As we embrace the dawn of a New Year, resolutions may have come and gone, but one certainty remains: it's time to address our taxes. While many view tax planning as a task reserved for filing season, our valued clients at Black Diamond understand its year-round significance. The tax return merely serves as a scorecard for the year's financial decisions.

With this perspective in mind, we actively collaborate with our clients to meticulously map their income, identify potential deductions, and strategically reposition assets to minimize tax liabilities. The truth is, taxation is more predictable than many realize, and mastering its nuances is the key to success. It's our privilege to guide our clients through this process each year, ensuring they emerge as winners. Let's navigate this tax season together and secure your financial success.

Every month, we're hosting live, in-person educational workshops throughout the local community. We welcome you to attend these events and to share these with those in the community that may benefit from these no-cost seminars and workshops!

February 21, 2024 at 1:00PM

at Lewes Public Library | No Cost

As we navigate the complexities of our financial lives, it's essential to assess and strategize for a stable and prosperous future. This free educational workshop is designed to guide you through a comprehensive Financial Fitness Checklist, covering crucial areas such as family dynamics, personal goals, business considerations, employment changes, health care needs, money management, estate planning, retirement, and future aspirations.

March 13, 2024 at 2:00PM

at Lewes Public Library | No Cost

The 2023 tax season brings new challenges and opportunities. This community workshop will guide you through the complexities of the latest tax reforms. Understand how these changes impact your investments and retirement planning, and learn strategies to optimize your financial position.

About the Presenter:

These educational workshops will be presented by Kenneth Reese, MSFS, CPWA®, CFP®, CIMA®, CLU®, ChFC®, EA, Partner and Financial Advisor of Black Diamond Financial Solutions and instructor with the Money School, a program of the Delaware Community Reinvestment Action Council. 

Kenneth graduated from Penn State University, focusing on finance and law, and has over ten years of wealth management experience. He is passionate about developing tax-centered financial planning strategies and is committed to lifelong learning and client empowerment.

The start of a brand new year is a good time to take stock of where you are in your financial life, addressing any needed changes while celebrating your accomplishments from the previous year.   While no one can predict the future, assessing your situation, remembering your progress, and understanding the risks ahead will help you guide you  when life inevitably throws you a curve. 

Over our financial lifetimes we accumulate savings, investments, properties, vehicles, and yes, debts.  When times are good, we tend to skip over the intricacies of these items but we are forced to reassess them when financial stress occurs.  Typically, this is the worst time to do so as our options become limited while the assets decrease and our debts increase.  Loss aversion theory states that we feel twice as bad when we lose something versus when we gain something which is something key to keep in mind as we move through the upcoming year.  More information about loss aversion and prospect theory can be found here.

The Covid pandemic was a major shock financially to all Americans but the response from Washington, D.C. and the Federal Reserve Bank whitewashed the ripple effects of shutting down the world’s largest economy.  Assets including stocks and real estate have ballooned to levels seen right before the pandemic set in. The amount of stimulus ($5 trillion) along with 0% Federal Funds rates (more information found here) enticed investors to abandon safe assets.  Investors were borrowing “free money", allowing homebuyers to borrow below 3%, affording them a much higher priced home.  Coupled with  corporations borrowing at historic levels to buy back their stock and inflated stocks and real estate, you can see a storm brewing off shore.  

So what does this storm look like?  The Federal Reserve has stopped stimulating, they have reduced their balance sheet by $1 trillion in the last year through XYZ, and increased rates 550 basis points.  Mortgage rates are now at ~6.5% and corporations plus commercial real estate investors are having to refinance the borrowed money from Covid at 200% their original rate.  This is happening at the same time as the Treasury is issuing $1.5 Trillion in new borrowing starting in February 2024 due to the budget deficit spending.  

Recall the  banking crisis in early 2023. It was essentially a band aid on the situation when the Federal Reserve bailed out 5 failing banks by creating an emergency loan program or credit facility for smaller banks.  According to the Fed, it will end on March 11th and will not be extended.  Also, there is a storm brewing in the Commercial Real Estate market as refinancing deadlines are approaching while values of these buildings are decreasing due to lower occupancy rates and when that storm reaches shore, we must recall our conversations together and loss aversion theory 

Financial crises don’t happen overnight, and this one has been drawn out due to federal deficit spending and money creation, all of which is being reined in. 

Jeffrey T. Puglia, CFP ®,  ChSNC®, AIF®

President and Financial Advisor

Congrats to Rose &  Patrick on their engagement!

Derrick added a new designation to his belt - the CLTC®!

Our amazing Ariel celebrated her 1 year anniversary with BDFS!

Black Diamond had a blast in our latest Team Building Event in DC!

Look out for Black Diamond at  Bally’s Dover Casino Resort on Thursday, April 11th from 9:00 – 3:00!

Join Black Diamond for the 23rd annual 55+ Expo to connect with local businesses that support and cater to the needs of Delaware’s 55+ community!

Sources

"I am writing to offer words of praise for Cam in his ongoing support for me over the time I have been with BDFS.  He has always performed above expectations in terms of reliability, promptness of service and willingness to support me during some of the most challenging times I have ever encountered.

He managed and coordinated a move from Delaware to Maryland  during which time I was very ill and needed his help to smooth the transition.  He made all aspects of financial planning understandable to me and I felt I was in competent hands.  

I would recommend Cam as a financial advisor to  anyone seeking excellent guidance and consistent professional assistance.  The office staff has also been very helpful and a friendly voice whenever I’ve reached out.  I am in much appreciation of my association with Cam and company."

— Mickie C.

All testimonials are provided by current clients of BDFS Capital LLC and reflect their direct experience with their Financial Advisor.  The testimonial was not edited by BDFS Capital LLC and is provided in its entirety.  The client did not receive any cash or non-cash compensation for the testimonial

Check out the results from our last survey here.