Resource Center / Defender Perspective

Wealth Management True Team Approach
Traditionally, all but the wealthiest individual investors have employed a fragmented approach to their finances, one in which commission-based sales professionals fill needs for insurance, investments and other services on an ad hoc basis.  The world’s wealthiest families and individuals, however, have long benefited from a team-based, holistic approach to wealth planning, where all services are coordinated by a single, experienced team. Under this scenario, investors need not bear the stress of being the point person in an increasingly complex financial world. Instead, they can rely on their wealth planning team for coordinated communications and consolidated strategies to keep pace with the dynamic global asset management landscape. 

Financial Planning
As you know, millions of Americans became eligible to convert assets to Roth IRA’s January 1, 2010.  Though conversion privileges continue into 2011 and beyond, the 2010 Roth IRA conversion tax incentive is coming to a close. December 31, 2010, is the deadline for converting traditional IRA assets to a Roth IRA and spreading the income — and the tax burden — over the 2011 and 2012 tax years. 

If you plan to take advantage of this opportunity, do not wait for the last week of December, as processing times will be delayed due to volume.  

Beginning January 1, 2011, taxes will be due for the year the conversion was made.  Remember, a conversion can be “undone” via a “recharacterization” with no penalty.  As with this and any tax issues, please contact your tax advisor.

Asset Management
Warren Buffett, Stocks are cheaper than bonds: “In addition to spinning on taxes, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett said this week that investors that are buying bonds at current yields are 'making a mistake,' offering the following advice on asset allocation: 'It's quite clear that stocks are cheaper than bonds,' Buffett said 'I can't imagine anyone having bonds in their portfolio when they can own equities, a diversified group of equities.'"