Banking Archives - Beverly Hills Courier

An Explanation of Bonds

Rebecca Rothstein — Fri, 15 Sep 2023 19:00:14 +0000

I get more questions about bonds than I do about stocks. That’s because many people are initially surprised to find out that bonds move up and down in value until they mature. Why is that? Well, let’s get into it.

There are people who think that investment bonds are a vehicle where you buy a bond and get a certain amount of interest paid to you over a certain period. Well, they’re right. A bond is described as a debt security that pays the bondholder interest that is guaranteed for a fixed period until its maturity and the par (or face) value is repaid at maturity. So, buy a 1-year thousand-dollar bond and you’ll get X amount of interest for 1 year and then at the end of that year, when the bond matures, you get the thousand dollars back. Simple enough in the general sense, but there are many variables and that’s what we’re going to explore today.

As mentioned, bonds move up and down in value, and the number one reason for that is the changes in interest rates. When interest rates are moving up, the price of existing bonds can go down in the secondary market. This is because investors can buy new bonds with higher yields, therefore, they are less willing to buy bonds with lower yields. This relationship between interest rates and bond prices is known as the inverse relationship. In most instances, unless there is a default on the bond, once purchased the bonds will pay the semi-annual or annual interest due, and at maturity pay the bondholder the face value of the bond.

Another reason why bonds fluctuate in value has to do with the changes in the creditworthiness of the issuer. If the issuer’s creditworthiness declines, the value of the bond may also decline.

Given all that, how do you determine which is the right type of bond for you to buy? First, it depends on you, as there are several important factors to consider, which include your investment goals, risk tolerance and time horizon. This is what you need to determine before you buy any kind of bond.

Second, you need to evaluate the bond itself and consider the creditworthiness of the issuer. By evaluating the issuer’s credit rating, you can assess the likelihood of default prior to getting your money back.

Third, what type of bonds should you buy? Well, that depends on who’s issuing the bond and the type of bond it is. Keep in mind that higher-rated bonds generally offer lower yields but they also lower default risk.

Now, let’s look at the various types of bonds you can buy. They include:

1. Corporate bonds, which are issued by corporations and may be considered riskier than government bonds so it’s important to check out the credit rating of the company issuing the bond to determine the risk of the corporate bond you choose to buy;

2. Municipal bonds, which are issued by state and local governments and are most often exempt from state and federal income tax depending on the state where you reside. These bonds are generally considered to be a safe investment;

3. Mortgage bonds, which are backed by a pool of mortgages and can be a relatively safe investment. Mortgage bonds are typically issued by government-sponsored enterprises (GSEs), such as Fannie Mae and Freddie Mac;

4. Treasury Bonds, which are long-term debt securities issued by the government to raise funds for various public projects and obligations. Investors who purchase these bonds are essentially lending money to the government and are very low risk. Treasury bonds are often considered a secure investment option and appeal to individual seeking stable returns.

As mentioned previously, determining a good type of bond that suits your needs depends on several factors, which include your investment goals, risk tolerance, and time horizon, so it’s important to consider the following factors:

Yield: Consider the bond’s yield and compare it with similar bonds. Just know that higher yields can indicate higher risks.

Duration: Assess the bond’s duration, (meaning when does it mature). This measures its sensitivity to changes in interest rates. Longer duration bonds are more sensitive to interest rate changes, meaning their prices can fluctuate more. The main reason you would care about this is if you need the money sooner than when the bond is scheduled to mature, and if you’re in an interest rate environment where the Federal Reserve is raising rates, as we are now, then your bond may be temporarily down in value.

Diversification: Diversify your bond portfolio by investing in different types of bonds such as government, corporate, municipal, or international bonds. This helps spread risk and balance potential.

As you can see, the best type of bond to buy depends on your individual circumstances and investment goals. If you are looking for a safe investment with a predictable income stream, then government bonds may be a good option for you. If you are looking for a higher yield, then you may want to consider corporate bonds or mortgage bonds. However, as noted, these investments can be somewhat riskier, so you should carefully consider your risk tolerance before investing.

To summarize, the factors to consider when determining which type of bond to buy are: Your risk tolerance, or how much risk are you willing to take on; Your investment goals and what you are hoping to achieve with your investment; Your time horizon: how long do you plan to hold the bond and your tax situation. Are you looking for a bond that is tax-exempt?

Once you have considered all these factors, I’m confident you will be able to narrow down your choices and find the best type of bond for you and your personal financial situation. All you have to do is analyze, assess and act!

Rebecca Rothstein works with high-net-worth individuals, families, and institutions, helping them advance their wealth management goals. She began her career as a financial advisor in 1987 at Bear Stearns. She spent 10 years with Deutsche Bank Alex Brown and 13 years with Morgan Stanley Private Wealth Management (formerly Smith Barney) before joining Merrill Lynch. As a Managing Director at Merrill Private Wealth Management, Rebecca focuses on wealth management, tax minimization, and estate planning strategies for affluent clients. She also works with corporate officers, devising liquidity and diversification strategies for concentrated positions. Rebecca has garnered a number of national honors as a financial advisor. Barron’s magazine named her one of the “Top 100 Financial Advisors in America” from 2007 successively through 2012. Barron’s also named Rebecca one of the “Top 100 Women Financial Advisors in America” from the inception of the list in 2006 successively through 2012, profiling her in the 2012 issue. In 2017, Rebecca was recognized by the national publication Forbes, which named her one of “America’s Top Wealth Advisors.” In 2018, 2019, 2020 and 2021, Rebecca was again recognized by Forbes, which named her the #1 of “Top Women Wealth Advisors.” Rebecca is very active in the community. She is the Chairman of the Board and Founder of Teen Cancer America (a global charity founded by Roger Daltrey and Pete Townshend). She is also a Co-Chair of the Childhood Autism Board at UCLA, which helps children who have been diagnosed with autism, developmental disabilities, and behavior disorders, and she is a board member of the UCLA Health System. In her free time, Rebecca enjoys cooking, sailing, and participating in a number of charitable efforts. She has four sons and splits her time between Incline Village, Nevada and Beverly Hills, California with her husband Ron.

