October 17, 2024 • 44 mins
Once you build you nestegg it's important to lock it up and protect your assets from the government at death. Hosts John and Giuseppe agree. This week we talk with Alessandro Chesser with Dynasty Trusts.about securing your home and investments from California and Nevada probate. getdynasty.com. Then, investing in an Election year, and a Golden Nugget. The Wise Money Guys.
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Episode Transcript
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Speaker 1 (00:00):
The Wise Money Guys Radio Show is brought to you
by One Source of Wealth Management SEC licensed three one
nine zero seven eight. For disclosures and more information, visit
our website One Source WM dot com.
Speaker 2 (00:13):
Welcome to the Wise Money Guys Radio Show. I'm your
co host John Scambra, and I'm here with my partner
Giuseppe Vesconti. We are certified portfolio managers that absolutely love
and specialize in helping people who are retired are about
to retire manage their investments. And we are really really excited.
(00:33):
And as they say in Boston, because I just came
back from a short trip and I hope you missed me,
even though Giuseppe did a great job.
Speaker 3 (00:43):
Miss with you maybe a little bit.
Speaker 2 (00:46):
So I know if you want to send in some
feedback that say, John can't, we can't listen without you,
I'd really appreciate that. But as they say in Boston,
this is going to be a wicked great show and
so well, the reason why this one's going to be
different and why you should definitely stay tuned for the
whole show is because we haven't done something like this
(01:09):
in a while, which is have a guest, a guest
who's a subject matter expert on a very important strategy
or strategies when it comes to managing your wealth. And
this particular person who will introduce here in a moment
is an expert on trusts. More importantly, an expert on
(01:30):
trusts where they're going to help you avoid estate taxes,
especially in California. Now this is tax mitigation, this isn't
tax dodging. And so before we get started, let me
turn it back over to Giuseppe. But I do want
to mention that there is nineteen days to the election,
(01:56):
and because this is a financial and economic show, we
do need to say that you know, it is going
to be a bit more volatile than normal, being an
election year, being one of the most contentious election general
election years that we've ever been in, so expect volatility.
(02:17):
I believe it will be a good time to buy
those dips on the really high quality big names, whether
it's the chip names, whether it's the energy companies, so
on and so forth. Don't be afraid to add on
these dips. And then hopefully, as in most general election years,
as in most fourth quarter of most years, there is
(02:42):
the thing that is called or what we like to
call the Santa rally, and I believe there is no
real headwinds out there. And this is where I want
to get you going, JOSEPPI to prevent this year from
having a Santa rally like we did last year. I mean,
what do you seem out there today?
Speaker 4 (03:01):
Yeah, I think a lot of it's going to be
dependent on the data around inflation. With the FEDS cutting
a half percent, did they do did they make the
right choice or did they make a mistake. The ECB
European Central Bank just cut rates for a third time
in a row. Recently they're looking to cut rates again,
(03:22):
So what does that say? And does that put more
pressure on the Fed? Data is coming in. The most
recent data that came in came in a little harder
than estimate, So, you know, does inflation tick back up?
We saw the ten year yield treasury go down to
like three six three six, and now it ticked up
over four percent and it's gyrating between a little bit
(03:43):
below and above that. So I think most of the
focus is going to be back on inflation. As far
as what can derail this, I mean, barring anything right, geopolitical,
some the conflicts around the world escalating to Yeah, and
then rising oil.
Speaker 2 (04:00):
Keep in mind that we've been talking about rotating and reallocating,
rebalancing a portion of your money from stocks to bonds,
and actually, over the last couple of months, bond rates
continued to drop the actual yields, but now we're actually
getting prices again that are where you could lock in
(04:21):
some decent rates in the fives. Not quite where they were,
you know, towards the beginning of the year when we
were getting six and seven, but we're still now getting
in the in the mid to high fives again. And
that's because when when you're seeing the ten year treasury
go up in yield, the price of bonds such as
(04:43):
treasuries or corporate bonds or muni bonds are going down.
So keep that in mind. But again, look for this
month to be, you know, maybe a little more volatile
than normal, and then of course look forward November and
December to be very very good. Santa Claus, come out
of town if you want to talk to us about
(05:05):
this conversation today and see how we can help you
with what we're going to talk about and how it
may fit into you know, your legacy and creating your
legacy wealth. Give us a call at nine one, six, nine,
six seven, thirty five hundred call seven seven five four
one five two six seven seven.
Speaker 4 (05:28):
So I wanted to bring in an individual Alessandro Chesser
with dynasty, and it's very timely, especially that you brought
up the election earlier, because we are in a paradigm
shift and depending if the current administration, oh I say
current administration, that's like a Ferrouidan slip, right, but you know,
(05:49):
if if Kamala wins or Trump wins, there's a big
diconomy and differences in policies. Part of that is what's
going to be coming down the pipeline. And twenty twenty six, right,
we have sun setting is the death tax.
Speaker 3 (06:06):
So we've had plenty of conversations.
Speaker 2 (06:08):
Is the size of the exemption for the death tax?
Speaker 3 (06:11):
Correct?
Speaker 5 (06:12):
Yeah?
Speaker 3 (06:12):
Correct?
Speaker 2 (06:13):
Where is it currently?
Speaker 4 (06:14):
By the way, I believe it's around twelve point four
and we'll have Alessandra chime in per individual, So if
you're a married couple, I think it's almost twenty five million,
but that can get cut essentially in half because it'll
go back to the Obama era. And so if you're
in that or projected to be in that realm, you know, right, now,
the way it's set up is for you know, your
(06:35):
beneficiaries will have to pay forty percent tax. We'll dive
more into the details. Back on Dynasty and Alessandra Cheshi,
what I'll bring in here in a few seconds is
they are revolutionizing how to get into and be able
to even just get a basic living revocable trust to
(06:57):
help protect you from probate. The biggest bear that we
see us, you know with clients that we talked about
is clients know they have to get the trust and
they know the importance of it, but like who do
they go talk to? And then are they going to
go interview all these attorneys and then do they trust
them and is it too much money or what have you.
So they are breaking that barrier of entry and then
they're going into the more complex of how can they
(07:18):
actually protect assets and mitigate taxes. So I want to
bring in Alessandro Chesser with Dynasty.
Speaker 3 (07:28):
Are you on with us? Alsandro?
Speaker 5 (07:31):
Thanks for having me.
Speaker 4 (07:33):
Thanks for being with us. So if you could start
off and just tell us a little bit about Dynasty.
You know what was an impetus to get Dynasty going.
How you're ruffling the feathers in the whole trust world
and where you're seeing sort of the opportunity just dealing
within that realm, and how you're helping to protect clients assets.
Speaker 2 (07:56):
And how you may help protect our clients assets on a.
Speaker 4 (08:00):
Preferace that I originally invested in this company a couple
of years back when it first started, just because I
thought this was such a great idea.
Speaker 3 (08:06):
Absolutely.
Speaker 5 (08:08):
Yeah. So this idea for me personally goes back about
twenty years to the very first job that I actually
had was actually during high school at Bank of America
as a teller. I went on to spend the next
about a decade just working for different retail banks, Bank
(08:28):
America well as far Ago, Washington Muchool Union Bank, and
I was always on the sales side of the retail bank.
Walk in, you have one side, you have the cash
operations tellers, and on the other side have the bankers.
I quickly made my way to the banker side and
spent you know, a good good part of ten years
working with you know, customers and high network individuals. And
(08:51):
it became very clear to me very quickly that you know,
there were such individuals they didn't hold their bank accounts
in their personal name they actually had trust set up,
and part of the bank training process was teaching you
how to you know, desight for these trust documents, like
what's the difference between the revocal trust and they vocable trust?
(09:13):
And so I learned a lot about trust. You know.
Fast forward to the second half of my career, I
ended up working for the Silicon Valley software startup companies.
The last company I worked for, you know, like joined
is the thirteenth employee. The company ended up you know,
growing pretty significantly over the course of about eight years
(09:36):
that I was there, and we you know, when I left,
they had a few thousand employees and uh, you know,
close to half a billion dollars worth of an overturning
revenue year.
Speaker 3 (09:47):
Wow.
Speaker 5 (09:48):
So that that company was and I ran shales for
the company for a majority of the time that I
was there. A company called Karda and Carda's you know
main mission was getting uh legal documents and turning them
into you know, digital format. It was like all this
old paperwork that corporate law firms you to generate for
startup companies and investors is paper stock certificates and paper
(10:11):
option you know, when you've got hired to startup company
a stack of paper and that was your auction brand, right,
And so when we get a Carda, we just digitized
it all these legal dogments made digital. It may accessible,
made seeper less legal fees, and you could log in,
you can see how much ownership you have. And so
it was during my time there that I was actually
presented with this idea for science in front of mine
(10:31):
and he's like, hey, here's another legal document we should
uh digitize.
