At its core, direct indexing gives investors ownership of the individual securities that make up an index rather than owning a fund that owns them. Advances in technology and declining trading costs have made direct indexing more affordable and accessible than ever, unlocking benefits in tax management, customization and values-based investing that wasn’t possible in the past for the average investor.

Direct indexing didn’t begin as a retail product. Institutional investors and high-net-worth clients with specific mandates were its early adopters. They had the scale, sophistication and size to justify customized portfolios built one security at a time.

Over the last decade, these strategies have become much more accessible because of several factors: lower trading costs have dramatically reduced execution expenses, managers have streamlined the process to where automated portfolio platforms can now assemble and maintain hundreds of individual stocks efficiently with enhanced technology, and fractional share trading lets smaller investors own smaller slices of expensive stocks. Strategies once reserved for institutions or ultra-wealthy families are now available to investors with lower minimums than ever before.

How direct indexing works

Instead of buying a single ETF or mutual fund, direct indexing means you own the actual constituents of an index — for example, the 500 stocks in the S&P 500 — in proportion to their weights in that index. This direct ownership allows for tax-aware adjustments in which you can sell losing stocks to realize losses without selling a whole fund. On the other hand, it also allows you to make custom exclusions or tilts, meaning you can remove or underweight stocks that don’t align with personal values. This captures the most important aspects of direct indexing, which are tax minimization and personalization.

Tax minimization and harvesting losses

Perhaps the most celebrated benefit of direct indexing is its ability to generate tax losses intentionally. In a traditional index fund, you can’t choose which holdings to sell. A fund’s structure drives all decisions. With direct indexing, an investor can identify individual stocks that have declined below cost basis and sell them to lock in losses. These losses can offset gains elsewhere, lowering taxable income or deferring taxes.

This process — called tax-loss harvesting — is possible with ETFs too, but it’s limited. When you sell an ETF share, you realize gain/loss on the entire fund position, and your replacement must be a different fund to avoid wash-sale rules. Direct indexing unlocks far more granular tax decisions, potentially every stock in your portfolio. Over years or decades, especially in volatile markets, these accumulated losses can meaningfully reduce overall taxes and improve after-tax returns.

Value personalization

Another fast-growing appeal of direct indexing is customization. Investors can exclude companies or sectors they find objectionable, such as fossil fuels, tobacco or weapons manufacturing. Portfolios can be tilted toward other factors like low volatility, dividends or carbon emissions intensity. Goals beyond returns — such as values, mission alignment or social impact — can be embedded at the security level. With direct indexing, you define the screens and tilts that matter to you.

Who direct indexing is for

Direct indexing tends to work well for investors facing meaningful capital gains tax burdens on an ongoing basis, investors seeking customized ESG or values-based exposure and investors with longer time horizons and sophisticated planning needs who can benefit from systematic tax-loss harvesting and enhanced strategy.

It’s less compelling for those with very small portfolios where trading and management costs dominate, investors who prefer simplicity and minimal oversight, and those with primarily tax-advantaged (retirement) accounts where tax management is irrelevant.

Direct indexing represents a powerful evolution of traditional indexing — one that blends passive exposure with personalization and tax efficiency. Once the exclusive domain of institutions, it’s now accessible to a broad range of investors thanks to modern technology and lower costs. For investors seeking more control over what they own, how they pay tax and how their investments align with their values, direct indexing offers an intriguing option worth exploring — and one that could certainly become a mainstay of future portfolio design.

Zach Harney is a Wealth Manager at Creative Planning. He welcomes questions you may have concerning investments, taxes, retirement or estate planning. Send your questions to: Zach Harney, 2340 Garden Road, Suite 202, Monterey, CA, 93940. Or you can email zach.harney@creativeplanning.com. This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.

Rakitina observes that the podium long seemed an exclusively male domain because conducting was believed to demand qualities traditionally attributed to men, including strong leadership and character, strict and unwavering resolve, cool-headedness, and physical stamina. Although it is eminently clear these characteristics are shared by both genders, this division kept conducting closed to women, as it did many other professions and careers. In recent years, however, that landscape has begun to shift. From the Metropolitan Opera to Europe’s most storied festivals, women are increasingly guiding artistic vision and interpretation, a change as Rakitina suggests, that is as much about listening differently as it is about who holds the baton.

Artistic leadership on the Monterey Peninsula not only reflects this broader moment but has long served as a cultural way-shower. Long before international headlines declared a changing podium, our region was galvanized by two remarkable women whose vision and leadership established world-class musical institutions here and profoundly influenced our cultural identity. Carmel impresarios Dene Denny and Hazel Watrous were early pioneers who demonstrated that women were more than capable of guiding major artistic enterprises.

For 25 years, the great American conductor Marin Alsop, shaped by the mentorship and artistic example of Leonard Bernstein, led the Cabrillo Music Festival across the Bay in Santa Cruz. Another Bernstein-mentored conductor, Kate Tamarkin, began her tenure with the Monterey Symphony a quarter century ago, strengthening the region’s connection to that legacy of musical leadership. Three years ago, the Denny-Watrous tradition continued with the appointment of Norwegian-born conductor Grete Pedersen as artistic director of the Carmel Bach Festival, which they founded.

