Wealth Management Blog | WrapManager (52)

Transferring Wealth Made Easy: The Transfer on Death Registration

Posted by WrapManager's Investment Policy Committee

April 8, 2014

The transfer on death (TOD) account registration is a good way to establish beneficiaries on your non-retirement accounts. It ensures your assets are transferred to your chosen beneficiaries seamlessly, so your family may avoid the potentially costly, emotionally difficult, and drawn-out probate process.

Why Set Up a TOD Registered Account?

The TOD designation usually allows your family to bypass probate when distributing assets at your death. For instance, let’s say you have an individual brokerage account where you hold stocks and other securities, but you don’t have a TOD registration. When you pass away, those assets will likely move into probate, and legal parties will have to look to your last will and testament as a guide for how to distribute them. If the language in the will isn’t clear or there are questions, it could make an emotionally difficult time even more difficult for your heirs.

The TOD registration bypasses all of that. It takes precedence over anything stated in the will, so the assets will be distributed as you want and there won’t be any questions asked.

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Investment Planning

Want Better Portfolio Returns with Less Risk?

April 7, 2014

In today’s investment world, there are dozens of investment products and strategies out there to choose from. It’s understandable that investors might get overwhelmed when trying to decide which option or combination of options seems like the right choice for them. But amidst all the variables, there’s one thing we encourage investors to remember and fall back on: it’s not so much about the products and strategies themselves; it’s how you allocate your portfolio across different areas of the market. The old fashioned approach still holds true: a properly diversified portfolio can provide better returns with less risk over time.1 [+] Read More

The Bull Market is 5 Years Old: Where Does it Go From Here?

April 3, 2014

March 9, 2009 marked the end of one of the worst bear markets in stock market history, and the beginning of the bull market we’re currently in. Now 5 years and +177% later,1 many investors are wondering what the future holds. Is the market now overpriced? Is the next bear market around the corner? History can often help answer these types of questions, so we’ll take a look back at past bull markets to draw insight into the current environment. How Long Do Bull Markets Last? The average span of a bull market is a little under four years, but according to JP Morgan US Chief Equity Strategist Tom Lee, “averages don’t tell you anything.”1 Here’s one reason why: Stock Market Since 1900 (S&P 500 Composite Index) (Click chart for larger version) Source: Shiller, 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. Guide to the Markets – U.S. Data are as of 12/31/13. [+] Read More

Make Your Retirement Savings Last: Avoid Increasing Withdrawal Rates

April 2, 2014

Let’s say you have a $1,000,000 investment portfolio, and you’re withdrawing $40,000 of annual income to meet your retirement spending needs. Adjusting your withdrawals up to $50,000 a year doesn’t seem like a big move, and in percentage terms it’s not – you’re only increasing them from 4% to 5%. But the impact it could have on your portfolio is significant, and it can really have an adverse effect on your long-term retirement goals: [+] Read More

Specializing in Small Cap Growth: Granite Investment Partners

April 1, 2014

For investors seeking to add a small cap growth component to their diversified portfolio, or for those looking to replace their existing small cap money manager, we’d recommend considering the Granite Investment Partners Small Cap Growth Equity portfolio as an option. The Granite Small Cap Growth portfolio seeks to consistently outperform the Russell 2000 Growth Index over a full market cycle (3-5 years), while also assuming less than commensurate risk.1 To learn more about the Granite Small Cap Growth portfolio’s performance versus the Russell 2000 Growth Index, and to compare it to other small cap growth money managers, please give one of our Wealth Managers a call at 1-800-541-7774. You can also request more information by filling out this form. [+] Read More

Create Your Retirement Income Strategy with an Investment Plan

March 28, 2014

An investment plan can serve as a tool to help you create a calculated and dynamic retirement income strategy. Calculated because it takes into account important financial aspects of your life like cash flow needs, investment horizon, and risk tolerance. Dynamic because it can be adjusted as your family and financial needs change. Retirement Income Needs Shape Your Investment Plan Let’s say you are 65, in good health, and have $1,000,000 saved with a long-term goal of growth because you want to pass along assets to heirs. You’ll also need $1,000 of monthly income from the portfolio starting at age 70, to supplement Social Security retirement benefits. [+] Read More

Retirement Planning: What If You Can't Work As Long As You Want To?

March 26, 2014

Make room for more baby boomers in the workplace. From 1989 to 2012, the percent of people over age 65 in the workforce jumped from a little under 12% to 18.5%, setting a trend that’s set to continue. Between 2010 and 2020, the number of workers age 65 to 74 is expected to grow at a faster pace than any other demographic. The sheer quantity of baby boomers entering the workforce accounts for some of this growth, but it’s also being driven by cultural forces—many baby boomers really enjoy working and staying busy.1 As Wealth Managers we focus on investors’ retirement goals and the ability to meet those goals. Would your retirement goals be compromised if you weren’t able to work past a certain age? Is there a backup plan? [+] Read More

3 Ways to Control Your Expenses in Retirement

March 25, 2014

The world’s largest asset manager, BlackRock,1 conducted a survey of 17,600 investors around the globe to uncover investor perspectives on retirement. BlackRock found that nearly half of respondents had a negative outlook on their financial futures, in large part because they were unsure if their retirement savings would outlast their retirement expenses.2 Do you feel this way too? Retirement is supposed to be enjoyed, not feared, and a solid investment plan can help wipe away those concerns. As a starting point, investors can think about ways to reduce retirement expenses to help allay concerns about having sufficient retirement savings. Here are three ideas to explore. [+] Read More

Deflation and Your Investment Portfolio: Should You Be Concerned?

March 24, 2014

One of the distinguishing features of the Great Depression was marked deflation from 1930 – 1932, with prices falling precipitously (-30%) over that time.1 Deflation spiraled, and the stock market and investor portfolios tumbled with it. With recent headlines citing deflation as a concern, we’re taking a moment to remind investors about the negative effects of deflation, its present-day risk in the global economy, and what steps investors concerned about deflation can take in their portfolios. What is Deflation and How Does it Affect the Economy? Deflation occurs when prices of goods fall on a broad scale, usually due to sharp declines of money in circulation or because of a big spike in the supply of goods with little supporting demand.2 The key phrase here is “broad scale.” The prices of flat screen TVs might fall year-over-year, for instance, but that’s more likely because of productivity gains and innovation within that sliver of consumer goods than it is a broad-scale economic issue. [+] Read More

A “Wait and See” Approach Can Hurt Your Retirement

March 22, 2014

The 2008 financial crisis left many investors cautious about investing in stocks, and rightfully so. The thought of experiencing steep market declines is a recipe for losing sleep at night, and no investor wants that type of feeling about their portfolio. Investing with caution is understandable, but it’s to the point that many investors could be inadvertently hurting their retirement by choosing to remain in cash and other short term investments instead of putting their money to work. The Opportunity Cost of Waiting in Cash A recent survey by BlackRock found that nearly half of investor’s portfolios are in cash, with a relatively small proportion dedicated to longer-term investments like stocks. What’s more, half of those investors said they intend to keep that cash in their portfolios for the next 12 months, and 36% of investors said they plan on increasing their cash holdings over the course of the year.1 [+] Read More