Wealth management is a comprehensive, customized approach to overseeing and enhancing your financial resources so you can grow and protect your assets, manage challenges, and confidently pursue your chosen lifestyle and goals. It may involve strategic planning, investment management, and partnering with an advisor to provide services tailored to your circumstances, needs, and goals.

At Monarch, we aim to alleviate the burden of financial decision-making so you can focus on what matters most to you. Our personalized guidance and strategies help you make informed decisions and navigate financial complexities.

Wealth management services comprise a wide range of offerings designed to address various areas of your financial life. At Monarch, we provide the following wealth management services:

• Financial Planning
• Cash Flow Planning and Portfolio Income Projections
• Retirement Plan Review
• Budget Analysis and Spending Review
• Goals Assessment and Prioritization
• Business Valuation and Succession Planning
• Real Estate Advice and Support
• Executive Compensation Review
• Social Security Maximization
• Medicare Assistance
• Retirement Home and Community Living Analysis
• College Savings Plan Analysis
• Debt Analysis and Guidance
• Inheritance Planning
• Annuity Analysis and Review

While all wealth managers offer financial services, their expertise, fee structure, and approach may vary. For example, wealth advisors may hold various qualifications, such as a CERTIFIED FINANCIAL PLANNER™ designation, indicating their expertise or specialization across various financial disciplines.

Fee structures may also vary. For example, clients pay fee-only advisors based on a percentage of assets under management, a flat fee, or other criteria, to promote transparency without hidden costs. On the other hand, a fee-based advisor may charge multiple fees or receive additional commissions or bonuses that may influence their recommendations. For this reason, a fee-only model typically reduces conflicts of interest because advisors are not tempted by incentives, ensuring they solely focus on a client’s interests.

Additionally, wealth advisors may vary in offerings, communication frequency, access, and values. These differences can help you choose a wealth manager who aligns with your needs, preferences, and goals.

Within a fee-only model, advisors are only compensated by fees paid by clients. These fees can be based on a percentage of assets under management, flat fee, or other criteria. Fee-only advisors do not receive commissions or incentives based on their recommendations, eliminating conflicts of interest and providing clients with transparent, unbiased, and objective advice that’s focused on helping them succeed.

Entrusting your finances to a partner is a significant decision; here’s what you may consider:

• Credentials and Experience: Look for expertise that aligns with your specific needs, such as business ownership or divorce planning.
• Fiduciary Standard: Working with a fiduciary may provide more peace of mind because they are legally obligated to always act in their client’s best interests.
• Fee Structure: Compare fee structures to ensure they are transparent, align with your preferences and goals, and minimize conflicts of interest.
• Communication and Relationship Style: Outline your expectations for aspects such as meeting frequency and team access. An advisor should take the time to learn about your unique circumstances, address your concerns, and communicate based on your preferences.
• Custodian Partner: Verify the reputation, security measures, and reliability of the custodian or financial institution responsible for holding and safeguarding your assets. For instance, Monarch partners with Charles Schwab because it is the largest U.S. custodian, provides user-friendly reporting and account access, and accounts are insured and backed by the Schwab Security Guarantee.

Here are questions to ask when considering if an advisor is a right fit for your needs and goals:

• Are you a fiduciary?
• What is your fee structure? How are you compensated?
• What is your experience? Do you have additional credentials or areas of expertise?
• What services do you provide? How do you tailor your services to my situation?
• How do you communicate with clients? How often will we meet?
• How do you address conflicts of interest?

Partnering with an advisor involves establishing a long-term relationship built on trust, transparency, and mutual understanding. These questions help you evaluate an advisor’s qualifications, assess if they will prioritize your best interests, and ensure you’re making an informed decision about who will steward your financial future.

A fiduciary is ethically and legally bound to always prioritize their client’s best interests over their own. This responsibility typically involves a transparent fee model, providing objective advice, and reducing conflicts of interest. Monarch, a registered investment advisor regulated by the U.S. Securities and Exchange Commission, falls under this category.

While advisors may share these traits, you should always verify if an advisor is held to a fiduciary standard.

