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richard bloom

Planning for the Unexpected: Protecting Yourself & Your Family with Estate Planning

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For many of us, estate planning is something we know we should do but often manage to postpone until some indefinite time in the future. But, putting off this part of your financial life could mean passing over an opportunity to preserve the lifestyle you’ve worked so hard to create and to dictate your legacy on your terms.

Why You Need an Estate Plan

The primary purpose of estate planning is to ensure that you control how your assets are distributed. Estate planning is also about planning for unexpected events, such as physical and mental impairment, which may place financial strain on your family.
A well-crafted estate plan is likely to have multiple goals:

  • To protect your lifestyle
  • To provide for your family and others, including charitable organizations meaningful to you
  • To control distribution of your assets
  • To minimize estate taxes

Your Estate Planning Checklist

Depending on your goals, you may need to consider different tools, resources and strategies to help you develop an estate plan that reflects your priorities. Here are some important documents and services you may need to help protect you and your family in the event of disability:

  • A living will is a legal document containing your wishes regarding medical measures that might be taken to prolong your life in case of serious illness or injury.
  • A durable power of attorney for health care, also known as a health care proxy, appoints someone you trust to make health care decisions on your behalf if you are unable to do so.
  • A durable power of attorney for financial matters gives someone legal authority to make financial decisions if you are unable to do so.
  • An inventory of important information includes information about your property, bank accounts, insurance policies, employee benefit plans, mortgages and debts. It also includes your estate planning documents and beneficiary designation forms.
  • Disability insurance can help replace a portion of lost income if illness or injury prevents you from working.
  • Long-term care insurance can help to pay for the costs associated with disabilities caused by age and infirmity, such as nursing home care.
  • Other important documents and services help to protect your family and your legacy in the event of your death:
  • Life insurance can provide financial benefits for your named beneficiaries if you pass away. Used strategically, life insurance can also help address other estate planning objectives, such as reducing the impact of estate taxes or charitable giving.
  • A will is a state-specific legal document that sets forth your wishes regarding the distribution of your property and the care of any minor children.
  • Trusts may be beneficial for a variety of life events and situations, including tax law changes, marriage, college saving, a child with special needs, serious illness, inheritance, and retirement planning.

The most difficult part of estate planning is getting started. Once you begin, you will find estate planning is a positive and constructive way to put yourself in control of your legacy.

Need help taking the first step? Working with a Financial Advisor can help you bring all the elements of your estate plan together to help ensure that you have an integrated strategy in place to protect yourself and your family.

Disclosures

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

Richard bloom is a Financial Advisor in 1290 Avenue of the Americas at Morgan Stanley Smith Barney LLC (“Morgan Stanley”). He can be reached by email at Richard.Bloom@MorganStanley.com or by telephone at 212-893-7597. His website is http://www.morganstanleyfa.com/mayergelwarggroup

Insurance products are offered in conjunction with Morgan Stanley Smith Barney LLC’s licensed insurance agency affiliates. Not all products and services discussed are available at Morgan Stanley.

Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be appropriate for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Richard Bloom may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, http://www.morganstanleyfa.com/mayergelwarggroup.

© 2024 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 6476982 03/24

How to Handle Volatility

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The big market declines we’ve experienced over the past year can be unnerving for investors, often triggering emotions of fear and concern. However, such declines are historically not unusual. Market volatility fluctuates based on where we are in the business cycle and due to external events that heighten risk and threaten growth. It is a normal feature of markets that investors should expect. When markets sell off, investment returns will head lower in ways that can leave investors with material losses.

Does that mean you should try to sell when the market’s “high” or sell if it starts to fall in order to reduce the potential for that kind of unpleasantness? Not necessarily. Here’s why:

Common Investing Mistakes

It’s extremely difficult to predict the timing of a market downturn with the accuracy needed to profit from such a prediction. In other words, it is easy to get such a prediction wrong, which can be costly. While we do tilt our portfolios more aggressively or more conservatively based on our market outlook, the data shows that individual investors who radically reposition out of stocks in an attempt to catch the tip of a market top reliably miss out on gains more than they prevent losses, and generate excessive transactions and tax costs along the way.

While “buy low, sell high” may sound like time-honored advice, the challenge of getting it right means in practice it rarely is a good way to make decisions. Indeed, individual investors who “sell high” and go to cash waiting for a market downturn to come and go, often lose patience as stocks continue to go up. This results in their missing out on gains rather than preventing losses. That costly mistake is the reciprocal of another, wherein panicking investors sell their holdings during a market selloff, potentially locking in losses as stocks rebound while they remain on the sidelines. The prevalence of these value destroying behaviors helps to explain why individual investors as a group tend to dramatically underperform market benchmarks.

