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Advanced Issues for the Affluent

Addressing the financial complexities of wealth

We understand that the needs of high-net-worth investors and, in particular, of corporate executives are often challenging. Our clients have worked hard to achieve success, and we work just as diligently to preserve their assets to meet today’s needs as well as tomorrow’s goals.


That’s why we focus on minimizing risk through conservative vehicles such as bonds* and other fixed income products. And to help ensure our services complement our clients’ full range of planning needs, we specialize in working closely with their CPAs, attorneys and other professional advisors.



Transferring your wealth and preserving your legacy

Whether it’s providing income for a spouse, educating children or grandchildren or leaving money to your favorite charity, proper estate planning can ensure that your assets accumulated over your lifetime are protected and preserved for the use you have intended.

A poorly developed estate plan can cost a family a substantial amount of money in unnecessary taxes. We can offer financial solutions to efficiently manage the transfer of wealth, and its related tax issues, from one generation to the next.

By coordinating our efforts with your tax and legal professionals and working closely with you and your family, we will strive to help you establish a financial tradition that can be passed on for generations.

 

Helping you prepare for the unexpected

We believe a comprehensive financial plan must consider – and prepare for – the unexpected. Our team helps you think ahead and consider different scenarios, then prepare contingency plans to address them. We understand that while risk cannot be eliminated, it can and should be mitigated.

Our risk management services:

  • Life insurance for income replacement
  • Annuities
  • Long-term care
  • Disability insurance
  • Liability insurance

 

College planning

If your goals include providing for the future of a child or grandchild, we can help you investigate your many options and develop an education funding strategy.

 

Charitable giving

Philanthropy can bring personal satisfaction, enabling you to support causes and organizations that matter most to you. It can result in significant tax advantages, as well – including income tax deductions, reduction of capital gains taxes and lower estate taxes.

We can help tailor a charitable giving plan for you that can include one or more of the following forms:

Outright gifts
Benefits charities immediately and creates a gift tax deduction.

Will or trust bequests and beneficiary designations
Through your will or trust document, or beneficiary designation form, the charity will receive the gift upon your death. Your estate is then entitled to income and estate tax deductions.

Charitable trusts
You can name a charity as the sole beneficiary or name other, noncharitable beneficiaries as well. The most common types of trusts used to make partial gifts are charitable lead trusts and charitable remainder trusts.

Private family foundation
You create a foundation and transfer assets into it. The foundation then makes grants to public charities. You and your descendants have complete control over which charities receive grants. (Unless you contribute enough capital to generate funds for grants, the costs and complexities may outweigh its benefits.)

Community foundation
A community foundation accepts donations from many sources and is overseen by individuals familiar with the community’s needs and professionals experienced at running charitable organizations.

Donor-advised funds
A fund held within a charitable organization. Once you transfer assets to the account, the organization becomes legal owner of the assets and has ultimate control. You may advise, but not direct how your contributions will be distributed.

 

 

* Bond prices and yields are subject to change based upon market conditions and availability. If bonds are sold prior to maturity, you may
receive more or less than your initial investment. Holding bonds to term allows redemption at par value. Bond prices and interest rates have an
inverse relationship.

Estate Planning

 

Transferring your wealth and preserving your legacy

Whether it’s providing income for a spouse, educating children or grandchildren or leaving money to your favorite charity, proper estate planning can ensure that your assets accumulated over your lifetime are protected and preserved for the use you have intended.


A poorly developed estate plan can cost a family a substantial amount of money in unnecessary taxes. We can offer financial solutions to efficiently manage the transfer of wealth, and its related tax issues, from one generation to the next.

By coordinating our efforts with your tax and legal professionals and working closely with you and your family, we will strive to help you establish a financial tradition that can be passed on for generations.

Financial Planning: Older Adults

 

Preparing for and living in retirement

Although many individuals nearing retirement have at least one 401(k), IRA or defined benefit plan, rarely will those income sources meet the full range of retirement expenses.

By working with us, we can help determine how much you will need to withdraw from your retirement portfolio to live comfortably in retirement. The less you withdraw, the better chance your assets can generate stable income through the duration of your retirement. The general rule of thumb is a maximum withdrawal of 4% to 6% per year, but you may need to withdraw more or less depending on your specific circumstances.

You may need to adjust your rate of withdrawal based on future market performance. The sustainable rate of withdrawal is historical and will fluctuate. If your rate of withdrawal is greater than the growth of your assets, you may exhaust your principal.

