Weatherly Asset Management, L.P. was included in the 2019 Inc. 5000 list of fastest-growing private companies in America. This list is the publication’s 13th annual ranking of independent advisory firms, and was published in the July 2019 issue. To view the article and list, click here https://www.inc.com/inc5000/2019/top-private-companies-2019-inc5000.html
Companies on the 2019 Inc. 5000 list are ranked according to percentage revenue growth from 2015-2018. To be eligible, the company must 1) be privately-owned, based in the United States, and independent (not a subsidiary or division of another company); 2) have generated revenue by March 31st, 2015; 3) have generated at least $100,000 in revenue in 2015; 4) have generated at least $2 million in revenue in 2018; and 5) have had revenue in 2018 that exceeded revenue in 2015. Inc. defines revenue as gross revenue, less returns and allowances, before any cost of goods sold. Inc. requires eligible companies to complete one of three revenue verification process options. Weatherly completed Inc.’s Revenue Verification Form, and had the Firm’s 3rd party certified public accountant sign the form attesting to the complete accuracy of the information. The CPA is a licensed professional with credentials that are current and in good standing, per requirements of Inc.’s verification process.
Growth rates used to determine company rankings were calculated to three decimal places. Over 5000 companies applied to be considered for the list. There were no ties on this year’s Inc. 5000. Weatherly was ranked 4662.
Weatherly received an email invitation to participate in Inc. 5000’s ranking list from Weatherly’s Vistage Group Chair, Charles Furman, and a 20% discount to apply. Vistage is a partner of Inc.
Weatherly paid for digital and hard copy reprints of the list. Weatherly was not required to advertise in, or subscribe to, Inc. magazine.
No organizational memberships were required of the Firm or individuals. Inclusion in the ranking is not representative of any one client’s experience and is not indicative of Weatherly’s future performance. Weatherly is not aware of any facts that would call into question the validity of the list or the appropriateness of advertising the ranking in the list.
About Weatherly Asset Management, L.P.
Weatherly Asset Management, L.P. is a Registered Investment Advisor, located in Del Mar, California, dedicated to providing high quality, holistic and innovative wealth management services to high net worth individuals, small businesses and institutional clients since inception of the Firm in 1994.
Our comprehensive approach to all aspects of a client’s financial life, the extensive experience of our principals, and the accessibility of experts, set us apart from other firms.
Our primary business focus is money management, with each account individually managed to maximize wealth preservation and growth over time. We also provide advice related to retirement planning, tax planning, philanthropic planning, financial planning and college planning, as well as estate planning and wealth transfer guidance. Our goal is to provide clients with as much information as necessary to effectively manage portfolios and help achieve their financial goals.
Weatherly Asset Management, L.P. is the investment advisory division of Weatherly Asset Management, Inc. As an independent partnership, the Firm is wholly owned and operated by the partnership.
For information on our wealth management team, and for a full list of services we provide, please visit: http://www.weatherlyassetmgt.com/team/
For information on our ADV filings and Compliance, please visit:
http://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=106935
http://www.weatherlyassetmgt.com/adv/
If you would like to learn more, please contact:
Carolyn P. Taylor
858-259-4507 Carolyn@weatherlyassetmgt.com
According to a 2018 study conducted by Personal Capital, the top two stressors in relationships were: 1) Money at 54% and 2) Communication at 26%. Money was at the top of the list across Millennial, Gen Xers, and the Boomer generations. With these stats, we have created a “How to Navigate Finances as Yours, Mine, and Ours” guide when broaching the topic of finances in a relationship.
Monthly Nut
Our Monthly Nut Chart serves as a great conversation starter on the taboo topic of money for couples navigating joint finances for the first time. We suggest each partner complete their separate Monthly Nut to grasp where each other financially stands before tackling your joint financial picture. The “Yours and Mine Monthly Nut Charts” helps shed light on spending or savings habits, debt to asset ratios, and earnings potential of each party. You may find that one individual has more debt than the other. This scenario is not uncommon and may make combining finances even more challenging or in some cases, less appealing. We encourage couples to come up with a plan to pay down that debt by considering: Who is responsible for paying down the debt- the individual, jointly, a combination of both? The charts can also assist couples explore their tax filing options. Married couples may find their state taxes may be lowered by filing separately even if they file jointly at the Federal level. Weatherly is here to help navigate this conversation with your CPA as appropriate.
