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Choosing a Financial Advisor

Choosing a Financial Advisor (Part 2) Consistent Financial Advice on Demand Individual investors may engage with a financial planner or advisor just once, either... Continue reading

11 Jul

Business Consulting

When Should You Hire a Financial Advisor? Part 1

When Should You Hire a Financial Advisor? (Part 1) What Exactly Are Financial Advisors? Being a financial guru isn’t for everyone, let’s face it.... Continue reading

06 Jun

Retirement Planning

States Are Requiring Retirement Plans

Will new mandates solve an old financial problem? Too many Americans save too little for retirement. This problem has been discussed for decades in all... Continue reading

25 May

Protect your family assets for future generations. All too often, family wealth fails to last. One generation builds a business—or even a fortune— lost in the ensuing decades. Why does it happen, again and again? Often, families fall prey to serious money blunders, making classic mistakes, or not recognizing changing times. This article is for informational purposes only and is not a replacement for real-life advice. Make sure to consult legal and tax professionals before modifying your overall estate strategy. Procrastination. This is not just a matter of failing to create a strategy but also failing to respond to acknowledged financial weaknesses. As a hypothetical example, say there is a multimillionaire named Alan. The designated beneficiary of Alan's six-figure savings account is no longer alive. He realizes he should name another beneficiary, but he never gets around to it. His schedule is busy, and updating that beneficiary form is inconvenient. Alan forgets about it and moves on with his life. However, this can cause significant headaches for those left behind. If the account lacks a payable-on-death (POD) beneficiary, those assets may end up subject to probate. Using our example above, Alan's heirs may discover other lingering financial matters that required attention regarding his retirement accounts, real estate holdings, and other investment accounts.1 Minimal or absent estate management. Every year, some multimillionaires die without leaving any instructions for distributing their wealth. These people are not just rock stars and actors but also small business owners and entrepreneurs. According to a recent Caring.com survey, 58% of Americans have no estate preparations in place, not even a will.2 Anyone reliant on a will alone may risk handing the destiny of their wealth over to a probate judge. The multimillionaire who has a child with special needs, a family history of Alzheimer's or Parkinson's, or a former spouse or estranged children may need a greater degree of estate management. If they want to endow charities or give grandkids an excellent start in life, the same idea applies. Business ownership calls for coordinated estate management with consideration for business succession. A finely crafted estate strategy has the potential to perpetuate and enhance family wealth for decades, and perhaps, generations. Without it, heirs may have to deal with probate and a painful opportunity cost—the lost potential for tax-advantaged growth and compounding of those assets. The lack of a “family office.” Decades ago, the wealthiest American households included offices: a staff of handpicked financial professionals who supervised a family’s entire financial life. While traditional “family offices” have disappeared, the concept is as relevant as ever. Today, select wealth management firms emulate this model: in an ongoing relationship distinguished by personal and responsive service, they consult families about investments, provide reports, and assist in decision-making. If your financial picture has become far too complex to address on your own, this could be a wise choice for your family. Technological flaws. Hackers can hijack email and social media accounts and send phony messages to banks, brokerages, and financial professionals to authorize asset transfers. Social media can help you build your business, but it can also expose you to identity thieves seeking to steal both digital and tangible assets. Sometimes a business or family installs a security system that proves problematic—so much so that it's silenced half the time. Unscrupulous people have ways of learning about that, and they may be only one or two degrees separated from you. No long-term strategy in place. When a family wants to sustain wealth for decades to come, heirs will want to understand the how and why, and be on the same page. If family communication about wealth tends to be more opaque than transparent, then that communication may adequately explain the mechanics and purpose of the strategy. No decision-making process. In some high net worth families, financial decision-making is vertical and top-down. Parents or grandparents may make decisions in private, and it may be years before heirs learn about those decisions or fully understand them. When heirs do become decision-makers, it is usually upon the death of the elders. Horizontal decision-making can help multiple generations commit to the guidance of family wealth. Financial professionals can help a family make these decisions with an awareness of different communication styles. In-depth conversations are essential; good estate managers recognize that silence does not necessarily mean agreement. You may attempt to reduce these risks to family wealth (and others) in collaboration with financial and legal professionals. It is never too early to begin. Citations 1. SmartCapitalMind.com, February 4, 2022 2. Yahoo.com, January 18, 2022

Wealth Management

Major Risks to Family Wealth

Protect your family assets for future generations. All too often, family wealth fails to last. One generation builds a business—or even a fortune— lost in... Continue reading

21 May

Wealth Management

Taking Charge of Your Financial Life

Delegating responsibilities to others may lead to problems down the road. When you are putting together a household, it isn’t unusual to delegate responsibilities. One... Continue reading

07 Apr

Uncategorized

Updated Premiums and Deductibles for Medicare

Medicare’s premiums and deductibles have seen a larger-than-expected rise this year. For example, Medicare Part B monthly premiums have risen to $170.10, a 14.5% increase.... Continue reading

04 Apr

Risk Management & Insurance Planning

Is Inflation Peaking?

Growth through innovation/creativity. Rather than be constrained by ideas for new products, services and new markets coming from just a few people, a Thinking Corporation... Continue reading

04 Apr

Retirement Planning

Retirement Preparation Mistakes

Why are they made again and again? Much is out there about the classic financial mistakes that plague start-ups, family businesses, corporations, and charities. Aside... Continue reading

28 Mar

Retirement Planning

Roth IRA Conversions

What are your choices? What are the benefits? If you own an Individual Retirement Account (IRA), perhaps you have heard about Roth IRA conversions.... Continue reading

23 Mar

Retirement Planning

Getting (Mentally) Ready to Retire

Even those who have saved millions must prepare for a lifestyle adjustment. A successful retirement is not merely measured in financial terms. Even those who... Continue reading

12 Mar

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Choosing a Financial Advisor

When Should You Hire a Financial Advisor? Part 1

States Are Requiring Retirement Plans

Major Risks to Family Wealth

Taking Charge of Your Financial Life

Updated Premiums and Deductibles for Medicare

Is Inflation Peaking?

Retirement Preparation Mistakes

Roth IRA Conversions

Getting (Mentally) Ready to Retire