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Advisors Need To Focus More On State Estate Taxes (The Wall Street Journal)
Advisors need to start paying more attention to state estate taxes, writes Michael Foltz of Chicago-based Balasa Dinverno Foltz in a new WSJ column. 18 states and the Washington D.C. have their own estate taxes, as different from federal estate taxes and each state has different tax exemptions he points out.
“Where a client retires is a very relevant question. Some clients may be willing to relocate to states that have beneficial tax laws. However, for those who don’t want to move, one way to mitigate state estate taxes is to adopt estate-planning strategies in a jurisdiction where there is no tax. This can be done even if you don’t live there.”
Even as stocks have made new all-time highs since May, the “Smart Money Flow Index” has been heading lower. The index is “calculated by taking the action of the Dow in two time periods: the first 20 minutes and the close,” according to Bloomberg. “The first 30 minutes represent emotional buying, driven by greed and fear of the crowd based on good and bad news. There is also a lot of buying on market orders and short covering at the opening. Smart money waits until the end and they very often test the market before by shorting heavily just to see how the market reacts.”
Advisors Should Not Become Their Clients’ Best Friends (WealthManagement.com)
Financial planners often get to know about their clients’ wealth but also about their relationships. And it isn’t advantageous for either if the client sees them as “friend” or “foe” writes Patricia Angus, in a new WealthManagement.com column. Instead she thinks its best to find a middle ground.
“I’ve found that genuinely caring about the client’s welfare and expressing that in a “friendly” way, can certainly help the client-advisor relationship, so long as the advisor understands where the lines ought to be drawn. On the other side, an advisor probably can’t be effective professionally if she holds the in disdain. It’s the advisor’s duty to stay aware of when the relationship has gotten too close or if the distance has gotten too far apart. If either situation arises, it might be best if the advisor could have an “it’s not you, it’s me” conversation to either set the relationship on a more balanced course or end the professional relationship graciously. Either way, the advisor should consider what’s best for the client.”
Investors Are Still Confident On Their Fixed Income Investments (Investment News)
The idea is that whenever the Dow makes a high that isn’t confirmed by the index “there is trouble head.” The DJIA has made three new all time highs since May and none of them have been confirmed by the index, reports Business Insider’s Matthew Boesler.
72% of investors are still confident about their fixed income investments, according to a survey of 1,000 investors with at least $US100,000 in investible assets, by Guggenheim Investments. “I think investors are encouraged by the breadth of choices becoming available to them in fixed income,” William Belden of Guggenheim told Investment News. “And while you’ve seen some recent redemption activity overall on the heels on rising interest rates, there are pockets of fixed income, like defined maturity, bank loans and shorter-duration products that continue to experience positive inflows and carry the characteristics that investors look for from fixed income — steady income and stability of principal.”
Financial Advisor magazine has named the research managers for their 2013 All-Star Research Managers team. The 1. Melissa Joy, partner at Center for Financial Planning. 2. Lydia Sheckels, chief investment officer (CIO) at Wescott Financial Advisory Group LLC. 3. Justin Pawl CIO and Thomas Villalta, Director of Investment Research at Covenant Multifamily Offices. 4. Lew Altfest, CEO and CIO; Andrew Altfest, executive vice president; Ekta Patel, managing advisor; and Peter Jun, investment analyst at Altfest Personal Wealth Management. 5. Brad McMillan, CIO; Simon Heslop, senior vice president, asset management; Brian Price, director, asset management, James McAllister, manager investment research; and Meagan Swanson, senior fixed income analyst at Commonwealth.
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