Meet John Carter, a seasoned business owner contemplating the sale of his successful tech startup. For over two decades, John has nurtured his business from a fledgling company into a major player in the tech industry. Recently, he’s been contemplating selling his company. While the thought of cashing in on his years of hard work is appealing, it’s mingled with a cocktail of uncertainty, nostalgia, and fear of the unknown. Selling his business isn’t just a financial decision—it’s a personal one, tied deeply to his identity and future lifestyle.
THE EMOTIONAL JOURNEY
The thought of letting go of his life’s work can be unsettling. John wonders if he is ready to part with his business and whether the sale will support his desired lifestyle. The mix of emotions is overwhelming, making it clear that selling his business is a life-altering decision that extends beyond financial gain.
KEY QUESTIONS TO ASSESS READINESS TO SELL YOUR BUSINESS
1. Why am I selling my business? Understanding the underlying reasons for selling-whether for retirement, pursuing other interests, or financial necessity-helps clarify goals and expectations.
2. Is now the right time to sell? Assessing market conditions, industry trends, and the current state of the business can determine whether it’s a favorable time to sell.
3. What is my business truly worth? A professional valuation is essential to set a realistic price and understand the factors that contribute to the business’s value.
4. What are the tax implications of selling my business? Consulting with tax professionals can help minimize tax liabilities and maximize net proceeds from the sale.
5. How will the sale affect my personal financial situation? Understanding how the proceeds from the sale will impact personal finances, retirement plans, and lifestyle is critical.
6. Who should be on my advisory team? Having the right team, including a business broker, investment banker, accountant, financial advisor, and attorney, can guide the process and ensure that all aspects are handled professionally.
7. What information will buyers want to see? Preparing thorough and transparent documentation about the business’s financial health, operations, and market position is crucial for due diligence.
8. How will I find the right buyer? Identifying whether the buyer should be an individual, a competitor, a strategic buyer, or a financial buyer influences the marketing approach and the negotiation strategy.
9. What are my plans after selling the business? Considering life post-sale, including potential new ventures, hobbies, or retirement activities, is important for a smooth transition.
10. How will the sale impact my employees and customers? Planning for the transition to maintain continuity for employees and service for customers can affect the legacy of the business and its continued success under new ownership.
HOW GATEWOOD WEALTH SOLUTIONS CAN HELP
At Gatewood Wealth Solutions, we understand the complexities involved in selling a business. Our team of Certified Exit Planners, Attorneys, Certified Financial Planner Professionals, and Chartered Financial Analysists are equipped to guide business owners like John through every step of the selling process.
SERVICES PROVIDED BY GWS
Our team of professionals provide:
· Pre-Sale Financial Planning: Aligning business and personal finances with post-sale goals.
· Business Valuation: Professional analysis to determine and justify your business’s market value.
· Tax Planning: Strategies to minimize taxes before, during, and after the sale.
· Letter of Intent Analysis: Professional review and analysis of LOI proposed deal structures.
· Investment Education: Demystifying the stock market and creating tailored investment strategies.
· Investment Management: Designing investment portfolios focused on preservation of purchasing power and income distribution.
· Emotional and Lifestyle Transitioning: Support in transitioning to life after business, maintaining an identity, and striving to achieve new goals.
OVERCOMING RELUCTANCE TO INVEST CASH POST-SALE
John Carter, like many business owners, harbors a deep-seated reluctance to invest in the stock market—a realm he perceives as volatile and beyond his control. His comfort zone has always been his business, where he could influence outcomes and directly see the impact of his decisions. This transition from a controlled, familiar environment to the unpredictable nature of the stock market is daunting.
EMPOWERING INVESTING THROUGH EDUCATION
At Gatewood Wealth Solutions, we understand the trepidation business owners feel about entering the stock market. We tackle this by educating John about investment fundamentals, crafting personalized strategies, and managing investments to generate stable income, ensuring his family’s lifestyle is maintained. Our approach is rooted in education and transparency. We provide:
· Educational Workshops and Resources: We demystify the stock market by explaining its mechanisms, the role of diversification, and the importance of asset allocation. This knowledge empowers our clients to make informed decisions.
· Tailored Investment Strategies: Recognizing that each client’s risk tolerance and financial goals are unique, we craft personalized investment strategies. These strategies are designed not just to preserve wealth but to generate income that supports your family’s lifestyle.
MANAGING INVESTMENTS FOR SUSTAINED INCOME
Post-sale, the income that once flowed from the business needs to be replaced to maintain the lifestyle John and his family are accustomed to. Our team Chartered Financial Analysts (CFA®’s) and Investment Committee at Gatewood Wealth Solutions manage investments utilizing our cash management and distribution strategy with a keen focus on generating reliable income distributions while remaining confidently invested in the market.
COMPREHENSIVE FINANCIAL PLANNING WITH FORECASTS & BENCHMARKS
To further instill confidence in the investment process, we develop a comprehensive financial plan for each client. This plan includes:
· Financial Forecasts: We project future growth and income based on current assets and investment strategies, allowing clients to see potential financial scenarios.
