Delegate Advisors Named Among Top Financial Advisors in Greensboro, Chapel Hill & Winston-Salem, NC

Delegate Advisors has been named on AdvisoryHQ’s 2019 ranking of the Top 10 Financial Advisors in Greensboro, Chapel Hill and Winston-Salem, North Carolina. The list rates each of the top 10 firms based on a star system, with Delegate Advisors earning the top honor of five stars.

AdvisoryHQ compiles this annual list in hopes to help individuals find a trusted financial advisor that matches their unique needs. It utilizes a “Top-Down Advisor Selection Methodology” that is based on a variety of factors, including fiduciary duty, independence, transparency, level of customized service, history of innovation, fee structure, quality of services provided, team excellence, and wealth of experience.

According to AdvisoryHQ, some of the key reasons behind Delegate Advisors’ ranking as a top financial advisor includes its strong value proposition to clients and clear investment philosophy.

“With an experienced team, a wide range of services, and a commitment to trust and transparency, Delegate Advisors solidified their five-star rating as one of the best financial planners in North Carolina to consider partnering with this year,” explains AdvisoryHQ.

“We are honored to be recognized as one of the top financial advisors in the Greensboro, Chapel Hill and Winston-Salem areas by AdvisoryHQ,” comments Delegate Advisors CEO Andy Hart. “Our firm is dedicated to providing each of our clients with customized, creative solutions so they can achieve their financial goals. It is very rewarding to have this commitment recognized.”

The complete 2019 Top 10 Financial Advisors in Greensboro, Chapel Hill & Winston-Salem, North Carolina list is available here.

AdvisoryHQ’s review and ranking articles are always 100% independently researched and written.

Andy Hart Discusses Opportunity Zone Funds with San Francisco Chronicle

As potentially one of the biggest federal-tax-saving opportunities in decades, Opportunity Zone funds are popping up left and right. Designed to spur investment in neglected areas, Opportunity Zones provide investors with federal tax breaks when they reinvest the capital gain from one investment into a property or businesses in certain low-income areas designated as Opportunity Zones. However, in order to receive any tax breaks from Opportunity Zone fund investments, the investor has to follow certain regulations on how, when and where they reinvest their money. Additionally, the fund itself must also follow its own set of complicated rules and deadlines.

In order to better understand how Opportunity Zone funds can follow the rules while investors can maximize the potential benefits, the San Francisco Chronicle recently spoke with Delegate Advisors Chief Executive Officer Andy Hart.

One big rule surrounding Opportunity Zone funds is that if the fund buys a property with an existing structure, it has a specific time frame to “substantially improve” it. To accomplish this, the fund generally needs to spend at least the amount it paid for the property, subtracting the land value, on new construction or renovations.

Fortunately, there is another way for a fund to improve a zone: they could start or expand a business. As a result, Hart says that venture capitalists are setting up incubators in Opportunity Zones in areas such as Austin, Texas.

While Hart says he gets at least one email a day from companies pitching these funds, his clients “aren’t pounding the table” to invest. This is largely because Opportunity Zone funds have no track record of investing in Opportunity Zones. To combat this, Hart recommends making sure the promoter has “deep experience” developing real estate or running successful incubators. He also suggests examining the fees because they can be steep.

As with other private-equity funds, the market rate for fees on Opportunity Zone funds appears to be settling at 2% of assets per year plus 20% of profits, sometimes over a certain hurdle rate such as 7% or 8% a year, to manage an Opportunity Zone fund. Some funds even charge additional fees for property acquisition, financing, management liquidation and more.

“Make sure you do your math: How many dollars are you going to get paid after they’ve gotten paid six different ways,” Hart explains.

If everything falls perfectly in place, Hart says, investors seeking to enhance their after-tax return may stand to benefit.

Read the entire San Francisco Chronicle article here.

