Charles Monat Associates






PREVIOUS POSTS Are Hedge Funds Really Non-Correlated? Peace and Happiness Picking a Trustee, Family or Banker? US Planning: Eight Steps To Protect Your Family Estate Mistakes: Where Heath Ledger And Princess D... Why Life Policies Will Help Preserve Wealth Odd Haavik interview on CNBC Nov 6 Leading economies blamed for fiscal secrecy Tax spat freezes Italian-Swiss talks Odd Haavik interview on CNBC Oct 21 ARCHIVES April 2005 July 2005 August 2005 September 2005 October 2005 November 2005 December 2005 January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 October 2006 November 2006 August 2007 September 2007 October 2007 November 2007 February 2008 October 2008 March 2009 April 2009 May 2009 June 2009 July 2009 October 2009 November 2009 December 2009 January 2010
	Wednesday, January 27, 2010 Are Hedge Funds Really Non-Correlated? In this segment of Preserve Your Wealth I comment on the downgrade of Japan's debt by S&P as a warning sign that real economic reform is expected by global investors, but caution that 90% of Japan's debt is held in domestic, private hands and a dramatic impact of this downgrade is unlikely. I also make the point that when investors are looking for true, zero-correlated assets, they should look to life policies before hedge funds. True zero-correlation can only be found in assets with no positive or negative correlation to asset classes, whereas a hedge is typically structured to have negative correlation, i.e. to have an exact, inverse payoff-profile to the asset or risk we wish to hedge. Zero correlation smooths returns and adds an element of certainty in an otherwise highly uncertain world. posted by Charles Monat Associates at 2:18 PM \| 0 comments Thursday, December 17, 2009 Peace and Happiness As we enter the Season of Peace & Joy, we would like to take the opportunity to make, in our last blog post of 2009, a wish that Peace and Happiness will find a permanent place among us this Season and in the year to come. As in the classic Norman Rockwell illustration, may we all find our way safely home to the love and acceptance that define who we are. All of us in the CMA family wish you and your family Peace and Happiness during the Festive Season and we look forward to welcoming the challenges and opportunities of 2010 together. posted by Charles Monat Associates at 3:12 PM \| 0 comments Tuesday, December 08, 2009 Picking a Trustee, Family or Banker? Traditionally, most people have appointed family members, rather than bankers, to watch over the assets in their estates. But the turmoil in the the economy over the past 14 months has highlighted just how onerous the job of trustee can be. Not only are trustees charged with making sure assets are invested wisely; they also must be able to evaluate requests for distributions of cash to beneficiaries. In hard times like these, those requests can be both frequent and extremely touchy. Read more... posted by Charles Monat Associates at 12:03 PM \| 0 comments Monday, November 30, 2009 US Planning: Eight Steps To Protect Your Family With Congress likely to delay until next year a decision on the future of the estate tax, it's tempting to put off your own planning chores. Tempting, but risky. Assuming the current federal estate tax exemption of $3.5 million per person is eventually extended, few families need to worry about the federal tax. Yet a great many could end up in turmoil if other basic planning isn't done. Read more... posted by Charles Monat Associates at 1:20 PM \| 0 comments Estate Mistakes: Where Heath Ledger And Princess Di Went Wrong What do Princess Di, Marlon Brando, Heath Ledger, Jimi Hendrix and former Supreme Court Justice Warren Burger have in common? They all flubbed their estate planning, costing intended heirs money and/or grief, according to a readable (really) estate planning how-to book, Trial & Heirs. The new book uses these celebrity cliffhanger cases to dish out real-life advice. Read more... posted by Charles Monat Associates at 1:19 PM \| 0 comments Tuesday, November 24, 2009 Why Life Policies Will Help Preserve Wealth Premium life insurance policies have bond-like, returns, says Odd Haavik, MD & CEO of Charles Monat Associates, Singapore. He tells CNBC's Oriel Morrison that insurance is a good buffer against market volatility. posted by Charles Monat Associates at 4:14 PM \| 0 comments Friday, November 06, 2009 Odd Haavik interview on CNBC Nov 6 With Martin Soong discussing the Taikang Life deal and the outlook for the insurance market in China and Asia in general. posted by Charles Monat Associates at 6:28 PM \| 0 comments Tuesday, November 03, 2009 Leading economies blamed for fiscal secrecy Leading economic centres including the US, UK and Singapore are among the countries most to blame for promoting international financial secrecy, according to a new index comparing the harm allegedly done by tax havens and rich nations. The league table to be published on