Wealth Management - SDBJ.com - SFVBJ.com · will perform a detailed financial and oper-ational review of the business with the intent of identifying negative information and trends.

WealthManagement

April 13, 2015 • An Advertising Supplement to the Los Angeles Business Journal

This special advertising supplement did not involve the reporting or editing staff of the Los Angeles Business Journal.

By THE PARTNERS OF MEYER,OLSON, LOWY & MEYERS, LLP

WEALTH managers and other financial pro-fessionals understand the importanceof advance planning to protect their

clients’ assets. For the wealthy and those withsignificant holdings about to get married, a well-drafted premarital (prenuptial) agreement servesas protection against a costly, acrimoniousdivorce in the event that the marriage ends. Aprenup can help ensure that a business owned byone partner stays intact. It can also empowerboth partners to better communicate and makefuture financial decisions with honesty, opennessand mutual respect.

As trusted counselors on a range of matters thatimpact their clients’ financial profile, it behooveswealth managers to become more knowledgeableabout the protections prenups can provide andfeel confident in having conversations with clientsabout consulting a family law attorney.

The first question many people have is justwho needs a prenuptial agreement? People who fitinto any of these categories are those for whomwe strongly recommend a prenup as a prerequisiteto marriage.

Business Owners

A family law attorney can help business ownersdraft a prenup that defines the parties’ expecta-tions regarding the ownership, income, apprecia-tion, and valuation of a business. It is also possiblefor the prenup to have the business designated asseparately owned property.

Because of the complexity of the characteriza-tion and valuation of businesses, litigating thosekinds of issues may become very acrimonious andexpensive involving forensic accountants andother costly experts. Without a prenup, we haveseen the costs of litigation decimate parties’ estatesand wipe out a business on numerous occasions.Take the case of the owner of a single restaurantbefore marriage who went on to open multiplelocations by the time of the divorce. Having putsignificant sums back into his growing chain, hedidn’t have the cash liquidity to buy out his wifeand ended up losing the business. The future valu-ation of, and interest in a business can be resolvedahead of time in a prenup to help avoid this kindof disastrous situation.

High-Net Worth Families

For people who stand to inherit significantassets, a prenup can protect their future inheri-

tance and the income derived therefrom.Wealthy parents often initiate the prenup onbehalf of a child about to marry. A typical sce-nario is the twenty-something couple that isjust starting out together, entering the mar-riage with few assets in their names and see lit-tle need for a prenup. Concerned about pass-ing on generational wealth, well-to-do parentswill press and encourage their child to enterinto a prenup.

High-Profile Careers

For those embarking upon what could be ahighly lucrative career (such as professional ath-lete, entertainer, doctor or high-tech entrepre-neur), a well-drafted prenup can include provi-sions such as the characterization of income andthe terms of spousal support in the event ofdivorce, regardless of future financial success. Forcelebrities and others who value their privacy, theprenup can include strict confidentiality provi-sions and the requirement of a private judge toresolve their divorce outside of the limelight of apublic courtroom.

Frequently prenups for athletes, actors and oth-ers in the entertainment industry will specificallydesignate the mementos and collectibles that theyacquire during the course of their career as sepa-rate property. Otherwise all those original scripts,Grammy Awards and Super Bowl Rings could becharacterized as community property and the sub-ject of dispute.

Mature Adults

Older adults, particularly those with childrenfrom a prior relationship and those who are veter-ans of a bitter divorce, tend to see the value ofprenups. For people who have children from prior

relationships, the issue of generational wealth alsoarises. A prenup is a way for them to help makesure their adult children and grandchildren areprotected should the new marriage end in divorce.

A postnuptial agreement, which offers similarprotections to a prenup, is also a valuable optionafter the wedding for people in the situationsdescribed above.

If any of these descriptions apply to yourclients, a good first step is to recommend schedul-ing an informational consultation with a familylaw attorney. In these meetings, the attorney willreview and discuss their assets, financial situationand goals, and can also offer suggestions on howto broach the subject of a prenup with his or herfuture spouse.

It’s important to know that prenuptial negotia-tions don’t have to be combative. When we’re fin-ished signing, it’s not uncommon to have hugs allaround the table. In fact, we often receive invita-tions to the wedding from the couple.

Taking a proactive approach to protecting assetsbecomes even more critical when a person with-out a prenup finds the marriage is on the rocksand is beginning to think about divorce. We sug-gest that a future client consider having an earlyinformational interview with a family law attor-ney as soon as they begin contemplating divorce.This meeting will help them understand theirlegal rights, obligations and exposure within thecontext of their individual situation and whatthey need to think about in planning for thedivorce process.

Led by a team of four female partners, Meyer, Olson,Lowy and Meyers, LLP, specializes in high-assetdivorce, high-conflict child custody disputes and othercomplex family law matters. www.molfamlaw.com.

A Wealth Manager's Guide to Prenups and Postnups:Savvy Strategies for Protecting Assets in Divorce

Taking a proactive approach to protecting assets becomes

even more critical when a person without a prenup finds

the marriage is on the rocks and is beginning to think

about divorce. We suggest that a future client consider

having an early informational interview with a family law

attorney as soon as they begin contemplating divorce.

