With the recent bank failures, we have received inquiries as to the strength of the financial firms holding the assets of our clients. As a fiduciary advisor, we have maintained an arms-length approach to the selection of a client’s custodian, preferring to remain impartial and allowing the client to decide. Since there is a wide variety of options: banks, brokerage firms, discount brokerage firms, etc., there is also great variance in the quality and cost of services. We have historically suggested using Charles Schwab, TD Ameritrade, or Fidelity due to their size, low cost, service teams and independence. While clients still choose to use US Bank, Raymond James, PNC and others, with the preponderance of the assets we manage at Schwab and Fidelity, we will focus on these two custodians for this discussion. (Charles Schwab bought controlling interest in TD Ameritrade in November of 2019 and will transition accounts to Schwab by October of this year.) 

While many outlets have reported on the failures of Silicon Valley Bank and more news will continue to trickle in, it is our understanding that these episodes do not reflect the systemic risks experienced during the financial crisis of ’08-’09. The Treasury and the Federal Reserve are providing full backing for customers’ deposits in banks of all sizes. Affected customers are being made whole from a pool of emergency cash that receives its funding from a 2010-era banking legislation (Dodd-Frank) that mandated special fees on banks.

No one likes to think about falling victim to a scam or suffering a medical emergency, but the sobering truth is that these situations do occur. If this type of trouble arises, you may need someone to advocate for you or serve as your liaison. Having a trusted contact is extremely important when it pertains to the management and protection of your finances. 

Here’s how to begin the process of adding a trusted contact to your financial advisor account to prevent any disconnect.

Storing important documents, like financial statements from your financial advisor, isn’t just a matter of organization: It’s key to keeping your information safe and limiting the risk of identity theft. Here’s everything you need to know about storing important documents at home or online.

When it comes to years when both stocks and bonds see poor performance, investors may begin to wonder if it’s better to have their money in liquid assets such as cash, as opposed to investments such as bonds and stocks. In other words, is cash king? Let’s see.

When you own shares of a company, whether it’s a single share or thousands of shares, two things you must deal with are proxy voting and corporate class action lawsuits. Both are often quite tedious, but the good news is that when you work with a Carnegie advisor, we can handle them for you. Here’s everything you need to know about proxy voting, corporate class action lawsuits and how Carnegie handles them.

Trends come and go, but some don’t leave before impacting your investments first. The problem is parsing through all the trends and figuring out which will or will not impact your portfolio. Of course, long-term investing is founded on principles that go beyond merely chasing the latest trend. But that doesn’t mean ignoring trends completely. At Carnegie, we believe in striking a balance by remaining aware of trends, but not being shackled to them. With that in mind, here are five megatrends and the impact we expect them to have on the market.

All your hard work over the years has finally paid off and you’re selling your business. This is an exciting time, but it’s also full of decisions that will impact you for the rest of your life. No matter how large your payout, making it last requires planning. Here’s what you need to know to make your funds last a lifetime. 

Education savings plans were originally created in the 1980s by various states as a way for students to attain the financial means required for a college education. These plans are still implemented at a state level and are either prepaid tuition or tax-advantaged savings accounts that can be applied to qualified education expenses. 

According to the National Association of State Treasurers, more than 12 million families have saved more than $258 billion in these plans over the last 40 years.

While the primary purpose of these accounts has always been to make a college education feasible from a financial standpoint, they should also be considered a valuable estate planning tool. In light of the current tax treatment of these accounts, they may provide a flexible means for parents, grandparents or other family members to transfer assets to a younger generation.

The word fiduciary has evolved from some obscure financial terminology rarely uttered at the neighborhood cocktail party to the in-vogue standard. If your financial person doesn’t meet the standard, you might be deemed a rube.

The term fiduciary seems so commonplace that you might be tempted to take it for granted. Surely, your advisor wouldn’t stoop to anything less than being a fiduciary: a professional who always strives to work in your best interest, even after you are invested. You can check that box. Right?