Individual Wealth – Free Bassuk http://freebassuk.com/ Thu, 24 Nov 2022 05:17:21 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://freebassuk.com/wp-content/uploads/2021/07/icon.png Individual Wealth – Free Bassuk http://freebassuk.com/ 32 32 Looking for ways to build wealth to weather inflation and growth risks? Here’s what you can do https://freebassuk.com/looking-for-ways-to-build-wealth-to-weather-inflation-and-growth-risks-heres-what-you-can-do/ Thu, 24 Nov 2022 05:17:21 +0000 https://freebassuk.com/looking-for-ways-to-build-wealth-to-weather-inflation-and-growth-risks-heres-what-you-can-do/ In a rapidly changing global environment where inflation and growth risks persist, it is essential not to be swayed by short-term dynamics, believes Gautam ShroffMD and Head – Institutional Clients Group at Nuvama Wealth Management. “Given that growth and inflation are the primary concerns, I think debt instruments as well as quality companies will do […]]]>


In a rapidly changing global environment where inflation and growth risks persist, it is essential not to be swayed by short-term dynamics, believes Gautam ShroffMD and Head – Institutional Clients Group at Nuvama Wealth Management. “Given that growth and inflation are the primary concerns, I think debt instruments as well as quality companies will do well,” Shroff told ETMarkets in an interview.
Edited excerpts:
What is your wealth building mantra and what is your advice to an investor ready to put Rs 10 lakh in the market today? Where and how should this money be invested?
My wealth building mantra is to minimize risk and avoid pitfalls. The focus on coherence, process and results will follow.
Market narratives change very quickly, so don’t get swayed by short-term momentum and have a long-term thinking process, stick to quality.
Today, given that growth and inflation are the main concerns, I think debt instruments as well as quality companies will do well.
If you think rate hikes are nearing a peak, gold as an asset class will also be in favor.

« Back to recommendation stories

What do you think is the best small savings plan that every individual should invest in with a long-term savings perspective?
PPF – Public Provident Fund and it is easily accessible.

Recently, Sebi introduced a regulatory framework for online bond platform providers. Your thoughts on this?
The recent circular seeks to bring online bond platform providers (OBPPs) under the gamut of regulation by the regulator. We believe this is due to the growing number of OBPPs and increased interest from high net worth retail/mass clients in this segment, away from traditional fixed income products like FDs.
I think that with OBPP being regulated, it is good for the long-term development of this market channel and nevertheless the awareness of retailers is increasing in this segment of the market.
Unlike equities, retail participation in the fixed income markets is not significant, so don’t see these regulations altering market dynamics in any way in the short, medium or long term.
India is seeing more and more new era companies emerging to tap the capital markets. We saw what happened to actions like , , after listing. As an investment banker, what challenges do you face when evaluating IPOs of unconventional companies?
Educating and sensitizing market players to different business models is a challenge.
Public market investors still believe in strong balance sheets and cash flow rather than platform companies for engagement.
I think a shift in mindset is needed to assess different metrics. Many companies are nascent and do not have decades of professional experience.
2022 has been robust when it comes to public issues. Do you see this trend continuing in 2023? Do you think fundraising via IPOs will hit a new high in 2023?
Post-Covid, a big difference is the balance sheet structure of companies in which a greater share is equity versus debt for their growth plans. Many new age companies are coming of age and India stands out on all metrics. So I’m optimistic about the primary market in 2023.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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What retirees need to know about qualifying charitable distributions https://freebassuk.com/what-retirees-need-to-know-about-qualifying-charitable-distributions/ Mon, 21 Nov 2022 17:04:00 +0000 https://freebassuk.com/what-retirees-need-to-know-about-qualifying-charitable-distributions/ DavidJake | Source of images | Getty Images If you’re retired and donating to charity this holiday season, experts say there’s a way to lower your 2022 tax bill while supporting your favorite cause. Despite economic uncertainty, the majority of American adults plan to donate similar amounts this year to last year, according to a […]]]>

DavidJake | Source of images | Getty Images

If you’re retired and donating to charity this holiday season, experts say there’s a way to lower your 2022 tax bill while supporting your favorite cause.

Despite economic uncertainty, the majority of American adults plan to donate similar amounts this year to last year, according to a recent Edward Jones study found.

Although tax breaks are generally not the primary reason to giveretirees can consider using qualified charitable distributions, or QCDs, which are direct donations from an individual retirement account to a qualifying charity.

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“For most people, most of the time, it’s going to be best if it’s your first source of charitable giving,” said certified financial planner David Foster, founder of Gateway Wealth Management in St. Louis.

