I thought the title to this month’s newsletter article appropriate mostly because we are all thinking it after a challenging 2020. We just finished up our annual strategic planning process which culminates with our Advance and company-wide Strategic Planning meeting. And, we have a lot to look forward to in 2021. Our Advance is an […]

We are quickly approaching the end of 2020, and like most, frantically preparing for a season filled with friends, family, and festivities. This year might have a different twist, but the preparation likely remains the same. Like most Michiganders, it’s that time of year where we confirm our Amazon accounts are set-up for two-day shipping […]

The gift of a remainder interest in a personal residence or a farm to a charity entitles the donor to an immediate charitable income tax deduction which can be used of off-set taxable income, or keep the donor in a marginally lower income tax bracket. The Tax Code regulates the form and type of charitable […]

Late last year, the Setting Every Community Up for Retirement Enhancement (SECURE) Act made significant improvements in the U.S. retirement system. Along with certain provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in early 2020, we have welcomed many retirement plan legislative changes over the last 12 months. But it’s election time, […]

Consider these statistics from the recently released U.S. Census Bureau Household Pulse survey conducted in collaboration with multiple federal agencies. Data was collected between mid-August and mid-October: Nearly 37% of households have at least one adult that has substituted some or all of their typical in-person work for telework because of the coronavirus pandemic. Working […]

Throughout Greenleaf Trust’s history, we have been privileged to serve clients who not only have high standards for financial and investment advice, but that also have strong personal commitments to their values and their communities. Historically, many of our clients did not view their purchasing and investing decisions as a primary means of expressing their […]

President Trump and Vice President Biden have provided some direction on what changes they would like to see in the funding of Social Security, but they have largely avoided any substantive proposals. Regardless of which one is president come November, funding of the social program will need to be addressed. The issues surrounding Social Security, […]

“2020 marks the 100th anniversary of women’s right to vote in the U.S.,” says Catherine Collinson, president and CEO of the Transamerica Institute and the Transamerica Center for Retirement Studies. “Since then, women have made great strides in educational achievement and career opportunities. Despite this progress, they continue to be at greater risk than men […]

Given the growing needs of charitable organizations during this global health crisis, 2020 may present compelling planning opportunities to make immediate gifts of cash at a time when they are sorely needed. With the recently-enacted CARES Act, individuals may receive increased income tax benefits while helping charitable organizations. The CARES Act allows individuals who itemize […]

I am happy to provide just a brief introduction to this article from our Executive Director of Development, Perry Wolfe, on investing in our communities. Rather than hear it from me, though, I wanted you to hear how important it is to Greenleaf Trust directly from him as he helps lead one of our community […]

COVID-19 has taken a lot from us; travel, impromptu in-person visits with family and friends and freedom to go to a concert, movie theatre or ball game with nary a thought. It has also made many of us anxious and fearful about today and our future and that of our families. While we are getting […]

It was the summer of 1985, and I had just graduated from high school. My Dad and I were headed to Cedar Point. We hadn’t been in years and this would be our last father daughter outing before I headed off to college. I couldn’t wait! I bragged to my friends that the first thing […]

Parents will often add an adult child’s name to their bank accounts, home, and other assets, believing it will make it easier for the child to help them manage their finances and their property as they grow older. While this “do-it-yourself” approach is fairly common among aging parents, the truth is that adding your child’s […]

Many estate plans make use of a list that identifies items of tangible personal property that are to be allocated among designated beneficiaries on the owner’s death. The list is usually incorporated by reference into a Will or a Trust, such as: I may leave a list that is attached to this Will, and if […]

The internet is an amazing tool. It has provided us near instant access to a wealth of information at our fingertips. Not to mention, helping us to stay connected remotely during these unusual times. However, as more and more individuals do their banking, bill paying, shopping, etc., online, it also opens us up to greater […]

The notion of a “traditional” family has certainly changed over time. The days of “Leave it to Beaver” are becoming less and less common. In fact, today, only about 35% of American families are comprised of a traditional heterosexual married couple with children. Apart from 35% that are labeled “traditional,” 31% are childless families and […]

