Mountain Vista Wealth Management

Guiding from Valley to Peak

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Self-Employed Retirement Plans

Along with wages and healthcare, the ability to participate in a retirement plan, usually a 401(k), is a key component of a company’s employee compensation package.  410(k) plans offer employees the ability to defer the taxation of contributions until the money disbursed from the 401(k).  The employee benefits from a reduction in taxable income in the year of contribution, as well as the compound growth over time of the amount that would have been paid to Uncle Sam.  Furthermore, about half of employers offering 401(k) plans match employee contributions, with the average being about 3.5% of salary.  After paying down expensive debt and building a safety fund, maximizing contributions to a 401k plan should be high on any savers “to do” list.

401(k) plans are a great retirement savings vehicle for employees of large businesses, but what do you do if you are self-employed or an independent contractor?  Fortunately, there are low cost, easy to administer options for the self-employed as well.  [Read more…] about Self-Employed Retirement Plans

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Q2 2020 Investment letter


INTRODUCTION

I hope this letter finds you and your family safe and healthy.

From a social perspective, these past few months have been difficult. The disruption, while necessary, has altered many daily pre-COVID-19 routines. Notably absent from my routine is entertainment, particularly sports.  If you did not know, I am a basketball fan. Growing up, following the latest developments in the NBA was a daily ritual. I could tell you who led in scoring, rebounds, assists and blocks. I enjoyed watching the greatest players lace them up and compete against each other. Some of the most exciting games in NBA history happened during the 1990s.

During that decade the New York Knicks were a dominate force. If you are a New York Knicks fan, then you are familiar with Reggie Miller of the Indiana Pacers. Playing in Madison Square Garden, home of the NY Knicks, seemed to bring out the best in players. During the 1995 playoffs, Reggie, singlehandedly, scored 8 points in 9 seconds. Yes, 8 points in 9 seconds! He hit two free throws and two 3-point shots (one off of an in-bounds steal) to seal the game. I remember watching the game in awe. It is one of the greatest comebacks in NBA history. 25 years later, it is still one of the legendary moments in sports.
[Read more…] about Q2 2020 Investment letter

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My Journey To Becoming A Financial Advisor:
Jonathan Heagle

By Jonathan Heagle, CFA®

Most financial advisors begin their career working at a broker-dealer, cold-calling leads, and pitching their products. To survive in the industry, let alone be successful, the ability to attract clients is the single most important characteristic of a young advisor. This is unfortunate, because expertise and the quality of client service are of secondary importance. As an outsider to the private wealth industry, I saw the various contradictions and conflicts of interest that are pervasive. I thought that there must be a better way. This ultimately led to the creation of Mountain Vista Wealth Management, where the focus is on competence and serving the clients’ needs first.

[Read more…] about My Journey To Becoming A Financial Advisor:
Jonathan Heagle

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Q1 2020 Investment Letter

INTRODUCTION

“Your success in investing will depend in part on your character and guts and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too, shall pass.” – Jack Bogle

Before delving into the dramatic market moves that we have experienced over the last two months, we would first like to acknowledge the significant toll that the COVID-19 virus has inflicted upon our lives. At the time of this note, the United States’ death toll has just passed China and appears poised to increase dramatically in the coming weeks and months.

The most fortunate of us have only lost money and had our daily routines disrupted. For those that have lost their jobs, health or loved ones, we are truly sorry and urge you to reach out to us if there is any way that we can help you through this difficult period. [Read more…] about Q1 2020 Investment Letter

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Q4 2019 Investment Letter

INTRODUCTION

“Successful investing is about managing risk, not avoiding it.” – Benjamin Graham

A year ago, we were contemplating whether the economy was heading towards recession, driven by tit-for-tat tariff increases resulting from the U.S. and China’s trade negotiations. Many investors were questioning if the bull market that began in 2009 was over and if the 20% correction in the S&P 500 was the start of something much worse in 2019.

We now know that it was ultimately a buying opportunity and that the market was far too pessimistic about the economy. We also know that it is important to ride out downturns in the market and even increase our exposure to equities when the market goes “on sale”. After bottoming on Christmas Eve day, the SPY (S&P 500 ETF) went on to return almost 40% through the end of 2019. [Read more…] about Q4 2019 Investment Letter