Here are additional advantages of partnering with a fiduciary:

• Transparency: Fiduciaries are required to disclose potential conflicts of interest and maintain a clear fee structure so clients can make informed decisions.
• Objective, Trusted Advice: Fiduciary recommendations should not be influenced by commissions, providing clients with more confidence that advice is solely focused on their best interests.
• Reduced Conflicts of Interest: Fiduciaries must always act in their clients’ best interests. They also do not receive incentives tied to specific recommendations, potentially eliminating conflicts of interest.

Investment management fees are not tax deductible at the federal level. They may be in certain states, depending on the state and current laws. An investment advisor can, however, help you identify tax-saving opportunities and implement strategies such as tax-loss harvesting, reducing capital gains, incorporating charitable giving, and maximizing retirement account contributions to lower your taxable income and liability.

Minimum requirements for advisory services vary across firms. Monarch generally provides services to affluent individuals/families, pension/profit-sharing plans, trusts/estates/charitable organizations, brokers/dealers, and businesses with investable assets of at least $750,000.

Entrusting your finances to a partner is a significant decision; here’s what you may consider:

• Credentials and Experience: Look for expertise that aligns with your specific needs, such as professional credentials and positive testimonials from clients.
• Investment Philosophy: Understand the firm’s investment approach and how it aligns with your risk tolerance and goals. For example, does it follow passive or active investment management or offer discretionary or non-discretionary services? Additionally, do you want to be involved in every investment decision or authorize decisions without your consent?
• Diverse Investment Options: Ensure it has access to a wide range of investment options tailored to your needs, such as stocks, bonds, and mutual funds, and understand how these options can contribute to a tax-efficient, well-rounded portfolio.
• Fiduciary Standard: Working with a fiduciary may provide more peace of mind because fiduciaries are legally obligated to always act in their client’s best interest.
• Fee Structure: Compare fee structures to ensure they are transparent, align with your preferences and goals, and minimize conflicts of interest.
• Communication and Relationship Style: Outline your expectations for aspects such as meeting frequency, client authorization, and team access. An advisor should take the time to learn about your unique circumstances, address your concerns, and communicate based on your preferences.
• Custodian Partner: Verify the reputation, security measures, and reliability of the custodian or financial institution responsible for holding and safeguarding your assets. For instance, Monarch uses Charles Schwab because it is the largest U.S. custodian, provides user-friendly reporting and account access, and accounts are insured and backed by the Schwab Security Guarantee.

Your risk tolerance plays a critical role in determining your investment returns and may vary based on your short- and long-term goals.

• Every investor must consider their goals and the tradeoffs associated with their risk profile. Investments that may provide higher returns often carry greater risk or potential losses, while others may produce lower returns with less risk.
• Individual risk tolerance also affects asset allocation and how much you’re willing to allocate to high- or low-risk investments. Your risk and asset allocation may also change based on your goals. For example, some investors may leverage time to pursue riskier investments while young or still in wealth accumulation. On the other hand, investors approaching retirement may employ a lower-risk strategy to safeguard their assets once their income changes. An advisor can help you navigate these decisions and scenarios when choosing an approach.
• When determining your risk, you may consider how you feel when you’ve experienced investment losses or market volatility, which, among other factors, may influence your decision-making. For example, a high-risk investor may be comfortable with short-term declines, while a low-risk investor may have a more emotional response, leading to missed opportunities and further losses over time.

Diversification is an effective way to manage risk. Compared to a concentrated investment portfolio, diversification offers investors opportunities to reduce risk, explore new sectors, and improve long-term performance. Spreading out assets across diverse investments can help offset losses in one area while ensuring you have access to vehicles with liquidity if needed and are less vulnerable to industry-, market-, or company-specific issues.

Your objectives and risk tolerance guide your investment strategy, which varies among clients. We may deploy strategic and tactical asset allocation to help achieve your goals, striving to achieve an optimal blend of investments tailored to your goals. This process entails setting clear investment objectives, determining appropriate weightings for various asset classes, choosing specific investments, and adjusting allocations as circumstances change. While asset allocation allows portfolios to participate in various markets while potentially minimizing overall volatility, it does not ensure a profit or protect against loss.

