The Meritage Group at Morgan Stanley. Our Signature Blend of Financial Services

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1 The Meritage Group at Morgan Stanley Our Signature Blend of Financial Services

2 250 S PARK AVE STE 500, WINTER PARK, FL / MAIN / TOLL-FREE Kevin.P.Barry@morganstanley.com Matthew.Scott@morganstanley.com Jacqueline.Diaz@morganstanley.com Andrea.Lutchmidat@morganstanley.com

3 The Meritage Group at Morgan Stanley Are you a stock or a bond? Your income is cyclical. Furthermore, your highs are exhilarating but your lows can be a bit frightening. You re a stock. Your income is consistent, without significant fluctuation from year to year. You re a bond. At the Meritage Group at Morgan Stanley, we work primarily with entrepreneurs successful business owners and sales people whose income ebbs and flows, depending on prevailing conditions, and whose expenses remain relatively constant. We help them develop strategies to level their cash flow, so they can put more assets to work in prosperous times, while striving to immunize them against the combination of difficult business conditions and pressing expenses. We take our name from the Meritage method of creating superior, hand-crafted wine by blending various varieties of grapes under strict standards. Our approach is different from that of many Financial Advisors, but so is our clientele. THE MERITAGE GROUP 3

4 Meet the Professionals Kevin Barry, CPWA, CFP Senior Portfolio Manager Vice President Wealth Advisor Kevin Barry has always been a stock. He realized soon after joining Morgan Stanley in 1999 that people like him are especially vulnerable to macro economic trends and market fluctuations. As a result, he decided to do something about it. Kevin established The Meritage Group with Matt Scott to serve the specific needs of entrepreneurs with cyclical income. He was recently named a Premier Wealth Advisor by the National Association of Board- Certified Advisory Practices (NAB- CAP) in This independent, non-profit organization identifies advisors through a multi-step, objective evaluation process in which 20 categories of practice management are assessed. Kevin has also earned the following prestigious industry 4 MORGAN STANLEY

5 designations: Certified Private Wealth Advisor SM (CPWA ) Certified Investment Management Analyst SM (CIMA ) CERTIFIED FINANCIAL PLANNER Practitioner (CFP ) A graduate of the University of Florida, Kevin has spent most of his life in central Florida. He is active in Leadership Winter Park and supports the Arnold Palmer Children s Hospital and Winnie Palmer Hospital for Women and Babies. Kevin is the father of four children, including triplet boys. He and his wife, Diane, reside in Winter Park. Matthew Scott, CFP Financial Advisor Matthew Scott joined Morgan Stanley as an intern during his senior year at the University of Central Florida. Almost a decade later, he is still here serving Meritage Group clients as a Financial Advisor. Matt is the team member primarily responsible for cash flow analysis and asset-liability management. He also plays a major role in the team s portfolio analysis efforts and serves as our go-to source for financial planning formulation. A resident of College Park, Matt earned his B.S. in Business Administration with a concentration in Economics and Finance from the University of Central Florida. He was awarded the prestigious CERTIFIED FINANCIAL PLANNER Practitioner (CFP ) designation and continually strives to broaden his expertise by furthering his education and enhancing his credentials. Matt volunteers his time and talents with a variety of local organizations, including the Orlando Young Professionals Leadership Group where he currently serves as Past- President/Advisor. He is also an active member of Florida Citrus Sports and a Director of the Wharton Community Alliance which supports fledging non-profits throughout Central Florida. THE MERITAGE GROUP 5

6 THE MERITAGE GROUP at Morgan Stanley Our Signature Blend of Financial Services What makes you unique? You re a successful business owner, while your spouse is an executive at a publicly owned company. Your primary investments might include a 401(k) plan, IRA and several rental properties. It s 2009 and the real estate bubble is bursting. Your biggest client hasn t paid you in two months. Your spouse is worried about layoffs. Your properties are experiencing vacancies. And you need cash to pay for your daughter s wedding and son s first year of law school...except your bank has frozen your home equity line of credit and you can t withdraw assets from your 401(k) or IRA without incurring tax liability and penalty charges. Admittedly, this is an extreme example, but the combination of black swan events, unforeseen business conditions and significant expenses can compel you to take measures that might impact your future financial security. What makes us unique? At the Meritage Group, we help our clients create strategies that address both sides of their personal balance sheets and every aspect of their finances. We ll help you learn how to create liquidity, build sufficient cash reserves and manage your debt, as well as invest for your specific lifestage and circumstances. Our approach is customized and comprehensive. It includes: Discovery Like many Financial Advisors, we get to know who you are as an individual, as well as an investor, before we make recommendations. Our approach, however, goes even deeper. We look at the way you make and spend money what you do when your income is substantial, how you cope with abnormally high expenses when they occur and whether you will require cash for specific future objectives. From our discussions, we create sample scenarios that illustrate the possible risks you face and provide you with insights on how to help mitigate them. Strategy We believe that individuals with cyclical income require investment strategies differentiated by time horizon and/or objectives. For suitable investors, these may include: A Base Layer that seeks to provide you with liquidity when expenses are high and income is not. This component of the strategy may consist of short-term tax-free investments that you can use to help supplement your income or reinvest as appropriate. A Savings Layer that is earmarked for specific objectives like college tuition, the purchase of a home or maybe the special vacation you ve been promising yourself for too long. This component of the strategy can be funded by investments designed to provide a conservative blend of growth and income securities. A Longer-Term Layer may be appropriate, depending on your age and plans for retirement. Typically, this layer contains equity-based strategies to help address your needs at various retirement stages. 6 MORGAN STANLEY

