FFP Wealth Management is pleased to announce that we have partnered with Schwab Institutional as an additional custodian of the funds under the management of our firm. Schwab Institutional is a division of Charles Schwab & Co., Inc. and has served investment managers for more than a decade. Currently, over 6000 advisors entrust over $700 billion dollars of their clients’ assets to Schwab Institutional.

In November and December, we identified a group of our clients and asked them to help us with this process. As those clients involved know, the transfer of these accounts is well underway. We would like to thank those of you within this group for the timely review and return of necessary documents.

Some have asked our reasoning behind making such a move. Quite simply, we are adding optional custodians to fulfill our goal of business succession planning.  Succession planning simply means having the resources in place in case of an emergency, either natural or unnatural, to continue business as usual.

Investment company business succession requirements were elevated after the first attack of the World Trade Center in 1994. Succession requirements increased after 9/11 and again as a result of Hurricane Katrina in 2005. For this reason, management of FFP has investigated adding custodians in the past. While having multiple custodians is highly recommended, to this date there is no regulatory requirement to take this action.

These changes are entirely precautionary and do not reflect any cause for concern with our current custodian. We look forward to our continued relationship with National Advisors Trust Company and are highly satisfied with the service they have and will continue to provide.

 We are currently investigating the addition of Fidelity Institutional as yet another custodian. Please send an email if you are interested in moving funds to Schwab or to another custodian. We will contact you to tell you the pros and cons of each.

Roger Kruse, ChFC, CFP

This is a great follow up article about Roger and his Leave Wisely – Inherit Wisely workshop that was written for the Dow Jones Newswires!

http://financialadviserblog.dowjones.com/

In the opinion of FFP Wealth Management, the recent run up in the market runs contrary to the current financial condition of the world.  We believe that the stock market is due for a significant correction.  As a result, FFP continues to hold onto cash in client accounts while the markets assess the real risk of the European Crisis.

Here is an interesting article written for financial advisors that talks about the disconnect between estate planning for a client and the heirs of that client.  
FFP Wealth Management has been way ahead of the curve on this issue.  The estate plan is only half of the equation when you are talking about tax liability because inherited retirement plans retain the income tax liability after the owners death.   One person could have 4 heirs with 4 completely different income tax situations.  The heir ABSOLUTELY needs to understand their income tax situation before they inherit any monies so that the best tax strategy can be implemented.  
That means an estate plan should include a meeting with the potential heirs and getting to know their situation BEFORE the time comes when that inheritance is realized.  It also means heirs should sit with a qualified fiduciary to help them determine the best strategy prior to accepting an inheritance.  

Heirs article here 

What should you be doing now.

Energy Tax Credits Expiring in 2011 - Credits need to be claimed in the year in which they are purchased. The following forms must be filed by April 15th, 2012. IRS Form 5695: If you have made qualified energy efficient or renewable improvements to your house (nonbusiness)...

Read the full article HERE