· Benchmarks: Regular benchmarks are set to monitor progress and make necessary adjustments. This helps our clients remain on track to meet their financial goals and can adapt to changes in the market or personal circumstances.
Our detailed financial plan with forecasts and benchmarks provides John with a clear vision of his family’s financial future, including potential growth and income from investments.
SCORING SYSTEM & CALL TO ACTION
To help you gauge your preparedness for selling your business, Gatewood Wealth Solutions offers a comprehensive readiness assessment. This assessment scores your readiness across several critical areas, helping you identify gaps and plan effectively.
WHY CHOOSE US?
Gatewood Wealth Solutions isn’t just a financial advisor; we’re a team of experienced credentialed professionals who care about you and your family. We want to be your partner in this pivotal transition. With our holistic approach, we work so no stone is left unturned in preparing you for a successful sale and a fulfilling transition into your next life’s chapter.
ARE YOU READY TO TAKE THE NEXT STEP?
Contact Gatewood Wealth Solutions today. Let us help you navigate the complexities of selling your business, ensuring you work towards accomplishing your financial goals and transition smoothly into the next phase of your life.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Business value estimates are not an official appraisal of a businessʼs value and may not be provided to a third party or used for lending or third party sales. A Business Value Estimate is intended to be used as part of the business planning or personal financial planning process. Business Value Estimates are provided by a third party such that LPL makes no representations regarding the accuracy of the illustrations. LPL does not independently verify the accuracy of the information you provide or of the illustrations presented (149-LPL).
Going to the (Stock) Market: Investing Tips for Mothers
Mothers are busy people, which means saving and investing for the future can often take the back burner to more urgent priorities. Not only that, but the stock market can seem risky. During the Great Recession, the value of the average retirement account dropped greatly, by about 25%.[1] Unfortunately, if you did not start investing early in life, you could have more ground to make up for later.² Below, we’ll discuss three key tips that can help mothers clarify and work toward their financial goals.
Make Your Goals As Specific As Possible
Creating goals can be tough—especially when retirement is decades in the future. But while you may not yet be able to calculate the precise amount of money you’ll need in 2050, setting specific and measurable goals can help guide your financial path. For example, if you’d prefer to retire early, you may want to pursue aggressive investments and save a significant amount of your pay.³
By writing down why you want to invest, what your financial goals are (for the short, medium, and long term), and what assets and resources you have available to work toward these goals, you’ll have a plan to help guide your path.
Consider Different Investment Accounts Available
Not all investing is created equal, even if you’re investing in the exact same assets in each account. Some investment accounts like a 401(k) or traditional individual retirement account (IRA) are pre-tax, where contributions reduce your taxable income now but are taxed upon withdrawal; others, like a Roth 401(k) or Roth IRA accept post-tax funds and offer tax-free growth in return.⁴ There are also Health Savings Accounts (HSAs), 529 college savings accounts, and Uniform Transfers to Minors (UTMA) accounts that generally allow you to purchase investments within them.
To determine which accounts you should prioritize over others, you may want to answer a few questions with a financial professional:
● When do you hope to retire?
● What’s your effective tax rate?
● How close are you to the next tax bracket?
● Do you expect to be in a higher tax bracket at retirement than you are now?
● Do you have a pension or another source of retirement income?
The answers to these questions, and more, may help you decide between accounts that are taxable, tax-deferred, and tax-advantaged. You don’t need to commit to one of these accounts for life; one year you may want to fund your Roth IRA, the next year you could focus on your traditional IRA or 401(k).
Know Your Risk Tolerance
Investing doesn’t just require the diligence to set aside funds regularly. It also requires knowing your tolerance level when it comes to downward-trending stocks. By ensuring that all your investments fit cleanly within your risk tolerance, you can help avoid the temptation to make sudden market moves that are driven by emotion rather than logic or analysis. Generally, the higher your risk tolerance and the longer your horizon, the more aggressively you can invest.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.
The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
The Gatewood Planning Foundation: Why It Matters for Your Investment Strategy
The CFA® Designation – A Hallmark of Excellence
Are you familiar with the CFA® designation?
The Chartered Financial Analyst (CFA®) designation is considered the gold standard in the field of investment analysis and portfolio management. It is globally recognized and given by the CFA Institute, validating an individual’s competence and integrity in investment management. It signifies a rigorous course of study and a commitment to the highest ethical standards.
At Gatewood Wealth Solutions, our team includes CFA® credentialed investment professionals bring expertise and credibility to our clients’ investment strategies.
Not All Strategies are Created Equally
In the realm of financial advisory services, not all strategies are created equal. While many advisors opt to delegate investment management to outside money managers or rely on predetermined strategies within their firms, others take a more passive approach by simply allocating funds to passive or index funds and ETFs, often without active portfolio management tailored to the individual’s total asset mix and risk profile.
At Gatewood Wealth Solutions, we take a different approach. We use the CFA® Goals Based Planning Methodology for Portfolio Management in which a client’s assets are first categorized into three different buckets based upon the type of risk they face.