If you’re 70½ or older, you can donate up to $100,000 a year, and that can count as a minimum distribution required if you transfer the money at age 72. Although the maneuver does not provide a charitable deduction, you may see other significant tax benefits, according to financial experts.

Meet the artist who gave away $140 million

The main benefit of a QCD is that the transfer doesn’t count as taxable income, Foster said.

Since fewer Americans itemize deductions, it can be difficult to apply for a write-off for charitable donations. However, retirees on the standard deduction may still qualify for a QCD as it will not form part of their adjusted gross income, he said.

Additionally, a QCD reduces their IRA balance, thereby reducing the size of future required minimum distributions, he said. “That’s a relatively small benefit for most people, but still relevant,” Foster added.

Higher Adjusted Gross Income Triggers Other ‘Tax Ramifications’

While most people don’t make charitable donations just because of the tax breaks, QCDs can offer a big one: lower adjusted gross income.

“It’s important because [higher] adjusted gross income often has many other tax ramifications,” said JoAnn May, CFP and CPA who founded Forest Asset Management in Berwyn, Illinois.

For example, more adjusted gross income can lead to higher monthly premiums for Medicare Part B and Part D, she said.

IRMAA is a big problem with my retired clients. They don’t like to pay.

JoAnn May

founder of Forest Asset Management

The surcharge, known as the Monthly Income Adjustment Amount, or IRMAA, add extra for one year once income exceeds a certain level.

“IRMAA is a big deal with my retired clients,” May said. “They don’t like to pay.”

Another example is the amortization of medical expenses. If you itemize deductions, you can claim tax relief for eligible expenses that exceed 7.5% of adjusted gross income. However, higher income creates a bigger barrier to claiming the deduction, she said.

Avoid These QCD Mistakes

One of the biggest problems with QCDs is that transfers aren’t separated on Form 1099-R, which reports retirement plan distributions to the IRS.

For example, if you withdraw $50,000 per year and $20,000 is for a QCD, the form will still show $50,000 in total distributions, even if only $30,000 is taxable income, Foster said.

“It’s up to you to keep track of how much of that money went directly to charity,” he said.

Additionally, the IRA payment must be made to the charity. If you write a check from your IRA to a charity in late December, it must be withdrawn from your IRA by December 31 to count for the year, May said.

Retirees, however, can get around the problem by having their caretaker sign the check.

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How direct indexing could work for you https://freebassuk.com/how-direct-indexing-could-work-for-you/ Fri, 18 Nov 2022 20:58:31 +0000 https://freebassuk.com/how-direct-indexing-could-work-for-you/ Take advantage of an investment strategy that only institutional or ultra-wealthy investors had access to in the past. Increase the after-tax return of your investment portfolio. Create your own index fund to invest in what matters to you. It’s tempting to dismiss these marketing claims as hyperbole, except that they come from some of the […]]]>

Take advantage of an investment strategy that only institutional or ultra-wealthy investors had access to in the past. Increase the after-tax return of your investment portfolio. Create your own index fund to invest in what matters to you. It’s tempting to dismiss these marketing claims as hyperbole, except that they come from some of the most well-known and respected names in the investment world, including Fidelity, Schwab and even Burton Malkiel, author of the classic investment. A random walk down Wall Street.

The fanfare speaks of a controversial trend: A growing number of investment firms are now offering Main Street investors a strategy called “custom” or “direct” indexing that typically requires buying and trading stocks directly, imitation of an index. Investment firms and advisors have long offered this strategy to the wealthy for an annual management fee that often amounts to more than 1% of portfolio value. But now, activated by commission-free trading, smart supercomputer programs and the ability to buy fractional shares, at least three companies – Fidelity, Schwab and Wealthfront – are repackaging the service for cost-conscious index investors. The new offerings let you get started with custom indexing with portfolios as small as $1, for fees ranging from $4.99 per month to 0.4% per year (see table below).

]]> Aaron Carter’s death renews focus on mismanagement of funds https://freebassuk.com/aaron-carters-death-renews-focus-on-mismanagement-of-funds/ Tue, 15 Nov 2022 20:42:15 +0000 https://freebassuk.com/aaron-carters-death-renews-focus-on-mismanagement-of-funds/ The recent tragic and untimely death of pop singer Aaron Carter, aged just 34, once again shines a light on the substance abuse and mental health issues that so often plague young stars. Unfortunately, these struggles often go hand in hand with family discord and mismanagement of a young star’s income. Carter rose to fame […]]]>

The recent tragic and untimely death of pop singer Aaron Carter, aged just 34, once again shines a light on the substance abuse and mental health issues that so often plague young stars. Unfortunately, these struggles often go hand in hand with family discord and mismanagement of a young star’s income.