Every firm establishes its range of investments, encompassing stocks, bonds, alternative investments, real estate, cryptocurrencies, proprietary products, and more. We typically recommend one or a combination of the following assets or investment strategies: mutual funds, exchange-traded funds (ETFs), institutional investments, individual securities (equity and debt), and cash instruments. We may use additional investment strategies, such as private investment funds, hedge funds, partnership interests, options contracts, futures contracts, real estate investment trusts, and annuities. Monarch does not offer any proprietary investment products.

You can implement various strategies to reduce your estate tax liability, which may vary by client. The team at Monarch can help review your financial situation, risk of exposure to estate taxes, and other priorities to develop an estate plan that suits you and your family’s needs. Solutions may include charitable giving, gifting to family, establishing trusts, life insurance planning, and other strategies.

Considering a trust depends on your unique financial situation, preferences, and goals, as there are different types with distinct features and benefits. Here are some examples of why you may consider a trust:

1. More flexibility to make changes while you’re still living (for some trusts)
2. Greater control over how you distribute your assets
3. Privacy, as trusts typically bypass the probate process
4. Tax efficiency for an estate with complex or significant assets
5. Business continuity planning
6. Asset protection for heirs who are minors or have special needs

A wealth advisor and legal professional can help you explore the advantages and disadvantages of trusts to see if they’re the right fit for you.

Integrating a business continuity plan into your estate plan can help protect the legacy of the business you’ve built. Monarch, along with your legal team, can help you navigate various business continuity planning strategies and scenarios, which may include:

1. Succession planning outlining your wishes
2. Transferring ownership
3. Tax planning
4. Drafting necessary legal documents

There are various ways to incorporate charitable giving into your estate plan, which may vary based on your circumstances and goals, such as:

1. Establishing a foundation or endowment to provide ongoing support to causes or organizations important to you
2. Charitable trusts, like a charitable remainder trust, which may also generate income benefiting you or your family
3. Donor-advised funds, which may provide immediate tax benefits and allow you to give over time
4. Donating appreciated assets, which may provide a tax deduction and help minimize taxes from capital gains

From prioritizing tax reduction to philanthropy, we can help guide you through diverse charitable giving strategies.

Navigating international components in your estate plan requires staying informed about different tax, legal, and regulatory implications. For example, you should review foreign laws regarding inheritance and taxes and evaluate if there is a potential for double taxation between countries. We encourage you to consult professionals to guide you through these complexities, including drafting required documentation and communicating your intentions.

At the minimum, we recommend reviewing your estate plan annually, along with a full review of your financial plan, ensuring it’s current with your goals and financial situation. You may need to review and update your estate plan more frequently if you experience any of the following:

1. Change in marital status, either divorce or marriage
2. Family addition, such as a birth, adoption, grandchildren, or dependents
3. Death of a beneficiary or key figure/decision-maker in your plan
4. Significant changes in your income or expenses
5. Moving to a new state or country
6. Changes to tax laws that could affect your estate
7. Health issues affecting you, a beneficiary, or a dependent

Following a divorce, you should update your estate plan to reflect your new marital status and preferences. For example, if desired, you should update your beneficiaries, wills and trusts, medical directives, property titles, guardianship designations, and powers of attorney. A professional can help ensure you cover all aspects to reflect your post-divorce preferences.

There are several strategies to employ to minimize the tax liability of your heirs, ensuring they receive more of their inheritance, such as:

1. Gifting and using gift exemptions while you’re living, which can help you transfer an inheritance early tax-free while minimizing your estate’s value
2. A payout from a life insurance policy, which can help your heirs cover potential estate taxes and other expenses after you pass
3. Charitable giving, which helps reduce your estate’s value, minimizing estate taxation

These are just some strategies you can use; we encourage you to consult with a wealth advisor and tax professional to ensure you’re using tax-efficient strategies and deductions to your benefit.

Optimizing your investment portfolio for tax efficiency depends on your goals, risk tolerance, and financial situation. The specific strategies may vary based on your needs. Whether you’re an independent woman investor or a business owner or whatever your circumstances, an advisor can help you explore suitable situations, such as investing in tax-deferred accounts, balancing your portfolio to manage capital gains, and using methods such as tax-loss harvesting. At Monarch, we tailor these strategies and others to fit your entire financial planning picture and long-term objectives.

