Financial Services

Some people may prefer the “do it yourself blueprint” for retirement and financial planning. A written, personalized retirement and financial plan is available for a flat fee, based on the gross value of the estate. Implementation of the written plan is then up to you.

Many retirees—especially widows—depend on us to help them maintain their standard of living by providing a secure, steady, determinable stream of income. At the inception of your relationship with us, we will determine the level of income that you currently need to live comfortably and – figuring in taxes, inflation, emergency funds, future healthcare needs, and gifting plans — will determine the best mix of assets suited to provide for both your current and future income needs. Generally, clients merely pay a fee on the assets being managed, ranging from 1.0% to 1.5%, which is billed quarterly.

Americans are the most philanthropic people on the planet, mostly because we truly believe in helping others. Our tax code reflects this great American characteristic by encouraging and rewarding philanthropy through tax breaks. Most people know that when they give money to a charity, they can deduct a certain amount from their taxes. What most people do not know is that certain types of charitable entities and trusts can also benefit themselves and their families, while also benefiting the charitable purposes they care about, mostly at the expense of the IRS (in terms of lost tax revenue). In many instances, capital gains taxes and estate taxes can be significantly reduced, deferred, or even eradicated.

Our philosophy on investing is simple: No one has more of a vested interest in your assets growing than you! The person with the next most vested interest should be the one investing—and watching—your assets. That should be your financial advisor. Thus, our philosophy is to manage everything in-house, since nobody—besides you—has more of a vested interest in protecting and growing your money than we do. In our fee-only investment accounts, we are sitting on the same side of the table as you, as a trusted partner in your account’s success.

The first step in any account relationship is to define the goal. Most of our clients fall into three general categories: Those that want income now, those that want income later, and those that will never want income. Regardless of which category fits you, an assessment of your risk tolerance and your investment experience must then be gauged, in order to define what we call your “deviation tolerance”—that is, the percentage of fluctuation in your account that you can tolerate before you start losing sleep. Certainly, the attainment of certain goals that have known time horizons are considered, like retirement or the purchase of a mountain home.

Once we have determined your risk tolerance, time horizon, and income need, the next step is to look at taxes. All of our model portfolios are either taxable or non-taxable. Obviously, if we are managing an IRA or some other tax-deferred or tax-free vehicle, we are not concerned with turnover, or holding periods, or the tax characterization of certain distributions or interest. In non-qualified accounts, however, the story is much different. These need special care so as to avoid short-term capital gains and ordinary income whenever possible. Thus, our tax efficient models often invest in state specific municipal bonds to eliminate both federal and state income taxes on our fixed income instruments. In addition, our equity positions are not rebalanced or reallocated without great thought given to the taxable realization and recognition in your account.

Having arrived at an appropriate model for your account’s allocation—e.g., how much is allocated to small cap growth, large cap growth, emerging markets, etc.—then the next step is to ‘plug in’ the best investment conduit available in the entire investment universe. Magellan Planning Group has established an Investment Committee made up of Kevin Meaders, Blake Bozeman, and Len Bittner who meet regularly to assess market conditions and determine if changes to our model portfolios are appropriate. Our investment committee’s mandate is to research and obtain the best investment without regard to the type of investment. These can include individual issues, mutual funds, exchange-traded funds, unit investment trusts, real estate investment trusts, or enhanced index funds.

The initial investment is really only the beginning. Every week, our investment committee revisits the model portfolio holdings and tracks their performance daily.

Recent mortality statistics suggest that a couple aged 65 today can expect a 50% chance that one of them will live to age 95. With healthcare costs on the rise, and the absence of government programs like Medicare paying for convalescent care, it is no surprise that the number one cause of bankruptcy among retirees is the cost of long-term care. We are researching the best long term care plans on the market, as well as the more prominent retirement and assisted living facilities in the Atlanta area. Whether you’re planning to self-insure, or would like to search for a plan that covers your lifestyle and retirement preferences, we can help you determine your exposure and plan accordingly.

Life insurance can be a confusing component of your estate, especially since many new types of life insurance have been introduced in recent decades. The planners of Magellan Planning Group are extremely proficient and experienced when it comes to placing and managing life insurance. Most clients use life insurance as a way to replace estate taxes, and thus will own life policies within an irrevocable trust (ILIT). The tax laws surrounding this type of arrangement can be very ominous and potentially devastating if not handled properly. For instance, many people do not realize that the entire life insurance death benefit can be taxed almost as high as 50% if not properly structured, or if flaws exist. Since our clients’ policies are owned by trusts as the rule rather than the exception, our clients can be assured of professional and experienced handling of their life policies.