The Pros And (Mostly) Cons Of Mutual Funds

By Larry Lane for www.InvestorZoo.com

Why purchase a mutual fund?       

The chief reason investors purchase mutual funds are for diversification. A mutual fund may hold as little as twenty securities all the way to several hundred. These can include stock, bonds as well as cash. If your investable assets are under ,000, mutual funds can be an ideal tool to diversify your portfolio. By investing in a mutual fund, you are in fact paying for a professional manager or team of managers to oversee your investment. Since mutual fund companies have huge amount of money to invest, they may have the advantage of meeting directly with the CEO and upper management of a company before investing. This is certainly an advantage a mutual fund has over an individual investor. If you are busy living your life or don’t have the investment skills to research individual stocks, purchasing a mutual fund may be the ideal investment.

Need to sell quickly, no problem!       

Most investors think of a mutual fund as a long term investment. However, selling a mutual fund is as easy as selling a stock. If you place an order to buy or sell a mutual fund, you will receive pricing at the close of the day; not at the exact time you call to place the order. Mutual funds are considered a very liquid asset.

The pitfalls of mutual funds   

As with every security, mutual funds do have their drawbacks. While a mutual fund manager is bound to invest according to the mutual fund’s prospectus, you do not have control over what individual stocks your manager buys or sells. If you have an objection to a certain stock such your manager purchasing a tobacco stock, you have no recourse.

Hot one year, cold the next  

With a mutual fund, your money is pooled with other investors. This can create a tremendous problem for you as well as your mutual fund manager. Money may pour into a hot mutual fund you own. This may force the fund manager to hold that money in cash or invest in other stocks outside the fund’s intended purpose. This is generally the reason a top performing fund may suffer in its return the following year. Remember, your mutual fund company is all about their bottom line too. The more money they have in assets under management, they more fees they will bring into their firm.

In addition to inflows, there are redemptions your mutual fund manager must take into account. Should there be a mass exodus of the fund you’ve invested in, your fund manager must sell shares to pay the shareholders who have sold the fund. In many cases, a mutual fund may hold cash to account for redemptions. This may cause problems for you as well as it may put a drag on your total return.

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Taxes, taxes, taxes                        

One huge problem and perhaps the biggest drawback to investing in a mutual fund are the tax liabilities you will have at the end of the year. If you mutual fund manager sold stocks due to shareholder redemption or simply sold stocks because they feel that a particular stock within the mutual fund’s portfolio has reached its full potential return, your fund experiences a capital gain. This capital gain is passed onto you and you must claim it as such on your tax return; even if you haven’t sold any shares. These gains must be distributed to all share holders by the end of the year. Typically a mutual fund will report these gains in November or December. If you are contemplating investing in a mutual fund later on in the year, you must call and ask when their distribution date will occur so you don’t get stuck with a tax bill. Here’s a double whammy: if your fund had capital gains on some stocks but still suffered a loss in NAV (net asset value), you still may be liable to pay the tax for the capital gains generated early in the year.

Note: This only applies to taxable accounts. If you are a mutual fund investor and it is held in a non taxable account such as a 401k or IRA, the above does not apply as you are not taxed until you withdraw your money out of your retirement funds.
 

Most fund manager do not beat their benchmark          

If you are getting a little concerned about mutual fund investing, there’s more sobering news. Most fund managers do not beat their unmanaged benchmarks. Researchers at Standard and Poor’s did a study in 2006 and found that only 38% of large cap fund managers managed to beat the S&P 500 (the standard benchmark which a large cap fund manager would be judged against) over a 3 year period. Over a 5 year period that number drops to 33%. It gets much worse for small cap investors. Small cap mutual fund managers lagged their benchmark by 24% over a 3 year period and just 21% beat the corresponding index over a 5 year term. That means that over a 5 year period, you have a 67 to 79% chance of losing to an unmanaged index. In addition to the reason listed above, there is the human factor. Throughout the history of the market, investors have been seeking the holy grail of investing. If the highest paid smartest mutual fund managers haven’t found it after 100 years, chances are it doesn’t exist.