Once you have a better understanding of each other’s financial situation, you can better focus on building out your financial plan as a couple.
Prioritize for Progress
Create a list of items, big or small, you would like to accomplish with your finances in the short-term, mid-term, and long-term. Your list might include: pay the rent, travel once a year, pay off an auto loan or student debt, buy a home, save for a child’s college or your retirement, have $1mm to pass to the next generation. Once you have your list, sit with your partner and prioritize for progress. If you and your significant other do not see eye to eye on a specific goal or it is specific to you personally- come to an agreement that works for both parties. Maybe you have your own separate debit card/credit card, bank account or investment account to utilize for your specific goal and joint accounts to accomplish your goals as a couple. Please reference this Wall Street Journal article that addresses these topics in further detail.
Retirement Planning
Saving for retirement poses several challenges as some individuals tend to view this bucket of money as yours or mine strictly because of who earned it. To better accomplish your retirement goals as a couple, it is important to:1) understand each other’s views on retirement and 2) recognize that earnings potential may fluctuate as life changes. As highlighted in the “Yours and Mine Monthly Nut Charts”, one partner may be inclined to maximize retirement while the other prefers to spend. Alternatively, one individual’s earnings potential may change because they stay home with the kids, which decreases their ability to save for their own retirement. Viewing retirement savings as “Ours” versus “Yours” or “Mine”, couples typically avoid unnecessary conflict and can focus on saving for Their retirement.
Investments
It may take time to establish an investment philosophy as a couple and that is okay. The key is to build and evolve it into what works for you together. Some items to consider in formulating your investment approach:
- Different Risk Tolerances: Consider separate accounts with each other named as the beneficiary for differences in risk tolerance.
- Who will manage investments and bill pay: Designating one partner as the sole investment manager, can feel like a loss of control for the other. Consider separate individual accounts “Fun” accounts to accommodate.
Estate Planning and Community Property
You know the old joke for married couples – “what’s mine is mine and what’s yours is mine?” While the intent is for this to be humorous, it can be true for assets and debt accumulated during marriage in states that adopt community property laws, like California. It’s important to consider assets that each individual acquired prior to marriage, earnings and income potential and future inheritance; and if individual assets should be designated as Separate Property. This is seen commonly with inherited assets, when a parent designates their individual child (not the couple) as a beneficiary.
There are complex situations that should be addressed prior to marriage – for example, if one spouse owns and runs a business and the other stays home to run the household. While the contribution to the family is similar, the earnings potential varies greatly.
With an increased focus on the value of intangible assets – like intellectual property – new business ideas and student debt among the Millennial Generation, attorneys are seeing more young couples request a pre-nuptial agreement. While it’s a tough discussion to have, the conversation prior to marriage could alleviate stress and attorney fees down the line if divorce occurs. Recall in Community Property states, debt accumulated during marriage can be a 50/50 responsibility even if divorce occurs.
Beneficiary Updates and Wills/POAs
There are 3 basic estate documents that every adult, regardless of marital status, needs:
- Will – designates who will get your assets upon your passing
- Financial Power of Attorney – designates who can access your financial records and bill pay
- Healthcare Power of Attorney and HIPAA Waiver – designates who can speak with your doctors and access your healthcare records
Newly married couples should review these documents – or work with an attorney if they haven’t already created them – to determine who should be named.
Beneficiary reviews are also important – you may have a sibling, family member or friend listed as the beneficiary of old workplace 401ks, current retirement plans or IRAs. Any pension plans should also be reviewed; most offer survivorship benefits to spouses.
As your assets and estate grow, you may consider creating a Family Trust for Community Property assets and/or a Separate Property Trust for individual assets.
Families with young children should also have the discussion of who would take care of your children or act as custodian of your assets if something happens to you. We touched on other considerations for young families in a previous blog post.
How Weatherly Can Help
Marriage is exciting and these areas of discussion shouldn’t feel daunting. Talking through tax, estate and financial discussions and recommendations with your advisor can alleviate concern and “what if” scenarios so you and your spouse can focus on building your lives together. We welcome a dialog on how we can provide guidance on a successful financial future for your family.
** The information provided should not be interpreted as a recommendation, no aspects of your individual financial situation were considered. Always consult a financial professional before implementing any strategies derived from the information above.
