Over the course of the year, our dedicated team has diligently crafted articles on essential financial planning and investment management themes that have commanded our attention.
In 2023, we explored a wide range of topics, including the appropriate role of private equity funds, estate planning in an era of higher interest rates, navigating naming beneficiaries for your IRA, and the philanthropic potential of donor-advised funds.
We take great pleasure in presenting to you a comprehensive recap of our team’s diverse range of topics covered throughout the previous year, along with convenient links to each article.
The Role Of Private Equity In A Diversified Investment Portfolio
Private equity funds are long-term investments in privately held companies, contrasting with publicly traded ones. The illiquid nature of private equity, with a typical time horizon exceeding 10 years, offers potential returns for patient investors.
The benefits of private equity include diversification into inaccessible private markets, the ability to influence business operations, and reduced volatility compared to public markets. Not to mention – it has historically provided compelling returns relative to public markets. Read the article.
Changing Seasons: Estate Planning & Higher Interest Rates
Adapting estate planning strategies based on the current economic environment is important, especially when the impact of rising interest rates on generational wealth transfers and estate planning can be so profound.
In the current high-interest-rate environment, three estate transfer strategies are considered less effective, namely intra-family loans, grantor-retained annuity trusts (GRATs), and charitable lead trusts. On the other hand, two strategies, charitable remainder trusts (CRTs) and qualified personal residence trusts (QPRTs), become more attractive as rates rise. Read the article.
Naming IRA Beneficiaries: Navigating The Hidden Complexity
The importance of naming beneficiaries for IRAs became more acute following the SECURE Act of 2019, which altered the rules for non-spousal beneficiaries. It’s crucial to differentiate between primary and contingent beneficiaries and to keep beneficiary lists up to date.
Additionally, it’s important to understand the options for listing individual beneficiaries, such as per stirpes and per capita distribution methods. It’s equally critical to comprehend how benefits will be distributed. Read the article.
Unleashing Philanthropic Potential With Donor-Advised Funds
Donor-advised funds (DAFs) have rapidly become a popular philanthropic tool for families with significant wealth to create a lasting legacy. DAFs allow donors to make irrevocable contributions of assets, receive immediate tax deductions, and direct contributions to qualified charitable organizations in the future. Unlike private foundations, DAFs offer simplicity, anonymity, and a more straightforward solution for most families. Read the article.
Money Life Interview: Douglas Crimmins
In 2023, Senior Portfolio Manager Douglas Crimmins appeared on the “Money Life with Chuck Jaffe” podcast to discuss RVP’s approach to identifying promising opportunities in underrecognized, yield-oriented, publicly traded securities. He detailed how RVP utilizes investment structures like Preferred Stocks, REITs, and BDCs, and employs a fundamental, bottoms-up process to spot investment opportunities. Doug also discussed why current market sentiment might be presenting favorable valuations and highlighted a specific niche in the Preferred Stock sector that shows promise in environments with rising interest rates. The full conversation is available for those interested in deeper insights. Listen to the full interview here.
We hope these articles have served as valuable resources for navigating your financial journey and making informed decisions. Our team is dedicated to sharing information and providing personalized solutions tailored to your specific needs and goals.
We invite you to connect with our team, as we would love to discuss the topics covered and how best to tailor personalized wealth management strategies to suit your unique needs and aspirations.
Information contained in this article is obtained from a variety of sources which are believed though not guaranteed to be accurate. Past performance does not indicate future performance. This article does not represent a specific investment recommendation.
No client or prospective client should assume that the above information serves as the receipt of, or a substitute for, personalized individual advice from Relative Value Partners, LLC which can only be provided through a formal advisory relationship. Clients of the firm who have specific questions should contact their Relative Value Partners counselor. All other inquiries, including a potential advisory relationship with Relative Value Partners, can be directed here.