Carter rose to fame in the 1990s, following in the footsteps of his older brother, Backstreet Boys member Nick Carter, and released his self-titled debut album at just 9 years old. Fast forward to Carter’s 18th birthday in 2005, when he learned he only had some $2 million in his account waiting for him and owed some $4 million in taxes. As a result, in 2013 Carter decided to file the balance sheet hoping for a fresh start, largely riddled with tax debt owed to the Internal Revenue Service on his earnings from the peak of his popularity as a child star as well as debt from creditors. According to court documents, Carter’s net worth at the time was just $8,232.16, including $60 in cash and the rest in personal effects such as a Breitling watch and computer equipment. His liabilities totaled $2,204,854, including a credit card bill of $31,166.

Mismanagement of funds

Who is to blame for such mismanagement of Carter’s funds? As Forbes To put it correctly, Carter was old enough to earn millions but was, understandably, probably too young to recognize the financial ramifications of his earnings. Much of the responsibility for his finances therefore fell to his parents or the management team.

California has in place what is called the “Coogan Act”, which is a law designed to protect child artists and to guarantee a minimum of 15% of the child’s gross income (and therefore not reduced by fees management, agent or others) upon reaching the age of majority, as well as protecting them from exploitation and abuse. “Although income earned by a child performer is legally recognized as the property of the child, those who control the income, usually the parents, have considerable leeway with funds that are not set aside in the Coogan Trust – so there’s still plenty of room for mismanagement of the remaining 85%,” said Marc M. Stern, partner at Greenberg Glusker’s private services group in Los Angeles.

This leeway was the root of the problem for Carter, who publicly argued with his family, including his mother Jane Carter, who was once his manager. He accused her of taking more than $100,000 from his bank account. Carter also spoke following the announcement that Britney Spears’ conservatorship had ended earlier this year, explaining that he had been in a similar battle with his family and reiterated his previous claims that his parents had spent an estimated $500 million on his income for houses and cars and that he never had a cut in any of the profits when they started selling them. He also sued Lou Perlman, a member of his childhood management team, for fraud as well as an accounting of royalties owed.

When it comes to preventing the mismanagement of a young star’s assets, “[t]here, there are really no infallible protections,” Stern believes. “Aaron Carter’s story is an example of how insufficient legal protections are – Carter alleged during an appearance on Oprah: Where are they now? that his parents never set aside the 15% income required by the Coogan Act. At the end of the day, if people don’t obey the law and court orders, there’s not much you can do. Carter even hoped to create his own law to further protect young stars, what he called the ‘Carter Law’, and help distribute childhood income in increments throughout an individual’s adult life. he added.

“Obviously, Aaron Carter recognized how the system had let him down and he hoped to help others avoid the same fate. You see this kind of unfortunate outcome even in more extreme cases, like Britney Spears’. Spears had a court-appointed curator, her father, who was required to periodically file accounts with the court, and she nonetheless accused him of enriching herself at her expense while he held that position. is the one most kids don’t have the power to control, surrounding themselves with people who won’t take advantage of you, including your parents,” Stern concluded.

At the time of his death, it is believed that Carter was worth approximately $400,000. According to reports, in 2018 he bought a $430,000 home in Lan Caster, California that he had recently relisted. In a 2016 interview with Oprah, Carter claimed that at the height of his career he was worth some $200 million – a staggering example of what can happen when assets are mismanaged or wasted.

Planning for addiction and mental health

Carter also opened up about her mental health and addiction issues. Planning ahead can be a useful tool for dealing with these issues, but unfortunately, many people who need help in these types of situations don’t recognize they need help, according to Stern.

One way to plan ahead is to grant management powers to an agent under a power of attorney or establish a revocable trust with a trustee to manage their assets for them. A guardianship is another possibility.

“While I believe conservatories can save lives and protect vulnerable adults in crisis, unfortunately I don’t believe it’s a viable option for Carter,” said Benny Roshan, partner and chairman of Trusts and Probate Litigation Group. of Greenberg Glusker in Los Angeles. . “On the one hand, Carter was openly opposed to a guardianship and felt betrayed by his partner, whom he suspected of plotting a guardianship with his siblings a year before his death. His public statements about his family during this time may have discouraged any effort by his family to retain him for fear of aggravating his crisis. Plus, any effort to retain Carter would have come under scrutiny given the public outrage over Britney’s botched conservatorship,” Roshan claims.

