Investing/ Markets

How Organizing Your Financial Junk Drawer Brings Peace of Mind

January 19, 2025 by Hans Blake, CFA, CPA

Reading Time: 3 minutes

The holiday season is now over, and for many, we experienced moving around—visiting family, hosting guests, or maybe even moving homes. Our family recently went through a move, and if you’ve ever moved, you know how stressful it can be to have things scattered everywhere. Boxes in the kitchen, boxes in the living room, and who knows where the scissors and box cutters ended up? The frustration is real. But the moment you finally unpack and everything finds its place, a wave of relief washes over you. Order replaces chaos, and stress gives way to calm.

The same can be said for your finances.

The Financial Junk Drawer Problem

We all have that “junk drawer” in our homes—the place where miscellaneous items like batteries, old keys, and random screws accumulate. It’s often disorganized, but it’s easier to just keep adding to it than to clean it out. For many of us, our financial lives end up looking a lot like that junk drawer:

Multiple accounts spread across different banks or custodians.
Various investments in money markets, CDs, brokerage accounts, or 401(k)s.
Paperwork everywhere—some online, some in filing cabinets.

Recently, a client came to us because her financial life had become just like that junk drawer. She had retirement accounts with multiple custodians, scattered investments, and money parked in different places. The complexity of keeping track of everything was causing her unnecessary stress.

Her relief was almost immediate once we helped her consolidate everything into a single, cohesive portfolio. Not only did this make her financial life simpler, but it also allowed us to better manage her investments and understand her complete financial picture. Just like unpacking after a move, this kind of financial organization brings clarity, control, and a sense of calm.

Why Consolidation Matters

Reduced Stress: When everything is in one place, there’s no more guessing where your money is or whether you’re overlooking an account.
Better Risk Management: A consolidated portfolio allows us to see all your assets and liabilities, so we can help you manage risk more effectively.
Simplified Decision-Making: With a clear view of your finances, decisions about investments, withdrawals, or planning for goals become easier.

The Holiday Connection

This time of year is already stressful enough with the hustle and bustle of holiday preparations, gift-giving, and family gatherings. Why let your finances add to that stress?

Just as you might clean out the guest room for visiting relatives or organize the holiday decorations, now is the perfect time to tidy up your financial life. Imagine starting the new year with your finances in order, everything in its place, and the peace of mind that comes with knowing you’re on track.

Helping You Find Financial Calm

At Intelligent Investing, we’re passionate about helping our clients organize their financial “junk drawers.” Our proprietary financial software, Intelligrations®, helps streamline and integrate your finances so you can focus on what truly matters. We aim to:

Minimize fees (including taxes).
Unify families through clear financial communication.
Maximize your time by reducing the complexity of managing multiple accounts.
Leverage technology to improve investor behavior and decision-making.

If the thought of your scattered finances is weighing on you, consider this season an opportunity to bring calm to the chaos. Just like the joy of finding that box cutter exactly when you need it during a move, the joy of knowing where your money is—and that it’s working for you—can be a game-changer.

Let’s make 2025 a year where your finances are organized, your stress is minimized, and your peace of mind is maximized.

Ready to Get Organized?

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

Smishing: The New Threat to Your Hard-Earned Wealth

January 9, 2025 by Hans Blake, CFA, CPA

Reading Time: 3 minutes

At Intelligent Investing, protecting our clients’ wealth is more than just about managing portfolios—it’s about safeguarding every aspect of your financial life. In an ever-evolving digital world, scams are becoming more sophisticated and more personal. One of the latest threats is called “smishing,” and we’re here to make sure you’re prepared.

What is Smishing?

Smishing is a form of phishing scam that targets your text messages (SMS). Much like email phishing, cybercriminals use deceptive messages to lure you into clicking malicious links or revealing sensitive information. Recently, we’ve been alerted by our custodian, Charles Schwab, about an active smishing campaign targeting clients.

In these smishing attempts, clients receive fraudulent texts that claim a large disbursement has been made from their Schwab account. The text then prompts them to click on a link to cancel the transaction. The link leads to a fake website that spoofs a financial institution’s domain (i.e. if the scammer wants to scam a client of Charles Schwab—the scammer may want the client to click on a false website (e.g., “schwbba.com” or “schwabd.com”). These messages are designed to create panic, making people act before you think.

Red Flags to Watch For

Here are some common red flags to help you identify smishing attempts:

Texts from international or suspicious numbers
Notifications of large ACH transactions you didn’t initiate
Links to domains that are subtle variations of trusted websites (e.g., “schwbab.com”)
Urgent requests to reply or click immediately

How Panic Can Lead to Scams

These scams work because they trigger fear and urgency. Not long ago, one of our clients thought they were on the verge of losing a significant sum due to a suspicious call they received. Fortunately, because we have a close fiduciary relationship with our clients, they knew to call us first before acting on the message.

