Telemus Capital's Spring Insights Q1 2013


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Telemus Capital's Spring Insights Q1 2013

  1. 1. SPRING 2013 Message from the Managing Partner Telemus Q2 2013 Global Outlook Equities Fixed Income Fund Spotlight: Salient MLP & Energy Infrastructure Telemus Wealth Advisors INSIGHTS It is with great pride and excitement that we introduce our new quarterly newsletter that we’re calling Insights. In these informative pieces you’ll hear from us, and others, regarding the current market environment as well as a variety of investment and financial topics. In this first issue you’ll hear from Jim Robinson, CIO and CEO of Robinson Capital Management, on his current views of the global economy and markets. Our U.S. equity market commentary is from Evercore Wealth Management, the sub-advisor of our core equity strategy. Mary Bakhaus, the portfolio manager of our Beacon bond strategy, will explain senior bank loans and their use in our portfolios. Our Chief Wealth Officer, Andy Bass, will discuss the recent tax law changes. Finally Ted Gardner, the investment manager of the Salient MLP complex that includes mutual funds and a hedge fund will discuss why MLPs are set to out perform this year. Long ago, when I first entered the investment business, someone gave me a framed quote that I’ve kept. It reads, “The secret to investing is not to know the future, but rather to be prepared for any contingency.” I’ve always remembered this and at Telemus we invest accordingly. We believe that prudent investing across a variety of asset classes increases your expected return and lowers your expected risk under normal circumstances. By investing in a variety of asset classes and strategies we believe we stand a better
  2. 2. RecommendingRecommending AskingAsking PlanningPlanning FindingFinding HelpingHelping MonitoringMonitoring HE ELEMUS ROCESST T P What is our proven Telemus process? Asking questions and listening Helping identify needs and goals Finding or creating customized solutions Planning and implementing Monitoring and evaluating progress and results Recommending and making changes when necessary Our Client 2 | Telemus Capital | Spring 2013 chance of protecting our client’s principal in down markets but participating fully when markets are moving up. At Telemus we’re in the “keep rich” business not the “get rich” business. We’re more concerned with losing money than making money. As a result we play defense first and offense second. Our goal is to match the markets in good times but deliver those returns with less risk than the market. In bad times we want to significantly outperform the markets again with less risk than the market as a whole. We hope that you enjoy this first issue of Insights. With over $2 billion in assets under management or advisement we have clearly established ourselves as one of the wealth management firms of choice, not only in Michigan, but around the country as well. If you have any questions regarding anything contained herein please contact us. A Message From The Managing Partner Gary Ran Chairman and Partner The Telemus Process
  3. 3. Telemus Capital | Spring 2013 | 3 U.S. Overview Economy The delay in resolution of the Fiscal Cliff certainly had a negative impact on consumer spending in the fourth quarter and will likely have an adverse effect on Q1 2013 GDP growth as many corporations postponed initiatives awaiting the outcome. Even though the first leg of the Fiscal Cliff resolution preserved the Bush-era tax cuts for all but the wealthiest Americans, everyone will be paying higher taxes than a year ago as the temporary payroll tax holiday expired. The second leg of the Fiscal Cliff debate, the automatic spending cuts, will likely further dampen growth prospects in the second quarter. Congress appears to be addressing the third leg of the debate, the debt ceiling, which should allow us to avoid a government shutdown. While we are confident a compromise will eventually be reached between Republicans and Democrats, we suspect the bickering and haggling between now and then could further erode consumer and corporateconfidence. Inshort,weseeapolitician- induced difficult economic environment over the first half of 2013; but, once the politics are behind us we expect an improving economy over the second half of the year. Inflation The Federal Reserve has tied its accommodative monetary policy to the unemployment rate. Specifically, the Federal Open Market Committee (FOMC) agreed to maintain its asset purchase programs and 0% Federal Funds rate policies until such time as the unemployment rate falls below 6.5%. The Fed wants higher inflation. For those of us who were raised in this business on the adage “don’t fight the Fed”, we believe the Fed will eventually get its way—lower unemployment but higher inflation. Interest Rates As noted above, short-term interest rates will remain low for some time. The Fed has publicly stated that short-term interest rates will likely remainlowuntilatleast2015. Longerterminterest rates will benefit from the Fed’s asset purchase programs but will face more upward pressure from the aforementioned inflation outlook. Moreover, bond investors are not comforted by fiscal irresponsibility—tax revenue was increased