minding our clients’ business capital... · minding our clients’ business experience and...

M i n d i n g o u r C l i e n t s ’ B u s i n e s s

Minding our Clients’ Business

A n d r A o s C A P i t A l M A n A g e M e n t


one today is worth

two tomorrows.

— B e n F r A n k l i n

Private Wealth Management servicesthe preservation and protection of wealth are infinitely more

complex matters today than they were in Ben Franklin’s time.

Yet the wisdom that Franklin imparted is as sage now as when

he wrote The Way to Wealth in 1757.

none is more relevant than his admonition to act today rather

tomorrow, for inaction has as much consequence for wealth

preservation and accumulation as action. For example, a dollar

lost today might be worth four times as much at the age of life

expectancy if saved through appropriate tax planning.

Andraos Capital Management is one of the leading wealth

management advisors in southern California. We have been

serving high net worth clients for two decades, with a client base

that includes individuals and families; doctors, dentists, attorneys

and other professionals; and small to moderate-sized, privately

owned businesses.

Andraos Capital Management is one of the few firms in the field

that integrate all of the disciplines necessary to help achieve

optimal wealth management results. We have assembled the

resources necessary to address critical subjects ranging from tax

and retirement planning to investment management, insurance

strategies, wealth transfer and business succession planning, and

legacy fulfillment.

M i n d i n g o u r C l i e n t s ’ B u s i n e s s

experience and PhilosophyChoosing a wealth management advisor is one of the most important

decisions you as a high net worth individual, family or privately-

held company leader can make. that is why careful people from

many walks of life have turned to Andraos Capital Management to

help them achieve their personal wealth objectives.

one objective for many of our clients is to be able to enjoy life

without worrying about security of means for them or their families,

employees and philanthropic causes.

the three most senior officers of Andraos Capital Management

bring more than 70 years of collective experience in wealth

management planning and implementation to the company.

they and the company’s other skilled employees and associates

represent the cutting edge of knowledge and innovation in the field.

our company’s success and growth is built on a sound and

conservative approach to planning, a rigorous adherence to the

highest standards of practice, and a singular dedication to making

sure that our clients’ life objectives are met…without fail. our sole

focus is on your needs and wishes.


learning is to the

studious and riches

to the careful.


A n d r A o s C A P i t A l M A n A g e M e n t M i n d i n g o u r C l i e n t s ’ B u s i n e s s

the importance of good Advice Certainly, the demands of building your business or growing your

professional practice or career justifiably absorb almost all of

your day-to-day attention. However, demands for preserving and

protecting your wealth call for as much diligence as you exercised

in creating it. Enhancing your wealth requires even more!

navigating the arcane intricacies of the tax code, inheritance laws

and financial markets is a full-time job, which is why you most likely

have surrounded yourself with experts in these fields. However,

decisions made in one area often have unintended consequences

in others. For example, an investment decision may affect an estate

plan; a retirement plan may negatively impact a tax strategy.

lack of comprehensive planning that integrates all aspects of your

wealth management program may jeopardize your overall goals.

that is where Andraos Capital Management can help you. We

are virtually unique in our ability to provide comprehensive wealth

management planning, implementation and monitoring.

With seasoned knowledge in each area of wealth management,

our associates will work with you and your advisors, or you

alone, to assist in providing all of the knowledge, planning and

implementation necessary to help coordinate your strategies and

achieve your overall goals. in the wealth management field, as in

other critical professions, competence counts.

As Ben Franklin points out, good luck is the offspring of diligence.

With respect to wealth management, both are the result of choosing

good counsel.

diligence is the

mother of good luck.



integrated and Comprehensive servicesWhile many of our clients initially come to us for a solution to a

particular need, many eventually go on to work with us to develop

a comprehensive and integrated wealth management program.

While it is beneficial to have some elements of a wise plan, it is

best to incorporate all elements and have them work together

smoothly. this will help assure that your assets are enjoyed during

your lifetime and the lifetimes of the generations that follow you.