Fees and commissions           

As an investor, you are in effect paying fees to a company to professionally invest your money for you. I can’t think of a single mutual fund that sends you out an itemized bill at the end of the year. However by law, mutual fund companies must send out a prospectus detailing every fee they charge. If you have insomnia, they are highly recommended reading. Before investing, please call the fund company and consult with your financial planner. Get educated

The introduction of a new type of investment fund in Luxembourg in 2007 may be of interest to well informed investors and professionals within the investment industry. The new Specialised Investment Fund (SIF) has been introduced in reaction to a strong growth within the industry and will provide an alternative mode of investment.

The SIF is a flexible Undertaking for Collective Investment (UCI) that provides more elasticity than common UCI or SICAV. However, the SIF will be more regulated than alternative non resident private funds that have been established in foreign jurisdictions.

Supervised by the Commission de Surveillance du Secteur Financier (CSSF – the financial supervisory authority for Luxembourg), no promoter approval is required for the SIF. It is also important to recognise the difference between the SIF-Fund and the SIF-SICAV. The SIF-Fund is a fiscally transparent fund that is held in trust by a Luxembourg-established management company. The SIF-SICAV, on the other hand, is fiscally non transparent. It could also enjoy treaty benefit and enjoys tax exemption.

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To qualify for SIF-SICAV is should be incorporated as a Private Limited Company or similar, although it is also possible to have a single member company.

It is important to remember that, while the SIF can invest in any type of securities – including hedge funds, real estates and shares, it will not offer shares to investors unless they are professional and well-informed. Those that have been deemed acceptable candidates for SIF shares include but are not limited to institutional investors, professionals and investors that have proven their credentials by, for example, holding a valued position in a bank or management company.

There are a number of restrictions and factors that must be taken into consideration when choosing investment schemes such as the SIF. For example, it must obtain approval for its legal documentation and activities from the CSSF within one month of its launch. Additionally, the supervision of assets and the deposit of securities must be undertaken by a Luxembourg bank and the Central Administration should also be based in Luxembourg.

The SIF must also ensure that an annual net asset value and a report are published in the six month period following the year-end. The minimum capital has been set at EUR 1,250,000 and this must be attained within one year. However, contributions in kind are permitted.

The success of the principle investment of funds is attributed as the driving force behind the Luxembourg government’s decision to introduce the SIF and a number of well-informed investors and organisations are testing its potential for themselves.

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Bogey fears cost big bucks: study

Even the greatest golfers, including Tiger Woods, systematically miss the opportunity to score a birdie out of fear of making a bogey, a study by two University of Pennsylvania professors has shown.

However, playing it safe carries its own risks in golf and business, professors Devin Pope and Maurice Schweitzer said in their paper entitled: “Is Tiger Woods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes”.

The academics studied putts during pro golf tournaments and their research suggested the “agony of a bogey seems to outweigh the thrill of a birdie”.

They calculated that type of decision-making bias costs the average golfer about a stroke during a 72-hole tournament, translating to a combined loss of about .2 million in prizemoney per year for the top 20 golfers.

“This research provides evidence that people work especially hard in order to avoid losses,” Pope said.

The researchers found golfers avoid the possibility of loss by playing conservatively when they could do better than par but will try harder if they are at risk of coming in above par.

Pope said “loss aversion” is part of a growing field of behavioral economics, which explores how human psychology impacts markets and business.

In a business context, the professors said par might be equated to quarterly earnings or investors’ approach to selling or holding on to stocks depending on what they initially paid for the shares.

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The professors said their work challenges theories which suggest bias in decision making does not persist in markets.

They used data from 230 PGA Tour tournaments between 2004 and 2009, concentrating on 2.5 million putts attempted by 412 golfers who each made at least 1,000 putts.

Pope, who does not golf, and Schweitzer, who only occasionally plays, said the study showed even experts in a subject suffer from bias in high-stakes settings.

“The bottom line is this,” said Schweitzer, “If Tiger Woods is biased when he plays golf, what hope do the rest of us have?”

