Find Your Unclaimed Property
Are you the kind of person who likes finding coins in the couch cushions? Or do you have a feeling you had an account in the past but can’t quite remember what happened to it? If so, then you might want to check out your state’s unclaimed property database.
New Year’s Financial Resolutions
Did you make a New Year’s resolution this year? Maybe you want to exercise more or reconnect with old friends. For many people, getting their finances in order is a top priority. Here are some actions you can take to get a better handle on your finances in 2021:
Here at The Family Firm, we provide clients with personalized quarterly investment updates and a comprehensive annual investment report. Many clients like to get further into the weeds and review the monthly statements produced by our investment custodian, Charles Schwab. Here are some of the key sections of the statement that might be of interest.
Who Holds Your Money?
If you are considering working with a financial planning firm, you might wonder who will have control of your assets if you become a client. Will the financial planning firm hold your assets? Will you be able to access your money when you need it?
Don’t Forget an Umbrella (Policy)
Umbrella insurance can be one of the most cost-effective ways to protect your assets but is sometimes overlooked.How Does Umbrella Insurance Work?
Umbrella insurance is a policy that covers you from a broad range of potential liabilities. It goes beyond other liability coverages you have, including home and auto policies, to cover large legal judgments.
For example, let’s say you were found liable for a multi-car accident and owe $500,000 for damage to the other cars and for the other drivers’ medical bills. If your auto policy had a $300,000 liability limit, you would have to pay the remaining $200,000 on your own. If you had an umbrella policy with a $1 million limit, the insurance company would cover the $200,000 difference.
Monte Carlo Analysis and Your Finances
One of the tools our financial advisors use when creating and reviewing clients’ financial plans is Monte Carlo analysis, which uses mathematical simulation techniques to examine a range of potential outcomes. Because investment returns are variable, Monte Carlo analysis allows our advisors to assess the likelihood of success for meeting a client’s financial goals across a range of possible outcomes.Harvesting Tax Losses and Gains
When investing in a taxable account, the timing of trades and the securities chosen can significantly impact your after-tax investment returns. Two tactics that can improve returns in taxable accounts are tax-loss harvesting and the lesser-known tax-gain harvesting.
Benefits of the Cost Basis Step Up
Clients planning to make gifts to family members or others often ask us whether it would be better to gift cash or investible assets. While the answer depends on the client’s specific situation, the ability to step up the cost basis of appreciated assets at death is an important consideration.
