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Market Recap: August 2012

After six straight weeks of gains, equities took a bit of a breather at month’s end. The S&P spent the last half of the month bumping its head up against its year-to-date high of 1419 but never quite managed to close above it, while both the Dow and the Nasdaq ended the month a little …

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The Investment Policy Statement: A Portfolio’s Road Map

In some cases, investors choose to authorize a money manager to make the actual investing decisions for their portfolio rather than simply make recommendations. In such cases, it can be valuable to have a mechanism for making sure in advance that investor and manager are on the same page. An investment policy statement (IPS) is …

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High-Income Individuals Face New Medicare Taxes in 2013

Two new Medicare-related taxes take effect in 2013: an additional 0.9% payroll tax on high-wage earners, and a 3.8% tax on the unearned income of high-income individuals. Here’s what you need to know. New additional Medicare payroll tax Beginning in 2013, the employee share of the hospital insurance (HI), or Medicare, portion of the Federal …

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What is a captive insurance company?

A captive insurance company (CIC) is a corporation established either onshore or offshore to insure the risks of its parent company or a group of companies. While there are many benefits that can be derived from a CIC, the primary goal of any CIC is to reduce the parent company’s overall cost of risk management. …

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Speculating on the Future of the Federal Estate Tax

What’s the future of the federal estate tax? All we know is that no one knows for sure; it’s all speculation. So, let’s take a look at what could happen. There are five possibilities: (1) Congress could extend current tax law (commonly referred to as the “Bush tax cuts”); (2) Congress could do nothing, essentially …

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