with the expiration of the Bush-era tax cuts for the wealthiest, and expenses were reduced, at least temporarily, with the automatic cuts triggered by the sequestration agreement; but, bondholders will want to see more logical and sustainable fixes to the government’s spending policies. Domestic Equity Markets Ultimately stock prices track corporate earnings— we believe the corporate earnings environment remains positive even as the overall economic environment remains fragile. That, coupled with an accommodative monetary policy, makes domestic equities attractive. Dividend and long-term capital gains tax rates were bumped modestly for the wealthiest Americans, but not as much as many feared (back to the ordinary income tax rate). On an after-tax basis, even for those paying the highest rates, the 2.2% dividend yield of the S&P 500 is much higher than the 1.75% yield on the investment grade corporate bond market or the 1.25% yield on the intermediate municipal bond market. We are also starting to see retail investors rotate their bond holdings to equities. These rotations typically take months/years to complete, which should provide sufficient fuel for another leg up in the equity indices. Telemus Q2 2013 Global Outlook Provided By Jim Robinson, Robinson Capital Management
  4. 4. 4 | Telemus Capital | Spring 2013 Domestic Bond Market We expect short-term interest rates to remain low for some time; but, as we noted above, we do expect the Fed to ultimately win its fight to reduce the unemployment rate and increase the inflation rate—that isn’t a good scenario for longer-term bonds. Corporate bond yield spreads relative to US Treasury debt remain attractive particularly when one considers the increasing supply of US Treasury debt relative to corporate debt. In our tax-exempt portfolios we continue to emphasize higher quality issuers as declining property values and tax bases are having an adverse effect on many state and local municipalities. Non-traditional fixed income securities such as senior bank loans, convertible bonds and preferred stocks continue to provide the most attractive risk/reward characteristics. International Overview Economy Europe is in a recession, but there are signs of little green shoots popping up—we believe the worst may be behind the European Union. Likewise, the newly elected Japanese Premier Shinzo Abe is putting pressure on the Bank of Japan to pursue the same accommodative policies as our own Federal Reserve Bank to stimulate growth in that country. The emerging market economies are showing signs of renewed strength, as evidenced by the fact Macau saw gambling revenues balloon 20% this past December. Longer term we still expect the emerging economies and the emerging middle classes within those economies to fuel significant growth over the coming decades. Inflation Since most of the world’s major central banks are pursuing inflationary policies similar to our own Federal Reserve Bank we would expect inflationary pressures to increase in most major economies. Europe could be an exception to this as the austerity measures pursued there probably pose a greater risk for deflation than inflation. Interest Rates As with the domestic market, we expect global short-term interest rates to remain low; but, due to inflationary pressures we would expect some upward pressure on longer-term interest rates. Again, the exception is probably the European rate environment where longer-term rates probably still have room to fall, particularly in some of the periphery states. Currencies The dollar remains the unquestioned global reserve currency but oddly enough, since last summer the Euro has been the world’s strongest currency. This is largely due to Europe’s austerity measures as opposed to our inflationary monetary stimulus policies. Japan is now also pursuing those same policies, which has led to a10% devaluation in the yen versus the US dollar. We would expect the dollar/euro relationship to stabilize, but we expect further declines in the yen. Natural Resources Global central banks’ inflationary policies will be positive for natural resource prices. Renewed economic growth in the emerging markets will be a huge positive for natural resource prices. Longer-term, increased global demand without a comparable increase in supply will keep natural resource prices on their upward sloping trajectory. Global Equity Markets We’ve become much more constructive with regard to developed and emerging international markets. At present we have a neutral weighting but the next move is likely to be an overweight. Valuations in developed international markets remain attractive; and, emerging and frontier market valuations are attractive relative to their high growth rates. Global Bond Markets While we remain concerned about the seemingly never-ending sovereign debt crisis in Europe, we believe current yield levels offered by some of the periphery states compensate investors for those risks. Longer term we believe developed foreign government bonds will outperform U.S. Treasury bonds due to their higher yields and less inflationary central bank policies. We would underweight emerging market debt as we believe those yields no longer compensate investors for the inherent inflation and credit risks.
