Wealth Your Way

Thinking about starting your own business? One of the first things to consider is what form of business structure best suits your interests. CIBC US Senior Wealth Strategists, Ryan Coulson and Halsey Schreier, walk through the features and benefits of sole proprietorships, partnerships, corporations and limited liability companies (LLC).

Converting traditional IRAs (individual retirement accounts) into Roth IRAs has been a hot topic of conversation for people of all ages in recent years. Whether taking advantage of the current low income tax rates, or making the smartest choices in estate planning, many investors are turning to Roth conversions when planning their retirements. Ryan and Halsey discuss how this move can minimize the taxes owed on your retirement savings and maximize the money for both you and your inheritors.

An administration change typically leads to a change in our nation's tax laws. But the legislative process for this is complex, and may lead to less sweeping changes than expected. Ryan and Halsey explore this process together and discuss what to look out for when it comes to your personal finances.

Are you curious about crypto? There's been a tremendous amount of hype about how cryptocurrencies are the “next big thing” in the digital revolution, and how they have the potential to transform not just traditional financial services, but also other industries. A number of high-profile celebrities have endorsed both cryptocurrencies and crypto companies. There are also watercooler stories that most of us may have heard, such as the one about the crypto millionaire who made a fortune overnight, and then lost it all just as quickly. Even the president of El Salvador had his crypto moment in the spotlight when he declared Bitcoin would be legal tender in his country. But as many new crypto investors have learned, cryptocurrencies are extremely complex and difficult to understand, which can make them especially challenging for potential investors. As with any investment, we recommend starting with the basics, which is why we've put together an overview of some of the essential cryptocurrency concepts to help you get started. What are cryptocurrencies?Bitcoin, the first cryptocurrency, was created by Satoshi Nakamoto, which is a pseudonym for the person or team who wrote about the technology in a 2008 whitepaper. The basic concept is relatively simple: Bitcoin is a form of digital cash that allows for secure and seamless peer-to-peer transactions across the internet. Cryptocurrencies are not issued by a government, and there is no central authority providing oversight. Instead, cryptocurrencies are managed by peer-to-peer networks of computers, which run on free, open-source software. While Bitcoin is the oldest, largest, and most established cryptocurrency, there are now thousands of others. Some have a similar design and purpose as Bitcoin, while others are based on different technologies or were created with other functions in mind. For example, Ethereum is a cryptocurrency that can be used to run applications and create contracts. The blockchain ledgerThe blockchain is an essential feature of many cryptocurrencies. It is similar to a bank's balance sheet or ledger because it keeps a record of every on-chain transaction. However, unlike a bank ledger, the blockchain is distributed across the entire network of computers. The mining processMost cryptocurrencies are mined through a decentralized network of computers. With Bitcoin and many other cryptocurrencies, miners collectively work to verify and record new transactions and create new units of cryptocurrency by solving complex mathematical equations using specialized computers known as mining rigs. Determining consensus and securing the blockchainBecause cryptocurrencies operate without a central authority processing transactions, they must ensure that the same unit of cryptocurrency can't be spent twice. They do this with a system called the consensus mechanism, which allows all of the computers in the network to agree on which transactions to include in the blockchain. Proof of work and proof of stake are the two major consensus mechanisms that cryptocurrencies use to verify new transactions, add them to the blockchain and create new tokens. Proof of workProof of work is the protocol used by Bitcoin and is proven to maintain a secure and decentralized blockchain. With proof of work, miners compete to solve complex mathematical puzzles. The winner gets to update the blockchain and is rewarded with cryptocurrency. However, proof of work requires a significant amount of energy and can be difficult to scale.Proof of stakeProof of stake generally relies on a network of validators who contribute or stake their own cryptocurrency in exchange for the chance to validate new transactions and earn a reward in a process that is similar to that of proof of work. However, because proof of stake blockchains do not require miners to perform energy-intensive, duplicative processes (competing to solve the same puzzle), the networks require substantially less energy to operate. Where do cryptocurrencies get their value?The economic value of cryptocurrency is based on supply and demand. Supply refers to how much is available. In the case of Bitcoin, there is a finite supply—there will never be more than 21 million Bitcoin available. Conversely, demand refers to how much people want the cryptocurrency, and what they are willing to pay for it. The value of a cryptocurrency is determined by a balance of both of these factors. Cryptocurrency risksThere are many risks associated with cryptocurrencies, especially for investors. Cryptocurrency prices have historically been volatile, and wild price fluctuations can result in significant losses and stress. Cryptocurrency transactions cannot be reversed, unlike bank transactions. This means if you make a mistake and enter the wrong amount or address, you could risk losing your cryptocurrency and may not be able to get it back again.It is also important to note that cryptocurrencies are relatively new, and there are many nuances that are not widely understood yet. Issuance and trading are not well regulated, which means additional oversight and regulation is likely in the future. Should you invest in cryptocurrencies?Bitcoin and other cryptocurrencies are speculative investments and don't fit within traditional asset allocation models. They are not a commodity (such as gold), nor are they a traditional fiat currency, backed by a government. Additionally, cryptocurrencies are difficult to value as most traditional valuation metrics don't apply. Though some traders have been successful taking advantage of the changes in prices of Bitcoin or other cryptocurrencies, we believe most investors should treat cryptocurrency as a speculative asset class to be traded outside of a traditional long-term portfolio. 

