We are, first and foremost, Wealth Managers.
Wealth Management consists of financial planning, but it goes further than that. It is the art and science of examining a client’s entire financial situation and delves into personal and family issues.
We do this to ensure, to the extent possible, that all systems are linked in as efficient a manner as possible. And while we cannot predict the future, we can prepare for the possible outcomes.
The tools of Wealth Management have changed over the years. Back in the pioneer days – the 60’s and 70’s – a Wealth Management Plan might consist of a bound volume (or volumes) with multiple tabbed sections, each addressing a particular financial aspect. (Many of these plans were relegated to the filing cabinet, never again to see the light of day.) Over the years, integration worked its way into the process. One could now see the effects of a portfolio of investments on his or her taxes and ultimate net worth. However, projections at the time were “linear” in that an estimated portfolio return was presumed to be the same each year.
A major change in the planning landscape happened – sometime in the 90’s if memory serves – with the availability of Monte Carlo analysis. This process, once the province of engineers and demographers, became available to Wealth Managers. Monte Carlo goes beyond linear analysis in that it is able to do a probability analysis after creating thousands of “trials” where investment returns and correlations are randomized. Portfolio withdrawals and taxes are taken into account, addressing the “sequence risk” that comes with volatility. It is a step towards the holy grail of being able to predict financial outcomes.
The next major change - the current state of the art - is the ability for planners and clients to collaborate, whether online or in person. Gone are the days of bound financial plans – today’s plans are dynamic! Our current Wealth Management software can aggregate multiple financial assets, including brokerage accounts, checking and savings, insurance policies and so on. These can be updated daily via a link to the custodian. A change in one number reverberates through the system, simultaneously updating a plethora of reports and analysis. In the past, a planner had to update the data and produce reports. Now clients can merely log into their secured site and see the effects for themselves.
We offer the following services to support our Wealth Management Process.
With access to virtually all mutual funds, stocks and bonds, we are able to design and manage portfolios that match clients’ risk profiles.
Life Insurance and Annuities
These products can play important roles in a client’s financial situation. We are able to search the universe of available products to come up with the right fit.
Tax Preparation and Consulting
Every financial transaction has a tax consequence. In many cases our first client interaction is through their tax return. In many cases we are able to make suggestions that reduce taxes. Often times the tax return can be a gateway for financial improvements.
We are available for consulting for situations such as IRS audits and other specific situations.
While we have access to numerous Third Party Administrators and Recordkeepers, we look for the most efficient one to suit the plan.
401K Plan Design and Management
401(k) plans are the primary retirement vehicle for many employees.
We design these plans "from the ground up", tailored to each company's specifications.
Some of the highlights of our plans are:
- As a registered investment advisor, Florida Tax and Wealth Advisors, LLC, serves as a plan fiduciary.
- We take on the responsibility and liability of selecting and monitoring the funds in the plan. Doing so mitigates the liability of the plan sponsor and corporate offices.
- We provide access to institutional class mutual funds with relatively low fees and turnover.
- We design risk-based portfolios ranging from conservative to aggressive and manage these portfolios using our fund screening process. We also provide target date funds for those employees that want to put their portfolio on autopilot.
- Participants can also choose from a list of available funds if they want to design their own portfolio.