This approach allows us to provide personalized investment strategies that align with our clients’ needs and aspirations, rather than adopting a one-size-fits-all approach.
Let’s break down each bucket:
The Personal Risk Bucket
Purpose:
The first bucket is for low risk liquidity. It helps us make sure we have enough cash so we can weather any economic storm. We typically recommend 6-30 months of cash depending upon one’s life stage. This bucket is designed to cover essential needs and core lifestyle expenses. It’s the foundational component of one’s wealth and aims to ensure that even in adverse market conditions, an individual or family can maintain a basic standard of living without having to liquidate assets at the wrong time.
Asset Types:
Typically, this bucket includes assets with low volatility and risk: cash, high-quality short- to intermediate-term bonds, fixed annuities, and other conservative assets. It also includes one’s primary residence.
Risk Profile:
The focus here is on preservation of principal and liquidity, so assets in this bucket generally have minimal exposure to market downturns. The expected return of these assets is below inflation.
The Market Risk Bucket
Purpose:
The market risk bucket is essentially your “core retirement bucket”. It’s the net present value of all the cash you’ll need in retirement. The goal is not preservation of principal, but preservation of purchasing power. Inflation is best hedged with a diversified investment portfolio. The goal for this bucket is meant for generating returns that will outpace inflation and grow wealth over time.
Our aim with this bucket is to keep up with the benchmarks rather than try to drastically outperform the market. This way, as families navigate their way through retirement, education, and other life goals, their capital account can keep up with the growth of these expenses. It addresses the need for long-term financial security beyond just the essential needs covered in the personal risk bucket.
Asset Types:
This bucket contains a diversified mix of assets that include equities, longer-term bonds, mutual funds, ETFs, and other traditional investment vehicles.
Risk Profile:
This bucket has a moderate to high risk, with the understanding that market fluctuations can impact its value in the short to medium term. However, over longer periods, it’s expected to provide positive real returns. The expected return is above inflation.
The Aspirational Risk Bucket
Purpose:
Anything in excess of the first two buckets we consider aspirational. This is the “swing for the fences” bucket. The goal is to achieve substantial or outsized returns that greatly exceed the market and can move the individual up the wealth spectrum. However, it should be money that an individual can afford to lose without affecting their basic standard of living or long-term financial security.
Asset Types:
These are illiquid assets like a business or real estate, or concentrated assets like a single stock or equity compensation. It also includes high-risk, high-reward investments like startups, speculative stocks, and hedge funds.
Risk Profile:
This bucket is high risk, and there’s a significant chance of loss. The expected return is to greatly exceed the market and inflation.
Putting It All Together
What is our ultimate strategy with these buckets when helping clients pursue financial independence?
We first want clients to enter retirement with no debt, their homes fully paid for, and enough cash in their personal risk bucket to weather any economic storm and insulate their portfolios from being liquidated at the wrong time.
Next, we want their market risk bucket fully funded with the net present value of all their future cash needs in retirement invested in a diversified portfolio that when stress-tested they have a 90% or better chance of never running out of money.
Anything in excess of this bucket can be invested for legacy planning or a cause that is important to them.
It is important to remember that “wealth is made through concentration but preserved through diversification”.
Conclusion
The beauty of this approach is in its intuitive separation of assets based on their purpose and risk. By allocating wealth across these three buckets, individuals can ensure they’re covered for basic needs, have a strategy for long-term growth, and can pursue high-reward opportunities without jeopardizing their fundamental financial security.
Stepping Up to the Plate: Four Baseball Money Lessons
Baseball and financial management can have more in common than meets the eye. Below, we discuss four key lessons that investors—and everyone else—can learn from America’s favorite pastime.
Diversification of Assets is Critical
Having nine power-hitters who are weak in the outfield can help your team rack up high scores—but may not be enough to win the game. Just as you want your baseball team to include a good mix of a variety of skills and abilities, you should want your investment portfolio to include a diverse mix of stocks and more conservative assets, domestic and international assets, and tax-deferred and tax-advantaged accounts.
And like any good manager, it’s also important to have solid, identifiable expectations of the assets in your portfolio and to know when to cut certain “players” loose. Whether this means selling an asset once it hits a certain price or engaging in more complex strategies like tax loss harvesting, knowing when to call it a game can be the key between winning and losing.
You Need a Plan to Manage Losing Streaks
Few teams are able to consistently stay on top; even the best franchises have gone through tough times. And if the Chicago Cubs’ 107-season World Series drought is any indication, baseball can be full of some long down periods.1
Investors and baseball fans should be prepared for these down periods, no matter when they occur. Look back at historical statistics to reassure yourself that these events happen periodically, and with good planning and a bit of luck, winning seasons can come back. Having a plan to get yourself through these slumps can help investors and sports fans weather even the most discouraging times.
Try to Avoid One-Hit Wonders
Who doesn’t love to see a player blast a 500-foot home run, or watch a penny stock or crypto coin increase by over a thousand times in value nearly overnight? While these types of opportunities are fun to watch and present great feel-good stories, having a portfolio composed of power-hitters can also leave you vulnerable to major fluctuations in value.
