Many wealth managers find over time that their practice takes on a particular niche, either by accident or by design. In the case of Wealthspire Advisors, a $31 billion RIA with nearly 380 planning professionals on staff, it was a combination of both.
The firm traces its roots to 1995, when Howard Sontag left the legal profession to found Sontag Advisory, which later acquired Bronfman Rothschild and rebranded as Wealthspire. Sontag’s personal experience as an attorney led to a natural focus on serving successful lawyers and similar service professionals and business owners.
In a new interview with ThinkAdvisor, Wealthspire senior vice president Kevin Brady said working in this niche is both rewarding and challenging, especially as it pertains to helping clients envision, plan for and enter retirement.
Retirement for attorneys at top law firms comes with unique complexities, he noted, including unfunded pensions, deferred compensation and capital accounts that can make even the most financially sophisticated partners struggle with the transition.
Adding to the complexity is a seemingly ever-changing tax policy landscape. Starting next year, for example, workers ages 50 and older earning more than $145,000 annually must make any 401(k) plan catch-up contributions in Roth-style accounts.
For many high earners, this means potentially losing thousands in deductions during peak earning years, getting pushed into higher brackets, and facing limited flexibility if their plan doesn’t offer a Roth option. But Roth accounts have their own virtues, which include tax-free withdrawals later in retirement and no required minimum distributions.
To tackle the complexity, Brady uses a systematic approach to fully assess incoming clients and their unique financial situations. While tailored especially for attorneys, the checklist of questions and considerations can also help advisors serve other successful professionals in the retirement planning process.
See the slideshow for an overview of key questions Brady regularly employs to start the financial planning process with new clients.
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