Jason Howell, CFP®, CPWA®, CSRIC® (left); Doug Tees, MBA, CFP®, CAP®, CBDA (right)
Letter to Stakeholders, July 2024
Thursday, July 11th, 4:52 pm EST. Sometimes the news coming out of Washington, DC is really tough stuff. Over the past few weeks we’ve had U.S. Supreme Court cases that have changed the role of the executive and legislative branches and a U.S Presidential debate that itself may change history. We’ve had important news outside of our nation’s capital as well; previously unscheduled snap elections in the United Kingdom, France and Iran have adjusted our point of view on the direction of the world. All of this happened in just a few weeks while our stock market now surges to record highs buoyed once again by technology.
Supreme Court
“I am unaware that any nation of the globe has hitherto organized a judicial power in the same manner as the Americans. . . . A more imposing judicial power was never constituted by any people."
- Alexis de Tocqueville, French Aristocrat, Diplomat, Political Scientist
Our judicial system is unique on the world stage in its power and scope. Those of you who remember your U.S government class from high school (or law school) may recall that the power of judicial review is what gives our United States Supreme Court the power to undo legislation, rules and laws deemed unconstitutional. It was none other than the protagonist of Tony Award winning Hamilton who himself advocated for judicial review. Then in 1803, the Supreme Court case Marbury v. Madison enshrined the court’s power to reverse law, into a law.
Hamilton’s Federalist Papers have been used to defend the court’s decisions to disempower agencies like the Securities and Exchange Commission (SEC) that regulate the work we do and the bad actors we protect our clients from. The ramifications of these recent decisions on financial, climate and public life in general remain to be seen. I’m in the middle of many books but the one I am inspired to pick back up one called Supreme Inequality a 2021 book on the partiality of the court. Perhaps you’d like to join me and we can discuss its contents over (ice) coffee.
Why have I spilled all of this “ink” on the Supreme Court this month? In the triumvirate of power there is law, money and people. The greatest among these now is law. In service to your financial/life plan, we are paying close attention to what happens next.
Praise Publicly
June 19th is not only my wedding anniversary and recently a national holiday, it also happens to be my business partner’s work anniversary! 7 years ago the incomparable Doug Tees accepted an opportunity to work for a startup where he would eventually become partner and indispensable leader. No matter what you say – and some of you have actually said it – I know between the two of us Doug is your favorite (he’s my favorite too). “Doug, thanks for helping turn this firm into a virtual family office that can compete with some of the most well-known private banks and wealth advisors.”
In other news, Donna Camacho has taken a leave of absence for the foreseeable future. After a few too many family challenges, including the loss of her 14-year-old dog, she’s taken a step back from office work. We have wished her well but will likely soon partner with another organization to support your current and future needs.
Stakeholder Spotlight
On June 26th I had the opportunity to interview Dr. Shaywana Harris-Pierre, a Certified Financial Therapist (CFT-I™) who is specializing in family therapy as it relates to financial psychology and family systems. To listen to the interview, just click here.
Next Tuesday I will interview our latest Strategic Partner, Christopher Holtby, Co-Founder of Wealth Advisors Trust Company. Christopher will walk us through the benefits of using a non-bank trustee for your trust. Can You Trust Your Trustee?
Spoiler Alert: there are many options for managing family trusts.
Jason J. Howell, CFP®, CPWA®, CSRIC®
President
Jason Howell Company is a family wealth management firm that strengthens the finances of families making the transition from first generation success to family wealth. We envision a world where wealthy families give, grow and govern themselves in ways that enrich their local communities. We do this by reducing the fear, isolation and guilt associated with financial success.
Jason J. Howell, CFP®, CPWA®, CSRIC® and Douglas W. Tees, MBA, CFP® CAP®, CBDA have spent a lot of time in the Washington, DC area, and are aware that many people who are first generation wealth suffer from a kind of "financial imposter syndrome." Successful entrepreneurs and family businesses are always looking over their shoulder; government contractors worry about the next contract; former Capitol Hill staffers privately wonder if they should "feel bad" for the money they now make. Imposter syndrome is common among people who work for the many corporate headquarters based in this area as well. These feelings get in the way of properly managing family wealth. We empower them to get organized, build a team of advisors and make decisions.
Our typical "first generation wealth" families include dual income parents who work, save and have just the right amount of fun. For long-time, family owned businesses we focus on much family preservation as we do wealth preservation.
First generation wealth success stories and family business owners realize that they:
- Need to “do something” with the cash in their checking/savings
- Need to eventually diversify their portfolio away from the family business
- Need an investment strategy for “up” and “down” markets
- Need a plan to mitigate market, credit, inflation, and political risks
- Need to start tax planning instead of just tax paying
- Need to be sure they are choosing the right work benefits
- Need to reduce financial miscommunications between family members
- Need to separate business finances from personal finances
- Need to separate family wealth from individual wealth
- Need a plan to provide space for both family and individual philanthropy
- Need to plan for money while alive and for what happens after death