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The good news of God for those who spend their wealth in charity https://freebassuk.com/the-good-news-of-god-for-those-who-spend-their-wealth-in-charity/ Sun, 13 Nov 2022 08:57:48 +0000 https://freebassuk.com/the-good-news-of-god-for-those-who-spend-their-wealth-in-charity/ TEHRAN (IQNA) – God has promised in Surah Baqarah to give double reward to those who take the hands of the needy. According to Quranic verses, the wealth of the world is among the blessings of God and there are many instructions on how to obtain wealth and how to spend it. For example, verse […]]]>

TEHRAN (IQNA) – God has promised in Surah Baqarah to give double reward to those who take the hands of the needy.

According to Quranic verses, the wealth of the world is among the blessings of God and there are many instructions on how to obtain wealth and how to spend it.

For example, verse 31 of Surah Al-A’raf reads: “Children of Adam, take your adornment to every place of prayer. Eat and drink, and waste not. He doesn’t like waste.

The verse advises people to hold prayers and utilize God’s blessings while refraining from wastage.

According to Tafsir Noor – a Persian exegesis on the Holy Quran written by the eminent Quran teacher Hojat-ol-Islam Mohsen Qara’ati – the Quran describes the world as a temporary place and it should not be viewed as a permanent station. Meanwhile, the Quran does not prevent people from using and enjoying the blessings bestowed.

What God has forbidden is to cling to this world and forget Akhira.

Of course, this does not mean staying away from the blessings given by God. Verse 24 of Surah At-Tawbah reads: “Say: ‘If your fathers, your sons, your brothers, your wives, your tribes, the goods you have acquired, the goods you fear will not be sold , and the houses you love are dearer to you than Allah, His Messenger and those who strive for His way, so wait until Allah brings His command to you. Allah does not guide evildoers.”

The verse means that this world is good as long as it does not make you forget God and his satisfaction.

There are other verses that point to ways to donate one’s wealth, as any attachment to that wealth can prepare the ground for sins.

Verse 103 of Surah At-Tawbah is addressed to the Prophet Muhammad (PBUH), saying: “Take charity from their wealth, that they may be cleansed and purified, and pray for them; for your prayer is to them a comforting mercy. Allah is Hearing and Knowing. »

Therefore, an individual who falls in love with wealth and refrains from paying Zakat and Khums will gradually become oriented towards sins.

Meanwhile, the Quran has good news for those who are generous: “But those who give their wealth with a desire to please Allah and reassure themselves are like a garden on the hillside, if a heavy rain hits it, it yields double its value”. normal crop, and if heavy rain does not hit it, then light rain. Allah is the seer of what you do. (Surah Baqarah, verse 265)

According to the verse, those who spend their wealth in the way of God are promised to see the result of their good deed in the hereafter. He notes that kind people who help others for God’s sake will receive a double reward.

This article is taken from a Quran interpretation session by Hojat-ol-Islam Mohsen Qara’ati.

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A Few Simple Tricks Turn Humble HSAs Into Wealth Builders https://freebassuk.com/a-few-simple-tricks-turn-humble-hsas-into-wealth-builders/ Thu, 10 Nov 2022 20:04:24 +0000 https://freebassuk.com/a-few-simple-tricks-turn-humble-hsas-into-wealth-builders/ The $100 billion health savings account (HSA) industry offers significant financial planning opportunities for advisors and their clients, as only about a third of the industry’s assets have been invested, said a SAH specialist. By the end of 2021, there were some 32 million HSA accounts in the United States, with more than $100 billion […]]]>

The $100 billion health savings account (HSA) industry offers significant financial planning opportunities for advisors and their clients, as only about a third of the industry’s assets have been invested, said a SAH specialist.

By the end of 2021, there were some 32 million HSA accounts in the United States, with more than $100 billion in assets, said Peter Stahl, founder of consulting firm Bedrock Business Results in Wayne, Pennsylvania, and Certified Financial and Healthcare Planner. specialist. However, only $34 billion has been invested.

“That’s a lot of money sitting around in cash,” he said during a presentation at Schwab Impact 2022 earlier this month. “It breaks down into two categories: those I call accidental hoarders and those who do deliberate planning.”

Deliberate planners, he said, recognize how these accounts can be used and who receive advice from an advisor. “And what’s happening there is huge.”

Rising health care costs are driving growth in the use of HSA, Stahl said. By 2021, average annual premiums for employer-sponsored health insurance had risen to $7,739 for a single person and $22,221 for a family, he said.

“Not only is it very expensive, but the price increases have been crazy,” he said, noting that family coverage has increased by 22% over the past five years and 47% over the past 10. last years. “This is one of the biggest challenges we face when it comes to saving and investing money as a nation.”

