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Tag: adviser

  • Pondering a run for governor, Atty. Gen. Rob Bonta faces questions about legal spending

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    As California Atty. Gen. Rob Bonta ponders a run for governor, he faces scrutiny for his ties to people central to a federal corruption investigation in Oakland and payments to private attorneys.

    Bonta has not been accused of impropriety, but the questions come at an inopportune time for Democrat, who says he is reassessing a gubernatorial bid after repeatedly dismissing a run earlier this year.

    Bonta said the decisions by former Vice President Kamala Harris and Sen. Alex Padilla not to seek the office altered the contours of the race.

    “I had two horses in the governor’s race already,” Bonta said in an interview with The Times on Friday. “They decided not to get involved in the end. … The race is fundamentally different today, right?”

    Bonta said he has received significant encouragement to join the crowded gubernatorial field and that he expects to make a decision “definitely sooner rather than later.” Political advisors to the 54-year-old Alameda politician have been reaching out to powerful Democrats across the state to gauge his possible support.

    Historically, serving as California attorney general has been a launching pad to higher office or a top post in Washington. Harris, elected to two terms as the state attorney general, was later elected to the U.S. Senate and then as vice president. Jerry Brown served in the post before voters elected him for a second go-around as governor in 2010. Earl Warren later became the chief justice of the Supreme Court.

    Bonta, the first Filipino American to serve as the state’s top law enforcement official, was appointed in March 2021 by Gov. Gavin Newsom after Xavier Becerra resigned to become U.S. Health and Human Services secretary. Bonta easily won election as attorney general in 2022.

    Bonta was a deputy city attorney in San Francisco and vice mayor for the city of Alameda before being elected to the state Assembly in 2012. During his tenure representing the Alameda area, Bonta developed a reputation as a progressive willing to push policies to strengthen tenants’ rights and to reform the criminal justice system.

    In his role as the state’s top law enforcement official, Bonta has aggressively fought President Trump’s policies and actions, filing 46 lawsuits against the administration.

    Bonta also faced controversy this past week in what Bonta’s advisers say they suspect is an attempt to damage him as he considers a potential run.

    “Political hacks understand it’s actually a badge of respect, almost an endorsement. Clearly others fear him,” said veteran Democratic strategist Dan Newman, a Bonta adviser.

    On Monday, KCRA reported that Bonta had spent nearly $500,000 in campaign funds last year on personal lawyers to represent him in dealings with federal investigators working on a public corruption probe in Oakland.

    On Thursday, the website East Bay Insider reported that as that probe was heating up in spring 2024, Bonta had received a letter from an Oakland businessman warning him that he might soon be subject to blackmail.

    The letter writer, Mario Juarez, warned Bonta that another businessman, Andy Duong, possessed “a recording of you in a compromising situation.”

    Duong was later indicted, along with his father David Duong and former Oakland Mayor Sheng Thao, on federal bribery charges. All have pleaded not guilty. An attorney for David Duong this week said that Juarez, who is widely believed to be an informant in the case against the Duongs and Thao, was not credible. Juarez could not be reached for comment.

    Bonta said his legal expenditures came about after he began speaking with the U.S. Attorney’s office, who approached him because prosecutors thought he could be a victim of blackmail or extortion. Bonta said the outreach came after he already had turned over the letter he had received from Juarez to law enforcement.

    Bonta said he hired lawyers to help him review information in his possession that could be helpful to federal investigators.

    “I wanted to get them all the information that they wanted, that they needed, give it to him as fast as as I could, to assist, to help,” Bonta said. “Maybe I had a puzzle piece or two that could assist them in their investigation.”

    He said he may have made “an audible gasp” when he saw the legal bill, but that it was necessary to quickly turn over all documents and communications that could be relevant to the federal investigation.

    “The billing rate is high or not insignificant at private law firms,” Bonta said. “We were moving quickly to be as responsive as possible, to be as helpful as possible, to assist as as much as possible, and that meant multiple attorneys working a lot of hours.”

    Bonta said the state’s Fair Political Practices Commission also has alerted him that it received a complaint against him. Bonta and his advisers believe is about the use of campaign funds to pay the legal expenses and suspect it was filed by the campaign of a current gubernatorial candidate.

    “We’re not worried,” Bonta said. “That’s politics.”

    Asked whether these news stories could create obstacles to a potential gubernatorial campaign, Bonta pushed back against any assertion that he may have “baggage.” He said he was assisting federal prosecutors with their investigation with the hopes of holding people accountable.

    “That’s what I would expect anyone to do, certainly someone who is committed as I am to public safety.,” he said. “That’s my job, to assist, to support, to provide information, to help.”