Monday by the Tax Justice Network, a respected campaign group, is led by the US state of Delaware and includes Luxembourg, Switzerland and Hong Kong in its top 10. Read more... posted by Charles Monat Associates at 9:28 AM \| 0 comments Tax spat freezes Italian-Swiss talks Switzerland on Sunday said it was freezing talks with Rome on a double taxation treaty in retaliation against a heavy-handed Italian crackdown on tax evasion. “The agreement was ready to be signed on our side,” said Hans-Rudolf Merz, finance minister and head of state this year under Switzerland’s rotating presidency. Read more... posted by Charles Monat Associates at 9:27 AM \| 0 comments Thursday, October 22, 2009 Odd Haavik interview on CNBC Oct 21 We argue that now is the time to take money off the table in anticipation of a market consolidation towards the end of the year. A very conservative strategy at this point would be to channel some of the current liquidity into fixed-income strategies within general account life policies, getting a reasonable yield whilst, at the same time, ensuring sufficient liquidity. Life policies are a near perfect zero-correlation asset class and can go a long way towards mitigating portfolio volatility. posted by Charles Monat Associates at 9:18 AM \| 0 comments Tuesday, July 21, 2009 Singapore signs up to more information exchange Singapore has announced its second tax information agreement in a week. The protocol with Belgium, signed yesterday, follows the announcement on Tuesday that the government will sign an agreement to share information with France before the end of the year. Under the new agreement, Singapore and Belgium will exchange information for tax matters on request, including information that may be held by a bank or trust company. Singapore remains on the OECD's grey list of jurisdictions that have committed to the internationally agreed tax standard, but have not yet substantially implemented it. The government will need to sign 12 information exchange agreements before it makes the Organisation's white list. The agreement with Belgium is Singapore's first TIEA. Read more... posted by Charles Monat Associates at 9:09 AM \| 0 comments Wednesday, July 01, 2009 2009 World Wealth Report While World Wealth and High Net Worth Population shrink below 2005 levels, overall HNWI wealth expected to grow at annual rate of 8.1% by 2013. Download report (registration needed)... posted by Charles Monat Associates at 2:50 PM \| 0 comments Transparency is the New Gold Standard: U.S. Wealth Managers Must Redefine Role to Regain Trust in Current Environment, Says PricewaterhouseCoopers PricewaterhouseCoopers' report, entitled "A New Era: Redefining the Way to Deliver Trusted Advice," identifies significant changes affecting wealth managers, how they are responding with changes in their business and what senior private bankers and wealth managers see happening in the industry in the future. The report also looks at the qualitative impacts of the financial crisis over the first quarter of 2009. Based on survey responses from nearly 240 private banks and wealth managers, this year's report is the latest installment in a global survey first conducted in 1993. Read more... posted by Charles Monat Associates at 2:46 PM \| 0 comments Thursday, June 25, 2009 Insurance Industry's Reputation Intact Mr. Monat with Martin Soong on CNBC's Protect Your Wealth. posted by Charles Monat Associates at 12:23 PM \| 0 comments Wednesday, June 24, 2009 GETTING PERSONAL: Think Twice Before Buying Children A Home NEW YORK (Dow Jones)--Low interest rates and depressed real estate prices have affluent parents asking their financial advisers if buying their children a house could accomplish a one-two punch of moving assets out of their estate while snagging a good deal on property. The answer is, not exactly. Read more... posted by Charles Monat Associates at 10:03 AM \| 0 comments Canadian Life Insurers Assurance Facility launched On May 22, 2009, the Minister of Finance announced the launch of the Canadian Life Insurers Assurance Facility (CLIAF), which is intended to assist life insurance companies in accessing debt markets on competitive terms by insuring their wholesale term borrowing. The CLIAF is a component of Canada's implementation of the G7 Plan of Action to stabilize financial markets and support global economic growth. Life insurance companies regulated by the Office of the Superintendent of Financial Institutions are eligible to participate in the CLIAF, as are, with the Minister's approval, fraternal benefit societies and provincially regulated life insurers. Instruments eligible to be guaranteed under the CLIAF include newly-issued commercial paper, bearer notes and senior unsecured bonds and notes in which the underlying debt has been issued by a related entity. Other new senior unsecured marketable wholesale instruments may be eligible subject to the Minister's approval. Eligibility for the CLIAF