We immediately investigated and confirmed that it was a scam. Out of an abundance of caution, the client changed his login credentials with our custodian, Schwab. This quick action saved the client from potentially clicking on a malicious link or giving away sensitive information. In moments like these, we hope that having a trusted advisor can make all the difference.

How We Protect Our Clients

At Intelligent Investing, we stand between our clients and these types of threats. As a reminder, here’s how we help protect our clients’ wealth:

Verification Calls: We personally call to verify distribution requests that are non-recurring before they are processed.
Daily Monitoring: We receive daily alerts for any money movement in your accounts, keeping a close eye on all transactions.
Security Recommendations: We use and encourage robust security measures such as two-factor authentication and verbal passwords to add an extra layer of protection.

Why a Fiduciary Relationship Matters

Scammers exploit moments of panic and vulnerability. As we age, cognitive decline can make us more susceptible to these scams. This is why it’s crucial to establish a relationship with a fiduciary advisor long before these vulnerabilities set in.

A fiduciary advisor is legally and ethically bound to act in your best interest. We not only manage your investments but also help protect you from the unexpected threats that can jeopardize your wealth. Our proactive approach ensures that you’re not facing these dangers alone.

Final Thoughts

We’ve written a few blog posts about the emotional side of financial scams, and you can read more about How to Emotionally Heal after being Financially Scammed. You also may want to read about 11 Ways to Protect Yourself From Being Financially Scammed. Better yet, if you or a loved one does not have a trusted relationship with a fiduciary advisor, and you would like to have accountability with a firm like ours, click here to schedule a complimentary call or coffee with us. We’d love to help you and your loved ones become more protected in this scam-filled culture.

Our clients’ financial security is our top priority. By staying informed and maintaining a strong relationship with a fiduciary advisor, you can navigate the increasingly complex digital landscape with confidence. Scammers may be clever, but with Intelligent Investing by your side, you’re never facing them alone.

Schedule a short discovery call or meeting

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

Skating to Where the Puck Is Going: A Lesson in Resilience, Investing, & Mean Reversion

December 12, 2024 by Hans Blake, CFA, CPA

Reading Time: 5 minutes

The winter chill has settled in once again, and with it comes memories of last year’s ice-skating adventure—the one that left me with a humbling lesson in balance, vulnerability, and, ultimately, a torn rotator cuff. Read more here. Since then, physical therapy, an MRI, and a well-placed steroid shot have been part of my journey back to health. This winter, though the shoulder pain persists, I find myself reflecting not on my stumble, but on a different kind of ice experience: hockey. Specifically, the wisdom of The Great One, Wayne Gretzky.

Gretzky famously said, “I skate to where the puck is going to be, not where it has been.” This insight into anticipating the game’s flow offers a perfect parallel to Intelligent Investing’s approach to wealth management. Just as Gretzky knew that success lay in anticipating the puck’s path, successful investing often requires a similar foresight—positioning yourself not based on where the markets are today, but where they are likely heading.

Resilience on Ice and in Markets

My recovery from the torn rotator cuff hasn’t been linear. There were setbacks, discomfort, and the need for physical therapy. But through resilience and the guidance of professionals, progress was made. Investing is much the same. Markets will fall. Asset classes will go out of favor. But patience, discipline, and a strategic approach—skating to where the puck is going—help us navigate volatility and emerge stronger.

Just like a skilled hockey player anticipates where the puck is going, not where it has been, investing wisely involves understanding where markets may be heading based on historical trends and valuation metrics. Markets exhibit a strong tendency toward mean reversion—when an asset class moves significantly above or below its historical average, it often eventually returns to that average. For instance, periods of extreme market exuberance or pessimism rarely last forever.

High valuations may correct downward, while undervalued assets often rebound. Disciplined rebalancing helps capitalize on this principle by strategically reallocating investments when certain assets deviate too far from their mean. This disciplined approach avoids chasing inflated markets and positions investors to benefit when temporarily depressed assets eventually revert back toward their historical norms.

Intelligent Investing’s Game Plan

At Intelligent Investing, we act as fiduciaries, committed to helping our clients make decisions that are in their best interest. Our proprietary Intelligrations® software we developed in-house integrates various financial technologies to create a clearer picture of your financial situation. We organize financial complexities, identify opportunities, and develop strategies that anticipate market movements rather than chase past performance.

