Full Service Wealth Management
Often, when people (many financial advisors included) hear the term "Wealth Management," they think only of investments. In fact, nothing could be further from the truth. Investment management is merely a sub-component of Wealth Management. Wealth Management is a holistic, top-down process designed to maximize an individual or family's total wealth picture for today, for tomorrow - and for future generations. It encompasses your personal values, goals, dreams, experiences, and future desires. Some of the more important assets in your total Wealth Management picture may not be truly your own - but are social assets that must be optimized on your behalf. Full Service Wealth Management requires a team of highly specialized advisors and other professionals working in a coordinated fashion to achieve your goals. No single advisor can perform the task of Full Service Wealth Management. By training, the CERTIFIED FINANCIAL PLANNER™ professional is ideally suited to coordinate all other specialists' actions on behalf of the client. Commonly, this function is known as the "Chief Financial Officer," "Financial General Contractor," "Financial Quarterback," or "Chief of Staff." Whatever the term - if your financial advisor is not performing this function... perhaps you should upgrade. Likely, you are paying too much for too little.
Wealth Management is a holistic and comprehensive service that actually consists of the following subcomponents:
- Wealth Enhancement
- Wealth Protection
- Wealth Transfer
- Charitable Planning
Wealth Enhancement consists of using multiple strategies to grow your wealth, to maximize your income from your wealth, and maximize tax savings. These strategies include:
- Very low-cost portfolios designed to maximize expected returns within a specific risk tolerance
- Multiple retirement plan comparisons and Monte Carlo testing to help determine which strategies have the highest odds of success before choosing a strategy
- Advanced Retirement Income strategies such as Bucket Strategy, Spending Floor/Ceiling, Inflation Cap, Portfolio Return Freeze, and others
- Systematic Roth Conversions, Income shifting between family members, and IRA/401k withdrawal planning
- Social Security and Pension Maximization strategies
- Individual Bond and Tax-Free Municipal Bond portfolios components to provide steady, predictable income streams when appropriate
- The use of Exchange Traded Funds (ETFs) in order to avoid unexpected capital gain distributions that are problematic with most mutual funds
Wealth Protection includes strategies to prevent your assets from being unjustly taken away! This means we routinely make risk management recommendations to protect against catastrophe, litigation, identity thieves, unwise choices, Special Needs, or errant family members. Additionally we are one of the few financial firms who will automatically adjust your portfolio to protect against recessions - the number one cause of market crashes. This process is known as our "Recession Protocol™."
- Portfolios designed with protection in mind - which we will automatically adjust when indicators of recession loom
- Periodic reviews in which we discuss and help you decide upon actions involving appropriate insurances of many types. Keep in mind that we do NOT sell insurance products - nor do we gain any financial benefit from your purchase of any products from anyone. However, adequate insurance of all types is a critical component in Wealth Protection, and we help you make these decisions and implement them with as little frustration as is possible.
- Survivor Planning using the Survivor Needs Analysis technique - allowing the survivor to dictate their own lifestyle and postmortem actions
- Veterans Benefits, Medicare supplement, and Special Needs planning - a critical component to your plan if you have a Special Needs person in your life
- Referral to asset protection attorneys as necessary, when an asset titling issue becomes apparent
- Long Term Care, Elder Care, Assisted Living, and planning for successfully and safely aging in place - for you or for your elderly parents
Wealth Transfer strategies to transfer wealth into the hands of chosen heirs in the most efficient, effective, hassle-free, and tax friendly manner possible. Generally this planning is known as Estate Planning, but may well occur while you are alive. We help coordinate your financial plan with your Estate Plan. Generally, by distilling complex ideas into simple and easy to understand strategies, we help you decide what you want your Wealth Transfer plan to look like. The Estate Planning Attorney drafts the documents and provides legal counsel - and then we help you execute the plan by ensuring that your financial assets properly reflect your estate plan and do not undermine your attorney's work.
- Planning for Disability - documents which identify individuals you can rely upon for care of your financial assets in the event you cannot
- Special Needs Planning - planning to protect benefits for heirs who may have handicaps or disabilities. Often inheriting money will eliminate your special needs loved one from eligibility for government benefits and scholarships. This can be avoided through proper Special Needs planning and legal documents - but only if done in advance.
- Wills, Trusts, Powers of Attorney, and Health Care Directives. Your Estate Planning Attorney drafts these documents; we ensure their proper coordination throughout your accounts
- Beneficiary designations and Account Titling - some assets are not controlled by a will or your estate plan. Knowing which ones operate outside of wills and trusts, and correctly integrating them with your overall plan, is critical to your plan's success.
- Lifetime gifting, income shifting between family members, installment notes, and family-owned business strategies
- Strategies to reduce or eliminate Gift Tax and Estate Tax, if applicable.
Not everyone is charitably inclined. If you are, some charitable giving strategies are efficient and maximize your gifts, while others do not. If charitable giving is important to you, we can help you not only maximize the impact of your giving strategies to your charities, but also maximize the tax, social, and living benefits of being a donor or benefactor.
- Discuss, explain, and help you decide upon and implement charitable strategies such as Charitable Lead Trusts, Charitable Remainder Trusts, gifting appreciated assets, and using life insurance, Donor Advised Funds, or charitable annuities for your giving strategies
- Help you take advantage of rapidly changing tax laws that address charitable giving - such as directing Required Minimum Distributions from your IRA to your charity for maximum tax impact. These laws frequently change, sometimes at the last minute - and working with an advisor who can integrate these laws into your planning can save tax dollars.
- Strategies to enhance the social standing of yourself or your family while benefiting causes that are important to you
- Advise you on creating Family Foundations or Private Charities to more directly control your giving - not only for your own lifetime, but for the lifetimes of your heirs as well
PARAGON's financial advisors work as a coordinated team, not as individual advisors. This allows each of us us to individually focus on creating specialized knowledge that each financial advisor can bring to the table as a part of an integrated, holistic team, working on your behalf. Few of our clients need ALL of the above services, but nearly all of them need at least SOME of them. These services are generally provided to our Wealth Management clients without additional costs. If you are paying asset management fees to an advisor but are not currently receiving these services, we encourage you to explore how working with PARAGON can benefit you or your family by scheduling a Discovery Meeting.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame logo) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
Investment Advisory Services Provided by Paragon Wealth Strategies, LLC, a registered investment adviser.