Good news for the US economy, as it grew at its fastest pace in two years as a result of soybean exports. The gross domestic product increased at a 2.9 percent annual rate. This is the strongest growth rate since the third quarter of 2014 and beat out the economists’ expectations from a 2.5% expansion pace.
As David Donabedian, the chief investment officer of Atlantic Trust Private Wealth Management in Baltimore said, “While the economy may not be ready to take off, today’s GDP suggests the economic expansion is not at risk of ending.”
The GDP report has actually been seen as a way to bolster Hillary Clinton, two weeks before the election. As Robert Murphy, an economics professor at Boston College said,
“This is good news for the Clinton campaign, which has tied itself closely to the Obama administration’s record on the economy.”
Should anyone be worried – Chelsea Clinton will be just fine when her parents pass away. That’s the basic take-away from an article written by Kerri Anne Renzulli. In the article, Renzulli meticulously analyzes the care with which Hillary and Bill Clinton have put their financial lives in order, and shows it as quite an example to the rest of us. Politics aside – they certainly have their financial lives well organized.
As the article explains, the couple has investments valued at between $10 and $50.1 million, according to their disclosure forms. Their disclosures do not include the value of their homes or retirements accounts since they don’t have to be released. Herein lies the key to their estate planning. They have created a residence trust which means that the property’s value can’t be counted in their estate, or be taxed when they pass it to their heirs. As Michael Delgass, CEO of Sontag Advisory explained,
“When you create these trusts, the benefit you’re relying on is the appreciation down the road — you’re counting on it to grow into something much more valuable.”
The Clintons actually created two of these trusts in 2010. If the value of their Chappaqua, New York home continues to grow, the move could save them hundreds of thousands of dollars in taxes, according to estate planning and taxation expert Jonathan Blattmachr. Jonathan Blattmachr of Pioneer Wealth Management, who co-authored Bloomberg BNA’s tax management book on personal residence trusts explains the move.
The couple also owns another home in Washington DC that they haven’t placed in a property trust. Jonathan Blattmachr explains that they may have chosen not to do so because they don’t think that home will appreciate as much or because they intend to sell it.
The article continues to explain other areas of their lives where they have taken the financial steps to cover themselves and their heirs. The rest of us would do well to take notice and perhaps to use their example.