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Financial Independence by John J. Vento
Affordable Care Act / Obamacare, Albert Einstein, asset allocation, diversification, diversified portfolio, estate planning, financial independence, fixed income, high net worth, Home mortgage interest deduction, money market fund, mortgage debt, mortgage tax deduction, oil shock, Own Your Own Home, passive income, risk tolerance, the rule of 72, time value of money, transaction costs, young professional, zero day
The money you may spend today on a qualified estate attorney may save your estate significant dollars in both estate taxes and administrative costs down the road. Estate planning can give you peace of mind by assuring your family’s financial security will continue even after your death. It can significantly reduce estate taxes, administrative costs, and assure that your loved ones will be taken care of. It allows you to dispose of your assets as you see fit, with consideration given to your heirs’ Financial Independence ( Getting to Point X ) : An Advisor’s Guide to Comprehensive W ealth Management © 2013 John Vento.. Published 2013 by John Wiley & Sons, Inc. John J. Vento 251 c10.indd 251 26/02/13 2:47 PM 252 Financial Independence (Getting to Point X ) individual needs. It is important to understand that estate planning is not just for the wealthy. The Federal Gift and Estate Tax System The federal gift and estate tax system is a unified system that works hand-in-hand with virtually the same rules and tax rates that are applicable.
In order to ensure that you preserve your estate for your intended beneficiaries, it is important to stay on top of the everchanging rules of the game. Working closely with a trusted tax advisor is perhaps one of the best ways to ensure that you can take advantage of these tax law changes when they arise. Legal Documents to Consider for Estate Planning Regardless of the size of your estate, you should consider addressing your own individual planning issues, in order to preserve your estate and make your wishes known, preferably in writing. I recommend meeting with a qualified estate planning attorney to determine if you need a will prepared, based on your particular facts and circumstances. If you have no minor children, or if all of your assets are held jointly with your spouse, or if you have no assets to speak of, then your estate may not need to go through probate.
In my opinion, everyone should consider their own particular needs; then you should determine what legal documents are most appropriate for you, whether it is a will, a trust, a health care proxy, a living will, or durable power of attorney (or some combination thereof)—all of which I will explain in this chapter. Please note that the names of some of these documents vary from state to state. Before I discuss the details of estate planning techniques, it is important to understand some of the key legal documents that may be needed in this planning process. An effective estate plan may need to include one or more of these documents that may cover all three phases of your life. Phase I is while you are alive and well, Phase II is in the event that you become disabled, and Phase III is after your death. To preserve your estate and allow your loved ones to share in your success of reaching point X, you will need to address numerous legal forms so that your legacy can be transferred with ease.
Capital Without Borders by Brooke Harrington
banking crisis, Big bang: deregulation of the City of London, British Empire, capital controls, Capital in the Twenty-First Century by Thomas Piketty, complexity theory, corporate governance, corporate social responsibility, diversified portfolio, estate planning, eurozone crisis, family office, financial innovation, ghettoisation, haute couture, high net worth, income inequality, information asymmetry, Joan Didion, job satisfaction, joint-stock company, Joseph Schumpeter, liberal capitalism, mega-rich, mobile money, offshore financial centre, race to the bottom, regulatory arbitrage, Robert Shiller, Robert Shiller, South Sea Bubble, the market place, Thorstein Veblen, transaction costs, upwardly mobile, wealth creators, web of trust, Westphalian system, Wolfgang Streeck, zero-sum game
See also offshore finance tax shelters: colonies as, 254; complexity of, 53; corporate, 151; offshore financial centers as, 47; trust-corporation configuration as, 188; in United Kingdom, 241–42 TEP (Trust and Estate Planning) certification, 26; in advertisement for wealth manager, 60; as industry standard, 30, 55–56; on offshore financial centers, 129, 130; on the state, 236–37; on taxes, 226 testamentary freedom, 166 Thyssen-Bornemisza, Baroness Carmen, 160 tiered entities, 189–92 Tocqueville, Alexis de, 204, 209 trade: free, 239, 254, 293; sanctions, 295; trade-restriction avoidance, 159–60; wealth from global, 5, 51 training programs, 97–98, 103 transaction costs: continuity of wealth reduces, 214; for corporations, 181, 182; for foundations, 180; increased cost of borrowing, 221; minimizing, 209, 212; for private investment opportunities, 212; succession planning reduces, 215 treaties, 133, 256, 264 Treaty of Westphalia (1684), 133, 234, 235, 290, 293–97 Trevor (Panama-based wealth manager), 83, 229, 255 Trudeau, Kevin, 157–58 trust: in client relations, 20, 81–105, 120–21, 287; culture and, 108–16; in institutions, 75; pricing related to, 107, 108; rule of law as basis of, 109; similarity as basis for, 95; social identity and, 119–20 trust and estate planning: American College of Trust and Estate Counsel, 30; bar association special-interest groups for, 29; becomes an industry, 126; Chartered Trust and Estate Planner certification, 30; disparate professions in, 55; professionalization of, 4, 5–6; transformation of capitalism and emergence of, 51; university degrees in, 56. See also STEP (Society of Trust and Estate Practitioners); wealth management Trust and Estate Planning (TEP) certification. See TEP (Trust and Estate Planning) certification trust companies, 3, 77, 190, 191–92, 250 trust-corporation configuration, 185–92; asset transfer in, 8–9; as best-of-both-worlds, 188–89; relationship among substructures in, 9; STAR (Special Trusts Alternative Regime) structure, 168, 169, 170–71, 177, 185, 276; in tiered entities, 189; VISTA (Virgin Islands Special Trusts Act) trusts, 57, 114–15, 168, 169–70, 177, 185, 222 Trustee Act (2000), 49, 284 Trustee Investment Act (1889), 48–49 trustees: class solidarity with those who request their services, 42, 51; compensation for, 45, 49–50; courts expand powers of investment of, 48–49, 74; culture and, 109; as economically celibate, 50; evolution during nineteenth century, 51–52; faithless feoffees, 41, 48; feudal aspects of, 40, 51, 214; fiduciary duty of care for, 46; full personal liability for losses to trust, 49, 83; Harvard College v.
See also family fortunes e-commerce, 297 economic inequality: agency in, 205–8, 273, 274–76; contributions to theory and research of this study, 273–76; democracy threatened by, 220; in income, 11, 195, 199, 200, 203–4, 273; inequality defined, 197; inheritance in, 201–5, 207, 218; offshore finance in, 194, 196, 219–20; the problem of inequality, 197–208; in recovery from financial crisis of 2008, 201, 211–13; renewed interest in, 195–96, 273; rising levels of, 194, 220; STEP and changing views of, 225–30; tax avoidance in, 194, 207; in wealth, 11, 12, 195, 200–201, 203, 205–8, 273; wealth management in, 10–12, 20–21, 172, 193–232, 272, 297–98 economic mobility: decline in, 218–19; inheritance reduces, 217; upward mobility, 219, 221, 265 education: family institutions take on functions of, 250; philanthropic trusts address problems of, 252; wealth managers’ educational background, 102–3; wealth provides basis for long-term investments in, 273; wealth unduly influences, 266, 268 Elaine (Dubai-based wealth manager), 83, 86, 104–5, 117, 166, 287 Eleanor (Swiss-based wealth manager), 69, 79–80, 89 Elias (Panama-based wealth manager), 114, 177, 229–30, 232, 298–99 Elias, Norbert, 282–83, 286–87, 288 elites: alliances among, 17–18; assert their autonomy from government, 43, 128, 314n29; change disliked by, 89; as class that inherits, 203; dynastic wealth and political power of, 15–16, 223; essential sameness of, 81–82; family institutions opened to the public, 250; gaining trust of high-net-worth individuals, 92–105; getting them to submit to rule of law, 303; habitus of, 95, 103; hypermobile international, 236; imperial, 254–55; landed, 43, 46–47, 124; local, 260, 261; noblesse oblige in feudal, 275; reproduction of, 10; social conventions of, 93; solidarity of, 41, 50; studying, 22, 27; transnational, 260, 270; ultra-high-net-worth individuals, 11; wealth managers gain access to, 74; wealth managers like themselves preferred by, 95–97; wealth managers participate in recreational activities of, 91. See also 1 percent EMEA (Europe, Middle East, and Africa), 243 Engels, Friedrich, 16, 204 Enlightenment, 18, 203, 204, 218, 277 entail, 4, 208, 218, 276, 306n17 equal opportunity, 204 Erika (Swiss wealth manager), 61, 69, 82, 98–99, 137–38, 245–46, 248, 298 estate planning: in civil-law countries, 57–58. See also trust and estate planning ethnography, 27–30; immersion, 25, 274 European Union: cash-for-passports programs, 239–40; Cook Islands blacklisted by, 158; Savings Tax Directive, 299 euro zone banking crisis, 239 exchange funds, 206 Executive Commission (European Union), 158 express trusts, 155 family: banks, 251, 269; children kept secret from the legally recognized, 125; client relations as quasi-familial, 85–88, 92, 120–21; contemporary social scientific theories of, 278; contributions to theory and research of this study, 276–78; disputes over wealth of, 16–17; dynastic, 96, 193–94; institutions opened to the public, 250; as not high-trust environment, 84; suspicion in wealthy, 81; tear themselves apart over money, 88; transformation in, 165–67; wealth lends special dynamic to, 84–85; wealth management influences, 16–17, 272; wealth managers help families, 68.
Attempts to capture the full complexity of professional activity have included the fanciful (“fiscal alchemists”), the utilitarian (“transaction planners”), and the politically pointed (“income defense providers”).13 However, consensus seems to be developing around the term “wealth managers,” even among many STEP members.14 Indeed, a much-discussed article in the STEP Journal claimed that STEP practitioners—unlike lawyers, bankers, or other competing professional groups—are “the true wealth managers,” because their domain comprises “the whole spectrum of the client’s assets and other financial affairs. Wealth management is seen as the overarching role pulling together the advice of various investment, tax, and other experts into a coherent plan.”15 Thus “wealth managers” is the term I will use in this book. That the professionalization of trust and estate planning remains incomplete owes something to the changing nature of wealth itself. Historically, land ownership has been the primary source of great fortunes globally; this remains true in many parts of the world, particularly in Africa and Latin America.16 In that context, family wealth could be defended without the intervention of professionals, through practices such as intermarriage, primogeniture, and entail.17 In cases where those strategies were unavailable or impractical—as when knights of medieval Europe departed for the Crusades, leaving their lands vulnerable to seizure by the church, the state, or rival noblemen—some adopted the practice of putting their assets in trust.
Your Money: The Missing Manual by J.D. Roth
Airbnb, asset allocation, bank run, buy and hold, buy low sell high, car-free, Community Supported Agriculture, delayed gratification, diversification, diversified portfolio, estate planning, Firefox, fixed income, full employment, hedonic treadmill, Home mortgage interest deduction, index card, index fund, late fees, mortgage tax deduction, Own Your Own Home, passive investing, Paul Graham, random walk, Richard Bolles, risk tolerance, Robert Shiller, Robert Shiller, speech recognition, stocks for the long run, traveling salesman, Vanguard fund, web application, Zipcar
If you really need help, your best bet is to get advice from a professional tax adviser. Yes, it'll cost money, but you'll usually find it's worth the fee—and then some. A Brief Overview of Estate Planning Nobody likes to think about death—especially their own. Most people don't think about creating wills until they hit middle age. But you can't always see death coming and, in addition to the emotional trauma, it can wreak financial havoc on your family. You can make things a little easier for your family and friends by planning ahead and creating a will. A will is for anyone who wants to distribute their money and possessions according to some plan. (All that you own, including physical property and investments, is known as your estate. An estate plan is a strategy for passing your money and Stuff on to your heirs.) Wills are extremely important. They give clear, legally-binding instructions about what you want done with your assets.
Nolo.com is an excellent source for books and software about legal topics. The site offers info on a variety of subjects, including estate planning. (Most public libraries have a good selection of Nolo books and other resources to help you prepare a will and other documents.) Using resources like these, you can put together a simple will in under an hour. But be warned: These tools are aimed at those with basic needs. The documents they produce are certainly better than nothing, but if you have a complicated estate (if you own a business or have children by a previous marriage, for instance), your best bet is to contact an attorney. If you use software or pre-printed forms to create your will, be sure to follow the signing instructions for your state. For more on do-it-yourself estate planning, read this article from the New York Times: http://tinyurl.com/NYT-wills.
Once the attorney has an idea of what you own and where you want it to go after you die, he'll draw up the paperwork. Though most wills share certain features, the attorney will customize it for your specific needs. Tip If you want to know how much an estate plan will cost, ask. The price depends on where you live and how complicated your estate is. In a way, preparing a will is sort of anti-climactic. There's not a lot of legal mumbo-jumbo or red tape. You simply gather info, answer a few questions, and sign on the dotted line. For some people, there's more to estate planning than just creating a simple will, but for many, it really is this easy. Once you have a will, keep it someplace safe and accessible, like a safe-deposit box, and let trusted family members know where it is. If your family can't find your will, they can't follow your wishes.
Freedom Without Borders by Hoyt L. Barber
accounting loophole / creative accounting, Affordable Care Act / Obamacare, Albert Einstein, banking crisis, diversification, El Camino Real, estate planning, fiat currency, financial independence, fixed income, high net worth, illegal immigration, interest rate swap, money market fund, obamacare, offshore financial centre, passive income, quantitative easing, reserve currency, road to serfdom, selective serotonin reuptake inhibitor (SSRI), too big to fail
The OES covers banks; banking services; investments; investment services; global economics; financial, tax, and estate planning; asset protection strategies; offshore citizenship; offshore business and e-commerce; tax havens; foreign real estate investment; expatriating; tax problems; professionals; and more. For more information visit www.barberglobalfinancial.com or www.barberfinancialadvisors.com. BANK RESOURCES Bank Websites Worldwide. Website: www.qualisteam.com. Financial Standing of Banks Worldwide. Website: www. Fitchratings.com. Secrets of Swiss Banking: An Owner’s Guide to Quietly Building a Fortune, by Hoyt Barber. John Wiley and Sons, Inc., Hoboken, NJ. 2008. Switzerland is still the global vanguard for asset and investment management and for its financial-related insurance products for excellent estate planning, investment diversification, asset appreciation, maximum financial privacy, asset protection, and more.
The remaining chapters will help you flesh out your structure and connect you up in the areas needed to move forward safely. Chapter 2 The Best Offshore Structures Our country is wherever we are well off. — John Milton, 1666, 17th-century English poet Author of Paradise Lost, an epic poem For privacy and asset protection, offshore is the answer. If you wish to hold assets and cash, gain maximum financial privacy protected by law, operate an offshore business, or create the best estate plan anywhere, the preferred means is to utilize one or a combination of offshore structures. Although you can certainly hold bank and investment accounts in your personal name with financial institutions in foreign countries, you will find that it is far wiser and more private and that you will be better able to insulate your wealth from domestic predators, including your own government, if you maintain these important accounts in the name of legal entities that you control or which are yours by design and part of your offshore estate.
ASSET PROTECTION TRUST (APT): BELIZE, NEVIS, COOK ISLANDS The three best jurisdictions for asset protection trusts in the world are Belize, Nevis, and the Cook Islands. The following describes the Belize APT. Nevis and the Cook Islands share many of the same advantages and similarities. Belize’s trust law is one of the strongest and most flexible asset protection trust legislations in the world, and Belize is highly favored by this author, along with Nevis and the Cook Islands, for offshore estate planning, asset protection, and investment purposes. The combination of a Belize asset protection trust and an IBC or LLC under the APT umbrella allows the principal(s) to maintain and enjoy the benefits of ownership and control while still procuring the impermeable protection and privacy of the trust. In this combination, the trust owns the stock of the IBC or is Managing Member of the LLC, while assets and accounts are in the name of the IBC or LLC, which is managed by the principal(s).
The Bogleheads' Guide to Investing by Taylor Larimore, Michael Leboeuf, Mel Lindauer
asset allocation, buy and hold, buy low sell high, corporate governance, correlation coefficient, Daniel Kahneman / Amos Tversky, diversification, diversified portfolio, Donald Trump, endowment effect, estate planning, financial independence, financial innovation, high net worth, index fund, late fees, Long Term Capital Management, loss aversion, Louis Bachelier, margin call, market bubble, mental accounting, money market fund, passive investing, Paul Samuelson, random walk, risk tolerance, risk/return, Sharpe ratio, statistical model, stocks for the long run, survivorship bias, the rule of 72, transaction costs, Vanguard fund, yield curve, zero-sum game
• Help you decide if you need to enlist the services of an estate planning attorney. Calculate if it's better to take a lump-sum payment or monthly distributions on a windfall such as a retirement package. Give you a clearer picture of how the windfall can help you achieve your long-term financial goals. The American Institute of Certified Public Accountants has a PFS designation for CPAs specializing in personal financial services. To locate one nearby, you can call the AICPA at 888-999-9256 or go to www aicpa.org to do an online search. Once again, we recommend asking a CPA at the outset if he or she sells financial products, or is in any way compensated by the people they recommend, and steering clear of those who do. Other possible advisors you may wish to hire are an estate planning attorney and a financial planner.
Remember, it's the tax regulations, not you, that determine who's rich. Therefore, the estate tax laws that are in effect at the time of your death will establish the level at which your estate will have to pay additional taxes on your accumulated assets for being too rich. Although it's beyond the scope of this book to offer legal advice (that's what estate planning attorneys are for), we will touch on a number of things you need to consider regarding estate planning and passing your assets on to those you want to have them. That is a better option than simply leaving those decisions up to the intestate law of your state, and perhaps leaving a major portion of your assets to the taxman. We'd all like to think that we're special, that perhaps we're somehow even immortal. While we may, indeed, be special, we are all mortals and thus have to deal with the reality of our eventual demise.
DOCUMENTS WE'LL NEED In some ways, it would be nice if we knew in advance when our time on this planet was up so that we could have everything in perfect order. But since we don't know the date of our demise, we need to plan now for any number of eventualities, including the distribution of our assets after our death. It's important to know that getting our affairs in order involves so much more than just estate planning. There are a number of other legal issues that we'll have to deal with and documents that we'll want to have in place. These issues and documents are often handled by your attorney at the same time he or she is preparing your estate planning documents. Let's take a look at some of the documents you might need and some things you'll need to consider about each of them. A Will You should have a will, even if you have a trust. If you have minor children, here's where you'd name the person you want to designate as the children's legal guardian in the event that both you and your spouse are deceased.
The Handbook of Personal Wealth Management by Reuvid, Jonathan.
asset allocation, banking crisis, BRICs, business cycle, buy and hold, collapse of Lehman Brothers, correlation coefficient, credit crunch, cross-subsidies, diversification, diversified portfolio, estate planning, financial deregulation, fixed income, high net worth, income per capita, index fund, interest rate swap, laissez-faire capitalism, land tenure, market bubble, merger arbitrage, negative equity, new economy, Northern Rock, pattern recognition, Ponzi scheme, prediction markets, Right to Buy, risk tolerance, risk-adjusted returns, risk/return, short selling, side project, sovereign wealth fund, statistical arbitrage, systematic trading, transaction costs, yield curve
. _______________________________ INHERITANCE TAX, WILLS AND ESTATE PLANNING 111 ឣ Other insurance products These are outside the scope of this chapter, but may be useful planning tools for some individuals. Assets that qualify for relief If an individual owns business or agricultural property at the date of his or her death, the property may attract relief at either 100 per cent or 50 per cent (depending on the exact nature of the property in question and the period of ownership). As business property includes AIM investments, it is possible for a well-managed AIM portfolio to be a satisfactory investment in itself, whilst also attracting IHT relief at 100 per cent. Gifts to charities It is worth noting that gifts to charity qualify for 100 per cent relief from IHT. Conclusion Inheritance tax, wills and estate planning are a very complex subject and this chapter can do no more than set out general guidelines and limits.
The Isle of Man benefits from a strong reputation based on quality and security and is supported by professional advisers both locally and from around the world. The Isle of Man is the natural choice for private clients. To find out how the Isle of Man can enhance your personal and business wealth, please contact Isle of Man Finance on +44 (0)1624 686400. www.isleofmanfinance.gov.im You can in the Isle of Man ឣ X CONTENTS ___________________________________________________________ Part 3: Taxation issues 103 3.1 Inheritance tax, wills and estate planning for the high-net-worth individual 105 Carole Cook, Forsters LLP Inheritance tax and when it is payable 105; Rates of tax 106; How an individual can reduce the burden of IHT on death 106; Assets that should be given away 108; Lifetime gifts to trusts 108; Tax-efficient wills 109; The family home 110; Other planning points 110; Conclusion 111 3.2 Estate and succession planning 113 Tom Hewitt, Burges Salmon LLP Introduction 113; Inheritance tax (IHT) 113; Capital gains tax (CGT) 114; The use of trusts 116; Wills 117 3.3 Taxation of UK resident non-domiciliaries 121 Patrick Harney, Forsters LLP Overview 121; The difference between residence and domicile 122; The remittance basis of taxation 122; Temporary non-residence 125; Exempt property 126; Non-domiciled settlors of overseas trusts 126; Non-domiciled beneficiaries of offshore trusts 127; Non-domiciled shareholders in overseas companies 127; US citizens 127; Planning for non-domiciliaries after April 2008 127; Conclusion 129 Part 4: Pleasurable investment 131 133 4.1 Investing in wine Nick Stephens, Interest in Wine Who we are 133; Why invest in wine?
Guy Conroy was co-founder of Oxigen Investments, and has more than six years experience in sustainable forestry investment. Guy was instrumental in the company’s formation and funding and was Managing Director until 2008. He has now become Managing Director of Oxigen Plantations (Priv) Ltd, Sri Lanka. Carole Cook is a partner at Mayfair-based solicitors Forsters LLP. Forsters is widely recognized as a leading law firm specializing in tax and trusts. Carole’s expertise includes tax and estate planning for both UK and international clients, in particular entrepreneurs, offshore and onshore trust advice and creation, will drafting and advice to charity trustees. She is a member of the Technical Committee of the Society of Trust and Estate Practitioners (STEP). John Davey studied chemical engineering at the University of Bath before commencing his career in finance. He has held various positions for wealth managers, including Andersen Charnley, and national groups establishing portfolio management services and providing due diligence on tax mitigation schemes.
How to Write Your Will: The Complete Guide to Structuring Your Will, Inheritance Tax Planning, Probate and Administering an Estate by Marlene Garsia
What this book does is point out areas of potential problems, but as readers can appreciate, it cannot cover all detail and cases as they are potentially so numerous. Legal advice in these instances is recommended. In researching this book it has become clear that, under English law, provided an estate is relatively straightforward, xxviii ■ Preface complicated trusts are not involved, and extensive estate planning is not needed, then there is nothing to stop the individual from handling his or her relation’s or friend’s affairs – whatever the size of the estate. Despite this, only a minority of people do so. Scotland is another matter. I have explained briefly the position in Scotland, dealing with small estates, the differences when writing a will and gaining Confirmation. The information given is not exhaustive since in Scotland solicitors’ help is often required by the authorities.