Another bright star among the Peninsula’s women artistic leaders is acclaimed violinist Tien-Hsin Cindy Wu, who established Sunkiss’d Mozart Summerfest in 2024, a June chamber music festival featuring leading international musicians performing in intimate and beautiful settings throughout the region. Wu and Pedersen join an existing tradition that has quietly demonstrated the power of female musical leadership on the Peninsula for more than a century.

Monterey Symphony in March

Speaking of the ascendency of women in our musical organizations, the Monterey Symphony celebrates its Eighth Annual Women’s Night Out on March 21 at Sunset Center followed by the March concert program conducted by Jayce Ogren. The party this year is inspired by the “White Lotus” television series. Come dressed in your Maui, Sicily, or Thailand exotic resort chic attire and groove to the music of San Francisco-based Axon Orkestra.  By the way, for many seasons now, the Symphony has been administered by Nicola Reilly and her dazzling crew of talented women, in what I would describe as one of the best management teams in its eight decades of musicmaking. Women’s Night Out is just one of many innovations and creative offerings that people can enjoy each season in addition to the subscription concert series.

About this month’s concert, Ogren says, “Our March program features star violinist Stefan Jackiw in Tchaikovsky’s delightful and virtuosic violin concerto. We’re thrilled that Jackiw will be making his debut with the Monterey Symphony. The concert opens with Moño by Marina López, a Monterey Symphony co-commission and part of our 80th anniversary celebration featuring exciting new works. We’ll also play Sibelius’s seventh symphony, his greatest tribute to nature, humanism and spirituality.”

For tickets, information and details about pre-concert lectures, the Saturday Night Talk Back and the Sunday pre-concert Lobby Sessions music see www.montereysymphony.org or call  (831) 626-8511.

Ensemble Monterey ‘Romantic Ideals’

Ensemble Monterey brings us a “journey from Baroque elegance to modern reflection” in their third concert of the season, called “Romantic Ideals.” Described as a thoughtful program celebrating life, love, joy, playfulness and wonder, audiences will hear works by Pulitzer Prize–winning composer Caroline Shaw, J.S. Bach’s Wedding Cantata featuring oboist Peter Lemberg, and Franz Schubert’s Piano Quintet in A Major, “The Trout.” Soprano Lori Schulman brings her warmth and clarity to Shaw’s sound world.

Performances take place Saturday at 7 p.m. at First Presbyterian Church in Monterey and Sunday at 7 p.m. at Messiah Lutheran Church in Santa Cruz.

For more information and to purchase tickets see ensemblemonterey.org or call (831) 333-1283.

Dover Quartet

The Dover Quartet, hailed by BBC Music Magazine as “one of the greatest quartets of the last 100 years,” appears at Sunset Center March 28 at 7:30 p.m.  Dover has been favorably compared to great American string ensembles, such as the Emerson or Guarneri Quartets, for their depths of originality and musicianship.  Their last appearance for CMMB was a streaming performance online during the pandemic, so the organization is delighted to welcome them back in person.

They will perform a diverse program with works by Jessie Montgomery, Franz Joseph Haydn, Karol Szymanowski and Felix Mendelssohn, compositions spanning the years from 1772 to 2012.  The concert will be preceded by a 30-minute talk at 6:30 by UC Santa Barbara music professor and musicologist Derek Katz.  For tickets and information see www.chambermusicmontereybay.org, or call (831) 625-2212.

Carmel Bach tickets

A reminder: Carmel Bach Festival tickets go on sale on March 16 for its 89th season that takes place July 11-25. Artistic director Grete Pedersen has created a season of music that explores the theme, “the nature of sound.” This year the festival will collaborate with a featured composer, Puerto-Rican-born composer Angélica Negrón. Check out the website for details at www.BachFestival.org.

Your recent Jeff Davi op-ed touting Cal Am’s wobbly “three-legged stool” argument omitted important details. First, this stool is standing on quicksand and will be rendered inoperable due to its seven desalination slant-wells only having a lifespan of 25 years. Second, the well-heads will be covered with sand due to sea level rise and beach erosion with no relocation site possible. Third, this “three-legged stool” cannot stand because it does not have sufficient water rights to operate from the get-go, per the State Water Resources Control Board. Fourth, these wells would be installed in the critically over-drafted Salinas Valley Groundwater Basin aquifers. This disastrous slant-well placement will devastate the SVGB, contradicting the stated mission and goal to restore and revitalize these threatened aquifers.

Despite good intentions to cure the Peninsula’s water woes, this wobbly desalination proposal won’t stand. And 25 years from now just when we actually need more water it will become inoperable.

Public agency ownership of our water supply, as modeled in the Monterey Peninsula Water Management District, Monterey One Water, and Marina Coast Water District, exemplifies water management perfection. These three public water agencies have provided ample water supplies for decades to come, including drought years – with no profit to a private corporation and its shareholders. We don’t need Cal Am’s exorbitantly priced, redundant and unworkable desalination plant to bankrupt us! And we don’t need their avarice giving us sleepless nights!

— Margaret-Anne Coppernoll, Marina

The attack on Iran

Our military is a group of haphazard Keystone Cops. Our guys may have shot down three of our own aircraft with friendly fire. Trump says those things happen.

No, they don’t! Not with a knowledgeable group of military leaders. But, Mr. President, you fired all those savvy men and women generals. You were looking for loyalty instead of quality.

