Wealth Management

LPL Financial’s wrap account platform; called a Strategic Wealth Management (SWM) account, is their flag ship program. Our team implements and manages an investor’s portfolio for a small percentage fee based on the value of the account (assets under management). This fee covers all commissions and management expenses and simplifies costs for the client.

We choose from the entire universe of investment products including No-Load Funds, Load waived Funds, Institutional Class Funds, as well as Exchange Traded Funds (ETFs), Closed End Funds and Real Estate Investment Trusts (REITs). From these different classes of investments we construct a portfolio to match our client’s goals and risk tolerance.

The advantage of a wrap account is that it protects clients from overtrading; this is when a broker trades excessively in a client’s account to make more commission. Because our firm earns more as the account value rises, we share a mutual interest with the client to maintain a healthy level of growth in the account. 

When you purchase shares of a mutual fund, your dollars are invested in a large number of companies all at once, and your investment risk is spread out over many stocks and companies, not just one. Mutual funds pool money from a range of small investors, to invest in the market.

When you invest in a mutual fund, not only do you get diversification*, but also you benefit from the expertise of professional money managers. Each fund has one or more managers who are trained in money management and review the fund’s performance and make up on an ongoing basis. Mutual funds appeal to many investors because of their liquidity: they are readily available and easy to sell. With mutual funds you can cash in your shares, in all or in part, at any time for the current market value. In this way, you always know that you can get access to your funds, should it become necessary **. Mutual funds offer the opportunity for growth, but also involve certain risks. Mutual funds are suitable for investing for future needs, like retirement.

* While diversification is an important risk management tool, it cannot guarantee protection against losses.

** Returns and principal value may fluctuate, resulting in a gain or loss on sale. Proceeds on sales may be less than your original cost. Sales charges may apply.

Investing in Mutual Funds involves risk including possible loss of principal.

When you buy stock in a company, you are buying partial ownership of that company. You can earn a return on your investment both through dividends (a portion of the company’s profits) and through in increase in the price of the shares you own.

When you buy bonds what you are really doing is lending money at a certain rate of interest. You may be lending to a business or a government entity.

Our philosophy is to use REITs (Real Estate Investment Trusts) as a vehicle to include Real Estate in our portfolio allocations so as to broadly diversify client’s asset holdings.

A Real Estate Investment Trust or REIT is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable, into the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks. Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms.

Investing in REITs involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investment objectives of the program will be attained.

As the nation’s leading independent broker/dealer*, LPL Financial serves the independent financial advisor with the highest quality support services available. Through The Private Trust Company, N.A., a wholly owned subsidiary of LPL Holdings, LPL Financial has the ability to deliver fully integrated administrative trust services to you in a seamless manner, while maintaining your relationship with your trusted financial advisor.

* Based on total revenues, as reported in Financial Planning magazine, June 1996-2022

What is a Trust?

A trust is simply your instructions for the management of all or part of your property. An attorney who represents you and has expertise in the area of estate planning should create your trust. The trust document describes:

• How you want your assets managed, and eventually distributed
• Who you want to benefit from your assets now and in the future
• Who you want to be responsible for carrying out these instructions

What Can a Trust Do for You?

A trust can provide a measure of comfort knowing that you have a plan in place to help provide for the safe and accountable management of family assets and to direct their use in accordance with your wishes, goals and objectives. A trust is used to help ensure the proper management of your assets throughout the different stages of your life:

1. During your active lifetime, placing assets in a trust allows you freedom to continue managing your assets or to devote time to other priorities. A trust created and funded during your life is generally called a “living” or “revocable” trust.
2. In the event you are incapacitated, a trust can help ensure that your needs are met and that your finances are kept in good order for your benefit.
3. Upon your death, a trust becomes “irrevocable”, and your assets are managed and distributed by your trustee, in accordance with your instructions throughout the trust’s existence.
4. An estate planning attorney may recommend creating an irrevocable trust during your lifetime, in addition to a revocable trust. This may provide creditor protection, controlled giving to family members or estate tax minimization.