Brooke Boone Kelly joined the Weatherly team in 2016 to provide high quality service to the Firm’s clients and became a Partner in 2023. She works closely with existing clients and new client business to understand their financial goals and implement strategic planning and investments to achieve their needs. She is also a member of the firm’s investment committee and trading team to help raise for client cash flow needs. Brooke leads our charitable related business and assists clients with estate administration processes.
Prior to joining Weatherly, Brooke worked as a Senior Audit Associate at Grant Thornton, LLP (GT). During her four year tenure at GT, Brooke performed audits and reviews of dynamic public, private, and not-for-profit companies in industries including life sciences, biotechnology, aerospace, manufacturing, and education. She prepared financial statements, established and maintained professional relationships with clients, and was co-chair of University of San Diego Recruiting to attract new talent to the firm. She trained and supervised associate and intern workload in her department, and represented Grant Thornton as an Athena Auction Committee Member ||| at the Athena Pinnacle Gala.
Brooke graduated summa cum laude from the University of San Diego with her B.S. in Accountancy in May 2014. She completed her Masters of Science in Accountancy (MACC) F at USD in August 2014. While at USD, Brooke was involved in many on-campus organizations, including USD’s Accounting Society, Preceptorial Assistant program {{, and Gamma Phi Beta Sorority. Brooke was Gamma Phi Beta’s Health and Wellness Chair, Philanthropy Chair, and Safety Chair. Brooke joined the Vistage Emerging Leaders Program!!! in 2022 to enhance her leadership skills at the firm. In her free time, she enjoys spending time with her family and friends, spinning, specifically on her peloton, hiking and traveling.
Education:
University of San Diego, MACCA (M.S. in Accountancy), California
University of San Diego, B.S. (Accountancy), California
Certifications:
License(s): Series 65 D
CERTIFIED FINANCIAL PLANNER™ professional (CFP®) A
Active Memberships:
Financial Planning Association (FPA)+
The North County Estate Planning Councilww
Del Mar Women’s Giving Collective ccc
Awards and Accomplishments:
San Diego Business Journal Women of the Year (F/K/A Women Who Mean Business) Finalist
“Woman of the Year” for the San Diego Magazine Finalist
Year(s): 2021
San Diego Business Journal’s 40 Business Leaders under 40
Year(s): 2023
Five-Star Best Personal Wealth Manager Award – Year(s): 2024
Lindsey Fiske Thompson joined the Weatherly team in 2014 to further our commitment to providing a premier client experience and became a Partner in 2019. Her extensive background in operational support and resource management translates into an optimized client service and experience on multiple levels. Her main focus areas at Weatherly include talent management and the employee experience, information security, compliance, finance, and strategic planning.
Prior to joining Weatherly, Lindsey worked for Eli Lilly and Company for 14 years, providing high level administrative, technology, and operations solutions at the organization’s San Diego based Biotechnology division. She played a key role in the corporate culture and operational integrations between Applied Molecular Evolution, Inc. and Eli Lilly & Co., as well as Lilly’s acquisition of SGX Pharmaceuticals. Prior to the merger, Lindsey partnered with AME’s executive team on investor relations and human resources initiatives. Concurrently, Lindsey founded her own San Diego-based small business focused on providing financial organizing, bill-paying, administrative and IT solutions for high-net-worth individuals and small business owners. Lindsey brings a broad and diversified set of skills to benefit the Firm, WAM clients, and prospects.
Lindsey graduated cum laude from the University of New Hampshire with a B.S. in Environmental Science and studied abroad in Granada, Spain to complete a minor in Spanish. In Fall of 2021, she received her M.S. in Enterprise Risk Management from Boston Universityff. Throughout her career, Lindsey’s continued her education in the areas of database development, cybersecurity, graphics design, and human resource management. She shares her passion for learning and community service with WAM’s team, clients, and her two children.
In her free time, Lindsey loves to run, ski, craft, and cheer on her children’s various sports teams.