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Maximizing Retirement Savings

Rebecca Rothstein — Fri, 19 May 2023 13:00:00 +0000

Retirement planning is a crucial aspect of personal finance and should not be overlooked. This involves planning for your expected retirement needs that you’ll have during your golden years. You’ll need to do this to supplement Social Security because the amount of money you get from the government will simply not be enough to live on comfortably. Most people are underfunded in retirement accounts so it’s essential to start planning and saving for retirement as early as possible as it takes time to build a significant retirement nest egg. Here are some simple strategies to maximize your retirement accounts:

First, start early

The sooner you start saving for retirement, the more time your money has to grow. Starting early can provide you with a significant advantage in building your retirement savings. This is due to the power of compounding, which enables your money to grow over time, i.e., your earnings earn more earnings. The average rate of return of the S&P, with reinvested dividends from January 1,1993 to December 31, 2022, was 9.62%. This is based on the total return index of the S&P 500. If you have a 401(k) plan, contribute as much as you can, up to the annual maximum. The more you save, the more money you will have for retirement. Another benefit of maximizing your 401(k) contributions is that the money you put into the traditional 401(k) is pretax, so it has the added benefit of reducing your taxable income. If you don’t work at a company that offers 401(k) benefits, there are other vehicles you can use such as traditional Individual Retirement Accounts (IRAs), ROTH IRAs, and Deferred Compensation plans, just to name a few. Plus, one of the best benefits of all retirement plans is the tax-deferred nature of qualified retirement plans, i.e., you don’t pay taxes on realized gains and you only pay ordinary income on withdrawals. Tax deferral removes a massive drag on your money that is otherwise present in saving for retirement in ordinary taxable accounts. The distinctions in these plans can be found online or by asking your advisor.

Take Advantage of Employer Contributions

Many employers offer a matching contribution to their employees’ retirement accounts. If your employer offers this benefit, make sure you contribute enough to get the full match. This employer matching is essentially free money and can significantly increase your retirement savings. It is important to fully understand the benefit your employer is offering as it varies from company to company.

Diversify Your Investments

Diversification is crucial in managing risk and maximizing returns. Invest in a mix of stocks, bonds, and other assets that align with your goals and risk tolerance. Consider using low-cost index funds or target-date funds to achieve diversification. There are many choices that are available to you now, so educate yourself as to what these choices are. It is advisable to have a larger allocation to stocks when you are younger, as you have a very long time before you will be taking distributions from these plans.

Keep Fees Low

Fees can eat into your investment returns over time. Be aware of the fees associated with your retirement accounts and choose low-cost investment options where possible. For example, choose index funds or exchange-traded funds (ETFs) with low expense ratios.

Rebalance Regularly

Rebalancing your portfolio involves adjusting your investment mix periodically to maintain your desired asset allocation. It helps manage risk and maximize returns. Rebalancing can be done annually or semi-annually, depending on your investment strategy. Try not to fall into the trap of “TRADING” your account by buying and selling frequently.

Delay Social Security if You Are Able To

Delaying Social Security benefits can increase your retirement income significantly. You can start collecting Social Security benefits as early as age 62 but delaying until age 70 can increase your monthly benefit by up to 8% per year. The information as to what your Social Security Benefits will be is easily available on the Social Security Website. There is a tool on the site that will allow you to model out your benefits depending on when you start to take your social security. In most cases, unless you need the money, delaying when you begin to receive your social security is beneficial. This is something your advisor can help you with.

Consider a Roth IRA

A Roth IRA is an excellent retirement savings vehicle that offers tax-free withdrawals in retirement. Contributions to a Roth IRA are made with after-tax dollars, and qualified withdrawals in retirement are tax-free. There are many advantages to using a ROTH IRA and if your employer offers a ROTH 401(k), it is worthwhile considering as these funds are always going to be tax free when you take distribution. The primary difference is you are using after-tax dollars to fund this. Again, these are decisions you should discuss with your advisor.

Get Professional Help

Consider working with a financial advisor or planner to help you develop a retirement plan that aligns with your goals and objectives. A professional can help you develop a personalized plan and provide valuable guidance on investment strategies, risk management and tax planning.

In summary, maximizing your retirement accounts requires a disciplined approach to saving, investing, and managing risk. Starting early, contributing the maximum, taking advantage of employer contributions, diversifying your investments, keeping fees low, rebalancing regularly, delaying Social Security, considering a Roth IRA, and seeking professional help are all strategies that can help you achieve your retirement goals. With consistent effort and discipline, you can maximize your retirement accounts and enjoy a financially secure retirement.

Rebecca Rothstein works with high-net-worth individuals, families, and institutions, helping them advance their wealth management goals. She began her career as a financial advisor in 1987 at Bear Stearns. She spent 10 years with Deutsche Bank Alex Brown and 13 years with Morgan Stanley Private Wealth Management (formerly Smith Barney) before joining Merrill Lynch. As a Managing Director at Merrill Private Wealth Management, Rebecca focuses on wealth management, tax minimization, and estate planning strategies for affluent clients. She also works with corporate officers, devising liquidity and diversification strategies for concentrated positions. Rebecca has garnered a number of national honors as a financial advisor. Barron’s magazine named her one of the “Top 100 Financial Advisors in America” from 2007 successively through 2012. Barron’s also named Rebecca one of the “Top 100 Women Financial Advisors in America” from the inception of the list in 2006 successively through 2012, profiling her in the 2012 issue. In 2017, Rebecca was recognized by the national publication Forbes, which named her one of “America’s Top Wealth Advisors.” In 2018, 2019, 2020, and 2021 Rebecca was again recognized by Forbes, which named her the #1 of “Top Women Wealth Advisors.” Rebecca is very active in the community. She is the Chairman of the Board and Founder of Teen Cancer America (a global charity founded by Roger Daltrey and Pete Townshend). She is also a Co-Chair of the Childhood Autism Board at UCLA, which helps children who have been diagnosed with autism, developmental disabilities, and behavior disorders, and she is a board member of the UCLA Health System. In her free time, Rebecca enjoys cooking, sailing, and participating in a number of charitable efforts. She has four sons and splits her time between Incline Village, Nevada and Beverly Hills, California with her husband Ron.

