Banknotes

When mapping out an investment portfolio, any good advisor will advocate that you diversify your holdings. It simply makes sense – having a variety of asset types helps to insulate you from risk, in the event of a downturn in any specific area. However, the same logic doesn't apply when it comes to banking. In that case, having all of your eggs in the same basket is a strategic advantage, not a liability.

Here's why.

The coronavirus has radically affected the lives of everyone in this country – and, indeed, the world – in an unprecedentedly short amount of time. News of it on the radio, TV, and internet seems all-consuming. This piece is not intended as an update on the virus, because by the time it’s published any news contained herein will be outdated. Instead, the purpose here is to discuss the investing environment, both during this crisis and beyond.

No getting around it: August was a rollercoaster. Market volatility increased, understandably impacting investor confidence. So what do we have to look forward to in the near future – an upswing, a downswing, more of the same?

At some point in our lives, we may inherit a home or another form of real property, which the Internal Revenue Service defines as “land and generally anything built on or attached to it.” To prepare for that possibility, it’s helpful to gain an understanding of some of the jargon that one can reasonably be expected to encounter when inheriting real estate. For instance, what does “cost basis” mean? And what is a “step-up,” and what kind of tax break does it offer?

Estate planning is defined as the process by which an individual plans for the acquisition, use, conservation, and disposition of property or wealth. The National Network of Estate Planning Attorneys offers a clearer explanation:

I want to control my property while I am alive and well, care for myself and my loved ones if I become disabled, and be able to give what I have to whom I want, the way I want, when I want, and, if I can, I want to save every last tax dollar, attorney fee, and court cost possible.

Regardless of the nature of your business, powerful, unseen laws influence the quality of your client relationships. More to the point, they determine success or failure. When abiding by these laws, your company enjoys the following benefits: 

• Your networks rapidly grow
• Prospects become enthusiastic customers
• Clients view you as trusted partners, rather than expenses to be managed
• Others become eager to help you succeed

The death of a loved one is difficult time.  Emotions flow and it can be hard to keep track of the many arrangements that need to be made in a relatively short amount of time.  From funeral decisions to final tax returns, here’s an overview of the process:

Last month we discussed what an estate plan is, certain items to take into consideration when constructing an estate plan, downfalls of not planning and the extensive list of benefits of a well thought out estate plan.  After the article was posted I received some questions on what type of estate plan is best.  Tough question to answer as the answer is based on personal objectives.  Due to the considerable number of inquiries; this month’s article will go over the most commonly used estate plans. 

As a general rule, there are four basic ways to leave a legacy: (1) by will, (2) by trust, (3) by beneficiary designation, and (4) by joint ownership arrangements.

If you're a decade or so away from retirement, you've probably spent at least some time thinking about this major life change. How will you manage the transition? Will you travel, take up a new sport or hobby, or spend more time with friends and family? Should you consider relocating? Will you continue to work in some capacity? Will changes in your income sources affect your standard of living?

When you begin to ponder all the issues surrounding the transition, the process can seem downright daunting. However, thinking about a few key points now, while you still have years ahead, can help you focus your efforts and minimize the anxiety that often accompanies the shift.

When a loved one passes away there are many financial matters that must be addressed.  From notifying creditors and beneficiaries, inventorying (and sometimes selling) assets, distributing personal property, claiming life insurance proceeds, and following through with final distributions and completion of necessary tax returns… there are a lot of moving parts!

As professional fiduciaries, the Wealth Management Team at State Bank is able to serve as both Personal Representative and Successor Trustee.  Our team of experts efficiently carries out the post-death administration process and works together with families to involve them as much or as little as they want.  The passing of a loved one is a difficult time.   We’re here to make it a little easier.  Should you have questions or want to know more, please feel welcome to contact me directly at (608) 826-3503 or achance@sbcp.bank.