Services Provided

Intelligence, knowledge, experience and integrity are the tools and characteristics one should seek in a financial advisor. With these, the client’s best interest will be served. We are willing to spend the time necessary to develop the understanding of the client’s goals that is essential to generating the optimal strategy to help each client obtain and retain wealth. To achieve the optimal outcome, all aspects of the client’s legal, accounting, tax, actuarial, investment and estate planning goals must be considered. Clients need an intelligent, well educated, and hard working professional. But, most importantly, clients need a consultant who puts the interests of the client first!

The first step of Financial Planning is the process of gaining the in-depth understanding of the client’s desires, hopes, dreams, goals, fears, resources, and preferences. The clarification of these is followed by the development of strategies designed to minimize taxes, optimize investment returns and control risks that will move the client from where they are to where they want to be. We understand that it is essential to build a financial structure that will enable the client to comfortably achieve their goals.

All change, no matter how beneficial, is stressful. We do not attempt to restructure all of a client’s assets in one fell swoop. Adjustments are carefully thought through to make sure that unforeseen consequences are not experienced. Only after clients have had time to evaluate and become comfortable with recommendations are they implemented. Often, tax and other considerations dictate that the restructuring of assets and the fine-tuning of investments take place over a number of years.

Our objective is to help hard working people become financially secure, to help financially secure people become wealthy, and to help wealthy people become rich. We help the wealthy and rich clients develop plans to achieve their estate planning objectives at the lowest estate tax cost. No matter what stage you might be in, the achievement of your goals is our primary objective. This usually includes the management of investment assets in additions to the generation of strategies designed to control risks and minimize taxes.

Successful Financial Planning incorporates all elements of a client’s feelings and preferences into an integrated program that enables them to spend their time and energy on other matters. It is our belief that an advisor must be licensed, knowledgeable and active in all relevant disciplines in order to fully understand the intricacies and interactions among various strategies and to be able to provide complete and unbiased advice. We pride ourselves in maintaining the broad knowledge base necessary to be of assistance to the wide range of clients that call upon us for advice.

The acquisition, management and retention of wealth are the primary activities of our firm. Our goal is to reach an in-depth understanding of the client’s desires and risk tolerance so that the optimal investment mix is clear.

Inherited or sudden wealth often creates great stress for individuals. We have considerable experience helping individuals deal with the complexities created by the management needs of new wealth and the impact that it has on family and friends.

In today’s world, stock options are becoming an increasingly common form of compensation. Our advisors frequently consult with clients on the decisions related to the exercise of options and subsequent transactions in the securities acquired by the exercise of options. We are very familiar with the hazards of highly concentrated positions and are experienced with the use of various strategies designed to protect against the risk of a significant decline in price while maintaining the opportunity to gain from future increases in the price of the stock.

The three common types of options—Qualified, Non-Qualified and Incentive Stock Options, not only have different characteristics, but are also taxed very differently. We are experienced with Section 144 Rules pertaining to insider transactions and the complex tax and Securities Exchange Commission rules dealing with the exercise of options.

Holding a large position in a single stock exposes the holder to extreme volatility and the risk of dramatic declines in market value and net worth. We have worked with numerous clients holding concentrated positions. Over the years, we have developed and refined proprietary strategies designed to enable clients to successfully and comfortably deal with the conflicting issues created by concentrated positions.

Estate Planning is an integral part of the total planning process. Unfortunately, there is widespread misinformation about many Estate Planning strategies. Financially successful people are often surprised to learn how difficult and expensive it is to transfer assets to their loved ones. Estate Planning is sometimes viewed as the final step of financial planning. As consultants, we understand that effective Estate Planning requires actions throughout one’s lifetime. Therefore, we keep Estate Planning issues in mind throughout the planning process.

When clients seek Estate Planning advice, we pride ourselves in being aware of the multitude of conflicting issues that must be balanced in the creation of the most advantageous plan for the client. The depth of our understanding enables us to help clients overcome the numerous confusing misconceptions surrounding many Life Insurance and trust-based Estate Planning strategies. Rather than simply asking the client what they wish to achieve, as Estate Planning Consultants, we explain the pros and cons of many alternative tools that could be utilized to achieve their objectives.

We have many years of experience creating estate plans designed to minimize tax and administrative costs, enabling maximum distributions to heirs. These strategies often involve living trusts, charitable trusts of various types, life insurance trusts, grantor retained interest trusts, residential trusts, private annuities, charitable foundations, and many other strategies tailored to the client’s needs.

Mr. Davis, the founder of The Financial Advisory Group, was the first Financial Planner ever admitted to San Francisco’s prestigious Estate Planning Council.

Our advisors are licensed to provide clients brokerage services with all types of investment securities including stocks, bonds, derivative products, mutual funds, exchange traded funds, variable annuities, and variable life insurance products. In addition, our consultants are also licensed brokers for all types of insurance products.

Our advisors frequently educate clients about investment opportunities that they have not considered. Often, individuals do not understand how some financial products and strategies can further the achievement of their goals. We help clients understand the tax and investment characteristics of financial products and strategies that might be appropriate for them. If these are of interest, we review the risks and rewards, in detail, to help them determine if implementation would contribute to the achievement of their goals. To enable clients to implement their investment decisions, our consultants are licensed brokers on all types of investment securities and products including stocks, bonds, derivatives, index products, mutual funds, exchange traded funds, variable annuities, and variable life insurance products.

In addition to investment securities, our professionals are licensed to provide fixed Life, Health, Disability and Long-Term Care insurance coverage with many of the highly rated, nationally known, companies.

