NEWS Archives - Page 11 of 13 - Centura Wealth Advisory

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Estate Tax: What to Expect from Upcoming Changes

Last year, our team posted an article titled, “A Brief History of the Estate Tax and Potential Implications for the Upcoming Election.” A lot has changed since then, and it’s important to reflect on the predictions and outcomes of the estate tax changes that may occur in the next year.

What is the Current Estate Tax?

Estate Tax is a tax on your right to transfer property at your death. When our first article was written, there were very few taxpayers that encountered the Estate Tax because the exemption level was at an all-time high.

Currently, the threshold of estate tax exemption is at $11.7 million at a 40% tax rate. This tax only affects the amount above the $11.7 million thresholds.

The Tax Foundation provides an example of what the future could look like:

“The value of the original asset is $100 million
The value of an asset after $1 million step-up in basis repeal exemption
The Capital gains taxed at ordinary rates 39.6% + 3.8% NIIT = 43.4%
The capital gains tax owed is $42.96 million.
So, then the value of remaining assets in the estate are:
Biden’s estate tax exemption ($11.7 million)
Added to the taxable estate, and estate tax rate (40%)”

Following this example means that with the value of the original asset being $100 million, the total taxes being paid is $61.10 million, with the effective tax rate being 61.1%.

The Proposed Gift and Estate Tax Exemptions

The current proposal includes a reduction from the current $11.7 million (inflation-adjusted for 2021) threshold to a $5 million (inflation-adjusted) threshold proposed to start on January 1, 2022. The 40% estate and gift tax rate did not change, and the changes will not be retroactive if this proposal goes through.

What to do before the proposed tax plan goes into effect

There is a short period of time before any tax changes go into effect. As you begin planning for the next year, think about where you may want to adjust your portfolio to account for these potential changes.

Because the proposed tax plan is not retroactive, any gifts that end before 2021 will not be subject to the updated tax structure. There are also a few things to consider while you plan.

What is a Grantor Trust?

Grantor Trusts are trusts that separate the Grantor and contributor for both estate tax purposes and income tax purposes. The Grantor would be considered the “owner” of the trust for income tax purposes, transactions between trusts, and they are considered “disregarded.” This means that assets sold or exchanged with the trust will not trigger income tax consequences.

However, this Grantor Trust must be established prior to the new plan going into place in order to be grandfathered into the current tax plan.

QRPT, GRATs, and CLATs

The use of life insurance trusts, Grantor Retained Annuity Trusts (GRATs), Qualified Personal Residence Trusts (QPRTs), and Charitable Lead Annuity Trusts (CLATs) may also be affected by this updated tax plan. It’s important to ask your wealth advisor what trust options may be affected by the updated tax plan in 2022, in order to take advantage of the current tax plan while you can.

Will the estate tax changes affect me?

The estate tax of those worth $11.7 million or more (individually or $23.4M jointly) is a federal tax that will affect those taxpayers. Any updates to the federal estate tax will affect all states.

However, some states also charge a state estate tax. The Tax Foundation reports that the states that have an estate tax in 2021 include:

Oregon
Minnesota
Illinois
Maryland
Vermont
Connecticut
New York
Rhode Island
Massachusetts
Maine
Hawaii
Washington, D.C.

As you look to plan for your family’s future be sure to consider the implications of updates to tax plans. Do you have a strong strategy for your family’s future? Get started on your strategy by reading our article, “Generational Wealth: Transform Your Strategy to Make It Last.“

November 21, 2021

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INVESTING, NEWS

Five Questions to Ask Your Financial Planner

If you’re new to financial planning, it can be difficult to know what questions to start with—even if you’re not new to planning, this is true. Here are five questions to ask your financial planner at your next meeting.

What is Your Wealth Advisory’s Philosophy?

If your personal philosophy aligns with your wealth advisor, chances are it’ll be a successful partnership.

For example, Centura Wealth Advisory believes in Liberating your Wealth® through many different avenues and passions. At the end of the day, finding an advisor that will understand you, and that you trust fully to navigate through the calm and stormy waters is important.

What’s Your Financial Planning Process?

It’s important to know what the plan is with your investments and wealth. Centura Wealth follows the Liberated Wealth Process®, but our process might look different than another advisory. As an example, our process follows these five steps:

Uncover

Holistic discovery by gathering and understanding data; the client’s purpose, path, and professional roster.

