Business Executive Services. Making Wealth Work for the Business Executive

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1 Business Executive Services Making Wealth Work for the Business Executive

2 Work Business Executive Services (BES) was created to help unleash the full power of your company s benefits and compensation programs.

3 Life Connecting life with work and making the two work as one is what BES is all about. MORGAN STANLEY SMITH BARNEY/01

4 Business Executive Services The Program No asset is more important to your organization than your people. That s why you ve spent so much time and effort developing employee benefit plans and compensation programs to reward and retain them. Business Executive Services (BES) was created to help unleash the full power of the benefits and compensation programs you have established. It is designed to help executives learn how to use these programs more effectively by understanding how they fit in the context of their overall wealth. It provides them with a comprehensive approach to both sides of their personal balance sheet and includes both educational and advisory services. It offers all the resources you would expect from a firm like Morgan Stanley Smith Barney and delivers them through a uniquely personal experience a relationship with an experienced Morgan Stanley Smith Barney Financial Advisor. Our Financial Advisors are committed to educating your executives about the choices that are available to them and helping them make the choices that will lead to increased financial security. The Process The BES process begins with an in-depth conversation between your executive and a Financial Advisor, but not about the markets. Instead, the discussion will go beyond investments and burrow deep into what the executive cares about like what he always hoped to give his family, or the lessons of success she wants to pass to her children. The Financial Advisor may consult with wealth management experts from around the firm to create customized strategies that address such varied disciplines as: Comprehensive Wealth Management and Implementation Lifestyle Management Asset Protection and Risk Management Income and Cash Flow Asset Management Retirement Planning Importantly, the strategies will provide the executive with a comprehensive overview of his or her finances and recommendations that are formulated to address specific issues in a coordinated manner. Your executives will gain a greater understanding of the context in which they must make individual decisions and how those decisions might affect other aspects of their overall strategy. 02/MORGAN STANLEY SMITH BARNEY

5 Morgan Stanley Smith Barney Financial Advisors have many tools and resources to help your executives reach their financial goals while avoiding risks unique to them. Through our experienced Financial Advisors, these resources will be available to your executives, enabling them to focus on conducting company business rather than being distracted by ongoing personal wealth concerns. For each of your executives, a Financial Advisor can create a customized, comprehensive financial plan that can include the following analyses: net worth, asset allocation, retirement, education funding, retirement plan distribution, insurance and estate planning analyses complimentary to your executives. Using these programs (detailed below), our Financial Advisors can use the information your executives provide to recommend a thorough, integrated financial plan delivered in one customized report. Net Worth Analysis Assessing an executive s current financial position is the first step in developing a plan designed to help meet future financial goals. The Net Worth Analysis can help our Financial Advisors review current circumstances by taking inventory of assets and liabilities to calculate total net worth. From there, the Financial Advisor will help your executives evaluate their debt structure, optimize or reduce their debt and project net worth over time. Asset Allocation Analysis Financial Advisors can use the Morgan Stanley Smith Barney Asset Allocation Analysis to design investment strategies and appropriate asset allocation for various portfolios, such as an executive s retirement account, a portfolio of taxable assets or a child s education fund. In formulating an asset allocation strategy, our Financial Advisors consider the executive s objectives, risk tolerance and time horizon. Education Funding Analysis The Morgan Stanley Smith Barney Education Funding Analysis enables Financial Advisors to analyze an executive s current investments and the projected costs associated with his or her children s education. The Education Funding Analysis will estimate how much is needed on a monthly, annual or lump-sum basis to meet the desired funding goal and assess whether or not a shortfall exists. Our Financial Advisors can then recommend investment strategies designed to help meet the shortfall and reach that educational funding goal. Insurance Analysis The Insurance Planner helps calculate the need for three types of insurance: Life, Disability and Long Term Care. Our Financial Advisors can then prepare a custom Insurance Analysis for your executives, outlining potential liquidity needs and offering insurance strategies aimed at meeting those needs, such as funding for retirement goals, salary replacement and potential estate tax liability. The Insurance Analysis does not discuss specific insurance products or carriers. It was designed to help evaluate liquidity needs, plan for wealth preservation and discuss risk management strategies based upon each executive s unique financial circumstances. Distribution Analysis The Morgan Stanley Smith Barney Distribution Analysis was designed to help individuals make informed decisions about the distribution of their retirement funds from employer-sponsored retirement plans or IRAs. Our Financial Advisors can use the Distribution Analysis to illustrate qualified plan distributions, substantially equal payments, distributions after age 59 1/2 and required minimum distributions. For each method, an analysis illustrates projected payouts and tax implications. Retirement Analysis With the Retirement Analysis, Financial Advisors can evaluate your executive s current financial situation, analyze cash flow, identify sources of income, estimate the future value of investments and recommend savings amounts and rates of return needed to achieve future retirement goals, based upon information supplied by the executive. Estate Planning Analysis Your senior executives may be particularly impacted by estate tax. Using the Estate Planning Analysis, our Financial Advisors can identify specific strategies to help executives reduce their estate tax burden and pass the maximum amount of assets to beneficiaries. The Estate Planning Analysis details gifting strategies, liquidity needs and the taxation that affects retirement plans at death. MORGAN STANLEY SMITH BARNEY/03