  5. 5. Telemus Capital | Spring 2013 | 5 Equities The upcoming year will be an interesting one. The US seems in relatively good shape versus much of the world. Signs of life in housing and strong benefits in the industrial sector from low natural gas prices are positively impacting the economy. While increased taxes may be a drag, we are hopeful that slow but steady growth in the US is maintained. China also seems to be stable and Europe does not appear to getting worse although growth will likely be very low at best. Equities are very attractive relative to bonds and fairly priced on an absolute basis if growth is as we expect. We are in the midst of calendar year-end 2012 earnings reports and, to date, have been generally pleased with how our companies are performing. We are hopeful that the early operational and market strength of our portfolio companies continues for the balance of 2013. For the fourth quarter the equities in the Partner’s Account declined 0.40% roughly in-line with the S&P 500 which declined 0.38%. For the full year 2012, the equities returned 13.0% versus the S&P 500 up 16.0%. The account, including cash returned 12.5%. These figures are gross of fees. Despite solid absolute returns, the account trailed the S&P 500. Our shortcomings in 2012 were from both omission and commission. We had and continue to avoid balance sheet financials – banks and investment banks. Despite “looking cheap” last year, we find it very difficult to assign value to these businesses and also believe that the regulatory environment is fraught with hazard. That said, they are a significant part of the S&P and were up over 25%. On the commission side, we entered too early in one situation (CarboCeramic) and stayed too long in another (TempurPedic). These two positions cost approximately 175bps of performance. For the YTD some our best performing equities were Western Digital up 39% and Mastercard, Apple and Roper each up about 30%. On the downside our energy holdings hurt us, and Apache, Oil States and Marathon each declined 10-15%. Intel, which was added early in the year, ended the year down 20% from our purchase price. During the fourth quarter we made several changes to the Partner’s Account. We added Beam (BEAM) the purveyor of high end spirits and Michael Kors (KORS) the designer and retailer of clothing and accessories. To finance these purchases we sold DuPont and Apache. Each of these companies had been disappointing operationally and were sold at a loss. Provided By Timothy Evnin, Portfolio Manager, Evercore Equities
  6. 6. 6 | Telemus Capital | Spring 2013 Senior bank loans are a sub-set of the high- yield market with unique characteristics that afford investors the opportunity to pick up yield, diversify away duration risk and hedge against inflation. Bank loans are denoted as high-yield because the corporations issuing them tend to be highly leveraged. Unlike most corporate bonds, bank loans are syndicated or underwritten by large banks and offered in pools to financial institutions; they are not offered directly to or held by individuals. Participation by the individual investor is through the ownership of mutual funds or specialized Exchange Traded Funds (ETF’s). As their name implies, senior bank loans are generally the most senior debt in a company’s capital structure as they are “secured” by the firm’s assets. This securitization is collateralized by assets such as; equipment, inventory, real estate or account receivables. In the event of a corporate default, the loans have the highest priority of claim on a borrower’s assets and cash flow. Because of their senior status, bank loans are considered safer that traditional high- yield debt. Historically, their senior position in the capital structure has lead to higher recovery rates relative to junior claims. Not only has the default rate on bank loans been lower than traditional high-yield but the recovery rate for defaulted senior loans has historically averaged 80% of par (80 cents on the dollar) versus an average of 44% for traditional high-yield which is dominated by senior unsecured bonds.1 Another unique feature of bank loans is their variable-interest rate. Their rate adjusts every 30 to 90 days and is based upon a fixed- percentage spread over a floating base