Rule #1: When in doubt, refer to the trust document; an investment policy for a trust cannot be created without it.
One advantage of creating a trust is that the grantor can have it tailored to his or her needs; therefore, although there may be provisions in common, trust documents vary widely.
When it comes to their retirement accounts, many investors often fail to think about required minimum distributions (RMDs). That oversight can lead to unnecessary tax burdens and other financial issues. In order to handle RMDs effectively, an understanding of the rules—and common errors people make—can be beneficial.
If you have worked at the same company for a long time, or received a large inheritance, it's likely that a significant portion of your wealth is tied up in a concentrated stock position. While this can certainly have monetary benefits when the company stock is rising, it also comes with a certain level of risk. A concentrated position means that you are reliant on the success of a single company—while the market as a whole might bounce back from a decline, an individual stock might not. Additionally, selling the entire stock position may result in a large capital gains tax bill.
There are several options for mitigating this risk. If you are charitably inclined, a donor-advised fund may be an attractive solution, because of its ease, convenience, and overall benefits.
As a Wealth Management Consultant, I'm often asked two questions "What is a financial plan?" and "Is a financial plan different from investment management?" In short, yes—financial planning and investment management are two distinct wealth management tools that work together to help you achieve your short- and long-term financial goals.