We have the flexibility to create a part of your wealth management

plan or all of it. We then implement your choices, monitor your

plan and make sure that it is continually updated to reflect any

changes in your needs, circumstances and goals.

some of the wealth management services that we provide include:

As Franklin might say, if you are not catching all of the poultry, that

might affect tomorrow’s dinner menu.

the sleeping fox

catches no poultry.


Asset Protection and Tax Strategies

estate Planning and Asset tax discounting

grantor trusts/ Freeze gifts/ lifetime gifts

(grAts - Crts - ilits)

using Business entities as tax strategies

(FlPs - llCs)

insurance Planning

Asset Protection - life insurance

Premium Financing

income Protection - disability insurance

lifetime Benefit Planning

Welfare Benefit Plans

Asset Accumulation and Distribution

Asset Accumulation and distribution

Portfolio Management

stocks and Bonds,

reits and other Alternative investments;

Mutual Funds and Annuities

retirement Plans and Administration

Pension Plans/ Profit sharing Plans/ 401k/ 412i,e

individual retirement Accounts

irAs/ roth irAs/ sePs

Business Tax and Exit Strategies

Business buyout/succession planning

stock redemption Plans

Buy-sell Arrangements

deferred Compensation

executive Bonus

key Person indemnification

split dollar Plans

M i n d i n g o u r C l i e n t s ’ B u s i n e s sA n d r A o s C A P i t A l M A n A g e M e n t

taxes, the keystone of the Planning structureWe all know the old saying about “death and taxes.” However, few

people realize the staggering reduction in the lifetime accumulation

of wealth caused by taxes.

Many wealthy people complain about taxes and seek lawful ways

to reduce their tax obligations. in fact, however, tax planning frequently

is the least adequately addressed long-term issue in wealth

management plans. Few advisors make the calculations that are

routinely done for clients of Andraos Capital Management. our

analyses illustrate why taxes are the number one destroyer of

wealth for most people over the course of their lifetime.

it is easy to see on the accompanying graphs why the amount

of wealth lost to taxes today and over the course of your lifetime

is often greater than the amount of wealth you keep in your

pocket. Because of our expertise in integrating each of the several

disciplines that constitute true wealth management, we have the

potential to reduce the tax burden so that you can pay less taxes

and have the ability to accumulate greater wealth.

lost time is never

found again.


our unique planning perspective rigorously addresses taxes as

part of an overall wealth management program that accounts

for each client’s circumstances and life goals. it revolves around

a coordinated set of financial plans that integrate tax-reduction

strategies for: retirement Assets, Business interests, estate Assets

and risk Management.

As shown on the graphs, a person paying various taxes on

$100,000 of annual earned income from age 50 to age 67, would

accumulate more than $16 million by the age of life expectancy

instead of less than $7 million. the difference represents savings

through tax strategies. For a person at age 65, using the same

assumptions, the equivalent amount of lost wealth would be more

than $5 million by the age of life expectancy.

Action in one area, tax strategy, may affect another, such as business

interest. Andraos Capital Management uses a coordinated financial

strategies approach to each key area of wealth management to

achieve and assure the wealth accumulation and other goals of

our clients.

like Ben Franklin’s allusion to “time,” the taxes you lose are never

found again.

5Y E A R S

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8 ,0 0 0,0 0 0

1 2 ,0 0 0,0 0 0

1 6 ,0 0 0,0 0 0

10 15 20 25 30 35

5 10 15 20 25 30 35

, ,

, ,

Curent Age: 50 Life Expectancy: 87Annual Income: $100,000 Growth Rate: 6%Fed. & State Tax Rate: 42% Tax Rate on Investments: 30%Taxable Asset Value: $1,000,000 Estate Tax Rate: 45%

Y E A R S

4 ,0 0 0,0 0 0

6 ,0 0 0,0 0 0

8 ,0 0 0,0 0 0

1 0,0 0 0,0 0 0

2 ,0 0 0,0 0 0

ASSUMPTIONSBased on taxes paid on $100,000 of annual earned income from current age to age 67; investments and assetsgrow at rate stated below; "Lost Wealth" = taxes paid on earned income, investment growth and estate assets