21_31_wealth_management.qxp 4/9/2015 2:15 PM Page 21

22 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL APRIL 13, 2015

By PARDIS NASSERI

AT some point, most successfulbusiness owners contemplateselling their business to realize

the benefit of years, sometimes genera-tions, of hard work — a once in a lifetimeopportunity for most. Unfortunately, theextremely sophisticated M&A industryplaces entrepreneurs, disadvantaged bysize and experience, against larger compa-nies and private equity firms with skilledM&A professionals. While the buyers arelooking for a great deal, the selling entre-preneur must try to preserve the value oftheir enterprise.

A successful sale maximizes value forthe seller in an efficient process withminimal disruption to the business oper-ations. This comes about through clearleadership, advanced planning, prepara-tion, and proper positioning. Owners andentrepreneurs should keep the followingin mind:

Hiring the Right Advisors

A sale process can be extremely com-plex. M&A savvy companies and privateequity firms have in-house experts that canlead the process and manage external advi-sors. Entrepreneurs and first-time sellerswithout internal M&A resources shouldstrongly consider engaging a lead advisorto help them with M&A readiness, transac-tion execution and post-close transition.

This lead advisor will analyze thebusiness and determine which, if any,additional advisors are needed. Forinstance, investment bankers specializein marketing the business and identify-ing potential buyers, accountants per-form financial and tax reviews, whileattorneys structure the transaction anddraft contracts and purchase agreements.The continuous direction and involve-

ment from a lead advisor, combinedwith the support of specialist advisors,helps achieve maximum value for theowner and entrepreneur.

Telling an Accurate and Persuasive Story

The story of the business has to makesense, have a logical flow and, mostimportantly, reflect reality. The operatinghistory of the business, its current state,growth prospects and reason for divesti-ture are only part of the story. A sophisti-cated buyer will also want details aroundthe financial and operational perform-ance of the business, value drivers, prod-ucts, key customer and vendor relation-

ships, as well as market position and dif-ferentiation. In addition, historical diffi-culties and current challenges to the busi-ness should be proactively addressed andproperly positioned.

Supporting the Story

One of the most important, yet over-looked, parts of a divestiture is ensuringthat the underlying financial and opera-tional data support the story. The buyerwill perform a detailed financial and oper-ational review of the business with the

intent of identifying negative informationand trends. They will then use this infor-mation to undermine the credibility ofthe seller’s story and reduce valuation orwalk away altogether. The seller shouldperform a detailed review of the businessand identify potential issues before begin-ning the sale process or preparing market-ing materials. This will minimize the riskof an unexpected reduction in valuationor a broken process.

Presenting the Story

Owners and management are gener-ally focused on the daily responsibili-ties of running the business and may

lack M&A transaction experience.Furthermore, the internal key perform-ance indicators and financials used bymanagement may not best present thevalue of the business to a potentialbuyer. In addition to conducting adetailed review of the business, anexperienced M&A advisor can deter-mine if the current format and presen-tation of the financials and operatingmetrics are the most complimentary tothe business for value maximization inthe context of a sale process.

Managing the Information Flow

Equally, if not more important, is thelevel of detail and timing of informationtransmitted to the buyer. The divestitureprocess creates a relationship betweenthe seller and buyer that requires discre-tion. The financial and operational dataprovided must support the seller’s storyand still withstand the buyer’s scrutinyduring diligence. The ultimate challengeis to safeguard trade secrets while high-lighting the strengths of the businessand providing a complete and accuratepicture.

Maintaining this delicate balance ismore of an art than a science and is spe-cific to each business and process. Anexperienced M&A advisor can structureand manage the information flow inorder to pre-empt and mitigate thebuyer’s diligence concerns. This createscomfort for the buyer and builds trustthat leads to a faster transaction at ahigher valuation.

In SummaryA successful divestiture is measured not

only by closing the transaction, but alsoby the efficacy and efficiency of the saleprocess and, most importantly, realizingmaximum valuation. Maximizing value ina divestiture is not a secret, but rather aformula that often involves leveraging theappropriate advisors to help craft an accu-rate story that is supported with facts andinformation released in a controlled andcurated manner.

Pardis Nasseri has advised on over $20 billion ofsuccessful M&A transactions. He is ManagingDirector and leads the Divestitures practice ofPalm Tree Advisors, an M&A consulting firmspecializing in working with business ownerscontemplating a divestiture or acquisition.Contact [email protected].

Maximizing Value when Selling a Business

WEALTH MANAGEMENT

By KEN SULLIVAN

I N his new book, A Force for Good:How Enlightened Finance Can RestoreFaith in Capitalism, John Taft, CEO

of RBC Wealth Management-U.S., invit-ed more than 20 respected financialminds – selected for their expertise andfresh perspectives – to provide insightson a path forward for the industry, mov-ing past the crisis of 2008.

Taft recently answered a few ques-tions about why he wrote the bookand what he believes is finance’s rolein society.

Q: Why did you write A Force for Good?

