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Your Board of Directors held a special extended meeting on February 28 to consider fundamental planning issues about FPF. What kind of organization are we?  How well are we doing, and how could we improved. It was a lively and very productive meeting and we made decisions on a number of fronts. While there will be more information in coming months, here are some highlights:

Website -- We signed an agreement and authorized funding for a substantial upgrade to the appearance and the functionality of our website. We will be adding a PayPal function, so you may register and pay on line.  There will be links from the FPF website to your own firm's website.  There will be a section available "for members only."  There will be added opportunities for you to communicate with other members, and to promote your services to the public.

Meetings -- We will take specific actions to increase your ability to enhance your interaction and relationships with fellow members of FPF; to increase your ability to make referrals to and obtain referrals from them.

Vice President -- Our Board has been functioning this year without a vice president to serve as President elect. The Board elected Todd Flesner to this position, and he has agreed to serve.

Last Month's Program

Tracy Herrick, chief economist for The Private Bank, located in Palo Alto, gave a stimulating presentation on "Business Conditions in 2006-2007, Three Surprises." Unlike Mr. Greenspan's presentations to Congress and other during his tenure, Tracy was clear, succinct, and refreshingly candid.  There were none of the usual "on the hand" and "on the other hand," none of the usual qualifiers. Mr. Herrick's 3 predictions:

1. There will be an unexpected recession in the 1st half of 2007.  The economy will cool this year, with car sales down by the end of summer, venture capital will plateau, and only companies with a competitive advantage will be profitable.  Real earnings will decline this year by 1%; corporate profits, which were up 17% last year, will be flat in 2006, leading to:

2. Recession in the first half of 2007.  Corporate profits will decline 15-20%, unemployment will rise substantially, and a financial crisis may occur, but:

3. Recovery will begin in the second half of 2007. Housing prices will stabilize, but at a level 15-20% lower than today, interest rates will drop, and stocks will rally. The recovery will be broad-based and will include high-tech.

Tracy went on to explain what he sees as the contributing factors. Whether you agree with analysis or not, his line of reasoning was crystal clear.

Our thanks to FPF board member Todd Flesner for bringing Tracy to us.  If you're in Palo Alto, stop by the Private Bank on Lytton Avenue, and say hello to Tracy, or to Jim Wall, President.

Programs for the rest of the year

On March 28, FPF member and past president John Prokey and others will present a program on valuation issues in the estate planning context, the probate or trust administration and distribution process, and in succession planning. This will not be the typical program on valuation discounts in the gift planning process. John will discuss the practical, legal, and tax consequences of asset valuation in these various contexts, especially where there are beneficiaries with different, and often conflicting, interests.

On April 25, Brad Elman will bring us up to date on insurance issues.

Finally, on May 23, Palo Alto attorney Peter Stern will talk about the issues facing us as we advise our client who are parents, facing our clients as they try to "parent" their parents, and facing us as we deal with these same issues in our own lives. Peter will address practical and legal issues facing professionals as they try to advise their clients. Peter is an expert in representing seniors in all sorts of estate planning situations, including Medi-Cal issues.

As an added incentive for you to attend this meeting, it will begin at 5:00, with a hosted bar and light appetizers.  Our thanks to Krista Conover and Borel Bank & Trust for sponsoring this event with a major contribution to the Forum

More About March's Program

John Prokey is a partner in the San Jose law firm of Ramsbacher & Prokey, LLP. He received a B.S. degree, cum laude  from Santa Clara University in 1994 and his J.D. degree, cum laude, from Santa Clara University School of Law in 1999While obtaining his law degree John's work experience included working for The Fiore Law Group, Intel Corporation, Inc. and on site at Apple Computer, Inc.

John's law practice includes advising high-wealth individuals and closely-held business owners in tax, business and estate planning.  His practice also includes representing taxpayers in all levels of tax controversy, including IRS administrative audit and Appeals, and U.S. Tax Court.

John is a frequent lecturer and author on various estate planning topics.  John is a member of the Executive Committee of the Taxation Section of the State Bar of California, and was Chair of the Estate and Gift Tax Committee of the Taxation Section of the State Bar of California for 2004-2005. John is currently a member of the Santa Clara County and American Bar Associations, the State Bar of California and the Santa Clara County Estate Planning Council.