Lenox Advisors
- 2. Welcome to Lenox Advisors “We help our clients realize their dreams by integrating and overseeing virtually every aspect of their financial lives.” Michael Book, Managing Partner, Lenox Advisors Lenox Advisors is a unique wealth advisory firm focusing on high-net-worth individuals, including Achieving financial success does not always simplify life. In fact, A single-source wealth advisory firm for successful executives, affluent affluence generally increases the complexity of the decision-making individuals, business owners, professional athletes and entertainers, corporate executives, business owners and entrepreneurs. Most of our clients retain us to be their process. The greater one’s wealth, the more time and knowledge must be Lenox Advisors provides oversight and strategic management of invested in maintaining its growth, protection and ultimate distribution. every aspect of clients’ financial lives, from asset management to “personal CFO.” We coordinate all aspects of their financial lives, including retirement planning, asset financial planning; from risk management and insurance to estate Attorneys, accountants, insurance brokers and financial planners can and retirement planning. Lenox Advisors’ highly skilled specialists management, risk management, estate planning, insurance, children’s college education, etc. For our offer invaluable advice, but most offer services independent of one listen closely to clients, learning their values and goals, then craft the corporate clients, we advise them on all different types of benefit programs and qualified plans for another. It is often up to their clients to sift through the individual strategies and engineer the follow-through to help ensure continued recommendations, evaluating each to determine which are the most financial success. Lenox Advisors reduces the complexity in clients’ their employees, including customized executive carve-out insurance programs for senior executives. appropriate. financial lives, which helps to increase clients’ financial security. The ideal solution is a wealth advisory firm that can help define and Lenox Advisors counsels not only individuals but also corporate clients, achieve each client’s unique, long-term goals through a comprehensive, from small firms to global businesses. Designing competitive, flexible Lenox Advisors offers: holistic program of investments, tax planning , asset allocation, risk * benefit packages is a top priority for successful businesses—and management, insurance, retirement planning and estate planning. because compensation and benefits often comprise a significant ○ Private Wealth Management ○ Lenox Corporate Benefits portion of the net worth of affluent individuals—corporate services is > Fee-Based Financial Planning/Lenox CFO™ > Group Insurance Benefits Lenox Advisors helps provide that solution…in an independent, a top priority. objective and integrated fashion. > Asset Management > Corporate Executive Carve-Out Insurance Programs ○ Insurance Brokerage > Life Insurance > Disability Income Insurance * The information provided is not written or intended as specific tax or legal advice and > Long Term Care Insurance may not be relied on for purposes of avoiding any Federal tax penalties. We are not authorised to give tax or legal advice. Individuals are encouraged to seek advice from > Annuities their own tax or legal counsel. page 1
- 3. lenox private wealth management Lenox CFO™ “Managing your wealth can be an intimidating process. We turn anxiety into empowerment by working with our clients to develop a set of financial goals and a game plan for achieving them.” Rick Van Benschoten, CFP® Managing Partner, Lenox Advisors , As their wealth grows, affluent individuals express concern that their financial lives are increasingly complex. They face a wide array of complicated decisions every day. How can they secure their financial future, including estate planning, retirement and asset management? How do they communicate their financial values to their children? What is the best way to care for aging parents? How do they meet philanthropic aspirations? Clients hire Lenox to become their “personal CFO.” As a single- A key differentiator of Lenox is our values-based approach to wealth source financial advocate, Lenox works collaboratively with clients’ management and how it threads throughout your relationship advisors to create a focused, vertically integrated strategy that with Lenox. All of our recommendations are sourced through your drives all present and future financial-related decision-making. The “Money Constitution,” a document reflecting your (and your spouse’s) Lenox CFO™, the firm’s proprietary platform for streamlining the relationship to money. financial planning process, enables Lenox to coordinate each client’s financial matters—asset management, risk management, retirement, For example, what are the values you grew up with and what do you insurance, children’s college and estate planning.