rate-- typically the London Interbank Offered Rate, or more commonly referred to as LIBOR. The fixed-spread, or risk premium, is determined by the credit quality of the issuer and the market’s appetite for more highly leveraged credits. Risk premium, or spread, refers to the increased yield an investor receives above a risk-free rate; in the case of bank loans it is LIBOR. On average, given their senior status, spreads on bank loans have been approximately 70% of the spread of high- yield bonds.2 As a point of reference, high-yield bond spreads have averaged 450 basis points (4.5%) over ten year Treasuries for the past twenty years.3 The duration (or the sensitivity to changes in interest rates) of a bank loan is near zero because of the regular adjustment of interest rates. Because their interest rates effectively reset to keep pace with the prevailing-yield environment, bank loans aren’t vulnerable when interest rates trend higher. In a rising interest environment, variable rate loans tend to outperform fixed-rate securities. They are viewed by many as a hedge against inflation; in periods when inflation heats up interest rates tend to move higher and those higher rates flow through to bank loan holders. What is not well understood is that in a flat-rate environment, bank loans also tend to outperform the broad bond market. The main reason is the yield advantage or spread the securities provide over higher quality bonds. As with all corporate debt, high-grade or high- yield, spreads can contract or widen depending upon the market’s assessment of credit risk. The obvious risk or Achilles’ heel of bank loans is a severe, protracted economic environment where businesses struggle and defaults increase. During the financial crisis of 2008, amidst the panic, liquidity dried up and hedge funds were forced to dump loans on the market to meet margin calls; bank loans lost, on average, 29% of their value.4 Prior to and since the financial crisis, the available data shows that bank loans have provided stable returns with relatively low volatility. Since 1989, even during recessionary periods, banks loans Fixed Income By Mary Bakhaus, Partner and Senior Advisor
  7. 7. 5.25% 5.50% 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75% 0.0% 31.7% 26.0% 20.8% 16.1% 11.7% 7.6% 3.9% 0.4% -2.8% -5.8% -8.7% 1.0% 33.0% 27.3% 22.0% 17.2% 12.8% 8.7% 4.9% 1.4% -1.9% -4.9% -7.8% 2.0% 34.3% 28.5% 23.2% 18.3% 13.9% 9.7% 5.9% 2.4% -0.9% -4.0% -6.9% 3.0% 35.6% 29.7% 24.4% 19.5% 14.9% 10.8% 6.9% 3.3% 0.0% -3.1% -6.0% 4.0% 36.8% 30.9% 25.5% 20.6% 16.0% 11.8% 7.9% 4.3% 0.9% -2.2% -5.1% 5.0% 38.1% 32.2% 26.7% 21.7% 17.1% 12.9% 8.9% 5.3% 1.9% -1.3% -4.3% 6.0% 39.4% 33.4% 27.9% 22.8% 18.2% 13.9% 9.9% 6.3% 2.8% -0.4% -3.4% 6.5% 40.1% 34.0% 28.5% 23.4% 18.7% 14.4% 10.4% 6.7% 3.3% 0.1% -2.9% 7.0% 40.7% 34.6% 29.1% 24.0% 19.3% 15.0% 10.9% 7.2% 3.8% 0.5% -2.5% 8.0% 42.0% 35.8% 30.2% 25.1% 20.4% 16.0% 12.0% 8.2% 4.7% 1.4% -1.6% 9.0% 43.3% 37.1% 31.4% 26.2% 21.4% 17.0% 13.0% 9.2% 5.6% 2.3% -0.7% 10.0% 44.6% 38.3% 32.6% 27.3% 22.5% 18.1% 14.0% 10.1% 6.6% 3.3% 0.2% 11.0% 45.8% 39.5% 33.8% 28.5% 23.6% 19.1% 15.0% 11.1% 7.5% 4.2% 1.0% 12.0% 47.1% 40.8% 34.9% 29.6% 24.7% 20.2% 16.0% 12.1% 8.5% 5.1% 1.9% 13.0% 48.4% 42.0% 36.1% 30.7% 25.8% 21.2% 17.0% 13.1% 9.4% 6.0% 2.8% MLP Total Returns at Different Growth and Yield Scenarios Alerian MLP Index Yield in 12 Months 2013DistributionGrowth Index performance shown is for illustrative purposes only. Past performance is not indicative of future results. Index performance does not reflect the deduction of fees or expenses. Note that an investor cannot invest directly in an index. 1 Figures are estimates only and may vary significantly. 