Tag Archives: WolfBridge Financial

What is Collaborative Divorce? The Video

What is Collaborative Divorce?

We spend a lot of time trying to explain collaborative divorce on the WolfBridge Financial blog and our new video follows that pattern.

WolfBridge CEO, Michael Kothakota, recently sat down to discuss in simple terms what collaborative divorce really is. In the video he specifically breaks down the difference between collaborative divorce and traditional divorce and explains the role of a financial neutral in the collaborative divorce process.

For additional free collaborative divorce information, check out the links below:

More Free Information on Collaborative Divorce Process:
–> Interdisciplinary Collaborative Divorce: A Process for Effective Dispute Resolution
–> Podcast: The Differences Between Traditional & Collaborative Divorce
–> Collaborative Divorce in Simple Terms
–> Who is Involved in the Collaborative Divorce Process
–> Financial Benefits of Collaborative Divorce
–> Podcast: Choosing Collaborative Divorce

Should I Buy Apple Stock?

We’re avid users of Apple products at WolfBridge Financial. From the iPhone, to the iPad, to the iMac, to the new MacBook Pro with Retina display – our business functions efficiently with a great deal of everyday help from Apple. Our CEO, Michael Kothakota, even penned a blog recently titled Steve Jobs: A True American.

At some point we may look back at August 20, 2012 and see that as the exact date when we should have seriously considered the merit of Apple shares.

Why? Because Apple is now considered the most valuable company of all time with stock rising 1.8% to $664.74 and pushing it’s market capitalization to $623.14 Billion.

Just a few days ago Jefferies analyst Peter Misek claimed a new iPhone announcement, that should come in mid-September, would boost his price target to $900.

Some analysts are even going as far to say that that shares could reach $1,000 with the launch of the new Apple TV product.

Should I Temper my Apple Expectations?

While Apple shares have no apparent reason to head in a negative direction based on their current 5 year growth trajectory – there are always reasons for concern when purchasing shares at such a high price.

That being said, there was a point not too long ago when Apple was trading at $7 a share.

Go ahead and do the math on if you had $600 worth of shares at $7 per share. We’ll wait.

That’s right. Your $600 investment in Apple would now be worth $56,562.

Is the time right to purchase some Apple shares? Contact us and we can give you our two cents.

In the meantime, check out this video from less than a month ago explaining when you should consider SELLING Apple shares.

Podcast: The Differences Between Traditional & Collaborative Divorce

WolfBridge Financial podcast

Divorce is a tough thing for anyone to go through. There are other ways to go through the divorce process, however, than the typical court battle most folks see on TV and in movies.

At WolfBridge Financial, we work with groups like Separating Together and the North Carolina Association of Collaborative Divorce Professionals (NCACDP) to promote the Collaborative Divorce process.

What is the collaborative divorce process? We answered that question a few weeks ago on this very blog. You can find it HERE.

In the Podcast below we want to dig deeper into the specific differences between Collaborative Divorce and Traditional Divorce. WolfBridge CEO, Michael Kothakota, answers some important questions that help differentiate the two processes and hopefully make your decision easier when choosing which route to take.


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1. What are the most basic differences in the two divorce processes?
2. Can you elaborate on the full disclosure clause?
3. How is the negotiation process different in collaborative divorces?
4. What are the different steps in the collaborative divorce negotiation process?
5. Why is the agreement made in collaborative divorce between ex-spouses considered durable?
6. How long are meetings in the collaborative process?

Despite Consumer Confidence Growth, We Still Fear Tax Hikes

According to a recent report from Bloomberg News, “the number of Americans saying the U.S. economy is getting better rose in March to the highest level since 2004 as a decline in claims for unemployment benefits offered more evidence of a labor-market recovery.”

The Labor Department showed jobless claims had decreased by 5,000 to 348,000 last week. That number represented the lowest since February 2008.

Despite those positive numbers, the fear of tax hikes coming down, and coming down soon, has consumers running scared.

Economic prognosticators are sure those tax hikes are coming soon due to tax cuts, wars, the recession and our growing population of retirees. Plus the federal government continues to spend more than it takes in.

These same experts say that in 2013 the top U.S. income bracket will go from paying 35% to almost 30%.

Tax Hike Fear Fueling Roth IRAs

Already the most popular retirement saving product, holding $4.7 trillion in assets as of the end of 2010, according to Mintel Market Research, Roth IRAs are gaining popularity as consumers look for savvier ways to protect their money.

Now read this breakdown from Ross Kenneth Urken on why consumers are doing the flocking to Roth IRAs:

The Roth Individual Retirement Arrangement is a retirement plan that allows you to withdraw money tax-free in retirement. That contrasts with traditional IRAs and retirement plans, that let you deposit pre-tax funds, but tax your withdrawals.

Now, in a traditional IRA, you can deduct your contribution (up to $5,000 annually) from your taxable income. But let’s think about the future.

There’s an old business school trick called the Rule of 72 for estimating how many years it will take for an investment to double: Divide 72 by your average return on investment percentage, and you have a rough answer. So, if someone earns 8% on a Roth IRA, — 72/8 = 9 — their money will double every 9 years. Thus, $5,000 invested at age 30 will become $10,000 at 39, $20,000 at 48, $40,000 at 57 and $80,000 at 66. If that were a traditional IRA, the investor would then have to pay income taxes on the $80,000.

With the Roth, you don’t get a deduction for your contribution, so you pay the taxes on the initial $5,000 you put in. Your investment grows the same way, but when you take money out, it’s tax free. Basically, you’re choosing between paying taxes on the seeds or on the crops.

The crux of the matter comes down to people’s belief that taxes will continue to increase. Based on that premise, it’s better to pay the taxes on your initial investments now, while rates are lower, than to wait and pay a higher rate on your total returns when you remove the money at retirement.

Bottom line – your Roth is never going to be taxed again, has capital appreciation as long as it grows and you get it back tax free. This means even more to younger workers who are unsure that Social Security will be available to them once they retire.


What do you think? Do you have a Roth IRA? How are you feeling about the economy in 2012?