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The Basics of Asset Allocation

Rebecca Rothstein — Sat, 15 Apr 2023 10:30:00 +0000

Clients often ask how their money should be invested. Should the money be invested in stocks, bonds, real estate? All the above? Well, we’ve all heard the expression, “Don’t put all your eggs in one basket.” It is not surprising that this applies to your financial investments as well. Your assets need to be allocated and how they should be allocated is the subject of this article.

Asset Allocation is a well-known and understood concept in the world of investing. It is widely used to help determine how your money should be divided across different asset classes which include cash, stocks, bonds, insurance, and real estate. Your short, intermediate, and long-term investment goals should have an influence on these decisions. Are you investing for your retirement, saving for a down payment on a house, investing for your children’s college tuition or building wealth for the long term? One of the most important discussions you should have with your financial advisor is to help them to understand your investment goals. Always remember, this is your money, not the advisors. Once this is understood these goals will influence and determine your asset allocation decisions.

Assessing your risk tolerance is a very important part of determining in which areas you should invest. How much risk are you willing to take on in your investment portfolio? Higher risk investments may offer higher potential returns, but they also come with a greater risk of loss and volatility. This discussion must include, but not be limited by, helping you determine your level of risk tolerance.

Consider your time horizon. The length of time you have to invest should influence these decisions. If you have a longer time horizon (let’s, say you’re in your 30s), you may be able to take on more risk in your portfolio. However, as you hit your 50s and 60s you may want less risk. Some of the most important considerations are your age and where you are in your life cycle.

Diversification of investments can help to reduce risk and volatility. In many cases, it can help improve adjusted returns by investing in bonds, stocks, insurance, and real estate. Diversification is a well-known technique that should be used to reduce the overall risk of your portfolio and can help smooth out longer-term returns by reducing volatility.

Each asset class has its own risk and return characteristics. Once you have formulated a general strategy, then it’s appropriate to determine the percentages of stocks/bonds/real estate, cash and other assets that you may own or want to own such as jewelry and art. The right mix will be arrived at by having this conversation with your advisor.

Over the last year as interest rates have risen at the fastest pace in decades, even cash and short-term cash management tools like interest-bearing deposit accounts, money market funds, U.S. Treasury Bills and CDs have come back into favor as an asset class to deliver extremely compelling returns versus traditional checking and savings accounts. If managed correctly this could add an additional 4-5% in return on idle assets that have been yielding zero or near zero for years.

Once you have assessed your investment goals, risk tolerance, and time horizon, you can determine your target asset allocation. A sample asset allocation could be something like 40% equities, 40% bonds and 20% real estate. This is meant as an example only and not something that necessarily applies to you. Decisions related to your specific percentages is what you and your advisor should determine. Your finances can and should be reviewed regularly to make certain you are aware of external forces that may suggest a shift in the investments, as well as to make sure that the investment plan is working towards accomplishing your stated goals. These goals are always subject to change, which is one of the reasons for ongoing, frank discussions between you and your advisor. Also, it’s important to monitor your portfolio regularly and be prepared to adjust as needed because over time your portfolio may drift. For example, as you age your allocations can easily change from higher risk to a more conservative approach so rebalancing your portfolio is very important.

In many cases, a great deal of your funds are invested outside of tax-deferred accounts such as IRAs (Individual Retirement Accounts) and pensions. Therefore, in these types of investment accounts, there will be times that you are tempted to sell because the investment landscape frequently changes due to external forces such as higher interest rates, inflation, and recently, a pandemic. These types of market conditions can be nerve-racking and cause you to want to sell but you must carefully consider this action because doing so will most likely cause a tax event. An advisor should always make certain that you are aware of how you will be taxed and how this will impact your outcome.

Monitor your portfolio performance. Regularly monitoring your portfolio performance can help you make adjustments as needed. Be a partner with your advisor. Be clear about what you want the outcome to be and ask questions. An experienced advisor will answer your questions and then be able to recommend a plan that will achieve your goals.

And finally, stay informed. The investment landscape is always changing, so it’s important to keep up with market trends and economic conditions that may impact your portfolio. One of the ways to do this is by watching financial news programs, reading financial publications, and setting up bi-annual meetings with your advisor to review your portfolio.

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The Role of Insurance in Wealth Management

Rebecca Rothstein — Fri, 17 Mar 2023 13:00:00 +0000

Most people spend their whole lives accumulating assets and building wealth with the intention of providing their family financial security. With this wealth transfer in mind, it is important to know how to use trust services and life insurance. For one thing, without insurance the IRS can potentially become an unwanted beneficiary of your estate when you die. So, let’s take a look at how this can be minimized and, in some cases, avoided.

When a spouse passes away, estate taxes can be due within nine months. In some cases, there are also costs that are due earlier. To meet these tax obligations, some families will borrow against assets or liquidate those assets, but it doesn’t have to be that way.

One popular way of addressing your wealth transfer goals is by using irrevocable trusts funded with life insurance. There are two basic types of trusts revocable and irrevocable. For the purposes of wealth transfer it is important to focus on irrevocable trusts (also known as gift trusts), as assets held in these trusts are not included in your taxable estate for estate tax purposes. With an Irrevocable Trust the trustee controls how assets are managed, has legal control over the assets determining how they are distributed and used, has a fiduciary responsibility to act in the best interest of the beneficiaries, and the terms can’t be altered without legal proceedings. The key point being that the assets in the irrevocable trust are held outside of your estate. This is not a complete list and you should discuss the differences with your estate attorney to be certain that the trust they draft for you aligns with your specific goals.