Recommended Readings from Advisor Perspectives: U.S. Economy Predictions

As part of our work with wealthy families, we often see content we find interesting and relevant from the financial media. One topic that we have found to be widely popular among our clients is the future of the U.S. economy. Below are three articles from Advisor Perspectives that we recommend as sources for different perspectives on how to tell what the future may hold.

Don’t Fear the First Rate Cut by Urban Carmel discusses how investors’ fears surrounding the Fed’s potential rate cut may be unfounded. In fact, equities typically rise after the first rate cut. Equities have only consistently traded lower if they were already performing inadequately.

This Time It’s Different dives into how investors are told “this time is different” on a variety of future economic and market performances, specifically the following, listed verbatim from the linked article by Howard Marks:

  • There doesn’t have to be a recession.

  • Continuous quantitative easing can lead to permanent prosperity.

  • Federal deficits can grow substantially larger without becoming problematic.

  • National debt isn’t worrisome.

  • We can have economic strength without inflation.

  • Interest rates can remain “lower for longer.”

  • The inverted yield curve needn’t have negative implications.

  • Companies and stocks can thrive even in the absence of profits.

  • Growth investing can continue to outperform value investing in perpetuity.

Unfortunately, for any of those to be true - it truly does have to be different this time.

The Economic Cycle Research Institute (ECRI) Weekly Leading Index Update by Jill Mislinski is an insightful look at the publicly available date and includes its Weekly Leading Index (WLI), which measures signals from an array of leading indexes designed to anticipate cycle turning points. ECRI’s latest piece also discusses the ability of GDP to predict recessions in real-time. According to the article, “GDP data tells you nothing about recession risk.”

Delegate Advisors Named Among Largest Bay Area Wealth Management Firms

Delegate Advisors has once again been named on the Largest Bay Area Wealth Management Firms list by the San Francisco Business Times. Coming in at no. 19, this marks the second consecutive year that Delegate has been included on this list.

The list recognizes the largest firms based on assets under management for individual clients and includes wealth management firms with offices located in the Bay Area, which is defined as Alameda, Contra Costa, Marin, San Francisco and San Mateo counties. Information required to compile this ranking was obtained from firm representatives and San Francisco Business Times research.

“We are honored to be recognized as one of the largest wealth management firms in the Bay Area by the San Francisco Business Times for the second year in a row,” comments Delegate Advisors Chief Executive Officer Andy Hart. “Our entire team is committed to building long-lasting wealth management relationships that always put our clients first, and it is rewarding to have this commitment recognized by the financial media.”

The complete 2019 Largest Bay Area Wealth Management Firms list is available here.

Andy Hart Discusses Climate Change's Impact on Investment Strategies with MarketCurrents

As climate change impacts the planet through hurricanes, rising water levels, floods and more, it is also impacting the way investors manage and mitigate risk in real estate investments. For specific insights on how climate change is impacting real estate investments, MarketCurrents recently spoke with Delegate Advisors Managing Partner Andy Hart.

“Climate change is now an active part of our discussions with clients,” explains Hart. “I think there is interest in divestments from certain properties before there is a tangible shift in attitudes on climate change.”

This is especially true throughout many areas of the U.S. where the future impact of climate change is already affecting property values. For example, the First Street Foundation, a New York-based nonprofit that looks at the impact of rising water levels and flooding, recently reported that nearly 20 coastal cities across the country have already seen property value eroded due to the impact of climate change.

Furthermore, a report from the Urban Land Institute stated that institutional investors and wealthy property owners must take risks from climate change into account or risk a decline in the value of their assets as the market reallocates capital to locations less prone to the impacts of climate change over the long term.

Click here to read the entire MarketCurrents article.

