Managing your wealth. Define it. Plan for it. Preserve it.

Transcription

1 hsbcpremierusa.com MKT /2011 Managing your wealth. Define it. Plan for it. Preserve it. 51 N London, UK HSBC Securities (USA) Inc. HSBC Securities (USA) Inc.

2 31 N Dead Sea, Jordan How much would it take to make you feel wealthy? Wealth means different things to different people. Only you can define how much it would take to make you feel financially secure. Whatever your idea of wealth, we re committed to helping you build, manage, and preserve it. No matter what the economic climate. No matter how the market fluctuates. No matter how your life evolves or what financial challenges you face. We believe the single most effective way to manage wealth is through sound planning. That s what Wealth Management for HSBC Premier offers. A comprehensive planning process designed to change as you do, while always keeping in mind your goals and needs.

3 13 N Bangkok, Thailand An integrated, comprehensive, holistic approach. Our aim is to help you grow and protect your money in a way that addresses every aspect of your life. With Wealth Management for HSBC Premier, investing and banking work together to your advantage. We ll help you take a careful look at where you are now and where you want to be. Through a holistic planning process, your financial life will be integrated making it easier to prioritize and coordinate important goals and decisions. You can benefit from the strengths of HSBC s vast global resources and 140 years of experience in financial services combined with the investment expertise and full brokerage services of HSBC Securities (USA) Inc.* HSBC Insurance Agency (USA) Inc.,* as well as specialists in estate preservation, are available to help you protect your money and navigate the complexities of transferring your wealth. Personalized advice, global insight, and disciplined wealth-building strategies they re all a part of your plan. From Bangkok to Brazil, we bring you the expertise of financial professionals from global HSBC resources, spanning over 85 countries and territories backed by the experience of one of the world s oldest and largest banks.

4 39 N Temple of Heaven, China A trusted team to bring it all together. Your HSBC Premier Relationship Manager and HSBC Securities Financial Advisor will work closely with you and a group of financial professionals. How we work with you In today s complex financial markets, it s not easy to choose strategies or make decisions alone. We make sure you never have to. Your core team a Premier Relationship Manager and your Financial Advisor from HSBC Securities will take the time to find out what s important to you today, and work closely with you moving forward. From ongoing insights about global markets to strategies for living well in retirement and thoughtful approaches to transferring your wealth, we can offer you the proactive and personal service you need. After an in-depth conversation to gain a true understanding of your needs, your team will help you develop a customized set of planning goals and priorities. As part of the process, when applicable, they will call on insurance and estate preservation

5 professionals for advice. Your accountants, attorneys, or other advisors should be consulted to make sure that everything is taken into consideration. Then, drawing on the considerable resources of HSBC Securities, your Financial Advisor will help you evaluate options, compare alternative scenarios, and implement the strategies that can bring your plans to life. Looking at the big picture We start by understanding who you are, and by having an overarching view of your current financial picture. You will tell us what wealth means to you what you need to feel secure. Then we will start planning to help you get there. When banking and investing collaborate under the guidance of your personal team, you ll find that your investments, cash flow, credit, and savings work together synergistically which can offer more opportunities for growing your money and moving you closer to your goals. Approaching wealth management from a larger perspective also means including insurance as an integral part of your strategy, and considering how best to transfer your wealth while paying close attention to tax issues. As with all investment decisions, the tax implications of your investments should be discussed with your independent tax advisor. We will help you look at all aspects of your financial life and address them as a whole: Do you have appropriate and adequate insurance to protect your family s income? How will you pay for your children s education while still saving for retirement? Do you have an executor or trustee in place to ensure that your influence carries forward after you re gone? Have you thought about who will take over your business? Have you thought about ways to reduce your tax liabilities? Once we have a complete financial picture, we can begin the planning process. Your financial picture INVESTMENTS BUSINESS RETIREMENT BANKING YOU EDUCATION INSURANCE TRUST & ESTATE GOALS

6 44 S Lake Ohau, New Zealand You have dreams, goals, and needs. But do you have a plan? The path to financial security becomes clearer with detailed wealth planning. Your HSBC Securities Financial Advisor will lead you through the following steps before developing planning strategies: Evaluation We will work with you to evaluate important wealth-building variables such as your future income and savings, your asset allocation choices, and the impact of inflation and taxes on your portfolio. Assessment Where do you stand today? What are your resources, liabilities, and concerns? An in-depth profile can help you focus on issues such as your risk tolerance, time horizon, liquidity needs, and the amount of diversification required to pursue your goals. Analysis Using powerful financial modeling to examine the strengths and weaknesses of any current plan, we look at alternative planning scenarios to show their respective risks and potential rewards.

