The Investment Advisor is Bullish on America and Pennsylvania

Posted by & filed under Asset Protection, Education Planning, Estate Planning, Financial Planning, Investment Portfolio Management for Less, Legislation and Regulation Affecting Investments, Retirement Planning, Retirement Plans, Tax Advisory.

1818 — Declaration of Independence by John Trumbull — Image by © PoodlesRock/Corbis

The investment philosophy of The Investment Advisor is based on American History and a long term view of the resilience of the American Economy. In short, we believe in you.

The Investment Advisor thinks it is important to understand the impact economic restructuring and the 4th Industrial Revolution have on investing and its implications for different asset classes. 

The Investment Advisor Believes in:

  1. The underlying strength and vitality of the American Economy.
  2.  Despite the economic and political turmoil the United States and other parts of the world have experienced. The underlying principles of investing have not changed.
  3.  Assessment of economic, legislative, and regulatory changes. The resulting impact for interest rates, the value of the dollar, industry, federal, state and local governments and the full spectrum of investments.

The Investment Advisor Believes Your Financial Health Depends on:

  1.  Your ability to access objective, current, informed opinions and advice regarding the securities held in your investment portfolio.
  2.  Your choice of the financial institution that holds and custodies your financial assets.  

The Investment Advisor is:                    

  1. Dedicated to achieving your investment goals within the context of the growth of your portfolio, the creation of income and preserving your principal.
  2. Believes in a total return philosophy. Realizing dividends and interest income can  provide support for the value of your portfolio and increase total return.
  3. Understands alternative asset classes Such as commodities and real estate are important to the overall value of your portfolio.

For a Complimentary Portfolio and Retirement Plan Review Call The Investment Advisor at 1-877-414-9021

or Request A Consultation at

Financial Training: Health Care and Long Term Care

Posted by & filed under Asset Protection, Financial Planning, HealthCare, Retirement Planning, Retirement Plans.

This image has an empty alt attribute; its file name is Physicians-1024x683.jpg

The Investment Advisor is offering financial training. As well as insight and analysis About Long Term Care and Health Care Planning.

You may be aware, there have been a number of concerns involving the quality-of-care people receive in nursing homes and with home health care.

Recovering from illness or disability. Especially, in today’s medical, economic and legal climate. Requires careful advance planning. In Pennsylvania, that means five years in advance of any life changing health event for it to be effective. Not only from an estate planning perspective. Where you create your documents. Such as a will, powers of attorney and a trust if you need it. Also, From an educational perspective. So, you and your power of attorney are armed with the education and information you need to navigate the medical and long term care system. So, you can recover.

Successful navigation and recovery from health problems. Which requires modifying your residence, seeking professional medical help in your residence or changing your location of your residence. Is not something only the elderly experience. It can happen to a CEO, a business owner, your employees, a son, a daughter, a grandparent, a parent or yourself. At any age.

From home-to hospital-to nursing home-or back home again with home health care. Considering how the medical industry so poorly handles this. Requires advance education and training. Not only for you. But for your confidante and power of attorney. So, your advocate has the resources, information and training they need to protect your health and your medical, financial and legal interests.

But, make no mistake about it. You need your physicians in your corner. As well as an attorney, CPA, financial and investment advisor to represent your interests.­­­­­

45% of Americans under the age of 65 and 70% of those over 65 will need long term care in their lifetimes. One of the biggest problems in Long Term Care. Is that hospitals are sending people to facilities or back home. Where hospitals, nursing homes and home health care agencies. Lack the staff, financial resources and the will to properly take care of their patients. Many of these facilities have been or are in financial distress. Coupled with a world where your health insurance benefits can be exhausted in as few as 30 days. Puts the ball squarely in your court. To make sure you get the treatment and care you need. This is a great transfer of risk to you.

If you have an interest in education and training for your business, your family or yourself about Long Term Care and Health Care. Please contact Louis Wolkenstein, Managing Principal of The Investment Advisor at 412-388-0500.or Request a Consultation at…

The Investment Advisor, LLC does not provide legal, accounting or medical advice.

When Should You Rebalance Your Investment Portfolio?

Posted by & filed under Investment Portfolio Management for Less, Portfolio Management.

Rebalancing your investment portfolio is important. However, there may be times when you may not want to. For example, if rebalancing your portfolio could trigger a short-term or long-term capital gain for which you may not have the liquidity to pay. You may not want to rebalance.

You must gauge the long-term benefit of rebalancing versus the short-term consequence of rebalancing.

This begs the question? What type of accounts are your securities located in? Are your investments in tax-deferred or taxable accounts? Are the assets held in trust or in a foundation? Are there legal or fiduciary concerns? Are you considering the investments held in your 401k, your IRA or retirement plan? Are you considering the state of your health, risks to your health, your heath savings account and the cost of healthcare?

