Wealth Management Services

Wealth Management brings together an integrated team of knowledgeable professionals to help you build, manage, preserve and transition your wealth. This team provides strategies to address your unique financial situation and pursue your needs.

Our clients receive advice from a team of wealth management professionals. Our Advisors offer comprehensive financial planning which addresses cash flow management, education planning, risk management, investments, retirement and estate planning. Based on the client’s goals, we make recommendations and implement strategies to work toward each defined objective.

Comprehensive Advisory Team

As we uncover complex financial, tax and legal matters, we partner with other professionals to provide comprehensive strategies.

Below are some of the professionals with whom we collaborate:

  • File Tax Returns
  • Tax Planning
  • Tax Reduction Strategies
  • Retirement income for life planning
  • Cash flow and budgeting
  • Education funding
  • Legacy planning
  • Charitable planning
  • Group Benefits Recommendations
  • Company Retirement Plan
  • Executive Fringe Benefits Analysis
  • Life, Disability & Long Term Care
  • Deferred & Immediate Annuities
  • Health & Medicare
  • Property & Casualty
  • Estate Settlement
  • Trust Administration
  • Conservatorship
  • Ownership Transfers
  • Inheritance Strategies
  • Mutual Funds, ETFs, Stocks & Bonds
  • Qualified & Non-Qualified Accounts
  • IRA/Roth IRAs & Rollovers
  • Real Estate
  • Estate Plan Design
  • Elder Care Planning
  • Special Needs
  • Divorce

Financial Planning

We begin every client relationship by developing a personal financial plan. We follow a proven and detailed six-step process, which enables us to assist you with your financial goals and objectives.

To begin the wealth management consulting process, your advisor will gather facts and understand your desires. Each client has a unique set of circumstances, so we get to know you on a personal level. We assist you with defining your goals and begin to devise a plan tailored for you.

To build a solid plan for the future, we gain an understanding of your assets and liabilities to develop your current net worth statement. We review your bank, brokerage and retirement accounts to better understand your investments. We review your debt structure to uncover potential savings. Our firm provides a comprehensive review of all insurance policies, and we offer solutions which provide proper coverage at a reasonable price. We analyze your current tax strategy and make suggestions to help reduce and potentially avoid taxes, both today and in the future. Finally, we evaluate your estate documents to ensure your desires are carried out in the event of your incapacity or untimely death.

Our firm uses financial planning software, called eMoney, to understand your current situation and model future financial scenarios for your review. Proper planning allows your advisor to illustrate the financial impact of various events, such as selling a home or business, retirement or unexpected life events. Using conservative estimates for portfolio returns, inflation and taxes, we review potential outcomes to assist you in making important decisions. Throughout the planning process, you will become educated in many areas related to wealth management. With each meeting, we build upon your knowledge until you have the information needed to make informed decisions.

Upon our mutual commitment, we begin to implement and execute financial strategies. Your advisor will organize your financial documents, consolidate your accounts and design your investment and risk management plan. Once we understand your risk tolerance and assess your need for growth and income, we invest, monitor and manage your portfolio with the appropriate allocation of equities, fixed income and alternatives. Finally, we address any risk management concerns by reviewing and possibly restructuring your insurance coverage.

As we consolidate your accounts and policies, your advisor will monitor and track our progress each step of the way. We will inventory all accounts and policies and finalize financial planning and investment strategies.

Once your plan has been fully implemented, we will hold periodic meetings to review your accounts, including an assessment of your asset allocation and investment performance. As we meet, we will discuss major life events to better understand the impact to your financial plan. We will make recommendations and update your plan, if necessary. As advisors, we understand that you will be faced with challenges in life. Our goal is to serve as your personal financial coach to help guide you along the way.

Many of your birthdays have a financial impact on your life. Our advisors educate you about the rules and requirements associated with the following ages:

Retirement Planning

Whether you are in the accumulation or distribution phase of the retirement planning process, it is important to have a thorough understanding of savings, distribution and tax strategies. Our team of qualified retirement advisors will assist you with defining your retirement goals, and we will create a customized plan which is designed to help you live a successful retirement.

