Show cover of Wealth Actually

Wealth Actually

Covering the issues that affect business, entrepreneurship, wealth, trusteeship and culture.


Artificial intelligence and healthcare have been intertwined for a long time. The public has finally noticed. With the emergence of OpenAI and other Large Language Model platforms, we are on the forefront of more huge changes in the business of health care. Healthcare and elder issues are the major concerns for most families planning for their futures. Artificial intelligence has permanently changed the method and pace of research, the role of privacy, the choice and delivery of treatment, and the way people interact with the healthcare community. To better understand these issues, I spoke with Chris Heye. who is working in the space. Background Dr CHRIS HEYE is the CEO and Founder of both Whealthcare Solutions, Inc. and Whealthcare Planning LLC. He is a proven entrepreneur with extensive experience starting and growing technology companies. After confronting dementia in his own family and witnessing elder financial abuse in friends, Chris decided that older adults needed more protection. Chris and I take a look at this intersection. The advances are exciting. Having surveying the landscape, we marvel at the leaps forward to come and worry about the issues that they create. Artificial Intelligence and Healthcare Against that backdrop, we take on these questions: How is the intersection of artificial intelligence and healthcare changing medical research? Is artificial intelligence shifting the methodology and processes of healthcare and is it for the better? After sharing our experiences with dementia and loved ones, Chris and I wonder about the future of dementia management. Will the intersection assist patients with their day-to-day lives? Is artificial intelligence widening the gap between retirement, late stage health and death? Knowing the pernicious effect of ageism, can the financial planning industry properly account for the length and expense of elder living? What can we expect in the near future and what should we look out for? Further Wealth Actually updates HERE
25:10 5/8/24
The transition of wealth between generations has put the spotlight squarely on fiduciary roles. With the rapid changes in the financial services space, directed trustees and independent administrative trust companies have exploded in popularity. The Evolving World of Directed Trustees Most advisors, wealth management firms, and clients under-appreciate the responsibility and risks of proper trusteeship. They remember a culture and business model that existed decades ago. These days, individuals trustees usually can't handle the rigors of the job and law firms are leaving the space for liability reasons. Finally, in an environment where clients want more flexibility and control, the large bank-owned trust departments provide a cumbersome experience and high turnover, With this in mind, modern estate planning has unbundled traditional investment, administrative and distribution trustee roles. There is a huge appetite for jurisdictional planning and best-in-class providers. With all of this change, it is confusing for the advisor to know who is responsible for what and how much it should cost. The Problem for RIAs RIA's do not have the resources to advise or service clients with this complexity. The administration and oversight of these structures is a distraction. Building a trust company to solve this problem does not make business sense in a private equity-backed RIA aggregation environment. Moreover, using conflicted trust providers is out of the question for fear of putting client relationships at risk. An increasingly popular option for RIAs and wealthy families is the use of directed trustees and the independent administrative trust company. CHRISTOPHER HOLTBY is a co-founder of an independent trust company that works specifically with wealth advisors and directed trustees. Not only do we highlight the best practices for identifying and partnering with an administrative trustee, but we also discuss the typical workflow between an RIAs and directed trustees. Chris' Background with Directed Trustees How RIAs work with directed trustees and an independent trust company: 1/ What are the basic requirements of independent trust company? 2/ Accordingly, which "value adds" should RIA firms should look for? 3/ Are there key attributes to spot when deciding to work/partner with an independent trust company? 4/ Lastly, should you be aware of any "Gotchas" in the space? How Do We Stay in Touch with Chris? WEALTH ADVISORS TRUST COMPANY Video of the Podcast: "Wealth Actually" is now on Video!
23:27 4/13/24
Dr. RICHARD HAASS takes us on a tour of The World's Hot Spots. We also discuss the U.S. in 2024 and the concept of citizen ship.
41:28 3/19/24
Episode 151 - MARK HOUSE Cryopreservation and wealth was once the purview of science fiction and Hollywood. Freezing one's self to be revived in the future is not just something out of Issac Asimov book or a Ridley Scott movie. The science, estate planning, and economics of this "call option on immortality" are here right now. There are legitimate and current issues with cryopreservation and wealth- fascinating ones at that! Science, estate planning, ethics, governance, economics and good old-fashioned drafting are in focus as I speak with Scottsdale-based attorney MARK HOUSE. We're going to get our arms around the misconceptions of the freezing process and what that means legally and practically. With that background, we'll dive into the structuring and drafting considerations to effectuate this amazing concept. Finally, we have some fun by guessing at what the world may look like with revived citizens hundreds of years from now. INTRODUCTION BACKGROUND -How did Mark get into estate planning and how did he get into cryonics? CRYONICS -Let's define freezing "pre-death" vs "post-death." -Behind the Science: GREG FAHY'S WORK and BIO -What is the legal and funding process? ESTATE PLANNING AROUND CRYOPRESERVATION AND WEALTH -Usually when people die (and the being's existence terminates), the assets transfer to beneficiaries. However, here something different happens. -Is there a difference between being kept alive but in "suspended animation" and dying? -Does having various features including DNA maps serve as the basis for a new being? DIRECTED TRUSTS -Ownership in a trust should be able to provide the structure that allows the Grantor to be resuscitated when the science catches up. -Trusts have a Grantor, Trustee, Corpus (literally in this case) and beneficiaries. -Trustees must administer, invest and distribute.  -How does a directed trust allow the Grantor's intent to persist? TRUST REQUIREMENTS -Perpetuity and a Good Trust Protector Structure are vital. -With that in place, trustees must have distribution flexibility and discretion around "beneficiary determination" -Why is it important to have broad Trustee choice? -If we're making guesses about the future, why is nimble decision-making process around "science determinations" important? -When talking about investment flexibility, is endowing a future being a "prudent investment'? If so, how does a trustee sign off on that? CRYOPRESERVATION AND WEALTH ISSUES -Who pays the freezer? How much does this cost? -Once we know that, how does the trust pay for it? -When should a person use life insurance? When employed, does the presumption of death change anything? -What happens if you run out of funds? -Does it make sense to (also) endow the future persons' lifestyle? If not, how will they function in the future? -Should other the trust not include future beneficiaries to reduce a potential future conflict -How do you staff this? (See here for an interview with Betsy Brown on Corporate Trustees designed to deal with tricky situations: -What if the individual or corporate trustees cease to exist? (Trust protector) -Is there liability for the science committee if they unfreeze too soon?  Can other beneficiaries then be added? Should they be? -Are private trust companies common in these situations? BEST PRACTICES AROUND CRYOPRESERVATION AND WEALTH -What’s the best way to get started? OUTRO - How do listeners find Mark House? MARK HOUSE CONTACT INFORMATION ARTICLE ON CRYONICS TIM URBAN'S ARTICLE OUR TRUST AND ESTATES PROFESSOR, JEFFERY PENNELL Firms that do this ALCOR-
36:54 3/10/24
Episode 150 DAVID LESPERANCE AND MELVIN WARSHAW In this 150th Episode, we revisit the topic of citizenship and expatriation and try to answer the question, "Should I expatriate?." Establishing a life outside the friendly confines of the United States is a popular wealth conversation.. In the last few years, fueled by local dissatisfaction, political polarization, wealth divide animosity and positive "working abroad" experiences, "Expatriation" is now a big word in the cocktail party circuit. It's a word that shouldn't be taken lightly. Done correctly, it is a multi-year decision and planning process with significant consequences. Long-time friend of the podcast, DAVID LESPERANCE and fellow cross-border tax expert, MELVIN WARSHAW, share their expertise on the three levels of "detachment" from the USA. They will set out the administrative and tax consequences of moving up the ladder of recission from the United States. (David's previous interview here EP-76 Citizenship Diversification) What factors have caused a dramatic increase in Wealthy Families seeking second citizenships and residence as "Fire Insurance"? Tax the Rich proposals, Rising racism and anti-semitism, political polarization, mass shootings etc. What are the tax consequences of being a United States citizen? How does one obtain a second residence? What factors to consider? How does one obtain a second citizenship? What factors to consider? What are the types of "Fire Escape Plans"? (i.e. Go Bag option, American Living Abroad, Expatriation)  What are the Tax consequences of leaving the United States vs a full "Expatriation"? What are possible factors that may cause one to trigger their Fire Escape Plan? (SCOTUS decision in Moore, Election mayhem, natural disasters, election results etc.) What is the impact on the US of Wealthy Americans triggering Fire Escape Plans? Should I Expatriate? Contact David Lesperance on Linkedin Melvin Warshaw on Linkedin
37:27 3/5/24
Episode 148: Aon's Latanya Simmons Aon's LaTanya Simmons on Florida and California Property Insurance The challenging Florida and California property insurance environment is a huge topic of conversation. Anyone looking to insure a property knows that this has become tricky business in the last five years. Floods, hurricanes, wildfires and mold have are major problems for successful families' homes. These and other conditions have driven up premiums if you can find insurance at all. Add into the mix the complexity around the liability and the long term viability of the insurers. It becomes obvious that you need an expert to help navigate these risks. LATANYA SIMMONS is an Atlanta native and 2nd generation risk management professional. As the National Sports Practice Director and Private Risk Advisor with AON Private Risk Management, LaTanya provides expert personal property and casualty insurance advice and advocacy for successful individuals. executives, entrepreneurs, athletes, entertainers and family offices nationwide count among the people that she serves. We discuss the Florida and California phenomenon and what she sees as the future of the property and casualty insurance market in the high net worth space. The Florida and California Property Insurance Challenge Tell us what is going on in the Florida and California property insurance markets? What is the impact on customers? Are Florida and California (and New York) just the beginning for the risk markets? What strategies should those and others contemplating moves or purchases in other states consider beforehand? How has the insurance market changed over the last 5 years (and specifically in the last 2)? Where do you see it going? Will states like Texas, Colorado and Georgia feel this? Where do you identify the biggest insurance risks for highly successful individuals? How often should insurance policies and programs be reviewed, including the health of their insurer? Many clients are high profile due to their or their family’s success and involvement in the community. This puts them in the spotlight often – in the news, on social media, front page of their company website. What risks do higher profile people need to be thinking about? What other guidance you can share for successful individuals and families when it comes to managing the risk around their homes, autos, collections, and other property? Contact LaTanya LaTanya Simmons LINKEDIN AON Other "Wealth Actually" insurance discussions: For More . . . The new audio version is out now!
