How You Could Benefit From a Relationship with Cadence Wealth Services

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1 How You Could Benefit From a Relationship with Cadence Wealth Services An e-book examining the challenges associated with building, preserving and transferring wealth and how Cadence Wealth Services can help you meet these challenges.

2 How Cadence Wealth Services Can Benefit You You have worked hard for many years in order to build and accumulate a certain level of wealth, likely with the goal of increasing your sense of financial security and making life a little easier. While wealth or affluence may satisfy these goals, it also brings an increased level of responsibility for managing wealth in the most prudent and efficient ways. At Cadence Wealth Services, we specialize in helping clients manage their wealth in ways that help ensure its preservation, not only during their lifetime but for generations to come. Our services and solutions are geared around the three primary stages of wealth management: Wealth Building, Wealth Preservation and Wealth Transfer. page 1

3 The Three Primary Stages of Wealth Management Wealth Building This is the accumulation of money, property and other assets, including a closely held business. Common goals during the wealthbuilding stage are enhancing one s lifestyle, caring for loved ones and expanding charitable giving. The strategies and solutions utilized to build and manage wealth will depend largely on your goals, timeframe, level of risk tolerance and overall financial picture. Wealth Preservation As your wealth grows, you will likely accumulate a wide range of different financial assets such as bank accounts, retirement portfolios, investment securities and real property, as well as personal debt. The preservation of these assets requires sophisticated financial and wealth planning techniques in order to minimize taxes, ensure proper asset allocation, manage properties and align debt structure with long-term goals. Wealth Transfer After a lifetime of hard work in order to build, manage and preserve wealth, it s important to take steps to ensure that your possessions and assets are transferred to your loved ones and the charitable causes you support in the most efficient manner possible. Careful planning must be conducted so the maximum amount of wealth is transferred and any potential transfer taxes are minimized. Equally, if not more important, is thinking through and planning for wealth transfer in a manner that continues to promote your family values and ideals. page 2

4 Wealth Management Challenges A number of different issues and challenges may arise as you focus on building, preserving and transferring your wealth. These typically include the following: Structuring investments to support long-term financial goals, including retirement and funding your children s college education Assessing ongoing cash flow and liability management needs Developing insurance and tax strategies to maximize wealth accumulation and simplify estate transfers Identifying potential challenges with regard to concentrated stock positions or stock options Assisting with business succession planning by analyzing the potential use of advanced and tax-efficient asset transfer strategies to pass ownership to younger generations for ongoing management or ultimate sale page 3

5 Analyzing the tax consequences related to a business transition as well as the potential positive or negative changes in family dynamics surrounding a family or closely held business succession strategy or sale Establishing a durable power of attorney, healthcare proxy and living will Determining goals for wealth transfer, gifting and charitable giving, and devising plans to achieve these goals through potential lifetime gifting strategies or taxefficient transfers at death Ensuring that assets are titled for maximum advantage or to minimize potential negative consequences that may arise Identifying and empowering trustees who will represent your wishes in managing the affairs of your estate when you die or in the event you become incapacitated and need assistance managing your daily financial affairs Cadence Wealth Services has helped many families meet these and other wealth management challenges. One of the biggest keys to our success in this area is our ability to view each client s entire financial situation holistically, instead of piece by piece, says Wendel Skolaski, EVP, Private Banking Executive. We look at clients from a big-picture financial perspective, adds Skolaski. This requires a structure within Cadence Wealth Services where our internal teams work together cooperatively, rather than in silos. This enables us to make informed recommendations that are in our clients best overall interests. Cadence Wealth Services is comprised of four teams that work together seamlessly with one overarching goal in mind: To help clients achieve their wealth management goals. Following is an overview of each team and a description of how they collaborate on behalf of Cadence Bank s wealth management clients. page 4

6 Cadence Private Banking Cadence Bank has more than 127 years of experience in providing comprehensive Private Banking services to wealth management and high net worth clients. Each Private Banking client is given access to a Relationship Manager who serves as the client s personal guide through the wide array of different wealth management solutions. Skolaski says Private Banking Relationship Managers focus on what he calls balance sheet management for high net worth clients. Each client has a personal or family balance sheet that consists of investments, retirement accounts, insurance, trusts and other financial assets, along with debt, he explains. We start by doing a deep dive into the client s balance sheet and personal financial statement to see if anything important is missing or needs updating. page 5