Speaker 4 (10:36):
Right, that's exciting, and that's what you've what you've done
with Carda and private equity, and then we can dive
into how that's going to revolutionize the realm of the
old traditional way of papers and documents for trusts and
also the risk with that having just in paper and
how how it's you know, safer and secure and easily
(10:57):
accessible using digital.
Speaker 2 (10:58):
And we have a very exciting guests on Alessandro Chesster
with Dynasty and he's now going to talk about the
importance of trust work and how their company has revolutionized
the industry for people that have you know, assets and
things and they're really concerned about estate taxes, so on
(11:19):
and so forth. So Alessandro, go ahead and bring us
back into you were talking about your experience with Karta
and digitizing everything, and then you started digitizing trust legal
documents and how has that evolved from there?
Speaker 5 (11:34):
So that was the simple vision for this company. You know,
this is a set of legal documents that lawyers generated
for thousands of dollars for Americans don't have ad US.
Most most Americans that have simple will. And so the
idea is, we want to make Crust, you know, simple,
physical and affordable for everybody. And so when you think
(11:56):
about Crust and what they can actually do, the simplest
form of US is a revocable trust. And a revocable trust,
the easiest way to think about what it does is
to compare with the will. A revocable trust is better
than a will because a will has to go through
probate court when you pass away and your sultan or
(12:17):
your family want to get access to your assets, your home,
your bank accounts, whatever those gut that they if they
are not held in a revocable trust, then maybe each
state has their own limits or you know the probate
thresholds In California, I think it's like one hundred and
forty thousand dollars, like anything over one hundred and forty
thousand dollars in California.
Speaker 4 (12:38):
I think they bumped it up a little over one
hundred and eighty actually, so you know they're being generous.
Speaker 5 (12:43):
Yeah. So anything anything over that will have to process
the probate court system. The probate court system, in my opinion,
is the largest packs on non rich Americans that exist. Uh.
You know, if you pass anywhere from six to ten
percent of your entire estate, it can pay eighteen plus.
You know, I've seen I've seen some probate cases that
(13:04):
have been you know in probate for five plus years. Yeah,
so it cousits a lot of family friction because your
family are gonna have to turn up the probate court
and they're gonna have to make a claim for your
assets and usually result in a lot of family drama,
a lot of disfuse, you know, because there's a lot
of different interpretations. Well, you know, my father meant to
(13:25):
get there's another version of the will out there, and
I don't you know, it's hidden, it's lost in somebody's touch,
and so these things that end up getting tide in
court forever and there's no CRUs I think is like
these wills and the strussed on paperwork.
Speaker 3 (13:38):
You made an.
Speaker 4 (13:39):
Important point deciphering the differences between the trust and the will,
only because we literally just had a client meeting the
other day earlier this week, and a client has had
a trust for a long long time, and she kept saying, well,
you know, I have a will and so on and
so forth. But we come to find doubt the house
(14:01):
wasn't under the trust, so the deed wasn't under the
name of the trust. You know, some of her bank
accounts were under the name of the trust. So there's
a miss right, and there's a misconception that sometimes people
will go out and get a trust and they think
I've done my duty, I'm good, everything's protected, and they
don't realize that they actually have to go to either
the state, the counties or financial institutions, bring in that
(14:24):
copy of the trust and say, hey, I want to
retitle my asset under the name of the trust.
Speaker 5 (14:29):
Right you need in France for all assets and you're
all titled. Accests must be transferred into your trust. If not,
then you don't. You didn't exactly, you've basically created a will.
If you if you don't find your trust that felt important,
you know, when I'm to real estate with the most
Americans that the most diable ashes they have, it's their home.
(14:49):
You know, you need to make sure you use a
good either an attorney or utilize a you know, a
fight like ours. Uh and the work what does?
Speaker 3 (15:00):
What is the site that people can go to?
Speaker 5 (15:03):
Yes, Dynasty dot com.
Speaker 2 (15:04):
Okay, and by the way, if if you're a client
of ours, we will actually you know, make the payment
on the creation of the trust.
Speaker 4 (15:16):
But that is one nuance or big difference between Get
Dynasty going to get Dynasty dot Com versus you're going
to an attorney, especially if it's a simple basic revocable trust,
right because people can literally go on the website and
right up, right up and have everything and go to
the whole template boiler plate and create their own liver
(15:37):
living revocable trust for for what for? What's the cost
on that?
Speaker 5 (15:41):
And you're being preyed a simple free revocable trust in
less than ten minutes you're followed on our website. Wow,
you know we do have both graded packages. You know,
if you want customer support, if you want to get
it remotely motorized, if you want us to help you
transfer your home and your trust. You know, those are
all going to be of the upgrade package. Awesome, But
(16:02):
in general, if you just want to go on a
grey free one and get your own daughter and get
your own transfer, like it's only free place, you're going
to be able to do that.
Speaker 4 (16:09):
And what about the you know, the security right, most
people will get a trust like I did. I originally
got a trust it's a paper trust, and then I
put it in a in a file cabinet, you know.
And then my wife as you know, uh, she grew
up in Paradise, California. Most people know what happened in
twenty eighteen with Paradise, California. Everything burned down.
Speaker 6 (16:30):
You know.
Speaker 4 (16:31):
Luckily her parents had just moved out, you know, eight
months prior to that event happening.
Speaker 3 (16:36):
But had they had a you know, their paper.
Speaker 4 (16:38):
Trust and it was sitting in a in a saye
for file cabinet, I mean that would have been dust.
Speaker 5 (16:44):
Yeah. That was the biggest problem with the the old world. Right,
everything's on paper, and if you lose that paper, you
have nothing. I think that like paper fax, you lose
your paper sacks. To this day, you lose your investments.
It's the same thing with fuss today you're trusting it
on paper, it's going to be vulner So not only
can it your house burned down or you lose as occupants,
(17:05):
but it can also before somebody can grab it and
Frank Forbs. But this is that there's no version controls.
Like if you update your trust and you're updated again,
you update again and then you pass away, you're gonna
be like, okay, well which one is the right version? Well,
we don't know if there's a newer version out there,
we can still know where it is. It might be
in his car and Brook who knows true? And so
(17:25):
that's why trust to end up being challenged very often.
That's why they end up probate fors no versions school.
It's one of the big things that we wanted to
solve with our platform is like every time you're going
up to your trust, you're going through a digital identification.
There's version control. We can see exactly what the Laates
version was that you can access it from anywhere in
the world.
Speaker 3 (17:44):
Wow.
Speaker 2 (17:44):
So you know, we've been talking about the basic benefits
and why just about everybody should have at least a
revocable trust, but what about the people that have you
know more means that are concerned about what Giuseppe talked
about in the very beginning, the estate tax exemption reverting
(18:06):
back to the Obama years. How does your system, your
service help with those folks that and we come across
them where you know, you have a multiple seven figure
or or greater net worth. And it's also about you know,
the estate tax that you might pay, should you you know,
(18:30):
pass in these later years where the estate tax abxemption
has gone way way down, how will your platform help
with that?
Speaker 5 (18:41):
Yeah, So the death tax exemption if sets expire next year,
the next year, it's set to drop from about thirteen
million to about seven million. Right, this is huge because
anything if you pass away every dollar over that seven
(19:01):
million dollar rifle is potentially going to get packed at
forty percent. That's on a federal level forty percent. You know,
go have your money that you know, Cristy dr should.
Speaker 2 (19:13):
Yeah, especially when you start your in state and if
you look at like real estate investors and things like that,
or maybe you're just one who's lived in your Bay
Area or southern California or Tahoe home for a very
long time and now you're looking at you know, just
your home might be worth the five million or four
(19:33):
million dollars, and then you add a company stock or
your company stock, you add up your retirement accounts, all
these things, and you're starting to go, well, shoot, I'm
worth ten million dollars, and you know if the exemption seven,
I'm going to pay forty percent or my heirs are
going to pay forty percent on the three million, and
that's a million two that has to be liquid correct
(19:56):
to pay off the irs. Should that be your situation.
Speaker 5 (20:02):
That's right. And what ends up happening in these equations
is people you know that have some real estates, some
businesses they pass away. It has to be because that
tax goal is going to come do pretty quickly those beneficiary.
So they basically have to fire or scale the assets
like whatever I think, sell the real estate, sell the
restaurant that my father owns, just to pay for the taxes.
(20:24):
And so the smarter thing to do. And there's currently
a big rush of you know, ppa selling clients. Get
the assets out of your name. Now, well, the exempt
in is high, Well it's thirteen I think it's roughly
thirteen point five million dollars in twenty twenty four. And
you know, this is especially important for people who have
appreciating ass the high growth assets like in you know
(20:46):
in in the area they have a lot of startup
employees and then you know they maybe have a company
that you know their stock position may be worth about
a million dollars. Well like twelve months that million dollars
can be worth ten million dollars. Companies can grow very quickly.
And so the problem is if you wait and then
you try transfer out of your name later, it's going
to be subject even if they're not dead. And so
(21:10):
the CPAs are calling their clients is they get the
assets out of your name now put them into an
irrevocal trust as a gift for your family or your children.
