Certificate of Trust: Estate Planning
.Certificate of Trust: Estate Planning
Mark Henricks Fri, September 24, 2021
When trusts are used as estate planning tools, financial institutions such as banks and brokerages may require written documentation of the trust’s existence before transferring assets into a trust or naming it as a beneficiary. However, they don’t need to see all the details of the trust, such as identities of the beneficiaries. When financial institutions need trust documentation, a signed and notarized certificate of trust can fulfill this requirement while keeping other information about the trust private.
A financial advisor can analyze your estate planning needs, including what documents you need. The certificate of trust’s primary job is to attest that the trustor actually has control of the assets being placed in the trust. The certificate of trust is a legal document that may also be called a trust certificate, memorandum of trust or abstract of trust.
Certificate of Trust: Estate Planning
Mark Henricks Fri, September 24, 2021
When trusts are used as estate planning tools, financial institutions such as banks and brokerages may require written documentation of the trust’s existence before transferring assets into a trust or naming it as a beneficiary. However, they don’t need to see all the details of the trust, such as identities of the beneficiaries. When financial institutions need trust documentation, a signed and notarized certificate of trust can fulfill this requirement while keeping other information about the trust private.
A financial advisor can analyze your estate planning needs, including what documents you need. The certificate of trust’s primary job is to attest that the trustor actually has control of the assets being placed in the trust. The certificate of trust is a legal document that may also be called a trust certificate, memorandum of trust or abstract of trust.
The trust certificate can be considered an outline or summary of the primary documents describing the trust. Trust documents can be complex and lengthy, more than 100 pages in some cases. The trust certificate is preferred as a concise and convenient way to give financial institutions the information they need while omitting the unnecessary details.
Filing a certificate of trust is often a one-time event. However, sometimes you may need to update a certificate of trust. This could be the case if the trust sells or acquires any real property. If a trustee dies, the trust certificate will need updating. If the trust has been altered since it was created, the trust certificate will provide the date the changes were made.
Trust Certificate Contents
There is no standard universal certificate of trust document or format. Most states have their own statutes describing the requirements for a valid trust certificate. However, generally, a certificate of trust will contain the following information:
Name of the trust
Name and address of the person creating the trust, known as the trustor, grantor or settlor. If more than one person, such as a married couple, are creating the trust, they should both be identified.
Identity and specific powers of the trustee - Date the trust was created - Legal description of any real estate included in the trust - Whether the trust is irrevocable or revocable - If revocable, who is able to revoke it - The trust’s tax identification number - Signatures of the trustors, including both members of a married couple - A stamp and signature of a notary
Depending on the state, the certificate may also have to have other information.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/certificate-trust-estate-planning-153906426.html
What Is a Financial Plan?
.What Is a Financial Plan?
Coryanne Hicks Thu, September 23,
A financial plan is the heart of the financial advising process. In a way, it's the map for your clients' money, there to guide them financially from where they are today to where they want to be. Without a plan, investors are just paddling in an open sea, hoping their direction and speed will be enough to get them to their destination.
Given the financial plan's importance to the planning process, advisors and clients alike must understand what a financial plan is and the key elements that make a good plan.
What Is a Financial Plan?
Coryanne Hicks Thu, September 23,
A financial plan is the heart of the financial advising process. In a way, it's the map for your clients' money, there to guide them financially from where they are today to where they want to be. Without a plan, investors are just paddling in an open sea, hoping their direction and speed will be enough to get them to their destination.
Given the financial plan's importance to the planning process, advisors and clients alike must understand what a financial plan is and the key elements that make a good plan.
What Is a Financial Plan?
A financial plan is a document that takes a holistic look at a client's entire financial picture and advises how to achieve financial goals, says Dan Keady, chief financial planning strategist at TIAA in Charlotte, North Carolina. It will incorporate your client's "needs, wants and wishes, while taking into account her comfort level with risk."
Financial plans are generally created using financial planning software and can incorporate many facets of planning. For instance, the retirement plan element often includes an analysis showing the impacts of taking money from different accounts, both qualified and nonqualified, for income and a comparison of the tax implications of each scenario, says Kelly Campbell, a certified financial planner and chairman and CEO of Campbell Wealth Management in Alexandria, Virginia.
"Many plans will also look at the required rate of return someone needs to achieve their goals," Campbell says. "This can give a good indication to someone as to how they should invest their portfolio."
