Squam Lakes Financial Advisors, LLC
Bob has long been a proponent of fee-only financial planning and was a founding member of the National Association of Personal Financial Advisors (NAPFA), the leading professional association of fee-only financial advisors. He served three years as president and director of the Northeast Mid-Atlantic Region of NAPFA and led a committee to develop NAPFA University for the continuing education of fee-only financial advisors and planners. In 2011, he received NAPFA’s Robert J. Underwood Distinguished Service Award and in 2013 he was honored and recognized as one of the 30 Most Influential for meritorious service to NAPFA and the Fee-Only financial planning community.
Bob’s client base included women, retiring and retired couples, owners of closely held businesses professors at Plymouth State University. They look to Bob and his team to help articulate personal goals and develop comprehensive planning strategies for achieving those goals.
In the 14 years prior to founding his own business, Bob administered estates, trusts, and developed new business for bank trust departments. He was awarded the Master of Science Degree in Financial Services (MSFS) from the American College in Bryn Mawr, Pennsylvania, and had his undergraduate studies at Siena College in Loudonville, NY. Bob holds the Accredited Estate Planner certification from the National Association of Estate Planing Councils, a leading organization of professional estate planners and affiliated estate planning councils focused on establishing and monitoring the highest professional and educational standards for the practice.
Bob has been recognized as one of the best financial advisors in the country by both Moneymagazine and Worth magazine. Medical Economics also recognized Bob as one of the best financial planners in the country for doctors.
Financial writers have often sought Bob’s expertise in areas of personal finance. He has been quoted in the Wall Street Journal, Investment Advisor, Medical Economics, Physicians Personal Advisory and Money Magazine. Bob was also featured in Financial Planner magazine for his work as a financial advisor to women.
Bob is immediate past president and a board member of the Squam Lakes Chamber of Commerce and president of the White Pond Watershed Association. He is an active member of the Town of Holderness, NH as a member of the Zoning Board of Adjustments and the Budget Committee and a long-time participant in the “Who Can Make the Best Apple Pie Contest” in Holderness, NH.
In 2012 Bob was named as a director of Speare Memorial Hospital in Plymouth, NH and serves on its Budget Committee and its Long Range Planning Committee.
He is a member of the New Hampshire Estate Planning Council; past Chairman, President, and Director of the Connecticut Estate and Tax Planning Council; and a former President and Director of the Southern Connecticut Chapter of the International Association of Financial Planners (IAFP).
Bob is an avid hiker and fresh-water fisherman, and lives with his wife Bonnie in Holderness, NH.
BS, Finance, Siena College
MSFS, Financial Services, Bryn Mawr College
Fee-Only--Retainer Fee and Fixed Plan Fee
This is always an interesting question and what I usually hear is that a pension plan is dropping its lump sum option rather than adding one. First, consider this a worthwhile option regardless of whether you take it. The key to this decision is to understand that if you elect an annuity from the pension plan, the rates that are being quoted were somewhat guaranteed to the corporations pension plan years ago. These rates, in and among themselves, may not be competitive. Let's take an example. The pension plan may offer you, beginning at age 65, a monthly annuity for the rest of your life at $500 a month. They will also offer you a joint survivor annuity and let's say that they're willing to pay your wife 50% of what you take if she outlives you for the rest of her life. As you know nothing in life is free so instead of you getting $500 a month, you take it for $440 a month and at 50%, she would get $220 a month for the rest of her life if she outlives you. When this option is presented to you prior to retirement, your best bet is to determine whether in fact other insurance companies, outside of your Corporation, will offer you more than $500 a month.