requires a minimum issuance size of $1 million for Canadian-denominated issuances and $10 million for foreign-denominated issuances. Further, instruments must have a minimum term of three months from the date of issuance and the guarantee will apply for a maximum of three years. Read more... posted by Charles Monat Associates at 9:52 AM \| 0 comments Monday, June 15, 2009 Mr. Monat on SCMP TV posted by Charles Monat Associates at 11:40 AM \| 0 comments Tuesday, June 02, 2009 Australia: ATO Targets Trusts In Tax Crackdown This was the headline for the main story in the Australian Financial Review on Monday 18 May 2009. The article was triggered as a result of the issue by the ATO of a draft Practice Statement (DPS) in relation to the determination and taxation of trust income. The approach suggested in the draft Practice Statement is not as draconian as suggested in the Financial Review article, but it does reflect a significant change in approach by the ATO. Go to Mondaq.com for full story. posted by Charles Monat Associates at 8:52 AM \| 0 comments UK - Tax planning: Information is the key to estate planning Estate planning to reduce inheritance tax bills requires a wealth of information on the clients and their assets to take full advantage of all the reliefs available, writes Jeremy Pearson of Canada Life. Read more... posted by Charles Monat Associates at 8:51 AM \| 0 comments Wednesday, May 27, 2009 Tax threat to traded life funds The US Internal Revenue Service has ruled that a 30 per cent withholding tax should be applied to profits derived from matured “stranger owned” life insurance policies, ie the second-hand policies that form the assets of the fast-growing life settlement fund industry. Read more... posted by Charles Monat Associates at 10:33 AM \| 0 comments Wednesday, May 13, 2009 Odd Haavik on Preserving Your Wealth on CNBC An appearance this morning on CNBC's 'Protect Your Wealth' with Martin Soong. The discussion ranged from what distinguishes Wealth Transfer Planning Consultants from Private Bankers and Family Offices to what proactive steps clients can take, today, to ensure a successful inter generational estate transfer. posted by Charles Monat Associates at 3:44 PM \| 0 comments Monday, May 11, 2009 Charles Monat restructures in line with fair dealing guidelines Charles Monat Associates, a provider of wealth transfer and liquidity planning solutions to high-net-worth clients, has changed its organisational structure to support the guidelines on fair dealing for financial institutions recently released by the Monetary Authority of Singapore (MAS). Read more... posted by Charles Monat Associates at 2:31 PM \| 0 comments Friday, May 08, 2009 The Sales Profession: Attention Must Still Be Paid ASIDE from some gardening and baby-sitting in my neighborhood when I was a child, my first summer job was in the summer of 1962, just before my first year of college. It was at Shoe Giant, a large discount shoe store in Langley Park, in Prince George’s County of Maryland, and I got the job thanks to a high school pal who also worked there. Read more... posted by Charles Monat Associates at 2:42 PM \| 0 comments Sun Life Financial reports Q1 results Sun Life Financial Inc. (TSX/NYSE: SLF) reported a net operating loss of C$186MM for the first quarter of 2009. MCCSR ratio is at a healthy 223% and the risk based capital ratio for Sun Life Assurance Company of Canada (US) is at 357%. www.sunlife.com SLFQ1.pdf posted by Charles Monat Associates at 10:53 AM \| 0 comments Friday, April 03, 2009 Three Generations of Family Entrepreneurship, Conflict, Transitions and Connection From Swords to Ploughshares Harry McNeely Sr started a storage and transport company with his brother-in-law in 1916. Whereas his sons, Don & Harry Jr, were taken into the company, Harry Sr made provision for his two daughters to be financially independent but gave them no stake in the family business. After his death, the daughters contested the will and were made minority shareholders, but not before the family had endured the largest court ordered business liquidation in Minnesota's history. Interesting case study from INSEAD posted by Charles Monat Associates at 9:42 AM \| 0 comments Friday, March 20, 2009 NASDAQ Insurance Index The NASDAQ Insurance index continues its recovery and is now close to flat on a 5-year horizon. Review chart posted by Charles Monat Associates at 3:07 PM \| 0 comments Thursday, March 19, 2009 Mr. Monat with Bernie Lo on Bloomberg Mr. Monat appears on Bernie Lo's show together with Dr. Marc Faber. posted by Charles Monat Associates at 3:48 PM \| 0 comments Tuesday, March 10, 2009 Singapore vows to relax tough bank secrecy laws Singapore's finance ministry said it would amend its bank secrecy laws in mid-2009 to take account of the OECD's standards on exchange of information. "Once the legislative amendments are passed in parliament, Singapore is prepared to negotiate and conclude double taxation