A Holistic Approach to Your Wealth
THE VALUE OF A COMPREHENSIVE WEALTH ASSESSMENT
All aspects of a wealth plan should be viewed and assessed holistically as part of a comprehensive analysis that covers each component of your financial well-being.
Successful individuals and families tend to have an assortment of advisors and professionals addressing various components of their wealth. You likely have an accountant to help with income taxes and insurance professionals to assist with life, property, liability, and other insurance needs. You may also have an attorney to handle your estate, business, and legal concerns and various financial services professionals to assist with your cash and investment accounts. With so many advisors and professionals handling different areas of expertise, it can be difficult to employ a holistic perspective on your wealth.
As wealth grows, needs become more diverse, complex, and interrelated. This can often lead to gaps you may not be aware of in your wealth plan. Whether you are planning for a future wealth transfer, inheritance, or other financial event, CNR and your financial advisor are here to help you effectively navigate the complexities of wealth planning.
City National Rochdale’s Comprehensive Wealth Assessment is a complimentary, holistic service that focuses on identifying gaps and solutions. This in turn empowers you to make informed decisions that will serve to optimize your wealth throughout your lifetime.
REAL LIFE EXAMPLES: HOW YOUR FINANCIAL ADVISOR AND CNR’S COMPREHENSIVE WEALTH ASSESSMENT SERVICE CAN HELP ADDRESS GAPS IN PLANNING
STRATEGIC PILLARS OF WEALTH
CNR’s holistic approach to assessing your wealth encompasses what we refer to as the Strategic Pillars of Wealth. These pillars enable CNR and financial advisors to expand wealth analysis and recommendations into areas that are often ignored or forgotten. We review all facets of your wealth by gathering important information, asking key questions to better understand and clarify your individual goals and objectives, identifying issues in what you are trying to accomplish, and presenting a customized wealth assessment to help you meet your needs.
A client’s current portfolio has concentrated positions in transportation securities.
A strategic allocation framework personalized to the client’s goals and risk tolerance was leveraged to actively manage the portfolio and strategically rebalance assets and adjust allocations.
ASSET PROTECTION & RISK MANAGEMENT:
A client’s living trust called for mandatory distributions to heirs when they reach the ages of 25, 30, and 35.
A Comprehensive Wealth Assessment included recommendations to remove the mandatory distributions because they exposed the wealth to future divorcing spouses and/or judgment creditors. A client’s attorney amended the trust to eliminate the mandatory distributions, significantly enhancing protection from potential creditors.
INCOME TAX CONSIDERATIONS:
A business owner contemplating the sale of their business is looking for strategies to mitigate the capital gains tax.
The Comprehensive Wealth Assessment educated the client on three strategies that could potentially reduce or delay the tax burden: Charitable Remainder Trust (CRT), Installment Sale, or Opportunity Zone, putting the client in a position to make a more fully informed decision.
A wealthy real estate owner with no cash flow concerns wanted to maximize the amount of wealth transferred to his identified heirs in order to leave a specific amount to his favorite charities.
The Comprehensive Wealth Assessment compared and layered multiple strategies to facilitate the client’s decision making process.
ESTATE & LEGACY PLANNING:
client is interested in taking estate tax mitigation steps but is concerned about the impact that a large gift might have on cash flow.
The Comprehensive Wealth Assessment included a cash flow analysis indicating that the client should dial back the gift to a slightly lower amount.
HOW TO GET STARTED
Your financial advisor and City National Rochdale (CNR) can help you define, meet, and optimize your wealth goals and objectives. Even well-defined wealth plans need to be refreshed periodically as life events occur and the regulatory environment changes. If you are interested in learning more about our Comprehensive Wealth Assessment service, reach out to your financial advisor.
QUESTIONS TO CONSIDER:
- Do you have a financial plan or estate plan?
- When was the last time y ou re-assessed your financial goals or updated y our estate plan?
- Have you undergone any recent life changes (e.g., marriage, birth of a child, death of a loved one, sold a business, etc.)?
- How do your existing documents distribute your assets upon your passing?
- How well prepared are you to deal with changes to the estate planning landscape from a legal and tax perspective?