Remembering Charlie Munger

Warren Buffett's long-time partner and Vice Chairman of Berkshire Hathaway, Charlie Munger, was a revered figure among investors. We asked advisors to share their thoughts on what made Munger so highly regarded. They highlighted his investing wisdom, dry wit, and his straightforward dismissal of investment fads. Munger was known for speaking his mind and had a remarkably simple investment thought process, which was admired by many.

Potential Impact of a Wealth Tax Case

The Supreme Court recently heard arguments in a case that could have significant implications for the U.S. tax code. The case revolves around a couple who believes they should not have been taxed on unrealized income from an overseas investment. If the court rules in their favor, it could establish a precedent that only earned income can be taxed. This outcome would undermine the possibility of implementing a wealth tax on the ultrarich, a policy goal for many progressives. However, early indications suggest that the court may take a more limited approach, avoiding a blanket approval of a wealth tax.

End of Vanguard and Amex Partnership

The partnership between asset management giant Vanguard and credit card company American Express (Amex) has come to an end. After an unsuccessful run of just under two years, Vanguard is terminating the automated advice program called Invest for Amex by Vanguard. The companies stopped accepting new customers on November 15th and plan to discontinue the service on February 29th. Observers in the industry noted that using the program could actually cost investors more than going directly to Vanguard.

Financial Tips for Blended Families

Blended families can present unique challenges when it comes to financial planning. Advisors must navigate complex family dynamics, ensuring that estate plans are carefully crafted to avoid accidentally disinheriting children from previous marriages or leaving assets to ex-spouses. By participating in important financial conversations and raising these potential concerns, advisors can help their clients prevent costly mistakes.

RIAs Next Up?

In recent years, over 40 firms have been fined a total of $2.7 billion for failing to record and preserve employee communications through messaging apps like WhatsApp and iMessage. While the focus has primarily been on larger brokerages, the SEC may now turn its attention to smaller registered investment advisory firms (RIAs) that are also required to retain employee communications. To ensure compliance, experts at ACA Group recommend that RIAs provide employee training and implement monitoring and surveillance systems.

New RIA from an Old Hand

Paul M. Simons, former President of Boston Private, has launched his own independent registered investment advisory firm called Purefi Wealth. This new firm is focused on recruiting advisors who cater to high-net-worth and ultrahigh-net-worth clients and seek to be part of a fiduciary, partner-based model. Advisors who join Purefi Wealth will have the opportunity to receive equity in the business. Purefi will leverage Dynasty Financial's platform, technology, wealth management tools, and services, with its headquarters based in Boston.

Advisor Q&A: Insights from Jordan Mayer

In our latest Advisor Q&A, we had the opportunity to speak with Jordan Mayer from J.P. Morgan. With an impressive $8.2 billion practice under his belt, Mayer shares his expertise on building a successful practice. He also discusses the decision to bring his daughter onto his team and provides insights on how clients can prepare for potential changes to Trump-era tax cuts.

Wishing you a fantastic weekend.