Unlock

The next phase is to follow a precise design by analyzing and triangulating existing strategies, establishing a baseline plan, considering “what if” scenarios, and identifying a planning scope.

Design

The design element is a core piece of the Liberated Wealth Process®. The design element includes a multi-phase action plan, a wealth scorecard, and charting new pathways.

Liberate

Understanding purposeful deployment. This includes implementation and advancement with plan implementation, coordinating professionals, portfolio implementation, and scorecard reporting.

Steward

The final step of the Liberated Wealth Process® is to monitor and pivot through purposeful deployment. This includes plan monitoring, timely recalibration, and life events reset.

This is one detailed explanation of what a process can look like to a client. It’s important to understand what the short and long-term goals are for your wealth management, and understanding your advisor’s process is the first step to completing those goals.

What is Your Company Culture Like?

You want to work with people you enjoy and who are going to go the extra mile to manage your wealth. Understanding their company culture can unlock what future meetings and communication will look like.

Centura Wealth likes to highlight creating energy in the workplace, but this is not everyone’s style. Hear from the Centura Wealth team as they provide an inside look at how the company culture looks like, “Seeking the Best: An Inside Look at Centura’s #1 Asset.”

Roby Kotcamp, Senior Wealth Advisor explains the culture. “One of the things that strikes you about Centura from an associate, employee, partner perspective, is that really there’s an embracing of people where they’re at. Real encouragement for people to be their authentic selves is valued.”

This is one example of a company culture that is founded on the goal of encouraging its’ own team and clients.

What is Your Client Retention Rate?

When you’re picking out a restaurant to eat at, where do you look first for input? Past customers write reviews and post photos that you’re likely to sift through before selecting.

Similarly, it can be helpful to ask about their client retention rate to gauge if they have a loyal clientele base.

How Much Will This Cost Me?

It’s important to ask about pricing upfront, so there are no surprise extra fees or costs along the way. Or, does the financial planning firm receive any compensation recommended for investments?

Since your financial planner is working with your money, it should be an initial conversation to avoid any miscommunications.

The terms ‘wealth manager’ and ‘financial advisor’ are often thrown around, but what are their differences? Learn more on our blog post, “Wealth Manager vs. Financial Advisor.”

November 5, 2021

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INVESTING, NEWS

How Intention Influences Financial Planning

Tim Maurer with Forbes said it best, “Personal finance is more personal than it is finance.”

Financial planning is a big step towards Liberating your Wealth® and will come more naturally if intention plays a role in decision making.

In the basics of journalism, the questions that are used to determine the intent of a story are:

What?
When?
Who?
Where?
Why?
How?

These questions can loosely be applied to financial planning, and are a great guideline to follow when navigating through intention. Are those questions following your goals and intention with your financial planning?

For example, if at one point you wanted to highlight philanthropic efforts as an important foundation for your financial plan, that is one intention that can answer the six journalistic questions.

Liberate your Wealth®

If you’re trying to Liberate your Wealth®, odds are intention is at the forefront of your decision-making. This is great news. If your mind and heart are wanting intentionality to influence your financial planning, then the processes and strategy to do so will become more tangible.

Family Involvement

One example of intention influencing financial planning is succession planning and inheritance. The intention behind financial planning is to set up your family members for success and provide for future generations. Since there is a passion for protecting your loved ones, the intention fuels the fire of financial planning.

It can also be broken down into smaller moments within financial planning. For instance, talking to aging family members about wealth and inheritance can be a difficult conversation. Therefore, the intention must be behind the conversation about financial planning.

Find your Why

Centura Wealth acknowledges that as a wealthy family, you likely carry the burden of your wealth. Because wealth has many complexities and responsibilities, it can be easy to lose intention in the daily tasks of financial planning.

Finding your why is remembering back to when your career (or need for financial planning) started.

What were your passions and goals for your wealth?
Are those still true to your planning efforts now?

If you feel like you have strayed from your original goals, that’s okay. This is why intention does influence financial planning, and your purpose with your intention can always be found again.

Choosing a Financial Advisor or Wealth Manager

Are you confused about the difference between a financial advisor and a wealth manager? Learn about the differences here to help you understand who you’re wanting to partner with. The main difference between the two roles is clientele needs. If you want to hire someone who works with intention, then it’s worth taking the time to find an equal match.

