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FINANCES

A 2021 INVESTMENT PORTFOLIO THAT WOULD FAVOR DURING A BIDEN PRESIDENCY By Patrick Wehrly

Many investors wonder how much a new President can affect the overall economy and/or the Stock Market.

ANTICIPATED 2021 CHANGES TO BOTH PERSONAL AND CORPORATE TAXES

It is important to remember that an Incoming President brings with him a lot of new advisors, analysts as well as opinions and experiences. All of these new people can significantly affect both the economy and the stock market with taxation and foreign policy decisions, to name a few.

I will use several bullet points here to give you some options and sound advice.

We have been carefully reviewing our Clients and their investment accounts with an eye towards changes that need to be made from positions that performed well in 2020 but will not likely perform well in 2021 with all of the possible changes. One idea that has been very popular with clients -especially newincoming clients- is the idea of an Apples-to-Apples comparison report of the actual performance of their investments in 2020 side by side with the S&P 500, and also a single-stock-high-dividend conservative portfolio. This third-party comparison Report is created by Morningstar and is 100% neutral, so it is truly a valid second opinion. Certainly every money manager you talk to will be quick to tell you they can do a better job, but what if your performance was actually better than their performance? In other words, why consider moving your accounts to a new manager if you cannot SEE the benefits of such a move? That is where the Morningstar "Apples-to-Apples" comparison report really shines because suddenly and maybe for the first time you can actually see how your account actually performed side by side against the other two portfolios. Then of course, if you discover that your accounts underperformed both S&P 500 benchmark as well as the high dividend portfolio, you can take action and prevent this from happening again in 2021 and beyond. Please reference this Morningstar Comparison Report when you contact our offices about this important issue or any other Financial Issues.

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First of all, as an Enrolled Agent admitted to practice before the Internal Revenue Service, I want to point out that many tax professionals offer income tax preparation services and do not engage in actual Income Tax Planning services. In other words, you hand them documentation of the year that has already happened and taxes that you already owe, and they prepare the Tax Return for you. Certainly we prepare hundreds of Business and Personal income tax returns each year but the difference is that we regularly meet with our Clients during the year and offer Tax Planning that can REDUCE or even ELIMINATE Personal and Business taxes. This planning difference will be especially important as the New Administration comes into power with Taxes and Government Revenue on their minds. Again we are not being polital here, but we are rather being mathematical in our protocols and our approach to saving our clients money. Certainly Mr. Biden and his Administration have a “wish list� of laws and changes-to-laws they would like to see happen quickly and no one knows how successful they will be, or what Tax Law changes may happen first. But regardless of how things begin to play out during the next 4 years, professional and intelligent Tax Planning should be at the forefront of your Personal and Business tax decisions, knowing that good tax advise can and will save you thousands and even tens-ofthousands of hard earned dollars. _____ Patrick Wehrly may be reached at 281.528.5760 for a private consultation on your financial and tax planning for 2021 and beyond.

Profile for Martin

LUXCIOR - 9.1 - January 2021  

HOUSTON HISPANIC LUXURY GUIDE & LIFESTYLE AUTHORITY

LUXCIOR - 9.1 - January 2021  

HOUSTON HISPANIC LUXURY GUIDE & LIFESTYLE AUTHORITY