This book cannot help in alleviating the suffering that will be felt with the loss of a loved one – dealing with grief is a very individual matter. What it can do is to provide information about what will be needed and what matters have to be dealt with in as straightforward and uncomplicated a manner as the subject allows. It tells you what to do and why, and how to go about it. It takes a step-by-step view of the necessary procedures from writing a will to estate planning and proving a will. The first part of the book will be concerned with how to write a will. Basically you ‘make’ a will because you want to direct who receives your assets following your death. Occasionally, you may even want to ensure that certain people do not receive a share in your estate. You may have already made your will either with the help of a solicitor or on a standard proprietary will form available from most large newsagents.
How to make an addition to your will (a codicil) is also shown. Approximately one in every five persons writes their own will. In London the number is higher, one in every three, while in Scotland the figure is approximately one in every four. However, most people still go to a solicitor, not because their affairs are complex but because they do not know where to start or find the task daunting. Estate planning and inheritance tax are examined in Chapter 6. For the inexperienced and unsure this subject can be not only bewildering but frightening too. You may feel more confident arranging for a consultation with a solicitor or tax consultant before planning your will. House prices in 2008 and so far in 2009 have shown a decrease of circa 17.9 per cent. This puts house values back to 2005. However, despite spousal/civil partner transfers on death, the threshold itself has not kept pace with the rising personal wealth over the last decade.
How to Retire the Cheapskate Way by Jeff Yeager
asset allocation, car-free, employer provided health coverage, estate planning, financial independence, fixed income, Pepto Bismol, pez dispenser, rent control, ride hailing / ride sharing, risk tolerance, Ronald Reagan, Zipcar
Cheapskate Retirement Principle #19 It doesn’t cost any more to create a will and make other estate plans earlier in life rather than later. But if you wait just a minute too long, not having them in place can cost your loved ones and estate dearly. Don’t Put Off Until Tomorrow What You Might Not Be Able to Do Tomorrow Getting your final affairs in order—whether it’s creating a will or trust, or telling the people in your life what they really mean to you (for better or worse!)—isn’t likely to be one of the most enjoyable exercises of your lifetime, but it is a necessary one. It’s also one that’s best done sooner rather than later. And once it’s done, it’ll put your mind at ease and let you get on with enjoying the rest of your life and retirement. Here are some thoughts on estate planning, the cheapskate way: Wills Obviously a last will and testament is the cornerstone of any estate plan, even though roughly 60 percent of adult Americans don’t have a will of any kind, according the legal news website www.Findlaw.com.
Even for a cheapskate, it’s usually worth the few hundred dollars an attorney should charge you to draw up a will, particularly if you have a good-size estate, complicated arrangements in terms of beneficiaries, or reason to believe that someone may try to contest your will after your death. A qualified attorney (see the National Association of Estate Planners & Councils, www.naepc.org) can also provide you with other estate planning advice, which could prove extremely valuable and save you serious money in the long run. Often at least some basic estate planning advice is provided without additional charge when you hire an attorney to prepare your will. But if you have few assets and straightforward plans for your estate, then you shouldn’t rule out a simple, inexpensive do-it-yourself will. Websites like www.Legalzoom.com, www.Nolo.com, and www.LegacyWriter.com walk you through the process of preparing a will (and other estate documents), and for fees averaging $40 to $100 allow you to create a will online. The document is then printed out, signed by at least two witnesses, and notarized.
However, being a cheapskate, I’m pretty sure that if I see a blinding white light at the end of a tunnel, the first thing I’ll say when I get there is, “Do we really need to have so many lights on?” In a way, we’ve come full circle from where this book began. We’re back to the same question Bob Johnson asked me in the park that day: What do you really, really want? If anything, that question may be even more important when considering your final wishes and estate plans, because once you’re gone, there ain’t no changing your mind. Speaking of Bob Johnson, I’ll make no further drama of it. Nor will I leave you wondering: my friend and mentor Bob (formally Robert B. Johnson) died of colon cancer one sunny April morning in 1988, at the way too early age of forty-one. By that time, Bob was the executive director of the American Youth Hostels. The last communication I had with him was a message he left on the Code-A-Phone message recorder at our home, the day before he died.
Retirementology: Rethinking the American Dream in a New Economy by Gregory Brandon Salsbury
Albert Einstein, asset allocation, buy and hold, carried interest, Cass Sunstein, credit crunch, Daniel Kahneman / Amos Tversky, diversification, estate planning, financial independence, fixed income, full employment, hindsight bias, housing crisis, loss aversion, market bubble, market clearing, mass affluent, Maui Hawaii, mental accounting, mortgage debt, mortgage tax deduction, negative equity, new economy, RFID, Richard Thaler, risk tolerance, Robert Shiller, Robert Shiller, side project, Silicon Valley, Steve Jobs, the rule of 72, Yogi Berra
Yet many investors with taxable accounts fail to take full advantage of their losses in such a way. Think ahead—not just to your retirement, but also beyond. Do you know how to pass assets on to your heirs without having them incur huge tax burdens? Do you have any charities to which you’d also like to leave money? Speak to an adviser regarding tax ramifications and the taxes that will be due and payable by the recipients. Estate planning for your surviving spouse and children can be vital to their ongoing financial health, so establish a basic estate plan and standard trusts like a living trust, a credit shelter trust, and a bypass trust. Taking care of these things can make the difference between seeing millions go to your family—or to the IRS. Procrastinating—staying where you’ve been and not adjusting your portfolio—can be very expensive given the changing landscape. Many people have trouble with the basics, like filing their tax return on time every year.
Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jim Boyd Editorial Assistant: Pamela Boland Development Editor: Russ Hall Operations Manager: Gina Kanouse Senior Marketing Manager: Julie Phifer Publicity Manager: Laura Czaja Assistant Marketing Manager: Megan Colvin Cover Designer: Anne Jones Managing Editor: Kristy Hart Senior Project Editor: Lori Lyons Copy Editor: Apostrophe Editing Services Proofreader: Kay Hoskin Indexer: Erika Millen Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig © 2010 by Pearson Education, Inc. Publishing as FT Press Upper Saddle River, New Jersey 07458 This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, estate planning, tax, or other professional services or advice by publishing this book. Each individual situation is unique. Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately. The author and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the use or application of any of the contents of this book.
“Looking back on my experiences, I definitely had some unexpected curveballs thrown my way,” Liz concluded. “But when it comes to being there and helping take care of my family, there is nothing I would have done differently. Except I do think we could have saved ourselves some big headaches if we had just done more to make sure my parents and siblings were all on the same page when it came to estate planning and the family’s finances...and I wish I had forced myself to set aside a little more money for my own retirement.” Dependence on family for financial support in difficult times is nothing new, though it’s rarely discussed. That’s probably because it’s never been a great source of pride for any of the parties involved, no matter what their financial situation is. After all, sometimes that financial support is there just to keep up appearances.
5 Day Weekend: Freedom to Make Your Life and Work Rich With Purpose by Nik Halik, Garrett B. Gunderson
Airbnb, bitcoin, Buckminster Fuller, business process, clean water, collaborative consumption, cryptocurrency, delayed gratification, diversified portfolio, en.wikipedia.org, estate planning, Ethereum, fear of failure, fiat currency, financial independence, glass ceiling, Grace Hopper, Home mortgage interest deduction, Isaac Newton, litecoin, Lyft, market fundamentalism, microcredit, minimum viable product, mortgage debt, mortgage tax deduction, Nelson Mandela, passive income, peer-to-peer, peer-to-peer rental, Ponzi scheme, quantitative easing, Ralph Waldo Emerson, ride hailing / ride sharing, sharing economy, side project, Skype, TaskRabbit, traveling salesman, uber lyft
Rather, consider how much income that lump sum can produce over your family’s life. You’ll never find a widower or widow who felt like he or she had too much coverage. Do you understand the different types of insurance and is your policy right for you? Do you have the proper beneficiary assignment with your policy? Estate Planning Estate planning determines what happens to your assets when you pass away. But equally important is the perpetuation of your values, philosophy, vision, and contribution. A proper estate plan maximizes your legacy — both financial and personal. Do you have a properly documented will? Do you have a properly executed trust? Do you have a Power of Attorney set up in case you are incapacitated and cannot make decisions? Does your plan account for transferring human life value assets (values, philosophy, and contribution)?
They understand that there are unexpected financial surprises and issues that put their assets at risk. Protective expenses include your liquid savings, which should be enough to cover a minimum of six months’ expenses. These savings won’t be overly productive in terms of earning interest, but they will be there to protect you and prevent you from worrying about money every second. Other protective expenses include estate planning, corporate structure planning, life insurance, disability insurance, medical insurance, auto insurance, and emergency preparedness. 3. Productive Expenses Productive expenses allow you to build assets, expand your cash flow, and grow your business. This could include purchasing a tax lien or rental property. If you own a business, it might be hiring a great employee. It could be an expense such as education, whereby new opportunities are opened for you.
Harv Elder, Larry email, and productivity rituals emergency preparedness, as protective expense Emerson, Ralph Waldo emotional attachment, and Momentum investments and real estate investments emotional energy energy, amplifying entertainment, as tax deduction entrepreneurship, and academic systems and active income analyzing income opportunities and cash flow and continuous improvement direct sales/network marketing opportunities domain trading opportunities e-commerce opportunities and embracing failure and experimentation fix and flip opportunities and freedom and Growth investments and hiring employees and income growth lack of resources for and letting go and leverage online opportunities and opportunities presented by technology and passion and perfectionism personal service opportunities and quick adjustments to feedback and quitting your job and risk and scalability of businesses and self-employment sharing economy opportunities starting small and strong mindset three levels of and value creation equity growth, and real estate investments estate planning, as protective expense Ethereum Evans, Richard Paul excellence, replacing perfectionism with exercise, and energy amplification exit strategies, for Growth investments for real estate investments expense ratios expenses, and Active Income Ratio cutting and Passive Income Ratio experimentation F Facebook failure, and productivity fear, and building your inner circle and economic cycles and entrepreneurship and opportunity and procrastination and purpose and real estate investments and the Rockefeller Formula and security and strengthening your mindset of taxes federal government assistance, and loans for real estate investments Federal Housing Administration (FHA) feelings of entrapment, and weekend/workweek structure financial capital, and entrepreneurship financial independence, and Passive Income Ratio financial wealth, and Passive Income Ratio 5 Day Weekend, changing your mindset toward work contract for creating a vision for free-time activities five steps of importance of following correct sequence and “mailbox money” myth manifesto and passive vs. active income streams and security vs. freedom and thinking outside the box universal availability of weekend/workweek paradigm 5DayWeekend.com, and Passport codes 5-Second Rule, for impulse buying Fiverr.com fix and flip opportunities fix-up costs, for real estate investments Fon Ford, Henry foreclosure, and tax lien certificates Forleo, Marie foundation step (keep more money) Francis of Assisi (saint) Frank, Ben Frank, Joyce Franklin, Benjamin fraud, and cryptocurrencies freedom, and active vs. passive income creation and boredom and entrepreneurship and generosity and learning when to say no and lifestyle and peace and perfectionism and purpose sacrificing for security and simplicity Freedom Lifestyle freelancing, as entrepreneurial opportunity frequency of work requirements, business ownership (not managing) business ownership (working and managing) royalties and overrides sales subscriptions wage or salary employment Frost, Robert fulfillment, and purpose Fuller, Buckminster G Gardner, Chris generosity Gerber, Michael Gibbs, Marshall goal setting, and Passive Income Ratio and purpose Godin, Seth gold, as Momentum investment opportunity Golightly, Craig Google government social welfare programs, and retirement Grameen Bank gratitude Graybiel, Ann Gretzky, Wayne Groupon Growth investments, and active vs. passive income streams aggressive and conservative strategies for Bank Strategy and cash flow description of and economic cycles for funding Momentum investments minimum criteria for opportunities for Sharelord Strategy storage units tax lien certificates Guitar Institute of Technology (GIT) Gunderson, Garrett H habits, fortifying Halik, Nik happiness, and generosity and materialism hard money lenders, and loans for real estate investments health, and habits health savings accounts (HSA) “HELL YEAH” philosophy Hendrix, Jimi Herodotus Hicks, Bill hidden fees Hill, Napoleon hiring employees hiring your children, as tax deduction hobbies Holland, Danny home expenses, as tax deduction home office deductions homeowner’s insurance Hopper, Grace Hori, Jim hugedomains.com Hulu HyreCar.com I Idea Optimizer impulse buying income, and Active Income Ratio increasing with entrepreneurship and Passive Income Ratio See also cash flow income growth step (make more money) Income Opportunity Score Sheet incorporation Industrial Revolution, vs.
How to Form Your Own California Corporation by Anthony Mancuso
The assets of the business normally pass under the terms of the deceased owner’s will or trust, or by intestate succession (under the state’s inheri tance statutes) if there is no formal estate plan. warning Don’t let business assets get stuck in probate. The court process necessary to probate a will can take more than a year. In the meantime, it may be difficult for the inheritors to operate or sell the business or its assets. Often, the best way to avoid having a probate court involved in business operations is for the owner to transfer the assets of the business into a living trust during his or her lifetime; this permits business assets to be transferred to inheritors promptly on the death of the business owner, free of probate. For detailed information on estate planning, including whether or not it makes sense to create a living trust, see Plan Your Estate, by Denis Clifford and Cora Jordan (Nolo).
It is also common, but not legally necessary in California, to add the words “with right of survivorship” (for example, “Carolyn Kimura and Sally Sullivan, as joint tenants with right of survivorship”). tip As an estate planning measure, consider using a living trust. This allows the beneficiary of the trust to receive title to the shares upon the death of the shareholder, without the necessity of probate. Some shareholders may wish to transfer their shares to this type of trust for the benefit of another person rather than taking title to their shares in joint tenancy with the other person (married shareholders may also wish to transfer shares held as community property to this type of trust). If you do transfer your shares to a trust, you will need to make out new share certificates showing the trust as the owner of the transferred shares. For more details on this and other estate planning techniques, see Plan Your Estate, by Denis Clifford and Cora Jordan (Nolo).
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The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas Stanley, William Danko
♦ What would be the ideal occupations for our sons and daughters? There are about 3.5 millionaire households like ours. Our numbers are growing much faster than the general population. Our kids should consider providing affluent people with some valuable service. Overall, our most trusted financial advisors are our accountants. Our attorneys are also very important. So we recommend accounting and law to our children. Tax advisors and estate-planning experts will be in big demand over the next fifteen years. ♦ I am a tightwad. That’s one of the main reasons I completed a long questionnaire for a crispy $1 bill. Why else would I spend two or three hours being personally interviewed by these authors? They paid me $100, $200, or $250. Oh, they made me another offer—to donate in my name the money I earned for my interview to my favorite charity.
The parents of Type B housewives often subsidize their daughters’ household income in order to help their daughter’s family maintain a minimum middle-class lifestyle. Type B housewives tend to live in close proximity to their parents. They often accompany their mothers on shopping trips. It’s not unusual for middle-aged Type B housewives to receive clothing allowances from their affluent mothers and fathers. Parents also care for their Type B daughters via provisions in wills/estate plans. They are provided with cash gifts and inheritance because their parents believe they “really need the money.” In essence, Type Bs are cared for by their parents instead of the other way around. The parents of Type B housewives tend to hold back from distributing substantial cash gifts to their daughters out of fear that their daughters and their husbands may be poor money managers. Thus, cash gifts for Type B housewives tend to be on a need basis, such as when Type B’s husband is “between jobs” or when there is a birth in the family.
Ward’s category have relatives and/or close friends who advise them about wills, trusts, estates, and gift giving. In fact, all things being equal, estates in which the heirs, typically the sons and daughters, are professional estate attorneys tend to be taxed less. Sons and daughters who are attorneys act as formal and informal legal advisors and opinion leaders for their affluent parents. They have a significant influence over all aspects of estate plans, including the choice of the estate attorney, provisions in wills, the ultimate disposition of family assets, the choice of executor(s), the use of trust services, and the incidence and size of the financial gifts to be given to children and grandchildren. “Attorney relatives” typically advise their affluent parents on how to minimize estate taxes via annual gift giving to the children and grandchildren.
The Power of Passive Investing: More Wealth With Less Work by Richard A. Ferri
asset allocation, backtesting, Bernie Madoff, buy and hold, capital asset pricing model, cognitive dissonance, correlation coefficient, Daniel Kahneman / Amos Tversky, diversification, diversified portfolio, endowment effect, estate planning, Eugene Fama: efficient market hypothesis, fixed income, implied volatility, index fund, intangible asset, Long Term Capital Management, money market fund, passive investing, Paul Samuelson, Ponzi scheme, prediction markets, random walk, Richard Thaler, risk tolerance, risk-adjusted returns, risk/return, Sharpe ratio, survivorship bias, too big to fail, transaction costs, Vanguard fund, yield curve, zero-sum game
These include individual investors and their families, trustees of charities and private accounts, pension trustees and those who select investment options for employer sponsored pension plans, and professional investment advisors. Each of these four groups has special reasons why implementing a passive investment strategy is better for them. Individual investors should select a strategy that has the highest probability of reaching their retirement and estate planning goals. There is no reason to believe that an individual investor will find a top money manager who will outperform the markets. That’s why it’s undoubtedly in the best interest of an individual to create and maintain a portfolio of index funds and ETFs for the long run. Substantial time is spent explaining why passive investing is a prudent choice for trustees who have a legal responsibility to act in the best interest of the accounts they oversee.
When a new asset class is added to the portfolio, or an asset class is eliminated, the composite index should also be adjusted as of the change date. Policy Changes Changing an investment policy is a major decision. Any change requires deep thinking and an evenhanded judgment and should not be made in a time of duress. There are several good reasons to change an investment policy. The following are four prominent reasons. 1. The account owner’s financial needs change. 2. Estate planning considerations change. 3. A bull market puts a portfolio close to its financial goal. 4. A bear market exposes more risk than an investor can handle. Financial needs change for all of us during life’s journey. There are periods when cash flow needs are high and periods when cash flow needs are low. In addition, unexpected things happen in our life (both good and bad) that may affect our need for cash.
This is the value of potential earnings power over one’s lifetime. The next step is generally the purchase of a home, which often coincides with starting a family and all the costs associated with raising children. Sometime during middle age, focus shifts to securing adequate retirement income. During retirement, focus can shift again to a policy of giving. This is the distribution of wealth to family members and loved ones as well as favored charities. Estate planning takes care of the rest upon our demise. Accordingly, an investment policy review during different stages of life ensures that it is up to date with these changing priorities. Estimating Future Obligations We all have a limited time on Earth, and the government is kind enough to tell us about how much time that is. The Internal Revenue Service (IRS) publishes mortality tables for singles and married couples.1 The IRS table currently shows that a 21-year-old should expect to live another 62 years until age 83.
Humans Need Not Apply: A Guide to Wealth and Work in the Age of Artificial Intelligence by Jerry Kaplan
Affordable Care Act / Obamacare, Amazon Web Services, asset allocation, autonomous vehicles, bank run, bitcoin, Bob Noyce, Brian Krebs, business cycle, buy low sell high, Capital in the Twenty-First Century by Thomas Piketty, combinatorial explosion, computer vision, corporate governance, crowdsourcing, en.wikipedia.org, Erik Brynjolfsson, estate planning, Flash crash, Gini coefficient, Goldman Sachs: Vampire Squid, haute couture, hiring and firing, income inequality, index card, industrial robot, information asymmetry, invention of agriculture, Jaron Lanier, Jeff Bezos, job automation, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Loebner Prize, Mark Zuckerberg, mortgage debt, natural language processing, Own Your Own Home, pattern recognition, Satoshi Nakamoto, school choice, Schrödinger's Cat, Second Machine Age, self-driving car, sentiment analysis, Silicon Valley, Silicon Valley startup, Skype, software as a service, The Chicago School, The Future of Employment, Turing test, Watson beat the top human players on Jeopardy!, winner-take-all economy, women in the workforce, working poor, Works Progress Administration
Common commercial contracts, from leases to loans to licenses to incorporation papers to purchase agreements, are well structured enough to allow a first draft, if not a final one, to be written by a computer program. Consider the legal-tech startup FairDocument.33 By focusing on estate planning, a well-defined and fairly routine area of law, the company is able to “interview” clients on its website and prepare initial draft documents. Potential clients answer some initial questions, then attorneys bid to get their business. Most of the time, if the case is relatively straightforward, attorneys opt for the standard recommended bid of $995 for an estate plan prepared through Fair-Document, for a service that might otherwise typically cost $3,500 to $5,000. You might think this simply reduces the lawyer’s pay, but attorneys still come out ahead because of what happens next.
Instead of conducting the usual phone or in-person interview to educate the new client and collect the needed information, then spending several hours drafting documents, the attorneys let FairDocument walk the client through a lengthy, structured online consultation, explaining the required concepts and collecting the client’s particulars. The software then delivers an initial draft to the lawyer, calling out areas that are likely to require his or her additional judgment or attention. Jason Brewster, the company’s CEO, estimates that FairDocument reduces the time required to complete a straightforward estate plan from several hours to as little as fifteen to thirty minutes, not to mention that his company is doing the prospecting for new clients and delivering them to the attorneys. A more sophisticated example of synthetic intellects encroaching on legal expertise is the startup Judicata.34 The company uses machine learning and natural language processing techniques to convert ordinary text—such as legal principles or specific cases— into structured information that can be used for finding relevant case law.
., 114 Egypt, ancient, 115–16 elderly people, 168–69 electrical engineering, 41–42 electricity, 41, 46, 47 electromagnetic radiation, 41 electronic domain, 40, 41–45, 46, 62, 203 human competition with, 73–75 stock transactions moved to, 52 surveillance by, 9, 64–75. See also computers Ellison, Larry, 115 emissions trading (cap and trade), 168 empathy, 81, 82 employees. See labor market; workplace Energy Star program, 178 entrepreneurship, 44, 95–96, 200, 223–24n15 environmental protection, 168, 195 Environmental Protection Agency, 168, 178 equal opportunity, 170 estate planning, 146–47, 175 ethics, 9–10, 74–75, 79, 81–82, 87. See also moral agency European Union, 143 Experience Music Project Museum (Seattle), 114 expertise, 22–23, 29 expert systems (computer programs), 23 Facebook, 48 face-recognition capability, 40 Fairchild Semiconductor, 223–24n15 FairDocument, 146–47 Fair Labor Standards Act (1917), 171 fairness, 74–75, 102, 162–63 families. See households farmworkers: forged laborer replacement of, 39, 133–34, 143–44 historical average income of, 164, 222n3 Federal Communications Commission (FCC), 45 federal government.