5.25% 5.50% 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75% 0.0% 31.7% 26.0% 20.8% 16.1% 11.7% 7.6% 3.9% 0.4% -2.8% -5.8% -8.7% 1.0% 33.0% 27.3% 22.0% 17.2% 12.8% 8.7% 4.9% 1.4% -1.9% -4.9% -7.8% 2.0% 34.3% 28.5% 23.2% 18.3% 13.9% 9.7% 5.9% 2.4% -0.9% -4.0% -6.9% 3.0% 35.6% 29.7% 24.4% 19.5% 14.9% 10.8% 6.9% 3.3% 0.0% -3.1% -6.0% 4.0% 36.8% 30.9% 25.5% 20.6% 16.0% 11.8% 7.9% 4.3% 0.9% -2.2% -5.1% 5.0% 38.1% 32.2% 26.7% 21.7% 17.1% 12.9% 8.9% 5.3% 1.9% -1.3% -4.3% 6.0% 39.4% 33.4% 27.9% 22.8% 18.2% 13.9% 9.9% 6.3% 2.8% -0.4% -3.4% 6.5% 40.1% 34.0% 28.5% 23.4% 18.7% 14.4% 10.4% 6.7% 3.3% 0.1% -2.9% 7.0% 40.7% 34.6% 29.1% 24.0% 19.3% 15.0% 10.9% 7.2% 3.8% 0.5% -2.5% 8.0% 42.0% 35.8% 30.2% 25.1% 20.4% 16.0% 12.0% 8.2% 4.7% 1.4% -1.6% 9.0% 43.3% 37.1% 31.4% 26.2% 21.4% 17.0% 13.0% 9.2% 5.6% 2.3% -0.7% 10.0% 44.6% 38.3% 32.6% 27.3% 22.5% 18.1% 14.0% 10.1% 6.6% 3.3% 0.2% 11.0% 45.8% 39.5% 33.8% 28.5% 23.6% 19.1% 15.0% 11.1% 7.5% 4.2% 1.0% 12.0% 47.1% 40.8% 34.9% 29.6% 24.7% 20.2% 16.0% 12.1% 8.5% 5.1% 1.9% 13.0% 48.4% 42.0% 36.1% 30.7% 25.8% 21.2% 17.0% 13.1% 9.4% 6.0% 2.8% MLP Total Returns at Different Growth and Yield Scenarios Alerian MLP Index Yield in 12 Months 2013DistributionGrowth 1 |7Telemus Capital | Spring 2013 Fund Spotlight: Salient MLP & Energy Infrastructure have posted positive returns every year except 2008.5 As with all of high-yield, we view the inclusion of senior bank loans as a diversifier in client portfolios, whether they are fixed or balanced portfolios. Over the last 25 years, bank loans have had a zero correlation to investment grade bonds (Barclays Aggregate Index) and a low correlation of .4 to equities (S&P 500).6 This low correlation to other asset classes allows us to build efficient portfolios that can help reduce volatility while enhancing potential returns. In 2012, the Alerian MLP Index lagged the S&P 500 for the first time in 12 years. The AMZ generated a total return of 4.8% -- more than 11% behind the SPX total return of 16.0%. Distribution growth in 2012 came in above our expectations (7.7% actual vs. 6.5% expected) but MLP prices fell, driving the yield on the index from 6.1% at the end of 2011 to 6.6% at the end of 2012. MLPs lagged the S&P 500 all year long, but almost half of the relative underperformance for 2012 occurred over the last two months. In fact, the AMZ was down 3.9% while the S&P 500 was up 1.5% during the November-December time frame. We believe a major culprit of the recent weakness was the expected change in long-term capital gains tax rates, which moved from 15% in 2012 to 20% plus the 3.8% Medicare surcharge on January 1 (for a total tax rate of 23.8%) for those with income above a certain threshold. Since MLPs have been up cumulatively over 100% on a price basis since the end of 2008, we believe that some investors may have locked in the 15% tax rate before year-end. Not surprisingly, MLPs Provided By Ted Gardner, Senior Portfolio Manager, Salient 1 2 3 4,5 6 Source: Moodys Source: Credit Suisse Source: KDP Source: Morningstar Source: BlackRock
  8. 8. 8 | Telemus Capital | Spring 2013 have had a significant bounce thus far in 2013 as the tax selling abated. Due to the relative weakness in 2012, we believe that total returns in 2013 could potentially be strong. The yield of the AMZ was ~6.6% on December 31 and analysts currently expect 6.5% to 7.0% distribution growth in 2013. Using a growth estimate of 6.5%, we believe that total returns may be in the 6% range on the low end, with a possibility of a 23-24% total return. We believe that yields may return to the 6.0-6.25% range than increase further at this point. At a 6.25% ending yield, the index could return 18.7% for the year; at a 6.0% yield, the total return could be 23.4%. The risk factors that may impact MLP and midstream company volumes, cash flow, and valuations this year include (but are not limited to) potential economic weakness, questions regarding the tax status of MLPs, a decline in crude oil, natural gas, and natural gas liquids (NGL) prices, and widening credit spreads. Telemus Wealth Advisors With the passage of the American Taxpayer Relief Act of 2012 (“ATRA”) there was a collective sigh of relief as the crippling fiscal uncertainty was behind us. The fear that taxes would revert back to what was in place in 2001 impacted the ability to make long term decisions for both businesses and individuals. Resolution of the so- called “fiscal cliff” in the form of ATRA, was one of the factors that led to a strong 2013 start in the financial markets and will hopefully be followed by a quick and fair resolution of the current budget discussions. The U.S. tax code will always be in flux, as is being demonstrated by the current budget negotiations, but there is finally a sense that for the majority of taxpayers, the estate tax structure put in place by ATRA will remain relatively constant going