Exceptions to rebalancing your investment portfolio depend on market circumstances, how you read risk and your long-term versus your short-term goals.

What does the liquidity of the securities you hold in your portfolio look like? Are they easily traded and is there good volume to support selling or buying more? Are the markets highly volatile this quarter?

How do you read risk? Would rebalancing have been the right thing to do in 2020? During the recent bank defaults? The debt ceiling crisies? As interest rates have risen? When a stock is taken out of or put in an index?

Many alternative investments do not always offer a liquid market. You can suffer a substantial loss for liquidating these investments. Some investments like annuities and limited partnerships may require a lock up period. Is there an active secondary market for these securities?

Did you inherit securities from your family? I once knew a harpist who was given stock in Hershey by her family. The return on the stock did not matter to her. She was never going to sell. She was to attached to the stock. But, she knew the potential consequences of holding forever.

You have to decide in advance what your triggers for making changes in your investment portfolio are? Is it price, volatility or a need for income or cash. Is it long-term consistent returns or are things happening short-term which could derail your plans? Are you retiring, plannng for your retirement, planning for your child’s education, planning to buy a home or getting ready to sell your company?

Are you invested in mutual fund and exchange traded funds? What type of funds are they? Do the funds rebalance? What do they rebalance based on? Some are based on time like Target Maturity Funds. Others are based on investment style like value, growth or income. Are the funds holding true to their investment objective? Are the funds going to pay a capital gain?

You may also be engaged in socially conscious or impact investing where returns are not your only motivation.

You answers to these questions will determine when and if you should rebalance.

Rebalancing should be done no more than once a quarter and only when the securities held in your investment portfolio are no longer in line with your goals and objectives. Rebalancing more frequently is counterproductive. You should revisit these concerns once per quarter to determine if rebalancing is appropriate.

You may also want to consult your CPA, accountant, enrolled agent and attorney.

Questions? Concerns

Call The Investment Advisor at 1-877-414-9021

or Request a Consultation at

It’s About Creating Resources

Posted by & filed under HealthCare.

It’s About Creating Resources, Increasing Your Standard of Living and Preserving Your Way of Life. Navigating the Currents of Today’s World Requires Planning and Investment. The Video Above Put Out by the Cleveland Clinic Illustrates Your Holistic Need to Use Savings, Investment and Health Insurance as a Tool to Finance Protecting Your Health, Building Your Business, Move Forward in Your Career, Create Income for Your Retirement and the Achievement of the Milestones Which Occur in Your Life. Request a Consultation at 

Strategically Manage the Risk of Saving for Your Retirement!

Posted by & filed under HealthCare, Retirement Planning, Retirement Plans.

Most Americans Have Not Saved Enough for Retirement.

This is One of the Major Issues of Our Time.

Fueled by the Scarcity of Resources.

A New Model of Business Driven by Price Compression, Disruption Created by the Internet and The 4th Industrial Revolution.

Creating A Shifting of Risk to the Individual.

How Will You Strategically Plan Your Retirement, Your Health Care and Protect Your Savings and Investments?

Who is the Investment Advisor?

Posted by & filed under Asset Protection, Education Planning, Estate Planning, Financial Planning, HealthCare, Retirement Planning.

The Investment Advisor is a Registered Investment Advisory Firm With an Emphasis on:

Retirement, Health Care Estate Planning, Investment Management, Asset Protection and How these Topics Influence Each Other.

The Firm is a Fiduciary Dedicated to Serving Your Interests and Puts Your Interests Ahead of Its Own.

The Investment Advisor LLC Also Believes the Expenses of Planning and Investing are Very Important to the Successful Achievement of Your Goals.

Therefore, the Fees the Firm Charges are Very Low in Comparison to Other Firms.

Schedule Your No Cost Initial Consultation at

Or call


What Entity Type Is Best When Seeking Venture Capital?

Posted by & filed under Biotechnology, Financial Planning, HealthCare, Tax Advisory.

HealthCare Photo

Guest Article By Chris Whalen, CPA:

Starting a business is extremely complex, and it is very easy to make mistakes that can incur tax penalties and also hurt your chances for acquiring financing.

Let’s say you were starting a company and needed to raise capital. You have to decide what entity to create.

What are your choices? The basic entity types are: Partnership, S Corporation, or C Corporation. LLC was not excluded by accident. Remember, for IRS purposes, the LLC does not exist as an entity, and the owners of an LLC have to choose between a Sole Proprietorship, Partnership or S Corporation as their filing status.

99% of the time, when seeking venture capital, The C Corporation is the logical and practical choice, and most Venture Capital firms will demand this.

Will an S Corporation Work?

