In The News
Interest.com/March 13, 2018
Should You Lend Your Child Money to Buy a Home?
Kevin weighs in with considerations for parents lending adult children money to buy a home. He especially recommends formalizing the agreement with a promissory note and mortgage:
“The parents are going to have to work with a title company to create the required deed of trust documents and record these with the county in which the residence is located,” says Kevin Gahagan, a certified financial planner and principal of Mosaic Financial Partners in San Francisco. “This will secure their interest in the property.”
“A promissory note and mortgage should be executed between the parents and child,” he says. “Without this, the parents' financial interest in the property could be jeopardized were the child to lose the house to creditors. It also provides evidence that the funds provided are a loan and not a gift.”
This formal loan document should state the loan's interest rate, term and transfer-ability, Gahagan says. It should also include an amortization table showing the balance remaining and equity accrued at any point in the loan’s lifespan.
MarketWatch / February 16, 2018
How Much of Your 401(k) Retirement Plan is Affected by Market Volatility?
Diversifying your portfolio combats volatitily, and is a strongly-recommended best practice for investors looking to take action against rocky market conditions. Another? Don't lose your long-term vision:
In most cases, U.S. stock funds will see the greatest declines, more so than international stock funds, said Kevin Gahagan, a financial adviser at Mosaic Financial Partners in San Francisco. Fixed income bonds are not safe from a decline either, given the potential for rising interest rates. Still, if accounts are well diversified, employees won’t see a decline nearly as bad as the market as a whole, he said.
“The key for retirement plan participants is to not lose their long-term discipline and react to current market conditions,” he said.
San Francisco Business Times / February 13, 2018
Local 401(k) startups aim to bring retirement benefits to startups, small business [Subscriber Wall]
When it comes to small business and startups offering retirement benefits to their workers, is the 401(k) broker-provider the next target rife for startup disruption? Regardless, Kevin notes the need for checks and balances:
“Employers at a smaller firm may not have an HR department or a legal department and they’re going to need to work with what’s referred to as a third-party administrator, this is the firm that will keep you on the straight and narrow,” said Kevin Gahagan, a principal at financial advisory [firm] Mosaic Financial Partners.
CNBC / November 20, 2017
Advisors weigh in on the Wall St. Journal's Critique of Morningstar Ratings
Kevin is quoted in Deborah Nason's latest piece for CNBC's Smart Investing section, on the rating system employed by Morningstar. Kevin points out that low expenses is the true bottom line:
"The only metric that has been shown to have some degree of predictive ability is low fund expense," he said. "There is a reasonably consistent result that within any asset class or fund category, those funds with the lowest expenses will tend to outperform over time.
"This is one of the primary reasons that low-cost index funds tend to achieve top-quartile performance over time."
InsuranceQuotes / November 8, 2017
Should You Increase Your Homeowners Insurance If Your Property Value Spikes?
The median price for an American home has increased. If you own a home in a booming real estate market, how does this impact whether or not your insurance coverage is adequate? Note that we're talking about the structure and not the property here. Kevin is quoted throughout.
“The real key to properly insuring one’s home is insuring the cost of rebuilding the home if it were destroyed in a total loss,” Gahagan says. “The local per-square-foot cost to rebuild is the critical factor here.”
This article has been syndicated to the Huffington Post.
U.S. News & World Report / May 26, 2017
7 Times It Makes Sense to Refinance a Loan
Kevin weighs in with smart tips to keep top of mind when considering refinancing a loan. A great reminder: refinancing isn't free. Factor in closing costs and bank fees when making your decision.
The Penny Hoarder / May 25, 2017
We Asked Some Financial Advisers Everything You Want to Know About Money
Wondering how much you should be saving for retirement? Kevin Gahagan presents a pretty easy equation to find out:
“Take what it costs you to live today — both spending and taxes — and multiply this amount by 25. This would equate to a planned withdrawal rate of 4% over your lifetime. To this sum, you can add Social Security income which may allow for a lower withdrawal rate or can be a supplement to what you withdraw from your investments.”
Forbes / February 28, 2017
Only a Third of Workers Make this Key Retirement Move
Research shows that the number of Americans saving for retirement has decreased, reports Kate Ashford for Forbes. Medical debt and preparing children for college top the list of reasons why Americans aren't utilizing retirement savings vehicles. Kevin weighs in with a tip to get the 401(k) ball rolling:
“For those employees who receive annual salary increases, the best way to begin is to dedicate one half of your salary increase to your 401(k) contribution,” says Kevin Gahagan, a financial planner in San Francisco. “You’ve not been used to making the increased salary, so saving a portion of it won’t be felt as readily.”