All About Asset Allocation, Second Edition by Richard Ferri
activist fund / activist shareholder / activist investor, asset allocation, asset-backed security, barriers to entry, Bernie Madoff, buy and hold, capital controls, commoditize, commodity trading advisor, correlation coefficient, Daniel Kahneman / Amos Tversky, diversification, diversified portfolio, equity premium, estate planning, financial independence, fixed income, full employment, high net worth, Home mortgage interest deduction, implied volatility, index fund, intangible asset, Long Term Capital Management, Mason jar, money market fund, mortgage tax deduction, passive income, pattern recognition, random walk, Richard Thaler, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, Robert Shiller, selection bias, Sharpe ratio, stocks for the long run, survivorship bias, too big to fail, transaction costs, Vanguard fund, yield curve
That may occur while you are still alive, and it will definitely occur after you’re gone. It is a common for mature retirees to do detailed estate planning. One of the decisions to make is who will manage their affairs when they are no longer able too. This chore is normally taken over by the healthy spouse while both husband and wife are still living. When there is only one person, the job is typically taken on by a son or daughter, a relative, or a professional representative. I highly recommend that if you choose a son or daughter to handle your finances, you give them fair warning far in advance. Once a helper has been chosen, that person will need to become informed of your financial situation. This includes an understanding of your estate plan, your investment accounts, and your insurance documents, including knowing where all these things are located in your home.
This stage spans a group of people who are getting ready to retire, transitioning into retirement, and living an active lifestyle in retirement. The stage typically covers people ranging from age 60 to 79. Mature retirees. These fully retired investors are not as active as they used to be usually because of their own health concerns or those of a spouse. The needs for mature Building Your Portfolio 245 retirees are different from the needs of any other group. Their needs range from health planning, to long-term care, to estate planning. At this stage, financial matters are often discussed with children, other family members, or a professional trustee. Investors in all stages have some similar financial goals and similar concerns. Similar goals include a desire for financial security and the desire to pay less income tax. Similar concerns include the fear of running out of money and the fear of not having adequate health-care coverage when it is needed.
Utkus, Lessons from Behavioral Finance for Retirement Plan Design, Wharton School and Vanguard Center for Retirement Research, November 24, 2003. This page intentionally left blank CHAPTER 14 When to Change Your Asset Allocation KEY CONCEPTS ● ● ● ● Asset allocation decisions are typically not permanent. Life changes lead to asset allocation changes. Too much risk in a portfolio should be managed downward. Estate planning needs eventually set asset allocation. Asset allocation changes can take two forms. The first is based on changing needs, and the second is the result of an assessment mistake. Asset allocation changes based on changing needs should be done only after careful consideration. Adjustments are needed as we go through life with the intent to balance our assets to our changing long-term liabilities.
J.K. Lasser's New Tax Law Simplified: Tax Relief From the HIRE Act, Health Care Reform, and More by Barbara Weltman
P1: OTA/XYZ P2: ABC c08 JWBT413/Weltman October 13, 2010 20:7 Printer Name: Yet to Come CHAPTER 8 Estate, Gift, and Generation-Skipping Transfer Taxes hile much of the focus of this book has been on income taxes (with a little attention given to Social Security and Medicare taxes), don’t ignore the other taxes that may affect your financial picture. These include estate, gift, and generation-skipping transfer taxes. In 2010, there were dramatic changes affecting each of these taxes, which are levied on transferring wealth. This chapter explains the changes in these transfer taxes for 2010 and what may lie ahead. This area of tax law is about to experience additional changes that certainly will affect your estate planning for years to come. There also may be state estate or inheritance taxes to deal with; state-level taxes are not covered in this chapter but should be discussed with your financial advisor. W Estate Tax Changes If your property (called your “estate”) at the time of your death is worth a certain amount, your estate usually has to file a federal estate tax return and your estate may owe federal estate taxes on the value of your assets.
., an insurance settlement, lottery winnings, or an inheritance), you may find yourself vulnerable to the federal estate tax. Or if the value of your assets rises (e.g., the stock market recovers and the value of your stocks and stock mutual funds held both personally and in retirement accounts increases), again you may find that the size of your estate is large enough to fall victim to estate tax—or at least the need to plan to minimize or avoid it. Until now, a common estate-planning strategy for married couples with sufficient assets to be subject to the federal estate tax was to set up a credit shelter or by-pass trust so that the exemption amount could be fully used in the estate of the first spouse to die. It worked like this: A will provided that a credit shelter trust (also called a by-pass trust) would be created with an amount equal to the maximum exemption amount.
For example, if your estate is $3.7 million and the exemption amount is fixed at $3.5 million for the year in which you die, the credit shelter trust based on the maximum exemption amount ($3.5 million) would absorb almost your entire estate—this may be more than you’d envisioned. Discuss with your tax or legal advisor new ways to limit the amount of assets passing into a credit shelter or by-pass trust. For example, you may wish to limit the funding of a credit shelter trust to a set dollar amount or a percentage of the estate, or some combination of these two limits. Most important, you’ll want to review any current estate plans in light of estate tax changes that may be enacted for 2011 and future years. Miscellaneous Estate Tax Changes There are a number of changes that can affect the computation of the federal estate tax. Some of these changes are minor or merely technical in nature, but others can have a significant impact on the amount of taxes that will be paid by an estate. Special Use Valuation If an estate includes a farm or property used in a business, it can be valued for estate tax purposes at its special use rather than at its highest and best use (assuming certain conditions are met).
The New Elite: Inside the Minds of the Truly Wealthy by Dr. Jim Taylor
British Empire, business cycle, call centre, dark matter, Donald Trump, estate planning, full employment, glass ceiling, income inequality, Jeff Bezos, longitudinal study, Louis Pasteur, Maui Hawaii, McMansion, means of production, passive income, performance metric, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ronald Reagan, stealth mode startup, Steve Jobs, Thorstein Veblen, trickle-down economics, women in the workforce, zero-sum game
But in many respects, wealth brings with it new challenges, new complexities, and new risks, and the do-it-yourself approach that has served them well often becomes a disservice. Four in ten acknowledge that they are not as on top of their ﬁnances as they should be. In fact, about half get no professional wealth management advice, relying only on themselves, friends, spouses, and other relatives. This causes problems in areas as basic as estate planning. Over a quarter don’t have an updated will, and they question whether there will be a smooth transition after their death. Nearly one in ﬁve expects serious conﬂict among their relatives after their passing. And consider risk management. Threefourths know that there are property insurance companies that specialize in the challenges faced by wealthy households. Yet only onefourth have made a conscious decision to change to an insurance provider with appropriate expertise.
Professionally, they are least likely to have a solid exit or succession plan for their business. On a personal level, three-quarters feel they are not as in control of their ﬁnances as they would like to be—by far the highest of any segment. Many struggle with the fear that they could lose all their money and have to start rebuilding their lives all over again, despite their average of nearly $20 million in assets. Less than one in four feels he or she has an organized estate plan and many believe that the distribution of their assets will be a major source of family turmoil and conﬂict after their death. Virtually none of their kids have a good understanding of the value of their Flavors of Wealth 135 estate. Heck, forget the kids—over half of wrestlers haven’t told their spouses of the degree or nature of their ﬁnancial empire! On average, wrestlers aren’t miserably unhappy; 88 percent describe themselves as ‘‘very happy,’’ although this is the lowest of any of the ﬁve segments.
In a retail context, they don’t look for an exclusive or luxurious sales environment, nor do they want to be made to feel like they are the most important customer in the store. Instead, they want sales staff who are knowledgeable, are down to earth, and treat them like ‘‘any other person off the street.’’ Mavericks are living in the moment, and are inherently selffocused; as a result, they tend to be less worried about the legacy of their money. In a sense, their estate plans are more often in their minds than on paper. While they are relatively likely to say they envision passing their companies to their children, they are among the least likely to have actually communicated any kind of plan for what would happen in the event of their injury or death. They are so psychologically entwined with their businesses and their ambitions they often ﬁnd it difﬁcult to think in concrete terms about any kind of exit or succession plan.
Work Optional: Retire Early the Non-Penny-Pinching Way by Tanja Hester
"side hustle", Affordable Care Act / Obamacare, Airbnb, anti-work, asset allocation, barriers to entry, buy and hold, crowdsourcing, diversification, estate planning, financial independence, full employment, gig economy, hedonic treadmill, high net worth, index fund, labor-force participation, longitudinal study, medical bankruptcy, mortgage debt, obamacare, passive income, post-work, remote working, rent control, ride hailing / ride sharing, risk tolerance, stocks for the long run, Vanguard fund
In hindsight, we wish we had planned to save that much, but either way, it’s comforting that, just as we wouldn’t want to have to be forced to stay at a job we disliked just for the money, we won’t ever feel forced to stay together because of it. It might sound deeply unromantic to think that way, but I think it’s the exact opposite. Knowing that we’re together 100% by choice and that money plays no part in keeping us together—not even a little bit—is extra romantic and relationship affirming. Create Your Estate Plan If you have a partner, children, or anyone else you want to be sure has clear access to your assets after you’re gone, then you’ll want to be sure to have a strong estate plan in place as soon as possible. Depending on the laws in your state, it may not always be clear that your spouse gets automatic access to your accounts, especially if you have children from a prior marriage or other circumstances that create legal confusion. At a minimum, make sure you have a will and a durable power of attorney in place to make your wishes clear, and consider adding an advanced health care directive to simplify health care decision-making on your behalf.
You can create all of these documents yourself using reputable and affordable online services like Nolo or LegalZoom. If you wish to engage an estate attorney, keep an eye out for unnecessary add-ons that they may try to push. Financial experts say you do not need a revocable living trust in most circumstances, and an estate attorney who insists that you do is just trying to pad your bill. Find another attorney to work with. Estate planning is also important if leaving behind a charitable legacy is important to you, even if you do not have heirs. Write your will to specify how you’d like your assets divided when you pass on, and update the beneficiaries on all of your financial and insurance accounts to reflect whom you’d like to receive the funds. Learn the Rules to Reduce Health Care Costs When Necessary With health care costs rising faster than inflation and ongoing political debates about health care raging, there’s a lot of uncertainty out there around health insurance, but if you learn the rules of the current system, you’ll always be able to minimize your health care costs if you are in a bind financially.
When that happens, you want to know about it. BULLETPROOF PLANNING CHECKLIST Determine your asset allocation for both long-term growth and risk management. Decide which withdrawal strategy you’ll use. Create your bare-bones budget and determine how you’ll cut expenses if you need to. Determine what your sources of backup capital will be. Make sure you have adequate insurance for your circumstances. Create your estate plan. If you have a partner, discuss how you’ll handle divorce or splitting up. Determine how you could optimize your income to reduce health care costs, if needed. Stay current on financial analysis impacting retirement account, withdrawal strategy, etc. PART III THRIVING IN YOUR WORK-OPTIONAL LIFE Fast-forward to the moment when you can say you’ve done it. You’ve achieved your version of early retirement, whatever that looks like to you, and you’re ready to embark on your new work-optional life.
DIY Investor: How to Take Control of Your Investments & Plan for a Financially Secure Future by Andy Bell
asset allocation, bank run, buy and hold, collapse of Lehman Brothers, credit crunch, diversification, diversified portfolio, estate planning, eurozone crisis, fixed income, high net worth, hiring and firing, Isaac Newton, Kickstarter, lateral thinking, money market fund, Northern Rock, passive investing, place-making, quantitative easing, selection bias, short selling, South Sea Bubble, technology bubble, transaction costs, Vanguard fund
There are also no capital requirements for companies and they come with tax breaks for investors. This is why, in recent years, considerably more small companies have moved from a listing on the main LSE index to an AIM listing. Many stocks listed on AIM are overseas companies. Tax breaks for AIM shares A large number of shares held on AIM become exempt from inheritance tax once they have been held for two years, making them a potential estate-planning tool, although the downside is that the volatility associated with them makes them generally less suitable for investors approaching the end of their life. From 6 April 2014, AIM shares are exempt from stamp duty when they are purchased. Investing in AIM companies AIM companies are all about growth – not dividends – and liquidity is even more of an issue in AIM than it is in the FTSE SmallCap.
Onshore and offshore life insurance investment bonds Life insurance investment bonds are complex tools for tax deferral and are normally only used by individuals who are receiving professional financial advice – hence I have not covered them in any detail in this book. Onshore bonds are less attractive than they used to be years ago because returns are subject to a minimum tax of between 16 and 20 per cent, irrespective of your tax status. They can be of use to higher rate taxpayers wanting to defer paying tax until a time in the future when they pay tax at a lower rate – for example, in retirement. Offshore investment bonds can be useful estate planning tools in the event you have large sums of money to give away without attracting an inheritance tax liability, but these too need specialist advice. chapter 17 * * * When it all goes wrong – death, divorce, bankruptcy, complaints and the Financial Services Compensation Scheme Nobody likes to dwell on life’s negatives, but it is worth knowing what will happen to your money when significant personal events such as death, divorce or bankruptcy come along, or when an investment or investment provider goes bust.
chapter 17 * * * When it all goes wrong – death, divorce, bankruptcy, complaints and the Financial Services Compensation Scheme Nobody likes to dwell on life’s negatives, but it is worth knowing what will happen to your money when significant personal events such as death, divorce or bankruptcy come along, or when an investment or investment provider goes bust. Death and taxes Benjamin Franklin’s famous quote about death and taxes being the only things certain in life serves to underline just how important inheritance tax planning can be for your loved ones. This is a book about DIY investing, not about estate planning, so I am going to go no further than explain what happens to the various assets a DIY investor may have built up in the event of their death. In a nutshell, I would urge you to seek some professional advice and write a will. Intestacy laws do not always lead to the outcomes that you might expect, and society is full of people who have not benefited from their deceased loved one’s estate in the way they had hoped they would, often causing years of resentment and hardship for those affected.
Be Your Own Financial Adviser: The Comprehensive Guide to Wealth and Financial Planning by Jonquil Lowe
AltaVista, asset allocation, banking crisis, BRICs, buy and hold, correlation coefficient, cross-subsidies, diversification, diversified portfolio, estate planning, fixed income, high net worth, money market fund, mortgage debt, mortgage tax deduction, negative equity, offshore financial centre, Own Your Own Home, passive investing, place-making, Right to Buy, risk/return, short selling, zero-coupon bond
What to expect from an adviser Understanding what an adviser will do and the nature of the advice they can give will help you to prepare in advance and get the best from an adviser, whether you use one for just part of your financial planning or the whole process. There are different types of adviser specialising in different areas of advice. You have already seen how debt advisers can help (in Chapter 1). This chapter considers overall financial planning and generic advice, insurance M02_LOWE7798_01_SE_C02.indd 38 05/03/2010 09:50 2 n Do you need an adviser? 39 and mortgage advice, equity release, various types of investment advice, and estate planning and tax advice. A quick overview of who to consult is given in Table 2.1. Table 2.1 Types of advice For advice/to find an adviser (see Appendix B for contact details) Debt (Chapter 1) Debt adviser/ money adviser Citizens Advice Consumer Credit Counselling Service National Debtline Payplan Community Legal Advice Money Advice Scotland Advice NI Overall financial planning (all chapters) Independent financial adviser IFA Promotion Institute of Financial Planning Personal Finance Society Generic financial advice (all chapters) Money guidance service Moneymadeclear Insurance (Chapters 3 to 5) Insurance broker Independent financial adviser Insurance providers British Insurance Brokers Association IFA Promotion Institute of Financial Planning Personal Finance Society Mortgage (Chapter 6) Mortgage broker Mortgage providers IFA Promotion Equity release Independent financial adviser Equity release providers IFA Promotion Institute of Financial Planning Personal Finance Society Safe Home Income Plans (SHIP) M02_LOWE7798_01_SE_C02.indd 39 Area of financial Type of adviser planning (where to find information in this book) 05/03/2010 14:27 40 Part 1 n Planning and advice Table 2.1 Types of advice continued Type of adviser Area of financial planning (where to find information in this book) For advice/to find an adviser (see Appendix B for contact details) Government The Pension Service State pensions (Chapters 7 and 8) Independent advice The Pensions Advisory organisation Service Occupational pensions Pension scheme (Chapters 7 and 8) trustees/pensions administrator Independent advice organisation Independent financial adviser Pension scheme trustees Your HR department at work The Pensions Advisory Service IFA Promotion Institute of Financial Planning Personal Finance Society Personal pensions Independent financial adviser IFA Promotion (Chapters 7 and 8) Independent advice Institute of Financial Planning organisation Personal Finance Society Personal pension providers The Pensions Advisory Service Pension transfers Independent IFA Promotion financial adviser Institute of Financial Planning Consulting actuary Personal Finance Society Association of Consulting Actuaries Society of Pension Consultants Stock-market investments Stockbroker London Stock Exchange (e.g. shares and bonds) Association of Private Client (Chapters 9 and 10) Investment Managers and Stockbrokers (APCIMS) Independent Other investments (Chapters 9 and 10) financial adviser Investment providers M02_LOWE7798_01_SE_C02.indd 40 IFA Promotion Institute of Financial Planning Personal Finance Society 05/03/2010 09:50 2 n Do you need an adviser?
Table 2.1 Types of advice For advice/to find an adviser (see Appendix B for contact details) Debt (Chapter 1) Debt adviser/ money adviser Citizens Advice Consumer Credit Counselling Service National Debtline Payplan Community Legal Advice Money Advice Scotland Advice NI Overall financial planning (all chapters) Independent financial adviser IFA Promotion Institute of Financial Planning Personal Finance Society Generic financial advice (all chapters) Money guidance service Moneymadeclear Insurance (Chapters 3 to 5) Insurance broker Independent financial adviser Insurance providers British Insurance Brokers Association IFA Promotion Institute of Financial Planning Personal Finance Society Mortgage (Chapter 6) Mortgage broker Mortgage providers IFA Promotion Equity release Independent financial adviser Equity release providers IFA Promotion Institute of Financial Planning Personal Finance Society Safe Home Income Plans (SHIP) M02_LOWE7798_01_SE_C02.indd 39 Area of financial Type of adviser planning (where to find information in this book) 05/03/2010 14:27 40 Part 1 n Planning and advice Table 2.1 Types of advice continued Type of adviser Area of financial planning (where to find information in this book) For advice/to find an adviser (see Appendix B for contact details) Government The Pension Service State pensions (Chapters 7 and 8) Independent advice The Pensions Advisory organisation Service Occupational pensions Pension scheme (Chapters 7 and 8) trustees/pensions administrator Independent advice organisation Independent financial adviser Pension scheme trustees Your HR department at work The Pensions Advisory Service IFA Promotion Institute of Financial Planning Personal Finance Society Personal pensions Independent financial adviser IFA Promotion (Chapters 7 and 8) Independent advice Institute of Financial Planning organisation Personal Finance Society Personal pension providers The Pensions Advisory Service Pension transfers Independent IFA Promotion financial adviser Institute of Financial Planning Consulting actuary Personal Finance Society Association of Consulting Actuaries Society of Pension Consultants Stock-market investments Stockbroker London Stock Exchange (e.g. shares and bonds) Association of Private Client (Chapters 9 and 10) Investment Managers and Stockbrokers (APCIMS) Independent Other investments (Chapters 9 and 10) financial adviser Investment providers M02_LOWE7798_01_SE_C02.indd 40 IFA Promotion Institute of Financial Planning Personal Finance Society 05/03/2010 09:50 2 n Do you need an adviser? 41 Table 2.1 Types of advice continued Type of adviser Area of financial planning (where to find information in this book) For advice/to find an adviser (see Appendix B for contact details) Tax adviser Chartered Institute of Estate planning (Chapter 11) Independent financial adviser Taxation Society of Trust and Estate Practitioners IFA Promotion Institute of Financial Planning Personal Finance Society Tax Tax advisers Chartered Institute of (all chapters Independent Taxation and Appendix A) advice organisation Accountants Tax Aid Tax Help for Older People State benefits Government (all chapters Money advisers and Appendix A) Jobcentre Plus The Pension Service Citizens Advice Community Legal Advice Money Advice Scotland Overall financial planning Independent financial advisers (IFAs) can either help you with specific aspects of financial planning (as described below) or take a holistic approach that aims to sort out all aspects of your finances in an integrated way, often developing a life-long relationship with you in much the same way as you might choose one firm to act as your family solicitor.
However, the capital guarantee held only as long as the stock market did not fall by more that a set amount. In some cases, advisers did not draw this adequately to their customers’ attention. When the stock market fell over the period 2000 to 2003, many of these bonds matured with a loss. Around £159 million was paid out in compensation to customers, three large providers were fined and an IFA banned from trading.11 Estate planning and tax advice Tax advice is not regulated by the FSA or by any other statutory regulator. In fact, anyone can set themselves up and call themselves a tax adviser. But many advisers belong to professional bodies that require their members to have qualifications, keep their knowledge up to date through continuous professional development and to behave ethically and professionally in their dealings with clients.
Work Less, Live More: The Way to Semi-Retirement by Robert Clyatt
asset allocation, backtesting, buy and hold, delayed gratification, diversification, diversified portfolio, employer provided health coverage, estate planning, Eugene Fama: efficient market hypothesis, financial independence, fixed income, future of work, index arbitrage, index fund, lateral thinking, Mahatma Gandhi, McMansion, merger arbitrage, money market fund, mortgage tax deduction, passive income, rising living standards, risk/return, Silicon Valley, Thorstein Veblen, transaction costs, unpaid internship, upwardly mobile, Vanguard fund, working poor, zero-sum game
. $29.99 PICL Nolo’s Encyclopedia of Everyday Law............................................................................................... $29.99 EVL Nolo’s Guide to California Law......................................................................................................... $24.99 CLAW ESTATE PLANNING & PROBATE 8 Ways to Avoid Probate ................................................................................................................. $19.99 PRAV Estate Planning Basics . ................................................................................................................... $21.99 ESPN The Executor’s Guide: Settling a Loved One’s Estate or Trust........................................................... $34.99 EXEC How to Probate an Estate in California............................................................................................. $49.99 PAE Make Your Own Living Trust (Book w/CD-ROM)........................................................................... $39.99 LITR Nolo’s Simple Will Book (Book w/CD-ROM).................................................................................. $36.99 SWIL Plan Your Estate............................................................................................................................... $44.99 NEST Quick & Legal Will Book (Book w/CD-ROM) ................................................................................ $19.99 QUIC Special Needs Trust: Protect Your Child’s Financial Future (Book w/CD-ROM)............................... $34.99 SPNT ORDER 24 HOURS A DAY @ www.nolo.com call 800-728-3555 • Mail or fax the order form in this book Price Code FAMILY MATTERS Always Dad...................................................................................................................................... $16.99 DIFA Building a Parenting Agreement That Works.................................................................................. $24.99 CUST The Complete IEP Guide................................................................................................................. $34.99 IEP Divorce & Money: How to Make the Best Financial Decisions During Divorce................................. $34.99 DIMO Divorce Without Court.................................................................................................................... $29.99 DWCT Do Your Own California Adoption: Nolo’s Guide for Stepparents & Domestic Partners (Book w/CD-ROM)....................................................................................................................... $34.99 ADOP Every Dog’s Legal Guide: A Must-Have for Your Owner.................................................................. $19.99 DOG Get a Life: You Don’t Need a Million to Retire Well........................................................................ $24.99 LIFE The Guardianship Book for California.............................................................................................. $34.99 GB A Legal Guide for Lesbian and Gay Couples..................................................................................... $34.99 LG Living Together: A Legal Guide (Book w/CD-ROM)........................................................................ $34.99 LTK Nolo’s IEP Guide: Learning Disabilities........................................................................................... $29.99 IELD Parent Savvy..................................................................................................................................... $19.99 PRNT Prenuptial Agreements: How to Write a Fair & Lasting Contract (Book w/CD-ROM)...................... $34.99 PNUP Work Less, Live More....................................................................................................................... $17.99 RECL GOING TO COURT Beat Your Ticket: Go To Court & Win!
chapter 2 | Live Below Your Means | 123 Inheritances While it may seem presumptuous or uncomfortable for you to consider it, many of today’s semi-retirees are likely to receive some sort of inheritance from their parents around the time they hit traditional retirement age. If your family is a close one and your parents are sufficiently affluent and insured so that there will almost surely be a sum to pass along, it makes sense to include the likelihood of an inheritance in your long-run financial planning. However, relying on circumstances outside your control and the estate planning wishes of your parents comes with risks: The funds might skip a generation and go directly to your children. They may end up being shared with charities or a late-life spouse and family. Or they may simply be used to pay for your parents’ own long-term care. Resource For a discussion of passing along family wealth and advice on how to discuss passing along family wealth with your parents, see Get a Life: You Don’t Need a Million to Retire Well, by Ralph Warner (Nolo). 124 | Work Less, Live More A New Look at Rising Standards of Living For those just switching gears into semi-retirement, another point to bear in mind is that human nature seems wired up to expect a gradually increasing standard of living over the years.
