News & Blog

Investing Sustainably

Periodically Environmental, Social and Governance (ESG) investing makes news as an investment trend.  ESG investing means purposefully investing in companies that meet certain criteria with respect to their footprint on the environment (environmental), how they are run (governance), or their impact on employees and society (social).  It is not new, but it is growing in popularity and over the past several years and I have had a greater number of clients make specific requests to me in invest their money with an emphasis on these factors.

As I’ve sought out funds that make use of this data, and continued to review the research and analyze ESG, it has become my belief that investing this way is not just a values decision, but also a value decision.  Research increasingly shows that ESG portfolios perform similarly to non-ESG portfolios, and that incorporating ESG data may even provide an improved return over the long run. Think of this data as a GPS system compared to an old map and compass, it’s not necessarily better, it’s just more information. This information may also result in less risk, since ESG funds could help weed out companies that are a greater financial risk due to their governance, environmental, or social practices.

This is called improving the risk return profile, which is a good thing.  That’s why late last year, guided by the individual Investment Policy Statement (IPS) we developed together at the outset of our relationship, I began incorporating ESG funds into client portfolios. An unintended consequence of the recent market volatility has been an increase in trading, which has accelerated the integration of ESG investments into client portfolios.  As you review your statement this quarter, you may see some new ESG investments.  If you have questions or want to talk about how we’re using “GPS” to get to where we want to go, let’s talk.

My Family Doesn’t Believe in Calm

In the last four months I’ve honed my teaching skills and now feel confident that I can explain regrouping, or as us old folks call it – carrying the one—to any first grader in America.  The Tobias Family Home School is officially closed for the summer and we’ve moved into the second phase of this pandemic, home improvement.  In early June we enlisted the help of a close friend, rented a Bobcat, and began the work of transforming a section of our backyard into an outdoor living area. In the process, we ripped out our deck and discovered not one, but two sinkholes.  (Yes, the Bobcat fell in and spent a couple of days quite stuck four feet in the ground.)  Despite having everything torn up for a month, we have a few weeks left as we patiently await the thrice delayed delivery of brick pavers for new patio.  As Jack Nicholson once said: Good times, noodle salad.  Let’s just hope phase three is a bit quieter and more relaxed!

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2020 Q2 Passport Wealth Management client newsletter attached to quarterly statements from July 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.

Our New Normal

By now you have probably felt the impact of Coronavirus on your daily life.  The virus itself continues to take its toll on families and healthcare systems all over the world, let alone its current economic impacts which have led us to break nearly every unemployment record imaginable.  It’s not all despair though; on the upside we have a very significant stimulus package, Congress is working together for the first time in recent memory, and the number of daily new cases in Europe (which seems to be a few weeks ahead of us) appears to be steadily slowing.

My crystal ball continues to malfunction, and I cannot tell you with any certainty, nor can anyone else out there, when things will get better again.  (If I may make one prediction though, it’s that we’re likely to have a new baby boom at the start of 2021!)  What I can do though is share the lessons of all past financial crises: that once the dust settles, we will all still need something to eat, something to do, and a means to get from A to B.  As long as that remains true then there will be an economy in place to help each us to achieve those ends.  In the meantime, we’ll stick to our plan and continue working to achieve our long-term goals.

But what about stock markets?

The market is rather unique in its ability to absorb and respond to a myriad of data points and information all at once.  Some people think we’re going to have a prolonged economic downturn. Others think this will be relatively short lived, and we’ll be back to normal in time for July 4^th or Labor Day, let alone Thanksgiving.  The truth, as it often does, is likely somewhere between these two extremes.  So long as that truth remains murky, the market will continue to swerve and adjust, and we’ll remain on this bouncy ride.  That’s OK.

We can all use a COVID-19 break!

A book I read ages ago, Susan Maushart’s The Winter of Our Disconnect[1], sticks out in my mind as somewhat prescient for our current plight.  The book is about a family who unplugs for several months, the opposite of what many of us are dealing with today, but it’s in the way they adjust to their new normal and ultimately adopt that experience to their lives going forward that has remained with me since reading it.  As an example, when the family does reengage with their devices, one rule they created is to not bring their media to their food, or vice versa.  Now that we are so glued to our screens, the idea of clinging to some non-screen time seems even more important now than it did a few short months ago.

Finally, if you can use a smile this video[2] is usually good for some contagious laughter.

If you have any questions about your accounts or just want to chat through the current situation, please don’t hesitate to reach out.  In the meantime, now more than ever…

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2020 Q1 Passport Wealth Management client newsletter attached to quarterly statements from August 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.

[1] https://www.penguinrandomhouse.com/books/308759/the-winter-of-our-disconnect-by-susan-maushart/

[2] https://www.youtube.com/watch?v=y3yRv5Jg5TI

A New Year, A New Decade

There’s a reason people traditionally make New Year’s resolutions.  The changing of the calendar is a good opportunity to take stock of where we are, what we want to accomplish, and how we’re going to get there.  Are you making resolutions for your life in 2020? Adjustments? Staying the course? Now is a great time for us to check in on what 2020 and the decade ahead look like.

As for me, my resolutions are a bit on hold.  Goals for biking more in 2020 are on hold while my scaphoid bone heals, thanks to a mountain biking accident in late October.  I’ve spent the holidays in a cast, giving everyone a thumbs up, and have a few more weeks to go.  Meanwhile, Jillian is certainly ready to have me back to washing dishes and taking the dog out in the rain.

Let’s Talk Taxes

If this will be the first year Passport Wealth Management will be working with you to file your tax return, please reach out with a quick message to make sure we’ve got you on our list.  If you have no idea what I’m talking about and didn’t realize we offer this service, please reach out to see if we can help get your return filed with the IRS.

TD Ameritrade Acquired by Schwab

It was just a few short months ago that TD Ameritrade announced it would reduce the commission they earn on each stock trade from $6.95 to $0.  That news was so momentous it helped to set off a chain reaction resulting in the announced takeover of TD Ameritrade by Schwab.  For now, it is business as usual at both firms as the merger has several regulatory hoops to jump through. I will keep you posted on news and developments with ‘Schwabitrade’ (as the new entity is being referred to in the news) as things progress, but for now indications are that ‘Schwabitrade’ will likely function similarly for us as TD Ameritrade does now.

REMINDER: Access Your Accounts via our New App!

It doesn’t matter whether you’re an Android user or an iPhone aficionado, the PassportWM app is available on both Google Play and the Apple App store!  Easily check your accounts, view your investment performance, transactions, and quarterly statements from the app.  If you have trouble accessing your account don’t hesitate to give me a call.

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2019 Q4 Passport Wealth Management client newsletter attached to quarterly statements from January 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.