Education:
University of New Hampshire, B.S. (Environmental Science), New Hampshire
Boston University, M.S. (Enterprise Risk Management), Massachusetts
Certifications:
Certificate in Front End Web Development and Design ##
Active Memberships:
San Diego Society for Human Resource Management ss
Awards & Accomplishments:
“Woman of the Year” for the San Diego Magazine Nominee
Year(s): 2017
San Diego Business Journal Women of the Year (F/K/A Women Who Mean Business) Finalist
“Woman of the Year” for the San Diego Magazine Finalist
Year(s): 2021
Kelli Burger, formerly Kelli Ruby, joined the Weatherly Team in 2011 and became a partner of the firm in 2018. Kelli’s role includes building and maintaining relationships with new clients through strategic referral channels, specifically during the client onboarding process, as well as continuing to deliver comprehensive services to existing clients. Kelli works with clients on retirement planning and develops financial plans and recommendations based on ongoing, in-depth discussions. She is also a member of the Firm’s investment committee and provides investment recommendations to build tax and fee efficient portfolios along with monitoring cashiering activities for WAM clients. Kelli also works closely with the Partners to develop and implement marketing initiatives for the Firm, which has grown to encompass social media and blogging as well as other PR mediums. Kelli is committed to mentorship and leadership at the Firm and joined the Vistage Emerging Leaders Program !!! in 2019 to enhance her skill set; she completed the program in 2021.
Kelli holds a B.S. in International Business from Xavier University in Cincinnati, Ohio. Interested in finance, Kelli pursued further education at The Ohio State University. Prior to Weatherly, Kelli had experience in the commercial real estate industry. Outside of Weatherly, Kelli volunteers in the kitchen at Father Joe’s Villages and bakes/delivers home cooked meals to local families through Lasagna Love. Kelli currently serves on the Board of the Boys & Girls Club of Vista qq and is a member of their Finance Committee. Kelli most recently serves on the board of Pawsitive Teams rr, a volunteer-run organization that trains and places service dogs with persons with special needs.
Kelli resides in Poway with her husband and son. Outside of Weatherly, she enjoys traveling, cooking and baking and is an avid reader.
Education:
Xavier University, B.S. (International Business), Ohio
Certifications:
License(s): Series 65 D
Executive Financial Planner Advanced Certificate program at SDSU=
CERTIFIED FINANCIAL PLANNER™ professional (CFP®)A
Active Memberships:
Vistage Emerging Leaders Program !!!
San Diego chapter of the Financial Planning Association (FPA)+.
Women Give San Diego zz
Awards & Accomplishments:
Five-Star Best Personal Wealth Manager Award
Year(s): 2017, 2018, 2019, 2020, 2021, 2022, 2023, and 2024
“Woman of the Year” for the San Diego Magazine Nominee
Year(s): 2017
San Diego Business Journal Women of the Year (F/K/A Women Who Mean Business) Finalist
“Woman of the Year” for the San Diego Magazine Finalist
Year(s): 2021
San Diego Business Journal’s 40 Business Leaders Under 40
San Diego Business Journal’s San Diego 500
Year(s): 2022
San Diego Magazine Celebrating Women Nominee
Year(s): 2023
Excell Represent Women in Wealth Management Award Finalist
Year(s): 2023
Investment News Women to Watch Portfolio Manager of the Year Excellent Awardee
Year(s): 2023
Brent Armstrong has been a part of the Weatherly crew since 2007 and became a Partner in 2015. He looks forward to continuing the high level of service and sophistication our clients have come to expect. Brent works closely with both current and prospective clients to best understand their financial situation, goals and concerns, in order to address those needs through creating financial plans and implementing investment recommendations. Brent is a key member of the investment committee and applies his security research to construct both new accounts and rebalance client managed accounts. As one of the main traders at WAM, he works in tandem with the other Partners to ensure all accounts have the appropriate asset allocation mix for the client’s particular situation. Brent also monitors the performance of managed accounts and maintains the composite performance for the firm. To further augment his leadership abilities, Brent joined a Key Executive chapter of Vistage!!!! in mid 2019. Brent currently serves on the board of a local child development center.
Brent received his B.S. degree from San Diego State University where he studied Business Administration with an emphasis in Financial Services. Prior to his career in Wealth Management, he worked for the Newport Beach Fire Department as an Ocean Lifeguard and Jr. Lifeguard Instructor.
Brent lives in San Diego with his wife and two children. Outside of Weatherly, Brent enjoys fishing, riding waves in Del Mar, traveling Baja or supporting SDSU Basketball.
