By John J. Checki, Jr. and John J. “J. J.” Checki III
Wouldn’t it be great fun and so comforting to have a way to get some good advice about money? Here’s hoping you find this brief article helpful and that it moves you to take action.
All financial success begins with spending less money than we make. Spend more than we make, whoops we are going broke two ways: quickly and slowly. Let’s address this situation head on, shall we? Spending less equates into saving and investing. Let’s consider making it automatic, pre-tax, and tax deferred. If we are employed, we may be blessed with a 401k. Sign up for at least 10%, enjoy the tax deferral and perhaps even an employer match.
What is so special about all that? Glad you asked; the match is free money, the pre-tax is based on average tax rates of about $0.80 for $1 of investment. Translation? If I invest $1 and have an average rate of federal income tax, it may only reduce the take home pay by $0.80. Be sure to consult with your individual tax professional and do your research. It is automatically tax deferred until you withdraw the money, and pay the tax, with growth potential over time amplified by the tax deferral (not paying the tax on dividends and gains, until they are withdrawn). You might also automatically have some of your paycheck deposited into a savings account. That could be a nice step to accumulate a cash reserve to meet your opportunities and emergencies.
Opportunities? New investment, business, travel, and adventures. Emergencies? Hail damage, medical, hot water heater…
Let’s say we are a little further on down the financial security and independence road. We have a cash reserve and we are concerned about our 401ks, IRAs, investment accounts, real estate holdings, collections, and other investments. Okay, lovely, we prefer helping you at this stage. Once we have seven figures or so of investable assets, doesn’t it make sense to look into some profession help? A proven track record, and a passion for you and your situation, and ongoing world class service? I hope so!
How on earth is this done and why? Golly, step one is investment consulting in our process because it is what interests our clients first. After a thorough evaluation of what you are doing, we can then take a schooled look at you and your investment situation. We, meaning all of us, now will have a better understanding of what is and what is not doing a good job for you and is within your risk tolerance, and in line with putting you in a position to continue to work toward your goals in your desired time frame.
Once that evaluation is complete, recommendations can be made. Should you continue on your current path with your team that is in place? Are changes necessary to pull down on the potential risk and reward relationship, and reposition your wealth to pursue your hopes, dreams, and carry out your legacy plans?
Yet Our Wealth Management Process is clearly stated and is prominently displayed on our web site, www.johncheckijr.com.
Our Wealth Management Process
Wealth Management = Investment Consulting + Advanced Planning + Relationship Management
IC, Investment Consulting. That is the management of all investment elements to maximize the probability of you achieving all that is important to you. This should include Portfolio Performance Analysis, Risk Evaluation, Asset Allocation, Re-balancing Programs in place reviewed, Assessment of impact of costs, Assessment of Impact of (everyone’s non favorite) Taxes, and Investment Policy Statement, after your Risk Analysis.
AP = WE + WT + WP + CG
Advanced Planning = Wealth Enhancement + Wealth Transfer + Wealth Protection + Charitable Giving
WE, Wealth Enhancement. Tax Mitigation and cash-flow planning, and positioning for your protection.
WT, Wealth Transfer. Transferring Wealth effectively: may or not be within a family.
WP, Wealth Protection. Risk mitigation, legal structures and transferring risk to insurance company.
CG, Charitable Giving. Maximizing Charitable Impact.
RM = CRM + PNRM
Relationship Management = Client Relationship Management + Professional Network Relationship Management
How does the process work? Timing?
Discovery Meeting: A complete discovery process, with a mind map. (Nothing as exciting as discovering your hopes, dreams and goals for you and your family.)
Investment Plan Meeting: Presentation of investment plan, which would include a complete analysis of what you are doing and what, if any, changes are recommended.
Investment Plan and Approach: Review of the Investment Plan in detail.
Mutual Commitment Meeting: Confirmation of commitment, making sure we understand and reflect your goals.
45-Day Follow-Up Meeting: Organization of account paperwork.
Regular Progress Meetings: At least once a year, Quarterly if desired.
Review, Review, Review. Absolutely essential to rebalance, revise, thanks to rule, market.
Securities are offered through Securities America Inc., member FINRA and SIPC, Advisor services offered through Securities America Advisors., an SEC Registered Investment Advisor.John J. Checki Jr, CFP, Representative.This is not a CPA Firm.
John and his firm have been helping some of the nicest families in North Dallas, Richardson, Plano, and Frisco for about thirty years. We specialize in Baby Boomers Wealth Management and have a unique and complete Wealth Management Process. You can read the rest of my story on our web site. My proudest accomplishment is my family: Children, Grandchildren and Wife. We love to travel, scuba dive, taking pictures, studying and family and church gatherings.