Strategic. partnerships

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1 Strategic partnerships Investment management tax efficiency legal structure risk management MONTI, THOMPSON & GETTY Partners to Leading Accounting and Law Firms

2 Monti, Thompson & Getty (MTG) is in the business of establishing strategic partnerships with prominent law and tax advisory/accounting firms to create and provide a specialized practice area within the firm to deal with the financial concerns (investment, tax, legal and risk management planning) of the firm s clients. We have particular expertise in specialty concepts such as: captive insurance companies to provide needed tax and risk reduction for high income entrepreneurs and professionals, above and beyond that provided by more traditional strategies; domestic and offshore trust planning for creditor protection; and tactical asset hedging to provide a consistency of return unachievable through normal diversification.

3 Why Work with Monti, Thompson & Getty? Prospective clients frequently ask, I have an advisor, money manager or other consultant. Why would I want to have a conversation about how my financial affairs are being handled? Our response to families, business owners and professional practitioners focuses on four issues: 1. Coordination of all major financial silos : investment, tax, legal, and risk management, is lacking. As a result, meaningful cost efficiency and coordination is never achieved, as each provider tends to be a separate, distinct profit and planning center. 2. Tax efficiency is rarely achieved under traditional client service models, including faux wealth coordination models, owing to the lack of close coordination of the relevant disciplines. This problem is especially acute within the investment silo. 3. The investment process is greatly misunderstood by investment advisors and their clients. We need look no further than the past ten years to see proof of this painful lesson. Undisputed empirical evidence now shows that traditional diversification of securities and asset classes does not protect portfolios in substantial down markets. 4. Personal and business plans are often disjointed and fail to adequately address complementary goals such as business continuity, tax savings and control. In addition, the ongoing administration of these plans is ignored. Monti, Thompson & Getty provides true coordination & cost effectiveness. Monti, Thompson & Getty is a true multidisciplinary practice. We possess the expertise and experience, as well as the legal and regulatory authority, to design, coordinate and implement the relevant disciplines to achieve cost and tax efficiencies which result in desirable client outcomes. page 3

4 The monti, thompson & Getty client Management Process Provide bundled services to clients Enhance after-tax, after-expense dollars MTG Monti is Thompson unique in & its Getty ability is unique to deliver in its a ability true, to deliver personal the personal CFO solution. CFO solution. Investment Management Tax Efficiency Legal Structure Cost efficiencies Coordination of all relevant disciplines Completely independent advice Risk Management Irrespective of planning strategy; e.g., business, personal, charitable, estate, the client goal is always the same maximize after-expense, after-tax dollars. In order to maximize after-expense, after-tax dollars, we analyze investment, tax, legal and insurance issues in a coordinated fashion, since these overlap and are interrelated. Only a specialty practice of licensed attorneys, investment advisors, and insurance specialists can work in all these areas. No traditional wealth bank, brokerage house, financial advisor or investment manager can provide this complete and sophisticated approach. MTG is unique in its ability to deliver a true personal CFO solution because of its specific licensing and structure. Through its unique positioning, MTG can provide true coordination of all disciplines and create significant cost efficiencies since not every practice area must be an independent profit center. Clients deal directly with the principals of the firm. We are entrepreneurs and business owners, just like our clients. Our clients do not deal with salespeople masquerading as independent technical advisors. page 4 page 4

5 monti, thompson & Getty LEVELS OF CLIENT RELATIONSHIPS PERSONAL CFO Personal cfo Complete Coordination of all Financial Disciplines Net Worth and Cash Flow Analysis Tax Planning and Return Preparation Investment Policy Development and Asset Risk Allocation Investment Advisory Services Insurance Audit Estate Planning and Analysis Business Succession and Sales Strategies INVESTMENT ADVISORY SERVICES INVESTMENT ADVISORY SERVICES Money Manager and Consulting Performance Evaluation and Monitoring Investment Policy Development Asset Risk Allocation ASSET MANAGEMENT ASSET MANAGEMENT Portfolio Management Private Equity Hedge Funds Derivatives Private Placement SPECIALIZED STRATEGIES SPECIALIZED STRATEGIES Captive Insurance Foreign and Domestic Trusts FLP Administration Concentrated Positions Legal and Tax Structures page 5

6 Monti, Thompson & Getty achieves MTG is balanced unique in risk its ability exposure to deliver across asset a true, classes and personal employs CFO asset solution. hedging strategies. Monti, Thompson & Getty Investment Philosophy Our proven philosophy: MTG is a core asset manager. We are architects who construct portfolios to generate return and manage risk around a client s individual profile. We recommend that clients use stockbrokers or other resources for their non-core investing. Traditional investment diversification doesn t accomplish its goals; i.e. to minimize risk in volatile markets. Diversification is failing because of low asset correlation asymmetry, as shown when both the U.S. and World (excluding U.S.) markets were more than one standard deviation above their mean, the correlation was 35%. When the markets were down substantially, the correlation rose to an astounding 85%. The same holds true with diversification by style (growth vs. value) and by size (small vs. large cap). A buy-and-hold strategy is based on a theory of a stable and ever-expanding U.S. and world economy. It also assumes that markets will operate efficiently in the future. As evidenced by the turmoil over the past decade, our financial structures are more fragile, and the global economies more fluid, than assumed. Active management of efficient asset classes such as large cap value cannot be expected to produce Alpha. As a result, the cost of active management for certain asset classes is not well rewarded. Active tax management strategies such as wash sale coordination and active tax loss harvesting will increase real portfolio return. Financial advisors and their clients either fail to understand or manage in accordance with the foregoing beliefs. As a result, common portfolio design ignores systematic risks. How We Do It: The MTG process starts with technical analysis of the client s portfolio. Our X-ray reveals inefficiencies in the risk-reward and asset mix balance. In order to achieve balanced risk exposure we: Use a proprietary matrix that maps from asset classes to rewarded risks; and Address systematic risk by achieving a balanced risk (not capital) exposure across asset classes and employ asset hedging strategies. page 6 page 6