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    Seema Mehta, Jessica Garrison

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  • Financial advisers make rich people richer. But is that all there is?

    Financial advisers make rich people richer. But is that all there is?

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    In 1989, author Marsha Sinetar wrote a bestselling book, “Do What You Love, The Money Will Follow.” She urges readers to pursue a career that stokes their passion.

    Many advisers take that advice. They love what they do. And the money follows: Median pay for U.S. financial advisers was $95,390 in 2022, according to the Bureau of Labor Statistics.

    Lately, though, the passion is waning for some advisers. They still love the practice of wealth management — customizing financial plans, constructing client portfolios and analyzing the ever-growing menu of investment products.

    They’re just not as enamored of their clients’ wealth. Reassuring wealthy retirees that they can afford to buy a second (or third) vacation home has its merits. But helping them accumulate more and more wealth rings hollow after awhile.

    Steve Oniya, a Houston-based certified financial planner, works with a diverse mix of clients. He enjoys helping them achieve their goals, regardless of their net worth. “It’s more gratifying helping them get over some hurdles to get to the life that they really want,” he said. “You make more of an impact that way.”

    He compares his work to a firefighter’s job. Some days, they rescue people from burning buildings. Other days, they put out a dumpster fire. Yet they’re always driven to excel and perform at a high level.

    Nevertheless, if an adviser serves rich clients who hoard their money, don’t give to charity and lack perspective on what matters most in life, a day at the office can feel dispiriting. “Sometimes advisers may be passionately opposed to certain clients’ values,” Oniya said. “In those instances, end the relationship or limit the scope.”

    Oniya said he does not find clients’ wealth objectionable. He sees his role as an ally who seeks to understand — and not judge — others’ beliefs and values.

    “I like to stay in the neutral camp,” Oniya said. “It’s easy to empathize with another person and see they are a person who needs help just like others. We’re generally here to advise them on how to be more efficient and effective financially in attaining their goals.”

    The arc of an adviser’s career comes into play as well. To build a practice, newly minted financial planners might welcome pretty much anyone with sufficient assets.

    Once they establish a stable book of business, advisers may get picky in deciding whom to serve. Their onboarding process might get more rigorous in an effort to determine if they’re aligned with a potential client’s aspirations, goals and priorities.

    Some advisers shift gears as they gain experience working with different types of clients. They come to realize what they like most about the job and adjust their practice — and the type of clients they serve — accordingly.

    “Everyone evolves,” said Angeli Gianchandani, a professor of marketing at University of New Haven’s Pompea College of Business. “Advisers may see there’s a greater reward and opportunity helping people in a different income bracket.”

    As a self-test, advisers at a career crossroads might want to ask themselves how they’d respond to two clients. The first one says, “You saved me $5 million. Now I want to save $10 million to buy a bigger yacht.”

    The other says, “You helped me pay off my student debt” or “You helped me save enough for a down payment to buy my first house.”

    “You may feel more valued and appreciated as an adviser” if you pave the way for someone who lacks vast wealth to build a nest egg for the future, Gianchandani says.

    Advisers who have misgivings about helping wealthy people attain greater wealth are not alone. Brooke Harrington, a sociology professor at Dartmouth College, interviewed 65 wealth managers between 2007 and 2015. About one-quarter expressed qualms about helping lower ultra-wealthy clients’ tax liabilities.

    Still, another 25% did not feel such qualms. They saw their role as defending their clients from an unjust tax code.

    More: Wall Street legend Byron Wien dies at 90. Here are his ’20 life lessons’

    Also read: The IRS is auditing the rich. Can you fly under the radar if you’re not wealthy?

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  • These are the biggest money mistakes we make in our 20s, 30s and 40s

    These are the biggest money mistakes we make in our 20s, 30s and 40s

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    Financial literacy peaks at age 54, according to a 2022 study. That’s around the time you’ve gained enough knowledge and experience to make sound money decisions — and before your cognitive ability might start to ebb.

    “As we get older, we seem to rely more on past experience, rules of thumb, and intuitive knowledge about which products and strategies are better,” said Rafal Chomik, an economist in Australia who led the study.

    If people in their mid-50s tend to make smart financial moves, where does that leave younger generations?

    Advisers often educate clients at different stages of life to avoid money mistakes. While those in their 50s usually demonstrate optimal prudence  in navigating investments and savings, advisers keep busy helping others — from twentysomethings to mid-career professionals — avoid costly financial blunders:

    Navigate your 20s

    Perhaps the biggest blunder for young earners is spending too much and saving too little. They may also lack the long-term perspective that encourages long-range planning.