Mr. Trump this disaster is all yours. Fix it now. Or resign.

— Dan Presser, Carmel

March is the anniversary of the unlawful, immoral invasion and destruction of Iraq. All of it was based on known lies. The U.S., UK, and NATO allies brutalized, tortured, and killed Iraqi citizens, permanently contaminated the land and the people with toxins including depleted uranium resulting in horrible birth defects, blew up oil wells (that was the U.S., not Saddam), stole and destroyed national treasures, including Iraq’s agricultural seed bank, destroyed the electrical, sanitary, and water infrastructure, and ended the country as it was.

Here we go again – same leaders, the same institutions lying repeatedly. “Democracy” and “human rights” are PR window dressing.

“Submit” is the name of their game, what the Washington and Wall Street gangs say to their victims. Republican or Democrat, it doesn’t matter. It’s about coming out on top and standing over the victim, briefly satisfied until they pick the next victim. They never have enough; they’re never satisfied. The goals are ceaseless empire-building, world and space domination, eviscerating nations, heritages, and communities, stealing resources, imposing American toxic products on virgin lands. Marine Maj. Gen. Smedley Butler wrote “War is a Racket” about this reality. Bush 1 said, “If the American people knew what we have done, they would string us up from the lamp posts.”

And this “hatred of life” ideology attacks us at home.

Peace, stability, respect for other nations’ sovereignty and security, coexistence, communication, truth, dismantling our weapons and institutions of war, starting at home, and valuing nature – that is the country I want to build. Stop the attack on Iran.

— Nina Beety, Monterey

State of the Union

It is hard to believe that the Democrat Party is still operating after their wild blunder at the Feb. 24 State of the Union Address. The President declared, “The first duty of the American government is to protect Americans, not Illegal aliens.” Nothing revolutionary, but almost every Democrat remained seated and silent even after the President asked everyone to stand and applaud if they agreed. The Democrats just scowled.

How can any political party side with illegal aliens over American citizens? Our government has no responsibility toward illegal non-citizens, many of whom just openly walked in. Our government’s primary duty is to protect U.S. citizens, period.

Interestingly, hardly anybody complained about President Obama’s deportation of more than three million illegal immigrants.

After watching this fiasco unfold, all I can say is that the Democrats must have a death wish.

— Lawrence Samuels, Carmel

I watched the entire State of the Union Speech. I think it would be more accurate to call it the State of the Disunion. Quite a  number of Democrats didn’t even show up, but the ones who did got gamed by President Trump. What fools they were to sit on their hands during the State of the Union speech, shouting insults, glowering, even sleeping.  One Democrat waving a protest sign had to be physically removed from the chamber. The Republican half, on the other hand, looked better. They were standing up, honoring or remembering American heroes in the past and present, cheering “USA” and having a grand old time. It was an American celebration. They were even dressed better than the disrespectful and obviously disengaged members on the other side.  I realize that California votes 60% with the Democratic Party in all elections. But let’s give this a second thought. There are two Republicans running for governor against nine Democrats in the California June Primary election. Please try to consider voting for one or both of these Republican candidates. California needs a break from those gloomy, pessimistic, badly behaved members in the other party.

— Carol Marquart, Pacific Grove

Question: Although active, my father at age 83 has a number of chronic conditions. Among them are painful knees and urinary incontinence. He believes both can be fixed or cured and continues to respond to ads that claim to be the answer.  How can I convince him that most of these are hoaxes? He just cannot accept the fact he is getting older. — B.K.

Answer: The quest for the fountain of youth is not new, yet it continues to endure. In a society that tends to value youth over old age, fighting to retain what we perceive as youth is understandable. Of course, quick fixes are always appealing.

Perhaps the first step is to determine whether your father’s physician has addressed the two issues you raised.

If so, what were the recommendations, and are they being followed by your father?

If you have some doubts about the conversation, consider accompanying your father to his next doctor’s appointment.

Next is the question of determining what conditions are related to normal aging and what are possibly caused by disease, medications or lifestyle.

Consider reviewing lifestyle habits that involve sleep, nutrition, exercise, social connections and having a purpose in life.

One approach to potential hoaxes is to have a plan that analyzes health information. Sandra Alters and Wendy Schiff, authors of “Essential Concepts for Healthy Living,” developed a
six-point approach that might be helpful. (This is an early edition, which has since been updated. I believe the points are still valid.)

Verify statements in the advertisement: Determine which are verified by fact, are unverified or are claims about the product’s value. Verifiable facts are conclusions from scientific research or statements from credible resources. Unverified claims are conclusions with no support. Value claims simply suggest something is useful or effective.

Evaluate the credentials of the person who wrote the advertisement: Articles that may be part of the advertisement usually state the name and credentials of the author. In some cases the credentials may be fraudulent. Anyone can claim to be a doctor, nutritionist or health expert. Credentials can be checked by contacting any institutions named; accreditation can be checked by contacting the U.S. Department of Education (ed.gov).

Determine the motive or possible biases of the author: Ads are designed to persuade the consumer to buy the product. If the author developed the product, that person may have a financial interest that could affect objective reporting of the product’s effectiveness and value.

Assess relevant and irrelevant information: In particular, be aware of red flags that may suggest misinformation such as the following: “all natural,” “chemical free,” “scientifically proven,” “guaranteed to work” and “everyone is using it.” Note that testimonials often are given by celebrities and sports figures who get paid to promote the product.