[READ: 10 Best Financial Certifications]
Creating a Financial Plan
A financial plan requires the right elements to rise to its full potential. To create a good financial plan, be sure to include the following elements:
To continue reading, please go to the original article here:
Certificate of Trust: Estate Planning
.Certificate of Trust: Estate Planning
Mark Henricks Fri, September 24, 2021
When trusts are used as estate planning tools, financial institutions such as banks and brokerages may require written documentation of the trust’s existence before transferring assets into a trust or naming it as a beneficiary. However, they don’t need to see all the details of the trust, such as identities of the beneficiaries. When financial institutions need trust documentation, a signed and notarized certificate of trust can fulfill this requirement while keeping other information about the trust private.
A financial advisor can analyze your estate planning needs, including what documents you need. The certificate of trust’s primary job is to attest that the trustor actually has control of the assets being placed in the trust. The certificate of trust is a legal document that may also be called a trust certificate, memorandum of trust or abstract of trust.
Certificate of Trust: Estate Planning
Mark Henricks Fri, September 24, 2021
When trusts are used as estate planning tools, financial institutions such as banks and brokerages may require written documentation of the trust’s existence before transferring assets into a trust or naming it as a beneficiary. However, they don’t need to see all the details of the trust, such as identities of the beneficiaries. When financial institutions need trust documentation, a signed and notarized certificate of trust can fulfill this requirement while keeping other information about the trust private.
A financial advisor can analyze your estate planning needs, including what documents you need. The certificate of trust’s primary job is to attest that the trustor actually has control of the assets being placed in the trust. The certificate of trust is a legal document that may also be called a trust certificate, memorandum of trust or abstract of trust.
The trust certificate can be considered an outline or summary of the primary documents describing the trust. Trust documents can be complex and lengthy, more than 100 pages in some cases. The trust certificate is preferred as a concise and convenient way to give financial institutions the information they need while omitting the unnecessary details.
Filing a certificate of trust is often a one-time event. However, sometimes you may need to update a certificate of trust. This could be the case if the trust sells or acquires any real property. If a trustee dies, the trust certificate will need updating. If the trust has been altered since it was created, the trust certificate will provide the date the changes were made.
Trust Certificate Contents
There is no standard universal certificate of trust document or format. Most states have their own statutes describing the requirements for a valid trust certificate. However, generally, a certificate of trust will contain the following information:
Name of the trust
Name and address of the person creating the trust, known as the trustor, grantor or settlor. If more than one person, such as a married couple, are creating the trust, they should both be identified.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/certificate-trust-estate-planning-153906426.html
"Tidbits From TNT" Saturday 9-25-2021
.TNT:
LC: How Private Banking Clients Protect their Bank Accounts in the Bank’s Trust Department
I am reposting this again to remind everyone, FDIC is not important if your funds are in the bank's trust department.
Dear All TNT Dinar & Open Mic Family Members;
I would like to inform everyone about my experience as a current private banking client of Wells Fargo Private Bank.
I would like to put to bed about possible banks failures after you get your blessing from exchanging your currencies. You need to ask yourself this question, why do the wealthy customers don’t worry about their investments disappearing out of their accounts.
TNT:
LC: How Private Banking Clients Protect their Bank Accounts in the Bank’s Trust Department
I am reposting this again to remind everyone, FDIC is not important if your funds are in the bank's trust department.
Dear All TNT Dinar & Open Mic Family Members;
I would like to inform everyone about my experience as a current private banking client of Wells Fargo Private Bank.
I would like to put to bed about possible banks failures after you get your blessing from exchanging your currencies. You need to ask yourself this question, why do the wealthy customers don’t worry about their investments disappearing out of their accounts.
The reason they don’t have that concern is because their investments in the “bank's trust department” is considered “off balance sheet” and therefore these investments are not owned by the bank and not reportable to Wall Street. Additionally, the wealthy customers’ investments are titled and owned by them personally or titled and owned by a trust or entity you control.
So, this is where a third party comes in to play. My private bank (Wells Fargo Private Bank) use Depository Trust Company (DTC) one of the world’s largest securities depositories that will be the clearinghouse and safekeeping for my transactions.
Now you say, what if something happens to Wells Fargo Private Bank. Well, since they don’t own your investments, you only need to contact Depository Trust Company to now instruct them to name a new private trust bank (i.e. Northern Trust, U.S. Trust or bank's trust department).