Between the tax benefits and the appeal of keeping the money in the family, this approach may eventually become chapter 3 | Put Your Investing on Autopilot | 181 standard practice—though experts advise it makes the most sense when parents are physically well but quite elderly. The same basic technique can also be used by any older investor seeking to defer or avoid capital gains taxes, through the use of a trust. The appreciated property is placed in a trust, which must then pay the scheduled payment to the investor for life. Private annuities are powerful, but inflexible—and it may be wise to seek professional advice from an experienced estate planning attorney when deciding whether and how to set one up. Resource A good description of the benefits and pitfalls of private annuities is offered by attorney Joseph Petrucelli at www.privateannuities.com/ private_annuity_petrucelli.htm. Demand Low Fees Your portfolio’s management fees, which you can find in the fund’s prospectus or by entering the ticker at www.morningstar.com, should average below 0.5% per year, and some semi-retirees can get even lower, into the range of 0.2% per year.
The Meat Racket: The Secret Takeover of America's Food Business by Christopher Leonard
agricultural Revolution, barriers to entry, commoditize, estate planning, facts on the ground, invisible hand, longitudinal study, mortgage debt, payday loans, price discovery process, price stability, Ralph Nader, women in the workforce, zero-sum game
A company like Tyson made millions of dollars in profit every year even if its business strategy was marred by errors, bad investments, and questionable leadership. * * * As Don Tyson pulled away from daily operations at Tyson Foods, so too did his friend and lawyer Jim Blair. But the two often spent time together, and Jim Blair helped Don Tyson with a number of legal jobs, such as doing his estate planning. For Don Tyson, estate planning involved a lot more than simply figuring out to whom he was going to leave his money. It involved the sticky questions of how Don Tyson would bequeath his company stock, and therefore his power, to certain heirs and not to others. Along with his son, Johnny, Don had three daughters. And his sister-in-law, Barbara, had a major stake in the firm. As they talked over the estate, Don suddenly mused out loud to Blair: — You know, you’re not very kin to your grandchildren.
., 246–48, 249, 254 balloon loans, 200 banks, 1, 38–39, 55, 67, 98, 136, 138, 268, 281, 317 contract farmers extended loans by, 23, 26, 68, 70, 125, 127, 139, 140, 141–43, 144, 156, 188, 200, 247, 317 “dollar auctions” of, 57 Don Tyson’s risky loans from, 58–59, 67, 75, 78, 98 federal farm loan program and, 139–45 Barnicle, Mike, 298 Bass Brothers Enterprises, 101 Beef, 225 beef industry, 54, 92, 169, 171–72, 247, 308 battles between producers and meatpackers in, 208–9 biological innovations in, 6, 314 “boxed beef” in, 170–71, 172 cattle buyers in, 213–16, 217–21 centrally controlled system in, 215, 229, 266 “chickenization” of, 149, 152–53, 171–72, 173–74, 209, 216–17, 226, 242, 283 consolidation of power in, 5, 153, 171, 173–74, 208, 214, 215, 222, 229, 235, 248, 249, 280–81 corporate culture of, 210, 211, 215, 216, 218, 221 corporate oligarchy in, 5, 153, 171, 176, 208, 209, 212–13, 214, 218, 219, 220, 229, 235, 248, 249, 269, 280–81, 284 cutting of costs in, 212 declining consumer consumption in, 152, 158, 169, 171, 208, 242 declining quality of meat in, 153, 216, 224, 225 government regulations in, 66, 84–85, 220, 248, 254, 284 IBP’s dominance in, 169, 171, 174 lawsuits filed in, 269 lobbyists in, 210–11, 223, 285, 286, 295 loss of open, competitive market in, 5, 173–74, 209, 212–13, 217, 218–20, 221–23, 224, 229, 269 meatpacking sector in, see meatpackers rising consumer prices in, 248, 269, 294, 313 slaughterhouses in, 169–70, 172, 174, 211–12, 215, 221, 226, 311 Tyson’s business model adopted in, 149, 173–74, 209, 212n, 223, 225 Tyson’s dominance in, 180, 208–9, 281n USDA grades in, 213, 215–16, 222 vertical integration in, 5, 172, 209, 285 volatile market cycles in, 209, 213 Zilmax used in, 225, 226 see also cattle ranching; feedlots, cattle; meat industry Beef Marketing Group (BMG), 222, 223 Berryville, Ark., 8, 120, 150–51, 315, 317 Bethel, Bill, 35, 36, 38 Blair, Jim, 22–23, 82–83, 84, 94, 102, 145, 168, 176, 308–9 background of, 82, 99 Don Tyson’s estate planning by, 166–67 in merger and acquisition deals, 98–99, 100–101, 109–10 Blunt, Roy, 302 Bond, Richard, 180, 264 Borck, Lee, 222–24, 226, 284 “boxed beef,” 170–71, 172 Brazil, 305, 306 breeding techniques, 21, 53, 62, 92, 108–9, 157, 159, 167, 202–3, 237 Breimyer, Harold F., 230–31, 233, 260, 316 Britt, Wayne, 163–64 Brown, Tommy, 29–32, 103 Burger King, 91, 92, 107, 108 Burnett, Ron, 139–40, 141 Burris, Chris, 221 Bush, George W., 264 Bush administration, 175–76, 254, 255, 277, 303 butchers, 66, 170, 171, 178 Butler, Coy, 118, 119 Butler, J.
Robert, 121, 132 Tea Party movement, 290 tenant farming, 55–56 tenders, chicken, 106–7 Texas, 143, 144, 208, 219, 288, 307 Thomas, John, 193–94 Tollett, Leland, 74, 96, 160, 264, 305, 306 as CEO of Tyson Foods, 162–63 in internal coup at Tyson Foods, 178–79 in weekly managers’ meetings, 74, 92 turkey farming, 236, 272, 274 Turkey Federation, The, 251 Tyson, Cheryl, 309 Tyson, Don, 48, 56, 57, 63, 64, 65–67, 68–69, 70, 72, 82, 87, 97, 98, 99, 106, 157, 168, 170, 174, 264, 270, 305–6 in bringing chicken into fast-food markets, 91–92, 93–95, 107 charisma of, 160–61 childhood of, 51, 53–54, 111, 161, 310 “Class B” shares owned by, 162 control over Tyson Food’s maintained by, 162, 163, 178–79, 305–6 cost-cutting ethos of, 59, 60, 67, 78, 179–80 death and funeral of, 309–10, 312 declining health of, 305, 306–7, 308, 309 education of, 53, 59 employee loyalty fostered by, 161 estate of, 305, 306 estate planning of, 166–67 expansionist ambitions of, 64, 75, 81–82, 85–86, 99–100, 110, 111, 145–46, 152, 155, 159, 308 experimental hog farms of, 149–50, 152 father’s business lunches with, 62, 87, 91 father’s death and, 88–89 as field technician, 59, 69 final arrangements made by, 305–6 first slaughterhouse project overseen by, 60–62 fishing and boating of, 160, 307–8 in hostile acquisition deals, 99, 100–102 IBP merger opposed by, 174–75, 176 as industry visionary, 58, 59, 60, 65–66, 68, 75, 81, 86, 91, 93, 163, 310 internal coup at Tyson and, 178–80 legacy of, 310–11 market-downturn survival strategies of, 77–79, 86, 100, 179–80 1961 financial crisis and, 77–81, 266 public-offering decision of, 80–81 risk-taking and money borrowing of, 58–59, 61, 66, 67, 75, 78, 81, 98 in stepping away from daily operations, 159–60, 162, 163, 166 tutoring of son in family business by, 161–62 in weekly managers’ meetings, 74–76, 77, 87, 89, 92–93, 96 Tyson, Helen, 53, 54, 88 Tyson, Jean, 306 Tyson, John, 46, 47–48, 50, 51, 53, 57, 58, 59, 60, 61, 63, 66, 72, 74, 80, 82, 85, 87, 92, 111, 161, 174, 270 cautious approach of, 58, 67, 75, 89, 175 control of chicken farms sought by, 54–56 death of, 88–89 debt payments and depreciation rule of, 75, 100, 175 Don’s business lunches with, 62, 87, 91 feed business of, 53–54, 55, 56 firing of workers by, 56, 61 as focused on material side of business, 87–88 lack of sentimentality in, 48, 56–57 shipping business of, 48, 51, 52–53 Tyson, Johnny, 160–62, 167, 180, 264, 306, 307, 308 as CEO of Tyson Foods, 167, 169, 176–80 chairman appointment of, 163–64 childhood of, 161–62 drug and alcohol abuse of, 162, 164, 167 explosive temper of, 161, 178 father’s tutoring of, 161–62 IBP acquisition and, 174–76 internal coup against, 178–80 lack of respect among executives for, 161, 162, 164 rebranding campaigns of, 176–78, 179, 180 Tyson’s struggles under leadership of, 164, 167–69 Tyson, Randall, 88 Tyson Feed and Hatchery, 63 bookkeeping department of, 63, 64, 68, 71–72, 73 control of chicken farmers by, 62 cost-cutting ethos at, 59, 60, 67, 78, 79 creation of, 56 debts of, 75, 76, 77–78, 80 depression of prices paid to farmers by, 79 egg-laying farms at, 78–79, 80 in emergence of contract farming, 68, 70, 71 expansion of, 57, 58, 60, 64, 68, 69 farm ownership experiment of, 22, 23, 71 feed mills of, 58, 59, 61, 72 field technicians at, 59, 69, 71 first slaughterhouse built by, 60–61, 169–70 government inspections failed by, 61 grocery and restaurant contracts of, 54, 60, 62, 65–66, 73, 76 growing customer base of, 58, 60, 62, 64–65 hatcheries of, 58, 59, 61, 62, 72, 78, 79–80, 87 1961 financial crisis and, 76–80, 81, 266 organized chaos in early years of, 64, 65 origins of, 46, 48, 51, 52–56, 66, 92, 161 production scale-backs at, 77, 78 profits of, 58, 59 public offering decision of, 80–81, 92 slaughterhouse of, 60–61, 62, 66, 72, 169 Springdale offices of, 58, 63–64, 65, 74 tax evasion of, 66, 71–74 trucking lines of, 58, 59, 61, 62, 72 vertical integration of, 56, 58, 61, 62, 65, 66, 78 weekly managers’ meetings at, 74–76, 77, 155 Tyson Foods, 80–81, 92, 97, 98, 105, 118, 120, 135, 136, 138–39, 151, 161–62, 189, 240, 244, 245, 246, 251, 253, 261, 279, 291, 295, 303, 308, 310–11, 318–19 antibiotics used by, 7–8 Berryville complex of, 317 biological innovations spearheaded by, 5–6, 92, 109, 157 breeding techniques at, 21, 92, 157, 159, 167 Broiler Office of, 33–35, 36, 37 centralization of control at, 20, 21, 33, 34, 159, 229, 265–66, 270–71 “Class B” shares of, 162 Clinton as political patron of, 262, 268, 310 close monitoring of farms’ efficiency and profitability by, 20, 24, 33, 34, 115, 126, 130, 131 competition among top executives at, 93, 96, 160, 161 contract farming networks of, 7, 8, 29, 72, 105, 106, 140, 143;, 159, 200, 221, 226, 231, 243, 270, 310, 314, 316; see also contract farmers control of food markets by, 108, 110, 111, 114, 115, 176, 184, 204, 209, 266, 269, 270, 271, 273, 274, 275, 284, 310, 312, 313, 318 “Cornish game hens” gimmick of, 86–87 corporate workforce expansion at, 177, 178, 180 cost-cutting ethos at, 46, 102, 105, 106, 179–80, 312, 314, 315 cost models used at, 95–96 culture of placing blame on farmers in, 44, 103–4, 126, 130 debts of, 98, 175, 176 depression of prices paid to farmers by, 4, 7, 25, 31, 35, 46, 116–18, 119, 122, 126, 127, 132, 168, 188, 192, 203, 204, 269, 275, 312 diseased birds delivered by, 9, 17–20, 27–29, 32, 37, 38, 39–40, 41, 43–44, 103, 118, 133–34, 135, 136, 137 Donnie Smith as CEO of, 305, 311–12, 313 Don Tyson as maintaining control in, 162, 163, 178–79, 305–6 Don Tyson as stepping away from daily operations at, 159–60, 162, 163, 166 egg-laying farms of, 103, 270 as escaping public scrutiny, 3, 8 expansion of, 81–82, 85–86, 87, 93, 97–100, 101, 102, 108, 110, 111, 140, 145, 152, 155, 156, 157, 159, 167, 176, 177, 180, 306, 308, 310, 314, 318 farm/manufacturer hybrid quality of, 66, 98 fast-food contracts of, 30–31, 95, 98, 101, 107, 108, 109, 159, 169, 178, 225, 267, 275, 306, 311 feed mills of, 5, 8, 21, 24, 30, 33, 83, 103, 105, 134, 316 field technicians at, 9, 17, 18–20, 24, 28–32, 34, 39–40, 44, 102–4, 118, 120, 126, 137–38, 151, 192–93 financial losses in poultry division of, 264, 265, 266, 267, 270, 305 globalization of, 306, 308 government intervention as beneficial for, 58, 145, 166 government regulations evaded by, 66, 85 Green Forest plant of, 106–8 grocery and chain supplier contracts with, 3, 31, 83, 158, 159, 169, 178, 225, 265, 267, 275, 288, 311 growing customer base of, 98, 101, 108, 159 hatcheries of, 5, 19, 21, 36–37, 44, 83, 103, 108, 134, 270 hidden prevalence of products supplied by, 2–3, 177, 178, 179, 311 hog farming division of, see Tyson Foods, hog division of improving of complex efficiency at, 105–6, 107 industry dominance of, 3, 4, 5, 6–7, 108, 110, 111, 114, 145, 159, 160, 169, 174, 175, 176, 180, 204, 208–9, 233, 235, 266, 273, 281n, 318 Intensified Management Status program of, 126, 130, 131 internal coup at, 178–80 Johnny Tyson as CEO of, 167, 169, 174–75, 176–80 Johnny Tyson named chairman of, 163–64 labor disputes and, 83–85, 256 lawsuits filed against, 37, 100, 257, 269, 283, 317 lobbying operation of, 251n, 279, 286, 292, 295 market-downturn survival strategies of, 77–78, 100, 102, 179–80, 270–71, 305, 311–13 marketing department at, 106, 177–78, 180 mergers and acquisitions by, 81–82, 85–86, 93, 96, 98–102, 104, 105, 108, 109–10, 111, 174–76, 177, 306, 314, 316 Miller vs.
Pound Foolish: Exposing the Dark Side of the Personal Finance Industry by Helaine Olen
American ideology, asset allocation, Bernie Madoff, buy and hold, Cass Sunstein, Credit Default Swap, David Brooks, delayed gratification, diversification, diversified portfolio, Donald Trump, Elliott wave, en.wikipedia.org, estate planning, financial innovation, Flash crash, game design, greed is good, high net worth, impulse control, income inequality, index fund, London Whale, longitudinal study, Mark Zuckerberg, money market fund, mortgage debt, oil shock, payday loans, pension reform, Ponzi scheme, post-work, quantitative easing, Ralph Nader, RAND corporation, random walk, Richard Thaler, Ronald Reagan, Saturday Night Live, Stanford marshmallow experiment, stocks for the long run, too big to fail, transaction costs, Unsafe at Any Speed, upwardly mobile, Vanguard fund, wage slave, women in the workforce, working poor, éminence grise
According to an AARP survey conducted in 2009, one in ten Americans over the age of fifty-five—that’s 5.9 million people—had attended a free lunch or dinner offered by someone pitching investment opportunities within the previous three years. These mixes of food and finance are so common that when I plug the words “Ruth’s Chris Steak House” and “seminar” into Google, I turn up investment seminars on everything from risk management to estate planning in California, Virginia, Massachusetts, Florida, and Rhode Island—and that’s just on the first results page. These “free” meals almost always follow the same pattern. Financial columnist Humberto Cruz, who attended half a dozen such seminars in 2007, found almost all the speakers “scaring and pressuring the mostly elderly audience with half-truths and distortions” all designed to “pressure them into high-commission products.”
A country-western star whose lack of spending discipline almost led her to bankruptcy court, Judd became a poster child for the financial therapy movement after taking Onsite’s week-long retreat, which offers attendees everything from such experiential therapy staples as psychodrama and visualizations to sessions devoted to teaching such basics of personal finance as cash flow management and tax and estate planning. Judd claims it was a life-altering experience, allowing her to shed both psychic trauma and unnecessary possessions. “I’ve liquidated all the vehicles down to the ones we actually use,” she proudly recounted in the New York Times. “If I can do it, anyone can.” Wynonna Judd as Financial Everywoman would be hilarious if it was a one-off with little in the way of consequences. But that’s not the case.
A Vanguard study found: John Ameriks, Jill Marshall, Liqian Ren, “Equity Abandonment in 2008-2009: Lower Among Balanced Fund Investors,” Vanguard, December, 2009, https://institutional.vanguard.com/VGApp/iip/site/institutional/researchcommentary/article?File=InvResEquityAbandon20082009. None of this should come as news: Brad Barber and Terrance Odean, “Too Many Cooks Spoil the Profit: Investment Club Performance,” Financial Analysts Journal, vol. 56, no. 1, 2000. As Financial Finesse CEO: Liz Davidson, “Nice Girls Talk About Estate Planning,” Forbes.com, http://www.forbes.com/northwesternmutual/3-reasons-why-men.html; “Financial Finesse Special Report: The Gender Gap in Financial Literacy,” June 15, 2011. In 2009, the researchers behind this theory: Sheelah Kolhatkar, “What if Women Ran Wall Street?” New York Magazine, March 21, 2010, http://nymag.com/news/businessfinance/64950. John Coates, please meet: John Cassidy, “Mary Meeker Moves On,” Rational Irrationality, New Yorker, November 29, 2010, http://www.newyorker.com/online/blogs/johncassidy/2010/11/mary-meeker-moves-on.html According to Hearts & Wallets: “Are Women Investors Hard-Hearted: Why Women Expect More than Men From Financial Services Firms and What They Want,” Hearts & Wallets.com, February 7, 2012, http://heartsandwallets.com/are-women-investors-hard-hearted/news/2012/02.
Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right by Jane Mayer
affirmative action, Affordable Care Act / Obamacare, American Legislative Exchange Council, anti-communist, Bakken shale, bank run, battle of ideas, Berlin Wall, Capital in the Twenty-First Century by Thomas Piketty, carried interest, centre right, clean water, Climategate, Climatic Research Unit, collective bargaining, corporate raider, crony capitalism, David Brooks, desegregation, diversified portfolio, Donald Trump, energy security, estate planning, Fall of the Berlin Wall, George Gilder, housing crisis, hydraulic fracturing, income inequality, Intergovernmental Panel on Climate Change (IPCC), invisible hand, job automation, low skilled workers, mandatory minimum, market fundamentalism, mass incarceration, Mont Pelerin Society, More Guns, Less Crime, Nate Silver, New Journalism, obamacare, Occupy movement, offshore financial centre, oil shale / tar sands, oil shock, plutocrats, Plutocrats, Powell Memorandum, Ralph Nader, Renaissance Technologies, road to serfdom, Robert Mercer, Ronald Reagan, school choice, school vouchers, The Bell Curve by Richard Herrnstein and Charles Murray, The Chicago School, the scientific method, University of East Anglia, Unsafe at Any Speed, War on Poverty, working poor
He remained vehemently opposed to estate taxes, and told Charles that he feared the U.S. government would tax him so heavily it might force him to sell the family business, diminishing his sons’ inheritances. To minimize future taxes, Fred Koch took advantage of elaborate estate planning. Among other strategies, he set up a “charitable lead trust” that enabled him to pass on his estate to his sons without inheritance taxes, so long as the sons donated the accruing interest on the principle to charity for twenty years. To maximize their self-interest, in other words, the Koch boys were compelled to be charitable. Tax avoidance was thus the original impetus for the Koch brothers’ extraordinary philanthropy. As David Koch later explained, “So for 20 years, I had to give away all that income, and I sort of got into it.” Fred Koch’s estate plan treated each son equally, but according to Coppin, to ensure that his offspring would continue to obey him, he arranged to pass his fortune on to them in two stages, with the second half passing on only after his death.
He was required, though, to pay back taxes, which was a humiliation and indignity for the patrician family. Three years after the 1929 stock market crash, against this backdrop of class conflict and financial chicanery, Richard Mellon Scaife was born. His family, and later he himself, would continue to portray their embrace of low taxes and limited government as matters of high principle, as Andrew Mellon had. But his parents’ elaborate estate planning in order to minimize their own tax bills suggests that they had more than an abstract interest in the subject. Scaife’s parents created the largest of the family’s tax-exempt, charitable foundations, the Sarah Scaife Foundation, in December 1941, days after the Japanese attack on Pearl Harbor. It appears to have been timed to shelter the family’s wealth from anticipated tax increases. Scaife writes, “I don’t know what my parents’ specific motives were,” but he notes that because of the impending war “there was talk…of a top income tax rate of above 90 percent.”
“it bordered on anarchism”: Rick Perlstein, Before the Storm: Barry Goldwater and the Unmaking of the American Consensus (Nation Books, 2009), 113. “there are certain laws”: Wenzl and Wilson, “Charles Koch Relentless.” Early on, the Internal Revenue Service: Coppin, “History of Winkler Koch,” 29. He remained vehemently opposed: Wilson and Wenzl, “Charles Koch Relentless.” Among other strategies: Gary Weiss, “The Price of Immortality,” Upstart Business Journal, Oct. 15, 2008; “Estate Planning Koch and Chase Koch (Son of Charles Koch): Past, Present, and Future,” Repealing the Frontiers of Ignorance, Aug. 4, 2013, http://repealingfrontiers.blogspot.com. “So for 20 years”: Weiss, “Price of Immortality.” he arranged to pass his fortune: In his letters, Fred Koch described his concerns about children given family fortunes at young ages who disowned their fathers, according to Coppin.
