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Trusts Part 2: Revocable Trust for Non-Taxable Estates
You’ve probably heard of revocable living trusts, but do you know their history, or how they can be used to help clients avoid the Secure Act? In this post, we’ll walk you through a brief history of revocable trusts, advantages and disadvantages of revocable living trusts, and how such trusts can be used to help…
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Trusts Part 1: How Did Trusts Originate?
You’re probably quite familiar with trusts in your financial practice – but have you ever stopped to think about the origins of this financial instrument? Why do trusts exist, and why are they used? In this post – the first of a series of posts on trusts – we’ll examine the origins of trusts, and…
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Big News on IRA and 401(k) Distributions at Death
Due to the IRS’ new regulations, your clients may be hit with a huge tax bill they didn’t expect. If you plan correctly, you have the opportunity to help clients avoid a massive tax hit. That’s because the IRS just issued final regulations about required minimum distributions. The News in SummaryThe announcement is called TD…
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Nothing Runs Like a Deere – Should You Sell John Deere Stock?
John Deere is in the headlines because it has announced plans to eliminate about 600 jobs from three factories in the US.[1] This news attracted our attention, because we have seen selling over the past couple of years, including people using our Stock Diversification Trust to take large gains without incurring capital gains taxes. Share…
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Are Taxes Killing Your Compounding?
We were recently interviewed for a piece on CBS. We discussed the magic of compounding. Compounding is at the core of investing. One of the biggest enemies of compounding is taxes. Tax-Exempt AccountsYou know, and undoubtedly speak with clients, about the compounding benefits of tax-free accounts including IRAs, 401(k)s, in both their regular and Roth…
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Tesla Without Musk? What Then?
When we last blogged about Tesla almost a year ago,[1] we advised “If Tesla won’t own the world, consider selling your shares.” Tesla was then trading at $269 per share. And since then, it doesn’t look like Tesla will own the world. Tesla shares closed on Friday at $178 each. Tesla is again in the…
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Beware This “Abusive” Tax-Planning Trap; What to Do Instead
Recently we have talked to several advisors who have been pitched by promoters offering Deferred Sales Trusts – “DSTs” and Monetized Installment Sales – “MISTs.” Those are two names for basically the same scheme. The scheme (the IRS’ word, see below) is promoted as a tax deferral strategy. California has banned the Deferred Sales Trust…
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Estate Exemption: Hidden AUM Opportunities
The lifetime estate tax exemption now is about $13.6 million for an individual and $27.2 million for a couple. Under current law, the exemption is scheduled to drop, about in half, on January 1, 2026. The new exemptions[1] will be about $7 million for an individual and about $14 million for a couple. Share this…
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Can Smoking Be Good for Your Lifetime Budget?
Many anti-smoking advocates make the blanket claim that smoking is bad for your finances.[1] But are those claims justified? This blog entry is purely an exercise in analysis. Please do not read it as advocacy. My purpose here is merely to make clear the lifetime financial implications of a pack-a-day habit. Share this post on:…
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Inflation Protection? Or Trap?
With inflation remaining “stubbornly high”[1] we today take a look at the usefulness, or lack thereof, of TIPS. Please don’t buy TIPS without reading this. TIPS stands for Treasury Inflation-Protected Bonds. The US Treasury describes TIPS thus (we added the “bold” fond for emphasis): Treasury Inflation-Protected Securities (TIPS) are marketable securities whose principal is adjusted…