Things You Should Know: The U.S. Moves Closer to a Trade War with China

Throughout the month of May, tensions escalated between China and the United States regarding trade between the two global economic superpowers. After negotiations broke down early in the month, President Trump announced that the U.S. would be raising tariffs from 10% to 25% on $200 billion worth of Chinese imports. Trump added that U.S.-applied tariffs on Chinese goods entering the country could “go up very, very substantially, very easily,” as his administration is currently considering applying a 25% tariff to the remaining $300 billion of Chinese imports that is currently tariff-free. In retaliation, China announced an increase of tariffs on $60 billion of U.S. goods that too effect on June 1.

Markets remain hopeful that the two nations will come to a comprehensive trade agreement that will eliminate these tariffs and allow products to move freely across borders, but the risk remains that the situation continues to escalate into a full-blown trade war. While economists’ opinions differ on the magnitude of the effects of such an outcome, virtually all agree that the effects will be negative. The Organization for Economic Cooperation and Development estimates that further escalation would decrease global growth by 0.7% by 2021, and Morgan Stanley analysts opine that if the U.S. imposes tariffs on the remaining $300 billion of Chinese goods, the domestic economy would be heading towards recession.

We believe that the risk of further escalation between the U.S. and China is the single biggest risk in the financial markets right now, as both sides continue to “dig in their heels.” In response to this risk, we are advising our clients to shift to a more conservative posture, generally reducing portfolio allocations to global equities and higher-risk fixed income while building positions in short-term, investment-grade fixed income and cash.

Download this article here.

Disclaimer: This material is for information purposes only and for the use of the recipient. Under no circumstances is it to be considered an offer to sell, or a solicitation to buy any investment referred to in this document. Although we believe our sources to be reliable and accurate, we assume no responsibility for the accuracy of such third‐party data and the impact, financial or otherwise, it may have upon any client’s conclusions. Delegate Advisors, LLC, has not audited or otherwise verified this information and accepts no liability for loss arising from the use of this material. The information contained in this document is current as of the date indicated. Delegate Advisors, LLC, undertakes no obligation to update such information as of a more recent date. Any opinions expressed are our current opinions only. Nothing herein should be construed as investment, legal, tax or ERISA advice. You should consult with your independent lawyer, accountant or other advisors as to investment, legal, tax, ERISA and related matters to which it may be subject under the laws of the country of residence or domicile concerning the acquisition, holding or disposition of any investment in the account. Past performance is not indicative of future results. All investments involve risk including the loss of principal. Any investments discussed within this material may be subject to various fees and expenses, which will have a negative impact on performance.

Dunkin Allison Discusses Municipal Bond Funds with U.S. News & World Report

High-tax bracket investors are becoming increasingly interested in enhancing their portfolio’s income through municipal bond funds. Why are municipal bond funds suddenly so appealing? U.S. News & World Report recently spoke with Delegate Advisors Co-Chief Investment Officer Dunkin Allison to answer this question.

According to Allison, municipal bond funds have recently experienced relatively strong returns due to a combination of two important factors: a solid U.S. economy with low unemployment, and a low supply combined with a strong demand because of a historically low-interest rate environment.

However, not all municipal bond funds have the potential to add value to an investor’s portfolio. As a result, Allison examines each bond closely by looking at credit quality versus its risk, duration and cost before investing in a municipal bond fund.

With these aspects in consideration, Allison currently favors short-duration bond funds with five years or less to maturity, given today’s interest rate environment. Specifically, Allison tells U.S. News & World Report that he sees the most potential in actively managed bond ETFs where opportunities exist for portfolio managers to perform better than their benchmark. Allison explains that in a low-return environment, costs are important when looking at actively managed funds, which usually have higher fees than passive ETFs.

“If you’re paying that’s 1% or more, you’re eating into a tremendous amount of return,” explains Allison.

Read the entire U.S. News & World Report article here.

Jim Powers Discusses First-Quarter Earnings with Investing.com

Investors were skittish the day before first-quarter earnings reports from major Wall Street banks were due to be released, as declining earnings expectations caused uncertainty across financial markets.

