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Best States for Business; Hip Retail in Minneapolis; Eight Flourishing Family Companies

Choosing the Right Trustee; 10 Steps to Family Financial Health; Preparing Children for Estate Stewardship

How to Boost Your Life Span; Seven Great Family Trips; Should You Spy on Your Kids?

Top Cigars and Surprising Drinks; Heirlooms for Sons and Daughters; Five New Luxury Family Cars

the evolution of financial intelligence

Protecting Wealth T h e

F a m i l y

i s s u e


volume 22


edition 03

live grow make


le Ading w e Alth A dvisors

W e l c o m e t o t h e 2 0 1 3 Wo r t h ® l e a d i n g W e a lt h a dv i s o r s


All firms and advisors have submitted comprehensive questionnaires, used by Worth to evaluate their credentials, disciplinary history and business practices. Advisors ultimately selected for the program contribute to the magazine's production costs. As part of the screening process, the magazine also contracts with Paladin Advisor Research, an information services company that researches financial professionals for investors. Paladin's founder, Jack Waymire, is author of Who’s Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor, as well as a contributing writer at Worth.

gina teresi . . . . . . . . . . . . . . . . . . . . . . . . . . . Aig . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . new York, nY. . . . . . . . . . . .74 Andy schwartz, CFP®. . . . . . . . . . . . . . . . . . Bleakley, schwartz, Cooney & Finney at northwestern Mutual. . . . Fairfield, NJ . . . . . . . . . . . . . .76 Joseph Gendelman . . . . . . . . . . . . . . . . . . . . Bruce Gendelman Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . new York, nY. . . . . . . . . . . .78 Marc J. Minker, CPA, PFS, CFF . . . . . . . . . CBiZ MhM llC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . new York, nY. . . . . . . . . . . 80 Mary M. deatherage . . . . . . . . . . . . . . . . . . Deatherage Group at Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . Little Falls, NJ . . . . . . . . . . . 82 Craig Pastolove, CiMA®, CPwA®, PrP®. . . excelsior wealth Management at Morgan stanley. . . . . . . . . . . . . . . new York, nY. . . . . . . . . . . 84 Marc lowlicht, CFP®, MsFP . . . . . . . . . . . . Further lane Asset Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . new York, nY. . . . . . . . . . . 86 Jeffrey S. Gerson. . . . . . . . . . . . . . . . . . . . . . Gerson, Guarino & Meisel Group at Morgan Stanley. . . . . . . . . . . . . . new York, nY. . . . . . . . . . . 88 ed gumbrecht . . . . . . . . . . . . . . . . . . . . . . . . Gowrie Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . westbrook, Ct . . . . . . . . . . 90 henry smith . . . . . . . . . . . . . . . . . . . . . . . . . Haverford Trust Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . radnor, PA . . . . . . . . . . . . . 92 Amy Ciasulli. . . . . . . . . . . . . . . . . . . . . . . . . . lane Mcvicker llC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . new York, nY. . . . . . . . . . . 94 Michael Kazakewich, CFP®, CrPC® . . . . . . llBh Private wealth Management llC . . . . . . . . . . . . . . . . . . . . . . . . Westport, CT . . . . . . . . . . . 96 leslie Quick . . . . . . . . . . . . . . . . . . . . . . . . . . Massey, Quick & Co., llC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Morristown, NJ. . . . . . . . . . 98 roy williams, ChFC®, ClU® . . . . . . . . . . . . . Prestige Wealth Management Group . . . . . . . . . . . . . . . . . . . . . . . . . . . Flemington, NJ . . . . . . . . . 100 Al Zdenek, CPA/PFs . . . . . . . . . . . . . . . . . . traust sollus wealth Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . new York, nY. . . . . . . . . . .102 Advisors are listed here by firm name. Worth magazine is a financial publisher and does not recommend or endorse investment, legal, insurance or tax advisors. The listing of any firm in the 2013 Worth® Leading Wealth AdvisorsTM Program does not constitute a recommendation or endorsement by Worth magazine of any such firm and is not based upon Worth magazine's experience with or prior dealings with any advisor. The information presented for each advisor, including but not limited to any related profile, statistical data, presentation, report, commentary, recommendation or strategy, has been provided by such advisor without review or independent verification by Worth magazine. Any such information is the sole responsibility of the advisor. Worth magazine makes no representation or warranty as to the accuracy or completeness of such information, assumes no liability for any inaccuracies or omissions therein and disclaims responsibility for the suitability of any particular investment recommendation or strategy for any person. Nothing contained in Worth magazine constitutes or should be construed as any form of investment, legal, insurance or tax advice or as a recommendation to buy, sell, hold or trade any securities, financial instruments or assets. Readers are advised to consult their legal, financial, insurance and tax advisors prior to making any investment or pursuing any investment strategy. Past, model or hypothetical performance is not indicative of future results.


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New York, NY

Leading Insurance Advisor

AIG Gina Teresi, Vice President, AIG Private Client Group

What do horse owners need to know when it comes to insurance? By Gina Teresi For many, owning a horse is the realization of a lifelong passion, but it also can increase your risk of financial losses or lawsuits. Whether you board your horse on your own property or at a professional facility, give special consideration to your insurance needs to make sure you’re adequately protected. Following are important questions to discuss with your independent insurance advisor: Do you have clear proof of coverage on your policies? Many owners assume their horses have coverage under their homeowners policies, but limitations or exclusions are common. That is not something you want to learn only after you have had to file a claim. How does the manner in which you purchased your horse affect your coverage? If the horse was purchased under an entity’s name, such as an LLC or LLP, your homeowners or personal liability policies most likely do not extend coverage to the entity. Therefore, any damages or injuries caused by your horse will be excluded as well. Are other horses boarded on your personal property? Some insurance providers consider horses kept on your personal property as paying

boarders to be an incidental business, which means coverage may be limited or excluded. Do you need workers’ compensation insurance? State employment laws often require you to carry workers’ compensation insurance if you employ full- or part-time help around your barn. Your homeowners policy may exclude coverage in the event that a worker is injured on your property. Do you or anyone in your family ride, show or compete off your property? If so, some or all of those activities may not be fully covered by a basic insurance policy. AvAilAble insurAnce solutions The added risks related to horse ownership cannot be adequately addressed on one policy, so consider insurance carriers that can provide a suite of policies with the features needed to address your unique lifestyle and needs. Some of the key points to look for when weighing traditional policies and supplemental insurance include: equine liability: You should have worldwide liability coverage for bodily injury and property damage caused by your owned or leased horses, to keep

you protected no matter where you ride, show or transport your horse. equine mortality and medical coverage: You may want to insure your horses by adding mortality insurance or major medical coverage, to reimburse you for veterinary expenses in the event of an injury or illness. Homeowners: If you keep horses on your property, your homeowners policy should provide broad coverage for private barns, fencing, outbuildings and equipment. Automobile: If your personal vehicle or horse trailer breaks down, you will want a policy that gives you access to roadside assistance and towing for vehicles and trailers. travel and accident: As you travel the country (or the world), you will need coverage in the event of trip interruption, cancellation, illness, injury or medical evacuation service. collectibles: You can protect virtually anything—from sporting art of your treasured animals to trophy collections—with private collections insurance. Farm and ranch: In the event that your passion is more commercial in nature, there are designated coverages to address the related risks.

American International Group, Inc. (AIG) is a world-leading property-casualty and general insurance organization servicing more than 70 million clients around the world. Through its Private Client Group division, successful individuals can access innovative protection for homes, excess liability, automobiles, private collections, yachts and more. AIG Private Client Group also offers supplemental services designed to minimize property damages, safeguard fine art and other collectibles, and bolster family safety.


“Many owners assume their horses have coverage under their homeowners policies, but limitations or exclusions are common.”

How to reach Gina Teresi


Horses are a passion of mine, and I would be pleased to discuss options for equine insurance with you. To learn more, please contact me at 585.662.5965 or


—Gina Teresi



Any time spent with my husband and children—without the interruption of a Blackberry or iPhone! MY HO BBIES AR E…

Horseback riding. There is nothing that rejuvenates my spirit like spending time at the barn or riding one of my two off-the-track thoroughbreds. WH AT I ’M RE AdI ng nOW…

The Age of Miracles by Karen Thompson Walker

About Gina Teresi Gina Teresi is an expert in finding new and unique ways to protect the assets of successful individuals and their families through insurance. In her present role with AIG Private Client Group, she manages the strategic development and implementation of insurance solutions for equine owners. In addition, Ms. Teresi helps family offices match their clients with best-in-class insurance brokers who specialize in designing customized risk-management programs. Prior to joining AIG, she spent 14 years in the high net worth property and casualty division of Chubb Insurance. In her last five years with Chubb she focused on the firm’s premier Signature segment, which services clients with especially complex insurance needs, and was its family office manager. Ms. Teresi graduated from Gettysburg College with a dual major in economics and studio art.