Utilizing insurance strategies can help to manage risk and provide liquidity for you to pay estate taxes or other expenses. If the insurance has been structured properly it creates a financial safety net and the policy’s death benefit will be excluded from the insured’s taxable estate for transfer tax purposes. Additionally, because life insurance proceeds are free from any income tax, effectively your beneficiaries will receive the money tax free.

There are two basic types of life insurance options. Term life insurance lasts for a specific pre-determined period of time, while permanent life insurance lasts your entire lifetime as long as the premiums are paid. Term life is an affordable solution for temporary short-term needs like paying off a mortgage and it can provide income replacement during peak earning years or while raising a family but it has no residual value at the end of the term. Permanent life provides lifelong death benefit protection, protects your family by providing financial security upon your death, can fund final expense at death and builds cash value that accrues over your lifetime. This can provide a way for people to save for future expenses such as retirement or college tuition.

Benefits from a life insurance policy can help cover expenses such as mortgage payments, paying off debt like car loans, living expenses and credit cards, and funding future education costs for children. It’s important to name beneficiaries because by doing so you will alleviate the burden of your death on loved ones and allow them to grieve without having to worry about financial matters. Furthermore, life insurance can be used to make a substantial charitable gift by naming a charity as the beneficiary of a life insurance policy.

In addition to insurance there are other important elements of estate planning to become familiar with such as The Federal Estate Tax Exemption. This is a specified amount that is exempted from estate tax and is reduced dollar for dollar. For example, in calendar year 2023, the federal exemption amount is $12,920,000 per person or $25,840,000 per married couple. That means that if your estate is valued at $50 million, the first $25,840,000 (for a married couple) is not subject to estate tax but the balance of approximately $24,160,000 will be subject to estate tax. This is where insurance becomes very valuable as the insurance will pay into the estate to pay some of the estate taxes due and then the heirs will not be forced to sell assets to pay the estate taxes.

Additionally, everyone gets the opportunity to make an annual gift to anyone they want to and the amount can vary from year to year. In 2023 that annual gift amount is $17,000. The annual gift is not counted against your lifetime exemption.

From a business standpoint insurance will protect your business from the unexpected. If you own a business, you can take out life insurance policies to protect it. You can set up a buy/sell succession strategy, create a business loan collateralization plan and have key person protection. For example, in case of the death of a key member of the team the death benefit can be used to buy out the deceased owner’s share of the business, ensure that the business continues normal operation of the company providing financial security for your family.

Many of us will need long-term care when we get older. To cover long-term care costs, some individuals buy life insurance policies with long-term care riders. These can provide financial assistance for care in the event of a chronic illness or disability thus preserving the value of an estate. This long-term care insurance either as a rider or as its own policy has become very popular since more people are living longer.

Finally, not only will you have peace of mind knowing your family will be taken care of but owning a life insurance policy will also give your family members peace of mind knowing they will be taken care of in the event of your death. This can be especially important for individuals with dependence on those who are the primary breadwinner in their families.

As you can see, it’s very important to plan ahead and it’s never too early to start these discussions. By including insurance as part of your overall estate plan, you can ensure that your assets are used as you intend so your beneficiaries are provided for in the way you choose, which can help maintain the value of your estate.

The role of your financial advisor is to work with you and other professionals to help you make good choices in choosing the proper insurance, identifying products and solutions that help you pursue your investment goals, and give you access to trust services. And lastly, remember to seek a qualified estate planning attorney and a tax professional to join your team to develop your comprehensive wealth transfer planning
strategy.

Rebecca Rothstein works with high-net-worth individuals, families, and institutions, helping them advance their wealth management goals. She began her career as a financial advisor in 1987 at Bear Stearns. She spent 10 years with Deutsche Bank Alex Brown and 13 years with Morgan Stanley Private Wealth Management (formerly Smith Barney) before joining Merrill Lynch. As a Managing Director at Merrill Private Wealth Management, Rebecca focuses on wealth management, tax minimization, and estate planning strategies for affluent clients. She also works with corporate officers, devising liquidity and diversification strategies for concentrated positions. Rebecca has garnered a number of national honors as a financial advisor. Barron’s magazine named her one of the “Top 100 Financial Advisors in America” from 2007 successively through 2012. Barron’s also named Rebecca one of the “Top 100 Women Financial Advisors in America” from the inception of the list in 2006 successively through 2012, profiling her in the 2012 issue. In 2017, Rebecca was recognized by the national publication Forbes, which named her one of “America’s Top Wealth Advisors.” In 2018, 2019, 2020, and 2021 Rebecca was again recognized by Forbes, which named her the #1 of “Top Women Wealth Advisors.” Rebecca is very active in the community. She is the Chairman of the Board and Founder of Teen Cancer America (a global charity founded by Roger Daltrey and Pete Townshend). She is also a Co-Chair of the Childhood Autism Board at UCLA, which helps children who have been diagnosed with autism, developmental disabilities, and behavior disorders, and she is a board member of the UCLA Health System. In her free time, Rebecca enjoys cooking, sailing, and participating in a number of charitable efforts. She has four sons and splits her time between Incline Village, Nevada and Beverly Hills, California with her husband Ron.

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How to Choose a Financial Advisor

Rebecca Rothstein — Fri, 17 Feb 2023 09:00:00 +0000

When choosing a financial advisor, a number of important factors come into play. I’ve summarized some of the most important ones below:

Experience: Look for someone who has been in the financial industry for several years and, preferably, has a “team” of specialists. The reason is that often the team members will have more expertise in a variety of topics whereas a sole advisor might not have as much knowledge as one of their team members. Another good idea is to choose someone who has seen different types of market conditions and has a track record of helping clients achieve their financial goals given the fluctuations of the markets. This will give you confidence in their ability to provide guidance and support as you work towards your financial goals. Experience matters a lot in this business!