I hope to kick start a more constructivedialogue about what the financial sectorneeds to do to consistently contribute topositive social goals. Much of the narrativesince the financial crisis has focused onlooking backwards, pointing fingers, assign-ing blame, identifying villains and metingout punishments. That was an appropriateand necessary phase in our recovery. Butnow we need to change the conversationby looking forward, developing a road mapfor what still needs to be done to help posi-tion finance for the future.

Q: What is the main idea?

Finance has long been, and can be

again, a “force for good” in socie-ty. However, in order for that tohappen, we need to work toalign what finance does and cando with what society wants andexpects from our industry. Thatvaries depending on who youask, but one central theme hasemerged: while economic growthis critical, society no longerwants growth at all costs. Wewant economic growth balancedwith stability, sustainability,inclusiveness and intergenera-tional equity.

Q: How do you define “Enlightened

Finance?”

“Enlightened Finance” isinformed by hope. It’s aboutinnovating to solve problemslike the retirement savings cri-sis. It’s about funding researchto cure diseases. It’s about pre-serving the environment as wecreate jobs. And it’s about mak-ing sure everyone’s standard ofliving and quality of lifeimproves as the economygrows. Enlightened finance goes beyond“responsible finance” to ask whatfinance can do to make the world a bet-ter place.

Q: How is “Enlightened Finance” different

from regulatory reform?

Completing regulatory reform is cer-tainly a critical stepping stone on the

pathway to enlightened finance. It willhelp return the industry to moreresponsible behavior. But, enlightenedfinance is about more than regulatingbehavior. It is about fostering a cultureof stewardship to underpin the mis-sion, values, purpose and behavior ofand in our industry. It’s about thinkingabout our role in society as a means togreater ends.

Q: What greater ends should finance be

serving?

Finance is a critical enabler of capi-talism, of economic activity. In a verybasic sense, what financial firms do ismatch up people who have money withpeople who need money, and do it in away so that economic risks are man-aged, growth is maximized, resourcesare efficiently allocated and standards ofliving are enhanced. Ultimately, financeshould serve society.

Proceeds from Taft’s book will bedonated to the CFA Institute Future ofFinance Initiative and the SIFMAFoundation.

Ken Sullivan is Complex Director of RBCWealth Management’s Southern Californiaoffices. For more information visitwww.rbcwm-usa.com.

The Path to Enlightened Finance

Maximizing value in a divestiture is not a

secret, but rather a formula that often

involves leveraging the appropriate advisors

to help craft an accurate story that is

supported with facts and information

released in a controlled and curated manner.


APRIL 13, 2015 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 23

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T HE American Bankers Association ishighlighting personal financeresources and urging consumers to

take an active role in managing and pro-tecting their money. National ConsumerProtection Week, observed last month,was a campaign that encouraged con-sumers nationwide to take full advantageof their consumer rights and make better-informed decisions.

“Banks implement numerous safe-guards to protect their customers’ moneyand information, and they also provideconsumers with critical tools to makeinformed financial decisions,” said FrankKeating, ABA president and CEO.

“There are many actions consumerscan take to control their financial futureand keep their money safe.”

ABA’s consumer site—ABA.com/Consumers—features person-al finance tips and resources on topicssuch as mortgages, credit cards, protect-ing your money, saving for college andmore. It also includes interactive calcu-lators that can be useful when makingdecisions regarding home and personalfinancing, investments, retirement andleasing.

ABA recommends that consumers fol-low these tips to assess their finances,

gain control and stick to a new budget orsaving plan:

Create a Budget

• Track your income and expenses tosee how much money you have comingin and how much you spend. If you havedebt, establishing a budget will help youto pay down your debt while saving.

• Identify how you spend your money.• Set realistic goals, especially if you

plan to cut some of your expenses. • Track your spending and review your

budget often.

Reduce Your Debt

• Establish a budget to pay downdebts while you save. Points to considerwhen cutting debt:

• Pay more than the minimum dueand pay on time.

• Pay off debt with higher interestrates first.

• Transfer high rate debt to creditcards with a lower interest rate.

Save for the Unexpected and Beyond

• Pay yourself first. Saving is impor-tant; it helps ensure that you can endurefinancial surprises. No matter how oldyou are, it’s never too late to begin saving.

• Save at least 10 percent of yourincome for retirement. Enroll in aretirement plan or consider optimizingan established retirement plan.Contribute at least the maximumamount that your employer will match,and increase your contribution as yourincome increases.

• Financial advisors often recommendkeeping about three months’ salary in asavings account in case of financial emer-gencies like hospital bills or loss of job.

• If you receive direct deposit at work,ask your employer to send a specificamount to your savings account. Because

the money is put into an account beforeyou have a chance to spend it, automaticsavings plans are an easy and convenientway to save. If your employer doesn'toffer direct deposit, many banks allow forautomatic transfers from checking to sav-ings accounts.

The American Bankers Association is thevoice of the nation's $15 trillion bankingindustry, which is composed of small, region-al and large banks that together employ morethan 2 million people, safeguard $11 trillionin deposits and extend more than $8 trillionin loans.

ABA Shares Consumer Tips for Budgeting,Saving and Reducing Debt

WEALTH MANAGEMENT

Because the money is put into an account

before you have a chance to spend it, automat-

ic savings plans are an easy and convenient

way to save. If your employer doesn't offer

direct deposit, many banks allow for automatic

transfers from checking to savings accounts.