Insurance Services Experience 21 years


Education BA, economics, studio art, Gettysburg College


Association Memberships National Council for Continuing Education and Training (property and casualty trainer)


Private Client Group

180 Maiden Lane, New York, NY 10038


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New York, NY

Leading Wealth Advisor

Bleakley, Schwartz, Cooney & Finney at Northwestern Mutual John (Jack) Cooney, CPA, CLU®, Partner; J. Reed Finney, CFP®, CLU®, Partner; Andy Schwartz, CFP®, Partner; Scott Schwartz, CFP®, Partner

How do I take the right steps to a secure retirement? By Andy Schwartz People often ask me, “When can I retire? How much money will I need?” To save enough for a financially secure retirement, it is important to start early and stay disciplined. Today’s generations are living longer, so we need to plan for our finances to take us through our golden years. Whatever you avoid spending counts just as much as what you save. But you must also be able to visualize the retirement you want. Only then can you create a plan that incorporates three essential components: protecting your assets from risk, creating income that lasts your lifetime and planning your legacy. A RoAdmAP to YouR RetIRement Wealth accumulation typically begins with your first paycheck and continues throughout your career. How much savings will it take? It depends on the retirement lifestyle you envision. Where would you like to live? How much travel and what activities are in your plan? Will you volunteer? Work part time? Take the time to think about your future plans and you will have an easier time quantifying your needs. If you are married,

consider your spouse’s input and views. They may vary from your own. PRotect YouR Assets FRom RIsk As you contemplate your retirement goals, you need to understand and manage six key risks: (1) longevity— outliving your retirement income; (2) market downturns; (3) inflation and taxes; (4) health-care risks and rising medical costs; (5) long-term care and the prospect of unexpected extendedcare needs; and (6) your desire to provide for your heirs or charities. cReAte Income tHAt LAsts A LIFetIme Next, you will want to optimize your income in retirement, turning all or part of your accumulated assets into a steady, adequate, predictable income stream throughout your entire lifetime. A sensible distribution plan will anticipate possible changes in the economy, the markets and even in your own needs. It factors in all sources of retirement income and provides a strategy to help you prioritize and manage your retirement distribution and rollover options. Finally, it

considers various planning solutions, such as income annuities, to provide a stream of guaranteed income for life. LeAve A LegAcY FoR FutuRe geneRAtIons Few accomplishments are more satisfying than knowing your hard-earned assets will make a difference in the lives of others. Many people wish to create a legacy for loved ones or a favorite charity. Some retirees try to plan charitable giving with the same assets used to fund their retirement. That approach may fail them. A thoughtful plan helps maintain your lifestyle in retirement while ensuring that your legacy desires are fulfilled. Permanent life insurance can be an important estate planning tool. seek guIdAnce A strong retirement plan has lots of moving parts. It combines a clear vision with tailored solutions to address risks and optimize income. That is why professional guidance can make a difference. A qualified financial advisor can assess your circumstances and develop a customized plan to guide you not only to—but through—retirement.

Andy Schwartz offers advisory services as a representative of Northwestern Mutual Wealth Management Company (WMC), a limited purpose federal savings bank, and a wholly owned subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM). Northwestern Mutual is the fleet name for NM, its subsidiaries and affiliates. Investments held with or managed by WMC are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by WMC or its affiliates and are subject to investment risks, including loss of the principal. Andy Schwartz is an insurance agent of NM (life insurance, annuities and disability income insurance), and Northwestern Long Term Care Insurance Company, a subsidiary of NM, and a registered representative of Northwestern Mutual Investment Services, LLC (NMIS), an NM subsidiary, broker-dealer, investment advisor, member FINRA, SIPC. Bleakley, Schwartz, Cooney & Finney is a marketing name used by a group of Northwestern Mutual representatives (not all of whom are affiliated with WMC) including Schwartz (referred to as the “firm”), and is not a legal entity, partnership, investment advisor, broker-dealer or affiliate of NM. The information contained in this article is not a solicitation to purchase or sell investments or securities. The views expressed herein are those of the author and may not necessarily reflect the views of Northwestern Mutual.


How to reach Bleakley, Schwartz, Cooney & Finney

“As you contemplate your retirement goals, you need to understand and manage six key risks.”


Andy Schwartz and any member of our team can be reached at 973.575.4180. We look forward to hearing from you.


—Andy Schwartz

Ble akle y, Schwa rt z, cooney & Finney at northweS tern Mutual

Seated: John Cooney; standing, left to right: Andy Schwartz, J. Reed Finney, Scott Schwartz

About Bleakley, Schwartz, Cooney & Finney Bleakley, Schwartz, Cooney & Finney at Northwestern Mutual has been providing financial services to the metropolitan New York area for more than 30 years. The firm’s team of 30 associates and 70 staff serve high net worth individuals from offices in Fairfield, NJ. Andy Schwartz, CFP, wealth management advisor, assists clients with retirement funding, estate preservation and distribution, asset allocation, advanced financial planning and small business planning.


Assets Under Management $2.3 billion (firm—brokerage and advisory assets) Minimum Fee for Initial Meeting None required Minimum Net Worth Requirement $1 million in assets (investment services) Largest Client Net Worth Confidential Financial Services Experience A. Schwartz, 28 years; Cooney, 25 years; Finney, 27 years; S. Schwartz, 28 years

Compensation Method Asset-based fees and commissions (investment and insurance products) Primary Custodian for Investor Assets Accounts held at Northwestern Mutual Investment Services LLC, an introducing broker-dealer, member FINRA, SIPC. Accounts carried, and all transactions executed, cleared and settled through Pershing, a BNY Mellon Company, member FINRA, NYSE and SIPC. Professional Services Provided Planning, investment advisory and money management services Website Email

Bleakley, Schwartz, Cooney & Finney at Northwestern Mutual

100 Passaic Avenue, Suite 300, Fairfield, NJ 07004 worth.coM

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New York, NY

Leading Insurance Advisor

Bruce Gendelman Company Joseph Gendelman, President and CEO

How can I involve my entire family in our personal property insurance plan? By Bruce Gendelman, JD, Chairman, and Joseph Gendelman, President and CEO We all know that affluent clients have special needs when it comes to insuring their properties and belongings. On top of this, insuring an extended multi-generational family with the need for significant asset protection can take the insurance conversation to a whole other level. Affluent families must not only ponder critical financial issues, but also face the complicated challenges of preparing the next generation to meet their responsibilities. With affluent clients the family’s insurance profile inherently becomes more complex. It is imperative that all members of the family understand their insurance protection (and its limitations) because whether they like it or not, they will be considered “deep pockets.” Proper personal insurance is one of the easiest ways to protect the tangible assets you currently possess. Understanding insurance at a young age will help your family members keep their responsibilities in mind as they grow. In the course of parenting, you should explain the purpose and meaning of your family wealth, what “work” means, why philanthropy is important and what family members’ generational responsibilities are. Insurance (and the ability to preserve and protect the family assets) can, and should, be a part of the discussion. Look to your family to recognize insurance “red flags”: ARE YOU… • Well known in the community?

• Experiencing a liquidity or life event (marriage, divorce, children, transfer of wealth, etc.)? • A collector of jewelry, art, wine or valuable items? DO YOU… • Employ personal employees such as a nanny or assistant? • Conduct personal business using wireless technology? • Travel overseas? • Serve on the board of a public, private or not-for-profit organization? • Have personal assets held in a trust, LLC or limited partnership? • Have high-valued homes (primary, secondary, third, etc.)? Once you identify areas of vulnerability, you can engage in lively discussions with your family and your insurance advisor, who should help you with: • An estate and trust focus, with an emphasis on tax transfer solutions and funding alternatives. • Personal property and liability risk policies for luxury markets, including personal real estate, yachts, planes, cars, jewelry, fine art, wine and other collections. • Other protection needs, such as: directors and officers coverage, kidnap and ransom coverage, travel and accident coverage, personal security, domestic employee assistance, etc. • Integrated family office insurance solutions. • Family legacy through collections

management lending/gifting to cultural venues. • Strategies for successful philanthropic efforts. • Transition management when a new generation is on the horizon. All of the above items can and should be addressed from an insurance perspective in order to best protect you, your children and their children.

Your lifestYle isn’t something to change— but Your insurance maY be.

For more than 30 years, the sole focus of The Bruce Gendelman Company has been helping individuals, families, their organizations and interests protect their wealth. Based on that experience, our highly educated team understands the importance of developing riskmanagement strategies that can succeed in both hard and soft insurance markets. As a privately owned and operated company, we provide clients with stability and sophisticated risk management advice uncompromised by the demands of a public company. Our personal approach is distinctive and backed by a thorough knowledge of the ultra high net worth insurance market. Additionally, our carrier partners utilize their management teams to provide valuable advice on loss prevention services, your exposures and mitigating claims—offering the very best experience and advice available in the personal insurance world.


“Understanding insurance at a young age will help your family members keep their responsibilities in mind as they grow.”

How to reach Joseph Gendelman


Please contact me at 800.845.4145, ext. 13, for an initial consultation.


—Joseph Gendelman

Bruce Ge nde lm a n company

I N eVer l eaVe ho Me wITho UT...

T h e la s T b o o k I re ad was…

The Fishbowl Principle: Building the Ark for the 21st Century, by Bruce Gendelman, Robert Miller and David Taus (available at and on Kindle)

My iPhone—if my clients do not get a response back from me in five minutes, I am in a meeting or on an airplane

w h a T Ma k e s a g o o d c lI eN T …

Someone who is smart and challenges you to think outside the box.