Qualifications: The financial planning industry has a number of professional licenses and certifications that advisors must earn to demonstrate their knowledge and skills. These include, but are not limited to, a Series 7 license and a Certified Financial Planner (CFP) certification. It’s important to make sure the advisor you choose has the necessary licenses and qualifications to provide professional quality advice.

Fees: Make sure that you understand how a financial advisor charges for their services, including any upfront or ongoing fees. Some advisors charge an hourly rate, while others charge a percentage of the assets they manage. Some charge commissions. Choose an advisor who can charge a fee structure that you are comfortable with and is best suited to your financial goals. Generally, working on a fee basis aligns the advisor with their client’s interests so be certain to ask how you will be paying for their services.

Services offered: When considering a financial advisor, it’s important to determine what services they offer and whether they are compatible with your needs. Have the advisors delineate exactly what you can count on them for, some of which include generational planning, buying and selling of stocks, lending, asset allocation and retirement planning, just to name a few. Make sure to choose an advisor whose services meet your specific needs and goals. Some advisors may offer a comprehensive financial planning package that includes everything from budgeting and debt management to investment advice and retirement planning. Others may offer à la carte services, allowing you to choose the specific services you need. Consider your needs and goals and choose an advisor whose services meet your expectations.

Investment philosophy: Your advisor should understand your investment philosophy and approach to risk management to ensure you are both on the same page. Investors are usually classified into three main categories based on how much risk they can tolerate. Would you prefer to be aggressive, moderate, or conservative with your money? Knowing your risk tolerance level helps advisors plan your entire portfolio and will drive how they invest for you. Your investment philosophy should be based on your personal financial situation so it’s essential to be clear about what you are expecting from your advisor. Don’t expect them to guess. This is an important relationship and all these things should be discussed thoroughly. This will require you to be forthcoming about your own expectations and goals. And, keep in mind that as your relationship with the advisor continues, these things will change over time. A lot of this will depend on your age and the ages of your family members. An advisor who understands what you want will be better equipped to help you make informed investment decisions that will satisfy your long-term financial goals.

Communication style: The communication style of a financial advisor is also an important factor to consider. Choose an advisor that you feel comfortable working with and who has a communication style that you like. You will need to be clear about your expectations. Some people want to be in contact frequently, others quarterly, some less often. Consider your own communication preferences and choose an advisor whose style works best with your preferences. Good communication builds trust and ensures that your advisor is able to provide the support and guidance you need. Always take the time to review the monthly statements that are provided by the firms. Look for an advisor who is responsive and proactive and who is willing to take the time to fully understand your needs and concerns. Strong communication is essential for a successful advisor-client relationship.

Client base: It can be helpful to choose a financial advisor who serves a client base similar to your own circumstances, as they may be better able to understand and address your specific needs and concerns. They will be more familiar with the unique financial challenges and opportunities you may face and will be better able to provide tailored advice and support. Similarly, if you are approaching retirement, you may want to look for an advisor who has experience working with clients in your age group and has a strong understanding of the financial considerations that come with retirement and generational planning.

Conflict of interest: It’s important to make sure the financial advisor you choose does not have any conflicts of interest that could influence the advice they give you. This includes receiving commissions for recommending certain products or services and receiving commissions for buying and selling stocks. As mentioned above, working on a fee basis aligns the advisor with their client’s interests. So, choose an advisor who is transparent about their fee structure and any potential conflicts of interest.

References: Asking for references from current clients can be a helpful way to get a better understanding of a financial advisor’s work style and effectiveness. These references can provide valuable insight into an advisor’s communication style, knowledge and expertise, and overall approach to working with clients. They can also help you get a sense of the level of support and service you can expect from an advisor and their team.

Compatibility: Trust your instincts when choosing a financial advisor. Choose someone you feel comfortable working with and who you believe will have your best interests in mind. Consider their communication style, personality, and overall approach to financial planning. It’s important to find an advisor who you feel comfortable discussing your financial situation with and one who you believe will provide sound and unbiased advice.

In summary, there are a number of factors to consider when choosing a financial advisor. Look for an advisor who has experience, qualifications, and a track record of helping clients achieve their financial goals. Understand how they charge for their services and make sure their fee structure is compatible with your needs. Trust your instincts and choose an advisor that you feel comfortable working with and who you believe will have your best interests in mind.

Rebecca Rothstein works with high-net-worth individuals, families, and institutions, helping them advance their wealth management goals. She began her career as a financial advisor in 1987 at Bear Stearns. She spent 10 years with Deutsche Bank Alex Brown and 13 years with Morgan Stanley Private Wealth Management (formerly Smith Barney) before joining Merrill Lynch. As a Managing Director at Merrill Private Wealth Management, Rebecca focuses on wealth management, tax minimization, and estate planning strategies for affluent clients. She also works with corporate officers, devising liquidity and diversification strategies for concentrated positions. Rebecca has garnered a number of national honors as a financial advisor. Barron’s magazine named her one of the “Top 100 Financial Advisors in America” from 2007 successively through 2012. Barron’s also named Rebecca one of the “Top 100 Women Financial Advisors in America” from the inception of the list in 2006 successively through 2012, profiling her in the 2012 issue. In 2017, Rebecca was recognized by the national publication Forbes, which named her one of “America’s Top Wealth Advisors.” In 2018, 2019, 2020, and 2021 Rebecca was again recognized by Forbes, which named her the #1 of “Top Women Wealth Advisors.” Rebecca is very active in the community. She is the Chairman of the Board and Founder of Teen Cancer America (a global charity founded by Roger Daltrey and Pete Townshend). She is also a co-Chair of the Childhood Autism Board at UCLA, which helps children who have been diagnosed with autism, developmental disabilities, and behavior disorders, and she is a board member of the UCLA Health System. In her free time, Rebecca enjoys cooking, sailing, and participating in a number of charitable efforts. She has four sons and splits her time between Incline Village, Nevada and Beverly Hills, California, with her husband Ron.