There is a caveat to the generally superior buy-and-hold approach, which is that seeing a paper loss in your portfolio doesn’t feel good. Some investors would rather take less risk, which may mean giving up some long-term returns, in order to reduce the period of time they may need to wait out losses, making for smoother sailing.

Consider Your Goals

Another factor to consider is how you’re doing relative to your financial goals. That’s where a Financial Advisor can help by talking through goals and priorities and reassessing your portfolio based on where you stand. For instance, if you are saving toward a goal and have made good progress, it may make sense to take on less risk, regardless of the market outlook. This is for two reasons. First, it intuitively makes sense to take less risk when you have more to lose than to gain. Second, for additional peace of mind that your progress won’t be jeopardized, you may desire the lesser uncertainty that can come from a more conservative blend of stocks, bonds and cash.

If, like many of us, you have more progress to make and more road to travel towards achieving your goals, riding out the market’s jitters can be the best advice. Our research shows that markets are most predictable when you have a seven- to 10-year time horizon (due to how well current yields and valuations predict returns over those horizons). Our forecasts continue to suggest that stocks will outperform bonds and cash over that time horizon.

Bottom line: Working with your Financial Advisor can help you avoid short-term thinking and remember that investing is a long-term proposition. Keeping your eye on the horizon is your best strategy as an investor.

 

Risk Considerations

Equity securities may fluctuate in response to news on companies, industries, market conditions and general economic environment.

Asset allocation and diversification do not assure a profit or protect against loss in declining financial markets.

Rebalancing does not protect against a loss in declining financial markets. There may be a potential tax implication with a rebalancing strategy. Investors should consult with their tax advisor before implementing such a strategy.

Yields are subject to change with economic conditions. Yield is only one factor that should be considered when making an investment decision.

Certain securities referred to in this material may not have been registered under the U.S. Securities Act of 1933, as amended, and, if not, may not be offered or sold absent an exemption therefrom. Recipients are required to comply with any legal or contractual restrictions on their purchase, holding, and sale, exercise of rights or performance of obligations under any securities/instruments transaction.

Disclosures

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

Richard bloom is a Financial Advisor in 1290 Avenue of the Americas at Morgan Stanley Smith Barney LLC (“Morgan Stanley”). He can be reached by email at Richard.Bloom@MorganStanley.com or by telephone at 212-893-7597. His website is http://www.morganstanleyfa.com/mayergelwarggroup

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be appropriate for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Richard Bloom may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, http://www.morganstanleyfa.com/mayergelwarggroup; http://brokercheck.finra.org/Search/Search.aspx.

© 2023 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 3940775 (12/2022)

Thinking About Making a Move? Important Financial Considerations When Selling or Buying a Home

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As we head into peak residential real estate season, you may be thinking about whether it’s the right time to list your home for sale or to go house hunting. In addition to considering how local market circumstances such as job growth, mortgage rates, and tax incentives influence your timing, you also want to think about how selling or buying a home may impact your long-term financial plan. In this article, we explore important questions both sellers and buyers should ask themselves when considering a move.

 
 

For Sellers

1. How much will it cost to sell your house?

A good rule of thumb is to be prepared to pay costs of up to 10% of your home price to sell your house.  This includes expenses associated with getting your house in shape to show, such as cleaning and painting, realtor commissions, closing costs including transfer tax and legal fees, and repair costs or concessions.  

Depending on how long you owned the house and whether it was your primary residence, you may also owe taxes on the profit from your home sale. If you’ve owned your home for at least two years and lived in it for at least two of the last five years, you can exclude up to $250,000 of the profit as an individual or $500,000 as a married couple, if you file a joint tax return.  If you’ve owned your home for at least one year, any profit will be taxed as a long-term capital gain.

2. Where would you go next?

If you’re planning to buy another home, consider the cost of maintaining that new house on an annual basis, from mortgage related expenses and property taxes to maintenance and repairs.

If your plan is to rent, you may need to figure out how to manage the potentially large inflow of cash from the sale of your home. This inflow should be incorporated into your long-term financial plan and aligned with your goals, which for many of you is retirement. If you allocate some of this cash to investments, it may be worthwhile to seek guidance from a Financial Advisor on the most efficient way to deploy it in such a volatile stock market.