All investments have some degree of risk, but it’s important for these risks to be compensated—in other words, investments that have a likelihood of increasing in value that corresponds to their risk, not those that will depend on overcoming the slimmest of odds to create a small group of lottery winners.
Take Advantage of the Seventh-Inning Stretch
The seventh-inning stretch gives fans an opportunity to get a brief change of scenery to focus on the last couple of innings of the game. Investing for years without setting aside time to evaluate your asset allocation, your tax reduction strategies, and your retirement plans can leave you scrambling once it’s time to make decisions about your future. Give yourself a virtual “seventh inning stretch” by stepping back and taking a holistic look at your finances so that you can buckle down with renewed focus.
With a solid game plan and prudent evaluation of risk, you’re ready to get started!
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
GWS Planning Services – Where Your Financial Dreams Become Our Mission
At Gatewood Wealth Solutions (GWS), we understand that financial planning is more than just numbers on a page; it’s the roadmap to your dreams, security, and legacy. It’s about the confidence that comes from knowing you’re prepared for the future, the excitement of seeing your goals within reach, and the comfort of knowing you’re not alone in this journey.
At Gatewood Wealth Solutions, we are committed to providing you with the highest level of personalized financial planning services. We believe in building a secure financial future for every client, no matter the size of your investment with us.
Why Our Planning is Invaluable:
Embarking on the path to financial freedom can be daunting, but with GWS, you’re not just getting a service; you’re gaining a partnership that cherishes your aspirations as much as you do. We charge a planning fee for accounts under $500,000 because the depth and breadth of our work necessitate it. This fee enables us to dedicate the necessary resources to craft a financial plan as unique as you are, ensuring we can operate at the highest standards of service and expertise. We invest in your future so that you can enjoy the present, secure in the knowledge that every aspect of your financial well-being is being meticulously managed.
Our commitment is to provide you with a personalized financial plan that includes retirement planning, insurance management, investment strategy, cash flow optimization, tax efficiency planning, estate planning, education funding, and debt management. These comprehensive services are designed to bring you closer to your financial goals, no matter the complexity of your needs.
Client Stories of Success:
Gatewood Wealth Solutions was founded in 1981, and since then, we have had the privilege of witnessing numerous success stories by being a steadfast guide and support for our clients during pivotal life events. We have navigated them through both challenging and prosperous times, tackled complexities, simplified matters, and stood by their side during moments of adversity and satisfaction.
Please click the link below to see profiles of clients we have served:
Our fee structure is designed to reflect the value and expertise we bring to your financial life, especially for clients with account balances under $500,000. We have implemented a financial planning fee which is composed of a $3,000 upfront fee and a $1,500 annual fee for accounts below $200,000, and a $3,000 upfront one-time fee for accounts between $200,001 and $500,000.
Here are the key reasons why this fee model is beneficial for you:
Comprehensive Planning: We undertake an in-depth analysis of your financial situation, including retirement planning, investment management, and more, to create a plan that is as unique as your fingerprint.
Breadth of Expertise: Our team of Certified Financial Planning® professionals and other specialists is equipped to manage complex financial situations, offering advice on tax efficiency planning, estate planning, and other specialized areas.
Personalized Attention: Your dedicated Wealth Planner ensures that your individual needs are met with the utmost care and attention.
Continual Monitoring and Adjustment: Financial landscapes change, and so do your life circumstances. Our ongoing fee allows us to proactively adjust your financial plan to align with these changes, ensuring you remain on course to achieve your goals.
Resource Allocation: The fee ensures that our firm can continue to allocate the necessary resources and tools that facilitate the high-quality services you deserve.
A Fair Model: For accounts under $500,000, the cost of providing in-depth financial planning services can exceed the income from typical asset-based advisory fees. Our model allows us to offer these services at a break-even or a mild profit, maintaining the sustainability of our high-caliber advisory service.
Your Partner at Every Step:
We understand that fees are an important consideration. This is why we want to be upfront about the costs associated with managing your wealth. Your trust in us is paramount, and we strive to ensure that every dollar you invest in our services brings you value, security, and confidence your financial goals and dreams can be realized.
Our commitment to your financial well-being is unwavering, and we invite you to discuss with us how our comprehensive advisory services can make a difference in your life.
Thank you for your understanding and trust. We are here to help you navigate your financial journey with confidence and clarity.
Building Financial Resilience: Determining Emergency Cash Reserves
At Gatewood Wealth Solutions, we prioritize empowering our clients with robust financial strategies, including effective cash management to weather market uncertainties. Understanding the importance of maintaining liquidity during bear markets while remaining confidently invested for the long-term, we review and update cash needs regularly. Here’s how we determine appropriate emergency reserves tailored to different life stages using our Gatewood Rules-of-Thumb:
Cash Management: Pursuing Stability During Market Fluctuations
The primary strategy is to maintain sufficient cash reserves for liquidity needs, especially during bear markets. By holding targeted cash reserves during one’s financial journey, individuals can mitigate the risk of selling investments during down markets and remain confidently invested for the long-term.
