Estimating wealth. Helen E Brown Manager, The Helen Brown Group LLC

Transcription

1 Estimating wealth Helen E Brown Manager, The Helen Brown Group LLC 1

2 It s so easy! First find net wealth Apply the capacity formula Apply inclination formula Presto! 2

3 Overview Estimating wealth What are we looking for? Formulas and resources 3

4 Can we really estimate wealth? 4

5 Net worth or net wealth NW = Total Assets Total Liabilities 5

6 If we had all the answers, it wouldn t be called Research, but Be consistent with terminology Use Total Visible Assets (or similar term) to describe what you find Educate yourself. Learn and follow the tricky, hidden paths to info as well as the overview sources (single track/m way) 6

7 What are we looking for? 7

8 Your picture of wealth Compensation Salary, bonus, director s fees, options Assets Stock/share holdings Dividends from above House(s) Boats, cars, airplanes, horses Art collections, jewelry Ownership Privately-held company 8

9 Intangibles Who do they hang out with? (business associates mostly? The grandkids?) Where do they go on holiday? (And who with? And what do they do there?) What are their leisure activities? What are their civic activities? Are they in the newspaper/society rags? 9

10 Places to find information Compensation Publicly-held companies: Securities and Exchange Commission (SEC) Proxy statement (DEF 14A) 10

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14 Places to find information Compensation Publicly-held companies Marketwatch.com ( Yahoo! Finance 14

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18 Places to find information Compensation Other jobs Salary.com (general) Indeed.com (general) Medical Economics ( American Lawyer ( Vault ($) 18

19 Places to find information Real Estate Zillow.com Trulia.com Domania.com Local assessors office (Christina Pulawski s tax assessor site at 19

20 Places to find information Privately-held company The prospect themself Company website Dun & Bradstreet ($) 20

21 Studies Surveys and Giving formulas 21

22 Studies and Surveys Mendelsohn Media Research Affluent Survey ( - $85,000+ Internal Revenue Service - $625, info is ten years old Capgemini-Merrill Lynch World Wealth Report ealth_report_2008/ ( - $4 million+ 22

23 Mendelsohn Media Research Affluent Survey (2007) Asset value composition by percentage, reported by respondents Asset Type Percentage of Percentage of Percentage of Assets for Assets for Assets for Households w/ Households w/ Households w/ Income between Income between Income $85,000 $100,000 $250,000+ $99,999 $249,999 Household Annual Income 10% 10% 12% Principal Residence 33% 29% 18% Other Real Estate 10% 11% 15% Securities 20% 22% 32% Life Insurance 27% 28% 23% 23

24 Info on giving in America Giving USA IRS Data Boston College Center on Wealth and Philanthropy (Paul Schervish) Use these average figures (1 5% of income/assets) to determine capacity 24

25 There are great studies on wealth and giving in Britain, too Barclay s Wealth Changing Face of Philanthropy CACI Wealth of the Nation report CAF International Comparisons of Charitable Giving NCVO/CAF - UK Giving 2007 New Philanthropy Capital research and bibliography collection nfpsynergy 21st century donor Inland Revenue Create your own formulas for UK donors 25

26 Various rating codes used for tracking prospects Capacity rating Based on total visible assets OR Total + estimated assets Keep it simple! ABCD; ; etc. Inclination rating (just how much do they love you?) Next gift amount (usually different from capacity rating) Readiness code Next 3 months? Next 6? This year? Next year? Where are they in cultivation/ask cycle? What s going on in their life? 26

27 Are you still with me?? 27

28 This is just an overview, but The latest issue of APRA s newsletter Connections is all about rating systems Included are specific formulas, rationales, etc. 28

29 Thank you! Contact Me: 29