20:34 2/20/24
EP-148 LALIT PANDA on Optimizing Supply Chains in a Chaotic World and the Steps to Protect and Improve Company Operations Defining the term "supply chain" and understanding what a company should control and what to outsource has never been more important to a business. Optimizing supply chains in a chaotic world is a huge challenge. Strategists at the executive and board level face: Major global flare ups that threaten inputs Huge pools of data to analyze, and Increased complexity of logistics as customer preferences develop (almost to the point of irrationality). LALIT PANDA has spent his career safeguarding, managing, de-risking and optimizing supply chains. Having worked with major companies like Sony and Altria on these problems, he joins us today to discuss the challenges and opportunities of in today's supply chain framework. Lalit is an Operations and Technology executive with leadership experience across 7 different industries at companies of all sizes that were Public, PE and VC backed. As a Chief Operations Officer or a Chief Information/Digital Officer in global companies, he has led digital and operational transformations at scale. Companies where he had roles range from large public companies like Sony and Altria to mid-size firms like Harman, Denon, Tronox etc. He has also been in late stage startups, ranging from consumer products to industrial chemicals and medical devices. He is a blogger and thought leader on supply chain and digital transformation topics. These are increasingly important in a world of rapidly changing technology and geopolitical risks. Latit holds degrees from Massachusetts Institute of Technology, Indian Institute of Management, Ahmedabad and the National Institute of Technology. Based in Princeton, he co-chairs the programs committee of the Private Directors Association NY/NJ and the Technology and Industrial SIGs of The Executive Forum. Intro Background Supply Chain Definition What is the definition of Development? How do we categorize Planning, Sourcing, and Delivery? What is the importance of Execution? What goes into the Making of the Product? Finally, what are the complications around the Delivery of the Product? Traditional Notions and Recent Shocks With Recent geopolitical impacts, how are companies mitigating risk? What are the opportunities with recent Transportation advances? Are companies taking advantage of recent Advances in information technology and logistics management (last mile) What has been the impact of Covid / Work From Home (WFH)? What do companies traditionally get wrong when optimizing supply chains in a chaotic world ? Where is Strategic Perspective (and Oversight)? How can there be a Lack of Board Representation ? Looking into your crystal ball- what are the ways to improve supply chains amidst instability? How do listeners find you? LALIT PANDA LINKEDIN LALIT PANDA TWITTER - @latitpanda PRIVATE DIRECTOR ASSOCIATION
30:48 1/25/24
Episode 147 DAVID WASSERMAN of the COOK POLITICAL REPORT on Analyzing the Crazy 2024 Elections How should we be analyzing the crazy 2024 elections? Coming off of the Iowa Caucuses and with almost a week before the New Hampshire Primary, the United States is in full swing for one of the zaniest election cycles in memory. With histrionics coming from both sides, it's hard to separate the signal from the noise. The stakes for the 2024 election cycle couldn't be higher, but the confusion and distrust around the process is at its all-time highs. Enter David Wasserman. David is Senior Editor & Elections Analyst for The Cook Political Report with Amy Walter. Recognized as one of the nation's top election forecasters, David leads the development of key data visualizations and new product development. He manages CPR’s coverage of the US House of Representatives and redistricting developments. Founded in 1984, The Cook Political Report provides analyses of Presidential, U.S. Senate, House and gubernatorial races. The New York Times has called the Report "a newsletter both parties regard as authoritative." Polling- ANALYZING THE CRAZY 2024 ELECTIONS Polling is an intimate look at the mindset of the population (or at least a certain part of it). However, it is far from a perfect science. What is involved in polling and what are the common poll limitations? Are there significant changes with technology in the way polling has been conducted or are the questions different? The current state for the presidential candidates, congress and major state races What are the things we should look for during primary season? With that in mind, what are the battle ground states and counties? How much does Gerrymandering fit into the outcome this cycle (NY case- especially with Congress)? What are the Six States We Should Focus on? Arizona Georgia Nevada Michigan Pennsylvania Wisconsin Who are some of the Dark Horses? Against this backdrop, do you have any Crazy Predictions? To stay on top of this, where do we find David Wasserman? COOK REPORT WEBSITE TWITTER (@redistrict) NEW Audiobook version out now!
