Archives for June 2013

Welcome to My Blog!

Welcome to my blog! For my part this project has been a labor of love for over a decade; and for those who have encouraged and supported its creation—a labor of patience! The genesis for the website is the daily emails and telephone calls I receive from advisers across a variety of disciplines: accounting, estate planning, investment and risk management, and private banking from across the country. Each one asking, “How does my solution affect the other disciplines?”

My natural curiosity and desire for knowledge encouraged me to chase the “rabbits” and find answers for other advisers. The results of the research have been codified into our Continuing education events, Platform Presentations, Live Reviews for CPA/PFS’s and CFPs®, Curricula for universities and online providers of financial planning curriculum.

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A Wise Choice

One of the questions that I often receive has to do with dividend reinvestment plans (DRIP). Recently, a lady wrote to me asking, “Now that I have the paperwork I need to complete the name change on the account from my maiden name to my revocable living trust. I have a quick question for you. With this change, I have to send my certificated stocks, which are in my maiden name to my financial advisor. I have been told that I have the option to have the certificated stocks retitled and sent back to me or to have them hold the certificates. Do you have a preference?

There is more to this question then most consumers are aware. The bottom line is to have them hold the certificates. The process to replace a stock certificate is a difficult and expensive task for an individual investor and here is why. There are three ways in which a security may be held: physical certificate, “Street Name” registration and “Direct” registration.

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Advance Directive for Health Care

When difficulty comes, we need an action plan, but for many planning doesn’t begin until the bell begins to toll. One of the things we can do in advance is prepare for the future when it comes to our parents’ care and especially if they end up in hospice care. Even now, when we enter the hospital for minor surgery, we are asked to provide an Advance Directive for Health Care. For some this a scary document but it doesn’t have to be. One client asked me to explain this document to her since her mother had just been placed under hospice care.

Several years ago my own mother was admitted to hospice care. The support they offered to her and our family was invaluable. This type of document is a part of the process and is provided for the patient to have input in his or her final healthcare.

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The Truth About Private Banking

“Private Banking” should not be confused with “Private Banks”.  The latter are banks that are not incorporated and are owned by individuals or families. Often these terms are used interchangeably because each is involved with high net worth individuals (HNWIs).

Many banks offer “Private Banking” services. This segment of the market has high profit margins. HNWIs are great credit risks for lending services. They keep significant amounts of cash on deposit and have capital available for investment management services.

“Private Banking” services offered by Retail Banks are abysmal. A Retail Bank teller will inform you that establishing a checking account in the name of a revocable living trust (RLT) is not permitted. Many times when asked to establish a checking account for an intentionally defective grantor trust (IDGT) or a Wyoming Limited Liability Company, they give you “a deer in the headlights” look.

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