The California Bankers Association and Beacon EconomicsRelease California Banking Industry Intelligence Report

THE California Bankers Association(CBA) and Beacon Economics havereleased a sixth California banking

report that examines important issuescurrently affecting California’s banksand the overall economy. The report isauthored by Chris Thornberg, Ph.D.,founding partner, and Jordan Levine,economist and director of economicresearch, at Beacon Economics. Thisreport begins with an economicoverview of the nation and ofCalifornia, and then takes a closer lookat the state of consumer finances andbank lending trends. Among the report’skey findings:

The California Bankers Association(CBA) and Beacon Economics havereleased a sixth California banking reportthat examines important issues currentlyaffecting California's banks and the overalleconomy. The report is authored by ChrisThornberg, Ph.D., founding partner, andJordan Levine, economist and director ofeconomic research, at Beacon Economics.This report begins with an economicoverview of the nation and of California,and then takes a closer look at the state ofconsumer finances and bank lendingtrends. Among the report's key findings:

• Beacon forecasts that the Californiaeconomy will continue to lead the nation-al economic recovery, with growth pickingup in 2015 and 2016, before settling into

"normal" rates of growth thereafter.• California's residential (and to a less-

er extent) commercial real estate marketshave again become a source of economicstrength - through September 2014,California averaged a 14.9% annualgrowth rate in home prices.

• Consumer finances in the U.S. haveshown relative improvement since theend of the Great Recession. From 2010 to2013, consumer leverage ratios - totalhousehold debt to disposable income -declined nearly 11% to 14.6%. Overallmedian family debt levels have fallenmore than 20% since 2010.

• Significantly low interest rates overthe last few years have also improved theconsumer's financial obligation standing.As of the second quarter of 2014, theFederal Reserve reported a total debt serv-ice ratio of 9.9, meaning it takes less than10% of a household's disposable incometo service its debt obligations. That num-ber was 13% in 2009.

• Despite overall reductions in the costof consumer debt, families have anincreased appetite for debt associatedwith installment loans, particularly edu-cation loans. From 2010 to 2013, themedian family debt related to installmentloans increased 8.1% to $14,600. In addi-tion, the proportion of total family debtassociated with installment loans nowcomprises 13.1%, compared to only11.1% in 2010. This is in contrast to thedecreased proportion of debt associatedwith secured residential property andcredit card balances.

• The number of distressed mortgagescontinue to plummet across California,

with double-digit reductions in bothdefaults and foreclosures through the firstnine months of 2014.

The report also notes that the pace ofbank lending in California has outpacedthat of the U. S. in a variety of loan cate-gories. In particular, construction andland development loans in California,which grew by 22.4% from the first twoquarters of 2013 to the first two quartersof 2014, easily outpaced the nationalgrowth rate of 6.9% over that same time.California bank lending is also outpacingthe nation in a variety of real propertyloans including commercial real estateloans, multifamily residential, and 1-4family residential loans.

"We are very pleased to see California'sbanks continue to increase their lending,and support our state's impressive eco-nomic recovery, which continues to out-pace the nation's recovery," said RodneyBrown, president and CEO of the CBA.

The report concludes with observa-tions from the authors about the recentannouncement from Fannie Mae andFreddie Mac to purchase mortgages withdown payments as low as 3%.According to the new rules, these loanswould be allowed only for fixed-ratemortgages on single-family homes thatwould be the borrower's primary resi-dence and would require full documen-tation of the ability to repay the mort-gage. A low down payment coupledwith fairly strict lending standards istargeted specifically at potential home-owners with proven credit worthinessbut who are in the lower to middle-endof the income spectrum.

"This is a calculated move by FannieMae and Freddie Mac to move towardsslightly looser standards without beingperceived as moving the needle tooquickly or recklessly. Thus, the move willprovide some modest boost to the hous-ing market, but because of its limitedreach, is far from a panacea," concludedthe report's authors.

Established 124 years ago, the CaliforniaBankers Association (CBA) is one of thelargest state banking trade associations in thecountry. CBA leads the way in developing rele-vant legislative and educational solutions tosome of California's more pressing financialand banking issues, including financialempowerment, identity theft, financial privacy,and financial elder abuse. CBA's membershipincludes the majority of California's commer-cial, industrial and community banks andsavings associations. For more information,visit www.calbankers.com.

Beacon Economics, LLC is an independenteconomic research and consulting firm withoffices in Los Angeles and the San FranciscoBay Area. The firm delivers economic analy-sis and data sites that help their clients makeinformed, strategic decisions about invest-ment, growth, revenue, policy, and other criti-cal economic and financial issues. Theirnationally recognized forecasters were amongthe first to predict the collapse of the housingmarket and foretell the onset and depth ofthe economic downturn that followed. Coreareas of expertise include economic and rev-enue forecasting, market and industry analy-sis, economic impact studies, economic policyanalysis, and international trade analysis.

