Explanation of Services offered by: The 611 Group Tax & Wealth Advisors The following is a summary and description of the services offered by 611 Group. As a client of 611Group, it is important for you to know and understand all of the services that you have access to through our firm. The following information is intended to explain the firm s services, and how each service may apply to your specific financial plan, or estate plan. Specific services may or may not apply in your financial situation. Willie Schuette, the advisor at 611 Group is not licensed to provide tax advice or legal advice. However, 611 Group has, and will continue to establish professional liaisons with licensed CPAs and estate planning attorneys in an attempt to bring professional and licensed advice regarding taxes and legal estate documents, respectively, to their clients.
ESTATE PLANNING SERVICES Willie Schuette, the advisor at 611 Group, will provide multiple services that focus primarily on asset distribution for clients who are either nearing their retirement date, or have already reached their retirement date. Some of these services may also be applicable to those still in the asset accumulation phase of their financial lives. The services provided that more often apply to those in the distribution phase of their financial lives are: INDEPENDENT PORTFOLIO ANALYSIS This analysis would include a comprehensive review of your review of your fixed investments, stocks, bonds and mutual funds. This analysis will hope to identify the risk characteristics of these investment vehicles, and make sure they align with your determined risk tolerance level. Also, historical returns and current fees and expenses will be identified. ASSET ALLOCATION REVIEW A very basic approach to financial planning involves a review of allocations based upon five major components: Age, Income, Net Worth, Risk Tolerance, and Time Horizon. This is used as the starting point in our planning process. LONG TERM CARE ANALYSIS Long term care coverage may be a crucial element of your estate plan. However, it can also require large amounts of assets to pay for benefits you may never need. Your assets and net worth will be reviewed to determine if there is a need for long term care coverage. If it is determined that there is a need, there are several options to be reviewed in order to satisfy that need. 1. Traditional Long Term Care Insurance Determining which kind of long term care insurance is right for you can be very time-consuming. 611 Group will research and identify prospective companies and policies that we feel will fulfill your LTC need, and will help you to make an informed decision on which policy to purchase. 2. Asset-Based Long Term Care We can help determine if asset-based long term care is a better option than traditional long term care insurance. Depending on your financial situation, you may be able to avoid the cost of buying a traditional LTC policy by simply shifting assets within your estate plan.
3. Other Long Term Care Possibilities There may be other viable options that will provide coverage for you, depending on your level of need. They may include other products that contain long term care riders, including annuities and life insurance policies. ESTATE PROTECTOR SYSTEM ANALYSIS Learn how to avoid the Ticking Tax Time Bomb and pass more on to your loved ones by using our Estate Protector System. When you pass your legacy on to your next generation your assets could get socked by taxes and fees that could reduce your retirement accounts by as much as 70%. Our goal is to reduce, as much as possible, the amount of your assets that go to attorneys and the IRS should you pass away. IN-FORCE LIFE INSURANCE AUDIT Often times individuals own life insurance policies that may not be the most beneficial for their current situation. This audit is done by analyzing in-force illustrations and combining them for a number of potentially costly factors: Lapse, Over-insuring, Under-insuring, Under-performance, etc. COMPLETE BENEFICIARY AUDIT Perhaps the most important document in your financial files will be the beneficiary designations. These designations should be reviewed on a regular basis. It is not uncommon for old insurance beneficiary designations to contain errors, including listing ex-spouses as beneficiary, or not including all family members. This audit can help eliminate any potential future problems once the life insurance proceeds get paid. Beneficiary audits should also be done on investment accounts. Errors can be made when setting up the accounts. Also, people s wishes can change over time, so beneficiary designations must be updated. For qualified accounts, listing improper beneficiaries, or listing your estate as the beneficiary can lead to potential problems in the future, and perhaps the loss of beneficial tax rules. The beneficiary audit, whether it addresses life insurance or investment accounts, works in tandem with the Estate Protector System and the In-Force Life Insurance Audit to help make sure your estate is set up properly, and that you are taking advantage of your beneficial tax laws that allow you to pass the maximum amount of your estate to your beneficiaries, without government interference. INCOME TAX AND SOCIAL SECURITY ANALYSIS This will help identify how to possibly reduce your federal income tax and coordinate your income with your Social Security benefits so that you can reduce the tax on both.
