When you’re in the throes of midnight feedings, diaper changes, and the joyful chaos of raising young children, estate planning probably isn’t at the top of your to-do list. It might not even be on your radar. After all, you’re young, healthy, and focused on building a life, not planning for its end.

But here’s the thing: estate planning isn’t about planning for the end. It’s about protecting the beginning – the beautiful family life you’re creating right now. It’s an act of love, a way to wrap your arms around your family’s future, no matter what life may bring.

Let’s embark on this journey together, exploring how young families can approach estate planning with confidence and clarity. We’ll break it down into manageable steps – think of it as baby-proofing your family’s financial future.

Step 1: Embrace the “Why”

Before diving into the “how,” let’s talk about the “why.” Estate planning for young families is about:

• Protecting your children’s future
• Ensuring your wishes are respected
• Minimizing stress and confusion for your loved ones
• Providing financial stability for your family

Understanding these motivations can help you approach the process with purpose and resolve.

Step 2: Start with the Basics

Begin with these fundamental elements:

1. Will

• Designates guardians for your children
• Specifies how you want your assets distributed
• Names an executor to manage your estate

2. Guardianship Designations

• Choose primary and backup guardians for your children
• Consider factors like values, parenting style, and location
• Discuss your choices with potential guardians

3. Beneficiary Designations

• Review and update beneficiaries on life insurance policies and retirement accounts
• Remember, these designations typically override what’s in your will

Step 3: Consider a Trust

Trusts aren’t just for the wealthy. They can be valuable tools for young families:

• Revocable Living Trust:
  • Allows for management of assets during your lifetime
  • Provides for seamless transfer of assets upon death
  • Can help avoid probate
• Testamentary Trust:
  • Created through your will
  • Can manage assets for minor children until they reach a specified age

Step 4: Power Up with Power of Attorney

Establish two types of power of attorney:

1. Financial Power of Attorney:
   • Designates someone to manage your finances if you’re incapacitated
2. Healthcare Power of Attorney:
   • Appoints someone to make medical decisions on your behalf if you’re unable

Step 5: Express Your Healthcare Wishes

Create an advance healthcare directive (living will) to specify your preferences for medical treatment in case you can’t communicate them yourself.

Step 6: Safeguard Your Little Ones’ Financial Future

Consider these financial protection measures:

• Life Insurance: Provides financial support for your family if something happens to you
• Disability Insurance: Offers income replacement if you’re unable to work due to illness or injury

Step 7: Document, Document, Document

Create a “love letter” to your family:

• List all accounts, insurance policies, and important documents
• Include passwords and access information for digital assets
• Store this information securely, but make sure your executor knows how to access it

Step 8: Review and Update Regularly

Life changes quickly when you’re raising a young family. Make it a habit to review your estate plan:

• After major life events (births, marriages, divorces)
• When there are significant changes in your financial situation
• At least every 3-5 years

Common Questions Young Families Ask

“We don’t have many assets. Do we really need an estate plan?”

Yes! Estate planning is about more than just money. It’s about protecting your children and expressing your wishes for their care.

“Can’t we just name guardians for our kids and call it a day?”

While naming guardians is crucial, a comprehensive estate plan addresses financial management, healthcare decisions, and more.

“We’re young and healthy. Why do we need to think about this now?”

Life is unpredictable. Having a plan in place provides peace of mind and protects your family from unnecessary stress during difficult times.

“Isn’t estate planning expensive?”

While there are costs involved, many young families can start with basic documents at a reasonable price. The peace of mind it provides is invaluable.

Work With Us

Estate planning for young families isn’t about preparing for the worst; it’s about ensuring your family is protected no matter what. It’s a profound act of love and responsibility, providing a safety net for the beautiful life you’re building.

As your family grows and changes, so too should your estate plan. It’s a living document, one that evolves with your family’s journey.

At LotusGroup Advisors, we understand that thinking about estate planning can feel overwhelming, especially when you’re in the midst of the joyful chaos of raising a young family. That’s why we’re here to guide you through this process with compassion, clarity, and expertise.

From helping you choose the right guardians for your children to structuring trusts that protect your family’s financial future, we’re here to support you every step of the way. And as your family grows and changes, we’ll be there to help you adjust your plan accordingly.

Ready to take this important step in protecting your family’s future? Let’s start the conversation. Reach out to us today to schedule a consultation, and together, we’ll create an estate plan that reflects your love for your family and your hopes for their future. It’s never too early to start planning – let’s begin this journey together.

Disclosure: This blog reflects the author’s views as of the date posted and may change without notice. Investment advisory services are offered through LotusGroup Advisors, LLC, a federally registered investment adviser. LotusGroup operates only in states where it is properly registered or exempt from registration requirements. While the information provided is believed to be reliable, its accuracy and the author’s opinions are not guaranteed, and we assume no responsibility for errors or omissions.

Nothing in this blog should be considered as investment, tax, financial, accounting, or legal advice, nor does it constitute a solicitation to buy or sell any securities. Investors should conduct their own research, seek professional advice, and understand the risks and benefits of any investments discussed. Past performance is no guarantee of future results. Clients will need to sign an Investment Advisory Agreement, and in case of any conflicts between this blog and the Agreements, the Agreements will control.

To learn more about our services and practices, visit the SEC’s website at www.adviserinfo.sec.gov, review our Form ADV Disclosure, or contact us at www.lgadvisors.com, by phone at 720.593.9861, or at our office located at 1005 S. Gaylord Street, Denver, CO 80209.

This blog may not be copied or reproduced without prior written consent.

The post Estate Planning for Young Families: A Guide appeared first on Lotus Group.

In unpredictable economic climates, just like in outdoor adventures, clear guidance is key to avoiding making decisions driven by fear. For business owners and professionals alike, having a robust business financial planning strategy can act as your North Star—providing direction when external factors become overwhelming.