Centura Wealth strives to create energy inside and outside the office. Some of our advisors have embarked on trying new meditation strategies, patterns, and exercises to create energy. Find out how it’s going here, “How Does Centura Wealth Create Energy?”

November 1, 2021

employee talking about experience at Centura

INVESTING, LIBERATED WEALTH, NEWS

Seeking the Best: An Inside Look at Centura’s #1 Asset

Do you ever wonder what it’s like to be a part of the Centura Wealth team? Watch the video below to learn more about how Centura works to balance personal and professional life for all of our employees.

As an advisory, we believe in encouraging people to be their authentic selves and motivating them to achieve their North Star, or the legacy they want to leave behind. The North Star is a bearing point in someone’s journey. It embodies our client’s and our employee’s goals, values, and purpose for their life and their wealth.

Tell us about your experience at Centura Wealth Advisory

Derek Myron, Managing Director

“We founded the company in 2014, and I’m one of the original founders. I think that being in financial services, there’s a lot of different models for service. And we saw a need to really add value to the folks that we serve.”

Tigran Muradyan, Associate Advisor

“A friend of mine introduced me to Centura Wealth Advisory. It’s interesting working as a financial wholesaler. I have the opportunity to really visit many different financial advisory offices as a consultant. And you get to see their best practices, their approaches, their ideologies, kind of the dos and the don’ts.

And I could truly say that this is home for me. This is one of the best financial advisory offices in the country that truly takes the care, and a holistic approach to meet high net worth clients’ needs.”

Zoe Singh, Associate Advisor

“My name is Zoe and I am an associate advisor at Centura. And I started here as an intern back in 2017, and I was a student at SDSU, at the time, and I really enjoyed the internship here. It was my first internship, so you could say this was my first real job. And it was a great experience because I really liked everybody here.”

What’s unique about Centura Wealth Advisory?

Dana Levin, Client Relationship Manager, Philanthropic Strategies

“We offer a lot of really unique benefits to working on our team, in terms of comradery, but we also have experts in a variety of different spaces.

We have people who are insurance experts. We have people who are planning experts. I bring the unique value proposition of having somebody specific to philanthropy, which really sets our team apart from your standard RIA.

And we really pride ourselves in being ahead of the game, ahead of the strategy, so that we can really add the most value for our clients. Being part of that team, and gaining new colleagues with the drive to be better will only enhance our impact.”

Kyle Malmstrom, Managing Director, Co-Chief Investment Officer

“What is different about our firm is we live to the values that we set forth in our company, and we make decisions based on those values.

One of the things we bring to our clients is excellence. We try to deliver A-plus work, A-plus service, A-plus solutions, and we take a lot of pride in the work that we do, and we spend a lot of time and effort to get it right.”

Who does Centura Wealth Advisory serve?

Matt Griffith, Senior Wealth Advisor

“We have a variety of clients. I think the type of client that fits well is, some who has experienced a catalyst; there’s something in their life that’s happening, and they’re saying, “Look, we need help figuring out some of this complexity.” And maybe it’s just, “Over time, our income has continued to drift higher. How do we handle and look to mitigate some of the taxes around this higher income?” ”

Who are you looking for to join the team?

Derek Myron, Managing Director

“We’re looking for people who are intellectually curious, who have a thirst for constantly learning new things. In the planning environment, laws constantly change. You have to constantly be talking to centers of influence, who are figuring out new ways to provide value. The types of people that we’re looking for are people that are just not satisfied and are constantly want to learn new things.

And in every relationship, whether it be a client relationship, a center of influence, or an employee, we’re looking to figure out how we can create exponential value. How do you plus me together add up to be more than two? How does it get to be three, or four, or five?”

What is the company culture like at Centura?

Roby Kotcamp, Senior Wealth Advisor

“The culture of Centura is really one of the most impressive things that I’ve seen in some time.

One of the things that strikes you about Centura from an associate, employee, partner perspective, is that really there’s an embracing of people where they’re at. Real encouragement for people to be their authentic selves is valued.”

Kyle Malmstrom, Managing Director, Co-Chief Investment Officer

“Here at Centura, we believe everybody has a north star. I have a north star, all of the employees here have a north star, our clients each have their own north stars. Our job, my role, and our firm’s role is to help people achieve their north star.

And by the north star, I mean, what’s important to you in your life? What is it that you want to accomplish? What is the legacy you want to leave? How do you want people to remember you? And our job is simply to help facilitate that. And oftentimes, we do that in a financial capacity.