Bruce Gendelman

Joseph Gendelman

About Joseph Gendelman


Joseph Gendelman has been the presiding president and CEO of the Bruce Gendelman Company since May 2008. Mr. Gendelman’s expertise in the high net worth property and casualty market has continued the steady growth and profitability of the family-owned and operated company that his father built 30 years ago. Mr. Gendelman is active in the New York community and is a member of the Young Presidents Organization and various charities. He is a graduate of Emory University. Compensation Method Fixed fees and commissions

Minimum Fee for Initial Meeting None required

Education BA, Emory University

Minimum Net Worth Requirement $5 million Largest Client Net Worth High-level Forbes 400 Insurance Services Experience 10 years

Bruce Gendelman Company

Professional Services Provided Ultra high net worth personal property and casualty insurance Association Memberships Young Presidents Organization Website

New York, NY


800.845.4145, ext. 13

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New York, NY

Leading Wealth Advisor

CBIZ MHM LLC Marc J. Minker, CPA, PFS, CFF, Managing Director and Private Client Services National Practice Leader; Gary DuBoff, CPA, CFP®, Managing Director; Rosanne Migliorino, Director

I’m not married, nor in a relationship; what should I do to protect my wealth? By Marc J. Minker Much has been written over the last few decades about the litigious nature of our society. Sadly, people of wealth have been, and will continue to be, targets of litigation. But regardless of whether such lawsuits have merit, there are several techniques you can utilize to protect your assets. At their most basic level, asset protection strategies aim to “build walls” around assets in a way that increases someone else’s difficulty in proceeding against them. While no asset protection design is totally ironclad or 100 percent creditor proof, and is always subject to the vagaries of state law, certain strategies go a long way toward preserving accumulated wealth. One of the most common contexts for employing asset protection strategies is the marital setting, as a replacement to, or adjunct of, a prenuptial arrangement. Let us face it: The topic of prenuptial arrangements often puts a damper on even the most idyllic of relationships. Initial discussions signal to the

other party that while there may be love, a lack of trust still exists. While this may not be the case, we know from experience how the subject will be interpreted by the other party. A good solution that lets you avoid the topic’s unseemly undertones is utilizing a trust structure that protects assets accumulated prior to marriage. An intervivos trust settled before a relationship takes root, and before an engagement or marriage, can effectively work as a de facto prenuptial arrangement. In order to effectively implement this technique, the monied person creates a trust to hold his or her assets. The trust must be carefully drafted to specify the situations and “rules” determining when a settlor (or beneficiary) of the trust can access funds or trust income. Further, it is imperative that the settlor name a capable and prudent trustee to oversee the administration of the trust and disbursement of funds based on these rules.

Often, family members are chosen to serve as trustees, since they have personal knowledge of the settlor and his or her lifestyle and needs. However, family members may be ill equipped to discharge their responsibilities in a manner considered prudent under a fiduciary standard. While the idea of naming a family member, or close friend or relative, has appeal, settlors should consider the use of a corporate trustee, or a trust protector, to demonstrate the formality of the trust arrangement. Professional trustees have significant experience making important decisions regarding assets; providing considerable oversight and services associated with trusts; and preparing annual trust income tax returns. What is more important is that nonrelative third parties have no emotional interest in the trust and will not be exposed to the couple’s dynamics. When considering an asset protection approach, be sure to consult with competent advisors.


How to reach CBIZ MHM LLC As a nationally ranked Top Ten accounting provider, we would be pleased to hear from you to discuss your unique financial administration needs. To speak with any member of our team, please call 212.790.5700.

grow make

“An intervivos trust settled before a relationship takes root, and before an engagement or marriage, can effectively work as a de facto prenuptial arrangement.” —Marc J. Minker


Left to right: Marc J. Minker, Gary DuBoff, Rosanne Migliorino

About CBIZ MHM LLC The Private Client Services group of CBIZ New York provides innovative solutions for managing the day-today financial administration activities of family groups and high net worth clients. For more than 40 years, CBIZ has developed numerous longstanding client relationships by simplifying the complexity, difficulty and burden of handling clients’ routine matters so they can enjoy the benefits of their families, wealth and lifestyles knowing their personal and administrative needs are being handled with the highest level of integrity and professionalism. As a nationally ranked Top Ten accounting provider (Accounting Today 2013), CBIZ’s multidisciplinary team of professionals is uniquely positioned to implement an end-to-end family office and personal business management approach with a full suite of customized services. Minimum Net Worth Requirement $10 million (planning services)


Minimum Fee for Initial Meeting None required Largest Client Net Worth $500 million+ Financial Services Experience 28 years (Minker) 33 years (DuBoff) 28 years (Migliorino)


Professional Services Provided Personal financial planning, personal business management, insurance/ risk management advice and products, family office services, divorce consultation, valuation services, corporate executive services, strategic tax planning, tax compliance, estate planning and wealth transfer Website Email

1065 Avenue of the Americas, New York, NY 10018

212.790.5700 wortH.CoM

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New York, NY—Little Falls, NJ

Leading Wealth Advisor

The Deatherage Group at Morgan Stanley Mary M. Deatherage, Managing Director—Wealth Management, Private Wealth Advisor, Senior Investment Management Consultant

How should I talk to my kids about money? By Mary M. Deatherage I recently interviewed Glenn Kurlander, managing director, head of Morgan Stanley Wealth Management’s Wealth Planning Centers and Morgan Stanley’s Family Governance & Dynamics service. Glenn has decades of experience working with families and a deep understanding of the dynamics that unite or divide generations, as well as the many different, deep-seated attitudes about wealth. Mary: Why do parents have such a hard time talking to their sons and daughters about money? Glenn: Money is the last taboo: the one topic that still causes discomfort and unease in many families. Unfortunately, when we let money become taboo, we’re not living up to our responsibilities to prepare and educate our children. Mary: How much do today’s kids really know about money? Glenn: Money is like sex. Just as with young kids and sex, when it comes to money, kids (of whatever age) know more than we think they know. But

they’re confused about what they think they know. Mary: What’s the best way to prepare for these conversations? Glenn: You have to come to terms with your own values about wealth before you discuss money with your kids. Many affluent parents have a fairly clear sense of the values that they’d like their kids to develop with respect to money, but they are less discerning about their own values. Thus, as an initial matter, we need to be honest with ourselves in examining our own values about wealth. Mary: Do you have guidance about what kind of communication works best? Glenn: As a general rule, conversations are much more effective than lectures, and that’s especially true when we’re talking to kids about money. Also, instead of giving them all the answers, it’s usually more effective to ask them questions. Let them supply the answers.

Mary: What is a common mistake you see parents make in their conversations about money? Glenn: It can be tough to keep ourselves from saying what we shouldn’t say. I think that’s because our attitudes about money are complex. A simple statement, often reflexive, can’t convey the whole truth. As a result, many of us will utter an offhanded or casual remark about money: statements that might not truly reflect our attitudes or that may have a germ of truth but require significant disclaimers. Mary: Does the time come when we shouldn’t talk about money anymore? Glenn: Talking with kids about money is not something we do once. It’s something we have to do repeatedly; it’s a lifelong enterprise. We don’t stop being parents in any other sphere until we stop being. And if we’ve done our jobs well, perhaps our kids hear our voices in their heads, helping them find their way, even after death has silenced us. If we continue being parents in all else, why should we think we stop when it comes to money?

Mary M. Deatherage is a Private Wealth Advisor with the Wealth Management division of Morgan Stanley in Little Falls, NJ. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, member SIPC: Morgan Stanley Financial Advisor(s) engage Worth to feature this profile. Mary M. Deatherage may only transact business in states where she is registered or excluded or exempted from registration: Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Mary M. Deatherage is not registered or excluded or exempt from registration.


How to reach Mary M. Deatherage I look forward to hearing from you and can be reached at 973.890.3015 or


“As a general rule, conversations are much more effective than lectures, and that’s especially true when we’re talking to kids about money.”


—Glenn Kurlander, Head of Family Governance, Morgan Stanley Wealth Management

The De aThe rage group aT Morgan STanley

wh at mak es a go o d c l ien t…

w ha t ma k e s a g o o d w e a lt h a d v is o r . ..

Someone who wants a relationship of equals, who wants to share concerns about the future and who is comfortable making decisions when presented with the pros and cons of several choices.

Someone who listens more than talks; who “gets” you on a deep level; who brings customized solutions and can help simplify the complexities in your financial life.

Left to right: Claudine Callison, Financial Advisor, Mary M. Deatherage and Jay Dewan, Private Wealth Advisor

About Mary M. Deatherage

illuStration by Kevin SproulS

Mary M. Deatherage is the lead advisor of The Deatherage Group within Morgan Stanley’s Private Wealth Management Division. The team of seven professionals, including Jay Dewan and Claudine Callison, identifies investment and wealth management strategies for high net worth individuals and families. Ms. Deatherage, a managing director and a private wealth advisor, has been among the top-rated women financial advisors in the Barron’s survey each year, since 2006,* and has received numerous industry recognitions. She started her career as a teacher, went on to become a CPA and started in the wealth management industry in 1986. assets under Management $1.4 billion (as of 3/1/13)

Compensation Method Asset-based fees and commissions (investment and insurance products)

Minimum net Worth requirement $5 million (planning services) $2 million in assets (investment services)

professional Services provided Planning, investment advisory and money management services

Minimum Fee for initial Meeting None required largest Client net Worth $50 million (as of 3/1/13) Financial Services experience 26 years

primary Custodian for investor assets Morgan Stanley Smith Barney LLC association Memberships American Institute of Certified Public Accountants, Association of Professional Investment Consultants Website email

*Please visit for more information on the Barron’s Top 100 Women Financial Advisors award methodology and criteria.

The Deatherage Group at Morgan Stanley

150 Clove Road, Little Falls, NJ 07424 (Main) 399 Park Avenue, New York, NY 10022



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New York, NY

Leading Wealth Advisor

Excelsior Wealth Management at Morgan Stanley Craig Pastolove, CIMA®, CPWA®, PRP®, Managing Director–Wealth Management, Financial Advisor Scott Sklar, Managing Director–Wealth Management, Financial Advisor Jesse Friedman, CFP®, Vice President–Wealth Management, Financial Advisor

I just retired. Now what? By Craig Pastolove PART II (Continued from the Apr/May Issue) One of our clients, the former CEO of a Fortune 1000 company, considers his thoughts about retirement. We hope this will provide insight to those who are about to retire or who have recently retired. How do you know when it is time to retire? When you are unhappy. You know when you look at yourself and say “It’s just not fun anymore.” Then it’s time. If you’re 90 years old and still having fun, I wouldn’t retire. I was at the point where I wasn’t happy. Are you happy now in your situation, or would you prefer to be working full time? I don’t miss for one moment operations. And I don’t miss having the anxiety of walking into work every morning. My personality is “You never want to disappoint people,” whether it is boards, customers or someone else, so every day was spent thinking how to satisfy different groups of people, and it was difficult, and I do not miss that for one minute. I am happy sitting on the board and talking to the CEO four times a week for an hour about strategy and leaving them to go do it. However, I still feel responsible to help them be successful.