* want to pass on to your children? What values do you and your spouse agree and disagree on? What would we have to do together over the Lenox Advisors’ team of Certified Financial Planners™ professionals next five years for you and your spouse to believe we’ve succeeded in ® (CFP professionals), Certified Public Accountants (CPAs) and managing your financial affairs? ○○ Cash○Flow/Retirement○ ○○ Estate○Planning○Strategies attorneys* work together to provide clients with comprehensive Planning ○○ Risk○Management/ planning advice, continuously, as the economic environment and their Realizing that wealth management is a family issue, Lenox has a >>“What>if”>Scenarios> Insurance○Coverage personal circumstances change. proprietary platform, the Lenox Money-Smart Kids™ Program, to help >>Major>Purchase> ○○ Lenox○Vault○for○all○ parents communicate their financial values and educate their children Expense>Modeling> Personal○Documents Cutting-edge technology gives Lenox Advisors’ clients the ability to about money and philanthropy. Lenox knows preserving generational >>Retirement>Income,> ○○ Balance○Sheet/Net○ organize all of their advisors and assets and consolidate them in the wealth cannot be accomplished without preserving values. Distribution>and> Worth○Statements same place, at the same time. This frees them from the smallest (but Tax>Minimization> ○○ Lenox○Money-Smart○ often the most critical) details of wealth management, giving clients Strategies Kids™○Program the freedom to devote more time and attention to other important ○○ Asset○Allocation○ >>Financial>Literacy> aspects of their lives. Strategies Resources ○○ Account○Aggregation >>Age-Based>Lesson> ○○ Education○Funding Plans>for>Children>> * Not practicing on behalf or MML Investors Services, LLC, member SIPC, or its affiliates. page 2 page 3
- 4. lenox private wealth management Lenox Asset Management “The one certain way to improve investment returns is to reduce expenses, and the greatest expense in most investment portfolios is taxes. We believe wealth is amassed by focusing on after-tax returns, not pretax returns.” Greg Olsen, CFP® Partner, Lenox Advisors , ○○ Access○to○Separately○ Managed○Accounts ○○ Municipal○and○Taxable○Bond○ Portfolios ○○ Equities ○○ Alternative○Investments ○○ Real○Estate○Investment○Trusts ○○ Commodities-Based○Funds ○○ Oil○and○Gas○Partnerships ○○ Equipment○Leasing○Programs ○○ Mutual○Funds ○○ Variable○Annuities Successful wealth management is a process, not an event. Securing one’s financial future, particularly Lenox Advisors takes the time to listen to clients and understand INVESTMENT VEHICLES Lenox Advisors has no proprietary prod- how they accumulate their wealth: success in a self-built business, ucts, and utilizes an open architecture through consulting firms that in an uncertain economic environment, requires continuous oversight by an integrated team of inherited money, a concentrated stock holding in a public company. assist in the initial and ongoing due diligence of money managers. Lenox then structures recommendations based on each client’s Lenox implements portfolios through some of the best money financial professionals who are able to provide insightful advice and timely execution against an particular financial goals, including spending needs, multigenerational managers and private firms available, and uses passive investments estate planning goals, and future philanthropic aspirations. We believe where appropriate. agreed-upon set of financial goals. Such oversight provides strategic perspectives on specific issues, successful asset management should be part of the overall estate, including: What asset allocation is appropriate for your level of risk tolerance? Or, in which accounts business and financial planning and should not be operated as a stand- ASSET OWNERSHIP Often overlooked, asset ownership is an alone silo. Thus, all analyses and recommendations are based upon important aspect of investment planning. For example, tax-inefficient should you own specific investments in order to maximize after-tax returns? Lenox Advisors’ understanding of each client’s objectives. investments can possibly be moved to tax-deferred accounts, and assets targeted for future philanthropy or future generations will have ASSET ALLOCATION* Lenox Advisors takes an institutional approach different allocations than those assets required for current spending to individual investing, encouraging clients to approach their portfolio or the current generation. These types of investment details could asset allocation similar to a college endowment or charitable foundation. yield far more in returns than market timing or investment selection. All asset allocations start with the basic percentage allotments to cash, stocks and bonds in relation to a given time horizon. Diversification into PERFORMANCE AND PORTFOLIO MONITORING Specific goals and traditional and nontraditional investments within each sector is then monetary aspirations can change over time. Likewise, the cycles of added to help increase the return expectation while also effectively the global markets and the structure of the world economy ebb and helping to reduce the downside risk of the overall portfolio. Emphasizing flow through the years. Lenox Advisors meets regularly with clients to asset classes and investment vehicles that have little or no correlation constantly update the recommended asset allocation, rebalance the in a market cycle helps to increase success. overall portfolio or replace the investment vehicle or manager. Any modification is made based on a clear understanding of each client’s current situation and future goals, and on up-to-date economic and investment vehicle analyses. * Asset allocation does not guarantee a profit or protect against loss in declining markets. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio or that diversification among assets classes will reduce risk. page 4 page 5
