DEAR TRUST OFFICER: Are the tax cuts enacted last December having the hoped-for impact? How is the economy doing? — ETERNAL OPTIMIST DEAR ETERNAL OPTIMIST: Too soon to say, but we have a number of good portents. Gross Domestic Product was up 2.2% in the first quarter. In the last four years, the first quarter […]
Read MoreMonth: June 2018
Do I Need a Fiduciary? (Part V)
We expand step #5 this week with some brief comments on risk. Establish financial objectives and determine the time frame associated with each one. Determine the amount of savings which will be necessary to fund the investment accounts sufficiently. Determine the types of investment accounts available to best take advantage of provisions in the tax […]
Read MoreBattle Brews Over SALT
Several high-tax states, including California, New York, New Jersey, and Connecticut, are trying to establish a legislative work-around to the new $10,000 cap on the deduction for state and local taxes (SALT). The cap will only affect the highest-income taxpayers, who have long been the target for state tax increases. Nevertheless, these states apparently fear […]
Read MoreYield Curve Signals and Timing
We will finish the series on the value of a fiduciary in the coming weeks but we will pause to comment on the market activity. The stock market has been up in four of the last five weeks. On Friday, the S&P 500 closed at 2,779.66, up 7.7% from the correction low close of 2,581.00 […]
Read MoreThe “Senior Safe Act”
Financial exploitation of our senior citizens is a growing problem. To some extent, seniors are targeted because that’s where the money is. However, the decline of cognitive ability in the older population also may be a factor when scamsters consider whom to go after. Financial professionals—bankers, brokers, insurance agents, and trustees, such as us—are on […]
Read MoreDo I Need a Fiduciary? (Part IV)
Step #4 begins the process of portfolio allocation. Without going into great detail, the following is a simple overview of the three major asset classes. A review of the historical returns from each asset class along with the corresponding historical business cycles, debt cycles and inflation levels are useful to attempt realistic assumptions of future […]
Read MoreWealth and Longevity
You don’t have to be rich to live a long life, but it helps. Crain’s Wealth recently summarized several surveys on the subject. Some of the takeaways: According to an AMA study, the richest 1% of women live more than 10 years longer than the poorest 1% of women. For the men, the difference is […]
Read MoreDo I Need a Fiduciary? (Part III)
After establishing and prioritizing the importance of well-defined goals, we will turn our attention to creating a personal financial statement and budgeting for attainment of current and future objectives. The next stage is an assessment of the types of savings and investment plans or accounts available. A primary difference among the account types available is […]
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