Are you suggesting people should get on boards as you have done? You can’t just say that everyone should go get a certain type of position; it really depends on their personality. It is your personality that dictates what you should be doing. If you’re young at heart, then it doesn’t matter, your age. Keeping engaged is good; it keeps you sharper. Have it involve something creative, since you could have engagement playing checkers, but I’m not sure if that will do it. What would you tell someone who says they just want to play golf when they retire? There are some people who play golf five times a week. I personally can’t do that. In reality, for most people it is just a time killer. It kills five hours a day. So people here try to find different things to keep them busy. Now do you start thinking about legacy? As I got back engaged in the industry, people really wanted to meet me. These guys had all looked up to me, and I never knew it. Every day I always went in to do what was best for the company, never thinking about legacy. I always cared about my customers and the employees and their families because I was responsible for four thousand of

them. That was more important to me. When I look back I can say that I built something that is pretty special, but I did not think about it at the time. Would any of your decisions postretirement have changed if your balance sheet looked different than it does today? If you had another $10 million to $15 million, would that change your life? No, I don’t think so. I felt I had enough money to live about the same lifestyle that I was living before; if I only had a million dollars I couldn’t have retired. If I had another $15 million, would I be spending any more? Probably not. I know a bunch of guys who spend a lot of time now looking at bonds or looking at stuff on their own. I can’t do that; I don’t want to do that. I don’t know if some people are enjoying it or if it just gives them something to do, but I have no desire and I never did. I know what I know, and I could become an expert in it, I guess, if I spent enough time at it, but it’s just not what I want to do— that’s your job. Thank you for your help with this article. I know our readers will appreciate your guidance.

Craig Pastolove is a Financial Advisor with the Wealth Management division of Morgan Stanley in New York, NY. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, member, SIPC: Morgan Stanley Financial Advisors engage Worth to feature this profile. Craig Pastolove may only transact business in states where he is registered or excluded or exempted from registration Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Craig Pastolove is not registered or excluded or exempt from registration. The case study presented is provided for illustrative purposes only. Past performance is no guarantee of future results. These strategies do not guarantee a profit or protect against loss and may not be suitable for all investors. Each customer’s specific situation, goals, and results, may differ. © 2013 Morgan Stanley Smith Barney LLC. Member, SIPC.

live grow

We look forward to hearing from you and can be reached at 212.296.1026.


“I know a bunch of guys who spend a lot of time now looking at bonds or looking at stuff on their own. I can’t do that; I don’t want to do that.”

How to reach Excelsior Wealth Management


Left to right: Jesse Friedman, Craig Pastolove and Scott Sklar

About Excelsior Wealth Management


In less than 15 years, Craig Pastolove, managing director in wealth management, has built a large, wellrespected wealth management team. Clients include celebrities, senior executives at publicly traded companies, entrepreneurs and hedge fund principals and traders. Scott Sklar, managing director, has been providing capital market insights to the hedge fund industry for 20 years. His reputation in providing timely and competent advice has garnered relationships with many of the leading managers in the asset class. Jesse Friedman, vice president–wealth management has worked with Mr. Pastolove since 2001 and manages the financial planning process from start to finish. He marshals the thought leaders at the firm for the team in order to brainstorm about clients before presenting them with a plan. He is also responsible for managing the other six members of the team, who include certified financial planners, a chartered financial analyst, consulting group analysts and group administrators.* Assets Under Management $625 million (as of 3/31/12)

Compensation Method Asset-based fees or commissions (customized structured products and syndicate)

Minimum Fee for Initial Meeting None required

Primary Custodian for Investor Assets Morgan Stanley Smith Barney LLC

Minimum Net Worth Requirement $3 million Largest Client Net Worth $200 million (as of 12/31/12) Financial Services Experience 50+ years (combined)

Professional Services Provided Financial planning, investment management, family office services and institutional consulting Association Memberships Investment Management Consultants Association Website Email

*Please reference the biography section of our FA website to identify all team member titles and designations.

Excelsior Wealth Management at Morgan Stanley

522 Fifth Avenue, 15th Floor, New York, NY 10036 WORTH.COM

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New York, NY

Leading Wealth Advisor

Further Lane Asset Management Marc Lowlicht, CFP®, MSFP, President–Wealth Management Division J. Michael Araiz, Chief Executive Officer

What issues should I consider when designing my bond strategy? By Rick Tadakoro, Portfolio Manager, Senior Vice President, Further Lane Asset Management When designing a bond strategy, begin with the goals for your portfolio, including income, legacy, philanthropy, etc., and then determine what percentage of bonds will help you achieve those goals. The next step, deciding what mix of bonds to purchase, includes determining where interest rates are headed, the true and accurate valuation of a bond and what combination makes sense for your portfolio of guaranteed Treasuries, municipals and secured asset-backed bonds, also called mortgage-backed securities (MBS). Where Rates Are Headed. The economy has been on a slow upward trajectory for 24 months, but the overnight interest rate, now at zero, has not been raised by the Federal Reserve since 2008. While the overnight rate is the only one the Fed controls directly, it affects overall rate behavior and lending policy. This in turn affects the “multiplier,” where a business borrows, expands and starts to hire more workers, adding more incomes, more production, more purchasing and more taxes for the government. This “multiplier” process has been basically nonexistent since 2007. Regardless of whether a change in the overnight rate will jumpstart the economy, before beginning to unwind the monetary stimulus, the Fed wants unemployment

to be no higher than 6.5 percent. So the overnight rate will probably be on hold for at least a couple of years, meaning short-term rates will most likely not change until late 2014 or early 2015. Accurate Valuation. It is necessary to evaluate all bonds well beyond a rudimentary overview or a simple assessment of where they traded last. Such an evaluation requires determining a bond’s true valuation and in turn its potential to meet its promises and not default. I receive literally hundreds of bond offers daily, and except for a handful I might consider recommending, find that most are overvalued. To determine accurately whether a bond is overvalued for its risk requires a sophisticated technology called Intex, capable of detailed analyses of a bond’s credit and its collateral characteristics. To protect the investor, I must know a bond’s actual worth before I discuss whether I will buy it. For example, I may reject a bond whose premium is too low for its risk profile, which will never pay, say, a 10-year yield of 30 percent. Smart bond strategy also employs a scenario analysis. That means looking quantitatively at a bond portfolio’s yield in a “best-case” scenario, a “worstcase” and an “optimistic” scenario. Basing decisions solely on how a bond or group of bonds performs today is not only myopic, it misses the opportunity

to make money, should the “worstcase” occur. Treasury vs. Mortgage-Backed Securities (MBS). Long-term treasury bonds, which are guaranteed by the government and are basically risk free, are the benchmark. Other kinds of bond assets, such as MBS, can do better than Treasuries but are not implicitly or explicitly guaranteed by the U.S. government. The overall interest environment, though, does affect both types of bonds. When the economy is pointed toward growth and rates rise, the value of Treasuries may fall, but MBS may not fall because their credit is less risky in an improving economy. Also, it is not uncommon for MBS to provide a minimum average 2 percent-yield premium to Treasuries every year for as long as the bond is outstanding. That said, to establish what percentage of your portfolio to expose to credit-sensitive, assetbacked bonds, determine your income requirement, maximum interest rate risk tolerance and pre-tax yield target. Since the interest environment seems unlikely to change soon, for the short term a smart bond strategy should include a deep and accurate valuation of bonds before adding them, a scenario analysis and the creation of an appropriate blend of Treasury, municipals and mortgage-backed securities.


How to reach J. Michael Araiz and Marc Lowlicht


“Smart bond strategy also employs a scenario analysis, looking quantitatively at a bond portfolio’s yield in a ‘best-case’ and ‘worst-case’ scenario.”

Please contact us at 212.808.4800 for an initial consultation.

—Rick Tadakoro make

My ho bbies ar e…

My f a v o r it e c au se/ch ari ty …

Furthe r Lane a sset ManageM ent

Michael: Collecting fine art, traveling and horticulture

Michael: Smile Train, ARF, St. Jude Children’s Research Hospital

Marc: Playing ice hockey, playing guitar, reading and anything that involves spending time with my daughters

Marc: The Ronald McDonald House (which I have personally seen at work) and the Stony Hill Stable Foundation, which gives scholarships to children to attend equestrian camp and compete in horse shows.

i ne v e r le a v e h o Me w it h o u t …

Michael: My dog, Max Marc: A picture of my two daughters

J. Michael Araiz

Marc Lowlicht

About J. Michael Araiz and Marc Lowlicht

J. Michael Araiz

Marc Lowlicht

illusTRaTion by kevin spRouls

J. Michael Araiz, chief executive officer, has more than 28 years of experience in the trading and valuation of fixed-income instruments, specializing in high-grade and high-yield securities. He is the managing member and CEO of Further Lane Asset Management, the chief executive officer of Further Lane Securities LP and the sole owner and CEO of Osprey Group Asset Management. Mr. Araiz was a founding partner of MJ Whitman LP and a founding shareholder of EQSF, the advisor to the Third Avenue Family of funds. Marc Lowlicht, president–wealth management division, holds his master of science degree in financial planning from the College for Financial Planning and specializes in implementing sophisticated wealth management strategies through risk management and in understanding client goals and objectives. From 2005 to 2009, he was named one of America’s best financial planners by the Consumers Research Council of America. Mr. Lowlicht has been quoted in numerous business publications, including Forbes and Worth. He is also a regular contributor to Forbes’ Intelligent Investor Panel. assets under Management Available upon request

