Day: February 26, 2015

DEAR GARDEN STATE TRUST COMPANY: WHAT THE HECK IS A QLAC?  IS THIS SOMETHING I NEED TO CONSIDER?  —EXPECTING RETIREMENT Dear “Expecting”, A QLAC is a “Qualified Longevity Annuity Contract.”  The idea has been in the financial press because the IRS finalized regulations on these instruments in July. A QLAC resolves two potential problems of retirement…

DEAR GARDEN STATE TRUST COMPANY: WHAT’S THE DIFFERENCE BETWEEN A “FEE-ONLY” INVESTMENT ADVISOR AND A “FEE-BASED” ADVISOR?  THEY SOUND ABOUT THE SAME TO ME.  WHICH TERM APPLIES TO YOU?  —GRAMMARIAN Dear “Grammarian”, An investment advisor has two potential sources of income.  The advisor can earn commissions from the sale of securities to his or her…

DEAR GARDEN STATE TRUST COMPANY:   I IMMIGRATED TO THIS COUNTRY FROM NORWAY AS A CHILD, AND I HAVE RELATIVES THERE WITH WHOM I REMAIN CLOSE.  ONE OF MY CHILDREN LIVES IN OSLO NOW AND MAY BE SETTLING THERE PERMANENTLY. FOR THE PAST SEVERAL YEARS, I’VE HELPED FUND SOME FAMILY REUNIONS.  THE GET-TOGETHERS ALTERNATE BETWEEN…

DEAR GARDEN STATE TRUST COMPANY:   I’VE HEARD THAT SOON WE’LL BE SEEING LEGITIMATE INVESTMENT OFFERINGS ON LINKEDIN AND FACEBOOK.  IS THAT TRUE? —SOCIAL NETWORK SKEPTIC Dear “Social”, Maybe. The rules for advertising investment solicitations were overhauled in the Jumpstart Our Business Startups Act of 2012.  The goal was to make it easier for young…

DEAR GARDEN STATE TRUST COMPANY,  I’M GOING TO MAKE A MAJOR CHARITABLE GIFT TO MY ALMA MATER, BUT I ALSO NEED TO PROVIDE FOR MY HEIRS. HOW CAN I BALANCE THESE COMPETING INTERESTS? —BUDDING PHILANTHROPIST Dear “Budding”, Explore a split-interest charitable trust.  Such a trust has both private and charitable beneficiaries (hence, the “split”). You…

DEAR GARDEN STATE TRUST COMPANY,  MY PARENT HAS BEEN RETIRED FOR MANY YEARS AND IS BEGINNING TO HAVE SOME TROUBLE WITH LIVING INDEPENDENTLY.  WILL MEDICARE COVER ALL OR PART OF THE COST OF A NURSING HOME?  —WORRIED CHILD Dear “Worried”, No, neither Medicare nor supplemental medical insurance for retirees covers the cost of long-term care.…

DEAR GARDEN STATE TRUST COMPANY, I EXPECT TO LEAVE GENEROUS INHERITANCES TO MY GRANDCHILDREN. ALL OF THEM EXCEPT “ALAN” HAVE FAMILIES AND CAREERS AND WILL, I BELIEVE, MAKE GOOD USE OF THE MONEY. ALAN, UNFORTUNATELY, LACKS MOTIVATION. LAST YEAR HE QUIT COLLEGE AND MOVED BACK IN WITH HIS PARENTS. HE DOESN’T EXPRESS ANY INTEREST IN…