Below are some of the common services provided to pre-retirees and retirees:

To be eligible for a Traditional IRA, you must have earned income and be less than 70 ½ years of age. A Traditional IRA provides a way to save in a tax-deferred manner, but there are annual contribution limits and potential tax deductions. These limits and deductibility rules change, so it’s important to work with a qualified advisor to assist in the decision making process.

Often times, employees change companies or careers and leave employer-sponsored retirement plans behind. The process of consolidating these accounts into an IRA is called a rollover.

To be eligible for a Roth IRA, you must have earned income. Unlike a Traditional IRA, you can contribute to a Roth IRA if you are 70 ½ years of age or older. A Roth IRA provides a way to save in a tax-deferred manner, and you can make tax-free distributions of contributions and earnings after age 59 ½. There are annual contribution limits and tax-free distribution rules you must follow, so it’s important to work with a qualified advisor to assist in the decision making process.

A portfolio should be designed to meet an individual’s retirement income needs. Growing a client’s portfolio is important, but taking on unnecessary risk is not prudent. It’s important to perform a risk assessment before constructing the proper portfolio. During this process, factors such as age, time horizon, tax bracket and income needs are taken into consideration.

With advances in healthcare, many retirees are concerned about outliving their money. Our advisors develop income for life strategies to address these fears. This process involves a thorough review of all expenses as compared to existing retirement income, such as Social Security and defined benefit pension plans. When developing an income plan, our objective is to provide income to cover any shortfall. As independent advisors, we have access to numerous fixed income securities and various types of annuities which are designed to provide income for life.

Retirees with employer-sponsored retirement plans and Traditional and/or Rollover IRAs are required to begin annual distributions after April 1st of the year following age 70½. The required minimum distribution, often called RMDs, must be taken by 12/31 of each year. If the correct amount isn’t taken, the IRS imposes a 50% penalty, based on the amount of the required distribution. If you are still employed at age 70 ½, you are not required to take a distribution from an employer-sponsored retirement plan unless you are a 5% (or greater) owner of the company.

When planning to begin Social Security Benefits, retirees must take many factors into consideration. You can begin taking benefits as early as 62, but you can also defer your benefits until age 70. You must consider your life expectancy, income needs, employment and marital status when making this important decision. Today, retirees are living much longer lives, so it is important to maximize annual benefits while understanding the impact on each recipient’s lifetime benefits.

When employers are forced to reduce their workforce, many of them offer retirement packages to long-standing employees. These offers typically involve severance pay and some additional benefits. Our advisors offer a complimentary evaluation of your retirement offer. We understand this decision can impact the rest of your life, so we offer candid feedback and sound advice.

Many employers offer retirement plans to attract and retain their employees. Most retirement plans allow you to contribute to a tax-advantaged account through payroll deduction, while some employers contribute on your behalf. To encourage employees to save, many employers offer a matching contribution. Having a retirement plan is important, but many plans are underutilized due to a lack of employee education. During the planning process, we offer a complimentary review of your employer plan to make sure you are taking full advantage of the benefits being offered.

Pension plans offer annuity income options, lump sum payments or a combination of these options. Pension plans can have a significant impact on a client’s retirement, so it is important to incorporate this benefit into the comprehensive wealth management plan. To make an informed decision, it’s important to work with a qualified advisor when reviewing these options.

As you spend down your retirement accounts, it is important to utilize a tax-efficient distribution strategy. Many retirees have investment accounts which grow tax-deferred, taxable and tax-free. When consulting with retirees, we often distribute income from a combination of these accounts to reduce your income. Lowering your income will lessen your federal and state taxes, but it can also lessen the taxes on your Social Security benefits and lower your Medicare Part B premiums.

We provide advice for the following executive benefits:

A stock purchase plan enables employees to purchase their company’s common stock, often at a discount from the market price.