Determining Emergency Cash Reserves by Life Stage
Emergency reserve targets are based upon an individual’s life phase and total monthly expenses.
We follow the Gatewood Rules-of-Thumb below for the number on months’ worth of total household expenses one should keep in cash:
Life Phase 1 – Early-Career Accumulation (3-6)
Life Phase 2 – Mid-Career Accumulation (6-18)
Life Phase 3 – Late-Career Nearing Retirement (12-24)
Life Phase 4 – Retirement Income Distribution (18 – 30)
We then determine one’s near-term lump sum expense needs. These include significant financial commitments, such as making a down payment on a new house, buying a new car, funding a home renovation project, or covering tuition fees for a child’s education.
Calculating the Cash Total Target
To determine the total cash target, we assess:
Emergency Reserves (3-30 Months’ Expenses – Life Phase Based)
+ Near-Term Lump Sum Expense Need (0-24 Months from Now)
= TOTAL CASH TARGET
Conclusion
By targeting emergency cash reserves according to your life stage and financial needs, we aim to provide investor confidence during economic uncertainties. Contact Gatewood Wealth Solutions today to explore how we can tailor a cash management plan to align with your specific financial goals and aspirations.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The Evolution of GATORS: Gatewood Wealth Solutions Pillars of Culture
Aaron Tuttle, CFA®, CFP®, CLU®, ChFC®
Chief Executive Officer
INTRODUCTION
At Gatewood Wealth Solutions (GWS), our journey is defined by more than just financial success—it’s about fostering a culture that inspires growth, integrity, and resilience. At GWS, culture isn’t just a buzzword—it’s the heartbeat of our organization.
But how did we arrive at this ethos? Let’s take a stroll down memory lane to uncover the origins of our distinctive culture and the birth of the GATORS. Our journey towards cultivating a vibrant and values-driven culture began with the passion and dedication of our founder, John Gatewood. He instilled in us a commitment to excellence, integrity, and continuous improvement.
ORIGINS OF THE GATORS
Our founder, John Gatewood, had a keen eye for detail and an unwavering commitment to excellence. When he corrected errors or provided guidance, it became known as being “Gatored.” This dedication to improvement laid the foundation for our core values, which would later be encapsulated in the acronym GATORS.
CRAFTING THE GATORS
As the firm’s ownership changed hands, there was a collective desire to formalize our values. Thus, the GATORS were born—a set of guiding principles that reflect our commitment to excellence, trust, ownership, resilience, and seeking sustainable solutions. These values aren’t just words on a page; they’re the fabric of our culture, shaping how we interact with each other and serve our clients. From leadership to frontline, every team member is measured by these values.
GROWTH – is on the other side of adversity: Commit to a lifetime of learning and becoming a better version of you, both personally and professionally. Becoming comfortable can lead to complacency, push yourself outside of your comfort zone and embrace change.
ATTITUDE – is an expression of your values, beliefs, and expectations. Make it great: Be quick to admit mistakes and take corrective action. Be willing to give and receive positive and constructive feedback. Be responsible for your words and actions.
TRUST – is earned over 1,000 actions but lost in 1: How consistently do I keep my promises and act with honesty in all situations. Do I demonstrate reliability over time and am I willing to take responsibility for my actions. Am I transparent with my fellow team members?
OWNERSHIP – because you are more than your job title. To the client, you are the company: You are responsible for learning, doing, improving, and advancing your own career. You are responsible to know and follow GWS policies and procedures. No one is above any job, if something needs to be done, do it. Don’t make it someone else’s responsibility.
RESILIENCE – never give up! When you fall 7 times, get up 8 times. How effectively do I handle unexpected challenges and maintain a positive outlook? How determined am I to keep trying despite obstacles and failures?
SOLUTIONS – not answers: When faced with an obstacle, seek the solution to the problem, not just an answer that provides a temporary resolution.
WHY IT MATTERS
Our culture isn’t just about us—it’s about our clients and our team members. For our clients, it means entrusting their financial futures to a team that embodies integrity, resilience, and a relentless pursuit of excellence. For our team members, it means being part of a workplace where they feel valued, empowered, and inspired to make a positive impact.
LEARN IT! LIVE IT! DEFEND IT!
At GWS, our culture isn’t just a set of guidelines—it’s a way of life. We breathe life into our values, defending them fiercely and embodying them in everything we do. By embracing the GATORS, we not only create a better workplace but also deliver superior service to our clients.
As we continue to uphold the legacy of excellence and integrity that defines Gatewood Wealth Solutions, we invite you to join us on this journey. Learn it. Live it. Defend it. GATOR up!
At Gatewood Wealth Solutions, we’re not just about preparing for the best; we’re about being ready for the worst. Our approach to retirement income planning revolves around a core philosophy: keeping our clients “Bear Market Ready, but Bull Market Positioned.” In this blog post, we’ll delve into our robust methodology for cash management in retirement, highlighting the importance of cash reserves and strategic investment planning.