That way, when those assets can see you to appreciate,
you never have to worry about transfer taxes. Is a
specific type of irrevocal trust that we create our new
data irrevocal trust and those that can exist for grandred
(21:31):
and sixty five years. They never they never have to settle,
they never have to pay transfer that wow.
Speaker 2 (21:37):
So if you would like a consultation with us and
also get information more specifically to your situation, give us
a call at nine one six ninety six seven thirty
five hundred. Call us at seven seven five four one
five two six seven seven. You're listening to the Wise
(21:57):
Money Guys radio show. I'm your co host John's Gambre.
I'm here with my partner Giuseppe Visconti, and we're also
here with a special guest, Alessandro Chesser from Dynasty Get
dynasty dot com, and we've been talking about the importance
of having a trust. No matter how big or financially
successful you are and your legacy is, it's important to
(22:22):
have a trust. And it's even more important if you're
a larger you have more means in real estate or
stocks or retirement and greater assets to have that trust,
especially with the estate tax exemption going down. Now. The
website get dynasty dot com is a do it yourself
(22:46):
and you may be thinking, well, I really don't want to,
you know, chance doing this myself, that I make a
mistake and don't do it right. Well, that's where we
come in as your advisor to help you with what
you need and what you want to design, uh for
creating that that living trust for you. So call us
(23:10):
at nine one six nine six seven thirty five hundred
for a consultation call us at seven seven five four
one five two six seven seven. So let's just kind
of finish the the the the benefits of this, and
so we can get Alex Alessandro Alex for short going.
(23:31):
But again getting to using, Uh, how is the user experience?
I mean, what do you have to do? Do you
create a log in?
Speaker 3 (23:39):
First?
Speaker 2 (23:40):
Do you how do you sign up and potentially benefit
from from your website specifically?
Speaker 5 (23:47):
Yeah, got to good Dynasty dot com and you just
sign up. The first thing you do is you enter
your phone number, you get a text message with the TODE,
and you log in, you straight your account and then
we walk you through. You know, we put everybody straight
into a revolt trust create workflow like everybody, we think
everybody needs a simple revolvable trust. And then in that
(24:09):
setup for the revulcable trust, you know, we have gathered
your asset information and that's what we determine whether or
not you could simply benefit from a Nevada Dynasty trust
as well. That's a specific type of irrevolcial.
Speaker 2 (24:22):
That a little bit more and what the benefits of
that are.
Speaker 5 (24:25):
Yeah, So the specific type of trust that we are
creating on the irrevolcal side. And so one of the
game is we just get a bunch of research and
we talked to some of these billionaire investors that we
have or what's the ultimate what are the best for us,
like the average person to us. And so that's a
directed Nevada Dynasty trust. And so there was the kind
(24:47):
of a complex name. The directed part of the name
specifically refers to the fact that it is a directed crust,
which means somebody directs the trust here on what to do,
which is very important. That means just this is full mechanism,
so that you're not just turning away that your vocal
trust or a random trustee who has full control. No,
you're actually establishing who's going to be telling that trustee
(25:09):
what to do. And so that could be you know,
you could be the investment director for your trust, assign
your your father, your mother to be the trust protector.
But he's just been putting these layers of control. And
that's an important piece of the trust that we created.
It allows you to retain that sense of control. Uh,
the other parts of the name the Nevada Dynasty for us,
(25:30):
you know that that ensurgs that you can take advantage
of Nevada law which Nevada is zero tax state, zero
income fact, zero gived impacts and zero tap gains tax.
And it also means you can take advantage of Nevada
laws for active protection. That is the number one state
in the country. Is when it comes to basic protection,
there are no steps in creditors, not even for fossil
(25:52):
support or uh, you know, any things that can come
from a divorce like a Nevada trust protective dat.
Speaker 2 (25:59):
Okay, this is crucial because this is where I believe
you should absolutely give us a call so that we
can help you determine, along with Dynasty's help, whether or
not you should have this more complex trust. And again
being that more complex trust is the is the is
(26:19):
the digital documents that the site creates. Is that still
no charge or what are the additional packages when you
get into something more complex?
Speaker 5 (26:31):
Yeah, so if you need a irrevocable crust a dynasty trust,
starting packages a thousand blucks, but it can range up
to ten thousand blucks. We also, you know, we operate.
Speaker 4 (26:43):
Versus what's the typical charge if you go into the
attorney to get those complex trusts?
Speaker 5 (26:48):
Yeah, compared to ten thousand dollars plus associated some instances
the customers in twenty thirty forty fifty thousand dollars just
to create at a dynasty.
Speaker 3 (26:59):
Difference and the other the other point.
Speaker 4 (27:02):
And I know we've talked about it before because you
were explaining this to me that I want you to
get out. There is the tax benefits, but then also
the dynasty trust and you said that last three hundred
and sixty five years. But the example of you know,
if you want some sort of control and you have
where the assets go and the assets within, it also
(27:22):
has the tax benefits as well when you're growing those assets.
Speaker 3 (27:26):
But maybe maybe.
Speaker 4 (27:27):
They want to have certain parameters where you know, kids
are grandkids, you can pay for education or down paying
for a house or those sort of things.
Speaker 5 (27:35):
Right, Yeah, So our standard package for the irrevocable trust,
it's directly out of like the way these dynasty pruss
are typically created. The distribution mechanism after that called ten
it's health, education, maintenance as the court. So we've like
really gone in behind that, like you know, you can
get help, the kids can get healthcare paid for, they
(27:57):
get they can get down came in for a home,
they can get rent, they can get a loan to
start a business. But what they cannot do is they
cannot take that money out and spend it on you know,
gambling for it's the vegas or vacation of why they
can't blow the money basically anything like that. Ye sorry, No,
that's problem with the typical trust that are created. They're
(28:19):
not very specific on making sure that the trust stays
alive and can provide support not only through children, but
there are children and the children that they have and
to being able to crase this multi generational extremely packed
to fiction in vehicle that never has to pay creating
death transfer taxes, never has to pay states in somewhere
tapped games tax and can provide for multi generations. And
(28:45):
you know that's why call the Dyansty trust. This is
what the ridges standing is, what the billionaires is. The
Rockefellers used right, right, Beef Bezos, the founder of Amazon,
you look up his gians trust runs about heavily like
these are what the richest people use, and that this
is the number one way to create multigenerational wealth and
that's why we run.
Speaker 4 (29:02):
That's awesome, So get Dynasty dot com right. It's been
around for maybe for a couple of years or so,
But what happens if get dynasty disappears? What happens to
those people's trust? We get that question sometimes as being on.
Speaker 2 (29:15):
What happens if we disappear? And we you know, because
we're an affiliate of one of the largest brokerage firms
in the country, there is no you know, uh downside
if we're not here upset for losing our expertise, advice
and and and great service. But what happens in in
your case, Alessandro, Like.
Speaker 5 (29:35):
It's just like if you're a lawyer, then you go
see like stops tracking law like you go out of
your trust, like you still you know you we're digital,
but like you have a paper crust, you can frint
out it any time and you can just file it
in your filing gablet like you used to do. The
different is is we have the digital and the paper
right and so if we go out of business, you
still have the bing just have the same thing you
would happen if we did make it. God, and you
(29:58):
know that's that's the important component is the software layers
which adds to the typical paper layer that you already have.
Speaker 2 (30:05):
And here's the thing that I want to finish with
and thank you very much Alessandro. Alessandro from Chesser his
company get dynasty dot com, which we are big believers in.
Giuseppe is an investor in. For full disclosure is that
even though this may sound simple, that hey, you could
(30:26):
just do it yourself or whatnot. When it comes to
investing and planning, I highly suggest that you work with
folks like ourselves to help you with the decisions and
the designing of these things. We are not lawyers, however,
you know because of our decades of experience with working
with people of all means, from you know, average means
(30:49):
to extreme wealth, We've seen all kinds of trust and
trust work, and we will be happy to help you
decipher and termine what what do you need that dynasty
trust or do you need just the simple irrevocable trust.
Please give us a call at nine one six nine
(31:10):
six seven thirty five hundred call us at seven seven
five four one five two six seven seven. Thank you
very much Alessandro for your time, and I hope you
enjoyed hearing about the importance of having a trust. No
matter how big your wealth is, you just don't want
(31:30):
things to go through California probate.
Speaker 3 (31:34):
And any probate doesn't matter.
Speaker 2 (31:35):
What stay your very very good point. And so if
if that sounded like over your head, and some of
it may have been, which would be normal, make sure
you absolutely give us a call at nine one six
ninety six seven thirty five hundred call seven seven five
four one five two six seven seven. We do have
(31:58):
a point of clarification on the current exemption, which was
what Joseppe.
Speaker 3 (32:03):
Yeah, it was.
