Take a look at our March newsletter!
FINANCIAL SERVICES, LLC
616-514-3831
www.MattsonFinancial.com
March 2024
HOW INDEPENDENT TRUSTEES CAN SAFEGUARD YOUR LEGACY Is Your Plan in Harmony?
Several times, families want to put in place the safety net of a trust in legal documents. Generally, to run these, they choose family members because the family will be the beneficiary and someone they can trust. But the problem we’ve been seeing lately is the involved family’s ability to handle the specific task that may be outlined. What if a spouse can no longer care for their financial services, and a designated child is now in charge of those assets? What is that child’s investing philosophy? You may ask, why does it matter? Well, if that person’s in charge of the trust, they have complete autonomy to decide whether they agree with how you want your assets to be invested. What do they know? What is the history? They may have the education, but as one client recently told us, they may not have the maturity. Why do financial advisors not want to set up or suggest a trustee? The answer is simple. A trustee outside the family will remove those assets and put them in their control because that’s one of the ways they get paid. As always, when we find a hole in the planning process for our clients, we’ve got to come up with a solution. Some of our clients have asked our firm to be the trustee of their trust; however, as all of our financial advisors
are also fiduciaries, it presents a conflict of interest. Instead, we recommend naming a separate party or trustee firm to handle your trustee arrangements and work alongside us. In other firms, most of those assets are moved to another advisor when one spouse dies. Generally speaking, when both clients pass, majority of those assets are transferred outside of the advising firm. Why is this questionable? It’s because the new financial advisor or trustee does not know the history of decisions made, the history of taxes paid or to be paid, or why the clients made the decisions along the way. The answer for this is coming up in some of our future webinars and our First Friday events. We have trustees now who can be the trustee of your trust, independent of your family and our firm. Then, our firm can retain the assets. This is something entirely new to our industry. As I’m writing this now, we are developing a strategy we know all our clients need sooner than later. As we create the availability to pass on wealth, we use a statement that has always been true: “Money makes people funny.” We’ve had clients’ children who should be in charge of the assets because mom or dad left them or because they have severe
dementia problems. However, the trust is set up to declare them incompetent to handle the everyday financials and duties. So, why is it just happening? Well, because children don’t want to tell their parents and go through the process of declaring through a doctor that their parents cannot make these decisions. We learned of a son who went out and spent thousands of dollars to be able to handle the family finances for his mother when all he would have had to do was get the doctor to write one letter, and his ability to control the assets would have been assured. Sometimes, it’s not knowing the course of action you should take; other times, it’s a fear of offending a family member or loved one. A true trustee should be a neutral party in all aspects of the plan, meaning that whatever the documents state is what they will follow. We knew someone who disowned one of his children because he lent them money. Upon passing, the child he lent money to came to his other two siblings and said, “You know, I just want my share. You can take out what Dad lent me and pay me the difference.” The problem was that their dad put a poison pill in the trust. Meaning that if they gave anything
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ESG: The Present and Future of Et HOW INVESTORS RANK ETHICAL BUSINESS PRACTICES
Investment and ethics can sometimes be at odds with one another. Historically, investors haven’t prioritized the moral implications of giving money to companies with dubious business practices. Today, some people hesitate to invest in companies that compromise their values, but with ESG, they can have a clear conscience. Environmental, social, and corporate governance (ESG) is a new investment approach that gives investors a real voice. WHAT DOES ESG MEAN? E is the environmental category and refers to companies following sustainable business practices or creating products that combat climate change, deforestation, and other environmental concerns. S is for social, which emphasizes human rights and community relationships — for example, fair trade certification, which warrants that producers of a product are fairly compensated for their work. This would be absolutely necessary for investors in social-oriented organizations. G gives investors
a standard for corporate governance to ensure companies have equitable compensation for employees.