As the world dealt with the uncertainties of 2020, many individuals and companies grappled with questions about the future. At LotusGroup Advisors, we encourage a steady approach to navigating volatile times by following a well-crafted financial plan, designed to mitigate risks and focus on long-term goals. Whether it’s the turbulence brought on by a global pandemic or political shifts, the answer remains consistent: a solid financial plan will be your guide through the storm.

In both hiking and sailing, it’s vital to know where you’re headed before the journey even begins. Without a clear sense of direction, uncertainty can lead to rash decisions. It’s no different in business financial planning. As conditions change, the businesses and individuals who fare best are those who have both a destination and a plan for how to reach it. But how do you build that financial compass?

The Core of Business Financial Planning

There are six essential components that form the backbone of a successful financial plan, ensuring that your business and personal financial goals are aligned, no matter the challenges ahead.

1. Budgeting and Annual Spending Knowledge

At the heart of business financial planning is a clear understanding of your budget and annual expenses. Without this, you can’t determine whether you’ve reached financial freedom or if it’s achievable at all. Establishing these numbers allows you to stay on track with your financial goals.

To gain a clearer picture of where your business stands, consider using advanced financial software that can quickly and accurately give insights into your expense tracking. Tools like QuickBooks or Xero help business owners maintain real-time oversight of their budgets and cash flow.

2. Insurance Planning

Insurance planning is essential for protecting your business from catastrophic risks. Whether it’s liability, property, life, or long-term care, having adequate coverage safeguards your business and personal finances from unforeseen disasters. Analyzing your current insurance policies will ensure you’re not overpaying for coverage while also filling any gaps that could leave you vulnerable. LotusGroup Advisors specialize in reviewing and optimizing insurance plans to minimize risk exposure.

3. Debt Management

Debt can be one of the largest inhibitors to achieving financial independence, particularly for businesses. Part of business financial planning is knowing when to prioritize debt reduction and when to invest in growth opportunities. LotusGroup assists clients in debt consolidation, refinancing options, and strategies to lower interest payments—helping you focus on building wealth.

4. Tax Planning

Effective tax strategies are critical to business financial success. Most business owners overlook available tax-saving vehicles that could save thousands annually. From maximizing contributions to retirement accounts to employing tax-efficient charitable giving methods, understanding the tax landscape allows businesses to retain more capital for future investments. At LotusGroup Advisors, we offer customized strategies tailored to your financial situation, enabling you to stay compliant while reducing your tax burden.

For more information on tax-efficient strategies, see Forbes’ guide on tax planning for small businesses.

5. Estate Planning

Estate planning is not just for personal finances; business owners need to ensure that their estate is well-organized to avoid complications for their heirs and stakeholders. Having updated wills, trusts, and business succession plans is a crucial aspect of business financial planning, and failing to plan properly can result in a loss of business continuity. With professional estate planning, your business can seamlessly transition in the event of your passing or retirement.

Discover the importance of estate planning.

6. Investment Strategy

A solid investment strategy rounds out your business financial planning by ensuring that your assets are working toward your long-term goals. Once your budget, insurance, and taxes are in place, LotusGroup can help you craft a portfolio that’s designed to meet the specific returns necessary to reach financial freedom. Rather than taking excessive risks, we believe in achieving consistent, long-term growth through balanced investments.

As you structure your investments, you might want to explore sustainable options or emerging industries that offer high growth potential. Staying informed about market trends and diversifying your investments ensures that your financial plan remains resilient even in volatile markets.

Navigating Uncertainty with Confidence

During uncertain times, the greatest asset you have is a well-constructed financial plan. The ability to focus on what you can control and let go of what you cannot is crucial in maintaining business continuity. By centering your focus on long-term goals, your business financial planning becomes the North Star guiding your decisions.

At LotusGroup Advisors, we understand that financial returns are important, but they are not the only factor in a successful business plan. When clients set clear goals and follow a detailed strategy, they can weather short-term market fluctuations without deviating from their ultimate destination—financial freedom.

If you’re interested in building or revisiting your business financial plan, give us a call. Our team of advisors is ready to help you navigate both the calm and the stormy waters ahead.

Explore more insights on business planning.

The post Finding Your North Star in Uncertain Times appeared first on Lotus Group.

Legacy planning is the process of shaping how you want to be remembered, both in your personal values and financial contributions. Just as an artist creates a painting – with careful planning and layers of complexity, individuals must determine their legacy, defined by their actions, relationships, and wealth. In legacy planning, aligning financial decisions with personal values becomes essential to create a meaningful impact while you’re alive and after you’re gone.

What is Legacy Planning?

Legacy planning is more than just estate planning or wealth management—it’s about intentionally structuring your life and finances to reflect your values, priorities, and vision for the future. Many view their legacy as what is left behind once they’re gone, but it can be a powerful force in life now, guiding how you spend your time, energy, and resources. A solid financial and estate plan ensures your wealth is distributed according to your wishes, securing your family’s future while allowing you to make a lasting impact on your community, family, and causes you care about.

In both wealth management and estate planning, people often think about their legacy too late—after most of their life’s work has been completed. However, incorporating legacy planning early allows individuals to align their financial assets with their broader life goals, leading to more significant contributions and a lasting positive influence on the world.

Step 1: Reflect on Your Legacy

The first step in legacy planning is introspection—considering what you want to be remembered for and how you want your financial assets to be allocated when you’re gone. Ask yourself:

• What do you value most in life?
• How do you want to be remembered by your family and friends?
• Do you want to be remembered for your charitable contributions, business acumen, or relationships?

One effective exercise is to write two versions of your epitaph: one reflecting how people currently perceive you and another representing how you would like to be remembered. The gap between these two versions may highlight areas in your life where you want to refocus your time and resources.

For example, if you want to leave behind a legacy of philanthropy but have not yet started significant charitable giving, this reflection can inspire you to integrate charitable donations into your estate or financial plan. Doing so ensures that your wealth is directed toward causes that matter most to you.