At this point you have a lump sum and that is extremely attractive to insurance companies. So never take for granted that the rate you're getting from the pension plan is the best rate for you and your wife. The downside to taking an annuity is that at the death of you or in the case of a joint & survivor annuity, your wife, there is nothing left for children. The advantages are that you can never run out of pension payments and this needs to be taken into consideration as a guarantee. In the alternative, the lump sum is always extremely attractive to many individuals because if they can outlive the lump sum distribution in the form of an IRA rollover, there is something left for the children. Obviously there are the pros and cons but hopefully this gives you enough to start your research in trying to determine which may be better for you and your family. These are big decisions and I would strongly recommend that you hire a fee-only financial advisor to assist you when the time comes. You can find a local fee-only planner at the following website and be assured that these planners will not to try to sell you any products of any kind.. ww.napfa.org I hope this helps and good luck
Back in 2000, as a financial advisor in Annapolis Maryland, I was asked the same question by a court representing a young 17-year-old who had just won a $4.3 million settlement in a medical malpractice case. You mentioned that the amount of the award is substantial and it’s coming in the form of a lump-sum. The first thing you have to determine is whether or not the lump sums will be taxable. If, as in the case of the young lady in Maryland, it was a medical malpractice suit for pain and suffering, the entire award was to be received income tax-free over the young lady’s lifetime. So, instead of a lump-sum, we took an annuity payment with lump sums every five years over a minimum of 40 years. The next step is for the family, including the 18-year-old to retain the services of a “fee-only” financial advisor, a professional who does not sell product and simply sells advice. This will lead to the preparation of a financial plan, one that can be laid out to make projections over the next 10 to 20 years to determine if the lump-sum is sufficient enough to provide an income for the 18-year-old and assuming health is not an issue, help pay for college and possibly postgraduate expenses. Once the financial plan is in writing and the 18-year-old and the family are comfortable with the plan, the next step with the assistance of the financial advisor is to retain the services of a money manager or two, who in my opinion, should be independent of the family financial advisor. As all of this is progressing, the fee-only financial advisor should put together an estate plan that would include at a bare minimum, the following recommended documents. A "pour-over" will, a revocable trust, a durable power of attorney, a medical durable power of attorney, and possibly a living will. Once these documents are in place, all the funds are to be transferred to the child’s revocable trust (to avoid a future Probate) and it is up to the child to name trustees to act on his behalf. He can certainly be one of the trustees and depending on circumstances, at least one of his parents or guardians should act as the other trustee. It is these funds that, once they are in his trust and remember that this trust is revocable, that the investment should be made. You mentioned that the award is substantial. That being the case, if the assets of the award are annexes of $5.49 million, there is a potential for a federal estate tax in the event of his premature death. Also, find out if his data residence has an inheritance or estate tax at the state level in addition to the federal level referred to above. This should be taken into consideration by the family advisor and a truly competent estate planning attorney and dealt with during the planning process. I can think of a number of other important issues that will have to be addressed, but this is going to be more than enough to get you started. I sincerely hope this helps and I extend my very best wishes for the future.
Based on your mother's total income, it appears that she pays little or no income tax each year. If she were to sell during her lifetime and assuming your mom is in a 0%, 10, or 15% income tax bracket, the capital gains taxes are still zero. So, if mom were to sell her stock today, it appears that no matter how much the gain would be as part of the $5,000, there may be capital gains tax to pay. One of the advantages of waiting till mom dies is that any capital gains are forgiven. But if there's no tax to be paid while she's alive, the real question is, why would you wait? I hope this helps and good luck.
I can’t comment on the indexation or what Mr. Trump would include in his tax package. What I can comment on is that you’ve made a technical error in the taxation of distributions from annuities. All distributions from an annuity, at least the taxable portion, are considered to be ordinary income and are never treated as capital gain. With this as background, the taxation of withdrawals typically has two components. The first is a return of capital, this is your $35,000 and will never be taxable, and the second is a gain which is always taxed at ordinary income rates. Hope this helps in clarifying question.
Actually no, but there is an exception. As a holder of the power of attorney and more specifically for financial issues, you're being asked to act in a fiduciary capacity. This means that the individual who gave you the power is depending on you to act in his best interest and not your best interest. If one can prove that you took advantage of your situation as the agent for your friend or client, you can be held personally responsible for those actions. If however, you only act in the interest of the individual who gave you the power, there is never a reason to think you would be responsible for any of his debts. On the assumptions you have no doubts as to the fiduciary role you're playing, I would have little concerns. If there are any questions at all that might lead an outside individual looking in at your actions to determine that you acted on your own behalf rather than the person who gave you the power, I would immediately get some legal advice. I hope this helps and good luck