Report provides astate of consumerfinances for 2014





A Closer Look at Financial Advisorsand the Important Role they Play

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WEALTH MANAGEMENT

I N a society that grows more complexevery day, consumers are present-ed with the constant pressures of

family, career, and community respon-sibilities and personal enrichment. Thefinancial marketplace is ever-changingwith new laws, regulations, economicevents, market changes, product offer-ings and conflicting media messages.Making the right financial moves atthe right time is critical to achievingsecurity and accomplishing personalobjectives.

A personal advisor guides the finan-cial planning process: goal identifica-tion, data organization, analysis, prob-lem identification, recommendations,and most important - plan implementa-tion and results monitoring. Your advi-sor will help you save, spend, invest,insure and plan wisely for the future.

A Registered Financial Consultanthas met the qualifications required toserve the public effectively, and more-over, is committed to essential profes-sional continuing education. You can'tdelegate your job, career, civic or familyresponsibilities - but you can obtainqualified, professional financial adviceand service.

What is the RFC Designation?

The Registered Financial Consultant(RFC) is a professional designationawarded by the InternationalAssociation of Registered Financial

Consultants to those financial advisorswho can meet the high standards ofeducation, experience and integritythat are required of all its members.

The IARFC is a non-profit profession-al credentialing organization of provenfinancial professionals formed to fosterpublic confidence in the financial plan-ning profession, to help financial advi-sors exchange planning techniques, andto give deserved recognition to thosepractitioners who are truly committedto ethical standards and continuousprofessional education.

Because there are no consistentlicensing requirements for the variouspersons who call themselves "financialplanners" the public has a critical needfor a method of distinquishing the qual-ified and dedicated financial advisor.

What is the purpose of the IARFC?

The primary purpose of the IARFC isto provide the public with a convenientaccess to a pool of well-qualified practi-tioners from which to choose a personalfinancial advisor. It is the only profes-sional organization that requires all of itsmembers to meet and document sevenstringent requirements of education,experience, examination, integrity, licens-ing, ethics and a significant amount ofcontinuing professional education.

RFC Examination Process

The comprehensive RFC examination

covers a wide range of subject matter;Principles of Personal Finance, Debt andCash Flow Management, Employee andGovernment Benefits, Annuities,Securities, Investments and AssetAllocation, Life, Health and CasualtyInsurance, Education and Special NeedsFunding, Estate Planning, Survivor IncomeNeeds Analysis, and Retirement Income.

RFC continuing education requirements:

Each year the RFC must complete aminimum of 40 units (hours) of profes-sional continuing education. Thisincludes college courses, educationalsymposiums, credentialing courses, dis-tance learning programs and practition-er conferences. Many RFCs are instruc-tors at colleges and conferences.



If you’ve got a vision, an SBA loan can help you get there. Our longer terms and lower down payments can help your business grow and keep our communities strong and vibrant.

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Stop by and talk with a banker today.

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* Wells Fargo is the #1 SBA 7(a) lender by dollars according to the U.S. Small Business Administration as of September 30, 2013.All financing is subject to credit approval and SBA eligibility.© 2015 Wells Fargo Bank, N.A. All rights reserved. (1245940_14625)

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Five Smart Uses for Your Tax Refund

Life on your terms

Western International Securities enables representatives to

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relationship with Pershing LLC, a BNY Mellon company, among

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Visit wisdirect.com.

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Pershing LLC, member FINRA, NYSE, SIPC, is a wholly owned subsidiary of The Bank of New York Mellon Corporation (BNY Mellon).

WEALTH MANAGEMENT

NEARLY eight out of 10 U.S. tax fil-ers will receive a federal taxrefund this year. As millions of

Americans await reimbursement fromUncle Sam, the American BankersAssociation has highlighted five tips formaking the most of their tax refund.

“Smart use of your tax refund can startyou on the path to long-term financialsecurity,” said Frank Keating, ABA presi-dent and CEO. “Instead of going on aspending spree, take a moment to evalu-ate your financial situation and decide onwhere those dollars will make the mostdifference.”

ABA recommends the following tipsfor consumers looking to put their taxrefund to good use:

• Save for emergencies. Open oradd to a high-yield savings accountthat serves as an “emergency fund.”Ideally, it should hold about three-to-six months of living expenses in caseof sudden financial hardships like los-ing your job or having to replace yourcar.

• Pay off debt. Pay down existing bal-ances either by chipping away at loanswith the highest interest rates or elimi-nating smaller debt first.

• Save for retirement. Open orincrease contributions to a tax-deferredsavings plan like a 401(k) or an IRA.Where can you get one? Your bank canhelp set up an IRA, while a 401(k) isemployer-sponsored.

• Put it toward a down payment.The biggest challenge that most first-timehome buyers face is coming up withenough money for a down payment. Ifyou intend to buy a new home in thenear future, putting your tax refundtoward the down payment is a smartmove.

• Invest in your current home. Useyour refund to invest in home improve-ments that will pay you back in the longrun by increasing the value of yourhome. This can include small, cost-effec-tive upgrades like energy-efficient appli-ances that will pay off in both the shortand long term. If you have more sub-stantial renovations in mind, your bankcan help with a home equity line ofcredit.

For more tips and resources on a vari-ety of personal finance topics such asmortgages, credit cards, protecting youridentity and saving for college, visitaba.com/Consumers.