Curent Age: 65 Life Expectancy: 87Annual Income: $100,000 Growth Rate: 6%Fed. & State Tax Rate: 42% Tax Rate on Investments: 30%Taxable Asset Value: $1,000,000 Estate Tax Rate: 45%

ASSUMPTIONSBased on taxes paid on $100,000 of annual earned income from current age to age 67; investments and assetsgrow at rate stated below; "Lost Wealth" = taxes paid on earned income, investment growth and estate assets

WEALTH POTENTIAL

WEALTH LOST TO TAXES

RESIDUAL WEALTH

WEALTH POTENTIAL

WEALTH LOST TO TAXES

RESIDUAL WEALTH

Potential Wealth Lost to Taxes

Potential Wealth Lost to Taxes


He that lives upon

hope will die fasting


team Approach – individual solutionone of the most valuable services we offer our clients is the comfort

of sitting back amidst the pressures of day-to-day concerns and

knowing that they have an intelligent and well-considered game plan

that is helping to move them toward their financial goals.

A business or professional practice often represents one of the most

important components of wealth, making a planned, tax-favored exit

strategy a key wealth management consideration. Frequently, the

market value of your business or professional practice interest is not

equal to the “true value” it represents to you. We focus on helping

making sure that you have a carefully planned strategy that enables

you to end up with 100% of your business or practice value at

retirement and at the time of estate transfer.

rigorous planning helps balance considerations such as future health-

care needs, lifestyle choices and children’s education with your present

and expected future resources. sound planning directly affects you

and your family, descendants, employees and favored charities.

We help you consider factors such as longevity, taxes, inflation, and

business cycles that will affect your wealth outcome and define and

sharpen your personalized lifetime plan. You and those about whom

you care deserve to enjoy life to the fullest and the right game plan

can help make it happen. As necessary, we adjust your plan over time

if your needs and goals change.

Hope is a wonderful quality. Well-considered planning and wealth

optimization, though, are the more assured way to reach your goals

and let you make the most of your time and opportunities. Fasting, as

Franklin suggests, is an unattractive option.


A Calm Anchoragein these volatile political and economic times, the management

of investments requires uncommon wisdom. too often people

are seduced by seemingly high returns that promise more wealth

accumulation or earlier retirement dates. unfortunately, when the

business cycle turns, as it always does, the high returns disappear,

the original capital is impaired and retirement must be postponed.

Prudent management of investment capital is one of the hallmarks

of our firm’s services. recognizing that people have different tolerances

for risk, we always recommend at least one conservative strategy

that will help make sure you get to your primary goal.

our clients can draw from a wide range of insurance and investment

choices. You will benefit from our association with the highly-rated

uniFi companies, which enables us to provide you with a broad

spectrum of insurance, annuity, investment, trust and banking services.

in addition, because Andraos Capital Management is an independent

company, we have the flexibility to select from a broad list of fund

managers and investment companies. Accordingly, we are well

equipped to select a calm anchorage for your assets.

You have worked hard for your wealth. now, let us work hard on

your behalf to help secure it and help it grow.

When the well’s dry,

they know the worth

of water.


For more information or to arrange a meeting with one of our

wealth management advisors, please contact:

John Andraos, rFC, Chief executive officer

Andraos Capital Management

655 north Central Avenue, suite 1550

glendale, CA 91203

tel: 818.551.6600

Fax: 818.551.6615

email: [email protected]

John e. Andraos is a registered Principal. securities and advisory

services offered through Ameritas investment Corp. (AiC), mem-

ber FinrA, siPC. 5900 o street, lincoln, ne 68510-2234,

402-467-6900. Andraos Capital Management and AiC are

not affiliated. representatives of AiC do not provide tax or legal

advice. Please consult with your tax advisor or attorney regarding

your situation.


Andraos Capital Management

450 north Brand Boulevard, suite 920

glendale, CA 91203

tel: 818.551.6600

Fax: 818.551.6615

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