Our approach combines:

Minimizing Fees – Including taxes and unnecessary costs.
Family Focus – Ensuring financial communication aligns across generations.
Maximizing Time – So you can focus on what matters most.
Leveraging Technology – To improve decision-making and behavior.

The Market’s Icy Terrain

Much like the ice rink I skated on last year, markets can be unpredictable, slippery, and occasionally rougher than anticipated. Many investors find themselves chasing recent performance, drawn to what has been successful. A prime example is Bitcoin and other cryptocurrencies. Over the past year, Bitcoin has surged, driven by a combination of factors—growing institutional acceptance, macroeconomic trends, and notable endorsements. The recent shift by figures like President Trump and Elon Musk toward favoring cryptocurrency has thrown speculation into full throttle, fueling a renewed frenzy.

While it’s tempting to jump in, history reminds us that chasing past success can lead to regret. The dot-com bubble of the early 2000s and the real estate crash of 2008 are cautionary tales of euphoria-driven investments that ultimately crumbled. I’m not suggesting that cryptocurrencies or Bitcoin are destined for the same fate, but prudence advises against investing out of a fear of missing out (FOMO). Emotional decisions driven by hype and speculation often lead to financial missteps.

The Antidote: Disciplined Rebalancing

Instead of reacting to the latest market headlines, a disciplined rebalancing approach offers a structured way to maintain investment integrity. At Intelligent Investing, we emphasize rebalancing portfolios based on each client’s risk tolerance and their Investment Policy Statement (IPS). This disciplined process ensures that portfolios stay aligned with long-term goals rather than being swayed by short-term market excitement.

When certain asset classes outperform and others lag behind, portfolios naturally drift from their target allocations. Rebalancing involves selling portions of the investments that have grown beyond their intended allocation and buying more of the assets that have temporarily declined. This approach effectively forces investors to do what many find difficult—selling high and buying low.

Rebalancing in Action

Imagine a scenario where equities have a strong year, increasing their share in a balanced portfolio. While it’s tempting to let those gains ride, disciplined rebalancing prompts us to take profits by selling some of those equities and reallocating to underperforming assets like bonds or other sectors that may be temporarily down. This method reduces the risk of becoming overexposed to a single asset class and helps maintain a portfolio that aligns with your risk profile and financial goals.

Avoiding Emotional Pitfalls

Rebalancing isn’t just a mechanical process; it’s a powerful way to manage investor behavior. When markets are soaring, it helps temper greed. When markets are falling, it can mitigate fear. Instead of chasing the latest “hot” investment, rebalancing keeps you grounded in a strategy designed to weather market volatility. It provides a framework that helps avoid emotional pitfalls, such as the fear of missing out or panic-driven decisions.

Ready to Skate Ahead?

As we step further into 2024, let’s remember that investing, like ice hockey, is a game of anticipation, discipline, and resilience. If you’re ready to skate toward where the financial puck is going, not where it’s been, we’d love to partner with you. Whether through a call or a coffee, let’s discuss how Intelligent Investing can help guide you toward financial success.

At Intelligent Investing, our disciplined approach to rebalancing, guided by our clients’ Investment Policy Statements, aims to keep portfolios aligned with individual goals and risk tolerances. Our proprietary Intelligrations® technology helps us efficiently manage and monitor portfolios, ensuring they stay balanced in a way that reflects our clients’ needs, not the latest headlines.

As we finish 2024, remember that maintaining discipline—whether on the ice or in the markets—is key to long-term success. Chasing the latest investment trend may feel exciting, but a well-balanced portfolio tailored to your goals is what truly paves the way for financial resilience and growth.

If you’d like to explore how a disciplined rebalancing strategy can help you stay on course, we’d love to connect—whether over a call or a coffee. At Intelligent Investing, we’re here to help you navigate the icy terrain of the markets with confidence and clarity.

P.S. – For more on embracing vulnerability and financial transparency, check out my previous blog post, Getting Naked. It might just change how you think about your financial journey

Schedule a short discovery call or meeting

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

20 Essential Year-End Tax Tips: Intelligent Investing’s Guide for Smart Tax Planning

November 21, 2024 by Hans Blake, CFA, CPA

Reading Time: 4 minutes

As the year draws to a close, it’s an ideal time to review your financial situation and make strategic moves to optimize your tax picture. At Intelligent Investing, we believe proactive tax planning is essential to effective wealth management. Thoughtful, year-end tax strategies can reduce your tax burden, enhance your financial flexibility, and maximize the value of your investments. By carefully managing taxes, you’re not only keeping more of what you’ve earned—you’re aligning your financial plan with your future goals.