Education:
San Diego State University, B.S. (Business Administration), California
Certifications:
License(s): Series 65 D
Exams: Series 3 (inactive)
CERTIFIED FINANCIAL PLANNER™ professional (CFP)A
Active Memberships:
ΣAE Alumni Association of San Diego
Financial Planning Association (FPA) +
Vistage Key Executive Program !!!!
Awards & Accomplishments:
Five-Star Best Personal Wealth Manager Award
Year(s): 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2024
San Diego Business Journal’s 40 Business Leaders under 40
Year(s): 2023
Carolyn P. Taylor, majority owner of the partnership, is personally and professionally committed to providing comprehensive high-quality investment management services to clients of Weatherly Asset Management. With over 39 years of portfolio management experience to high-net-worth individuals and institutional clients, Carolyn offers a wealth of investment expertise to WAM’s clients.
Under Carolyn’s leadership and strategic vision, Weatherly focuses on creating the ideal client experience and improving clients’ world through problem solving, impact and change on their business, family and community. She leads the Weatherly team by design in our industry for focusing on perpetual innovation, technology, mentoring and human capital development.
Carolyn is a founding member of National Advisors Trust Company (NATC), an advisor owned Trust Company with assets of $8 billion as of 12/31/2023. Carolyn provided a decade of service to the San Diego Foundation’s Investment Committee % and was also included in the Fidelity Investments 2017 Executive Panel 32 as a contributor on the “Attracting Women Advisors to Your Firm” article.
Carolyn is an engineer by training, having received her B.S. and B.A. from Stanford University. Her analytical training was initially as an Investment Banker in public finance for Dean Witter Reynolds, Inc. in New York. Carolyn managed over $1 billion in assets during her previous experience as a portfolio manager at Neuberger & Berman in New York and, prior to that, at Payden & Rygel Investment Counsel in Los Angeles. In June 1994, Carolyn relinquished responsibilities at Neuberger & Berman to devote her full attention as President and Chief Investment Officer at Weatherly Asset Management, which began managing client funds in December 1994. Carolyn most recently serves on the boardaaa of the San Diego Women’s Foundation.
Outside of Weatherly, Carolyn can be found spending time with her family, staying active outdoors hiking or taking an ocean swim, or enjoying a glass of wine.
Education:
Stanford University, California
B.S. – Industrial Engineering
B.A. – International Relations
Professional Development:
Vistage Executive Leadership ProgramG 2/17-12/17 through Stanford Graduate School of Business
Coursework: Strategic Leadership, The Innovation Playbook: Designing Stories for Impact and Designing Organizations for Creativity and Innovation
Certifications:
License(s): Series 65 D
Exams: Series 3 (inactive) and Series 7 (inactive)
Active Memberships:
Affiliate member of the Chartered Financial Analysts Society of San Diego B3 B4
San Diego Women’s Foundation (SDWF) # aaaand SDWF Finance Committee w
Emeritus member of the Estate Planning Council of San Diegov
The North County Estate Planning Councilww
Awards and Accomplishments:
Worth Magazine’s Top Financial Advisors List
Year(s): 2001, 2002, 2004, 2006, 2007, 2008 (the last year of the list)
Five-Star Best Personal Wealth Manager Award
Year(s): 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2024
“Woman of the Year” for the San Diego Magazine Finalist
Year(s): 2014, 2015, 2016,2017 and 2018, 2021
Barron’s America’s Top 100 Women Advisors
Year(s): 2015, 2020, 2021, 2022, 2023, and 2024
San Diego Business Journal Women of the Year (F/K/A Women Who Mean Business) Finalist
Year(s): 2015, 2016, 2017, 2018, 2019, 2020, and 2022
Forbes Best-In-State Wealth Advisor (Shook Research)
Year(s): 2019, 2020, 2021, and 2022
Barron’s Top 1200 Advisors
Year(s): 2020, 2021, 2022, 2023, and 2024
Forbes Top Women Wealth Advisor (Shook Research)
Year(s): 2020 and 2021, 2022, and 2023
San Diego Magazine Celebrating Women Nominee
Year(s): 2023
InvestmentNews Top Advisors – Year(s): 2024
Weatherly’s Accomplishments Under Carolyn’s Leadership:
San Diego Business Journal’s List of Wealth Management Firms
Year(s): 2016 (FY’15), 2017(FY’16), 2018(FY’17), 2019(FY’18), 2020(FY’19), and 2023(FY’22)
San Diego Business Journal’s 50 Women of Influence Over 50 – Year(s): 2021, and 2022
Top Wealth Manager (Bloomberg Wealth Manager)
Year(s): 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010
Financial Times 300 Top Registered Investment Advisors
Year(s): 2017, 2018, 2019, 2020
Inc. 5000: The Fastest-Growing Private Companies in America
Year(s): 2019
Financial Advisor Magazine RIA Ranking
Year(s): 2018, 2019, 2020, 2021, 2022, and 2023
San Diego Business Journal’s Best Places to Work
RIA Edge 100
Year(s): 2023
InvestmentNews – Best Places to Work
Year(s): 2023
The Bull Market Turns Nine, What’s Next?