26:11 1/18/24
Episode 146 - Roles and Responsibilities in Trust and Estate Documents with Jenny Rozelle What if you are named in a will or a trust? In the world of estate planning, many people who are written into important roles don't know they are mentioned in documents or what is expected of them. These roles can be a lot of work, thankless and carry significant liability. What happens if you are part of someone's estate plan? What If you are named in a will or trust? JENNY ROZELLE helps us get a handle on the roles and responsibilities that are out there. Jenny is the founder and owner of the Indiana Estate and Elder Law. We talk about the role of executor, trustee and beneficiary and the pluses and minuses of each. (More on being an individual trustee here: Jenny's Background Terms Executor  -What does executing a will mean? How long does it take?-What do executors have to do? Do I have to accept the role?-What type of people are good with this?-Are you paid? -Are there risks (can people sue me)?-Whom do you hire to help with this? (lawyer, accountant valuation expert) Trustee -What does a trustee do? Administer/safeguard assets, invest assets, distribute assets-What type of people are good with this?-Are you paid? Are there risks (can people sue me)?-Whom do you hire to help with this? (lawyer, accountant valuation expert) Beneficiary -If I'm a beneficiary, what should I ask from the trustee?-What provisions should I focus on?  (Distributions (mandatory vs discretionary etc . . )-When asking for something from the trust, what is a good process for that?-Do I have recourse if I think things are being managed poorly? Summary of other roles -Successor Executor-Successor Trustee-Trust Protector How do we find Jenny? Firm: INDIANA ESTATE AND ELDER LAW Twitter: JENNY ROZELLE (@jennyrozelle)
25:57 1/10/24
The municipal bond market has been long-prized as a stable, tax advantaged income generator for individuals, After years of a low interest rate environment, the asset class is getting renewed attention . . . And it’s not just from investors! Tech disruptors are eyeing the space and they see a massive, disjointed uncoordinated market in need of modernization. I spoke with STEPHEN WINTERSTEIN on the state of the municipal bond market. He has a 360 degree view of the muni bond space. Steve is the Founder of SP Winterstein and Associates which advises dealers and buy-side firms on municipal fixed income data and technology procurement, vendor engagement, workflow, and market structure. He has over 35 years experience in municipal SMA and mutual fund management, electronic trading, fintech. Most recently, he was head of municipal fixed income at MarketAxess and head of Capital Markets at Alphaledger. We’ll tackle his view of thoughtful municipal fixed income management, the size, delivery and fractionalization of the market and the technological challenges faced. Finally, we’ll get some input on where Steve thinks AI, Blockchain, LLM's and some of the other buzzy words out there may have some real world impact on the asset class. Background Take us through your career . . . and your start in the Municipal Bond space Portfolio Manager - Meridian Asset Management Managing Director & Senior Vice President, Head of Municipal Fixed Income - PNC Head of Municipal Fixed Income Strategy & Research - Wilmington Trust Head of Municipal Fixed Income - MarketAxess Head of Capital Markets - Alphaledger Managing Partner - SP Winterstein & Associates, LLC Investing Process Discussing the two pillars of Muni Investing - Credit and Duration Fallacy of being able to predict interest rates Spending Calories on Credit Research "Bus Map"- incorporating client input in the design/choice of investment constraints The Municipal Bond Market The Size of the Muni Market and the challenges that causes The fractionalized nature of muni market Typical means tf transacting Brokerage vs SMA vs fund Problems with indexing Where can technology help? Pipe-building, blockchain, AI review of docs, what else? Where are the initiatives of improvement?  What is holding things back? In your mind What is the solvable low-hanging fruit?  What isn't? Where does this help the municipality? Where does this help the market participant? Where does this help the investor? Going Forward With interest rates normalizing- any glimpses into Steve's crystal ball? Getting rid of tax exemption solves the paradox of the heterogenous borrowing base (institutions of all flavors and sizes) and the homogenous lending base (individuals) by broadening the lending base. While removing the tax favored status would raise borrowing costs, it would improve liquidity - which problem do you want to solve in a world where infrastructure so desperately needs funding? How do listeners reach out to you to find out more? STEPHEN WINTERSTEIN ON LINKEDIN
45:55 11/28/23
The CORPORATE TRANSPARENCY ACT is less than a month away from going live and the wealth management industry doesn't seem to be too worried about it. That worries me because it affects at least 32 million entities according to FinCen- including most small businesses in this country. States like New York may be enacting laws to mirror the disclosure requirements at the state level. Non-compliance is expensive and could lead to jail. How to manage these reporting responsibilities is going to be a big issue in the wealth space. I covered the general framework in June with attorney Stephen Liss here: EPISODE 134. Today, we're going to speak with friend of the podcast, JOHN WILLIAMS on the CTA and 2024. He is the President of the Williams Law Firm in Delaware and President of INCNOW.COM, a corporate formation firm. We're going to talk about taking on this responsibility as an advisor and what businesses (big and small) might expect in 2024 and beyond with this new mandate. Corporate Transparency Act- A Quick Review 1) Whom does it apply to and how big is this lift? 2) What needs to be reported? Do we know how at this point?3) By whom exactly?  Client?  Advisor? Paralegal?4) What is the timing for reporting? How long do you have to report changes? Can you correct mistakes?5) What are the penalties for getting this wrong? For Advisers, RIA's, Lawyers, CPA's and MFO's 6) How much time should compliance take?  Who is responsible? Simple ownership (90min) vs complex ownership Change in ownership If something goes wrong, who is liable (i.e. who goes to jail)? Paralegal liability 7) What are best practices for compliance? For clients? For advisors suggesting entities? For Administrators? 8) Who should be in this business?  Headcount? Is there liability insurance for advisors/admins? Are Law firms ready for this?   RIA's and MFO's? CPA's looking to "help"? 9) What is a realistic cost for this?  Especially given ongoing service and liability?  Will clients understand what they are paying for and why? Can this be AI'ed away? 10) How are you thinking about it (for your business)? Is it a profit center? Is this for the "Faint of heart" or the tourist? Is there a danger in treating this as an accommodation? 11) Practical questions- Who is a control officer?  senior officers / directors / others (trustees)? An incorporator? Series LLC's = multiple reports? Information sharing between FINCEN, IRS, DOJ others?  Is Privacy over? Should everyone get a FINCEN number? Are we entering a new era of corporate governance and record keeping for clients and their businesses? (I.e. is corporate governance going to be a "real thing" going forward?) How to Find John Williams and his firm. INCNOW.COM TWITTER THE WILLIAMS LAW FIRM
38:27 11/15/23
While all families in the U.S. should have an estate plan, a comprehensive plan is particularly important when your family ties and assets span more than one country. Estate planning can be a challenging task for anyone, but add multiple citizenships and foreign assets into the mix, and it can become formidable. That said, failing to have a plan in place can leave your family at risk. To help us navigate these issues, we have estate planning attorney SHANNON MCNULTY with us to talk about how to protect your family when you cross borders. Biography Shannon McNulty is an estate planning attorney and Founder of THE VILLAGE LAW FIRM in New York City, She provides comprehensive tax and estate planning for New Yorkers and their families. Shannon has a particular focus on global families with young children. Shannon has earned the CFP® designation from the Certified Financial Planner Board of Standards. And she is on the Board of Directors of the Estate Planning Council of New York City (with me). Shannon is host of the GLOBAL VILLAGE LAW AND MONEY PODCAST- a resource to help foreign nationals make smart legal and financial decisions. Outline Tell us how you came to work with global families in your practice. Why is it so important to for global families to have an estate plan in place? What are the basic things that an estate plan for these families should address? Guardianship for kids; Arrange for the fast, easy transfer of your assets; Incapacity planning; Minimize taxes Can a parent designate a guardian for their children who does not live in the U.S.? What happens if no guardian is designated? Can you explain how to make sure your assets quickly go to the people who you want to have them if you pass away? If your kids are minors, who will manage the assets for them? What is incapacity planning? Why is it important? What do global families need to know about taxes in the estate planning context? Review Before we finish, maybe you can give us a recap of the essential documents that global families living in the U.S. should have in place? Some comments on Shannon's Podcast