On the 18th anniversary of the September 11th attacks, Weatherly remembers the lives of those we lost on that tragic day in American history, as well as their families and those still suffering with illness due to exposure to toxins during rescue efforts. This past weekend, a few members of the Weatherly crew honored those lost by volunteering at the 9/11 San Diego Stair Climb, a living memorial to the lives of the fallen Emergency Responders that jumped into action on that September morning. Proceeds from the Stair Climb go FirefighterAid, a San Diego based organization that provides charitable assistance to Firefighters and their families in crisis. Learn more about the 9/11 San Diego Stair Climb here: http://www.sandiegostairclimb.com/
There’s a common thought in investing – put your money to work in companies that produce the products you use or in management that you believe in. Well, why not align your investments with your principles? Recently, we’ve seen massive inflows to a theme known as Socially Responsible Investing (SRI). There are two ways to utilize SRI principles – either by screening for or avoiding certain industries (ex: tobacco, firearms, oil, chemicals) or by selecting companies through specific criteria known as “ESG” factors, which broken down are:
Environmental Effect – How does a company impact the environment through direct or indirect externalities and how will the company fare as the effects of climate change take hold? Often clean-energy industries get an A grade in this factor, while polluting sectors often score poorly.
Social Stances – How does the organization treat the impact of its operations on all stakeholders? This includes gender equality, benefits to workers, and charitable activity in the community. We’ve seen numerous companies like Target, Wal-Mart, and Amazon raise wages for workers above the federal or state minimums.
Good Governance – How does the company operate through its board and management decisions? Independent directors and auditors that monitor managers are key to the longevity of the organization, just ask shareholders in Enron and Lehman Brothers.
Demand for funds that satisfy ESG metrics is rising, mostly in part to a growing millennial investor base, many of whom demand social responsibility when making investments. The chart below from MorningStar highlights the estimated $8.9b in net inflows into sustainable funds held in the United States in the first six months of 2019.
Socially responsible investing in International markets is not far behind as sovereign wealth funds must look to make “financial flows consistent” with lower-carbon emissions and sustainability in accordance with the 2015 Paris Climate Agreement. Expectations for more growth in the ESG space can be attributed to new offerings for this option in employer-sponsored 401k plans, as only 5% of 401(k)s offered a dedicated ESG fund for employees in 2018.
Although performance considerations may have kept some investors from utilizing socially responsible investing funds in the past, they’ve outperformed their non-SRI peers over a few different timelines as shown in the chart below.
When looking at the broader market, Vanguard’s Social Index has returned 4.3% vs. the S&P 500 return of 5.5% since the social index’s inception in 2000.
SRI funds may also have expense ratios (fees) that are higher than their counterparts given the specific criteria that a fund manager must follow. Interestingly, 53% of the available mutual funds that Morningstar highlights as socially responsible had lower expense ratios than the non-SRI funds in the same category.
Weatherly works closely with clients to attain their investing goals through the screening of unwanted holdings and creation of customized portfolios. Our team has restricted industries or companies at the requests of clients through our portfolio management system to notify our investment team of any specific sectors to avoid for each client or account. Alternatively, advisors will note when a client wishes to only invest in companies that promote ESG traits and ethics. When investments are made, a detailed background review is completed for each equity or fixed income position to ensure that the investment is made within SRI guidelines and principles as outlined per client.
We’d suggest speaking to an advisor to see if utilizing ESG metrics in your investments is appropriate. Additionally, Fidelity and Schwab both offer exchange-traded fund screeners to narrow the scope of available funds to fit ESG characteristics.
In addition to socially responsible investing, Weatherly prides itself on implementing sustainable practices throughout all areas of our business. Whether it be hosting a local beach clean-up , providing re-usable cutlery and dishes for employee lunches, or implementing electronic signature software to cut down on paper, Weatherly is passionate and dedicated towards doing what we can to create a leaner, greener future – and we want to help you do the same!
When exploring options of moving towards a sustainable lifestyle, it can sometimes be overwhelming. With so many options in just about every aspect of life, it is often hard to know where to begin. Below are some small and easy changes that can have big impact on reducing our environmental footprint.
On the go:
– Eliminate plastic bottles – Carry a re-fillable water bottle for any hydration needs. We proudly welcome all new clients with a reusable Weatherly water bottle. Please don’t hesitate to contact us if you would like one, as we would be happy to send!