The media and investment community have recently focused attention on the length of the current U.S. bull market with great speculation on sustainability of positive returns. The Post Crisis Bull Run is now the longest bull market in history as of August 22, 2018. However, in our view market outlook should not be based solely on length but rather formed through a well-researched understanding of fundamental macroeconomic indicators, US consumer health, corporate valuations, and the geopolitical landscape.
Context
The Great Expansion, now the second longest bull market, lasted approximately 114 months, from October 1990 to March 2000. During the 114 months period, the S&P returned 418%.
The Post Crisis Bull Run, from March 2009 to present, returned 302% on the S&P 500. In both 2011 and 2015 the market corrected due to concerns regarding the European debt crisis and global debt levels. In both cases, the market rallied and continued its upward trend.
*All figures are as of June 30, 20181
What is best? A long term view
Portfolio management and appropriate overall strategy is an ongoing and iterative process. We strive to collaborate with our clients to ensure changes to your individual situation are incorporated with our outlook to best address opportunities and risks. A steady hand and focus on the long term are key to our client’s success. JP Morgan completed a study that illustrates the importance of a consistent investment approach through volatility and the precarious challenge timing the markets. For further information, reference this link.
Weatherly takes a long term fundamental view to best position client portfolios in all market environments. Many market participants don’t know that strategic asset allocation is the primary driver of portfolio returns. A Financial Analysts Journal study found that active asset allocation accounts for approximately 93% of investment performance2. Our team analyzes markets with a top down and bottom up approach within a macroeconomic framework. We deploy tactical asset allocation decisions to make incremental changes that are consistent with each client’s unique goals, risk/return profile, and our economic outlook.
Where We’ve Been and Where We Are Now
In 2018, we have seen a disparity in investment performance across sectors. The technology sector has led the way returning approximately 21% year to date vs the S&P 500 returning 10.4% YTD. There has specifically been a tilt towards Facebook, Apple, Amazon, Netflix, and Google, commonly referred to as FAANG in 2018.
It is also important to highlight a few economic indicators to fully understand the current business cycle and 2018 market.
- U.S. Employment Rate: In May of 2018, we saw the unemployment rate reach an 18 year low of 3.8% (and 3.9% in July 2018), which suggests that we are at full employment levels. Wage growth, however, has remained low at a 2.7% rate year over year.
- Inflation Target: the early stages of inflation rising is a bullish or positive indicator for the economy as demand for products has grown and prices are increasing. The Federal Open Market Committee’s (FOMC) target inflation rate is 2% and the current annualized U.S. inflation rate is 2.9% as of July 2018.
- Interest Rates: Given the uptick in inflation, we’ve seen the Federal Reserve methodically raise short-term rates with plans to continue at the next FOMC meetings in a response to rising inflation.
- Gross Domestic Product (GDP): known as the output of a country’s economy. We have continued to see steady GDP growth with an annualized growth rate of 4.1% as of June 30, 2018. Approximately 70% of the GDP growth is due to consumer discretionary spending, which suggests that consumers are spending money, a positive economic indicator.
- Corporate Earnings: In Q1 2018, we saw corporate profits increase by 8.7% (or $153 billion) to an all-time high mainly due to the decrease in corporate tax rates to 21% from 35% under the Tax Cut and Jobs Act. The increase in corporate earnings has enabled corporations to invest funds in stock buyback programs and implementation of or increasing their dividend payouts.3
These indicators suggest that the economy is healthy, consumer spending remains steady, and we are in the late expansionary period of the business cycle. Weatherly has implemented specific strategies to position client portfolios for the current market environment, but recognize how far certain asset classes have appreciated, and are working to position clients for additional volatility in the coming years.