18:33 10/26/23
EP-142 “NO WORRIES” with JARED DILLIAN, Trading and Markets Expert, Author and Renaissance Man
JARED DILLIAN is one of the authentic unfiltered voices in finance and trading. He is also a true polymath. His newsletters include The Daily Dirtnap, a daily market newsletter for investment professionals, and We’re Gonna Get Those Bastards, which is about everything “depraved”, especially finance, culture, music and sex.   He has a new book coming out in early 2024 called “No Worries” which brings his unique perspective to personal finance topics with the goal of helping people reduce anxiety around the wealth building process. Back to the polymath part . . . In his spare time, Jared is a progressive house DJ, a short story writer, and speaks frequently on mental health issues at financial institutions.  It’s Jared’s ability to cultivate his creative side that sets him apart from the rest of the noise in the financial world. JARED'S BACKGROUND -  Early Life and the Coast Guard Lehman Brothers- The Experience and the Newsletter South Carolina HOW DID JARED GET INTO THE WRITING? (HE STARTED EARLY!) THE NEWSLETTERS - THE DAILY DIRTNAP and THEN "BASTARDS" THE TWO RECENT BOOKS - WE"RE GONNA GET THOSE BASTARDS - NO WORRIES -HOW DOES WHAT YOU DO INVESTMENT-WISE CONTRAST WITH THE CONVENTIONAL WISDOM OUT THERE? TRADITONAL vs SOCIAL MEDIA DJ / MUSIC / FICTION - HOW DO THESE ENDEAVORS HELP YOUR WRITING? WHAT ARE YOU WORRIED ABOUT CURRENTLY (MARKETS OR OTHERWISE?) HOW DO WE FIND JARED? WWW.JAREDDILLIAN.COM
29:18 10/17/23
EP-141 WRITING “THE MYSTERIOUS CASE OF RUDOLF DIESEL” with Author, DOUG BRUNT "September 29, 1913: the steamship Dresden is halfway between Belgium and England. On board is one of the most famous men in the world, Rudolf Diesel, whose new internal combustion engine is on the verge of revolutionizing global industry forever. But Diesel never arrives at his destination. He vanishes during the night and headlines around the world wonder if it was an accident, suicide, or murder." Author, DOUG BRUNT, takes us on a journey into the life of this modern day Tesla. We talk about his latest book, "The Mysterious Case of Rudolf Diesel." In this wide-ranging discussion, we get into the world of writing, the entrepreneurism of being an author, the differences between fiction and non-fiction and his "Dedicated" podcast with the leading lights in the publishing world. It's a great listen for budding authors, readers and entrepreneurs. Doug's Background From Entrepreneur to Writer Fiction to Non-Fiction- What is different? How did you research the book?Whom do you lean on for advice/notes as you go through the process? The Mysterious Case of Rudolf Diesel What did you learn about the man in your research?The device to interject Rockefeller and Wilhelm for context Diesel's seismic impact- why has he been forgotten? Where do you place him in the pantheon of inventors? The Dedicated Podcast What do you learn in those discussions?How do we keep track of your podcast?When does the book come out and where do we buy it? THE MYSTERIOUS CASE OF RUDOLF DIESEL DEDICATED PODCAST DOUG BRUNT TWITTER (@dougbrunt)
29:19 9/12/23
Philanthropy is one of the most important tools for families to strengthen their communities, establish their legacy and communicate their values - both inwardly and outwardly. What happens when the organizations that receive family resources don't fulfill the donor's intent? What if the charities mean well, but aren't effective? What if the charities use the resources for something else entirely? Well, these issues came up in a big way when the Robertson Family of A&P Supermarket fame disagreed with the way Princeton handled the proceeds of a $35 million gift. Author, DOUG WHITE is going to lay out the case, explain where it went wrong, and give us some lessons on how to avoid future quagmires around donor intent. DOUG WHITE, a long-time leader in the nation’s philanthropic community, is a 5-time author, teacher, and an advisor to nonprofit organizations and philanthropists. He is Co-Chair of the FoolProof Foundation’s Walter Cronkite Project Committee and a governing board member of the Secular Coalition of America. He is the former director of Columbia University’s Master of Science in Fundraising Management program, where, in addition to his extensive management responsibilities, he taught board governance, ethics and fundraising. He is also the former academic director of New York University’s Heyman Center for Philanthropy and Fundraising. He has also been an advisor to BoardSource, the nation’s leading organization dedicated to “building exceptional nonprofit boards and inspiring board service.” Doug has written five books: “Wounded Charity” (Paragon House, 2019) “Abusing Donor Intent” (Paragon House, 2014) “The Nonprofit Challenge: Integrating Ethics into the Purpose and Promise of Our Nation’s Charities” (Palgrave Macmillan, 2010),  “Charity on Trial: What You Need to Know Before You Give” (Barricade Books, 2007), “The Art of Planned Giving: Understanding Donors and the Culture of Giving” (John Wiley & Sons, 1997) His expertise includes fundraising strategy, board governance, improving organizational processes, and ethical decision-making. Introduction and Doug's Background The Role of Philanthropy Help for Donors Help for Charities Donor Intent - The Robertson / Princeton Case The Robertsons (Descendants of Charles and Marie Robertson) Source of Wealth (A&P Supermarket Fortune) The Desire to Build the Woodrow Wilson School After JFK in 1961 The Gift- $35 Million in 1961 (Robertson Foundation: > $900mm in 2008) The Mistake in Structuring (and codifying) the Gift Where did Princeton veer off course? Funds used for other purposes The Conflict between Charity and Family when the Patriarch Died The Expense ($45mm in legal fees by both sides!) Princeton's Explanation: Good practices for families making the gift (and monitoring it) Establishing and Codifying Donor Intent Balancing Rigidity and Flexibility around terms and uses of the gift Drawing up a Binding Agreement Communication (Oversight at the Charity and the Family) Performance Metrics Accountability Structures and Procedures DOUG's CONTACT INFORMATION
39:12 8/31/23
This episode is a little different. I'm going to talk about the importance of balance and health. This time I'm the example. I'm hitting the half century mark this year. After 3 years of COVID disrepair and neglect, I knew I needed a change. In this episode, I'm going to describe those changes and what it's done for me. I'll also be commenting on the significant gap between health, fitness and the wealth management industrial complex. In brief, I think the industry has a huge blind spot around the intersection of health and wealth and is dangerously ignorant about the widening time and expense divide between one's late career and death. To help me make sense of this is, noted expert, Phil Pearlman. DR. PHIL PEARLMAN, is the founder of THE PEARL INSTITUTE. He is an expert in the areas of personal health, human change processes, and systems integration. Phil and I didn't work together. However, I hope his unique perspective on balancing career, fitness, mental health and other facets help put my experience into context and give the audience some lessons from my journey. About Phil DR. PHIL PEARLMAN, is the founder of THE PEARL INSTITUTE. He is an expert in the areas of personal health, human change processes, and systems integration. Phil is the author of The Primecuts Newsletter, which focuses on cultivating a healthy lifestyle, mindset, and identity through the powers of creativity, reinvention, and grit. Phil is an advisor to and investor in social/digital media companies across stages of development. Previously, he served as CBO and CMO at Osprey Funds, EVP at Bank OZK, Executive Editor at Stocktwits, and Interactive Editor at Yahoo Finance. Phil earned a doctor of psychology degree from Argosy University. He lives with his wife and two boys in Montebello, New York.