Just remember, the private trust bank's trust department is only a fiduciary that help manage your investment needs.
Please review the further detailed info on the Depository Trust Company that holds trillions of dollars of securities in their custody.
Furthermore, my private banker explained to me that generally his multibillion and multimillion dollar clients don’t have Excess Deposit Insurance because the bank don’t have title to the investments to be a part of a bank failure.
Finally, this will not protect you from losing money on bad investments. Private trust banks generally carry insurance for your protection if they put you in an investment without careful due diligence and you lose your money as a result of their recommendation.
This is why everyone should relax and make sure you put your funds in a bank's trust department to remove this concern. That’s what the wealthy and the 1% do. We do not need to reinvent the wheel.
Good luck to everyone and I hope that I helped ease everyone concerns
http://www.investopedia.com/terms/d/dtc.asp?view=print
LC
************
Shybaby: Offshore Versus Domestic Asset Protection
Offshore Asset Protection
There has been much publicity over the last few years on the erosion of Swiss banking secrecy and the IRS offensive against “secret” foreign accounts, including jail sentences for Americans with non-compliant accounts at UBS and HSBC.
Against this background, it is important to question whether protection of assets by moving them offshore is still viable. The answer is that offshore asset protection is not only still viable but remains extremely effective against civil creditors, provided that the offshore structure is tax compliant.
Americans can legally invest in foreign markets, own foreign real estate, own foreign businesses, and deposit their assets into foreign bank and brokerage accounts, provided that they disclose their foreign accounts to the U.S. government and pay U.S. tax on foreign income.
Placing assets in a foreign asset protection trust is legal and effective against future creditors. At the same time, it is crucial to recognize that while the assets are outside of the reach of creditors, they are not outside the reach of the IRS. Settling a foreign trust, for example, is legal and will safeguard your assets from creditor attack, but the IRS still considers trust assets to be your assets, and you will be obligated to declare and pay income tax on any gains in the foreign trust. Going offshore for asset protection is a legitimate strategy; going offshore to hide income from the IRS is foolish.
There exist effective, tax compliant offshore strategies to accomplish tax minimization. These strategies utilize tax-favorable treatment of foreign annuities and foreign life insurance. Preferential tax treaties between the U.S. and foreign countries are also utilized for tax minimization. Asset protection is also a byproduct and additional benefit of these offshore tax strategies.
Domestic Asset Protection
In other cases, domestic asset protection is more appropriate than an offshore approach.
Domestic asset protection can be totally effective if implemented by individuals with no current claims against them. Domestic asset protection is also usually used to protect real estate which cannot be moved offshore.
As an added bonus, some structures for asset protection, like the family limited partnership, also offer excellent tax minimization and estate planning benefits.
The family limited partnership is probably the most beneficial structure available for wealth preservation via asset protection, estate planning and tax minimization.
Who Needs Asset Protection
People sometimes have the misconception that in order to engage an asset protection attorney, they need to have significant wealth. In fact, many different people, of diverse backgrounds and all levels of affluence, already protect their assets.
For instance, young entrepreneurs seeking to protect their assets from the risks of their next business ventures; small business owners trying to discourage “deep pocket” or “nuisance” law suits; retirees seeking to preserve their assets for their children and grandchildren; people seeking to protect their home from mounting medical bills; and high net worth individuals with various assets and holdings (personal and business) should consider protecting their assets.
All types of people, with all types of assets, need asset protection. You need asset protection if:
· you are facing a current or expected lawsuit
· you are in a profession with a high degree of liability (real estate investor, real estate developer, landlord, doctor, lawyer, financial advisor)
· new laws may impact your business or create new liabilities (e.g., the Fair Labor Standards Act and the proposed “sweat” law in New York state)
· you are a debtor and/or a guarantor
· you face a potential tax or other government liability
· you have accumulated, or are about to receive, significant wealth (e.g., inheritance; investment or business success; vesting event; business buy-out, etc.)
· you (or your children) are going to get married or divorced
· you are concerned about the financial viability of your business
Asset protection is an effective legal strategy that can safeguard wealth and assets from attack by future, unsecured creditors. Proper asset protection is the best pre-emptive defense, and often discourages lawsuits in the first place.
