Financial Solutions Tailored to Your Needs

Transcription

1 Financial Solutions Tailored to Your Needs

2 Welcome At WSFS Private Client, we provide wealth management strategies to families and businesses across the Delaware Valley. With more than two decades of experience, we bring a unique perspective to the financial planning process. At your service! We establish lifelong relationships with clients and provide them with financial services through every phase of life. Whether you are trying to plan your retirement or considering the legacy you leave, we have the expertise to custom tailor solutions to your wealth planning needs. Amy H. Solano Registered Client Service Associate amy.solano@wsfspc.com Direct: John Louis Centrella Senior Vice President Investments Wealth Manager john.centrella@wsfspc.com Direct: Kennett Pike, Suite C200, Greenville, DE 19807

3 Wealth Management Wealth management refers to the coordination of various financial strategies as they relate to each phase of your life. These strategies range from accumulation of wealth to protection of wealth and ultimately lead to the passing of your wealth on to your beneficiaries. The Accumulation of Wealth Construction of a solid financial base sufficient to pursue financial objectives We analyze your needs, asset allocation and suitability of different types of securities to devise a strategy to help ensure that your investment portfolio remains closely aligned with your overall financial goals during the building of your asset base. This critical component of wealth management will be coordinated with overall plans for taxation, retirement, insurance, estate and business. The Protection of Wealth Creation of strategies aimed at preserving assets from erosion due to unexpected expenses, inflation, market decline and taxes We look to enhance the client s asset base by minimizing their tax burden and allowing a client to distribute assets according to their wishes. No matter what the level of wealth, we help simplify the complexities of a client s financial life by focusing on wealth in a systematic way and implementing a plan that will benefit for the long term. We consider a variety of investment products, which range from traditional conservative to more speculative depending on the situation. Protecting wealth is about intelligent investment management and it involves creating a portfolio that reflects the client s cash flow behavior. We know that as time moves on, financial goals and objectives change. Our financial plans are designed to evolve with these changing needs. The Passing of Wealth Planning for the controlled distribution of assets at death, in the most tax advantageous manner During the final phase of wealth management, we oversee the management of your total financial picture. This service alleviates the complexity often associated with protection of wealth planning. Wealth Management 1 2

4 Retirement Planning Retirement planning helps to ensure that you are able to live your desired retirement lifestyle. Your retirement can span many decades and is often a key wealth management goal. After analyzing your needs, we help you decide on which retirement savings strategy will work best for you. Qualified Plans Employer-sponsored retirement plans such as 401(k)s and pension plans Qualified plans are popular because of their tax benefits, but also include contribution limits and distribution rules. Your employer may match all or a percentage of your contribution. IRAs and Roth IRAs Inexpensive, easy to establish and maintain and also offer favorable tax incentives IRAs can be used to consolidate retirement savings that were previously held in employer sponsored plans. Social Security and other qualified plans may not allot enough to support your desired retirement and either an IRA or Roth IRA can be beneficial in meeting your retirement savings goals. Business Owners or Executives Focuses on issues specific to business owners and shareholders, who may have access to other tax-advantaged savings vehicles A variety of plans are available to business owners, including nonqualified executive compensation, which provides retirement income to key employees. Analyzing options and your business allows us to provide the best strategy for you. Retirement Planning 3 4

5 Business Planning Business planning and personal financial planning are often intertwined. For most business owners, the business is their most significant asset and the financial success of that business has an immediate impact on the economic security of their families. Risk Management Starting and running a business carries its own set of risk exposures Proper planning allows the business owner to tap into the value of their business in order to support their retirement. Failure to properly plan may lead to loss of company value at the owner s death and many factors expose an owner to risk. We identify specific risk factors in order to create a risk management plan. Executive Planning Focuses on both cash and non-cash approaches The size and structure of your business significantly influence compensation systems. Examples of compensation include insurance benefits, qualified retirement plans, stock options, personal performance initiatives and other tax-advantaged nonqualified plans. Succession Planning Focuses on the transition of a business from an existing owner to a new owner A common factor to all business transitions includes the creation of a sellable business and formulation of specific transition mechanics at the time of sale. Additional succession planning issues include positioning a business for sale, determining valuation and terms, advising senior management and creating strategic alliances. Business Planning 5 6

6 Estate Planning and Trusts In helping you with estate and trust planning, we take the steps to ensure that a plan is in place to safeguard your assets during your lifetime and establish a plan to continue your legacy after death. Trusts A legal entity that typically describes how one s assets will be managed, and who will benefit from them during one s lifetime and after one s death Along with you, we coordinate the services of specialists, including accountants and estate attorneys. This eases the transfer of wealth to the next generation or charities, according to your predetermined wishes. Trusts can be used to: Manage and protect your assets Minimize estate taxes Shield assets from potential creditors Avoid the expense and delay of probating your will Preserve assets for your children until they are adults Set up a fund for your own support in the event of incapacity Shift part of your income tax burden to beneficiaries in lower tax brackets Provide benefits for charity Ensure the distribution of your assets in accordance with your wishes after your death Estate Planning and Trusts 7 8