7 24 S Atacama Desert, Chile Crafting Your Personal Strategy Once you clearly understand the big picture, we will help you develop a detailed game plan including changes to strengthen your portfolio, adjust risk exposure, and address important goals. Implementation To implement the agreed-upon strategies, we use specific investments drawn from the global resources of HSBC as well as respected third-party providers worldwide. Review Ongoing reviews will help make sure your strategy is meeting your goals and needs. Prior to each review, your HSBC team will discuss possible needs or opportunities, and then bring them to your attention. You can also request a review whenever you feel it is necessary. Your life. Your priorities. Your financial goals. As you move through life, there will be many milestones along the way like getting married, buying a home, or starting a family. You may be inspired to move to another part of the country or the world or to start a business. As your children grow up, you ll want to educate them well and also plan for your own comfortable retirement. We use a life-cycle approach to wealth planning recognizing that some stages will occur earlier, some later, and some may overlap. By conducting periodic reviews, we can help make sure your strategy is meeting your goals and needs. Planning helps you take each step with confidence WEALTH ACCUMULATION WEALTH PROTECTION WEALTH PRESERVATION

8 38 N Cappadocia, Turkey Accumulating and growing wealth. Rigorously screened wealth management solutions from the resources of HSBC Multimanager global intelligence. Building wealth in any market The challenges to growing your wealth successfully are many. Markets can be volatile. Currencies are unpredictable. Taxes can greatly impact how much you make and keep. Global influences cannot be ignored. 1 The world is different now. Each nation s economy is closely connected to the global economy. As we work with you to help achieve your financial goals, we believe it is more important than ever to bring you investment guidance that has no boundaries. Asset allocation is the foundation We place strong emphasis on proper asset allocation and respecting your personal tolerance for risk. Our first priority is to follow an investment strategy you are comfortable with. This holds true in every environment. Your team will help you develop a custom asset allocation model to add long-term discipline and structure to your portfolio. Selecting the right mix of assets has the potential to enhance returns while limiting risk. It can influence your portfolio s performance more than any other factor even the investments themselves.

9 However, it does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain returns. 2 Full-service brokerage and investments HSBC Securities has extensive investment capabilities and information resources to help you meet the specific objectives of your plan. Your HSBC Securities Financial Advisor will help you select from a wide range of investments, including stocks, bonds, ETFs, mutual funds, and money market funds. 3 HSBC Multimanager global intelligence HSBC Multimanager 4 is an integrated team of portfolio managers and research analysts all over the world from London to New York to Hong Kong who will help you make the most of global investment opportunities. These investment professionals screen, select, and routinely monitor third-party fund managers to identify funds that they believe have the potential to deliver consistent risk-adjusted returns going forward over a market cycle. Managed account options We offer a choice of managed account programs 5 that are monitored by HSBC Multimanager: The HSBC Managed Portfolio Account offers personal portfolio and investment management services using an investment strategy customized to your particular needs. Our Unified Managed Account (UMA) is a professionally managed investment account with enhanced flexibility and tax optimization potential that can include mutual funds and separately managed portfolios in a single account. A Separately Managed Account (SMA) is an even more flexible program that allows you to use separately managed portfolios from what we believe to be some of the most skilled investment managers to implement your asset allocation plan or to supplement your investment plan. Living life, meeting your goals, and caring for loved ones. Making sure you have what you need, when you need it. Retirement planning Determining how much income you ll need after taxes to support your desired lifestyle is the most important element of financial planning. If you want to travel after retirement, you ll obviously need more than if you prefer to stay close to home. The lifestyle you want to live will also have a bearing on when you plan to retire. Plus, you ll need to estimate the possible effects of inflation and the rising cost of medical care during retirement. Your team will help examine the variables and explore alternative strategies for building the nest egg you need to enjoy retirement your way. These may include the use of Traditional and Roth IRAs, annuities, 6 or tax-free bonds. 7 Any 40l(k)s or other employer-sponsored plans will also be factored in. No matter what you re aiming for, we can help make it easier for you to set up, administer, and enjoy the tax benefits of consistent retirement investing. Enjoying retirement As you get ready to retire, and during your retirement years, we will be there to offer guidance. We may suggest adjusting your asset allocation toward income rather than growth, or help you evaluate other strategies. When it s time to take distributions at age 70 1 / 2, we offer a complete range of services to help ensure that you have a smooth transition with possible tax benefits. It is the investor s responsibility to ensure that Required Minimum Distributions are met upon reaching age 70 1 / 2. These Required Minimum Distributions are determined by dividing the prior year-end fair market value of the retirement account by the applicable distribution period or life expectancy. Whatever your personal financial goals, we have a broad range of investments and services to help you reach them.