– Avoid plastic bags – Keep cloth/canvas tote bags in the trunk of your car so you never forget them when going to the store to buy groceries or other goods.
– Consolidate errands – Plan/map out errand runs to save money on gas and reduce carbon emissions. Or even better, walk, bike, and/or carpool if possible.
At home:
– Know the rules of recycling in your area – Check out “What Goes Where” for San Diego county residents.
– Stop junk mail – Unsubscribe from those pesky marketers and save paper while doing it. View the New York Times article with helpful tips here.
– Compost – It is estimated that food scraps and yard waste together currently make up to 30% of what we throw away and should be composted instead. DIY compost bins can be made for as little as $10, and many communities host free workshops to help get you started.
At work:
– Eliminate take out containers – Bring your lunch from home in a re-usable lunch box. Even better, bring your own re-usable cutlery and napkin too!
– Reduce paper – Make conscious choices around the office to use less paper. Re-purpose no longer needed one-sided sheets into scratch paper before recycling or shredding.
– Unplug Electronics – Even while turned off, electronics still use energy as long as they are plugged in. Save energy by unplugging applicable electronics before leaving the office for the evening.
It is important to remember patience when transitioning towards greater sustainability. Even the smallest changes, whether in an investment portfolio or in a daily routine, can go a long way to make our world a better place.
We continue to educate ourselves on how to better our community and plan for a future in a world limited by finite resources and talent. Our team persistently researches and uncovers new trends to capture cultural and social movements in thematic investments for clients. Please free to reach out to Weatherly with any questions or suggestions to assist with your journey towards a sustainable future, we are all in this together.
** The information provided should not be interpreted as a recommendation, no aspects of your individual financial situation were considered. Always consult a financial professional before implementing any strategies derived from the information above.
San Diego Business Journal included Weatherly Asset Management in the 2019 listing of Wealth Management Firms, published on July 8, 2019. Placed among the best in San Diego County, WAM lands the 16th spot of 30 firms in total.
Eligibility requirements to participate included being a registered investment adviser with either the Securities Exchange Commission or the California Department of Corporations. The criteria by which Firms were ranked was based on assets managed in San Diego County for fiscal year 2018.
After receiving an email invitation from the Journal to participate in the list, Weatherly completed a brief online survey. Weatherly’s CPA was required to complete an attestation for total assets managed in 2018.
It is not the intent of the list to endorse the participants nor to imply a firm’s size or numerical rank indicates its quality. There was no fee to participate in the list ranking, and Weatherly was not required to advertise in, or subscribe to, the San Diego Business Journal. After being included in the list, Weatherly paid the San Diego Business Journal $250 to be highlighted on the list.
No organizational memberships were required of the Firm or individuals. Inclusion in the ranking is not representative of any one client’s experience and is not indicative of Weatherly’s future performance. Past performance is not necessarily indicative of future results. Weatherly is not aware of any facts that would call into question the validity of the ranking or the appropriateness of advertising inclusion in this list.
About Weatherly Asset Management, L.P.
Weatherly Asset Management, L.P. is a Registered Investment Advisor, located in Del Mar, California, dedicated to providing high quality, holistic and innovative wealth management services to high net worth individuals, small businesses and institutional clients since inception of the Firm in 1994.
Our comprehensive approach to all aspects of a client’s financial life, the extensive experience of our principals, and the accessibility of experts, set us apart from other firms.
Our primary business focus is money management, with each account individually managed to maximize wealth preservation and growth over time. We also provide advice related to retirement planning, tax planning, philanthropic planning, financial planning and college planning, as well as estate planning and wealth transfer guidance. Our goal is to provide clients with as much information as necessary to effectively manage portfolios and help achieve their financial goals.
Weatherly Asset Management, L.P. is the investment advisory division of Weatherly Asset Management, Inc. As an independent partnership, the Firm is wholly owned and operated by the partnership.