Compensation Method Asset-based and hourly fees; commission (brokerage and insurance services)

Minimum Fee for initial Meeting None required

primary Custodian for investor assets Pershing, A BNY Mellon Company and Charles Schwab

Minimum net Worth Requirement $2.5 million

professional services provided Planning, investment advisory and money management services, insurance and corporate benefits

largest Client net Worth $100 million+ Financial services experience 50+ years (combined)

Further Lane Asset Management

Website email

555 Madison Avenue, 25th Floor, New York, NY 10022

212.808.4800 worth.coM

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New York, NY

Leading Wealth Advisor

Gerson, Guarino & Meisel Group at Morgan Stanley Shawn P. Landau, CFP®, First Vice President–Wealth Management, Family Wealth Advisor Jeffrey S. Gerson, Executive Director–Wealth Management, Family Wealth Advisor

Why is a buy-sell agreement important? By Shawn P. Landau and Jeffrey S. Gerson If you are a business owner who has not formulated—or even given much thought to—an exit strategy, you are not alone. Many people who run their own businesses wait until the last minute to settle on a plan of action. The delay can be costly. Planning for a change of ownership in advance accomplishes two important goals: business continuity and preservation of value. An owner who tackles this subject early on—before retirement or an unexpected offer for the company—is more likely to get the optimal benefits when the business finally changes hands. A strategic analysis of your business and its value, as well as an honest assessment of talent, provides an excellent starting point for discussions. Then you will need to consider whether you plan to transition your business to the next generation or sell it to an outside buyer. If you want to keep it in the family, you will want to think through how best to handle family members who are not involved in the business and probably will not be in the future. You will also need to consider the impact of the ownership transition on your most valuable employees and

what you can do to keep them in place. Many of these issues can be addressed in a “buy-sell agreement.” A buy-sell agreement is a legally binding contract in which the owners of a business set forth the terms and conditions of a future sale or buyback of a departing owner’s share of the business. It specifies when owners can sell their interests, who can buy an owner’s interest and at what price. Buy-sell agreements can accomplish many objectives, but are primarily used to ensure a smooth continuation of a business after a potentially disruptive event, such as an owner’s retirement, incapacity or death. Buy-sell agreements are valuable estate planning tools that can provide for the orderly succession of a family business and for the liquidity needed for payment of a deceased owner’s estate settlement costs and taxes. Further, under certain circumstances, a buy-sell agreement can establish the purchase price as the taxable value of an owner’s business interest, avoiding unexpected estate tax consequences at the owner’s death. If a decision is made to sell the business, we work with the business owner

as well as his or her attorneys, tax specialists, business valuation experts and business brokers. The team is responsible for gathering information about the business and coming up with an estimate of its value in the marketplace. They are also responsible for drafting a selling memorandum identifying prospective buyers and evaluating the type of transaction that will be most advantageous for you from the standpoint of your full wealth picture. Tax considerations can be particularly important. For many owners, their business is by far their largest asset. When it sells, there are significant personal tax consequences as well as investment challenges. These all need to be considered in light of goals you have for yourself and your family. Are you planning to start a new business? Do you have enough money saved for retirement? What investment strategy aligns with your risk preferences? Building a business is hard work, and owners are justifiably proud of their success. The GGM Group will help protect the value of what you have built so that it benefits you, your family and your employees.

Shawn P. Landau and Jeffrey S. Gerson are Financial Advisors with the Wealth Management division of Morgan Stanley in One Penn Plaza, New York, New York. The views expressed herein are those of the authors and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, member SIPC: http:// Morgan Stanley Financial Advisor(s) engage Worth to feature this profile. Shawn P. Landau and Jeffrey S. Gerson may only transact business in states where they are registered or excluded or exempted from registration: Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Shawn P. Landau and Jeffrey S. Gerson are not registered or excluded or exempt from registration.


How to reach the Gerson, Guarino & Meisel Group at Morgan Stanley

“Buy-sell agreements ensure a smooth continuation of a business after a potentially disruptive event, e.g., an owner’s retirement, incapacity or death.”


The Gerson, Guarino & Meisel Group has helped many business owners plan for a change in ownership. Please call us at 212.643.5757 to arrange a consultation.


Ge rso n, Guarino & Meisel Group at MorG an s tanley

—Shawn P. Landau and Jeffrey S. Gerson

Seated: Jeffrey S. Gerson, Financial Advisor; standing, left to right: Shawn P. Landau, Christopher Guarino, Gregory Meisel, Financial Advisors

About the Gerson, Guarino & Meisel Group

iLLuStration by kevin SProuLS

The Gerson, Guarino & Meisel Group (GGM Group) is a wealth management team at Morgan Stanley—one of the largest wealth advisory firms in the world. With decades of advisory and investment experience, the team partners—Jeffrey S. Gerson, executive director–wealth management and family wealth advisor (26 years of experience); Christopher Guarino, senior vice president–wealth management and senior portfolio management director (21 years); Gregory Meisel, senior vice president–wealth management (16 years); and Shawn P. Landau, first vice president–wealth management and family wealth advisor (12 years)— help their clients achieve their most meaningful financial goals. Through an uncompromising commitment to delivering intellectual strength, quality advice and personalized attention, the GGM Group provides an intensely personal experience to high net worth individuals, their families, corporations and charitable institutions. assets under Management $1.5 billion (as of 12/31/12)

Compensation Method Asset-based fees

Minimum Fee for initial Meeting None required

Primary Custodian for investor assets Morgan Stanley Smith Barney LLC

Minimum net Worth requirement $3 million Largest Client net Worth $400 million (as of 12/31/12) Financial Services experience 75+ years (combined)

Professional Services Provided Planning, portfolio management and money management services association Membership Portfolio Management Institute Website email

Gerson, Guarino & Meisel Group at Morgan Stanley

One Penn Plaza, New York, NY 10119



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Fairfield County, CT—New England

Leading Insurance Advisor

Gowrie Group S. Carter Gowrie, Chairman and CEO; Ed Gumbrecht, President and COO; John Fisher, President, Personal Insurance Division

How can boating incidents expose your personal assets? By Ed Gumbrecht Anyone who imagines that insurance is a sedate business knows little about what marine insurance claims look like. In fact, these claims range from the extreme to the sublime and to the tragic, as evidenced by these recent scenarios: • A couple out day-sailing encountered a 40-ton whale, which jumped and crash-landed onto their boat. • Some U.S. college students on spring break helped rescue a grounded 50-foot yacht, then claimed “salvage” rights when the captain took his crew ashore by life raft. • Last spring, three children died and 24 others were pulled from the water when a motorboat capsized while leaving a fireworks display off Long Island. Boating incidents can be much bigger than the vessels involved. Beyond the emotional and physical magnitude of these incidents, boat owners are at risk for enormous financial losses when claims arise from personal injuries on the water. Recent recreational boating industry statistics show how severe marine claims can be. In 2011, the U.S. Coast Guard responded to 4,588 accidents that involved 758 fatalities and 3,081 injuries. While the published figure for property damage in those incidents was $52 million, the unpublished value of the medical expenses and lawsuits from these accidents will dwarf the

property payout. The fatality rate in 2011 was 6.2 deaths per 100,000 registered recreational boats—an increase of 15 percent from 2010. Eight out of ten boaters who drowned were on open motorboats less than 21 feet long, and 20 percent of the accidents involved collisions with another recreational vessel, while alcohol use was the number one contributing factor in accidents that resulted in a death. Rising health-care and litigation costs, and the protracted process of valuing personal injuries and establishing liability will amplify the ultimate settlement costs involved in these boating fatalities. In a single 2010 accident on the Connecticut River, three fatalities and the permanent impairment of a young man set a new bar for the monetary and emotional damages sustained in a recreational boating accident. And while the Coast Guard reports operator inattention, inexperience, speed, improper lookout and alcohol as the top five contributing factors in accidents, often it is not the boat owner who is operating the vessel at the time of an accident. It is the boat owner, however, whose assets are exposed when a boating accident leads to severe bodily injury. Many boat owners are unaware that the liability insurance on home, auto and umbrella policies often does

not extend to boating activities. A simple call to a marine insurance specialist, however, can ensure that the right coverage is in place. Without liability protection that specifically addresses boating activities, all of the personal and financial assets of a boat owner are at risk. Three recommendaTions for BoaT owners

First, through attention to safety, severe injuries can be avoided altogether. In a recent survey, only 11 percent of deaths occurred on boats where the operator had received boating safety instruction. Conversely, 84 percent of drowning victims were reported not to be wearing a life jacket. Clearly, proactive attention to safety prevents severe injury on the water. Second, you as the boat owner are liable when your boat is used by another operator and there is an accident. The risks and exposures can be unimaginable, but are very real when you consider what is at stake if your small center console motorboat is operated by an impaired teenager or young adult. Third, and less obviously, boat owners must attend to the protection of personal financial assets through appropriate liability and umbrella insurance.

All data are from: “Recreational Boating Statistics,” May 2012, United States Coast Guard.


“Beyond the emotional and physical magnitude of these incidents, boat owners are at risk of enormous financial loss when claims arise from personal injuries on the water.”

How to reach Gowrie Group


We would be pleased to hear from you. You can reach any one of us at 800.262.8911.