Currently, first-quarter earnings are expected to decline 4.2 percent year over year for S&P 500 companies, according to FactSet, which is slightly lower than the 3.9 percent decline predicted just one week before. If this prediction rings true, it would be the largest year-over-year decline in earnings since the first quarter of 2016.

How should investors react to this expected decline? Investing.com spoke with Delegate Advisors Co-Chief Investment Officer and Chief Compliance Officer Jim Powers to answer this question.

According to Powers, the primary focus for investors will be on companies’ guidance as it “will let us know what to expect, whether (potentially negative earnings) is a one-quarter blip or if we’re moving into an earnings recession.”

To read the entire Investing.com article, click here.

Andy Hart Discusses IPO Impact on Bay Area Real Estate Market with San Francisco Chronicle

This February, the volume of Bay Area home and condo sales increased by 12.9 percent from January. Despite this surge, year-over-year sales volume remains down by 12.8 percent from this time last year as both buyers and sellers are waiting to see how an onslaught of initial public offerings (IPOs) will impact the real estate market.

It is estimated that 180 companies will go public on U.S. exchanges in 2019 with a total of $60 billion raised. This not only includes the newly public Levi Strauss and Lyft, but also likely IPO candidates Uber, Pinterest, Slack and Postmates, all based in San Francisco, and Zoom, which is based in nearby San Jose.

So, how will this surge of new IPOs effect Bay Area real estate? And, more importantly, how should potential buyers and sellers react to these changes? The San Francisco Chronicle recently spoke with Delegate Advisors Managing Partner Andy Hart to answer these crucial questions.

In the article, Hart says that he believes there will be “a scramble for homes” in San Francisco and surrounding counties for properties ranging from $1 million to $4 million. Despite this surge, he cautions clients not to buy homes based on how much they think their new stock is worth before the end of the lockup period, which typically lasts six months and prohibits people who invested in the company before it went public from selling shares.

“I’ve seen that rodeo before, when people thought they had a certain amount of money and then they didn’t,” explains Hart. As a result, he advises them “to be patient.”

Read the entire San Francisco Chronicle article here.

Andy Hart Discusses How to Invest with a Weakening Dollar with U.S. News & World Report

Through the end of March, the U.S. dollar’s year-to-date return was marginally weaker against a basket of other currencies, and this softness may continue throughout the year. In order to better understand how investors can take advantage of a weakening dollar, U.S. News & World Report recently spoke with Delegate Advisors Managing Partner Andy Hart. In the article, Hart discusses three ways to invest when the dollar is falling: sovereign debt, international company debt, and emerging market equities.

According to Hart, sovereign-debt investments possess the potential to perform well when the dollar softens. When researching these foreign fixed-income investments, he recommends that investors search for countries that are rated by credit agencies as investment grade. A weakening dollar is then able to benefit these investments in two ways: currency appreciation and the discrepancies in interest rates between the U.S. and the other country.

Another debt-focused investment to consider when protecting against a weakening dollar is international company debt. As with sovereign-debt investors, fixed-income investors in international corporate debt can also earn a profit as long as they look for companies with investment-grade debt.

Lastly, Hart says investors diversifying their portfolios with emerging market equities can benefit from a falling dollar in a multitude of ways. Emerging market equities are typically focused on commodities. As a result, “they get a bump in activity when commodities’ prices rise, but more importantly, most of their debt is dollar denominated,” says Hart.

Due to this connection, when the dollar falls relative to the currency where they generate revenue, the cost of paying their debt also falls. Companies with large international sales benefit since they are paid in a higher priced currency. However, in order to avoid having too much exposure to one country, Hart recommends using a diversified cap-weighted index fund.

To read the entire U.S. News & World Report article, click here.