Proper asset protection strategies offer peace of mind and provide the protection needed to withstand the inevitable attacks
Mot: ~~~ Frustration Tips of Getting in Shape! ~~~
IdahoUSA: WHAT A WONDERFUL WORLD...........BLESSINGS AND NEW BEGINNINGS FOR ALL
How to Change a Power of Attorney
.How to Change a Power of Attorney
Eric Reed Wed, September 22
Power of attorney is an important legal planning tool. It is commonly used for estate planning, medical management, financial management and much more. It’s also a flexible tool. You have the right to change or revoke a power of attorney at absolutely any time. Moreover, changing or revoking a power of attorney is extremely simple (by design). What follows is a general description of how to make that change, not legal advice, which should be sought from an attorney familiar with relevant laws in your state. Consider working with a financial advisor as you put together or modify your estate plan.
Power of Attorney, Defined
A power of attorney, also known as a letter of attorney, is a legal document that you sign to authorize another person to act on your behalf. The person who is giving his or her power is known as the principal, the grantor or the donor. The person taking on the power is known as the agent or the attorney-in-fact.
How to Change a Power of Attorney
Eric Reed Wed, September 22
Power of attorney is an important legal planning tool. It is commonly used for estate planning, medical management, financial management and much more. It’s also a flexible tool. You have the right to change or revoke a power of attorney at absolutely any time. Moreover, changing or revoking a power of attorney is extremely simple (by design). What follows is a general description of how to make that change, not legal advice, which should be sought from an attorney familiar with relevant laws in your state. Consider working with a financial advisor as you put together or modify your estate plan.
Power of Attorney, Defined
A power of attorney, also known as a letter of attorney, is a legal document that you sign to authorize another person to act on your behalf. The person who is giving his or her power is known as the principal, the grantor or the donor. The person taking on the power is known as the agent or the attorney-in-fact.
The grantor can choose which rights to give the agent. For instance, if you have a disease that may leave you incapacitated, you can give medical power attorney to an agent to make decisions about treatment when you become unable to do so. Grantors could also give the agent the right to make financial decisions for them, including over their investment accounts. For example, if you are going on a six-month trip around the world, you may grant POA to someone to help you run your rental properties.
If you need someone to represent you and discuss your tax problems with the IRS, you can complete IRS Form 2848. This form is the power of attorney and Declaration of Representative form. Since tax information is considered private information, you’ll need to formally give another person permission to address your personal tax issues.
How to Change a Power of Attorney
There are usually five key steps in changing a power of attorney.
Notify the person currently holding power of attorney
If you would like to make changes, make sure to notify your existing power of attorney right away. This is particularly urgent if you are reducing or eliminating their authority. You would like them to stop taking action right away, or to know that these changes are coming so that they don’t make future plans. You will also have the chance to discuss your needs, and how best to tailor any changes that you’re making.
Put the change in writing
To continue reading, please go to the original article here:
Can a Power of Attorney Transfer Money to Themselves?
.Can a Power of Attorney Transfer Money to Themselves?
Eric Reed Tue, September 21
For many families with elderly people or engaged in estate planning, power of attorney is essential, especially if the elderly person’s mental abilities are compromised. Having someone who can take care of legal and financial matters can make this part of life far easier.
However, power of attorney is a sweeping grant of authority. Depending on how you structure this grant, a power of attorney can – in some cases – transfer money and property to themselves. However, it is uncommon and only allowed in specific circumstances. Here’s a general overview of this topic. Keep in mind that power of attorney laws vary by state. It’s prudent to consult an attorney before making any decisions.
A financial advisor can help you understand if there are alternatives to creating a power of attorney as you engage in estate planning.
Can a Power of Attorney Transfer Money to Themselves?
Eric Reed Tue, September 21
For many families with elderly people or engaged in estate planning, power of attorney is essential, especially if the elderly person’s mental abilities are compromised. Having someone who can take care of legal and financial matters can make this part of life far easier.
However, power of attorney is a sweeping grant of authority. Depending on how you structure this grant, a power of attorney can – in some cases – transfer money and property to themselves. However, it is uncommon and only allowed in specific circumstances. Here’s a general overview of this topic. Keep in mind that power of attorney laws vary by state. It’s prudent to consult an attorney before making any decisions.
A financial advisor can help you understand if there are alternatives to creating a power of attorney as you engage in estate planning.