- 5. Lenox Insurance Brokerage “Insurance planning can be an intimidating process. We focus on educating our clients so they can make informed decisions on protecting themselves and their families.” Greg Olsen, CFP® Partner, Lenox Advisors , Because asset protection, risk management and insurance are critical elements in any financial plan, Lenox Insurance Brokerage customarily reviews clients’ insurance portfolios and identifies the creative strategies designed to help meet their changing needs at every stage in their lives. Do clients have the right amount of coverage? Do they have the right policies and carriers? Would an annuity be an appropriate part of their risk management planning? Lenox Advisors’ life insurance portfolio consists of products offered And finally, as long-term-care costs continue to rise, about 10 million by some of the country’s best insurance carriers. Whether the client Americans age 65 and older now depend on long-term-care services, needs a simple life insurance policy or a more complex private and that number is expected to double by 2040. Additionally, an esti- 1 placement life policy, Lenox Advisors’ specialists have the knowledge mated 70 percent of people who reach the age of 65 will need some and resources to meet that need. form of long-term care before they die. 2 The ability to earn an income is the bedrock for financial security. Selecting the right insurance is a critical element in a comprehensive What would happen if that were taken away? Lenox understands the program of risk management, but it’s only one element. As clients’ lives importance of Disability Income Insurance, an often overlooked piece change, so do their needs. The specialists at Lenox Advisors review of an individual’s financial affairs and specializes in providing the most with clients their entire portfolio regularly to help minimize risk and ○○ Life○Insurance appropriate coverage for our clients. maximize financial security. ○○ Disability○Income○Insurance○○ (Personal○and○Corporate○Endorsed) ○○ Long○Term○Care○Insurance○○ (Personal○and○Corporate○Sponsored) ○○ Fixed○and○Variable○Annuities ○○ Private○Placement○Life○Insurance ○○ Private○Placement○Variable○Annuities ○○ Home,○Auto○and○Umbrella○○ Liability○Insurance* ○○ Ownership○Structure,○Trusts** ○○ Buy/Sell○Agreements○(Life○and○Disability) ○○ Key○Person○Coverage ○○ Business○Succession○Planning 1 "Report Projects Future Need for Long-Term Care, Effects on Family and Public Policy." The Urban Institute. 5/7/07. ○○*Provided>by>third-party>vendors> **>Services>provided>by>the>Mass>Mutual>Trust>Company,>FSB. 2 Council of Economic Advisors. Economic Report of the President. Washington, DC: U.S. Government Printing Office. February 2007. page 6 page 7
- 6. Lenox Corporate Benefits “Our group benefits practice is designed around one concept: extraordinary service. We treat your executives as if they were our own.” Gregory K. Large, CLU, ChFC, Managing Partner, Lenox Advisors ○○ Bullet○List Lenox Advisors Group Benefits differentiates itself by having the technology and resources of a large GROUP BENEFITS A key resource for our clients is the bswift® HRIS EXECUTIVE CARVE-OUT / MULTILIFE CAPABILITIES At Lenox (Human Resources Information System) and benefits tool. It’s an Advisors, we treat corporate executives as if they were our own. operation, but providing the personal attention of a smaller, specialized firm. Is your staff trained integrated web-based solution that combines benefits, HR and payroll We specialize in designing and implementing corporate voluntary administration. One which includes state-of-the-art technology to benefit offerings with discounted individual insurance* and executive and prepared to administer the new HIPAA and COBRA regulations? Have you explored minimum help administer online enrollments, detailed reporting, and tracking benefit strategies. and performance management. bswift also offers a unique “plug and premium or self-insuring your group benefits? Have you considered a Section 125 plan? Lenox creates play” upgrade capability to help offer additional best-in-class service We have the technology and resources of a large operation, but provide customized, scalable recommendations in an end-to-end service platform. A team staffing structure technology as desired. the personal attention of a specialty firm. With a national presence, we can execute voluntary benefit programs on a face-to-face basis. provides constant access to professionals in the employee benefits field so that corporate clients can Lenox Advisors’ proven processes can deliver some of the most productive benefits programs possible for clients, educating and When companies endorse Lenox Advisors to provide objective assess- continue being experts in their own fields. increasing the appreciation and loyalty of their most valuable assets: ments of their executives’ individual insurance coverage, we take this their human capital. as a serious responsibility—to them, their executives and ourselves. We use web-based technology enabling us to efficiently and effectively ensure that your executives are getting individualized attention every step of the enrollment and application process. Lenox Advisors’ knowledge, personalized support and administrative capabilities yield higher participation levels in employer-sponsored voluntary insurance offerings than you may have thought possible. * Subject to approval. page 8 page 9
