Bonds–The Tide Has Turned and the Sky Darkened


But you can thrive, not just survive, in the rising interest rate storm if you think strategically about your fixed instruments.

Key Takeaways 

  • Most investors need reliable fixed income sources to protect against a downturn in the stock market.
  • But, with the Fed tapering its bond-buying stimulus program, most expect interest rates to rise. That’s not great if you hold long-term Treasuries or corporate bonds.
  • When interest rates move up, you have a bear market in bonds, something we haven’t experienced in over 30 years–and it may be hard to adapt our thinking.
  • As a strategic investor, seek alternatives to long-maturity U.S. Treasuries and AAA-rated corporate bonds that aren’t as vulnerable to rising interest rates.

Market Trends Transitions


Markets keep changing. Here’s how to stay in the stay-rich game and hold on to your assets in any market cycle.

Key Takeaways

  • Wealth preservation is easily to the No. 1 concern among successful investors
  • There are three major areas to monitor when looking at your portfolio—cash flow, diversification and interest-rate risk.
  • The No.1 mistake that we see in portfolios is that they’re not goal-based.  

“Informed” Tax Savings


Gifting can be a smart way to reduce your taxable estate and help the next generation. Just be sure to check with the experts before gifting stock or other long-held assets.

Key Takeaways

  • The old adage about two tax systems in the U.S.—one for the informed, one for the uninformed—continues today.
  • Gifting stock to younger generations in your family can be a smart way to reduce your taxable estate.
  • Just make sure you’re aware of income thresholds that can cause capital gain issues to kick on for the gift recipients.

Rice Paddies to Rice Paddies


It’s never too early to start educating the next generation about the responsibilities of wealth.

Key Takeaways

  • Three keys to understanding intergenerational wealth transfer are the importance of the balance sheet, cash flow, and taxes.
  • Eighty percent of families are not able to transfer their wealth successfully to the third generation.
  • Educating the next generation about the responsibilities of wealth must start very young—just don’t expect the next generation to handle wealth the same way you do.