What Is Power of Attorney?
Power of attorney is when you assign someone the authority to make legally binding decisions on your behalf. This can mean managing financial assets, making choices regarding medical care, signing contracts and other commitments. A power of attorney can access confidential materials and their decisions are as binding as if you had made them yourself.
Most of the time power of attorney is a limited grant of authority. That is to say, you will give someone power of attorney to do specific things or to act within a specific scope. For example, the IRS ordinarily would not accept taxes filed by a third party; you must file your taxes yourself.
However, assigning power of attorney to your tax preparer gives that person the authority to file your taxes as though you had done so yourself. This is a common practice and lets the tax preparer see a client’s confidential IRS and bank records, as well as filing taxes on the client’s behalf. Such power, however, doesn’t allow the person to sign contracts in your name or sell your car. Their authority is limited to reviewing your finances and filing documents with the IRS.
In some cases you may assign what’s known as general power of attorney. This is one of three types of durable power of attorney (the other two are special power of attorney and healthcare or medical power of attorney). With a general power of attorney, the person can make just about any decisions at all on your behalf while the power of attorney assignment remains valid. People will often make a general assignment to a trusted family member or long-time friend if they are going to be unreachable or incapacitated.
Limits on Power of Attorney Asset Transfers
To continue reading, please go to the original article here:
The US Has 10 Days Before It Defaults On Its Debt
.The US Has 10 Days Before It Defaults On Its Debt – What That Could Mean For You
Georgina Tzanetos Tue, September 21, 2021
The United States has historically been one of the most credit-worthy countries in the entire world. U.S. Treasury bonds are considered some of the safest financial instruments in international markets, and their movements are used as a benchmark for movement within the global economy.
The U.S. is also a debt nation — we all have some form of it, be it with monthly credit cards, student loans and mortgages. It’s hard to think of a world where you can’t just go to a bank and get a mortgage for your first house or open up even a low-limit credit card — but the reality is the U.S. is a privileged place in terms of the free-flowing credit most of its citizens run on.
The US Has 10 Days Before It Defaults On Its Debt – What That Could Mean For You
Georgina Tzanetos Tue, September 21, 2021
The United States has historically been one of the most credit-worthy countries in the entire world. U.S. Treasury bonds are considered some of the safest financial instruments in international markets, and their movements are used as a benchmark for movement within the global economy.
The U.S. is also a debt nation — we all have some form of it, be it with monthly credit cards, student loans and mortgages. It’s hard to think of a world where you can’t just go to a bank and get a mortgage for your first house or open up even a low-limit credit card — but the reality is the U.S. is a privileged place in terms of the free-flowing credit most of its citizens run on.
That could change in the next 10 days. During President Donald Trump’s presidency, the national debt climbed over $8 trillion largely fueled by massive tax cuts and emergency pandemic spending. The Biden administration, thus far, has increased the county’s debt by about another $3.5 trillion with the American Rescue Plan stimulus relief bill and other economic recovery efforts during the ongoing pandemic.
The government fiscal year ends Sept. 30 and a new budget will need to be agreed on in order to fund the spending that has already happened.
How The Government Funds These Big Spending Bills
Using this year as an example, the government essentially took out a $3.5 trillion loan against itself in order to pay for things like stimulus payments, business relief, etc. Now, it is time to pay that loan back — this is done in the form of bonds. The government agrees on a certain level, or debt ceiling, of debt to issue in the form of Treasury bonds. These bonds are then sold into the open market at monthly auctions held by the Treasury itself. This, plus taxes you pay, raises the revenue needed for things like government spending.
To continue reading, please go to the original article here:
https://news.yahoo.com/us-10-days-defaults-debt-162711207.html
A Different Way To Think About The Evergrande Collapse
.A Different Way To Think About The Evergrande Collapse
Notes From the Field By Simon Black September 21, 2021 Bahia Beach, Puerto Rico
On the evening of June 9, 1772, Alexander Fordyce was drunk out of his mind when he came stumbling home to his wife. As Fordyce was a widely respected London banker and senior partner at the firm Neale, James, Fordyce, and Down, this behavior was uncharacteristic… and his family was rightfully worried. The next morning Fordyce was gone. He had fled across the English Channel to France. And then the news struck-- his bank had gone bust and was closing its doors.
