How To Avoid Financial Meltdown

Just wanted to share an experience I had this week with a Revocable Living Trust client. This client is a retired physician and his wife's estate. They had set up a Revocable Living Trust. I was working with them on a Trust and Estate planning review. Here is what we found with the review we just completed. The trust was properly executed but not properly funded. The result of not having funded the trust properly before now could have been a Disaster for the heirs if the couple had died before the review or before they complete the implementation of these strategies. They hold real estate in three states leaving potential probate liability in all three states. They have approximately $2 million in real estate value. Conservative estimate of current probate risk is anywhere from $150-400K. It actually could go higher but it is unlikely to be less. This is unnecessary and avoidable risk for the estate. Our attorneys tell us that Properly funded trust owned real estate avoids the probate process and all of that unnecessary expense. Saving for the estate if they complete the funding process would equal$140-390K using the recommendations identified through the review process. The attorneys we work with can take care of all the legal paperwork for a very reasonable price. Failure to complete the process is likely to result in the need to sell the beach condo and ski condo in order pay the probate costs on both properties.

Then with the financial portion of the review process we identified other potential problems and offered other suggested solutions. The financial assets are currently exposed to far to much market risk considering the clients ages. In fact like many potential clients they have lost over 35% of their liquid assets to this market turbulence. Repositioning of assets into more age appropriate categories will protect the clients assets from virtually all market risks. Some percentage of their assets will still remain exposed to market risk or to inflation risk. You can not avoid 100% of risks with all assets and still maintain adequate liquidity. The financial review process is designed to help determine the right mix or risk money, safe money and liquidity ratios need to protect the clients best interests. When this is completed the clients will never again have to worry about the impact of market turbulence on the majority of their assets. We can actually guarantee this family the prospect of roughly doubling their money over the next 10-11 years with additional upside potential if market conditions turn around. We can do this at the same time that we protect the bulk of their assets from risk

A fairly recent study discussed in the Wall Street Journal indicated that approximately 75% of high net worth individuals are either moving all or most of their assets to new financial managers. It is no surprise considering the losses suffered by most individuals. However, NONE of the assets I have positioned for my clients have lost money!!! We have never lost money for any of our clients.

All in all we would say that was a nice days work! How can we help you protect and grow your assets, increase your income, and or increase your legacy for your loved ones. Feel free to contact us. How can we help you to find out what strategies are right for you and your unique
situation?

website address www.columbusfinancialplanningpros.com
email address polarisfinancialservices@gmail.com

Positive Economic News For A Change

The Associated Press wrote a news article today titled "Leading Indicators Rise For First Time in 5 Months" Unfortunately this was September data not October data but it is still good news. Deliveries and orders rose by a very modest 0.3% but an increase is still an increase. This shows the economy is trying to grow!! Lets compare that to July with a 0.7 drop and August with a 0.9% drop. However we will still be down between 3-4% for the year.

AP out of DC also had some serious economic news and it wasn't as positive as that from the NY report. They found that only 15 % of those surveyed believe the economy is moving in the right direction compared to the 28% who felt that way just a month ago. With all the Economic turmoil less than 60% are happy with what is happening in their own lives. Everyone from all levels of society are concerned with the economic developments. 1/2 are concerned about their mortgage and credit cards, 1/3 are concerned about keeping their jobs and 70% are concerned about their investments falling and the impact on things like their retirement, medical bills and college costs.

In spite of all the bad news or maybe because of it you need to take positive steps to minimize the impact on you! Protect yourself from any further drops in value. No this does not mean putting everything under your mattress. You need to look at products that do the following things. Protect your principal at all costs, Get guaranteed growth from at least some of your assets currently its possible for a 40year old to get a minimum of 6-7.2% per year increase in Income Account Value, Maintain the upside potential of making more when the economy starts to recover, Make sure you have a chance of beating inflation with your assets so you don't loose buying power over the long term.

We can help you achieve all of these things in you financial arena! Does that sound interesting?
How can we Help you? Get in touch with us or send an email.

website www.columbusfinancialplanningpros.com
e-mail polarisfinancialservices@gmail.com