No. While the S Corporation structure is a popular choice for entrepreneurs and other small businesses, it comes with regulatory limitations that do not make it a feasible vehicle for raising venture capital. The three main regulatory limitations are:

S Corporations may only have one class of stock;

S Corporation stockholders must be natural persons (except for some extremely limited circumstances); and

The one class of stock requirement may be fatal to a venture capital investment since venture capital firms usually demand preferred stock in return for their investment. Also, most venture capital firms are organized as limited partnerships and less frequently as LLCs–but both legal entity types aren’t “natural persons.” And finally, as your startup grows, the 100 stockholder maximum comes into play once your startup begins issuing stock and stock options to employees.

Thus, the C Corporation may be the only type of corporation viable for a venture capital investment.

Why not an LLC?

While the LLC is also a common startup vehicle, the C Corporation wins hands down when it comes to raising venture capital. The following 4 reasons explain why:

1. Pass Through Entity

While the pass through feature (income/losses are passed down to the shareholders rather than dealt with at the entity level) of LLCs are desirable to most entrepreneurs, venture capital funds do not find pass through taxation to be a similarly desirable feature. The venture capital firm does not want the accounting and tax matters of a funded venture to be passed down to the firm, and thereby be attributed to the venture capital firm’s tax exempt and foreign limited partners. Such a scenario could create unrelated business taxable income (UBTI) issues or have their foreign investors be deemed “doing business” in the United States and thus have to file a U.S. tax return.

2. Transferability

The membership interests of an LLC are typically not freely transferable by state statute. This makes the LLC a lousy entity for one of venture capital’s exit strategies: the IPO. (Not that IPOs for venture backed companies are hot at the moment.)

3. Predictability

Started in the late 1980s and only made more popular in the last decade or so, LLCs are a relatively new type of legal entity. Thus, there just isn’t a well developed set of laws and regulations for LLCs. Corporations, on the other hand, provide a larger degree of predictability with regards to corporate governance and stockholder rights.

4. The Venture Capital Firm’s Organizational Documents

Primarily due to the reasons outlined above, many venture capital funds will have specific provisions in their own organizational documents that prohibit them from making a venture capital investment in an LLC, or any other legal structure than a C Corporation. Thus, if your startup is absolutely against being a C Corporation, you could be declined by the venture capital firm regardless of how spectacular your startup is.

The Conclusion

The C Corporation is a venture capital firm’s clear-cut choice for the type of entity in which to place their investment. When the to-be-venture-funded startup is a C Corporation, various administrative and other burdens are minimized for the venture capital firm, which allows them (and their capital) to focus on developing the startup company’s business.

Starting a business is extremely complex, and it is very easy to make mistakes that can incur tax penalties and also hurt your chances for acquiring financing.


Before you move forward with any financial transaction, or attempt to create a new company on your own contact Chris Whalen, CPA, The Investment Advisor, Your CPA, Accountant, Attorney and Your Financial or Investment Advisor.

This article was written by Chris Whalen CPA. As a CPA his views come from a tax and accounting perspective. The Investment Advisor is a Registered Investment Advisory Firm. The Investment Advisor does not offer tax, accounting or legal advice.

The information presented is meant to be informational only. It does not constitute a recommendation. Investment and Financial Planning recommendations can only be made in consultation with each client individually after each client has discussed their situation with The Investment Advisor. Before making any investment, financial or legal decision you should always consult your Accountant, CPA, Attorney and Financial or Investment Advisor.

For Further questions about the information contained in this article contact Chris Whalen, CPA or The Investment Advisor. The Investment Advisor can be contacted on its website at or by calling (877) 414-9021.

Chris Whalen can be contacted at the website of Chris Whalen, CPA at or by calling (732) 673-0510


YOU Are a CPA or Enrolled Agent

Posted by & filed under Tax Advisory.

You Are a CPA or Enrolled Agent. Your Smart, You Work Hard and Your Clients Rely on You For Your Advice and Sound Judgement.

Your Clients Want More Than Tax Preparation. They Hire You to Help Them Reduce Their Tax Liability.

You May Recommend Contributing to Their IRA, Monitoring Their Company Retirement Plan, an Investment That Creates Tax Free Income, a Gift to Their Favorite Charity, Creating their Estate Plan and Protecting Their Net Worth.

If You Are Looking for a Cost Effective Portfolio Investment Management Solution For Your Clients. The Investment Advisor Can Help. Our Advisory Fee is Among the Lowest Around.

We Provide Personalized Investment Advice, We Collaborate With You as Their Tax Advisor and Include Your Recommendations.

You Know Taxes, We Know Portfolio Investment Management.

Together, We Can Help Improve You Client’s Life.

To Explore How We Can Work Together Call:
Louis Wolkenstein
Managing Principal
The Investment Advisor