Retirement isn’t what it used to be.  Defined benefit plans, formerly a way for employees to have a relatively comfortable retirement, haven’t yielded the healthy returns of years past.

Many operate at a deficit.

Last year, based on an Asset Management Report from Goldman Sachs, the WSJ reported that 21of the 50 largest plans in the S&P 500 lowered their expected return on assets.  The expected shortfall will have dramatic consequences—but the news gets worse.  Consulting Firm Milliman compiled the 100 Pension Funding Index (PFI) showing the funded status of the 100 largest corporate defined benefit pension plans.

Many people spend a lifetime searching for that elusive yet vital calling: a life’s purpose. No one on their deathbed wishes more hours were spent at the office. 

It’s also surprisingly rare to long for one more day of golf or other leisurely pursuit. What becomes clear at the end of our lives is they are infused with true meaning and purpose based on our connection to others. And fundamental connections begin with family.

Business owners may be masterful at growing their businesses, however, succession planning is rarely considered until it’s time to sell the company or pass the reins to others. Generally business owners (and management) focus on the immediacy of issues at hand as well as general business planning. This could include serving clients, facilities upgrades, or other considerations directly linked to the business’ ability to thrive. Owners generally do not consider what leaving the “baby” they have worked so hard to build will look like once they sell the company or pass 100% of their responsibilities to other people. When it is time to make a succession plan, here is what we recommend you consider:

Ignoring the emotional aspects of wealth is a mistake.

Families have many pivotal moments—graduations, weddings or watching one’s own child become a parent may be among them, where legacies and traditions are passed down and shared with the next generation. The day financial responsibility is bestowed upon an heir is typically not included in such a list. 

But it should be.

Many people spend a lifetime searching for an elusive yet vital calling—their life’s purpose. No one on their death bed wishes more hours were spent at the office. It’s also surprisingly rare to long for one more day of golf or other leisurely pursuit. What becomes clear at the end of our lives is that true meaning and purpose is based on our connections to other people. Fundamental connections begin with family. What if a shared purpose was nurtured to serve as the bellwether for moments when decisions need to be made?

There are many reasons trust and estate planning attorneys who are not partnered with a multifamily office (MFO) might consider doing so. While sharing an affluent clientele and increased revenues is clearly advantageous, billable hours are only one aspect to consider. When properly nurtured, a relationship with an MFO is mutually beneficial for years to come – here are five reasons why:

There are many reasons Trust and Estate Planning attorneys who are not partnered with a multi-family office might consider doing so. While sharing an affluent clientele and increased revenues is clearly advantageous, billable hours are only one aspect to consider within a larger scope. When properly nurtured, a relationship with a multi-family office will be mutually beneficial for years to come. The size of the law firm retaining the attorney matters little—both small, specialized boutique practices as well as large firms can reap substantial benefits by affiliating themselves with a multi-family office. Here are five reasons why:

Every investment has risks.  Shareholder Activism, introduced in Part 1 here is no different.  However, as in most investments, its inherent risks can be isolated and controlled.  Below is the step-by-step process of an activism campaign along with the risk associated of each of the eight stages of development:

Shareholder activism has a history of creating positive change within companies.  S&P IQ’s research from 2013 and 2014 illustrate investing alongside Activist’s delivers returns that are significantly higher than the market’s returns.  However, there are still a number of risks—even when a high quality activist is at the helm—and results can vary greatly.

Captive insurance companies, self-insurers for businesses, provide owners with substantial tax advantages, the most attractive of which is an annual deduction of up to $2.2 million based on an actuarial assessment of your business.[1]  This effectively shifts business income from the top marginal tax rate of 39.6%, towards a more preferred dividend tax rate of 20%.  These cumulative savings can further benefit from the dividends-received deduction, which allows the captive to deduct 70% of the dividends that it receives from its stock portfolio investments.