News & Views 
Cinco De Mayo Edition 

May 5 , 2015


I hope all is well.  In this edition of News & Views, I will discuss recent financial headlines and why you need a revocable living trust.  As always, please contact me with any questions or suggestions you may have.

Recent Financial Headlines
Reading Between the Lines

Fed Expected to Raise Rates in June:  The Federal Reserve is expected to raise the federal funds rate above zero for the first time in 6 1/2 years.  With the unemployment rate low and stock prices high, the Fed believes it is time to remove the punch bowl.  Time will tell if the economy can sustain without help from the central bank.

U.S. Homeownership Rate at 25 Year Low:  The seasonally adjusted homeownership rate, which shows the share of homes in which the owner lives, fell to 63.8%, the lowest level since 1989.  The gap between rich and poor grows wider as more "middle-class" families rent homes instead of owning them.

Deflation at the Fed?
Paul Volcker, Alan Greenspan, Ben Bernanke, Janet Yellen

Revocable Living Trust
Reasons Why You (and your close relatives) Need One

Managing Property Upon Incapicity: A Revocable Living Trust allows your successor trustee to take over whenever you resign or become incapacitated.  There is no court supervision needed and generally no interruption in the management of the property.  Moreover, Revocable Living Trusts are generally more accepted in the financial and legal communities because of their broad powers regarding property management.

Avoid Probate: Because your Revocable Living Trust specifies who is to receive your property, your beneficiaries avoid the costly and time-consuming probate court and immediately inherit the property upon your death.  

Protect Property: A Revocable Living Trust allows you to give your hard-earned money and property to those you care about while protecting it for them at the same time.  For example, you can specify that your young children are to inherit your assets not all at once, but over time.  You can appoint someone you trust as successor trustee to oversee the assets that pay for your children's education and living expenses until your children reach a more mature age, say 25, at which point your children could receive the remainder of the assets.



Paul Hewitt
(949) 727-4734 x1