Glossary – Asset Management
and Retirement Planning Terms
Wills
Wills (and trusts) are important because they describe how you want your assets distributed when you die. There are many reasons why you should have a will, including to: clearly identify ownership of your property (and how much), assign a legal guardian for your children, expedite the legal process of assigning your assets, save on…
Trust Planning
One of the primary goals of estate planning (in addition to minimizing estate taxes) is giving the surviving family members and beneficiaries less stress and some privacy. Estate planning will ensure that your physical assets, investments, cash, etc. are transferred to your beneficiaries with minimal legal and tax complications and help protect your estate from…
Long-Term Care Insurance
This is a topic that could take pages to discuss. It’s going to boil down to “what’s right for you.” Your finances, experiences, geographic location, goals and health are all going to go into finding the “right” solution. (For example, there’s a genetic tendency for certain conditions such as Alzheimer’s – and also for vascular-related…
Disability Insurance
This can be critical for some people depending on circumstances. Earnings are the biggest asset (depending on stage of career). Disability insurance replaces part of your income, usually around 60% up to a specified amount, when an illness or injury is ongoing or permanent. All disability is not created equally. Now is a good time…
Business Life Insurance
If you own a small business and are self-employed, you can use life insurance for business continuation planning. Using the correct amount of life insurance (including specialized policies for small business owners) is very important with respect to both your business and loved ones.
Individual Life Insurance
Term Life Insurance can be used to help meet temporary needs such as covering children’s education or mortgage payments whereas Whole life insurance, which is permanent, can help meet permanent needs such as legacy and estate planning.
Optimal Asset Selection
When contributing to charitable causes selecting highly appreciated assets can reduce your tax bill and increase your deduction.
Charitable Gift Annuities
Charitable gift annuities are similar to other annuities in that a lump sum is exchanged in return for a series of payments. However, instead of involving an insurance company there is a contractual agreement between the donor and nonprofit that manages the charitable gift annuity. The funds are invested, and while the donor is living…
Charitable Remainder Trusts (CRT)
A charitable remainder trust (CRT) is a gift of cash or other property to an irrevocable trust. The donor receives an income stream from the trust for a term of years and/or for life and the named charity receives the remaining trust assets at the end of the trust term. The donor receives an immediate…
Donor-Advised Funds (DAF)
Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or…
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