How Toby Mitchell Performs Portfolio Rebalancing

Toby Mitchell, Vice President/Investments, is part of The CR Wealth Management Group of Stifel. Providing wealth management and investment banking services, Toby Mitchell develops, monitors, and rebalances his clients’ wealth management plans. 

Rebalancing is buying and selling portfolio assets in order to return them to their original weights. Every asset in a portfolio has a preferred weight that is predetermined to match an investor’s investment objective, risk tolerance, and investment time fame. However, asset weights do not remain the same throughout the life of the portfolio. They change based on market movement. 

For example, a client’s portfolio can have stocks alongside treasury and corporate bonds. The stocks can be weighted at 50%, treasury bonds at 40%, and corporate bonds at 10%. If the stock market goes up over a year and the value of stocks rise by 25%, this will increase the stock weighting. Toby will therefore sell stocks and reinvest in bonds to return each asset to its original weight. 

Rebalancing is also performed within a specific asset class. For example, within a client’s stock mix, if stock X goes up 20% and stock Y goes down 10%, it will upset the original stock weight. Toby will therefore sell a portion of stock X and invest in another stock to maintain the original balance.

Rebalancing may have tax consequences, which you should discuss with your tax advisor.
An investment in stocks will fluctuate with changes in market conditions and may be worth more or less than principal invested when sold.

When investing in bonds, it is important to note that as interest rates rise, bond prices will fall.

Article provided by Toby Mitchell, Vice President/Investments with Stifel, Nicolaus & Company, Incorporated, Member SIPC & NYSE, who can be contacted in the New York, New York office at (212) 328-1000.

1095 Avenue of the Americas
3rd and 4th Floor
New York, NY 10036

The Importance of Quarterly Reports in Tracking Investment Performance

Based in New York City, Toby Mitchell serves as Vice President/Investments with Stifel’s CR Wealth Management Group and provides experienced financial guidance in an effort to enable his clients to prudently grow and protect their assets. One distinct value-added aspect of Toby Mitchell’s services is a quarterly measurement and evaluation of progress. 

The importance of these reports, when taken in tandem with company-issued reports on specific equities, increases over time because they provide a point of comparison and include details related to management and asset performance. 

Among the important concepts to make note of regarding specific stocks is earnings per share (EPS). It is critical to determine whether EPS and sales correlate to consensus estimates among Wall Street analysts who cover the company. The relation between actual results and investor expectations helps determine equity performance in the short term. 

As a way of assessing management guidance and the quality of the stock given specific economic trends, Toby recommends his clients’ pay attention to a company’s own forecasts and the actual results from quarter to quarter. If certain equities or asset classes consistently fail to meet objectives, it might be beneficial to consult an experienced financial advisor to possibly rebalance the portfolio.

Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE

1095 Avenue of the Americas
3rd and 4th Floor
New York, New York 10036

Toby Mitchell: The Strategy of Planned Giving

Since early 2016, Toby Mitchell has served as Vice President/Investments at Stifel in New York City. Toby Mitchell and his colleagues work closely with tax and estate attorneys who specialize in wills and planned giving.

Toby Mitchell serves a number of high net worth and ultra-high net worth clients who may wish to include planned giving in their estate or financial planning. Through planned giving, donors may be able to contribute more or differently than they would have normally been able to do throughout their lives. 

Some donors, for example, use planned giving to donate appreciated assets. This may enable donors to receive a tax deduction on the full value, thereby reducing capital gains tax. Others choose to identify a charitable organization as recipient of a life insurance or retirement account payout after the donor’s death, thus reducing estate tax on that payout.

Other options for planned giving include those strategies that return benefits to the donor or his or her heirs. A charitable lead trust, for example, creates funding for a selected charity until the death of the donor, at which time his or her beneficiaries receive the remainder. A charitable remainder trust, by contrast, creates income for an individual, but leaves any leftover funds to the charity after the account holder passes.

Toby Mitchell helps his clients understand how these different options may benefit their financial lifestyle. The process typically involves analysis of the investor’s assets and other strategies that may be in place.

Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE

1095 Avenue of the Americas
3rd and 4th Floor
New York, NY 10036

An Overview of the Series 66 Certification

New York financial professional, Toby Mitchell, is Vice President/Investments with the CR Wealth Management Group of Stifel. An experienced financial advisor, Toby Mitchell holds professional certifications that include the Series 66 security license, which allows him to offer a wealth of knowledge and strategic insight to investors.

