Permanent Value

President’s Message

Bruce Doole
April 12th, 2010

THE NEW HEALTHCARE…

was the dominant news item in the market this quarter, ultimately resulting in Congress passing the largest Healthcare legislation in the past few decades.  It will affect almost every American in one way or another, either requiring healthcare coverage for the millions who currently don’t have coverage (similar to auto insurance), changing premium costs to consumers and businesses, new prescription benefits to seniors and new regulations on insurance companies.  We will be providing a complete analysis on what this means for you in our upcoming newsletter.

In the markets, we ended on a high note this quarter after a bit of a bumpy ride.  In this newsletter, however, I want to highlight another success story and continue to show how we help you make positive changes to your financial situation in all aspects of financial planning and money management.  Last month we talked about cash flow and budgeting in our first example and advanced retirement planning in the second.  In this month’s success story, we’re focusing on estate and legacy planning as you’ll read below.

SUCCESS STORY:  BUILDING A FIRM FOUNDATION

A financially independent client asked us to help figure out how to sustain a legacy to their children and grandchildren.  They had been funding a garden dedicated to their mother for years but wanted to pass down this responsibility to future generations.  We discussed a number of solutions but decided that the best solution for them was a private foundation that could provide an endowment into perpetuity.  Ultimately this commitment allowed the garden volunteers and staff to go out to the surrounding community, leverage their endowment, and create an entirely new garden and experience for everyone who would subsequently enjoy it.   This is exactly what we try to help our clients achieve.   We want them to help serve as catalysts to achieve something that has more impact than they could ever provide on their own. In fact, the foundation this client set up has funded over a dozen charities and projects in other states across the country.

On another note, one of the most enduring benefits of the foundation to the family is the yearly family foundation meetings.  They truly bring the family together by helping others. We also helped the family realize some very valuable tax benefits by helping them donate assets that would have otherwise incurred large tax liabilities, which significantly offset taxes on their retirement income.  By allowing their children to research and create ideas to help allocate foundation money to causes where they could make an impact, the foundation has grown in scope to encompass something far more than the founders could have ever imagined.  It goes to show that a small, well thought out investment, can pay huge dividends for years to come.

We will continue to provide you with examples of success stories to show not only how you can improve your financial situation but also help your family positively impact others.  We look forward to meeting with you to discuss these issues in our annual or semi-annual meetings with you and/or in our monthly coaching calls.  Have a wonderful spring and summer ahead.