7 For example, Relationship Managers will look to see if there is a last will and testament or if an existing will needs to be updated, if assets are structured properly, or if life insurance is structured in a way that s consistent with estate planning goals. We want to see if all the pieces of the client s wealth and financial puzzle fit together like they re supposed to, says Jamie Burns, EVP, Private Banking Executive. According to Burns, the real value that Cadence Wealth Services brings from a Private Banking standpoint is the personal relationships that are built between Relationship Managers and clients. There are a lot of banks selling products, but we build real relationships and make emotional connections with our Private Banking clients, he says. In this world where so many things can be bought quickly and impersonally online, we believe that Private Banking should be delivered on a highly personalized basis. Included within Private Banking is a wide range of personalized banking services such as Private Banking checking and Private Banking loan options. These include secured and unsecured personal and business lines of credit; secured investment account lines of credit; traditional mortgage loans (including a variety of adjustable rate mortgage, or ARM, terms and customization options); vacation home, airplane and yacht loans; operating lines of credit for businesses; and home equity loans and lines of credit. page 6

8 Cadence Insurance Services Insurance plays a critical role in wealth management by helping high net worth individuals and families manage and mitigate the various risks they face in both their personal and business lives. Like Cadence Bank s Private Banking Relationship Managers, Cadence Bank s insurance professionals strive to build strong relationships with our clients so we can offer insurance solutions that are customized for each client s particular situation. We don t want to just give clients an insurance quote. Instead, we will look at the client s overall risk scenario and create customized insurance solutions. Reed Moraw, President, Cadence Insurance an affiliate of Cadence Bank and a subsidiary of Cadence Bancorporation On the personal side, advisors will look at a client s current level of liability, property, auto, and, if appropriate, umbrella insurance coverage to see if it is adequate for the client s risk profile. On the business side, Cadence Insurance advisors will analyze a company s existing property and casualty insurance policies to see if they provide sufficient protection against loss of property and/or income. In addition, advisors help determine appropriate levels of worker s compensation, liability and property coverage. According to Moraw, Cadence Insurance has direct relationships with a number of top insurance providers and specialty insurers for hard-to-place risk exposures. In contrast, direct insurance writers can only place business with one insurer, so they often present this insurer as a one size fits all solution when in reality it s the only solution they have. page 7

9 Cadence Trust Services According to Patrick Pacheco, EVP, Trust Executive, all of an individual s or family s financial plans may be jeopardized if they haven t performed proper trust and estate planning. This is true for wealthy individuals and families as well as those with more modest income and assets. Therefore, Cadence Trust professionals strive to develop long-term relationships with wealth management clients so we understand their goals and philosophy when it comes to transferring their wealth to future generations, he says. page 8

10 Working closely together, Cadence Trust will create a structure during your lifetime to implement your philosophy with regard to asset transfers to your heirs and charitable causes you are passionate about. This includes carefully monitoring your asset allocation, maintaining accurate accounting and tax records, and providing customized and timely reports. Let s face it: Most people don t like to think about their death or about planning for what s going to happen to their assets when they die, says Pacheco. But without proper estate planning, your wishes might not be fulfilled with regard to how and to whom you want your assets and possessions distributed after you die. Pacheco says a common misconception is that trust and estate planning is just about planning for the distribution of assets after death. However, there are other disruptive scenarios that also need to be planned for, such as permanent disability or incapacity. We help wealth management clients plan for how financial and business disruptions will be minimized if these and other disruptive scenarios occur. One of the most valuable services Cadence Trust can perform is to serve as the trustee or executor of your estate. Serving as an executor is a complex and potentially liability-prone responsibility that few individuals fully appreciate when accepting such an appointment, says Pacheco. Most people lack the time and/or skills required to successfully administer an estate. At Cadence Trust, we have the skilled and experienced officers and staff to serve as executor or co-executor of our clients estates. page 9

11 Cadence Investment Services and Financial Planning Some wealth management clients prefer to take an active, hands-on approach to investing while others would rather work with an investment advisor who will handle the bulk of investment decision-making. Regardless of which type of investor you are, the financial consultants with Cadence Investment Services can help you meet your investing objectives. We don t sell investment products, Instead, we manage our clients entire relationship by getting to know them and making recommendations that are designed to help them pursue their long-term investing goals whether these are paying for their children s college education, retiring comfortably, or buying or expanding a business. We re interested in building client relationships, not just executing our clients transactions. Jerry Toney, CFP EVP, Director of Investment Services and Financial Planning This process starts with financial planning and extends from there, says Toney. We have such close relationships with our clients that we sometimes get calls seeking advice even on smaller issues, he says. For example, a client recently called saying they vacation at the same beach six times a year, so is it better for them to continue renting a condo or should they buy one? Cadence Investment Services financial planning process organizes your financial affairs and gives you the knowledge and guidance to make educated financial choices. It s custom-tailored to you, your long-term goals and your values, says page 10