WHO DETERMINES WHAT COMPANIES ARE ESG-CONSCIOUS? Research firms like Bloomberg compile stats on a wide variety of companies to ensure investors know where they’re putting their money. Researchers look at annual reports, company structure, and other factors to determine ESG scores. They use a 1–100 scale; the higher the number, the better their ESG ranking. HOW DO I INVEST IN ESG? There are several methods to find and invest in ESG-conscious companies. Financial advisors specializing in ethical investing can lead you in the right direction, showing you companies with solid returns while following sustainable business practices.
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You may say your children wouldn’t do that. You have everything thought out. I’ve heard clients tell me that, and I’ve watched their children go to war with lawyers on both sides over fine china. Sometimes, the simplest things, not the significant money sources, come under contention. It’s the little things that mom or dad may have said they’d give to one child, and as we get older, we forget we made that mental commitment, and now we tell somebody else they’re entitled to the same items. And that’s where the conflict comes in. I believe assets should not destroy families. Instead, they should build them up and allow a blessing to be passed on. You’ve worked hard for those assets over your lifetime and guarded them throughout your retirement. Let’s not let simple written language destroy those relationships. I seriously think you should entertain the objectivity of having independent trustees and allowing the advisor, if you have that relationship, to maintain that relationship throughout your generations of family. This is why we have enhanced planning with all our client’s plans. Our goal is to get to know you, your dreams, goals, and desires and ensure your plan works through retirement. Along the way, we need
to know if your plan could be affected by your mom, dad, sister, or brother by their putting in place items you did not know. And the question we ask is: Will you have physical, financial, or emotional responsibility for them? This will affect your retirement. Lastly, when you pass on your assets to your charities and children, is it set up so they have the maximum awareness of what these assets can and will do as a tool and the ability to manage them? If there’s any thought or concern that should be addressed in such a way that puts your children or grandchildren in the best stead possible through generational wealth planning, we have that tool. We are happy to discuss it with you, your children, and your grandchildren to ensure the wealth you’ve created can continue for future generations and provide the benefits you wish it to. I encourage you to talk to your financial advisor about these and coordinate with your legal team to ensure the results you’re looking for align with your desires. –Gary Mattson
to this brother who was being penalized for his actions, they would lose their inheritance as well.
As you can imagine, the family trustee’s sibling, who was in charge of this, had to file the documents, and now, they don’t speak to each other anymore. If this were an independent trustee following the document’s directions, the family continuity would still be intact. Over my 35 years of doing this, there are several other situations where an independent trustee is the best solution. I’m not saying that for just you as my client. I’m saying that for me as well, for my family. I never want to put my children at odds with each other. So, we do our best to talk about everything we’re doing and how we’re doing our planning so everybody knows how we set this up, my wife and I, for their benefit and offer them the opportunity to respond to our information. Of course, there are the typical responses — “We raised good kids. We don’t care about it. We want it to take care of you.” Those words are good until the last shovel of dirt has been put in place of the last one standing, and then the feuds begin.
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thical Investment
April Market Commentary Release April 5, 2024 The comfort of your own home! Enjoy introductions by our Mattson team members and view this monthly content at your leisure! This will be communicated via email. Sign up online or email us at Info@mattsonfinancial.com. May In-Person First Friday Event May 3, 2024, 12–3 p.m. Lower Garden Level 3226 28th St. SE Kentwood, MI 49512 More details coming soon!
Some prefer to put their money in ESG mutual funds. Experienced brokers and managers invest for you, picking organizations that show promise in growth and ethical impact. Some focus on specific parts of ESG, especially environmental investment. ESG IS ABOUT INVESTING IN YOUR VALUES. ESG investment is a revolution in ethical investing, streamlining the process to help ethically conscious companies. But it’s not an accident: A network of research firms, funds, and brokerages work to support this new method of ethical investing. You shouldn’t have to sell your soul to make money on your investments. The bottom line is to be smart about your investments. Do your homework before making any investment decisions so you can earn the best returns in a way most compatible with your values and financial goals.
Marcus’
Chipotle-Inspired Chicken Burrito Bowl
Inspired by EasyChickenRecipes.com
TAKE A BREAK!
