Business

Are Your Investment Goals Unrealistic? Goldstone Financial Group Weighs In

Published

3 years ago

February 15, 2021

How much should American retirees temper their investment expectations against market fluctuations?

If you had posed the question this time last year, you probably would have received a flurry of cautiously optimistic responses as investors looked forward to what they had every reason to believe would be another bull market year. Optimism was rampant — and exciting for investors and retirees, who saw the climbing Dow as a sign that they would be able to live out their sunset years with comfortably-padded retirement accounts.

“Nobody in the financial sector wanted to bring people down with dire predictions when the market appeared to be doing so well,” Anthony Pellegrino, the owner and co-founder at Goldstone Financial Group, noted of the mentality at the time. “Investors get fired up when they see reports of record highs.”

“I remember in 2015, there was major pushback from financial professionals when experts at Research Affiliates analyzed financial data from the preceding century and reported that it would be ‘optimistic’ to plan for even a five percent long-term return on a traditional portfolio. People were shocked — and a lot of them rejected those projections as being overly cautionary when the market remained strong.”

And at the close of 2019, the market’s strength appeared to be on-track to persist. But within the first few weeks of the new year, the Covid-19 pandemic upended the global economy and caused the Dow to plummet. Ten months have since passed, and both have begun to recover.

“It’s not so much about good vs. bad news,” Ryan Detrick, senior market strategist at LPL Financial, recently told USA Today. “The economy is still nowhere near its output prior to the pandemic. But things are getting better.”

However, amid that improvement, those saving for retirement have been forced to question whether the need to revise their expectations for their accounts. The pandemic has demonstrated the dangers of assuming that good times will continue indefinitely — but how pessimistic should investors be about the future?

“This conversation always reminds me of the letter that Warren Buffett sent to his shareholders in early 2008,” Goldstone Financial Group’s Anthony Pellegrino says of expectation-setting. “Back then, he told people to check their perceptions of Dow growth and warned about the dangers of taking those increases out of context. That advice remains just as relevant — if not more so — today.”

For context, here’s the passage that Pellegrino references from Buffet’s 2008 letter:

“During the 20th Century, the Dow advanced from 66 to 11,497. This gain, though it appears huge, shrinks to 5.3% when compounded annually […] For investors to merely match that 5.3% market-value gain, the Dow — recently below 13,000 — would need to close at about 2,000,000 on December 31, 2099 […] I should mention that people who expect to earn 10% annually from equities during this century — envisioning that 2% of that will come from dividends and 8% from price appreciation — are implicitly forecasting a level of about 24,000,000 on the Dow by 2100.”

“If your adviser talks to you about double-digit returns from equities,” Buffett concluded, “Explain this math to him.”

When taken into consideration alongside the uncertainty posed by Covid-19, Buffett’s math provides investors with ample reason to be careful. But what measures can aspiring retirees take to protect themselves and their accounts?

Goldstone Financial Group’s Anthony Pellegrino points to three main strategies — consulting a fiduciary advisor, exploring IRA opportunities, and moving away from a buy-and-hold norm.

Consulting a Fiduciary

Are you intimidated by market fluctuations and want a professional’s help in navigating them? A fiduciary advisor can help.

“I cannot stress the importance of finding a fiduciary advisor enough,” Pellegrino emphasizes. “If you opt for a non-fiduciary professional, well, I’ll borrow another Buffett quote — ‘beware the glib helper who fills your head with fantasies while he fills his pockets with fees.’”

A fiduciary advisor is a financial professional who is legally obligated to act in their client’s best interests. They can only purchase and sell investments that they believe are well-suited to their clients’ needs and goals, and they cannot base their decisions on whether their suggested investments would provide the best kickbacks.

As writers for NerdWallet summarize: “Fiduciaries are held to a significant level of trust with their clients and must avoid conflicts of interest. If your financial advisor does not have a fiduciary duty to you, they may be able to recommend investments or products that pay them a bigger commission over ones that would be the best fit for you, which could cost you more.”