Decisions involving the purchase, sale, exchange, refinancing and tax considerations of real estate are important issues for many clients. Real estate ownership can provide many advantages. Understanding the financial, tax and investment implications of real estate decisions is one of our strengths. We have advised and assisted clients on hundreds of transactions involving the purchase, sale or refinancing of their personal residences or investment real estate. In 1983 our founder, James O. Davis, structured the sealed-bid sale of the second largest “footprint” in San Francisco’s financial district—a landmark building that is now the Ritz-Carlton Hotel.

Over the years, we have developed relationships with the owners of many real estate and mortgage brokerage firms. These relationships frequently prove invaluable to clients who are contemplating real estate transactions or refinancing real estate they already own.

Retirement Planning is a primary goal for virtually every working person. Funding a comfortable retirement has become a greater challenge as life expectancies increase and employer provided pensions become less certain for many.

The investment of Lump-Sum Distributions from Retirement Plans is often the largest single investment decision an individual makes in their lifetime. If this money is invested too conservatively, inflation will erode the purchasing power, resulting in an inadequate income in later years. If it is invested too aggressively, the principle is put at undue risk. For the individual commencing retirement, this decision comes at a time when there is rarely the opportunity to earn back investment losses caused by poor investments choices. For individuals who are changing jobs mid-career, Lump-Sum Distributions represent an opportunity to build a retirement fund that can go a long way toward making them financially secure.

We are sensitive to the needs of prospective retirees to thoroughly evaluate the investment decisions that must be made. We understand that time is required to reach these decisions. Often, over a period of weeks, we spend many hours helping prospective retirees reach decisions that are appropriate and comfortable for them.

The challenge of paying for the education of children is second only to that of retirement. There are many ways to fund educational expenses: 529 College Savings Plans [IRS Section #529], Educational Savings Accounts [ESA’s], Uniform Gifts / Transfers to Minors [UGMA’s / UTMA’s], and trusts of various types. Some of these programs are given preferential tax treatment. Accounts are subject to special tax rules that limit income shifting tax advantages, annual contribution limits and total contribution limitations. Gifting to some programs is restricted for higher income parents.

Financial aid calculations attribute assets differently for the various types of accounts. Excise Taxes can be incurred on excessive contributions. Qualifying for the Hope or Lifetime Learning tax credits requires careful use of money from government-sponsored programs. Some transfers allow the control to remain with the individual setting aside the money. Others transfers give the child complete control of the money at age 18.

Trusts can be tailored to achieve any desired result, but are usually subject to substantially higher taxes. All preferential tax benefits come with restrictions and potential tax penalties. Balancing the advantages against the potential cost and complications to determine the optimal combination of vehicles is one of the ways we are of assistance to clients.

Retirement Planning is a primary goal for virtually every working person. Funding a comfortable retirement has become a greater challenge as life expectancies increase and employer provided pensions become less certain for many.

For years, we have been strong proponents of tax-deductible, government approved, “Qualified Retirement Plans” whenever they fit the client’s needs. Our activities include the recommendation and establishment of these plans for employers (including many self-employed individuals).

We are also familiar with and assist business owners with putting Non-Qualified retirement plans in place that are available to business owners and “key employees” of organizations they control.

Our consultants help business owners with the selection of the optimal business form, financing decisions, establishing the business retirement plan, structuring the sale or initial public offering of the business, succession planning and a multitude of other decisions.

There are many risks in life. Insurance coverage enables individuals to protect themselves from potential risks. In addition, certain types of insurance products, if properly utilized, provide very significant tax advantages that are not available with non-insurance products. As professionals, we are familiar with these advantages and know when the use of the products would be most advantageous to clients. We are fully licensed to help clients with their insurance coverage. Our advisors are experienced with all types of insurance products and how they impact both risk coverage and financial planning needs. We can provide Life, Health, Disability and Long-Term Care Insurance as well as Variable Annuities and Variable Life Insurance.

Effectively managing the use of credit cards, personal lines-of-credit, loans on property, guarantees of business debts etc. are essential for financial success.

Mortgages (primary, secondary, and consolidation loans) on personal residences and rental properties are prudent for most individuals. The decisions as to how much to borrow, the type of loan chosen and the term of the loan are complex and require balancing conflicting objectives. We help clients with this process and have the long established contacts with reputable loan brokers that can help them implement these decisions.

Prudent structuring of trusts protects assets and directs trust assets to the intended recipient. For many clients, an important element of our planning services is to identify opportunities to achieve the client’s objectives through the use of trusts.

Trusts can have an impact on both Income Tax and Estate Tax. Some trust strategies can dramatically lower Income Taxes for many years.

If properly structured, trusts allow skipping taxation of assets passed to heirs for one or more generations.

The management of trust assets is complicated by very high taxes on trust income. With proper planning, assets can be invested in ways that dramatically reduce, or entirely eliminate these taxes.

We are all too familiar with the high cost of taxes in our country. Fortunately, our in-depth knowledge of the tax structure enables us to show clients many ways to minimize, delay, or entirely eliminate taxes. Controlling the impact of taxes is an essential element of any comprehensive financial planning process. We are licensed to advise clients on these issues and, through an affiliated organization, assist them in the preparation of their tax returns. The breadth and depth of our understanding of taxes is one of the key differences between The Financial Advisory Group and many other organizations providing financial planning advice.

Through Davis Tax Consulting and The Tax Advisory Group (James O. Davis, Principal), we advise upon and prepare the tax returns for the following types of clients:

• Individuals
• Corporations (Including LLC’s, Sub S-Corp’s)]
• Partnerships (Including LLP’s)
• Estates
• Trusts
• Gift Tax Returns