At Centura Wealth Advisory, we believe in creating exponential value for our clients. But what does that mean, exactly? Let’s take a look.
What Do We Mean By Exponential Value?
Exponential value, as we define it, is the concept of taking two things and creating synergies that result in something greater than the sum of its parts. In other words, 1+1=4. We believe that tax planning is one of the best ways to create exponential value for our clients.
Let's Take a Hypothetical Example
Imagine a business owner who is selling their business and has a significant transaction coming up. If we can save them half of the tax bill they would otherwise pay on that transaction, the resulting wealth could be life-changing. Depending on the size of the transaction, this could amount to tens of millions of dollars. This newfound wealth can have significant impacts going down the road, whether that be for personal consumption, wealth transfer, legacy planning, charitable intent, philanthropy, or other purposes.
The Compounding Effect of Wealth Over Time
The compounding effect of wealth over time is what creates the true exponential value. By having more assets on your balance sheet, you have the ability to invest more money for the long-term, which coupled with compounding, creates newfound wealth. Of course, this must be done by investing in quality assets paired with a prudent approach to portfolio management, over time. For example, we have had business owners who have sold their businesses for tens of millions of dollars in their 30s. By objectively investing the wealth for a long period of time, in quality assets with strong risk adjusted returns, these business owners can generate life-changing results for their families, communities, and generations to come.
To illustrate the point, we always do a baseline scenario, which involves paying taxes on the business sale and investing the money. We compare this to a scenario where the client employs tax planning strategies on the front end, saves more money, and then invests the money alongside the proceeds of the business sale. The results are often night and day.
How Exponential Growth Creates Value
Let’s Talk Compound Interest
Albert Einstein once famously said, "Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it." Einstein was fascinated with the concept of compounding interest and the effects it can have over time. At Centura Wealth Advisory, we couldn't agree more.
The idea behind compounding interest is simple but powerful. By reinvesting your earnings, you can earn interest not only on your original investment but also on the interest earned. Over time, this can lead to substantial growth in your wealth. In fact, the longer you allow your money to compound, the more significant the impact can be.
We believe that anyone who is fascinated by the concept of exponential value should run the math on the time value of money and see how a bigger pot of money invested over time at high returns can really add substantial wealth. This is where tax planning comes into play.
Customized Tax Planning Strategies
At Centura Wealth Advisory, we provide customized tax planning services to our clients that are designed to minimize their tax liabilities while maximizing their financial outcomes. We work closely with our clients' legal and accounting teams to ensure that all risks are addressed and key aspects of the tax planning process are fully integrated into their overall financial plan.
Our tax planning strategies involve a range of options all of which mitigate, eliminate and/or defer income tax. In addition, these income tax reduction strategies aim at maximizing exemptions, exclusions, deductions, and/or credits. Furthermore, we utilize tax efficient investments, trusts, and a range of asset protection strategies to help our clients safeguard their wealth.
We are committed to providing our clients with the highest level of service and support. We believe that creating exponential value for our clients is not only good for their financial outcomes but is also good for our business. We pride ourselves on building long-term relationships with our clients that are built on trust, transparency, and mutual respect.
Our Holistic Approach
At Centura Wealth Advisory, we take a holistic approach to wealth management. We understand that creating exponential value for our clients requires more than just tax planning. We work closely with our clients to understand their unique financial goals and develop customized strategies that align with their objectives. By doing so, we can help our clients create exponential value that goes beyond just financial returns.
What Does a Holistic Financial Plan Include?
A holistic approach looks at an individual’s lifestyle, goals, values, and priorities to create a financial plan that works for them. Financial planners can coordinate these needs and the lifestyle of their clients in order to create a strategy.
A holistic financial plan may include:
- Investments (portfolio, brokerage accounts, ETFs, mutual funds, etc.)
- Retirement planning (finances and lifestyle)
- Estate planning
- College planning
- Budgeting and saving
- Retirement accounts (401k, 403b, IRA)
- Insurance needs (home, auto, life, long-term care, liability, etc.)
- Tax planning
- Tax preparation
At Centura Wealth Advisory, we believe that creating exponential value for our clients is not just about investing in high-opportunity assets. It's about taking a holistic approach to wealth management that includes tax planning, investment management, and estate planning. By doing so, we can help our clients achieve their long-term financial goals and create exponential value that can have a significant impact on their lives and the lives of their heirs.
Connect With Centura
At Centura Wealth Advisory, we go beyond a traditional multi-family office wealth management firm to offer advanced tax and estate planning solutions which traditional wealth managers often lack in expertise, knowledge, or resources to offer their clients.
We invest heavily into technology and systems to provide our clients with fully transparent reporting and tools to make informed decisions around their wealth plan.
Read on to learn more about our 5-Step Liberated Wealth Process and how Centura can help you liberate 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.