All Posts Tagged: investing

Top 3 financial tips for entrepreneurs in 2019

Kristin Nelson
Wealth Management Strategy

Already struggling to keep your New Year’s resolutions? You’re not alone. By February, some 80% of us abandon our resolutions.

Unlike intentions to change your diet or stick to a regular exercise program, a resolution to get your financial life in shape can be a single point-in-time commitment that maintains its own momentum the rest of the year.

Here are my three top tips for entrepreneurs and businesses in the year ahead:

1. Separate the business from the personal. Often called the “golden rule” of financial planning for business owners and entrepreneurs, it can be challenging if you’re time starved.

However, separating your business from your personal finance is one of the best gifts you can give yourself. Think about it. When your personal and business finances are commingled, you’re opening yourself up to risk in both areas which can play into the overall integrity of your business—especially if you’re planning to transition out or sell any time soon.

Another key tenet—don’t forget to pay yourself. This goes beyond your salary and includes making your personal finances and retirement goals a priority. We often hear from our clients, “my business is my retirement plan,” but there are many pitfalls associated with this approach. Resolve to take stock of where you are, determine your long-term goals (both personal and professional) and commit to building your long-term financial and succession plans.

2. Invest for the road ahead. As you save and invest for the future, be sure that you’re fully diversified (e.g., assets not tied up in any single investment, including your business) and prepared to ride out financial bumps in the road or weather challenging market conditions. With December’s attention-grabbing headlines on market volatility, investors have been at-risk of buying into short-term thinking. However, as our Global Investment Management team reminds us, context is everything. It’s important to remember that 2017 was an aberration of positive monthly performance with record-breaking low volatility.

For the 13 months ending January 2018, the Dow climbed steadily upward without experiencing the typical bumps and declines which are a natural occurrence historically. After a steadily positive market year like that, many investors found the more normal volatility of 2018 more than a little jarring. Though unpleasant, short-term volatility is a normal part of investing and can offer opportunities for additional investment and tax-loss harvesting. By taking a long-term view and strategy you can avoid making hype-based decisions– whether you’re a hands-on investor, collaborate with an advisor, or rely on professionals to manage your portfolio.

3. Drive positive change. It’s a changing world and more investors are using their money to help create a positive future and still generate strong financial returns. In fact, investors who gravitated toward sustainable companies have beaten the broader market for the last three years, according to Barron’s. Are you ready to incorporate a sustainable and responsible investing (SRI) or what we call purpose investing approach into your portfolio?

You may also want to consider building your philanthropic goals into your overall financial plan this year. Working with a strategic advisor can be helpful in surfacing the areas where you most want to make a difference, as well as offer guidance on a programmatic approach whether you’re an individual, family offices, or private foundation. Taking advantage of tax-smart investment vehicles such as donor-advised funds are another critical component.

To get more financial tips or to learn more about how we can help you reach your financial aspirations, please contact us.

For direct access to investment insights, market updates, and perspectives on financial topics from Bank of the West and BNP Paribas leaders, download the Voice of Wealth app, available at the Apple iTunes and Google Play stores.

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Talking climate change & investing with The Nature Conservancy’s CEO

Jenny Flores
Posted by Jenny Flores
Corporate Social Responsibility
Jenny Flores and Mark Tercek in the Nasdaq studio in San Francisco

Investors must push companies and governments to make commitments to environmental goals, he said, noting that they will listen to “smart investors.”

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Investment Insights: Investors go cold Turkey

Wade Balliet
Posted by Wade Balliet
Investment Strategy
Portside at Istanbul, with ships near the coast and large, historic mosue visible in the distance.

The Turkish lira is one of the worst-performing currencies over the last two years, declining over 40% during the period, according to Bloomberg data.

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The 2018 Millennial Study: What we found out

Newsroom
Posted by Newsroom
Corporate News
Young woman lounging on a couch in a sunny living room as she checks her phone.

Millennial homeowners may be rushing into a home-buying decision without asking all the right questions.

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