Speaker 4 (32:03):
It used to be a twelve twelve point four to
twelve point five, but with inflation and everything, everything gets adjusted,
which is better for everybody. But it's thirteen point six
one million per individual. If you're married, you double that, right,
so over twenty seven million, twenty seven point two million,
meaning if your overall a state, if you sold everything
and piled your money in one big mound, and that
(32:25):
equated to over that amount if you're married, twenty seven
point two million. Anything above them beyond that mount. Current
with current tax code is tax at forty percent, but
once if nothing changes next year, if nothing changes, then
that will sunset and at the end of next year
that'll go go away and be cut basically in half. Now,
(32:49):
why is this all important. The last segment, you know,
the last show from last week, I talked a lot
about financial planning, and again, like John mentioned, we are
not lawyers and attorneys, we are not the ones that
actually put the trust together. But part of what we
do is not just portfolio management and asset asset management,
but it's the importance of having that blueprint, that financial plan,
(33:11):
and part of the financial plan process is also discovering
what are all your assets and what does your state
look like? But then also do you have a trust
and if not, what are some of the things that
you need to consider when getting a trust and how
to go about right And then you're well more equipped
to go out there and you're armed to build out
(33:32):
that trust, whether it's a living revocable or you want
to get into more complexity revocable or dynasty trust, so
on and so forth. And we actually have part of
our financial planning software and processes showing some of those
flow charts of Hey, if you didn't have a trust
and you went through and your state went through probate,
this is the ramifications.
Speaker 3 (33:49):
This is what it can look like.
Speaker 2 (33:51):
But more importantly, throughout the rest of your life, if
you're starting to work with us in your fifties or
sixties or forties, and we're projecting out that with our
portfolios and the amount of time that you're projecting maybe
to hey, I suspect my life expectancy to be ninety.
You know, you could end up when you look at
(34:14):
you know, basic appreciation, basic average returns, and growth assumptions,
you may easily end up above the seven million dollars
after the exemption sunsets back down to the lower amount,
especially if you are in the Bay Area, especially if
you are working for a startup that's going to go public,
(34:36):
whether you know it's in Northern California, Nevada or southern
California or wherever the place may be. We can help you,
you know, evaluate and project whether or not you'll need
you know, more advanced trustwork. And as our guest Alessandro said,
it's important to set it up now. If we're projecting
(34:58):
that you are going to have a net worth greater
than the estate tax abxemption in the future, than trying
to do it in the future, because then you're gonna
pay tax on trying to transfer the ownership of the
holdings at that point, and it will defeat the purpose,
it would be too late. So call us at nine
one six, nine six seven thirty five hundred, call us
(35:22):
at seven seven five four one five two six seven seven.
This is important. It will be I mean, no matter
who wins this this election, and I shouldn't say no
matter who wins, but if one, you know side from
a tax perspective, wins, it's going to be even worse
(35:43):
than if the other side wins from a tax perspective.
Either way, you want that minimum, you know, revocable trust
just to avoid probate if you're here in California, and
then more importantly.
Speaker 4 (35:57):
Or novad I mean I think it's I think Nevada
is around two hundred thousand. So any asset that's greater
than around two hundred thousand that goes through proba and
you just don't want to go through that process.
Speaker 2 (36:07):
I mean, your your morning, yeah, right, And if you're
worth two or three million dollars right now, because you
know you got you got a million or a couple
of million in your retirement, you got a house worth
a million or a couple of million, with many many
Californians and Nevadians do and again elsewhere as Giuseppe has said,
(36:28):
you got to be prepared and have this planned for now,
give us a call at nine one six ninety six
seven thirty five hundred call seven seven five four one
five two six seven seven. All right, So my favorite
thing is always to talk about investments, of course, and
(36:49):
how you know the economy is doing, and what sort
of financial concerns and and things to look for. And
so you know, right now, Joeppe, we're getting back to
that point where the S and P, the Dow, the
nastacs starting to look lofty, and their valuations and their
earnings multiples again. And we saw this already, you know,
(37:11):
this year. And typically, as I said in the beginning
of the show, October can be a very volatile month,
and we typically you know, have a good fourth quarter
in the form of a you know, a November December
or even a December you know Santa rally like we
had last year. But if I'm thinking about last year
when we went into November and December, the market had
(37:35):
already pulled back substantially in August and September, I believe
it was, so you know, to go back up a
Santa rally was certainly you know, and never guaranteed, but
it was a lot easier from the perspective that things
had gone down. Now Here we are with things very
lofty and valuations starting to get rich and earnings multiples
(37:58):
starting to be high again in and and you look
at okay, well, we're a little bit from from a
dynamic perspective different than we were last year going into
the last couple of months of the year. So this
is where if you've been going it alone and you're
starting to get concerned about the profits and the year
(38:19):
that you've had, it's crucial that how you set up
for next year, you know, helps you have an additional
good year next year and beyond. You don't want to
give up those profits because you just think this market's
just going to keep going and going and going, and
more importantly, you don't want to miss out on We
thought it was gone right. The bond the bond rates
(38:41):
that we were getting.
Speaker 4 (38:42):
Are well, a lot of them are gone, but they've
come but they've come back a little bit as far
as pricing. But yeah, I mean that window has been closing.
I mean, does it come back a little bit, you know,
if inflation starts ticking back up. You know, was the
previous week of inflation data one off or is that
going to start your trend? We'll come to find out.
As far as overevaluation, Piper Sandler, which is an investment firm, says,
(39:06):
currently right now, with the levels as far as SMP
five hundred, we're eight percent overvalued on the technical on
the as far as fundamental side, right if we're if
you look at a technical chart, s and P five
hundred above five thousand and seven sixties considered bullish. If
we close below that, then we can start breaking down.
(39:28):
Where would be the range from there around fifty one
hundred or a little above fifty one hundred. But into
coming into the election, we're really close to it. You know,
things can get and we're not exactly completely out of
the volatility season, which we've talked about before. Between end
of July and into October. You know, November December is
(39:49):
usually with that Santa rally starts to come. But there
is a lot of there is a lot of potential
for a black Swan event to happen. Right, does war
escalate in Russian Ukraine? Does war escalate?
Speaker 3 (40:00):
Yeah?
Speaker 2 (40:00):
And also there's always that kind of October surprise and
who knows what that will be. I mean, does does
Israel finally, you know, bomb the nuclear weapons facilities in Iran?
That's certainly a possibility and one that's being speculated about.
And then how would that affect the market? Initially, the
(40:22):
market and people and investors and institutions, would you know,
tend to move to safety because of the uncertainty of
how that could expand you know, in the in the
region or around the world. And so don't go it
alone here. There's been many, many great months this year,
(40:46):
but one month can take it all away. We've been
rebalancing and blending and taking risk off the table all
year to great success and very good returns. And you
should be two. And if you're not, because you're too
emotionally tied to your investments in what you're doing, then
(41:08):
you absolutely should not go it alone and give us
a call for an Absolutely I've said too many absolutelies.
Speaker 6 (41:15):
No, absolutely, no obligation consultation by calling nine one six,
nine six seven thirty five hundred call seven seven five
four one five two six seven seven.
Speaker 2 (41:31):
I want to give a golden nugget or a stock
and a sector that I like. Do you have one
or is it only going to be my wisdom that's
going to share one?
Speaker 3 (41:41):
Can I guess that it might have to do with energy?
Speaker 2 (41:43):
Ah, you absolutely guessed it. My partner knows me very well. Listen,
it's no secret that the price of oil has come down.
And when the price of oil comes down, typically oil
stocks and and any sort of involvement with the energy
sect tend to come down. That doesn't mean that their
earnings is going to be down. That doesn't mean that
(42:05):
their profitability is going to be down. And it certainly
doesn't mean that the most important sector of any economy
period will not be energy. It is always the most
important sector. Access to affordable, cheap energy is crucial for
(42:25):
profitability in any business period. So this particular company has
been a favorite of mine. Our clients own it, I've
owned it, family owns it right now. But it's Marathon Petroleum.
It has come down, it recently was most of it.
Target's price was revised to be at what they were
(42:50):
or even higher. It's currently around the high one fifties.
It's got a target price of in the one eighties.
It also pays not a huge dividend, but you know,
with the dividend and the upside. You know, I like
this position right here to add a little bit to
a current position or buy a little bit of it
(43:13):
for the first time always you know, gobble slowly. What
I mean by that is we like five percent as
a rule of thumb, which we've said many, many times.
So you might come in with a one, two or
three percent position fully expecting more volatility in oil because
of what's going on in the Middle East, and be
(43:35):
prepared that if it dips a little further to dollar
cost average and buy some more. So that's my stock
idea for this week, and more importantly, I hope you
enjoyed listening to Giuseppe and I John Scambray and our
guest Alessandro's Chesser of Get Dynasty dot Com. Also on
(43:56):
a final word before I let Giuseppe have a final
word is don't make that trust decision on your own.
Come in for a no obligation consultation. Hey, we're gonna
give you our thoughts on it. Again, we're not attorneys,
but we have been doing this a very very long
time combined almost fifty years, so we know what to
(44:16):
look for, we know what advice to give you, and
there will be absolutely no obligation whatsoever.
