Join Tom for a CE event on July 31!

On July 31, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of The Replacement of a Life Insurance Contract: The Good, The Bad and The Ugly.

On a rare occasion, a life insurance contract will have to be replaced. The Internal Revenue Service mandates strict rules as to the replacement and design of the new life insurance contract. Financial advisers need a keen awareness of the applicable sections of the Internal Revenue Code; the various types of life insurance contracts; and the unique features and benefits of each contract type. This presentation will walk the adviser through the replacement process and illustrate the “finished product” with a case study.

The Webcast will be held on Friday, July 31, 2015 at 1:30PM EDT. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Join Tom for a CE event on April 24!

On April 24, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Personal Financial Planning & Community Property.

Marital property law affects all aspects of the personal financial planning process including: business interests, debt, estate, risk management and tax.
Your clients do not have to reside in a community property state in order for the community property rules to apply to their personal financial planning. The presentation will illustrate the application of community property law to the personal financial planning process, survey the history of Common and Community Property law, review the types of marital property ownership systems, and discuss the concept of ‘once community property always community property’ – regardless of jurisdiction.

The Webcast will be held on Friday, April 24, 2015 at 1:30PM EDT. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Join Tom for a CE event on January 30!

On January 30, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Case Studies in the Generation-Skipping Transfer Tax in the Personal Financial Planning Process.

The various types of Generation-Skipping Transfers will be illustrated through case studies in the personal financial planning process. The presentation will review the history of the Generation-Skipping Transfer Tax; illustrate the various types of “skips” through case studies; as well as, assess how these “skips” impact the personal financial planning process.

The Webcast will be held on Friday, January 30, 2015 at 1:30 PM EST. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Join Tom for a CE event on December 5!

On December 5, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Generation-Skipping Transfer Tax in the Personal Financial Planning Process.

Topics to be addressed will be: This presentation will review the history of the Generation-Skipping Transfer Tax, as well as detail how the various changes within its structure affect the personal financial planning process. Topics will include the various types of ‘skips,’ the implications of EGTRRA and ‘indirect skips,’ as well as a review of the various strategies in ‘preserving portability.’ The Webcast will be held on Friday, December 5, 2014 at 1:30 PM EST. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Join Tom for a CE Event on July 25!

On July 25, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Updates in Estate Planning: A Review of 2014 Changes and Their Impact on Clients’ Estate Plans.

Topics to be addressed will be: an overview of the estate planning process: regulatory updates on the DOMA decision and it’s continuing impact on the personal financial planning process; standalone retirement trusts and asset protection; continued use of GRATs; the use of discounts for lack of marketability in estate planning. The Webcast will be held on Friday, July 25, 2014 at 1:30 PM EDT. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Making a difference

This past week I was visiting Ashley Thiem, CPA / PFS in our new Paraklete® Financial, Inc. office in Charleston, SC. As we were making the rounds, I continued to be amazed by the number of individuals, and advisers, who want to retain the services of our firm. There is a definite desire on the part of consumers to engage a financial planning firm that does not manage assets or sell products.

One of the venues we visited was a large manufacturing operation. The business had been in the family for several generations and the next generation was about to “step up to the plate.” Their concerns were business continuity planning, income tax savings and better cash flow for the company—not that there wasn’t enough cash flow; but rather there was too much, which resulted in higher income taxes. [Read more…]

Boot Camp

Well it’s that time of year again. Presently at the firm we are transitioning from the Income Tax Review season into the CPA / PFS Live Review season. This tax season was particularly difficult for our clients and their advisers. The reality of the reinstatement of the Personal Exemption Phaseout and the limitation on Itemized Deductions became quite apparent to many of our clients. Also, the Net Investment Income tax, created to support the Affordable Care Act, gave shocking results to our clients, to say the least! Long story short, taxes are higher for almost everyone. [Read more…]

Stock pickers, market timers, and crystal balls

“The worst months to invest money in the stock market are October, January, and May. The others are February, June, November, March, August, April, September, July, and December.

Mark Twain’s sense of humor is reflected in his quote on investing – unfortunately, his investing experience was far from humorous. While his writing was very profitable, he lost a great deal of money as a result of his attempts at market timing and security selection. His initial foray into investing resulted in bankruptcy. [Read more…]

Life Insurance: How Much Do You Really Need?

The fear of death follows from the fear of life. A man who lives fully is prepared to die at any time.   Mark Twain

There is a great deal to take away from this quote by Mark Twain. I concur with his sentiment. However, dying at any time presents an unacceptable financial risk to survivors unless the deceased is fully insured for life insurance.

The risk of a pre-mature death is a catastrophic failure of one’s dreams and goals. In today’s society, individuals ‘mortgage’ [French word meaning payable unto death] their futures by borrowing against their potential wages. The result of an untimely death is that the bills all come due at a most inopportune time. [Read more…]

Risk Management: Considering Statistics

The trouble ain’t that there is too many fools, but that the lightning ain’t distributed right.

This quote by Mark Twain is a wonderful starting point in a discussion about managing risk in a personal financial plan. One of the areas which needs to be addressed is the statistical odds of an event occurring. Fools (which I make it a point to never call anyone) and lightning provide a wonderful opportunity to discuss some math concepts and risk management.

Everyone has heard the statistical odds of being struck by lightning are approximately one in a million. This statistic is based on the average of reported lightning strikes in the U.S. The math works this way: 310,000,000 (U.S. Population) / 280 (Average annual lightning deaths and injuries) = 1 in 1,107,143. Which is approximately, give or take, one in a million (U.S. National Weather Service).

Now here is where an individual can play and have some fun with statistics. The state within which you live has a tremendous impact on one’s odds of being struck by lightning, which many mean that ‘fools’ are smarter than for which Mr. Twain gives them credit. Those who live in Montana (the Big Sky State!) have a greater statistical chance of being struck by lightning – roughly 1 in 249,550. On the other end of the continuum is California. Residents of that state have the lowest statistical odds of being struck by lightning. So the lesson for each of us is that risk can be managed. Fools do not live in Montana in order to increase their chances of ‘not’ being struck by lightning. [Read more…]