—Ed Gumbrecht

Gow rie Gro up

Left to right: Ed Gumbrecht, S. Carter Gowrie, John Fisher

About Gowrie Group

IlluStrAtIon by kEvIn SproulS

From passion to leadership: In 1974 Gowrie began with a simple mission—insuring boats and protecting their owners. Over the years, as Gowrie’s clients’ needs matured, the firm’s expertise expanded and its business developed into one of the largest independently owned insurance specialists in the country. The Gowrie team is committed to providing expert advice, keeping communication simple and delivering the creative and customized solutions its clients need. Among the firm’s 125 dedicated professionals are championship yachtsmen and yachtswomen award-winning equestrian riders, athletes, collectors and leaders of nonprofit boards and community organizations. Gowrie operates from its primary offices in Darien, Conn.; Westbrook, Conn.; Newport, RI and North Kingstown, RI. Insurance Services Experience Gowrie: 39 years Gumbrecht: 26 years Fisher: 30 years Website

Gowrie Group

Association Memberships Independent Insurance Agents Association (IIAA) Professional Insurance Agents (PIA) Email

70 Essex Road, Westbrook, CT 06498 455 Boston Post Road, Darien, CT 06820 449 Thames Street, Newport, RI 02840 1130 Ten Rod Road, North Kingstown, RI 02852

860.399.5945 203.656.3644 401.848.0200 401.885.7000

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Delaware Valley

Leading Wealth Advisor

The Haverford Trust Company Joseph J. McLaughlin, Jr., Chairman and Chief Executive Officer; Binney H.C. Wietlisbach, President; Henry Smith, Chief Investment Officer; John Donaldson, CFA®, Vice President and Director of Fixed Income; Timothy Hoyle, CFA®, Vice President, Research; Jeffrey Bagley, CFA®, Vice President, Portfolio Manager and Senior Research Analyst

How important is Fed policy for equities? By The Haverford Trust Company After five somewhat tortuous years, the Dow Jones Industrial Average broke through to a new all-time high in early March, eclipsing its previous peak of 14,164, reached in October of 2007. Adjusted for inflation, however, the Dow would need to exceed 16,000 to surpass its previous inflationadjusted record set in January of 2000. The Dow’s new high occurred almost four years to the day of its March 2009 low of 6,547. In the aftermath of the 2008–2009 bear market, few prognosticators forecast anything close to the remarkable returns achieved since then. Instead, many were calling for a second “lost decade,” equivalent to Japan’s experience after the Nikkei average peaked in late 1989. The market’s new highs have not been accompanied by exuberance, but instead by skepticism. Many attribute the market’s good performance to the Federal Reserve’s unprecedented monetary stimulus, and citing slow economic growth and the country’s longer-term fiscal problems, they feel that the move higher is artificial in nature and the market is due for a fall. Although we believe that the Fed has helped tremendously in jumpstarting the economy and the capital markets—thus avoiding a Japanesetype stagnation—the real driving force behind this bull market has been a stronger economy and increases in

the stoCk market rise has CoinCided With imProving eConomiC and CorPorate Fundamentals Jobless Claims & the s&P 500 300


–– Initial Unemployment Claims (left, inverted) –– S&P 500 (right)

350 400

1,600 1,400

450 500






650 700







earnings & the s&P 500 110


–– S&P Earnings (left) –– S&P 500 (right)

100 90










40 30







Source: Factset. S&P 500 Earnings represent last twelve months. Initial unemployment claims represent rolling four-week average. Data as of March 31, 2013. The opinions expressed in this article are those of Haverford. This article is for informational purposes only and should not be construed as investment advice or recommendations with respect to the information presented. No forecasts are guaranteed and past performance is no guarantee of future results. Index returns are provided for illustrative purposes only. Indices are unmanaged, do not incur fees or expenses and cannot be invested in directly. Information is derived from sources believed to be reliable; however, we cannot guarantee its accuracy.

corporate profits and dividends. As depicted in the chart above, earnings growth has outpaced market returns off of the 2009 bottom. As a result, valuations are below where they were at the previous market peak in the fall of 2007. Furthermore, the market’s P/E ratio remains below its historical average of 16.5X earnings. S&P 500 dividend

payments (ex financials) are at record highs, confirming the earnings growth. Rather than focus on Fed policy or politics, equity investors should concentrate on what is most important: fundamentals. The important drivers for long-term equity returns are earnings, dividends, balance sheets and valuations.


How to reach The Haverford Trust Company We can be reached at 610.995.8700.

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“Rather than focus on Fed policy or politics, equity investors should concentrate on what is most important: fundamentals.”

The h av e rfo rd T rusT Company

—The Haverford Trust Company

Seated: Binney H.C. Wietlisbach, Henry Smith, Joseph J. McLaughlin. Standing, left to right: John Donaldson, Timothy Hoyle and Jeffrey Bagley

About The Haverford Trust Company The Haverford Trust Company provides highly personalized investment management services based on our Quality InvestingTM approach. Refined over three decades, Haverford’s Quality Investing strategy is committed to maximizing returns while minimizing risk throughout the entire market cycle. Adhering to this consistent, successful investment philosophy since our inception in 1979 has enabled Haverford’s client base and assets under management to continually grow. Today, assets under management or consultation exceed $6.5 billion. We take pride in the fact that we are privately owned and believe that independence gives us the flexibility to better serve our many clients, whether individual or institutional. Assets Under Management $6.5 billion*


Minimum Fee for Initial Meeting None required Minimum Investable Assets $1 million Largest Client Net Worth $250 million (firm) Number of Team Members 71

Compensation Method Asset-based fees Primary Custodian for Investor Assets The Haverford Trust Company Professional Services Provided Money management and investment advisory services, including: strategy development, written investment policy, asset allocation, asset management, performance reporting and tax-efficient strategies Email Website

*Assets under management or consultation as of December 31, 2012

The Haverford Trust Company

Three Radnor Corporate Center, Suite 450, Radnor, PA 19087



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New York, NY

Leading Insurance Advisor

Lane McVicker LLC Amy Ciasulli, Senior Vice President; Gilbert Lai, Senior Vice President; Paul Gallagher, Vice President; Salvatore Lundy, Vice President; Heather Gladwell, Assistant Vice President; Patricia O’Brien, CPCU, ARM, Assistant Vice President

Why do I need supplemental travel insurance? By Lane McVicker LLC Travel mishaps such as delayed flights and lost luggage may not qualify as your worst nightmare, but having a serious health issue while visiting an emerging nation might. You may have the need and desire to travel frequently, and that frequency ups the odds of experiencing some unpleasantness while traveling. You may also like to visit, or need to go to, less developed countries where the likelihood of something going wrong is greater. The purpose here is to enlighten, not to frighten, but all insurance assumes that at some point something can go wrong, and intelligent individuals prepare for that possibility. You may already receive travel insurance through your credit card or your business, but we suggest you check the level and depth of coverage to make certain it is sufficient. For example, if you, a member of your family or a caretaker sustains an injury—a broken ankle, say—or requires a time-sensitive surgery such as an appendectomy, you may need emergency evacuation and transportation to a more populous area or even to another country. To get a sense of what that might cost, one insurance carrier with which

we work offers coverage of up to $250,000 just for emergency medical transportation. But supplemental travel insurance is not only about preparing for nightmare scenarios. It also eases and covers what we might call the “bad dreams” of travel. Imagine you are in a major European city, ready to return home after an arduous round of meetings. You get to the airport, check your baggage, go through security and find out a half hour later that because of a snowstorm in New York, your flight has been canceled. Now what? You cannot get your luggage back because it has already passed through security. You have your smart phone, your laptop and the clothes on your back, and that is it. Now begins a round of calls: to the hotel you just checked out of, to the limo service to take you back into town, to a clothing store for a change of clothes, etc. Who covers all this added expense? You may be nodding your head as you read this. If you are, we suggest you read the sidebar to get a sense of how supplemental travel insurance can at least lower your stress level.

What Does supplemental travel Insurance cover?

Policies vary, of course, but generally they offer the convenience of paying a single annual premium instead of filling out paperwork trip by trip. Many also offer a 24/7/365 concierge feature that provides a range of services. While the representatives answering the phone may not actually call clothing stores or hotels for you, they often provide assistance with travel options, replacement ticket purchases and airport transportation. They may also help replace lost travel documents, passports, prescriptions, etc. Some may even recommend a restaurant for that unexpected dinner in Paris. In terms of coverage, most policies reimburse you not only for lost luggage, but for supplemental items such as clothing and incidentals that you must purchase should your luggage take off without you. Your coverage should include compensation for nonrefundable ticket purchases. Also, it should provide a sufficient daily allowance for food and temporary lodging should your delay stretch beyond 24 hours.

We would be pleased to hear from you. To reach Amy Ciasulli, Salvatore Lundy or Heather Gladwell in our New York office, please call 212.888.9800. For Gilbert Lai, Paul Gallagher or Patricia O’Brien, please call our New Jersey office at 973.539.8500.

grow make

—Lane McVicker LLC

How to reach the Lane McVicker team


“Supplemental travel insurance is not just about preparing for nightmare scenarios. It also eases and covers what we might call the ‘bad dreams’ of travel.”

