WrapManager's Wealth Management Blog

International money manager Cambiar Investors reviews the past quarter, as well as the performance of their International Equity ADR and Global Select money manager strategies. “Aggregate global equities posted modest gains in the first quarter – a moral victory of sorts, given the broad sell-off in stocks that occurred in January. Buyers stepped in toward the end of the quarter, and many indices needed the last week of March to get back into the black. Stocks remained resilient during the quarter, despite ongoing concerns about Emerging Markets, valuation concerns in the U.S., and the increasing political uncertainty via Russia and their activities in the Ukraine.” Download Cambiar's Full Commentary Here Get Free Research Reports on Cambiar Investors [+] Read More

At the end of last year, 55 tax breaks1 and incentives known as “tax extenders” expired. Several of them were corporate (57%) and related to things such as research, experimentation, and energy use.2 But there are two in particular that we think could affect you if they’re not extended this year. We’re writing to make you aware of them as you develop your tax planning strategies for 2014 and beyond. 1) Deducting State Income vs. Local Sales Taxes This provision allows for taxpayers to choose between deducting state income taxes vs. state sales taxes. So, if you live in a state with a high income tax, like New York or California, you could opt to deduct your state income tax versus deducting sales taxes. The opposite would be true for a state like Florida or Texas, where there is no state income tax. In those cases, you may want to deduct state sales taxes on your return. [+] Read More

The Stretch IRA strategy is a method for lengthening the life of your IRA assets, in hopes they span multiple generations. We stress the word “method” because the Stretch IRA is not actually a product – it’s a wealth preservation strategy your beneficiaries can use to stretch the life of the IRA assets they inherit from you.1 We’ll explain how it’s done below, but first we’ll help you understand the benefits. Stretching Your IRA Can Help It Grow Tax-Deferred Longer Stretching your IRA can lower the required withdrawal amounts your heirs have to take each year, meaning the value of your IRA can grow tax-deferred longer – a benefit that can keep the IRA in the family for generations. [+] Read More

Probate comes from the Latin phrase “to prove,” and refers to the process of proving to a court that a last will and testament is valid. It is frequently a difficult and lengthy process, and in many cases can be quite expensive. Below, we’ll outline three steps you can take to help your family avoid probate. Settling an estate is a difficult time as it is, so it’s worth it to take the right steps taking today to ensure it goes smoothly. Probate Fees Can Add Up Quickly The fees vary from state to state, but just to give you an idea, the typical probate costs on a $500,000 estate in California could range between $14,390 and $27,390. On the higher end, this could mean losing over 5% of your estate to probate fees, not to mention all the time attorneys and family members will have to spend seeing it through.1 Avoid Probate with These 3 Steps In many cases you will likely need to apply some combination of the below approaches, so it is important to speak with your financial advisor and an estate attorney to know which options are right for you. [+] Read More

First and foremost – don’t pay extra for the advice! As part of a comprehensive investment plan, your financial advisor should provide guidance on your 401(k) asset allocation, and which investments you choose depends on how you’re allocated outside of your 401(k). You should receive a detailed analysis—and this advice—at no extra charge. If you don’t have a financial advisor, have one look at your complete financial picture including your 401(k), and see what type of advice you get. Then, repeat this exercise with two or three different financial advisors and compare each, to see which one offers the most compelling and thoughtful advice. That might be the financial advisor worth hiring. In the meantime, here are 4 sound tips for setting up your 401(k) asset allocation [+] Read More

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. [+] Read More

When you start your career in show business at the age of 1 ½, you are bound to be a legacy. That’s what Mickey Rooney did, with an illustrious acting and performance career that spanned some 90 years and included silent comedies, Shakespeare, Judy Garland musicals, Andy Hardy stardom, television and the Broadway Theater. In 1983, the Motion Picture Academy presented Rooney with an honorary Oscar for his "60 years of versatility in a variety of memorable film performances," which complimented the 1938 special award he shared with Deanna Durbin for "bringing to the screen the spirit and personification of youth."1 Forever an icon, he will greatly be missed. In his legacy, though, we’re also reminded of the importance and value of proper estate planning. [+] Read More

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

One of the great things about setting up beneficiaries on your retirement and other investment accounts is that you can set them up virtually any way you want. You can relinquish complete control of your assets, or you can set up systems to maintain some control over how the assets are distributed. The choice is yours. When deciding how to assign beneficiaries on your retirement and other investment accounts (including your IRA beneficiaries), there are a few important considerations. Here are five questions to discuss with your financial advisor when discussing setting up your beneficiaries. [+] Read More