Step 2: Prioritize Your Legacy Goals

The next step in legacy planning is prioritizing how you want to allocate your wealth and resources. It involves looking at both your current financial situation and future goals. Whether your focus is on family inheritance, charitable giving, or safeguarding your business’s future, these priorities will shape your legacy.

Consider setting up a donor-advised fund to facilitate charitable donations while you’re still alive. This allows you to experience the positive impact of your contributions in real time while receiving an immediate tax deduction. A proper wealth management strategy can help you balance short-term spending with long-term legacy goals.

At LotusGroup Advisors, we recommend taking time to review your estate documents, including wills, trusts, and business succession plans, to ensure your family and intended beneficiaries are protected.

Learn more about estate planning and how it safeguards your legacyPriority and commitment are key to helping you fund your legacy.

Step 3: Establish a Giving Plan

A well-structured giving plan ensures your wealth benefits not only your family, but also the broader community and the causes you care about. Unfortunately, many people delay this step due to a lack of knowledge or fear of complex legal documents. However, starting your legacy planning with a clear giving strategy is essential for aligning your financial resources with your values.

Statistics show that 44% of Americans do not have a will or living trust, and 27% do not have any estate planning documents in place. This lack of preparation can leave families vulnerable to financial uncertainty and disputes.

Chart I – Percentage of Parents Lacking Trust & Estate Documents (www.caring.com)

By creating a will, trust, or estate plan, you can specify how your wealth should be distributed, ensuring that your assets go to the right people and causes after your death. For business owners, this might include setting up a succession plan to ensure the continuity of the company you worked hard to build.

Forbes guide to setting up a charitable giving plan

Why Now is the Right Time for Legacy Planning

Given the financial uncertainty that many individuals face today, there’s no better time than now to start thinking about your legacy planning. Aligning your financial goals with your values early on will give you peace of mind knowing that your wealth will be used effectively, whether by supporting your family or contributing to causes you care about.

Many people wait until retirement or late in life to start legacy planning, but by starting now, you can see the positive outcomes of your contributions and ensure your wealth is properly managed. A proactive approach not only benefits your family but also helps minimize taxes and maximize the impact of your estate.

Explore our wealth management strategies at LotusGroup

Tools and Strategies for Effective Legacy Planning

Here are some essential tools and strategies for your legacy planning:

• Estate Planning: Create or update your will, set up trusts, and ensure that your estate plan is comprehensive and reflects your current priorities. This is a critical element of securing your family’s financial future.
• Donor-Advised Funds: These funds allow you to donate now, receive immediate tax benefits, and distribute the funds to charities over time. It’s an effective way to experience the impact of your contributions.
• Wealth Management: A robust wealth management strategy involves more than just investing. It ensures your assets are growing and protected while aligned with your long-term goals.
• Tax-Efficient Giving: Work with a financial advisor to explore tax-efficient strategies, such as charitable remainder trusts, which allow you to donate to causes you care about while retaining income for yourself during your lifetime.

Check how donor-advised funds can help your legacy planning with us.

Legacy planning is about more than just financial wealth—it’s about ensuring that the values, relationships, and passions that matter most to you are preserved for future generations. By reflecting on what you want to be remembered for, prioritizing your legacy goals, and setting up an intentional giving plan, you can create a lasting impact on your family and the world.

At LotusGroup Advisors, we specialize in helping individuals align their financial resources with their life goals, ensuring that their legacy is one of purpose and significance. Whether it’s crafting an estate plan, managing wealth, or setting up a donor-advised fund, we’re here to help you navigate the complexities of legacy planning.

Contact us for a consultation on legacy and wealth management

Let us help you find and fund your legacy today.

The post Legacy Planning: Finding and Funding Your Future appeared first on Lotus Group.

In today’s volatile financial landscape, knowing how to optimize your cash is critical for business owners and individuals alike. Effective cash management can help you mitigate risks, take advantage of opportunities, and maintain liquidity when markets fluctuate. This guide highlights three strategies to optimize your cash and debt positions to improve your overall financial health.

1. Maintain an Emergency Fund for Liquidity

The first step to optimizing your cash flow is establishing a robust emergency fund. In uncertain times, having liquid cash reserves can help protect you from sudden financial pressures. Many financial advisors recommend keeping at least three to six months’ worth of living or operating expenses in a highly liquid account, such as a savings or money market account.

For business owners, this means having enough liquidity to cover your business expenses for at least a few months in case of an economic downturn, unexpected expenses, or changes in cash flow. Having cash readily available allows you to stay operational without having to sell off investments or take on high-interest debt during emergencies.

When setting up an emergency fund, ensure that the cash is kept in an easily accessible account, but not in one where the temptation to use it for discretionary spending arises. Many prefer to use high-yield savings accounts that offer competitive interest rates to maximize the return on your emergency fund while maintaining liquidity.

Explore more about cash management strategies and understanding Emergency Funds by Investopedia.

2. Manage Debt Strategically

Debt can either work for or against you, depending on how it’s managed. To truly optimize your cash, it’s essential to understand your debt obligations and create a clear strategy for managing them. The goal is to reduce high-interest debt while strategically using low-interest debt to fund growth opportunities.

One way to effectively manage debt is by consolidating high-interest debts such as credit cards into a lower-interest personal loan or business loan. This could reduce the monthly payments and free up cash for other uses. If you have access to low-interest financing options, such as business lines of credit or low-interest mortgages, you may utilize these funds to invest in opportunities that can deliver higher returns.

Another important aspect of debt management is making sure that you’re not holding onto unnecessary debt. As you assess your current debt levels, focus on paying down high-interest loans first. Not only does this free up cash, but it also reduces the overall cost of borrowing over time.

Read more about debt management for business owners.

By optimizing your debt strategy, you may be able to take advantage of favorable borrowing conditions when necessary while reducing the overall impact of interest payments on your cash flow.