Speaker 3 (44:23):
Think you wrapped it up.
Speaker 4 (44:24):
I hope everyone has a great weekend and looking forward
to talking with you next week.
Speaker 3 (44:28):
Bye all,
The Wise Money Guys Radio Show is brought to you
by One Source of Wealth Management SEC licensed three one
nine zero seven eight. For disclosures and more information, visit
our website One Source WM dot com.
Speaker 2 (00:13):
Welcome to the Wise Money Guys Radio Show. I'm your
co host John Scambra, and I'm here with my partner
Giuseppe Vesconti. We are certified portfolio managers that absolutely love
and specialize in helping people who are retired are about
to retire manage their investments. And we are really really excited.
(00:33):
And as they say in Boston, because I just came
back from a short trip and I hope you missed me,
even though Giuseppe did a great job.
Speaker 3 (00:43):
Miss with you maybe a little bit.
Speaker 2 (00:46):
So I know if you want to send in some
feedback that say, John can't, we can't listen without you,
I'd really appreciate that. But as they say in Boston,
this is going to be a wicked great show and
so well, the reason why this one's going to be
different and why you should definitely stay tuned for the
whole show is because we haven't done something like this
(01:09):
in a while, which is have a guest, a guest
who's a subject matter expert on a very important strategy
or strategies when it comes to managing your wealth. And
this particular person who will introduce here in a moment
is an expert on trusts. More importantly, an expert on
(01:30):
trusts where they're going to help you avoid estate taxes,
especially in California. Now this is tax mitigation, this isn't
tax dodging. And so before we get started, let me
turn it back over to Giuseppe. But I do want
to mention that there is nineteen days to the election,
(01:56):
and because this is a financial and economic show, we
do need to say that you know, it is going
to be a bit more volatile than normal, being an
election year, being one of the most contentious election general
election years that we've ever been in, so expect volatility.
(02:17):
I believe it will be a good time to buy
those dips on the really high quality big names, whether
it's the chip names, whether it's the energy companies, so
on and so forth. Don't be afraid to add on
these dips. And then hopefully, as in most general election years,
as in most fourth quarter of most years, there is
(02:42):
the thing that is called or what we like to
call the Santa rally, and I believe there is no
real headwinds out there. And this is where I want
to get you going, JOSEPPI to prevent this year from
having a Santa rally like we did last year. I mean,
what do you seem out there today?
Speaker 4 (03:01):
Yeah, I think a lot of it's going to be
dependent on the data around inflation. With the FEDS cutting
a half percent, did they do did they make the
right choice or did they make a mistake. The ECB
European Central Bank just cut rates for a third time
in a row. Recently they're looking to cut rates again,
(03:22):
So what does that say? And does that put more
pressure on the Fed? Data is coming in. The most
recent data that came in came in a little harder
than estimate, So, you know, does inflation tick back up?
We saw the ten year yield treasury go down to
like three six three six, and now it ticked up
over four percent and it's gyrating between a little bit
(03:43):
below and above that. So I think most of the
focus is going to be back on inflation. As far
as what can derail this, I mean, barring anything right, geopolitical,
some the conflicts around the world escalating to Yeah, and
then rising oil.
Speaker 2 (04:00):
Keep in mind that we've been talking about rotating and reallocating,
rebalancing a portion of your money from stocks to bonds,
and actually, over the last couple of months, bond rates
continued to drop the actual yields, but now we're actually
getting prices again that are where you could lock in
(04:21):
some decent rates in the fives. Not quite where they were,
you know, towards the beginning of the year when we
were getting six and seven, but we're still now getting
in the in the mid to high fives again. And
that's because when when you're seeing the ten year treasury
go up in yield, the price of bonds such as
(04:43):
treasuries or corporate bonds or muni bonds are going down.
So keep that in mind. But again, look for this
month to be, you know, maybe a little more volatile
than normal, and then of course look forward November and
December to be very very good. Santa Claus, come out
of town if you want to talk to us about
(05:05):
this conversation today and see how we can help you
with what we're going to talk about and how it
may fit into you know, your legacy and creating your
legacy wealth. Give us a call at nine one, six, nine,
six seven, thirty five hundred call seven seven five four
one five two six seven seven.
Speaker 4 (05:28):
So I wanted to bring in an individual Alessandro Chesser
with dynasty, and it's very timely, especially that you brought
up the election earlier, because we are in a paradigm
shift and depending if the current administration, oh I say
current administration, that's like a Ferrouidan slip, right, but you know,
(05:49):
if if Kamala wins or Trump wins, there's a big
diconomy and differences in policies. Part of that is what's
going to be coming down the pipeline. And twenty twenty six, right,
we have sun setting is the death tax.
Speaker 3 (06:06):
So we've had plenty of conversations.
Speaker 2 (06:08):
Is the size of the exemption for the death tax?
Speaker 3 (06:11):
Correct?
Speaker 5 (06:12):
Yeah?
Speaker 3 (06:12):
Correct?
Speaker 2 (06:13):
Where is it currently?
Speaker 4 (06:14):
By the way, I believe it's around twelve point four
and we'll have Alessandra chime in per individual, So if
you're a married couple, I think it's almost twenty five million,
but that can get cut essentially in half because it'll
go back to the Obama era. And so if you're
in that or projected to be in that realm, you know, right, now,
the way it's set up is for you know, your
(06:35):
beneficiaries will have to pay forty percent tax. We'll dive
more into the details. Back on Dynasty and Alessandra Cheshi,
what I'll bring in here in a few seconds is
they are revolutionizing how to get into and be able
to even just get a basic living revocable trust to
(06:57):
help protect you from probate. The biggest bear that we
see us, you know with clients that we talked about
is clients know they have to get the trust and
they know the importance of it, but like who do
they go talk to? And then are they going to
go interview all these attorneys and then do they trust
them and is it too much money or what have you.
So they are breaking that barrier of entry and then
they're going into the more complex of how can they
(07:18):
actually protect assets and mitigate taxes. So I want to
bring in Alessandro Chesser with Dynasty.
Speaker 3 (07:28):
Are you on with us? Alsandro?
Speaker 5 (07:31):
Thanks for having me.
Speaker 4 (07:33):
Thanks for being with us. So if you could start
off and just tell us a little bit about Dynasty.
You know what was an impetus to get Dynasty going.
How you're ruffling the feathers in the whole trust world
and where you're seeing sort of the opportunity just dealing
within that realm, and how you're helping to protect clients assets.
Speaker 2 (07:56):
And how you may help protect our clients assets on a.
Speaker 4 (08:00):
Preferace that I originally invested in this company a couple
of years back when it first started, just because I
thought this was such a great idea.
Speaker 3 (08:06):
Absolutely.
Speaker 5 (08:08):
Yeah. So this idea for me personally goes back about
twenty years to the very first job that I actually
had was actually during high school at Bank of America
as a teller. I went on to spend the next
about a decade just working for different retail banks, Bank
(08:28):
America well as far Ago, Washington Muchool Union Bank, and
I was always on the sales side of the retail bank.
Walk in, you have one side, you have the cash
operations tellers, and on the other side have the bankers.
I quickly made my way to the banker side and
spent you know, a good good part of ten years
working with you know, customers and high network individuals. And
(08:51):
it became very clear to me very quickly that you know,
there were such individuals they didn't hold their bank accounts
in their personal name they actually had trust set up,
and part of the bank training process was teaching you
how to you know, desight for these trust documents, like
what's the difference between the revocal trust and they vocable trust?
(09:13):
And so I learned a lot about trust. You know.
Fast forward to the second half of my career, I
ended up working for the Silicon Valley software startup companies.
The last company I worked for, you know, like joined
is the thirteenth employee. The company ended up you know,
growing pretty significantly over the course of about eight years
(09:36):
that I was there, and we you know, when I left,
they had a few thousand employees and uh, you know,
close to half a billion dollars worth of an overturning
revenue year.
Speaker 3 (09:47):
Wow.
Speaker 5 (09:48):
So that that company was and I ran shales for
the company for a majority of the time that I
was there. A company called Karda and Carda's you know
main mission was getting uh legal documents and turning them
into you know, digital format. It was like all this
old paperwork that corporate law firms you to generate for
startup companies and investors is paper stock certificates and paper
(10:11):
option you know, when you've got hired to startup company
a stack of paper and that was your auction brand, right,
And so when we get a Carda, we just digitized
it all these legal dogments made digital. It may accessible,
made seeper less legal fees, and you could log in,
you can see how much ownership you have. And so
it was during my time there that I was actually
presented with this idea for science in front of mine
(10:31):
and he's like, hey, here's another legal document we should
uh digitize.
Speaker 4 (10:36):
Right, that's exciting, and that's what you've what you've done
with Carda and private equity, and then we can dive
into how that's going to revolutionize the realm of the
old traditional way of papers and documents for trusts and
also the risk with that having just in paper and
how how it's you know, safer and secure and easily
(10:57):
accessible using digital.