Lane M cV icke r LLc

Standing, left to right: Patricia O’Brien, Salvatore Lundy, Gilbert Lai, Paul Gallagher; seated, left to right: Heather Gladwell, Amy Ciasulli

illustration by kevin sprouls

About Lane McVicker LLC Lane McVicker LLC is a personal lines insurance agency headquartered in New York City, with offices across the country. The agency specializes in personal insurance, ranging from homeowners and automobile insurance to specialty lines, such as coverage for yachts, aircraft, fine art and antique cars. Lane McVicker has agency appointments with a number of leading insurance markets, including ACE, AIG, Chubb, Fireman’s Fund and PURE. On October 1, 2012, National Financial Partners Corporation (NYSE: NFP) acquired Lane McVicker, making it a wholly owned subsidiary of NFP Property & Casualty Services Inc. NFP is a leading provider of benefits, insurance and wealth management services. Amy Ciasulli, senior vice president, began her career in 1989 at Continental Insurance Company and then worked at AIG’s Private Client Group. Gilbert Lai, senior vice president, began his career in 1990. Prior to joining Lane McVicker, he was a vice president and northeast regional director at Aon Private Risk Management. Paul Gallagher, vice president, began his career in 1989 as an underwriter in Chubb’s Personal Lines Division. With an underwriter’s understanding of insurance policy contracts, he brings a valuable perspective in counseling high net worth clients. Salvatore Lundy, vice president, began his career in 1991 with Sentry Insurance and holds the certified insurance service representative designation. Heather Gladwell, assistant vice president, began her career in 1998 and worked for Marsh & McLennan’s Private Client Services in New York. Patricia O’Brien, assistant vice president, previously worked at Marsh Private Client Service and Rockefeller Risk Advisors. Largest Client Net Worth $500 million


Insurance Services Experience 132 years (combined)


Lane McVicker LLC

40 Wall Street, 30th Floor, New York, NY 10005 360 Mt. Kemble Avenue, Morristown, NJ 07960

212.888.9800 973.539.8500 worth.coM

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Fairfield County, CT

Leading Wealth Advisor

LLBH Private Wealth Management LLC Kevin Burns, Partner; Bill Loftus, Partner; Bill Lomas, CFP®, CIMA®, CRPC®, Partner; Jim Pratt-Heaney, CIMA®, Partner; Michael Kazakewich, CFP®, CRPC®, Associate Partner

How can you and your family prepare for the future? By Michael Kazakewich Conversations around end-of-life decisions and care are not easy for any family. Often, the subject is so uncomfor table that it is avoided altogether. However, these conversations are necessary, and if thoughtfully framed, can provide peace of mind to all members of the family, and reassurance that the last wishes of their parents and grandparents will be observed. To make these conversations meaningful, all members of the family should feel comfortable discussing the future. Having such an open, comfortable dialogue is central to any productive family meeting. To help frame such an event, we have created a checklist of items to discuss. While not exhaustive, this outline gives a great starting for these conversations: Trust and Estate • Do you have a plan, and where is it? • Has it been reviewed/updated recently to reflect what you would want to happen today? • Does it include a living will, healthcare proxy and durable power of attorney document? Personal Financial Statement (PFS) Do you have one, and does it include: • Numbers of all accounts and their locations? • Valuations as of a specific date?

• Real estate property locations and their value? • Up-to-date IRA beneficiary specifications? Life Insurance Policy • What kind/amount is it? Term/fixed? • Where are these policies held? • Are you still paying premiums or are they fully paid? • Who are your beneficiaries, and does this list still reflect your choice? Assets • What are your personal assets in terms of jewelry, antiques, collections, etc? • Are they inventoried? • Have you thought about their disposition; are those choices documented? • Do you plan on equalizing the monetary assets among your family? • Do you want to have a signed document so everyone is on the same page? Long-Term Care Insurance • Do you have long-term care insurance (activities of daily living/ADLs)? • What are the benefits? • What is the daily limit/lifetime maximum? Have you specified a home care or long-term care (LTC) facility? • If you do not have an LTC, will the responsibilities for the care you receive be distributed evenly among family members? • How will home care be paid for?

• In the event a parent becomes incapacitated, as defined by a doctor, who has power of attorney? Funeral Arrangements (Elder’s Preferences) • Have you discusse d your wants and needs? • Do you want a cremation or burial? Funeral Arrangements (Family’s Preferences) • What will calling hours be? • Do you want a big dinner? • Who will pay for the arrangements? • Will payment come out of the estate? • Which family members will be assigned which responsibilities? • Who will coordinate and execute the back-end estate issues? Although these topics are not the most enjoyable, discussing them as a family and making sure everyone is on the same page will help to make sure the wishes of your loved ones are carried out. Additionally, there is likely to be less friction among surviving family members if a plan is put into place. Regardless of your individual role in the family, having a strong financial advisor to help you begin these conversations is crucial. With open communication and planning, your family will be prepared for the future.

Past performance is no guarantee of future results. There is no guarantee the views and opinions expressed in this article will come to pass. LLBH Private Wealth Management, LLC (LLBH) is an SEC registered investment advisor located in Westport, Conn. For additional information about LLBH, send for our disclosure brochure using the contact information herein.


How to reach Michael Kazakewich

“Conversations around endof-life decisions and care are not easy for any family.”


I look forward to discussing how I can help you reach your financial goals. I can be reached directly at 203.683.1529.


—Michael Kazakewich

LLBH Private W e a LtH ManageM ent LLC

Left to right: Jim Pratt-Heaney, Bill Lomas, Kevin Burns, Bill Loftus

Who Are Our Clients?

illustration by nancy Januzzi

LLBH Private Wealth Management is a Registered Investment Advisory (RIA) firm, created to work with entrepreneurs and senior executives who became wealthy because they made great decisions. Our disciplined process ensures that we see the complete picture of your financial situation so that we can make informed and suitable recommendations to help you accomplish your goals and objectives. Our process also works for those who have been thrust into decision-making roles due to life-changing events such as retirement, the sale of a business, a divorce or a death in the family. Just as they do in their professional lives, our clients want a thorough and candid process in order to make smart decisions about their financial lives. Simply put, LLBH clients respect our ability to get things done. assets under Management $1.1 billion

compensation Method Asset-based

Minimum Fee for initial Meeting None required

Primary custodian for investor assets Pershing, A BNY Mellon Company

Minimum net Worth requirement $10 million (investment services)

Professional services Provided Planning, investment advisory, money management, advanced wealth transfer planning and corporate services

largest client net Worth $500 million

association Membership Investment Management Consultants Association

Financial services Experience 120 years (combined)


LLBH Private Wealth Management LLC

33 Riverside Avenue, 5th Floor, Westport, CT 06880




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New York, NY

Leading Wealth Advisor

Massey, Quick & Co., LLC Stewart Massey, Founding Partner Leslie Quick, Founding Partner Joseph Belfatto, Partner Mark DeLotto, Partner Christopher Moore, Partner

How do I manage a liquidity event? By Massey Quick When members of the Smith family sold the successful manufacturing company they had spent three generations building, they expected to encounter a number of financial planning challenges. Given Massey Quick’s experience working with families who have faced liquidity events, we were recommended to help the Smith family. Once they told us their concerns, we knew it was critical to review their estate plan, replace the income stream that previously had come from dividends and put their money to work. Our first suggestion was that the family members place proceeds of their company’s sale into short-term Treasury bills to give them time to plan properly. Our certified financial planners and tax counsel then worked with their attorneys and accountants to implement the right structures for their assets. Wills were reviewed and revised; a series of trusts, including GRATs, were created to transfer wealth down to future generations. And some of the solutions we agreed on were quite simple (e.g., paying for education and medical costs, annual gifting, etc.), while others were more complex and

required sophisticated analysis and execution. We brought in outside experts on insurance to evaluate the family’s current policies and assess its future needs. Concurrent with the structural analysis was an education process about investing that we initiated. We met periodically with the principals to discuss different asset classes, risk tolerance, income needs and time horizons. We also structured a cashflow analysis using base-case, bestcase and worst-case assumptions. As a result, our clients’ goals and expectations came into focus. We drafted an investment policy statement for the family members, to govern the management of their liquid assets. This included asset allocation guidelines, risk parameters, rebalancing requirements, performance reporting and portfolio accounting needs. In the process we hedged the family’s large single stock position, created tax efficiency and suggested a spending policy. Once the structural changes and investment policy statement were finalized, we constructed customized multi-manager portfolios for each entity, designed to meet the stated

goals. We initiated a partial hedge on the single stock position, immunizing the risk of a large, concentrated exposure. We provided the family with monthly performance reporting, using a blended benchmark based on the asset allocation policy. We also took responsibility for portfolio accounting, tracking interest, dividends, cash movements and realized and unrealized capital gains and losses. During the first six months of our relationship, we met with the principals monthly, reviewing investment performance and continuing our educational process about each manager and the role he or she would play in the portfolio. We still have brief monthly conference calls and quarterly meetings in person. By managing the transition process, we were able to ensure that a proper trust- and estate-planning exercise took place. Our steps provided us time to educate key family members about their investment options and to institute a thoughtful policy statement governing the management of their assets. Most important, our process brought our clients peace of mind.

Important disclosure: The above hypothetical case study is offered to illustrate the benefits that Massey Quick’s customized approach can provide. Please note that actual client experience can vary, and there can be no assurance that Massey Quick will be able to deliver the same type of results referenced in the case study.

