Case Study:

 

INVESTMENT MANAGEMENT - GENERAL

Bob and Susan are successful entrepreneurs. They have successfully built a family business and have steadily increased their net worth over the past 20-30 years. Bob and Susan turned to Broadway when they realized that they needed estate planning and asset diversification, two objectives aimed at keeping more of what they have worked so hard to accumulate.

In addition to estate planning guidance, we also worked with Bob and Susan to assess their overall financial situation. The investment plan was straightforward and relatively simple. What Bob and Susan had was a successful, non-diversified business. What they did not have was security. A conservative tax-free bond portfolio fit their objective of security and potential liquidity very well. This approach offered a better after-tax return than they could achieve by rolling 6-month CDs. It allowed them to spread their investment maturities over a more meaningful time period so they were not exposed to interest rate risk by having all of their funds mature at the same time. When the economy turned down in late 2008 and through early 2009, Bob and Susan’s business was affected like almost all businesses. They are still doing well, but there was more uncertainty then they had seen in many years. The steady performance of their investment portfolio at Broadway served as a point of stability in an otherwise unstable environment. The presence of this stable portfolio has allowed Bob and Susan to remain steadfast in maintaining their very successful business as they know at least part of their money remains relatively unaffected by the poor economy.

We meet regularly with Bob and Susan and have plans at some point to direct more of their assets toward a more broadly-diversified investment portfolio. At that point, Broadway can add additional value by investing Bob and Susan in a variety of growth investments such as stocks, hedge funds, and commodities. However, for now, we recognize that it is not the complexity of the plan that adds value. Rather, it is the fit of the plan to the overall picture and the open communication that brings value.

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INVESTMENT PRODUCTS:
NOT FDIC INSURED • NOT A DEPOSIT
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
NOT BANK GUARANTEED • MAY LOSE VALUE

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210.283.6500 • Outside San Antonio call toll-free 800.531.7650
1177 N. E. Loop 410, San Antonio, Texas 78209