Brad Stark is a Principal and Co-Founder of Mission Wealth which has been recognized as one of America’s “Top Wealth Managers” for the past nine years. Brad is a member of the firm’s Executive Management and Investment Committees and is responsible for the firm’s client fulfillment process. It is his visionary excellence in the financial industry that drives the strategic direction of the firm.
Brad graduated from University of California, Santa Barbara with a Bachelor of Arts in Business Economics and later completed a Masters of Science in Financial Planning from College of Financial Planning. After completing his undergraduate education, John Hancock, one of the oldest and largest financial firms in the nation, recruited him into the financial industry. He was later asked to join the company’s high net worth division, “Signature Financial Network,” where he went on the “lecture circuit” talking about estate and investment planning. In 2000, Brad co-founded Mission Wealth, a firm built on the foundation of providing comprehensive, objective and independent advice to high net worth families. With twenty years of experience, Brad was named by the Pacific Coast Business Times as a “Top 40 Under 40”business leader in 2004 and has been recognized annually in “Who’s Who In Banking and Finance” edition since 2005. In 2011, Brad was ranked as one of America’s “Top 100 B/D Advisors” by Registered Rep magazine.
Since 1993, Brad has been a sought-after speaker on various financial topics for both public and private organizations, including: Northrop Grumman, Hughes Aircraft, McDonnell Douglas, the County of Los Angeles, Lockheed Martin, University of Southern California, Screen Actors Guild and the Charles Schwab 2007 Leadership Meeting. Brad has also been an adjunct professor for the California State University system teaching corporate finance at the California State University Channel Islands campus.
Born and raised in Los Angeles, Brad and his wife, Tammy, have enjoyed living in Westlake Village for the past fifteen years. His interests include travel, golf, sports and music.
BA, Business Economics, University of California, Santa Barbara
The only way to avoid capital gains treatment on a real estate rental / investment property sale is by doing a 1031 exchange. The exchange avoids immediate taxation but technically just “defers” it down the road.
Exchanging a rental into your primary residence is a prohibited transaction. You can’t 1031 exchange into any personal or related personal use assets.
Some people exchange one rental for another and then convert that rental down the road into personal use and that is ok. There is no true bright line test or rule to this. At minimum, you should have at least two years’ worth of tax returns showing the replacement property was placed into service as a rental in my opinion.
Also realize that “intent” is an important element. According to Jack Hackett at Farr Law, he says, “The replacement property must be owned for at least 24 months immediately after the exchange (the qualifying period) and in each of the two 12-month periods in the qualifying period: (1) the taxpayer must rent the replacement property to another person at a fair rental for 14 days or more; and (2) the taxpayer’s personal use of the replacement property must not exceed the greater of 14 days or 10% of the number of days during the 12-month period that the dwelling unit is rented at fair rental. It can be rented to a family member as a principal residence so long as market rent is paid.”
The longer you rent it, the safer the conversion to personal use. The shorter the period, the more it can be questioned and if you lose, you owe all the taxes on the transaction. Make sure your CPA signs off on this transaction and your actions.
Rebalancing is a risk tool. When you establish an asset allocation that meets your objectives then rebalancing will force you to add risk when prices are low and will force you to trim back risk when prices have outpaced other assets within your diversified portfolio.
Without rebalancing your portfolio will continue to get concentrated in risk assets and will force your hand at some point in time to make a decision on when to reduce risk. That also makes the assumption that your risk assets always go up and never go down. People that did not rebalance the portfolios in the late 90s learned a hard lesson. So did those that got overly concentrated in real estate prior to 2007.
From your required minimum distributions you can send up to 100% of the RMD or to a max $100,000, whichever is lower, directly to charity. Writing a check is one of the preferred methods. Keep in mind that you will receive a 1099-R that does not show that the money went to charity. You have to make that adjustment when you report your taxes on your 1040.
Based upon your profile, hiring a professional adviser to assist you with the asset allocation and implementation to go along with financial planning seems like a worthwhile venture since you are not going to do this on your own. I would suggest that you look for independent Registered Investment Advisors that cater to the level of assets and service model that you are looking for. I would also tend to gravitate towards certified financial planners as a background. You can find these people through the CFP online referral website.
While preferred stock has "stock" in its name it is often times and realistically an alternative to a traditional Bond issuance by the company. And preferred stock should be looked at as a "bond" vs. stock. Be careful in this area, unless the income floats with interest rates, you can get locked into what is in essence a tremendously long fixed bond that will react VERY unfavorably to higher interest rates (I.e. duration risk).