For information on our wealth management team, and for a full list of services we provide, please visit: http://www.weatherlyassetmgt.com/team/
For information on our ADV filings and Compliance, please visit: http://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=106935
http://www.weatherlyassetmgt.com/adv/
If you would like to learn more, please contact:
Carolyn P. Taylor
858-259-4507
This holiday season, Weatherly celebrated by hosting our first ever Community Food Drive! Weatherly partnered with Jacobs & Cushman San Diego Food Bankt o organize this community service activity. This food bank works to provide food and resources to the 1 in 8 San Diegans who face hunger and food insecurity every day. Over the span of a month at the end of 2018, the Weatherly team collected over 100 pounds of food and helped Jacobs & Cushman San Diego Food Bank provide 87 meals to community members in need. To learn more about this cause and how you can get involved, please visit: https://sandiegofoodbank.org/
Weatherly had the pleasure of once again cheering on the Susan G. Komen 3-Day Walkers as they started their 60-mile journey to raise money and awareness for the fight against breast cancer. We showed our support by donning Susan G. Komen pink and handing out snacks, water and messages of encouragement on Camino del Mar as the walkers passed the Weatherly office. To learn more about the Susan G. Komen organization, and it’s San Diego affiliate, Komen San Diego, please visit: www.komensandiego.org/
In the world of Wealth Managers, Stock Brokers, Robo-Advisors and Financial Planners, investors are often left wondering which one is right for them, and why? Each individual, family or business’ situation is different and the goals unique. So where does Weatherly fit in? Weatherly would fall into the category of ‘Wealth Manager’ and our goal is to positively influence your financial life through dialog and collaboration. The more we learn about you, the more we adapt and customize our advice for impact.
The two main pillars of our mutual success are Financial Planning and Investment Management. Financial Planning is the foundation of our relationship where we learn what makes you tick both personally and professionally. Those fascinations and desires shape your goals and how you would like your money to work for you. Armed with this information we can strategize prudent asset allocation, timing of retirement, make estate planning decisions, provide for beneficiaries or charities to name a few.
Click here for more information on our services
Investment Management is the implementation of what we learn through the Financial Planning process. There is no point trying to fit a square peg through a circular hole, or utilize a ‘cookie cutter’ approach. We want to make sure your portfolio aligns with your long-term plan with tax and fee efficiency. This is the stuff that we wake up in the morning for.
In this blog, we explore the diverse personalities and expertise on our team, and how we most enjoy working with clients. While everyone has their core day to day functions in how they help the team, and ultimately you, we will also shed some light on how they contribute in a more non-conventional fashion as well. Feel free to click on any team member’s name to check out their biography. Welcome to behind the scenes at Weatherly!
The first smiling face you see when walking into the office or joyful voice that greets you over the phone is none other than Yoshi Brownlee. Yoshi plays an integral role at the firm facilitating organizational efficiencies and administrative support for both clients and advisors. She also helps the firm with its philanthropic initiatives by identifying where a need in the community is and organizing the logistics to get the team together to help out. This can be seen on our Culture and Community page of the website that she helps maintain for us. One item you can’t quantify is her positive attitude and overall demeanor that keeps the office morale high, even during tax season…
Chrissy is a little more behind the scenes, but her work is definitely felt throughout the entire ecosystem. Her primary roles include working on client onboarding systems, internal reporting, and automation of workflow. As you know, we are always trying to make sure we have your most recent tax documents and Chrissy is the one who makes sure that they accurately stored and that we capture any important data such as loss carryforwards so they are utilized for tax efficient investing. She makes sure to be a team player and will actively look to anticipate needs not just for the office as a whole but her fellow team members.
Sally has been instrumental in leading the push toward creating a more efficient workflow process including the firm-wide adoption of DocuSign and draws upon her educational background to help teach the team and clients new efficiencies in the technology we utilize. DocuSign has greatly increased execution time on client accounts, led to a more secure form of communication, and is more easily tracked. She was probably more excited with the amount of paper that we are savings rather than the efficiency created. Sally is very passionate about sustainability and never misses an opportunity to remind us about the silverware in the cupboard or compliment us when using it.
Ryan’s time and experience here with the firm has allowed him to gain exposure to just about all aspects of the business. He has fulfilled many roles within the company over the years and is very flexible in his capabilities. You may have had the pleasure of speaking with him if you were moving some accounts over as he has taken on the Transfer of Assets process. He obtained his CFP® designation last year so make sure to congratulate him on this amazing accomplishment as he sacrificed many weekends to achieve this.
