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INSIDE LOOK

3rd Quarter 2021


Welcome back to Lake Street Advisors Inside Look, our quarterly newsletter where we will provide you with our insights in addition to industry related news, articles, and updates within our firm.

Being a Problem Solver

 

I will show my true New England roots here by lamenting that by the time that you read this summer is likely to be “unofficially” over. I hope that you have been able to find time to enjoy it!

Our work with our clients nearly always involves planning around uncertain outcomes (direction of the markets, evolution of the tax laws, etc). Therefore, it is likely not surprising that our approach to problem solving is focusing on what we can control. Our team combines different backgrounds, experiences, and expertise to successfully solve complex problems for our clients and drive better results. We aren’t afraid to tackle the tough challenges and create opportunities from them. This is also one of our core values!

When it comes to problem solving, the first thing that we emphasize is being proactive. Our clients’ lives are busy and they rely on us to give them time back so that they can focus on the things that are truly important to them. If we can proactively identify potential issues or opportunities, we are off to a great start.

Problem identification is not the same as problem solving, however. The latter requires a good deal of horsepower and we have worked hard to ensure that our team has more than enough to work through the complex issues that our clients face.

Things take time and there can be bumps in the road (Yes, the planning fallacy is real as much as we all try to guard against it!). Our expectation is that our team is persistent - always seeing things through to completion, all while exhibiting positive energy. We believe a combination of these attributes is required for an effective solution.

Below is a hypothetical case study where the team at Lake Street would use our ability to proactively problem-solve to reach the best possible outcome for a client.

Background: Imagine a family having equity in a start-up expected to be valued at $100M+ after a liquidity event that is on the horizon. The most recent valuation put the position at a 50%+ discount to that expected value. The equity is also Section 1202 (QSBS) qualified.

Purpose: Their objectives are to maintain enough assets to support their personal lifestyle, while efficiently passing down wealth to their heirs.

Lake Street’s Strategy: In order to understand and identify the “problem”, our team proactively initiated discussions around the family’s stated purpose and objectives.

Lake Street’s Execution: Once the “problem” is identified, we introduce an attorney and collaborate (leveraging our horsepower along with the team of other professionals) on a strategy to establish a SLAT (Spousal Lifetime Access Trust) for a portion of the holdings and an Irrevocable Trust meant for future generations for another block of equity.

Ownership of Results: Our team takes responsibility for the implementation of a thoughtful strategy, which could eventually result in an efficient use of gift exclusions and significant income tax savings. We remain persistent, following up to make sure that “i”s are dotted and “t”s crossed, which is critical!

As I mentioned at the open, it is hard to believe that we are rapidly approaching the 4th quarter. We hope that 2021 has been healthy and enjoyable for you thus far.


Sincerely,

Buddy Webb
Managing Partner

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Team Updates

Lake Street has added some new faces to the team!

Meet Shawn,

Shawn Valliere is a Relationship Manager. He partners with clients to understand their holistic situation and help them navigate the complexities that accompany significant wealth.
Shawn Valliere
Ali Rybicki

Meet Ali,

Ali Rybicki is a Relationship Manager. In this role, Ali is responsible for managing all aspects of her client relationships while providing them with wealth management strategies and family office services. 

Meet Hunter,

Hunter W. Steadley, CFA, CAIA is an Investment Manager. He is responsible for portfolio management, investment research and acting as a liaison between firm managers and clients.
Hunter W. Steadley, CFA, CAIA
Travis Broadhurst

Meet Travis,

Travis Broadhurst is an Investment Operation Analyst. He is responsible for executing client trades, managing the implementation and execution of client investment decisions, and preparing alternative investment transactions.

Meet Sarah,

Sarah Smets is a Client Service Analyst. She is responsible for servicing a variety of client needs including asset movements, reporting, and process documentation, while communicating with custodian banks to ensure accuracy and timeliness for all client requests.
Sarah High Res crop
Madison Dunn Web Photo

Meet Madison,

Madison Dunn is a Client Service Analyst, she serves a primary point of contact with custodian banks on behalf of the firm’s clients. She also handles a variety of client service activities, including asset movement and account maintenance.


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Charitable Giving

Lake Street advisors is supporting the End MS Now Golf Invitational this month with a donation of $5,000. The End MS Now Invitational benefits the National Multiple Sclerosis Society.  The National MS Society is the leading non-profit in the United States focused on helping the over one million people afflicted by MS in the United States.

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Awards & Accolades

We are excited to share that Lake Street has been recognized as No. 16 on Financial Advisor Magazine's 2021 Top 50 Fastest-Growing Firms list!


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Senior couple meeting financial adviser for investment

In case you missed it

Check out our most recent blog posts where we detail the creative use of lifetime and GST exemptions and how to weigh income and estate tax savings with future flexibility.

IMPORTANT DISCLOSURES AND DISCLAIMERS

This hypothetical case study is provided for illustrative purposes only and does not represent work we’ve done on any client of Lake Street Advisors nor is it intended to be representative of any client experience. Instead it is meant to provide an illustration of Lake Street Advisors approach to planning and tax strategies we believe would be appropriate given the facts and circum-stances of the hypothetical case presented.

An individual’s real world experience may vary significantly from the results portrayed in the hypothetical case based on the unique facts and circumstances of each individual. There is no assurance that Lake Street Advisors would be able to achieve similar results as those portrayed in similar situations.

This hypothetical case is not to be interpreted as a testimonial or endorsement of Lake Street Advisors nor the advice or services we provide. We make no representation that any past or present client that may have engaged us to provide similar advice or services to those described in the hypothetical case approves of Lake Street Advisors or its services.

This hypothetical case study is distributed for informational purposes only. The opinions expressed may contain certain forward-looking statements and should not be viewed as recommendations or personal investment advice nor should it be considered an offer to buy or sell specific securities. All information contained in this hypothetical case are obtained from what we believe to be reliable sources.

Past performance is not an indication of future returns. Any legal, tax, and/or insurance related information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal, tax, or insurance advice. We do not provide legal, tax or insurance advice. Always consult an attorney, tax, or insurance professional regarding your specific situation.

Our statements and opinions are subject to change at any time without notice and should only be considered in the context of a diversified portfolio. Individual securities or markets mentioned in this hypothetical case study are not necessarily held in client portfolios and our opinions expressed about them should not be seen as a recommendation to buy, sell or hold any of them.


You may request a copy of the Lake Street Advisors firm Brochure, Form ADV Part 2, which describes the risk factors, strategies, affiliations, services offered, fees charged, and other important disclosures.