As we continue to navigate through these uncertain times, filled with new challenges and concerns, having a dynamic wealth management relationship with a professional advisor has never been more important. A good financial plan should cover every facet of financial planning including life insurance, which can be an important and foundational element to financial wellbeing. […]

In 1996, Fed Chairman Alan Greenspan famously coined the phrase “irrational exuberance” during his speech at the American Enterprise Institute. Chairman Greenspan attempted to warn of highly elevated market valuations, particularly across much of the technology sector. Investors not only ignored his warning, but also drove the NASDAQ up another 300% before peaking on March […]

I recently read an interesting article titled Microsoft Analyzed Data On Its Newly Remote Workforce in Harvard Business Review. The article described what Microsoft learned over the last four months when they studied how flexible and adaptable their work might or might not be, how collaboration and networks morph in remote settings, what agility looks […]

While IRAs are common, flexible vehicles for retirement savings and great planning tools, the beneficiary distribution rules are complicated, and became even more so with the passage of the SECURE Act in December. IRAs often represent a significant portion of a person’s investment portfolio; naming the beneficiary or beneficiaries is an important decision and worthy […]

You have your favorite charities and you know the areas of the community on which you wish to make an impact, but in times of crisis and emergency are you ready to pivot and provide support to those most affected by the crisis? Have you thought about whether or not you would want to pivot? […]

Since 2002, plan sponsors have been able to electronically furnish plan information and notices in relation to qualified retirement plans; however, electronic distribution was only allowable if the employee gave consent to agree to receive electronic communications. Also, if an employer determined electronic distribution was allowable on the basis of all employees having access to […]

A donor advised fund is, in effect, a charitable savings account. A donor advised fund permits an individual donor to make a donation without choosing a specific charity at the time the gift. The transfer of cash or assets to the donor advised fund sponsor permits the donor to claim an immediate income tax charitable […]

As you have heard from our founder and Chairman, William D. Johnston, making progress on elimination of institutional racism is indeed hard work and Greenleaf Trust in values, mission and deed is committed to that essential progress. There cannot be any distance between the values we express and our actions as a collective company. We […]

As the world begins to re-open and re-define what it looks like to return to some sense of “normal,” there are many factors to consider. From a federal, state and local level, information is rampant and quickly changing to mitigate the spread of COVID-19. One thing has remained the same throughout, a focus on keeping […]

After reaching a high on February 19, COVID-19 and the decline in oil prices drove selling pressure on the Standard & Poor’s 500, leading to a 34% decline by March 23. Actions taken by the Federal Reserve Board and spending programs by the federal government have helped this equity market index climb by almost 36% […]

Given the current state of our environment, many estate plans have been accelerated, which could include creating and transferring assets into an irrevocable trust to benefit family members. For several reasons, grantors may worry about beneficiaries becoming aware of a trust. Delaware may be a venue to alleviate grantors’ fears. Traditionally, when someone is interested […]

Financial wellness, and the need for employee financial wellness programs, has increasingly gained attention in the past decade. Pre-COVID-19, offering a financial wellness program to employees was considered a value-added benefit, but the coronavirus pandemic suggests it is now an urgent necessity with a major emphasis on emergency savings. Simply put, financial wellness is the […]

A durable power of attorney is an important part of any estate plan. With a durable power of attorney, an attorney-in-fact (agent) can manage an individual’s (principal) financial affairs without the need for a probate court appointed conservator when the principal is either unable, or incapable, of making decisions. While a durable power of attorney […]

Undoubtedly, we have each endured a moment of fear over the last couple of months. Whether it be watching over your children, allowing your teen to take your car for the first time, worrying about catching a virus with no certain cure, or trying to keep your small business afloat during a pandemic; we want […]

Recently, investors have faced unprecedented times as the impact of COVID-19 on the economy continues. After a strong decade for US equity markets, it comes as no surprise that the market’s recent drop and continued volatility is unnerving and downright scary for many. Nevertheless, a key concept to investing in a retirement plan is to […]

The recent coronavirus pandemic has brought nursing homes in the into the spotlight for the many challenges that the elderly face. Given medical advances, people in general are living longer and their families are tasked with the responsibility of providing the best care options for them. And yet, the discussion about how to pay for […]