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New Business is Booming in Beverly Hills

Bianca Heyward — Thu, 01 Apr 2021 19:14:00 +0000

After a year marked by closures, uncertainty, restrictions and dramatic losses in revenue, the businesses climate is looking up. As evidenced by the 20 new restaurants, bakeries, coffee shops and retailers that are set to open or already have, Beverly Hills remains an attractive city for business owners. The influx comes at an opportune time, as the county readies to move into the less restrictive orange tier on April 5, as part of the State’s Blueprint for a Safer Economy. Starting Monday, grocery and indoor retail stores will jump from 50 percent capacity to 75, and restaurants, movie theaters and places of worship will also be allowed to increase their indoor capacity from 25 to 50 percent or 200 people, whichever is less. Under the orange tier, bars that don’t serve food are finally able to open outdoors with tables spaced eight feet apart, with a maximum of six people from three different households at each table, no live entertainment and hours of operation from 11:30 a.m. until 10 p.m. Breweries and wineries without meal service may remain open outdoors and reopen indoors with a maximum occupancy of 25 percent or 100 people, whichever is less.

“Businesses generally succeed in Beverly Hills,” Todd Johnson, President and CEO of the Beverly Hills Chamber of Commerce told the Courier. “There’s some that don’t for different reasons, but, for the most part, it’s the safest city in the country. Regardless of what’s taken place, we’re still extremely safe, extremely friendly and walkable.”

Each year, the Chamber, in partnership with the city, travels to New York City in the fall and San Francisco in the spring to scout new businesses to bring into Beverly Hills. The trips are made by Todd Johnson, who is accompanied by the Mayor, Vice Mayor, and the City Manager.

According to Johnson, the Japanese sportswear brand Onitsuka Tiger, which opened in February at 474 N. Rodeo Dr., came as a result of the Chamber’s trip to New York in the Fall of 2019. The Rodeo Drive location is Onitsuka Tiger’s third brick-and-mortar store and its second flagship in North America. “We were pretty intricate in helping them get through the process of opening,” Johnson told the Courier.

To celebrate the Beverly Hills opening, the 2400 square foot Rodeo Drive location will carry exclusive limited-edition items including sneakers with “Beverly Hills” embossed on the side. The Rodeo Dr. store is also the first to sell the Onitsuka Tiger brand’s children’s collection.

“When prospective businesses reach out to us, we put them in contact with real estate guys that can help, landlords and that kind of thing to help them find exactly what they’re looking for,” Johnson said. “We’re in talks with probably a half a dozen other businesses, including a lot of restaurants that are in New York who are interested in coming out here.”

The city’s efforts to help restaurants expand their outdoor dining capabilities manifested with the OpenBH initiative, which allows businesses to temporarily expand to adjacent areas such as parking lots and the public right of way. However, even with OpenBH, new restaurants looking to obtain an Open-Air Dining Permit must still pay hefty fees. “Any restaurant is able to obtain an OpenBH permit free of charge, but permanent outdoor dining continues to be subject to the City’s normal application process and associated fees (with the exception of the lease fee),” Ryan Gohlich, Director of Community Development, told the Courier. “The City has always charged a fee for these types of applications, and the fees are based on periodic fee studies that are conducted to ensure that the City’s fees are in-line with the cost of providing services and the staff hours associated with application processing.”

On South Beverly Drive, six new establishments are opening, including the upscale bakery Sweet Lady Jane (214 S. Beverly Dr.) and a new 100 percent grass-fed Wagyu steakhouse called Mat? (239 S. Beverly Drive), founded by the group behind Sugarfish, where Panera used to be.

“There are some vacancies on South Beverly, but it’s also a very walkable neighborhood and walkable,” Johnson told the Courier. “It’s also just a little more affordable than up in the triangle.”

Total Body Nutrition, a sports nutrition shop, recently opened at 193 S. Beverly Dr., and San Francisco-based coffee chain, Philz Coffee (233 S. Beverly Dr.) is slated to debut soon. SBE’s affordable to-go sushi spot, Krispy Rice, and Ben and Jerry’s ice cream shop are also opening soon on the 200 block of South Beverly.

After a slew of slow months and incalculable losses, existing retailers on South Beverly are excited to have new neighbors and hope for more pedestrian traffic.

“Things are slowly picking back up,” Adriana Caras, owner of LeSwim (238 S. Beverly Dr.) swimwear boutique told the Courier. “And now, suddenly, it’s like a surge. I have been busy all day. So now with everything opening, I’m kind of on the fence if we should extend our lease past April and stay longer.”

“I’m honestly very excited about having all these restaurants open up,” Jenny, the manager at Peruvian retailer Cottoniere (245 S. Beverly Dr.) told the Courier. “It’s been super dead here, we almost had to close. We’re hoping that when the new restaurants open, more people will come through.”

On Canon Drive, Nusr-Et–a new steakhouse helmed by Turkish chef Nusret Gökçe, known globally as the “Salt Bae,”–is expected to open on April 30 next to Spago. Spanish restaurant Tatel (453 N. Canon Dr.) is also opening at the former Nic’s Beverly Hill location, but has yet to announce a date. Jennifer Fisher Jewelry, a celebrity cult-favorite jewelry brand, recently opened its door at 450 N. Canon Dr. Christian Louboutin, known for luxe, red-soled shoes, also opened a Los Angeles flagship at 477 N. Rodeo Dr. in March.