Managing Personal and Business Debt from NerdWallet.

3. Use Cash to Invest in Opportunities

A key aspect of learning how to optimize your cash is knowing when to deploy it for investment opportunities. Keeping too much cash idle can result in a loss of potential gains, especially during periods of inflation. Instead of letting your cash sit in low-yield savings accounts, consider using a portion to invest in opportunities that align with your financial goals.

For business owners, this could mean reinvesting cash into the business to drive growth, expand operations, or improve efficiency. For individual investors, it may involve allocating a portion of cash reserves to a diversified investment portfolio that includes stocks, bonds, or real estate.

When investing, it’s important to consider the balance between liquidity and growth. Keeping enough cash accessible for emergencies or short-term expenses, but deploying the rest strategically is usually ideal, however each person has a unique set of circumstances that can dictate what is necessary and appropriate. This approach can help to ensure your money is working for you rather than sitting idle. Consider using high-yield investments, such as certificates of deposit (CDs) or dividend-paying stocks, to generate a return on excess cash while keeping risks relatively low.

Learn more about investment strategies.

Balancing Cash and Debt for Optimal Growth

Business owners, in particular, should be  proactive in balancing cash reserves with strategic debt management. Keeping cash on hand while also making smart investments and taking a low-interest debt can fuel long-term growth. The key is to develop a comprehensive financial strategy that maximizes your liquidity without sacrificing the opportunity for higher returns.

As market conditions evolve, regularly review your cash position and debt levels. Adjusting your cash management strategy as needed ensures that you’re always in the best position to seize opportunities and handle unexpected challenges. By learning how to optimize your cash and debt, you could protect your financial health while growing your wealth sustainably.

If you’re looking to take control of your financial future, let LotusGroup Advisors work with you to develop a personalized cash and debt management strategy. With the right approach, you could balance liquidity, minimize debt, and make the most of your cash to achieve both short-term stability and long-term growth.

Contact Us for more financial planning services.

This blog reflects the author’s views as of the date posted and may change without notice. Investment advisory services are offered through LotusGroup Advisors, LLC, a federally registered investment adviser. LotusGroup operates only in states where it is properly registered or exempt from registration requirements. While the information provided is believed to be reliable, its accuracy and the author’s opinions are not guaranteed, and we assume no responsibility for errors or omissions.

Nothing in this blog should be considered as investment, tax, financial, accounting, or legal advice, nor does it constitute a solicitation to buy or sell any securities. Investors should conduct their own research, seek professional advice, and understand the risks and benefits of any investments discussed. Past performance is no guarantee of future results. Clients will need to sign an Investment Advisory Agreement, and in case of any conflicts between this blog and the Agreements, the Agreements will control.

To learn more about our services and practices, visit the SEC’s website at www.adviserinfo.sec.gov, review our Form ADV Disclosure, or contact us at www.lgadvisors.com, by phone at 720.593.9861, or at our office located at 1005 S. Gaylord Street, Denver, CO 80209.

This blog may not be copied or reproduced without prior written consent.

The post 3 Ways to Optimize Your Cash in Today’s Market appeared first on Lotus Group.

Investing isn’t just about numbers—it’s about navigating an emotional journey, one that can challenge and shape us. But what if we told you that understanding the way your mind works could be the key to unlocking not just better returns, but also a more joyful, fulfilling investment experience? This is where behavioral finance comes in. By blending psychology with finance, it helps us recognize the biases and emotions that influence our decisions, empowering us to become not just better investors, but happier ones too.

1. Awareness: The First Step to Mastery
The journey to becoming a better investor begins with awareness. We all have biases—like “recency bias,” which can cause us to overreact to recent events and lose sight of our long-term goals. But by recognizing these tendencies, we can rise above them. We can step back, breathe, and choose to focus on the bigger picture. This awareness transforms our investing from reactive to proactive, from short-sighted to visionary.

2. Conquering Fear and Greed
Fear and greed—two powerful emotions that can either hinder or propel us. When the market dips, fear whispers in our ear to sell, to cut our losses. When the market soars, greed tempts us to chase after more, sometimes at the expense of our own well-being. But what if we could conquer these emotions? By understanding them, we can pause, reflect, and make decisions that align with our true goals, not just our immediate impulses. Imagine the power of making choices rooted in confidence rather than fear, in wisdom rather than greed.

3. The Joy of Embracing a Long-Term Vision
In a world obsessed with instant results, there is a profound joy in adopting a long-term vision. Behavioral finance teaches us to rise above the noise, to see beyond the day-to-day fluctuations, and to keep our eyes on the horizon. When we embrace this perspective, we find peace in the journey, knowing that every step, every decision, is leading us closer to our dreams. This shift in mindset transforms investing from a source of stress into a source of joy.

4. Finding Security in Diversification
Imagine the peace of mind that comes from knowing you’re protected, no matter what happens in the market. Diversification offers that security. By spreading our investments across various asset classes, industries, and regions, we reduce our exposure to risk and build a safety net that can weather any storm. This isn’t just a financial strategy—it’s a strategy for life, teaching us the value of balance, resilience, and preparedness.

5. The Empowerment of Automatic Investing
There’s a quiet power in automation. By setting up automatic contributions to our retirement accounts or investment portfolios, we take control of our financial future without getting caught up in the day-to-day distractions. This simple act of consistency not only smooths out the bumps of market volatility but also instills in us a sense of discipline and purpose. We are no longer just investors—we are architects of our own destiny.

6. The Fulfillment of Realistic Goal-Setting
There is immense satisfaction in setting and achieving goals. Behavioral finance encourages us to break down our dreams into realistic, actionable steps. As we reach each milestone, we experience a deep sense of accomplishment that propels us forward. These small victories are not just steps toward our financial goals—they are moments of empowerment, reminding us that we are capable, that we are on the right path.