Non-Qualified Stock Options are stock option plans which do not meet certain IRS requirements, eliminating special tax treatment of the stock’s gain, called the bargain element.

Incentive Stock Options are stock option plans which meet certain IRS requirements, which allow for special tax treatment of the stock’s gain, called the bargain element.

An RSU is a grant valued in terms of company stock, but the actual stock is not issued at the time of the grant. After the recipient of a unit satisfies the vesting requirement, the company distributes cash equivalent to the number of shares used to value the unit. RSU’s are subject to ordinary income and payroll taxes, so this must be taken into consideration when planning for future expenditures.

An RSA is a grant of company stock in which the recipient’s rights in the stock are restricted until the shares vest. Once the vesting requirements are met, an employee owns the shares outright. RSAs are subject to ordinary income and payroll taxes, so this must be taken into consideration when planning for future expenditures.

Restricted Stock is typically acquired by executives, as compensation for their professional services.  Restricted Stock can be sold, but the executive must meet certain conditions set forth in Rule 144.

SARs are awards which provide the holder with the ability to profit from the appreciation in value of a set number of shares of company stock over a set period of time. The valuation of a stock appreciation right derives value when the stock price increases above the price set in the award.  The employee is not required to pay an exercise price to acquire shares, but simply receives the net amount of the increase in the stock price in either cash or shares of company stock.

A performance award is a grant of company shares or units in which the recipient’s rights in the shares or units are contingent on the achievement of pre-established performance goals.

A plan which allows a highly-compensated employee the ability to defer a portion of their compensation, and attributable federal and state income taxes, into the future.

Executive Benefits Planning

To attract, retain and reward executives, many companies provide benefits which aren’t offered to all employees. As an executive it is important to have a complete understanding of the benefits offered by your employer, but it can be difficult to navigate the rules of each plan. Many of the plans have complicated guidelines and tax implications, so it’s imperative to work with a professional advisor to design and implement appropriate planning strategies.

Our advisors seek to understand each executive’s personal goals and objectives. After defining short and long-term goals, we design a customized wealth management plan to pursue each stated objective. Upon mutual commitment to work together, we implement each step of the plan. As time progresses, we are here to guide and assist in the execution of strategies to maximize your executive benefits.

Investment Management

We employ our six-step investment discipline for every client. Our philosophy is one of fully independent, non-conflicted, open architecture investment management. We offer no proprietary products of any kind, which allows us to focus on the best possible outcome for your financial goals.

Below are risk management strategies we offer:

Our investment management process begins by listening to you, our client. Whether you engage Cornerstone Wealth for a full wealth management plan or retain our firm to manage a portion of your investment portfolio, our advisors will engage you in a series of comprehensive conversations. We strive to fully understand every client’s financial circumstances, financial goals, family considerations and risk preferences. Armed with this information, our investment management team begins the construction of a customized portfolio specific to each client.

Our investment outlook begins with an exhaustive and ongoing analysis of multiple layers of global economic information. Our discipline includes the monitoring of hundreds of data sets to identify, throughout the world, where economic activity is accelerating, remaining stable or decelerating.

Selecting a suitable asset allocation for our clients is paramount in the investment management process. Our investment team monitors a large matrix of domestic, international and emerging market asset classes, including equities, fixed income and cash. We evaluate the relative attractiveness of each asset class, based upon our valuation analysis, overlaid with our economic assessment. From this process, our investment committee makes decisions to overweight and underweight specific asset classes.

After determining the proper asset allocation, we construct a portfolio unique to each client.

The following are some examples of investment options:

Stocks
Large Capitalization Stocks • Small Capitalization Stocks • Preferred Stocks • Public REITs and MLPs • International Stocks

Bonds
Government Securities • Corporate Bonds • Municipal Bonds • International Bonds

Alternatives
Commodities • Private Equity • Hedge Funds • Managed Futures

Our investment process never ends, nor does the monitoring of your portfolio. Our team constantly evaluates the investment environment, making adjustments and changes when we believe necessary. Where appropriate, we always consider tax related implications of any change to your portfolio.

