Hello, and welcome to this month’s issue of my newsletter, which I hope will give you some financial food for thought as you enjoy your December.
Above, you’ll find the most recent interview from my weekly podcast and video show, Margaritas with Marguerita! Don’t miss our conversation, and be sure to listen to our podcasts on MargueritaChengRadio.com, and watch all of our TV episodes: MargueritaCheng.tv
Please scroll down for information on some of the articles I am quoted in and have written to national media outlets. Also, check out the chapters of my new book,Diary of a CFP® Pro, which are free to read now! Stay tuned for the printed version, coming in 2023!
In this week’s podcast: Meet Kleo Curry, CFP®, Chartered Retirement Planning CounselorSM and vp Wealth Management at the Potomac Wealth Group, UBS Financial Services, Inc. She teaches us about “Women on Purpose — Money talk guides to commonly avoided conversations.” See more here.
Last week: We helped parents prep to pay for college with our interview featuring Brad Baldridge, college funding specialist Brad Baldridge explains, “The Top 10 College Planning Mistakes — and how to avoid them!” Watch and listen (above)!
Earlier this month: You met Akeiva Ellis, MSFP, CPA/PFS, CFP®, ChSNC®, co-founder of The Bemused.Pictured right. She blew our socks off during our interview, making it clear why she was recognized by Financial Planning magazine as an industry Rising Star and was named to Investment News’ class of 40 under 40 — the youngest person to grace this list in its 8-year history. Click here to watch and listen to Episode 72.
We also introduced you to truly amazing Elysabeth Alfano, CEO, VegTech™ Invest, who has created a completely new impact asset class: plant-based innovation and alternative in the capital markets. Elysabeth, pictured right, tells us all about it!
And we kicked off December with an interview with Lindsey Swanson, founder of Stripper Financial Planning. Learn how she is on a mission to serve the underserved. And be sure to read her Guest Blog, Let’s Talk Safety Nets.
ThinkAdvisor, Dec. 29, 2022 — In today’s article, reporter Jeff Berman explains, “For the latest Advisors’ Advice, ThinkAdvisor asked advisors to tell us how they became financial advisors; what college degrees, training and certifications they have; and what their first job title was. We also asked them what kind of training or certifications they would recommend to a new advisor to set them up for success, along with 12 takeaways for wannabe financial advisors.”
Yahoo Finance, Dec. 27, 2022 — Marguerita Cheng, CFP® Pro is featured in today’s article by Yahoo Finance Senior Columnist Kerry Hannon who writes: “As 2022 nears a wrap, a trend is emerging that’s expected to gain traction next year — actively managed investment strategies — along with a custom strategy for people who like the idea of investing in a basket of companies, but want more control of what they invest in. Assets in direct indexing are expected to climb to $825 billion by 2026, from roughly $462 billion now, according to Cerulli Associates, a global research and consulting firm, based in Boston, Mass. That tops growth forecasts for exchange-traded funds, mutual funds and separately managed accounts.”
Here’s what’s behind the developing shift: “Many analysts foresee loads of volatility for stocks in 2023, particularly early in the year, and an overall flat return scenario for the entire year, given the combo of still-high inflation, Fed rate hikes, and a potential recession. And some folks want more control.”
Marguerita explains: Direct-indexing enters the mainstream. Direct indexing lets investors cherry-pick which stocks to buy in a benchmark index instead of owning a fund that tracks a specific gauge like the S&P 500. A hands-on approach allows for you to adjust for changing market conditions in a turn-on-the-dime manner, something that is not in the cards for investors in passively managed retirement portfolios that mimic the ups and downs of whichever index is being tracked.
AARP, Dec. 19, 2022 — Marguerita Cheng, CFP® Pro, is featured in today’s article by Bruce Horovitz who writes, “With 2023 just days away, could there be a more confusing time for investors? On one hand, the discussion is all about the upcoming recession — but is there actually going to be one? On the other hand, the discussion is also about the inflation monster, which has seriously impacted all of our wallets. But are there signs that the monster is finally getting tamed, or is that just an illusion?”