At Intelligent Investing, we’re passionate about helping our clients navigate the complexities of tax planning with personalized advice and strategies tailored to your unique financial situation. If you’re looking to make the most of this year’s opportunities and set yourself up for success, we’re here to help.

Here are 20 essential year-end tax tips to consider:

Make Last-Minute Charitable Donations
If you itemize, consider charitable contributions to maximize your deductions. Be mindful of your deduction limits so you can make the most of your generosity.
Optimize Your Annual Gift Exclusions
The annual gift exclusion for 2024 is $18,000 per individual. Maximize tax-free transfers to family or friends as part of your long-term gifting strategy.
Evaluate Capital Gains and Losses
Review your portfolio for potential capital gains and losses. Tax-loss harvesting allows you to offset gains with losses, which can reduce your taxable income. If your net capital loss exceeds the $3,000 annual limit, you can use the remaining amount to lower your ordinary income up to this limit each year and carry forward any additional losses to future tax years. This strategy can help manage your tax bill both now and in the years ahead.
Use the Kiddie Tax Threshold
If your child has unearned income, consider the kiddie tax rules. Up to $2,600 of unearned income can be taxed at your child’s lower rate—helping you reduce the family’s overall tax burden.
Contribute to Retirement Accounts
Max out contributions to IRAs, 401(k)s, and other retirement accounts. These contributions reduce taxable income and help fund your retirement.
Consider Donating Appreciated Stock
Donating appreciated investments (held for over a year) can yield a double tax benefit: avoid capital gains tax on the growth and receive a charitable deduction for the full value. For investments held less than a year, your charitable deduction is generally limited to the cost basis (what you originally paid for the stock), not its current market value. This means you won’t be able to deduct the full appreciated value of the stock.
Confirm RMD Compliance
If you’re over 73, ensure you’ve taken your required minimum distribution (RMD) from traditional retirement accounts. Missed RMDs can incur a steep penalty. We handle this for all our clients to ensure no RMDs are missed.
Maximize Tax-Free Accounts
Check your Flexible Spending Accounts (FSAs) and dependent care accounts to ensure you’ve spent funds that won’t roll over into the new year. Make the most of those contributions.
Plan for Roth IRA Conversions
Consider a Roth IRA conversion if it aligns with your tax strategy. Converting now can create tax-free growth in future years, especially if you’re in a lower tax bracket.
Review W-2 Withholdings
If you expect a significant change in income or deductions, adjust your W-2 withholdings for the upcoming year to avoid surprises.
11. Contribute to a 529 College Savings Plan
If saving for a child’s or grandchild’s education is one of your goals, consider contributing to a 529 plan before year-end. Many states (like South Carolina) offer a tax deduction or credit for contributions, and the funds grow tax-free if used for qualified educational expenses. It’s a valuable tool to help reduce future education costs while potentially lowering your current tax burden.
Consider Tax-Advantaged Health Accounts
Fully fund your Health Savings Account (HSA) if you have a high-deductible health plan. HSAs offer a triple tax benefit—tax-free contributions, growth, and withdrawals for qualified expenses.
Make Final Estimated Tax Payments
If your withholding or estimated payments are falling short, make a final estimated tax payment by January 15 to avoid potential penalties.
Organize Your Tax Forms
List expected 1099s, W-2s, and other tax forms. Preparing early makes filing smoother and helps catch any errors from financial institutions.
15. Consider Accelerating Deductions or Deferring Income
If you’re able, consider accelerating deductions into this year, such as paying property taxes or making mortgage interest payments early. Conversely, if you anticipate being in a lower tax bracket next year, you might choose to defer income to the following year. This strategy can help you manage your taxable income and potentially lower your overall tax liability, depending on your current and future financial situation.
Plan for AMT Exposure
High earners may be subject to the Alternative Minimum Tax (AMT). Review deductions that could trigger AMT, like state and property taxes, and adjust your plan accordingly.
Pay Off Deductible Expenses Early
Similar to the idea mentioned in 15., consider prepaying certain deductible expenses—such as mortgage interest or medical bills—if you’re close to maximizing your itemized deductions this year.
Rebalance Your Portfolio for Tax Efficiency
Rebalance your investments as part of year-end planning. This helps align with your target allocations and can minimize potential tax surprises next year. We monitor and rebalance our clients’ portfolios automatically and throughout the year.
Plan for Non-Cash Contributions
Donated items like clothing or household goods can be deductible if donated to a qualified charity. Remember to get a receipt and document the fair market value.
Prepare for Higher Standard Deductions
Similar to ideas mentioned earlier, if you won’t exceed the standard deduction this year, consider bunching deductions into every other year (e.g., doubling up on charitable gifts) to maximize tax savings.