The American Bankers Association representsbanks of all sizes and charters and is thevoice for the nation's $14 trillion bankingindustry and its two million employees.Learn more at aba.com.

ABA offers consumertips for putting taxrefunds to good use

We've all heard about the importance

of having life insurance, but is it really

necessary? Usually, the answer is "yes,"

but it depends on your specific situation.

If you have a family who relies on your

income, then it is imperative to have life

insurance protection. If you're single and

have no major assets to protect, then you

may not need coverage.

In the event of your untimely death,

your beneficiaries can use funds from a

life insurance policy for funeral and bur-

ial expenses, probate, estate taxes, day

care, and any number of everyday

expenses. Funds can be used to pay for

your children's education and take care

of debts or a mortgage that hasn't been

paid off. Life insurance funds can also

be added to your spouse's retirement

savings.

If your dependents will not require the

proceeds from a life insurance policy for

these types of expenses, you may wish to

name a favorite charity as the beneficiary

of your policy.

Whole life insurance can also be

used as a source of cash in the event

that you need to access the funds dur-

ing your lifetime. Many types of perma-

nent life insurance build cash value that

can be borrowed from or withdrawn at

the policyowner's request. Of course,

withdrawals or loans that are not repaid

will reduce the policy's cash value and

death benefit.

When considering what type of insur-

ance to purchase and how much you

need, ask yourself what would happen to

your family without you and what type of

legacy you would like to leave behind. Do

you want to ensure that your children's

college expenses will be taken care of in

your absence? Would you like to leave a

sizable donation to your favorite charity?

Do you want to ensure that the funds will

be sufficient to pay off the mortgage as

well as achieve other goals? Life insur-

ance may be able to help you meet these

objectives and give you the peace of

mind that your family will be taken care

of financially.

The cost and availability of life

insurance depend on factors such as

age, health, and the type and

amount of insurance purchased. As

with most financial decisions, there

are expenses associated with the

purchase of life insurance. Policies

commonly have mortality and

expense charges. In addition, if a

policy is surrendered prematurely,

there may be surrender charges and

income tax implications. Any guaran-

tees are contingent on the financial

strength and claims-paying ability of

the issuing insurance company.

If you are considering the purchase of

life insurance, consult a professional to

explore your options.

This material was written and pre-

pared by Emerald.

Why Purchase Life Insurance?



Congratulations to all of the 2015 Healthcare Leadership Awards Finalists!Individuals

• David Allerby, 24Hr Home Care• Dr. Stefany H. Almaden, The Almaden Group, Inc.• Dr. Sunny Bhatia, Prime Healthcare / Encino Hospital Medical Center /

Sherman Oaks Hospital• Brian S. Boxer Wachler, MD, Boxer Wachler Vision Institute• Linda Bradley, Centinela Hospital Medical Center• Heidi Crooks, UCLA Health• Caroline Esparza, Simi Valley Hospital• Paulette Heitmeyer, Marina Del Rey Hospital• Gudata Sado Hinika, Dignity Health California Hospital Medical Center• Margaret Rose Lanam, Angeles Vista Hospice• Dr. Josh Luke, FACHE, National Readmission Prevention Collaborative• Precious Mayes, WAVE Innivations LLC• Maria Hellen Rodrigeuz, M.D., Pomona Valley Hospital Medical Center• Clifford Shiepe, T.H.E. Health and Wellness Centers• Mark Song , MD, Kaiser Permanente Gardena Medical Offices• Robert Stone, City of Hope• Avi Zaraya, Kaiser Permanente, Woodland Hills• Robert Zasa, ASD Management

For tickets or for more information, please contact us at 323.549.5225 or visit www.labusinessjournal.com/bizevents.

Breakfast & Awards ReceptionWednesday, April 29, 20158:00 – 10:30am | Omni Hotel Los Angeles

Individual Seats: $75 | Table of 10: $650

HEALTHCARE LEADERSHIP

2015

AWARDSFORUM &

PRESENTING SPONSORS:

PLATINUMSPONSOR:

Centinela Hospital Medical CenterUCLA Health

GOLDSPONSORS:

Please join the Los Angeles Business Journal as we host our annual Healthcare Leadership Forum & Awardsbreakfast. This newly expanded format, which now includes a panel discussion, will bring together LA’s industry leaders to discuss the state of healthcare, delivery of care and the impacts to businesses in Southern California.

We will continue the program by announcing our 2015 Healthcare Leadership Award Honorees.

