Families that successfully manage generational planning actively foster communication and trust within the family, identify shared values that define the family, take time to establish a thoughtful family governance system and give younger members the opportunity to have an impact through active participation in family affairs.
Given the evolution and complexity of the insurance industry, due diligence on carriers, products and advisors is more important than ever, especially for families of significant wealth. Examination of carriers must go beyond rating services; analysis of products must go beyond illustrations, and selection of an advisor must go beyond initial numbe...
The major rating agencies have published a number of reports highlighting the favorable trends for the life/annuity and health insurance industry. This paper provides a synopsis of recent reports from A.M Best, Standard & Poor's, Fitch and Moody's.
While the tax advantages of life insurance are important, pricing is also critical. Access to policies priced specifically for ultra-wealthy individuals can enhance planning effectiveness and deliver significant value over time.
Researchers tested the effectiveness of life insurance's investment characteristics in three estate scenarios under a Monte Carlo analysis involving three different investment portfolios. Their results show life insurance creates more wealth regardless of when death occurs for even the most liquid, well planned estate.
Policy owners must avoid projecting today's economic environment forward for an extended period, causing them to choose products that lock in long-term mortality and interest rates. Such a move not only virtually ensures long-term underperformance but also sacrifices the flexibility necessary to take advantage of conditions as they change.
In light of the current environment, it is easy to lose sight of the proven policyholder protections that the life insurance industry continues to provide, including regulatory and third-party oversight, as well as mechanisms to support policyholders of troubled companies.
Wealth advisors have a fiduciary responsibility to not only provide clients with unbiased, trusted advice but also to protect the information they deem most important. Clients’ privacy and, more importantly, peace of mind are at risk if advisors do not address and increase their security protocols and procedures.
Portfolio volatility needs to be considered in making asset allocations at a given level of risk, and that volatility can take on extreme values that depend on the volatility of volatility, or vovo. This paper from the National Association of Active Investment Managers explores vovo-related concepts and offers insights on tactical asset allocation.
A paper from The Madison Group says the ability of family members to meet, discuss and make decisions about issues is a critical component of long-term harmony in the family. Discussion begins with the individual members learning the skills to "show up" in a positive way and is carried through in a process that can be trusted and honored.
In addition to having an external mission, many family foundations create an internal one specifying how the foundation will function in family-building, education and the transfer of family values from one generation to the next. Foundation Source offers concrete examples of how some families are using their foundations to make a difference within...
Globalization has increased growth opportunities not only for companies but also for those in the business of kidnapping for ransom. The key is to prepare for dangers both at home and abroad and to assess readiness for a complex resolution process if a kidnapping should occur.
It is increasingly common for estate planning attorneys to reduce estate taxes on tangible property by transferring ownership of that property from an individual to a trustee of a trust. However, this strategy can expose an entire estate to some serious potential uninsured claims.
Social media is fun. It can create communities and even revenue streams for businesses. However, risks abound. Understanding one's personal responsibility and liability is essential to remain safe in online interactions.
This paper highlights the concentration risk embedded in traditional portfolios, describes a simple risk parity strategy and demonstrates its out-performance over nearly four decades, and then delves into the more advanced portfolio construction and risk management techniques used to implement risk parity portfolios.