Consider if the source provides reliable information: Does the advertisement give the pros and cons of the product along with the risks and benefits? Look for the inclusion of referenced articles from peer-reviewed journals. These are publications with articles that have been reviewed by experts in the field prior to publication.

Determine if the advertisement discredits the credibility of scientists and medical authorities: “Unknown to western medicine” or “used for centuries in China” suggest the U.S. is lagging in scientific knowledge and application. Statements that attack usual medical practices might be unreliable.

The next task is to influence your father’s thinking about the value and relevance of the analysis.

If he is reluctant to change his mind, it might be necessary to go through this process for each product and advertisement that your father encounters to protect him from possible harm and wasting his dollars.
You also might have a conversation about gratitude for what is working well in his life. It might provide a level of new awareness.

B.K., you have a challenge. Keep at it and hopefully your father will acknowledge that factfinding is for his benefit. Clearly you are a caring daughter. And thank you for your good question. Stay well and know all acts of kindness count.

Send emails to Helen Dennis at helendenn@aol.com, or go to facebook.com’s Successful Aging Community

Anna’s hummingbird (Calypte anna). This female hummingbird has a dull green crown and an iridescent red gorget (the band over the throat and chest). In comparison, the male has a crimson red crown and gorget. Both have pale bellies. This photo shows the bird feeding from the inflorescence of a showy banksia (Banksia speciosa). The evergreen shrub or tree is an Australian native and a member of the protea family (Proteaceae). (Credit — Brad Lewis)

Cootamundra wattle (Acacia baileyana). This shrub or tree grows to a height of 10 feet and produces racemes of bright yellow to golden flowers from June to September. It is a New Zealand native, naturalized in Australia, and a member of the legume plant family (Fabaceae). (Credit — Bill Bishoff)

Candle cranberry (Styphelia foliosa). This flowering plant, a member of the heath family (Ericaceae), occurs near Perth, Western Australia. This evergreen shrub grows to 5 feet tall and is characterized by conifer-like foliage, small, needle-like leaves and showy flowers that bloom in shades of pink, red and white. It is used for its ornamental value and as a food source for wildlife. (Credit — Bill Bishoff)

Australian fuchsia (Correa reflexa ‘Cape Nelson’). This shrub, endemic to Australia, grows either prostrate or up to 5 feet tall. It produces groups of one to three pendant, tubular flowers up to 2 inches long, with four flaring, triangular tips that vary in color. It is a member of the rue plant family (Rutaceae). (Credit — Bill Bishoff)

Rock thryptomene (Thryptomene saxicola ‘Mingenew’). This spreading shrub has small, oval or egg-shaped leaves and, from February to November, produces pale pink flowers. It typically grows to 5 feet tall. This plant, endemic to Western Australia, is a member of the myrtle plant family (Myrtaceae). (Credit — Bill Bishoff)

One of nature’s fascinating aspects in the garden is the flight of hummingbirds.

The UC Santa Cruz Arboretum & Botanic Garden is featuring these avian phenomena during Hummingbird Month, which started Sunday.

Brief notes on hummingbirds

The Hummingbird Month schedule includes presentations by experts and skilled photographers.

Here are info bits about these unique birds, drawn from an exceptionally long article on Wikipedia, and other sources.

Hummingbirds are native to the Americas and comprise the biological family trochilidae, which includes 375 species and 113 genera.

Fifteen species of North American hummingbirds inhabit the United States and Canada. The prominent hummingbird species seen at the arboretum and the Monterey Bay area are Anna’s (Calypte anna) and Allen’s (Selasphorus sasin).

The generic name for Anna’s hummingbird might come from the Ancient Greek word for “headdress,” and the specific name honors Anna d’Essling, the wife of ornithologist François Masséna.

Anna’s are native to western North America. While other North American species migrate from Mexico to Canada, Anna’s hummingbird is acclimated to colder winter temperatures and has a year-round residence in the Pacific Northwest. During cold weather, they might remain in torpor for extended periods.

Anna’s, like other hummingbird species, feed on nectar from flowers, small insects and other arthropods (invertebrates).

In flight, hummingbirds beat their wings in a figure-eight pattern, allowing them to suspend above the flowers on which they are feeding. Most flowers do not provide a feeding perch. Their flying ability allows flying forward, backward and even upside-down. They beat their wings 80-90 times per second. This unique flying action burns a lot of energy, requiring the birds to perch high in trees between meals.

Visiting the arboretum

The UCSC Arboretum & Botanic Garden provides an exceptional regional resource for observing and learning about Mediterranean climate plants, a place to convene with nature and escape from daily pressures, and an opportunity for volunteers to help maintain a diverse plant collection.

Another arboretum focus is Norrie’s Gift and Garden Shop, an excellent source of garden plants and more. Recognizing Hummingbird Month, Norrie’s will feature plants that will attract and nourish hummingbirds in your garden!

The arboretum is open daily from 9 a.m. to 5 p.m. Admission (helps to support a noteworthy garden) is $10 for adults; $8 for seniors 65-plus; $5 for youth 4-17; and free to kids under 4. Admission is free to current members of the arboretum, current UCSC students and shoppers at Norrie’s.

Browse arboretum.ucsc.edu and click on Get Involved.

