Korving & Company LLC
Arie Korving spent 20 years in industry before deciding that investing was his true passion. As an Honors graduate from Michigan Tech with a degree in Chemistry, he took his analytical skills to unravel the intricacies of the stock market. Not long after entering the investment industry with Kidder, Peabody he experienced “Black Monday,” the stock market crash of 1987, which still ranks as largest one-day market crash in history, the Dow losing 22.6% of its value on October 19th 1987. It taught him a very valuable lesson: be very skeptical of Wall Street’s promises and always carefully examine what can go wrong. During his time as an advisor and portfolio manager he has experienced a number of other market cycles and has developed an investment philosophy that attempts to control risk while obtaining a fair rate of return. Prior to establishing his own investment firm, he was a Vice President and Senior Portfolio Manager for a major Wall Street Investment firm.
He believes in keeping it simple and educating his clients. He believes in transparency, with simple, easy to understand fees and no hidden compensation. As an independent RIA (Registered Investment Advisor), he is able to perform services for his clients that go beyond financial issues. He has gone car shopping for them and helped them decide on an appropriate retirement home. He is the trusted advisor for numerous widows who have lost husbands that managed the family investments. His experience in helping widows who lost their husbands prompted him to write his popular book BEFORE I GO, PREPARING YOUR AFFAIRS FOR YOUR HEIRS designed to make the passing of a loved one less traumatic for those left behind. He believes in consistency, telling his clients what he is going to do and then delivering on his promises.
He has been joined in the business by his son, Stephen Korving, a graduate of Virginia Tech with a degree in finance. Before joining his father, Stephen spent years with Cambridge Associates, one of the country’s premier investment management consulting firms advising foundations and wealthy families on asset allocation and manager selection.
Arie lives with his wife, Mary in Chesapeake, Virginia and is the proud father of his daughter, Marianne, his aforementioned son, Stephen, and his four grandchildren. He is an avid reader and amateur historian.
BS, Chemistry, Michigan Technological University
Without more information I’m unable to answer your question. If we were having a conversation my first question would be to ask why you wish to establish a trust. If there is a good reason for establishing a trust my next question would be to ask why you want to use a trust company as a trustee.
You may find that you can create a perfectly good estate plan without a trust. And if you create a trust and fund it you may not need a trust company as trustee.
I suggest that you meet with a good financial planner who can explain the ins and outs of estate planning and trusts and can provide you guidance on this issue.
There may be a failure to communicate here. When I discuss goals with clients, we talk about things in their lives that they would like to achieve. These may include goals such as a comfortable retirement, or intermediate goals like home ownership, or paying for college.
Debt is one of those things that obstruct or interfere with the attainment of those goals. If the debt is large enough and the cost of that debt is high enough, it can make those goals unattainable. Think of debt and debt service as the inverse of saving and investing. If debt service is high, such as the interest rate on credit card debt (often in the 20% range), paying off that debt is like getting a 20% return on the amount you are indebted.
Without debt, you are not experiencing the “drag” that is the cost of servicing that debt which is interfering with the attainment of your financial goals. That does not mean that people can’t save, invest, and accumulate assets before they have paid off all their debts. They may want a home because they need a place to live, and take out a mortgage because they can’t pay cash. They may buy a car and take out an auto loan because they need transportation. Credit card debt is one of the most common types of debt, and the worst, because the cost of that kind of debt is so high. It may well be an indication that people are living beyond their means. Credit cards should be used as a convenience, not as a way of living large.
As those debts build up and servicing those debts takes a larger portion of your income, it makes it much harder to accumulate wealth.
Does that make sense?
I feel your pain. Allow me to share a few thoughts with you.
Why are you a newspaper reporter? The newspaper business is in trouble for a number of reasons. Some of the largest (NYTimes) are losing money. The Washington Post has been purchased as a hobby by a billionaire. Newsweek was sold a few years ago for $1. You are young and should be looking at an occupation that has a future rather than a past.
Second, you can probably get rid of the car payment if you are willing to buy an older used car and drive it ‘till it quits or until you make enough money to buy a better car. If your friends laugh, tell them you are making a lifestyle statement. Your cell phone bill is quite high. I pay Verizon about twice that for a package that includes 3 phones and 3 iPads. Your utility bill also strikes me as high for an apartment.
Finally, if your salary is $25,000 annually you’re in the 15% tax bracket which should leave you with more take-home pay unless there is something else being deducted from your monthly check.
I suggest looking at ways that you can cut down on the expenses you listed and then consider a new career.
That’s an interesting question and it depends on who you ask. I will answer with a focus on losses rather than gains because, for most people, risk implies the chance that they will lose money rather than make money.
In my view, risk tolerance is your emotional capacity to withstand losses without panicking. As an example, during the financial crisis of 2008/2009, people with a low or modest risk tolerance, who saw their investment portfolios decline by as much as 50% because they were heavily invested in stocks, sold out and did not recoup their losses when the stock market began its recovery. Their risk tolerance was not aligned with the risk they were taking in their portfolio.
Risk capacity, on the other hand, is your ability to absorb losses without affecting your lifestyle. The wealthy have the capacity to lose thousands, millions, or even billions of dollars. Jeff Bezos, founder of Amazon, recently lost $6 billion dollars in a few hours when his company’s stock dropped dramatically, leaving him with a net worth over $56 billion. His risk capacity is orders of magnitudes greater than most people’s net worth.
There are some new tools available to measure your risk tolerance and determines how well your portfolio is aligned with your risk number.
You are correct and the executor of her will is wrong. An IRA is not “cash on hand” and goes directly to the named beneficiary. If you should cash in her IRA and hand it over to her estate, you would be forced to pay taxes on it on top of losing your inheritance.