Thoughts and musings from my desk to you.

Oddity or Anomaly? (Segment Ranked #20 in TX)

Once again, Segment ranks among Barron’s Top 1200 Advisors in America, landing in the “Top 20 in Texas” for the second year in a row.

For many reasons, Segment is a bit of an anomaly in the advice business. We just do things a little differently. One of those things is the minimal amount of bonds in our client portfolios. Some explanation for that small allocation is how unattractive bonds were for years, with yields approaching zero. Another reason is our confidence that stocks will outperform over time. Our clients either absorb that confidence or maybe we simply attract clients with a minimal aversion to stock market uncertainty.

Regulators Need to Do More to Curb Egregious Annuities Sales Practices

“The Department of Labor is under pressure to release its new Retirement Security Rule, which would impose fiduciary obligations on more financial professionals working with retirement clients. But from my vantage point as a fiduciary advisor, regulators’ focus on individual retirement accounts overlooks more egregious activity in non-IRAs happening right under their noses. Particularly absent from the discussion about the rule are annuities sold by the insurance industry—often with punishing fees and commissions that slide by with little scrutiny.

Challenging the Status Quo

We get puzzled looks from new clients when we explain our position on taxable fixed income (bonds) in IRAs. Traditional planning advice recommends placing your highest growth assets in an IRA to maximize the tax deferral. We usually recommend the complete opposite approach, which becomes more and more preferable the higher the income of the current or future retiree.

COVER STORY: 10 Most Influential Finance Executives to Watch

From Financial Advisor to Published Author: Gil Baumgarten’s Multi-Faceted Success

Our very own Gil Baumgarten was featured on CIO View’s May 2023 cover as an “Influential Finance Executive to Watch in 2023.” Gil shares the journey of his career, how to navigate the tax code, and his future plans for Segment Wealth Management.

The Importance of Tax Strategy

Just in time for Tax Day 2023, Gil talks tax strategy with the Houston Business Journal.

“With tax season upon us, it seems an appropriate time to discuss tax strategy with a local specialist. Investors might assume that the frontline professionals for advanced tax strategy are CPAs. However, some investors find that their CPAs work retroactively, focusing on preparing tax returns more than strategizing with their clients about optimal ways to reduce or eliminate taxes. Our highlighted executive today is not a CPA but has four decades of investing experience while navigating IRS rules and has developed a reputation as a specialist in reducing tax friction in his clients’ investment portfolios.”

Death and Taxes: Not So Certain After All

Gil published a piece in Forbes Council titled, “Death and Taxes: Not So Certain After All.”

After years of writing about the subject, long-time readers will surely realize how degrading taxes are to returns. With market liquidity at all-time highs and trading commissions now free, investors are seemingly incentivized to trade their accounts. The math is simple right? All one must do is spot a better opportunity and taxes are just a part of the game, right? Yes, but how big of a part?

Advisory Practice Evolution

Gil penned a piece describing the evolution of his billion-dollar advisory practice in Financial Advisor Magazine!

“Many advisors get stuck in the path of least resistance methods and never evolve to scale.”

“Over my nearly four decades as an advisor, I’ve seen quite an evolution in my practice. There was a day when I would take on new clients with $2,000 IRAs, and I would buy securities for them as their whims dictated. I figured out what they thought worked, and I aligned my recommendations to their biases. My goal was to amass assets and aligning with client predispositions seemed the path of least resistance. But I began to realize that my practice would have no common themes if I allowed it to develop this way.”