Understanding the Cash Target
Our firm has worked hard to develop an approach that allows us to pinpoint exactly where that “sweet spot” is, based on clients’ expenses, life stages, and our investment committee’s outlook on the market. Our financial planning and investment management teams work closely together to ensure no stone goes unturned in making this assessment.
The cornerstone of our approach is what we call the “Cash Target.” This is the amount we recommend our clients keep readily available in cash to weather market downturns without the need to sell off investments at unfavorable times. Determining this Cash Target involves a meticulous process that takes into account various factors such as annual expenses, income, market conditions, and life stages.
Steps to Calculate the Cash Target
1. Assess Annual Expenses: We start by evaluating our clients’ total annual expenses, including lifestyle costs, taxes, insurance, and other financial obligations.
2. Review Income: Next, we analyze the client’s income streams, ensuring we have a clear picture of their financial inflows.
3. Incorporate Market Outlook: Our Investment Committee routinely evaluates market conditions to adjust the Cash Target Timeframe. This is the recommended duration, in months, for which one should hold enough cash to cover total expenses, tailored to the current economic environment
4. Calculate the Cash Target: Using a specialized formula, we compute the precise number of months required to cover one’s total expense needs, subtracting regular income received. This Cash Target is based on the client’s expenses, income, and the designated Cash Target Timeframe.
5. Fund the Cash Hub Account: Once the Cash Target is determined, we allocate funds accordingly, so our clients have the necessary cash reserves in place.
Retirement Income Distribution Planning
The cash hub account is just one small part of our overall distribution planning approach, which you can see below. Our planning team constantly turns these funnels on and off based on our clients’ specific financial situations and life goals. We can make sure we correctly put our clients’ money to work for them while maximizing their tax-saving strategies.
Cash – Invest or Keep?
Understanding the role of cash in retirement is crucial. While investments offer growth potential, cash provides stability and liquidity, acting as a safeguard against market volatility. By maintaining an adequate cash reserve, individuals can avoid the need to sell off investments during market downturns, thus preserving their long-term financial security.
Real Life Example
Consider Jane Smith, who illustrates the significant impact of having a cash reserve during retirement. By strategically tapping into her cash reserves during market downturns, Jane was able to preserve her IRA balance and substantially enhance her long-term financial outcome.
Life Stage Considerations
We tailor our cash management approach to different life stages, recognizing that the cash needs of individuals vary depending on whether they’re in the accumulation phase, distribution phase, or approaching retirement.
Adapting to Market Conditions
Our Investment Committee remains vigilant, adjusting the number of months for one’s Cash Target in retirement to market highs and downturns. This is crucial when clients rely on their investments for retirement income. In bearish markets, we will draw from cash reserves to avoid liquidating assets during unfavorable conditions, whereas in bullish markets, we rebuild cash reserves to the target.
Conclusion
At Gatewood Wealth Solutions, we believe in empowering our clients with robust retirement income planning strategies. By strategically managing cash reserves and investments, we aim to ensure financial stability and long-term prosperity for all our clients. If you’re ready to take control of your retirement finances, we’re here to guide you every step of the way.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The Gatewood Team Structure: Personalized Guidance for Every Financial Stage
At Gatewood Wealth Solutions, our philosophy is centered around providing personalized and proactive financial guidance for our clients.
In our experience, as clients’ net worth builds, so does their financial complexity. Given this relationship — and recognizing the importance of navigating various needs based on specific life circumstances — we carefully divide our clients into three groups:
Private Client Care: Ultra-high net worth, ultra-high financial complexity.
Client Care Plus: High net worth, high financial complexity.
Client Care: Average net worth and financial complexity.
Within these segments, we designate specific Client Care Teams to serve a particular number of families, so they can familiarize themselves with typical client needs within those segments. This also helps ensure that no financial plan or investment portfolio is ever reliant on just one person. If something ever happened to one of the advisors — whether retirement, promotion, death, or any other unforeseen circumstance — there would always be another team member familiar with the client’s goals, objectives, and moving pieces to step in and manage their account moving forward.
While some firms take the traditional, one-client-to-one-advisor approach, we set the standard on a true family-to-firm approach. This continuity plan ensures we can deliver on our promises to the families we serve for generations to come.
Client Care Team structure
As a Gatewood client, you receive an on-call Client Care Team tailored to your needs and aligned to your segment. Each member of the team specializes in a particular area related to your account, and all team members work together so that no stone is left unturned when it comes to keeping you on track towards reaching your goals.
While your Wealth Planner is your day-to-day contact, you also have at least three other team members working behind the scenes at all times on your account, not to mention our specialists who can be called in at a moment’s notice to advise as needed.
Wealth Planner: Navigating Your Financial Future
Your Wealth Planner is your family’s personal Certified Financial Planning professional. The CFP® designation demonstrates their proficiency in financial planning, risk management, investment, tax efficiency, retirement, and estate planning advising. They serve as your trusted guide to create and maintain your personalized financial plan that aligns with your goals and aspirations, going beyond simply providing day-to-day services. He or she will be your go-to for most questions!