41:56 8/24/23
"Venture Capital" is a small subset of private equity surrounded in mystique and fable. In reality, the world of start-ups is filled with the highs and lows of hard work, loneliness, crushing disappointment and, sometimes, unbelievable success. The bold founders usually have a vision to disrupt the status quo and build a new world around that idea. The VC community is a unique culture that understands the founders' motivations. It provides the resources, support and discipline to help them prove their idea, grow, survive, adapt and thrive in the face of the longest odds. They say "it takes a village." In "Venture Capital", the hope is that these mavericks are surrounded by an ecosystem of investors that understand the disruption they feed and have the patience to let them manifest their vision. JULIE FREDRICKSON is the Managing Partner of CHAOTIC CAPITAL. She will help us understand what it takes to survive and thrive in this space and skewer some sacred cows along the way. Julie's Background "I’m a founder with experience in retail and e-com businesses across all stages. I’ve raised from venture, PE, and crazy people. for everything from cosmetics to online advertising. A couple of my companies even exited and are still around. My first company was Coutorture Media, a luxury affiliate publishing and e-commerce network acquired by Sugar Inc. I then founded playAPI, a developer tool kit and SaaS platform for digital brand marketers. Most recently I went physical with Stowaway Cosmetics a direct to consumer cosmetics brand, which is now part of WIN Brands Group." Venture Capital Generally- What does success of individual investment look like?What does success of portfolio look like? Differentiation 1. Underwriting Businesses: Asset-Light & Equity-Efficient: "We focus on ventures fitting the VC mold, prioritizing scalable, asset-light companies that require minimal equity financing. Two of our most successful seed investments raised
55:53 8/13/23
Real Estate investing is seen as the holy grail of passive income and wealth independence. One of the popular facets of real estate investing is the tax advantage that much of the IRS code provides to the owner/operator. High on the list of cocktail party chatter topics is the concept of COST SEGREGATION. It is a way to deconstruct the components of real estate developments, depreciate them faster than the normal life of a building and net the deductions against other income. To explain this concept, MITCHELL BALDRIDGE joins the podcast. The Texas-based CPA and CFP will take us through the ins and outs of Cost Segregation Studies and discuss the importance of solid bookkeeping and delegation for entrepreneurs and other business operators Cost Segregation -Describing the concept - accelerated depreciation and deductions-Potential benefits in numbers-Types of projects where it works (Who is it for?)-Process- getting study, dotting i's, building in documentation now and forward-Traps for the unwary- Sloppiness, Passive vs Active income, Full-Time Real Estate Occupation, -Recapture- what it is and how to manage it Bookkeeping and Bulletproofing your Business for Future Sale -Importance of dotting i's-Looking for tax savings-Delegating intensive work-Coordinating with advisors How do we find you? Links
32:07 8/2/23
One of America's best (and most quotable) judges, Learned Hand said, "Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes." What happens when the IRS disagrees with the way you’ve arranged your affairs? What do you do when you receive “fan mail” from the IRS (or the State Taxing authority) KELLEY C. MILLER, ACTEC Fellow and Partner at Reed Smith in Washington DC. helps us understand the process of an IRS audit, good practices in dealing with an audit, and inside knowledge of how the process works at the agency. This episode is full of good information on an uncomfortable, but vital, topic for families that are pursuing complicated planning that may catch the attention of the taxman. Background and Good Conduct Rules of Thumb Be Honest Be Prompt Be Complete Be Clear/Organized Be Consistent and coordinated with other tax and gov’t authorities Be Quick to Alert the IRS if issues come up What is the IRS / State looking for? In a word, UNDERPAYMENT . . . or "more revenue." Listed Transactions (ex. syndicated conservation easements) Unreported income Mischaracterization of gain vs income Filing status (ex. Domicile / Residence - esp. at state level) and Dependents Itemized deductions (Business vs Personal) Eligibility for credits / treatment Sources of “referrals”: Data (Demographics, Internal Data, HNW, UHNW patterns, Social Media, AI in the future?) News, Spouses, Other Agencies (Corporate Transparency Act Implications) Past conduct How is the IRS to deal with? Other states? They are professional and sophisticated but under-resourced Whom are they looking for? Improvements? Potential new staffing and technological investments Is not incorporating your advice team ever a good idea? Civil vs. Criminal vs Collections Departments Process 1) Open the Letter!  (Not a good time to stick your head in the sand) Is it an audit or a request for additional information? What person or entity is being audited? What is the focus of the audit? What documentation is being requested? What kind of audit? Correspondence Audit: The IRS requests additional information regarding a part of your tax return, such as receipts or canceled checks. Office Audit: The IRS requests that you bring specific documentation into your local IRS office- the audit happens there. Field Audit: An IRS agent shows up at your place of business to conduct a face-to-face audit. Taxpayer Compliance Measurement Program Audit: The mother of all audits- one that requires full documentation down to birth certificates to test the Agency's scoring systems. 2) Notify the team and decide on the response strategy Who is quarterbacking the response and the interaction? Accountant / Attorney / Wealth Manager / COO When should the tax preparer run things vs an attorney? Do you need other expertise? Should you have Attorney / Client Privilege? Very likely. Who is compiling the information? 3) Responding to the request You should respond to the IRS/State within 30 days of receipt How should that occur? Call / letter? Crafting the response letter Supplying the requested information 4) No Action or additional payment? If it’s determined I owe more, what is the process of appeal? What if I don’t have it? Payment plans? 5) Closing the file Documenting the outcome Post-mortem – What practices were audited? Should we do anything different in tax planning Any other storm clouds on the horizon? Lessons Learned- Updating documentation and administration process going forward How Do We Stay In Touch with Kelley? KELLEY MILLER at REED SMITH KELLEY MILLER on LINKEDIN
52:56 7/14/23
"Behavioral Finance" is all the rage. BeFi (as the not-so-cool kids in the financial world call it) is the next phase in guiding individuals, teams, boards, companies, and leaders to better decision-making. There is plenty of material telling us where people get it wrong. Even the best brains get deceived by a litany of behavioral biases. These biases cause people to fall off the track of economic rationality. However, even with all of these labels, there is little guidance on how to identify and use this context. Until now . . . PETER ATWATER argues in his new book "THE CONFIDENCE MAP" that there is a straight forward mental model. It can diagnose an individual's emotion and confidence, its directionality and its relationship to group and social mood. Further, Peter asserts that people (and their advisors) can use this information to pull decision-makers out of the own limitations of their own silos. People will be able to recognize what is occurring in their surroundings, mitigate risk and maximize opportunity.  We'll discuss Peter's findings, the mental model he's developed and, finally, the process of writing the book.  Outline Quick background- The Confidence Map- central tenet of the book The context of one's place on the confidence map has as much to do with the decision making process as data and logic. Rationale behind the book - what was the problem that you were seeing? What was your research showing? Examples Johnson and Johnson Tylenol Case Boeing 737 Dreamliner Bud Light Defining the axis- Toggling between "Certainty and Control" Toggling between "Confidence and vulnerability" (not price!  Are humans innumerate?) Mapping human confidence (and using it in a forward looking manner) Individuals and recognizing their own position in the chart Leaders looking at group confidence and mood "at scale" to mark strategic shifts Collective mood vs individual mood Defining the group (which group is the individual following) Recognizing where one is on the map personally vs the group vs the masses Augmenting "behavioral finance" Behavioral economics tries to give us the tools and bias catalogues of where human beings fall off the train of rationality How do we think about the confidence map to help people predict (and avoid) their own frailties - especially around big decisions? What is the "equipment" you need to use these tools effectively to help me to understand their decision contexts and make better decisions (potentially in times of maximum stress)?  Is there a danger that this is giving a loaded gun to the financial services industrial complex? What was the book writing process like? Turning a box of ornaments into a Christmas Tree Using a Coach What were the struggles? How do we stay in touch? Linkedin: Peter AtwaterTwitter: @peter_atwater Amazon: THE CONFIDENCE MAP
39:11 7/4/23
The Corporate Transparency Act is legislation that is going to touch all high net worth clients in 2024.  This is like KYC procedures on steroids and investors need to be aware of it. Attorney, STEPHEN LISS helps us understand the scope of the developing new regime. The financial reporting system currently makes it cumbersome for regulators and law enforcement to track the asset ownership and cash flows.  Lessons learned from the Panama Papers and Pandora Papers disclosures signaled the need for a change.  Congress passed the CTA legislation in 2022 to combat money laundering, tax evasion and other illegalities.  After public input, final rules were recently promulgated. There are significant reporting responsibilities and criminal and financial penalties for non-compliance. The impact of these initiatives takes hold in 2024- It’s becoming a point of emphasis for the legal, accounting and financial services communities. It will be significant part of the estate planning process for HNW clients going forward. With the expected “2026 avalanche of estate planning. Clients are in a for a surprising change in the standard procedures around standard techniques. The concept of “Putting it in an LLC” or “putting it in a trust” is about to become more expensive, complicated and time-consuming- particularly in dealing with the law firms and especially financial institutions. STEPHEN LISS is a partner at Dungey and Dougherty and is on the forefront of this legislation and its impact on clients. We’re going to talk about the scope of the CTA, it’s impact and why it’s important for HNW clients to start early and get ahead of these requirements when the planning avalanche comes. Background Congress enacted the Corporate Transparency Act (“CTA”) under the Fiscal Year 2021 National Defense Authorization Act on January 1, 2021. The requirements of the CTA are being implemented “to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, while minimizing the burden on reporting entities.” That said, even FinCEN acknowledges the enormous reporting burden imposed by the CTA, which it most recently estimated to be over 118 million hours in 2024, with an annual burden of over 18 million hours thereafter. The CTA added 31 USC §5336 to the Bank Secrecy Act with the title, “Beneficial ownership information reporting requirements”. The CTA has three core elements: Reports to FinCEN The CTA requires certain entities (each a “reporting company”) to identify itself, its primary owners and officers (each a “beneficial owner”), and certain professionals who helped to form or register the reporting company (each a “company applicant”). The reporting company must then report to the Financial Crimes Enforcement Network (“FinCEN”) information sufficient to identify the reporting company, its beneficial owners, and any company applicants (“beneficial owner information” or “BOI”). Control Access to Information FinCEN will provide BOI to government regulatory and investigatory bodies, but it will not be made available to the general public. In addition, there are specific procedural requirements for government actors to access this information, along with civil and criminal penalties for improperly accessing or using such information. Revised Due Diligence Requirements The Secretary of the Treasury is required to revise Customer Due Diligence requirements for financial institutions to conform to the CTA, and account for the ability of financial institutions to access beneficial ownership information. Outline What is the Corporate Transparency Act? The purpose of the Act is to Set a clear federal standard for incorporation practices Protect U.S. national security and commerce Enhance national security, intelligence, and law enforcement efforts to combat money laundering, terrorism financing, and other illicit activities Bring the U.