One of Brooke’s many duties is helping clients accomplish their charitable goals, which includes analyzing and helping clients understand which account and position is best suited for gifting along with the taxable implications coming from such gifts. As some of you may have had the privilege to work with Brooke you will notice she is an incredible teacher and has a way of breaking down material into simplified pieces that are easy to understand. Her charitable work is a perfect role for her as she also assists with the firm’s initiative to be more involved in the community though philanthropic events such as beach cleanups, Feeding San Diego, and the Susan G. Komen breast cancer walk, which she has personally participated in. Another congratulations is due for Brooke as she too recently obtained her CFP® designation.
You may know or think of Cole as the money man and is often times the one you speak to when you request some cash as he handles a majority of the firms cashiering requests. He also ensures that you get your money even when you don’t ask for it by running Required Minimum Distributions or Qualified Charitable Distributions analysis so that you can maximize tax efficiency. As for professional milestones, he recently passed Level III of the CFA Program in 2018B03. Outside of work he has been steadily training for the Orange County Marathon that he completed last week. This was a huge personal accomplishment for him and now he sets his sights on competing in a triathlon.
Chase is the newbie to the Weatherly team and comes from a nationwide financial planning software company. He was there for about 5 years and primary dealt with helping advisors model out their strategies and plans for their clients. He will draw largely on this background as he helps with building and presenting the financial plans here at the firm. This will be an exciting new perspective to work first hand with both the advisors and clients alike. He looks forward to officially introducing himself to you all and working side by side in the coming future.
The team here would certainly not be able to run as smoothly as it does if it wasn’t for the resourcefulness of Lindsey. She wears many hats here including HR, IT, and security, to name a few, all while having a very calm and laid-back attitude, which is hard to fathom with all those responsibilities. On top of all of these items here in the office she is also a mother of two young beautiful children. We are certainly thankful for all her efforts here and being able to wear so many different hats. Her capabilities allow us each to focus on our unique expertise with clients and keep client data safe.
Kelli recently passed an amazing milestone and is the newest partner here at the firm. Outside of meeting with clients, she also helps assist in the marketing effort of the firm. This consists of helping create our own story here at Weatherly along with listening to you, the client, for new ideas as to what type of educational blog posts we should explore. She also assists with the firm in staying compliant by updating any related documents or disclosures we have and working with the other partners to develop company strategy.
Brent’s role as partner includes oversight of investment implementation and he prides himself on being able to simplify and synthesize complicated matters into digestible pieces for clients and fellow team members to understand. He plays an integral role on the investment committee and handles a majority of the firms trading and analysis. His laid back attitude and sense of humor makes him a joy to work with and somehow he maintains this even when taking care of the newest addition to his family throughout the night.
Candise has been with Weatherly for over 19 years and we’re sure you either know her well or have spoken with her in the past. She continues to bring a tremendous amount of value through her past experience in the industry and particularly in cases involving estate matters and guiding clients through what can be a difficult process. Through open dialogue, it sets the stage for all parties involved to feel included and heard regardless off the outcome. As partner, she is an amazing educator and when answering questions she certainly makes sure you get all the information you were looking for… and even some you didn’t even know you needed!
Where do we begin. All of the different responsibilities that you have read prior to this are somehow touched and filtered through Carolyn. Her genuine and empathetic personality allows for her to connect to whoever she is speaking to and regardless of the situation. She spends most of her time meeting with clients and building relationships but coincides that with developing firm direction and strategy. It’s remarkable how much she can remember and is always able to ask specific details about how the family is doing or any exciting developments that have occurred. She continues to lead by example and make sure all clients and team members are looked after and treated with care.
We hope this sheds some light on our team and provides context on what goes on behind the walls at Weatherly.
** The information provided should not be interpreted as a recommendation, no aspects of your individual financial situation were considered. Always consult a financial professional before implementing any strategies derived from the information above.
In August of 2018, Carolyn Taylor and Candise Holmlund were nominated for Shook Research’s 2019 Best-in-State Wealth Advisors list. Both were invited to complete an online survey detailing information about their careers as well as Weatherly as a firm. Carolyn was named 4th out of the 55 named from Southern California. In total, the list showcased over 3,000 wealth managers. View our inclusion in the list here.
The 2019 Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. The ranking algorithm is designed to fairly compare the business practices of a large group of advisors based on quantitative and qualitative elements. Data are weighted to ensure priorities are given to dynamics such as preferred “best practices”, business models, recent business activity, etc. Each variable is graded and represents a certain value for each measured component. These data are fed into an algorithm that measures thousands of advisors against each other. The algorithm weighted factors including revenue trends, assets under management, compliance records, industry experience and those advisors that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Neither Forbes or SHOOK receive a fee in exchange for rankings.