With the advent of the parklets and more outdoor dining, the business triangle has been vibrant with new energy and crowded streets. As a result, some retailers have even started staying open later, as more people are out shopping and dining. “We’ve always been wanting a little more energy and nightlife, because Beverly Hills kind of rolls its street up at 6 p.m.,” Johnson told the Courier.

Coming soon to North Beverly Drive is the popular salad chain, Sweetgreen (245 N. Beverly Dr.) as well as Erewhon Market (399 N. Beverly Dr.), the upscale health-food store known for its organic, locally sourced and sustainable groceries.

Taking over the former Roxbury Café location, Impasta (459 N. Roxbury Dr.) is offering fan-favorite pasta dishes with zero and low-carb noodles options. “I wanted to open Impasta in Beverly Hills not only because there is a certain type of prestige and notoriety associated with it,” Harrison Litvack, owner of Impasta, told the Courier. “But from a business standpoint, it’s central geography in the greater Los Angeles area allows people to access our yummy and nutritious food more easily.” While the physical restaurant space hasn’t opened yet for patrons looking to dine-in, Impasta began taking to-go orders in February.

At 434 N. Camden Dr., Beverly Bar restaurant is also gearing up to open, with a menu focused on American-style food. J Watson Fine Art will be opening at 9410 Dayton Way, enticing art collectors and enthusiasts with the gallery’s collection of limited-edition paintings by artists such as Pino, Vidan, G. Harvey, Morgan Weistling, Antoine Blanchard, Peter Max, M.& I. Garmash and more.

In perhaps the sweetest news of all, John Kelly Chocolates chocolatier boutique opened at 9523 S. Santa Monica Blvd. Their specialties include truffle fudge and walnut-caramel clusters.

In addition to the new storefronts, Johnson pointed to other projects underway in the city. “You’ve got the One Beverly Hills project coming, the Chanel store remodeling, the LVMH hotel… and Saks has big plans for that little section down on Wilshire where Barney’s used to be. I think we have so much to look forward to over the next year.”

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BHPD Confiscates Nearly $3 Million in EDD Fraud Arrests

Bianca Heyward — Thu, 17 Sep 2020 21:50:00 +0000

Over the last two weeks, the Beverly Hills Police Department (BHPD) has arrested 44 individuals within the City in connection with Employment Development Department (EDD) fraud and identity theft. The arrests yielded a total of 129 fraudulent EDD debit cards with a value of over $2.5 million, more than $289,000 in U.S. currency and seven handguns found on the suspects’ persons or in their vehicles.

The Courier first broke the story that EDD fraud is impacting the City in its Sept. 11 issue.

Subsequently, BHPD released a statement on Sept. 16 providing additional details about the investigations. “Earlier this month, the Beverly Hills Police Department learned criminals were fraudulently obtaining EDD benefits loaded onto EDD debit cards using stolen identities. The monetary value placed on the cards by EDD can be as high as $20,000. Cardholders are able to withdraw up to $1,000 per day, per card. Suspects have traveled primarily from out of state to obtain these fraudulent EDD cards in California. The suspects will most often have numerous EDD cards in their possession with other people’s identities, along with large amounts of cash. They will then use the cards to lease short-term rentals, rent luxury vehicles, dine at restaurants and purchase high-end merchandise,” said the statement.

In California, the EDD allows individuals eligible for Unemployment Insurance, Disability Insurance and Paid Family Leave to receive payments in the form of a Bank of America debit card. The card can be used to make purchases and withdraw cash. The EDD also offers Digital Cards–a prepaid Visa debit card–similar to the physical card option. Both forms of EDD cards are being targeted by individuals in Beverly Hills and throughout the county and state.

According to the U.S. Department of Labor, the EDD has paid out more than $81.8 billion in unemployment benefits since March. A Sep. 10 report released by the Department shows a startling sudden influx in initial unemployment claims from recent weeks.

For the week ending Aug. 22, the total number of people claiming benefits in all programs was 29,605,064, an increase of 380,379 from the previous week. For the week ending August 29, the state of California saw the largest increase in initial claims nationwide, with the addition of nearly 23,000.

In mid-August, Los Angeles City Attorney Mike Feuer issued a warning, alerting the public of thieves using stolen Social Security numbers to apply for and receive unemployment relief–in the form of EDD cards–in their unknowing victims’ names. “All this is adding extra strain to our state’s over-burdened unemployment network at a time when record numbers of Californians desperately need benefits,” Feuer noted.

On Sep. 14, BHPD officers arrested a Kentucky man after confiscating two handguns and over $30,000 in cash found on his person. The arrest, which the BHPD confirmed also involves EDD fraud, took place outside of Cartier, a boutique specializing in fine jewelry and luxury timepieces. The Courier obtained an exclusive video from the scene that captured the suspect repeating, “I’m not from here,” while officers seized cash and other contraband.

On the same day, the BHPD released a community alert describing the trend as: “Suspects posing as customers may possess fraudulent EDD cards that are not in their name; High dollar amounts are preloaded on the cards; Purchase of high dollar items with the fraudulent cards or large amounts of cash.”

Working with businesses to mitigate further escalation, the BHPD urged retailers to require all customers to present a valid form of government ID, ensuring the name on the credit card matches. Businesses were also advised to limit one EDD card per customer as payment and require a physical card as opposed to a digital wallet.

The Courier has learned that the parent corporations of prominent retailers in the City are urging an immediate, indefinite hold on accepting EDD cards as a form of payment.

On Sep. 16, luxury retailers such as Van Cleef & Arpels, Cartier, Vacheron Constantin and Piaget began informing customers prior to entering that EDD cards would no longer be accepted. Most businesses in the Triangle have since followed suit–including restaurants.

In an effort to strengthen anti-fraud operations, the BHPD is working with local, state and Federal law enforcement agencies, including the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, California Highway Patrol, the United States Secret Service, U.S Postal Inspector’s Office, U.S. Department of Labor and the Internal Revenue Service.