agreements that will enable us to provide further assistance for exchange of information." Read more... posted by Charles Monat Associates at 11:48 AM \| 0 comments Monday, March 02, 2009 U.S. Is Said to Offer $30 Billion More to Help A.I.G. The federal government agreed Sunday night to provide an additional $30 billion in taxpayer money to the American International Group and loosen the terms of its huge loan to the insurer, which is preparing to report a $62 billion loss on Monday, the biggest quarterly loss in history, people involved in the discussions said. Read more... posted by Charles Monat Associates at 10:58 AM \| 0 comments Friday, October 17, 2008 Mr. Monat interviewed on CNBC regarding the state of the insurance market posted by Charles Monat Associates at 1:15 PM \| 0 comments Friday, February 15, 2008 Singapore Abolishes Estate Duty Part II The full text of Minister for Finance and Education Tharman Shanmugaratnam's budget speech can be found on www.singaporebudget.gov.sg. We quote from the paragraph announcing the removal of Estate Duty: 4.76 I have therefore decided to remove Estate Duty from our tax regime, with effect from today. It is not just a practical or expedient measure, but one that on balance will be in our collective interest. If we make Singapore an attractive place for wealth to be invested and built up, whether by Singaporeans or foreigners who bring their assets here, it will benefit our whole economy and society, not just the individuals who build up their wealth. It is not a zero sum game. Read the Estate Duty part of Minister Shanmugaratnam's speech posted by Charles Monat Associates at 5:23 PM \| 1 comments Singapore Abolishes Estate Duty SINGAPORE, Feb 15 (Reuters) - Singapore said on Friday it will keep income tax unchanged, a surprise move that leaves the top personal rate at 20 percent, and said the small city-state could not insulate itself from global inflation. "We will not be making any further move on personal income tax this year," Finance Minister Tharman Shanmugaratnam told parliament in the presentation of his budget for the fiscal year beginning in April 2008. Read more... posted by Charles Monat Associates at 5:19 PM \| 0 comments Friday, February 01, 2008 UK Non-residents and non-domiciliaries – the draft new rules The new rules for taxing UK resident non-domiciled individuals and for calculating periods of UK residence have finally been released (in draft) more than three months after their announcement in the Pre-Budget Report. The proposed provisions are even broader and more draconian than was anticipated and, to the extent that planning to mitigate their effects is possible, there is little more than two months available to do so. In context, however, there continue to be significant benefits for UK resident non-domiciliaries for inheritance tax purposes, and in respect of untaxed remittances to the UK. The linked PDF outlines some of the more salient points and is used with the premission of Lawrence Graham LLP. LG%20Tax%20%26%20Private%20Capital%20notes%20-%20January%202008.pdf posted by Charles Monat Associates at 4:05 PM \| 3 comments Monday, November 26, 2007 The business of families Families have certain dynamics -- complex, fluid and emotional -- while businesses have very different ones. So what happens when the two combine? Read more... posted by Charles Monat Associates at 11:01 AM \| 0 comments Use a will or a trust in estate planning? Many people are confused about whether to use a will or a trust in estate planning. Each has its advantages and disadvantages. A will is a legal and binding contract that allows you to name a personal representative to administer your affairs upon your death. You can name a guardian for any minor children, provide for special needs for children or a spouse and leave instructions for the distribution of your assets. In the will, you can leave property to someone who would not otherwise inherit under the state’s intestacy law — if you passed without a will. You can disinherit someone via your will, except for your spouse unless the spouse agrees to not receiving the inheritance. Read more... posted by Charles Monat Associates at 10:55 AM \| 0 comments Friday, November 16, 2007 Therapists Tackle Emotional Burden of Being Rich For ultra-rich clients, financial-advisory firms provide all kinds of specialists. There are wealth planning specialists, risk management specialists, insurance specialists, trust specialists, and so on. Firms are starting to recognize, however, that this array of specialists isn't qualified for the more emotional — and sometimes darker — side of big bucks. Read more... posted by Charles Monat Associates at 9:46 AM \| 0 comments A Defective But Useful Trust The sunset provision that was built into the gradual repeal of the estate tax is beginning to loom on the horizon, and wealthy taxpayers are doing everything possible to reduce their taxable estates before the provision takes