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Trompetterkorps der Koninklijke Marechaussee (The Band of Her Majesty Royal Netherlands Military Police) (Orchester der Königlich Niederländischen Militärpolizei) The “Colonel Bogey March” written in 1914 by Lieutenant FJ Ricketts (also known as Kenneth Alford), a British military bandmaster and director of music for the Royal Marines. The origin of the tune is without doubt british. A memorable feature of the “The Bridge on the River Kwai” movie is the Colonel Bogey theme, that’s whistled by the POW’s when they enter the camp. Police Tattoo South Australia 2006 Colonel Bogey March – German Army Band: www.youtube.com Hello,Le soleil Brille www.youtube.com

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Global Etf Research Website Launches In Australia

Exchange Traded Funds (ETFs) are fairly new to the trading arena and since their first introduction in the early 90′s they have seen a phenomenal rise in popularity. Due to their flexibility, ETFs offer a huge trading market, and like most things new, much remains unknown about ETFs. It is due to the lack of available ETF information which has seeded the launch of ETFFunds.com.au

At the moment, all ETFs are essentially index funds, which is to say they track the performance of a specific stock or bond market index or other benchmark. The first ETFs to hit the market back in 1993 were SPDRs, or “Spiders,” which track the Standard and Poor’s 500 index of large-company stocks.

The current issuer market is dominated by State Street Global Advisors, Barclay’s Global Fund Advisors, iShares and Vanguard. Everything is on offer such as ETFs which track anything from the entire U.S. stock market to various segments of it such as large stocks, small stocks, value, growth, energy, tech, utilities, and REITs.

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ETFs are also available which track developed foreign markets, individual countries or even emerging markets. They have also spread into covering the bond market (Treasury, corporate and Inflation backed). As one would expect ETFs are available which also track commodities such as gold, silver, crude oil, pork bellies and live cattle. There is approximately 150 ETF category types which means it can become very overwhelming and time consuming to locate the correct ETF investment which is suited towards your portfolio. Websites such as ETFFunds.com.au gather and filter all of the ETF market news and categorize it on an easy to use platform. The website also provides free charting and specific news for each ETF.   

Since ETFs trade on an exchange like stocks, you will need access to a trading platform to be able to buy or sell them. Introducing brokers such as Enfinium International provide direct market access to just about every ETF product from around the Globe.

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www.etfFunds.com.au is a website dedicated to ETFs. Whether you’re an individual investor interested in learning about ETFs or a financial advisor using ETFs for high networth clients the ETF Fund website will have the answer.

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Replacing Light Switches

Replacing Light Switches

 They just don’t make light switches like they use to. Haven’t you heard that one before! Well, it’s a fact in the case of light switches. You know when you need to replace a light switch when the switch simply does not turn on the light anymore or the light flickers when turning it on. Light switches that builders and electricians install in homes are the most inexpensive available on the market and their service life is about three years if the switch is located on a light circuit that is frequently used such as in kitchens, bathrooms, and entryways. They cost less than a .00 each, whereby good quality light switches cost approximately .50 or more and will last for ten or more years.

Nearly every home owner needs to replace light switches from time to time. He can either do it himself or call an electrician that will charge you just about a 0.00 to change a light switch. This is a simple task that any home owner can perform with ordinary household tools.

Tools required:

Screwdriver Long-nose pliers Voltage tester Wire strippers Wire cutters

Types of Electrical Switches:

There are three basic types of light switches used in homes:

a. Single-pole switch – which is the most common switch. It is identified by two wire terminals plus a ground wire. The toggle on a single-pole switch is clearly marked “On” and “Off”.

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b. Three-way or four-way switch – this electric switch is not marked “On” and “Off” because it depends on the other switch (s) in the circuit as to it is “On”  or “Off” being in an up or down position. They have three wire terminals plus a ground wire. This type of switch works in tandem with another three-way or four-way switch so power can be turned on and off from two or more different locations.

c. A Dimmer switch – this type of switch dims or raises the lighting level.  

How to Replace the Light Switch

1.  Remove power from the light switch by turning off the circuit breaker that feeds the switch. It may be labeled in the circuit breaker box, if not, turn the light switch on and off to ensure you have the correct circuit breaker. If the light goes out you have the correct breaker. If you are not positive check for voltage once the light switch wiring is exposed.

2.  Remove the light switch cover.

3.  Test for power using the voltage tester to insure that there is no power on the circuit.

4.  Unscrew the two screws that hold the switch in the box and pull the switch out of the box.

5.  Label each wire. If it is a single pole switch it has two black wires and a ground wire; green or bare copper. One of the black wires brings the current to the switch and the other takes the current from the switch to the light.

6.  Loosen the terminal screws and pull off the wires. If the wires are attached to the switch by the “push in” connectors cut the wires from the switch as close to the switch as possible.

7.  Remove the old switch and verify the new one is the same type.

8.  Put the wires on the new switch terminals and tighten the terminal screws. If you had to cut the wires you will need to strip about ¾ of an inch of the wire insulation away and attach them to the new switch by the terminal screws or push the wires into the “push in” holes.

