Financial Planning: Building Your Wealth - webinar

Financial Planning: Building your Wealth Presented by Mark Groesbeck CFP®, ChFC®, CLU® 10/27/09

Mark Groesbeck • Senior Vice President with the Wealth Management Group of Abshier Webb Donnelly & Baker • Certified Financial Planner, Chartered Financial Consultant and Chartered Life Underwriter • Named one of the top advisors in state of Texas by Reuters AdvicePoint and one of the top 250 Wealth Advisors in the country by Worth magazine

Economic Overview • Financial crisis has impacted all areas of business • Unemployment continues to grow, long term recovery • Traditional methods of accessing capital are strained • Uncertain tax situation for individuals • Stock market has improved since March 2009 but…. • Real estate troubles still ahead? • The impact of healthcare reform

What is financial planning? • Dynamic process to achieve & maintain financial security • Gather client data • Identify Client’s goals • Analyze & evaluate current situation • Develop planning recommendations • Implement the financial plan • Monitor financial plan at least once a year to measure success • IT IS A PROCESS NOT A PRODUCT

What is in a plan? • Summary of current financial situation • Business Planning • Retirement Planning • Estate Planning • Insurance Analysis (risk management) • Education Planning • Investment Planning • FOLLOW A “PRIORITIZED” ACTION LIST

Personal And Business Goals • Summary of current financial situation – Take inventory of what you have personally and in business and establish goals for both • Retirement Planning – What age? Lifestyle? Debt Free? What will you do next? What type of retirement plan should you fund? • Estate Planning – Business succession, care for family, reduce tax (probate, federal estate, state inheritance), charitable trusts, inheritance

Personal And Business Goals (cont.) • Business Planning – Tax Planning & Benefits, Investment banking • Insurance Analysis – Initial liquidity, income to survivors, buy/sell, estate preservation, disability, long term care • Education Planning – Transfer of assets, 529 plans • Investment Planning – Tax deferred, alternative investments, coordinated plan tied to risk tolerance. Maintain proper liquidity

Business Planning • Tax Planning – Proper business structure (C or S Corporation, LLC or Partnership); Income shifting ideas – work closely with CPA for guidance. • Employee Benefits – Retirement plans, insurance protection for employees (Life, Health, Disability, Special needs products) • Plans for owners – Non Qualified Deferred Compensation, COLI

Business Planning (cont.) • Administration and Protection – Workers’ compensation, unemployment claims management and regulatory compliance assistance, as well as HR support • Investment Banking – Capital needs (mezzanine financing, IPO, etc), merger or acquisition, recapitalizations, business valuations, litigation support • Business Succession Plan – passing business to family, key employees or going public. Buy/Sell agreements could be helpful for death or disability planning (properly arranged and funded)

Retirement Planning • What age to retire or slow down? • Lifestyle? How much you spend impacts capital accumulation goal • Debt Free? There are tax advantages to mortgages, but what about your peace of mind? • What will you do with your time? Charitable work? Teach? Go back to college? Travel? Play with grandchildren? • Do you have a company retirement plan? What plans allow the largest deductible contributions? ERISA based plans and IRAs provide asset protection • Do you stay in your current home? Texas homestead exemption provides asset protection

Estate Planning • Business succession • Care for family • Reduce tax (probate, federal estate, state inheritance) • Charitable trusts • Do you expect an inheritance? • Generation skipping trusts • Irrevocable Life Insurance Trusts (ILITs) • Family Limited Partnerships and LLCs provide creditor protection • Offshore trusts

Insurance LIFE INSURANCE • Initial liquidity: Pay mortgage off? Lump sum fund education? • Income to survivors: builds capital to provide income • Buy/sell: Provides liquidity to sell company • Estate preservation: Protects estate shrinkage • Cash Value life insurance & annuities are protected assets • Term insurance could be “cheaper” solution BUT it depends on goal

Insurance (cont.) OTHER INSURANCE • Disability: Provides income to individual, can provide business with income or fund a disability buy/sell • Long term care for self and/or for parents. Could be “rider” on life insurance. • Malpractice: Protects your future • Umbrella Liability Insurance: Tied to home and auto policies

Education Planning • Transfer of assets or income to children: UTMA accounts, let kids own depreciated equipment and lease back to your company (consult CPA) • 529 plans: outside of your estate, you maintain control. Make annual gifts to children and grandchildren, creditor protection • Children work in business: better than paying an allowance • Multi-generational planning, keeping vision alive • Irrevocable living trusts (creditor protection)

Investments • Emergency cash resources: personal and business • Determine Allocation: stocks, bonds, cash, etc. • Mutual funds vs. Exchange Traded Funds (ETFs) • Alternative Investments: Real estate, Oil & Gas, Hedge Funds • Variable Annuities: “personal pension plans”, no limit to contributions, asset protection, living benefits

Benefits of Financial Planning • Establishing financial goals to direct your actions • Financial peace of mind is gained by taking control • Understanding how your actions today could impact your financial future. Coordinated implementation of strategies increases chances of success • The time to plan is before there is a crisis • Protects your income and wealth for the future • Take Charge!

Questions & Answers For More Information: Mark Groesbeck 713-920-9011 M.Groesbeck@awdbpartners.com or Anthony Grijalva (713) 235-8204 agrijalva@gnapartners.com www.gnapartners.com

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Financial Planning: Building Your Wealth - webinar

by G&A Partners on Dec 10, 2009

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