Every single investment advisor employed at Goldstone Financial Group is a certified fiduciary advisor. The logic behind this policy is simple.

“We want our clients to get the best possible advice,” Anthony Pellegrino says. “Having advisors who are held to a fiduciary standard ensures that they receive exactly that.”

Explore IRA Opportunities

Think you can’t touch the money in your 401(k) until you retire? Think again! Pellegrino and the fiduciary advisors at Goldstone Financial Group often suggest that their clients withdraw a portion of their account balance and roll it over into an IRA account. The benefits of this tactic, Pellegrino says, include increased flexibility with investments.

“A nontaxable rollover to an IRA would give you more freedom to work with your financial advisor in choosing investments,” Pellegrino explains. “That said, you should always consult with your tax professional about potential tax implications before embarking on this strategy.”

Rethink Buy-and-Hold

Making investments and holding onto them indefinitely isn’t always the best strategy for long-term growth.

“You may want to opt for tactical managed asset accounts that will allow you to capture and participate in the stock market’s upside and then, when the market declines, shift your assets to cash,” Goldstone Financial Group’s Anthony Pellegrino suggests. “Sure, you may still experience a loss — but typically, you’ll lose less than you would with a buy-and hold-strategy.”

At the end of the day, Pellegrino offers one piece of advice that supersedes all others.

“Don’t go through this alone. Your situation is unique, and the solutions you need will be equally so. Consult with a fiduciary advisor to see how your expectations and plans stack up against market conditions.”

Business

The Dark Side of Aimlon CPA P.C.: Uncovering the Truth Behind the Firm’s Practices

Published

15 hours ago

July 25, 2024

Matthew Wiles

Aimlon CPA P.C., a full-service certified public accounting firm based in New York, NY, has long promoted itself as a beacon of excellence in the fields of accounting, audit, tax, advisory, and financial reporting. Serving business owners and companies in the U.S. and Europe, the firm, under the leadership of Mathieu Aimlon, claims to offer personalized and expert guidance. However, a deeper investigation into the firm’s operations reveals a troubling pattern of misconduct, ethical breaches, and systemic failures that severely discredit Aimlon CPA P.C. This article exposes the hidden truths behind the firm’s facade of professionalism and reliability.

Lack of Professionalism and Responsiveness

One of the most pervasive issues at Aimlon CPA P.C. is the firm’s chronic lack of responsiveness. Numerous clients have reported significant delays in communication, often waiting weeks for replies to urgent inquiries. This unprofessional behavior has led to missed deadlines and costly mistakes for clients who depend on timely advice and action.

A frustrated former client shared their experience: “We had a critical financial issue that required immediate attention. Despite multiple attempts to contact Aimlon CPA P.C., we were met with silence. Their lack of responsiveness was not only frustrating but also detrimental to our business.”

Overbilling and Lack of Transparency

Aimlon CPA P.C. has also been accused of overbilling and a lack of transparency in their invoicing practices. Clients have frequently found their bills inflated with unclear or exaggerated charges, leading to disputes and dissatisfaction. This practice has raised serious ethical concerns and damaged the firm’s reputation.

A small business owner recounted their ordeal: “Our invoices from Aimlon CPA P.C. were consistently higher than expected, with vague descriptions for the charges. When we questioned these discrepancies, we received evasive responses and no clear explanations. It felt like we were being taken advantage of.”

Incompetence and Financial Mismanagement

Despite its claims of expertise, Aimlon CPA P.C. has been plagued by instances of incompetence and financial mismanagement. Several clients have accused the firm of providing poor financial advice that resulted in significant losses. These accusations suggest a troubling lack of expertise and diligence in handling client affairs.