Marguerita says: Create a business owner retirement plan. “More than 54 percent of America’s small business owners are age 50 and over, according to the Service Corps of Retired Executives. Those who are self-employed can still have access to a retirement plan although many don’t realize it. The benefit to them is additional savings for retirement and tax savings either today or in the future. For those who have employees, the options include Simple IRA, SEP IRA or 401(k).”
Bloomberg: “Investing Lessons From 2022 to Boost Your Portfolio Next Year”
Dec. 19, 2022 — Marguerita Cheng, CFP® Pro, is featured in today’s article by Charlie Wells and Claire Ballentine who asked advisers and analysts to look back on their best and worst calls of the year — and offer ideas on ways retail investors should position themselves heading for 2023.
“To say the past year has been a disappointment for retail investors would be an understatement,” the reporters write. “Many were drawn into the markets by the pandemic-era exuberance that fueled by low interest rates: Stocks surged, crypto boomed and markets popped. And then 2022 landed with a thud.”
Not only that, but “consumers also struggled with the Russia’s war in Ukraine, persistent inflation, rising interest rates and fears of a recession shifted the landscape, with the S&P down nearly 20% and the Nasdaq slumping more than 30% as the year comes to a close. Bitcoin has been even worse, plunging more than 60%.”
The questions to Marguerita:
What did you get wrong this year? “I don’t enjoy the car-buying process. I didn’t want to deal with drama and high dealer markups so I missed the opportunity for the tax credit for an electric vehicle.”
What did you get right? “I helped clients satisfy required minimum distribution requirements prior to Russia invading Ukraine. I told clients that if they didn’t need the funds right away, to deposit them in the savings account. It’s true that I would not be liquidating stocks, stock mutual funds or stock ETFs in the short term. However, this gave clients tremendous peace of mind.”
How are you telling clients to position themselves for 2023? “I’m encouraging tried-and-true strategies such as diversification and dollar-cost averaging. I’m also encouraging clients to take advantage of tax diversification Roth accounts and taxable accounts.”
What is the single best opportunity you see in the year ahead? “Some people think they need wealth to invest, but they need to invest to build wealth. My son received his first paycheck from his job as a research fellow in September 2022. He started contributing $500 per month to a Roth IRA. Personally, I’m very excited about plant-based innovation, next-gen healthcare and smart-grid infrastructure.”
Time: “A Recession Is Widely Expected. Here’s How to Prepare”
Dec. 10, 2022 — Marguerita Cheng, CFP® Pro is featured in today’s article by ANNA-LOUISE JACKSON who writes: “Speculation about a potential recession has plagued much of 2022, and is now seen as all but inevitable in 2023. Asset management giant BlackRock recently wrote in its 2023 Global Outlook report that a recession is ‘foretold,’ while in December, JPMorgan Chase CEO Jamie Dimon reiterated a prediction that a recession is coming in 2023. A survey published by business-focused think tank The Conference Board in October found that 98% of CEOs were preparing for a U.S. recession in the next 12 to 18 months.”
Prioritize paying off high-interest debt: Shoring up your finances also means tackling debt. “The first thing I would tell people to do is to pay down variable rate debt, like credit card debt,” recommends Marguerita Cheng, a certified financial planner and the founder and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland. Be sure to check the interest rate your lender is charging you and have a strategy for paying off debt, even if it takes time. Starting that process now will help you to build up your cash reserves—which will free you up to do other things, like investing in financial markets, Cheng says. The fate of President Joe Biden’s student loan forgiveness program is still up in the air, though borrowers have received another extension on student loan payments into 2023.
Update your résumé: Layoffs and cost-cutting measures are already starting to sweep through the tech and media sectors, which could be a bad sign for other industries. A spike in unemployment occurs during recessions and though you may not be able to escape a layoff, you can be prepared. If you have some extra cash, take advantage of professional development opportunities through your employer or via continuing education or certification programs, Cheng says. “Make yourself more valuable to your employer and improve your skills.”