The Barefoot Investor: The Only Money Guide You'll Ever Need by Scott Pape
Albert Einstein, Asian financial crisis, diversified portfolio, Donald Trump, estate planning, financial independence, index fund, Jeff Bezos, Mark Zuckerberg, McMansion, Own Your Own Home, Robert Shiller, Robert Shiller, Snapchat
If you want some advice on which stocks to buy, you have two choices: head over to asx.com.au, where you can search for a ‘full-service broker' — that is, someone who'll recommend stocks. Alternatively (blatant plug alert), you can join our Barefoot Blueprint investment newsletter. If you need help sorting out aged-care options ... Again, call Centrelink on 132 300 and arrange a face-to-face meeting with one of their FISOs. The service is free and unbiased. They'll explain the costs involved with aged care, impacts on the age pension, options with your former home and estate planning considerations. What have you got to lose? If you need help sorting out your insurance … Again, call your super fund. They'll have financial advisors who can do a risk assessment and recommend insurance both inside and outside of super — and at wholesale rates instead of the eye-gouging commissions most financial planners charge (up to 125 per cent of the first year's premium — now that's what I call eye-gouging).
Here are their digits: ACT: (02) 6207 9800, ptg.act.gov.au NSW: 1300 364 103, tag.nsw.gov.au NT: (08) 8999 7271, nt.gov.au/law/bdm/about-public-trustee Queensland: 1300 360 044, pt.qld.gov.au South Australia: (08) 8226 9200, publictrustee.sa.gov.au Tasmania: (03) 6235 5200, publictrustee.tas.gov.au Victoria: 1300 138 672, statetrustees.com.au Western Australia: 1300 746 116, publictrustee.wa.gov.au And if life's a bit more, shall we say, ‘Geoffrey Edelsten' (read blended families, lots of dough), you should go to the Law Institute website in your state and find a solicitor who's an expert in professional estate planning. If you need a home loan … If you're refinancing, it's probably easier to bitch than it is to switch. Follow my scripts on page 202 and prepare to save a fortune. If you're going for your first home, check out online players like UBank and ING, who generally have the cheapest rates (although you'll need to have a 20 per cent deposit and a solid savings history). If you have multiple properties or a non-standard situation, call a cash-back mortgage broker like Mates Rates on 1300 558 161, who'll refund you the annual trailing commission the banks pay them.
925 Ideas to Help You Save Money, Get Out of Debt and Retire a Millionaire So You Can Leave Your Mark on the World by Devin D. Thorpe
asset allocation, buy and hold, call centre, diversification, estate planning, fixed income, Home mortgage interest deduction, index fund, knowledge economy, money market fund, mortgage tax deduction, payday loans, random walk, risk tolerance, Skype, Steve Jobs, transaction costs, women in the workforce, zero-sum game
Retirement: Everyone needs to have retirement savings, but if your kids are all gone and you’re still working, now would be a good time to focus your finances on your retirement savings. The key rule for retirement savings is the sooner the better. Making an extra-large deposit in your retirement savings years before you retire will have a bigger impact than saving the same amount of dollars over the remaining years to retirement. Estate planning: If you have accumulated a net worth (assets minus liabilities) of more than $1.5 million (congratulations by the way) you may need to talk to an estate planning attorney to help you organize your wealth for the most tax efficient way to move those assets to the next generation. Charitable giving: Of course, you can and should make charitable giving a part of every year’s financial planning. If your retirement is funded, the kids have completed college and your estate is in order, this year may be about organizing major charitable giving, to leave a legacy of having made the world a better place.
J.K. Lasser's Your Income Tax by J K Lasser Institute
Affordable Care Act / Obamacare, airline deregulation, asset allocation, business cycle, collective bargaining, distributed generation, employer provided health coverage, estate planning, Home mortgage interest deduction, intangible asset, medical malpractice, medical residency, money market fund, mortgage debt, mortgage tax deduction, passive income, Ponzi scheme, profit motive, rent control, Right to Buy, telemarketer, transaction costs, urban renewal, zero-coupon bond
Starting in 2013, instead of a deduction, an estate can claim a limited tax credit for state death taxes. Periodically review your estate plan. No estate plan is ever really final. Economic conditions and inflation constantly change values. For this reason, your plan must be reviewed periodically as changes occur in your family and business, as when a birth or death occurs; when you receive a substantial increase or decrease in income; when you enter a new business venture or resign from an old one; or when you sell, retire from, or bring new persons into your business. A member of your family may no longer need any part of your estate, while others may need more. Material changes may occur in the health or life expectancy of one of your beneficiaries. Furthermore, tax law changes may require you to adjust your estate planning, Part 6 Business Tax Planning In this part, you will learn how to report your income from a business or profession, and how to reduce your tax liability by claiming expense deductions.
- - - - - - - - - - Caution Reduced Credit for Some States If you are in a state that owes money to the federal unemployment fund, your FUTA credit for state unemployment taxes is reduced on Schedule H. - - - - - - - - - - For wages paid to a household employee in 2012, you will generally report FUTA on Schedule H, which you attach to your Form 1040. If you have regular business employees, see 38.2 for more reporting options. Chapter 39 Gift and Estate Tax Planning Basics Gift planning can be an important part of estate planning. This chapter provides an overview of the federal gift tax and estate tax. Developing an estate plan for your assets requires professional assistance, but the basic guidelines in this chapter can help you begin to estimate your potential estate and start thinking about property transfers that may reduce or avoid the estate tax. Relatively small gifts can completely avoid gift tax (39.2) because of the annual gift tax exclusion, which for 2012 is $13,000 per donee.
The key benefit of the Roth IRA is that tax-free withdrawals of contributions may be made at any time and earnings may be withdrawn tax free after a five-year holding period by an individual who is age 59½ or older, is disabled, or who pays qualifying first-time home-buyer expenses. - - - - - - - - - - Caution Roth IRA Contribution Deadline The deadline for making Roth IRA contributions for 2012 is April 15, 2013, the regular due date for your 2012 return. This is the contribution deadline even if you obtain a filing extension for your 2012 return. - - - - - - - - - - A Roth IRA can provide attractive retirement planning and estate planning opportunities. Although annual contributions to a traditional IRA are barred once you reach age 70½ (8.2), contributions to a Roth IRA are allowed after age 70½, provided you have taxable compensation for the year and your modified adjusted gross income does not exceed the annual limitation (8.20). Also, the minimum required distribution rules that apply to traditional IRAs after age 70½ (8.13) do not apply to Roth IRAs.
J.K. Lasser's Your Income Tax 2014 by J. K. Lasser
Affordable Care Act / Obamacare, airline deregulation, asset allocation, business cycle, collective bargaining, distributed generation, employer provided health coverage, estate planning, Home mortgage interest deduction, intangible asset, medical malpractice, medical residency, mortgage debt, mortgage tax deduction, obamacare, passive income, Ponzi scheme, profit motive, rent control, Right to Buy, telemarketer, transaction costs, urban renewal, zero-coupon bond
If the surviving spouse is not a U.S. citizen, then the transferred interest must be in the form of a QDOT. Periodically review your estate plan No estate plan is ever really final. Economic conditions and inflation constantly change values. For this reason, your plan must be reviewed periodically as changes occur in your family and business, as when a birth or death occurs; when you receive a substantial increase or decrease in income; when you enter a new business venture or resign from an old one; or when you sell, retire from, or bring new persons into your business. A member of your family may no longer need any part of your estate, while others may need more. Material changes may occur in the health or life expectancy of one of your beneficiaries. Furthermore, tax law changes may require you to adjust your estate planning, Part 6 Business Tax Planning In this part, you will learn how to report your income from a business or profession, and how to reduce your tax liability by claiming expense deductions.
- - - - - - - - - - Employers in some states will not be entitled to the full 5.4% credit because the state owes money to the federal unemployment fund. A worksheet in the Schedule H instructions shows the reduced credit rate allowed in the affected states. Chapter 39 Gift and Estate Tax Planning Basics Gift planning can be an important part of estate planning. This chapter provides an overview of the federal gift tax and estate tax. Developing an estate plan for your assets requires professional assistance, but the basic guidelines in this chapter can help you begin to estimate your potential estate and start thinking about property transfers that may reduce or avoid the estate tax. Relatively small gifts can completely avoid gift tax (39.2) because of the annual gift tax exclusion, which for 2013 is $14,000 per donee.
The key benefit of the Roth IRA is that tax-free withdrawals of contributions may be made at any time and earnings may be withdrawn tax free after a five-year holding period by an individual who is age 591/2 or older, is disabled, or who pays qualifying first-time home-buyer expenses. - - - - - - - - - - Caution Increased Pre–Age 591/2 Penalty In the first two years of SIMPLE IRA participation, the penalty for distributions before age 591/2 is increased from 10% to 25%. - - - - - - - - - - A Roth IRA can provide attractive retirement planning and estate planning opportunities. Although annual contributions to a traditional IRA are barred once you reach age 701/2 (8.2), contributions to a Roth IRA are allowed after age 701/2, provided you have taxable compensation for the year and your modified adjusted gross income does not exceed the annual limitation (8.20). Also, the minimum required distribution rules that apply to traditional IRAs after age 701/2 (8.13) do not apply to Roth IRAs.
Money Moments: Simple Steps to Financial Well-Being by Jason Butler
Albert Einstein, asset allocation, buy and hold, Cass Sunstein, diversified portfolio, estate planning, financial independence, fixed income, happiness index / gross national happiness, index fund, intangible asset, longitudinal study, loss aversion, Lyft, Mark Zuckerberg, mortgage debt, passive income, placebo effect, Richard Thaler, ride hailing / ride sharing, Steve Jobs, time value of money, traffic fines, Travis Kalanick, Uber and Lyft, uber lyft, Vanguard fund, Yogi Berra
Our family has a mission statement that spells out the overall purpose of our wealth. 2. The entire family is involved in the most important decisions, such as defining a mission for our wealth. 3. All family heirs have the option of participating in the management of the family’s assets. 4. Heirs understand their future roles, have “bought into” those roles, and look forward to performing those roles. 5. Heirs have actually reviewed the family’s estate plans and documents. 6. Our current wills, trusts, and other documents make most asset-distributions based on heir readiness, not heir age. 7. Our family mission includes creating incentives and opportunities for our heirs. 8. Our younger children are encouraged to participate in our family’s philanthropic grant-making decisions. 9. Our family considers family unity to be just as important as financial strength. 10.
Secret Houses of the Cotswolds by Jeremy Musson, Hugo Rittson Thomas
‘It is something to think of the village being in Domesday – it makes me feel proud to be a small part of this long history. With the estate being owned by a family trust, we certainly see ourselves principally as guardians of the house for future generations,’ says Mr Acland. A needlework tapestry designed by a previous owner of Notgrove, Colin Anderson (and made by the Royal School of Needlework) hangs in the hall of the house, depicting an estate plan with all the historic field boundaries and field names. Mr Acland says: ‘It was twice damaged by fires in the house and was kept folded in a drawer, and ever since I was a boy I wanted to restore and display it.’ The tapestry’s field names reflect the long and human history of this ancient place. 14 Owlpen Manor Gloucestershire ENCLOSED BY STEEPLY RISING HILLS and surrounded by beech woods and sheep pastures, Owlpen Manor is one of the treasures of the Cotswolds.
J.K. Lasser's Your Income Tax 2016: For Preparing Your 2015 Tax Return by J. K. Lasser Institute
Affordable Care Act / Obamacare, airline deregulation, asset allocation, business cycle, collective bargaining, distributed generation, employer provided health coverage, estate planning, Home mortgage interest deduction, intangible asset, medical malpractice, medical residency, mortgage debt, mortgage tax deduction, passive income, Ponzi scheme, profit motive, rent control, Right to Buy, transaction costs, urban renewal, zero-coupon bond
If the surviving spouse is not a U.S. citizen, then the transferred interest must be in the form of a QDOT. Periodically review your estate plan. No estate plan is ever really final. Economic conditions and inflation constantly change values. For this reason, your plan must be reviewed periodically as changes occur in your family and business, as when a birth or death occurs; when you receive a substantial increase or decrease in income; when you enter a new business venture or resign from an old one; or when you sell, retire from, or bring new persons into your business. A member of your family may no longer need any part of your estate, while others may need more. Material changes may occur in the health or life expectancy of one of your beneficiaries. Furthermore, tax law changes may require you to adjust your estate planning, Part 6 Business Tax Planning In this part, you will learn how to report your income from a business or profession, and how to reduce your tax liability by claiming expense deductions.
If you obtained an exemption from an exchange (Marketplace) when applying for coverage, complete Part I of Form 8965 and enter the Exemption Certificate Number (ECN) received from the Marketplace (or indicate that the Marketplace was still processing your request when you filed your return). If you are claiming an exemption when you file your return, complete Part II or Part III of Form 8965. Instructions for Form 8965 list a code for each exemption option. Chapter 39 Gift and Estate Tax Planning Basics Gift planning can be an important part of estate planning. This chapter provides an overview of the federal gift tax and estate tax. Developing an estate plan for your assets requires professional assistance, but the basic guidelines in this chapter can help you begin to estimate your potential estate and start thinking about property transfers that may reduce or avoid the estate tax. Relatively small gifts can completely avoid gift tax (39.2) because of the annual gift tax exclusion, which for 2015 is $14,000 per donee.
Caution Increased Pre–Age 59½ Penalty In the first two years of SIMPLE IRA participation, the penalty for distributions before age 59½ is increased from 10% to 25%. 8.19 Roth IRA Advantages As with traditional IRAs, earnings accumulate within a Roth IRA tax free until distributions are made. The key benefit of the Roth IRA is that tax-free withdrawals of contributions may be made at any time and earnings may be withdrawn tax free after a five-year holding period by an individual who is age 59½ or older, is disabled, or who pays qualifying first-time home-buyer expenses. A Roth IRA can provide attractive retirement planning and estate planning opportunities. Although annual contributions to a traditional IRA are barred once you reach age 70½ (8.2), contributions to a Roth IRA are allowed after age 70½, provided you have taxable compensation for the year and your modified adjusted gross income does not exceed the annual limitation (8.20). Also, the minimum required distribution rules that apply to traditional IRAs after age 70½ (8.13) do not apply to Roth IRAs.
The Monk and the Riddle: The Education of a Silicon Valley Entrepreneur by Randy Komisar
Apple's 1984 Super Bowl advert, barriers to entry, belly landing, discounted cash flows, estate planning, Jeff Bezos, Network effects, new economy, Pepto Bismol, Sand Hill Road, Silicon Valley, Silicon Valley startup, Steve Jobs
"We'll make it easy for communities to form around someone's dying and death," Lenny said. "We'll bring together family members and friends, wherever they are in the world, and give them an opportunity to grieve, remember, mourn, and show their support in ways not possible until the Web. At the same time we'll help the dying cope with their own deaths and give them the resources to make plansfinancial arrangements and estate planning, for instancefor the families they leave behind. We need to deal with death and dying much better as a society. This business can help." "We want to make one's last moments as meaningful as possible," Allison continued, "by providing people with the Page 164 opportunity to connect to those who have given their lives meaning and purpose and, in the end, to make sense of their lives, in an intimate and caring community."
Working the Street: What You Need to Know About Life on Wall Street by Erik Banks
So Wall Street has specialists that advise people on what they should do with their salary and assets: how much they should save every year and how much they should put in stocks or bonds in order to meet their financial goals. They also talk about really boring—but really M i d d l e m a n : W ha t W a l l S tr e e t R e a l l y D o e s | 9 important—things like retirement plans, tax and estate planning, and insurance. Kind of like a guidance counselor. Naturally, all of this advice is useful, so it costs money, more fees. In fact, many people pay for an initial consultation (an “introductory” fee), the ongoing advice (an annual “wealth management” fee) and individual transactions (commissions or “transaction” fees). And—you’ve guessed it—none of this is new. It’s been happening for a long time.
Investment: A History by Norton Reamer, Jesse Downing
activist fund / activist shareholder / activist investor, Albert Einstein, algorithmic trading, asset allocation, backtesting, banking crisis, Berlin Wall, Bernie Madoff, break the buck, Brownian motion, business cycle, buttonwood tree, buy and hold, California gold rush, capital asset pricing model, Carmen Reinhart, carried interest, colonial rule, credit crunch, Credit Default Swap, Daniel Kahneman / Amos Tversky, debt deflation, discounted cash flows, diversified portfolio, dogs of the Dow, equity premium, estate planning, Eugene Fama: efficient market hypothesis, Fall of the Berlin Wall, family office, Fellow of the Royal Society, financial innovation, fixed income, Gordon Gekko, Henri Poincaré, high net worth, index fund, information asymmetry, interest rate swap, invention of the telegraph, James Hargreaves, James Watt: steam engine, joint-stock company, Kenneth Rogoff, labor-force participation, land tenure, London Interbank Offered Rate, Long Term Capital Management, loss aversion, Louis Bachelier, margin call, means of production, Menlo Park, merger arbitrage, money market fund, moral hazard, mortgage debt, Myron Scholes, negative equity, Network effects, new economy, Nick Leeson, Own Your Own Home, Paul Samuelson, pension reform, Ponzi scheme, price mechanism, principal–agent problem, profit maximization, quantitative easing, RAND corporation, random walk, Renaissance Technologies, Richard Thaler, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, Robert Shiller, Sand Hill Road, Sharpe ratio, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, spinning jenny, statistical arbitrage, survivorship bias, technology bubble, The Wealth of Nations by Adam Smith, time value of money, too big to fail, transaction costs, underbanked, Vanguard fund, working poor, yield curve
Separate account management is usually highly customized and responsively provided, which means that qualifying clients normally ﬁnd such investment services attractive and convenient. In the past few decades, a broad system of private wealth management has been created, bringing the features of a family office to a wider, albeit still limited, audience. This system takes into account the complicated needs of wealthy individuals, providing for estate planning and, importantly, keeping an asset base secure. Unlike a dedicated family office, private banking does not involve an entire organization devoted to the wealth of a single individual or family. However, private banking does require investors to have a high level of assets, and it provides personally tailored investment advising and other services that commercial bank branches and retail brokerages do not offer.52 J.
., 280 Elizabethan Act of 1571, 36 Employee Retirement Income Security Act (ERISA), 92, 112, 113, 282; impacts of, 292–93; rewriting of, 275 Index 421 endowments, 123–25, 145; educational, 124–25; in Greece and Rome, 56–57, 57; taxes and, 124; university, 257, 271, 296, 328 enforcement, improved, 147 England: Act of 1545, 36; banking in, 70, 73–75; joint-stock companies in, 64–66, 86; stock market in, 86–87; sugar consumption in, 75, 77 English Poor Law of 1601, 100 Enron, 68 Equitable Life Assurance Society, 132 equities markets, 114 equity index funds, 285 equity premium puzzle, 252–53 Erie Railway, 178–79 Erie War, 177–79 ERISA. See Employee Retirement Income Security Act estate planning, 138 estates: land and, 14–21; management, in Greece, 18–19; management, in Rome, 19–21 estates (ousiai), 21 ETFs. See exchange-traded funds Europe: medieval, 53–54; population growth in, 71 European Commission, 95 event-driven strategies, 265 exchange-traded funds (ETFs), 10, 284, 286–88, 287 expense fees, 304 Fama, Eugene, 235, 245, 249 Fannie Mae, 266, 321–22 farmland, agriculture and, 282 Federal Deposit Insurance Corporation (FDIC), 136–37 Federal Express, 277 Federal Housing Administration (FHA), 321 Federal Reserve: data from, 137; ﬁnancial crisis of 2007–2009 and, 214; Great Depression and, 205–7; Great Recession and, 217– 18, 220–21, 225; Greenspan and, 213; interest rates and, 198; as lender of last resort, 216; policy of, 333; Strong and, 201 Federal Savings and Loan Insurance Corporation, 135–36 Federal Trade Commission (FTC), 211–12 feedback effects, 253 fees: event-based, 304; expense, 304; hedge funds, 261, 262, 270–71, 273, 301–2, 304–6, 308–9, 313, 314; implication of high, 311–12; management, 261, 270, 273, 304– 5; as misleading proxy for quality, 309–10; performance versus, 312– 15; premature withdrawal, 114.
Small Space Organizing: A Room by Room Guide to Maximizing Your Space by Kathryn Bechen
Keep one copy of the list in the unit and one copy at home so that if you wonder what you did with “File X,” you can easily find it. Remember to update the list if you add or subtract a box from the unit. Also, buy a portable battery-operated camping lantern for lighting since most storage facilities don’t have lighting inside individual units. And be sure to get two keys to your unit so that more than one family member has access to the files. It’s also a good idea to leave a key with your estate planning attorney. And of course, once a year go through your archive files and shred what no longer needs to be kept. Relocation Storage Unit Just a word about renting a storage unit temporarily while you’re relocating. Be sure to think through how you will stack your household items in your unit and don’t just shove them all in there. Put least important or least used items in the back and items used most often in the front.
Grinding It Out: The Making of McDonald's by Ray Kroc
He’s concentrating all his talent on our simple menu, and the results will be culinary art in fast-food form. There are lots of things Renée and I will be working on. For openers, a new item I have in mind to help build our supper-hour trade. Renée is testing it, and if it turns out to be as good as I think it is, it will make the Colonel himself forget about fried chicken. Our menu development, aimed at filling out a three-meal day plus snacks for our restaurants, has a parallel in our real estate planning. I mentioned the “nook and cranny” notion of real estate development and that’s a good way of thinking of it. But the philosophy behind it is that we want to bring our restaurants to the people. We want to be where people live, where they work, and where they play. Urban real estate is a different ball game than the one we play in suburbia where McDonald’s grew up. This is especially true in commercial districts where people work.
Personal Investing: The Missing Manual by Bonnie Biafore, Amy E. Buttell, Carol Fabbri
asset allocation, asset-backed security, business cycle, buy and hold, diversification, diversified portfolio, Donald Trump, employer provided health coverage, estate planning, fixed income, Home mortgage interest deduction, index fund, Kickstarter, money market fund, mortgage tax deduction, risk tolerance, risk-adjusted returns, Rubik’s Cube, Sharpe ratio, stocks for the long run, Vanguard fund, Yogi Berra, zero-coupon bond
See asset allocation dividend reinvestment plan (DRIP), 111 dividends, 158 from mutual funds, 63 reinvesting, 158 from REITs, 62, 142–143, 145, 148 from stock, 56, 58, 124 dividend yield, 124 dollar cost averaging, 4, 178 double-clicking, as used in this book, 6 dragging, as used in this book, 6 DRIP (dividend reinvestment plan), 111 E earnings per share (EPS), 126 economic risk, 158 efficient market theory, 120 ego, excessive, 51 eHealthInsurance.com website, 216 employer-sponsored insurance plans, 215–216 employer’s stock, risks of investing in, 47, 157 EPS (earnings per share), 126 equity, for a company, 108 equity REITs, 143–144 equity risk, 159 estate plans for parents, 35 Estimating Your Retirement Needs worksheet, 25–27 Index 229 exchange-traded funds (ETFs), 61, 72, 75–76. See also mutual funds choosing, 92–93 expenses of, 76 in lazy portfolio, 167 REIT ETFs, 62 tax issues regarding, 68 trading volume of, 93 value of, when calculated, 72, 75 expense ratio, 90, 91 expenses and fees. See also college expenses; debts, personal; health care during retirement, 25–27, 177 for ETFs, 76 for 401(k) plans, 179 for 403(b) plans, 179 for index funds, 60 for mutual funds, 61, 74, 90–92, 98 12b-1 fees, 91 expenses, company, 106 F face amount of bonds.
