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 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.