“There are millions of tax dollars being spent fraudulently as a result of this trend,” Police Chief Dominick Rivetti said in the Sep. 16 release. “The Beverly Hills Police Department is also working closely with our business community to keep them well informed of this trend in an effort to mitigate these crimes within our City.”

The BHPD is encouraging the public to call the Department at 310-285-2125 or submit an anonymous tip by texting BEVHILLSPD followed by the tip information to 888777.

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City Council Approves $418.8 Million Budget for Beverly Hills

Laura Coleman — Fri, 03 Jul 2020 22:54:00 +0000

With one day to spare before the end of the fiscal year, on June 29 the City Council voted 4-1 to approve a $418.8 million operating expenditure budget for fiscal year 2020/21. Total revenue for all funds is projected to be $452.8 million (including interfund transfers) for the fiscal year beginning July 1.

Councilman John Mirisch, the single “no” vote, said he did not support the budget given that it failed to reimagine operations in a more efficient way.

The new operating expenditure budget represents a decrease of $30.3 million from the 2019/20 operating expenditures of $449.1 million (including interfund transfers). The operating budget for the fiscal year 2019/20 included total revenues of $515.2 million.

While the current operating budget, which draws more revenue than the total amount budgeted to expend, may give the appearance of relative fiscal prosperity, the City’s Capital Improvement Budget, which will be considered for adoption in July, will use a great portion of the apparent surplus. In addition, the City’s General Fund provides a more accurate glimpse into the City’s need to draw its purse strings tighter.

The City’s General Fund, over which the Council has discretion, is one of several City funds, each of which must be used for specific purposes. General Fund revenues, which are expected to decrease by 17.1 percent (not including interfund transfers) over the adopted FY 2019/20 budget according to Budget and Revenue Officer Don Harrison, have been particularly impacted by the COVID- 19 pandemic. Transient Occupancy Tax (TOT) is slated to decrease by $20.1 million; sales tax is forecast to drop $13.7 million; and business tax is projected to decrease $12.3 million.

“We are in uncharted territory. This is something that we haven’t experienced,” said Mayor Lester Friedman.

This year’s proposed General Fund expenditures of $221.1 million (excluding interfund transfers) represent a $25.1 million decrease from the 2019/20 budget. In fact, according to Director of Finance Jeff Muir, the City had originally expected to increase this year’s General Fund fiscal budget before the pandemic hit.

Staff worked with the COVID-19 Ad Hoc committee to develop a strategy of using multiple avenues for reducing expenditures. In addition to transferring $6 million from the infrastructure Capital Improvement Projects (CIP) fund to the General Fund, such measures include an eight percent budget reduction in departments’ supplies and services accounts, implementing a hiring freeze for non-critical positions, and suspending charges and replacements of various vehicles and equipment.

Even with the anticipated $19.9 million budget balancing measures, the Council still needed to decide during its June 29 meeting how to alleviate a forecasted $4.2 million General Fund budget deficit.

While the Council stopped short of taking specific measures to address the budget deficit, which the Council learned just before the vote would increase millions as a result of higher annual insurance renewals, members were united in passing a balanced budget. The Council also agreed to allocate an additional $100,000 to its Nurse Practitioner Program as well as $418,000 to enhance its stockpile of extra emergency food and water supplies.

“At the end of the day, I think the budget that we approve has to be balanced,” emphasized Councilman Julian Gold, the first member of the City Council to comment on the proposed budget. He emphasized that in moving forward with budget talks in the coming months, Council and staff should consider how to best replace services that had been taken from the budget. “I do think that we have to be mindful of the fact that we are moving money around to balance our budget.”

The budget passed by Council included all salary and benefit increases approved through MOUs since the previous budget adoption as well as $5 million to pay down the City’s unfunded PERS liability. To alleviate the forecasted $4.2 million General Fund budget deficit, the Council agreed to increase the amount required to be reduced from employee costs by $2.1 million and allow $2.1 million to be funded through its Budget Stabilization Reserves.

Harrison projected the City would realize a $2.4 million net savings this year if 25 employees avail themselves of an early retirement offer. There also may be the opportunity to realize more savings by carving further into funding for Capital Improvement Projects.

“Given the COVID-19 pandemic and the sudden and unforeseen economic impacts, along with the disruption of normal City operations resulting from the recent protests, consideration of the Capital Improvement Budget has been separated from the operating budget and will be brought to the City Council for consideration and adoption in July,” stated the June 29 staff report, which was authored by Harrison and Muir.

In anticipation of approving the budget, the Council also unanimously voted on June 29 to approve agreements with three business partners that help the City thrive. The agreements included: $148,000 to the Rodeo Drive Committee for marketing purposes (up $18,000 from the previous year); $304,000 to the Beverly Hills Chamber of Commerce for business attraction and retention (down $43,000 from the previous year); and $2.7 million to the Beverly Hills Conference and Visitors Bureau (CVB) to promote the City (down $1.9 million from the previous year).

CVB CEO Julie Wagner told the Courier that after learning the City was projecting a 40 percent decrease in TOT revenue, the CVB’s board and staff “hunkered down” to proactively shave 40 percent from its budget.

“Everything we’ve done we’ve done voluntarily,” Wagner told the Courier.

In addition to furloughing seven employees on April 2, the CVB cancelled most of its international endeavors and asked its vendors to pause. In addition, the CVB cancelled all sales missions and trade shows, while still working on avenues to help keep Beverly Hills forefront in people’s minds.

Wagner said the CVB was preparing to launch a new campaign later this summer entitled “Something to Feel Good About,” which centers around safety, self-care, shopping local, and simple pleasures.

“I just think it’s going to be a hard six to 12 months,” Chamber of Commerce CEO Todd Johnson told the Courier. “We always look forward to collaborating and working with the City on different projects that they deem necessary. We will deliver our continued excellence while working through this incredibly challenging and yet opportune time that we’re all facing.”

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