On September 16, 2021, Sand Hill CIO Brenda Vingiello, CFA joined the CNBC Halftime Report panel once again and discussed what positive catalysts investors canread more
When Does It Make Sense to Hire a Professional Fiduciary?
Silicon Valley has long served as a beacon throughout the country and world for the best and brightest technology professionals seeking career and economic opportunities. Within the counties of Santa Clara and San Mateo, 38% of the residents were born outside of the United States as of 2017,1 and countless more are domestic transplants from all corners of the United States. Many of those seeking, and obtaining, the financial rewards promised by Silicon Valley came from families of middle-class or more modest means and are often the first generation to become millionaires. As a result of these unique regional dynamics, a dilemma is created as those with accumulated wealth begin to age while being geographically separated from family who, in their own right, may not have experience managing complex financial affairs.
It is common during the aging process to arrive at the sobering realization that you need to assemble a capable team to shepherd you through the transition process should you become ill, frail or incapacitated. Hiring a wealth advisor to manage investments, creating an estate plan, funding the education needs of children and insuring homes and valuables are natural first steps. And while you feel confident that there are sufficient funds to cover your long-term care needs, have you thought about who will manage this process and protect your financial, mental and physical well-being as you look toward your golden years?
If you are not among the lucky few who have both nearby and financially savvy loved ones, you may be in search of an alternative resource to take control should you become incapacitated or pass away. And even if you do have possible assistance from family, you may be concerned about the disruption on the lives of your children or siblings. Selecting one sibling or child over another, or providing additional access to a sole family member, can also produce unintentional and undesirable rifts. Fortunately, the option to utilize a professional fiduciary presents a sound and viable solution to the vexing problem of whom to rely upon as you age.
A professional fiduciary, either an individual or firm, is an appointed party to manage and protect your personal affairs, property and assets to help ensure your mental and physical well-being. The professional fiduciary’s role includes medical care oversight during life, guidance and coordination in transitioning from home to assisted living, property management, estate administration at death – just to name a few. Importantly, this individual is not an actual caregiver, but he or she will arrange for these services to be provided.
To begin the process, you should interview a few different firms and obtain references prior to making your final selection. Be sure that the potential independent fiduciary is licensed in the state in which you live. Most states maintain a directory of licensed fiduciaries. These individuals are heavily regulated and held to a certain fiduciary standard who must act in the best interest of the person they are representing. Start building the relationship before the fiduciary actually needs to step in. You want time to thoughtfully articulate your expectations and establish that much-needed level of trust and confidence to ensure your plan will be carried out as you intended. In working with your estate planning attorney, this individual will be appointed as a fiduciary in your estate planning documents.
You have worked hard to attain security and peace of mind for you and your family, perhaps having traveled a great distance to Silicon Valley or risen from modest means. In addition to leaving a financial legacy, your greatest gift to your family will be the implementation of a well-considered plan so as not to be a burden to them. Work with your wealth advisor for recommendations as to who would be suitable candidates to fill this critical role to complete your team.
1 “Percentage of the Total Population Who Are Foreign Born.” Silicon Valley Indicator, Joint Venture Silicon Valley, www.siliconvalleyindicators.org/data/people/talent-flows-diversity/foreign-born/percentage-of-the-total-population-who-are-foreign-born.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.