The Financial Planning Channel

Charitable Planning Opportunity: Donate Private Equity Fund Interests

Private equity funds often incur significant value over time, and may face taxable distribution. For philanthropically minded clients, illiquid assets such as these that have appreciated in value can be among the most tax-advantaged items to contribute to charity.

April Real Median Household Income Shows Encouraging Growth

The Sentier Research median household income data for April, released this morning, came in at $59,361. The nominal median rose $688 month-over-month and is up $2,176 year-over-year. In percentages, the latest month is up 1.2% MoM and up 3.8% YoY. Adjusted for inflation, the latest month is up $590 MoM and $920 YoY. The real numbers equate to changes of 1.0% MoM and 1.6% YoY.

Are You Oblivious to Fee Compression?

You are my friends and clients. I have great respect for the work you do and appreciate the value you add to the lives of your clients. That’s why it’s painful for me to see so many of you headed for trouble by denying the obvious trend in fee compression.

Why the Future is Bright for AUM-Based Advisors

Over the past several months, I have been reading Dan Solin’s thought pieces in Advisor Perspectives[1] and believe his gloomy outlook for the planning profession, and, more specifically, for advisors who are compensated via AUM-based fees, is misguided.

Whether to Counsel Clients on Spending Habits

We are having more conversations with clients about their spending habits. This is a major transition in the advisor-client relationship.

The Great Reset: How Should We Then Invest?

This letter will cover the philosophical underpinnings of my thinking. I’ll also introduce some investment tools (which I will give you access to through a link later on in the letter) that express that philosophy, but you could also design a different answer that fits your own (or your client’s) portfolio construction.

DOL Throws New Lifeline to Lifetime-Income Solutions

The defined contribution (DC) community has been buzzing about lifetime-income products lately. It’s a topic that’s been dormant for several years, but there are good reasons for renewed interest.

NewsLetter - May 2017

Harold Evensky's newsletter to his readers.

Earn $100 by Participating in an APViewpoint Focus Group

An ETF sponsor is looking for 30 advisors to participate in an online focus group to be hosted on APViewpoint. The purpose of this focus group is to gather advisors’ observations on the ETF marketplace. Click for more info.

Conversions of Private Foundations to Donor-Advised Funds

For many years, donors have utilized private grant making foundations for charitable giving. Organized as either trusts or corporations, such entities have served as a means for making substantial tax deductible contributions while spreading out the actual contributions to charities over many years.

On My Radar — Reagan’s 1981 vs. Trump’s 2017

When Ronald Reagan entered office in 1981, forward return expectations were a high 18.91% (see chart below: green line, left-hand side). Equally important was that risk of loss was a low -4.29% (red line, left-hand side). The prior bear market reached its end, yet few knew it. Scream as one might, clients weren’t buying.

Buying Life Insurance with a "Selfie" and Other News about Insurance and Annuities

New technology will allow you to apply for life insurance with a “selfie.” In other news, inflation-protected annuities are becoming more appealing as the economy grows.

Charitable Planning Opportunity for Executives: Donate Private Business Interests

Clients can donate appreciated, non-cash assets to charity as a more efficient, tax smart way to make charitable contributions. Your senior executive and/or entrepreneur clients may find that their most appreciated assets come in the form of illiquid assets, such as privately held C- and S-Corp stock...

Is the U.S. Workforce Nearing Full Recovery?

We've updated our monthly workforce analysis to include last week's Employment Report for April. The unemployment rate ticked down from 4.5% to 4.4%, and the number of new nonfarm jobs (a relatively volatile number subject to extensive revisions) surprised forecasts at 211K.

529 College Savings Day: The Journey to Higher Education Begins with College Savings

Celebrate the day by opening a college savings account for the child you love.