Also known as the North American Securities Administrators Association (NASAA) Uniform Combined State Law Examination, the Series 66 exam certifies financial professionals as both securities agents and investment advisory representatives. Financial professionals holding the Series 66 security license have demonstrated knowledge equivalent to that required for Series 63 and Series 65 security licensure. Individuals granted Series 66 certification must pair it with a Series 7 license (which Toby Mitchell also holds) to register as investment advisors. 

Updated in May 2016, the 100-question, 150-minute Series 66 exam covers a variety of topics related to investment advisory while omitting many of the product and strategy topics covered by Series 7. Approximately half of the exam tests individuals’ knowledge of laws and regulations governing securities at both the state and federal level, including those addressing business ethics and fiduciary duties. A number of questions address the differing types of investors, factors that may influence their financial goals, and varying portfolio management strategies. 

Having passed the Series 66 exam, Toby has acquired knowledge of unique financial advisory needs, such as retirement planning. He is also well-versed in the vast array of investment vehicles, as well as in strategies for assessing risk, financial disclosure, and portfolio performance.

Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE

1095 Avenue of the Americas
3rd and 4th Floor
New York, NY 10036

The Basics of Private Equity

As Vice President/Investments with The CR Wealth Management Group of Stifel, Toby Mitchell leverages the knowledge he gained working as a financial advisor with Morgan Stanley and more than a decade functioning in the credit sector. From Stifel's offices in New York, Toby offers a broad range of investment services to clients to help them preserve and grow wealth.

Among the investment options The CR Wealth Management Group offers is private equity. A form of capital that does not get recorded on any public exchange, private equity involves direct investment into private companies from individuals or specially created funds. Typically, private companies utilize these funds to purchase new technologies, create working capital, or make acquisitions to bolster the company’s offerings.

Typically used as a medium- to long-term strategy, private equity investment is primarily made in mature companies, with investors receiving an equity stake in the private company in return for the investment. In many cases, private equity investors will work alongside the management teams of the companies they invest in, providing the benefits of their own expertise to facilitate sustainable growth.

Private equity funds are not appropriate for all investors. Investors should be aware that private equity funds may contain speculative investment practices that can lead to a loss of the entire investment. Private equity funds may invest in entities in which no secondary market exists and, as such, may be highly illiquid. The funds are not required to provide periodic pricing or valuation information to investors and often charge high fees that can erode performance. Additionally, they may involve complex tax structures and delays in distributing tax information.

Bills Set Franchise's Second Highest Record for Season Ticket Sales

Charitable Lead Trusts:

If you have a desire to give yearly to your favorite charity, instead of deferring that gift to sometime in the future, then a charitable lead trust (CLT) may be an option for you.

A CLT is a type of irrevocable trust that provides income to the charity now, for a specified period of years, with a remainder interest passing back to the donor, or to a family or other non-charitable beneficiary, at the termination of the trust. Generally, the gift to your heirs may be given with a reduced estate value that could lower your potential estate tax bill.

With a CLT, if the income in the trust is not sufficient to make the required annual payment to the charitable beneficiary, then principal must be distributed to make up the difference. There is no minimum or maximum payout percentage. The term of a charitable lead trust can be either for the life of an individual (or individuals), or for a term of years. The trust may also be structured with a combination of these, including both lives and a term of years. A CLT may either be created during the lifetime of the donor (intervivos) or at the donor’s death (a testamentary trust).

For income tax purposes, a contribution to an intervivos CLT is only eligible for an income tax deduction if the donor (grantor) is treated as the owner of the income interest, which results in all income being taxed to the donor as it is received by the trust. A gift or estate tax charitable deduction is generated (to offset the income generated) depending upon whether the gift to the trust is made during lifetime or at death.

This type of trust is used when the donor wants to provide benefit to the charity now but wants to retain some interest in the property either for the donor, the donor’s family, or some other non-charitable beneficiary. The donor can set the trust up to pay the remainder to his or her heirs with reduced gift or estate tax consequences, which allows the donor to maximize what is passed on to heirs while minimizing the tax associated with that transfer.

A CLT offers a great way to make annual gifts to charity and provide for your heirs, while potentially reducing your estate and gift tax burden. To learn more about CLTs and to determine whether they are appropriate for you, you should discuss your particular situation with your financial, attorney, and tax advisor.

Article Provided by Toby Mitchell, a Director/Investments with Stifel, Nicolaus & Company, Incorporates, Member SIPC and New York Stock Exchange, who can be contacted in the New York 3 Bryant Park office at (212) 328-2837.