7. The Peace of Knowing Yourself
Perhaps the most transformative aspect of behavioral finance is the journey of self-discovery it encourages. By understanding our own risk tolerance, our reactions to market ups and downs, and our financial personality, we can craft an investment strategy that truly aligns with who we are. This self-awareness brings peace, confidence, and a deep sense of satisfaction. We’re not just following a plan—we’re following a path that resonates with our deepest values and aspirations.

Investing with Determination
Embracing behavioral finance is more than just a strategy—it’s a way to transform your financial life. It’s about becoming a smarter, more resilient investor, yes, but it’s also about infusing your investment journey with joy, purpose, and passion. By understanding your behaviors, setting meaningful goals, and staying true to your long-term vision, you can unlock a future that’s not just financially secure, but truly fulfilling. This isn’t just about building wealth—it’s about building a life you love.
If you want to chat about your behaviors, and what could be propelling you or holding you back, please reach out and talk to an advisor today! Our mission is to help you Make. Life. Count. and better financial behaviors are a shortcut to a better life.

The information provided in this blog is for educational and informational purposes only and does not constitute investment advice. Investing involves risks, including the potential loss of principal. Before making any investment decisions, you should seek the advice of qualified financial, tax, or legal professionals. Past performance is not indicative of future results. Diversification and automatic investing do not guarantee a profit or protect against loss in declining markets. All investments involve risk, including the potential loss of principal invested. No strategy ensures success or protects against loss.

To better understand the nature and scope of our advisory services and business practices, readers are encouraged to review via the SEC’s website @ www.adviserinfo.sec.gov, the adviser’s Form ADV Disclosure(s), and the Form ADV 2B Brochure Supplement of each LotusGroup Investment Professional (Click on the link, select “Investment Advisor firm,” and type in the firm name. Results will provide you both Part 1 and 2 of the LotusGroup ‘s Form ADV.). 

Additional important disclosures can also be found at http://lgadvisors.redfernmediadevelopment2023.com/disclosures/ by calling us at 720.593.9861, emailing us at info@lgadvisors.com or visiting us at our offices located at 1005 S. Gaylord Street, Denver, CO, 80209.

This blog, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part in any form without our prior written consent.

The post Embracing Behavioral Finance: Unlocking the Path to a Happier, More Successful Investment Journey appeared first on Lotus Group.

Hyperlinks below:

CIO Insights

Public Market Update

Private Market Update

CIO Insights

Chart I – 20 Year Market Returns (Source: Yahoo! Finance)

• Low Inflation and Interest Rates: The U.S. maintained low inflation and interest rates for an extended period, allowing companies to borrow cheaply and leverage their balance sheets. This enabled them to pursue growth opportunities and generate significant profits, while also allowing investors to leverage their investments, driving valuations higher.
• Government Stimulus: The U.S. government injected unprecedented and massive stimulus into the economy during downturns and even during upswings, providing a boost to corporate profitability and market valuations.
• Innovation and Competitive Edge: U.S. companies led the way in innovation across various sectors, including internet development, software as a service, horizontal drilling, fracking, and artificial intelligence, outpacing their global competitors.
• Regulatory Environment: Political activity and favorable regulatory changes significantly contributed to the rise in corporate valuations and profits, especially since the 2000s. Lobbying and political campaign spending resulted in regulatory changes that benefited businesses, particularly in politically influential industries like pharmaceuticals, petroleum, and communications.

Public Market Update – Q2 / 2024

• Q2 returns were dominated by Tech and Communications, while most other sectors were flat to negative.
• Year to date, the Tech titans (Apple, Google, Amazon, etc.) have risen dramatically, while the rest of the remaining S&P Sectors are up about 6%.

Chart II – YTD S&P Sector Performance (Source: LotusGroup)

• Strong Corporate Earnings: Many companies exceeded earnings expectations, driven by resilient consumer demand and effective cost management. The tech sector, in particular, benefited from continued digital transformation trends.

• Federal Reserve Policy: The Federal Reserve maintained a cautious stance on interest rates, signaling a potential pause in rate hikes. This provided a boost to investor confidence, as lower interest rates support higher valuations for equities.

• Economic Indicators: Key economic indicators such as GDP growth and unemployment rates remained favorable. The US economy showed signs of resilience, despite concerns over inflation and geopolitical tensions.

Chart III – LGA Tactical Moderate with Private Composite Since the Start of Most Recent Market Cycle (Source: LotusGroup)

Private Market Update – Q2/2024

Chart IV: The Range of Outcomes is Much wider Across Private Managers that for Public Managers (Source: Blackstone.com)

The information contained herein, including but not limited to research, market valuations, calculations, estimates, and other material obtained from LotusGroup, and other sources, are believed to be reliable.  However, LotusGroup does not warrant its accuracy or completeness.  These materials are provided for informational purposes only and should not be used or construed as an offer to sell or a solicitation of an offer to buy any security.  Past performance is not indicative of future results. 

This blog expresses the views of the author(s) as of the date indicated, and such views are subject to change without notice.  Investment advisory services are offered through LotusGroup Advisors, LLC, a federally registered investment adviser. LotusGroup transacts business only in states where it is appropriately registered, excluded, or exempted from registration requirements. The information contained within is believed to be from reliable sources.  However, its accuracy, completeness, and the opinions based thereon by the author(s) are not guaranteed – no responsibility is assumed for omissions or errors.   The views expressed herein reflect the authors’ judgment now, are subject to change without notice, and may or may not be updated.  Nothing in this document should be construed as investment, tax, financial, accounting, or legal advice. Each prospective investor must make their own evaluation and investigation of any investments considered or of any investment strategies described herein (including the risks and merits thereof), should seek professional advice for their particular circumstances, and should inform themselves as to the tax or other consequences of any investments or services considered or described herein. LotusGroup’s advisory clients will be required to execute an Investment Advisory Agreement and related Account opening documents (collectively, “Agreements”).  If any of the terms or descriptions in this presentation are inconsistent with the terms of the Agreements, such Agreements shall control.  Prospective investors should maintain the financial capability and willingness to accept the risks associated with any investments made, should consult the relevant investment prospectus or legal documents, and should their Advisor Representative before making investment decisions (including but not limited to an examination of the investment objectives, risks, charges, and expenses of any investment product(s) considered).

