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Tired of the usual financial advisor products and poor wealth management results here in Austin, TX?

Want something different, better?

How about world-class market experience, active attention to your account, and a different investment management philosophy?

Call Greg Knox now for a free financial planning consultation- (512) 961-3400.

 


                                                                                                                                                                                                                                                                                       Fee Based Financial Advisor

As a fee based financial advisor in Austin, we do not receive any compensation other than from our investor.  This is different from a broker, as they may be compensated differently by their firm for pushing certain products, such as certain mutual funds, and receiving compensation from those mutual funds for favoring their products, even though they may not be the best mutual funds for the investor.  Many investors like the fee based model, as they feel this eliminates many conflicts of interest that a broker may have.  Registered investment advisors and especially fee based advisors have a fiduciary duty to provide what is best for their client, which is not the same standard that a broker, working at  a broker/dealer is held to.

Financial Planning

Financial Planning is a very important part of what we do for our clients as a financial planner.  A good financial plan is going to help you as the client figure out a few things about where you want to go with your financial goals.  For instance, a good question to ask is how old you would like to be when you retire?  Some successful clients want a chance to retire early, but are afraid of outliving their cash and investment supply.  Some things to think about are likely life span and your family medical history.  Since people are living longer and longer these days, many clients are starting to re-think how much money they will need for retirement and working a few extra years.  Also, having the right-long term care insurance can also play a valuable part in retirement thinking, since medical bills are always on the way up, not down.  We will also discuss traditional IRA, SEP IRA, Roth IRA, and 401(k) plans and possible implications of using each.  We want to make sure you don’t outlive your nest egg.

Estate Planning

While we are not an estate planning attorney and don’t pretend to be one, we will point you in the direction of one.  Why is this important?  Estate planning attorneys and CPA’s will discuss certain tax implications for your family after you pass.  While a will is a good start, there are gift planning laws and tax-advantageous strategies that can be employed to make sure your heirs are not left with a short straw when it comes to what you have built during your career and lifetime.  While there is a federal estate tax exclusion, these laws can change many times over the course of a lifetime and you are going to want to make sure you are out in front of these changes.  A trust can help protect against unprotected estate taxes.

 Annuities

While annuities are not a part of our firm, they can be part of a financial plan for certain individuals and we will not hesitate to recommend them and point you to the right insurance firm for help.  Certainly those who were affected by the 2008 financial crisis can look at a guaranteed payout from a fixed annuity as something they may want to consider as part of their financial plan.  Instead of being worried about making a certain return in order not to outlive their money, annuities can provide a certain level of comfort in knowing that a steady amount of money is on the way.  Or, a variable annuity can help with a potential higher payout though that will come with some higher risk, as the investments involved could lose money and result in no payout at all.  Investors will have to decidee which type is right for them.

Mutual Funds

Mutual funds are a big topic among investors.  Some come with high fees, yet their performance does not outperform their Morningstar benchmark.  Other consistently beat their market averages.  Some funds are very dependent on the mutual fund manager, and once they leave, the performance may suffer.  Also to be considered, their is a substantial amount of research that says since the grand majority of mutual fund managers do not beat their benchmarks, it is better to invest in index funds and ETFs, which closely follow their selective benchmarks and generally have much lower fees than actively managed funds.  While we do have a great amount of respect for most fund managers, we in general will generally put most clients in index funds and ETF’s, thereby saving some of the fee expenses for our clients and helping clients not to be left out of any major market moves of the S&P 500, Dow Jones Industrial Average, or NASDAQ Composite.

Real Estate

While again not part of our firm, real estate investing is something investors should consider and should be part of a complete and balanced financial plan.  In general, real estate investing in general keeps up with about the average rate of inflation.  Until the real estate bubble of the early and mid 2000’s, real estate prices had a not seen much of a downturn except on the coasts or in other more speculative areas of the country.  Until some fancy financial engineering helped create mortgage-backed securities and other ways to jumble and pool mortgages, investing in real estate had given some investors comfort in knowing that they owned something real and tangible.  There is nothing wrong with this.  A good financial plan should consider an investor’s risk level, and if this includes a portion of real estate, we can help point you in the direction of competent residential and commercial realtors.

Retirement Planning

What is the difference between a 401(k), 403(b), traditional IRA, self-employed IRA (SEP IRA), pension plans, and a Roth IRA?  These are questions many investors have as the old model of working for one company for one’s entire adult working life is almost completely dead.  You may move between companies that have any of these plans set up for you or may have started your own business.  We can help navigate, and in some cases, consolidate these plans.  Although these plans have designated beneficiaries, some of these beneficiaries can be old, or they themselves have passed, leaving a mess for relatives to figure out.  There are important tax implications for each plan and these must be kept in mind as we start or consolidate those plans.  Some of these involve funds that are invested on a pre-tax basis and some that are invested on an after-tax basis.