Arboretum’s special events for Hummingbird Month

The following special events require routine admission to the arboretum and do not include an additional attendance fee. For details of Hummingbird Month presentations, visit arboretum.ucsc.edu, click on Visit and scroll to Events.

• March 7, 11 a.m. to 12:15 p.m.: First Saturday Garden Tour: Hummingbirds and some of their favorite plants at the arboretum.

• March 8, 10 a.m. to noon: Bilingual Bird Tour No. 1 with the Bird School Project (beginner, family-friendly).

• March 8, 1-2:30 p.m.: “Jewels in the garden – A Darwinian Natural History of Hummingbirds” with Bruce Lyon.

• March 14, 11 a.m. to 2 p.m.: UC Master Gardener’s Pop-Up “Planting for Hummingbirds.”

• March 14, 1-2:30 p.m.: “Wildlife photography from Hummingbirds to Elephants” slide presentation with Kevin Lohman.

• March 21, 7-9 a.m.: Early Bird Members Hours (members only) — a great time of day for practicing bird photography.

• March 28, 9-11 a.m.: Hummingbird Photography Workshop with Kevin Lohman.

• March 29, 10 a.m. to noon: Bilingual Bird Tour No. 2 with the Bird School Project (beginner and family-friendly).

Advance your gardening knowledge

Dedicated gardeners have a significant opportunity to learn about California’s unique ecology, gain certification as California Naturalists and engage in the stewardship of the state’s natural communities.

The UC Santa Cruz Arboretum and Botanical Garden is hosting the University of California’s annual California Naturalist Program, which will be held from March to June. The program consists of 14 lectures in the arboretum’s meeting room and nine field trips. Program coordinators Linda Anderson and Joel McKelvey, and additional specialists in aspects of California’s ecology, bring considerable expertise to the program.

The class fee is $500 (scholarship funds may be available). Certified Naturalists are asked to provide 40 hours of volunteer work over the year following the class.

For more details of the California Naturalist Program, browse the arboretum’s website (arboretum.ucsc.edu), click on About and scroll to Programs. That web page includes an application form for the California Naturalist Program. The application deadline is Monday.

This week in the garden

Our recent column included an annual calendar for propagating perennials from stem cuttings. While that calendar is not inaccurate, our view is that propagating with stem cuttings is done most successfully during the peak softwood window: May-June. Gardeners now have the opportunity, well before this window, to list the plants they select to propagate, gather propagation supplies and plan where to support the growth of the cuttings. If needing a guide for the process, search the internet for “how to propagate plants from stem cuttings.”

Enjoy your garden!

Tom Karwin can be reached at gardening@karwin.com. 

“I am 80 and remember like it was yesterday that in high school we all took a class called ‘On Your Own’ that taught financial and independent-living skills. This included lessons about budgeting, renting an apartment, co-signing and getting loans, banking, using credit cards, food preparation and so much more. It was part of the Home Economics Department. But schools have dropped all those valuable real-world tools.

“As our grandkids are clueless about so much that people of my generation learned in high school, the past couple of years, we have given them some of the more popular books on money management, but they tell us, ‘These make us feel talked down to,’ so they never finish reading a single one.

“Do you know of something out there on personal finance that is practical, doesn’t talk at or down, but to readers and isn’t boring? Thanks, ‘Barbara.’”

Barbara is right. Those classes vanished in the 1970s and ’80s when “everyone should go to college” became the flawed mantra. Educators failed to visualize the consequences of losing these practical classes, but fortunately, many states today are bringing those very subjects back to high school.

Yes, there is a new — and great — read, filled with real-life examples that are so accessible and relevant, regardless of your age and especially for teenagers, young adults and their parents.

It is “Wealth Your Way: A Simple Path to Financial Freedom” by Cosmo DeStefano, a financial strategist, retired CPA and also a fellow contributor to Kiplinger.com’s Adviser Intel. This is a pure joy to read. The author makes it seem as if you are sitting across the table from him for a chat over a cup of coffee. That’s how I felt during our interview, even though it was on the phone.

The central idea of DeStefano’s book is that financial freedom is achievable through simple, consistent habits — not high income alone. Building wealth and staying out of financial trouble results when we maintain these habits — these behaviors — instead of chasing after get-rich schemes. The outcome is a vastly improved quality of life at home, achieved through discipline and long-term planning.

A significant challenge that many parents and spouses often face is initiating a conversation about money. “Financial discussions are often seen as criticism, even when no one has done anything wrong — it is such a sensitive area,” DeStefano said during our interview.

To get the ball rolling, “Wealth Your Way” contributes a helpful voice that explains how to build a foundation of sound financial behavior.

In the many years that I’ve written this column, more personal financial advice books than you can imagine have crossed my desk – many bark orders and make readers feel like they’ve missed the boat. DeStefano doesn’t go there. He respects our intelligence while gently challenging common assumptions, such as “I’ll start investing once things settle down politically.”

“The reality,” he noted, “is that things never settle down, and waiting for certainty is often the most expensive decision of all, as delaying action shrinks the impact of compounding.”

This is a valid, commonsense answer to a strongly held belief that gives readers something solid to consider, matching his emphasis on practicality and long-term thinking rather than one-size-fits-all rules that don’t fit many.

