News & Blog

Of Markets and Mountains

In the last three months precious little has changed with respect to the markets.  We still have significant geopolitical risk, thanks to the omnipresent threat of trade war, yet markets are still flirting with all-time highs.  The specter of political risk has increased, both domestically and abroad, but somehow it seems the more things change, the more they stay the same.  If you’re concerned about these events and their potential impact on your portfolio, call me!

Three months ago, I also shared with you that Jillian and I were going to re-attempt our summit of Mount Washington, this time aiming to conquer the entire Presidential Traverse in a single day. We successfully summitted the mountain!  Unfortunately, Jillian had to tap out at the summit, while I finished the remainder of the 22-mile traverse with others from our group.[1]  The highlight was the three special visitors who greeted us at the blustery summit, courtesy of Jillian’s parents.

Fighting the Good Fight

Like many of you I find myself a member of several different organizations.  This month one of these is making waves in the investment community and I couldn’t be prouder.  Alongside eight state attorneys general, XY Planning Network has launched a lawsuit against the Securities and Exchange Commission (SEC).[2] [3]

Many of my clients have found me on account of my being a Fee-Only Fiduciary, someone who is legally required to place a client’s interest ahead of my own.  Others in the investment community hold themselves out as ‘Financial Advisors’ planning for ‘holistic needs’ while NOT abiding by that fiduciary standard.  They may earn commissions on the products they sell to their clients, creating conflicts of interest.  The SEC took steps to allow these individuals to call themselves fiduciaries without requiring them to be held to the traditional legal standards of the word ‘fiduciary’.  This lawsuit aims to stop that effort in its tracks, protecting the legal definition of the word for consumers.

TD Ameritrade Takes a Big Step Forward!

You may have seen the news… TD Ameritrade is eliminating transaction fees for online exchange-listed stocks and ETFs, moving from $6.95 to $0.00.[4]  The change has already gone into effect and I’m thrilled by TD’s move to lower the cost of investing.  Generally, most of the ETFs used by us at Passport already traded without transaction fees, so there will be minimal immediate impact. Longer term this does expand the pool of investment options we’ll consider using.

Access your accounts via our new app!

It doesn’t matter whether you’re an Android user or an iPhone aficionado.  We’ve launched the free PassportWM app on both app stores!  From the app you’ll be able to check your accounts, view your investment performance, transactions, and quarterly statements.  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 Q3 Passport Wealth Management client newsletter attached to quarterly statements from October 2019. 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://riabiz.com/a/2019/7/29/skip-schweiss-and-chip-roame-reward-ria-super-hikers-with-soft-beds-sharp-rocks-and-junk-food-to-slog-new-hampshires-presidential-traverse

[2] https://www.investmentnews.com/article/20190910/FREE/190919988/xy-planning-network-sues-sec-over-reg-bi

[3] https://www.morningstar.com/articles/947744/litigation-against-the-secs-regulation-best-interest-not-surprised

[4] https://www.tdainstitutional.com/content/dam/institutional/resources/press-releases/oct_1_pricing_press_release.pdf?cid=em

Of Markets and Mountains

Thirteen years ago, less than a year into our marriage, Jillian and I attempted to hike the entire Presidential Traverse in New Hampshire.  The critical part on that hike is the summit of Mount Washington, known to host the world’s worst weather.  We started off on a beautiful day, hiked up the ‘long way’ to make the summit on day two.  When we woke up at our campsite on that second day, and hiked above tree-line, it wasn’t long before turned back due to the gale force winds and 20 feet of visibility.  Because we were prepared, we weathered the storm and made it back down the mountain safely- disappointed- but no worse for the wear.

Looking at the markets this past quarter, amid renewed threats of trade wars and an array of geopolitical challenges, I find it’s ironic that just next week Jillian and I will again be attempting to complete The Presidential Traverse.  This time all 21.7 miles and 8,800 feet in elevation…in a single day.

When it comes to financial planning, we cannot always predict where and when the bad weather will arise, but we can plan and prepare for it, understanding what our options are and different paths we may take.  We know there will be more good days than bad and although we don’t leave intentionally leave our future to chance, we understand that chance can happen.  This July we know the mountain range is still there, as is the chance for risky weather, but once again our planning and preparation will be there too.

In the life of Passport Wealth Management

Two big items to report.  The first is the firm’s move to a new office on the shores of Lake Norman in Cornelius, NC.  This gives us a great view of the lake, but also space to grow. On that note, I’m pleased to announce the addition of Katie Beamer as a Client Service Associate to Passport Wealth Management.  Katie, welcome aboard!