Social Security benefits are another important aspect of your retirement plan. A variety of factors, such as your age, spouse’s earnings and other sources of income, can affect when you may need to begin receiving your benefits.

 



Give your plan a checkup

Once you’ve retired, managing your money is more important than ever. During your retirement years, your personal goals and situation - as well as the economic environment  - are likely to shift. These changes require careful scrutiny, perhaps resulting in adjustments related to your goals, your portfolio or both.


Retirement income planning

Preserving your wealth and maintaining your lifestyle are likely among your highest priorities. You aspire to stay in your home as long as you want and be able to leave behind the legacy you had envisioned.

Because people are living longer today, the possibility of going 30 years without a paycheck takes careful retirement income planning and disciplined investing. We can create a plan for sustainable monthly withdrawals from your investment portfolio designed to make your money last your lifetime.


Healthcare considerations

Many retirees underestimate how much they’ll need to cover healthcare expenses. In fact, a Center for Retirement Research study recently estimated out-of-pocket costs for a healthy 65-year-old couple to be $260,000 to $570,000 for their entire retirement. Income from investments and Social Security can go toward paying ongoing medical costs, such as Medicare premiums, deductibles and copays, but as healthcare costs continue to rise, this could place a significant strain on your retirement. We can work together to anticipate your healthcare expenses in retirement and account for them within your overall retirement income plan.

Another risk-management option is long-term care insurance, which covers a range of nursing, social and rehabilitative services for people who need ongoing assistance due to a chronic illness or disability. While you can’t know for sure if you’ll need long-term care or for how long, a comprehensive policy can help you plan for the unexpected.

Some people choose a policy to help:

  • Protect assets
  • Add options for quality care
  • Relieve family and friends from the stress of providing care
  • Preserve their independence, dignity and financial freedom


Legacy planning

Depending on your financial situation, you may be confident you can fund a comfortable retirement and still allocate funds to leave an inheritance for family members or to donate to a favorite charity. The first priority should be ensuring your expenses can be met before you leave a monetary legacy behind.

We can assist you with your estate and legacy planning, including helping you to optimize your assets, potentially minimize tax implications, and determine the course most appropriate to your situation. In addition, we can help you select effective vehicles to implement your plans.

Contact us to learn how we can help you to optimize your assets, potentially minimize tax implications, and determine the course most appropriate to your situation, including the selection of effective vehicles to implement your plans.


There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as financial advisors of Raymond James we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.

Financial Planning: Younger Adults

Planning: The key to financial success

In life, we pass through several phases, each with different financial requirements. For example, the financial needs of a young married couple are not the same as those of a retired couple. That is why continuous, long-term planning is essential. Typically, there are three basic financial steps most people take in life. They include:

·         Wealth accumulation – the building of a solid, diversified financial foundation from which to expand over time. During this phase, allocation of money for a home, investments, life insurance and educational expenses is coordinated with tax planning strategies to ensure that current and future income is utilized effectively.

·         Wealth conservation – the inclusion of a variety of investment strategies and further diversification, designed to preserve and invest assets to help ensure adequate funds for current living expenses and future retirement needs.

·         Wealth distribution – the proper allocation of assets to heirs. Good estate planning should provide for the orderly transfer of assets while avoiding unnecessary tax burdens.

In addition to the complexities and changing priorities that occur over a lifetime, a financial plan also is affected by fluctuating economic conditions, taxes and inheritance laws. Our advisors have the expertise to thoughtfully design a plan with your circumstances in mind, helping you develop a long-term financial strategy for your individual needs.


The benefits of starting early

The main benefit of starting early is to take advantage of compounding interest. Compounding interest allows you to earn interest on both the principal you invest and the interest you earn – potentially enabling you to turn a small sum into a substantial one over time.

When saving for retirement, or another future goal, consider using dollar-cost averaging as a strategy – the process of making regular investments on an ongoing basis, regardless of price; for example, buy 100 shares of an investment each month, quarter or year. You are buying more shares of a security when its share price is low and fewer shares when its price is high.

Over time, it’s likely the average cost per share will be lower than the average market price. For many, this is the most realistic way to save toward retirement because these periodic investments come from a paycheck as opposed to having a lump-sum of money to invest all at once.

 

 

Dollar-cost averaging cannot guarantee a profit or protect against a loss, and you should consider
your financial ability to continue purchases through
periods of low price levels.