While the Wealth Planner focuses on your financial strategy, the Wealth Advisor strives to make your client care journey with Gatewood is nothing short of exceptional, especially during times of crucial or complex life decisions. They are dedicated to enhancing your overall experience with the firm, ensuring that every interaction with Gatewood reflects our commitment to excellence.
Your Wealth Planner is supported by a dedicated Wealth Coordinator who takes care of the administrative details of your accounts, from information updates to paperwork. They are the glue that holds the team together, and they work tirelessly to ensure your family has its financial details covered.
Specialists: Providing Experienced Account Support
Our specialists are always ready to provide nuanced knowledge to your family precisely when you need it. Whether you need advice from the Gatewood Investment Committee, a complex strategy from our tax and estate planning specialists, a consultation for employer sponsored retirement plans, or business owner exit planning, we’ll bring in just the right specialist from our team of advisory professionals.
Gatewood Investment Committee: Overseeing and Optimizing your Portfolio
The Gatewood Investment Committee works behind the scenes every day to ensure we’re positioning your investments in a way that helps you pursue your goals. Be sure to tune into our Monthly Market Insights videos to hear their transparent take on the market!
Educational Excellence and Advanced Credentials
At Gatewood, we pride ourselves on the exceptional educational background and advanced credentials of our team members. With a roster that includes MBAs, MAccs, MSFs, MSFSs, JDs, and a suite of distinguished certifications such as CFA®, CFP®, CPA, CEPA®, CMT®, and CAIA®, our professionals bring a depth of knowledge and a breadth of expertise to the table.
In addition to years of experience, this wealth of education and certification translates into a discerning eye for detail and a comprehensive approach to financial strategy. As a client, you benefit from our team’s informed guidance and ability to create sophisticated solutions to meet the complexities of today’s financial landscape.
Gatewood Culture
At Gatewood Wealth Solutions, our culture isn’t just about serving clients; it’s also about nurturing our team members’ growth so they can continue to provide excellent service for years to come. We prioritize a supportive and empowering environment where every individual is encouraged to thrive personally and professionally. This commitment to our team’s well-being fuels their dedication to delivering nothing short of exceptional client experiences, making our culture the driving force behind our success.
Our Commitment to Your Family
Our team structure is designed to ensure that, regardless of life’s changes, you have a consistent, knowledgeable, and dedicated group of professionals ready to support you. As your life evolves, so does our service, adapting to provide the relevant expertise that your situation demands.
If you have any questions about your own Client Care Team structure, please reach out to your Wealth Planner. Not only are we passionate about your success, but we’re also deeply committed to excellence, continually striving to get better, and staying competitive. We will always go the extra mile for our clients and our teammates!
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.
The Essential Shield: Life Insurance in Business Continuity
Christina Shockley, JD, CFP®
Partner & Chief Planning Officer
INTRODUCTION
Imagine you’ve poured your heart, soul, and countless hours into building your business. It’s not just a company; it’s a part of who you are. But what if, in an unforeseen moment, everything you’ve worked for is at risk because of a sudden loss? What if a key player in your team, perhaps even you, were to pass away unexpectedly? Would your business survive, or would it crumble under the weight of the loss?
Sadly, many business owners find themselves in this exact scenario, unprepared for the impact of a death on their business operations and financial stability. A well-designed life insurance plan can offer a solution to these worries, providing a safety net that ensures continuity and security.
THE WAKE-UP CALL
Consider the story of a small tech firm, thriving and on the verge of a breakthrough. The unexpected death of their lead developer threw everything into chaos. Projects stalled, client confidence wavered, and the financial stability of the firm was threatened. Without the developer, not only was the team’s morale affected, but the company also faced potential financial ruin. This is where life insurance steps in as a critical tool for business planning.
KEY PERSON INSURANCE: THE BUSINESS LIFELINE
Key person insurance is a type of life insurance taken out by the business on the lives of crucial employees whose death would cause a significant financial loss to the company. This coverage helps mitigate the risk, providing the business with financial support to navigate through the tough times. It can cover lost income, provide funds to hire a replacement, or, if necessary, pay off debts, distribute money to investors, or even close the business in an orderly manner.
BUY-SELL AGREEMENT: A SMOOTH TRANSITION
Another critical aspect is funding buy-sell agreements with life insurance. These agreements ensure that the remaining business owners have the means to buy the deceased owner’s share of the business, preventing external parties from stepping in. Life insurance policies fund these buyouts, ensuring a smooth transition and uninterrupted operation of the business.
PERSONAL PROTECTION FOR BUSINESS DEBTS
Business owners often secure loans with personal assets. Life insurance policies can provide the means to cover debts and protect personal and business assets, ensuring that your legacy and your family’s financial security are preserved.
QUESTIONS TO PONDER
When considering life insurance for business needs, ask yourself:
Who are the key people in my business whose loss would be catastrophic?
Do I have a buy-sell agreement in place, and how will it be funded?
What debts are tied to my personal assets, and how can they be protected?
How can I use life insurance to ensure the continuity of my business for my employees and their families?
