Let’s examine some uses for life insurance, the only asset class that can ensure the completion of proper funding for a myriad of unique planning needs – regardless of the state of the federal estate tax.
When planning for tax-qualified plans such as IRAs, 401(k)s and qualified retirement plans, you should carefully examine the potential taxes that impact these assets. Unlike most other assets that receive a “basis step-up” to current fair market value upon the owner’s death, IRAs, 401(k)s and other qualified retirement plans do not step-up to the date-of-death value.
How Financial Professionals Can Get In The Way: Many advisors unwittingly (or in some cases, not so unwittingly) tap into or add to people’s already existing fears. They don’t explain the difference between voluntary and involuntary philanthropy. When people regularly respond, “Well, no, we’ll need that money for us and the kids,” many financial professionals conclude that the conversation is over. Additionally, the
In the world of financial professionals, a major obstacle to getting people to do more is, unfortunately, the professionals themselves. Frequently, professionals such as attorneys, investment advisors, insurance professionals, and accountants tell us their clients aren’t interested in charitable giving but instead want to minimize taxes and maximize the wealth that their family and heirs will receive.
Many people spend more time and care planning their vacations than they spend on their financial and estate planning. They pore over travel guides and find the best rates online, all in anticipation of a week or two in their future. Probably because of our human impulses, planning for short-term fun can trump long-term gain. With the future uncertain, risks to be managed, a retirement for which we fear we may not hav
In our practice, regular folks- the “millionaires next door” often do not relate, at first, to the possibilities of philanthropy – until they see that they can do it voluntarily so the government doesn’t make them do it involuntarily. That realization appeals to those innate human drives for autonomy, mastery and purpose.
Though convinced they should take their plan to the next level, create a legacy, and make an impact by possibly engaging in philanthropy, people procrastinate for a host of reasons. And they aren’t necessarily conscious that they are doing so.
Many people whom society would regard as well-off are actually concerned about running out of money. And that fear is part of the challenge in encouraging them to engage in philanthropy. The media hardly helps the situation: Advertisers, in their bid for attention, take things to the extreme and play on those worries. You can see this daily as the financial news networks proclaim that the financial markets are in
Many people could easily write big checks, but something holds them back. Most of our clients are age 60 and over and have a net worth generally in the range of one million to thirty million dollars. They could spend hundreds of thousands of dollars more than they spend now, but they can’t bring themselves to do it. When shown that they have excess wealth, they might travel more or perhaps buy a second home, b