7 Donald P. Monti, JD, CFP Principal, Managing Director Don has spent over thirty-five years as a practicing attorney and financial advisor, as well as a consultant to financial services companies. These clients have ranged from individuals and closely held companies to multi-billion dollar corporate giants. He is a registered representative of The Leaders Group, Inc., a FINRA member broker-dealer. Don obtained his education from Carnegie Mellon University (BS) and Duquesne University School of Law (JD) and is a member of the Pennsylvania and Florida Bars. He is the former president of Performance Evaluation Consultants, Inc., a Registered Investment Advisor. Don is also a Certified Financial Planner (CFP ). He is a decorated combat veteran of the Vietnam War (Capt. U.S. Army, Combat Engineers; Bronze Star recipient). He is a featured speaker at many conferences and symposia and is a contributor to the comprehensive financial planning book WEALTH: Enhancement and Preservation. Don specializes in designing and coordinating financial strategies for high net worth families, businesses and professional practices. Daniel J. Thompson, JD Principal Dan has been in the financial services industry since He is a founding principal of the firm and works with both individual and business clients across all four areas of core planning to provide sophisticated investment, legal, tax and risk management strategies. Dan is a registered representative of The Leaders Group Inc., a FINRA member broker-dealer. Dan also works closely with our tax and legal firm constituents, helping them create a separate practice area through successful integration of MTG s unique silo of specialties. This integrated process allows for the allied firms to present the most complete financial, legal, tax and risk management planning models available anywhere in the marketplace to their clients. Dan received his education from Washington & Jefferson College (BA) and the University of Pittsburgh School of Law (JD). Jeffrey T. Getty, J.D., MS(Tax), CFP, AEP Principal, Director of Tax and Business Strategies Jeff has been in the financial services industry since Prior to joining MTG, Jeff was the Director of Wealth Strategies for the 8th largest bank in the U.S. and president of its Delaware trust company. He is experienced in developing, implementing and managing sophisticated wealth strategies, including captive insurance companies, domestic and foreign asset protection trusts, family limited partnerships and concentrated positions. Jeff has also managed and developed strategic alliances with attorneys and other professional advisors across the country for wealth management, asset protection and related financial and business matters. Jeff is a nationally recognized author and speaker on sophisticated estate planning and asset protection planning. He has spoken at a number of professional forums and his articles have appeared in Trusts & Estates Magazine, The Asset Protection Journal, PA Banker, The National Accountancy Journal and Trusts & Investments. Jeff is one of the authors of a book on asset protection titled Asset Protection Strategies Planning With Domestic and Offshore Entities (Volume II). Jeff received his education from the College of Charleston (BA), the University of Pittsburgh School of Law (JD) and Duquesne University (MS Taxation). He is admitted to the Pennsylvania Bar, is a Certified Financial Planner (CFP ) and an Accredited Estate Planner (AEP). Robert G. Beaves, JD, PhD, CFP Director of Investment Strategies Bob is a former practicing attorney and corporate CFO who has spent thirty years teaching investment management at the University of Iowa and Canisius College, and now at Robert Morris University. He came to Pittsburgh in 1993 to head RMU s finance department, returning to the faculty after six years in that position. He is a registered representative of The Leaders Group, Inc., a FINRA member broker-dealer. Bob has testified in various legal actions regarding economic damages and business valuation. He has authored numerous academic publications on asset valuation methods, interpreting rates of return, commercial bank investments, financial analysis and tax. Bob received his education from Loras College (BS), the University of Iowa College of Law (JD) and the University of Iowa Graduate School (PhD Finance). He is a Certified Financial Planner (CFP ), a member of the Financial Management Association, and has been a licensed attorney in Minnesota and New York.

8 MONTI, THOMPSON & GETTY Partners to Leading Accounting and Law Firms 535 Smithfield Street, Suite 2428 Pittsburgh, PA P: F: MTG does not provide legal or tax advice. All duly qualified associates of MTG provide such advice either through their current firm or as an independent legal or tax advisor. Securities and Investment Advisory Services offered through The Leaders Group, Inc. Securities Dealer, Member FINRA/SIPC; TLG Advisors, Inc. Registered Investment Advisor; 26 W. Dry Creek Cir., Ste. 575, Littleton, CO 80120, (303) Monti, Thompson & Getty. All Rights Reserved.