Ingredients
Directions
• • • • • • • •
2 boneless chicken breasts
1. Cut chicken into bite-size pieces. In a medium-size bowl, add chicken, olive oil, paprika, cumin, chili pepper, salt, and pepper. Mix until chicken is evenly coated. 2. In a skillet over medium heat, cook chicken for 7 minutes or until cooked through. Set aside on a plate. 3. In a large bowl, layer the rice, lettuce, corn, beans, and cooked chicken. 4. In a separate bowl, mix together salsa ingredients, then pour over the chicken mixture. 5. Top with avocado, sour cream, and cheddar cheese. Enjoy!
2 tbsp olive oil 1 tsp paprika
1 tsp cumin
1/2 tsp chili pepper
1/2 tsp salt
1/2 tsp pepper
1 cup white or brown rice, cooked 2 cups shredded romaine lettuce
•
• • • • •
1 cup canned corn
1 cup canned black beans
1 avocado, cubed 1/4 cup sour cream
1/4 cup shredded cheese
For Salsa •
1 tbsp chopped cilantro 1/2 tomato, chopped 1/2 onion, chopped 2 tbsp white vinegar
• • • • •
4 tbsp lime juice
Solution on Pg. 4
Salt, to taste
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PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
FINANCIAL SERVICES, LLC
106.9 FM and 1300 AM Saturdays from 10–11 a.m. Sundays from 11 a.m.—12 p.m.
3226 28th Street SE Kentwood, MI 49512
INSIDE THIS ISSUE
1
Is Your Plan in Harmony?
2
The Ins and Outs of ESG Investment
3
Chipotle-Inspired Chicken Burrito Bowl
Upcoming Events
4
Exploring Sintra, Portugal
**Reminder: If you have any changes to your financial situation, please notify us as soon as possible.
Investment advisory services offered through Mattson Financial Services, LLC, an SEC-Registered Investment Advisor. Insurance and annuities offered through Lakeview Financial Group, LLC. Mattson Financial Services, LLC and Lakeview Financial Group, LLC are affiliated companies.
THIS BEAUTIFUL CITY IS STRAIGHT OUT OF A FAIRY TALE ADD SINTRA, PORTUGAL, TO YOUR TRAVEL PLANS!
As spring break nears, you might already have plans to travel to Punta Cana, London, Key West, Paris, or a similar destination city. One more to add to your travel checklist is Sintra, Portugal. This beautiful town rests on the hills of Serra de Sintra, just outside the capital, Lisbon. The two castles within the city are the main draws, and it’s easy to see why.
Once you head back outside, the rest of the grounds are just as lovely. The enormous gardens have many trails, marked and unmarked. You can get lost in the beautiful oasis, and we encourage you to put aside at least half a day to explore the gardens. QUINTA DA REGALEIRA Quinta da Regaleira is the city’s second significant castle boasting beautiful gardens, but its main draw is the initiation well. This 80-foot- deep well is a wonder as it sinks into the earth with mossy walls. We suggest you go early, as this is another big attraction for those visiting the city, and officials try to keep people moving as they arrive, mainly as it’s one-way traffic on the steps themselves. Once on the grounds, you can explore many grottos by following their main paths. The castle itself isn’t as opulent as Pena Palace, but it’s still a lovely location to visit. Sintra is perfect for any vacation, and though these are the main draws for the city, by no means are they the only ones. We encourage you to check out this city and see if it fits your travel plans.
PENA PALACE AND GARDENS The National Pena Palace and Gardens are absolutely stunning. The palace is adorned in primary colors, with intricately carved yellow, red, and blue buildings. It’ll cost you 10 euros to explore the grounds and a couple of extra euros to go inside, but it’s worth it! The carvings include many styles, including Neo-Islamic and Neo-Renaissance. Everything is opulent, and you’ll have a great time as you take in the extravagance. Some rooms are painted as an optical illusion, with doors and hallways looking three- dimensional when they’re just flat.
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