Strategies Implemented in 2018
- Tactical Asset Allocation and Options Strategy- Based on each client’s unique goals and risk/ return profile, Weatherly has begun to proactively shift client portfolios to asset allocation neutral in response to the rise in equities as we potentially near the end of the bull market. Our tactical asset allocation approach is two- fold. First, we have shaved down stocks that have appreciated significantly. Second, we have rotated out of specific sectors that may be negatively impacted by the current economic environment. For clients with concentrated positions, we have also utilized our covered call options strategy to reduce single stock exposure and opportunistically increase income in portfolios. Reference our covered call write-up here for further details.
- Fixed Income Strategy- The current flattening of the yield curve makes short term debt instruments attractive as investors can capture a reasonable rate of return, while reducing exposure to interest rate risk, credit risk, and inflation rate risk. Given these factors, we have proactively put funds to work in short to intermediate-term corporate and municipal bonds with maturities of 1-7 years.
- Collaborate with Your Designated Professional Advisors- We also work directly with clients’ designated professional advisors- CPAs, attorneys, other financial advisors – on tax loss harvesting strategies and giving strategies via Donor Advised Funds (DAFs) and/or Qualified Charitable Distributions (QCDs) via client’s IRA Minimum Required Distribution (MRD). These strategies can also reduce equity exposure in portfolios.
- Tax Loss Harvesting- At the end of the third and fourth quarters, we work directly with clients and their CPAs on tax loss harvesting for clients that may have a large tax bill following a high-income tax year or realizing large capital gain. This strategy involves selling securities at a loss, which allows the client to reduce capital gains tax and offset up to $3,000 of ordinary income.
- Giving Strategies- With large unrealized capital gains in client accounts, Weatherly has incorporated Donor Advised Funds (DAFS) and Qualified Charitable Distributions (QCDs) to strategically shave down these positions in client accounts. Given the unique tax implications of contributing via a DAF vs a QCD, Weatherly consults your CPAs and team of professionals to determine the appropriate giving strategies and vehicles for 2018. Please reference of Charitable Giving blog post and this link for further information on DAFs and QCDs.
Weatherly has proactively put these strategies into action based on each client’s risk-return profile and unique financial goals. Please feel free to contact us to discuss our strategy, market outlook, and your specific situation in more detail.
References
- https://www.businessinsider.com/heres-what-the-longest-bull-runs-of-the-modern-era-have-looked-like-2018-6
- http://www.grbestpractices.org/sites/grbestpractices.org/files/Determinants%20of%20Portfolio%20Performance%20II%20An%20Update.pdf
- https://tradingeconomics.com/united-states/corporate-profits
** The information provided should not be interpreted as a recommendation, no aspects of your individual financial situation were considered. Always consult a financial professional before implementing any strategies derived from the information above.
Candise Holmlund represented Weatherly in a San Diego Health Magazine article focused on planned giving. “Helping People Live Their Values” was published in the Fall 2018 issue of San Diego Health Magazine. Please find the full article located here on pages 30 and 31 of the PDF.
As a member of the Scripps Health Gift Planning Advisory Board, Candise was asked by the Scripps Health Foundation to provide her perspective of working with clients with philanthropic goals or intentions. The interview process was Q&A style focusing on planned gifts, overall financial planning in addition to trust and estate planning.
After the interview process, Weatherly had the opportunity to review drafted language proposed by the author and confirm accuracy of quotes prior to approval for publication.
It is not the intent of the article to endorse the participating businesses or to indicate quality. There was no fee to be interviewed for the article, and Weatherly was not required to advertise in, or subscribe to, San Diego Health Magazine.
No organizational memberships were required of the Firm or individuals. Inclusion in this article is not representative of any one client’s experience and is not indicative of Weatherly’s future performance. Weatherly is not aware of any facts that would call into question the validity of inclusion in this article.
About Weatherly Asset Management, L.P.
Weatherly Asset Management, L.P. is a Registered Investment Advisor, located in Del Mar, California, dedicated to providing high quality, holistic and innovative wealth management services to high net worth individuals, small businesses and institutional clients since inception of the Firm in 1994.
Our comprehensive approach to all aspects of a client’s financial life, the extensive experience of our principals, and the accessibility of experts, set us apart from other firms.