Rigged Money: Beating Wall Street at Its Own Game by Lee Munson
affirmative action, asset allocation, backtesting, barriers to entry, Bernie Madoff, Bretton Woods, business cycle, buy and hold, buy low sell high, California gold rush, call centre, Credit Default Swap, diversification, diversified portfolio, estate planning, fiat currency, financial innovation, fixed income, Flash crash, follow your passion, German hyperinflation, High speed trading, housing crisis, index fund, joint-stock company, money market fund, moral hazard, Myron Scholes, passive investing, Ponzi scheme, price discovery process, random walk, risk tolerance, risk-adjusted returns, risk/return, stocks for the long run, stocks for the long term, too big to fail, trade route, Vanguard fund, walking around money
If the only form of compensation your money manager receives is the fees you pay him or her, you are on the right track. Does this mean that a person who makes money selling commission products is a horrible person? Not necessarily, but why take the chance if you don’t need to? Sure, there are some very specific reasons why you would need to generate a commission for an adviser. Some of the top reasons include the sale of insurance for estate planning purposes. While I don’t get involved in selling insurance directly, it is a normal part of high-end financial planning. In my experience, I see insurance products misused and improperly sold to unsuspecting investors. Insurance is a unique asset class since it is simply a contract with a corporation. After hundreds of years, there is still no way to access insurance products without generating a plain vanilla commission.
The Sociopath Next Door by Martha Stout
Chesterton This morning, Joe, a thirty-year-old attorney, is running five minutes late for an extremely important meeting that, with or without him, will start promptly at eight o'clock. He needs to keep up a good impression with the more senior members of his firm, which means just about everybody, and he would like to have the first word with these wealthy clients, whose concerns include Joe's budding specialty of estate planning. He has been preparing his agenda for days because he feels there is a lot at stake, and he very much wants to be in the conference room at the start of the meeting. Unfortunately, the furnace in Joe's town house suddenly stopped making heat in the middle of the night. Freezing and pacing, afraid the pipes would burst, he had to wait for the emergency repairman from the fuel company before he could leave for work this morning.
Investing Demystified: How to Invest Without Speculation and Sleepless Nights by Lars Kroijer
Andrei Shleifer, asset allocation, asset-backed security, Bernie Madoff, bitcoin, Black Swan, BRICs, Carmen Reinhart, cleantech, compound rate of return, credit crunch, diversification, diversified portfolio, equity premium, estate planning, fixed income, high net worth, implied volatility, index fund, intangible asset, invisible hand, Kenneth Rogoff, market bubble, money market fund, passive investing, pattern recognition, prediction markets, risk tolerance, risk/return, Robert Shiller, Robert Shiller, selection bias, sovereign wealth fund, too big to fail, transaction costs, Vanguard fund, yield curve, zero-coupon bond
Particularly those without a great amount of savings to see them through their remaining years typically have a far lower risk tolerance as there are fewer options to make up a shortfall if markets turn against them. At the risk of over-simplifying, if you don’t share the upside of having more savings (with limited years left to enjoy them), but would experience the painful downside, then don’t take risk and stay with minimal risk bonds. Of course estate planning and passing on assets to the next generation will play a major role here in terms of the exact structuring of your portfolio. Also think about what non-investment income you can expect in the form of company pensions, social security, etc. and compare that to your expected outgoings. The difference between the two will need to come from investment income, or liquidating part of your portfolio.
Choose Yourself! by James Altucher
Airbnb, Albert Einstein, Bernie Madoff, bitcoin, cashless society, cognitive bias, dark matter, Elon Musk, estate planning, Mark Zuckerberg, money market fund, Network effects, new economy, PageRank, passive income, pattern recognition, payday loans, Peter Thiel, Ponzi scheme, Rodney Brooks, rolodex, Saturday Night Live, sharing economy, short selling, side project, Silicon Valley, Skype, software as a service, Steve Jobs, superconnector, Uber for X, Vanguard fund, Y2K, Zipcar
How to set reasonable goals for different ages so you know you are on the right track. How to best function in your particular career track so as to maximize your chances of rising up the ladder of success to the highest point possible given your skills and talents. How to best fit into the cog of the enormous productivity machine that America was becoming so you can aspire to take advantage of the many opportunities. How to protect your assets (estate planning) so that your kids and their kids have a decent chance at continuing any legacy you might leave. When is it good to go into debt? And once in debt, what is a good debt reduction plan? What’s the role of inflation and how do you protect yourself against it so that it doesn’t eat into savings? How to keep track of everything in a convenient place (ledgers, software, etc.). And even How to define how much risk you can take, given your age, your income, your assets, and given that you have a certain level of allowed risk, how to take advantage of that risk to maybe invest differently based on the statistics accumulated over a relatively short period of human history.
How to Speak Money: What the Money People Say--And What It Really Means by John Lanchester
asset allocation, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, blood diamonds, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collective bargaining, commoditize, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Dava Sobel, David Graeber, disintermediation, double entry bookkeeping, en.wikipedia.org, estate planning, financial innovation, Flash crash, forward guidance, Gini coefficient, global reserve currency, high net worth, High speed trading, hindsight bias, income inequality, inflation targeting, interest rate swap, Isaac Newton, Jaron Lanier, joint-stock company, joint-stock limited liability company, Kodak vs Instagram, liquidity trap, London Interbank Offered Rate, London Whale, loss aversion, margin call, McJob, means of production, microcredit, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, negative equity, neoliberal agenda, New Urbanism, Nick Leeson, Nikolai Kondratiev, Nixon shock, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, plutocrats, Plutocrats, Ponzi scheme, purchasing power parity, pushing on a string, quantitative easing, random walk, rent-seeking, reserve currency, Richard Feynman, Right to Buy, road to serfdom, Ronald Reagan, Satoshi Nakamoto, security theater, shareholder value, Silicon Valley, six sigma, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, Steve Jobs, survivorship bias, The Chicago School, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trickle-down economics, Washington Consensus, wealth creators, working poor, yield curve
There are forty items on it, and they are hilarious, though perhaps you shouldn’t show them to your left-wing aunt if she’s suffering from high blood pressure: Russian sable fur coats from Bloomingdale’s, shirts from Turnbull and Asser, Gucci loafers, handmade John Lobb shoes, a year at Groton boarding school, a yacht, a horse, a pool, a Learjet, a Roller, a case of Dom Perignon, forty-five minutes at a psychiatrist’s on the Upper East Side (!), an hour’s estate planning with a lawyer, and, amusingly/annoyingly, a year at Harvard.36 In 2012, the CLEWI went up 2.6 percent but the CPI went up only 1.4 percent. That means the gap is narrowing! Oh wait, no it doesn’t. The net worth of the 400 richest people in America went up by 11 percent, from $1.53 trillion to $1.7 trillion. forward guidance A policy in which central banks say in advance what they are going to do, as a way of introducing greater levels of confidence into the market.
Going Solo: The Extraordinary Rise and Surprising Appeal of Living Alone by Eric Klinenberg
big-box store, carbon footprint, David Brooks, deindustrialization, deskilling, employer provided health coverage, equal pay for equal work, estate planning, fear of failure, financial independence, fixed income, Joseph Schumpeter, knowledge economy, longitudinal study, mass incarceration, New Urbanism, Ralph Waldo Emerson, rent control, Richard Florida, selection bias, Silicon Valley, Skype, speech recognition, women in the workforce, working poor, young professional
She started googling the topic, and within a few minutes she found that the AtMP Web site had answers for nearly all of her questions. “I also thought, ‘Wow! This is an incredible organization.’ It was the only place out there helping single people figure out the consequences of being unmarried. It’s not just access to health insurance. There are workplace discrimination issues, housing discrimination issues, estate planning issues, political issues, tax issues. And they had it all laid out for you. It was great.” As she scanned through the Web site, Grist noticed that the Alternatives to Marriage Project was looking for an executive director, and suddenly she started thinking that she might have found yet another excuse to leave her job. Even though the organization was based in Albany, where a young unmarried couple had founded it in 1998, Grist decided to apply anyway.
The Fourth Age: Smart Robots, Conscious Computers, and the Future of Humanity by Byron Reese
agricultural Revolution, AI winter, artificial general intelligence, basic income, Buckminster Fuller, business cycle, business process, Claude Shannon: information theory, clean water, cognitive bias, computer age, crowdsourcing, dark matter, Elon Musk, Eratosthenes, estate planning, financial independence, first square of the chessboard, first square of the chessboard / second half of the chessboard, full employment, Hans Rosling, income inequality, invention of agriculture, invention of movable type, invention of the printing press, invention of writing, Isaac Newton, Islamic Golden Age, James Hargreaves, job automation, Johannes Kepler, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Kevin Kelly, lateral thinking, life extension, Louis Pasteur, low skilled workers, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Mary Lou Jepsen, Moravec's paradox, On the Revolutions of the Heavenly Spheres, pattern recognition, profit motive, Ray Kurzweil, recommendation engine, Rodney Brooks, Sam Altman, self-driving car, Silicon Valley, Skype, spinning jenny, Stephen Hawking, Steve Wozniak, Steven Pinker, strong AI, technological singularity, telepresence, telepresence robot, The Future of Employment, the scientific method, Turing machine, Turing test, universal basic income, Von Neumann architecture, Wall-E, Watson beat the top human players on Jeopardy!, women in the workforce, working poor, Works Progress Administration, Y Combinator
Virtually any human can do all of this, without even thinking about it. But a human’s abilities lie not just in making a cake, but in the ten thousand other things we can all do, like spot when our spouse is in a bad mood or brush our teeth or ride a bicycle. We are vast storehouses of ability, all of us. But because one person can do those ten thousand things and another person can do those ten thousand things—and knows about estate planning—we say one is low skilled and one is high skilled. But this is not the case, as they both have 99 percent or more of the same skills. There is little difference from the computer’s point of view between a doctor and a dockworker. Each requires great pattern recognition, a huge amount of social context, and inductive and deductive reasoning. Further, each requires that you can interpret your own sensory inputs, speak a language fluently, turn a doorknob, and tie your own shoes.
Rigged: The True Story of an Ivy League Kid Who Changed the World of Oil, From Wall Street to Dubai by Ben Mezrich
By the end of the first day, he had been shifted from investment analysis to private banking. When he’d first heard the words, he’d thought maybe he was getting a break. Maybe he’d be meeting with celebrities and professional athletes and rich CEOs, discussing their investments. But he’d been dead wrong. His boss had him visiting old-age homes, sitting down with ninety-year-olds talking about retirement funds. He was spending his evenings reading up on IRAs and estate planning, and his days trucking across town to places he could only describe as death’s waiting rooms. It was quite literally the worst job he could have imagined. The only bright light in his professional life was that robin’segg-blue card taped to the underside of his cubicle. Every morning at 6:00 a.m., a full hour before the other first-years arrived, he took the card out, stared at the name and number, and hurried to the library to make that first phone call.
MONEY Master the Game: 7 Simple Steps to Financial Freedom by Tony Robbins
3D printing, active measures, activist fund / activist shareholder / activist investor, addicted to oil, affirmative action, Affordable Care Act / Obamacare, Albert Einstein, asset allocation, backtesting, bitcoin, buy and hold, clean water, cloud computing, corporate governance, corporate raider, correlation does not imply causation, Credit Default Swap, Dean Kamen, declining real wages, diversification, diversified portfolio, Donald Trump, estate planning, fear of failure, fiat currency, financial independence, fixed income, forensic accounting, high net worth, index fund, Internet of things, invention of the wheel, Jeff Bezos, Kenneth Rogoff, lake wobegon effect, Lao Tzu, London Interbank Offered Rate, market bubble, money market fund, mortgage debt, new economy, obamacare, offshore financial centre, oil shock, optical character recognition, Own Your Own Home, passive investing, profit motive, Ralph Waldo Emerson, random walk, Ray Kurzweil, Richard Thaler, risk tolerance, riskless arbitrage, Robert Shiller, Robert Shiller, self-driving car, shareholder value, Silicon Valley, Skype, Snapchat, sovereign wealth fund, stem cell, Steve Jobs, survivorship bias, telerobotics, the rule of 72, thinkpad, transaction costs, Upton Sinclair, Vanguard fund, World Values Survey, X Prize, Yogi Berra, young professional, zero-sum game
In addition, if you want assistance, you can always find an expensive attorney, but you can also use LegalZoom and set up one for as little as $250 with the help of its attorneys (www.legalzoom.com/living-trusts/living-trusts-overview.html). I’m including this reminder for you here because even though this book is not designed to be an estate-planning tool, one important responsibility we all have is to make sure that whatever wealth we build, however large or small it may be, our families benefit from it and don’t get stuck in a legal process that drains the gift from our heirs. As you begin to succeed, please seek out quality assistance when thinking about estate planning, but in the meantime, don’t wait to set up a living trust. Everyone needs one. * * * 22. In order to qualify for private placement life insurance, you must be an accredited investor. This means you must have a net worth of at least $1 million (not including the value of your primary residence), or you have an income of at least $200,000 each year for the last two years (or $300,000 combined with your spouse).
Groundswell: Winning in a World Transformed by Social Technologies by Charlene Li, Josh Bernoff
business process, call centre, centre right, citizen journalism, crowdsourcing, demand response, Donald Trump, estate planning, Firefox, John Markoff, Kickstarter, knowledge worker, Silicon Valley, skunkworks, social intelligence, Tony Hsieh
Unless you and your whole management team can answer with an unequivocal yes, then you might not be ready to energize the groundswell. 2. check the social technographics profile of your customers You need research to determine how actively and in what numbers your customers are participating in the groundswell. If you’re selling smart phones or baseball mitts—anything that skews young and technologically savvy—then your customers are already heavily into the groundswell, and you can expect them to take naturally to a collection of community and social features. If you’re selling mattresses or estate planning, then rein in your expectations accordingly—it’s no use starting a community if your best customers have the wrong profile and won’t be participating. 3. ask yourself, “what is my customer’s problem?” Remember, except in rare cases like Lego’s, communities don’t form around your products. If you have trouble believing this, just remember Procter & Gamble’s beinggirl.com community from chapter 6, which was built around girls’ problems, not feminine care products.
Composing a Further Life: The Age of Active Wisdom by Mary Catherine Bateson
affirmative action, Berlin Wall, Celebration, Florida, desegregation, double helix, estate planning, feminist movement, invention of writing, Ronald Reagan, Rosa Parks, sexual politics, Silicon Valley, Thomas Kuhn: the structure of scientific revolutions, urban renewal, War on Poverty, women in the workforce
Not the marriages of our daughter’s friends or the children of our contemporaries—those peaked out several years ago, although there are more to come, most of them after two or three years of living together. No, the marriages we are seeing today are marriages of people in their sixties and seventies, often after decades with the same partner but often, too, with someone new. Sometimes there are strong legal arguments for the decision, as estate planning becomes an issue, but what begins as a practicality often becomes an emotional turning point, and the word forever still retains its ancient force, both terrifying and reassuring, in the face of the need to make a new commitment or reaffirm an old one. After all, most of us have lived lives based on commitments made without any way of knowing where they would lead. The uncertainty is an essential element in commitment, the acceptance of consequences an essential element in fidelity.
Only Humans Need Apply: Winners and Losers in the Age of Smart Machines by Thomas H. Davenport, Julia Kirby
AI winter, Andy Kessler, artificial general intelligence, asset allocation, Automated Insights, autonomous vehicles, basic income, Baxter: Rethink Robotics, business intelligence, business process, call centre, carbon-based life, Clayton Christensen, clockwork universe, commoditize, conceptual framework, dark matter, David Brooks, deliberate practice, deskilling, digital map, disruptive innovation, Douglas Engelbart, Edward Lloyd's coffeehouse, Elon Musk, Erik Brynjolfsson, estate planning, fixed income, follow your passion, Frank Levy and Richard Murnane: The New Division of Labor, Freestyle chess, game design, general-purpose programming language, global pandemic, Google Glasses, Hans Lippershey, haute cuisine, income inequality, index fund, industrial robot, information retrieval, intermodal, Internet of things, inventory management, Isaac Newton, job automation, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joi Ito, Khan Academy, knowledge worker, labor-force participation, lifelogging, longitudinal study, loss aversion, Mark Zuckerberg, Narrative Science, natural language processing, Norbert Wiener, nuclear winter, pattern recognition, performance metric, Peter Thiel, precariat, quantitative trading / quantitative ﬁnance, Ray Kurzweil, Richard Feynman, risk tolerance, Robert Shiller, Robert Shiller, Rodney Brooks, Second Machine Age, self-driving car, Silicon Valley, six sigma, Skype, social intelligence, speech recognition, spinning jenny, statistical model, Stephen Hawking, Steve Jobs, Steve Wozniak, strong AI, superintelligent machines, supply-chain management, transaction costs, Tyler Cowen: Great Stagnation, Watson beat the top human players on Jeopardy!, Works Progress Administration, Zipcar
Stepping aside to perform tasks that computers don’t do well is a viable prospect for many financial advisors. Grant Easterbrook, who covered financial technology firms as an industry analyst (he’s now moved to a financial technology startup) told us that, while creating an investment portfolio is relatively easy to automate, it still requires a human touch to provide complex financial planning for individuals with substantial assets. Such broad planning includes tax planning, estate planning, life insurance, and other decisions that not only require nuanced information gathering but are also interrelated. Human advisors can “motivate the client to gather all of that information,” says Easterbrook, and correct for the fact that clients “are often overly optimistic about their finances and undisciplined about following up.” David Port, who has written on the rise of robo-advisors, also emphasizes the value of advisors who care about their clients’ goals.
Secrets of Sand Hill Road: Venture Capital and How to Get It by Scott Kupor
activist fund / activist shareholder / activist investor, Airbnb, Amazon Web Services, asset allocation, barriers to entry, Ben Horowitz, carried interest, cloud computing, corporate governance, cryptocurrency, discounted cash flows, diversification, diversified portfolio, estate planning, family office, fixed income, high net worth, index fund, information asymmetry, Lean Startup, low cost airline, Lyft, Marc Andreessen, Myron Scholes, Network effects, Paul Graham, pets.com, price stability, ride hailing / ride sharing, rolodex, Sand Hill Road, shareholder value, Silicon Valley, software as a service, sovereign wealth fund, Startup school, Travis Kalanick, uber lyft, VA Linux, Y Combinator, zero-sum game
The Right of First Refusal and Co-Sale Agreement will also contain a right of co-sale providing that before any such holder of Common Stock may sell any of his shares, he will first give the Investor an opportunity to participate in such sale on a basis proportionate to the amount of securities held by the seller and those held by the Investor. Such agreement shall contain exceptions for transfers to affiliates and transfers for estate planning purposes, but shall not include exceptions for any other transfers or pledges of stock. In addition, no stockholder shall be a party to any Stock Sale unless all holders of Preferred Stock are allowed to participate in such Stock Sale and the consideration received pursuant to such Stock Sale is allocated among the parties thereto as if such Stock Sale were a deemed liquidation event. A “Stock Sale” means any transaction, series of related transactions, or series of unrelated transactions in which a person or entity, or a group of affiliated (or otherwise related) persons or entities acquires more than fifty percent (50%) of the outstanding voting stock of the Company.
The Clash of the Cultures by John C. Bogle
asset allocation, buy and hold, collateralized debt obligation, commoditize, corporate governance, corporate social responsibility, Credit Default Swap, credit default swaps / collateralized debt obligations, diversification, diversified portfolio, estate planning, Eugene Fama: efficient market hypothesis, financial innovation, financial intermediation, fixed income, Flash crash, Hyman Minsky, income inequality, index fund, interest rate swap, invention of the wheel, market bubble, market clearing, money market fund, mortgage debt, new economy, Occupy movement, passive investing, Paul Samuelson, Ponzi scheme, post-work, principal–agent problem, profit motive, random walk, rent-seeking, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Shiller, shareholder value, short selling, South Sea Bubble, statistical arbitrage, survivorship bias, The Wealth of Nations by Adam Smith, transaction costs, Vanguard fund, William of Occam, zero-sum game
But I’m not at all sure that we are getting the right information to investors. We focus on past performance, knowing that, if it is not negatively correlated with future returns, the linkage is anything but causal. To earn their keep, advisers should focus their clients not on “picking winners” but on factors such as sound asset allocation, broad diversification, low cost, tax-efficiency, simplicity, and even estate planning. But when investors have already paid sales commissions to own the funds involved in the scandals—especially if they have done so recently—they should consider reinvesting in funds that don’t carry commissions. They’ve already bought the ticket for their investment voyage, and they shouldn’t have to buy it again. So they should seek out funds that meet the standards of stewardship that have been, to some degree at least, ignored in the funds they held.
Lonely Planet Jamaica by Lonely Planet
Foodie Tours To travel and taste at the same time, join a specialist culinary tour. Those offered by Jamaica Cultural Enterprises in Kingston and Falmouth Heritage Walks in Falmouth are particularly recommended. Stush in the Bush near Ochi Rios offers tours of their farm followed by sumptuous meals. Don't forget coffee tasting in the Blue Mountains, and the tours offered by the Appleton Rum Estate. Plan Your Trip Outdoor Activities Jamaica might be in the Caribbean, but it offers a lot more than just sunbathing on a beach, from mountain biking and rafting to horseback riding and birdwatching. Get a natural high hiking in the mountains, or dive below the waves to explore shipwrecks and coral. Best of the Best Best Wall Dive The Point Swimming amid sharks and shoals along this coral-clad seawall.