By itself this shouldn’t have been a big deal; it was only one guy, and one bank. But Fordyce hadn’t simply made some bad investments with his own money. Nor had he simply made bad investments with his depositor’s money. Fordyce had borrowed HEAVILY, from just about everyone, and made a number of spectacularly terrible investments.
A Different Way To Think About The Evergrande Collapse
Notes From the Field By Simon Black September 21, 2021 Bahia Beach, Puerto Rico
On the evening of June 9, 1772, Alexander Fordyce was drunk out of his mind when he came stumbling home to his wife. As Fordyce was a widely respected London banker and senior partner at the firm Neale, James, Fordyce, and Down, this behavior was uncharacteristic… and his family was rightfully worried. The next morning Fordyce was gone. He had fled across the English Channel to France. And then the news struck-- his bank had gone bust and was closing its doors.
By itself this shouldn’t have been a big deal; it was only one guy, and one bank. But Fordyce hadn’t simply made some bad investments with his own money. Nor had he simply made bad investments with his depositor’s money. Fordyce had borrowed HEAVILY, from just about everyone, and made a number of spectacularly terrible investments.
Fordyce’s borrowings had become so vast, in fact, that when he defaulted it nearly brought down the entire financial system.
Stock prices crashed. Banks shuttered. Financial markets in foreign countries, including the Netherlands, took a big hit.
And the British Government passed the Tea Act in order to raise tax revenue, stabilize the economy, and help the East India Company’s recovery.
The Tea Act proved to be wildly unpopular in the colonies, leading to the infamous Boston Tea Party… which was a major precursor to the American Revolution.
Now, I’m not saying that Fordyce caused the American Revolution. The Revolution would have probably taken place eventually, even without Fordyce’s catastrophic stupidity.
But it is incredible how a single event can trigger a widespread chain reaction with such far-reaching consequences.
Yesterday we saw a tiny glimpse of this; stock markets around the world collectively had a minor hissy fit in response to news that a Chinese property developer-- Evergrande-- would default on its colossal debt.
Investors were afraid that an Evergrande default would ripple through the financial system and cause a chain reaction of failures, just like what happened with Fordyce’s default in 1772, and Lehman Brothers in 2008.
Now, I do have to say that, based on the the information we have about Evergrande, fears about this specific issue are overblown.
Evergrande has roughly $300 billion in liabilities. Even if that entire amount goes to zero, it’s a small fraction of the Chinese banking system’s $5+ trillion in capital.
I’d be much more concerned about Evergrande’s impact on China’s notoriously overleveraged ‘shadow banking system’, and their high-risk ‘wealth management products’. But we’ll save that for another time.
What I take away from the Evergrande collapse is the reminder about how seemingly innocuous events can have a major impact on global financial markets. Especially now.
Stocks, bonds, real estate, and many commodities are at/near all-time highs, some with valuations that are completely absurd.
Today, the Price/Earnings ratio for a typical S&P 500 company is nearly 50% higher than before the pandemic.
Companies’ revenues and profits are essentially the same as they were in January 2020. Yet stock prices are substantially higher.
The situation is so ridiculous that even an analyst who works at S&P wrote earlier this month: “This Market Is Nuts”.
In an environment like this, when asset prices already boggle the imagination, it doesn’t take very much for some seemingly irrelevant event, like an Evergrande default, to spark a global sell-off.
This is why I’ve been giving so much thought lately to the idea of ‘uncorrelated assets.’
Because if the proverbial bubble ever bursts, it’s going to have a substantial impact on most major asset classes. But uncorrelated asset classes wouldn’t be as affected.
Typically, ‘uncorrelated assets’ are thought of as being uncorrelated to the stock market; in other words, a boom or bust in stocks would have zero impact on an uncorrelated asset.
But I’ve been giving serious thought to assets that are essentially uncorrelated to central bank policy.
This turns out to be a really difficult thing to find.
Central bank policy is what influences the vast majority of asset prices; when banks print money (as they have printed vast trillions of dollars over the past 18 months), asset prices rise.
This is precisely what we’re seeing today.
Stocks, bonds, real estate, commodities, etc.-- the prices of these asset classes are all heavily influenced by whether or not central banks are printing money.
And while nothing can be completely insulated by central bank policy, there are some assets that are less influenced by it, i.e. ‘undercorrelated’.
I believe carbon credits are one example, especially in the voluntary market. The price of carbon credits is driven more by social trends, corporate responsibility policies, and government regulation, than by central banks.