PENSION MAXIMIZATION/INCOME REPLACEMENT ANALYSIS This will help identify and analyze pension income. If no pension option has been selected yet, it will consider all options and help in determining the most viable selection based upon individual circumstance. If a pension option has already been selected, it will consider the replacement of possible lost income and present viable options to accomplish this. ASSET CYCLE PORTFOLIO SYSTEM Do you understand the specific purpose for each of your investment accounts and what exactly they are designed to accomplish? If you aren t sure, you aren t alone. Many folks feel their investment accounts are like a puzzle dumped out on the floor, meaning you aren t sure how it all fits together. Our Asset Cycle Portfolio System can help you understand how each part of your financial assets fit together so you can complete your entire financial picture, and include a guarantee on certain future income streams. INCOME CASH FLOW PROJECTION All of the previously listed services will help develop the Asset Cycle Portfolio plan described above. Our goal is to be able to earmark your assets, and be able to show you your own personal income cash flow schedule. We want to show you how much income you can expect for each year of retirement, what accounts the income is coming from and when the distributions need to be made. THE IMPORTANT-DOCUMENT ORGANIZER SYSTEM It is not uncommon for us to visit with new clients, and when they come in, they set several different folders, perhaps a box or two and a suitcase full of documents on the desk and say, I think this is everything. We help organize your documents using our document organizer that helps keep your accounts in order. This makes reviews more efficient. It also can help your heirs when the time comes to handle your estate. If everything is in one organized location, your heirs don t have to call multiple financial institutions to retrieve lost information. Our organizers are provided to clients that have multiple accounts. MULTI-GENERATIONAL QUALIFIED DISBURSEMENT REVIEW This will consider the impact of stretching out your qualified dollars using a Stretch IRA. Stretch IRAs are best suited for investors that do not need to receive income from this account and intend to pass this money along to their heirs. This strategy can be beneficial in preserving the value of qualified plans as they are distributed to beneficiaries.
ROTH IRA CONVERSION STRATEGY This process of converting a traditional IRA to a Roth IRA can be extremely beneficial, or extremely costly if not analyzed and executed properly. Consider this service if you have qualified dollars and are interested in seeing the advantages and/or disadvantages of converting those dollars into a Roth IRA position. RMD CALCULATION REIVEW This process will address your need to fulfill Required Minimum Distributions from all qualified accounts, as needed. By ensuring that the RMDs are taken, you can avoid unnecessary penalties that would have been enforced had the distributions not been taken, or if the distribution amounts were incorrect. 611 GROUP LEGACY PROGRAM At 611 Group, we encourage the involvement of spouses, and heirs after the retirement planning is completed. With permission of you, the client, we will meet with other family members to discuss the stated goals and objectives of you and your estate plan. By forming an early relationship with estate heirs, we are able to be of more assistance during their time of grief as the estate assets pass to them. Also, by early introductions, we may be able to help them get a jump start on their retirement plan.
ASSET ACCUMULATION / ADVISORY SERVICES Willie Schuette, the advisor at 611 Group, also provides services that may be more suited for those who are still in the asset accumulation phase of their financial lives. Some of the services listed above may also be applicable to those still in the accumulation phase, and some of the services listed below may also apply to those in the distribution phase. The services that apply more often to those in the accumulation phase are: INVESTMENT ACCOUNT MAINTENANCE / MANAGEMENT We are licensed to utilize many different types of investments to suit their clients needs. They include stocks, mutual funds, bonds, ETFs, and annuities. Accounts can be established as a commission based account either at a clearing house or directly at a mutual fund company. Accounts can also be set up on a fee basis at the clearing house. These accounts can be established for all levels of investors, including high-net worth clients as well as young clients who are just starting to save for retirement. They can be utilized as part of a buy and hold strategy intended for long term growth of assets. For those more adverse to risk, these accounts can be populated with specific investments intended to provide consistent income. Please note any strategy utilizing investments carries an inherent element of risk and any strategy utilizing annuities is best suited for long term investors. FORMULAIC INVESTMENT STRATEGIES We have access to a proprietary investment strategy that utilizes a formulaic investment process in the management of client accounts. Equities, bond funds, and ETFs are bought and sold based on specific criteria, with monthly rebalancing taking place automatically in the account. This type of account can likely be used by both mid-net-worth clients, as well as highnet-worth clients, assuming it fits within your financial plan and is in line with your ability to tolerate risk. These accounts are usually set up to focus on long-term growth of assets. Accounts can be set up to re-invest gains and dividends or to make regular distributions of gains and dividends, depending on the need of the client. THIRD PARTY MONEY MANAGERS For high-net worth clients, we have agreements with several third party money managers. These firms, for a management fee, will provide portfolio management services for these large accounts. They focus on true asset allocation, utilizing different asset classes domestically, as well as globally.