The Meritocracy Myth by Stephen J. McNamee
affirmative action, Affordable Care Act / Obamacare, American ideology, Bernie Madoff, British Empire, business cycle, collective bargaining, computer age, conceptual framework, corporate governance, deindustrialization, delayed gratification, demographic transition, desegregation, deskilling, equal pay for equal work, estate planning, failed state, fixed income, gender pay gap, Gini coefficient, glass ceiling, helicopter parent, income inequality, informal economy, invisible hand, job automation, joint-stock company, labor-force participation, longitudinal study, low-wage service sector, marginal employment, Mark Zuckerberg, mortgage debt, mortgage tax deduction, new economy, New Urbanism, obamacare, occupational segregation, old-boy network, pink-collar, plutocrats, Plutocrats, Ponzi scheme, post-industrial society, prediction markets, profit motive, race to the bottom, random walk, school choice, Scientific racism, Steve Jobs, The Bell Curve by Richard Herrnstein and Charles Murray, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, upwardly mobile, We are the 99%, white flight, young professional
That means that only individuals receiving inheritances of more than $5.12 million and for couples $10 million (easily less than 1 percent of all estates) will be subject to an inheritance tax over that amount at a rate of 40 percent. Assets left to a surviving spouse or charitable organizations are not generally subject to estate taxation. In addition, estate taxation can be avoided or drastically reduced through inter vivos giving and careful estate planning. States can also level estate taxes independent of federal estate tax, but only about 20 percent of all states have any estate tax, often with complicated provisions for exemptions and exclusions. In short, existing estate taxes are currently not large enough and do not affect enough of the total amount of wealth transferred intergenerationally to make much difference in reducing the nonmerit effects of inheritance on who gets what and how much.
file:///C:/Documents%20and%... by vpavan
accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, asset allocation, Berlin Wall, business cycle, buttonwood tree, buy and hold, corporate governance, corporate raider, disintermediation, diversification, diversified portfolio, Donald Trump, estate planning, fixed income, index fund, intangible asset, interest rate swap, margin call, money market fund, Myron Scholes, new economy, price discovery process, profit motive, risk tolerance, shareholder value, short selling, Silicon Valley, Small Order Execution System, Steve Jobs, stocks for the long run, stocks for the long term, technology bubble, transaction costs, Vanguard fund, women in the workforce, zero-coupon bond, éminence grise
There are different kinds of investment advisers, depending on their qualifications and how they are paid. Most investment advisers charge fees, which can be an hourly rate, an annual figure, a percentage of your assets, or a fee-plus-commissions. I recommend you find a certified financial planner (CFP)— someone who takes a holistic approach to your finances— if you want your adviser to consider your retirement, insurance, tax, and estate-planning needs. You can obtain a list of CFPs near you through the Financial Planning Association (www.fpanet.org/plannersearch). Members must pass a proficiency test and keep up with continuing education requirements. Financial planners who are members of the National Association of Personal Financial Advisors (www.napfa.org) also must pass an exam, but in addition they submit their work to peer review and are not supposed to charge anything but a fee.
The Four Pillars of Investing: Lessons for Building a Winning Portfolio by William J. Bernstein
asset allocation, Bretton Woods, British Empire, business cycle, butter production in bangladesh, buy and hold, buy low sell high, carried interest, corporate governance, cuban missile crisis, Daniel Kahneman / Amos Tversky, Dava Sobel, diversification, diversified portfolio, Edmond Halley, equity premium, estate planning, Eugene Fama: efficient market hypothesis, financial independence, financial innovation, fixed income, George Santayana, German hyperinflation, high net worth, hindsight bias, Hyman Minsky, index fund, invention of the telegraph, Isaac Newton, John Harrison: Longitude, Long Term Capital Management, loss aversion, market bubble, mental accounting, money market fund, mortgage debt, new economy, pattern recognition, Paul Samuelson, quantitative easing, railway mania, random walk, Richard Thaler, risk tolerance, risk/return, Robert Shiller, Robert Shiller, South Sea Bubble, stocks for the long run, stocks for the long term, survivorship bias, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the rule of 72, transaction costs, Vanguard fund, yield curve, zero-sum game
Another interesting fact: The average plumber retires far sooner than the average lawyer, even though lawyers make more money than plumbers. Why? Because the attorney “must” drive a nicer car, live in a nicer part of town, buy more expensive clothes, and take more exotic vacations than the plumber. The message is obvious. The easiest way to get rich is to spend as little as possible. Other Goals This book is not intended as a financial planning guide; topics such as mortgages, debt management, insurance, and estate planning are well beyond its brief. But there are a few financial planning topics pertaining to basic portfolio mechanics and financial theory that are worth mentioning: Emergencies. This falls under the mantra of the financial planner: “five years, five years, five years.” That is, you should not put any money at risk that will be needed within five years. In addition, you should have at least six months of living expenses on hand in safe liquid assets—short-term bonds, CDs, money market, checking, and savings accounts.
The Metropolitan Revolution: The Rise of Post-Urban America by Jon C. Teaford
anti-communist, big-box store, conceptual framework, desegregation, Detroit bankruptcy, East Village, edge city, estate planning, Golden Gate Park, Gunnar Myrdal, Haight Ashbury, housing crisis, illegal immigration, Jane Jacobs, Joan Didion, low skilled workers, manufacturing employment, Nelson Mandela, New Urbanism, plutocrats, Plutocrats, Potemkin village, rent control, Seaside, Florida, Silicon Valley, the built environment, The Death and Life of Great American Cities, upwardly mobile, urban planning, urban renewal, urban sprawl, Victor Gruen, War on Poverty, women in the workforce, young professional
“He Digs Downtown,” Time, 24 August 1981, p. 42. 50. Breckenfeld, “Jim Rouse Shows How to Give Downtown Retailing New Life,” p. 91. 51. Gurney Breckenfeld, “The Rouse Show Goes National,” Fortune, 27 July 1981, pp. 50–51. 52. John T. Metzger, “The Failed Promise of a Festival Marketplace: South Street Seaport in Lower Manhattan,” Planning Perspectives 16 (2001): 25–46. 53. William Fulton, “The Robin Hood of Real Estate,” Planning, May 1985, p. 7. 54. New York Times, 11 June 1989, sec. 1, p. 26; 16 June 1989, p. A3. 55. Bernard J. Frieden and Lynne B. Sagalyn, Downtown, Inc.: How America Rebuilds Cities (Cambridge, Mass.: MIT Press, 1989), 179–80. 56. Nicole Achs, “Putting the Fun(ds) Back in Downtown,” American City and County, June 1991, p. 75; “Jim Rouse May Be Losing His Touch,” Business Week, 4 April 1988, p. 33. 57.
Dark Towers: Deutsche Bank, Donald Trump, and an Epic Trail of Destruction by David Enrich
Affordable Care Act / Obamacare, anti-globalists, Asian financial crisis, banking crisis, Berlin Wall, buy low sell high, collateralized debt obligation, commoditize, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, Donald Trump, East Village, estate planning, Fall of the Berlin Wall, financial innovation, forensic accounting, high net worth, housing crisis, interest rate derivative, interest rate swap, Jeffrey Epstein, London Interbank Offered Rate, Lyft, Mikhail Gorbachev, NetJets, obamacare, offshore financial centre, post-materialism, Ralph Waldo Emerson, Renaissance Technologies, risk tolerance, Robert Mercer, rolodex, sovereign wealth fund, too big to fail, transcontinental railway, yield curve
“This is him,” she whispered, nodding in Bill’s direction. “I haven’t seen my father like this since Edson.” Late that summer, Bill and Alla invited Scott up to their place in Maine. They spent the day drinking and reminiscing, the old family bond now restored. Broeksmit joked about how he had dodged a bullet by not getting the chief risk officer gig. He said he was contemplating a third and final retirement. He asked about estate planning. He kept saying how much he still missed Edson. Scott was a keen student of the banking industry, especially when it came to the institution that his father had helped build. He asked Bill what would have happened with Deutsche if Edson hadn’t died. Would it be in better or in worse shape today? Bill paused for a moment, tugging at his eyebrow the way he did when he was deep in thought. “We would’ve made less money during the boom,” he eventually answered.
Uneasy Street: The Anxieties of Affluence by Rachel Sherman
American ideology, Bernie Sanders, Capital in the Twenty-First Century by Thomas Piketty, deindustrialization, Donald Trump, estate planning, financial independence, gig economy, high net worth, income inequality, Mark Zuckerberg, McMansion, mental accounting, NetJets, new economy, Occupy movement, plutocrats, Plutocrats, precariat, school choice, sharing economy, Silicon Valley, Steve Jobs, The Spirit Level, Thorstein Veblen, transaction costs, upwardly mobile, We are the 99%, women in the workforce, working poor
Even progressives, who advocated higher taxes for the wealthy in general, took advantage of rules permitting untaxed annual gifts under a certain amount from older generations to younger ones as a way to minimize estate taxes when the older relatives die. Similarly, grandparents often paid for the private schools of their grandchildren (this was common in the families of those I interviewed) as a way of passing on wealth without paying taxes. Sara, who otherwise believed in paying taxes, called this practice “just good estate planning.” GIVING BACK OR GIVING UP? Most of the people I talked with resembled wealthy people who have been studied by other researchers, for whom giving back does not challenge structural inequalities in any way. These are people who mostly have faith in the system, as Frances asserts in the opening quote (“I do believe in a market economy”). They acknowledge disparity but take it as given—beyond the control, and thus the responsibility, of the beneficiary.
Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher
business climate, business cycle, buy and hold, El Camino Real, estate planning, fixed income, index fund, market bubble, market fundamentalism, profit motive, RAND corporation, the market place, transaction costs
Heller was a successful stock market investor, an overall businessman, and a venture capitalist and may have been the man Father admired most until the early 1950's. Heller died soon thereafter. Frank Sloss shared a room with Father at Stanford, and they remained close ever after and, hereto, Frank married a cousin and Father and Frank remained close until Frank died in the 1980's. Frank was what today we call an estate planning attorney in San Francisco and did most of Father's non-securities legal work until Frank died; and in that way they spoke often. But they saw little of each other otherwise. Louis Lengfeld was himself a distant relative and a client of father for many years, and they often commuted together into San Francisco. I saw him far more often than the others because he lived close by and picked father up to commute together on the train.
Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else by Chrystia Freeland
activist fund / activist shareholder / activist investor, Albert Einstein, algorithmic trading, assortative mating, banking crisis, barriers to entry, Basel III, battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Boris Johnson, Branko Milanovic, Bretton Woods, BRICs, business climate, call centre, carried interest, Cass Sunstein, Clayton Christensen, collapse of Lehman Brothers, commoditize, conceptual framework, corporate governance, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Deng Xiaoping, disruptive innovation, don't be evil, double helix, energy security, estate planning, experimental subject, financial deregulation, financial innovation, Flash crash, Frank Gehry, Gini coefficient, global village, Goldman Sachs: Vampire Squid, Gordon Gekko, Guggenheim Bilbao, haute couture, high net worth, income inequality, invention of the steam engine, job automation, John Markoff, joint-stock company, Joseph Schumpeter, knowledge economy, knowledge worker, liberation theology, light touch regulation, linear programming, London Whale, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mikhail Gorbachev, Moneyball by Michael Lewis explains big data, NetJets, new economy, Occupy movement, open economy, Peter Thiel, place-making, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, postindustrial economy, Potemkin village, profit motive, purchasing power parity, race to the bottom, rent-seeking, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, self-driving car, short selling, Silicon Valley, Silicon Valley startup, Simon Kuznets, Solar eclipse in 1919, sovereign wealth fund, starchitect, stem cell, Steve Jobs, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tony Hsieh, too big to fail, trade route, trickle-down economics, Tyler Cowen: Great Stagnation, wage slave, Washington Consensus, winner-take-all economy, zero-sum game
Tired of being dragged down by the parasitic, envious, and less talented lower classes, Galt and his fellow capitalists revolt, retreating to “Galt’s Gulch,” a refuge in the Rocky Mountains. There, they pass their days in secluded splendor, while the rest of the world, bereft of their genius and hard work, collapses. That was, of course, a fiction, and one with as much bodice ripping as economics. But versions of Galt’s Gulch are starting to show up in more sober venues. James Duggan, a founding principal of a Chicago firm of tax and estate planning lawyers, believes “wealth is fleeing the country.” Some of the self-exiled rich are, Mr. Duggan argues, “conscientious objectors”: “There are those who are simply going offshore to make a statement. Their level of discontent with the current circumstances in our country, coupled with attacks on the wealthy, has created a distinct sense of rebellion among many wealthy citizens. While they may love the country, they are objecting to the current trends and responding by moving themselves or their assets, or both, away from the cause of the problem.”
Why Do I Love These People?: Understanding, Surviving, and Creating Your Own Family by Po Bronson
Kathy said, “When we were kids, we thought our dad was just like all the other farmers here. Now, finally—his gift is truly apparent.” The surprise success of Matsui Nursery has made Andy reconsider what he ought to do with it. Should he leave it to his children after all? But what do they know about farming? He discussed the possibility with Teresa, but he quickly realized that bringing someone without experience into the business would doom it. When he began to look into estate planning, he discovered that dying is more trouble than living. He didn't want to burden his children with the mess of selling off parts of the business to pay the taxes. “Whom do I really owe?” he wondered. “To whom am I indebted?” The answer was in his heart. He loved his company and the 160 people who worked for him, most of whom were Mexican immigrants in the very situation he was in forty years ago.
Factory Girls: From Village to City in a Changing China by Leslie T. Chang
anti-communist, Deng Xiaoping, estate planning, financial independence, index card, invention of writing, job-hopping, land reform, Mason jar, mass immigration, new economy, Pearl River Delta, risk tolerance, special economic zone
One of the assistants was young and soft-spoken; the other, Xiang Yang, was a middle-aged woman of imposing bulk, with a red face and a fur hat with aggressive-looking bristles. Both women were single, and they appeared to be working at the company in part to advance their marriage prospects. The managing director planned to set up matchmaking offices around the city using a franchise model. But from his business card I learned that he was also hedging his bets. COMPREHENSIVE PLANNING TOURISM BUSINESS REAL ESTATE PLANNING TUTORS AND HOUSEKEEPERS LICENSE APPLICATION AGENCY CREATIVE DESIGN ARTS TRAINING MARKETING AGENCY PROPERTY AGENCY ANNUAL ASSET INSPECTIONS CIS INPUT RITES AND CEREMONIES HEADHUNTING LEGAL CONSULTING FINANCIAL ACCOUNTS MANAGEMENT CONSULTING WEDDING PLANNING JOBS CENTER CIVIL INVESTIGATIONS TAX AUDITING As we were talking, a middle-aged woman walked in off the street to inquire about the club’s services.
The Village Effect: How Face-To-Face Contact Can Make Us Healthier, Happier, and Smarter by Susan Pinker
assortative mating, Atul Gawande, Bernie Madoff, call centre, cognitive dissonance, David Brooks, delayed gratification, Edward Glaeser, epigenetics, Erik Brynjolfsson, estate planning, facts on the ground, game design, happiness index / gross national happiness, indoor plumbing, invisible hand, Kickstarter, longitudinal study, Mark Zuckerberg, medical residency, Menlo Park, meta analysis, meta-analysis, neurotypical, Occupy movement, old-boy network, place-making, Ponzi scheme, Ralph Waldo Emerson, randomized controlled trial, Ray Oldenburg, Silicon Valley, Skype, social intelligence, Stanford marshmallow experiment, Steven Pinker, The Great Good Place, The Wisdom of Crowds, theory of mind, Tony Hsieh, urban planning, Yogi Berra
But he and Nelles’s father had had a falling out in the early nineties. Until he approached them at the funeral, Ginny and the rest of the family hadn’t seen much of him for ten years. Reminding the siblings that he was an estate planner, Jones told them, “If I can help you in any way, I’m here for you.” He reassured Ginny’s mother, Wendy, “Don’t worry. I’ll take care of you.” Five days after the funeral, Jones persuaded Wendy Nelles to move her husband’s estate planning from the bank to Jones’s own account. “He told her ScotiaBank wasn’t doing much with the money and that the laws had changed. He was a vulture. He swooped in,” Ginny said ruefully. Four years after that, Jones persuaded Wendy to remortgage her paid-off home for $327,000—to be paid off over forty years. The money was ostensibly invested in her account with Earl to give her an immediate high rate of return; Wendy wanted to share this income with her children and grandchildren.
In-N-Out Burger by Stacy Perman
anti-communist, British Empire, commoditize, corporate raider, El Camino Real, estate planning, forensic accounting, Haight Ashbury, Maui Hawaii, McJob, McMansion, new economy, Ronald Reagan, Silicon Valley, Upton Sinclair
In the event that Rich died without any living descendants, the majority shares of the trust—in effect the majority of In-N-Out—were to be transferred to Guy Snyder. Rich and Christina did not have any children of their own, and Rich had not adopted his wife’s daughter, Siobhan. Among the many tragedies and pieces of unfinished business that resulted from the crash was the fact that Phil West was onboard the Westwind that day; that was the crucial event that turned control of the company over to Guy. The matrix of trusts and estate planning instruments created to protect In-N-Out and ensure its succession through Rich unraveled. West was named as the successor trustee of the Esther L. Snyder Trust after Rich, as well as a cotrustee of Rich’s own trust. Had he not died on the plane, West would have administered the majority of the company shares that comprised the core of that trust, set to roll over in three years. Regardless of the buyout, the move would have prevented Guy from gaining control over the company.
The Investment Checklist: The Art of In-Depth Research by Michael Shearn
Asian financial crisis, barriers to entry, business cycle, call centre, Clayton Christensen, collective bargaining, commoditize, compound rate of return, Credit Default Swap, estate planning, intangible asset, Jeff Bezos, London Interbank Offered Rate, margin call, Mark Zuckerberg, money market fund, Network effects, pink-collar, risk tolerance, shareholder value, six sigma, Skype, Steve Jobs, supply-chain management, technology bubble, time value of money, transaction costs, urban planning, women in the workforce, young professional
Owner-Operator 3 (OO3) OO3 managers are owner-operators who are passionate about the business but primarily run the business for their own benefit. They do not take shareholder interests into consideration and will often siphon off profits to themselves through egregiously large compensation packages. You can usually identify these types of managers by viewing the Related-Party-Transaction section found in the company’s proxy statement, where you might find such items as personal use of company aircraft, estate planning, personal or home security, and real estate that is owned by the CEO and then leased to the business. For example, in one business, the company’s founder received a loan from the business that bore an interest rate of 1 percent over prime to buy a personal aircraft. Another CEO was reimbursed more than $2.6 million a year for security expenses. Both CEOs of these firms could easily afford to pay for these luxuries out of their own pockets, but they used the company to pay for them.
Everybody's Guide to Small Claims Court by Ralph E. Warner
The federal government may not be sued in any state court without its consent. Suits against the federal government normally must be filed in federal district court. I. How to Sue the Estates of Deceased People Death does not prevent lawsuits from being brought and judgments from being collected against the deceased’s estate. However, it does present a number of technical legal hurdles. Assuming the defendant made a will (or died without a will or other estate planning device such as a living trust), a probate proceeding will be held. All claims against the estate should be made promptly, in writing, to the personal representative of the deceased person’s estate and directly 130 everybody’s guide to small claims court to the probate court. If the personal representative knows about the debt owed to you, you should receive a formal notice to file your claim—but this won’t happen if your debt isn’t known.
The New Enclosure: The Appropriation of Public Land in Neoliberal Britain by Brett Christophers
Boris Johnson, Capital in the Twenty-First Century by Thomas Piketty, Corn Laws, credit crunch, cross-subsidies, Diane Coyle, estate planning, ghettoisation, Hernando de Soto, housing crisis, income inequality, invisible hand, land reform, land tenure, land value tax, late capitalism, market clearing, Martin Wolf, New Journalism, New Urbanism, off grid, offshore financial centre, performance metric, Philip Mirowski, price mechanism, price stability, profit motive, Right to Buy, Skype, sovereign wealth fund, special economic zone, the built environment, The Wealth of Nations by Adam Smith, Thorstein Veblen, urban sprawl, wealth creators
Naylor explicitly bemoaned in his report not only the NHS’s own such reliance in estate matters, but also the long-term evisceration of internal NHS property-related expertise that had brought about this reliance, and what he saw as the attendant planning ‘deficiencies’: Those with long memories will recollect that the various estate functions, particularly building and engineering, were well represented at the senior levels of regional, area and district health authorities during much of the history of the NHS. Successive reorganisations of the NHS have seriously eroded these capabilities to the extent that they hardly exist today. This has resulted in substantial reliance on external advice and serious deficiencies in strategic estate planning.3 As well as advising central government and other public bodies on land disposal, private-sector actors have, often at Whitehall’s behest, also become increasingly involved in the direct planning and handling of disposal, thus expanding the sphere of their influence. In 2014, for example, when the Metropolitan Police in London set about trimming its 671-property estate by in the region of 30 per cent (by area), with more than 100 separate properties to be sold in a bonanza expected to raise over £300 million, marketing was only one of the many functions relinquished to the private sector.
To Serve God and Wal-Mart: The Making of Christian Free Enterprise by Bethany Moreton
affirmative action, American Legislative Exchange Council, anti-communist, Berlin Wall, big-box store, Bretton Woods, Buckminster Fuller, collective bargaining, corporate personhood, creative destruction, deindustrialization, desegregation, Donald Trump, estate planning, Fall of the Berlin Wall, Frederick Winslow Taylor, George Gilder, global village, informal economy, invisible hand, liberation theology, longitudinal study, market fundamentalism, Mont Pelerin Society, mortgage tax deduction, Naomi Klein, new economy, post-industrial society, postindustrial economy, prediction markets, price anchoring, Ralph Nader, RFID, road to serfdom, Ronald Reagan, Silicon Valley, Stewart Brand, strikebreaker, The Wealth of Nations by Adam Smith, union organizing, walkable city, Washington Consensus, white flight, Whole Earth Catalog, Works Progress Administration
The government, Benson recalled in disgust, could not protect the missionaries, and even “Chinese businessmen lived in constant fear of being captured and held for ransom.”90 Benson returned to the United States with a new appreciation for his home 164 EVANGELIZING FOR FREE E N T ERPRI S E country and undertook to train missionaries at Harding College.91 When the institution’s presidency was offered to him in the midst of theÂ€ Depression, he put the fundraising experience he had learned in mission work at the disposal of the seriously indebted, struggling little campus. Benson’s new cause quickly came to the attention of Clinton Davidson, a co-Â�religionist from Kentucky who made a fortune selling life Â�insurance to wealthy New Yorkers. Inspired by his reading of the Bible as a fiÂ�nanÂ�cial manual, Davidson went on to plan the ultimate disposition of estates totaling over 3 billion dollars. Through his connections to Davidson’s Estate Planning Corporation, Benson began “selling” Harding to men like Lammot du Pont and Alfred Sloan as a good buy for their potential donations.92 As a way of cultivating business support, he started inviting executives to campus as speakers. In 1941, lobbyist friends of Davidson’s arranged for George Benson to testify before the House Ways and Means Committee, then weighing proposed tax increases as defense expenses loomed.