And Some Reading

Many people find themselves looking a good summer’s read so I was interested to read the Washington Post’s list of “The Best Books to Read at Every Age, from 1 to 100”.[1]  As I went through the list I found myself at first amused, then bemused and finally offended.  Apparently all 30 somethings have few interests other than parenting and mid-life crises and 50 somethings are similarly concerned with their mortality.  There were some interesting picks for sure, worth a perusal if nothing else.

Live Long and Prosper,

Daniel Tobias, CFP®

Please note: The above is a copy of the 2019 Q2 Passport Wealth Management client newsletter attached to quarterly statements from July 2019. 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.washingtonpost.com/graphics/2019/entertainment/books/100-books-for-the-ages/

Why Goals Matter

While putting my children to bed one night a few weeks ago I suddenly connected with the fact that it was March of 2019.  With the kids in bed, I quickly ran to the safe and pulled out my passport.  Flipping through the pages, looking at my old visas from places like Zimbabwe, Laos, Kazakhstan, Ethiopia and Brazil brought back a flood of memories, but I couldn’t find the entry stamp I was looking for.  I went to my email, told Jillian what I was looking for, and eventually we confirmed my memory.  It has been exactly 10 years since we embarked on our trip around the world.  It has been exactly 10 years since we entered Mexico on foot, ate a subway sandwich, hopped on a bus, and began a journey south through the Americas that eventually morphed into our passing through 50 countries over the course of 21 months.

It had started with a goal and a plan.

Senior year of college, like most seniors, I had the unpleasant task choosing a course for the rest of my life.  None looked particularly enticing but I eventually took a first step, joined IBM and worked mostly with the USPS.  It was fine, I did well and was compensated fairly, but it didn’t excite me.  Having already set a goal for myself that did excite me, to explore the world and follow summer temperatures through the various hemispheres for a couple of years, helped me to stay on task and remain focused.  I did the math and determined what I needed to save monthly to make it happen.

Jillian and I married, and we continued the path together.  At the time some of our friends, and certainly the talking heads on TV, were focused on buying real estate.  That didn’t ‘fit’ our plan, so we didn’t engage.  The market crashed but our money, because it was ‘short-term’ money that we intended to use up in a short amount of time, had been safely stowed away in a money market fund.  We thought for a moment about taking that cash and buying a house, with the real estate market in shambles it would have been a good buy, but that wasn’t our plan and so we didn’t do it.

On the first full day of our trip we were on a boat in Baja California, Mexico, petting a wild grey whale and its new born calf.  A few days after that we were swimming with sea lions and enjoying the best Mexican food we’d ever had.  We never looked back and never regretted the decision to follow through on our goal.

Taking that trip and sticking to our goal and plan probably had a far greater impact on the course of our lives than if we’d simply purchased a house in 2009.  If nothing else, I wouldn’t be your advisor today if it weren’t for that trip!

This experience is why I place such a strong emphasis on understanding your goals in order to create a plan.  Not every plan is fully developed, nor is every goal well-articulated.  Still, when we understand ‘where’ we want to go then we can figure out if that investment property, new business venture or contribution to our retirement accounts, is supportive of our goal…or a mere diversion.

Thank you for taking this stroll down memory lane with me, but more importantly, thank you for the trust and faith you place in my abilities to help you achieve your dreams and goals.

Live Long and Prosper,

Daniel Tobias, CFP®

Please note: The above is a copy of the 2019 Q1 Passport Wealth Management client newsletter attached to quarterly statements from April 2019. 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.

Happy New Year! The markets are up!

Although you didn’t expect me to say that, allow me to clarify.  Since January 1, 2019, through the time of my writing on Jan 10^th, the global equity market (depending on what index you use) is up by about 4.5%.  If we go all the way back to January 1, 2017, those same indices will show global stock gains of about 6-10%.  Yes, those are positive numbers.

So why all the hubbub around big market losses?  Because 2018 didn’t end as well as it started. Because the news media takes in more advertising dollars when they write more hyperbolic articles about the stock market.  Because since the start of 2018, through January 10, 2019, those same global markets are down 10-12%.  Because all those reasons combine to garner our attention and make us worry.

This is the reason I spend so much time working with you to understand your goals, to make sure your investments are structured in a way that we don’t have to worry about these market gyrations.  If you are worried, call me and we’ll talk about it!  Otherwise, allow us to recognize market downturns for what they are: part of process, something we expect to happen and an excellent time to invest in the stock market.

In the life of me and Passport.

As 2018 drew to a close I had an awful lot to reflect upon.

The Good: Amira and Nora seem to be adjusting well to kindergarten; Samuel continues to enjoy preschool.  Passport Wealth Management, my baby of 2018, seems to be off to a great start and I have you to thank for that; so thank you!