3. How will you pick a buyer?

The attractiveness of an offer may depend on your risk tolerance and your timeline. Cash offers may be attractive because they don’t depend on bank underwriting or appraisals and can often be completed more quickly. Though cash offers may mean a lower selling price, they may be more likely to close without issues. 

For Buyers

Many areas of the country are experiencing a seller’s market, where there are more prospective buyers than there are homes for sales. When housing inventory is low, buyers have fewer choices and may have to pay higher prices or be more willing to make concessions. Understanding how these factors impact your financial plan can help you make bidding and buying decisions with greater confidence.

1. How do you decide how much to bid?

Often, the response to this question is, “How much can you afford?” If you anticipate getting a mortgage, the Federal Housing Administration generally uses a 43% debt-to-income (DTI) ratio as a guideline for approving mortgages.  Keep in mind that getting approved for a mortgage does not guarantee you will be able to afford the payments, so it is critical to be sure you understand, and are comfortable with, the level of financial risk you will be taking on. 

Once you understand how much you can afford, you will have a clearer picture of your price range and how much you can bid.  

2. How much will you need to set aside as a down payment?

If you are able to put down 20% of your home price, you may be able to avoid paying private mortgage insurance. There may, however, be situations where you opt against a 20% down payment. Your Financial Advisor may be able to advise you on what down payment makes the most sense for your situation. 

3. What other costs do you need to budget for?

The costs associated with buying a house go beyond the down payment and the monthly mortgage payments. You will need to factor in expenses such as closing costs, which are all the fees associated with the mortgage, as well as title insurance, NY state mortgage tax and mansion tax for purchases over $1 million, property taxes, homeowner’s and mortgage insurance, homeowner’s association fees, and relocation expenses. You will also need to plan for routine and unexpected home maintenance and repairs. 

Key Takeaways

As you can see, the financial implications of selling or buying a home go far beyond the purchase price and can have long-term impacts on your financial plan and overall wealth strategy.

When it comes down to it, the best time to sell or buy is the time that works best for you. Selling or buying a home is not just a financial decision, but a personal one. It’s important to make sure the timing makes sense for you from the standpoint of lifestyle and emotional preparedness. Whether you’re thinking about selling or buying a home, working with a Financial Advisor who understands your circumstances, priorities, and long-term goals can help you formulate a plan that is designed to protect your vision of the future.

About the Author

Richard Bloom, CFP® is a Financial Advisor with The MayerGelwarg Group at Morgan Stanley. He works with our clients to gain a full understanding of their financial goals and coordinates wealth planning analyses on their behalf to clarify the long-term financial implications of the decisions they make today. Rich is a Certified Financial Planner™, earning that designation through New York University, and is an active member of the Estate Planning Council of New York City and the Financial Planning Association of New York. He can be reached by email at Richard.Bloom@morganstanley.com or by telephone at (212) 893-7597.

DISCLOSURES

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

Richard Bloom is a Financial Advisor in 1290 Avenue of the Americas, New York, NY 10104 at Morgan Stanley Smith Barney LLC (“Morgan Stanley”). 

This article has been prepared for informational purposes only. The information and data in the article have been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be suitable for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters.

Richard Bloom may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, http://brokercheck.finra.org/Search/Search.aspx.

© 2022 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 4399252 2/2023

Awarded Equity In Your Company? 5 Key Financial Considerations

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As we approach the end of the year, bonuses and tax planning are at the top of many employees’ minds.  Without proper planning, equity compensation grants can seem like a double-edged sword. On the one hand, the equity grants you’ve been awarded represent the potential for significant wealth. On the other, they may have a range of complex financial and tax planning considerations. So, what should you be thinking about when managing your equity compensation?

Here are five important things to consider when strategizing with your team of professional advisors on how to manage your equity compensation grants.*

1. Make sure you know what kind of equity grant you’ve received.

Knowing what kind of equity grant you’ve been awarded will help you understand when and how you may owe taxes. Nonqualified stock options (NQSOs) are a common type of equity grant that are awarded at a pre-determined exercise price, also known as the strike price. Other types of equity compensation may include incentive stock options (ISOs), restricted stock units, and performance shares.

2. Keep track of when your equity compensation grants vest.

The vesting period defines the amount of time you must hold the equity grant before it vests and generally is no longer forfeitable. Typically, the equity grant will vest over a period of time, achievement of performance goals or a combination of both.