You can reduce your tax burden in several ways while fulfilling your philanthropic goals. Strategies may include donating appreciated assets to reduce capital gains, using a donor-advised fund to spread out giving, or making tax-advantaged donations through qualified distributions from a retirement account. An advisor can guide you in selecting suitable options for your situation.

You may be subject to the alternative minimum tax (AMT) if you exceed a certain income threshold. The AMT limits certain deductions and credits, which could result in a higher tax bill than under the standard rules. We advise working with a professional to navigate the AMT rules, time deductions, optimize credits, and identify opportunities to maximize your tax strategy or minimize its impacts.

Strategies to minimize capital gains taxes are often unique to each investor. For example, a high earner, retiree, and investor with significant gains may use different approaches. Some common strategies that may suit your situation include leveraging tax-loss harvesting to offset gains, maximizing contributions to tax-advantaged accounts, or timing sales to manage large taxable events. The Monarch team can help tailor these strategies to align with your situation and goals.

Strategically placing your investments may reduce your tax liability. An advisor can help you explore investment vehicles with favorable treatment for specific assets. For example, you may consider putting a high-yield asset in a tax-advantaged account or using a tax-deferred account for assets with a higher income tax.

There are several tax considerations involved when receiving an inheritance. For example, you may have to pay property taxes if you’ve been gifted real estate or income taxes if you sell appreciated assets you’ve inherited. Inheriting a retirement account or business could introduce additional implications or opportunities. A professional can help you navigate these complexities and explore the the most effective path forward.

Passing on an inheritance can have various tax implications. For example, if your estate is substantial, it could be subject to an estate tax. Trusts have different tax rules to consider and passing on an inheritance while you’re still living could trigger a gift tax if you exceed the standard limits. An advisor can help you navigate these issues as part of your estate plan.   

At Monarch, we review each client’s unique goals and financial picture to manage risk and identify opportunities to develop highly personalized plans, considering taxes. For single women, there may be additional strategies to consider but several general tactics can help optimize taxes, such as leveraging tax-advantaged accounts, using healthcare savings accounts, and maximizing eligible deductions and credits. Learn more about our approach and how we begin by thoroughly understanding your situation to help you reach your goals. 

Protecting your assets from potential creditors will depend on your financial situation, asset types, and legal obligations. You may consider protective options (before a lawsuit occurs) such as trusts or business structures, strategic use of retirement accounts or annuities, and insurance policies to help shield your assets. Consult with a financial advisor or attorney to discuss your options.

Maintaining a clear separation of personal and business accounts can help protect your assets while avoiding potential legal implications. You may also explore vehicles such as trusts, insurance, and business structures, which may provide an additional buffer. The Monarch team can work with your attorney to help you tailor a plan based on your business’s needs and risks.

Estate taxes are typically a challenge for larger estates. To help minimize your estate tax exposure, you may consider strategies such as gifting to individuals through certain avenues, such as charitable giving and funding a 529 or custodial account. Consider using the annual gift tax exclusion or your lifetime exemption to transfer assets without incurring taxes. Irrevocable life insurance trusts (ILITs) can also be an effective estate planning tool to help offset estate taxes. A tax expert and estate attorney can offer guidance in developing a tax-efficient plan.

Several strategies exist to safeguard digital assets and intellectual property, such as protecting passwords and installing software to guard against cyberattacks. We also recommend consulting with an attorney to develop a plan to integrate digital assets and intellectual property into your estate plan. This may include maintaining an inventory of assets and login credentials and designating a trusted person to access your information, if necessary. They can guide you through granting access to an authorized user or transferring digital assets to your heirs in the event of your death or incapacity.

Wealth management clients have different needs and challenges, whether they’re business owners or have a large estate. Depending on your situation, several strategies may be beneficial to protect your real estate investments. Consider securing insurance coverage, placing properties in a trust, or establishing a specific business structure to add protections. To reduce your tax liability, consult a tax expert to identify risks and tax-saving opportunities such as credits, deductions, and depreciation.

A prenuptial agreement and maintaining separate accounts and property ownership are most effective in protecting your assets if a divorce occurs. If you do not have these protections before a divorce, we recommend consulting an attorney to understand how your assets will be divided based on your state’s laws and how updating or creating a trust may help you protect some of your funds. 

