Securities offered through Packerland Brokerage Services, Inc. 432 Security Blvd., Suite 101 Green Bay, WI 54313
Member NASD & SIPC
What areas do you specialize in?
Is their a way to describe your typical client?
What is Wealth Management and how does it differ from competitors look alike services?
Explain the similarities between business succession planning, estate planning and asset protection planning, which are often misunderstood as synonymous disciplines. What are the significant differences and benefits to clients?
What are privately managed accounts. How do they differ from other investment options and what are the primary benefits to the investor?
Tell me how a privately managed account protects one's assets from major market declines?
Q: What areas do you specialize in? A: There are four primary areas of experience and expertise.
First is asset investment planning. Here we are looking for high performance tax efficient ways to grow one's assets at historical market rates of return or better while at the same time reducing the client’s risk of loss to principal.
Second is asset protection and estate planning. Asset protection includes estate planning but is much broader -- including protecting the client’s assets during their lifetime, for their use and enjoyment, not only from estate taxes but from annual income taxes, capital gains taxes, judgments from lawsuits, divorce, medical, long term care or other unforeseen risks that may occur in the future.
Third is business and business succession planning. Here we help owners of closely held businesses get the maximum benefit out of their businesses everyday -- in most cases, tax free. We also help them analyze the many options available to them as to what to do with the business when they want to retire and, more importantly, how to do it in the most profitable and tax efficient way.
The fourth area is charitable giving. Most people think you have to have millions of dollars before you could even think of giving any of it away. That’s because most people’s first concern is: What if I need the money during my lifetime? Most people do not realize or understand that the leveraged income benefit of charitable giving -- combined with the tax deduction benefits – makes charitable giving one of their top planning options.
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Q: Is their a way to describe your typical client? A: Yes, that is easy due to our focus on asset protection, achieving superior investment returns at significantly reduced risk to the market and tax management efficiency, our clients fall primarily into three categories:
First, high income and/or high net worth. These people have serious tax issues as well as asset protection issues along with concerns about choosing the right investment programs to ensure their financial independence.
Second, owners of closely held businesses. They have the added risk and liability of owning a business so asset protection issues are critical plus the annual tax issues. They also have the business planning and/or succession issues in addition to choosing the right investment programs to secure their hard won gains.
Thirdly, professionals -- primarily doctors and lawyers. As a group these professionals are involved in more lawsuits (like malpractice or negligence) than most any other group, so asset protection and making one’s self judgment-proof are serious issues. Plus they have the issues of income tax, protecting themselves from a disability, and choosing the right investment programs to secure their retirement.
Q: What is Wealth Management and how does it differ from competitors look alike services? A: Wealth management is simply good stewardship: it is growing and protecting all of one’s assets using the most productive, economical, low risk and tax efficient methods available, while at the same time structuring those assets so they are protected from creditors, lawsuits, market declines, divorce or any other unforeseen future risk.
We differ from other look alike and sound alike competitors (such as stock brokers, investment advisors, financial planners, estate planners, and insurance agents) in 3 basic but significant ways:
Let me give you an example. If you are a client of a large investment firm or bank and inquire as to what would be the best way to minimize capital gains taxes on the sale of some real estate you would like to get rid of, chances are you would never be told about charitable giving options because the investment firm gets paid to collect and manage client’s money. By using a charitable remainder trust, you would be in effect taking money away from them.
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Say your portfolio is performing poorly. Your bank, investment firm or advisor is not going to suggest you move your account to a competitor who is outperforming them. We will.
Q: Explain the similarities between business succession planning, estate planning and asset protection planning, which are often misunderstood as synonymous disciplines. What are the significant differences and benefits to clients? A: Business succession planning, broadly speaking, is the process of developing and implementing a financial plan that will provide for the sale or transfer of a business upon retirement, death or disability of the owner. The business is usually the largest single asset in one’s estate and should be dealt with separately.
The primary benefit of good succession planning is maximizing the after-tax financial benefit for the owner during his lifetime – not just for his beneficiaries after death. Many owners and their accountants do not know how to do this or how to do it effectively.
Estate planning, on the other hand, deals with one’s entire estate and is primarily the process of arranging one’s assets so as to minimize or even eliminate gift, transfer and estate taxes at one’s death.
Good asset protection planning is the broadest of these three disciplines. It encompasses both business succession planning as well as estate planning, but has 2 distinct advantages that the other two disciplines do not provide.
Good asset protection planning protects one’s assets while they are alive for their benefit in two ways:
Q: What are privately managed accounts. How do they differ from other investment options and what are the primary benefits to the investor? A: Privately managed accounts, or as commonly referred to as PMAs, have been used by institutions and high-net-worth investors for over 100 years, but it is only recently in the last 3 years of this bear market that Privately Managed Accounts have really become the investment option of choice for individual investment accounts. A Privately Managed Account is simply having your individual investment portfolio selected and managed on a daily basis by the industry’s top professional firms. Your money is not commingled with other people’s money like mutual funds. You get direct daily individual attention for your portfolio by the professionals you chose to manage your investments.
There are a dozen good reasons for one to choose a Privately Managed Account approach to investing but the two most valuable benefits are:
Q: Tell me how a privately managed account protects one's assets from major market declines? A: Basically, privately managed accounts protect assets from major declines in the market in three distinct ways.
First, some Privately Managed Accounts use various asset allocation strategies and models to preserve your principal. This is by far the most widely known, fundamental way to protect one’s portfolio. An example of this would be a portfolio with 60% fixed income and 40% equities allocation.
Additionally, some Privately Managed Accounts actually hedge your portfolio -- which is the newest method currently being successfully deployed in the industry today. Basically, the risk (beta) and performance (alpha) ratio is calculated for each stock in your portfolio as it correlates to the S&P 500 index. Then a percentage of S&P put options are purchased for your portfolio so that when the market declines, the put options will grow in value sufficiently to offset most, if not all, of the portfolio losses.
Obviously, the primary benefit in using any one or all of these methods of portfolio protection is that the investor minimizes his downside loss of principal. An additional advantage of the market timing and hedged approach is that an investor can be more aggressive towards growth, knowing he has some protection on the downside.