Get creative about saving: Think creatively about other ways to save more money. For example, evaluating your insurance options to make sure you have the best option for your personal circumstances could mean the difference of several hundred dollars each year, Cheng says. Consider other ways to earn more money—be it asking for a raise or adding another revenue stream through a side hustle. Now is a good time to evaluate your entire financial picture, ahead of a recession, so you’re not caught by surprise. These things don’t last forever, so making sure you’re prepared is vitally important. “Just be proactive.”
Chief magazine features Marguerita Cheng: “Can Women Leaders’ Perceived ‘Flaws’ Be Their Secret Weapons During a Crisis?”
December 6, 2022 — When Marguerita Cheng first started out in finance years ago, her superiors gave her some very direct advice.
“I had leaders tell me I’m not cut out for this, I spend too much time building relationships and asking too many questions. I had people say that I wasn’t aggressive enough, that I didn’t have a backbone, that I needed to focus on sales,” recalls Cheng, Founder and CEO at Blue Ocean Global Wealth.
As a financial advisor in a competitive eat-what-you-kill industry, Cheng knew the score. She also knew her own strengths, and so she faced a conformity double-bind familiar to many women in corporate America, and in particular to women of color like Cheng. Refuse to adapt to a male-dominated corporate culture, and your differences may be a liability that costs you a promotion. Drop the focus on collaboration, adopt a more competitive, assertive, and stereotypically masculine approach, and risk being perceived as too “aggressive” or inauthentic.
Despite the pushback, Cheng had confidence in her leadership potential. She also knew her power.
CNBC: “‘A lot of people are going to see less money in their pocket.’ Here are must-know tax changes for 2022”
December 2, 2022 — In today’s article by Kate Dore, CFP®, we learn, “After another year of tax law changes, there are significant updates for the 2022 season, with the possibility of a smaller refund or bigger bill for many taxpayers, experts say. With many Americans facing reduced tax breaks, it’s important to be proactive with year-end planning before the calendar winds down.”
Here are some of the biggest changes taxpayers need to know, according to financial experts including Marguerita Cheng, CFP® Pro, who says: “You won’t get a charitable tax break in 2022 if you don’t itemize deductions on your return.”
Here’s why: Congress gave charities a boost in 2021 by allowing single donors to claim a deduction for up to $300 for cash donations or $600 for married couples filing together, regardless of whether you itemize, said Cheng, who also is part of CNBC’s Financial Advisor Council.
CNBC: “Tax ‘refunds may be smaller in 2023,’ warns IRS. Here’s why”
December 1, 2022 — “If you’re expecting a tax refund in 2023, it may be smaller than this year’s payment, according to the IRS,” writes Kate Dore, CFP® in today’s article on CNBC. “Typically, you get a federal refund when you’ve overpaid yearly taxes or withheld more than the amount you owe.”
Kate explains: “Your annual balance is based on taxable income, calculated by subtracting the greater of the standard or itemized deductions from adjusted gross income. Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022.”
In this week’s podcast: Meet Kleo Curry, CFP®, 
We also introduced you to truly amazing 
ThinkAdvisor, Dec. 29, 2022
AARP, Dec. 19, 2022
Bloomberg: “Investing Lessons From 2022 to Boost Your Portfolio Next Year”
Time: “A Recession Is Widely Expected. Here’s How to Prepare”
Chief magazine features Marguerita Cheng: “Can Women Leaders’ Perceived ‘Flaws’ Be Their Secret Weapons During a Crisis?” 
As a financial advisor in a competitive eat-what-you-kill industry, Cheng knew the score. She also knew her own strengths, and so she faced a conformity double-bind familiar to many women in corporate America, and in particular to women of color like Cheng. Refuse to adapt to a male-dominated corporate culture, and your differences may be a liability that costs you a promotion. Drop the focus on collaboration, adopt a more competitive, assertive, and stereotypically masculine approach, and risk being perceived as too “aggressive” or inauthentic.
CNBC: “‘A lot of people are going to see less money in their pocket.’ Here are must-know tax changes for 2022”