Professional Documents
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With an appropriate wealth management strategy, the overall objective is wealth preservation and enhancement through a disciplined approach to investment, combining:
1. A thorough understanding of your individual circumstances, income requirements, return expectations, risk appetite and other objectives.
2. A complete and detailed analysis on your personal business including recommendation regarding succession planning, buy-outs, IPOs & any other customized solutions.
3. Asset allocation and selection expertise that reflects our clients specific goals.
4. A well-established, prudent investment philosophy. 5. Strong emphasis on client communication and reporting.
(Titel of the presentation, Date, Department, Name) Page 4
Your Private Banker in Deutsche Bank can access and co-ordinate with the professionals at DBITC who have expertise in Trust and Estate Planning in order to safeguard your wealth and facilitate effective wealth conservation.
US based Trust & Estate Planning incorporating all aspects of US laws & regulations are accessed through our local Trust experts in NY
Insurance
Estate Planning
Businesses:
(1) Plastic Company (2) French Restaurant
75 years of experience as international lawyer and tax advisor Financial and law degrees of the universities of Harvard, Capetown, Stockholm and Cuala Lumpur Over 150 publications in the main law and financial magazins of the world
B.S. Finance: Boston University MBA: Wharton Business School PhD in Philosophy & Political Science: Harvard University
Retirement plan for the firm: 401(k) Pension Fund (defined contribution), defined benefit, Stock Options
Orderly transfer of business if any partners of the partners wants to sell out or dies
Permits co-owners to continue in their business roles Allows a fair-market price for the business to be agreed upon today Who will fund this Agreement???
Through an Insurance (Business has good strong cash position able to buy this insurance)
Partners may sell out their shares but could remain involved in the business as a Business Advisor or Director => Consultant agreement Employees to purchase the shares of any partners who want to sell-out => Possibly could get increase in credit
Synergies
Find a partner who could bring additional value to the firm: Example, a firm / partner who is strong in distribution or marketing Strategic partners to consolidate with competitors (although you may get the lower value)
Stock Options
Personal Investments
Asset Allocation
Recommendations
Personal Investment
Used assets are not included
Is your current investment asset allocation adequate? Cash Equivalents Certificate of Deposit U.S. Treasury Notes Municipal Bonds Large Cap U.S. Growth Stocks Commercial Real Estate French Restaurant Stock in Plastics Company $ 57,000 $ 100,000 $ 175,000 $ 310,000 $ 285,000 $ 375,000 $ 55,000 $ 380,000 (3.38%) (5.93%) (10.37%) (18.38%) (16.89%) (22.23%) (3.26%) (22.53%)
Businesses 25%
Cash/CDs 9%
Treasuries 10%
Recommendations I
Commercial real estate investment ties up too much capital ROE (Cash Flow) too low (7.7%) Suggestion: Refinance existing mortgage up to maximum allowed value Interest cost of mortgage is tax deductible Additional cash becomes available for investment in company
Solution:
Equity 31%
Cash/CD's 17%
Equity 40%
Recommendations II
Current financial market asset allocation is not balanced enough! Goals:
1. Capital Appreciation on investments Restructure to a Balanced Portfolio: 10% Cash/CDs, 40% Equities, 50% Fixed Income Switch USD Large Cap Growth Stock Portfolio to globally diversified Portfolio of Growth Stocks This allocation should produce stable returns on a risk-adjusted basis To reduce cash by approximately 7% 2. Minimize taxes I.e. The Gift-Tax Annual: tax exclusion of $10,000 (preferably to transfer to someone with a low tax bracket) Suggestion: Enable you to give $10,000 p.a. to each grandchild
Trust Structures
QTIP Trust I
QTIP Trust To include the current life insurance
QTIP Trust I
Charity Remainder Trust Property Owner Bill Wyatt Income Beneficiary June Wyatt