Net Worth Financial Planning
Since life isn’t simple and straightforward, many financial situations are not merely complicated, they are complex. Client issues are interrelated, where a change to one item affects others and spans across different areas of expertise (e.g. new investment in real estate typically has impact on marginal tax rate). In hyper-complex situations, deep-comprehension, expertise and customization are vital. By having a team of experts, Delta Wealth is able to utilize the strength of each professional to deliver a more powerful set of solutions to clients.
Having left the brokerage industry, where advisors are incentivized to gather as many assets as possible, we have a unique view on what financial planning should not be. It is impossible to maintain hundreds of client relationships and deliver in-depth financial planning. Many times, we see other firms offering a limited financial planning approach, which consists of a discovery meeting followed by a second meeting of proposed solutions.
Life isn’t stagnant and changes in life necessitate constant communication between us and our clients. Financial planning occurs through ongoing in-depth conversations. In fact, many of the client calls we have are centered on possible actions (e.g. “If I do X, how does that affect Y?”)
At Delta Wealth we collaborate with our clients and spend the necessary time to address complex financial issues as well as regularly revisit them. Through our applied knowledge and passion for our careers, we guide our clients through financial matters to offer the best solutions.
At Delta Wealth every decision we make considers after-tax returns. We know taxes are a zero-sum game: each dollar saved in taxes remains in your bank account, not the government’s. Many other advisors do not appreciate this fact. They make buy/sell decisions without considering a client’s tax situation. This can lead to excessive tax bills even in calendar years with minimal cumulative gains. In order to avoid this shortcoming, open and proactive communication with clients is vital.
Unfortunately, many advisors and clients alike don’t realize that after tax returns should be the focus. To solve this problem and save clients time, Delta Wealth offers a full suite of tax planning, preparation and advisory services. By offering in-house tax services from our CPA’s, we are able to better plan for taxes. When warranted, this can prompt changes in the client’s portfolio and resulting tax situation.
One of the best ways an advisor can help with taxes is to eliminate unnecessary portfolio activity. Excessive trading and recognizing short-term capital gains causes a tax drag on the client’s net worth. Delta Wealth creates portfolios that are long-term oriented, thereby reducing the short-term trades that generate higher taxes. Additionally, we utilize extremely tax-efficient investment vehicles in our portfolios.
Most advisors only review taxes at the end of the year. Their form of “tax planning” is really just reactionary. We prefer to be proactive in all forms of net worth advisory—especially taxes. For this reason, we are in regular communication with accountants, whether they work for Delta Wealth or externally.
Investing can feel overwhelming—which stocks to buy, when to sell, different types of investments (e.g. mutual funds, individual stocks, ETF’s), and the infinite number of market forecasts to consider. Instead of relying on opinions, we look to data to guide our investment decisions. By evaluating historical returns of different assets and market behavior, we create a comprehensive portfolio to help achieve client goals.
At Delta Wealth, we remove the unnecessary complexities around asset management and focus on the long-term trends to benefit our clients. By managing behavior and tuning out the day-to-day market commentary, our clients appreciate the importance of evidence-based investing and focusing on long-term goals.
Before investing a dollar of our client’s money, we have an in-depth conversation with our client about 5 key areas:
1. Client goals
2. Personal tax situation
3. Liquidity needs
4. Risk tolerance
5. Time horizon
We are able to answer these key questions by utilizing one or a combination of our five proprietary investment models. These models span the spectrum of risk, are monitored daily and can be block traded to ensure consistency amongst clients.
By offering five core models, our investment professionals are able to perform extensive due diligence on each of the funds we invest in. We continuously spend our time on improving these models through research, communication with peers and risk analytics software. This approach results in efficient portfolios that target long-term outcomes.
Impact Investing is the “new, old thing” in investing. While Impact Investing is new to many of our clients, institutions have been integrating their values into investing for decades. The predominant stock index, the Domini Social Index, was created in 1990. In 2006, the United Nations Principles for Responsible Investing was launched and now has signatories with over $4 trillion in assets under management.
With Impact Investing, we can align our clients’ values with their investments. By leveraging Impact Investing, clients can consider their investment funds an extension of their charitable endeavors. “Do well by doing good.”