Extracted performance in this presentation is representative of a subset of investments extracted from a portfolio. Such performance is depicted in this presentation based on accounts that match the following criteria: Tactical 100 model held at Schwab with Moderate Agg risk that includes private investments. LGA employee accounts are excluded from this extracted performance. LGA will provide full performance information promptly upon request. The performance data provided herein is for information and discussion purposes only. The performance of an individual account may vary substantially based on various factors, including, but not limited to, initial account management start date, risk profiles, cash allocation, and investment restrictions, among many others. This information is unaudited. Please refer to an account’s brokerage statement for individual account information. Past performance does not guarantee future results.

 To better understand the nature and scope of our advisory services and business practices, readers are encouraged to review via the SEC’s website @ www.adviserinfo.sec.gov, the adviser’s Form ADV Disclosure(s), and the Form ADV 2B Brochure Supplement of each LotusGroup Investment Professional (Click on the link, select “Investment Advisor firm,” and type in the firm name. Results will provide you both Part 1 and 2 of the LotusGroup ‘s Form ADV.). 

Additional important disclosures can also be found at http://lgadvisors.redfernmediadevelopment2023.com/disclosures/ by calling us at 720.593.9861, emailing us at info@lgadvisors.com or visiting us at our offices located at 1005 S. Gaylord Street, Denver, CO, 80209.

This blog, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part in any form without our prior written consent.

The post Q2 2024 Investment Review – US Equity Market Dominance (and welcome to new Director of Alts > Sam Redman) appeared first on Lotus Group.

You’re sitting at a coffee shop when your phone buzzes with a text message you’ve been nervously awaiting all morning. “Everything is signed. Congratulations!” fills the screen—a windfall event has just occurred.

Perhaps you’ve just sold your company, or a significant investment is finally paying off. In many cases, these events are years in the making. Rarely do these things come as a surprise, yet for many, two words dominate their thoughts next: ‘Now what?’

The ink is dry, and your world is different from what it was just moments ago. You may have no idea what comes next, but how this event impacts you, your friends, your family, and your community is entirely up to you now.

If money is a microphone for your values, then a windfall is your chance to deliver a ‘State of the Union’ to those in your orbit.

The reality is that much of what happens next should have already been decided with planning done before this event. Your financial and life priorities going into the event should have played a factor in the negotiations.

Post-windfall, it’s important to know: do you want to go back to work in another field? What hobbies are you interested in pursuing: mountaineering, golf, travel, or cooking in earnest? Knowing what you want from your life after your company sale is just as important as knowing how to pay for it. Those conversations begin months or even years before any business sale, as compensation structures, terms, and strategies to improve your company’s attractiveness to buyers are pillars of our wealth management offerings.

The biggest question, and one only you can answer: how much do you need for your dream lifestyle? That’s a question for your financial plan and loved ones. No one can answer “How much is enough?” without knowing what you want. That process can take years and isn’t something you determine after a sale or after a prospective buyer appears. Knowing your goals is fundamental to determining if a sale makes sense, regardless of the number being offered.

While every situation is different, one of the highest priorities, when a windfall is coming, should be consulting your advisor and tax professional beforehand.

I spoke with Kelly Rangel, CPA, with Calvetti Ferguson in Houston, TX, who has worked with dozens of clients through company sales and executing stock options. She has a few tips and questions for you to consider if you think you could be looking at a windfall in the coming year.

Kelly and her team consider all tax tools available before a liquidity event. It’s situation-specific, but their approach even considers halting the generation of ordinary taxable income that would be subject to the highest marginal tax rate, currently 37%. Additionally, from an estate tax perspective, if the value of the shares is expected to eventually push a taxpayer’s estate over the lifetime exemption (currently about $13 million per person), her clients may consider gifting the shares outside their estate before the transaction to a trust with their children or spouse as beneficiaries. The critical value to understand in this case is how much control the owner wants to keep as they manage the potential 40% estate tax that could apply down the road.

In summary, it’s crucial that your entire financial team, especially your advisor and tax professional align on a solid strategy before a liquidity event occurs.

At LotusGroup, it’s our job to ensure the right conversations are happening from beginning to end. We believe that to ‘Make Life Count,’ you should make every decision count toward your ultimate goals.

The post LGA Advisor Insights – Q2 2024 appeared first on Lotus Group.

Hyperlinks below:

CIO Insights

Public Market Update

Private Market Update

CIO Insights

Chart I – Returns from Magnificent Seven Stocks (Source: Yahoo! Finance)

Public Market Update – Q1 / 2024

I hope everyone has had a great start to the year!

• Stronger than expected inflation.
• 2024 rate cut expectations dropping from five drops (starting in March) to three drops (expected to begin in June).
• Increasingly high stock market valuations.

Chart II – LGA Tactical Moderate with Private Composite Q1/2024 (Source: LotusGroup)

Private Market Update – Q1/2024

LotusGroup Site Visit to Partner Distillery

The information contained herein, including but not limited to research, market valuations, calculations, estimates, and other material obtained from LotusGroup, and other sources, are believed to be reliable.  However, LotusGroup does not warrant its accuracy or completeness.  These materials are provided for informational purposes only and should not be used or construed as an offer to sell or a solicitation of an offer to buy any security.  Past performance is not indicative of future results. 