9.  Install the new switch in the switch box by folding the wire into the box and replace the screws.

10.Ensure that no bare wire is contacting anything.

11.Replace the light switch cover.

12.Set the circuit breaker in the “On” position and test the new switch.

If the switch is a three-way or four-way switch there will be four wires; a black, red, and white, and a ground wire (green or bare copper wire) attached to the switch. Label the wires with a piece of tape before disconnecting them. Install the new switch in the same orientation as the old switch. Attach the wires to the switch and install the switch in the box. Install the cover plate and turn on the circuit breaker.

If the switch is a dimmer switch it could be a single pole or three-way switch. In either case it is wired just like the single pole and three-way switch above.

Mutual Funds articles

How to Buy Equity Indexed Universal Life Insurance

Don’t tell your stockbroker or mutual fund company, but the cash value portion of equity index linked universal life insurance (IUL) policies can be used to replicate a diversified portfolio, with lower cost and less volatility.  James Garfinkel, founder and CEO of New Amsterdam Life has been extolling the virtues of equity indexed universal life insurance for years, however it wasn’t until the recent market downturn that demand for these products really exploded.  “People are gravitating to products that can deliver above-average returns with lower risk,” observes Mr. Garfinkel.

Model stock portfolio returns are based on always being in the market, and consistently buying, even in times of market turmoil. The reality is most of us are not always in the market and we typically sell during a financial crisis rather than buy, and then we buy after the market is “safe” — sacrificing much of the upside of a post-crisis bounce.

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Is it any wonder your portfolio performance doesn’t match up to your fund company’s model?

IUL policies are linked to the performance of a specific index, like the S&P 500, so that if the index is up over a one-year period, the account will be credited a corresponding percentage up to a cap, currently in the range of 12% to 20%. If the index is down, the account will be guaranteed a certain base, or floor, usually zero to 2%. The policy does not directly participate in the market.

The combination of the cap and floor reduce volatility as opposed to owning the basket of stocks outright.  Furthermore, there are no additional management or account fees.

While the S&P 500 is the most popular index, carriers provide the possibility of exposure to the S&P MidCap 400, Dow Jones Industrial Average, NASDAQ 100, Russell 2000, Dow Jones EURO STOXX 50, Hang Seng Index, commodity price indexes and others. Fixed-income exposure can also be added to the mix.

You can choose what portion of your cash value is allocated to any particular index, and how much is maintained in fixed income.

Further, you can choose to have your allocation made in equal monthly installments, so that you have a constant market exposure, as advisors suggest.

Books like The Investment Answer underscore that the best long-term performance is found in indexed funds, consistently invested and diversified, not in higher-cast actively-managed accounts.

IUL policies can provide such performance, along with tax-free internal cash value build-up, and, of course, death benefit protection that your beneficiaries will receive tax-free.

Try getting all that with your model portfolio…

Mutual Funds articles

Where can I get lower mortgage rates in Canada?

Well if you’re uncle or brother is a manager at your local bank, you don’t need to be reading this. For the rest of us, lowering our biggest financial burden is extremely important. The average person now spends .5 million in their lifetime with a huge portion of that allocated to mortgage payments. A simple change in number can save you 10s of 00s over the course of your lifetime. It’s extremely important to know what is the best way to get the best mortgage rate. So how do you get the best mortgage rates and how do you know for sure you’re getting the best option on Canada Rates?

1. Don’t let your bank push you around.

Lenders get paid to tell you that you’d be wise to take their option. They have networks of sales people designed to persuade you into taking their option. Make sure that you’re at least getting multiple quotes. Letting the bank decide for your is a big a mistake. If you get multiple quotes and they’re still your best option, proceed accordingly. Just be careful that you don’t get too many quotes as generally over 7 inquires on your credit will actually hurt your score.

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2. Know your situation.

The banks probably have a different assessment of “risk” than you do and will evaluate your mortgage rates in Canada differently than you would. The vast majority of us don’t have perfect credit and long term steady high paying job. The bank loves these types of loans because they’re as straight forward as they come. They cater to these types of loans. However, you may have errors on your credit you’re not even aware of. Studies have found that 79% of credit bureaus have errors on them! That means that if you’re less than perfect in the credit department, whether justified or not, the bank may not see it as clear as you. Think about it, they get paid to overcharge you. Furthermore, with a complicated employment situation or immigration issue, you’d be wise to steer clear from your bank. Your best bet is to seek other alternatives.