45:01 6/13/23
State Estate Taxes - State Estate taxes can be a nasty surprise- especially with the disconnect between State and Federal Exclusions. Currently, the Federal Exemption stands at $12.92mm per person. 17 states have and estate or inheritance tax and it's often uncoupled from the Federal exemptions. In New York, the state estate tax exclusion stands at $6.58mm per person- and that exclusion isn't portable with a spouse. With state estate tax rates reaching 16%, this could lead to a potentially big number. However, planning around this tax can be complicated. Estate Planning Attorney, GEORGE BISCHOF is here to define the problem and the clients it affects, provide some context for planning and give us some ideas on how to deal with it. George is an Estate Planning Attorney here in New York City at the WILLS AND TRUSTS FIRM ( He focuses on clients between $4 and $20mm in net worth. Estate Tax Federal ($12,920,000 per person) vs NYS ($6,580,000 per person) More New Yorkers can be caught in this than they think Real Estate can be a big issue Linkage to Gift Tax (NYS has no gift tax) Rates (40% Federal vs 16% State) NYS Cliff - Established in 2014 105% Estate Tax Exclusion is where the cliff kicks in. Graduated Tax Calculation Goes back to dollar zero and can be a $250K+ mistake Calculated on NYS property NYS has floated a longer phase-out range, no progress yet Being a City vs State Resident is irrelevant (as opposed to an income tax situation) Portability – Federal: Yes, NYS: NO!!! (but, Credit Shelter Trusts can be a solution) Ways to Reduce / Minimize This Tax Using Charity and a drafting Santa Clause (a conditional formula bequest that leaves money to your preferred charity (or one chosen by your executor or trustee), but only if doing so will result in a higher after-tax estate for your beneficiaries). Changing your residence AND domicile (and cutting NY linkages!) - See an in depth discussion on this topic with attorney MARK KLEIN - (SNOWBIRD PLANNING EPISODE) Using Gifting to get "under the cliff amount" (but beware of 3 year look back). Moving wealth to non-NY jurisdiction Maximizing “portability” with Disclaimer or Credit Shelter Trust structures Disclaimer language in wills and/or trusts Make sure you have an independent co-trustee   BONUS: I wrote about this topic back in 2019 and it gives some context around the planning. (The numbers have not been updated):  "Frazer Rice is an employee of Next Capital Management, LLC. This podcast is not investment, legal, or tax advice, nor does it reflect the opinions of Next Capital Management. Any opinions represented in the show are Frazer’s individually and not an endorsement of the guest. This podcast is for educational and entertainment purposes. It is neither investment, legal, nor tax advice and does not represent the opinions of any employers of the host or guest."
21:46 5/30/23
Crisis Management in the Wealth Space Lawyers, Accountants, Wealth Advisers and other advisers – are used to dealing with difficult situations all at the heart of their specialty.  But often, the advice the clients need goes past the wealth arena . . . . How do you help them when you hear situations like this? My son shows no drive and won’t get up from bed- My daughter is cutting herself- My brother just got his second DUI this year and is running the business into the ground- The trustee of my trust has missed filing taxes and is making mistakes- What do you do when you are the first point of contact, but out of your expertise?  What happens when the family is in crisis and devastating wealth impacts are in view? What happens when it’s not in your business model or expertise to deal with this part of the family’s issues? How do you do the right thing by your client and yourself? JANE MINTZ is the person to help us deal with this gaping hole in the wealth management industry. Jane is an internationally respected pioneer who has spent 20 years working with individuals and families around crises related to addictive illness, mental health, and life concerns. Best known for her work as a concierge strategist guiding clinically complex individuals and their families through extraordinary challenges, she is also a noted thought leader, industry consultant, educator, and speaker who has garnered international recognition. Jane has extensive experience working with family businesses and private family wealth offices so that the dysfunctions of today do not destroy the legacies of tomorrow.   Jane is a Licensed Professional Counselor with multiple dimension training credentials in high acuity clinical clients. She is a Laurel School graduate (Cleveland, OH) with degrees from Washington University (St. Louis, MO) and John Carroll University (Cleveland, OH). Outline Jane, in a couple of sentences, what do you do as Professional Counselor- How is your expertise applied to the wealth space? (Family Businesses and Wealth Offices/Trustees) Crisis What constitutes a crisis? What is the difference between a crisis and a mistake (or “growing pains”)? How does a financial advisor, coworker, wealth manager know when to intervene? What are we looking for signs and symptoms that someone needs help:   Misspending  Not showing up for appointments  Missed deadlines  Disruption in workplace  Missed work  Inability to participate in large planning matters  The Intersection of Being a "Fiduciary" and Getting a Client the Help They Need? What is a fiduciary relationship?  vs. Human Ethics? When do human ethics supersede fiduciary ethics?  How can a clinical strategist be a key collaborator in bridging the gap between the two?    What does a professional counselor do?   What happens when a client is introduced to to a Counselor?    What are reasonable expectations?  For the family? For the Adviser? What does progress look like?  How do you set up the structures for long term success? Where does the Adviser fit in that process? How do we stay in touch and how do listeners find you? JANEMINTZ.COM Books Mentioned . . . .  "Frazer Rice is an employee of Next Capital Management, LLC. This podcast is not investment, legal, or tax advice, nor does it reflect the opinions of Next Capital Management. Any opinions represented in the show are Frazer’s individually and not an endorsement of the guest."
29:51 5/11/23
Why Do You Podcast? And How Does It Help in the Wealth/Law Space? Why do I do it? What’s involved?  How does it interact with your career? Should I do it? (YES- At least try it) How did you get started and how much does it cost? Do you make money on it? Is your ROI on the show different? Do you use it for research or marketing (or both)? Do you enjoy it? Two Advisor Podcast Experiences I thought I would have BRENT NELSON on the show, so we could trade our two podcasting experiences.  Brent is the host of the successful and entertaining Wealth and Law podcast and heavily involved in the wealth management space.  This is his second visit to the Wealth Actually Podcast. He is an ACTEC Fellow and a partner of the Tucson-based RIMON LAW FIRM and focuses on international and domestic estate planning. For those curious about the world of podcasting and where it can fit into your business or practice, this should be a useful listen from two people who have done it. I liked the idea of two people, who have demanding day jobs, describing their podcasting experiences and how they make it fit within a demanding schedule- Why we did it? Why do we continue to do it? What do you listen to and what did you take for inspiration? What's your process? What started off poorly and has gotten better? How much time / resources / workflow does it take? What functions do you keep / what do you delegate? How do you measure success? How do you "monetize?" Business model? Advertising? What do you wish you had? Struggles with audience building- Weird stuff like music / disclaimers? The Wealth and Law Podcast: I am also adding this excellent primer on "HOW TO PODCAST" from my friend, Jason Cilo of Meeting House Productions- it goes into some depth on the "Who, What, Where, When, Why and How" of the process from a person who does an extremely professional job on his show. It is well researched and serves as an ode to his passions in the TV and Film world. Well worth the listen: FULL CAST AND CREW: HOW TO PODCAST Some of the Podcasts Mentioned: Errol Louis ("You Decide" NYS Political Podcast), Various Horror Podcasts, John Keim (Washington Commanders Beat Writer for ESPN), Full Cast and Crew, Infinite Loops, Penny Philips, Griffin Bridgers, Morgan Housel, Ritholtz Wealth's stable of podcasts, Invest Like the Best with Patrick O'Shaughnessy "This podcast is for educational and entertainment purposes. It is neither investment, legal, nor tax advice and does not represent the opinions of the employers of the host or guest."