    “The mistake is not establishing the saving habit early, and not appreciating the power of compounding” over time, said Mark Kravietz, a certified financial planner in Melville, N.Y.

    Similarly, it’s common for young workers to delay enrolling in an employer-sponsored retirement plan. Not participating from the get-go comes with a steep long-term cost.

    “ Better to prioritize debt with the highest interest rate, which can result in paying less interest over the long run. ”

    People in their 20s process incoming information quickly. But their high level of fluid intelligence can work against them. Cursory research into a consumer trend or hot sector of the stock market can spur them to make rash investments. Such impulsive moves might backfire.

    “It’s important to resist the hype,” Kravietz said. “Don’t chase fads or try to make fast money” by timing the market.

    Many young adults with student debt juggle multiple loans. Eager to chip away at their debt, they fall into the trap of choosing the wrong loan to tackle first, says Megan Kowalski, an adviser in Boca Raton, Fla.

    Rather than pay off the highest-interest rate loan first (so-called avalanche debt), they mistakenly focus on the smallest loan (a.k.a. snowball debt). It’s better to prioritize debt with the highest interest rate, which can result in paying less interest over the long run.

    Navigate your 30s

    “ Resist the temptation to lower your 401(k) contribution to boost your take-home pay. ”

    By your 30s, insurance grows in importance. You want to protect what you have — now and in the future. But many people in this age group neglect their insurance needs. Or they misunderstand which coverages matter most.

    “If you have a life partner and kids, get the proper life insurance while in your 30s,” Kravietz said. 

    It’s easy to get caught up in your career and assume you can put off life insurance. But even low odds of your untimely death doesn’t mean you can ignore the risk of leaving your loved ones without a cash cushion.

    Another common blunder involves disability insurance. If your employer offers short-term disability insurance as an employee perk, you may think you’re all set.

    However, the real risk is how you’d earn income if you suffer a serious and lasting illness or injury. Don’t confuse short-term disability insurance (which might cover you for as long as one year) with long-term disability coverage that pays benefits for many years.

    Assuming you were wise enough to enroll in your employer-sponsored retirement plan from the outset, don’t slough off in your 30s. Resist the temptation to lower your 401(k) contribution to boost your take-home pay.

    “You want to give till it hurts,” Kravietz said. “Keep putting money away” in your 401(k) or other tax-advantaged plan until you feel a sting. Weigh the minor pain you feel now against the major relief of having a much bigger nest egg decades from now.

    Navigate your 40s

    “ ‘The 40s are often the most expensive in anyone’s life. Life is getting more complicated.’”

    For Kravietz, the 40s represent a decade of heavy spending pressures. Mid-career professionals face a mortgage and mounting tuition bills for their children.

    “The 40s are often the most expensive in anyone’s life,” he said. “Life is getting more complicated.”

    As a result, it’s easy to overlook seemingly minor financial matters like updating beneficiaries on your 401(k) plan or completing all the appropriate estate documents such as a will.

    “People in their 40s sometimes fail to update beneficiaries,” Kravietz said. For example, a new marriage might mean changing the beneficiary from a prior partner or current parent to the new spouse.

    It’s also easy to get complacent about your investments, especially if you’re the conservative type who favors a set-it-and-forget-it strategy. Instead, think in terms of tax optimization.

    “In your 40s, you want to take advantage of what the government gives you,” Kravietz said. “If you have a lot of money in a bank money market account and you’re in a top tax bracket, shifting some of that money into municipal bonds can make sense” depending on your state of residence and other factors.

    If you’re saving for a child’s college tuition using a 529 plan — and you have parents who also want to chip in — work together to strategize. Don’t make assumptions about how much (or how little) your parents might contribute to your kid’s education.

    “Rather than assume you’ll have to pay a certain amount for educational expenses, coordinate between generations of parents and grandparents” on how much they intend to give, Kowalski said. “That way, you’re not duplicating efforts and you won’t put extra funds in a 529 plan.”

    More: 7 more ways to save that you may not have considered

    Also read: ‘We live a rather lavish lifestyle’: My wife and I are 33, live in New York City and earn $270,000. Can we retire at 55?

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  • These are the biggest money mistakes we make in our 20s, 30s and 40s

    These are the biggest money mistakes we make in our 20s, 30s and 40s

    [ad_1]

    Financial literacy peaks at age 54, according to a 2022 study. That’s around the time you’ve gained enough knowledge and experience to make sound money decisions — and before your cognitive ability might start to ebb.

    “As we get older, we seem to rely more on past experience, rules of thumb, and intuitive knowledge about which products and strategies are better,” said Rafal Chomik, an economist in Australia who led the study.