Our job is similar to a life coach in helping people understand, “Hey, you can do this, you can achieve that. And here’s the best way to do that.” ”

How has the culture impacted you personally?

Libby Dingfield, Vice President, Growth and Development

“We have an executive coach that the entire company gets to work with. Right now, we’re currently reading a book together, and we meet and discuss how we’re going to implement that into our own lives. It’s not only how we can better ourselves here at work, but how we can grow as individuals and become truly more well-rounded people?

Because anytime you’re going to grow professionally, you have to do the work to grow in your personal life as well.”Hear more directly from the team on their goals, and how implementing them has created energy in the workplace and their personal lives on our blog, “How Does Centura Wealth Create Energy?”

October 22, 2021

Young family running down rocky mountain trail. Two kids running with parent on a trail in forest.

ESTATE PLANNING, NEWS

How to Speak with Aging Family Members About Wealth and Inheritance

The Los Angeles Times reported that “about $36 trillion will flow from one generation to another over the next 30 years.” This large amount of inheritance moving from one generation to another means more conversations surrounding money management. While this conversation may feel morbid and uncomfortable, it is essential to making sure your wealth remains after multiple generations.

How can you make this conversation about financial planning healthy and productive?

Timing

Environmental and personal factors can heavily influence how a conversation will go. Ideally, you will have prepared them that the conversation about wealth and inheritance is coming.

Bringing up the topic out of the blue may overwhelm your family members. Slowly starting to mention smaller financial topics while easing into the larger inheritance conversation can be extremely beneficial. Understanding when your family members are prepared to hear this conversation, and really understand the wealth that may be coming their way is essential.

It may be beneficial to introduce them to your wealth manager, so they can start having conversations with them about how to manage their inheritance.

Be Direct

Sometimes sugar coating a topic feels like it will help ease what might feel uncomfortable, however, being direct will actually help both you and your family in the long run. It’s important to make sure that you understand exactly what may be coming your way in terms of inheritance. Do they have a property in Wyoming that you don’t know about? It’s important that you don’t have any surprises coming your way during such an emotional time.

Understanding exactly what is included in your inheritance will also allow them to start planning on ways to continue to grow and build that wealth–– with the help of your family members. This introduction to your inheritance will help guide more conversations surrounding wealth management, investment strategies, and financial planning.

Succession Planning

For some families, inheritance means passing on a business.

The element of succession planning that rarely gets addressed is the emotional ties that the founder has to the organization. Letting go of the authority and importance of owning a business can be complicated.

Some of the key factors of planning for the transfer of power often require adding a third-party coach to the mix. In addition, planning for what the founder will do with their time after the transfer is often complicated. Some of the questions that might come up are:

What role will they have?
What influence will they have over decisions?
Who has veto power?
What retirement planning will be implemented for the founder?
How will company culture change?

One option is implementing an incremental transfer of power, meaning there is a plan in place to gradually decrease the founder’s involvement in the company over a period of time. Not only will this allow the founder to still feel connected to the company during the transfer, it will also allow the successor to learn from the founder’s experiences.

Ask for Advice

With age comes wisdom. It can be helpful to acknowledge that you respect and understand that you can learn from your aging family members.

Ask for advice on how they’ve managed their wealth and what plans they had in place for their financials in the future. This demonstrates that you want what’s best for their life earnings and family.

At Centura, we believe one of the key elements of liberating your wealth is planning in a way that unpacks your family’s values and dreams–– following an overall purpose. As you dive into your family’s finances, it’s important to understand what that purpose is, so you can carry on the tradition.

We Can Help!

At Centura, our process caters to your unique needs, therefore is well-adjusted to serve our audience. Just as important is our passion for finding and solving complex problems. Inherited wealth can be complex. Read more about how to understand the complexities that come with inherited wealth in this blog post.

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

October 16, 2021

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LIBERATED WEALTH, NEWS

How Does Centura Wealth Create Energy?

At Centura Wealth Advisory, we believe in providing our clients with full transparency. In an effort to display this value, we’ve decided to give you a little insight into who our team is. Recently, Centura Wealth has dedicated time to improve its employees’ lives outside of work through encouraging journaling, meditation, appreciation for others, and so on. Hear from our very own Centura Wealth employees about how these practices create energy in the workplace!

Ask yourself daily, what can you be excited about today?