47:23 4/27/23
In this episode, I recount my experience in taking the plunge and jumping from a stable, large bank job to swim in some different waters. "Funding the Pivot" was written a few years ago as I was doing the post-mortem on my post-book experience. I think the lessons I learned can help a lot of people. This format a bit of an experiment for me in non-interview podcasting- let me know what you think of it. The transcript of the essay is below- thanks for listening! Follow me on TWITTER LINKEDIN YOUTUBE and INSTAGRAM, Don't forget to SUBSCRIBE/like/rate the show and feel free to send along to your friends. Funding The Pivot We live in a world where we are bombarded with advice to “follow your passion” and stories of people who wonder about the road not taken.  In fact, more people in their prime earning years are taking steps to fulfill their “dreams” before they reach the brass ring of retirement- a time normally associated with doing all of the things you didn’t have time to do. What happens when you aren’t close to retirement and want to make a career switch or start up a new business? What is realistic? How should you think about the risks so that you avoid a crippling financial decision? As clients and friends have come to me with this issue, I have taken my personal experience and some financial planning concepts to put structure around what can be a high risk, but high reward decision. The Assessment and the Plan Many of us daydream about a better tomorrow . . . better finances, more control of time, health and family happiness, a clearer path to professional or extracurricular achievement and establishing a legacy. These things don’t come without costs and the risk of failure. Therefore, you need a plan. The first step is to assess the situation at hand. Are you running from something or running to something? Do you have an idea that will change an industry (or the world)? Do you want to start a business (and the hell that being an entrepreneur can bring) or do you just want to enjoy the trappings of a well-oiled business machine (already put in place)?  For those making career decisions because of an unpleasant work environment, I would think twice about running headlong into entrepreneurism.  It is a long and lonely road.  You have to “really want it” and be prepared for sacrifice both personal and financial.  Can the same itches be scratched while being traditionally employed? If your current situation is dissatisfying, could the correct change be a move to a firm that is more in keeping with your goals and principles? I had a little of both in my life and used parts of the creative process, the entrepreneurial experience and a corporate situation to move my situation ahead. My situation at my previous employer was suffocating.  I enjoyed working with clients, solving problems, identifying opportunities and being relevant to successful people. However, while enjoying success, I was not participating in the equity or direction of the business and I was not developing.  My career trajectory was flattening and the principles by which I worked were shifted by new management priorities. It was time to go no matter what. I also had a nagging feeling that I had more to bring to my clients, my firm, the industry . . . and myself.  I became involved in podcasting and speaking- two things that I enjoyed.  On the strength of that and my extracurricular interest in writing screenplays and essays, I felt like I had a book in me. Change is good, right? Change brings growth. Generally speaking, that’s true, but change also occurs when you are laid off or when a company closes down. To that end, change is effective when you are the architect of the change. When you are driving new circumstances, you have more control over its effects. In my case, I spent a year writing the book,
12:59 4/13/23
The FAMILY OFFICE – a term that is surrounded by mystique. It conjures notions of massive wealth, mahogany infused offices, private jets and money that has reached escape velocity. When one probes deeper, it connotes secrecy, exotic opportunities and risks, mixed with rigid control and discretion. But what is the reality behind the term “family office”?  At what level of wealth do families bring it all in house?  What functions do they actually perform?  How much do they cost? For families that are intrigued, what questions should they ask before going down that process and what should they focus on?  We’re going to speak with EDWARD MARSHALL, Head of the Global Family Office at Dentons, the international law firm.  Ed has deep experience in the space and is a terrific starting point for families looking to engage the process of developing their own structure. Ed and his white papers and research can be found at DENTONS' site here: ED MARSHALL and his twitter account is here: ED MARSHALL TWITTER. A link is here for his informative book (with Bill Woodson): FAMILY OFFICES: A COMPREHENSIVE GUIDE FOR ADVISORS, PRACTITIONERS, AND STUDENTS Here are some of the areas we hit on: When a client comes to you looking for a family office, what problems are they trying to solve? What is your process for helping them define what they need? Why not outsource everything? How do you make this a digestible process? Build, Buy, or Partner? Cost Talent Confidentiality Regulation Scope Creep The Rule of 3: It's could take 3 years to build It could costs $3 Million You will probably want to shut it down 3 times before it's up and running Below is a brief summary of the question and answer process from Dentons to help families get their bearings around the family office process: Focus areas Getting started General Investing Investing and owning real estate Venture capital and private equity The Lender Management strategy (US-based family offices) Taxes Litigation Operations and governance Employment Impact investing and philanthropy Trusts, estates and wealth preservation Public policy Risks and threats Specialty areas Getting started What experience do you have working with family offices and family businesses? Is your experience local, national or global? What are the legal services that you typically provide to family offices that look like ours? Does your experience with different family offices provide you with best practices that you can share with us? What are the key legal issues to consider before, during and after a liquidity event? Are all of your legal services billed hourly or can you deliver work on a flat-fee-per-project basis? How would you build a team to handle the legal and non-legal matters relating to my family office? Do you (or your firm) have access to a network of family office general counsels? Are the business entities currently affiliated with our family office optimally structured across all areas that we should consider, such as income tax, estate tax, securities regulation, privacy, etc.? What legal considerations and potential pitfalls exist with respect to embedded family offices (i.e., where employees of the family business perform the same function as a single-family office)? If members of the family are investing together and/or separately, what legal structuring should we consider? Would our family office benefit from a holding-company structure? Should one or more trusts own the family office legal entity? What is a family office management company? Should we consider using a holding company for our investments? What are the advantages and disadvantages of using a family limited liability company (FLLC) or a family limited partnership (FLP) in our family office or family business? How can we exercise optimal control of a family office or family busine...
26:43 4/3/23
We are now into 2023 and it's turning into is a unique wealth planning environment Families are dealing with volatility and depressed asset values. We have extremely generous Federal Estate Tax Exemption levels for the next couple of years (we think!)- Most intriguingly, we are witnessing rising interest rates which are bouncing hard off of generational interest rate low. Since interest rates are an important driver of many strategies, the effectiveness of many popular estate planning tools is up for review. Furthermore, some “out of season” techniques are getting a new look. To help survey the landscape is MATTHEW HOCHSTETLER. Matt is a Partner at David J Simmons and Associates which based in Canton, Ohio and Naples FL Matt is an ACTEC Fellow and well qualified to help us think about the current environment Welcome Aboard Matthew- Matt's Background and Practice The Rising Interest Environment- What rate are we using?  AFR and 7520 Rates How does it work?  Monthly reset? Where were we (From 2010 to 2021 historic lows that went under 1%) and where are we now (Near 6%)? Strategies for a low-interest-rate environment Lending to transfer wealth with little or no gift tax. The interest rate reflects the hurdle that appreciating assets must beat to be effective for some estate planning techniques to be effective. Intrafamily-loan  Installment Sale to an Intentionally Defective Grantor Trust (IDGT) Grantor Retained Annuity Trust (GRAT)  Charitable Lead Trust (CLT)  Strategies for a high-interest-rate environment You may be able to capitalize on strategies whose benefits hinge on using higher interest rates to reduce the actuarial value of a taxable gift. The higher the rate, the more beneficial these strategies will be. Qualified Personal Residence Trust (QPRT):  Charitable Remainder Trust (CRT):  This is the reverse of a CLT; the grantor receives an annual payment from the CRT for a term of years, and charity receives whatever remains at the end of the term. Any other thoughts around planning in 2023 and 2024 with the sunset provisions looming at the end of 2025? Start Your Thinking Early! Law Firm and Valuation Firm Capacity may get stretched thin by 2025 as people delay It is easier to top up previously implemented strategies than establish new ones on the fly. HOW DO WE STAY IN TOUCH? TWITTER: @MRHesq LINKEDIN Frazer Rice is an employee of Next Capital Management, LLC. This podcast is not investment, legal, or tax advice, nor does it reflect the opinions of Next Capital Management. Any opinions represented in the show are Frazer’s individually and not an endorsement of the guest." This podcast is for educational and entertainment purposes. It is neither investment, legal, nor tax advice and does not represent the opinions of any employers of the host or guest.
