Client Demographics
Our clientele is diverse in terms of age, background and locale. While primarily comprised of two groups, Wealth Creators and Wealth Recipients, the following six concerns are universal:
1. To maintain control over one’s personal affairs
2. Assure lifestyle
3. Tax minimization strategies: income, gift, estate tax, etc.
4. Asset protection
5. Passing responsibility to family members
6. Protection from administrative expenses and delays
Wealth Creators: The primary concerns expressed by Wealth Creators may be summarized as follows: Wealth is concentrated in a single company or asset; compensation is tied to stock options, resulting in unique planning challenges; pressure to retain more company stock than believed prudent; age biases hostile to older employees; corporate reorganizations; job security; reduced retirement benefits. Most who have created wealth did so by these means:
1. Holders of Stock Options
Foremost Concerns (typically expressed in this order):
- Diversification of concentrated equity and options positions
- Tax management
- Liquidity planning
- Investment management
2. Owners of Closely-Held Businesses
Foremost Concerns (typically expressed in this order):
- Liquidity planning
- Diversification of net worth outside the business
- Business valuation
- Succession planning
- Investment management
3. Retirement Plan Participants
Foremost Concerns (typically expressed in this order):
- Determining capital requirements to secure financial independence
- Investment management
- Tax management strategies post-retirement
- Liquidity and cash flow planning
Wealth Recipients: For a variety of reasons, many recipients of wealth do not experience their good fortune as an unmitigated blessing. Emotional turmoil is common. Wealth Recipients are most frequently:
1. Surviving Spouses and Heirs
2. Insurance Beneficiaries
3. Settlement Recipients (Divorce, Structured Settlements and Litigation Awards)
Foremost Concerns for Wealth Recipients are varied and frequently overlapping:
- Advice and counsel for a surviving spouse/heirs
- Trust administration and oversight
- Investment management
- Coping successfully with emotional turmoil
- Income and estate tax management
- Educating a less sophisticated investor
- Wealth management and perpetuating a legacy