Last­ing a Lifetime

The Suit - - Contents -

Stuff­ing Cash Un­der the Mat­tress

THE SUIT MAG­A­ZINE - SEPT 2014 De­spite the mar­ket hit­ting record highs, re­tail in­vestors, with in­vestable as­sets rang­ing from less than $250,000 to more than $1MM, have dra­mat­i­cally in­creased their al­lo­ca­tion to cash. Cash al­lo­ca­tions have jumped in the past two years with the global av­er­age ris­ing from 31% in 2012 to 40% in 2014. In the US, al­lo­ca­tions rose from 26% in 2012 to 36% in 2014,” stated the re­port.

Th­ese statis­tics come as no sur­prise to Gary Mont­gomery, pres­i­dent and CEO of Wealth Se­cu­rity LLC, a fee­based fi­nan­cial ad­vi­sory firm in Austin, Texas.

“The 2008 re­ces­sion has re­fo­cused a lot of at­ten­tion on cap­i­tal preser­va­tion – and the event put fear into in­vestors, keep­ing them from tak­ing the ap­pro­pri­ate amount of risk, par­tic­u­larly baby boomers ap­proach­ing re­tire­ment,” said Mont­gomery.

Wealth Se­cu­rity LLC has helped peo­ple reen­ter the mar­ket who, be­cause of the re­ces­sion, had largely pulled out and were sit­ting on sig­nif­i­cant amounts of cash. “We’ve en­cour­aged them and helped them make bet­ter de­ci­sions,” he ex­plained. Ref­er­enc­ing one such client who was helped to un­der­stand the right mix of risk and cap­i­tal preser­va­tion, Mont­gomery noted, “We’ve done ex­tremely well with her port­fo­lio. In fact, she’s so much more com­fort­able with the amount of as­sets that she has, that she is en­cour­ag­ing us to take larger risks.”

Mont­gomery is cur­rently in­volved in a pro bono project for the mil­i­tary to help sol­diers re­turn­ing to civil­ian life. He is a grad­u­ate of the United States Mil­i­tary Academy at West Point, where he stud­ied en­gi­neer­ing as an un­der­grad. Later on, he earned an MBA, and with ex­pe­ri­ence in merg­ers and ac­qui­si­tions, also be­came a Cer­ti­fied Fi­nan­cial Plan­ner.

“Be­cause I come from an an­a­lyt­i­cal back­ground, I look for left-brained clien­tele – the left brain be­ing log­i­cal, an­a­lyt­i­cal, and ob­jec­tive,” Mont­gomery em­pha­sized. “I can ap­ply my an­a­lyt­i­cal skills to help make bet­ter de­ci­sions for them. I rec­og­nize that emo­tions are part of any decision, so we match log­i­cal and an­a­lyt­i­cal think­ing with the emo­tional as­pects and help clients make good fi­nan­cial de­ci­sions to pre­serve or in­crease their wealth.“

Fore­see­ing a time when peo­ple could be re­tired for more years than they ac­tu­ally work, Mont­gomery re­lated, “In the fu­ture, the ex­pected life­span is go­ing to be age 100 or higher. It’s likely that peo­ple are go­ing to be re­tired for 35 to 40 years, and their re­tire­ment money has to last.” In an­swer to that, Wealth Se­cu­rity LLC has de­vel­oped a pay­check sys­tem for re­tirees. Sim­i­lar to they way money was han­dled when they were work­ing, re­tirees re­ceive pe­ri­odic pay­checks, an­nual bonuses and pay raises.

Mont­gomery said, “We link the per­for­mance of the pay raises and the bonus as it re­lates to the port­fo­lio per­for­mance, which en­sures that it will last their lifetime.”

Wealth Se­cu­rity LLC 100 Congress Ave. Suite 2000

Austin, Texas 78701 Of­fice: 1-877-256-1681 Fax: 1-877-276-5696 info@wealth­se­cu­ www. wealth­se­cu­

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