Central banks’ interest rate policies will impact whether some carbon capture projects are able to obtain funding.
But project finance is only one factor in supply; regulatory bureaucracy is a far greater hurdle to overcome than whether interest rates are 2% or 6%.
Another example is water rights. Again, while cheap interest rates may encourage more water projects, the availability of water rights is ultimately determined by government policy and social trends, not by central bankers.
Agriculture can also be an undercorrelated asset.
Major products like corn, wheat, soy, coffee, etc. which have exchange-traded futures contracts are extremely susceptible to central bank policy.
But other products, like fruits and nuts, which don’t have exchange-traded futures contracts are much more influenced by traditional supply and demand fundamentals, rather than by monetary policy.
High quality technology IP (which can cut costs or increase productivity) can also be undercorrelated to central bank policy.
There are others to consider, and we’ll explore this concept further in a future letter… including whether gold and cryptocurrency may be undercorrelated.
To your freedom, Simon Black, Founder, SovereignMan.com
https://www.sovereignman.com/investing/a-different-way-to-think-about-the-evergrande-collapse-33516/
Can a Power of Attorney Change a Will?
.Can a Power of Attorney Change a Will?
Eric Reed Fri, September 17, 2021, 12:53 PM
Power of attorney is one of the most important legal forms for estate and elder care planning. Along with wills and trust documents, it is a critical document for arranging one’s affairs. A power of attorney cannot change a properly written will. However, such a person can make many changes to the assets surrounding that estate.
Here is how it works. Estate planning can get complicated, quickly; working with a financial advisor goes a long way to simplifying the challenge. Estate planning can get complicated, but working with a financial advisor is one of the best ways to clarify and even simplify the challenge.
Can a Power of Attorney Change a Will?
Eric Reed Fri, September 17, 2021, 12:53 PM
Power of attorney is one of the most important legal forms for estate and elder care planning. Along with wills and trust documents, it is a critical document for arranging one’s affairs. A power of attorney cannot change a properly written will. However, such a person can make many changes to the assets surrounding that estate.
Here is how it works. Estate planning can get complicated, quickly; working with a financial advisor goes a long way to simplifying the challenge. Estate planning can get complicated, but working with a financial advisor is one of the best ways to clarify and even simplify the challenge.
What Is Power of Attorney?
Power of attorney is when you assign someone the authority to make legally binding decisions on your behalf. This can mean managing financial assets, making choices regarding medical care, signing contracts and other commitments. A power of attorney can access confidential materials and their decisions are as binding as if you had made them yourself.
Most of the time power of attorney is a limited grant of authority. That is to say, you will give someone power of attorney to do specific things or to act within a specific scope. For example, the IRS ordinarily would not accept taxes filed by a third party; you must file your taxes yourself.
However, assigning power of attorney to your tax preparer gives that person the authority to file your taxes as though you had done so yourself. This is a common practice and lets the tax preparer see a client’s confidential IRS and bank records, as well as filing taxes on the client’s behalf. Such power, however, doesn’t allow them to sign contracts in your name or sell your car. Their authority is limited to reviewing your finances and filing documents with the IRS.
In some cases you may assign what’s known as general power of attorney. This is one of three types of durable power of attorney (the other two are special power of attorney and healthcare or medical power of attorney).
With a general power of attorney, the person can make just about any decisions at all on your behalf while the power of attorney assignment remains valid. People will often make a general assignment to a trusted family member or long-time friend if they are going to be unreachable or incapacitated.
Power of Attorney Cannot Change a Will
To continue reading, please go to the original article here:
How To Help Someone Who’s Struggling Financially
.How To Help Someone Who’s Struggling Financially
Laura Woods Mon, September 20, 2021
Someone you know is in the midst of financial hardship, and you’re not about to sit back and watch them struggle. You want to intervene, without overstepping, but you’re not sure what that looks like.
Approximately one-quarter (27%) of U.S. adults are frequently concerned about paying their bills, according to a 2021 survey conducted by the Pew Research Center. Additionally, 19% worry almost every day about paying their rent or mortgage, while 18% are anxious about their ability to buy enough food for their household.
Clearly, the person you know is not alone with their money issues, but thanks to you, a reprieve may soon be headed their way.
