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The Financial Services division of Springberg McAndrew focuses on four core areas. By matching our client’s needs with appropriate concepts and products in each of these areas, we implement and monitor plans best suited for working toward their goals. The four areas are:
To learn more about our approach to each of these, please click on them now.
PHILOSOPHY: To provide our clients national expertise and local service in our communications. “When our clients go to bed at night, we want them to feel confident that if anything goes wrong economically, we’ve got their bases covered and if everything goes as hoped, we have put a plan in place that will work to accomplish their goals”.
PROCESS: There is a vast array of investment products and concepts available to people. After a consultation to identify our client’s financial status and goals, we research which are best suited for them. They are then presented with a full explanation of our recommendations including how a product works, risks, expected returns, tax consequences, liquidity and fees.
Once a strategy is implemented, we monitor our client’s progress and set up regular reviews as personal and economic circumstances may have changed. Communication is vital for a plan’s success.
PRODUCTS: As independent advisors, we are not beholden to any proprietary products and have access to a vast array of companies. These products include:
Stocks, Bonds, Mutual Funds, CDs, Money Markets, Cash Value Life Insurance, Real Estate Investment Trusts (REITS), Oil and Gas Limited Partnerships, Exchange Traded Funds, and Fixed, Indexed or Variable Annuities.
SERVICES: Money Management is typically focused on some combination of three goals; wealth preservation, growth or income. In addition to using the above products to accomplish these goals, certain vehicles such as IRAs, Roth IRAs, and Rollovers may be utilized.
PHILOSOPHY: To offer employers the vehicle that provides themselves, their company and their employees the plan that best combines tax savings, ease of administration, lower costs and quality investment options.
PROCESS: Just like in individual planning, it is essential that a consultation takes place before deciding on what type of plan to implement. Once the plan is decided on, an employee presentation is given followed by one on one interviews to help determine the appropriate portfolio for each employee. In addition to telephone, Internet and appointment access, semi-annual employee meetings are standard.
PRODUCTS: Nearly all retirement plans are considered; 401(k)s, Profit Sharing, Simple IRAs, 403(b)s, Defined Benefit, SEPs, and IRAs. We work with the employer to evaluate the investment options that will be offered inside of the plan.
A list of existing retirement plan references can be provided.
Springberg McAndrew Financial Services offers financial and insurance advice for businesses in a number of areas. Our goal is to help business owners identify opportunities and risks associated with being an owner and then implement strategies to address these. Some examples of programs are listed below:
KEY MAN PLANS: Many businesses have employees (sometimes even the owner!) that are essential to its success. It is often in the business’s interest to offer an extra incentive to that “Key” employee, yet because of discrimination laws they are unable to do so with a retirement plan. This is where a Key Man plan comes into play.
They can be designed to offer a benefit if an employee works for a certain number of years or to pay a life insurance claim to the employer and/or the employee’s family if they should pass away. This offers the employee the incentive to work for the employer for reasons beyond just salary and gives the employer stability in their business. In addition, if death proceeds are payable to the employer, the monies can be used to stabilize the company while a replacement is sought. Typically legal advice from an attorney is prudent.
BUY/SELL AGREEMENTS: When there is a partnership or more than one owner of a closely held business, there is the concern of what would happen if one of them should pass away. How would the surviving partner(s) come up with the money to buy out the deceased partners spouse or other heir?
A buy/sell agreement tries to cover all bases if a partnership or corporation should break up. We focus on early death or disability issues by implementing life and disability insurance solutions. Ownership or partners take out policies on each other so that there is an immediate cash infusion to solve this problem.
EXAMPLE: Two partners own a business worth 1 million dollars. They each take out a life insurance policy on the other for $500,000. If one should pass away, the $500,000 death benefit is utilized to pay off the deceased partner’s spouse and the surviving partner now owns 100% of the company.
Again, typically legal advice is sought to draw up the agreement.
PHILOSOPHY: We believe that thoughtful consideration should be given to our clients’ assets to facilitate their transfer whether to their spouse, children, other family members or charity of choice. This transfer should be done in a manner that reduces the tax liability as much as possible.
PROCESS: After determining a client’s net assets, they are reviewed to determine what methods would most benefit their eventual ease of transfer and sensitivity to tax liability. If the estate is in excess of certain limits, estate taxes may be owed. Often an attorney is brought into the process to determine if a trust(s) would be beneficial.
POSSIBLE SOLUTIONS: Every client is unique and the solutions we propose correspond to this. Typically, the methods outlined below are considered, although there are more sophisticated concepts available when required.
TRUST(S)- These can be revocable, irrevocable, charitable or other variations.
GIFTING- Estates can be reduced by completed gifts being made during one’s lifetime. These are currently limited to $13,000 per person per year to avoid any tax consequences. Gifts to certain charities are unlimited.
Example: A husband and wife could give their child a total of $26,000.
LIFE INSURANCE: Life insurance creates an immediate pool of cash for survivors and is typically free from income tax. Further, if put inside of an irrevocable trust, in can be estate tax free.
*Currently the estate tax is set to go to zero in 2010 regardless of an estate’s size. In 2011, estates in excess of $1,000,000 will become subject to tax. Congress has been trying to come up with a long term solution for many years and an outcome is still uncertain.
430 El Camino Way
Lake Havasu City, AZ 86403
Tel: 928-855-9421
Fax: 928-855-9423
Email:info@springbergmcandrew.com |
