Crystal Ball - What's the best investment of them All

On Monday evening, I attended an annual investment briefing from one of our national banks. I always find it interesting to listen to the economic forecast from economist and investment strategist; those whose job it is to study the market. Given the bleak conditions we have experienced over the last year or so, the bank's forecast (unlike others I have reported on) predicted brighter news on the horizon as demonstrated by the rise in the S&P 500. Though the increases have not been monumental, at least it is an upward movement.

The question still remains how does all of this affect you, the consumer. Some have remained in the market because, well, what else could one do but wait it out and hope for the best. Now there is even a suggestion to be bolder in the market by engaging in alternative investments. This would be in addition to a traditional market portfolio of stocks and bonds. It would encompass private equity, private real estate, natural resources and hedge funds. For me, in such uncertain times, the low risk/some return works better than high risk/high return, maybe. How can a person (the consumer or investment advisor) carefully select any investment these days? Oops, my crystal ball has a crack....can you spare yours???

Leave your comment or contact us at http://www.ythlaw.com/

What's Your Investment Strategy?

I wrote yesterday about an upcoming seminar I was attending. The speaker's topic was about rethinking your investment strategy.

I wish I could say he was optimistic about the direction of our current economic state. However, I suppose the truth of the matter is that these are turbulent times and a magic wand is not going to get us out of it. Our situation was years in the making and obviously it will take years to turn it around. In the meantime, we must continue to be vigilent in our savings and elimination of debt. We can not start over spending with the continued rise of unemployment.

As far of our investment strategy, I would suggest that it be a conservative one. The speaker did suggest that during these times buying gold has some advantages as part of your portfolio. However, the cost of gold is now in excess of $1,000 an ounce. This could be a prohibitive undertaken and though it may rise higher, it also may not.

Share your comments here or contact us at http://www.ythlaw.com/

What is a Private Foundation?

Private foundations are often founded by an individual or corporation and do not receive support from the public. They are essentially a private tax exempt organization with the purpose of benefitting public charities, including educational institutions, research organizations, or other nonprofit organizations serving the public interest. A private foundation does not provide charitable services but makes grants to provide funding to other qualified charities. Private foundations are established by those who want a greater degree of control over administration, making grants and investment of the assets donated to the private foundation, than is possible with public charities.

More importantly, the private foundation of an individual or family can serve to transfer assets to the next generation. This is accomplished by involving the younger generation in the foundation’s administration, management, and grant making. Children can learn about and engage in philanthropy at an early age. When a private foundation is established by a family, all of the family members’ charitable giving can be channeled into one vehicle, resulting in larger gifts and greater impact on their chosen charities.

Depending upon your level of giving, the private foundation may serve you and your family's charitable giving in a unique and beneficiary way. Want to learn more? Provide your comment here or contact my office for further information.