LIFE INSURANCE NEEDS ANALYSIS As young people move through different stages of life, from college, to the workforce, to becoming a family, their need for life insurance coverage changes. We are able to review their situations, and provide illustrations for coverage that we feel are appropriate, based on their need, and their financial resources. As their needs change, occasional In- Force Life Insurance audits can take place to ensure their current coverage meets their current needs. COLLEGE/ADVANCED EDUCATION PLANNING SERVICES We can help plan for future educational costs through the use of different types of accounts. Qualified 529 plans can be funded by (but not limited to) parents or grandparents, to help cover future qualified expenses associated with higher education. There are other types of accounts that can also be utilized for educational purposes.
COMMITMENT TO SERVICES As a client of 611 Group, you should come to expect a certain level of service. Our goal is to provide you with a one-stop, go-to resource when it comes to any of your financial needs, and to provide you with guidance and advice on all your financial-related matters. The following information is meant to detail what you can expect from 611 Group once you become a client. Service events may change due to the addition of new services, or the elimination of existing services (those listed at any place in this manual). SCHEDULED REVIEWS As your advisor, it is essential that we get as much information regarding your financial health as possible. In order to establish a solid foundation that will allow us to properly plan for you, we may require multiple fact finding interviews, both as we are establishing your original income plan, as well as during the implementation of your income plan. Once you become a client, accounts will be reviewed on a regular basis, depending on the type of investment vehicle that makes up the account. The advisor at 611 Group, after reviewing each account, will determine if changes need to be made to the account. At the time, they will contact you and inform you of the necessary actions that need to be made. The typical guidelines for reviews of different investments are as follows: Fixed Annuities/Indexed Annuities these will be reviewed annually on or near their contract anniversaries. Variable Annuities these will be reviewed on a quarterly basis. Mutual Fund accounts Mutual funds are intended for long-term, buy-andhold strategies. Mutual fund accounts will be reviewed on a quarterly basis, depending on market conditions. They will not be managed using a buy-and-sell strategy. Brokerage Accounts Brokerage accounts containing mutual funds will be managed similar to mutual fund accounts being held directly at the fund company. These will be monitored by using a buy-and-hold strategy, and will be reviewed on a quarterly basis. Brokerage accounts containing company stock may be monitored more frequently, depending on each individual client, and their respective goals and objectives. Formulaic Investment Accounts these accounts may be reviewed quarterly or monthly.
Income Plan Review once your retirement income plan is in place, it is important to review the plan annually in order to make any necessary adjustments to the plan. Also, during this review, it is important to address any beneficiary changes, or other pertinent changes to your goals and objectives. As Needed Reviews we feel it is important that you know and understand both your financial plan, and the investments that are contained within it. Occasionally, between scheduled annual reviews, if you need questions answered regarding your accounts, or pertaining to other financial issues, appointments can be scheduled to address those issues. COMMUNICATIONS Communication with our clients is very important. Upon becoming a client of 611 Group, you can expect several different forms of communication. WEBSITE our website, 611Group.com, is a good source of information regarding our firm, and the services it provides. We also utilize the site to help distribute our monthly newsletter. For those who have registered, you can receive the newsletter via the website each month. Also, we have a designated blog page that is intended to distribute information pertinent in today s financial world. Articles may discuss tax law changes, IRA distribution rules, etc. NEWSLETTER currently, we distribute a monthly newsletter. As stated above, the newsletter can be viewed from our website. If you prefer, you can also receive a printed copy of the newsletter through the regular mail. EMAIL beginning in 2011, 611 Group has made a big effort to communicate as much as possible through email, as opposed to sending out letters in the regular mail. By reducing the amount of material that goes through the regular mail, we are able to continue our green campaign. Announcements, information, etc., are typically relayed to our clients through regular emails, unless our clients prefer otherwise. OTHER COMMUNICATIONS 611 Group may also utilize other forms of communication in an attempt to improve client satisfaction. Events such as focus groups, educational seminars, and surveys may be utilized in order to gain feedback from our client base.