“I am more aware of how my emotions affect others—my wife and most importantly my child. Going into the day with a positive attitude sets the stage for the entire day.” —Zachary Wilson, Client Service Associate

“I have written a few notes to others for showing appreciation. In both instances, I was intentional in how I wanted to make them feel. I don’t think I would have executed on this if I weren’t journaling, yes, I would have had the passing thought of ‘…I should send something…’, but I’ve actually executed on some of these things which hopefully makes them feel good, and does make me feel good.” —Matt Griffith, Senior Wealth Advisor

“This has motivated me to reach out to friends I haven’t seen in a while, which is rewarding. I definitely have taken a step back and really thought about the best way to respond when I am getting stressed at work. Reacting to stress in a more calm and collective way has made me proud of myself and I have seen positive outcomes.” —Zoe Singh, Associate Advisor

“It makes me more aware of my actions and my inactions. When you start thinking about what will happen later in the day instead of not preparing for the what-ifs, you can appreciate when things go well. When they don’t, it won’t surprise you or ‘get to you” as much.’” —Lori Stingham, Life Insurance Case Manager

“I’ve been exhibiting high(er) energy in the office, at home and generally trying to bring positive energy to meetings, and my interaction with the Centura team. I’m more positive in my approach and feel like I’m positively impacting those around me. I’ve sent direct emails to Centura team members trying to highlight their good work.” —Jonathan Freeman, Chief Operating Officer, Chief Compliance Officer

“The practice of thinking about something that I can be excited about for the day is a practice that I consistently use and have been for a while. This practice always helps me get through a long day because I know there is something to look forward to and be excited about, which then boosts my energy.” —Amber Vaccaro

“This practice allowed me to prepare for the day in ways that I am not used to. I acknowledged some potential emotions and events that could later affect my day and practicing this helped me make the most of those moments. Rather than get discouraged when the stressful event came up, I had a plan of attack. “ —Bradley Polinsky

How has Practicing Gratitude or Journaling Impacted You?

“I have been doing this before bed each night. It has allowed me to reflect on what I am grateful for that day and helps to remind me as I go throughout my days.” —Zoe Singh, Associate Advisor

“I have been trying to journal as much as possible to get my thoughts out of my head and gratitude is one of the main things I try to practice while meditating.” —Paul Knezovich, Client Service Associate

“I began the practice of gratitude journaling this past month. I love how easy and quick this exercise is to accomplish; however, I wasn’t super consistent this past month. I am shooting for five days per week this upcoming month. This definitely brings me to things I hold dear. I expect this will turn into a habit very soon. Thank you for this gift!” —Derek Myron, Managing Director

“Starting my day off and thinking about the emotions I will bring that day has helped me be in a better mood throughout the entire day, thus increasing my energy levels. I notice that when I tell myself the emotions that I should bring into the day ahead, I feel more accountable to do so and it gives me an urge to follow through with it. The emotions that I typically tell myself to bring that day are typically ones such as happy, excited, powerful, and amusement. I have noticed that when I tell myself in the morning that I need to bring these emotions I feel obligated to do so and thus, end up experiencing those emotions.” —Amber Vaccaro

How has Starting One Practice Impacted your Life?

Practices might include eating healthier, exercise, meditation for better sleep, and so on.

“I have pushed myself to get greater rest. I am getting between six to seven hours of sleep which I have not accomplished for over 20 years. I am accomplishing this by: 1) Getting to bed earlier, 2) Taking three to four melatonin gummies per night, 3) Not taking on as much of a workload, and 4) Filling up my joy bucket.

“I find that I have greater mental stamina to stay in difficult conversations both professionally and with my family. I need to push to continue for a more balanced lifestyle.” —Derek Myron, Managing Director

“My mind is more clear and I am more productive from exercising and a better diet. I am able to overcome anything in my way.” —Andre Lawrence, Operations Manager

“I have been trying to eat better and exercise. It definitely helps my overall attitude and energy. When I have days that I eat like crap, I feel sluggish. When I have days that I eat well, I have more energy. When I work out, I feel better about myself both on the inside and the outside.”—Lori Stingham, Life Insurance Case Manager

“I have been trying to focus more on the things that I am eating and when I am eating those things. I have never found myself to be an unhealthy eater but I can also eat much more healthily than I do, especially at the right times, as I eat late at night often which is not good for you. I have been trying to focus on eating better and not after 8 p.m. and I have noticed the way my body feels and have also felt much better in the gym while focusing on this.” —Paul Knezovich, Client Service Associate

Centura Wealth Advisory works hard to create an energy-filled environment at the workplace and with clients! To learn more about Centura, read on.