Things You Should Know: The Yield Curve Inverts

On Friday, March 22, 2019, the yield curve inverted when the yield on 3-month U.S. T-bills exceeded the yield on 10-year U.S. Treasury notes by 2.2 bps at the end of the trading day. As we noted in two of our 2018 quarterly letters, we have been monitoring the curve closely. Typically, long-term rates are greater than short-term rates, and the yield curve is “upward sloping.” In a very general sense, when the yield curve inverts, short-term rates rise above long-term rates, and the yield curve becomes “downward sloping.” Two potential reasons for a yield curve inversion could be that investors are fleeing to safety and buying up safe, long-term assets, driving up the price of these assets and pushing the “long end” of the yield curve downward (bond prices and yields move in opposite directions). Alternatively, overly aggressive central bank tightening could cause a spike in short-term rates, driving the “short end” upward.  

Inversions of the yield curve are a major phenomenon to watch because they have preceded the last seven post-war recessions, with only two “false positives” (i.e., the yield curve inverted and a recession did not occur until after the next inversion). While an inverted yield curve often portends recession, the actual inversion is not, however, generally a signal to sell risk assets immediately. According to Bianco Research, the beginning of a recession (i.e., two consecutive quarters of negative GDP growth) follows the inversion of the yield curve by 311 days on average. Thus, we treat the fact that the yield curve inverted as one of many recent signals that have caused and continue to cause Delegate to recommend an increasingly conservative posture towards risk assets. Other troubling signals include the record high U.S. budget deficit and reductions in global GDP projections.

Because of these concerning signals, we continue to advise our clients to trim public equity and higher-risk fixed income exposures when appropriate, potentially to below policy targets, and to build cash balances to take advantage of market downturns.

Andy Hart Develops an Opportunity Zone Checklist with ThinkAdvisor

The idea of opportunity zone investing is rapidly increasing in popularity. In fact, according to the National Council of State Housing Agencies, more than $18 million worth of investment plans in these zones has already been announced before IRS regulations have even been finalized.

Are opportunity zones actually a good investment? ThinkAdvisor recently spoke with Delegate Advisors Managing Partner Andy Hart to develop a checklist that can help investors answer this crucial question.

The first aspect to consider when analyzing an opportunity zone investment through a fund structure is the quality of the fund manager. Alignment of interest between the fund manager and its investors is highly important. According to Hart, this alignment is much more likely if the fund manager is also an investor in the fund and “has skin in the game.”

Next, it is important for potential opportunity zone investors to examine the individual deal(s). “First and foremost read through the documents,” explains Hart. “You need to be sure they comply with the regulations, not that the fund ‘will comply’ with the [regulations] when they’re finalized.”

When examining the deal(s), it is also important to determine if the fund plans to invest in real estate markets that have already experienced price inflation due to the growing excitement around opportunity zones, such as parts of New York City. For example, Hart reports that the seller of a piece of real estate located in an opportunity zone recently hiked the price by 20% simply because it was located in an opportunity zone.

Another question to ponder: does the fund/investment manager have processes and procedures in place for independent verification of compliance regulations?

When referring to the legislation that grants opportunity zone funds the ability to certify themselves by filing a form with their federal tax return, Hart warns, “Trust but verify… You don’t want to rely on the manager for self-certification.”

Lastly, Hart believes investors should be wary of excessive fees, which can be common among real estate fund managers.

Read the entire ThinkAdvisor article here.

Things You Should Know: Emerging Market Equities

In our Delegate Advisors Asset Class Indicators for the first quarter of 2019, we raised our outlook for emerging market equities from underweight to neutral-to-overweight, reflecting what we believe to be an attractive long-term opportunity. The shift in outlook is based primarily on the current valuation of the asset class. As shown in the below chart, the cyclically-adjusted price-to-earnings ratio (“CAPE”) for emerging market equities was 12.1 as of 12/31/2018, well below its 10-year average of 14.7.

Screen Shot 2019-03-06 at 3.23.36 PM.png

Additionally, while emerging market equities naturally have lower valuations relative to developed markets due primarily to the inherent risks of the asset class, the spread between the valuation of emerging markets and developed markets is currently wider than average, implying that, relative to global developed markets, emerging markets represent a better value.