This blog expresses the views of the author(s) as of the date indicated, and such views are subject to change without notice.  Investment advisory services are offered through LotusGroup Advisors, LLC, a federally registered investment adviser. LotusGroup transacts business only in states where it is appropriately registered, excluded, or exempted from registration requirements. The information contained within is believed to be from reliable sources.  However, its accuracy, completeness, and the opinions based thereon by the author(s) are not guaranteed – no responsibility is assumed for omissions or errors.   The views expressed herein reflect the authors’ judgment now, are subject to change without notice, and may or may not be updated.  Nothing in this document should be construed as investment, tax, financial, accounting, or legal advice. Each prospective investor must make their own evaluation and investigation of any investments considered or of any investment strategies described herein (including the risks and merits thereof), should seek professional advice for their particular circumstances, and should inform themselves as to the tax or other consequences of any investments or services considered or described herein. LotusGroup’s advisory clients will be required to execute an Investment Advisory Agreement and related Account opening documents (collectively, “Agreements”).  If any of the terms or descriptions in this presentation are inconsistent with the terms of the Agreements, such Agreements shall control.  Prospective investors should maintain the financial capability and willingness to accept the risks associated with any investments made, should consult the relevant investment prospectus or legal documents, and should their Advisor Representative before making investment decisions (including but not limited to an examination of the investment objectives, risks, charges, and expenses of any investment product(s) considered).

Extracted performance in this presentation is representative of a subset of investments extracted from a portfolio. Such performance is depicted in this presentation based on accounts that match the following criteria: Tactical 100 model held at Schwab with Moderate Agg risk that includes private investments. LGA employee accounts are excluded from this extracted performance. LGA will provide full performance information promptly upon request. The performance data provided herein is for information and discussion purposes only. The performance of an individual account may vary substantially based on various factors, including, but not limited to, initial account management start date, risk profiles, cash allocation, and investment restrictions, among many others. This information is unaudited. Please refer to an account’s brokerage statement for individual account information. Past performance does not guarantee future results.

 To better understand the nature and scope of our advisory services and business practices, readers are encouraged to review via the SEC’s website @ www.adviserinfo.sec.gov, the adviser’s Form ADV Disclosure(s), and the Form ADV 2B Brochure Supplement of each LotusGroup Investment Professional (Click on the link, select “Investment Advisor firm,” and type in the firm name. Results will provide you both Part 1 and 2 of the LotusGroup ‘s Form ADV.). 

Additional important disclosures can also be found at http://lgadvisors.redfernmediadevelopment2023.com/disclosures/ by calling us at 720.593.9861, emailing us at info@lgadvisors.com or visiting us at our offices located at 1005 S. Gaylord Street, Denver, CO, 80209.

This blog, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part in any form without our prior written consent.

The post Q1 2024 Investment Review – Continued Gains But Leadership Divergence appeared first on Lotus Group.

Hyperlinks below:

CIO Insights

Public Market Update

Private Market Update

CIO Insights

• US equity valuations indicate a reasonably high likelihood of either muted returns in the decade ahead or a one-time major market sell-off.
• Global equity valuations seem to indicate a reversal from US outperformance to global outperformance in the mid-term future, with the catalyst for such event currently TBD.
• Fixed income has resurfaced as an investable asset class in the 5%+ yielding range, after nearly a decade of very low returns.
• High-flier private alts in the venture capital, private equity and real estate equity areas have been suffering from higher rates.
• LGA-type private alts in the specialty finance and credit spaces have been benefiting from higher rates.

Secular Market Returns and Starting Valuation Metric Shiller PE from 1929 – 2021

Public Market Update – Q4/2023, FY/2023, and Two-Year Results

Chart I – US Equity Asset Class Performance Q4/2023 (Source: LotusGroup)

Chart II – LotusGroup Tactical Portfolio Adjustments During Year 2023

Chart III – LGA Tactical Moderate with Private Composite 2024 (Source: LotusGroup)

Chart IV- LGA Global Moderate with Private Composite 2024(Source: LotusGroup)

• Scenario 1 (highest likelihood): The market continues to chop sideways, and we adjust portfolio exposures up (75-100% beta) and down (0-50% beta) according to our models.
• Scenario 2 (possible): Equity markets breakout to new bullish highs and we participate at 75% beta while 25% of our allocation remains in treasuries yielding 5%+ right now.
• Scenario 3 (possible): A major bear market appears; in which case we will once again protect portfolios with 0-50% beta positioning based on the client’s chosen strategy.

Private Market Update – Q4/2023

1. Senior secured credit facility to specialized lenders backed by Telecom Companies (Sony, ATT, Verizon, etc.).
2. 75% of the factored invoices are covered by an A- insurance policy written by Allianz (the other 25% are publicly traded TelCo’s)
3. SOFR + ~9.50% = Approx. 14.8% current total yield as of this writing
4. 1st loss tranche on our investment

The information contained herein, including but not limited to research, market valuations, calculations, estimates, and other material obtained from LotusGroup, and other sources, are believed to be reliable.  However, LotusGroup does not warrant its accuracy or completeness.  These materials are provided for informational purposes only and should not be used or construed as an offer to sell or a solicitation of an offer to buy any security.  Past performance is not indicative of future results. 

This blog expresses the views of the author(s) as of the date indicated, and such views are subject to change without notice.  Investment advisory services are offered through LotusGroup Advisors, LLC, a federally registered investment adviser. LotusGroup transacts business only in states where it is appropriately registered, excluded, or exempted from registration requirements. The information contained within is believed to be from reliable sources.  However, its accuracy, completeness, and the opinions based thereon by the author(s) are not guaranteed – no responsibility is assumed for omissions or errors.   The views expressed herein reflect the authors’ judgment now, are subject to change without notice, and may or may not be updated.  Nothing in this document should be construed as investment, tax, financial, accounting, or legal advice. Each prospective investor must make their own evaluation and investigation of any investments considered or of any investment strategies described herein (including the risks and merits thereof), should seek professional advice for their particular circumstances, and should inform themselves as to the tax or other consequences of any investments or services considered or described herein. LotusGroup’s advisory clients will be required to execute an Investment Advisory Agreement and related Account opening documents (collectively, “Agreements”).  If any of the terms or descriptions in this presentation are inconsistent with the terms of the Agreements, such Agreements shall control.  Prospective investors should maintain the financial capability and willingness to accept the risks associated with any investments made, should consult the relevant investment prospectus or legal documents, and should their Advisor Representative before making investment decisions (including but not limited to an examination of the investment objectives, risks, charges, and expenses of any investment product(s) considered).