The Bad: I stepped into the role of Temple President last summer and I now find myself in the business of hiring a new Rabbi!

The Ugly: The twins have started dance lessons…tap lessons! The floors in our home are now serving as practice studio.

Some pleasant diversions.

The best book I read this year was City of Thieves by David Benioff[1].  The book takes place in St. Petersburg at the time of the Nazi siege.  One lasting memory I have from college is a European History course is one lecture in particular about the siege, it was a powerful memory and reading this novel was just as riveting.

It is rare that I tune into the radio while driving and hear a story that I absolutely must listen to the end of, even if that means sitting in parked car for 20 minutes waiting for the story to end.  That happened to me when I heard the story[2] of the man who was swallowed by the hippo but lived to tell about it.  Paul Templer also wrote a book[3] about his experience.

Finally, to those of you in cities with a strong commercial air service by Southwest Airlines I turn your attention to the best credit card offer[4] I’ve seen in ages.  For four years either myself or Jillian held a Southwest Airlines Companion Pass and used it to garner thousands of dollars in free airfare.  The way we used to get it involved applying for two Southwest credit cards simultaneously and spending dollars at a certain time around the start of the new year. This new card is much easier than the old way, the only loss being you get the companion pass for 1 year, instead of 2.  It is simply a great deal!

Live Long and Prosper,

Daniel Tobias, CFP®

Please note: The above is a copy of the 2018 Q4 Passport Wealth Management client newsletter attached to quarterly statements from January 2019. 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.amazon.com/City-Thieves-Novel-David-Benioff/dp/0452295297/

[2] http://snapjudgment.org/belly-of-the-beast

[3] http://www.paultempler.com/pauls-book/

[4] https://awardwallet.com/blog/southwest-companion-pass-welcome-bonus/

Thank You.

I could not begin this letter in any other way: Thank you!  I mean to thank you not only for your business and your support, but also for the patience you’ve shown me as I get my systems up and running and get back to what I do best—working with you to help you achieve your goals.  With that in mind I’d like to share with you some of my own goals, both for this business and for myself.  Given I spend considerable time at each of our meetings asking you about your future, I feel this is only fair!

As you already know, I’m your financial advisor and that means I will be monitoring your portfolio, managing investments for the long term, controlling costs, and keeping focused on our strategy.  I will continue to educate myself and log 2-3 times the continuing education required of me to maintain my CFP® credential.  Passport Wealth Management is structured with an eye toward the future.  I aim to build something that lasts beyond me, with a stable of dedicated long-term employee-partners.  Your quarterly statements should provide you with insight as to the actual performance of the portfolio and, exclusive of this first statement, will be delivered to you electronically using our secure portal, iPhone and/or Android apps.  Although this letter is a little different, I plan for most of my formal communication to go beyond markets and economics, and include updates and information on the firm, my personal life, financial as well as ‘body’ wellness, travel and interesting topics I think you might enjoy.  Since it is my job to help keep you accountable to your goals, I also want to share with you my shorter-term personal goals in an effort to help keep myself accountable:

• Target 2019: Get back in the saddle, and maybe start rock-climbing. One of the reasons for moving to North Carolina was to be able to get outside more.  The weather is cooling off and mountain biking is about to become a Sunday morning priority.  It’s also high-time I join a climbing gym!
• Target 2020: Get up very early one Saturday morning and bike the 80 miles to the NC Zoo and meet the rest of the family for breakfast before visiting the animals. This means focusing on my health, fitness and time management to build a well-balanced life.
• Target 2022: About one year ago my wife told me she wanted to take me to Antarctica to celebrate my 40^th birthday in the winter of 2022. Want to join us?

Since Jillian and I returned from our travels around the world, the memories and experiences from our travels have followed us everywhere we go.  As I’ve grown in my role as a CFP® Professional, I’ve found myself calling upon these experiences with increasing frequency.  I’ve had many clients ask me to create financial plans to “help them do that” or even just ask to see my actual passport!  More and more I’ve learned this business is less about returns and diversification and more about what our money can create for us, specifically experiences and memories with those we care about.

Back when we lived in Washington, DC, I remember an advertisement on the wall of our Metro station with a picture of a big piece of cake followed by the words: “Do This Better!”  The advertisement was for one of the local gyms.  Whatever your goals are—living large with a Tesla, flying an airplane, having a mountain house, living in Portugal, enjoying time well spent with your spouse or spending that time with your children or grandchildren—I look forward to helping you do that better.

Again, thank you for this opportunity.

Live Long and Prosper,

Daniel Tobias, CFP®

Please note: The above is a copy of the 2018 Q3 Passport Wealth Management client newsletter attached to quarterly statements from October 2018. 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.