Foreign Stocks and Bonds

Foreign stocks and bonds are an area that a potential investor should think strongly about as a part of a good and balanced financial plan.  Let’s face it.  There are places in the world that are growing faster than the good, ol’ USA.  We should be in a position to take advantage of that growth.  Many popular investments over the last few years included the so-called BRIC countries (Brazil, Russia, India, China) and other emerging markets.  With the advent of ETF’s that focus on these countries, investing in these places has never been easier.  While these places do come with higher risk, the potential rewards can also be higher as well.  While there can be some foreign currency risk as well, there will always be emerging markets that have higher GDP growth than the United States and we should be prepared to take advantage of any of these situations.

Foreign Exchange Funds and ETF’s

Also growing in popularity are foreign exchange funds and ETF.  These investments place positions directly on the value of a country’s foreign exchange rate.  The way many think of this is one country and economy versus another.  Some countries have higher interest rates in order to control growth and inflation.  Buying these currencies and selling dollars can provide a return that is similar to an interest rate at a bank.  This is sort of like comparing savings accounts in different countries.  In other words, if Australia has 5% interest rates and the United States has 0%, in which country would you rather have a savings account?  While the one with the higher interest rate is the easy answer, this can also bring about higher risk.  There is governmental risk and other risks, such as an overcrowded trade, that could bring an investment crashing down, so this is not done without bearing those risks in mind.  Either way, forex can be another part of a well-diversified portfolio.

Small Business Financial Advisor

Small businesses face unique challenges.  As a specialist in small business financial advising, we know what makes small businesses tick.  We know the risk and rewards of these types of investments and the cash flow positives and negatives associated with them.  As the president of CGK Business Sales, we have many years of advising clients on selling, buying, and running small businesses.  We have relationships with most of the major banks in the city of Austin, and can help point you in the right direction, whether it be buying a business, selling a business, or preparing your business for sale in the future.

Private Equity Investing

While these investments are only for accredited investors, private equity investing can be part of a balanced financial plan.  Private equity companies buy businesses and generally try to run and improve them before selling again in the future for what they hope will be a higher amount.  In the meantime, they can charge a percentage of EBITDA as a management fee.  The advantage to private equity funds can be that your investment is run by someone who is experienced in buying, selling, and improving businesses in order to make a profit.  The downside can be that these investments are illiquid and can take a long time to come to fruition.  You simply cannot press a few buttons and sell a stock, such as on the stocks market.  That being said, some investors feel more comfortable with an underlying instrument that is real and in general, controlled by the private equity firm.

Hedge Funds

Hedge funds are also only for accredited investors.  While hedge funds can have high fees and may or may not do better than the market averages, these are also specialized instruments that some investors may like.  Hedge funds can either be like their name, and hedge certain investments, or be completely one directional.  In general, hedge funds are known for either specialized and sometimes concentrated investments, or for providing better returns than the S&P 500 or other equity investments.  Depending on their investment contract, some hedge funds can invest in almost anything, including gold, silver, futures, bonds, equities, foreign exchange, commodities, or even other hedge funds.  Sometimes these investments can also be illiquid and can have high minimum investments.

Venture Capital and Angel Investing

Venture capital and angel investing companies invest in small or established companies in need of capital to grow.  They hope that these companies are game changers, the kind that can provide explosive returns to their investors.  On the other hand, these are some of the most risky investments out there.  Many of these companies may fail, though the venture capital or angel investment companies hope that a certain amount of these investments will have a high enough return to make up for and surpass the failure rates of the other companies.  Sometimes the exit strategy can be to sell these companies to other venture capital or angel companies, or the exit strategy can to take the company public or sell to another private equity fund once the company has gotten to a certain level of maturity.

Wealth Management

We provide wealth management here in Austin, TX for high-net worth families and institutions.  Wealth management can mean successfully protecting a family’s assets and net worth from generational decay.  Wealth management in Austin can also be for those who have built a large amount of assets over the course of a lifetime and want to make sure that these investments properly pass to their heirs.  Many of those in need of wealth management may want to start a charity and need help properly setting that type of institution up.  Institutions and larger businesses may also need a financial advisor to manage their investments properly in order to help cash flow and potential help grow funds to eventually make mergers and acquisitions.

 

Investments discussed are not guaranteed and involve risk of loss. Be sure to read all important disclosures before making a decision to invest. Past performance is not necessarily indicative of future results. No information provided on this website shall be deemed to constitute investment advice or a recommendation to buy or sell any financial instrument or security.