6 Retirement Planning Your executives need the guidance of an experienced Morgan Stanley Smith Barney Financial Advisor to connect all the pieces of their financial life with a comprehensive plan of action that is designed to put them on the path to the retirement they envision. Assess lifestyle goals and interests Designate appropriate beneficiaries Formulate a retirement income plan Analyze pension payout options Determine when to start collecting Social Security benefits Review their plan on an ongoing basis Asset Protection and Risk Management Our resources and expertise will help your executives identify threats that can put their goals at risk and provide strategies for building and protecting wealth. Develop strategies to help protect their cash flow and income Diversify and monetize illiquid assets Create a plan for efficient transfer of wealth to heirs or charity With the right advice, a sense of control Asset Management Morgan Stanley Smith Barney Financial Advisors will provide your executives with investment expertise that integrates their company benefits with the rest of their portfolio to develop a strategy that coincides with their overall wealth management plan. Manage cash Develop an asset allocation aimed at optimizing their portfolio Implement an investment policy statement Create investment strategies that manage capital gains, gifts and income taxes 04/MORGAN STANLEY SMITH BARNEY

7 Lifestyle Management Your executives need to keep a life-work balance by setting lifestyle goals that include a holistic view of their finances, family and cherished causes, while planning for taxes. Plan for their personal goals buying a vacation home, traveling or a special event Make gifts to family Fund family or charitable trusts Coordinate philanthropic goals Develop and implement wealth transfer and legacy strategies The right advice makes wealth work for your executives. Income and Cash Flow Within an overall wealth management plan, your executives will be able to manage their assets to fund their immediate needs. Develop and implement a cash flow strategy Fund large-ticket purchase Pay education expenses Locate resources to buy, build, renovate or refinance a home. Pledge collateral to assist family members Create strategies for guaranteed retirement income Comprehensive Wealth Management and Implementation Effective wealth management begins with a plan that unifies one s income, benefits, assets and liabilities into a comprehensive strategy that makes their wealth work for them. Define personal philosophies and objectives Preserve two valuable resources: time and money Get organized to provide simplicity and help ensure implementation of developed strategies Augment existing relationships with a single point of contact a Morgan Stanley Smith Barney Financial Advisor MORGAN STANLEY SMITH BARNEY/05

8 Diversification does not ensure against loss. Unless you are otherwise advised in writing, Morgan Stanley Smith Barney LLC is acting as a broker-dealer and not as an investment adviser. Morgan Stanley Smith Barney LLC and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer s particular circumstances from an independent tax advisor Morgan Stanley Smith Barney LLC. Member SIPC. KP / JV