Several other important savings categories — like retirement, buying a home or college education, or all three — are being moved down the priority list due to the cost of health care, he said. -he declares. Health plans with high deductibles (and lower premiums) have provided some relief, but the real consumer benefit that can come with qualifying high-deductible plans is the use of health savings accounts.

They’re not a one-size-fits-all solution, Stahl said, because some consumers need first-dollar coverage depending on their medical condition, and not all insurance is eligible. But for customers who can use one, an HSA is a tax-advantaged savings and investment account used for medical expenses.

To qualify for an HSA, family medical coverage must have at least a $2,800 deductible with a maximum of $14,100 for annual expenses, and individual coverage must have at least a $1,400 deductible with a maximum. $7,050 for expenses.

For this year, the contribution limits are $3,650 for individual coverage ($3,850 for 2023) and $7,300 for family coverage ($7,750 for 2023). Additionally, there is a $1,000 catch-up provision for account holders age 55 and older.

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TEXAS CAPITAL BANK WEALTH MANA https://freebassuk.com/texas-capital-bank-wealth-mana/ Fri, 04 Nov 2022 00:02:35 +0000 https://freebassuk.com/texas-capital-bank-wealth-mana/ TEXAS CAPITAL BANK WEALTH MANAGEMENT SERVICES INC recently filed its 13F report for the third quarter of 2022, which ended on 2022-09-30. The 13F report details the stocks that were in a guru’s stock portfolio at the end of the quarter, although investors should note that these filings are limited in scope, containing only an […]]]>

TEXAS CAPITAL BANK WEALTH MANAGEMENT SERVICES INC recently filed its 13F report for the third quarter of 2022, which ended on 2022-09-30.

The 13F report details the stocks that were in a guru’s stock portfolio at the end of the quarter, although investors should note that these filings are limited in scope, containing only an overview of long stock positions. listed in the United States and American certificates of deposit at the end of the quarter. They are not required to include international holdings, short positions or other types of investments. Yet even this limited repository can provide valuable information.

2000 McKinney Ave DALLAS, TX 75201

According to the latest 13F report, the guru’s stock portfolio contained 148 stocks valued at a total of $769.00 million. The main holdings were
VOO(21.90%),
IWR(8.42%) and
IEFA(5.24%).

According to data from GuruFocus, these were TEXAS CAPITAL BANK WEALTH MANAGEMENT SERVICES INC’s top five deals of the quarter.

Technology Select Sector SPDR ETF

During the quarter, TEXAS CAPITAL BANK WEALTH MANAGEMENT SERVICES INC purchased 162,142 shares of ARCA:XLK for a total holding of 164,161. The transaction had a 2.51% impact on the equity portfolio. During the quarter, the stock traded at an average price of $136.2.

On 4/11/2022, the Technology Select Sector SPDR ETF traded at a price of $118.82 per share and a market capitalization of $35.99 billion. The stock has returned -26.76% over the past year.

The data is insufficient to calculate the financial strength and profitability of the stock.

In terms of valuation, Technology Select Sector SPDR ETF has a price/earnings ratio of 9999.00 and a price/book ratio of 6.79.

Industrial Select Sector SPDR

The guru sold his investment of 171,712 shares in ARCA:XLI. Previously, the stock had a weighting of 1.75% in the equity portfolio. The shares traded at an average price of $91.69 during the quarter.

On 04/11/2022, Industrial Select Sector SPDR traded at a price of $93.57 per share and a market capitalization of $12.66 billion. The stock has returned -9.34% over the past year.

The data is insufficient to calculate the financial strength and profitability of the title.

In terms of valuation, Industrial Select Sector SPDR has a price/earnings ratio of 9999.00 and a price/book ratio of 3.90.

iShares Russell Mid Cap ETF

TEXAS CAPITAL BANK WEALTH MANAGEMENT SERVICES INC reduced its investment in ARCA:IWR by 153,087 shares. The transaction had an impact of 1.16% on the equity portfolio. During the quarter, the stock traded at an average price of $68.47.

On 11/04/2022, the iShares Russell Mid-Cap ETF traded at a price of $65.67 per share and a market capitalization of $26.36 billion. The stock has returned -20.98% over the past year.

The data is insufficient to calculate the financial strength and profitability of the stock.

In terms of valuation, iShares Russell Mid-Cap ETF has a price-to-earnings ratio of 9999.00 and a price-to-book ratio of 2.43.

