Warren Buffett is a true hero in the investing world, but financial advisors don't always agree with him. Barron's Advisor recently asked a handful of advisors when they encourage clients to follow the Berkshire chairman's advice and when they counsel them to go in a different direction. They discussed stock-picking, asset allocation, personal spending, and whether another investor will ever emerge as the "next" Buffett.
Among other most-read wealth management articles this week:
Retirees burdened by credit card debt. Nearly one-third of Americans 30 and older have more credit card debt than retirement savings, according to a recent survey from Schroders. A breakdown by age shows that 22% of respondents who are 70 or older said their credit card debt exceeds their savings; 28% of respondents between the ages of 60 and 69 said the same. Sometimes retirees try to solve the problem with risky investments. Financial advisors explain why that is a bad idea-and what investors should do instead.
HSAs are underused. Health savings accounts offer three potential tax savings: Contributions are tax deductible, investment gains on are tax-free, and withdrawals for qualified medical expenses are also tax-free. Americans are contributing more to their HSAs but still have low balances. That means they aren't taking full advantage of the tax benefits those programs offer, according to new research from the Employee Benefit Research Institute.
An advisor reflects on risk. Progress is a product of calculated risk-taking, advisor Frank McKiernan writes for Barron's Advisor. However, he notes, most humans overestimate risk in the short term and underestimate opportunity in the long term. That can be expensive. "The uncomfortable truth is doing nothing ends up being the costliest outcome of all," he writes.
Prison for giant Georgia Ponzi. The architect of a massive Ponzi scheme that bilked more than 2,000 investors out of $380 million has been sentenced to 20 years in prison. A federal court in Georgia on Friday also ordered Todd Burkhalter, 55, CEO of the financial advisory group Drive Planning, to pay $233.8 million in restitution. Todd Burkhalter defrauded more than 2,000 investors who thought they were investing in real estate projects.
Qualified Opportunity Zones deserve a look. With the passage of the One Big Beautiful Bill Act last summer, Qualified Opportunity Zones, or QOZs, have become a permanent wealth planning tool, writes guest columnist Jason Glasser. Opportunity zones are federally designated low-income census tracts where investors can receive tax benefits by reinvesting eligible capital gains. With the updated framework, commonly referred to as "QOZ 2.0," Congress has transformed a time-sensitive tax strategy into a broader wealth management approach that can help clients who have realized significant capital gains.
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