At Intelligent Investing, we view these tax strategies as essential components of your financial plan. Our fiduciary approach ensures that each strategy aligns with your long-term goals, reduces tax burdens, and preserves wealth for the future.

Feel free to reach out for a complimentary call or coffee. Now’s the time to take action, and we’re here to help every step of the way. Let’s end the year with a strategic approach that sets you up for financial success in 2025 and beyond.

Schedule a short discovery call or meeting

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

What a Trump Presidency Could Mean for the Markets

November 14, 2024 by Hans Blake, CFA, CPA

Reading Time: 4 minutes

The U.S. election has ended, and former President Donald Trump is on his way to the White House, bringing with him a strong Republican majority in the Senate and at the time of this writing likely a narrow margin in the House. As the nation prepares for potential shifts in fiscal policy, energy, trade, and regulation, markets have responded with significant gains in U.S. equities, a strengthening dollar, and rising Treasury yields.

As we’ve emphasized before, it’s wise not to react impulsively to headlines, as markets are forward-looking and quickly factor in new information. Given the magnitude of potential changes, this is a crucial moment for investors to assess and optimize their strategies that align with the overall financial goals and plan. At Intelligent Investing, we are here to help navigate these shifts with a focus on minimizing taxes, unifying financial goals, and leveraging technology to enhance decision-making.

Initial Market Response to the Election Results

Early market reactions signal that investors are anticipating a pro-growth, pro-U.S. outlook. S&P 500 futures surged by over 2%, and small-cap stocks rallied to one-year highs. Bond yields and the U.S. dollar are up, with the 10-year Treasury yield rising as investors brace for a more expansive fiscal policy. This election result has effectively reduced uncertainty, and as the dust settles, it’s clear that markets are focusing on opportunities for growth rather than on potential tariff or deficit risks.

Key Policy Shifts: What to Expect in a Second Trump Administration

Tax Cuts and Fiscal Policy
President Trump has consistently emphasized tax reductions, which he aims to expand with congressional support. While an extension of the Tax Cuts and Jobs Act (TCJA) is expected, further cuts, potentially on corporate taxes, are likely to be prioritized. Such measures could stimulate corporate earnings and, by extension, bolster stock performance, particularly in sectors with substantial tax liabilities.
Trade and Tariffs
The second Trump administration is likely to implement new tariffs, with proposals including a 60% tariff on Chinese imports and a 10-20% tariff on a broader range of products. While these measures aim to strengthen domestic production, they could also increase the cost of goods and potentially contribute to prolonged inflation. This policy pivot could encourage a continued “America First” stance, with both economic and geopolitical implications.
Energy Sector and Deregulation
We may see deregulation efforts, particularly in banking and energy. Trump’s administration aims to roll back certain banking regulations and ramp up domestic energy production. However, given the all-time highs in U.S. oil and gas output, additional increases may take time. While scaling back certain parts of the Inflation Reduction Act may be considered, comprehensive repeals are unlikely. Nevertheless, this move could shift investment opportunities within the energy sector, particularly for traditional energy assets over renewables.
Long-Term Outlook for Inflation and Interest Rates
With persistent inflation, prices are expected to stay higher for a longer period. This can impact the cost of everyday goods and services. To keep up with inflation, interest rates are rising, and the bond market is feeling the effects: longer-term bonds are becoming less attractive because they lock in lower returns compared to shorter-term options. For investors, this environment calls for a flexible approach to bond investing, carefully selecting bonds that offer value despite these challenges.

At Intelligent Investing, we advocate for a diversified approach that blends high-quality credit with medium-term bonds to manage risk and provide stable income. Our strategies are always designed with your unique goals and financial plan in mind, allowing us to build a portfolio that aligns with and supports your financial future.

Implications for Your Financial Plan

As the holidays and January 20th approach, you still have time to leverage year-end tax planning to strategically align your investment portfolio with anticipated policy shifts. We encourage our clients to review their financial plans, particularly in light of potential tax law changes and market volatility. Our proprietary Intelligrations® financial software helps simplify complex financial information, integrating technology to maximize decision-making efficiency and minimize tax impact.

At Intelligent Investing, we take a holistic, fee-only approach, ensuring that every recommendation aligns with your unique goals and objectives. We invite you to take advantage of these critical final weeks of the year to position yourself for success as we navigate the new administration’s policy landscape together.

If you’re looking to secure your financial future in this new era of political and economic change, now is the time to act. Contact Intelligent Investing today, and let’s work together to create a strategy that minimizes taxes, maximizes potential, and keeps your financial goals front and center. Don’t wait—reach out to us before the end of the year to make the most of the current planning opportunities.

