Financial Planning
The 13 wealth-management issues
While every client has the need for an individualized investment strategy – unique to your needs, circumstances and aspirations for the future – some issues tend to resurface again and again. Over many years in the business of building wealth, the EFG team has identified 13 core issues where we typically can add the most value and provide customized solutions.
Investment Issues
Generally the most critical issue for our clients – especially after the last few years of fluctuation in the world markets. At EFG, every customized investment strategy begins with an in-depth exploration of a client’s tolerance for risk, time horizon and expectations. Only by examining all of these factors can we allocate and diversify assets and manage the tax consequences in a strategic manner. Your investment strategy will be fine-tuned frequently, and given constant attention, at EFG.
Insurance Issues
With literally tens of thousands of insurance products available to cover life, disability, liability, long-term care, the questions can be overwhelming: What do you need? How much is enough? Insurance is an essential part of financial planning and a crucial part of estate planning that protects you against unforeseen events, and gives you the ability to prevent extreme tax consequences to your family and survivors.
Liabilities and Credit Issues
Who doesn’t have the need to stimulate cash flow or increase their focus on the terms of their liabilities? After all, having debt isn’t necessarily a bad thing, and eliminating every dollar of debt does not necessarily every financial issue. Equity lines of credit, credit card debt and asset-secured loans – when managed wisely – can be a useful financial tool to bridge thought cash flow difficulties and manage your tax burden.
Retirement Planning Issues
In 2010, retirement doesn’t mean what it did for our parents’ generation: A gold watch at age 65, a guaranteed pension and health insurance for life. For many Americans, retirement in the 21st century feels like a mystery comprising work-related and personal savings plus Social Security benefits. Solving that mystery means wisely managing assets during retirement and planning how to pass that wealth on to our kids and grandkids. Solid retirement planning means fewer mysteries – and peace of mind.
Stock Option Issues for Executives
Assets like stock options can be complicated in terms of rules, tax implications and transferability. Thus, the EFG team will explore with you the specifics of exercising these options and how to best use the proceeds. We’ll consider all the angles so you can get the most value from these options and integrate this strategy into your overall investment and estate plans.
Business Succession Issues
You may have put your life into your business – so shouldn’t you guard it with your life? The EFG team will be help you safeguard the interests of your business’ stakeholders, protecting your own wealth and welfare. We’ll help you develop a customized succession plan that takes into consideration the successful transfer of management and ownership control (e.g., family, insiders or outsiders) and minimizes capital gains or gift taxes if the business is sold or transferred during your lifetime.
Durable Power of Attorney Issues
Legally speaking, who will have the authority to manage your business and affairs if you no longer have that ability? Unless your power of attorney is “durable,” it becomes void if you lose mental capacity. If that happens, a court-appointed guardian will end up in charge of your assets. Wouldn’t you rather make such a personal, momentous decision? Together with your lawyer, the EFG team can help you craft a durable power of attorney to ensure your assets are managed by those you trust the most.
Gifting Issues
Any time you choose to make a gift of your wealth, you will face potential hurdles, including tax consequences, sources of funding, control and flexibility. With so many ways to make such a gift, your objectives and timeline will be the key drivers. We’ll work with you to make sense of it all, and to minimize difficulties and make sure every fiduciary responsibility is met smoothly.
Charitable Giving Issues
At EFG, we realize that charitable giving can take on a significant role in your financial plan, especially as a strategy to enhance future estate tax savings. High-net-worth investors also have myriad options to minimize tax obligations by supporting organizations and causes you’re passionate about. We’ll that, whatever your level of giving, it’s integrated into your investment strategy and works to minimize your tax exposure.
Issues With the Title of Assets
While designating a spouse as sole beneficiary under “Joint Tenancy With Rights of Survivorship” is typical, it’s not always a family’s best choice. The EFG team will ensure that you consider the full range of factors, enabling you to title assets in a way that matches your estate plan and maximizes your tax advantages.
Executor/Successor Trustee Issues
Retaining the services of a trustee can be the trickiest, most underrated financial planning factor. It’s critical to put in a place a structure that works well with your family and that best expresses your desires. Thus, it’s vital that you have experienced pros to help manage the process.
Distribution Plan at Death Issues
Estate planning combines many of the issues discussed above, culminating in a plan that minimizes both tax liabilities and conflict. The EFG team can help you deal with the often-emotional family dynamics involved and allow you to develop a balanced, flexible plan for the long term.
Charitable Inclinations at Death Issues
Creating a legacy may be the final way you express your passion for life. A strategic investment plan is one that enable your estate to continue to support your favorite causes even after your death. The EFG team can help give you confidence that your wealth will continue to make a difference for generations to come.
