1. B.O.S.S. ™ (Business Owner Strategy Session) Working Lunch: Second Quarter Schedule
To RSVP, please call Mark at 614-469-4685. Please feel free to invite a business owner.
Due to the strong demand for these events, we must limit attendance to business owners only.
Succession Planning: April 22nd
Jane Higgins-Marx, Partner and Robert Barnett, Jr., Managing
Partner of Carlile Patchen & Murphy, LLP “Great information- I don’t
• Maximize your company’s value think my firm is right for an
Structure deals in the best way ESOP, but at least I know now.
I’m definitely interested in the
succession planning event.”
Business Sale Review: May 20th
Scott Chapman and Andy Hays, Partners and Co-founders of Steve– Columbus
Copper Run Capital
• Typical timeline, process, and structures of sales
• How to find a buyer
“I’ve been very interested and
Selling your Business– Cleaning House: June 17th impressed with how the events
Jim Balthaser, Partner of Thompson Hine have been conducted.”
• Prepare for a sale
• Important factors in early planning
(These participants are not clients of
84 South Fourth Street
Columbus, OH 43215
The Wealth Managers for Business Owners
Mark Fissel, RFC Clint Edgington, CFA
2. Spring 2010 Quarterly ewsletter
The Wealth Managers for Business Owners
How have Beacon Hill’s clients been
improving their lot?
We manage financial
matters so you can The Proactive Wealth Management Process TM
focus on your
business, your family, This quarter’s activity: Cash Flow and Retirement Planning
takes some work! While we do the majority of the heavy lifting
and your life.
for the Proactive Wealth Management Process– this requires
assistance from our clients, and they’ve done a great job!
We review how much they’ll need to have for retirement and
what they’ll need for their businesses in the upcoming year.
84 South Fourth Street We then create the cash flow analysis, update the Investor
Columbus, OH 43215 Roadmap, and we’ll also show them how much can safely be
withdrawn from their portfolio when they do retire. We help
P: 614.469.4685 them set aside cash for taxes and bonus/Profit Sharing pay-
info@BHAdvisory.com ments as well!
Next Quarter: Estate & Legacy Review
Our clients have enjoyed outperformance in Good times and Bad!
How has your portfolio
performed since the Bear
Market hit? 4%
To the right, you’ll see our actual Standard Benchmark S&P 500
portfolios, starting in September of Our Portfolio
2008 through 12/31/2009. -2%
Beacon Hill Investment Advisory claims compliance with the Global Investment Performance Standards (GIPS®). Investment Results shown from 8/31/2008 to 12/31/2009 on an
annualized basis. Beacon Hill Investment Advisory is an Registered Investment Advisor. Additional information regarding the firm’s procedures for calculating performance returns
is available by calling 614-469-4685. “Our Portfolio” represents our Moderate composite and is for those portfolios with a moderate growth objective, with risk metrics comparable to
the “Standard Benchmark” of 2% BarCap U.S. Treasury Bill 6-9 Month index, 40% BarCap U.S. Aggregate Bond index, and 48% Standard & Poor’s 500 index. All returns calcu-
lated in U.S. Dollars and net of all expenses. Beacon Hill’s Moderate portfolios were not charged fees for the period 8/31/2008-12/31/2008. Past performance is no guarantee of
3. Market Review: 2010 - First Quarter
Seen in the Press
Like the weather, equity markets exited March like a lamb, putting window dressing “The Great Recession Creates a
on an otherwise lackluster quarter. ew Retirement Reality” by
Equity Markets Q1 2010 The Journal of Financial Plan-
ning: Retirement Distribution
9.7% December 2009 Edition
(Clint Edgington, CFA)
6.2% “Five Ways to Handle a Tricky
Market” by Roger Fillion,
(Clint Edgington, CFA)
0% “401(k) - When It Makes Sense
Broad U.S. Market Small U.S. Foreign Market to Rollover” by Mark Fissel,
Companies RFC, Columbus Dispatch
(S&P 500) (Russell 2000) (MSCI EAFE)
Foreign markets, troubled with sovereign debt issues of the likes of the PIIGS (Greece, Portugal, Ireland, Italy, and Spain), got reas-
surance in March through the backing of the European Union, which fueled a 5.8% return during March to create a virtual breakeven
for the quarter. The fixed income markets rewarded taking credit risk, and continued concerning those in long-term bonds as longer
term rates moved up, solidifying our continued position not to reach into the longer term market for extra yield.
Barcap Aggregate Bond Index: 1.6%
Barcap High Yield Bond Index: 4.7%
Business Wealth Management Process TM
Quarterly Review Schedule
We think about these things so you don’t have to.
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
www.BeaconHillAdvisory.com pg. 2
4. Still Sitting out of the Market?
What are you waiting for? You don’t have to jump in at once! We have portfolios set up for people
to slowly get back into the market. First, let’s increase your yield beyond the 0.5% you’re getting in
the bank. Our conservative income portfolios yield about 4%.
ot sure if a Roth is right? If you have an IRA, SEP-IRA, or 401(k), we will
provide a customized, confidential, side by side analysis for $399.
Everyone can make an IRA contribution this year!
Typically, a couple that had over $166K in modified adjusted gross income and had a retirement plan with
their company were limited in contributing to a Roth (89K begins limits for Traditional IRA). This year,
that same couple could make a non-deductible contribu-
tion to a regular IRA and then convert it to a Roth IRA.
While there are still income limitations on deductible
contributions, there are no income limitations on conver-
sions this year! In this manner, they have effectively
contributed to a Roth IRA.
If they do this now for 2009 and 2010, they can put
$24,000 away and never pay taxes on it again!
Of course, there are a few wrinkles. The biggest issue is
that the IRS thinks of all your IRA accounts as one pool
of tax deferred assets. Therefore, they will want you to
allocate basis to that portion you convert in a pro-rata
form over all of your IRAs.
If you have no IRAs currently, this is a non-issue for you
and it becomes a no-brainer to do this. If you do have
IRAs, talk to your accountant about this strategy.
By way of example, if you already had an IRA worth $24,000, and you chose to open a new IRA for you
and your spouse and contribute the maximum for each for 2009 and 2010 ($6,000/year if you’re over 50),
you could put away another $24,000 IRA. Let’s call this second IRA “IRA #2”. You then convert IRA
#2 to a Roth IRA. At this point, you will have to pay taxes on the portion of the IRA that you converted
that was previously a deduction. The IRS assumes that you actually converted half of IRA #1 and half of
IRA #2, therefore you will have income of $12,000 that you will pay. It will be offset, however, by a de-
duction when you begin to withdraw assets out of IRA #1. Previously, if you would have pulled all
$24,000 out of IRA #1, you would have taken $24,000 as income. Now, you will only have to take
$12,000 as income.
www.BeaconHillAdvisory.com pg. 3