Wealth Management Blog | WrapManager

Seton McAndrews

CFP®, Vice President Investments

5 Reasons You Might Need to Open a Trust Account

Posted by Seton McAndrews | CFP®, Vice President Investments

May 6, 2014

In order to control how your assets are passed along to your family, charities, or other entities of your choice, you can often simply make your intentions very clear in your last will and testament.

But other situations are more complex and require additional planning. This is when opening a trust account can help. Here are 5 reasons you might need a trust.

1) You Want to Protect Your Assets From Creditors

You can accomplish this by setting up an irrevocable trust. Under this arrangement, you relinquish control of your assets to the trust, such that you no longer legally own the assets nor can you control how they’re distributed. It’s a trade-off.

Pros: A future creditor cannot satisfy judgment on assets in an irrevocable trust.¹

Cons: You give up control.

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Estate Planning Trust Accounts

Windhaven Investment Management’s 3 Strategies: Which Is Right For You?

May 1, 2014

In November 2010, Charles Schwab acquired the assets and intellectual property of Winward Investment Management (now operating under the name Windhaven Investment Management). In doing so, Schwab now offers the three Windhaven money manager strategies to its retail clients, providing a distinct approach to investing for growth and risk management. The Windhaven strategies have grown in popularity since Schwab’s acquisition, though many investors may be unsure of how each strategy differs in its approach.1 Which of the Windhaven Investment Management strategies is right for you? [+] Read More

Dividend Equity Third Quarter Review and Outlook - Brookmont Capital Management

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Dividend money manager Brookmont Capital offers a review of their dividend strategy and their near, and long-term, outlook for the markets. "In the near term we expect to see money that was previously taken out of the market due to debt ceiling fears redeployed. Aside from high yield and floating rate, bond funds are still experiencing net outflows while mutual funds are adding equity exposure. Combined with extended monthly Government purchases, equities should trend higher. Cyclical names will likely continue their momentum into year end. Consumer Discretionary, the best performing sector YTD, could face increased competition for the top spot going into year-end as consumer confidence has been shaken in light of the shutdown." Download Brookmont Capital's Full Commentary Here Get Free Research Reports on Brookmont Capital Management [+] Read More

What Are the Differences Between Medigap and Medicare Advantage?

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What is Medigap? Medigap is private insurance you can purchase to help cover some or most of your out-of-pocket expenses associated with Traditional Medicare. It doesn’t replace your Traditional Medicare, it just helps you pay for it. You’d still get all of the coverage associated with Plans A and B. What Does Medigap Cover? The out-of-pocket expenses Medigap helps you pay for: Part A hospital deductibles, Part B outpatient co-pays, out-of-country medical emergencies, and fees not covered by Parts A and B.1 Why Do People Purchase Medigap? People looking to reduce out-of-pocket healthcare costs are usually the ones to purchase Medigap. There are ten Medigap plan options, and all of them are standardized by law, so the benefits of each is the same regardless of which insurer sells it. The only difference between the ten plans is the cost (it can be expensive), so shopping around is crucial.2 [+] Read More

Maximize Social Security with “File and Suspend” Strategy

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The “file and suspend” strategy can potentially boost your household income immediately, while also allowing for future increases to your social security income. The strategy works well for couples in which one spouse worked (or still works) full-time, and the other spouse didn’t work or only worked for a limited time with limited income. If your benefit is more than double your spouse’s, this strategy could effectively work as part of your comprehensive financial plan.1 How to Apply the File and Suspend Strategy To utilize the file and suspend strategy, you apply for retirement benefits at the full retirement age (age 66 if you were born within 1943-1954)2, allowing your spouse to collect their benefits based on your earnings record. Then, you immediately suspend your own benefits and delay claiming them until they are worth more at an older age. Your benefits will increase by an additional 8% for each year you delay collecting beyond your normal retirement age, up until you turn age 70. [+] Read More

Brookmont Capital Named as the Top US Large-Cap Value Manager

September 20, 2013

"Brookmont Capital Management has been recognized by several reporting agencies as the top US Large-Cap Value Manager for its five-year performance through June 30, 2013. [+] Read More

Same-Sex Marriage Treasury and IRS Guidance - JP Morgan

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JP Morgan's recent report discusses how recent legislative changes can affect the taxes and retirement plans for same-sex married couples. [+] Read More

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September 5, 2013

Over the last several weeks, much attention has shifted to the S&P 500 index as it reached and eclipsed new highs. For some investors, this was a non-event - after all, it’s a normal occurrence historically within bull markets for the S&P 500 to reach new highs (click on the chart for a larger version): Stock Market Price Return Since 1900 Source: FactSet, J.P. Morgan Asset Management. Data shown in log scale to best illustrate long-term index patterns. P/E ratios shown at price peaks and troughs use trailing four quarters of reported earnings and are shown as a one year average. Past performance is not indicative of future returns. Chart is for illustrative purposes only. Data are as of 6/30/13. [+] Read More

4 Reasons Rising Interest Rates Aren’t Necessarily a Bad Thing

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In our recent post on interest rates, we reviewed Federal Reserve policy and explained how future Fed actions may cause interest rates to rise. Some fear that with the Fed gradually taking their “foot off the gas” by reducing the current quantitative easing program, the economy could feel some negative effects. But the question we ask is: Could gradually rising interest rates actually be a good thing for the economy and your portfolio? Here are four reasons it might. Reason 1: Rising Interest Rates as a Vote of Confidence In Wealth Manager Tom Wilson’s recent piece titled “Preparing Your Portfolio for Rising Interest Rates,” he mentions that the Fed’s reductions or elimination of quantitative easing would be a sign of an improving economy. This could reflect itself in rising stock prices, which could be a benefit to portfolios. [+] Read More