Who Can Benefit Most From Our Services?1. Decision Makers Health Declining.
As the nations population ages an increasing number of the primary decision makers (usually husbands) are in declining health. They may have done an excellent job of managing their own investments in the past, but realize the task is simply too much for their spouse. While they may have issues with giving up control, they ultimately are forced to do so.
Ideally, they should help their spouse develop a relationship with a trusted, independent advisor who can help preserve and protect the assets accumulated for the family over many years.
2. Widow/Widower
This is related to the item above, except the primary decision maker waited too long to help the spouse develop the appropriate relationship. The responsibility to manage substantial financial assets without the training or motivation can prove to be an overwhelming burden for this individual. Again, a trusted, independent advisor can greatly alleviate these issues.
3. Unhappy With Current Advisor(s)
In light of recent stock market volatility some clients have not received the service and attention they deserve, and expect. These people are looking for alternative financial advisor relationships that my be more appropriate for their situation. They may have multiple brokers who are transaction oriented, and charge commissions.
They would prefer an independent advisor who could pull all their various accounts together and simplify their lives, while providing the personal attention they expect and appreciate.
4. Sale of Business
Business owners who've finally "cashed out" after many years are faced with the task of properly investing their assets to meet their various goals and objectives. Their existing financial advisors may not have the resources and/or training to adequately manage large sums of cash, and therefore an independent advisor who specializes in serving high net-worth clients may be more appropriate.
5. Large Single Stock Position
Individuals with large, concentrated stock positions are faced with the challenge of protecting their holdings. They know they should diversify, but often don't want to pay capital gains taxes in order to do so. An independent advisor can help them explore various options such as a Cashless Collar, Tax Deferred Exchange Fund, or possibly a Charitable Remainder Trust, thus enabling the client to diversify their assets while avoiding capital gains taxes.
6. Inheritance/Divorce/Legal Settlement
Receiving a large sum of money due to an inheritance, divorce or legal settlement requires expertise to prudently manage the assets. Some recipients can manage these assets either themselves, or through existing investment advisor relationships. However, a rather large percentage has neither the time, temperament or training to prudently manage the funds, and feel overwhelmed with the responsibility. Again, an independent investment advisor who specializes in high net-worth clients would be an appropriate choice.
7. ERISA Fiduciary/Trustee
Many successful small business owners sponsor qualified retirement plans such as 401(k)s and Profit Sharing Plans. Quite often the business owner doesn't realize he/she carries unlimited personal liability for the plan. A disgruntled employee could easily contact the DOL and/or the IRS with a claim, baseless or not, of improper plan management. In the event of an audit the business owner (and other plan Fiduciaries) could be held personally liable for any improprieties.
An Accredited Investment Fiduciary can provide a detailed review of the qualified plan (with the assistance of the firms CPA and attorney) and help the business owner identify and correct any Fiduciary Standards of Care deficiencies. Additionally, a process can be structured to meet the ongoing responsibilities mandated by ERISA for plan Fiduciaries to avoid problems in the future.
8. Endowments/Associations
Endowments and Associations are responsible for the prudent management of funds that have been donated/paid to the organization. Virtually all states have adopted the Uniform Prudent Investor Act (UPIA) which charges the Fiduciaries of these funds to follow the Fiduciary Standards of Care, which are practically identical to ERISA requirements.
Quite often, the officers are unaware of their Fiduciary status, and the high standards they are required to follow. Therefore, if a Fiduciary breach occurs, they could be held personally liable.
Again, An Accredited Investment Fiduciary can provide a detailed review of the organizations plan (with the assistance of their CPA and attorney) and help identify and correct any Fiduciary Standards of Care deficiencies. In addition, a process can be structured to meet the ongoing responsibilities mandated by UPIA for plan Fiduciaries to avoid future problems.
9. IRA/Qualified Plan Rollovers
IRA/Qualified Plan Rollovers often comprise the majority of retirees investable assets, and therefore requires careful management to preserve and protect these irreplaceable funds. An independent advisor can help the client develop an appropriate Investment Policy Statement, choose appropriate investment managers, implement and monitor the plan. Ongoing account reviews enable the client to stay abreast of their progress.
10. Retirement
Many individuals hoping to retire in the next 3-5 years often need assistance developing a plan designed to enable them to meet their retirement goal. They want to know if they have adequate resources to meet their target retirement date, and if their assets are sufficient to generate the funds necessary for them to maintain the lifestyle they've grown accustomed to. An independent advisor can help them review their various retirement income resources (pension, Social Security, etc.) and help them develop an appropriate plan to enable them to achieve their goals.
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