7 Factors to Consider When Selecting a Trustee Knowledge and experience Understanding of trust laws Ability to file taxes Capability to monitor principal and income transactions Objectivity on emotionally charged family situations Estate Planning and Trusts Evolution of family dynamics We work with you and the individual or corporate trustee to ensure continued management of your investments. Selection of a Trustee Individual Trustee Individuals often appoint themselves, a family member or friend as trustee. Corporate Trustee Corporate trustees are experienced trust administrators who are dedicated to ensuring that wishes are executed as expressed in the trust agreement. 9 10

8 Directed Trading Within Trusts We offer solutions for trustees who wish to make their own investment decisions within their trust. Whether a trustee is an individual or a local, regional or national organization, we execute and process all buy and sell orders in accordance with the trustee s instructions. Delivery Versus Payment (DVP/RVP) Account This method of settling trades allows a trustee to trade in their trust account. Delivery versus payment (DVP) links the delivery and payment obligations for trades in such a way as to ensure that the final settlement of securities occurs if the final settlement of the corresponding payments occurs. Delivery versus payment is from the buyer's perspective; receive versus payment (RVP) is from the seller s perspective. The DVP/RVP account is the processing account through which the cash and securities pass on their way to and from the trust account. When a trustee wishes to purchase securities, the cash to settle the purchase will be in the trust account. When the trustee makes the trade, the cash will be withdrawn from the trust account, pass through the DVP/RVP account, affect the trade and the purchased securities will be deposited into the trust account. When a trustee sells securities, the securities to settle the purchase will be in the trust account. The securities will be withdrawn from the trust account, pass through the DVP/RVP account, the trade will be affected and the sale proceeds deposited into the trust account. Charitable Gifting A component of estate planning that may be motivated by personal interest or tax incentives The United States Congress encourages charitable giving due to tax legislation that currently offers incentives for minimizing income and estate taxes. Charitable gift planning involves selecting the gifted property and charitable structure that coordinates with your income, estate planning and donations. Estate Planning and Trusts 11 12

9 Risk Management Risk management helps to minimize financial and other potential losses associated with risks to one s assets, health or business. Insurance Insurance is an effective way to protect your financial well-being. In exchange for premiums, insurance companies take on the risk that a person will have an accident, require long-term care or pass away. Life Insurance Life insurance is a hedge against one s inevitable death and delivers money when it is most needed. It can also be a vehicle to accumulate money to be used during a lifetime. There are numerous types of policies in the marketplace and many variations within each type. Long Term Care Insurance The last several years of life are often spent in need of assistance with daily routines. As health care expenses rise, it is important to think about ways to protect against the risks long-term care presents. Long-term care insurance (LTCI) may be an affordable way to fund care and protect your overall financial plan and family. LTCI covers care in a variety of settings, such as home care, assisted living care, adult day care, nursing home care and hospice care. Premiums are a fraction of the cost of long-term care and with proper coverage, a person may avoid draining savings to fund treatment. Risk Management Some activities do require the expertise of insurance specialists. We may work closely with an insurance specialist to focus on risk management

10 Tax Planning Tax planning considers the implications of individual, investment and business decisions, with the goal of minimizing tax liability. We are cognizant of the income, capital gains, estate and business tax issues involved in your particular situation. Whether we personally counsel you or partner with a tax specialist such as a CPA to deliver solutions, we will be working in your best interests. Income Tax Planning One goal of tax planning is minimizing deferral income tax liability. Some strategies for this include reducing taxable income through income deferral or shifting, proper deduction planning, investment tax planning and year-end planning. Investment Tax Planning Investment tax planning involves evaluating how to best position assets to minimize ongoing tax payments. This requires year-round planning and it begins with an in-depth understanding of the tax implications of various investments and investment strategies. Gift and Estate Tax Planning If a client gives away wealth, during life or at death, the client may incur deferral taxes and possible additional state taxes. These taxes include gift, estate, income and inheritance taxes. We can help protect the transfer assets from excessive depletion by understanding these taxes and the various strategies that can be used to minimize them. Business Tax Planning Certain business decisions may be made with tax advantages in mind. Successfully handling your business involves business tax planning from the formation of your business, all the way through to the potential sale of your business. Life Event Tax Planning Some events in life, including retirement, marriage and higher education enrollment, come with tax considerations. Tax Planning 15 16

11 This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer. Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed Insurance products and services offered through WSFS Wealth Investments or CES Insurance Agency. Investments are not FDIC insured, are not guaranteed by the bank and are subject to risks, including possible loss of the principal invested Wilmington Savings Fund Society, FSB Member FDIC