One of the habits developed over four decades as an attorney was to skim the ‘legal notices’ section in the morning newspaper. While I no longer practice law, out of that habit I still look at the published legal notices. One that caught my eye a couple of weeks ago was a legal notice where […]

With the uncertainty that the pandemic has brought to our current situation, many individuals have taken the time to review their estate planning documents and determined that they need to make some changes. The challenge that has presented itself during these trying times is that people have determined that they want to make changes to […]

It is my pleasure to introduce Perry Wolfe, who joined the Greenleaf Trust team in January as senior vice president, executive director of development. In collaboration with our business development and marketing teams, Perry will lead the strategy and growth for markets outside of Kalamazoo. The timing of Perry’s arrival is fortuitous given the challenges […]

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES) was signed into law. In addition to numerous financial incentives provided to individuals and business, the CARES Act provides some major retirement plan changes allowing plan participants access to their retirement savings as a financial resource in this time of crisis. Employers […]

If you are like most, you’re experiencing quite a bit of anxiety right now as we grapple with a pandemic health crisis. The human, economic and market fallout are unnerving. Unfortunately, we know the headlines will get worse before they get better. Confirmed COVID-19 cases will grow exponentially, and dismal economic data resulting from the […]

The world suddenly changed with the COVID-19 pandemic. We have all had to learn a new skill called social distancing. Millions now work from their homes. Isolation is the new mainstream lifestyle, albeit not by choice. Consequently, any discussion about estate planning seems pretty superfluous in this time of crisis. However, if an individual is […]

With all the market volatility lately, it is a little surprising that investors are concerned about the most stable part of their portfolios, their money market funds. We believe the concern has been driven by (1) a lack of knowledge about money market reforms instituted after the financial crisis, and (2) headlines in the financial […]

Each year, starting in September, we purposely engage our entire company in discussion about our long-term strategic plan. Specifically, we ask and answer the question – what do we need to do next year to take one step forward in being top of mind? Because our culture is so important to us, each year it […]

Conspiracy theorists seem to lurk around every corner these days, imparting their less-than-logic-backed views and offering little evidence. The complex world of finance and managed assets provides ample opportunity for cynics and simpletons alike to assert similar claims — that institutions have rigged the system against them — often crying speculatively, “my broker makes more […]

When it comes to retirement savings, most people know the basic principle: one should strive to save as much as they can, as early as they can. In addition, a high level of importance is placed on selecting the right combination of investments based on risk tolerance to assist in reaching one’s retirement income goals. […]

We have had a couple of months now to digest the implications of the SECURE Act and its end to the stretch distribution rule that benefited most individuals who inherit an IRA or 401(k) retirement account on the owner’s death. Rather than permit an individual designated beneficiary to take distributions from the inherited retirement account […]

Late last year, the Securities and Exchange Commission (SEC) attracted a lot of public attention when it issued a proposal to update the definition of an accredited investor. The definition relates to who can, and who cannot, invest in private, or unregistered, investment offerings. Registered securities, like publicly-traded stocks and bonds, mutual funds, and ETFs […]

In the spirit of continuous improvement, each year we set out to identify ways that Greenleaf Trust could have an even greater impact on the communities in which we live and work. Our team currently serves on numerous non-profit and not-for-profit boards, partners financially with community impact firms through giving and fundraising efforts, and collectively […]

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Over the past 12 months, I have read many articles on the topic of CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) technology, and its potential medical uses. This subject is of particular interest because it is a developing genome editing technology that is controversial but yet shows great promise to treat cancers and other diseases. […]

The Setting Every Community Up for Retirement Enhancement Act, or SECURE Act, was officially approved by the Senate and signed by President Trump during the final weeks of 2019. While much has been written, discussed and debated about the merits of the new Act, it includes significant provisions that improve access to retirement accounts, prevent […]

Being recognized for something that you believe in and work hard at is meaningful. We work hard at helping our clients achieve their goals, and along the way exceeding their expectations. In order to do this, we need a talented, highly engaged team. Which means we also work hard at attracting the best of the […]