- 7. Lenox Corporate Benefits Imagine working with Lenox Advisors and accumulating goodwill from your executives without bearing additional administrative burden and costs. Lenox provides personalized benefits consultation for executives: Lenox adds value without adding cost or administration. ○ Our team of highly skilled professionals meet one-on-one with every ○ Our voluntary offerings cost companies nothing. The employees executive to discuss his or her unique situation. choose to apply and pay for the offerings. ○ We do not inundate executives with marketing materials and enrollment ○ There is little or no additional administrative burden to your firm. We or application forms. We sit down, face to face, and review the offerings. can do virtually everything: ○ Executives can gain a deeper personal understanding of the benefits > Coordinate and manage insurance carrier and vendor relationships offered, how they work with the existing coverage and fit into their > Oversee underwriting processes overall financial portfolios. > Plan and execute employee communications ○ We save human resource professionals valuable time by being the > Offer one-on-one and online educational and application services point people who field executives’ questions and inquiries. ○ Our web-based technology allows us to monitor every detail of the enrollment and application process to help ensure that your program Executives gain access to a firm that Investment Advisor magazine is successfully implemented. ® ○○ bswift ○HRIS○(Human○Resources○○ describes as the “epitome of wealth management done right.” * ○ We develop communications that reinforce your key messages and Information○System)○Technology philosophy about benefits. We find good communications result in ○○ Group○Benefits○Brokerage○○ ○ With Lenox Advisors, executives are introduced to knowledgeable and better and more effective perceptions of the program itself as well as and○Consulting○ highly skilled professionals; professionals who will help them seize its follow-on messages. ○○ Health○and○Welfare unique opportunities while saving them time, effort and frustration. ○ Our personalized service extends well beyond underwriting and ○○ Disability/LTD ○ Our parent company, National Financial Partners (NYSE:NFP) provides delivery of the policy. Whether it’s a general question about the policy, ○○ Group○Life○Programs○ us access to a wide range of insurance carriers and the critical mass a need to revise coverage policy or even the need to initiate a claim, ○○ State○DBL○Programs○ needed to negotiate favorable rates. This enables us to identify appropri- the employee can deal directly with his or her Lenox representative. ○○ STD/A.S.O.○Programs ate strategies designed to help meet your executives’ specific needs. ○ Companies gain value by providing a tremendous opportunity for ○○ Voluntary○Benefit○Programs○ ○ Our corporate programs usually allow for discounted rates not available executives to get something they may not be able to get elsewhere. ○○ Executive○Carve-Out○Programs○○ in the individual retail market. Companies are helping executives secure their financial future and ○ We can often leverage the industry’s leading electronic application demonstrating in a very real way that they are important. Showing you technology to help maximize the efficiency of your executives’ care goes a long way in the race to attract and retain talent. benefits experience. page 10 *Investment Advisor, July 2006 page 11
- 8. Independence, Objectivity and Integration “It’s no surprise that our business is built almost entirely from referrals from clients, accountants and attorneys.” Thomas Henske, CFP® Partner, Lenox Advisors , It takes the combined ability of a team of trusted advisors—attorneys, accountants, insurance Lenox Advisors’ approach is founded on building a deep understand- ing of the unique needs of each client. It is Lenox’s mission to become brokers and financial planners—working in concert, collaboratively and seamlessly, to help assure aware of the changes in clients’ life circumstances in order to antici- pate and respond creatively to new risks and emerging opportunities. financial security. Lenox Advisors integrates financial security into financial success by delivering an The end result is a coordinated financial plan, updated regularly, that will help meet each client’s individualized wealth management goals. unprecedented level of specialized knowledge and personalized service entirely focused on helping The financial plan traditionally ends at the time of delivery. You are able our clients grow, protect and distribute their wealth. to implement the plan with the advisor of your choice. Lenox is a part of National Financial Partners (NFP), a publicly traded company focused on the distribution of financial services to high- net-worth individuals and growing entrepreneurial companies. This gives Lenox the ability to offer its clients the benefits of objective, independent advice together with all the resources of a leading national organization. page 12