNER™ Professional for financial advice. 

Past performance may not be indicative of future results. Indexes are not available for direct investment. Investing involves risks, including the potential for loss of principal. There is no guarantee that markets will act as they have in the past or that any investment plan or strategy will be successful. 

America The Is Still Beautiful

When people learn of my travels around the world, the question I’m most often asked is the obvious one: What’s my favorite country?  My answer has never wavered, The United States of America!  I often follow up with, somewhat tongue and cheek, that the garbage gets collected, the power stays on, and toilets always flush in the United States.

My most proud moment as an American happened before we traveled the world.  In the decade that preceded our trip I called Washington, D.C., and specifically Capitol Hill, home.  Each summer, the Smithsonian Institution celebrates its Folklife Festival; a celebration recognizing a department of the US Government, a US State, and a foreign country.  Each summer Jillian and I would spend a few days walking around enjoying the regional and national foods for sale, the cultural shows, and the exhibits.  I remember events such as the US Forest Service teaching ‘Dutch Oven Delights’ and an Irish contingent leading a group of unsuspecting tourists in some pretty serious dance moves.

In 2008, the focus was on NASA, Texas, and Bhutan.  Many of the Bhutanese who came seemed to be skilled in traditional Bhutanese archery or dance.  I suspect many had spent most of their lives near the village in which they were born, for they were wide eyed and curious. I doubt many had previously traveled abroad and I wouldn’t be surprised if not a one had ever made it across an ocean before the festival.  Their cultural shows were interesting and beautiful, I learned about their country, and enjoyed some of their cuisine.  Eventually I walked into one of the tents NASA had setup to showcase the Apollo program.

In the tent was a man who had dressed Apollo astronauts in their spacesuits prior to launch.  He was there to talk about the suit itself.  On a display table was an astronaut’s boot.  In describing the spacesuit, he shared that this was an actual moonboot, one that had made contact with the lunar surface.  A Bhutanese man, in his traditional national dress, picked up the boot and held it for a very long time.  This was a man who maybe had never been out of his village, he had now traveled halfway around the world, and was holding carefully in his hand, with great reverence, a shoe that had actually touched the moon.

There is not another country Earth where anything remotely similar could have taken place.

I don’t know what tomorrow’s news will bring, or the next day’s. I do know that after watching the updates from our Capitol on Wednesday I got in my car and drove home.  The electricity was on, the trash was [yes, it was actually that day of the week] picked up the next morning, and the toilets appear to still be flushing.  These are seemingly insignificant things in an incredibly significant week in US political history. My point is that America, even on one of its worst days, continues to function.

I know that we are a nation who, just like the world in which we belong, is filled with an array of diverse peoples and opinions and that with that diversity comes the occasional wart.  I know that diversity also powers markets and allows us to choose between a can of soup or a filet for dinner, a Toyota Prius or a Ford F-150, from among 31 flavors at Baskin Robbins and about 10,000 movies and television shows on dozens of streaming services and channels.  Those markets power our government and, recently, a couple of SpaceX rockets as well.  As long as the sun continues to rise there will be markets that demand all of these things and that is why we’ll stay invested in this country and across the world.  Living our best life now, and planning to continue to do so long into the future.

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2020 Q4 Passport Wealth Management client newsletter attached to quarterly statements from January 2021. The newsletter is published to the website for informational purposes only and is not financial or investment advice. You should consult a CERTIFIED FINANCIAL PLANNER™ Professional for financial advice. Past performance may not be indicative of future results. Indexes are not available for direct investment. Investing involves risks, including the potential for loss of principal. There is no guarantee that markets will act as they have in the past or that any investment plan or strategy will be successful.

Election Day Is a Scheduled Event

With a few weeks to go until election day, and voting already underway, it is increasingly difficult to take a breath without hearing something election related.  Many pundits are forecasting a wild ride in the markets through this election season, but it is important not to get caught in the hype and to focus instead on facts. The bottom line is that the market reacts most to surprises, and the election is a scheduled event!

The quantity of charts, diagrams, and graphics that I’ve recently reviewed on this topic is a little mind-boggling.  One study with data dating back to the 1860’s (yes, 160 years of financial data) shows average returns being 0.7% higher in election years versus non-election years. Another study with data back to 1964 shows volatility for the 6 months before and after an election as being statically the same, on average, and that this volatility was less, on average, than non-election year volatility.

The summary to this data is simple; stay the course and allow the ‘noise’ of current events to fade into the background.  Still, there is a lot going on these days and if you are concerned at all, please call anytime so we can talk through whatever might be top of mind for you.

Speaking of Markets…What Gives?

The relatively positive performance of global stock markets in the last few months has had many observers scratching their head asking how the market is doing so relatively well with unemployment rising and businesses scaling back.  Although there is no clear answer, there are a few possible reasons.

The first is simple, there are some losers out there (how many airplanes have you been on this year?) but there are also winners.  Consumers may be spending less money, and that does hurt the economy, but they are still spending. As the winners and losers continue to be sorted out, we do see that many companies and industries are doing fine, some even well. (Have you ever seen your local home improvement store so busy?)  The data show that stimulus money has done its job in keeping consumers spending during the pandemic.

Second, the market is generally thought of as a predictor and not always terribly reflective of the ‘here and now’.  Because of this, many believe the market is predicting an improvement in economic conditions.  Why?  Likely because COVID-19 testing capacity and positive patient outcomes are both increasing, which allows businesses to safely experience a relatively return to “normalcy” despite the continuing pandemic.  For example, several US airlines and airports are working to develop rapid testing at the airport to screen passengers before they board a flight. Obviously, this will need to be tested and reviewed, but this is a huge step toward returning to “normal” operations for the travel industry.  Increased availability of testing and rapid results has also allowed sports to return to competition and some countries to re-open their borders.

An Update on Passport Wealth Management

With everything going on in the world, you can imagine that journalists are looking for comments from the industry.  Some of these reporters have found their way to me.  You can always read our press coverage on the website.  And last, but certainly not least, Passport Wealth Management continues to grow!  I hope you’ll join me in welcoming Corné Botha to the team as our Client Services Specialist.

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2020 Q3 Passport Wealth Management client newsletter attached to quarterly statements from November 2020. The newsletter is published to the website for informational purposes only and is not financial or investment advice. You should consult a CERTIFIED FINANCIAL PLANNER™ Professional for financial advice. 

Past performance may not be indicative of future results. Indexes are not available for direct investment. Investing involves risks, including the potential for loss of principal. There is no guarantee that markets will act as they have in the past or that any investment plan or strategy will be successful.