Archive for June, 2013

The Talk You Didn’t Have With Your Parents Could Cost You

Monday, June 10th, 2013

If you haven’t had a conversation with your parents about handling their financial affairs after they die, this article is required reading.  Finances tend to be one of the trickiest topics because people do have traditional ideas about what you should and shouldn’t talk about.  Before you broach the topic, adult children should think about the sort of information they are seeking.  Adult children might also ask to tag along on a visit to their parents’ lawyer or financial advisor.

One common tool is a  revocable trust.  This is a tool often used to avoid probate and allow assets to immediately transfer to beneficiaries.  For the trust to work, all assets need to be retitled to the trust.  Upon death, the named trustee will go about distributing assets according to the instructions in the document.   

Everyone’s situation is different and its important to speak to an attorney or financial advisor to make this transition period as easy as possible.  To read more on this topic and one woman’s tale please CLICK HERE.

New Normal … Morphing

Monday, June 3rd, 2013

PIMCO’s investment professionals gatherd for three days to discuss the three-to-five year outlook for the global economy and markets.  Needless to say the role and actions of central banks across the globe was a recurring theme over the ”Secular Forum.”  Specifically, that in the process of buying time for economies to heal, they have inserted a disconnect between market prices and underlying economic and financial fundamentals. 

Despite their efforts, central banks are still unable to deliver sufficently robust growth and jobs to Main Street.  But they have been investors’ best friends.  If growth fails to materialize over time, reality will snatch back the returns from investors in the period ahead.  The underlying questions is how and when would improved funadmentals validate artificial prices in a globally consistent and sustainable fashion. 

To read more about PIMCO’s recent Secular Forum please CLICK HERE.