White Papers

Roy Ballentine, CLU, ChFC, CFP®, manage, The business of wealth management

The Right Way To Manage Wealth

This article addresses important questions for the owners of substantial private wealth:
• What is the right way to manage wealth?
• What mistakes do most families make?
• How can families avoid those mistakes?

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Michael Chimento, CFA, funds, private

Tax-Efficient Investment Management 2006-2014, A Case Study

This paper highlights the importance of active tax management of investment portfolios, using the results of an actual Ballentine Partners’ client as a case study. While the strategies and results described are real and verifiable, other details regarding the client have been altered to protect confidentiality. During the period covered by this study, we were able to add approximately $18.8 million of value for a $300 million portfolio (inclusive of a concentrated stock holding) through the combined impact of (1) strategically locating assets to save gift tax, estate tax, and generation skipping tax and (2) active tax management of the portfolio.

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Roy Ballentine, CLU, ChFC, CFP®, manage, The business of wealth management

What is Risk?

Individual investors tend to equate “risk” with loss of capital. That definition of risk may lead an investor astray and prevent the investor from reaching his or her goals. This article proposes a different definition of risk and explains how prudent management of risk is essential for meeting the investor’s goals. Investors cannot avoid risk, and there is no such thing as a “risk-free” investment.

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Roy Ballentine, CLU, ChFC, CFP®, insurance

Estate Planning Questions and Issues to Ponder

This article explores some key estate planning issues that arise in nearly every discussion about estate planning. If couples arrive in their attorney’s office having already thought about these issues, estate planning discussions will go more smoothly and couples will feel more confident in their decisions.

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Sam Nofzinger, CFA

MLPs – Confusion and Fear

Master limited partnerships have had a tough year. A precipitous drop in energy prices, weak investor sentiment, adverse technical selling factors (closed-end fund deleveraging, short-selling by hedge funds, tax-loss harvesting), and recent issues surrounding one of the bellwethers of the industry, Kinder Morgan, have all contributed to the worst performance the sector has ever experienced.

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Austin Poirier, MSFP, CFA, volatility, others

Improving Investment Returns by Reducing Taxes, A Case Study

This case study is based on an actual Ballentine Partners client family and outlines best practices for maximizing client after-tax returns using a number of techniques including asset allocation planning, asset location planning, and active tax management of portfolios.  While the strategies and results described are real and verifiable, the details of the client’s background […]

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Sam Gough, CFP®

A Breach Has Occurred… Now What?

With cyber theft often in the headlines, it might seem as though it’s not a question of whether your personal information will be compromised, but when. For example, you have likely seen CNN’s estimates that over 100 million Americans have had their personal information stolen and exposed over a one year period. This may leave […]

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Austin Poirier, MSFP, CFA, volatility, others

Investors Profit from a Shrinking Banking System

The 2008 US Credit Crisis and resulting European Banking and Sovereign Crisis exposed major weaknesses in banking regulations and oversight. The reaction from policymakers and market participants set about sweeping reforms that will permanently alter the system as we know it. Ballentine Partners has followed these events closely, recognizing that massive regulatory change will create […]

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Are the Emerging Markets in Trouble...Again?

Are the Emerging Markets in Trouble…Again?

Are we on the verge of a repeat of 1997 and 1998 when we saw a surge of defaults by the countries collectively called the “Emerging Markets?”  Why does this matter?  How does this affect emerging market stock indices and your portfolio?  Given the risks, does it make sense to maintain your portfolio’s exposure to […]

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Setting Your Investment Goals: It’s Harder Than You Think

The right way to define your investment goals requires you to answer many important questions about your financial situation now, and your expectations for the future.  You must address the types and amounts of investment risks you are willing to tolerate.  You must also consider taxes on your investment income, inflation, investment fees, regulatory constraints […]