With our commitment to transparency, technology, and expertise, Intelligent Investing is here to guide you through this new chapter with confidence. We look forward to the opportunity to make sure your finances are as prepared as you are for what’s next.

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Photo Source: Free CCO U.S. Government image for Personal and Business use from rawpixel.com

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

Why New Parents Need a Will

November 7, 2024 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 4 minutes

For many, estate planning feels like something to worry about later in life. However, Chace Campbell, a seasoned attorney, sheds light on why new parents should make this a priority. In a recent episode of Intelligent Money Minute, Chace emphasized how having a will early on is essential, especially when children are involved. From safeguarding assets to ensuring that a trusted guardian is in place, Chace shared invaluable advice for new parents looking to protect their family’s future.

The Importance of Estate Planning for New Parents

Chace explains that for parents, estate planning is about securing the well-being of their children. While many young parents might assume they don’t need a will, the truth is that intestacy laws—laws that determine asset distribution if someone dies without a will—can result in complex and unintended consequences.

“If a young family has no will in place, the division of assets can become complicated,” Chace says. In one scenario, a husband with no will passed away, leaving his wife and newborn child. The law dictated that the wife would only inherit half of the husband’s estate, with the other half going to their child. This means the wife would have to go through the courts to access her child’s share of the estate, causing undue stress during an already difficult time.

Why Minor Children Inheriting Assets Can Lead to Challenges

One of the unique challenges that arise when parents pass away without a will is the issue of minor children inheriting assets. In the absence of a will, minors may inherit substantial assets, such as a home, that they are not able to manage themselves. This leaves the surviving parent in a difficult position, needing to obtain court approval for any financial decisions related to those assets.

Chace describes a scenario in which a wife was unable to sell the family home without legal authorization because her young child inherited half of the property. “She wanted to sell the house and move closer to her support system,” Chace explains, “but legally, she only owned half of it.” Situations like these can be prevented with a straightforward will, which would allow parents to determine how their assets are handled in their absence.

The Role of a Will in Designating Guardianship

Beyond asset distribution, a will is crucial for designating a legal guardian for children. Without this clear direction, the court decides on a guardian, which could lead to family disputes and additional emotional strain. “Naming a guardian in your will ensures that your child is cared for by someone you trust,” Chace notes. For new parents, this is one of the most important aspects of creating a will, providing peace of mind that their child’s future is secure.

Estate Planning Laws Across States

While each state’s intestacy laws vary slightly, the core principles remain similar across the U.S. In Chace’s example, South Carolina laws dictate a 50-50 split between the spouse and child. In other states, these percentages may differ, but the underlying issue is the same: without a will, families are subject to the state’s rules for asset distribution, which may not align with their wishes.

Chace’s advice is clear: “Regardless of where you live, having a will in place protects your family from the complex legal processes that intestacy laws can create.”

Taking Action: Why New Parents Should Prioritize a Will

For many new parents, the expense and time commitment of creating a will may feel unnecessary. However, as Chace points out, the potential costs of not having one far outweigh the initial investment. A will not only protects your assets but also shields your family from unnecessary legal and financial stress.

In summary, creating a will allows parents to:

Designate a guardian for their children
Specify asset distribution according to their wishes
Avoid legal hurdles that can arise from intestacy laws

For new parents, estate planning is a crucial step in safeguarding their family’s future. Starting this process early can ensure that loved ones are protected, and their wishes are honored should the unexpected occur.

Stay tuned for more interviews with Chace, where we’ll dive deeper into his expertise and the valuable lessons he has to share with our intelligent investing audience, so be sure to subscribe to our Intelligent Money Minute podcasts.

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Chace Campbell Bio

Chace is a seasoned legal professional with over 20 years of experience in estate planning, business law, and probate. He began his career in 1997 at Culp, Elliot, and Carpenter, P.L.L.C., focusing on tax and corporate law before discovering his passion for family law, probate, and small businesses in 2002.

Chace is renowned for his exceptional communication skills and careful listening. He is dedicated to helping clients navigate complex legal landscapes, providing comprehensive understanding and effective resolutions through litigation, mediation, negotiation, or forward planning. He emphasizes both resolving and preventing legal issues, offering accurate information, honest advice, and concrete action steps.

Outside of work, Chace enjoys time with his wife Michelle and their three children, preparing for outdoor adventures at REI, and indulging in his passion for coffee.

Credits: This blog was written in part by ChatGPT, an AI language model developed by OpenAI. The content of this blog reflects the knowledge and opinions of ChatGPT, may or may not reflect the knowledge and opinions of Intelligent Investing, and is protected by copyright laws. Please do not reproduce or distribute without giving proper credit to ChatGPT and OpenAI.