Extracted performance in this presentation is representative of a subset of investments extracted from a portfolio. Such performance is depicted in this presentation based on accounts that match the following criteria: Tactical 100 model held at TD Ameritrade with Moderate Agg risk that includes private investments. LGA employee accounts are excluded from this extracted performance. LGA will provide full performance information promptly upon request. The performance data provided herein is for information and discussion purposes only. The performance of an individual account may vary substantially based on various factors, including, but not limited to, initial account management start date, risk profiles, cash allocation, and investment restrictions, among many others. This information is unaudited. Please refer to an account’s brokerage statement for individual account information. Past performance does not guarantee future results.

 To better understand the nature and scope of our advisory services and business practices, readers are encouraged to review via the SEC’s website @ www.adviserinfo.sec.gov, the adviser’s Form ADV Disclosure(s), and the Form ADV 2B Brochure Supplement of each LotusGroup Investment Professional (Click on the link, select “Investment Advisor firm,” and type in the firm name. Results will provide you both Part 1 and 2 of the LotusGroup ‘s Form ADV.). 

Additional important disclosures can also be found at http://lgadvisors.redfernmediadevelopment2023.com/disclosures/ by calling us at 720.593.9861, emailing us at info@lgadvisors.com or visiting us at our offices located at 1005 S. Gaylord Street, Denver, CO, 80209.

This blog, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part in any form without our prior written consent.

The post 2023 Year End Investment Review – The Pause that Refreshes appeared first on Lotus Group.

Hyperlinks below:

CIO Insights

Public Market Update

Private Market Update

CIO Insights

Public Market Update – Q3/2023

Chart I – US Equity Asset Class Performance Q3/2023 (Source: LotusGroup)

Chart II – LGA Tactical Moderate with Private Composite 13/2023 (Source: LotusGroup)

Chart III – LGA Tactical Moderate with Private Composite YTD 2023 (Source: LotusGroup)

Private Market Update – Q3/2023

1. Investment into a diversified portfolio of high-profile patient infringement cases
2. Cases are sourced by a leading litigation finance originator
3. Target IRRS of 25%+
4. The downside is capped due to an insurance policy on investment principal.

The information contained herein, including but not limited to research, market valuations, calculations, estimates, and other material obtained from LotusGroup, and other sources, are believed to be reliable.  However, LotusGroup does not warrant its accuracy or completeness.  These materials are provided for informational purposes only and should not be used or construed as an offer to sell or a solicitation of an offer to buy any security.  Past performance is not indicative of future results. 

This blog expresses the views of the author(s) as of the date indicated, and such views are subject to change without notice.  Investment advisory services are offered through LotusGroup Advisors, LLC, a federally registered investment adviser. LotusGroup transacts business only in states where it is appropriately registered, excluded, or exempted from registration requirements. The information contained within is believed to be from reliable sources.  However, its accuracy, completeness, and the opinions based thereon by the author(s) are not guaranteed – no responsibility is assumed for omissions or errors.   The views expressed herein reflect the authors’ judgment now, are subject to change without notice, and may or may not be updated.  Nothing in this document should be construed as investment, tax, financial, accounting, or legal advice. Each prospective investor must make their own evaluation and investigation of any investments considered or of any investment strategies described herein (including the risks and merits thereof), should seek professional advice for their particular circumstances, and should inform themselves as to the tax or other consequences of any investments or services considered or described herein. LotusGroup’s advisory clients will be required to execute an Investment Advisory Agreement and related Account opening documents (collectively, “Agreements”).  If any of the terms or descriptions in this presentation are inconsistent with the terms of the Agreements, such Agreements shall control.  Prospective investors should maintain the financial capability and willingness to accept the risks associated with any investments made, should consult the relevant investment prospectus or legal documents, and should their Advisor Representative before making investment decisions (including but not limited to an examination of the investment objectives, risks, charges, and expenses of any investment product(s) considered).

Extracted performance in this presentation is representative of a subset of investments extracted from a portfolio. Such performance is depicted in this presentation based on accounts that match the following criteria: Tactical 100 model held at TD Ameritrade with Moderate Agg risk that includes private investments. LGA employee accounts are excluded from this extracted performance. LGA will provide full performance information promptly upon request. The performance data provided herein is for information and discussion purposes only. The performance of an individual account may vary substantially based on various factors, including, but not limited to, initial account management start date, risk profiles, cash allocation, and investment restrictions, among many others. This information is unaudited. Please refer to an account’s brokerage statement for individual account information. Past performance does not guarantee future results.

 To better understand the nature and scope of our advisory services and business practices, readers are encouraged to review via the SEC’s website @ www.adviserinfo.sec.gov, the adviser’s Form ADV Disclosure(s), and the Form ADV 2B Brochure Supplement of each LotusGroup Investment Professional (Click on the link, select “Investment Advisor firm,” and type in the firm name. Results will provide you both Part 1 and 2 of the LotusGroup ‘s Form ADV.). 

Additional important disclosures can also be found at http://lgadvisors.redfernmediadevelopment2023.com/disclosures/ by calling us at 720.593.9861, emailing us at info@lgadvisors.com or visiting us at our offices located at 1005 S. Gaylord Street, Denver, CO, 80209.

This blog, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part in any form without our prior written consent.

The post Q3 2023 Investment Review – An Autumn Story > Letting go of the old and ushering in the new appeared first on Lotus Group.