WESCAP Helps Family, Friends and New Investors
WESCAP prides ourselves on being a family-orientated wealth management firm. We believe it is important to help our clients’ families in various ways. Here are a few of the ways we can help:
Asset management for accounts that do not meet WESCAP’s $500,000 minimum
A few years ago, we launched our Automated Asset Management Program (AAMP). AAMP offers our active investment strategy to investors with investable assets between $50,000 and $500,000. The AAMP portfolio continues to reflect WESCAP’s view of the optimal asset allocation, balancing returns and risk for portfolios and selecting the asset allocation deemed appropriate for a client’s goals and risk tolerance. This is a great way for the next generation to start investing. For assets above $500,000 our Wealth Management Service is available.
College Savings Plans
WESCAP can open and manage state-administered College Savings Plans (often called 529 plans) for children, grandchildren, nieces, nephews, etc. These plans are attractive vehicles for accumulating savings to pay for post-secondary educational expenses. When used for qualified education expenses, there is no income tax on withdrawals, regardless of the amount of account growth. Any individual donor, regardless of income level, can fund an account for any individual beneficiary, while still retaining control over the account. By funding a plan, the donor’s contribution is (in most cases) removed from his/her own estate. In 2021, an individual donor is allowed to make an annual contribution of up to $15,000 toward a beneficiary’s 529 account without gift tax consequences. Using a special election, an individual donor can make a one-time contribution of up to $75,000 (married couples gifting jointly can contribute up to $150,000) to an individual beneficiary’s account. However, if the special election is used, subsequent annual contributions for the next four years to the same beneficiary would have gift tax consequences.
Accountant and attorney referrals
WESCAP has a recommended list of accountants and attorneys that can help the next generation with taxes and estate planning such as establishing trust and will documents.
Complimentary consultations in the months of August and September
We know that there are many new investors entering the market with the rise of Robinhood, SPACs, cryptocurrencies, meme stocks, ESG and so on. During the months of August and September WESCAP Advisors are offering complimentary consultations to discuss these topics or any other financial planning questions that family and friends may have.
Please reach us at contactus@wescapgroup.com or at (818)563-5170.