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8 Beyond Investing Our comprehensive approach may also include strategies designed to supplement your income when necessary and help reduce costs. Often, these ideas fly in the face of conventional investment guidance because of the unique clientele we serve. For example, do you contribute the maximum to your 401(k) each year, only to find that you can t access assets when unforeseen expenses arise? Do you automatically participate in your employer s stock purchase plan because you receive a discount? What about your portfolio is it dominated by your employer s stock or does it contain alternative investments and annuities, as well as stocks, bonds and cash? At the Meritage Group, we offer practical advice that can help you take full advantage of your business successes while striving to cushion the shocks of sporadic earnings and volatile markets. 8 MORGAN STANLEY

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10 Art, Science & Service At the Meritage Group, we blend three key ingredients for our unique delivery of financial services: * Art it s the big picture, intuitive, imaginative, thinking we do. * Science it s the logical, sequential, and analytical work we do. * Service it s caring for the financial well-being of our clients and their families. To learn more about our comprehensive approach, contact us at (407) for a complimentary consultation. 10 MORGAN STANLEY

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12 * Source: NABCAP: "Premier Wealth Advisors", Orlando Business Journal, July 6, 2012, Over 5000 direct contacts and over indirect contacts were made to seek participation and/or nomination of participants in the Premier Wealth Advisor Program. The number of individuals contacted varies based on the size of the local market. NABCAP uses a methodology that it has created that includes both quantitative and qualitative criteria including, but not limited to financial planning, education, experience, and compliance record. NABCAP contracts with Rank Premier Advisors to administer its evaluation process. NABCAP's evaluation and ranking program (including the evaluation and validation process and the list of NABCAP Premier Advisors) is an independent thirdparty assessment based on objective, unbiased questions ("Program"). The Program is structured to ensure a comprehensive and objective evaluation of financial advisory practices. NABCAP's methodology includes, but is not limited to (i) average assets per client, (ii) average number of clients per advisor, (iii) financial advisor to support staff ratio, and (iv) financial advisor and support staff credentials/designations. For more information on NABCAP's methodology go to nabcap.org. Premier Wealth Advisors do not pay a fee to be included in the final list of NABCAP Premier Wealth Advisors. The overall evaluation score of a wealth manager may not be representative of any one client's evaluation. The inclusion of a wealth manager on the list should not be construed as an endorsement of the wealth manager by NABCAP or the Orlando Business Journal. The rating is not indicative of the Financial Advisor's future performance. Morgan Stanley Smith Barney LLC offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please visit us at or consult with your Financial Advisor to understand these differences. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Morgan Stanley Wealth Management recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor s individual circumstances and objectives. Equity securities may fluctuate in response to news on companies, industries, market conditions and general economic environment. The value of fixed income securities will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value. Interest on municipal bonds is generally exempt from federal income tax; however, some bonds may be subject to the alternative minimum tax (AMT). Typically, state tax-exemption applies if securities are issued within one s state of residence and, if applicable, local tax-exemption applies if securities are issued within one s city of residence. The tax-exempt status of municipal securities may be changed by legislative process, which could affect their value and marketability. The value of fixed income securities will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ( Morgan Stanley ), its affiliates and its Financial Advisors do not provide tax or legal advice. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals are urged to consult their personal tax or legal advisors to understand the tax and related consequences of any actions or investments described herein. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP, CERTIFIED FINANCIAL PLANNER and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board s initial and ongoing certification requirements. Investment Management Consultants Association, Inc. owns the marks CPWA, Certified Private Wealth Advisor SM and CIMA, Certified Investment Management Analyst SM (with graph element). Morgan Stanley Financial Advisors do not provide tax or legal advice. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters. Morgan Stanley Smith Barney LLC offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please contact us to understand these differences. Morgan Stanley Smith Barney LLC is a registered brokerdealer, not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking-related products and services. Unless otherwise specifically disclosed to you in writing, investments and services offered through Morgan Stanley are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, banks and involve investment risks, including possible loss of principal amount invested. Asset allocation and diversification do not guarantee a profit or protect against loss Morgan Stanley Smith Barney LLC. Member SIPC /2013 CRC