CONCLUDING THOUGHTS
Life insurance offers more than just individual security; it’s a strategic tool for business planning. It protects against critical risks, ensuring that your business can withstand the shocks of unexpected losses. By carefully considering your needs and planning accordingly, you can shield your business, your employees, and your family from financial turmoil. Don’t wait for a wake-up call; the time to plan is now.
This material contains only general descriptions and is not a solicitation to sell any insurance product. Guarantees are based on the claims paying ability of the issuing company.
Testimonials
"Our relationship with Gatewood Wealth Solutions has evolved over the years right along with our family. From building and protecting our wealth to retirement and estate planning, Gatewood has guided us and enabled our objectives. It’s assuring to know skilled professionals we trust are working with us to optimize what we have worked for all our lives. "
"My wife and I have had the benefit of working with John Gatewood for over thirty-five years. Initially, John worked with us planning our personal and business life insurance needs. As his service offerings expanded, we took advantage of his expertise to help us with our family's financial planning. We could not be more pleased than what we are with the plan the Gatewood Wealth Solutions team developed for us. The team members are well-trained, intelligent, friendly, enthusiastic, and very good listeners. We have two scheduled reviews of the plan every year with one of the principals and at least…"
"My wife and I have known and worked with John Gatewood and his team for nearly a decade. The values-driven team of Gatewood Wealth Solutions is motivated, caring, highly competent and personally fueled by character and integrity. I recommended Gatewood to friends and family - including my children - because their deep desire to help clients 'give purpose to their wealth' gives us all the opportunity to better serve our families and communities."
"Navigating the complexities of my corporate life was already a challenge, but when my husband passed away, it felt like an insurmountable mountain of emotions and paperwork. The team at Gatewood Wealth Solutions stepped in with compassion, efficiency, and expertise, guiding me through the entire estate settlement process. Their unwavering support made a world of difference during such a challenging time. I am profoundly grateful for all they've done and continue to do for me. Their services are truly unparalleled, and I wholeheartedly trust and recommend them."
"My wife and I became a client of Gatewood Wealth Solutions twelve years ago on the recommendation of a friend who was also a Gatewood client, and I am very glad that we did. Until that time, I had managed our 401(k) and investments, but with retirement on the horizon, we felt it important to get professional help for retirement planning and investment management. The Gatewood team developed an integrated financial and retirement plan that we refined together. It was based on information such as our current financial position, desired retirement date and lifestyle, anticipated job and retirement income, expenses,…"
"I have worked with Gatewood Wealth Solutions since its inception and could not speak more highly of my experience. Gatewood Wealth Solutions provides comprehensive wealth management services for my family in a very sophisticated way. Their planning services are comprehensive and consider all assets of our family, not just what they manage. This is important for our family since we have a real estate business which must be considered in our planning. They also help us with our estate and tax planning each year. Their service is exceptional and is proactive and not reactive. I have referred members of my…"
"I’ve been with Gatewood Wealth Solutions and its predecessor for 21 years as our financial advisors. I first met John Gatewood in 2002 when I purchased a life insurance policy from him when he was with Northwestern Mutual. Shortly after having additional discussions with John, we started using them as our only financial advisors. They continued over the years to more than perform above my expectations and also started to bring in additional talent within their organization in order expand and meet client’s expectations. Since they’ve organized as Gatewood Wealth Solution and separated from Northwestern Mutual, they’ve continued to add…"
"I have been with Gatewood Wealth Solution for seven years, and I would highly recommend them for wealth management services. They are a very efficient, effective, knowledgeable team that provides highly personalized, client-centered services. If I didn't know better, I would think that I am their only client! They have an excellent working relationship with a highly respected law firm that provides assistance with trusts and estate planning. They also have an excellent working relationship with a tax accounting firm. All of this so that all aspects of my financial planning needs are seamlessly coordinated. Their quarterly meetings are well…"
"Partnering with Gatewood Wealth Solutions has been one of the best decisions we have made in the last five years. I have met with numerous financial planners who’ve all come to me with similar ideas and recommendations that don’t seem to prove that they are thinking outside the box for me individually. But when Gatewood came to me with their plan it was strategically designed with so many aspects taken into consideration that I was surprised at how uniquely competent and professional they were. They brought me many ideas and recommendations that would not bring them profit. They brought me…"
"Gatewood Wealth Solutions gives me confidence that my retirement savings are being monitored and managed with MY best interest in mind. All of the staff is welcoming, friendly and respectful. They have comprehensive knowledge of long-term financial planning, estate planning and tax planning. I have been with Gatewood for many years and hope to be with them for many more years to come."
"I have known John Gatewood, the founder of Gatewood Wealth Solutions, for many years. We became friends well before we talked about business, and it was a natural decision to turn to John for help with our affairs when I needed it because I had grown to know and trust him. It really is true that John and his team at Gatewood Wealth Solutions are completely focused on helping ordinary families like ours to become financially independent. The family part especially means something: One day my 20-something son called to ask if I thought our group would be willing to…"
The statements provided are testimonials by clients of the financial professional. The clients listed have not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success.
