Insider Finance - Business - Wall Street: How the rich avoid taxes

The latest in finance.
View in browser
INSIDER
Subscribe

10 THINGS ON WALL STREET

Morning all! I'm Jeffrey Cane, stepping out from behind the 10 Things on Wall Street newsletter curtain to help catch you up on all things financial today.

Wall Street may be bracing for a sobering day of third-quarter results later this week, but there's still a lot of forward-looking initiatives going on, including pushes into crypto and private banking and the boom town that is "Wall Street South."  Ray Dalio, meanwhile,  says he will still be an active investor, post-Bridgewater.

But first: Could I interest you in some life insurance? 


If this was forwarded to you, sign up here. Download Insider's app here.


A three-generation rich family strolls down a boat dock on a sunny day

1. How do the ultra-wealthy shield their immense fortunes from taxes? Yes, life insurance is one answer, but it's life insurance with a twist. This little-known tax tool, which may be coming under increasing scrutiny,  is called private placement life insurance, or PPLI.  It is effectively a life insurance policy that is owned by an offshore trust. Assets that are put into the trust are treated as premiums, explains Insider's Hayley Cuccinello. 

When structured correctly, the assets in a family's  policy – whether they are stock holdings or luxury yachts – can be passed down to the children without incurring estate tax.  That can mean savings in the tens of millions of dollars. 

Michael Malloy, a wealth advisor who specializes in PPLI, told Hayley that he advises that clients have at least $10 million in assets to make this tactic worthwhile.

A tax tool for the very rich will not find friends in every corner, however. And that is the case with PPLI, which has caught the attention of Sen. Ron Wyden. The Oregon Democrat has started an investigation into PPLI, saying that he is concerned that "these insurance vehicles are being used without a genuine insurance purpose to invest in hedge funds and other investments while avoiding billions of dollars in federal taxes."  

Read more about what the PPLI fuss is all about here


In other news:

Ray Dalio

2. Ray Dalio is still in the game. "I love the investment game, so I'll keep playing it," the founder of Bridgewater Associates told the Greenwich Economic Forum. Dalio recently stepped back from the hedge fund behemoth but said in his talk on Tuesday that when it comes to investing,  "I'll keep doing it, coming up with my ideas, and so on."

3. Take a tour of  "Wall Street South." Ken Griffin's announcement in June that he would be moving the headquarters of his Citadel empire to Miami from Chicago has swung a spotlight on Miami's financial district, Brickell. Insider's Alexandra Hurtado explored the neighborhood (and took photos). Yes, there are steakhouses.

4. Check out Step, a banking app for teens that's backed by TikTok star Charli D'Ameio and Stephen Curry. Step has announced $300 million in debt funding and the launch of a new service through which crypto — and eventually stocks — will be available on its app.

5. Citizens is expanding in wealth management. The bank is introducing a new private banking offering aimed at customers with $200,000 or more in deposits and investments.

6. Amazon has been on an extended shopping spree with deals for One Medical and iRobot among others. Who's driving its M&A machine? Insider spoke with more than a dozen people to glean insights into Amazon's dealmaking team and its strategy.

7. America's oldest bank is now into crypto. Bank of New York Mellon says select clients can hold and transfer Bitcoin and Ether. It's the latest initiative under the bank's new CEO, Robin Vince, who Insider profiled recently.

8. Credit Suisse's headaches grow.  Analysts at Goldman Sachs estimate that the buffeted Swiss bank could face a capital hole of as much as $8 billion in 2024, according to Bloomberg. The analysts say it would be prudent for Credit Suisse to raise capital as it explores a radical overhaul of its investment banking business.

9. Angel investing is no longer just for the superrich. Putting as little as a few thousand dollars into a promising startup is becoming more common

10. Hey! Are you still reading this, or what? So sorry about that, but it's true: The pandemic has made us grumpier and more unpleasant, new research shows.


Keep updated with the latest business news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief. Listen here.


Edited by Hallam Bullock (tweet @hallam_bullock) in London. 

Older messages

The pandemic has turned us all into jerks

Tuesday, October 11, 2022

Plus: Amazon's second Prime Day starts and Compass is in a precarious position. View in browser Subscribe Only fascinating stories Nicholas Carlson October 11, 2022 Good morning! Welcome to Insider

Insider's new daily newsletter is coming your way

Tuesday, October 11, 2022

Only fascinating stories — coming right to your inbox. INSIDER INSIDER Hello! We're launching a new weekday newsletter, Insider Today — a roundup of the most fascinating stories of the day, curated

Wall Street: Inside Compass' cost-cutting woes

Tuesday, October 11, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Good morning! This is Kaja Whitehouse reporting to you from New York City, where real estate isn't just a

Last chance: Insider's new daily newsletter, launching tomorrow

Monday, October 10, 2022

Only fascinating stories — right in your inbox. INSIDER INSIDER Hi there! Our brand new flagship daily newsletter is launching tomorrow, and we wanted to make sure you don't miss our first edition.

Wall Street: The next gen of hedge fund leaders

Monday, October 10, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Morning! Michelle Abrego here. Founders of the largest hedge funds are eyeing their legacy and appointing their

Longreads + Open Thread

Saturday, November 26, 2022

Mergers; SAFEs; Twitter; Hacks; Cells; MF Global; Diff Jobs ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Oil’s weird decline

Saturday, November 26, 2022

Bloomberg Weekend Reading View in browser Bloomberg For investors keen to see the US Federal Reserve slow the size of its interest rate hikes, this week offered some hope. The bad news is that Fed

The real ‘Fed pivot’

Friday, November 25, 2022

Bloomberg Evening Briefing View in browser Bloomberg Beneath the surface of a Wall Street still crowded with bears, some money managers are reacting to the latest signs that a “Fed pivot” has finally

Printing Money and More

Friday, November 25, 2022

Printing Money, Equity Research, Petershill, Credit Suisse ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The nanny for the super rich

Friday, November 25, 2022

Plus: Russia's biggest tech giant wants out, and the best Black Friday deals. View in browser Subscribe Only fascinating stories Spriha Srivastava, November 25, 2022 Hello, Insiders. I hope you had

🍎 Musk shot an arrow at Apple

Thursday, November 24, 2022

Musk and Apple locked horns over in-app payments | German hopes have grown brighter | TOGETHER WITH Hi Reader, here's what you need to know for November 25th in 3:13 minutes. 🛍 You won't find

‘Bait-and-switch’ job interviews

Thursday, November 24, 2022

Plus: Disaster at 18200 feet, and Conan O'Brien's assistant. View in browser Subscribe Only fascinating stories Nicholas Carlson November 24, 2022 Hello, Insiders. Happy Thanksgiving!

[New post] Strengthening the resilience of market-based finance

Thursday, November 24, 2022

BankUnderground posted: " Naoto Takemoto, Simon Jurkatis and Nicholas Vause In less than two decades, the system of market-based finance (MBF) – which involves mainly non-bank financial

FinTech Weekly Issue #391 - Messy Times in Wall Street

Thursday, November 24, 2022

Issue #391 - Messy Times in Wall Street 2022-11-24 The FTX collapse hasn't just affected the crypto space, but also the traditional financial market. Of course, the fact that customers might never

🇨🇭 Short and Suisse

Wednesday, November 23, 2022

Investment banks warmed to Tesla's stock | Credit Suisse is headed for another hole | TOGETHER WITH Hi Reader, here's what you need to know for November 24th in 3:09 minutes. 🦃 Once you've