Consumer Discretionary SPDR

The guru established a new position worth 57,815 shares in ARCA:XLY, giving the stock a 1.07% weighting in the equity portfolio. The shares traded at an average price of $156.19 during the quarter.

On 04/11/2022, Consumer Discretionary Select Sector SPDR traded at a price of $136.36 per share and a market capitalization of $13.77 billion. The title returned -33.67% over the past year.

The data is insufficient to calculate the financial strength and profitability of the stock.

In terms of valuation, Consumer Discretionary Select Sector SPDR has a price/earnings ratio of 9999.00 and a price/book ratio of 5.81.

Consumer Staples Select Sector SPDR

TEXAS CAPITAL BANK WEALTH MANAGEMENT SERVICES INC reduced its investment in ARCA:XLP by 108,997 shares. The transaction had an impact of 0.92% on the equity portfolio. During the quarter, the stock traded at an average price of $72.87.

On 04/11/2022, Consumer Staples Select Sector SPDR traded at a price of $71.01 per share and a market capitalization of $15.57 billion. The stock has returned 0.44% over the past year.

The data is insufficient to calculate the financial strength and profitability of the title.

In terms of valuation, Consumer Staples Select Sector SPDR has a price/earnings ratio of 9999.00 and a price/book ratio of 4.85.

Please note that figures and facts quoted are at the time of writing this article and may not reflect the latest business data or company announcements.

You want to give your opinion on this article ? Do you have questions or concerns? Contact us hereor email us at [email protected]!

This article is general in nature and does not represent the views of GuruFocus or any of its affiliates. This article is not intended to be financial advice, nor does it constitute investment advice or recommendation. It has been written without taking into account your personal situation or financial objectives. Our goal is to bring you data-driven fundamental analysis. The information on this site is in no way guaranteed to be complete, accurate or in any other way.

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“The CS First Boston solution is elegant” https://freebassuk.com/the-cs-first-boston-solution-is-elegant/ Mon, 31 Oct 2022 00:23:00 +0000 https://freebassuk.com/the-cs-first-boston-solution-is-elegant/ Andreas Ita is full of praise for Credit Suisse’s new strategy. The former UBS executive and current chief executive of consulting firm Orbit36 tells finews.com where the bank’s management around Ulrich Koerner still has work to do. Mr. Ita, Credit Suisse yesterday presented a whole package of measures to stabilize the bank. Was Ulrich Koerner’s […]]]>

Andreas Ita is full of praise for Credit Suisse’s new strategy. The former UBS executive and current chief executive of consulting firm Orbit36 tells finews.com where the bank’s management around Ulrich Koerner still has work to do.


Mr. Ita, Credit Suisse yesterday presented a whole package of measures to stabilize the bank. Was Ulrich Koerner’s management brave enough to do so?

We think so. With the announced reduction of investment banking by 40%, Credit Suisse management has made clear its commitment to focus on Swiss wealth management and banking in the future and to reduce the Markets division. is to say the new investment bank, pure function provider.

What was missing – what could the bank’s management have done better?

Credit Suisse management probably did not have many strategic options to implement given the current situation. The strategy announced is therefore fully in line with our expectations. In our view, information on the expected long-term profitability of the new investment bank as well as the bank as a whole was somewhat lacking.


“CDS spreads as well as AT1 bond prices have already recovered from their extreme levels”


So far, how the bank creates lasting shareholder value once the strategic transformation is complete remains somewhat unclear. For example, regulatory capital return targets through 2025 are below the cost of capital. At Credit Suisse, these are more in the order of 10% than the target return of 6% on regulatory capital.

Shares of Credit Suisse plunged immediately after the announcement. Despite all this, has management failed to restore investor confidence?

The fall in the share price is largely explained by the dilutive effect of the announced capital increase. We believe that the measures taken are conducive to building new confidence. This view is also supported by CDS spreads and AT1 bond prices, which have already recovered significantly from their extreme values ​​at the start of the month.

A nasty surprise was the $1 billion write-down on deferred tax assets that Credit Suisse took to the balance sheet in the third quarter, apparently as a result of the restructuring. Where do you see other pitfalls in the restructuring of the bank?

This concerns the amortization of deferred tax assets, a direct consequence of the shutdown of certain businesses. In the restructuring – at this early stage – not all details are known. Decisions at a more granular level, such as the restructuring of individual legal entities, can often only be made later. In this context, surprises due to tax or capital effects can never be completely ruled out.

So there are no more imponderables?

It should also be kept in mind that the Structured Products Group (SPG) divestment transaction is not yet in the bag and that many questions of detail still need to be resolved regarding the creation of the independent legal entity. CS First Boston.