The Setting Every Community Up for Retirement Enhancement (SECURE) Act was enacted late last year with a January 1, 2020 effective date. It has been publicized as the most significant piece of legislation affecting the US retirement system in more than a decade, and will inevitably affect a majority of Americans saving for retirement. The […]

A durable power of attorney for health care, sometimes called an advance directive, is an important instrument that assures patient autonomy and ensures that a patient’s wishes with regard to their health care decisions and treatment will be followed. Overlooked, and sometimes misunderstood, is the right of autonomy of medical providers not to provide treatments […]

A significant amount of time is spent with clients focusing on their current wealth plan and discussing strategies for passing wealth to the next generations. Often, the more challenging conversations center on identifying clients’ qualitative goals for passing family values over generations and keeping the family together after the oldest generation dies. Our Senior Trust […]

The Social Security Administration (SSA) announced cost-of-living adjustments to the maximum amount of earnings that are subject to the Social Security tax, as well as a 1.6% increase to monthly Social Security and Supplemental Security Income benefits. This is good news for the nearly 69 million Americans receiving benefits, though this is a modest number […]

Welcome to 2020 and the start of a new decade! As I sit at my desk writing my first article of the new year, the Kalamazoo office of Greenleaf Trust is relatively quiet. The hustle and bustle of wrapping up end of year matters ahead of year end deadlines has been replaced with a more […]

December is a busy time of year…holiday parties, shopping for gifts, and family gatherings. It is also a busy time of year for charitable giving. In fact, approximately one-third of charitable gifts occur in the month of December. As an advisor, it is very enjoyable to see the generosity of clients in support of charitable […]

Some estate planning or wealth transfer strategies work well in a low interest rate environment, like the one we are in now, while others are more effective when rates are higher. It may be advantageous to implement those strategies that are most effective in a low interest rate environment now while preparing to implement other […]

The term fiduciary is used regularly in communications, but seldom do individuals actually know what it means to be a fiduciary. Often fiduciary refers to the role in which one serves another, such as the personal representative of an estate, a funeral representative, a conservator, a guardian, or the trustee of a trust. A deeper […]

It’s hard to believe that 2019 is almost over. Time sure does fly, and it seems even more so for me considering the late submission of this article. I ask forgiveness from our newsletter editor as it has been a busy year for Greenleaf Trust. By many measures, this has been a successful year for […]

It’s hard to believe, but the end of 2019 is quickly approaching. For most Americans, the season is filled with time with family and friends, last minute online orders with the hope Amazon’s two day delivery doesn’t fail you now, and for those lucky enough to call Michigan home, dusting off the snow blower for […]

A common question I get asked by clients and prospects is, “How do I avoid probate?” Probate is the process that a state uses to settle the estate of a deceased person, referred to as the decedent. One of the main objections many people have with the probate process is that it often violates their […]

As the last vestiges of summer quickly fade, people throughout the region begin turning their attention to winter activities and the impending holiday season. Accompanying every change in seasons is a unique set of to-do items, and one such activity that Greenleaf Trust advisors actively anticipate this time of year is the emergence of annual […]

We believe diverse, critical thoughts and candid discussions are necessary components of the decision making process. Decisions at Greenleaf Trust are made with these components, especially when it comes to strategic decisions. And since the focal point of our strategic planning process is our Advance, diverse critical thoughts and candid discussions are required. Our Advance […]

We could not be more proud that the Greenleaf Trust Scholarship at the Haworth College of Business envisioned by our founder and Chairman, William D. Johnston, is turning twenty years old. We are so excited that we celebrated with cake at our annual reception honoring current and past scholarship recipients. The Greenleaf Trust Scholarship awards […]

It is your wealth and you should be able to leave it to whomever you want on your death and in whatever fashion you consider appropriate. Most individuals intend that the purpose of their wealth, often transmitted by a trust, is to enhance the lives of their trust’s beneficiaries. Estate planning, however, focuses on when […]

The long-term impact on philanthropy of the Tax Cuts and Jobs Act of 2017 remains unclear. While lower income taxes and eased income tax administration would seem to be desirable ends, one area that has raised concern is the effect these changes have on charitable giving, and the services that charities will be able to […]

