Working in Tandem



BY MIKE MCGILVARY
Financial Advisor

With still much uncertainty surrounding the capital markets, it is important to have a road map. At Marzano Capital Group, we remain optimistic as we move into the second half of 2020 and continue to work with our clients, as well as incoming new relationships.

There has been no shortage of headlines regarding the pandemic and how it has not only affected people’s health and the global economy, but also the small business community. Winston-Salem and the surrounding areas have been greatly impacted by the recent world events, but we as a firm, believe our community consists of people and businesses who are resilient. We plan to be a part of this resilience and we will continue striving to add value in helping families build their financial road map.

Many recent client conversations in our office have surrounded the CARES Act. This piece of legislation was enacted earlier this year due to the financial hardships COVID-19 has created. The new law can affect client circumstances, and a great way to add value for our clients is to make sure we are working in tandem with their professional network. What I mean by professional network is their tax professional(s) and their estate planner(s).

For example, we recently had a client that needed to take a withdraw from their Traditional IRA. Per the IRS, withdraws from IRA accounts are subject to a 10% early withdrawal penalty in the event the account owner is under the age of 59.5. Marzano Capital Group worked closely with the client’s tax preparer to explore if this distribution from their IRA would qualify for the waiver of early withdraw penalty. It turns out the withdraw did.

This example also dovetails nicely into another important point I would like to make. As we see it, the role of the Financial Advisor has evolved over the past 20 years in rapid fashion. Previously, the financial services industry was mainly transactional in nature. In today’s environment, advisors should be doing more than just discussing investment ideas with their clients.

We feel your advisor(s) should be your “financial quarterback” so to speak. They absolutely need to manage your assets efficiently and effectively, but they also need to be your go-to resource for financial considerations. If we work openly with our clients about their goals, but also work in tandem with other professionals encompassing taxes and estate planning, we can feel confident in our advice. In our opinion, your Financial Advisor should have a client-centric process, not just an investment product-based relationship.

Lasting relationships are important in our office and we are happy to report our firm has continued to grow these long-term relationships within our community. I hope everyone has a wonderful Independence Day and we look forward to continuing to add value where we can!


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