Speaker 2 (10:58):
And we have a very exciting guests on Alessandro Chesster
with Dynasty and he's now going to talk about the
importance of trust work and how their company has revolutionized
the industry for people that have you know, assets and
things and they're really concerned about estate taxes, so on
(11:19):
and so forth. So Alessandro, go ahead and bring us
back into you were talking about your experience with Karta
and digitizing everything, and then you started digitizing trust legal
documents and how has that evolved from there?
Speaker 5 (11:34):
So that was the simple vision for this company. You know,
this is a set of legal documents that lawyers generated
for thousands of dollars for Americans don't have ad US.
Most most Americans that have simple will. And so the
idea is, we want to make Crust, you know, simple,
physical and affordable for everybody. And so when you think
(11:56):
about Crust and what they can actually do, the simplest
form of US is a revocable trust. And a revocable trust,
the easiest way to think about what it does is
to compare with the will. A revocable trust is better
than a will because a will has to go through
probate court when you pass away and your sultan or
(12:17):
your family want to get access to your assets, your home,
your bank accounts, whatever those gut that they if they
are not held in a revocable trust, then maybe each
state has their own limits or you know the probate
thresholds In California, I think it's like one hundred and
forty thousand dollars, like anything over one hundred and forty
thousand dollars in California.
Speaker 4 (12:38):
I think they bumped it up a little over one
hundred and eighty actually, so you know they're being generous.
Speaker 5 (12:43):
Yeah. So anything anything over that will have to process
the probate court system. The probate court system, in my opinion,
is the largest packs on non rich Americans that exist. Uh.
You know, if you pass anywhere from six to ten
percent of your entire estate, it can pay eighteen plus.
You know, I've seen I've seen some probate cases that
(13:04):
have been you know in probate for five plus years. Yeah,
so it cousits a lot of family friction because your
family are gonna have to turn up the probate court
and they're gonna have to make a claim for your
assets and usually result in a lot of family drama,
a lot of disfuse, you know, because there's a lot
of different interpretations. Well, you know, my father meant to
(13:25):
get there's another version of the will out there, and
I don't you know, it's hidden, it's lost in somebody's touch,
and so these things that end up getting tide in
court forever and there's no CRUs I think is like
these wills and the strussed on paperwork.
Speaker 3 (13:38):
You made an.
Speaker 4 (13:39):
Important point deciphering the differences between the trust and the will,
only because we literally just had a client meeting the
other day earlier this week, and a client has had
a trust for a long long time, and she kept saying, well,
you know, I have a will and so on and
so forth. But we come to find doubt the house
(14:01):
wasn't under the trust, so the deed wasn't under the
name of the trust. You know, some of her bank
accounts were under the name of the trust. So there's
a miss right, and there's a misconception that sometimes people
will go out and get a trust and they think
I've done my duty, I'm good, everything's protected, and they
don't realize that they actually have to go to either
the state, the counties or financial institutions, bring in that
(14:24):
copy of the trust and say, hey, I want to
retitle my asset under the name of the trust.
Speaker 5 (14:29):
Right you need in France for all assets and you're
all titled. Accests must be transferred into your trust. If not,
then you don't. You didn't exactly, you've basically created a will.
If you if you don't find your trust that felt important,
you know, when I'm to real estate with the most
Americans that the most diable ashes they have, it's their home.
(14:49):
You know, you need to make sure you use a
good either an attorney or utilize a you know, a
fight like ours. Uh and the work what does?
Speaker 3 (15:00):
What is the site that people can go to?
Speaker 5 (15:03):
Yes, Dynasty dot com.
Speaker 2 (15:04):
Okay, and by the way, if if you're a client
of ours, we will actually you know, make the payment
on the creation of the trust.
Speaker 4 (15:16):
But that is one nuance or big difference between Get
Dynasty going to get Dynasty dot Com versus you're going
to an attorney, especially if it's a simple basic revocable trust,
right because people can literally go on the website and
right up, right up and have everything and go to
the whole template boiler plate and create their own liver
(15:37):
living revocable trust for for what for? What's the cost
on that?
Speaker 5 (15:41):
And you're being preyed a simple free revocable trust in
less than ten minutes you're followed on our website. Wow,
you know we do have both graded packages. You know,
if you want customer support, if you want to get
it remotely motorized, if you want us to help you
transfer your home and your trust. You know, those are
all going to be of the upgrade package. Awesome, But
(16:02):
in general, if you just want to go on a
grey free one and get your own daughter and get
your own transfer, like it's only free place, you're going
to be able to do that.
Speaker 4 (16:09):
And what about the you know, the security right, most
people will get a trust like I did. I originally
got a trust it's a paper trust, and then I
put it in a in a file cabinet, you know.
And then my wife as you know, uh, she grew
up in Paradise, California. Most people know what happened in
twenty eighteen with Paradise, California. Everything burned down.
Speaker 6 (16:30):
You know.
Speaker 4 (16:31):
Luckily her parents had just moved out, you know, eight
months prior to that event happening.
Speaker 3 (16:36):
But had they had a you know, their paper.
Speaker 4 (16:38):
Trust and it was sitting in a in a saye
for file cabinet, I mean that would have been dust.
Speaker 5 (16:44):
Yeah. That was the biggest problem with the the old world. Right,
everything's on paper, and if you lose that paper, you
have nothing. I think that like paper fax, you lose
your paper sacks. To this day, you lose your investments.
It's the same thing with fuss today you're trusting it
on paper, it's going to be vulner So not only
can it your house burned down or you lose as occupants,
(17:05):
but it can also before somebody can grab it and
Frank Forbs. But this is that there's no version controls.
Like if you update your trust and you're updated again,
you update again and then you pass away, you're gonna
be like, okay, well which one is the right version? Well,
we don't know if there's a newer version out there,
we can still know where it is. It might be
in his car and Brook who knows true? And so
(17:25):
that's why trust to end up being challenged very often.
That's why they end up probate fors no versions school.
It's one of the big things that we wanted to
solve with our platform is like every time you're going
up to your trust, you're going through a digital identification.
There's version control. We can see exactly what the Laates
version was that you can access it from anywhere in
the world.
Speaker 3 (17:44):
Wow.
Speaker 2 (17:44):
So you know, we've been talking about the basic benefits
and why just about everybody should have at least a
revocable trust, but what about the people that have you
know more means that are concerned about what Giuseppe talked
about in the very beginning, the estate tax exemption reverting
(18:06):
back to the Obama years. How does your system, your
service help with those folks that and we come across
them where you know, you have a multiple seven figure
or or greater net worth. And it's also about you know,
the estate tax that you might pay, should you you know,
(18:30):
pass in these later years where the estate tax abxemption
has gone way way down, how will your platform help
with that?
Speaker 5 (18:41):
Yeah, So the death tax exemption if sets expire next year,
the next year, it's set to drop from about thirteen
million to about seven million. Right, this is huge because
anything if you pass away every dollar over that seven
(19:01):
million dollar rifle is potentially going to get packed at
forty percent. That's on a federal level forty percent. You know,
go have your money that you know, Cristy dr should.
Speaker 2 (19:13):
Yeah, especially when you start your in state and if
you look at like real estate investors and things like that,
or maybe you're just one who's lived in your Bay
Area or southern California or Tahoe home for a very
long time and now you're looking at you know, just
your home might be worth the five million or four
(19:33):
million dollars, and then you add a company stock or
your company stock, you add up your retirement accounts, all
these things, and you're starting to go, well, shoot, I'm
worth ten million dollars, and you know if the exemption seven,
I'm going to pay forty percent or my heirs are
going to pay forty percent on the three million, and
that's a million two that has to be liquid correct
(19:56):
to pay off the irs. Should that be your situation.
Speaker 5 (20:02):
That's right. And what ends up happening in these equations
is people you know that have some real estates, some
businesses they pass away. It has to be because that
tax goal is going to come do pretty quickly those beneficiary.
So they basically have to fire or scale the assets
like whatever I think, sell the real estate, sell the
restaurant that my father owns, just to pay for the taxes.
(20:24):
And so the smarter thing to do. And there's currently
a big rush of you know, ppa selling clients. Get
the assets out of your name. Now, well, the exempt
in is high, Well it's thirteen I think it's roughly
thirteen point five million dollars in twenty twenty four. And
you know, this is especially important for people who have
appreciating ass the high growth assets like in you know
(20:46):
in in the area they have a lot of startup
employees and then you know they maybe have a company
that you know their stock position may be worth about
a million dollars. Well like twelve months that million dollars
can be worth ten million dollars. Companies can grow very quickly.
And so the problem is if you wait and then
you try transfer out of your name later, it's going
to be subject even if they're not dead. And so
(21:10):
the CPAs are calling their clients is they get the
assets out of your name now put them into an
irrevocal trust as a gift for your family or your children.
That way, when those assets can see you to appreciate,
you never have to worry about transfer taxes. Is a
specific type of irrevocal trust that we create our new
data irrevocal trust and those that can exist for grandred
(21:31):
and sixty five years. They never they never have to settle,
they never have to pay transfer that wow.