October 8, 2021

Happy young couple having a great deal with financial advisor or real estate agent at the luxury office. Investment, lending or or successful resolution of legal issues for a young family

NEWS, TAX PLANNING

Wealth Manager vs. Financial Advisor: What’s the difference?

While the terms “wealth manager” and “financial advisor” may be grouped together or used interchangeably, the two professions actually have quite a few significant differences. Individuals looking for assistance in their financial planning should be familiar with these differences to find the best professional help for them and their financial situation.

What is the Difference Between a Wealth Manager and a Financial Advisor?

In simple terms, the difference between a financial advisor and a wealth manager lies in the clients and the forms of wealth they manage.

Financial advisors manage the financial situation of a client. Wealth managers are a type of financial advisor often associated with clients with a high net worth. Both professionals manage and assist with financial planning, but wealth managers typically specialize in assisting clients with large amounts of wealth.

Let’s explore these definitions to learn which would be ideal for your financial needs.

What is a Financial Advisor?

Financial advisors assess and manage the financial status of their clients as well as help them reach their financial goals. Financial advisors manage several aspects of a client’s financial situation, ranging from retirement planning, savings, investing and estate planning.

A financial advisor provides a broad group of services, encompassing most client needs. A financial advisor also has a broader range of clientele compared to a wealth manager. While wealth managers work almost exclusively with high-net-worth clients, financial advisors have a wider range of clients.

Most wealth managers have a minimum net worth amount required to begin an engagement, whereas financial advisors typically do not set a barrier to entry. Individual firms will have criteria by which they determine the suitability of the relationship based on complexity, assets, and expertise.

There are different types of financial advisors who serve a variety of client needs. A Certified Financial Planner (CFP) will work with clients to craft portfolios and future financial planning – this is often focused primarily on retirement planning. A certified public accountant (CPA) may be a part of a financial advisory team to aid in tax planning (consulting) and preparation (compliance), or clients may choose to have a separate CPA relationship.

Although there are different types of financial advisors, with specific expertise and areas of interest, here are some of the overarching services a financial advisor may provide:

Developing a financial plan
Savings allocations
Retirement planning
Tax planning
Inheritance and Trust creation
College funding
Business exit or succession planning

Wealth Manager

Wealth managers are a subgroup of financial advisors, so they provide more specific advice and services. When looking to Liberate Your Wealth®, understanding what each professional provides will save you time and money when choosing the right partnership.

A wealth manager typically works with high-net-worth clients and provides a personal, deeper level of financial management. A High Net Worth Individual (HNWI) falls into the range of a net worth of $1 million or more of liquid investable assets. Their clients’ asset threshold is one of the biggest differentiators between wealth managers and financial advisors. Wealth managers are typically employed by banks, private firms, and brokerages to work with high- net-worth clients.

Since wealth managers mostly work with high-net-worth individuals, they are more hands-on with a family’s or individual wealth. Some of the services that would fall under the wealth manager’s role include:

Investment management
Estate planning
Risk management
Capital gains planning
Philanthropic gifting
Legacy planningTax planning
Real Estate transaction planning

Do You Need a Financial Advisor or a Wealth Manager?

Consider Minimum Asset Requirements

When choosing between these two forms of financial professional help, individuals should consider minimum asset requirements to open an account. Wealth management firms may require a minimum of $250,000 while others require $1 million or even $10 million just to open an account.

While every wealth manager may not require large minimum asset requirements, most might. Individuals who can’t or do not want to comply with these requirements may fit better with a financial advisor.

Do You Want a Hands-on Approach?

Wealth managers typically have a more hands-on approach than financial advisors. If you prefer to simply check in a few times per year, consider a financial advisor instead of a wealth manager.

Any Questions?

Contact Centura Wealth Advisory today to find the financial professional who will help you achieve your financial goals.

As a wealthy individual, family, or institution, you likely carry the burdens of wealth. This includes its complexities, the responsibilities to do right, and the duty to find efficiencies, reduce risk and protect wealth. Learn more about us and liberate your wealth in 5 easy steps.

Or, read on to learn how to plan and invest in a high interest rate environment, here.

