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Should Your Investment Program Be a Trust?
Investors with $50,000 portfolios have stockbrokers, it has been said, while those with $5 million have trust officers.
That may be true, but it’s also misleading.
A good number of business or professional people, active or retired, count on us to maintain and enhance their hard-won financial independence. Some rely on us to invest significant sums that they have received as a result of a death in the family or the sale of property. We manage many trusts below the million dollar level.
What sets us apart is the nature and quality of our work. As we see it, each of our trust clients deserves the first-class service that an investor with $5 million expects to receive.
Is it time for you to consider a living trust?
These insights into our way of doing things will help you arrive at an informed decision.
First, we don’t claim to be “better” than full-service brokers or financial advisors. We’re just different.
Buying and selling. Some investment advisors make their money from the commissions they receive for buying and selling securities for their clients and from profits on new issues of securities that they underwrite and make available to the public.
Our fee is based upon account size. Our compensation goes up only if the account grows in value.
Financial management. As a trust institution, we focus on doing the best possible job of managing money for our clients and providing a high level of personalized service within a competitive fee structure. We have no stocks to sell, nor do we look to commissions for compensation.
Our success is tightly linked to the success and satisfaction of our clients. We’re well aware that in order to prosper we must (1) make our clients’ capital grow and (2) serve them so attentively that they refer new clients to us.
This attentiveness is reflected in our insistence on viewing each client as an individual with a unique set of financial aims and circumstances, not merely as an “account.”
More than investment counseling
In some respects our services resemble those that an investor might receive from an investment counseling firm. But here, too, there can be significant differences. We provide each of our clients with complete custodial care and record-keeping services. Indeed, we take care of virtually every investment detail that you can think of. Sound convenient? It is. More importantly, this attention to detail can result in significant savings over the years. If you’ve ever mislaid a dividend check, or failed to notice that a bond was called for redemption and had ceased to earn interest, or overpaid your taxes because adequate investment records were lacking, you’ll understand what we mean.
Unique advantages. By placing their investable funds in a revocable living trust, our clients are able to take full advantage of our broad and unique capabilities as a trust institution. They can instruct us to perform a wide variety of special duties, now or in the future.
For example, some of our clients enjoy traveling. While on an extended vacation, they can direct us to pay their estimated income taxes, property taxes and other recurring bills.
For older individuals, our ability to accept added responsibilities as trustee can result in enhanced peace of mind. It’s worrisome to hear of aging friends or relatives who have become incapable of managing their own finances, and even more distressing to hear of problems arising from the appointment of a guardian or conservator. With a well-planned trust agreement, an older person can make arrangements now to minimize financial management problems in the event of future illness or incapacity.
Moving up without “tying up”
When talking with potential clients, we’ve learned to expect a comment that goes something like this: “A trust sounds like just what I’ve been looking for—except, I don’t want to tie up my money.”
Like these individuals, you also will be pleased to hear that the terms of a trust can be just as untied and flexible as you want to make them. Furthermore, the type of trust that we’re discussing is revocable. That means you’re free to cancel the whole arrangement or amend the trust as your plans or circumstances change.
Ready to move up to a living trust?1 Call on us!
© 2020 Portions M.A. Co. All rights reserved.
Any developments occurring after February 1, 2020, are not reflected in this article.
Content is for informational purposes only and is not intended to provide legal or financial advice. The views and opinions expressed do not necessarily represent the views and opinions of WesBanco.
1WesBanco Trust and Investment Services may invest in insured deposits or nondeposit investment products. Nondeposit investment products are not insured by the FDIC or any other government agency, are not deposits or other obligations of, or guaranteed by any bank or any affiliate, and are subject to investment risks including the possible loss of the principal amount investment.