Services Provided by
Greenbrier Capital Corporation
Retirement Income Structuring
Qualified Retirement Plans
Mutual Fund Investing
Individually Managed Accounts
Trust Creation and Management
Tax-Deferred Real Estate Exchanges
Fixed, Variable and Indexed Annuity Investing
Below are descriptions of each of these services.
Pre-Retirement Accumulation and Retirement Income Structuring: Over the years we have managed assets in pursuit of the goal of their eventually supporting the client's retirement. We have had considerable experience in this area and have custom-designed many portfolios for clients at a variety of ages. What is right for one client may not be correct for another, so care must be taken to customize each portfolio and strategy to fit the situation.
At the time of retirement, it is important to examine, and often to alter, an investment portfolio's structure. We have experience in this area and are proactive in the pursuit of an appropriate allocation of resources in retirement. We have available all types of retirement plans, including 401k, Defined Benefit, Defined Contribution, and IRAs.
Qualified Retirement Plans: There is an array of options in the area of retirement plans for self-employed individuals and businesses. Sorting the opportunities out and custom fitting a plan to the situation is easy for us because we have been doing it for a long time and are connected to wonderful companies that specialize in just this arena.
The term wealth management was created by a Madison Avenue advertising agency for a famous financial services firm a few years ago. The term caught on, but most people still wonder what, specifically, it means. Generally Wealth Management refers to expanded services for the higher net worth/higher income clientele. The services would include upgraded help with tax strategies, estate planning, stock and bond sales/brokerage, individually managed securities accounts, the creation of trusts and their administration, and even financing. The more sophisticated companies, such as ours, that are advertising under this banner are also including private placement securities such as energy and real estate direct investments, hedge funds, managed futures, and so on. One should also note that "Private Banking" is a comparable and contemporaneous Madison Avenue creation that is broadly used by banks seeking to be seen as offering a similar menu of services.
In the last few years we have used the term Wealth Management in reference to our work. We like using the term Wealth Management to give the public a general idea of what we do because we offer more than a financial plan or investments.
Financial Planning: Financial planning involves examining the current situation of an individual, family or company, considering the financial and personal objectives of each, developing a plan for achieving those objectives, implementing the plan through an appropriate strategy including a tailored asset allocation model and asset management, and routinely monitoring progress, making adjustments as necessary. All of these steps may not be necessary in every case, but in order to do our best work we must have all pertinent information as revealed in the right degree of analysis.
Asset Allocation: In our twenty years of experience we have developed relationships with carefully selected managers and companies that create investments in all of the various asset classes. We utilize those relationships in order to arrive at a selection of investments and managers for each client's portfolio.
We do not recommend or track individual stocks or bonds. While we have the capability to do so, we choose not to house active trading accounts such as those found typically at traditional stock brokerage firms.
GCC opens and houses stock brokerage trading accounts for our clients, but only to close positions at cost (without a mark-up) so the cash produced may be reinvested utilizing our managed models of choice. This is because of our fundamental belief that our clients are better served by having all asset classes, including individual stock and bond portfolios, managed by the best professionals we can source.
When necessary, we stagger the liquidation of individual securities in line with tax needs.
Mutual Fund Investing: For stock and bond allocations below $300,000, we may utilize certain mutual funds which meet our expense efficiency and management excellence requirements. Mutual funds are professionally managed investment pools, each having a specific investment mission which is defined by the prospectus for the funds. Mutual funds have long been considered an effective means of diversification as well as a means to bring equity (stock) and bond assets under professional management for investors without enough investment capital to justify a custom, individually managed portfolio.
Individually Managed Accounts (Private Client Accounts): By using individually managed accounts for portfolios above $300,000, we may fully customize stock and bond portfolios to best reflect client needs. Doing so permits an avoidance of the performance damage (and tax expenses in taxable accounts) that is typically associated with excessive mutual fund redemptions during market downturns. It also allows for much greater customization and, if needed, tax control. This type of customized account management is arranged through our relationship with Mt. Yale Capital Management and The Bank of New York's select portfolio managers. The costs, operations efficiency and safety of custody with either Mt. Yale or The Bank of New York (which is America's oldest operating corporation) are quite impressive, as well.
In that Greenbrier Capital Corporation's individually managed accounts' managers are among the world's best, access to most of them is quite restricted due to their high minimum investment requirements. In some cases those minimums stand at ten million dollars, unless they are reached through relationships such as ours which permit participation with these firms at as low as the one hundred thousand dollar level.