As the Covid-19 pandemic seems to be in its final phase, the world in its wake is a much different place. How will this affect our investments moving forward? ESG factors are helping companies adapt to a tumultuous year. Environmental and health-conscious business models are the new norm, and diversity in leadership and representation has begun to dominate corporate priorities. Will the trials of 2020 lead to sustainable change? Or do the grand gestures of today fade away to "business as usual" tomorrow? We're joined by the Head of ESG and Impact Investing John Tennaro to discuss.

When investing, you want your money to grow. Active management and passive management are two distinct options available to you as an investor. Generally speaking, passive investing tends to be cheaper and easier, with portfolios frequently matching the ups and downs of the overall market. Actively managed portfolios are maintained by money managers who make decisions to allocate funds with the goal of a higher rate of return. If you choose to invest your funds in an actively managed portfolio, what considerations should keep in mind when choosing your money manager? We discuss this and more with Managing Director Kishore Setty, CFA.

When it comes to taxes, it pays to plan ahead. Don’t wait until the end of the year to start thinking about your income tax. You have the potential to save big on your tax bill by understanding what your tax situation is likely to be ahead of time and identifying strategies for deductions.

If there are causes you feel strongly about that you wish to support financially, charitable giving is likely an important consideration when setting your near- and long-term financial goals. While donating money to your favorite charities can be as simple as writing a check, there are various other options available to you for making charitable contributions that may reduce your current and future tax obligations and create a legacy of philanthropic giving.

Although giving and receiving gifts is a tradition that most people have participated in their entire lives, you may not often think about how gifting can be beneficial from a financial planning perspective.

Emails, files, photos, social media feeds, cloud storage... and the list goes on. Discussing a plan for digital assets is an integral part of estate management.

What options are available for you to manage risk and protect your assets?

Understanding how much and what type of life insurance to purchase—and the various ways you can use the proceeds—may help give you peace of mind that your loved ones will be supported, even in your absence.

Understanding the pros and cons of buying versus renting—as well as the associated opportunity costs—can help you decide whether home ownership is right for you.

While typically not the most romantic topic of conversation, entering into this type of agreement can provide the extra layer of protection you need to safeguard your assets or the wealth your family has worked hard to create and preserve.

Considering alternative assets? Hedge funds, private equity and venture capital may seem inaccessible, but not all alternatives are just for the elite. However, consider these key trade-offs.

Ready to start investing but don’t know the basics? The proper investment mix depends on your unique circumstances, including your age, current versus future income, and the amount of debt you have.

After college, you may find yourself considering multiple job offers. Focusing on the highest salary is tempting, but companies compensate employees in ways that may not be as immediately apparent.

Do you want to incorporate charitable giving into your financial plan? Would you like to learn more about how to become engaged in strategic philanthropy—either as an active part of an existing family legacy, or by finding your own path and creating a new tradition of giving?

The two absolutes we can count on in life are death and taxes, yet planning for these two things can be an unpleasant process. Many young adults delay creating a will until they are married or have children, but you can also ensure that your parents, siblings, or other loved ones are provided for by naming them as beneficiaries of your assets.

Environmental, social, and governance (ESG) investment strategies offer investors the opportunity to invest with passion and purpose in addition to the long-term goal of earning financial gains.

Stocks and bonds are the building blocks of portfolios, but few investors have the time to research securities. Instead, mutual funds offer professionally managed, diversified portfolios in one step.

Are you a young professional interested in starting to invest? Is your experience limited, or are you unsure of where to begin? Or do you have kids that you want to teach investment fundamentals to in order to help them get started early on a path toward prosperity?

Are you the parent of a young adult who has recently ventured out into the workplace? Do you want to help your children learn about investing fundamentals in order to prepare them for a healthy financial life?

Whether you want to purchase a new car or home, start a family soon, or retire by a certain age, you will need to plan accordingly to ensure the necessary funds are available.

Choosing a healthcare plan is one of those tasks in life that many of us dread. The process is often unfamiliar and daunting, especially for young people, which may be why so many wish they could avoid it altogether. But understanding your healthcare options and how to choose them is important, because going without insurance or choosing the wrong plan—one that doesn’t meet your medical needs--could lead to severe, unexpected and expensive consequences. While navigating the health insurance system can be complicated, the first step to choosing the right plan is getting informed.

When credit card offers are rolling in, it can be tempting to take advantage of the various promotions and promised rewards. While credit cards have many benefits and establishing credit is wise early in adulthood, a lack of discipline with your credit usage can easily create an undesirable financial situation. Understanding the key components of selecting the right type of credit and incorporating the use of credit into your budget can alleviate the risk of developing unmanageable debt.

New episodes coming soon. Hear from co-host Ryan Christine Coulson about what motivated the creation of the podcast and how she hopes listeners can benefit from the content provided.

New episodes coming soon. In this brief introduction clip, hear from co-host Josh Miller about what this podcast means to him.