Election Betting Markets: Insightful Investment or Unstable Gamble?

November 1, 2024 by Hans Blake, CFA, CPA

Reading Time: 5 minutes

With the growing popularity of prediction markets like Polymarket, many investors are wondering: Are these markets genuine investments or just another form of gambling? Prediction markets, powered by crypto, are relatively new but have quickly captured attention. The question of their true value as an investment, however, remains open.

This article explores what prediction markets offer, where they fit within the broader investment landscape, and what risks they carry. While Polymarket has emerged as a significant player, it’s important to note that it is currently unavailable to U.S. citizens due to regulatory restrictions.

What Are Prediction Markets?

Prediction markets, or betting markets, are platforms where individuals place wagers on the outcomes of real-world events—ranging from elections to sports outcomes and economic indicators. In theory, the prices on these platforms reflect the probability of various outcomes, offering what some argue is a “market-driven” consensus on future events. Polymarket, for example, allows users to place bets on issues like political races and major economic events. The platform has gained substantial traction, reportedly seeing over $3.5 billion in bets, making it one of the most popular prediction markets globally.

But are prediction markets akin to gambling, or do they serve a legitimate financial purpose? To answer this, it’s essential to evaluate their underlying structure and function.

Investment vs. Gambling: Drawing the Line

The CFA Institute defines an investment as an activity in which funds are allocated with the expectation of earning a financial return over time. Gambling, by contrast, often involves placing bets on random events with unpredictable outcomes. Prediction markets like Polymarket arguably fall somewhere in between, but definitely lean towards the gambling side of the spectrum. They operate on data, crowd sentiment, and complex algorithms, which may yield insights into certain probabilities. However, they lack the tangible, underlying assets or revenue streams that typically underpin investment vehicles like stocks or bonds or even real estate or other alternative investments.

In some cases, prediction markets can provide valuable information, but the question of whether these markets qualify as investments largely depends on the investor’s objectives and risk tolerance. For many, betting on outcomes—especially where regulatory oversight is limited—strays into speculative territory.

Matt Hougan on Polymarket and the Power of Crypto

Matt Hougan, CIO of Bitwise Asset Management and a regular guest on Intelligent Money Minute, provides a unique perspective on Polymarket’s crypto-backed structure. According to Hougan, crypto’s global reach is fundamental to Polymarket’s success, as it consolidates viewpoints from around the world, creating what he calls a “game-changer.” Unlike traditional markets, which are often limited by geography, Polymarket benefits from global interest and participation. The platform’s decentralized, crypto-native structure allows it to operate on a worldwide scale, delivering insights that are not constrained to a single market.

Another advantage Hougan highlights is liquidity. Traditional markets often rely on large institutional players to provide liquidity, but these firms have shown limited interest in prediction markets. Polymarket, however, leverages crypto-based incentives that encourage the community itself to provide liquidity, resulting in tighter spreads and greater efficiency. “A prediction market without the crowd isn’t a prediction market at all,” Hougan notes, emphasizing the importance of this approach. By incentivizing community participation, Polymarket has created a more dynamic and reliable platform.

Hougan also suggests that Polymarket is more than a one-time experiment tied to the upcoming election cycle between Trump and Harris. As global events continue to attract attention, he predicts the platform will only grow. In his view, Polymarket could become an exemplar of how crypto-backed applications go mainstream by simplifying the user experience. Many users may not even be aware that Polymarket operates on crypto, and this abstraction could be key to its widespread adoption.

For those interested, Hougan’s full insights can be found in his recent interview on our Intelligent Money Minute podcast.

The Risks of Prediction Markets

Despite the potential benefits, prediction markets like Polymarket come with substantial risks, extending beyond typical financial concerns to ethical and even national security issues.

Speculative Nature and Lack of Underlying Value: Prediction markets do not have any inherent asset value, and investors are essentially wagering on outcomes without tangible cash flows or revenue-generating potential. This setup exposes participants to liquidity risks and heightened price volatility, which can skew the accuracy of the probabilities on display.
National Security and Ethical Concerns: One of the more complex risks involves the kinds of topics open to betting. Markets that enable bets on events like the potential onset of a conflict or economic turmoil could carry national security implications. The existence of these bets might influence or exploit public opinion, adding an ethical layer to the already complex regulatory challenges. Such markets can also generate incentives that may destabilize areas of national interest.
Risk of Insider Trading and Manipulation: In a market that thrives on crowd-based probabilities, insider information could undermine the fairness and legitimacy of outcomes. An individual with non-public knowledge could manipulate a prediction market, undermining its credibility and potentially resulting in financial or social consequences. These platforms may unintentionally encourage insider trading and other forms of manipulation that could harm both the market and its participants.
Regulatory and Compliance Uncertainty: Blockchain-based platforms like Polymarket operate in an environment where regulation is still evolving, especially in prediction markets. Legal and compliance issues, such as accountability, consumer protection, and fraud prevention, remain largely undefined. This lack of clarity means that investors could find themselves exposed to unpredictable risks. Polymarket’s current inaccessibility to U.S. citizens serves as a reminder of the potential for regulatory intervention and the importance of compliance.

