This month our newsletter articles focus on financial security. The most important article touches on the importance of asset allocation. Asset allocation is how you diversify your investments among different asset classes: stocks, bonds, and short-term investments (such as money markets). Asset classes react in different ways to ever-changing economic conditions. The correct asset allocation can help provide you with peace of mind through economic ups and downs and may even increase your potential for better returns over time.
Always remember that neither diversification nor asset allocation guarantees a profit or guarantees against loss. We maintain a disciplined approach to asset allocation where we create an Investment Policy Statement at the beginning of our relationship with our client establishing a mutually agreed upon asset allocation. As time goes on we revisit the Investment Policy Statement to be sure the current asset allocation is meeting the needs of our client.
The emergence of the Independent Trust Company has challenged the traditional sources of trust and estate administration and investment services, such as bank-owned companies, for the following reasons:
Continue reading “Why Choose an Independent Trust Company?”
Determining how to invest your retirement savings is dependent on several factors.
Two key factors in the process are your tolerance for risk and your time horizon. Increased risk brings greater return, but also increased volatility and market fluctuations. One key to successful investing is balancing the risk you are willing to take with your time horizon.
Continue reading “Financial Resources for Allocating your Retirement Savings”
A Will is necessary no matter the size of your estate. Be aware, if you die without a Will, the laws of the State of New Jersey dictate who is to receive your estate. Wouldn’t you like to be the one who decides on the beneficiaries of your estate rather than let the state choose them? Lastly, consider if you have an only child or if there are other children or grandchildren that might inherit your estate. When minor grandchildren are involved there are other things you might want to consider. Continue reading “The Importance of Wills”
A living trust is an agreement in writing, in which you the owner (the Grantor) of assets transfers legal title (not ownership) to a trustee. The trustee then holds and manages these assets for the benefit of the owner (you) or someone designated by the owner. Continue reading “Benefits of a Living Trust”
This past October, our community was hit by one of the most destructive storms ever experienced on the East Coast. Our office in Toms River escaped without damage, but members of our staff and many of our clients were not so fortunate. Garden State Trust Company is proud of the resilience of our community and the generosity of all those that have donated their time and money to restore what was lost. We, like you, know that 2013 will be a year of rebuilding but also of renewed hope for all those affected. In the spirit of moving forward, we present our new monthly newsletter which was designed to provide our readers with valuable financial guidance. Each month we will present a newsletter filled with topics that we believe will be both informative and valuable to you as you plan for the future.
We wish you and your family the best in 2013.
I recently read an interesting article from Spectrem’s “Millionaire Corner” titled High Net Worth Wealth Management: Protection From Dementia. The article reports that the greatest fear of millionaires is losing the ability to make financial decisions. I would modify that to include all investors of an advanced age. According to a well-publicized study by Harvard University researcher David Laibson the Article reports that the ability to make effective financial decisions peaks in middle age and then declines substantially over time. In fact, significant cognitive impairment that is not dementia affects another 30% of seniors 80 and over. According to elder law specialist Jeff Marshall that leaves half of investors age 80 and older unfit to make complex financial decisions. Continue reading “Protecting Assets From Dementia”
No one likes to think about the possibility of not being able to manage their own affairs. Still, accidents and illnesses do happen. If you worry about who would manage your assets if you couldn’t do it yourself, then you might want to consider a Standby Trust. Continue reading “A Standby Trust To The Rescue”
Several years ago I was introduced to a retired couple From Ocean County, New Jersey who were starting to have health issues.
When the husband ended up in the hospital their daughter who lived out of state and from whom they were estranged, came to visit. She was shocked to find out that while her Dad was in the hospital her mother allowed the bills to go unpaid, dividend checks were not cashed or deposited to their checking account and no one was overseeing their investment portfolio. Continue reading “When a Living Trust Makes Sense”
In making the case for engaging an Independent Trust Company over a large bank or investment company one of the major considerations is the level of personal service offered by the independent trust company. Let me share a recent experience I had with a client as an officer of Garden State Trust Company, an Independent Trust Company. Continue reading “Personal Service Sets Independent Trust Companies Apart”