3. Use the system, don’t let the system use you.

A long time ago this country was founded on the principle of capitalism. Capitalism works because competition helps to generate the possible solutions for the consumer. This is no different for Mortgage Rates Canada. There are new revolutionary systems, like the ones at Canada Rates, which will have lenders work again to compete for your business. The system works by using on online algorithm that shops your mortgage for your without a formal inquiry. Then the system at Canada Rates, will give you offers from as many as the 5 best lenders. It’s about time they started working for you instead of the other way around.

No matter which way you go, don’t let the bank tell you what you’re going to pay. Evaluate your options fully because the savings are well worth it.

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Oxford Style Bibliography

In writing academic papers, students are often required to use different writing styles. Among the many papers that scholars write are the Oxford style papers. Oxford style papers are written using the Oxford citation style. The Oxford citation style is a style of writing papers and referencing that is provided by Oxford university press. Students write different Oxford style academic papers including the Oxford referencing style term paper, Oxford referencing style essay, Oxford style research papers, Oxford style dissertation and Oxford style thesis.

An Oxford style paper consists of the title page which includes the title or the research, the name of the author, the name of the person the work is to be submitted to, the title of the discipline of study and its code, the name of the institution and the date of submission. It also consists of the table of contents which is written after the title page and it shows all the sections and subsections in the paper and their page numbers. In writing an Oxford style paper, one has to write an introduction which presents the main points of the text. It summarizes the main points and ideas in the paper thereby giving the reader a brief know-how of what is contained in the paper. Just like any other style paper, the Oxford style paper has the body which is the main part of the paper and has different sections each describing one main idea. This section contains all detailed explanations.

It is essential when writing an Oxford style paper to give a concluding statement and recommendations. In Oxford style referencing, the basic format to cite a book in a bibliography and footnote is as follows: The Author’s surname and initials, the full title which is given in italics, the edition, if other than the first, the name of the publisher, the place of publication, and the year of publication. To cite journals in an Oxford style reference, the format is: the author, the title of the article, the title of journal, the volume number, the copy number, the year of publication and page numbers. To cite electronic sources, the format is: author, title of article, name of website, volume, number, date, date retrieved, and the URL.

Due to all the standards that should be followed when writing an Oxford style paper, students find it difficult to write these papers. They can therefore get writing help from custom writing companies. We are a company that provides students with Oxford style paper writing help. We offer quality services and our custom written papers will earn you the best grades. Come to us with any request on writing Oxford style papers whether they are Oxford style essays, Oxford style research papers, Oxford style term papers, or Oxford style dissertation.

In addition, we provide you with Oxford referencing guide that will help you if you need to write your Oxford style paper. We have professional writers who are well trained in writing papers in the Oxford style and other writing styles as well. We offer our writing services to students on any level of study and on any subject. Once you buy custom written Oxford style papers from us, you will never go anywhere else. This is due to the quality of the papers that we write. Order now and enjoy our quality services.

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Estate Planning Part 16 – the 3 Phases of Estate Planning

Estate planning is the process of accumulating and disposing wealth before death of an individual or estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner’s intended beneficiaries while paying the least amount of taxes. In this article, we will discuss 3 phases of estate planning.

I. Creation
Most people misunderstand that wealth creation is only for people already have financial stability or are married. In fact wealth creation is for anyone who is over the age of 18 and has a permanent job. If you work, no matter what income levels you are, you can start to save some money through financial planning. Some people who I know created their wealth by investing only 0 per month at first. Remember the rule that you have to pay yourself 10% from your income first then spend only for what you need and limit spending on what you want.

II. Preservation
After You have created your wealth through years of following your financial plan, you now have reached the age or time that you would like to preserve your wealth. Here are some things that you can do:

1. Buy universal life insurance
Universal life insurance policies give you the privilege to defer your income accumulated up to maximum amount allowed every year. If you die, the investment amount together with the life insurance will be paid to your designated beneficiaries tax-free. This is helpful to preserve your wealth.

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2. Invest prudently
Through careful financial planning without any emotional buying or selling caused by fluctuation of stock market(such as stock crash, stock down turn), and if you monitor your plan annually, you should be able to build a sizable wealth for your estate.