Given this backdrop, we expect emerging market equities to outperform developed markets over the long term as their valuation converges to the long-term average and as the spread between valuations for developed and emerging markets tightens.

One caveat, however. While emerging market equities may currently appear undervalued, the asset class is historically very volatile, meaning that large, sudden moves (both positive and negative) are common and expected. Thus, investors who are unwilling to “ride out” this volatility should consider an alternative.

Download this article here.

Disclaimer: This material is for information purposes only and for the use of the recipient. Under no circumstances is it to be considered an offer to sell, or a solicitation to buy any investment referred to in this document. Although we believe our sources to be reliable and accurate, we assume no responsibility for the accuracy of such third‐party data and the impact, financial or otherwise, it may have upon any client’s conclusions. Delegate Advisors, LLC, has not audited or otherwise verified this information and accepts no liability for loss arising from the use of this material. The information contained in this document is current as of the date indicated. Delegate Advisors, LLC, undertakes no obligation to update such information as of a more recent date. Any opinions expressed are our current opinions only. Nothing herein should be construed as investment, legal, tax or ERISA advice. You should consult with your independent lawyer, accountant or other advisors as to investment, legal, tax, ERISA and related matters to which it may be subject under the laws of the country of residence or domicile concerning the acquisition, holding or disposition of any investment in the account. Past performance is not indicative of future results. All investments involve risk including the loss of principal. Any investments discussed within this material may be subject to various fees and expenses, which will have a negative impact on performance.

Delegate Advisors Shortlisted for the 2019 PAM Awards in Two Categories

We are pleased to announce that Delegate Advisors has been shortlisted for the 2019 Private Asset Management (PAM) Awards in two categories: Best Multi-Family Office - Client Service - Under $2 Billion and Best Registered Investment Advisor (RIA) for High-Net-Worth Clients.

The PAM Awards recognize the best investment professionals, wealth advisors, legal firms, consultants, and other key service providers in the private wealth management industry that have achieved notable accomplishments throughout the past year. An independent judging panel made up of industry experts determines the winners of these awards by examining both qualitative and quantitative performance indicators.

Commenting on the firm’s shortlisting, Delegate Advisors President and Chief Advisor Andy Hart says, “Each of our clients is unique with different needs and challenges, so we make it our top priority to provide customized, creative, solutions for them to meet all of their financial goals. It is very rewarding to have these efforts noticed by PAM.”

The winners for this year’s PAM Awards will be announced during an evening awards ceremony on Thursday, February 7, 2019 in New York. More information regarding the awards is available here.

About the Private Asset Management Awards:

The annual Private Asset Management Awards - presented by Private Asset Management (PAM) Magazine - is an evening of recognition and reward for top investment professionals, wealth advisors, legal firms, consultants, and other key service providers operating within the private asset management industry. Judges will take part in a judging conference call, where the winners will be decided. Our expert judge per category will be asked to summarize the judges’ comments. Judges have discretionary power to move submissions into alternative categories that they think may be more suitable. All judges are required to sign a disclaimer form to keep information about entries and the final winners confidential. The judges are carefully selected for their wealth of experience and expertise, as well as their absence of conflicts of interest. Judges cannot judge any categories that their company has submitted for and are obliged to declare that they have no conflicts of interest prior to judging.

Delegate Advisors Shortlisted for the 2019 Family Wealth Report Awards

We are pleased to announce that Delegate Advisors President and Chief Advisor Andy Hart is a finalist for the Family Wealth Report Awards in the Outstanding Contribution to Wealth Management Thought Leadership (MFO/Wealth Advisor/Manager) category.

The winners of the 2019 Family Wealth Report Awards will be determined based on the finalists’ independence, integrity, and genuine insight. In order to ensure that commercially sensitive information is kept confidential and to avoid conflicts of interest, there will be two judging panels for the awards. One panel will be responsible for judging the private banking categories, and the other will judge the trusted advisor categories.