Are Prediction Markets an Investment Opportunity?

Prediction markets like Polymarket offer a unique insight into public sentiment on a global scale, particularly on events with high public interest, such as political elections. However, for those focused on traditional investment fundamentals, prediction markets may fall short. They lack the historical performance and financial structures typical of sound investments, with outcomes heavily dependent on human behavior and speculation.

At Intelligent Investing, we believe in a disciplined, diversified approach that focuses on long-term financial goals. Although prediction markets may offer unique insights, they are no substitute for time-tested investment principles.

Ultimately, prediction markets may be an interesting entertainment, but they are also speculative and inherently risky. For those seeking to build wealth based on solid principles, we at Intelligent Investing advocate for a disciplined, diversified approach that prioritizes patience and a well-defined investment philosophy. While platforms like Polymarket offer glimpses into public sentiment, they do not align with the prudent, long-term strategies we believe are essential for intelligent investors. To learn more about our approach, visit investedwithyou.com/philosophy.

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Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

When Should Someone Start Thinking about Estate Planning?

October 24, 2024 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 3 minutes

Estate planning often seems like a task for older generations, but Chace Campbell, an experienced attorney, offers a different perspective. In a recent episode of Intelligent Money Minute, Chace highlighted the importance of starting the estate planning process as early as age 18. From legal guardianship changes to healthcare decisions, Chace provided valuable insights on why young adults and their families should be proactive about estate planning.

The Right Time to Start

According to Chace, the optimal time to begin thinking about estate planning is when an individual turns 18. Before that age, parents have legal guardianship and can make medical or financial decisions for their child. However, once a person turns 18, they are legally considered an adult, and parents lose the ability to make those decisions without proper legal documentation.

Chace explains, “The moment that child turns 18, parents are no longer able to handle any of the child’s affairs, financial or health.” This means that in the case of a medical emergency, if an 18-year-old does not have a power of attorney in place, parents may need to go through an expensive and time-consuming probate process just to speak on behalf of their child.

Essential Documents for Young Adults

For young adults, Chace recommends having at least three key documents in place:

A Simple Will: While this might seem premature, a will ensures that any assets or responsibilities are handled according to the individual’s wishes.
Power of Attorney (Financial): This durable document allows a trusted person, often a parent, to manage financial matters if the young adult is incapacitated.
Healthcare Power of Attorney: This document ensures that someone can make medical decisions if the individual is unable to do so. In scenarios such as a car accident or coma, the absence of this document can leave parents unable to consent to vital medical treatments due to legal and HIPAA restrictions.

Here’s a compelling example: “A junior in college gets into an accident and ends up in a coma. Without a healthcare power of attorney, the parents are left helpless, unable to even talk to the hospital staff about their child’s condition.”

Understanding Power of Attorney

Chace further explains the two primary types of power of attorney—financial and healthcare. The durable power of attorney refers to a document that remains effective even if the individual is incapacitated, which is critical for both financial and medical decisions. In many cases, these documents include language that covers end-of-life decisions as well, simplifying the estate planning process.

In some states, healthcare power of attorney and end-of-life planning documents are separate, but Chace notes that in South Carolina, the two have been combined into a single document, allowing the appointed person to handle all medical decisions, from routine procedures to end-of-life care.

Why Early Estate Planning Matters

Chace’s advice is clear: estate planning isn’t just for the elderly. “Before you turn 18, you should be making an appointment to visit an attorney,” he emphasizes. Even though it might feel early, having these essential documents in place can provide peace of mind for both young adults and their families.

As Chace concludes, estate planning is about preparedness—ensuring that loved ones are legally able to help when needed. With the right steps, individuals can avoid legal hurdles and ensure that their wishes are honored in any situation.

For families looking to start the estate planning process, it’s never too early to consult an attorney and make sure these vital documents are in place.

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Chace Campbell Bio

Outside of work, Chace enjoys time with his wife Michelle and their three children, preparing for outdoor adventures at REI, and indulging in his passion for coffee.