TIP 1 Travel Plans Are Here Again
According to a recent report by Reuters, TSA is screening more passengers than before covid and everyone is excited to travel once again. If you’re one of those many and traveling internationally, don’t forget that renewing your passport can take over three months, and it might be worthwhile to consider supplemental insurance and adjusting your cellphone plan.
When considering traveling for longer periods of time, such as taking a cruise for months at a time as referenced in our blog: Should I Retire To the Sea?, one needs to consider how to manage finances from afar, sometimes without access to internet. That’s where prudence suggests that delegation might be a great idea. Garden State Trust Company could be the one to delegate investment chores too, because as fiduciaries we are required by law to put client’s interests ahead of our own. If that sounds good to you, let us know and we’ll elaborate.
TIP 2 America Is the Land of Investors
Would it surprise you to learn that a majority of American households own mutual funds? It’s true, according to the Investment Company Institute’s 2023 Fact Book. An estimated 68.6 million U.S. households, 52% of all households, were mutual fund investors in 2022. If we add exchange-traded funds, closed-end funds, and unit investment trusts to the mix, the figures go to 71.7 million households, 55% of all households.
Read more about the mutual funds many Americans hold in our latest blogpost: A Nation of Investors
TIP 3 Records Are Meant to Be Broken
For those that hold substantial wealth, spending money can become an enviable problem to have. From finding the best charitable causes to becoming an art collector, new hobbies become available. Real estate investing may take on a whole new level of importance too.
Last month Jay-Z and Beyonce broke a different kind of non-musical record and bought the most expensive home ever in California. Although the price tag of $200 million is difficult to fathom, the original listing for $295 million is even harder. Hopefully, they’ll love their new home, since the pool of people that could afford to buy it from them is tiny. On the other hand, many famous celebrities have bought multi-million dollar homes and had them sell for a multiple of the original purchase price.
TIP 4 Art Finds and Appraising
Sometimes someone has an eye for value, can see it right away, and then the world agrees with them.
This happened recently in our very own keystone state, as Paul Brown decided to salvage two rose windows. What he didn’t realize at the time was that those windows were from Tiffany, and that $6,000 used to salvage them could turn into $300,000 – $500,000 when they are sold.
Appraising art can be difficult, but it can be critical for tax purposes. When art is passed down in the family, it can have more value than anticipated, triggering tax consequences. That’s why an appraisal is an important step when it comes to estate planning. By creating a valuation ahead of time from a qualified appraiser, some arguments with the IRS can be avoided. At Garden State Trust Company, we understand that every estate is unique, but many of the pitfalls in estate settlement are not. Please let us know if you’d be interested in learning more about how to create a smooth estate transition.