Wealth Advisors meet regularly with the investment team and have a full understanding of the firm’s investment perspective. Following every your review meetings, you have with your advisor, they your advisor will meet with the investment team to discuss what may have changed potential adjustments to your portfolio. As you move through the cycles of life, your portfolio is managed accordingly. At Cornerstone Wealth, we have a 365 day, 360 degree focus on you.

Risk Management

Each of us encounter risks throughout our lives, and most losses can be emotionally and financially devastating. If there is a possibility of loss, it is important to protect yourself with the proper risk management strategies.

Our risk management process begins with a thorough review of your potential risk exposures. After analyzing your needs, our advisors will recommend the proper amount of coverage and the product type to best fit your needs. Whether you are concerned with outliving your savings, an untimely disability or death, comprehensive healthcare or a catastrophic loss, we will work with you to find a suitable strategy.

Below are risk management strategies we offer:

Lifetime Income Annuities
If you are like most retirees, you may have concerns about outliving your money. learn more >>
Life, Disability & Long-Term Care
If you could suffer financially due to your untimely death, disability or long-term care situation, we offer strategies. learn more >>
Affordable Care Act Health Insurance & Medicare
learn more >>
Property & Casualty
Property & Casualty coverage is something to consider as part of your plan to protect you and your family against a catastrophic loss. learn more >>

Estate Planning

Estate planning is the process of organizing your financial and healthcare decisions to best serve your family and your heirs. With a focus on your priorities, we work with a estate attorney to create a customized estate plan that will allow you to maintain your current lifestyle and provide for your loved ones in the event of your incapacitation or death. If you have charitable inclinations, your estate plan can direct contributions during your life or in the future.

Your estate plan is unique to you, but you must define your objectives in order to carry out your desires. If you and your attorney have created your estate documents, we will review them thoroughly and make necessary updates. After confirming your estate plan meets your objectives, we will fund your plan by registering your accounts and naming your beneficiaries properly.

Below are some of the essential and advanced estate planning services we offer:

  • Last Will & Testament
  • Durable Power of Attorney
  • Healthcare Power of Attorney & Living Will
  • Revocable Trusts
  • Irrevocable Trusts
  • Trust Administration (offered through Multiple Trust Companies)
  • Multi-Generational Strategies
  • Education Funding
  • Direct Gifting Strategies
  • Donor-Advised Funds
  • Charitable Trusts
  • Private Foundations
  • Beneficiary IRA Distributions
  • Securities Step-up in Basis
  • Non-Qualified Annuity Distributions

Digital Planning Solutions

As part of the wealth management consulting process, our team utilizes Private WealthGuide a cutting-edge, web-based program that provides three convenient services within your own personal website.

Account Aggregation
If you are like most investors, you have to visit multiple websites to obtain all of your account balances. We provide a user-friendly tool to consolidate and update the balances of your assets and liabilities, including those held elsewhere, on a daily basis. Whether you would like to view account balances, investment details or a consolidated balance sheet, you will have access to such customized reports at your fingertips.
Comprehensive Financial Planning
Without proper planning, it is difficult to make important financial decisions. Using eMoney, your advisor can assess your current situation, model cash flow projections and illustrate various financial planning scenarios. This innovative program allows your advisor to educate you and evaluate the impact of your decisions.
Secure Document Storage
We offer a safe and secure document storage service. This service allows you and your advisor to upload and access your documents from a computer, tablet or smart phone. You can save documents such as your Tax Returns and Estate Plan for convenient viewing, or you can temporarily store a copy of your passport while you are visiting a foreign country. No matter how you utilize this tool, you can rest assured that your important documents will be accessible when you need them.

To learn more, please contact your Wealth Advisor. If you have a Private WealthGuide account, click here to log in.

We will provide you a private and secure location where your data is consolidated into one clear picture of you.

Learn how your account information and documents are secured.