Our primary business focus is money management, with each account individually managed to maximize wealth preservation and growth over time. We also provide advice related to retirement planning, tax planning, philanthropic planning, financial planning and college planning, as well as estate planning and wealth transfer guidance. Our goal is to provide clients with as much information as necessary to effectively manage portfolios and help achieve their financial goals.
Weatherly Asset Management, L.P. is the investment advisory division of Weatherly Asset Management, Inc. As an independent partnership, the Firm is wholly owned and operated by the partnership.
For information on our wealth management team, and for a full list of services we provide, please visit: http://www.weatherlyassetmgt.com/our-team/
For information on our ADV filings and Compliance, please visit: http://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=106935
http://www.weatherlyassetmgt.com/adv/
If you would like to learn more, please contact:
Carolyn P. Taylor
858-259-4507
Carolyn@weatherlyassetmgt.com
Candise Holmlund
858-259-4507
Candise@weatherlyassetmgt.com
Weatherly Asset Management, L.P. was included in the Financial Advisor’s Magazine of 2018 RIA Survey and Ranking List. This list is the publication’s 12thannual ranking of independent advisory firms, and was published in the July 2018 issue. To view the article and list, click here.
The criteria on which the ranking was based included 1) 2017 year end discretionary and non-discretionary AUM reported on ADV; 2) % growth in assets 2016-2017; 3) average assets per client; 4) percent growth in assets per client; 5) percent change in number of client relationships. To be eligible for the ranking, firms must be independent registered investment advisors and file their own ADV statement with the SEC, and provide financial planning and related services to individual clients. Firms must have at least $50 million in assets under management as of December 31, 2017. Corporate RIA firms and investment advisor representatives (IARs) were not eligible for this survey.
The list was segmented by asset categories: 1) $1 billion and over; 2) $500 million to <$1billion; 3) $300 million to <$500 million; 4) $150 million to <$300 million*; 5) $100 million to <$150 million; and 6) <$100 million. Within each of the asset category segments, firms were ranked by criteria #1 (2017 year end discretionary and non-discretionary AUM). The comprehensive list consisted of 707 firms. Weatherly was ranked 336 overall. Of the 144 firms in the $500 million to <$1 billion category, Weatherly was ranked 61. *The print version of this list notes that firms with under $300 million that participated in the survey are visible online with the link above.
Weatherly received an email invitation to participate in FA’s annual nation-wide RIA ranking survey. Weatherly completed the survey, which in addition to AUM, focused on services offered by the firm; service fee structure; anticipated changes to the business in the next 5 years; staffing and recruiting; operations and strategy. The survey review included information provided by Weatherly, as well as public data available through the firm’s ADV filing.
No payment was required for participating in the survey. After receiving notice of inclusion in the list and list publication, Weatherly elected not to pay for electronic use or hard copy reprints.
No organizational memberships were required of the Firm or individuals. Ranking on this list is not representative of any one client’s experience and is not indicative of Weatherly’s future performance. Weatherly is not aware of any facts that would call into question the validity of the ranking or the appropriateness of advertising inclusion in this list.
About Weatherly Asset Management, L.P.
Weatherly Asset Management, L.P. is a Registered Investment Advisor, located in Del Mar, California, dedicated to providing high quality, holistic and innovative wealth management services to high net worth individuals, small businesses and institutional clients since inception of the Firm in 1994.
Our comprehensive approach to all aspects of a client’s financial life, the extensive experience of our principals, and the accessibility of experts, set us apart from other firms.
Our primary business focus is money management, with each account individually managed to maximize wealth preservation and growth over time. We also provide advice related to retirement planning, tax planning, philanthropic planning, financial planning and college planning, as well as estate planning and wealth transfer guidance. Our goal is to provide clients with as much information as necessary to effectively manage portfolios and help achieve their financial goals.
Weatherly Asset Management, L.P. is the investment advisory division of Weatherly Asset Management, Inc. As an independent partnership, the Firm is wholly owned and operated by the partnership.
