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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
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.
A n d r A o s C A P i t A l M A n A g e M e n t
learning is to the
studious and riches
to the careful.
— B e n F r A n k l i n
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.
— B e n F r A n k l i n
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
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.
— B e n F r A n k l i n
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.
— B e n F r A n k l i n
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
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
He that lives upon
hope will die fasting
— B e n F r A n k l i n
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 n d r A o s C A P i t A l M A n A g e M e n t
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.
— B e n F r A n k l i n
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.
A n d r A o s C A P i t A l M A n A g e M e n t
Andraos Capital Management
450 north Brand Boulevard, suite 920
glendale, CA 91203
tel: 818.551.6600
Fax: 818.551.6615