3. Understand the tax consequences of your equity compensation grants.

NQSOs do not qualify for special tax treatment so the spread between the strike price and the fair market value (FMV) of the stock at the time of exercise is considered ordinary income subject to federal, state, and local income taxes and payroll taxes. ISOs do not generally result in taxable income when they are exercised, but they may result in ordinary income or capital gain at the time the shares are sold depending on how long the shares have been held. However, the spread between the strike price and the FMV of the stock at the time of exercise may be considered income for Alternative Minimum Tax (AMT) purposes.

With restricted stock units or stock performance awards, you are generally subject to ordinary income tax when the equity grants vest.  The type of equity grant and terms of your company’s  plan will determine when and how it is settled and taxed. 

4. Determine whether a section 83(b) election makes sense for you.

If you make a section 83(b) election, you recognize taxable income in the year the equity award was granted, rather than in the year it is no longer subject to a substantial risk of forfeiture. Typically, a section 83(b) election can only be filed in connection with the grant of certain types of equity awards, such as, restricted stock and performance shares. The section 83(b) election needs to be made within 30 days of receiving the equity grant. If you choose to make a section 83(b) election, you will recognize ordinary income on the excess of the FMV of the equity award at the time of grant over the amount paid, if any. By making an 83(b) election, you have the potential of reducing your overall tax paid if your company grows. When you eventually sell the shares underlying your equity award, you may recognize capital gain or loss. Assuming you sell the shares more than one year after grant, any gain would be treated as a long-term capital gain, which is taxed at a lower rate, than ordinary income. 

5. Find out if your shares qualify as Qualified Small Business Stock.

You may be able to exclude up to 100% of any gain from the sale or exchange of qualified small business stock (“QSBS”) acquired after September 27, 2010 and held for more than five years.  The maximum amount of gain excluded is generally allowed up to $10 million or ten times the cost of the stock. The five-year holding period is for shares–not options–so if QSBS treatment is a future possibility, exercising options early and along the way may make sense. It may also be useful to negotiate an accelerated vesting schedule to start the clock on the holding period. QSBS rules are complex and include some key requirements for taking advantage of this exclusion, so consulting a tax advisor for guidance is advisable.

Key Takeaways

Deciding how to manage your equity grants can be a complex undertaking, especially if they are a significant component of your compensation package and your company stock represents a large portion of your overall wealth. Understanding the financial and tax implications of your equity compensation–and how they impact your comprehensive wealth management strategy–is critical. Working closely with your professional advisors–including your CPA, attorney, and a financial advisor who understands the nuances of equity compensation plans–can help you create a customized plan for achieving the future you envision for yourself and your loved ones.

About the Author

Richard Bloom, CFP® is a Financial Advisor, Dedicated Equity Plan Specialist with The MayerGelwarg Group at Morgan Stanley. As a Dedicated Equity Plan Specialist, Rich utilizes a unique set of skills to help clients who receive compensation benefits in the form of company stock. His deep understanding of the tax ramifications surrounding stock awards and grants qualifies Rich to work cohesively with clients’ CPAs to develop long-term, tax efficient diversification strategies. He can be reached by email at Richard.Bloom@morganstanley.com or by telephone at (212) 893-7597.

* Strategies are subject to individual client goals, objectives, and suitability. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Only US federal income tax information is provided herein, and other taxes may apply depending on an investor’s particular circumstances. Investors should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.  

© 2021 Morgan Stanley Smith Barney LLC. Member SIPC.

CRC 3754886 09/2021     

Getting to Know Richard Bloom: The Making of a Great Financial Advisor

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Richard Bloom’s first memory of the stock market was when he was a young child. He would hear his grandfather talking about buying shares of GE. “I didn’t know what it meant, and actually thought he owned the whole company! Eventually he taught me what it really meant to buy and own a piece of a company.  As a way to educate myself and my siblings, he asked us to pick a company we liked and agreed to buy us each 10 shares of that company.”

Of course, as any kid would do, Bloom chose Toys R Us! “As this was the pre-internet era, he bought us graph paper and taught us how to look up the ticker in the newspaper each day and chart the price of the stock,” said Bloom. It was his first introduction to investing, “but more importantly, it was a great learning experience and bonding opportunity with my grandfather.”

This early introduction ignited a desire in Bloom many years later to study finance in college. From his career’s start nearly 15 years ago, he has worked with the same team, The MayerGelwarg Group at Morgan Stanley. His two partners, each with over three decades experience have taught him that what makes a great advisor is not only helping clients develop sound financial plans, but doing so at the highest level of service.

