For as long as I’ve been a financial advisor (which dates back to 1975), I’ve been confounded by the fact that people often do not have any idea of what it is that I (or my colleagues) do? This includes family and co-workers in the next room!
At Compass we have a collaborative group of 12 Trusted Financial Advisors who bring their multidiciplinary skills to our table every day. Typically in a multi-tasking fashion, we move from task to task, process to process and client to client through out the day – doing what needs to be done. Planning our work and working our plans.
I thought it might be illustrative to share with you snapshot of some of what we’re working on right now:
Tom Licciardello has obtained an SBLOC (securities backed line of credit) for a client who does frequent government contract work. He obtained a $1 million line of credit 1.5% less than the client’s previous bank offer saving more than $400/month in interest charges. In establishing the SBLOC, Tom also worked with his client’s estate planning attorney to accomplish the goal of dividing jointly held assets into living trusts which take full advantage of eligible estate tax credits, thereby significantly reducing the client’s estate tax exposure. Tom also manages the investments in the trusts.
Troy Knowlan is currently assisting a long term client with selling his interest in a company to a minority shareholder. His responsibilities include working with various professional firms to arrive at a fair value of the company, then structuring a deal that would provide the most after tax benefit to both parties.
Tim Shanahan is counseling one of his long time client couples who after a lifetime of capital accumulation is now entering retirement and ready to begin the distribution strategy that Tim designed for them in their financial plan. His strategy involves layering their cash flow in a tax sensitive fashion out of several “buckets” of assets with electronic payments directly into their spending accounts.
John Ahern is advising an old and dear high school friend he has been working with for almost 2 decades. John helped him set up a Defined Benefit Plan that has provided for the accumulation that he and his wife needed to be able to retire last year; and is now rolling that plan into an IRA has helped consolidate their assets onto the SEI platform and eliminate the cost of administering a DB plan. Tim is helping to structure and allocate those assets so that they not only feel comfortable with their risk in retirement, but also that their required minimum distributions are tied in automatically and timely with their income needs. Provisions are also being made to help fund the college educations of their grandchildren.
is working with a family that have been clients for many years. Part of the family is retired and the next generation is actively working in several family businesses. They are active real estate investors and are continuing a growth strategy. Philip is helping them to coordinate their financial, estate and investment plans to help them achieve their growth and wealth preservation goals for the different generations of the family.
Tricia Welsh is counseling a new client couple about early retirement. After preparing a comprehensive financial plan she determined that they will be able to retire early, when the husband turns 62 and the wife turns 58. This is possible even though the husband has recently been laid off and anticipates he will get a new job within a year at just 2/3 of his previous salary, and they are just beginning to send two children through college. By analyzing their current spending and including normal and expected extraordinary expenses, she showed the couple how their past and continued future savings will enable them to retire and still maintain their current standard of living.
Omar Mian is coordinating with a local estate planning attorney who is part of Compass ProNet network to draft a Shariah compliant estate plan for a Muslim client who wishes to comply with their religious obligation. The rules governing inheritance form an extensive and complicated part of Shariah law that sets out a strict formulation on how property is to be divided among heirs, one that is a religious obligation for devout Muslims .
Dave Morgan is advising a client whose significant assets have been managed all along by her 80 year old father who now suggesting that she either find a new advisor or take over the management of her account herself.
is advising a long term client who has a successful private manufacturers representative business. After several years of using a SEP IRA for a retirement plan the growth of their business now needs a more sophisticated solution. Walter is converting their retirement plan into a 401k/profitsharing plan with “new comparability” features in which the employees are divided into groups, with each group receiving a contribution that is a different percentage of compensation. The simplest type of grouping is to have the owners in one group and all other employees in another group.