Frontier markets are considered to be low-liquidity outsiders beyond developed and emerging markets. They offer the potential for strong long-term returns and diversification benefits at a reasonable level of volatility. However, they come with significant risks that need to be factored into an investment strategy.
Modern dynasty trust laws, such as those in South Dakota, provide the settlor with the flexibility to deal with uncertainty while maintaining the benefits of intergenerational planning. Directed trusts, trust protectors, special purpose entities and other state statutory trust provisions provide the flexibility that has made the modern dynasty trust a popular planning tool for 2011 and beyond.
The 2010 Tax Act reinstated the gift, estate and generationskipping transfer taxes that were repealed earlier in 2010. The reinstatement comes with increased transfer tax exemptions and favorable rates for 2011 and 2012. Consequently, the opportunity for making new or additional gifts to trusts has never been more favorable.
Research shows that we are not good at predicting what makes us happy as individuals and that having considerable wealth does not make us happier. However, having control over our lives does. A financial plan that starts by discovering the key goals and issues that motivate an individual can lead to greater personal happiness.
Becoming thoughtful and intentional about altruism and the passion to make a difference is the difference between having good intentions and being intentional about our values and commitments to others. This newsletter offers tips on how to give better, helps 'tween philanthropists ask seven critical questions about giving, and provides a visual way to explain the difference between charity and philanthropy.
This paper addresses the options families have for investment education and offers basic direction for getting a true junior investment club off the ground. Contents include: --Five questions for families considering a junior investment club --Developmental options for investment education --Alternatives to true investment clubs --What is a junior investment club? --Why a junior investment club? --How to start an investment club --How to run an investment club --Sources and additional resources
Valuation-tilted investment strategies offer many benefits of cap-weighting – broad diversification, low costs, transparency and modest turnover – plus the benefit of the value-premium phenomenon. And unlike traditional passive approaches, these strategies incorporate all stocks, differentiate across the valuation spectrum, and respond to changes in valuation dispersion.
Studies show that "emerging" hedge fund managers tend to outperform their larger, more established brethren. However, this additional alpha should not blind investors to the need for proper operational due diligence, say the authors, who suggest practical tips to ensure meaningful due diligence and risk mitigation.
Researchers demonstrate that a portfolio with a specific beta constraint can be improved by moving toward a leveraged bond position. When that is permitted, replacing a specific beta target with an acceptable "beta range" adds the flexibility needed to achieve even better returns.
Now is a good time for not-for-profit organizations to clean their gift closets by assessing endowment funds. This can help to keep funds from being misapplied, identify funds that are dormant due to donor restrictions, and reveal uses that could be applied to new organization initiatives. Check the documentation and review the terms of each gift.