Ericfrankl.in

I like big books and I cannot lie... 23 year tech veteran. Now owner of @ProsperoWealth, a fiduciary wealth manager/advisor serving tech professionals.

[Ericfrankl.in @mrefranklin]

Be weird. @tedgioia puts his finger on it.

https://t.co/3sskdgNrcp

[Ericfrankl.in @mrefranklin]

@LightskinDuo No. You take that end of the day. A spectacular occurrence does not allow you to mess with everybody else's day.

[Ericfrankl.in @mrefranklin]

Shocking, I know, but I don't think every "account executive" is actually an executive.

There is a firm I work with that calls me every few months with a new "account executive" that would like to review my account.

[Ericfrankl.in @mrefranklin]

@shairnn 18

[Ericfrankl.in @mrefranklin]

@packyM The problem seems to be when you mix up the holes.

[Ericfrankl.in @mrefranklin]

@BurakYngn I’ll live.

[Ericfrankl.in @mrefranklin]

OMFG. No.

[High Yield Harry @HighyieldHarry]

What the hell

[Ericfrankl.in @mrefranklin]

The difference between ordering at the Chipotle counter and getting the same food via the app is stark. It is always better when I watch the person make it.

[Ericfrankl.in @mrefranklin]

“Temporary dislocations become permanent for the investors who can least afford it.” - @TaxAlphaInsider

[Ericfrankl.in @mrefranklin]

@LDrogen The latter, but 130/30 is the lowest leverage version. It goes all the way up to 300/200.

[Ericfrankl.in @mrefranklin]

@MrNQDC Sure. Your original post never indicated the person was in 32% now but I agree with the image here.

[Ericfrankl.in @mrefranklin]

The point about expected tax rates now vs. in-retirement is a good one and one that I have heard A LOT. What I don't hear spoken about is:

1) The risk that tax rates will actually rise. Given demographics and budgetary shortfalls of entitlements, I think that's quite possible. Also, if you are very wealthy, RMDs can be highly taxed income.

2) The fact that Roth assets are the last assets you generally tap. Since they're not subject to RMDs, you CAN stay more aggressive for your investing with this bucket without being forced to pull it on a timeline. This can be higher overall $$$$ at withdrawal.

3) If you end up not needing those assets, the inheritance rules around RMDs are easier for inheritors.

All else being equal, it is nice to have significant assets in all three buckets (taxable, tax advantaged, and tax-free).

[Ericfrankl.in @mrefranklin]

No. I was using "retail" perhaps a bit loosely. AQR made Long-Short extensions available outside of hedge funds in 2022 via their FlexSMAs. Since then, many other players have entered. This is largely run through RIAs and was only available through Fidelity until late last year. It got large enough that it scared Fidelity out of it. Schwab picked up the mantle (saying they were open for business) but they appear to be getting overwhelmed with the demand and instituted significant restrictions in just a few months. Goldman and Pershing are now starting to offer it as well. In less than 1 year of my firm offering these strategies, it grew to ~25% of my firm AUM. It's a big and growing business line but it appears to be scaring the balance sheets of the custodians. The only true retail version of it I know if is Frec and that appears to be small so far.

[Ericfrankl.in @mrefranklin]

It almost seems like we should develop very explicit questions people could ask that would be impossible to weasel the answers. Questions like:

Are you compensated for the recommendation of any specific investment/insurance products?

Are you legally bound by the fiduciary standard?

[Ericfrankl.in @mrefranklin]

@TKopelman Cleaning up nomenclature in the financial world could only help, but even when we try, it still gets intentionally muddled.

Are you fee-only?

Yes. I am fee-based.

Are you a fiduciary?

I behave as a fiduciary.

These are weaselly answers that most people look right past.

[Ericfrankl.in @mrefranklin]

Except long-short in the retail space is estimated at $100 billion in relatively new assets (not including the leverage). With hedge funds, that number goes up to $1.5 trillion. It's just a different flavor of your initial point (related to concentration and rich people). I'm trying to figure out what portion is tax aware management of concentration v. loans.

https://t.co/iziqOpThZa

[Ericfrankl.in @mrefranklin]

@NotGoKGreen I am guessing it’s an annual minimum fee of $6k for a client without $100k. I have never seen a 6% AUM fee. I have seen an effective rate of 6% plenty of times.

[Ericfrankl.in @mrefranklin]

@JoannaStern Please be careful. You are actually teaching that robot karate.

[Ericfrankl.in @mrefranklin]

@c_valenzuelab