InsuranceNewsNet / March 17, 2017
Strategies to Reap the Rewards of the Tax Loss Harvest
Wealth managers harvest tax losses through applying capital losses to reduce ordinary income, and writer Cyril Tuohy explains the process for InsuranceNewsNet. Kevin weighs in:
Capturing temporary losses to offset other realized gains “allows us to keep investment-related taxation at a lower current level,” said Kevin M. Gahagan, a financial planner with Mosaic Financial Partners in San Francisco.
“It needs to be acknowledged that this isn't a free lunch and it doesn't eliminate the eventual taxes that will come due,” he said. “This is a tax deferral strategy. It does defer the timing of when taxes may need to be paid.”
Telmundo.com / January 25, 2017
14 Consejos Basicos Para Invertir en 2017
In English, this title translates to “14 Basic Tips for Investing in 2017.” Kevin contributes several edifying tips in this gallery designed for Spanish speakers new to investing.
Wall Street Journal / September 5, 2016
Hunger for Yield Sends Investors Afar
Emerging-markets bonds are a hot destination for ETF investors looking to avoid sapping the “income” component of fixed income (often impacted by low and negative rates). Writer Ari Weinberg notes that “such funds can feel more like a stock than a bond. Fixed income from developed markets is often used to reduce risk in portfolios.” Weinberg quotes Kevin:
“Emerging-markets fixed income has characteristics [and a volatility and return profile] closer to emerging-markets equity.” Weinberg goes on to note that “Mosaic manages $550 million in portfolios of mostly ETFs and looks at EMB within its 'alternatives' allocation.”
Zing! Blog / June 20, 2016
Personal Finances: What Should You Do First?
Kevin outlines the first steps one should take in getting their finances in order, as interviewed by Jen Hansen for Zing! Blog by Quicken Loans.
Investor's Business Daily / June 17, 2016
When Advisors Lose Clients, They Analyze What Went Wrong and Learn
Writer Morey Stettner muses on the best practices developed from the occasional, inevitable process of losing a client. Kevin Gahagan weighs in.
Investopedia / June 3, 2016
Penny-Pinching: Your Best Weapon vs. Retirement Uncertainty
Writer Amy Fontinelle interviews Kevin on cutting down on spending in order to exercise larger control over the outcome of your future retirement; it's the only variable that individuals have direct control over.
Investopedia / May 31, 2016
Writer Amy Fontinelle interviews Kevin on retirement strategies:
“The fewer equities you have, the lower your withdrawal rate can be, Gahagan says. If your portfolio is 60% fixed income and 40% stocks, a 4% withdrawal rate is not realistic. But the solution is not an all-equity portfolio, either, because if there’s a severe recession and you’re forced to sell at a loss in the early years of your retirement, it can kill the sustainability of your portfolio, he says.”
Investopedia / May 27 2016
Retirement Planning: Why Real Rates of Return Matter Most
Returns after inflation are what matter: writer Amy Fontinelle interviews Kevin on how inflation effects a retirement portfolio's returns.
Investopedia / May 26, 2016
Writer Amy Fontinelle interviews Kevin on rates of return:
“We’ve seen capitalism survive recessions, depressions, world wars and all sorts of calamities. Capitalism has proven to be resilient and markets have continued to grow despite an array of problems. I don’t believe this will change.”
CNBC / April 1, 2016
Here's why millennials aren't investing
Kevin weighs in on utilizing an app to guide investment choices for Josh Weiss at CNBC.
CNBC / August 25, 2015
Millennials may benefit the most from the selloff
"You're buying whatever you're buying at a better price today than what it was last week," said Kevin Gahagan, principal and senior advisor at Mosaic Financial Partners in San Francisco.
Interest.com / July 13, 2015
Amy Fontinelle of Interest.com quotes Kevin on the pros and cons of lending money to your children.
Kevin Gahagan, our principal and senior advisor at Mosaic, was quoted in an article by Tom Anderson about when we should check our retirement portfolio, noting specifically that investors should not overreact to recent turmoil in the markets, since market volatility is always with us.
New Retirement / June 26, 2015
Kevin was interviewed by reporter Cassandra Dowell for this article on whether retirees should consider moving.