Speaker 2 (21:37):
So if you would like a consultation with us and
also get information more specifically to your situation, give us
a call at nine one six ninety six seven thirty
five hundred. Call us at seven seven five four one
five two six seven seven. You're listening to the Wise
(21:57):
Money Guys radio show. I'm your co host John's Gambre.
I'm here with my partner Giuseppe Visconti, and we're also
here with a special guest, Alessandro Chesser from Dynasty Get
dynasty dot com, and we've been talking about the importance
of having a trust. No matter how big or financially
successful you are and your legacy is, it's important to
(22:22):
have a trust. And it's even more important if you're
a larger you have more means in real estate or
stocks or retirement and greater assets to have that trust,
especially with the estate tax exemption going down. Now. The
website get dynasty dot com is a do it yourself
(22:46):
and you may be thinking, well, I really don't want to,
you know, chance doing this myself, that I make a
mistake and don't do it right. Well, that's where we
come in as your advisor to help you with what
you need and what you want to design, uh for
creating that that living trust for you. So call us
(23:10):
at nine one six nine six seven thirty five hundred
for a consultation call us at seven seven five four
one five two six seven seven. So let's just kind
of finish the the the the benefits of this, and
so we can get Alex Alessandro Alex for short going.
(23:31):
But again getting to using, Uh, how is the user experience?
I mean, what do you have to do? Do you
create a log in?
Speaker 3 (23:39):
First?
Speaker 2 (23:40):
Do you how do you sign up and potentially benefit
from from your website specifically?
Speaker 5 (23:47):
Yeah, got to good Dynasty dot com and you just
sign up. The first thing you do is you enter
your phone number, you get a text message with the TODE,
and you log in, you straight your account and then
we walk you through. You know, we put everybody straight
into a revolt trust create workflow like everybody, we think
everybody needs a simple revolvable trust. And then in that
(24:09):
setup for the revulcable trust, you know, we have gathered
your asset information and that's what we determine whether or
not you could simply benefit from a Nevada Dynasty trust
as well. That's a specific type of irrevolcial.
Speaker 2 (24:22):
That a little bit more and what the benefits of
that are.
Speaker 5 (24:25):
Yeah, So the specific type of trust that we are
creating on the irrevolcal side. And so one of the
game is we just get a bunch of research and
we talked to some of these billionaire investors that we
have or what's the ultimate what are the best for us,
like the average person to us. And so that's a
directed Nevada Dynasty trust. And so there was the kind
(24:47):
of a complex name. The directed part of the name
specifically refers to the fact that it is a directed crust,
which means somebody directs the trust here on what to do,
which is very important. That means just this is full mechanism,
so that you're not just turning away that your vocal
trust or a random trustee who has full control. No,
you're actually establishing who's going to be telling that trustee
(25:09):
what to do. And so that could be you know,
you could be the investment director for your trust, assign
your your father, your mother to be the trust protector.
But he's just been putting these layers of control. And
that's an important piece of the trust that we created.
It allows you to retain that sense of control. Uh,
the other parts of the name the Nevada Dynasty for us,
(25:30):
you know that that ensurgs that you can take advantage
of Nevada law which Nevada is zero tax state, zero
income fact, zero gived impacts and zero tap gains tax.
And it also means you can take advantage of Nevada
laws for active protection. That is the number one state
in the country. Is when it comes to basic protection,
there are no steps in creditors, not even for fossil
(25:52):
support or uh, you know, any things that can come
from a divorce like a Nevada trust protective dat.
Speaker 2 (25:59):
Okay, this is crucial because this is where I believe
you should absolutely give us a call so that we
can help you determine, along with Dynasty's help, whether or
not you should have this more complex trust. And again
being that more complex trust is the is the is
(26:19):
the digital documents that the site creates. Is that still
no charge or what are the additional packages when you
get into something more complex?
Speaker 5 (26:31):
Yeah, so if you need a irrevocable crust a dynasty trust,
starting packages a thousand blucks, but it can range up
to ten thousand blucks. We also, you know, we operate.
Speaker 4 (26:43):
Versus what's the typical charge if you go into the
attorney to get those complex trusts?
Speaker 5 (26:48):
Yeah, compared to ten thousand dollars plus associated some instances
the customers in twenty thirty forty fifty thousand dollars just
to create at a dynasty.
Speaker 3 (26:59):
Difference and the other the other point.
Speaker 4 (27:02):
And I know we've talked about it before because you
were explaining this to me that I want you to
get out. There is the tax benefits, but then also
the dynasty trust and you said that last three hundred
and sixty five years. But the example of you know,
if you want some sort of control and you have
where the assets go and the assets within, it also
(27:22):
has the tax benefits as well when you're growing those assets.
Speaker 3 (27:26):
But maybe maybe.
Speaker 4 (27:27):
They want to have certain parameters where you know, kids
are grandkids, you can pay for education or down paying
for a house or those sort of things.
Speaker 5 (27:35):
Right, Yeah, So our standard package for the irrevocable trust,
it's directly out of like the way these dynasty pruss
are typically created. The distribution mechanism after that called ten
it's health, education, maintenance as the court. So we've like
really gone in behind that, like you know, you can
get help, the kids can get healthcare paid for, they
(27:57):
get they can get down came in for a home,
they can get rent, they can get a loan to
start a business. But what they cannot do is they
cannot take that money out and spend it on you know,
gambling for it's the vegas or vacation of why they
can't blow the money basically anything like that. Ye sorry, No,
that's problem with the typical trust that are created. They're
(28:19):
not very specific on making sure that the trust stays
alive and can provide support not only through children, but
there are children and the children that they have and
to being able to crase this multi generational extremely packed
to fiction in vehicle that never has to pay creating
death transfer taxes, never has to pay states in somewhere
tapped games tax and can provide for multi generations. And
(28:45):
you know that's why call the Dyansty trust. This is
what the ridges standing is, what the billionaires is. The
Rockefellers used right, right, Beef Bezos, the founder of Amazon,
you look up his gians trust runs about heavily like
these are what the richest people use, and that this
is the number one way to create multigenerational wealth and
that's why we run.
Speaker 4 (29:02):
That's awesome, So get Dynasty dot com right. It's been
around for maybe for a couple of years or so,
But what happens if get dynasty disappears? What happens to
those people's trust? We get that question sometimes as being on.
Speaker 2 (29:15):
What happens if we disappear? And we you know, because
we're an affiliate of one of the largest brokerage firms
in the country, there is no you know, uh downside
if we're not here upset for losing our expertise, advice
and and and great service. But what happens in in
your case, Alessandro, Like.
Speaker 5 (29:35):
It's just like if you're a lawyer, then you go
see like stops tracking law like you go out of
your trust, like you still you know you we're digital,
but like you have a paper crust, you can frint
out it any time and you can just file it
in your filing gablet like you used to do. The
different is is we have the digital and the paper
right and so if we go out of business, you
still have the bing just have the same thing you
would happen if we did make it. God, and you
(29:58):
know that's that's the important component is the software layers
which adds to the typical paper layer that you already have.
Speaker 2 (30:05):
And here's the thing that I want to finish with
and thank you very much Alessandro. Alessandro from Chesser his
company get dynasty dot com, which we are big believers in.
Giuseppe is an investor in. For full disclosure is that
even though this may sound simple, that hey, you could
(30:26):
just do it yourself or whatnot. When it comes to
investing and planning, I highly suggest that you work with
folks like ourselves to help you with the decisions and
the designing of these things. We are not lawyers, however,
you know because of our decades of experience with working
with people of all means, from you know, average means
(30:49):
to extreme wealth, We've seen all kinds of trust and
trust work, and we will be happy to help you
decipher and termine what what do you need that dynasty
trust or do you need just the simple irrevocable trust.
Please give us a call at nine one six nine
(31:10):
six seven thirty five hundred call us at seven seven
five four one five two six seven seven. Thank you
very much Alessandro for your time, and I hope you
enjoyed hearing about the importance of having a trust. No
matter how big your wealth is, you just don't want
(31:30):
things to go through California probate.
Speaker 3 (31:34):
And any probate doesn't matter.
Speaker 2 (31:35):
What stay your very very good point. And so if
if that sounded like over your head, and some of
it may have been, which would be normal, make sure
you absolutely give us a call at nine one six
ninety six seven thirty five hundred call seven seven five
four one five two six seven seven. We do have
(31:58):
a point of clarification on the current exemption, which was
what Joseppe.
Speaker 3 (32:03):
Yeah, it was.