Basic Requirements to be considered for the “Forbes Best-in-State Wealth Advisors” included:1) 7 years as an advisor; 2) minimum 1 year at current firm 3) advisor must be recommended, and nominated, by Firm, 4) completion of online survey; 5) over 50% of revenue/production must be with individuals; and 6) an acceptable compliance record. In addition to the above basic requirements, advisors were also judged on the following quantitative figures: 1) revenue/production; weightings assigned for each; 2)assets under management—and quality of those assets—both custodied and a scrutinized look at assets held away. (Although individual numbers are used for ranking purposes, the ranking publishes the entire team’s assets); 3)client-related data (ie retention.) NOTE: Portfolio performance was not considered – audited returns among advisors are rare, and differing client objectives provide varying returns. Qualitative considerations examined included but were not limited to: 1) telephone and in-person meetings with advisors; 2) advisors exhibiting “best practices” within their practices and approach to working with clients and 3)advisors that provide a full client experience (factors examined include service model, investing processes, fee structure (higher % of fee-based assets earns more points,) and breadth of services, including extensive use of Firm’s platform and resources; 4)credentials (years of service can serve as proxy); 5) use of team & team dynamics; 6) community involvement; 7)discussions with management, peers, competing peers, and 8)telephone and in-person meetings. Compliance records and U4s were also reviewed in detail as part of the selection process including: 1) infractions denied or closed with no action; 2) complaints that arose from a product, service or advice initiated by a previous advisor or another member or former member of team; 3) length of time since complaint; 4)complaints related to product failure not related to investment advice; 5) complaints that have been settled to appease a client who remained with the advisor for at least one year following settlement date; 6)complaints that were proven to be meritless; and 6) actions taken as a result of administrative error or failure by firm.
Weatherly Asset Management did not pay any fees to SHOOK to be nominated or included in the “Forbes Best-In- State Wealth Advisors” list and Weatherly was not required to advertise in, or subscribe to, Forbes. As of the time of this disclosure, Weatherly did not elect to pay for reprints of the list. In total, 29,334 nominations were received and 5,961 advisors were invited to complete the online survey. Throughout the research process, over 9,230 telephone interviews and 1,757 in-person interviews were conducted. The ranking listed 3000 advisors, 55 of which were located in Southern California.
Inclusion in this ranking is not representative of any one client’s experience and is not indicative of Weatherly’s future performance. Weatherly is not aware of any facts that would call into question the validity of the ranking or the appropriateness of advertising the award.
SHOOK Disclosures
SHOOK is completely independent and objective and does not receive compensation from the advisors, Firms, the media, or any other source in exchange for placement on a ranking. SHOOK is funded through conferences, publications and research partners. Since every investor has unique needs, investors must carefully choose the right Advisor for their own situation and perform their own due diligence. SHOOK’s research and rankings provide opinions for how to choose the right Financial Advisor.
About Weatherly Asset Management, L.P.
Weatherly Asset Management, L.P. is a Registered Investment Advisor, located in Del Mar, California, dedicated to providing high quality, holistic and innovative wealth management services to high net worth individuals, small businesses and institutional clients since inception of the Firm in 1994.
Our comprehensive approach to all aspects of a client’s financial life, the extensive experience of our principals, and the accessibility of experts, set us apart from other firms.
Our primary business focus is money management, with each account individually managed to maximize wealth preservation and growth over time. We also provide advice related to retirement planning, tax planning, philanthropic planning, financial planning and college planning, as well as estate planning and wealth transfer guidance. Our goal is to provide clients with as much information as necessary to effectively manage portfolios and help achieve their financial goals.
Weatherly Asset Management, L.P. is the investment advisory division of Weatherly Asset Management, Inc. As an independent partnership, the Firm is wholly owned and operated by the partnership.