Panel of Speakers:

Harry NelsonCo-Founder & Managing Partner,

Nelson Hardiman LLP

Paula Wilson President & Chief Executive Officer,

Valley Community Healthcare

Organizations• 24Hr Home Care

• Center for Assault Treatment Services (CATS)

• Children’s Hospital of Los Angeles Community Outreach Program

• CHLA/AltaMed Clinical Partnership

• Dignity Health California Hospital Medical Center

• DWC Women’s Health Center

• Encino Hospital Medical Center

• Heal One World

• Healthy Ever After - Torrance Memorial Medical Center

• Huntington Hospital Senior Care Network

• Inglewood Imaging Center, LLC

• The Institute for Advanced Laser Dentistry

• National Readmission Prevention Collaborative

• T.H.E. Health and Wellness Centers

William N. Grice Executive Director,

Kaiser Foundation Hospitals and Health Plan

Los Angeles Medical Center

Richard Yochum President/CEO, Pomona Valley

Hospital Medical Center

Joseph C. Alvarnas, MDDirector of Medical Quality,

Associate Professor of Hematology and Hematopoietic

Cell Transplantation, City of Hope



Eight Ways to Outwit an Identity Thief

There’s Wealth in Our Approach.™

THERE’S WEALTH IN AN APPROACH

WHERE INTEGRITY IS A PRIORITY

KEN SULLIVAN

Senior Managing Director, Complex Director(310) 205-7745

INVESTMENTS | CASH & LENDING SOLUTIONS | TRUST SERVICES | INSURANCE

At RBC Wealth Management®, our approach has always been, and always will be, dedicated to putting the needs of our clients first.

OFFICE LOCATIONS

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© 2015 RBC Wealth Management, a division of RBC Capital Markets, LLC,Member NYSE/FINRA/SIPC.

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WEALTH MANAGEMENT

T HE American Bankers Association isoffering tips for consumers to pro-tect their financial identity.

“Financial fraud, including identityfraud, is a very real risk that must betaken seriously,” said Frank Keating, ABApresident and CEO.

Identity fraud occurs when a criminalobtains and misuses someone’s personalinformation without permission, typical-ly for economic gain. For many victims,it can result in drained bank accounts,poor credit and a damaged reputation.

“The best way to contend with finan-cial fraud is to prevent it from ever hap-pening in the first place,” said Keating.“Banks use sophisticated technology andmonitoring techniques, intricate firewallsand other methods of securing customerdata, but there are steps consumers musttake as well.”

This initiative is part of ABA’s GetSmart About Credit Day, when volunteerbankers across the country will help teensand young adults protect themselvesfrom becoming a victim of identity fraud.

ABA offers the following tips:

• Don’t share your secrets. Don’t pro-vide your Social Security number oraccount information to anyone who con-

tacts you online or over the phone.Protect your PINs and passwords and donot share them with anyone. Use a com-bination of letters and numbers for yourpasswords and change them periodically.Do not reveal sensitive or personal infor-mation on social networking sites.

• Shred sensitive papers. Shred receipts,banks statements and unused credit cardoffers before throwing them away.

• Keep an eye out for missing mail.Fraudsters look for monthly bank or cred-it card statements or other mail contain-ing your financial information. Considerenrolling in online banking to reduce thelikelihood of paper statements beingstolen. Also, don’t mail bills from yourown mailbox with the flag up.?

• Use online banking to protectyourself. Monitor your financialaccounts regularly for fraudulent transac-tions. Sign up for text or email alertsfrom your bank for certain types of trans-actions, such as online purchases ortransactions of more than $500.

• Monitor your credit report. Order afree copy of your credit report every fourmonths from one of the three creditreporting agencies atannualcreditreport.com.

• Protect your computer. Make surethe virus protection software on yourcomputer is active and up to date. Whenconducting business online, make sureyour browser’s padlock or key icon isactive. Also look for an “s” after the“http” to be sure the website is secure.

• Report any suspected fraud to yourbank immediately. The faster you let

them know, the faster they can begin toresolve your program.

The American Bankers Association is thevoice of the nation's $15 trillion banking

industry, which is composed of small, region-al and large banks that together employ morethan 2 million people, safeguard $11 trillionin deposits and extend more than $8 trillionin loans. Learn more at aba.com.

ABA providesconsumer tips forNational CybersecurityAwareness Month

As college students head to campus

after spring break, money management

should be on their personal syllabus,

according to the American Bankers

Association. The organization has released

ten money-saving tips to help college stu-

dents get an early start on securing their

financial future.

“It’s important for college students to

take control of their financial future by sav-

ing wherever and whenever they can,”

said Frank Keating, ABA president and

CEO. “They should treat personal finance

like a second major and avoid unneces-

sary expenses now to reduce financial bur-

den when they graduate.”

ABA offers the following tips to help col-

lege students form a strong foundation for

money management (other consumer

financial tips are available at

aba.com/Consumers):

•• CCrreeaattee aa bbuuddggeett.. You’re an adult now

and are responsible for managing your own

finances. The first step is to create a realis-

tic budget or plan and stick to it.

•• WWaattcchh ssppeennddiinngg.. Keep receipts and

track spending in a notebook. Pace spend-

ing and increase saving by cutting unnec-

essary expenses like eating out or shop-

ping so that your money can last through-

out the semester.

•• UUssee ccrreeddiitt wwiisseellyy.. Understand the

responsibilities and benefits of credit. Use

it, but don’t abuse it. How you handle your

credit in college could affect you well after

graduation. Shop around for a card that

best suits your needs.

•• TTaakkee aaddvvaannttaaggee ooff yyoouurr bbaannkk’’ss

rreessoouurrcceess.. Most banks offer online, mobile

and text banking tools to manage your

account night and day. Use these tools to

check balances, pay bills, deposit checks

and monitor transaction history.