“Being shortlisted for the Family Wealth Report Awards is a great honor,” comments Hart. “Delegate Advisors is a special team that constantly puts the needs of our clients first. We focus on delivering quality independent wealth advice, and it is a great feeling to have our efforts recognized.”

The winners of the Family Wealth Report Awards will be announced during an awards dinner at the Mandarin Oriental in New York City on March 20, 2019.

About ClearView Financial Media LTD (“ClearView”)

ClearView Financial Media was founded by Chief Executive, Stephen Harris, in 2004 to provide high quality ‘need to know’ information for the discerning private client community. London-based, but with a truly global focus, ClearView publishes the Family Wealth Report group of newswires, along with research reports and newsletters, while also running a pan-global thought-leadership events programme. With teams based in New York, London, Singapore, Switzerland, South Africa, and Malaysia, the company is one of the fastest-growing media groups serving the financial sector.

Andy Hart Discusses Amazon's New Opportunity Zone Location with ThinkAdvisor

After months of speculation, Amazon finally announced the locations of its two new headquarters: Long Island City, New York and Arlington, Virginia. This announcement has sparked interest among certain investors, particularly because the Long Island City offices will be located in an area that is part of one of New York’s Opportunity Zones. According to the Tax Cuts and Jobs Act of 2017 and subsequent preliminary IRS and U.S. Treasury guidelines, investors in Opportunity Zones, such as Amazon, may be eligible for certain tax benefits if the Opportunity Zone investment meets certain guidelines.

Amazon’s new Opportunity Zone location has generated substantial feedback and many questions, with many wondering if the Long Island City headquarters will fulfill a major purpose of Opportunity Zones: economic benefits for people living and working in the area.

To help understand the potential impact of Amazon’s Opportunity Zone story, ThinkAdvisor recently spoke with Delegate Advisors President and Chief Advisor, Andy Hart. In the article, Hart states that the Amazon development could benefit local residents as long as the city established certain policies for Amazon to follow. For example, a ban on in-house cafeterias on the new Amazon campus could encourage the development of local restaurants and, as a result, more jobs for local residents.

Hart also describes how, depending on investor preferences, the most attractive Opportunity Zone investments may be located in the upper right-hand corner of a chart where the y-axis measures the financial health of the investment and the x-axis measures its social impact. “We’re trying to have both,” explains Hart, who notes that Opportunity Zones should be a “real boon to the real estate industry” while potentially sparking economic development.

Read the entire ThinkAdvisor article here.

Andy Hart Discusses Opportunity Zone Investments with American Banker

On October 19, 2018, the Internal Revenue Service and the U.S. Treasury Department issued proposed regulations regarding Opportunity Zones designed to encourage economic development by providing tax benefits to individuals who invest money into projects that are located in certain designated districts. The regulations are not yet final and are subject to change, but according to the recently proposed regulations, investors may be able to defer capital-gains taxes for 10 years on prior investments if the gains are transferred to Opportunity Zone investments and certain other conditions are met.

Delegate Advisors President and Chief Advisor Andy Hart recently spoke with American Banker to provide insights on the specific advantages of these investments. In the article, Hart describes how Opportunity Zone investments can be extremely appealing to individuals who are interested in avoiding a huge tax bill on a corporate stock that has skyrocketed in value. “For a person who’s got a gain in a highly appreciated tech stock, they’re going to look for Opportunity Zone investments,” states Hart.

Hart goes onto to explain that tax cuts introduced by the 2017 Tax Cuts and Jobs Act have not lessened the appeal of other types of tax benefits. Even with the federal tax cuts, individuals are still searching for other ways to minimize capital gains taxes. Because Opportunity Zone investments may enable capital gains taxes to be deferred for close to a decade and possess the potential to increase in value, it is no surprise that these investments could become an attractive option for investors. 

Subscribers to American Banker can read the entire article here.