3. Maximize your IRA or RRSP contribution
IRA and RRSP contribution allows you to defer you income tax until they are withdrawn. The more IRA and RRSP contribution up to maximum amount, the more taxes are deferred that give you more income to plan for your wealth accumulation.

III. Wealth transferring
By writing your will, your wealth will be distributed according to your wish to the beneficiaries.
It is the time to choose a knowledgeable and trustful person as your executor who will help to distribute your asset after you dies. You may want to form a testamentary trust if you have a disable beneficiary.
* By forming testamentary trust you can provide period of income for your disable beneficiaries. Since testamentary trust has it’s own tax status, it pays less tax if there is income retained every year.
* Use universal life insurance to pay for all deferred tax investment such as capital gain, so you can leave more wealth to your beneficiaries.
* Transfer some assets to join tenancy with the right of survivor, so your estate will not need to pay tax after you die.
The 3 phrases of state planning only provides you with a general idea of the subject, please consult with your financial planner for your specific needs.

I hope this information will help. If you need more information or insurance advice, please follow my article series of the above subject at my home page at:
http://medicaladvisorjournals.blogspot.com
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The Alter Ego Theory

So you own your own business. Welcome to the top! Whether you’re a newcomer to calling the shots or, you have done this before, you dreamed big and have taken the first step to exceeding your own expectations.

You are watching your costs and, although you intended to “do it right” from the start, things have fallen behind a bit and honestly, there is a new priority list – it’s as simple as that! Mind you, you fully intend to maintain your corporate legal formalities – whatever those are – but right now, you’re busy and; not only are you busy but, if business fails to be profitable enough, those legal formalities will become immaterial . . . just as will the business itself. Besides, your corporation provides you with a shelter known as limited liability. So, you’re fine. Right?

Generally speaking, California corporate law encourages business ventures, risk-taking and entrepreneurial activity by limiting the director’s, officer’s and shareholder’s liability for corporate actions. In that respect, the law actually views the corporation as a separate legal “person” so its debts, for example, are personal to it, just as yours are to you.

However, this protection is not absolute and so things can begin to get tricky!

Under certain circumstances, courts will disregard the corporate entity (including LLC’s) and ‘pierce the corporate veil’. The result – individual shareholders, directors, officers or members can be held liable for corporate actions. Suddenly, personal financial resources and, assets such as your home, can be in jeopardy.

So, under what circumstances may a court pierce your corporate veil or, as it is also known, find that you have utilized the corporation as an ‘alter ego’? Good question!

First, you should know that the Alter Ego theory is one of the most commonly alleged equity-based principals around and that the common law doctrine of ‘piercing the corporate veil’ is recognized in all 50 states.

To successfully prosecute such a claim, the plaintiff must prove that (i) there is a unity of interest between the corporation and the potential debtor, such that they have no practical separate existence, and (ii) an inequitable result will occur if the corporation alone is held responsible.

In California, courts often consider a list of factors to determine whether Alter Ego liability is appropriate. No one factor is controlling or must be present. These factors are generally laid out in Associated Vendors, Inc. v. Oakland Meat Packing Co. (20 Cal.App.2nd 825 and 26 Cal.Rptr. 806 (1962)). When summarizing prior cases, the Associated Vendors’ Court identified a number of possible factors, the most notable of which are:

1. Commingling of funds and other assets, failure to segregate funds of the separate entities, and the unauthorized diversion of corporate funds or assets to uses other than corporate uses;

2. Treatment by an individual of the assets of the corporation as his own; Diversion of assets from a corporation by or to a stockholder or other person or entity;

3. Diregard of legal formalities, including the failure to maintain adequate corportae/accounting records and/or minutes;

4. Domination and control of the corporation by its equitable owners;

5. Use of the same office or business location, the employment of the same employees and/or attorney;

6. Failure to adequately capitalize a corporation;

7. Use of a corporation as a mere shell, instrumentality or conduit for another person or entity, use of the corporate entity to procure labor, services or merchandise for another person or entity; and/or

8. Failure to maintain arm’s length relationships among related entities.

The factors listed above involve factual allegations which are subject to enormous potential dispute. Because of this, ‘corporate veil’ cases can come with significant costs!

Therefore, if you own a corporate entity or are considering establishing one, help protect yourself, and your future, by maintaining your corporate legal requirements!

An ounce of prevention could be worth a pound of cure!

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