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Sam Nofzinger, CFA

The US Energy Boom Will Be Back After a Brief Intermission

The US energy renaissance may be taking a breather, exasperated from ten years of mind boggling growth, but unquestionably it is not over. Global energy demand is expected to grow well into the future and the US is poised to take advantage of the trend to become the world’s marginal producer. At current oil prices, […]

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How to Prevent Being Stolen From

While everyone is at risk when it comes to hackers and online thieves, the wealthy are specifically targeted, and increasingly by aggressive and well-organized individuals. The good news is there is a lot you can do to protect yourself and your family. It won’t take much time – most of the effort involves simple, common-sense […]

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Debunking the Myths of Impact Investing

This paper outlines the challenges and opportunities in a rapidly growing field and proves that sometimes when “creativity” and “finance” come together, it can actually be a good thing!      

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Roy Ballentine, CLU, ChFC, CFP®, manage, The business of wealth management

The Business of Wealth Management

by Roy C. Ballentine, CLU, ChFC, CFP® Important decisions we made, why we made them, and what it means to you This article describes important decisions we made in structuring our wealth management practice. Our purpose is to explain the decisions we made in our business and how they affect our clients. Much of what […]

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Wealthy But Illiquid

The combination of risk concentration and lack of liquidity poses significant challenges for wealth management, and for the preservation of wealth. If you are the owner of a private company, a top officer, director or major shareholder in a public company, a principal in a private equity, hedge fund or real estate investment firm, you […]

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Portfolio Optimization Theory vs. Practice

This paper examines the gap between the theory of portfolio construction and its practice. In particular, it analyzes some of the problems in the application of portfolio optimization techniques to individual investors. We then discuss what can be done today to compensate for the problems with the theory, and what additional work needs to be […]

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Roy Ballentine, CLU, ChFC, CFP®, manage, The business of wealth management

Decision Model for Non-Qualified Stock Options

This paper analyzes various strategies for an individual who holds a non-qualified stock option and who desires to maximize the amount of after-tax wealth generated by the option. In all cases, we assume the executive will do a “cashless” exercise. That is, the executive will pay the option strike price by exercising additional options and […]

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The Great American Energy Boom

This paper discusses the re-emergence of domestic energy production, illustrates the evolving opportunities and risks brought about by this re-emergence for the United States and briefly touches on the potential investment opportunities for our clients. This paper will have a particular focus on natural gas, the most significant source of domestic energy.

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The Future of Impact Investing

Social investing has evolved from “responsible” to “impactful.” Learn which investors and asset managers are driving the change and how this relatively new opportunity set enriches a broader investment strategy.

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Best Practices for Protecting the Privacy of Your Family Foundation

Family foundations are required to publicly disclose sensitive information – but you can take steps to protect your privacy. Family foundations comprise nearly half of the 76,000 private foundations in the US. Every year, these family foundations are required to disclose information in mandatory filings that become public. Unfortunately, the information contained in these filings […]

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A Balanced View of the State of the Municipal Bond Market

Despite the negative drumbeat of negative press about the state of municipal finance in the United States, we believe the risk to our clients’ municipal bond portfolios is extremely low. State and local governments, feeling the impact of the economic turmoil of the past few years, are currently struggling with significant budget deficits. This has […]

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Your Spouse: Family CEO-In-Waiting

Do you have a sound plan for managing your family’s financial situation if the spouse who is in charge of those issues must suddenly assume that role? If you are like most couples, one spouse tends to take the lead in managing the family’s financial life. That spouse handles most of the discussions with financial […]

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Coventry Edwards-Pitt, Covie, Raised Healthy Wealthy Wise, MarketWatch, WSJ, Wall Street Journal, Women, ,Finance, Money, Heirs, keys to success, book, social impact investing, preserving

Wealth Manager Magazine: “Deep Values”

Incorporating a family’s values into legacy plans requires advisors – and clients – to think about the real effects their strategies have on heirs. As advisors in multi-family office practices of family-focused wealth management firms, we have a unique opportunity to play a critical role in our clients’ lives. Our work allows us to both […]

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