How To Help Someone Who’s Struggling Financially
Laura Woods Mon, September 20, 2021
Someone you know is in the midst of financial hardship, and you’re not about to sit back and watch them struggle. You want to intervene, without overstepping, but you’re not sure what that looks like.
Approximately one-quarter (27%) of U.S. adults are frequently concerned about paying their bills, according to a 2021 survey conducted by the Pew Research Center. Additionally, 19% worry almost every day about paying their rent or mortgage, while 18% are anxious about their ability to buy enough food for their household.
Clearly, the person you know is not alone with their money issues, but thanks to you, a reprieve may soon be headed their way.
However, before you make a commitment to help, Marcy Keckler, senior vice president, marketing and financial advice strategy at Ameriprise Financial, advised assessing your own situation, making sure you’re still able to reach financial goals, such as saving for retirement.
Additionally, she encouraged you to get on the same page regarding the financial assistance.
“You should determine if you are giving a gift or providing a loan,” she said. “Making sure this is clear and agreed upon before support is given will likely protect the relationship in the future.”
Keckler emphasized the importance of clear communication, as money can be a sensitive topic among friends and family.
“Honest and open communication is key to avoiding misunderstandings that could harm your relationship down the line,” she said.
As for how to broach the subject, Jodi RR Smith, president of Mannersmith Etiquette Consulting, based in Marblehead, Massachusetts, said to wait and see if the person experiencing financial difficulties brings it up.
“It could be they are not ready or do not wish to talk about the situation,” she said. “Next, provide space for them to discuss — ‘Pat, it is great to see you. I heard some rumblings and wanted to check in to see how you are doing…'”
However, if you don’t get very far with this approach, know when to stop.
“Do not presume they wish to talk about the situation with you,” she said. “And that is their choice, you need to respect their privacy.”
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https://finance.yahoo.com/news/help-someone-struggling-financially-110242222.html
You’re Suddenly Rich — So How Do You Handle Your Money Now?
.Opinion: You’re Suddenly Rich — So How Do You Handle Your Money Now?
Published: Sept. 18, 2021 By Fritz Glasser and Meghan Railey
The job of managing, protecting and passing on your net worth can be daunting. When you suddenly come into a lot more money because of an inheritance or other windfall, the lifestyle changes and associated financial decisions can be overwhelming. The reality of having to manage, protect, and pass on your net worth can be daunting, leading to the natural question: “Where do I begin?”
Here are four tips to help you begin managing, protecting, and increasing your wealth more effectively:
Opinion: You’re Suddenly Rich — So How Do You Handle Your Money Now?
Published: Sept. 18, 2021 By Fritz Glasser and Meghan Railey
The job of managing, protecting and passing on your net worth can be daunting. When you suddenly come into a lot more money because of an inheritance or other windfall, the lifestyle changes and associated financial decisions can be overwhelming. The reality of having to manage, protect, and pass on your net worth can be daunting, leading to the natural question: “Where do I begin?”
Here are four tips to help you begin managing, protecting, and increasing your wealth more effectively:
1. Decide who is your one trusted advisor—then build a support team around that person. Oftentimes, crowdsourcing advice can be counterproductive, resulting in poor decision-making. You should take the time to identify your one trusted advisor and build a team of other professionals around him or her.
Frequently, the newly wealthy have previously been working with one professional, such as an accountant, financial advisor or insurance broker, and continue relying on that same professional as their primary source of advice.
But this is often the wrong approach. Depending on how someone became rich, that person may no longer be the right professional to navigate the complex decisions that are now at hand. For example, some accountants might be competent at filing tax returns and ensuring clients adhere to tax regulations, while others might excel at more proactive tax planning.
Therefore, first-generation stewards of substantial wealth need to determine the specialties of various accountants and other financial professionals, including what type of client they typically serve. If you match their core client profile, then they might be a good fit to help guide you through the complex decision tree associated with newfound wealth.
However, just because a professional claims to have done something before doesn’t mean they have actually done so in reality. Ask them: “How many tax returns have you filed for people in a similar situation to my own?” “How many times have you done this for other clients, and what were the outcomes?” Don’t be afraid to ask these questions as part of the due diligence process.
In addition, you need to ask yourself some questions. Be deliberate about the role you want your advisor to play. Do you want your trusted advisor to take the lead on all decision-making, or only certain matters? Where should you and your advisor’s respective time be focused?
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