“Wealth Your Way” is so accessible, in large part, because DeStefano avoids using technical jargon that plagues many authors. He does not require readers to follow a rigid structure that may clash with how they live. A great storyteller, he illustrates how his recommendations work in the real world.

The book is especially timely as more and more employees who have little, if any investment knowledge must provide for their own retirements. It is sad that nothing like it existed in 1981 when the rug was pulled out from workers who had been promised retirement pensions but then were forced to transition to 401(k)s.

The move hung an albatross around the necks of American workers, shifting the burden of safeguarding their retirement onto their shoulders while employers saved big money by no longer having to fund pensions.

Traditional pensions are proven to prevent poverty. According to a 2023 UC Berkeley Labor Center report , retirees with pension income are significantly more likely to live above 200% of the federal poverty level compared to those without.

Economists and sociologists agree that the decline of traditional defined-benefit pensions has greatly contributed to increased poverty as workers transitioned to self-managed retirement accounts. And to self-manage these accounts requires the how-to provided in “Wealth Your Way.”

DeStefano’s book, especially if it’s read at a fairly early age (and, of course, if his advice is followed), will have a lasting, positive impact on many lives. Think of the book as a partial substitute for that On Your Own high school class you would have taken before those classes were discontinued. Give one to a family member if you suspect they lack solid financial literacy. It will be their ticket to dollars and cents peace of mind.

Dennis Beaver practices law in Bakersfield and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

Answer: On Jan. 1, California’s statewide minimum wage increased from $16.50 to $16.90 per hour.  The increase applies to most employers regardless of size.

With the increase to the minimum wage rate, employers also need to ensure that the annual salary for their exempt employees meets the minimum salary requirements for an exempt employee.  To satisfy the compensation prong of the exemption, most exempt employees must be paid a salary of at least two times the state minimum wage for full-time work.  For 2026, this translates to a minimum annual salary of $70,304 (calculated as $16.90 multiplied by two over 40 hours/week multipilied by 52 weeks/year).  Paying the salary threshold is only one part of the requirement.  Employees must also pass the duties test to avoid misclassification issues involving overtime and mandatory meal-and-rest periods.

Certain exemptions have their own compensation floors that do not track with the general minimum wage.  For example, California’s computer software employee exemption (a narrow exemption that depends heavily on the work actually performed) requires at least $58.85 per hour, or a minimum annual salary of $122,573.13, in 2026.  Similarly, the licensed physicians and surgeons exemption requires a minimum rate of $107.17 per hour as of Jan. 1.  If an otherwise exempt employee’s salary falls below the minimum threshold, the exemption fails.  The employee must be reclassified as a nonexempt employee, requiring time tracking, overtime compensation, and compliance with all applicable meal and rest break regulations.

Industry-specific minimum wages can complicate the analysis.  Fast-food restaurants covered by the fast-food minimum wage law are subject to a separate, higher hourly minimum wage than the statewide rate.  Moreover, health care employers may be subject to a separate wage schedule depending on the type of facility and role, and the number of employees the employer employs.  If you operate in those industries (or contract into them), confirm which wage rules apply before you assume the statewide $16.90 rate controls your payroll planning.

Finally, keep in mind that many California cities and counties set local minimum wages above the state rate.  Unlike state law, many localities increase the minimum wage every July.  The rule is simple: an employer must pay the highest applicable minimum wage for the location where the employee works.  A list of California city and county minimum wage rates maintained by University of California Berkely is available here:  https://laborcenter.berkeley.edu/inventory-of-us-city-and-county-minimum-wage-ordinances/#s-2.

After you implement wage changes, California also requires timely written notice of pay-rate changes under Labor Code section 2810.5.  The Department of Industrial Relations publishes template notices and the updated minimum wage poster that employers must display in a visible, conspicuous location in the workplace.  The “Notice to Employee” can be downloaded for use https://www.dir.ca.gov/dlse/dlse-publications.htm.  The required minimum wage poster can be downloaded at https://www.dir.ca.gov/iwc/MW-2026.pdf.

California’s minimum wage rules are increasingly varied based on a variety of factors, including industry, employer size, and the location of the business and its employees.  Employers are encouraged to review their payroll records to ensure compliance with the minimum wage increase, and any impact it has on exempt employees. Those with questions regarding the minimum wage increase or its impact on exempt employees should consult with their employment counsel.

Marco Lucido is a lawyer with Fenton & Keller in Monterey. This column is intended to answer questions of general interest and should not be construed as legal advice. Email queries to mlucido@fentonkeller.com

Today, we celebrate another transformation as Cal State Monterey Bay is honored by the American Council on Education with the ACE/Fidelity Investments Award for Institutional Transformation, one of two universities in the nation to receive the recognition.

The award acknowledges one of the most consequential renewals in Cal State Monterey Bay’s history between 2022 and 2025, when a response to enrollment decline and a structural budget deficit became a reinvention that strengthened the university and reaffirmed its essential role in the economic vitality of our region. In 2022, the university faced seven consecutive years of enrollment decline. Student headcount had fallen to 6,424. Budget challenges threatened long-term sustainability. Without decisive action, the ability to fulfill our mission would have been compromised.

Instead of retreating, we listened and we acted. Through campuswide conversations and meetings with business leaders, elected officials, community colleges and civic partners, one truth was clear: the Central Coast depends on a strong public university. The region needs graduates prepared for careers in sustainability, agriculture, health care, education, the arts and business, and who are prepared to work with emerging technologies such as AI across all disciplines. Families need accessible pathways to higher education. Employers need a skilled and diverse workforce.

