Modern Family, the Emmy-award winning television comedy, has one and chances are that, in your circle of family and friends, you have one too. Blended families, created either through remarriage or co-habitation after the death of a spouse, divorce or the dissolution of a common-law arrangement, are on the rise. According to Statistics Canada, 12.6% …
CURRENT ISSUE - Fall 2014
At the most recent T.E. Wealth client events held across the country in September, guest speaker Ryan Ponsford revealed a startling trend – as family wealth increases so does the likelihood of a family fracture. Ryan is a principal at Akili Capital in San Diego where he and his team work with wealthy families on facilitating the successful transfer of wealth from one generation to the next. Most people would assume that having more money would be a blessing but wealth brings with it a whole host of challenges and responsibilities, and, as Ryan noted, these can lead to the stress, time pressures, excessive spending and greed that contributes to family breakdown.
Interest rates began to fall back in the 1980s and, with the exception of the odd spike here and there, continued their downward trajectory to historic lows following the financial crisis. The decline contributed to a great bull market for bonds and, at the same time, ushered in an era of economic expansion, stock market growth and unparalleled borrowing by both consumers and governments. Rates have been stuck at what can only be described as ultra-low levels – the U.S. Federal Open Market Committee has kept short-term interest rates near zero for more than six years. In fact, short-term interest rates below 4%, the long-term historical average, now seem like they have been around forever and many of us are probably hard-pressed to imagine anything different. But what if…
When it comes to investment returns, we often look to alpha – the added (or subtracted) return that an investment manager generates compared to the benchmark or index, as a measure of whether or not we are receiving value. But is there such a thing as alpha for financial planning, and, if there is, how do you measure it? This was a question that Roy Diliberto tackled in an article published in Financial Advisor magazine.* Diliberto proposed that alpha for financial planning could be defined as “reaching or exceeding the client’s financial goals.” Certainly under this definition, alpha could be quantitatively measured. But Diliberto argues that there are also other less quantifiable benefits that need to be considered in the overall value of working with an advisor you trust. Strategies asked four T.E. Wealth consultants to consider how they would measure the alpha they provide to clients. Here’s what they had to say…
Canada has yet to capitalize on the rebound in the United States and lacks many of the drivers that are powering the U.S. economy’s breakout.
Broad-based U.S. recovery surges on
Economic growth in the U.S. is now running at a rate more than 50% higher than its trend rate over the last five years and real GDP growth picked up to an annualized rate of 4.6% in the second quarter. The consumer sector is making the largest contribution but other areas, such as fixed investment, housing, exports and inventory rebuilding, are having a positive impact on growth. As the unwinding of austerity measures takes place, government spending, even at the state and local level, is also helping boost growth.
Your parents have always been self-sufficient but recently there have been indications that all is not well financially.
You’ve discovered that bills are not being paid and purchases and repairs are being put off. How can you help your
parents out without hurting their pride?
Chances are that if your parents are of a certain age, money matters weren’t discussed around the dinner table. You certainly didn’t talk about your family’s income or how much was paid for your house. Not only was this information deemed private, it was also considered impolite to talk about money. So, it’s not unusual when parents are not forthcoming about their financial situation. To determine if there is a problem, and the extent of it, will require both tact and patience.
SIGN UP TO RECEIVE T.E. WEALTH STRATEGIES BY EMAIL
* indicates mandatory fields.
T.E. Wealth does not accept payments, trading orders for securities, or any other kind of business or financial transaction through this order form.
Please be aware that any data transmitted via the Internet may be accessed by anyone, including by parties across international borders, even though both sender and receiver are located in the same country. When using the T.E. Wealth contact form, the sender and receiver’s IP addresses are not encrypted and may be read by a third party.Print PDF