10 35 S Sydney, Australia All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Education planning Will you send your children to public or private schools, state colleges, or the Ivy League? Do you plan to contribute to your grandchildren s education? Answering questions like these will help establish your planning needs. The total cost of education is rising faster than inflation, and access to financial aid may be limited. 8,9 No matter which schools you choose, the expense can be substantial. The important thing is to start saving as early as possible. We can help you strategize about the best ways to meet your education goals using various tax-advantaged savings programs including the 529 College Savings Plan and the Coverdell Education Savings Account. 10 Helping you reach your goals Planning to secure your long-term future is, of course, vital. But what about your dreams for today and tomorrow? Whether you plan to move to a new home, help your children or grandchildren, travel, or even launch a new business, we can evaluate financial strategies to help you move closer to your goals. Personal dreams deserve a place in your planning process, and we can help evaluate financial strategies to make them real. Many baby boomers are funding college for their children and at the same time taking on the responsibility of caring for their parents. Trusted advisors can suggest appropriate strategies to ease the financial burden.

11 29 N Guadalupe Island, Mexico need hires Protection is paramount. Unforeseen events could affect everything you ve worked for. Make sure you re covered. Insurance strategies Whom do you have to protect? How much coverage makes sense? Knowing you ve taken steps to protect your family if anything happens to you is probably your first priority. Being prepared can remove a huge burden. That s why insurance guidance and services are an integral part of our planning process. Your HSBC Securities Financial Advisor will consult with knowledgeable specialists from HSBC Insurance Agency (USA) Inc. on your behalf. You ll want to make sure you re adequately covered to protect against a sudden loss of income. Because many of us are living longer today, it s very important to consider the financial cost of long-term care for yourself or your loved ones. Without a plan in place, medical expenses could undo a lifetime of wealth building. You can rely on us for unbiased advice. We ll help you decide how much and what kind of coverage is optimal and present a number of options from top-tier carriers.

12 55 N Edinburgh, Scotland Preserving your legacy. Tax-efficient techniques are essential to protect your estate. Planning to transfer your wealth Strategies to help you transfer your wealth require forethought. You ll want to start planning early. Do you have a will, power of attorney, and health care proxy in place? Does the titling of your assets best serve your beneficiaries needs? How can you best protect your estate from erosion? These and other questions must be addressed. We want you to decide how your assets are divided not have it decided for you. Your HSBC Securities Financial Advisor understands the complexities you face. By working with your Financial Advisor, as well as your trust advisors, you can take advantage of proven techniques for transferring your wealth, both during your lifetime and through your estate. Using wills, trusts, and insurance may help ensure that your wishes for family and philanthropy are honored. All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.

13 49 N Vancouver, Canada Addressing the unique needs of your business. Your HSBC team will guide you through the challenges you face. Financial security. You can get there from here. Whatever wealthy means to you our plan is to help you get there. Business Banking solutions Your passion has produced a growing or established business. Taking care of the underpinnings that support it is vital to its smooth running and continued success. One of the major decisions you face as a business owner is what kind of retirement plan to select whether it s a 401(k), SEP, or SIMPLE IRA. We can help you set up and administer the plan that works best for you, your employees, and your business. Many business owners haven t fully considered how much the success of their company rests on a pivotal employee. Key Person Life Insurance can protect against substantial losses to your business if you or a valuable employee should die unexpectedly. Similarly, you will need a plan to transfer your business. Who will run your business when you re gone? Will it be left to family or to current partners? Or will it be sold? Your business may be the single largest asset in your estate, and you ll want to ensure a smooth transition. We can help support and guide you in all these areas, leaving you free to concentrate on the business at hand. Growing, managing, and preserving your wealth as life evolves and markets fluctuate can seem overwhelming at times. But not when you have your personal team of experts and specialists to guide you. Sound financial strategies are at the heart of everything we offer. We will focus our global and local expertise on helping you achieve the level of wealth you desire based on your needs and goals. Speak with an HSBC Premier Relationship Manager or HSBC Securities Financial Advisor at your local branch or by calling , or go to hsbcpremierusa.com.