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

October 3, 2021

Pension calculation concept, old hands counting finances on a home calculator ,

INVESTING, NEWS

How to Sustain Wealth in an Ever-Changing Market

Sometimes the emotions of investing can cause quick reactions, following the trends—which isn’t always the most successful.

The Liberated Wealth® Process helps us uncover and solve big and small challenges. Sometimes these are common issues and opportunities for wealthy families, and sometimes they are unique.

Unique opportunities can include emotional investing that can happen with trends and quick reactions. But there are ways to implement room for risk and create a diverse portfolio that can sustain for generations.

Understand The Motivation

The psychology behind quick judgments reveals a lot about human nature.

Just like there are stages of grief, there are emotional stages of trading and wealth. Committing to a snap decision with a high-risk can bring a roller coaster of emotions: excitement, hope, anxiety, fear, panic, and relief (if all goes well). This is true for financial planning in general.

Investor behavior has been the target of many studies because investment (even when unwanted), is powered by emotions. Ask yourself some of the following questions about your potential investment:

Why am I investing?
Does this align with my long-term goals?
Can I pivot my wealth if this fails?
What do I want in life and does this decision support this?

Setting Goals Instead

Implementing long-term goals is always a good idea, especially when you might have a history of pulling the trigger on quick investments that failed. Dollar-cost averaging and diversification are two approaches that investors can implement to make consistent decisions that are not driven by emotion.

Life is About Balance!

At the end of the day, finding a balance of overconfidence and underconfidence might find you not in the sweet spot of the exhilaration of investing, but the confidence of having sustainable wealth.

And better yet, there is a tangible way to measure balance—a diversified portfolio!

Talk to one of our trusted wealth advisors today at Centura Wealth Advisory to learn more about liberating your wealth!

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

September 25, 2021

Front view of family with two small children on cycling trip, sitting on grass and resting.

ESTATE PLANNING, INSURANCE SOLUTIONS, NEWS

Generational Wealth: Transform Your Strategy to Make It Last

Did you know about 70% of wealthy families lose their wealth by the second generation, and 90% lose it by the third generation?

This is a troubling statistic—which is why, at Centura Wealth Advisory, our goal is to help families explore and implement purposeful strategies and solutions for successful wealth outcomes.

With vast experience working with high-net-worth individuals and families, our team is fully prepared to embrace your family’s complex financial life, circumstances, and strategies. We will help develop the best strategies for you.

Read on to understand why families are losing their wealth so quickly and to learn how to transform your strategy to make your generational wealth last.

Why is Generational Wealth Difficult to Preserve?

As the Chinese proverb says, “The first generation makes the money, the second spends it, and the third sees none of the wealth.”

Typically, in the process of earning wealth, the first generation learns how to:

Acquire assets
Optimize investments
And spend wisely

The second generation, being born into wealth, may forgo the opportunities to learn these skills. Therefore, a common mistake of the second generation is not acquiring assets and investments that:

Support lifestyle they’re accustomed to
Can be passed onto the next generation

Consequently, the third generation is left with little remains of the original wealth along with limited financial education and experience.

How Can You Make Your Generational Wealth Last Beyond the Next Generation?

Creating long-term goals, prioritizing financial education, having clear expectations, and communicating clearly are all essential practices in making your generational wealth last.

Identify Your Family’s Purpose

To implement successful strategies, we focus on generational wealth through purpose. This method includes:

Unpacking your family’s values and dreams
Helping you define, implement and track your family’s purpose
Making your family’s purpose the impetus of your wealth
Significantly lessening the burdens of wealth

Identifying and evaluating your family’s purpose can help lead you to the best strategies for your future. Read on to learn more about finding your North Star and how your purpose can lead to a fulfilling life and valuable goal-setting.

Create Long-Term Goals; Avoid Short-Term Strategies

Avoid responding to daily market conditions, buying the next hot investment product, chasing the latest wealth strategy, or only attempting to preserve your wealth.

At Centura, we instead suggest developing long-term goals that align with your family’s purpose and focus on the growth of existing assets. These goals might include:

Investing in the stock market
Investing in real estate
Building a business to pass down
Creating a strong retirement plan

We recommend working with one of our trusted advisors to ensure your unique financial situation is progressing towards these goals.

Invest in Financial Education

Financial education is crucial for family members to understand wealth sustainability. Without the proper knowledge and skills, the next generation is likely to deplete the wealth through poor spending habits and a lack of guided investments.