23:34 2/24/23
Casual investors understand that states approach taxation of its citizens differently and can have different approaches to raising revenue. However, in the last month, there has been a shift in the directionality of state tax policy. Seven states (including NY and CA) released aggressive (and interrelated) proposals to increase taxes. Some of these proposals center around forms of the controversial “wealth tax” – a tax that would raise revenue from unrealized gains. JARED WALCZAK will explore the new proposals, the likelihood of passage and their broader impact.  Jared Walczak is Vice President of State Projects at the Tax Foundation. He is the lead researcher on the annual State Business Tax Climate Index and Location Matters, and has authored or coauthored tax reform guides on Alaska, Iowa, Kansas, Louisiana, Nevada, New  York, Pennsylvania, South Carolina, West Virginia, and Wisconsin. Jared’s work is regularly cited in The New York Times, The Wall Street Journal, The Washington Post, Los Angeles Times, Politico, AP, and many other prominent national and state outlets. He previously served as legislative director to a member of the Senate of Virginia and as policy director for a statewide campaign, and consulted on research and policy development for a number of candidates and elected officials. He has been recently quoted extensively on this topic in the Wall Street Journal, the New York Post, and MarketWatch. Trying to predict tax legislation can be folly. However, states are known to be the laboratory for broader national tax legislation. These state proposals can provide interesting data points on the mood of legislatures and the directionality of tax policy across the nation. It’s important to know about them. Enjoy the conversation with Jared Walczak. Jared's Background  The Tax Landscape Context around Income Taxes Capital Gains Taxes Estate Taxes Wealth Taxes State Taxes vs Federal Taxes "Raising Revenue" vs "Wealth Redistribution" What is new in 2023 that has 7 states looking to raise taxes? Which states are we looking at here? California Connecticut Hawaii Illinois Maryland New York Washington What about the passage of Massachusetts' Millionaire Tax? What is the likelihood of passage? What does this tell us about the "Diverging Directionality" of State Tax Policy? Wealth taxes? We're already used to the concept of taxing unrealized gains with property taxes- Not popular- Haven't these been tried worldwide and often discarded? Administratively difficult?  Invest in valuation firms! Forced liquidations? Lower Business Valuations? Reduced Returns for Shareholders? Fairness?  Do you get a carry forward if there is a loss? Is the Wealth Tax Constitutional?  Is it a Taking? Is this a Business Climate to be Encouraged? Tax increase Directionality What do the tea leaves look like? What political points can be scored in such a divided environment? Any big crystal ball predictions here? How do we keep track of Jared and the Tax Foundation? JARED WALCZAK JARED'S WEALTH TAX ARTICLE @JaredWalczak ON TWITTER
25:09 2/13/23
We are all familiar with the labyrinth of the healthcare system:  The paperwork, the confusion and the cost can be overwhelming. One of the blind spots in wealth management at all levels is the advice for the most significant liability most families will face: healthcare.  I spoke to JOHN SAMUELS, founder of Better Health Advisors, to get smarter on the topic of how to better advise people around this thorny issue. For more than 20 years, JOHN served as a senior healthcare leader in top New York City hospitals, including Northwell Health and Mount Sinai Beth Israel. In 2016, John founded Better Health Advisors, an independent healthcare advisory firm, to share the expertise he developed as a healthcare insider with members of the public. He brings a unique viewpoint on the intersection between healthcare and wealth planning. After listening, I hope you better understand the landscape around helping families deal with this imprecise, paperwork heavy, massively expensive and emotionally taxing issue.  OUTLINE Talk about your background in emergency medicine and how that led to the founding of your company Why do you consider a person's health their greatest asset? Why is health management as important as wealth management  Do wealthy people usually get better healthcare? What do you wish more people understood about the intersection of health and wealth? What are the biggest mistakes you see people make related to health care?  In the United States, a healthcare crisis often comes with a big bill. What steps do you recommend people take to protect their wealth before an emergency arises? How is health insurance related to financial planning? Having health insurance options once you've sold or left a company in a W2 environment Bridging the gap to Medicare Elder Care (and my rule of thumb of 1 Tuition / parent / year as a way to flesh out costs) Managing (or outsourcing) the paperwork Finding the right instiutions and the right people in the institutions to get the correct care What is the definition of "concierge medicine" How do you manage HIPAA and privacy concerns? How does one build a team of advisors to deal with the legal and financial impacts around these issues? The importance of having a centralized repository for one's medical information. HOW DO WE STAY IN TOUCH WITH JOHN? BETTER HEALTH ADVISORS JOHN SAMUELS LINKEDIN HEALTH ADVICE RESOURCES FOR ADVISORS ADVISOR ISSUE SPOTTING GUIDE HEALTH VS WEALTH FUNCTIONS **This podcast is for educational and entertainment purposes. It is neither investment, legal, nor tax advice and does not represent the opinions of any employers of the host or guest. Frazer Rice is an employee of Next Capital Management, LLC. This podcast is not investment, legal, or tax advice, nor does it reflect the opinions of Next Capital Management. Any opinions represented in the show are Frazer’s or the guest’s individually.
26:43 2/2/23
With the end of the year approaching, the focus of HNW and Family Office Space has turned to intergenerational planning. One of the ideas on the minds of many families is providing for future generations. It would be natural to make gifts to future generations to avoid the estate tax. However, Congress figured that out and implemented the Generation Skipping Transfer Tax back in 1976.  It’s not easy to understand, implement or track especially across generations. MICHAEL GROSSMAN is here to help us understand the GST, Michael is Tax Manager/Fiduciary Specialist from the firm of Adelman Katz & Mond LLP ( He has Extensive experience working as a tax manager, fiduciary accountant and trust and estate administrator for the past 27 years and manages all aspects of ‘High Net Worth’ individuals and family tax issues. The Background on the US Tax Regime: What are ‘Lifetime Exemptions’ Income Tax vs Capital Gains Tax vs the Estate/Gift Tax vs GST What is a ‘Taxable Gift’ What is a (GST) – Generation Skipping Transfer Tax? Gift and GST – two separate lifetime exemptions · 2022 Estate/Gift Lifetime Exemption - $12,060,000 per person ($24,120,000/couple)· 2022 GST Lifetime exemption - $12,060,000 per person ($24,120,000/couple) GST – gifts to an individual vs. gifts to a trust· What is the difference between a ‘GST Trust’ and a ‘Non-GST Trust’· What happens when gifts are allocated to GST – or not Annual Exclusions – One size does not fit all· Crummey Power· Annual exclusion for ‘Gift Tax’· Annual exclusion for ‘GST Tax’ Mistakes: Not including or discussing gift to a Trust in overall estate plan· Conversations with family/trust and estate attorney Direct vs. Indirect (GST) Gifts· What is the difference· Reporting difference on Gift Tax Return Allocation of GST - Elections· Automatic Allocation· Opt in vs. Opt out Annual Exclusions· Follow up and connect to item #6 above Best Practices: Be clear in understanding how the trust works· Does the gift made align with overall estate plan· Does it accomplish your goals Make sure you discuss current and past gifts with attorney drafting trust· Review prior gift tax returns· Make sure preparer of gift tax return knows what they are doing WAYS TO FIND MICHAEL GROSSMAN Adelman Katz & Mond **This podcast is not investment, legal, or tax advice, nor does it reflect the opinions of Next Capital Management. Any opinions represented in the show are Frazer’s individually and not an endorsement of the guest. This podcast is for educational and entertainment purposes. It is neither investment, legal, nor tax advice and does not represent the opinions of any employers of the host or guest.
30:57 11/23/22