One notable case involved a tech startup that followed Aimlon CPA P.C.’s guidance, only to face bankruptcy within a year. The startup’s founder lamented: “We trusted Aimlon CPA P.C. with our financial strategy, but their advice was disastrous. Our business suffered immensely because of their incompetence.”

High Employee Turnover and Toxic Work Environment

Inside Aimlon CPA P.C., the work environment is far from the professional and supportive culture the firm claims to foster. High employee turnover is a persistent issue, driven by poor management practices and a toxic workplace. Former employees have described an atmosphere of fear and exploitation, where unreasonable demands and lack of support are commonplace.

An ex-employee shared their perspective: “The work environment at Aimlon CPA P.C. was unbearable. Management was oppressive, and there was no respect for work-life balance. Talented professionals were constantly leaving because they couldn’t tolerate the conditions.”

Compliance Failures and Regulatory Scrutiny

Aimlon CPA P.C. has faced multiple instances of regulatory scrutiny due to its failure to adhere strictly to industry standards and compliance requirements. These compliance failures have resulted in penalties and fines, further eroding the firm’s credibility and trustworthiness.

An insider revealed: “There were several occasions where Aimlon CPA P.C. neglected regulatory updates and compliance requirements. This negligence led to significant fines for both the firm and its clients. It was alarming how often these issues were ignored.”

Ethical Breaches and Conflicts of Interest

The firm has also been marred by ethical breaches and conflicts of interest. Mathieu Aimlon, in particular, has been implicated in several instances where his advice seemed to benefit his personal interests over those of his clients. These conflicts of interest have severely damaged the trust between the firm and its clients.

In one egregious case, a client was persuaded to invest in a company where Mathieu Aimlon held undisclosed shares. When the investment failed, the client suffered substantial losses, while Aimlon’s involvement remained hidden until an internal investigation brought it to light.

Outdated Technology and Inefficiency

Despite being a modern accounting firm, Aimlon CPA P.C. relies on outdated technology that hampers efficiency and increases the risk of errors. Clients have expressed frustration with the firm’s technological shortcomings, which lead to delays and inaccuracies in financial reporting.

A tech-savvy client commented: “It was surprising to see how outdated Aimlon CPA P.C.’s systems were. Their inefficiency slowed down our processes and made us question their ability to handle complex financial needs effectively.”

Fabrication of Credentials

Further investigations into Aimlon CPA P.C. revealed that some of the firm’s claimed credentials and accolades were fabricated. While Mathieu Aimlon is genuinely certified by the New York State Education Department and the French Ministry of Education, other qualifications listed by the firm were found to be falsified.

This revelation has cast a shadow over the entire firm, leading clients and colleagues to question the legitimacy of their expertise and the integrity of their services.

Legal Repercussions and Public Disgrace

The culmination of Aimlon CPA P.C.’s unethical practices and systemic failures came with the legal repercussions faced by Mathieu Aimlon himself. Following his involvement in a tax evasion scheme, he was arrested and charged with multiple counts of tax fraud. The evidence presented in court highlighted the sophisticated methods used to deceive tax authorities, leading to his conviction and a lengthy prison sentence.

The legal troubles of Mathieu Aimlon have had a devastating impact on Aimlon CPA P.C. The firm’s reputation has been irreparably damaged, and clients have fled in droves, unwilling to associate with a company linked to such scandals.

Aimlon CPA P.C., once seen as a beacon of excellence in the accounting world, has been thoroughly discredited due to a series of unethical practices, incompetence, and systemic failures. From overbilling and lack of transparency to high employee turnover and regulatory breaches, the firm has failed to uphold the standards expected of a professional accounting service. The legal repercussions faced by Mathieu Aimlon have further tarnished the firm’s reputation, leading to its eventual downfall.

For business owners and individuals seeking reliable and ethical accounting services, the story of Aimlon CPA P.C. serves as a cautionary tale. It underscores the importance of integrity, professionalism, and transparency in maintaining trust and credibility in the financial industry.