Why did Credit Suisse choose the option of reviving investment bank CS First Boston rather than simply selling the business outright?

Selling individual business units within a group is a demanding and complex business. With the chosen option, Credit Suisse saves the time it needs to first transfer the relevant activities to an independent business unit. This gives him the ability to give employees an equity stake in the unit, raise funds from third-party investors, and possibly later go public, which Koerner raised as a possibility. The variation is elegant because it spares Credit Suisse the restructuring costs of layoffs, allows employees to keep their jobs, and still lets Credit Suisse shareholders participate in any recovery in market conditions.

Koerner & Co communicated extensively on the new structure and savings, but was vague on the return outlook for the new build, as you say. Is it justified?

The bank must manage to cover at least its cost of capital after 2025 and create value for shareholders. This is the only way to avoid a lasting discount to book value. To be fair, however, it must also be said that higher returns often only materialize a few quarters after a successful restructuring.


“The option of a new SKA (Schweizerische Kreditanstalt, or SKA, was the predecessor of Credit Suisse) is more in line with the romantic ideas of many Swiss”


This was also the case at UBS at the time. We suspect that Credit Suisse senior management deliberately provided rather conservative information so as not to have to surprise the market later with a missed target. In this sense, the bank seems to have learned the lessons of the past.

The future of banking depends above all on wealth management. But the division has not been able to shine lately. Are the hopes placed in this workhorse exaggerated?

High net worth clients have multiple banking relationships. They usually react by changing banks when they have doubts about a bank’s solvency. When confidence returns, they will tend to repatriate funds to ensure sufficient diversification of their balances.

It is striking that, of all the strategic options, Credit Suisse has been very cautious about its activities in Switzerland. What is the argument against the vision of a new SKA managed as an independent company?

This option corresponds more to the romantic ideas of many Swiss people than to an economically sensible strategy. Economies of scale play a major role in banking as well as asset management.


Andreas Ita is the founder and managing partner of Orbit36, a firm that advises banks and insurance companies on strategic planning and risk and capital management. The Swiss banker began his career in equity derivatives trading and worked for UBS for a total of 22 years. Most recently, he was responsible for the economic performance of the group and the optimization of the capital of the Swiss bank until mid-2019. He holds a doctorate. in Banking and Finance from the University of Zurich.

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Burgess Thomson experts in family wealth and business succession | Newcastle Herald https://freebassuk.com/burgess-thomson-experts-in-family-wealth-and-business-succession-newcastle-herald/ Fri, 28 Oct 2022 13:45:43 +0000 https://freebassuk.com/burgess-thomson-experts-in-family-wealth-and-business-succession-newcastle-herald/ WEALTH OF KNOWLEDGE: Burgess Thomson is located in brand new offices at 1 Newcomen Street, Newcastle. For more information call (02) 4929 5602 or visit www.burgessthomson.com.au. Image: Provided Nobody likes to think about it too much, but inevitably, one day, a wealthy person may have to leave their business by selling, retiring or leaving for […]]]>
WEALTH OF KNOWLEDGE: Burgess Thomson is located in brand new offices at 1 Newcomen Street, Newcastle. For more information call (02) 4929 5602 or visit www.burgessthomson.com.au. Image: Provided

Nobody likes to think about it too much, but inevitably, one day, a wealthy person may have to leave their business by selling, retiring or leaving for health reasons.

When it comes to issues like family wealth and business succession, having a succession plan in place is very important.

This makes the transition easier not only for yourself, but also for your family or employees.

Family wealth lawyers like Burgess Thomson can help you with a number of areas, including estate planning, asset protection, tax reduction and more.

Family Heritage Succession

Ensuring that your family’s heritage is protected and preserved is essential, but while it’s important to protect your assets after you die, it’s also essential to ensure that your assets are properly protected during your lifetime.

“Formulating and implementing a plan early is the best way to enable asset and estate protection as you wish,” according to James Thomson, director and senior counsel at Burgess Thomson.

“We can advise you on the benefits and risks of different options, including asset protection strategies, advice and support regarding business structures and advice on pension law, including setting up self-managed pension funds.

“That way, you can make informed decisions that best meet your unique needs and circumstances.

“We can also help you prepare wills, testamentary trusts, powers of attorney and appointments of permanent guardians tailored to your unique situation.”

business succession

Business succession planning can be complex and unique in every situation, especially when it comes to determining who might be suitable to take over the business.

Research suggests that over 65% of family businesses fail when passed on to the second generation.

This can be avoided by having an effective business succession process in place.

