A Dynasty Trust is a long-term trust formed to transfer wealth from one generation to another without incurring estate and gift taxes. The Dynasty Trust’s key characteristic is its duration. Assuming you take advantage of the laws of a state that has repealed the Rule Against Perpetuities, the principal will never be subject to estate or inheritances taxes.
Most people would argue that living in a digital world, with instant access to an endless stream of information has made us smarter and more empowered than past generations. Investors believe that it has “leveled the playing field”, enabling them to make investment decisions based on the same information once only available to the investment professionals.
When we let the endowment effect influence our investment decisions, the result is often a portfolio of assets that have outlived their usefulness or are no longer appropriate for our financial situation. This is especially true as people near retirement and continue to hold on to positions they’ve owned for extended periods of time.
Increased accessibility to higher education. Evolving technological and medical sciences. Growing private companies. Greater entrepreneurial opportunities. Robust capital markets...and let’s face it, many local companies such as Facebook, Tesla, Apple, Visa, Genentech, LinkedIn, Google, Gilead and Twitter have enriched many of their employees.
What happens when the disposition effect erodes your investment plan? When you always sell your winners but hold on to your losers, you end up with a basket of, well, losing investments. Like many habits, understanding the how’s and why’s of the disposition effect can help you lessen its impact on your financial plan.
What happens when your portfolio returns 2 percent a year instead of 8 percent? Such a dramatic difference in return assumptions can leave you with a shortfall right at a time when you may need the resources most, such as retirement. How should you invest in a low-return environment? What changes you should make in your investment portfolio or financial plan?
The reasons donors give to charities are as diverse as the donors themselves. In a study by the National Philanthropic Trust, it was found that 62% of high net worth donors cite “giving back to the community” as their chief motivation for giving. There are also many tax based reasons for charitable giving. In order to claim a deduction...
Managing your finances can be a challenging task. To help you, there are a number of free online tools that can offer guidance and insight. Explore the tools below to get assistance in organizing your financial life.
Even as the equity market approaches new highs, retirement savers, still shell-shocked from the extreme volatility of recent years, are slow to wade back into equities. Smaller investors tend to ignore the history that shows that the market eventually rewards those who can withstand the fluctuations and stay the course through the various market cycles.
Every generation has different assumptions about how the world works. But could these differing views affect how each generation plans for retirement? These two topics may seem disjointed, but generational experts think they could be connected. Tamara Erickson, author of “Retire Retirement: Career Strategies for the Boomer Generation,”...