Speaker 4 (32:03):
It used to be a twelve twelve point four to
twelve point five, but with inflation and everything, everything gets adjusted,
which is better for everybody. But it's thirteen point six
one million per individual. If you're married, you double that, right,
so over twenty seven million, twenty seven point two million,
meaning if your overall a state, if you sold everything
and piled your money in one big mound, and that
(32:25):
equated to over that amount if you're married, twenty seven
point two million. Anything above them beyond that mount. Current
with current tax code is tax at forty percent, but
once if nothing changes next year, if nothing changes, then
that will sunset and at the end of next year
that'll go go away and be cut basically in half. Now,
(32:49):
why is this all important. The last segment, you know,
the last show from last week, I talked a lot
about financial planning, and again, like John mentioned, we are
not lawyers and attorneys, we are not the ones that
actually put the trust together. But part of what we
do is not just portfolio management and asset asset management,
but it's the importance of having that blueprint, that financial plan,
(33:11):
and part of the financial plan process is also discovering
what are all your assets and what does your state
look like? But then also do you have a trust
and if not, what are some of the things that
you need to consider when getting a trust and how
to go about right And then you're well more equipped
to go out there and you're armed to build out
(33:32):
that trust, whether it's a living revocable or you want
to get into more complexity revocable or dynasty trust, so
on and so forth. And we actually have part of
our financial planning software and processes showing some of those
flow charts of Hey, if you didn't have a trust
and you went through and your state went through probate,
this is the ramifications.
Speaker 3 (33:49):
This is what it can look like.
Speaker 2 (33:51):
But more importantly, throughout the rest of your life, if
you're starting to work with us in your fifties or
sixties or forties, and we're projecting out that with our
portfolios and the amount of time that you're projecting maybe
to hey, I suspect my life expectancy to be ninety.
You know, you could end up when you look at
(34:14):
you know, basic appreciation, basic average returns, and growth assumptions,
you may easily end up above the seven million dollars
after the exemption sunsets back down to the lower amount,
especially if you are in the Bay Area, especially if
you are working for a startup that's going to go public,
(34:36):
whether you know it's in Northern California, Nevada or southern
California or wherever the place may be. We can help you,
you know, evaluate and project whether or not you'll need
you know, more advanced trustwork. And as our guest Alessandro said,
it's important to set it up now. If we're projecting
(34:58):
that you are going to have a net worth greater
than the estate tax abxemption in the future, than trying
to do it in the future, because then you're gonna
pay tax on trying to transfer the ownership of the
holdings at that point, and it will defeat the purpose,
it would be too late. So call us at nine
one six, nine six seven thirty five hundred, call us
(35:22):
at seven seven five four one five two six seven seven.
This is important. It will be I mean, no matter
who wins this this election, and I shouldn't say no
matter who wins, but if one, you know side from
a tax perspective, wins, it's going to be even worse
(35:43):
than if the other side wins from a tax perspective.
Either way, you want that minimum, you know, revocable trust
just to avoid probate if you're here in California, and
then more importantly.
Speaker 4 (35:57):
Or novad I mean I think it's I think Nevada
is around two hundred thousand. So any asset that's greater
than around two hundred thousand that goes through proba and
you just don't want to go through that process.
Speaker 2 (36:07):
I mean, your your morning, yeah, right, And if you're
worth two or three million dollars right now, because you
know you got you got a million or a couple
of million in your retirement, you got a house worth
a million or a couple of million, with many many
Californians and Nevadians do and again elsewhere as Giuseppe has said,
(36:28):
you got to be prepared and have this planned for now,
give us a call at nine one six ninety six
seven thirty five hundred call seven seven five four one
five two six seven seven. All right, So my favorite
thing is always to talk about investments, of course, and
(36:49):
how you know the economy is doing, and what sort
of financial concerns and and things to look for. And
so you know, right now, Joeppe, we're getting back to
that point where the S and P, the Dow, the
nastacs starting to look lofty, and their valuations and their
earnings multiples again. And we saw this already, you know,
(37:11):
this year. And typically, as I said in the beginning
of the show, October can be a very volatile month,
and we typically you know, have a good fourth quarter
in the form of a you know, a November December
or even a December you know Santa rally like we
had last year. But if I'm thinking about last year
when we went into November and December, the market had
(37:35):
already pulled back substantially in August and September, I believe
it was, so you know, to go back up a
Santa rally was certainly you know, and never guaranteed, but
it was a lot easier from the perspective that things
had gone down. Now Here we are with things very
lofty and valuations starting to get rich and earnings multiples
(37:58):
starting to be high again in and and you look
at okay, well, we're a little bit from from a
dynamic perspective different than we were last year going into
the last couple of months of the year. So this
is where if you've been going it alone and you're
starting to get concerned about the profits and the year
(38:19):
that you've had, it's crucial that how you set up
for next year, you know, helps you have an additional
good year next year and beyond. You don't want to
give up those profits because you just think this market's
just going to keep going and going and going, and
more importantly, you don't want to miss out on We
thought it was gone right. The bond the bond rates
(38:41):
that we were getting.
Speaker 4 (38:42):
Are well, a lot of them are gone, but they've
come but they've come back a little bit as far
as pricing. But yeah, I mean that window has been closing.
I mean, does it come back a little bit, you know,
if inflation starts ticking back up. You know, was the
previous week of inflation data one off or is that
going to start your trend? We'll come to find out.
As far as overevaluation, Piper Sandler, which is an investment firm, says,
(39:06):
currently right now, with the levels as far as SMP
five hundred, we're eight percent overvalued on the technical on
the as far as fundamental side, right if we're if
you look at a technical chart, s and P five
hundred above five thousand and seven sixties considered bullish. If
we close below that, then we can start breaking down.
(39:28):
Where would be the range from there around fifty one
hundred or a little above fifty one hundred. But into
coming into the election, we're really close to it. You know,
things can get and we're not exactly completely out of
the volatility season, which we've talked about before. Between end
of July and into October. You know, November December is
(39:49):
usually with that Santa rally starts to come. But there
is a lot of there is a lot of potential
for a black Swan event to happen. Right, does war
escalate in Russian Ukraine? Does war escalate?
Speaker 3 (40:00):
Yeah?
Speaker 2 (40:00):
And also there's always that kind of October surprise and
who knows what that will be. I mean, does does
Israel finally, you know, bomb the nuclear weapons facilities in Iran?
That's certainly a possibility and one that's being speculated about.
And then how would that affect the market? Initially, the
(40:22):
market and people and investors and institutions, would you know,
tend to move to safety because of the uncertainty of
how that could expand you know, in the in the
region or around the world. And so don't go it
alone here. There's been many, many great months this year,
(40:46):
but one month can take it all away. We've been
rebalancing and blending and taking risk off the table all
year to great success and very good returns. And you
should be two. And if you're not, because you're too
emotionally tied to your investments in what you're doing, then
(41:08):
you absolutely should not go it alone and give us
a call for an Absolutely I've said too many absolutelies.
Speaker 6 (41:15):
No, absolutely, no obligation consultation by calling nine one six,
nine six seven thirty five hundred call seven seven five
four one five two six seven seven.
Speaker 2 (41:31):
I want to give a golden nugget or a stock
and a sector that I like. Do you have one
or is it only going to be my wisdom that's
going to share one?
Speaker 3 (41:41):
Can I guess that it might have to do with energy?
Speaker 2 (41:43):
Ah, you absolutely guessed it. My partner knows me very well. Listen,
it's no secret that the price of oil has come down.
And when the price of oil comes down, typically oil
stocks and and any sort of involvement with the energy
sect tend to come down. That doesn't mean that their
earnings is going to be down. That doesn't mean that
(42:05):
their profitability is going to be down. And it certainly
doesn't mean that the most important sector of any economy
period will not be energy. It is always the most
important sector. Access to affordable, cheap energy is crucial for
(42:25):
profitability in any business period. So this particular company has
been a favorite of mine. Our clients own it, I've
owned it, family owns it right now. But it's Marathon Petroleum.
It has come down, it recently was most of it.
Target's price was revised to be at what they were
(42:50):
or even higher. It's currently around the high one fifties.
It's got a target price of in the one eighties.
It also pays not a huge dividend, but you know,
with the dividend and the upside. You know, I like
this position right here to add a little bit to
a current position or buy a little bit of it
(43:13):
for the first time always you know, gobble slowly. What
I mean by that is we like five percent as
a rule of thumb, which we've said many, many times.
So you might come in with a one, two or
three percent position fully expecting more volatility in oil because
of what's going on in the Middle East, and be
(43:35):
prepared that if it dips a little further to dollar
cost average and buy some more. So that's my stock
idea for this week, and more importantly, I hope you
enjoyed listening to Giuseppe and I John Scambray and our
guest Alessandro's Chesser of Get Dynasty dot Com. Also on
(43:56):
a final word before I let Giuseppe have a final
word is don't make that trust decision on your own.
Come in for a no obligation consultation. Hey, we're gonna
give you our thoughts on it. Again, we're not attorneys,
but we have been doing this a very very long
time combined almost fifty years, so we know what to
(44:16):
look for, we know what advice to give you, and
there will be absolutely no obligation whatsoever.
Speaker 3 (44:23):
Think you wrapped it up.
Speaker 4 (44:24):
I hope everyone has a great weekend and looking forward
to talking with you next week.
Speaker 3 (44:28):
Bye all,
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