Category Archives: Business

Business, Jake Kagele

GEARS Objectives at the Investments and Wealth Institute

Leave a comment

Jake Kagele leverages a decade of financial advising and investment experience as a managing partner at NOVA Financial Services in Tucson, AZ. In addition to his professional experience, Jake Kagele has completed executive education coursework through the Wharton School of Business and acquired certification as a Certified Investment Management Analyst (CIMA) through the Investments & Wealth Institute.

Since its inception in 1985 as the Investment Management Consultants Association, the Investments & Wealth Institute has delivered rigorous education and practical certification programs to financial advisors, wealth managers, and investment consultants. The organization currently administers certifications that include the Certified Private Wealth Advisor, the Retirement Management Advisor, and the CIMA credential.

To help advance its position in the wealth management industry, the institute also implements GEARS strategic objectives. These focus on core objectives that complement the institute’s mission to provide premier investment consulting, wealth-management credentials and world-class education to the financial industry. GEARS stands for Grow, Educate, Add Value, Relevance, and Standards, and covers objectives that range from furthering the number of certified professionals to advancing high standards and ethics.

For complete information on GEARS objectives at the institute, visit www.investmentsandwealth.org.

Business

Two Types of Tax Credits

Leave a comment

A financial services executive investment professional and Certified Investment Management Analyst (CIMA), Jake Kagele is the managing director of Nova Financial Services in Tucson, AZ, which provides financial services to high net worth individuals, trusts, corporations, and company retirement plans. Jake Kagele has successfully secured over $100,000 in corporate tax credits for Salpointe Catholic High School, a Nova Financial Services corporate partner.

A tax credit is any sum of money that taxpayers can deduct from taxes due to the government (tax liability). While tax exemptions and deductions reduce total taxable income, tax credits decrease the actual cost of tax owed. The tax credit figure relies on credit type because there are varieties of tax credits given to businesses or individuals working in distinct industries or locations. Two types of tax credits include:

1. Non-refundable Tax Credit

This tax credit cannot lower a filer’s tax liability below zero. Also, most times, low-income earners do not earn full compensation for credits that they qualify. Examples include Child and Dependent Care Credit, Saver’s Tax Credit, credits for adoption, and Mortgage Interest Credit.

3, Refundable and Partially Refundable Tax Credits

For refundable tax credits, regardless of tax liability, the filer receives the credit’s entire sum. For instance, Earned Income Tax Credit (EITC) is fully refundable. However, there are partially refundable tax credits that lower tax liability and taxable income. For example, the child tax credit (CTC) is refundable if the filer’s income surpasses a $2,500 threshold. Additional Child Tax Credit is the refundable part of the CTC.

Business

Behavioral Finance and Irrational Actions Among Investors

Leave a comment

Jake Kagele is an established Tucson, AZ, investment professional who guides NOVA Financial Services and provides client-driven asset-allocation strategies. Having completed Certified Investment Management Analyst (CIMA) certification at the Wharton School at the University of Pennsylvania, Jake Kagele undertook intensive coursework that delved into areas such as investment policy and behavioral finance.

Focused on the psychology of market behaviors, the latter topic seeks to find an explanation for actions by investors that often seem to be irrationally grounded. Areas of irrationality include biases and cognitive errors that can lead to subpar decisions, as well as limits to self-control, even when in possession of knowledge that would lead to optimal decisions.

One classic manifestation of such irrationality is “herd behavior” that may be based on rumor and the actions others take, and not reflect the reality of the situation at hand. An example is when news of an imminent corporate lawsuit causes investors to shed shares in a specific company. This then initiates a chain reaction across similar companies in the same industry. Because this happens before any action or judgment has been rendered, it is a market movement with imperfect knowledge as a basis.

The positive aspect of this is that savvy investors can often take advantage of others’ herd behavior to identify undervalued stocks and find long-term strategies for outperforming the market.

Business

Cash Holdings as an Element of a Diversified Portfolio

Leave a comment

 

 

 

 

Serving the needs of Tucson, AZ, clients, Jake Kagele leads NOVA Financial Services and provides tailored advice that meets the needs of individuals, trusts, foundations, and corporate entities. One area that Jake Kagele has extensive knowledge in is designing an allocation strategy that is properly diversified.

A recent CNBC article brought focus to the importance of cash holdings within a portfolio mix, particularly during times of high volatility. One aspect of this involves setting aside an emergency cash savings account that will cover all foreseeable expenses over a three-to-six-month period.

For those who have retired, another element is maintaining investments totaling two to three years of income, in holdings that are not subject to loss of value through exposure to the securities markets. Cash accounts are often a major component of this type of allocation.

While cash holdings may eliminate many short-term risks, they do not mitigate the steady erosion of capital due to inflation and cost-of-living increases. For those with a long-term perspective, the stock market should be a central focus, as it has historically always headed in a higher direction, whatever the short-term headwinds, and surpassed previous records. The moment when average investors have dialed back equity holdings and moved to safe havens such as cash may indeed be the best time to purchase stocks for value.