Paul Tashima is the managing director of investments at UBS Financial Services Inc.
Here’s his best advice to take control of your finances:
How can I make my charitable gifts have the most impact?
As an alternative to donating cash to your favorite charity, consider donating publicly traded securities you have held for greater than one year and that have appreciated in value. Typically this can create a win-win situation for both the charity and the donor. The charity receives the appreciated assets, which can be liquidated free of any capital gains taxes. The donor, on the other hand, receives the charitable contribution deduction on the fair value of the stock and avoids paying capital gains taxes on the appreciated amount. Individuals should discuss this approach with their tax advisors.
What is the biggest money mistake you made and what did you learn from it?
Without question, the biggest money mistake I made was trying to market time and take large holdings in just a few select stocks. It is a proven fact that diversification across asset classes and industries is far more beneficial to an investor, especially small ones, than trying to be a stock picker. I learned that good sound money management is about being invested with a proper mix of investments and being “in“ the market. Missing just a few of the biggest positive market days a year has been shown to be detrimental to your overall returns.
How do you teach your own kids to be financially responsible?
By getting paid for working at odd jobs or simply getting allowance for doing household chores, children develop a sense of responsibility toward money and what it takes to earn it. Hopefully from this foundation, higher concepts such as goal setting, savings and time management begin to develop.