    If people in their mid-50s tend to make smart financial moves, where does that leave younger generations?

    Advisers often educate clients at different stages of life to avoid money mistakes. While those in their 50s usually demonstrate optimal prudence  in navigating investments and savings, advisers keep busy helping others — from twentysomethings to mid-career professionals — avoid costly financial blunders:

    Navigate your 20s

    Perhaps the biggest blunder for young earners is spending too much and saving too little. They may also lack the long-term perspective that encourages long-range planning.

    “The mistake is not establishing the saving habit early, and not appreciating the power of compounding” over time, said Mark Kravietz, a certified financial planner in Melville, N.Y.

    Similarly, it’s common for young workers to delay enrolling in an employer-sponsored retirement plan. Not participating from the get-go comes with a steep long-term cost.

    “ Better to prioritize debt with the highest interest rate, which can result in paying less interest over the long run. ”

    People in their 20s process incoming information quickly. But their high level of fluid intelligence can work against them. Cursory research into a consumer trend or hot sector of the stock market can spur them to make rash investments. Such impulsive moves might backfire.

    “It’s important to resist the hype,” Kravietz said. “Don’t chase fads or try to make fast money” by timing the market.

    Many young adults with student debt juggle multiple loans. Eager to chip away at their debt, they fall into the trap of choosing the wrong loan to tackle first, says Megan Kowalski, an adviser in Boca Raton, Fla.

    Rather than pay off the highest-interest rate loan first (so-called avalanche debt), they mistakenly focus on the smallest loan (a.k.a. snowball debt). It’s better to prioritize debt with the highest interest rate, which can result in paying less interest over the long run.

    Navigate your 30s

    “ Resist the temptation to lower your 401(k) contribution to boost your take-home pay. ”

    By your 30s, insurance grows in importance. You want to protect what you have — now and in the future. But many people in this age group neglect their insurance needs. Or they misunderstand which coverages matter most.

    “If you have a life partner and kids, get the proper life insurance while in your 30s,” Kravietz said. 

    It’s easy to get caught up in your career and assume you can put off life insurance. But even low odds of your untimely death doesn’t mean you can ignore the risk of leaving your loved ones without a cash cushion.

    Another common blunder involves disability insurance. If your employer offers short-term disability insurance as an employee perk, you may think you’re all set.

    However, the real risk is how you’d earn income if you suffer a serious and lasting illness or injury. Don’t confuse short-term disability insurance (which might cover you for as long as one year) with long-term disability coverage that pays benefits for many years.

    Assuming you were wise enough to enroll in your employer-sponsored retirement plan from the outset, don’t slough off in your 30s. Resist the temptation to lower your 401(k) contribution to boost your take-home pay.

    “You want to give till it hurts,” Kravietz said. “Keep putting money away” in your 401(k) or other tax-advantaged plan until you feel a sting. Weigh the minor pain you feel now against the major relief of having a much bigger nest egg decades from now.

    Navigate your 40s

    “ ‘The 40s are often the most expensive in anyone’s life. Life is getting more complicated.’”

    For Kravietz, the 40s represent a decade of heavy spending pressures. Mid-career professionals face a mortgage and mounting tuition bills for their children.

    “The 40s are often the most expensive in anyone’s life,” he said. “Life is getting more complicated.”

    As a result, it’s easy to overlook seemingly minor financial matters like updating beneficiaries on your 401(k) plan or completing all the appropriate estate documents such as a will.

    “People in their 40s sometimes fail to update beneficiaries,” Kravietz said. For example, a new marriage might mean changing the beneficiary from a prior partner or current parent to the new spouse.

    It’s also easy to get complacent about your investments, especially if you’re the conservative type who favors a set-it-and-forget-it strategy. Instead, think in terms of tax optimization.

    “In your 40s, you want to take advantage of what the government gives you,” Kravietz said. “If you have a lot of money in a bank money market account and you’re in a top tax bracket, shifting some of that money into municipal bonds can make sense” depending on your state of residence and other factors.

    If you’re saving for a child’s college tuition using a 529 plan — and you have parents who also want to chip in — work together to strategize. Don’t make assumptions about how much (or how little) your parents might contribute to your kid’s education.

    “Rather than assume you’ll have to pay a certain amount for educational expenses, coordinate between generations of parents and grandparents” on how much they intend to give, Kowalski said. “That way, you’re not duplicating efforts and you won’t put extra funds in a 529 plan.”

    More: 7 more ways to save that you may not have considered

    Also read: ‘We live a rather lavish lifestyle’: My wife and I are 33, live in New York City and earn $270,000. Can we retire at 55?

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