Single Point of View

Single Point of View is our way to occasionally share planning ideas relating to personal finance. Our goal is to pass along concepts that you may not be exposed to on a daily basis.

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Markets are not always efficient, nor right

Of the 46 previous declines of -10% or more in the stock market (S&P500), a little more than a third (19) became bear markets, defined as a drop of at least -20%.  Most of the -10% pull-backs – as sharp and painful as they are - turned out to be just false signals and momentary detours as the market resumed its upward march within months.  The Market at times becomes divorced from fundamentals, and over-obsessed with ‘headline’ risk.  Over-interpreting the ‘signal’ from these pullbacks is almost always a losing proposition.  Discipline in the face of noise is essential to long term out-performance. I have also observed that every now and then different asset markets go through bouts of over-pessimism or over-optimism. You may hear that a certain asset class (e.g. high-yield bonds) or sector (e.g. pharma) is ‘trading on sentiment’ rather than fundamentals; or that its price reflects an implausibly negative...
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Big Planning Opportunity with Health Savings Accounts

In short: fund it and invest it, don't use it.   Potentially, the best way to use your Health Savings Account (HSA) is to maximize the funding of it, but, instead of using the funds year-by-year to cover your out-of-pocket health care expenses, invest the funds and allow them to grow for the future.  The reason this strategy makes sense is the unique tax benefits of HSA's:  tax deductible contributions, tax-free growth & tax-free distributions.  Do you know what other types of accounts have all of these long-term features? NONE! IRAs & 401ks are tax deductible in the year you make the contribution, but you are taxed when you take the money out. Roth IRAs grow tax-free and are tax-free upon distribution, however, you do not get a tax-deduction when you make the contribution. The HSA combines the tax benefits of these two types of accounts. In fact, a good retirement...
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Rene Jarquin - My Personal Story

I believe America’s economy is exceptional.  Despite the many head-winds faced in the last decade, there is no country where I would rather raise my family and pursue my passion - investing. In my first blog I thought that you should get a sense of who I am, so let me do so through a short personal statement. I was 9 years old when my family fled the communist take-over of Nicaragua.  My parents were 42 and 36, so I have first-hand experience of economic loss born of political risk - and what it means to start over.  I suppose like most immigrants to the US, I tend to think there is no better place to invest than here.  I am aware of my bias, and I am not blind to our flaws – perhaps none more glaring than the conditions that led to the sub-prime crisis a decade ago.  Even...
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Rene Jarquin: SPP Welcomes New Partner

Rene Headshot 4Each decision we make at Single Point starts with the question: “Will this improve the quality of advice, service, and overall experience for our clients?” Never have I been more certain of the answer to that question than when making the decision to bring on our new partner, Rene Jarquin. I am very excited to share the news that Single Point Partners is welcoming Rene Jarquin to the firm as Chief Investment Officer.  Rene is a deep investment thinker who will elevate our cross-asset allocation and research capabilities.  Rene is someone I have worked closely with, and known personally, for over 6 years.   As we explored the possibility of Rene becoming part of the Single Point family, we started with a shared vision of financial advice being a partnership between our clients and us.  We strongly believe that a team approach built with members with unique areas of expertise and...
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Track Your Home Improvements Now to Save on Taxes Later

We all know that when you sell a stock you pay a tax on the profit (the difference between what you paid for it, and, what you sold it for).  This is referred to as a capital gain.  The same principal holds true for the sale of a property, be it an investment property or your personal residence. One caveat to this is if you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse (*see the note at the bottom for more detail). Even with these exclusions, if you own your property for a long enough period of time, there is a good chance that some tax could be owed upon sale.  The below guidelines...
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