Alternative Investment (Direct Investing): These investments have always been a part of our effort to best serve our clientele. Direct investments are sometimes called alternative because they are not in the traditional stock, bond, and cash category. Such investments are somewhat limited in availability and there is no daily, ongoing public aftermarket for them. It is our view that these "alternative investments" are among the best investments available. However, like all investments, they have unique risks and careful analysis is always in order. In this category we regularly have private placement investments as well as publicly registered investments available to us.
Investments in this class include Managed Futures, Real Estate, Hedge Funds, Energy, Private Notes, and Leasing, among others. From this firm's inception, client asset allocations have always included real estate direct investments. We believe that non-traded real estate investments act more like true real estate thereby delivering better non-correlation to the stock, bond, and other markets over time. That may result in greater returns with lower risk for our clients over time.
Insurance Planning: We have relationships with the leading insurance companies in the nation. If we see a need for insurance, we may recommend term or any of the other forms of life insurance available depending on client needs. Other insurance categories which we may suggest are disability, and occasionally, long-term care insurance.
Estate Planning: Through our relationships with attorneys and insurance organizations we have the ability to handle all aspects of comprehensive estate planning. This work includes creative methods of tax minimization and the control of estate assets via appropriate trusts and other sophisticated methods. Family owned business valuation and continuation is also addressed when appropriate.
Financing: Mortgage financing and business financing are areas in which we have provided counsel for many years. We enjoy useful relationships with certain lenders and their appropriate officers. Accordingly, we can be helpful to our clients in arranging loans on satisfactory terms.
Trust Creation and Administration: Through our interaction with selected attorneys and trust companies, we can assist in the establishment of trusts to meet any client need. Trust work must be carried out by qualified attorneys and the subject is complex. We maintain relationships with several qualified attorneys and can recommend as needed.
Tax-Deferred Real Estate Exchanges: Greenbrier Capital Corporation is nicely positioned to provide fractional interests in investment grade replacement property for sellers seeking exchanges under IRS Code Section 1031 and has significant experience in this field. Section 1031 exchanges provide sellers of appreciated business and investment property the opportunity to trade their position in the property being sold into a replacement property. This exchange, when carried out correctly, permits the deferral of capital gains taxes and depreciation recapture. Accordingly, all of the sale's proceeds may be transferred to the equity position in the replacement property, thereby being positioned to compound in full, having avoided the diminishing effect of taxation.
Variable Annuity Investing: We often use Variable Annuities (VA's) to benefit our clients in special ways the tax laws make possible. VA's provide the opportunity to grow an investment, usually for retirement, in a tax-deferred environment similar to that found in qualified retirement plans and IRA's. While principal placed in VA's is not tax deductible, there is no taxation on any growth until money is withdrawn. Essentially the same tax rules govern them as other retirement plans, so penalties apply for withdrawal prior to age 59.5. VA's permit the investment into portfolios of stocks and bonds where the value will fluctuate daily, thus the accounts' values are "variable." The VA's we work with have the additional ability to insure one's principal against loss, which we think is quite comforting for retirement monies.
Fixed Annuity Investing: In taxation rules these investments are quite like the VA's discussed above. Their income to beneficiaries may be immediate or deferred. However, they are classified as fixed income investments in which the principal does not vary daily with the securities markets and their yield is locked-in for a contractual period at a fixed interest rate. Payment of income from fixed annuities is guaranteed by the issuer so we use highly creditworthy issuers only.
Indexed Annuity Investing: A nice sub-class of the fixed annuity that has come about in recent years is the equity indexed annuity. These annuity hybrids are just like fixed annuities except that the return is tied to an index, such as the S&P 500. The annuity has a guarantee of principal and a guaranteed "floor" return but if the related index is doing well in a given twelve-month period, these annuities will yield some percentage of the index market's return via a set formula. Thus, they allow some degree of participation in the stock or other markets, without the associated downside risk of outright investing in the index itself.
Greenbrier Capital Corporation is honored to offer only investment advisory services and securities made available through H. Beck, Inc., member FINRA
, a Registered Investment Advisor and Securities Broker/Dealer, 11140 Rockville Pike, 4th
Floor, Rockville, Maryland, 20852, (301) 468-0100.
Certain employees of Greenbrier Capital Corporation hold securities licenses through H. Beck, Inc. but GCC and H. Beck, Inc. are unaffiliated entities.