forward. In addition, based on the current structure the estate tax will only impact those with significant accumulated wealth exempting the majority of taxpayers from its thrust. For those still subject to the estate tax, the planning done in 2012, when there was fear of a major estate tax overhaul is still valuable given the increase in the estate tax rates, as indicated below. All of the above exemptions are now adjusted for inflation which will protect many more in the future from being subject to estate taxes. ATRA also made permanent “portability” or the ability of a married couple to use the unused exemption of a deceased spouse, thus allowing a couple to effectively exempt $10.5 million from estate taxes. By Andrew Bass, CWM, CPA Chief Wealth Officer and Senior Advisor Research and advisory services are provided by Salient Capital Advisors, LLC, a wholly owned subsidiary of Salient Partners, L.P. and a U.S. Securities and Exchange Commission Registered Investment Adviser. Salient research has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Salient recommends that investors independently evaluate particular investments and strategies, and encourage investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Salient is the trade name for Salient Partners, L.P., which together with its subsidiaries provides asset management and advisory services. 2012 2013 and Beyond Estate Tax Exemption and Top Rate $5,120,000 35% $5,250,000 40% Gift Tax Exemption and Top Rate $5,120,000 35% $5,250,000 40% GST Tax Exemption and Top Rate $5,120,000 35% $5,250,000 40%
  9. 9. Telemus Capital | Spring 2013 | 9 2012 2013 Top Ordinary Income Tax Rate 35% 39.6% Short Term Capital Gain Rate 35% 39.6% Long Term Capital Gain Rate and Qualified Dividend Tax Rate (for taxpayers with taxable income below $400K/$450K) 15% 15% Long Term Capital Gain Rate and Qualified Dividend Tax Rate (for taxpayers with taxable income above $400K/$450K) 15% 20% Wage Surtax (for taxpayers with compensation income above $200K/$250K) n/a 0.9% Investment (Health Care) Surtax (most taxpayers with investment income over $200K/$250K) n/a 3.8% Limitation on itemized deductions & personal and dependent exemptions (taxpayers with AGI over$250K/$300K) None Yes Going forward, the focus for many will be on income preservation and risk management with the goal of keeping and protecting what one creates and accumulates. Below is a brief summary of the ATRA income related tax changes effective in 2013. The above changes, when added together can significantly increase the taxes of the “wealthy” with a potential marginal rate in excess of 43.4% and when including one’s state income tax, such marginal rate could rise to over 50%. In addition to the above changes the Alternative Minimum Tax (“AMT”) has been permanently “patched” with the base exemption being fixed ($78,750/$39,375) and with the exemption being indexed for inflation so as to prevent inflation causing more people to be impacted by the AMT. This provision of ATRA will have the single largest impact on government revenue, being estimated to result in a revenue reduction of $1.8 trillion over the next ten years. Thus for many, the focus looking forward has shifted significantly towards current after tax cash flow planning in addition to estate and asset preservation planning. Some areas that will receive greater focus are: • Maximizing income deferral or exemption techniques • Maximizing income shifting techniques between family members and entities • Maximization of qualified and non- qualified compensation plans • Structuring how and when income is realized including use of tax sheltering vehicles. • Tax sensitive investment management including the use of tax favored investments • Utilization of asset protection strategies and trusts that depending on the structure can have tax advantages as well as protection benefits. The key is timely and thought out planning which is best accomplished through effective communication and coordination between your tax, financial and legal advisory team members.
  10. 10. southfield, michigan two towne square, suite 800 southfield, Michigan 48076 248.827.1800 fax 248.827.1808 ann arbor, michigan 110 Miller avenue, suite 300 ann arbor, Michigan 48104 734.662.1200 fax 734.662.0416 800.827.3519