Market volatility can serve as a reminder of what investors can and can’t control. What is information, and what is noise? What is predictive of the future, and what is just the past? Long-term investors should focus on what they can control and stay the course – provided they are on the “best” course.
With cyber theft often in the headlines, it might seem as though it’s not a question of whether your personal information will be compromised, but when. For example, you have likely seen CNN’s estimates that over 100 million Americans have had their personal information stolen and exposed over a one year period. This may leave you wondering, “How safe is my money?” While the question seems straightforward, the answer is complicated because it varies based on the answers to several questions. How did the breach take place? What information was compromised?
One of the most common wealth transfer and estate planning techniques is to use an irrevocable life insurance trust (ILIT) to own life insurance policies. This structure enables individuals and families to direct the transfer of assets in a tax-efficient manner from one generation to another for the benefit of the trust’s beneficiaries.
Family businesses face unique and often unanticipated challenges transitioning from one generation to the next. The struggle to maintain and protect both family interests and business interests is intricate and complex, with some businesses falling prey to changing environments and deteriorating opportunity amid generational succession.
There are two reasons for including hedge funds in a traditional asset portfolio. First, their betas with respect to the S&P 500 are often substantially less than unity, which makes them attractive diversifiers. Second, they may provide an additional source of return and risk after adjusting for their exposure to the U.S. equity market, which has been called a structural, or allocation, alpha.
Trusts have gained enormous popularity over the last 20 years. The top 1 percent of the wealthy have 38 percent of their investment assets in trusts, and the next 4 percent have 43 percent of their investment assets in trusts.1 This powerful trend is largely due to the fact that the modern trust can provide a family not only with powerful tax and asset protection advantages, but also with the flexibility and control of several key nontax trust functions, including investment management.
As a matter of Federalism, Congress cannot require the several states to adopt laws regulating investment advisers, but it can prohibit “small” investment advisers from registering with the SEC unless they have a sufficient amount of RAUM. For the last two decades, Congress has been slowly but continuously removing “small” investment advisers from the SEC’s jurisdiction.
This white paper addresses one of today’s most discussed and divisive topics involving investors, investment advisers and brokers: What legal standard of responsibility and conduct should apply to firms and individuals who provide advisory services to investors?This question is receiving a lot of attention from the SEC, the Department of Labor, the President and organizations that would be affected by changes to the existing standards of conduct applicable to investment advisers and brokers. It also was addressed in a recent Supreme Court decision.
Fostering strong advisory relationships with younger investors (often our clients' children) is a particular focus at Federal Street Advisors. In this article, we are pleased to share our approach to helping the next generation address their unique financial needs and become experienced investors.
In a year of notable financial developments, perhaps the most far-reaching and visible of this group is the sharp decline in oil prices in the second half of 2014. Crude has dropped more than 50% since June and is now trading below $50 per barrel. This precipitous decline stands in contrast to a prior four years of relative price stability when oil traded in a fairly narrow range between $93 and $118 per barrel. What are the causes of the rapid change in sentiment around oil? How have capital markets reacted? What will be the impact of lower priced energy for e