We responded with intention and discipline. While we identified and made operational improvements, we made critical movement on developing and expanding degree programs that will support the needs of leading industry and nonprofits. We launched new programs to align with workforce needs in mechatronics engineering, agribusiness supply chain management, accounting and music technology. The university is expanding access to health care programs through the development of a four-year bachelor’s and master’s in nursing that will complement our existing two-year program for transfer students, a bachelor’s in social work, and we are exploring other potential pathways. We are also aligning some concentrations into majors to better align what students and employers are looking for in degrees, and through our advisory boards, we keep a pulse on industry trends and needs.

Through our efforts, enrollment increased by 27 percent in three years, reaching 8,187 students by fall 2025. The university balanced its budget and reinvested in faculty and student support. During the same time period, Cal State Monterey Bay was the only campus in the California State University system to achieve its six Graduation Initiative 2025 targets. Equity gaps for historically underserved and Pell-eligible students were eliminated, and we increased graduation rates significantly for both first-time freshmen and transfer students. For three consecutive years, U.S. News and World Report’s Best Colleges ranked the university among the top institutions in the West for social mobility.

The true measure of our success is found in our students and in the strength of the Central Coast. Every graduate entering the workforce strengthens the regional economy. Every student who achieves upward mobility strengthens a family and a community. The alignment between academic programs and employer demand ensures that the transformation of the university translates directly into regional resilience and growth.

Community partnership has been central to this success. Businesses expanded internships and experiential learning. Community colleges strengthened transfer pathways. Civic leaders advocated for higher education as a cornerstone of economic vitality. Philanthropic partners invested in opportunity. The transformation of the past three years reflects a shared commitment across sectors.

The first transformation in 1994 converted a military base into a university. The second transformation renewed the promise of that university for a new generation. Cal State Monterey Bay now stands financially stable, academically aligned with workforce needs and nationally recognized for expanding opportunity.

The future of the Central Coast depends on continued collaboration. The strength of our university and the strength of our region are inseparable. The promise made 32 years ago remains alive, sustained by partnership and purpose.

The first transformation built a campus. The second transformation strengthened its mission. The next chapter will be written together.

Vanya Quiñones is the president of Cal State Monterey Bay.

Answer: Risk is one of the most misunderstood concepts in investing. Many investors equate risk with market volatility — or how much prices move up and down. That definition may make sense if you’re a day trader with a very short time horizon; however, for long-term investors, volatility is often more noise than signal and focusing on it can actually cloud good decision-making.

A more useful definition of portfolio risk is this: the likelihood that something happens that permanently impairs your capital. Viewed through that lens, three risks matter most:

• Bankruptcy or default: If a company you own goes under or a bond stops paying, that loss is permanent.

• Forced selling during a market downturn: If you must sell stocks at depressed prices to meet cash needs, your portfolio may not fully recover when markets rebound.

• Inflation: Over time, inflation quietly erodes purchasing power and can do just as much damage as a market decline.

There are other risks, of course, but these three get to the heart of what long-term investors should be concerned about.

As you think about managing risk — especially during periods of market stress — keep a few basic facts in mind:

• Fact #1: Market timing doesn’t work. Decades of academic research has shown that trying to jump in and out of the market usually hurts long-term results.

• Fact #2: Market downturns are inevitable, but they’re not permanent. Free market economies grow over time, and stock markets have historically followed that growth.

• Fact #3: After a significant market decline, recovery typically takes about four years. Some recoveries are shorter (like after the COVID-19 downturn, which took only six months) or longer (like during the Great Depression, which took 15 years).

With these facts in mind, following are some practical steps to managing portfolio risk effectively.

Start with a comprehensive financial plan. A good plan clarifies your goals, puts market fluctuations in context and creates discipline around investment decisions. Many people want to skip this step. They shouldn’t. I’ve never seen anyone complete a thorough financial plan and not become a better investor as a result.

Once your plan is in place, you can focus on building a portfolio designed for resilience — one that can absorb shocks and still compound over time.

A resilient portfolio has three key characteristics.

First, it’s well diversified. That means owning many investments across different sectors and asset classes so that no single holding can derail the entire portfolio if something goes wrong.

Second, it emphasizes high-quality companies. Strong businesses with durable balance sheets and real earnings power are far more likely to survive economic stress. The dot-com bust provided a clear lesson here. Some companies simply disappeared. Others — Amazon being the classic example — suffered steep declines but had the underlying strength to survive and eventually thrive. That ability to endure is what resilience looks like.

Third, a resilient portfolio is structured to meet near-term cash needs without forcing stock sales during a downturn. Remember the four-year recovery guideline. If you know you’ll need money from your portfolio within that window, think carefully about how much of it belongs in stocks. For some investors, allocating near-term needs to short-term bonds or CDs can provide peace of mind.

Just don’t overdo it. Being “too conservative” carries its own risks. Investments that feel safe in the short run may leave you vulnerable to inflation over time.

Managing risk isn’t about reacting to the latest market headline. It’s about thoughtful planning, sound portfolio construction and staying disciplined — especially when markets make you uncomfortable.

