In the late 1990s, academic researchers began noticing an interesting but disturbing side effect of the roaring bull market: 401(k) investors consolidating their investment positions. Specifically, instead of diversifying their portfolios, many...
Ordinarily, the phrase in the tank is one that makes investors cringe, but this time around might prove an exception. Tankers, those giant ships that haul everything from oil to iron ore, are in high demand, which means they're likely to have...
Charles Schwab’s decision to replace David Pottruck as its CEO is, at its heart, an ironic statement on the firm’s commitment to his business philosophy.
On April 30, 1990, the Securities and Exchange Commission implemented Rule 144A, which it viewed as the first step toward achieving a more liquid and efficient institutional resale market for unregistered securities.1 The rule enabled less-than...
When a retirement plan death benefit is payable to a trust, what is the income beneficiary entitled to? Recently released Internal Revenue Service final regulations defining trust income defer to state law. The 1997 Uniform Principal and Income...
At first glance, the media reports that Estee Lauder's children were selling stock to raise $550 million for taxes, seem shocking. To owe that much in estate taxes means the estate was worth about $1 billion and raises the question of why Lauder...
Although the majority of executives in charge of small businesses worry about being sued, fewer than one in five have asset protection plans in place. The reason? Most say it's because asset protection has never been explained to them. This is the...
Some commentators argue for trusts that prevent disclosure to beneficiaries.1 I am struck by how easy it is to forcefully advocate an idea that is risky at best and, at worst, disastrous. Just think of a trust beneficiary who ultimately learns of...
