Professional Financial Services

FINANCIAL DECISION MAKING

Financial Planning is a term that covers a broad spectrum of ideas: everything from deciding which is the best type of savings account to use for a specific purpose to the complex details of setting up a corporate retirement package. At John Masters, CPA, P.C. we will handle the simplest to the more complex project. We can work with you on an ongoing basis (for example administering a project over time) or on a one time or one at a time basis for individual projects (for example, structuring a real estate transaction to your best advantage). Whether you are looking for advice on the best type of retirement plan to establish or figuring out which is the most advantageous option to exercise in your current retirement package at work, we can help.

You may ask yourself, "should I withdraw now, pay the penalty and pay off this loan, or would it be better for me to wait until I will have no penalty to pay, then pay off the loan?" "Who can I call to help me?" "How does my will dovetail with my retirement holdings?" "What about my budget? I can’t seem to make a budget that works. I try, but I am always off at the end of the month!" "Is this real estate transaction going to meet the requirements of IRS Code Section 1031?" "Who can help Me?"

INVESTMENT MANAGEMENT SERVICES

At John Masters, CPA, P.C. we offer the full spectrum of investment management services. John Masters is a Certified Public Accountant and John Masters, CPA, P.C. is a Registered Investment Advisor. By giving us discretionary decision-making authority, we can direct your investment selection. If you are currently investing only in the super safe end of the spectrum, perhaps we can increase the size of your nest egg. If you have invested on the highly speculative side and been disappointed by losses, perhaps we can add stability to your program

How does it work?

You have your own Brokerage Account. If you do not presently have one, we will assist you in setting one up. You authorize your broker to accept investment instructions from us. This is done with a Limited Power of Attorney. We monitor your account and issue orders to buy and sell when we believe appropriate. We can not take anything out of your account except our monthly Management Fee. You receive confirmation of all transactions from your broker.

You can start and stop our Management Services any time you like. The Brokerage Account is exclusively yours at all times. Your Discount Broker earns a modest commission on the trades we direct. We earn a Management Fee based on the size of your account and no commissions. It is in our best interest to keep your commissions as low as possible.

How do I get started?

First, contact us to set up an appointment, and we will meet with you to learn your interest, attitudes, preferences and goals.

Second, select one of our fee schedules and sign a management agreement authorizing us to manage your account.

Third, if you do not already have a brokerage account, we help you set one up with a broker of your choice. We use Waterhouse Securities, a Discount Broker, when our clients have no other preference. We use them for our own investments.

Fourth, sign a Limited Power of Attorney which we will send to your broker authorizing them to accept our instructions to make securities transactions. And, if you are changing brokers, sign a form instructing your old broker to transfer your account assets to your new account.

ESTATE PLANNING

Estate planning is the process of deciding how to organize ones affairs to leave as much as possible of ones assets to the intended beneficiaries of one’s life work. Extensive considerations is given to spouses, children, former spouses, stepchildren, good relatives and bad relatives. Consequences of divorce and remarriage, incompetence, disability, and order of death of one’s self and beneficiaries are considered. The plan may result in creating or changing recommendations for Wills, Trusts, Insurance Beneficiaries, and how Real Estate and Bank Accounts are titled. Minimization of Taxes and Probate Costs is always an objective. To begin the process, it will be helpful to complete our Estate Planning organizer. Contact us for an appointment. When you come in for your appointment, bring the Estate Planning organizer, your most recent tax return, and a list of your assets and liabilities.

FAQ’s

Q. Do I have to move all of my assets to use your management services?
A. No. We will manage any part or all of your suitable investments as you wish. Some clients segment their holdings, and have different investment goals for different segments. You may want us to manage your retirement assets while you “play the market” with your other available cash. We can accommodate any arrangement you desire.

Q. Are all investments suitable for management services.
A. No. There are many non-liquid assets such as closely held corporate stock which are not suitable for this particular management service. We will discuss this with you if you have such assets.

Q. What kind of assets do you prefer to manage?
A. We generally prefer publicly traded corporate securities, such as common and convertible preferred stocks and convertible bonds.

Q. How does the basic concept work?
A. It’s simple. Hire an investment manager to manage your assets and use a discount broker to execute your trades. Discount Brokers are salaried and will not call to sell you anything. Whereas, the Sales Representative of a full service broker earns income every time they make a trade in your account. That is why a Discount Broker’s Commissions are less. Investment Management fees plus Discount Broker Commissions should be less than the cost of using a full service broker.

NOTICE

INVESTING IS INHERENTLY RISKY. THERE ARE NO GUARANTEES. PEOPLE CAN AND DO LOSE MONEY.

Certified Public Accountant
A Certified Public Accountant (or CPA) is an individual who has two or more years of accounting experience and has passed a multistate uniform comprehensive exam and has been issued a multistate license to practice by one or more of the United States.
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Discount Broker
A Discount Broker, as opposed to a full service broker, charges separately for each service provided and, rather than a commission, is paid a salary. Discount broker transaction fees are usually substantially less than a full service broker.
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Limited Power of Attorney 
A Limited Power of Attorney is an authorization for a specific person to do only certain specified things on behalf of the person granting the authority.
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Management Fees
Our Management Fee varies with the size of your investment portfolio, from 2/10 percent per month for smaller accounts to 1/10 percent per month for larger accounts. This Monthly Fee includes meeting with you each year to review your portfolio and changes in your situation we should take into account in managing your portfolio.

We will meet with you at other times and provide other services at your request at our published hourly or fixed fee rates in effect at that time.

We receive no commissions when trades are made. We may, however, receive, for certain eligible research expenses, an amount equal to 10% of the commissions generated.
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Registered Investment Advisor
A Registered Investment Advisor may be registered with the Securities and Exchange Commission and /or one or more of the United States.
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