•• LLooookkoouutt ffoorr mmoonneeyy.. There’s a lot of

money available for students — you just have

to look for it. Apply for scholarships, and look

for student discounts or other deals.

•• BBuuyy uusseedd.. Consider buying used

books or ordering them online. Buying

books can become expensive and often

used books are in just as good of shape

as new ones.

•• EEnntteerrttaaiinn oonn aa bbuuddggeett.. Limit your

“hanging out” fund. There are lots of fun

activities to keep you busy in college and

many are free for students.

Top 10 Money Tips Your Kids ShouldKnow Before Going Off to College



LIMITED SEATING

RSVP TODAY!

Friday, July 24, 2015 • 8:00 – 10:30AMOmni Hotel Los Angeles | $45 per person

(Space is limited, includes breakfast)

Please join the Los Angeles Business Journal and San Fernando Valley Business Journal’s as we present our 2015 Mid-Year Economic Trends and Forecast. Our panel of regional experts from key industries in Southern California will take a look back at the first half of 2015, discuss the economic trends affecting the remainder of the year, and share their insights on

where they feel the market is headed. Don’t miss this opportunity to be a part of the conversation.

Attendance is limited so RSVP today! Register at labusinessjournal.com/bizevents or by contacting Breanne Kamai at 323-549-5225 x203 or [email protected].

PRESENTING SPONSORS:

WEALTH MANAGEMENT

THE term Sandwich Generation haschanged meaning since it was firstcoined back in 1981 by social

worker, Dorothy Miller. The phrase origi-nally described women between ages 30through the 40s who were “sandwiched”between their young children, spouses,employers and aging parents.

Today, it still refers to a challengingjuggling act, but the demographicshave changed — now their parents areliving longer and the experience is feltby both men and women in their 50sand beyond. Because of this extendedlife expectancy, the costs incurred bythe Sandwich Generation can add up,even if your parents have been diligentabout saving for their own future care.

And then there’s a group called “clubsandwich” or “triple decker” to describecaregivers of three generations: their par-ents, kids, and either grandparents orgrandchildren.

According to the Pew ResearchCenter, 1 of every 8 Americans aged 40to 60 is raising a child and caring for aparent. When you consider that CensusBureau statistics indicate that the num-ber of older Americans aged 65 or olderwill double by the year 2030, to over 70million, it’s critical that sandwich gener-ation cohorts not lose sight of their ownfinancial goals even as they supporttheir families.

HERE ARE A FEW USEFUL TIPS:

• Start a college savings plan foryour younger children. Your financialresponsibilities to your children must

take precedence over those to your par-ents, because who else can your childrenlook to?

• Set priorities and boundaries withadult children. If your adult child isunable to find a job and turns to theBank of Mom and Dad for help, you mustdefine some limits and repayment terms,and do it in writing.

• Who will care for the aging par-ent? Caring for the elders can take anemotional toll, because not all siblingsand family members will agree on how totake care of a parent. Put your expecta-tions and limits of time and money to bespent in writing, especially for the benefitof other siblings or family members—who will be the primary caregiver, andwho will pay for what, etc.

• Keep all documents handy. Decidewho will manage and keep all recordsthat are related to advanced and end-of-life care, plus power-of-attorney for med-ical care and financial matters.

• Protect your own means of liveli-hood. Avoid leaving or taking an extend-ed break from your job, as retirementbenefits and Social Security will be per-manently decreased. Trying to re-enterthe workforce at the previous pay levelmay not be possible.

• Merge households. It may not bethe most harmonious living arrangement,but elder parents living with adult chil-dren definitely saves money on expenseslike home owner’s insurance, taxes, childcare, long-term care, and so on.

• Don’t dip into your retirementsavings. Never compromise your own

financial future to take care of a parent.You risk passing on the loss to your ownchildren.

• Continue saving despite familyobligations. Although you may feelstrapped between your mortgage, raisingchildren, and shouldering some of thecost to care for your parents, try to socksome money away.

• Encourage long-term care insur-ance for parents. The sooner they buyit, the less expensive it should be, sodon’t wait until your parents are in their70s and/or get ill before you bring upthe subject.

• Government assistance. Checkyour local government Medicaid officeto see if there are any reimbursement

programs for caretakers under the stateand federal government’s Cash &Counseling program. Reaching out tothe people and organizations that canhelp you and taking some financiallywise steps can transform the job of sup-porting family from a burden to an obli-gation of love and pride.

• Seek professional financial guid-ance. Being a part of the sandwich gen-eration can be tough emotionally andfinancially. A professional money man-ager can offer advice on the best solu-tions for all concerned.

Information provided by McGee WealthManagement and Raymond James FinancialServices.

Wealth Management Tips for the Sandwich Generation

When you consider that Census Bureau

statistics indicate that the number of older

Americans aged 65 or older will double

by the year 2030, to over 70 million, it’s

critical that sandwich generation cohorts

not lose sight of their own financial goals even

as they support their families.


Wealth Management - SDBJ.com - SFVBJ.com · will perform a detailed financial and oper-ational review of the business with the intent of identifying negative information and trends.

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