After a divorce, it’s critical to update your wealth management plan and important estate planning documents, such as beneficiary information, wills, and powers of attorney, to reflect your post-divorce preferences and protect your assets in the future. An advisor can also help to ensure your retirement and financial plans stay on track to help overcome the risk of running out of money following a divorce.

A prenuptial or postnuptial agreement provides clear terms about the division or distribution of assets in the event of a divorce, reducing the risk of disputes. It may also outline terms for spousal support, businesses, and real estate investments, if necessary. A postnuptial agreement can also provide terms for assets acquired during the marriage, which may otherwise be subject to community property laws. Consult an attorney to ensure your agreements align with your goals.

You can take many proactive actions to help ensure a surviving spouse’s long-term financial security. You may begin by securing an insurance policy and crafting an estate plan clearly outlining your wishes, preferences, and financial obligations following death. A wealth advisor can help address critical financial aspects following a death, such as insurance claims, determining income needs, maintaining bills, and more. An advisor can also help a surviving spouse develop a new wealth management plan, including an updated budget, investment plan, and tax strategy to manage new assets.

Partnering with a wealth advisor is beneficial when managing your finances and inheritances to help ensure they last throughout your lifetime. An advisor can walk you through survivor benefits, various spending scenarios, and projections to develop an income, tax, and investment strategy to help ensure a sustainable cash flow that supports your needs and reduces the risk of outliving your finances. Regular reviews and adjustments will also help keep you on track as circumstances evolve.

There are several tax-efficient ways to make charitable donations, including using a donor-advised fund, making qualified charitable distributions from an IRA, bunching contributions for tax purposes, and donating appreciated securities. Consult a wealth advisor to explore the most efficient approach based on your needs and goals. 

Donor-advised funds (DAFs) work as a personal charitable account in which a donor can contribute tax-deductible funds and appreciated assets to distribute to qualified charities over time. The benefits include an immediate tax deduction, spreading donations over future years, bunching contributions for tax purposes, and giving families a platform for philanthropy. A wealth advisor can help you decide whether a DAF is right for you reviewing your goals and tax situation.

Setting up a charitable trust or private foundation can provide many tax advantages, such as deductions on contributions and potentially reducing estate, income, and capital gains taxes. It also provides a long-term giving vehicle to give to the causes most important to your family for generations. We recommend consulting your wealth advisor, accountant, and attorney to navigate the legal requirements of establishing and maintaining a charitable trust or private foundation.

Proactively managing the challenges of generational wealth, including your vision for long-term philanthropy, is critical. We recommend having open conversations about your giving goals and values early with family members to foster shared commitment and engagement. You can also consider establishing a DAF, charitable trust, or private foundation as a platform to support your family’s long-term charitable giving strategy. The Monarch team can help guide these conversations, offer referrals for legal assistance, and help you develop a plan aligned with your family’s values.

Donating appreciated securities directly to qualified charities can provide a tax deduction and potentially reduce estate, income, and capital gains taxes. 

DAFs, charitable trusts, or private foundations give donors more control over how their donations are used. In other cases, you may be able to request how your donations are used, such as funding a particular project or program. Some charities may outline terms, choosing to use the donation at their discretion. We recommend communicating your intentions when donating but organizations may have the final say.

There are many strategies for creating a lasting philanthropic legacy. Establishing a charitable trust or private foundation allows you to set specific giving goals and involve future generations, while a DAF allows you to pass on a portion of your estate to a charitable organization. You can also consider an endowment, for example, to your alma mater or other organization, allowing your family to give long term or in perpetuity.

We recommend partnering with a wealth advisor to assess your new financial landscape and determine how much you can budget to give without compromising your financial stability following a divorce. A professional can help you prioritize your giving and explore options, such as a DAF, to fulfill your philanthropic goals while helping to reduce overall tax liability. If you’re facing a divorce later in life, here are additional financial questions to consider.

Depending on your inherited assets, there are several ways to use an inheritance to reduce your tax liability. A wealth advisor can help you explore strategies such as setting up a DAF for immediate tax benefits, donating appreciated securities to avoid capital gains taxes, using qualified charitable distributions from inherited IRAs, and establishing certain trusts to maximize your giving while managing taxes.