12 Toney. We start by gathering and analyzing all aspects of your financial resources to create an initial road map clarifying the steps we recommend to address your goals. Then we review the plan regularly, considering changes in your personal circumstances and the global economy. Applying discipline and strategy to a wellthought-out financial plan provides clarity that allows you to pursue your life and interests with confidence. Cadence Investment Services financial consultants manage our clients portfolios with a long-term, controlled-risk perspective that is designed with the goal to deliver page 11

13 consistent returns and build lasting wealth. Historically, our experience in both up and down markets reflects the value of our approach: a disciplined application of a diversified investment strategy that requires both experience and objectivity. According to Toney, the foundation of Cadence Investment Services investment management philosophy is based on rigorous academic research and financial science. A properly diversified selection of uncorrelated asset classes, managed with a disciplined rebalancing methodology, is our approach to provide investors the opportunity to pursue their financial goals. In addition to financial planning and investment management, the comprehensive investment services provided by Cadence Investment Services offers access that includes retirement planning (with emotional behavior analysis), tax planning, charitable giving strategies and specialized planning. Specialized planning involves such areas as real estate consulting, elder care, and business, estate and divorce planning. Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Cadence Bank and Cadence Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. Investments and Insurance Products: Not Insured by FDIC Not Bank Guaranteed May Lose Value Not Insured by any Federal Government Agency Not A Bank Deposit page 12

14 A Cadence Bank Subsidiary Offering Financial Advisory Services Wealth advisors at Linscomb & Williams, a financial advisory firm and wholly owned subsidiary of Cadence Bank, work both independently and together with Cadence s Wealth Services team, determined by what best serves the clients overall interests. As fiduciaries, we have a legal obligation to make investment decisions that are in the client s best interest, says Harold Williams, CPA/PFS, CFP, CEO and President, Linscomb & Williams. We offer our services in a manner that differs from firms seeking to profit from product sales commissions, hidden fees or other conflicts of interests. Our firm has continued through financial market booms, busts and bubbles for more than forty years, Williams adds. During this time, we have served as a sounding board to families for their investments, retirement plans, estates, insurance and education funding. A large majority of financial advisory firms focus solely on portfolio management or product sales, but Linscomb & Williams takes a different approach. Advisors consider all aspects of clients finances and ensure their plan is well coordinated yet not overly complex. The goal is to help clients obtain a clearer view of their finances, which positions them to make better financial decisions. page 13

15 The process begins with an understanding of what s important to the client. Advisors then work closely with the client and their other professionals to develop and implement a long-term plan for their investment portfolio and overall finances. Advice is delivered by a highly credentialed and experienced staff of wealth advisors, including former practicing attorneys and CPAs, CFP professionals and CFA charterholders. Wealth management is an ongoing, long-term endeavor with an ever changing set of dynamics, be it financial markets, tax law or the client s own personal situation. Helping clients answer key questions about their finances and how a changing landscape or specific decisions will impact their goals and investment portfolios is essential. Linscomb & Williams advisors proactively communicate with and engage their clients to ensure they remain on track with their investment and financial planning goals. Linscomb & Williams is not a CPA firm. page 14

16 Our Commitment to You The personalized, holistic approach taken by Cadence Wealth Services is designed to give you confidence that Cadence is working in harmony with your personal wealth management goals. As a Cadence Wealth Services client, you can rest assured of the following: Your best interests will always be at the forefront of our minds. You will have full and complete access to your Relationship Manager and financial management team. We will listen carefully to everything you say. We will always provide you with objective and truthful advice. To learn more about how you could benefit from a relationship with Cadence Wealth Services, please contact one of our financial consultants: Cadence Private Banking Birmingham, Ala. (205) Houston, Texas (713) Cadence Trust and Estates (800) Cadence Investment Services (662) Linscomb & Williams Contact directly at (713) This e-book is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the e-book. The e-book is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes. Cadence Bank does not provide legal, accounting or tax advice to any client who receives trust services from Cadence Bank. page 15