All the Money in the World by Peter W. Bernstein
Albert Einstein, anti-communist, Berlin Wall, Bill Gates: Altair 8800, call centre, Charles Lindbergh, corporate governance, corporate raider, creative destruction, currency peg, David Brooks, Donald Trump, estate planning, family office, financial innovation, George Gilder, high net worth, invisible hand, Irwin Jacobs: Qualcomm, Jeff Bezos, job automation, job-hopping, John Markoff, Long Term Capital Management, Marc Andreessen, Martin Wolf, Maui Hawaii, means of production, mega-rich, Menlo Park, Mikhail Gorbachev, new economy, Norman Mailer, PageRank, Peter Singer: altruism, pez dispenser, popular electronics, Renaissance Technologies, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, Sand Hill Road, school vouchers, Search for Extraterrestrial Intelligence, shareholder value, Silicon Valley, Silicon Valley startup, stem cell, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, the new new thing, Thorstein Veblen, too big to fail, traveling salesman, urban planning, wealth creators, William Shockley: the traitorous eight, women in the workforce
., classic $1,875 Loafers: Gucci $410 Shirts: 1 dozen cotton, bespoke, Turnbull & Asser, London $3,600 Shoes: Men’s black calf wing tip, custom-made, John Lobb, London $4,128 School: Preparatory, Groton, 1-year tuition, room, board $39,850 University: Harvard, 1-year tuition, room, board, insurance $43,655 Catered dinner: For 40, Ridgewell’s, Bethesda, MD $7,469 Opera: 2 tickets, 8 performances, Metropolitan Opera, Saturday night, parterre box $5,440 Caviar: Tsar imperial beluga, 1 kilo, Petrossian, Los Angeles, CA $7,600 Champagne: Dom Perignon, case, Sherry-Lehmann, NY $1,559 Filet mignon: 7 pounds, Lobel’s, NY $231 Dinner at La Tour d’Argent: Paris, estimated per person (including wine and tip) $402 Piano: Steinway & Sons, concert grand, Model D, ebonized $103,400 Flowers in season: Arrangements for 6 rooms, changed weekly, Christatos & Koster, NY, per month $8,175 Sheets: Set of linen lace Figna, Pratesi, queen-size $3,940 Silverware: Lenox, Williamsburg Shell pattern, 4-piece place setting for 12 $5,424 Hotel: 2-bedroom suite, Four Seasons, NY $3,450 Face-lift: American Academy of Facial Plastic & Reconstructive Surgery $14,500 Hospital: VIP, Washington Hospital Center, Washington, D.C., 1 day, concierge, security, gourmet meals $1,315 Psychiatrist: Upper East Side, NY, 45 minutes, standard fee $300 Lawyer: Established NY firm, Schlesinger, Gannon & Lazettra, average hourly fee for estate planning by partner $750 Spa: The Golden Door, California, basic weekly unit $7,500 Perfume: 1 oz. Joy, by Jean Patou $400 Sauna: Finnleo Sauna and Steam, 8-by-10-by-7 feet, 8-person, Nordic Spruce/Abachi $14,580 Motor yacht: Hatteras 80 (with 1550-HP CAT C-30s) $4,870,000 Sailing yacht: Nautor’s Swan 70 $4,070,661 Shotguns: Pair of James Purdey & Sons (12 gauge Side-by-Side), Griffin & Howe, Bernardsville, NJ, & Greenwich, CT $185,655 Thoroughbred: Yearling, average price, Fasig-Tipton Saratoga summer select sale $323,731 Swimming pool: Olympic (50 meters) Mission Pools, Escondido, CA $1,312,500 Tennis court: Clay, Putnam Tennis and Recreation, Harwinton, CT $55,000 Train set: Christmas Passenger starter set, LGB, at Miller’s Toys, NY $400 Airplane: Learjet 40XR, standard equipment, certified, 7 passengers $8,750,000 Helicopter: Sikorsky S-76C++, VIP options $11,000,000 Automobile: Rolls-Royce Phantom $333,350 Telephone call (without calling plan): 10 minutes, AT&T, NY–London $30 Cigars: Aniversario No. 1, Dominican Republic, 25 cigars, Davidoff, NY $708 Magazine: Forbes, 1-year subscription $60 Duffel bag: Louis Vuitton, Keepall Bandouliere, 55 centimeters $1,060 Watch: Patek Philippe classic men’s gold, leather strap (Ref#3520 yellow gold on leather strap) $17,600 Purse: Hermès, Kelly Bag, calfskin, rigid, 28 centimeters $6,250 * * * In Veblen’s day12, when the Vanderbilt family was at the pinnacle of New York society, perhaps the most visible sign of wealth and power was the handful of enormous mansions built by the family along New York’s prestigious Fifth Avenue, as well as a half dozen spectacular holiday homes in the countryside, plus a private railroad car for travel.
Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market by Daniel Reingold, Jennifer Reingold
barriers to entry, Berlin Wall, corporate governance, estate planning, Fall of the Berlin Wall, fixed income, George Gilder, high net worth, informal economy, margin call, mass immigration, new economy, pets.com, Robert Metcalfe, rolodex, Saturday Night Live, shareholder value, short selling, Silicon Valley, stem cell, Telecommunications Act of 1996, thinkpad, traveling salesman, undersea cable
Fidelity Investments, the world’s largest mutual fund manager, wasn’t a big fan of mine. Or more accurately, the new telecom analyst there, Nick Thakore, wasn’t. Nick was a young, very smart MBA from Wharton who a year earlier had replaced Abby Johnson as Fidelity’s telecom specialist. Abby, the daughter of Fidelity’s founder, Ned Johnson, became president of Fidelity Management & Research Co. in 2001 and is now worth roughly $12 billion, thanks to her dad’s astute estate planning. Not bad for a former telecom analyst. In the spring of 1997, I went to visit Thakore during one of my Boston marketing trips and found myself being ripped a new one by this 20-something man-child. Mark Kastan remained the lead analyst on WorldCom, rating it Neutral. I agreed with Mark’s caution about WorldCom. Mark also felt strongly, as I did, that the Baby Bells’ entry into long distance was going to hurt all the existing long distance players, including WorldCom.
The Men Who United the States: America's Explorers, Inventors, Eccentrics and Mavericks, and the Creation of One Nation, Indivisible by Simon Winchester
British Empire, Charles Lindbergh, clean water, colonial rule, discovery of the americas, distributed generation, Donner party, estate planning, Etonian, full employment, Hernando de Soto, hive mind, invention of radio, invention of the telegraph, James Watt: steam engine, Joi Ito, Khyber Pass, Menlo Park, plutocrats, Plutocrats, transcontinental railway, Works Progress Administration
Scores of millions of cattle could be farmed in the prairies. “The destiny of the American people is to subdue the continent,” he declared—and anyone and anything who stood in the way, be they Sioux or be they buffalo, could be swept aside. He was a firm believer in the climatologically nonsensical theory that “rains follow the plow.”* And with this as his principal sales pitch, he peddled huge acreages of Western real estate—planning cities like Gilpintown and Centropolis, which in fact never got built—and made millions out of the gullible and the hopeful. He died in Denver, a very rich man. Then there was a sometime imposter and mountebank named Samuel Adams, who almost managed to wheedle $20,000 from the US Congress as compensation for the hazards of an expedition he supposedly took along the Colorado, from which he sent back reports filled with blatant absurdities.
Not Working by Blanchflower, David G.
active measures, affirmative action, Affordable Care Act / Obamacare, Albert Einstein, bank run, banking crisis, basic income, Berlin Wall, Bernie Madoff, Bernie Sanders, Black Swan, Boris Johnson, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Clapham omnibus, collective bargaining, correlation does not imply causation, credit crunch, declining real wages, deindustrialization, Donald Trump, estate planning, Fall of the Berlin Wall, full employment, George Akerlof, gig economy, Gini coefficient, Growth in a Time of Debt, illegal immigration, income inequality, indoor plumbing, inflation targeting, job satisfaction, John Bercow, Kenneth Rogoff, labor-force participation, liquidationism / Banker’s doctrine / the Treasury view, longitudinal study, low skilled workers, manufacturing employment, Mark Zuckerberg, market clearing, Martin Wolf, mass incarceration, meta analysis, meta-analysis, moral hazard, Nate Silver, negative equity, new economy, Northern Rock, obamacare, oil shock, open borders, Own Your Own Home, p-value, Panamax, pension reform, plutocrats, Plutocrats, post-materialism, price stability, prisoner's dilemma, quantitative easing, rent control, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, selection bias, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, South Sea Bubble, Thorstein Veblen, trade liberalization, universal basic income, University of East Anglia, urban planning, working poor, working-age population, yield curve
It is traditional for Dartmouth freshmen returning from their trips in the New Hampshire wilderness to stay overnight at our Moosilauke Ravine Lodge in the White Mountains and to be served green eggs and ham for breakfast in honor of Dr. Seuss. Nice. The Geisels, the most important philanthropists in Dartmouth’s history, were generous donors to the school during Theodore Geisel’s lifetime and made significant provision for the college in their estate plans, reflecting the wealth generated by the beloved stories of Dr. Seuss (over 3.5 million hardback books sold in 2015 alone). 47 Dartmouth now has the Geisel School of Medicine. Forbes reported that Theodore Geisel is the eighth-highest-earning deceased celebrity with earnings of $16 million in 2017 after Prince (7), Tom Petty (6), Bob Marley (5), Elvis Presley (4), Charles Schulz (3), Arnold Palmer (2), and Michael Jackson (1). 48 Where are the other great, living philanthropists besides Bill and Melinda Gates, Mark Zuckerberg, and Warren Buffett?
Mr Five Per Cent: The Many Lives of Calouste Gulbenkian, the World's Richest Man by Jonathan Conlin
accounting loophole / creative accounting, anti-communist, banking crisis, British Empire, carried interest, Ernest Rutherford, estate planning, Fellow of the Royal Society, light touch regulation, MITM: man-in-the-middle, Network effects, Pierre-Simon Laplace, rent-seeking, stakhanovite, Yom Kippur War
The key point as far as Nubar was concerned was to ensure that Radcliffe accepted the chairmanship. If the Portuguese government insisted on a minimum share, then Nubar advocated the creation of a separate Portuguese foundation to which that share could be ceded by a parent foundation to be established elsewhere.25 Kevork’s statement was characteristically modest in noting that he had not been party to his father-in-law’s estate planning. It was nonetheless clear to him that Gulbenkian had put his trust in Radcliffe, and that Gulbenkian expected ‘members of his family to take great heed of [Radcliffe’s] guidance and advice in the solution of our problems’. Kevork therefore supported Radcliffe’s position.26 This may have disappointed Perdigão, who had previously written appreciatively to Salazar of how Kevork was ‘the loyal collaborator of the Portuguese trustee [that is, Perdigão himself ]’.27 Perdigão did not shift his position, writing to Radcliffe that the government insisted on a Portuguese majority and a minimum 33 per cent of grants as their quid pro quo for registering the foundation as a tax-exempt philanthropic organisation.
The Billionaire's Apprentice: The Rise of the Indian-American Elite and the Fall of the Galleon Hedge Fund by Anita Raghavan
airport security, Asian financial crisis, asset allocation, Bernie Madoff, British Empire, business intelligence, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, delayed gratification, estate planning, Etonian, glass ceiling, high net worth, kremlinology, locking in a profit, Long Term Capital Management, Marc Andreessen, mass immigration, McMansion, medical residency, Menlo Park, new economy, old-boy network, Ponzi scheme, risk tolerance, rolodex, Ronald Reagan, short selling, Silicon Valley, sovereign wealth fund, stem cell, technology bubble, too big to fail
Morgan private banker who met with the Guptas in April 2008. Webster’s notes, taken during a meeting in the study of Gupta’s waterfront home in Westport, offered a rare peek into the family’s wealth. At the time, Gupta and his wife had assets of $134 million—a net worth of $84 million, an irrevocable trust of $38.5 million, and $11.2 million in cash and liquid assets. Under the section in her notes regarding estate planning, Webster had noted that the Guptas wanted to give 80 percent of their money to charity. The prosecution sought to admit Webster’s notes because in her financial review of the Guptas she had asked for an update on his sources of income. In the notes she took at the time, she wrote, he was “Chairman, Galleon International, $1.3 billion, 15 percent owner, invests in long/short equity Asia, entitled to performance fees.”
Boom: Mad Money, Mega Dealers, and the Rise of Contemporary Art by Michael Shnayerson
activist fund / activist shareholder / activist investor, banking crisis, Bonfire of the Vanities, corporate raider, diversified portfolio, Donald Trump, East Village, estate planning, Etonian, high net worth, index card, Jane Jacobs, mass immigration, NetJets, Peter Thiel, plutocrats, Plutocrats, rent control, rolodex, Silicon Valley, tulip mania, unbiased observer, upwardly mobile, Works Progress Administration
True, loans could be found elsewhere at lower rates than an auction house could offer. But, as Sotheby’s noted, “few lenders… are willing to accept works of art as sole collateral for loans.” This was the game the auction houses had played in the early 2000s without much success, but Sotheby’s was hungry, so it would try all-art loans again. It would also provide financial advice to artists and collectors. For those getting on in age, estate planning was in order. Cappellazzo was tough. In her glass-walled Sotheby’s office, on one of the bookshelves behind her, was a sign that read, “I’ll be nicer if you’ll be smarter.” She fielded questions briskly while bobbing a furlined Gucci backless shoe below her glass desk. Clearly, she was resolute enough to preside over the firings that had occurred since her arrival. But what choice did she have?
Appetite for America: Fred Harvey and the Business of Civilizing the Wild West--One Meal at a Time by Stephen Fried
Albert Einstein, British Empire, business intelligence, centralized clearinghouse, Charles Lindbergh, City Beautiful movement, estate planning, glass ceiling, In Cold Blood by Truman Capote, indoor plumbing, Livingstone, I presume, Nelson Mandela, new economy, plutocrats, Plutocrats, refrigerator car, transcontinental railway, traveling salesman, women in the workforce, Works Progress Administration, young professional
Since he didn’t have easy access to $250,000 in currency, he gifted family members with stocks, bonds, even personal promissory notes, including several from loans he had made to some of Kansas City’s wealthiest men when they were short on cash. Minnie was given two $25,000 notes from Charles W. Armour, a partner in one of the country’s largest meatpacking plants and a contemporary of Ford and Dave’s. Armour had borrowed the money from Fred over a four-week period. Yet such moments of levelheadedness and estate planning on Fred’s part would often be interrupted by well-meaning friends and relatives convinced they had found some miracle remedy. One day Ford received an urgent telegram, which his father had sent just before midnight, saying people were telling him to see a Chinese doctor they had heard about as a last-ditch attempt to cure his cancer. Fred wanted to do it, “unless mamma and you object,” he explained.
Circle of Greed: The Spectacular Rise and Fall of the Lawyer Who Brought Corporate America to Its Knees by Patrick Dillon, Carl M. Cannon
accounting loophole / creative accounting, affirmative action, Bernie Madoff, buy and hold, collective bargaining, Columbine, computer age, corporate governance, corporate raider, desegregation, energy security, estate planning, Exxon Valdez, fear of failure, fixed income, Gordon Gekko, greed is good, illegal immigration, index fund, John Markoff, mandatory minimum, margin call, Maui Hawaii, money market fund, new economy, oil shale / tar sands, Ponzi scheme, Ralph Nader, rolodex, Ronald Reagan, Sand Hill Road, Silicon Valley, Silicon Valley startup, Steve Jobs, the High Line, the market place, white picket fence, Works Progress Administration, zero-sum game
The Methodist hierarchy bailed the homes out at first, but as the losses mounted, Pacific Homes’ officials resorted to acquiring more buildings and attracting new residents with “life-care contracts,” even as they spent the money paid up front by new retirees to keep the existing retirement facilities afloat. However well intentioned the Methodist elders had been originally, they eventually found themselves running an elaborate Ponzi scheme. The legal case began in 1977, when a Pacific Homes retiree named Frank Barr placed a call to a San Diego law firm, Wied & Granby, to which he had been referred by his estate planning attorney. Barr told the Wied & Granby attorneys his story: months after he had paid more than $300,000 for a “life-care contract,” Pacific Homes officials had announced that all residents would have to pay several hundred dollars more each month to keep the place afloat. The homes were near bankruptcy, it seemed to Barr, and the officials clearly had known this was the case even while soliciting the contracts.
Unreal Estate: Money, Ambition, and the Lust for Land in Los Angeles by Michael Gross
Albert Einstein, Ayatollah Khomeini, bank run, Bernie Madoff, California gold rush, clean water, corporate raider, Donald Trump, estate planning, family office, financial independence, Irwin Jacobs, Joan Didion, Maui Hawaii, McMansion, mortgage debt, Norman Mailer, offshore financial centre, oil rush, passive investing, pension reform, Ponzi scheme, Right to Buy, Robert Bork, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, Steve Wozniak, The Predators' Ball, transcontinental railway, yellow journalism
We pulled her through and from then on have had her home with nurses around the clock. The doctors have not specifically diagnosed her condition as Alzheimers, however, the symptoms seem similar. It is a dementia of some kind.… Dolly hallucinates and seems to be living in her own little dream world.” What Logan didn’t tell Stockmar was that in August 1986, when Logan felt she was already failing, her brain going, Dolly had changed her estate plans one last time. In a new codicil to her will, many of her bequests changed radically. Elinor Logan and Maria Rivera were willed $3 million each, accountant Hugh Mullen and a maid named Yolanda each got $2 million, two chauffeurs who doubled as bodyguards got $1 million each, and, in what appeared to be a last-minute change of heart, one recipient of Dolly’s largesse was eliminated: A $300,000 bequest to Diane Hunt Stockmar, though included in the typewritten document, was crossed out by hand.
How to Survive a Plague: The Inside Story of How Citizens and Science Tamed AIDS by David France
affirmative action, Albert Einstein, Berlin Wall, Donald Trump, East Village, estate planning, facts on the ground, global pandemic, Live Aid, medical residency, placebo effect, Ronald Reagan, sensible shoes, trickle-down economics
Employers were firing people diagnosed with the disease, insurance claims were being rejected, and landlords were locking patients out of their homes. Thousands of people urgently needed wills, because without them estates were being swept up by estranged family members who were stripping the surviving partners of everything, even the photographs and cherished ephemera from a shared life. GMHC used volunteer lawyers for estate planning, and to help with living wills and health care proxies. “Every contact with the system is a confrontation,” said Robert Cecchi, a volunteer crisis counselor. “As the number of cases grows, it becomes harder to handle the numerous complaints.” The suffering moved Kramer as it did the others, but he felt the Red Cross and the other state and local agencies had a sacred responsibility to handle these matters instead of abdicating the work to the community, and he angrily excoriated his colleagues for letting the homophobia of the social safety net go unchallenged.
Conspiracy of Fools: A True Story by Kurt Eichenwald
Asian financial crisis, Burning Man, computerized trading, corporate raider, estate planning, forensic accounting, intangible asset, Irwin Jacobs, John Markoff, Long Term Capital Management, margin call, Negawatt, new economy, oil shock, price stability, pushing on a string, Ronald Reagan, transaction costs, value at risk, young professional
The job offer with KKR wouldn’t, and shouldn’t, wait for him. He had to decline. From his office, Lay telephoned George Roberts. “George,” he began, “I’m sure you’ve seen the news.” Skilling was home, putting together a list on a pad of quadrille paper. He had blown out of the office immediately after the announcement, leaving the packing to his secretary, Sherri Sera. Now, he was plotting his new life. Finances. Office. Estate Planning. Those needed to be organized. His brother Mark would help him out there. Reputation. Make sure his departure hadn’t damaged his image with the business world. Family. Spend more time with his kids, arrange some trips with them. Health. Obvious. Community. Reach out into Houston, play a bigger role in the city. There were plenty of details needed, but that was basically it. A business plan, just without a business.
State of Emergency: The Way We Were by Dominic Sandbrook
anti-communist, back-to-the-land, banking crisis, Bretton Woods, British Empire, centre right, collective bargaining, Corn Laws, David Attenborough, Doomsday Book, edge city, estate planning, Etonian, falling living standards, fear of failure, Fellow of the Royal Society, feminist movement, financial thriller, first-past-the-post, fixed income, full employment, German hyperinflation, global pandemic, mass immigration, moral panic, Neil Kinnock, new economy, New Urbanism, Norman Mailer, North Sea oil, oil shock, Own Your Own Home, sexual politics, traveling salesman, union organizing, upwardly mobile, urban planning, Winter of Discontent, young professional
The disco soon succumbed to endemic racial violence, and when a kaftan-wearing hippy tried to organize hand-holding ‘encounter sessions’ to dissipate the tension, the teenagers beat him up so badly he ended up in hospital. It would have been funny if it were not so sad: by the time the researchers left in 1974, all they could foresee for the children of the estate was violence, racism and unemployment.47 Like so many of the council estates planned and built in the 1940s and 1950s, the Monmouth estate had originally been a symbol of modernity and opportunity, the embodiment of the reforming spirit that was going to turn Britain into the New Jerusalem. The transformation in the estates’ image, however, was astonishingly quick: by the early 1970s, writes one historian, they had already become symbols of ‘dependence on state benefits, of a morass of indebtedness to the council and the moneylender, of isolation from neighbour and kin and society at large’.
Power at Ground Zero: Politics, Money, and the Remaking of Lower Manhattan by Lynne B. Sagalyn
affirmative action, airport security, Bonfire of the Vanities, clean water, conceptual framework, corporate governance, deindustrialization, Donald Trump, Edward Glaeser, estate planning, Frank Gehry, Guggenheim Bilbao, high net worth, informal economy, intermodal, iterative process, Jane Jacobs, mortgage debt, New Urbanism, place-making, rent control, Rosa Parks, Rubik’s Cube, Silicon Valley, sovereign wealth fund, the built environment, the High Line, time value of money, too big to fail, Torches of Freedom, urban decay, urban planning, urban renewal, white flight, young professional
Even though relocating to Vornado’s midtown site was going to cost as much as $1 billion more than either of the two downtown options, Merrill’s CEO had made up his mind. The unexpected, however, was about to radically reshape the firm’s options. The real estate decision was on the agenda of the firm’s two-day board meeting the third week of October 2007. Standing outside the boardroom in the foyer waiting to make the midtown recommendation to the board was Mark E. Brooks, the managing director in charge of real estate planning and transactions. Inside the boardroom O’Neal was informing directors for the first time that he had had a conversation about selling the company! He had to explain to the board quarterly losses of $2.24 billion, the firm’s first quarterly loss in six years. Hours later, still waiting to make his presentation, Brooks was told real estate was no longer on the agenda. Days later Merrill reported $7.9 billion in write-offs due to aggressive bets on mortgage-related securities.
1,000 Places to See in the United States and Canada Before You Die, Updated Ed. by Patricia Schultz
Albert Einstein, Alfred Russel Wallace, American Society of Civil Engineers: Report Card, Bretton Woods, Burning Man, California gold rush, car-free, Charles Lindbergh, Columbine, Donald Trump, East Village, El Camino Real, estate planning, Frank Gehry, glass ceiling, Golden Gate Park, Guggenheim Bilbao, Haight Ashbury, haute cuisine, indoor plumbing, interchangeable parts, Mars Rover, Mason jar, Maui Hawaii, Mikhail Gorbachev, Murano, Venice glass, Nelson Mandela, new economy, New Urbanism, Norman Mailer, out of africa, Pepto Bismol, place-making, Ralph Waldo Emerson, Ronald Reagan, Rosa Parks, Saturday Night Live, sexual politics, South of Market, San Francisco, The Chicago School, transcontinental railway, traveling salesman, upwardly mobile, urban decay, urban planning, urban renewal, urban sprawl, wage slave, white picket fence, Works Progress Administration, Yogi Berra, éminence grise
Fall means 60,000 chrysanthemums that over-flow from rich jewel-toned flower beds and cascade from bridges and balconies. Even winter has a tourist season here, as the mansion and gardens are awash in poinsettias, tinsel, and some 3 million twinkling holiday lights during the festival known as Magic Christmas in Lights. Mirror Lake reflects the hidden treasures of the 65-acre Bellingrath estate. Plan a stopover at the local institution known as Mary’s Place, a seafood restaurant in the nearby waterside community of Coden. Founded in 1935 by Mary Hunter, a descendant of slaves, the rustic bare-bones eatery offers straightforward Creole soul food and all-you-can-eat seafood buffets (Greta Garbo swooned over the deviled crab). WHERE: 20 miles southwest of Mobile; 12401 Bellingrath Rd., Theodore.