How to reach Massey Quick


The partners of our firm have faced financial challenges similar to those of our clients in managing their assets. We believe we provide our clients with a unique, peer-to-peer perspective, and would welcome the opportunity to speak with you. Please call Joe Belfatto at 973.525.1000.

grow make

“Our clients’ goals and expectations came into focus. We drafted an investment policy statement for the family members, to govern the management of their liquid assets.” —Massey Quick

M asse y, Q uick & c o., LLc

Seated, left to right: Mark DeLotto, Christopher Moore; standing, left to right: Leslie Quick, Joseph Belfatto and Stewart Massey

About Massey Quick


Massey Quick is an independent wealth management and investment consulting firm, founded by financial professionals who truly understand the challenges that wealth creates. In many cases, Massey Quick’s partners invest their capital side by side with their clients’. Working closely with clients to provide thoughtful, personalized planning and investment advice on a peer-to-peer basis, the firm’s partners construct customized multi-manager, multi-asset class portfolios focused on capital preservation and risk management with a goal of delivering absolute investment performance. Massey Quick employs a proprietary open architecture manager selection process that features rigorous due diligence by a team of experienced professionals. The client team (partner, relationship manager and analyst) offers a high level of service, where solutions are customized to reflect the unique circumstances of each individual, family or institution. Clients are provided with financial planning, investment policy statements and investment consulting. For institutional clients, assistance is offered to both the office of finance and investment committees, with full support on investment policy statements, audits and governance. Massey Quick considers its reputation a precious asset—as a trusted advisor, the firm conducts all dealings with the utmost confidentiality and integrity. The firm’s objective recommendations reflect the trust implicit in a successful long-term relationship. Assets Under Management $2.3 billion

Compensation Method Fixed and asset-based fees

Minimum Net Worth Requirement $5 million+

Professional Services Provided Wealth management and investment consulting

Minimum Fee for Initial Meeting None required

Primary Custodian for Investor Assets Pershing, A BNY Mellon Company; Fidelity and Charles Schwab

Largest Client Net Worth $250 million+


Financial Services Experience 103 years+ (combined)

Massey, Quick & Co., LLC


360 Mount Kemble Avenue, Morristown, NJ 07960

973.525.1000 worth.coM

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New York, NY

Leading Wealth Advisor

Prestige Wealth Management Group Roy Williams, ChFC®, CLU®, Chief Executive Officer

What are the toughest challenges parents face in transferring wealth to children? By Roy Williams While transferring wealth to children does present financial challenges, and opportunities also, perhaps the toughest challenges are emotional. The most common and very human inclination is to lavish on children all that money can buy, from cars to houses to quarter-million dollar educations. But as experience shows, unrestrained giving does not enable children to succeed; it usually disables them from doing so. Consider the success rate of family businesses passing from generation to generation. Most studies put the second-generation success rate of family businesses at about 30 percent and, for the third generation, at about 12 percent (Family Business Institute). Of course, businesses succeed and fail for many reasons, but a central difference between children who want to take over a business and are qualified to grow it and those who “cash out” is their lifetime relationship with work and money. Most parents would agree that cultivating that relationship rests squarely with them, and that giving children too much too early will demotivate the younger generation. So the question is: How do wealthy parents teach children the lessons of hard work, collabo-

ration, charity and the importance of working through life’s challenges? Below are some strategies to consider. ConstruCtive enabling: getting to a “Qualified” Yes While many parents of means find it easier to say “yes” than “no” to their children’s requests, there is a point between the two which we call “constructive enabling.” That is, giving a “qualified” yes when a high school age child asks for, let us say, a new car. A wealthy mom or dad might say, “Okay, but you will make half of the monthly payments.” For children accustomed to getting most of what they want without qualification, parents may need to provide assistance. If the children have never worked, constructive enabling would mean guiding them through the process of finding openings, making contact, etc., but the child would actually get the job. And once employed, and paying half of that car payment, those children will make the connection between their work and ownership and understand that they will no longer have one without the other. starting them at the bottom (Well, not at the top anYWaY) If saying “yes” all the time is a habit

parents want to (and need to) break, so is starting their kids at the top of the family business, or if they operate in the corporate world, convincing a business associate to give their kid “a break.” Bringing children into a business as, say, a VP with a $200,000 salary rarely benefits the business or the children. Better to start your children where all college grads in your company start. Or, insist that they work outside your firm to an agreedupon age. Whether you are a corporate executive or a family CEO, you certainly can provide contacts to help your children’s careers, but just as with that part-time job, as a constructive enabler you let them secure a position for one reason: They deserve it. In the end, this path will make them more valuable to your business or any business. Someone once said that the job of a parent is to deliver to the world self-subsistent human beings with a good heart. Children of wealthy parents who earn their own way and learn the lessons of work and a just life will be self-subsistent. And if the parents by example teach the lesson of charity, the good heart will follow.


“Our primary aim is to make a positive and impactful difference in our clients’ lives.”

How to reach Roy Williams


To learn more about Prestige Wealth Management, please contact me at 908.782.0001.

—roy Williams


M y h ob b i es are …

Pre stige W e alth ManageM ent grouP

Fine wine, gourmet cooking, horses, boating, fishing and international travel

a c har ity i feel passio n ate abo ut…

I’m on the board of SAFE in Hunterdon, which serves victims of domestic violence and sexual abuse. W h a t i ’ M l ooki ng f o r Wa r d t o th i s y e ar…

I’ve recently written a book on retirement, which will be available this fall.

About Prestige Wealth Management Group

illustration by kevin sprouls

Founded in 1994, Prestige Wealth Management Group’s wealth advisors have more than 100 years of combined financial services experience. The firm’s dedicated staff consists of experienced professionals, including CFP®s, ChFC®s, CRPCs, CFAs and CPAs, who take a “hands on” approach to financial guidance and provide wealth management advice to more than 400 families, cumulatively. Not only are Prestige Wealth Management Group’s team members knowledgeable, but they truly care about making their clients’ dreams a reality. The firm’s wealth advisors do everything in their power to keep clients focused on where they want to go, advise them on how to get there and continually remind them of the importance of maintaining a disciplined approach to realizing their dreams. Prestige Wealth Management’s personalized CFO services deliver strategic wealth management solutions using a consultative team-based approach to executives, business owners and high net worth individuals. In addition to its wealth management services, the firm provides timely and relevant communication on the economy, financial markets, tax laws and other important issues affecting its clients. Assets Under Management $430 million (approximate)

Compensation Method Asset-based fees

Minimum Fee for Initial Meeting None required

Primary Custodian for Investor Assets TD Ameritrade Institutional and Charles Schwab

Minimum Net Worth Requirement $500,000 (firm)

Professional Services Provided Our personalized CFO services include financial planning, investment management, tax planning, retirement planning, risk management and family wealth planning

Largest Client Net Worth Confidential Financial Services Experience 30+ years

Prestige Wealth Management Group



31 State Route 12, Flemington, NJ 08822 Schoolhouse Plaza, 374 Millburn Avenue, Millburn, NJ 07041 Worth.coM

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New York, NY

Leading Wealth Advisor

Traust Sollus Wealth Management Al Zdenek, CPA/PFS, President and CEO

With my many investments, how do I tell if my resulting portfolio is right for me? By Al Zdenek You are not alone. We see this quite often. Origins I can guess how your current situation came about: slowly, over time. When you first started investing you may have had one bank account and one investment account. Then came the retirement plan account at your job and a personal IRA. Over the years you met a stockbroker or two and opened accounts with their firms, investing on their recommendations. At this point you have been investing for decades and the bank and brokerage firm accounts have multiplied. Now you find yourself with a blizzard of statements to shovel through and analyze each month, trying to track and make sense of the sum of the parts. Over time your portfolio has begun resembling a house of mirrors, because you have accumulated shares of one particular stock or another in more than one account. In this case, you probably are not sure how much money you actually have invested in these holdings, what their price appreciation or loss is to date and what percentage of your total portfolio these stocks represent.

In addition to individual securities you also probably have funds in your portfolio managed separately by different managers whose independent actions may have replicated some of your earlier holdings When you have a lot of investments in different places it is difficult to get your arms around the characteristics of your total basket of holdings. Does your total portfolio reflect the risk return profile appropriate for your personal financial situation? Where is your diversification right and where is it off? Where do you have duplication through similar holdings that, rather than diversifying you unintentionally end up increasing the risk in your portfolio? It is difficult to see the forest for the trees with holdings scattered among multiple accounts at multiple institutions delivering multiple statements for you to compile and analyze. Then there are the tax consequences. Is the right type of investment in the most appropriate account format? When a security is to be sold, have you first determined what is the most tax-efficient way to do so?

Three WaYs TO Make POrTfOliO invesTing easier—and One Big sTick To determine what your portfolio actually looks like, and if it is working for you, there are four objectives you must continually achieve:


Understand what you actually hold. With disparate accounts even fastidious people forget some of their holdings, or have multiple positions in a single security scattered among a handful of different accounts.


Identify the impact each holding (return and risk) has on your total portfolio allocation.


Simplify monitoring your holdings so you can better determine when you need to rebalance or when you need to sell.


Stick it to the tax man by learning how to make taxsmart decisions when buying new investment allocations or selling portfolio holdings. While protecting more of your wealth from the greedy hand of government is very satisfying, doing this yourself means keeping alert to the latest tax regulations issued by the government.


How to reach the Traust Sollus team Please give us a call at 212.661.8682 for a preliminary consultation.

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“It is difficult to see the forest for the trees with holdings scattered among multiple accounts at multiple institutions.” —Al Zdenek


My h o b b ie s a re …

Al: Traveling internationally, wine, cooking and collecting art. I also spend time supporting the Global Partnership for Afghanistan and the Inter-City Scholarship Fund of New York City, and teaching—especially underprivileged children.

Al Zdenek

Brian Picariello

About Al Zdenek


Al Zdenek, president and CEO of Traust Sollus Wealth Management, has more than 30 years of experience in providing personal financial planning, cash-flow planning, estate planning, business management, tax planning and investment management advice to affluent individuals, senior executives, physicians and business owners. He has appeared in lists of the nation’s top financial advisors and is often quoted in the media about wealth building and wealth management. He also has lectured on financial planning and investment management across the country. Mr. Zdenek founded Traust Sollus in December 1982. He holds an undergraduate degree from Rutgers University and an MBA degree from Rutgers Business School.

Assets Under Management Confidential

Compensation Method Flat fee arranged with agreement of the client based on plan complexity

Minimum Fee for Initial Meeting None required

Primary Custodian for Investor Assets TD Ameritrade

Minimum Net Worth Requirement $5 million Largest Client Net Worth Confidential Financial Services Experience 30+ years

Traust Sollus Wealth Management

Professional Services Provided Comprehensive personal financial planning, investment advisory, tax planning and filing; cash-flow planning, estate planning, risk management; business consulting for small and family-owned businesses Association Memberships AICPA, NAPFA, NYSSA Website Email

70 East 55th Street, 12th Floor, New York, NY 10022

212.661.8682 WORTH.cOM

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Worth LWA June/July 13 NY Metro