Worth Knowing®

Worth Knowing®

 

For the 2016-2017 school year, the year-over-year average increase in published tuition and fees for colleges and universities was 3.6 percent for private not-for-profit schools, and 2.4 percent for in-state students and 3.6 percent for out-of-state students at public schools.

Source: College Board 2016


Total U.S. charitable giving will increase by 3.6% in 2017 and by 3.8% in 2018.

Source: Indiana University Lilly Family School of Philanthropy


The average healthy 65-year old couple that retired in 2016 will spend an estimated $377,000 on healthcare costs throughout retirement.

Source: Motley Fool


Impact investing in the U.S. totals $8.72 trillion towards the end of 2016.

Source: US SIF Foundation


Strong cyber hygiene development and practice includes; the implementation of robust passwords, and the security of devices especially when travelling. Determine if encryption for phones, laptops and smart devices may be needed. Also, remember utilize detection software for protection from spear-phishing (an email fraud attempt targeting confidential information) and malware (software intended to damage or disable systems).


Investment success isn’t about winning or losing, but about meeting life goals and objectives— in other words, surviving and thriving.

Source: Kathleen Burns Kingsbury


Coming together is a beginning. Keeping together is progress. Working together is success.

Source: Henry Ford


Capital goes where it’s welcome and stays where it’s well treated.

Source: Walter B. Wriston


In addition to financial advice, investors continue looking to advisors for assistance with matters related to the broader life issues of retirement (estate planning), insurance and health care.

Source: Spectrem


The most highly ranked areas of life where people feel they should be paying more attention are: Health, giving back to society, pursuing passions, family and connections with others.

2015 U.S. Trust Insights on Wealth And Worth Survey


A majority of the wealthy (66%) use some type of professional financial advisor such as a private banker, wealth manager, broker or financial planner

2015 U.S. Trust Insights on Wealth And Worth Survey


65% of survey respondents believe that unexpected healthcare costs would cause the greatest stress on their finances.

Source: Merrill Lynch Edge Report, 2015


For the 2015-2016 school year, the year-over-year average increase in published tuition and fees for colleges and universities was 3.6 percent for private not-for-profit schools, and 2.9 percent for in-state students and 3.4 percent for out-of-state students at public schools.

Source: College Board 2015


Investor satisfaction with their alternative investments varies considerably by asset class.  Investors have been most satisfied with returns from real estate, followed by private equity.  Hedge fund performance fell short of expectations.

Source: Preqin Investor Interviews, February 2015.


Capital goes where it’s welcome and stays where it’s well treated.

Source: Walter B. Wriston


The five critical factors for high net worth investors in selection of an advisor are, in order of importance, trustworthiness, transparency, investment track record, depth of products and services, and fees and commissions. The first three scored over 90 percent in importance.

Source: Spectrem Group survey


Investors with at least $5 million in assets and annual income of $200,000 prefer smaller boutiques as opposed to larger Wall Street firms by virtue of greater perceived independence and client-centricity.

Source: Luxury Institute research


Across all income levels, investors who have developed comprehensive financial planning strategies are more likely to feel they are on target to achieve their financial goals.  Fifty three percent of those with plans versus twenty-six percent of those without plans felt very confident about managing money and investments.

Source: Household Financial Planning Survey, Certified Financial Planning Board


Generally allocating 10-20% of a portfolio to alternative investments is most appropriate, although the allocation can be higher in unique situations.  This is a large enough allocation to be impactful in terms of enhancing returns or helping to reduce risk, without being so large that it dominates the overall portfolio.

Source: The Role of Alternative Investments in a Diversified Investment Portfolio, Baird Private Wealth Management, 2013


Coming together is a beginning. Keeping together is progress. Working together is success.

Source: Henry Ford


Investment success isn’t about winning or losing, but about meeting life goals and objectives— in other words, surviving and thriving.

Source: Kathleen Burns Kingsbury


Conventional guidance for retirees is to rollover employer-sponsored plans into an IRA due to the broader investment options available. However, circumstances where this may not be advantageous include, significant positions of appreciated employer stock in the qualified plan, access to funds for borrowing needs, and protection from creditors, depending upon state law.


More than an estimated $30 trillion of wealth is expected to transfer from boomer parents to the millennial generation in the next three to four decades.

Source: “The Greater Wealth Transfer: Capitalizing on the Intergenerational Shift in Wealth,” Accenture


The Affordable Care Act mandates a new 3.8 percent Medicare contribution tax on unearned income to be imposed on investment income over $200,000 for single individuals and $250,000 for married individuals filing jointly.


Beyond the annual exclusions from gift tax (presently $14,000), there is an unlimited exclusion for payments made directly to an educational institution or medical provider. Payments qualifying for the educational exclusions are limited to tuition only.


Giving by individuals to charitable organizations represents nearly 9 out of every 10 dollars donated. Total giving to charitable organizations continues to be about 2 percent of GDP and giving continues to increase in every category of giver (foundation, corporation, bequest and individual).

Source: Charity Navigator


Common estate planning techniques are: (1) create a will, (2) establish a trust, (3) update estate plans, and (4) plan for disability.


Revisions to the Washington Trust Act that took effect January 1, 2012 require substantial notice to beneficiaries from trustees of irrevocable trusts in Washington State.


Asset allocation strategy is essential to attainment of financial objectives, but asset location—placing tax-inefficient investments in tax-advantaged accounts—may enhance after-tax performance. Tax-aware financial planning and tax-efficient portfolio construction may be of increasing importance with the prospect of potentially higher taxes.


Increasingly, financial advisors argue that treasure assets, such as art, help diversify portfolios and protect against inflation. However, few of the wealthy own treasures solely as an investment or a hedge if conventional assets fail. The primary motivation for owning treasure assets remains emotional.

Source: Ledbury Research & Barclays Investment Management survey


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