It is inevitable; we get older every day. The time to begin the planning for the next generation is now. The complexities of the family and the amount of money moving to the next generation can help determine how much time and effort will be required to ensure success for future generations. The creation of wealth bares a new set of responsibilities. If you would like the transfer of your wealth to benefit the next generation, then you need to consider involving your family early. Each person’s goals, values, and ambitions might not align, but this is a time to find common ground. For success it will be important for each generation to understand each other’s perspectives; square peg, round hole – futile.
In a world where we are bombarded with media hype about different stock picks, get rich quick schemes and claims that some managers have a crystal ball for how to beat the market, a wise investor is one who blocks out the white noise and pays attention to facts and science. A recent article written by Philipp Meyer-Brauns, PhD, an associate at Dimensional Fund Advisors, looks at reporting on mutual fund performance and reveals that there is often not enough perspective given to all of the factors that one must take into account when determining true performance.
Why do people get anxious about planning for retirement? The anxiety comes from different places—it can be the complexity of the planning process, the uncertainty of the outcomes, or the different parts that have to come together in order to make a cohesive plan work.
Then there’s the fear of making a mistake. In our experience in working with clients, this is the most common cause of anxiety. There are no do-overs when it comes to retirement planning. That fact can often place significant pressure on individuals and raise their anxiety about the entire process.
You may have heard a common investment expression “It’s not what you make that counts. It’s what you keep.” Minimizing taxes from investment activities is important because it’s one of the few aspects of investing that an investor can gain significant control over. Paying attention to the tax consequences of investing can substantially increase long-term wealth and increase spendable income. This article will address various investment strategies and products for minimizing taxes.
A qualified retirement plan can provide many benefits for an employer and its employees. In order for the plan to run smoothly so that its usefulness can be maximized, the employer should be aware of the ongoing responsibilities related to the administration of the plan.
Once procedures have been established, the plan can function to its potential and remain within the qualification guidelines of the Internal Revenue Code ("IRC") and the fiduciary requirements of the Employee Retirement Income Security Act ("ERISA"). This newsletter will examine the basic responsibilities of the plan sponsor of a qualified plan.
Many academics consider the active-vs.-passive debate settled. Yet, despite the strong evidence supporting a passive approach, many investors still assume that skillful active management can increase returns, net of costs. In this three-part series, Brad Steiman offers fresh insight on the debate and provides content that advisors may find useful in their communication efforts. Part 1 features questions relating to the theoretical aspects of market efficiency and active manager performance. In subsequent columns, he will explore the implementation of active and passive strategies, and feature additional questions and comments submitted by readers.