For information on our wealth management team, and for a full list of services we provide, please visit: http://www.weatherlyassetmgt.com/our-team/
For information on our ADV filings and Compliance, please visit: http://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=106935
http://www.weatherlyassetmgt.com/adv/
If you would like to learn more, please contact:
Carolyn P. Taylor
858-259-4507
Carolyn@weatherlyassetmgt.com
Checklist for Career Transitions
Whether it be retirement, starting a business, being recruited to a new job or changing industries, nearly all working individuals experience a transition at some point in their careers. While new roles, responsibilities and workplace dynamics are major adjustments, career transitions also bring upon many financial considerations that deserve attention.
To help ensure that you stay on track with your long-term plan, we’ve created a checklist for career transitions to help you navigate through these times:
-
Insurance
- Health Insurance
According the United States Census, over half (55.7%) of the total population of United States have employer-based health insurance coverage. While you always have the option to get a private policy, the Consolidated Budget Reconciliation Act (COBRA) allows those in transition, as well as their spouses and beneficiaries, the provisional continuation of current health insurance if they meet qualifying events. These qualifying events each include their own maximum period of continuation that ranges from 18 to 36 months.
It should be noted that in most all cases, the insured pays for the full COBRA health insurance premiums and the (former) employer does not split any of the cost. - Life/Disability Insurance
Employers may also offer term life and/or disability policies that can help to supplement a major portion of your family’s coverage needs. Although employers will not continue to share the costs upon leaving employment, former employees may be able to maintain their current policies directly with the insurer of the policies.
Changing jobs is a great time to not only assess the potential gap that has been created in your coverage but also reassess your total insurance needs as you explore new policies.
- Health Insurance
-
Retirement Plans (401k, 403b, 457, etc.)
- Contributions
Depending on the type of plan, the IRS specifies the maximum that can be contributed to your retirement plans every calendar year. If you will be retiring, moving to an employer without a retirement plan or expect no/lower income for the remainder of the year, maxing out your retirement plan contributions prior to leaving your current company takes advantage of the waning opportunity for a tax deduction and tax-deferred growth. Even if portfolio funds or savings are needed to meet expenses, deferring all, or at least enough of your paycheck to get the employer match, can be an effective strategy as you approach the end of your tenure with your current employer.
It is important to note that the IRS contribution limit applies to aggregate calendar year contributions, not contributions per plan. If you do max out contributions before leaving an employer, be sure to not overcontribute if you participate in another plan in the same calendar year. - Rollovers
In general, employer-sponsored retirement plans have been trending in the right direction in terms of fees, services and investment options but still commonly lack transparency and overall scope that can prevent participants from maximizing the growth of their retirement savings.
Weatherly uses the service FeeX to review our client’s retirement plans to help illuminate the key factors in the plan centering around total fees, services and investment options. Completing this analysis not only provides greater transparency of those factors but to also help with the decision of whether to rollover old employer-sponsored retirement plans out of the plan and into an IRA. - Required Minimum Distributions (RMDs)
If you continue to work past the age of 70 ½ and your plan allows for it, the assets in your retirement plan are most likely excluded in the calculation of your required minimum distribution under the working exception. Should you leave your employer, this exception goes away and these assets will now be included in that RMD calculation.
This inclusion will increase the amount that the IRS requires you to withdraw from your IRA the next year which can lead to additional tax consequences. If you are working past 70 ½, it is important to understand this change so that proper tax planning can be considered.
- Contributions
-
Stock Plans/Deferred Compensation
- Stock Plans
Various types of stock plans such as Stock Options to Restricted Stock and Employee Stock Purchase Plans are common benefits that allow employees to purchase their company’s stock at a discounted rate. While this is an attractive benefit for current employees, it can create a difficult decision for those in transition.
Traditionally, former employees have up to 90 days from termination to exercise any vested incentive or stock purchase While the specific number of days may vary, this time limit puts former employees in the situation where they are forced to decide whether to let vested shares expire worthless or realize potentially significant tax consequences. This decision will be unique to each individual’s situation but if your departure can be expected or planned, strategically exercising vested shares opportunistically in advance of this forced decision may allow you to mitigate your tax consequences without leaving money on the table. - Deferred Compensation
Much of the same considerations relate to Deferred Compensation but the flexibility for these plans is commonly far less. Because Deferred Compensation Plans are essentially an agreement between you and your employer to pay income that you have earned at a later date, you are not able to disclaim these payments. This earned income must be paid out to you even if you prefer to rather not have to realize those as tax income.