Comprehensive and insightful retirement planning advice will typically encourage you to fund an emergency savings account, maximize your annual contribution to your workplace 401(k), collect your employer’s match, contribute to a health savings account and fund a Roth IRA if you’re eligible. Once you’ve maximized your allowable contributions to these accounts, saving in an after-tax […]

In a 1789 letter, Benjamin Franklin wrote, “our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” It makes one wonder if Mr. Franklin could have imagined the varied tax rates that would apply over the coming […]

There are countless statistics proving that Americans have not traditionally saved enough prior to their retirement years. Even though total assets in retirement accounts have now breached $26 trillion, the average employee’s 401(k) balance rests around $100,000, which is a little light for 30-40 years of retirement. In an effort to assist with this well-documented […]

Private enterprise is often lauded for the speed at which it recognizes and addresses society’s needs. However, the seeming failure of the business community to recognize and respond to the climate crisis and other mounting sustainability challenges has caused some to question whether business will play a positive role in addressing environmental challenges. Below, we […]

If you read the Michigan Trust Code (admittedly not a particularly riveting read!), you will frequently encounter the terms material purpose. A trust’s material purpose will guide a trustee in the administration of the trust. If a probate judge is called upon to interpret the trust instrument, or the judge is asked to order a […]

The ever quotable Yogi Berra, who brought us such philosophical gems as “when you come to a fork in the road, take it,” and “you can observe a lot just by watching,” is also credited with the insightful idiom that “predictions are difficult, especially when they’re about the future.” This difficulty in predicting the future […]

Integrity first, service before self, and excellence in all we do are the core values that each Airman commits to when joining the Air Force. At Greenleaf Trust, we also have core values that all new team members make a commitment to before joining our team. Greenleaf Trust’s core values form the foundation of how […]

When was the last time you reviewed your retirement account beneficiary election? Many people forget to update their beneficiary after important life events such as marriage or divorce. However, it is very important to ensure your retirement beneficiary information is current. Greenleaf Trust makes updating your beneficiary information easy by offering an online option to […]

In late May 2019, with bipartisan support, the House of Representatives passed the SECURE Act (Setting Every Community Up for Retirement Enhancement Act) by a vote of 417-3. This legislation, if passed, is likely to have an impact on workers, retirees, and heirs. The SECURE Act aims to improve the nation’s retirement system by providing […]

Do you remember writing book reports in school? I often felt the structure of the specific questions, required formatting, and deadlines associated with the report took away from the enjoyment of actually reading the book. The joy in reading for me has always been the creative thoughts inspired by the content of the book, not […]

It seems fitting to me that a man whose last name was Greenleaf first coined the term “servant leader” in 1970. Robert Greenleaf’s concept was that a servant leader focuses primarily on the growth and well-being of people and the communities to which they belong. While traditional leadership generally involves the accumulation and exercise of […]

In our 2018 year-end seminar we recapped a period where almost every major asset class posted disappointing returns as investors grew increasingly concerned by the prospect of a global economic slowdown. We also provided our outlook for the key themes we expected to influence markets in the near- term, and the capital market assumptions shaping […]

What employers can do to help employees to utilize benefits as they near and enter retirement. For many years, you have helped employees save for their retirement by offering an employer sponsored retirement plan benefit. You have encouraged savings through ensuring education sessions were held, individual consultations were available, and maybe even set up automatic […]

Volatility in the financial markets has increased, and the returns that we expect from equity and fixed income markets globally are lower than over the recent market cycles. What are the topics that should be on the meeting agenda for the Finance and Investment Committees for nonprofits? Sustainable Spending Rates One of the more difficult […]

Over the decades many families purchased life insurance, either to act as an income replacement vehicle when the breadwinner died, or to provide immediate liquidity to pay federal estate taxes on the breadwinner’s death. With the 2017 Tax Act’s temporarily doubled federal estate tax exemption amount to $11.4 million per individual, many believe that they […]

A strong nonprofit sector is critical to the success of any community. Yet, there is an inherent power dynamic that enters many of the conversations between funders and the potentially fund-receiving nonprofits which can hinder the development of open and trusting relationships. To truly provide impactful support to our community, funders must recognize this dynamic […]