14 1. Foreign securities carry special risks, such as exposure to currency fluctuations, less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, volatility, and potentially, less liquidity. 2. Asset allocation is a method of diversification that positions assets among major investment categories. This tool may be used in an effort to manage risk and enhance returns. However, it does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain returns. 3. Mutual funds, money market mutual funds, and Exchange Traded Funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your Financial Advisor. Read it carefully before you invest. 4. HSBC Multimanager is a research and asset management capability utilized by certain HSBC companies in various regions around the world. In the U.S., the company offering these capabilities is HSBC Global Asset Management (USA) Inc. 5. Managed Account programs may not be suitable for all investors. This material has been prepared for informational purposes only without regard to one s investment objectives, financial situation, risk tolerance, or other relevant factors. This is not a recommendation for any particular investment product or strategy. HSBC Global Asset Management (USA) Inc. serves as investment advisor for the World Selection Spectrum Account as well as the HSBC Investor Funds, which may be among the underlying investments in the aforementioned services. Certain HSBC Investor Funds also have sub-advisors, not affiliated with HSBC, with an investment specialty that is appropriate for the asset class represented by that fund. Both HSBC Global Asset Management (USA) Inc. and the sub-advisors receive a fee for their investment services in respect of such funds separate from the fee charged for the World Selection Spectrum Account program. In addition, HSBC Global Asset Management (USA) Inc. and its affiliates may receive administrative and other fees in respect of the HSBC Investor Funds. Mutual funds outside of the HSBC Investor Funds family are offered as options in World Selection Spectrum Accounts and may be advised by investment managers affiliated or unaffiliated with HSBC Global Asset Management (USA) Inc. Fees payable in respect of such funds are also not included in the fee charged for the World Selection Spectrum Account. HSBC Investor Funds are distributed by Foreside Distribution Services, L.P., which is not afiliated with HSBC Global Asset Management (USA) Inc. 6. Investments in variable products will fluctuate and values upon redemption may be less than the original amount invested. Variable annuities are designed to be long-term investments and frequently involve substantial charges such as administrative fees, annual contract fees, mortality and risk expense charges, and surrender charges. All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Early withdrawals may impact annuity cash values and death benefits. Early surrender charges may also apply. An additional 10% IRS penalty may apply to withdrawals prior to age 59 ½. If you are investing in a variable annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a variable annuity. Under these circumstances, you should consider buying a variable annuity only if it makes sense because of the annuity s other features, such as lifetime income payments and death benefit protection. Features that provide lifetime income are optional and can be purchased at an additional cost. For more complete information, contact your Financial Professional to obtain a current prospectus. Please read the prospectus carefully before investing or sending money. 7. Certain investors incomes may be subject to the Federal Alternative Minimum Tax (AMT), and state and local taxes may apply. 8. The College Board, Trends in College Pricing, annual editions: about/news_info/trends/trends_pricing_07.pdf 9. Consumer Price Index published by the Bureau of Labor statistics, U.S. Department of Labor: Sales tax treatment of 529 Plans varies from state to state and can be a major factor in deciding which plan to select. Broker-sold plans often contain sales loads and higher fees and expenses than direct-sold. United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-u.s. accounts including, for example, Form TD F (Report of Foreign Bank and Financial Accounts ( FBAR )). U.S. persons should consult a tax advisor for more information. Securities and Annuity products are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc. In California, HSBC Securities (USA) Inc., conducts insurance business as HSBC Securities Insurance Services. License #: OE Insurance products are offered through Insurance Agents of HSBC Insurance Agency (USA) Inc., a wholly-owned subsidiary of HSBC Bank USA, N.A., and an indirectly whollyowned subsidiary of HSBC Holdings plc. Products and services may vary by state and are not available in all states. California license #: OD *Securities, Annuity and Insurance Products are: Not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and subject to investment risk, including possible loss of principal invested. All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Deposit products offered in the U.S. by HSBC Bank USA, N.A. Member FDIC HSBC Bank USA, N.A.