Taking Care of Business
The average cost of probate typically ranges from 4
to 5 percent of the gross estate, and probate can
last several months to over a year. With proper
estate planning, business owners can avoid the
costly probate process while helping to protect
their family and their business.
Your heirs may inherit more than your estate when
you die. Federal estate taxes can be as high as 47
percent. An estate strategy using life insurance can
help your estate avoid probate and provide cash so
heirs can pay estate taxes.
When you own a life insurance policy, the issuing
insurance company will pay a death benefit to your
designated beneficiaries upon your death. Your heirs
can use this money to pay ongoing business expenses
or to settle estate taxes. It can also be a source
of funds to buy your business and keep it running,
or to pay for expenses associated with selling your
business.
Put Trust in Your Estate Plan -
An irrevocable life insurance trust can be used to
hold a life insurance policy outside of your estate.
Because the policy is owned by the trust, it is not
considered part of your personal estate and is not
used to calculate estate taxes.
Remember, the cost and availability of life
insurance will depend on such factors as age,
health, and the type and amount of insurance
purchased. As with most financial decisions, there
are expenses associated with the purchase of life
insurance. Policies commonly have mortality and
expense charges. And if a policy is surrendered
prematurely, there may be surrender charges and
income tax implications. Before implementing a
strategy involving life insurance, it would be wise
to make sure that you are insurable by having the
policy approved.
You've worked hard to build your business. With
proper estate planning, you can help protect both
your business and your family.
Read on...
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Greetings!
It's almost back! The Standard & Poor's July 27,
2005 edition of The Outlook reports: The S&P 500 hit
its
all-time closing high of 1527.46 on March 24, 2000.
By October 9, 2002, the index had fallen more than
49% to close at 776.76. In terms of percentage
decline, it was the worst bear market since the end
of World War II. We are slowly climbing out of that
pit, though purists will say that we are still in a
secular bear market because we have not yet
exceeded
the old high. But we are coming closer. Standard &
Poor's Investment Policy Committee now sees the S&P
500 ending this year at 1270. For 2006, it expects a
rise to 1335. That's only 12.6% below the old high.
Time to Share. Create a Buzz. We are
conducting a survey and your response would
be appreciated. There are only six questions and it
should take about five minutes. The information
gathered will only be used by WH
Cornerstone to design processes and services to
better enhance our suite of offerings. Responses
are
anonymous. Thanks for your participation! Take the survey now.
If you enjoy this newsletter, please share it with a
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the end of the newsletter.
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Growth or Value |
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When developing a financial strategy, most investors
eventually face a decision between growth stocks and
value stocks. The question is an old one, and
arguments on both sides of the coin may be compelling.
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Emotions and Investing |
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When asked to identify their investment mistakes, 36
percent of investors cited losing money as the most
painful. Although no one wants to lose money,
investors who stick with a long-term strategy may be
better able to weather the periodic ups and downs in
their portfolios.
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Rising Oil Prices |
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The price of oil has fluctuated widely over the past
few years, soaring to record or near-record highs
one month, then receding to more manageable levels
the next. Predictions are for oil prices to remain
high and creep higher in the near future. One OPEC
official has even warned that the price per barrel
could top $80 during the next two years, albeit
temporarily.
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Hurricanes and the Economy |
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We are in the midst of the 2005 hurricane season,
and it’s already a record breaker. If you live in an
affected area or one with a history of storm damage,
you are probably fully aware of the devastation
wrought by hurricanes. But you don’t have to live in
hurricane country to be affected by the damage
caused by these awesome storms.
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Great Expectations |
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Today, 51 percent of Americans aged 60 to 64 remain
in the workforce. For these and other Americans,
retirement doesn't mean slowing down. But from
modifications in schedules, lifestyle, and income,
retirement almost always brings change.
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