Depending on the specific plan, you may still have the flexibility to spread out these deferred compensation payments or in less common situations, be forced to take your full balance as a lump sum payment in a single tax year. Weatherly can strategically plan for these various scenarios to be most useful for our client’s respective situations.
- Stock Plans
-
Severance
- Severances packages are commonly associated as an incentive for wrongfully dismissed employees to not bring suit against their former employer. However, those nearing voluntary transition may be able to leverage their situation into severance pay that can help to bridge the gap months during that transition.
Employers may provide severance packages to long-time employees who are retiring as benefit to “reward” and recognize their loyalty and hard work. Alternatively, if you are aware that your company may be restructuring, your voluntary departure may be able to be arranged as a layoff that could command a severance package.
- Severances packages are commonly associated as an incentive for wrongfully dismissed employees to not bring suit against their former employer. However, those nearing voluntary transition may be able to leverage their situation into severance pay that can help to bridge the gap months during that transition.
Career Transitions, regardless of their impetus, can bring challenges and complications. With this checklist and by leveraging Weatherly’s expertise, we seek to steady the waters and continue to create a Ripple Effect that can absorb your times of transition and maximize your specific situation.
** The information provided should not be interpreted as a recommendation, no aspects of your individual financial situation were considered. Always consult a financial professional before implementing any strategies derived from the information above.
Weatherly Asset Management, L.P. was included in the 2018 Financial Times 300 Top Registered Investment Advisers list. This list was published in print and online on FT.com, on June 28, 2018. View the list here.
The selection process for the Financial Times 300 (“FT 300”) is based on the largest independent Registered Investment Advisers across the United States that meet the below criteria:
To qualify as a candidate for the FT 300, an RIA firm must:
Manage at least $300 million in assets under management (as of 12/31/17)
Have no more than 75% of its practice’s assets be institutional
Be independent (it cannot be the RIA arm of a broker-dealer, for example)
Financial Times invited more than 2000 SEC registered RIA companies across the US who reported $300mm or more in AUM to participate in the review process. About 760 RIAs applied, and 300 made the final list.
Qualified RIAs were required to fill out an online application, and were evaluated on several factors including AUM, AUM growth rate, years the firm has been in existence, industry certifications of staff, SEC compliance report, online accessibility and other factors such that the final list should include a diverse range of practice types. AUM comprised roughly 70 to 75 per cent of each adviser’s score, while asset growth accounted for an additional 15 to 20 percent.
Additionally, FT capped the number of companies from any one state. The cap was roughly based on the distribution of millionaires across the US. The research was conducted on behalf of the Financial Times by Ignites Research, a Financial Times sister publication.
The 300 firms were listed by state and alphabetically by business name. Weatherly paid Financial Times for custom hard copy reprints and digital access after the list was published. Wealth managers do not pay a fee to be considered or placed on the final list.
No organizational memberships were required of the Firm or individuals. Inclusion on this list is not representative of any one client’s experience and is not indicative of Weatherly’s future performance. Weatherly is not aware of any facts that would call into question the validity of the list or the appropriateness of advertising inclusion in this list.
About Weatherly Asset Management, L.P.
Weatherly Asset Management, L.P. is a Registered Investment Adviser, located in Del Mar, California, dedicated to providing high quality, holistic and innovative wealth management services to high net worth individuals, small businesses and institutional clients since inception of the Firm in 1994.
Our comprehensive approach to all aspects of a client’s financial life, the extensive experience of our principals, and the accessibility of experts, set us apart from other firms.
Our primary business focus is money management, with each account individually managed to maximize wealth preservation and growth over time. We also provide advice related to retirement planning, tax planning, philanthropic planning, financial planning and college planning, as well as estate planning and wealth transfer guidance. Our goal is to provide clients with as much information as necessary to effectively manage portfolios and help achieve their financial goals.
Weatherly Asset Management, L.P. is the investment advisory division of Weatherly Asset Management, Inc. As an independent partnership, the Firm is wholly owned and operated by the partnership.
For information on our wealth management team, and for a full list of services we provide, please visit: http://weatherlystage.wpengine.com/our-team/
For information on our ADV filings and Compliance, please visit: http://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=106935
http://weatherlyassetmgt.com/adv/
If you would like to learn more, please contact:
Carolyn P. Taylor
858-259-4507
Carolyn@weatherlyassetmgt.com