For information on our wealth management team, and for a full list of services we provide, please visit: http://www.weatherlyassetmgt.com/team/
For information on our ADV filings and Compliance, please visit: http://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=106935
If you would like to learn more, please contact:
Carolyn P. Taylor
858-259-4507
Carolyn@weatherlyassetmgt.com
The TCJA that was signed into law on December 22, 2017 made significant changes to the tax code. The changes were broad and sweeping which leads to questions about what changed and what we can do to mitigate taxes under a new code. While the increase in the Standard Deduction has some individuals moving away from itemizing, there are still ways to decrease tax liability with “above-the-line” deductions, business and charitable planning and investment strategies. Our Key Data Chart outlines the main figures to focus on for tax planning. Read on to see our Top 5 strategies that might make a positive impact on your tax situation.
The What: Retirement plan contributions, an above-the-line deduction
The How: The most common way to reduce taxable income is a contribution to an eligible retirement account. This strategy is beneficial for two reasons – you can lower your tax bill now and access tax-deferred growth for the future.
This chart highlights the allowable deferrable amounts for various types of retirement plans, depending on your business structure and compensation. These contributions are “above-the-line” and directly reduce your Adjusted Gross Income (AGI), even if you are not itemizing deductions on Schedule A.
Retirement plan contributions not only reduce your taxes now, but also grow tax-deferred until you are required to take a distribution (RMD) at age 70.5. This graph notes the benefits of tax-deferred growth.
The What: Business structure, how the change in tax rates can impact your deductions
The How: C corps and qualified pass-through entities, including sole proprietorships, partnerships, S corps and LLCs benefit from the TCJA. C corps saw a reduction in tax rates from 35% to a flat 21%; pass-through entities with qualified business income are able to take a 20% tax deduction.
We’ve been encouraging our clients with business income of any sort to consult with their CPA on what business structure is appropriate for them and eligibility for the deduction. Similar to above-the-line contributions, you can take the 20% tax deduction, even if you aren’t itemizing under the new tax law.
The What: Charitable deductions, QCDs and bunching donations
The How: If you are over age 70.5, own a retirement account and are taking a Required Minimum Distribution, consider a Qualified Charitable Distribution. You are able to donate directly from an IRA up to $100,000/year. These donations are not included in taxable income on your 1040 and offer a tax benefit, even if you aren’t itemizing.
If you have a larger than usual tax year, consider “bunching” charitable donations to maximize your Schedule A deductions. With the TCJA reform, we’re seeing more individuals utilizing the standard deduction over itemizing. We’ve reviewed frontloading charitable funds on our blog, along with the advantages of donating stock and QCDs.
The What: Taking advantage of “gap years” with low income
The How: Financial planning is a tool most often used to visualize a path to retirement, but these plans are also helpful in identifying when you might have “gap years” of income in retirement. If you have a couple of years between retirement and collecting Social Security or RMDs, you might be able to take advantage of strategies like Roth IRA Conversions or even an IRA withdrawal to a taxable account. You might benefit your future self by removing assets from a Traditional or Rollover IRA in years when the tax rates are lower due to the TCJA versus having a higher RMD in later years when tax rates are less certain.
The What: Investing, utilizing tax-efficient stocks and bonds to maximize returns
The How: Although tax rates are lower, the limitation of itemized deductions, particularly in high tax states, makes tax-efficient investing even more attractive. Weatherly primarily utilizes individual stocks and bonds in our investment portfolios. Municipal bonds remain attractive, paying tax-free income at the federal level, and depending on the state of issuance and where you live, the income may be tax-free on your state return too. Qualified dividends and capital gains are taxed at a more favorable rate, and even in some of the “gap years” identified above we’ve seen individuals fall into the 0% bracket – you can offload low basis stock without the tax burden if planned appropriately.
Investment Management Fees and Tax Deduction
Prior to the TCJA, investment management and professional fees were tax deductible if they exceeded 2% of AGI. You can still pay investment management fees, as applicable, from a Traditional or Rollover IRA. This is a tax-free “withdrawal” which can help lower RMD impact in the future.
Some states conform to the TCJA at the federal level, mirroring the itemized deduction schedule. Others, like California, do not adhere to conformity and may still allow for deduction of investment management fees on your state return. You can check here or ask your CPA what you are eligible for at the state level.
Resources:
https://www.fidelity.com/viewpoints/personal-finance/taking-tax-deductions
https://www.nerdwallet.com/blog/taxes/pass-through-income-tax-deduction/
https://www.taxdebthelp.com/blog/pass-through-tax-deduction
** The information provided should not be interpreted as a recommendation, no aspects of your individual financial situation were considered. Always consult a financial professional before implementing any strategies derived from the information above.