Building Relationships

Today, the part of Bloom’s job that he loves the most is the deep lasting relationships that he has built with his clients. “My job is not only to ensure they are taking the right steps toward financial security, but to assure and reassure so they can handle the emotional side of investing in the markets,” he explained. “This entails asking very specific individualized questions during a first and second meeting to understand how the client views the world and what impact that will have on their emotional fortitude during the inevitable ups and downs we will experience together.

“From the moment I meet a prospective new client, it is my responsibility to demonstrate financial acumen and understanding of their unique needs,” Bloom continued. “Knowing my clients seek out and trust my guidance is incredibly rewarding.    

Since the pandemic, Bloom has interacted with many individuals within and outside of the industry who wonder how he and his clients are handling the stress and uncertainty. While acknowledging the increased demand in terms of time and energy, Bloom has also found it to be one of the most fulfilling moments of his career. “Now more than ever, clients and potential clients are razor focused on the importance of having an experienced financial advisor. I continually remind my clients of the plan in place to ensure their short-term needs will be met under any market conditions without jeopardizing their long-term financial goals. And most importantly, if/when there are changes to their personal situation, we can make any necessary adjustments needed. While we cannot control the markets, we have complete control over the decisions we make together.”

Discipline as Key to Success

Bloom emphasized that although there are virtually no barriers to investing in the markets on your own, a great deal of discipline is required to be successful in the long run. “Investors must develop a strategic asset allocation and stick to it; they have to rebalance across asset classes including selling outperforming investments; they also must understand the tax ramifications of each trade because at the end of the day, it’s not about what you make, but what you keep.”

If any one thing frustrates Bloom, its hearing of investors who panic and sell out of the markets at the lows and miss the inevitable rebounds. During his local “Wine and Wealth” seminars at Le Jardin in Chappaqua, Bloom has maximized the opportunity to educate numerous members of the community. “These are fun, low-key social and educational events where I team up with one of our portfolio managers to present on different investing topics,” he said. “My goal is for all attendees to walk away with a few investment concepts that they can use to prevent themselves from making financially detrimental mistakes.”

Bloom and his partners also practice what they preach. “We make it a focal point of our business not to invest our clients’ assets in anything we ourselves or our families are not invested in. Most financial advisors cannot say that,” he stated. “Our asset allocation, or the mix of stocks and bonds, may differ but the portfolios we utilize for various asset classes are the same. We do this to eliminate any conflicts of interest and our clients take comfort in knowing that we are invested alongside them.”

Westchester Living

Bloom is proud to call Westchester home, a perfect choice to establish roots personally and professionally. His wife Marisa grew up in Chappaqua. Bloom, originally from the Philadelphia suburbs, originally thought he would move back there. “However, I quickly learned that once I married a New York girl, I’d be here for life. And now I absolutely love it.

He said his kids love spending time at Gedney Park, and always look forward to the Chappaqua Children’s Book Festival and the Armonk Cider and Donuts Festival. His family visits the local farmers markets every weekend as well. “We make it a priority to shop at and support local businesses. We couldn’t be happier living up here.”

But no matter how grounded one might feel in the community, Bloom understands how ‘unsettling’ the markets can be right now, and the feeling of uncertainty that comes along with it. “The markets also tend to operate in the exact opposite way of how we live our lives and are hardwired to think,” said Bloom.

“In the very short term, people generally know what is going to happen to

them–what their schedule is going to be tomorrow or next week or next month. Where we will be in 10 years has a much wider range of outcomes and very little certainty.

The ‘Long Term’ Mindset Advantage

“The markets, on the other hand, have much more certainty in the long run while there can be extreme volatility in the short term. Understanding this helps alleviate my concerns for what is happening in the world right now. No doubt we are experiencing sea-level changes in our country and society; however, when you look back in history, changes are always taking place with industries being disrupted. Being able to take advantage of these changes, block out the noise, and stick to your long-term plan through it all provides you with the best chances of success.”

A recent article by Bloom in this press discusses strategies to help investors remain focused during turbulent times, even when it can be hard to think clearly. (https://www.theinsidepress.com/staying-focused-in-turbulent-times/)

Most meaningful for Bloom has been growing with his clients and witnessing wonderful things that happen to them in their lives. What he has found is that many times those great things do not have anything to do with wealth. That thinking has accorded Bloom perspective. “There are three simple rules I try to live by: First, be a good person and respect others. Second, surround yourself with people you like and can learn from. And lastly, don’t ever sweat the small stuff, including a bad day in the markets!

To reach Bloom, write to Richard.Bloom@morganstanley.com