Jeffry Clarke

Last week, the DOW hit an all time high of 40,000! When an index hits a large checkpoint like this, it's easy to become fearful that it has to capitulate at some point. This is especially true for those who remember it being about 10,000 "only" 20 years ago. It's hard to believe how quickly its value increases, and it seems like the higher it gets, the quicker it hits new benchmarks. But thinking about the nominal value of stock indexes completely misses the point! All that matters is the *percentage* gain or loss relative to previous values, and the DOW is well within normal ranges for a mature secular bull market. Think about it this way - to go from 10,000 to 20,000 takes a 100% gain, but to go from 30,000 to 40,000 only takes a 33% gain. For this reason, new 10,000 benchmarks will appear much faster than previous ones (this is the definition of compounding!). So please don't let "new all time highs" scare you into thinking a downturn is inevitable.

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Traditional tax-loss harvesting methods may inadvertently add undue tracking risk to a portfolio. We believe there is a better way. https://allsprg.co/3J3wtBy #DirectIndexing #Remi #TaxEfficiency

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A good example of what happens when Internal Controls over Financial Reporting fail – assuming they are in place to begin with. Many smaller and early-stage companies, both public and private, chafe under the ICFR requirements, believing it is not important and is more trouble than it is worth, especially since the SEC does not require Auditor Attestation of their ICFR in their annual reports. These companies have many arguments about why ICFR is not important to them. They say they trust their team, and fraud would never be an issue. I am sure a lot of people trusted that bank President, too. They say they have limited (or no) revenue. ICFR isn’t just about revenue. They have their shareholder’s and lender’s funds they expend in the course of their operations, and that money needs to be handled carefully, too. They say they are too small for it to make a difference. ICFR benefits all companies. And having them in place early helps them grow. And ICFR isn’t just about preventing fraud. It provides consistent processes and identifies mistakes. Besides ensuring accuracy, it will greatly ease an outside audit. Taking many extra days to satisfy your auditors due to disorganized records is disruptive and expensive in time and money. Effective ICFR is also good corporate governance. It provides confidence in the company, and its management, among investors. This is especially important for smaller companies dependent upon regular infusions of capital to operate and grow. Good ICFR is important for all companies, public and private. They do not need to be burdensome or onerous. They need to be tailored to the Company’s specific circumstances and capabilities, and adjusted to fit as those change. Every company, no matter the size or level of development, needs to establish their own ICFR and make sure they stick to the protocols. In the end, following the processes are infinitely cheaper and easier than not. #financialreporting #regulatoryreporting #capitalmarkets https://lnkd.in/gtFfmWzA

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Succession for most advisors I'm speaking with is selling to an aggregator attached to a PE partner. Multiples for a $700m firm range from 8 to 11 times EBOC, with many caveats that must be met to hit those numbers. Owners in this arrangement leave G2 at the whim of the buyer. Wealth Advisor Growth Network has developed a succession incubator program that adds a step to the process and allows advisors to increase multiples by as much as 40%. Institutional investors love our space. They are aggregating firms with the hope of selling the larger firm at a higher multiple. This financial engineering benefits them not the advisor. There is a better solution for your life's work. #RIA #Wealthmanagement #Breakaway #Fiduciary

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BREAKING: August CPI inflation falls to 2.5%, in-line with expectations of 2.5%. Core CPI inflation was unchanged at 3.2%, in-line with expectations of 3.2%. This marks the lowest annual inflation rate since March 2021. The first rate cut since 2020 is coming next week. It's all about the jobs. This helps to illustrate why rates are down stream to income and cost of living. https://lnkd.in/gj37aZct

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1 Comment

Why are you still holding your vested RSUs? I find many people hold on to vested RSUs much longer than maybe they should. Reasons like: – Company loyalty – Overoptimism on company growth – Fearful of tax consequences I think at the root, RSUs represent complexity that keeps people from understanding them. That’s why explain it this way: Once an RSU has vested, it’s functionally the same as your company handing you a lump sum cash bonus, and you turn around and buy company stock. So the question becomes–would you buy your company’s stock? Are you sufficiently diversified across your portfolio? RSUs are an important part of your wealth building. Make sure you understand how they contribute.

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