Question:
We’ve been long-time listeners to the show. We still love Vulcan Materials. Is this one still a buy? We’ve also considered Martin Marietta Materials for the higher dividend.
Answer:
These two companies are one and two in the United States aggregate business. The prospects for these companies are good, with the housing market and construction coming back.
Vulcan Materials Company (NYSE: VMC) is a producer of construction aggregates primarily crushed stone, sand, and gravel. Vulcan produces aggregate-based construction materials including asphalt and ready-mixed concrete.
Martin Marietta Materials Inc. (NYSE: MLM) is the producer of aggregates products (crushed stone, sand, and gravel) for the construction industry, including infrastructure, nonresidential, residential, railroad ballast, agricultural, and chemical grade stone used in environmental applications.
Both stocks are expensive, while Martin Marietta is more sound currently, we do not recommend buying either company at the moment.
Question:
I’m a little embarrassed to ask this question. I’ve been working with my adviser for years. What is the difference between separately managed and unified managed accounts?
Answer:
A separately managed account (SMA) is a portfolio of assets that are managed by one or more professional money managers. In an SMA, your assets are not commingled with those of other investors, as they are with a mutual fund. With a separately managed account, you are the sole owner of each security held within your separately managed account. As a result, you and your financial professional have more control over management of specific investments in an SMA.
Unified managed accounts (UMAs) are an outgrowth of the separately managed account concept. They offer a more efficient way to manage the asset allocation process and integrate a variety of investment vehicles. A unified managed account allows you (or your financial professional) to aggregate multiple asset managers and investment vehicles within one account, and make investment decisions in the context of a much broader view of your overall finances.
A UMA may allow investors to select a predetermined asset allocation; the UMA is then managed on an individual basis to maintain that asset allocation. Or it may offer customized modeling of a portfolio and asset allocation that is tailored to a specific individual.
Both unified and separately managed accounts have pros and cons. They are very specific to your needs. We recommend that you talk with an investment adviser when considering what will work best for your individual situation.
Question:
I’m getting up in my years, and I’d like to start distributing my wealth while I can watch my family enjoy it. What are my options this year?
Answer:
The annual gift tax exclusion is one of the most significant ways you may be able to reduce your federal gift tax liability. The annual gift tax exclusion currently allows you to give $14,000 in 2013, to an unlimited number of donees (persons or organizations you give to) without incurring gift tax. You can double that amount if your spouse consents to split the gift.
The annual gift tax exclusion is important because it allows you to:
- Distribute your property gift tax free
- Potentially put your taxable estate into a lower tax bracket by removing assets from your estate
The requirements that must be met to qualify for the exclusion are:
- The gift must be made from a present interest in property
- A present interest means that the donee has the unrestricted right to the immediate use, possession, or enjoyment of the property, or income from the property from the moment the gift is given.
We caution you to be careful with giving away too much of your estate too soon leaving you with too little money to go on.
At Henssler Financial we believe you should Live Ready, and that includes understanding how the distribution of your investments impacts your financial future. If you have questions regarding your financial situation the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