Steven C. Merrell is a partner and managing director at Creative Planning (formerly known as Monterey Private Wealth). He welcomes questions you may have concerning investments, taxes, retirement or estate planning. Send your questions to: Steve Merrell, 2340 Garden Road, Suite 202, Monterey, CA, 93940. Or you can email steve.merrell@creativeplanning.com. This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.

One morning we decided to beat the sizzle by driving one hour northeast to Yucca Valley to hike the dog friendly 4-mile Chaparrosa Spring Loop in the Wildlands Conservancy Preserve. The Pionner Mountains’ granite boulders setting and temperate 4,000-foot elevation breeze was a fresh dose of stimulation for the whole pack! We spent the afternoon in an 1880s time capsule exploring Pioneertown’s Mane Street National Register Historic District, browsing around the old west movie set, museum, artisan shops and the Pioneertown Motel. We popped our heads in Pappy & Harriet’s Palace, famous for barbecue and live music.  I couldn’t believe Paul McCartney had performed here in 2016. Yucca Valley’s proximity to Joshua National Park attracts tourists, but the rugged outpost has been increasingly appealing as an escape from Hollywood glam. The Field Station Hotel’s minimalist Zen trademark and AutoCamp’s Airstream luxury glamping is tailored to a new “outdoor community” generation who value elevated creature comforts integrated into the rugged landscape. In contrast, the Yucca Valley airport’s Copper Room lounge and supper club celebrates Rat Pack retro glamour with classic cocktails in a vintage atmosphere.

Leaving Yucca Valley, a sign for the Save the Meow Meows Cat Lounge and Shop caught my attention.  Moments later I was handing my $11 donation fee for the privilege of mingling with over a dozen felines. This brilliant nonprofit model helps socialize adoptable cats on their way to their furever home. Later in the week, I discovered the Palm Springs’ Cat Café.  Claire and Sonny Von Cleveland’s business model aims at fostering community by blending a gourmet coffee shop with a cat adoption sanctuary in a certified neurodiverse workplace. Anyone is welcome to get their purring furry fix with a minimal entrance fee to the separate kitty salon.

Bicycling is David’s and my favorite mode for wandering around Palm Springs network of multi-use trails. The recently completed CV Link (Coachella Valley Link) expanded our range. The section along the Whitewater River Wash completes the visionary 40-mile “alternative transportation pathway” designed to link communities from Palm Springs to Coachella by foot, bicycle and low-speed EVs like golf carts. We sampled a section of the CV Link with a 20-mile loop and a refueling stop on Palm Springs’ Chicken Ranch’s bustling patio. We crowned our lunch with their famous velvety key lime pie.

The giant white spinning sentinels on the San Gorgonio Pass finally intrigued us enough to book space on a Palm Springs Windmill Tour. The guided tour began with an introductory film in a no frills office trailer before hopping in a golf cart with Bill, our eager guide and congenial retired horticulturist. Bill drove us around the outdoor museum and graveyard sprinkling information and pointing out details about each obsolete turbine. Braced by two mountain ranges, San Gorgonio is one of the most consistently windy stretches in the country. Staggering advances have reduced the number of turbines here from over 4,000 in the 1980s to around 1,000 much larger efficient turbines. Denmark is leading the pack in renewable energy with offshore turbine models boasting up to 500-foot long blades and a 1,000-foot rotator diameter.  Interestingly, the optimum “blade pitch” on wind turbines remains the same as on traditional Dutch windmills. The tour ended at the base of a 400-foot tower, where we sat dwarfed in the sea of turbines listening to the soothing rhythmic swish of the blades.

Palm Springs rolls out an annual parade of events to highlight Modernism Week. Our pick this year was a film about Big Sur Architecture and a stroll back in time through the Vintage Market where there’s a treasure waiting for everyone.

Palm Springs may be synonymous with golf, but Indio is polo time. The “Sport of Kings” originated in Persia as a cavalry training game and later caught on with British officers in India before becoming a modern sporting spectacle. We spent an afternoon at the dog friendly El Dorado Polo Club for a Canada vs. USA match with both teams stacked with Argentinian players. We circulated between the General Tailgating fans and the VIP Cabana guests enjoying the pageantry and mesmerized by the polo ponies’ spirited athleticism.

Our quest for a new challenge took us on the Palm Springs Aerial Tram to the San Jacinto Peak trailhead at the tram’s Mountain Station. I boarded the largest rotating tram car in the world (80 pax) up 2.5 vertical miles with my eyes mostly glued to the floor while David snapped photos from all angles. It’s no surprise that the engineering challenge was labeled the “Eighth Wonder of the World” in the 1960s. In 10 minutes you trade Colorado desert cacti for pines and are 40 degrees cooler.  Poles in hand and metal cleats on feet we hiked 12 breath-catching roundtrip miles mostly on ice and snowfields from 8,516 feet to the 10,834-foot peak, second highest in Southern California.  The final hand over hand scramble to the summit, rewarded us with panoramic views of the desert and a stadium of mountain ranges. On the drive to pick up Kulu from his day care romp, we detoured to the Krispy Kreme donut shop. David’s eye roll into warm dough and sugar Nirvana reminded me that peak experiences come in many forms. I couldn’t rule out polo lessons as my next desert high.

Carmel’s Linda and David Mullally share their passion for travel, outdoor recreation and dogs through articles, hiking books and photography at Falcon.com.