effect in 2011. Read more... posted by Charles Monat Associates at 9:44 AM \| 0 comments Buffett Backs Estate Tax Berkshire-Hathaway chairman Warren Buffett showed his support for the estate tax Wednesday, testifying before the Senate Committee on Finance that the so-called “death tax” is actually a “death present,” and to repeal it would be another step in the road to an American aristocracy. Referencing the ever-widening income gap and the enormous increase in wealth of the richest Americans, the billionaire Buffett stated that ``A meaningful estate tax is needed to prevent our democracy from becoming a dynastic plutocracy.'' Read more... posted by Charles Monat Associates at 9:39 AM \| 0 comments The Role of Advisors in Charitable Planning and Decision Making A very interesting survey from Registered Rep magazine, sponsored by Schwab Charitable shows increased opportunities for Charitable Planning conversations with clients. Schwab_whitepaper.pdf posted by Charles Monat Associates at 9:31 AM \| 0 comments Lloyd Blankfein and Ken Moelis on Wall Street Risks, Rewards and Opportunities When Merrill Lynch reported solid second-quarter earnings last July, chairman and CEO Stan O'Neal sent employees a memo boasting about the firm's risk management prowess. Only three months later, Merrill Lynch took its historic $8.4 billion write-down for losses in mortgage-related securities, with Citigroup and others soon reporting unprecedented credit losses as well. O'Neal and Citigroup chairman and CEO Charles Prince were both ousted from their jobs. Read more... posted by Charles Monat Associates at 9:27 AM \| 0 comments Monday, November 12, 2007 Hong Kong’s millionaires stay ahead of those in Singapore Hong Kong will continue to stay ahead of Singapore in terms of its number of millionaires and the assets they hold, according to a recent report by London-based market research firm Datamonitor. The number of Hong Kong millionaires will increase by 8.8% annually to 83,000 in 2011 from 51,000 in 2006. In Singapore, that number will increase by 7.3% annually to 29,000 millionaires in 2011 from 19,000 in 2006. Read more... posted by Charles Monat Associates at 9:05 AM \| 0 comments Wednesday, November 07, 2007 Norway's oil fund to grow to $600 bln Norway's oil fund, which invests the country's oil wealth, is expected to grow to $600 billion in four to five years from $350 billion currently, central bank governor Svein Gjedrem said on Tuesday. Read more... posted by Charles Monat Associates at 1:10 PM \| 0 comments Now flush, Norway turns tables on Sweden Long a poor cousin in Scandinavia, Norway has surpassed Sweden to become one of the richest countries in the world and a magnet for young Swedes ready to work hard to make a quick - and rather big - buck. Read more... posted by Charles Monat Associates at 1:08 PM \| 0 comments Succession Planning: Readers and Experts Talk The Oct. 22 Small Business Link looked at ways small companies had planned for a change in management at the top. We asked Tim Berry, founder and president of Palo Alto Software Inc. in Eugene, Ore., and Andrea Fetterman, director of corporate-image consulting at City Apparel, an offshoot of uniform and dry-cleaning business Kramer Enterprises Inc., in Findlay, Ohio, to be guest moderators on a reader forum on WSJ.com about succession planning. Read more... posted by Charles Monat Associates at 12:58 PM \| 0 comments Tax changes likely for estates If you have assets of more than $1 million, the cost of not planning will come in the form of potentially higher taxes if you die after 2010. That's when the current estate tax exemption (the amount that's not subject to tax) of $2 million in assets expires and reverts to the 2001 exemption of $1 million. The higher exemption was the result of President Bush's tax cut plan, which expires in 2010. Read more... posted by Charles Monat Associates at 12:52 PM \| 0 comments How to Handle Beneficiary Designations The decision about how to designate beneficiaries for your company retirement plan, life insurance policies, and other assets might seem like a no-brainer. Chances are you would like those near and dear to you to inherit any money you've accumulated during your lifetime, so making sure that happens should be as simple as writing their names on the appropriate forms, right? Read more... posted by Charles Monat Associates at 12:50 PM \| 0 comments Retirement planning: Key points you must know The younger generation has fancy ideas about retirement. Many dream of retiring early, and then pursuing their hobbies or passions, or seeing the world extensively. Whether you subscribe to this view or whether you have the more traditional view of retirement, i.e. retire at 60, plan the occasional pilgrimage and devote time to reading or spirituality, it helps plan well and in advance. Read more... posted by Charles Monat Associates at 12:49 PM \| 0 comments
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