Stocks UP and Stocks DOWN

Posted on April 14, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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🟢 What’s up

  • Auto stocks soared on comments from President Trump that car companies “need a little bit of time.” GM rose 3.48%, Ford climbed 4.13%, and Stellantis gained 5.64%.
  • Investors are bullish: WeBull exploded 374.72% after the online investment platform went public via SPAC merger last Friday.
  • Goldman Sachs rose 1.87% after the Wall Street titan announced record revenue in its equities-trading business thanks to stock market volatility in the first quarter.
  • Palantir gained 4.60% after it sealed a deal with NATO to provide the organization with its advanced AI-powered warfighting system.
  • Intel climbed 2.89% on news that it will sell a 51% stake in its programmable chips unit Altera to Silver Lake Management.
  • Pfizer somehow rose 0.96% despite announcing that it is discontinuing the development of a once-daily weight-loss pill after a patient experienced a liver injury. That’s great news for Viking Therapeutics, which has its own oral weight-loss pill in the pipeline. Shares of Viking rose 10.58%.
  • Speaking of biotech stocks, Verve Therapeutics soared 26.38% after the company reported no issues with patients trialing its new gene-editing technology.

What’s down

  • Meta Platforms fell 2.22% as its antitrust trial began today. If it loses its case against the FTC, it may be forced to sell off Instagram.
  • DaVita sank 3.03% after the kidney disease treatment company announced it was the victim of a ransomware attack.
  • Hilton Worldwide Holdings fell 1.10% on a downgrade from Goldman Sachs analysts, who believe the vacation club company will struggle as fewer people splurge on travel. Marriott International received the same treatment, and also dropped 0.77%.
  • LVMH Moet Hennessy Louis Vuitton (really rolls off the tongue) tumbled 6.39% after the luxury goods retailer missed analyst expectations, reporting a 3% decline in sales compared to forecasts of 2% growth.
  • It’s a bit broad, but Citi analysts downgraded all US stocks to “neutral” this morning. The analysts argued that US stocks are too exposed to President Trump’s policies and are expensive compared to international peers, and endorsed investing in Japanese, European, and UK equities instead.

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PHYSICIANS: On Real Estate Investing

Posted on April 14, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

OVER HEARD IN THE FINANCIAL ADVISOR’S LOUNGE

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By Perry D’Alessio, CPA
[D’Alessio Tocci & Pell LLP]

What I see in my accounting practice is that significant accumulation in younger physician portfolio growth is not happening as it once did. This is partially because confidence in the equity markets is still not what it was; but that doctors are also looking for better solutions to support their reduced incomes.

For example, I see older doctors with about 25 percent of their wealth in the market, and even in retirement years, do not rely much on that accumulation to live on. Of this 25 percent, about 80 percent is in their retirement plan, as tax breaks for funding are just too good to ignore.

What I do see is that about 50 percent of senior physician wealth is in rental real estate, both in a private residence that has a rental component, and mixed-use properties. It is this that provides a good portion of income in retirement.

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QUESTION: So, could I add dialog about real estate as a long term solution for retirement?

Yes, as I believe a real estate concentration in the amount of 5 percent is optimal for a diversified portfolio, but in a very passive way through mutual or index funds that are invested in real estate holdings and not directly owning properties.

Today, as an option, we have the ability to take pension plan assets and transfer marketable securities for rental property to be held inside the plan collecting rents instead of dividends.

Real estate holdings never vary very much, tend to go up modestly, and have preferential tax treatment due to depreciation of the property against income.

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EDUCATION: Books

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US STOCKS: Market Update

Posted on April 14, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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US Markets

After one of the most volatile weeks in Wall Street history, the S&P 500 closed 5.7% higher for its best week since 2023. But investors are taking little comfort with the rebound in stocks.

A declining dollar fell to a three-year low against the euro on Friday and spiking bond yields have some observers warning of a monumental, structural shift away from the US as a safe haven due to the recent tariff turmoil.

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BENEFICIARY DESIGNATIONS: Top 10 Tips for Medical Professionals

Posted on April 14, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Beneficiary designations can provide a relatively easy way to transfer an account or insurance policy upon your death. However, if you’re not careful, missing or outdated beneficiary designations can easily cause your estate plan to go awry.

Where you can find them

Here’s a sampling of where you’ll find beneficiary designations:

  • Employer-sponsored retirement plans [401(k), 403(b), etc.]
  • IRAs
  • Life insurance policies
  • Annuities
  • Transfer-on-death (TOD) investment accounts
  • Pay-on-death (POD) bank accounts
  • Stock options and restricted stock
  • Executive deferred compensation plans
  • In several states, so-called “lady bird” deeds for real estate

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10 tips about beneficiary designations

Because beneficiary designations are so important, keep these things in mind in your estate planning:

  1. Remember to name beneficiaries. If you don’t name a beneficiary, one of the following could occur:
    • The account or policy may have to go through probate. This process often results in unnecessary delays, additional costs, and unfavorable income tax treatment.
    • The agreement that controls the account or policy may provide for “default” beneficiaries. This could be helpful, but it’s possible the default beneficiaries may not be whom you intended.
  2. Name both primary and contingent beneficiaries. It’s a good practice to name a “back up” or contingent beneficiary in case the primary beneficiary dies before you. Depending on your situation, you may have only a primary beneficiary. In that case, consider whether it may make sense to name a charity (or charities) as the contingent beneficiary.
  3. Update for life events. Review your beneficiary designations regularly and update them as needed based on major life events, such as births, deaths, marriages, and divorces.
  4. Read the instructions. Beneficiary designation forms are not all alike. Don’t just fill in names — be sure to read the form carefully. If necessary, you can draft your own customized beneficiary designation, but you should do this only with the guidance of an experienced attorney or tax advisor.
  5. Coordinate with your will and trust. Whenever you change your will or trust, be sure to talk with your attorney about your beneficiary designations. Because these designations operate independently of your other estate planning documents, it’s important to understand how the different parts of your plan work as a whole.
  6. Think twice before naming individual beneficiaries for particular assets. For example, you may establish three accounts of equal value initially and name a different child as beneficiary of each account. Over the years, the accounts may grow or be depleted unevenly, so the three children end up receiving different amounts — which is not what you originally intended.
  7. Avoid naming your estate as beneficiary. If you designate a beneficiary on your 401(k), for example, it won’t have to go through probate court to be distributed to the beneficiary. If you name your estate as beneficiary, the account will have to go through probate. For IRAs and qualified retirement plans, there may also be unfavorable income tax consequences.
  8. Use caution when naming a trust as beneficiary. Consult your attorney or CPA before naming a trust as beneficiary for IRAs, qualified retirement plans, or annuities. There are situations where it makes sense to name a trust — for example if:
    • Your beneficiaries are minor children
    • You’re in a second marriage
    • You want to control access to funds
  9. Be aware of tax consequences. Many assets that transfer by beneficiary designation come with special tax consequences. It’s helpful to work with an experienced tax advisor to help provide planning ideas for your particular situation.
  10. Use disclaimers when necessary — but be careful. Sometimes a beneficiary may actually want to decline (disclaim) assets on which they’re designated as beneficiary. Keep in mind that disclaimers involve complex legal and tax issues and require careful consultation with your attorney and CPA.

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