08/02/2004
The U.S. Tax Court gave family limited partnerships a reprieve in May by clarifying the requirements for structuring these popular estate planning tools. Is it time for me to consider an FLP for my own estate? Do I need to restructure my existing FLP in any way to meet the terms of the new Tax Court ruling?
How will my family business’s pension plan react to rising interest rates? Is it time to reconsider how I invest the assets in the retirement plan? How will an increase in rates affect the calculation of my company’s future pension liabilities?
Private equity firms that plan to issue shares are reconsidering their fees, according to the Wall Street Journal. Investment bankers are advising at least some of these firms that their traditional 2-plus-20 (2 percent management fee and 20 percent of capital gains) cost structure is too expensive. If they do cut their fees, will this make these “business development corporation” share offerings a better investment than my limited partnership interests in the same firms’ traditional private equity vehicles?
Germany plans to issue its first inflation-linked bonds next year. The United States and France have recently increased their inflation-linked bond issuance, and the United Kingdom and Italy also offer these instruments. Do these belong in my portfolio? Does it make sense to have an internationally diversified portfolio of inflation-linked investments?
Fine art valuations are skyrocketing, as evidenced by the record-
breaking price set at Sotheby’s in May for Picasso’s “Boy with a Pipe.” In light of this, should I have my own collection reappraised to ensure I carry an appropriate amount of insurance? Is this a particularly advantageous time to use my art portfolio as loan collateral?
Online
fund-raising is growing quickly. While this is a convenient way to give, what
steps should I take to ensure philanthropies that raise money online are using
my funds as advertised?
LIBOR is marching relentlessly upward; the
three-month U.S. dollar London Interbank Offered Rate rose nearly a quarter of a
percent in May alone. Should I consider extending the term of my family
business’s working capital lines of credit? How can I optimize my company’s
capital structure in anticipation of a rising rate environment?
Many private
equity funds of funds in Europe struggled to meet their fund-raising targets
this spring. Is this a mere blip or does it reflect investors’ concerns about
the investment climate in Europe? Are my European funds attracting the capital
they need?
Crude oil prices have hurt many energy-intensive industries,
pressuring the chemicals, transportation and airlines sectors in particular. How
can I hedge my portfolio against further increases in the price of oil?
The
Polish zloty, Hungarian forint and Czech koruna will disappear in favor of the
euro by 2006. Despite this, the Chicago Mercantile Exchange has recently
launched a series of futures and options contracts on these currencies. Do they
make any sense in the context of my portfolio?