By providing the next generation with financial education, you provide the skills, knowledge, and habits they need to preserve and build their wealth.

This education can range from enrolling family members in relevant courses, teaching them about assets and investments at the office, or even just including them in day-to-day conversations about smart spending.

Provide Clear Expectations and Goals for Your Family

Consider possible goals you may have for your family to ensure their financial stability. Some examples may include:

Should you require members of your family to commit to their own success?
Should you ask the next generation to acquire assets and investments to contribute to the wealth of your family?
Would you like members of your family to build a business to pass down to the next generation?
Should you insist every member of your family earns a college degree?

These goals can encourage your kin to build their own financial success. Whatever these goals may be, we suggest introducing your expectations early on and in a clear manner.

Prioritize Transparency and Communication

Tell stories of how your family’s wealth was built; include the next generation in current financial conversations. This communication will allow your family to see the difficulties you have overcome to build your wealth as well as the current challenges you still face.

Additionally, your family can learn from your past and current decisions when it becomes their turn to make similar choices.

Healthy family communication is integral to wealth longevity. Consider hiring a family mediator, coach, or therapist to help your family navigate more difficult discussions about money.

Take Advantage of Life Insurance

Life insurance allows you to protect your family in the event of an untimely death. Without your income and resources, the next generation may not be able to maintain generational wealth. By taking advantage of life insurance, you can secure your family’s financial future.

Invest In and Save for Your Children’s Education

Education can give your children the tools and opportunities they need to have successful, independent careers to navigate their own finances.

According to U.S. News and World Report, the average student loan debt has hit a new record high for recent college graduates—exceeding $30,000. If your child graduates college without this debt, they are more likely to begin accumulating their own wealth, become a homeowner, and pass wealth on to the next generation.

Ready to Take These Steps to Ensure Generational Wealth?

With diligent stewardship, care, and attention, a family’s wealth can last for generations. This is what we provide at Centura Wealth Advisory.

At Centura, our main focus is to liberate your wealth, going above and beyond traditional money management. We aspire to bring only the best value-added solutions to our clients.

Read on to learn more about us and why we are not your traditional wealth advisors.

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

September 16, 2021

INVESTING, NEWS, TAX PLANNING

Should You Consider Adding Structured Notes to Your Portfolio?

Professionals have compared structured notes to the innovative mindset behind mutual funds—with the main draw being zero interest rates. In the past, structured notes were a high-risk, high-return investment that only very wealthy investors could get involved in. Recently, however, the transition to using more technology for investing has opened the door for more individuals and families to invest using structured notes.

Centura Wealth Advisory works with clients to build a diversified portfolio when financial planning, and considering structured notes is a step toward having a more diverse portfolio.

Listen to the recent Live Life Liberated podcast, “Structured Notes Simplified with Robert Sowinski,” for a professional perspective.

What Are Structured Notes?

There are different types of structured notes that can be helpful to understand before investing.

There are a few categories to know for understanding structural notes:

Maturity
Underlying Asset
Protection Amount
Return/Payoff

Structured notes can be compared to a “hybrid security.” They combine the features of various financial products into one. Structured notes combine bonds and additional investments to offer the features of both debt assets and investment assets.

Structured notes aren’t direct investments, but derivatives. They track the value of another product. The amount on a structured note will depend on the issuer repaying the premium and underlying bond.

How do they work?

The basic ways structured notes can be ‘structured’ are the following:

Provide downside market protection
Provide upside (or enhanced) participation
Provide regular payments/income in the form of coupons if certain market conditions are met
Provide a payout/return at maturity if certain market conditions are met

The U.S. Securities and Exchange Commission (SEC) provides more detailed information on structured notes: “Structured notes have a fixed majority and include two components—a bond component and an embedded derivative.”

Financial institutions, as a result, are generally responsible for designing and issuing structured notes, so then the Broker/Dealer can sell them to individual investors.

Potential Risks

It’s important to understand that structured investments will not be a perfect match for all investors based on their risk profile and current portfolio. They are risky as your investments can sit idly without growth

The SEC lists the risks that come with investing in structured notes:

Market Risk
Insurance Price and Note Value
Liquidity
Payoff Structure (which is affected by participation rates, capped maximum returns, and knock-in feature)
Credit Risk
Call Risk
Tax Considerations

Talk to us!

If you’re interested in structured notes and diversifying your portfolio, speak to one of our trusted financial advisors today.

September 5, 2021