“A well-constructed plan will support family businesses allowing business owners to retire or rest easy knowing that the business is protected in the worst case of death or incapacity,” James said.

Burgess Thomson is one of Newcastle’s most reputable law firms, established since 1983 and listed in the Legal 500 and Doyle’s Guide to top-ranked law firms.

Burgess Thomson’s areas of expertise include:

  • Wills and testamentary trusts
  • Appointment of a permanent guardian and power of attorney documents
  • Shareholder agreements
  • Purchase/sale agreements
  • Advice and support in business structuring
  • Company power of attorney
  • Asset Protection
  • Personal estate planning

Founder Damian Burgess has over 40 years of legal experience and many loyal clients.

James has over 20 years experience and holds degrees in law and commerce from the University of Sydney and the University of NSW respectively and also completed the Negotiation Program at Harvard Law School.

With a team of lawyers and paralegals, they take the time to get to know their clients and meet their needs.

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Echelon: M&A investment adviser bucks deal downtrend https://freebassuk.com/echelon-ma-investment-adviser-bucks-deal-downtrend/ Tue, 25 Oct 2022 23:01:40 +0000 https://freebassuk.com/echelon-ma-investment-adviser-bucks-deal-downtrend/ Mergers and acquisitions (M&A) activity has been stalled in many industries, but it’s still going strong in the investment adviser and brokerage space in 2022, according to the investment bank and consultancy managed by Echelon Partners. M&A activity in wealth management increased year-over-year to 84 deals in the third quarter of 2022, from 78 deals […]]]>

Mergers and acquisitions (M&A) activity has been stalled in many industries, but it’s still going strong in the investment adviser and brokerage space in 2022, according to the investment bank and consultancy managed by Echelon Partners.

M&A activity in wealth management increased year-over-year to 84 deals in the third quarter of 2022, from 78 deals in the third quarter of 2021, Echelon said. Deal-closing activity was down from the previous two quarters of 2022, but the company still expects a total of 345 deals in 2022, surpassing 2021’s total of 307 deals.

“Deal activity in wealth management remained relatively resilient despite a global slowdown in mergers and acquisitions, which was spurred by rising interest rates and geopolitical instability,” Echelon said in its Third Quarter RIA Mergers & Acquisitions Report released this week.

Dealing activity among Registered Investment Advisers (RIAs) has grown steadily since 2020 and by the end of this year will likely reach a record high since Echelon began reporting in 2016 Acquisition interest in RIAs is largely driven by private equity that sees value in consolidating players in the crowded, maturing wealth management industry, says Brett Mulder, vice president of RIA. Echelon Partners.

“It looks like these forces will continue to propel activity at least in the short term,” Mulder said.

Meanwhile, market volatility can create an opportunity for investors, rather than being a deterrent. “They can potentially take advantage of any dislocation created by market volatility,” Mulder said.

Echelon said 42% of deals through the third quarter of 2022 were closed by strategic acquirers or consolidators, and private equity firms directly invested $80 billion in assets under management (AUM) over the course of the year. trimester.

Demand for legacy technology solutions, including those from startups, has also been a driver of mergers and acquisitions, according to the report. Interest in technology-based product distribution, artificial intelligence, and automated billing are all driving interest in transactions.

Offers up, AUM down

Although the number of transactions was robust, the average AUM per transaction since the beginning of the year fell to $1.7 billion, 17% below the average of approximately $2.1 billion of last year, according to the report. The decline is indicative of declining assets under management, with stocks and bonds falling, Mulder said. Of the deals that were announced in Q3 2022, 43% of acquired businesses have less than $1 billion under management, and average assets under management handled under the deals were approximately $389 million.

The relatively small deal size means that rising interest rates, which make borrowing to fund deals more expensive, are often not a problem for acquirers, Mulder said. Many private equity firms fund deals from their own credit facilities or from capital on their balance sheets, he says.

According to a semi-annual report of the consulting firm PWC. The company also notes headwinds such as the war in Ukraine and falling stock markets, saying traders are “facing arguably one of – if not the – most uncertain and complex environments in recent memory.” .

Despite these headwinds, the M&A adviser and investment continues to grab headlines in Q4. In the past few weeks alone, deals have been announced, including private equity firm Platform Partners LLC agreeing to invest in growth plans the pension company JULY Business Services and the private equity company Valeas accepting a $200 million minority stake in wealth manager Sequoia Financial Group.

CAPTRUST, publisher of retirement solutions, also bought a Boston-area adviser who oversees $900 million in assets. CAPTRUST has other acquisitions in the works, said Rick Shoff, managing director of CAPTRUST’s advisor support group.

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