05/16/2005

Hedge (Fund) Trimmers?

Hello:

It appears that much of the market pullback last week may have been related to Hedge Funds with non-performing investments in General Motors related securities. According to this week's Barron's Magazine, approximately eight times as many dollars are invested in mutual funds as are invested in hedge funds. Meanwhile, the bond market and the dollar appear to be supported by foreign capital buying U.S. Treasuries.

If your donor is over 70 1/2 and has an IRA that they do not think they will spend in retirement, they may wish to talk to their tax advisor about a new regulation that does not require them to include required distributions as part of adjusted gross income. This may allow them to qualify for a Roth conversion and give their heirs the opportunity for many years of tax free growth. Perhaps, having taken such good care of their heirs, they may have more funds available for philanthropy?

Terri G. Millson, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager