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The Wealth Management Perspective (Continued)

Nachman and Norwood shared some other key points high net worth individuals should consider:

Have a Plan:

It is important to understand what should be included in a plan. Your plan should include current needs, long-term spending goals, education goals, legacy goals, philanthropic goals, and any luxury goals. Good planning requires complete transparency with your advisor, and he or she should be updated as situations change.

Watch Your Budget and Control Expenses:

Too often, high net worth individuals do not live within their means and income, but instead depend on their portfolios and returns to support their lifestyle. It is critical to watch your budget, control expenses and create realistic spending plans that take into account difficult economic and investment conditions, not simply the most optimistic ones.

Key Performance Indicators:

Make certain that your financial plan includes key performance indicators (KPIs) that show the progress you are making toward your goals. The KPIs should be limited, relatively easy ones to grasp, and include a retirement goal, spending goal, estate goal, and risk goal.

Sharing the Plan:

Your plan often concerns not just yourself and spouse but also your children, grandchildren and often stepchildren. Sharing your plan with those involved is important, so that when something changes, all parties are as prepared as they can be. “Clients who seem to be happiest are those families or couples who have their finances aligned and work on their finances together,” says Bob Nachman. “Those who have their financial house in order

are generally those who are on the same page, working from the same plan, toward the same goals.”

Build After-Tax Savings:

It’s important to have after-tax liquid savings beyond your retirement account so that you have available funds to draw on. Solely relying on qualified plan dollars can result in large tax consequences as well as liquidity challenges. The rule of thumb that most people should follow is to set aside about 15% of each paycheck and to make sure some savings funds stay outside of retirement accounts.

Retirement Planning:

Too often when high net worth individuals think about retirement, they do so through the narrow lens of the impact retirement will have on their finances. They don’t give enough thought to the question of what they will do with their newfound time. This is especially true of entrepreneurs and business owners. “Psychologically, retirement might be the biggest change for many of our clients,” says Ben Norwood. “Having worked hard for all of their life and no longer having the obligation of tending to a daily business, many of them are not prepared for retirement. Change can take an emotional toll.” Retirement is best viewed through the lens of opportunity: a chance to pursue those hobbies, passions, and interests that many high net worth individuals could not pursue in their working years. Part of your retirement planning should include not only budgeting but also how to use that free time.

KEY WEALTH MANAGEMENT TAKEAWAY Create a wealth management plan, adjust as needed, and make sure you communicate

your plan to everyone involved (professionally and personally).

The Wealth Management Perspective

If the volatile start to the markets in the first few months of 2016 demonstrated anything, it’s the importance of bringing perspective to managing your wealth. Investors who panic at the first sign of turbulence and sell assets may cause permanent damage to their portfolios. But to achieve a clear perspective, high net worth individuals must have a strong, resilient game plan in place, one designed to thrive over a long span of time.

“Pessimism is not a healthy state of mind for long-term investors. Generating positive investment results requires an unwavering commitment to the long-term,” says Bob Nachman of Nachman Norwood & Parrott Wealth Management Consultancy (NNP).

Another key point investors should focus on is watching their budget and controlling expenses. Living within your means and having a budget is important, no matter how wealthy you are. Even the largest nest egg has its limits. “High net worth individuals need to be sure they have a plan that can survive more difficult times,” says Ben Norwood of NNP. “Amongst the high net worth, we see many who do not live within their means.”

It is critical to share any life changes with your wealth managers and other important advisors. Sudden illness, divorce, death in the family, buying or selling a business, remarriage or other life changes can have a big impact on your plan. It is best to share those changes with your advisors.

Bob NachmanNachman Norwood & Parrott

Bob Nachman, CRPC®, is aManaging Director at NachmanNorwood & Parrott WealthManagement Consultancy.A longtime resident of Greenville,Bob entered the wealth managementindustry in 1986 and is a graduate ofTulane University.

Ben NorwoodNachman Norwood & Parrott

Ben Norwood, CPWA®, is aManaging Director at NachmanNorwood & Parrott WealthManagement Consultancy.A Greenville native, Ben entered the financial services industry in 1987 and is a graduate of the University of South Carolina.

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wealth management professionals

Contact Us—We value your opinion. Have a question or topic that you would like to see addressed in this newsletter? Contact Anna Beninate at 864.467.9800 or anna.beninate@nnpwealth.com.

NEWS FROM NNP3rd QUARTER 2016

Euphoria | September 22–25 | euphoriagreenville.com

Greenville Symphony Orchestra The Great Escape | September 24–25 | greenvillesymphony.org

Fall For Greenville | October 14–16 | fallforgreenville.net

Upcoming Events

1116 South Main StreetGreenville, SC 29601

864.467.9800nnpwealth.com

Lowcountry Jazz Festival | September 2–4 | lowcountryjazzfest.com

Southern Living Taste of Charleston | September 26–28 | southernliving.com

Pawleys Island Festival of Music & Art | September 24–October 15 | pawleysmusic.com

Piedmont Park Arts Festival | August 13–14 | piedmontparkartsfestival.com

Music Midtown | September 17–18 | musicmidtown.com

The Illusionists | September 27–October 2 | atlanta.broadway.com

This section and the listed websites are being provided for informational purposes only; events subject to change. Please note that we are not responsible for the information contained on the listed websites.

On June 9, 2016, Nachman Norwood & Parrott (NNP) published “Perspectives”, our first official

thought piece highlighting portfolio management, tax, legal, real estate and insurance planning insights for high net worth individuals and families. It is our belief that true wealth management consists of a plan that includes expertise and guidance from a solid team of professionals. For high net worth individuals, where many facets of life are increasingly complex, the need for a clear perspective becomes all the more important.

For that reason, we interviewed some of our partners who specialize in the key categories of wealth management whom we work with on a regular basis. As an industry leader, NNP understands that perspective is formed by multiple points of view, and no decisions are made in a vacuum. Engaging industry professionals to help guide specific areas of wealth management can help you make better informed decisions and help you maintain a long-term plan. We hope you will discover insights in “Perspectives” that broaden your outlook on what is included in the management of your wealth.

NNP specializes in meeting the needs of high net worth clientele by utilizing a holistic, team-based approach. Our team-based approach provides the collective experience of our entire team and requires understanding the entirety of our clients’ lives: your families, your businesses, your beliefs, your goals, and your responsibilities to yourself, parents, children and grandchildren. And it is about recognizing the importance of coordinating between your tax advisor, your attorney, and all the other experts who play a role in helping you manage your hard-earned wealth. Wealth brings choices, and we believe a holistic approach creates the perspective to help you choose wisely.

NEW PERSPECTIVES

We invite you to download “Perspectives” at

nnpwealth.com/perspectives and look forward to

continuing this discussion with you soon.

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Perspectives

©2016 NACHMAN NORWOOD & PARROTT / / NNPWEALTH.COM

Wealth management, tax, legal,

real estate, and insurance planning insights

for high net worth individuals and families

NNP / / PERSPECTIVES / / 1

Perspectives

©2016 NACHMAN NORWOOD & PARROTT / / NNPWEALTH.COM

Wealth management, tax, legal,

real estate, and insurance planning insights

for high net worth individuals and families

There has been much discussion recently surrounding the wealth management industry and whether or not

we work in the “best interests” of our clients. As hard as it is to believe, the traditional brokerage industry is not legally held to this standard. While we cannot speak to the industry as a whole, we can state unequivocally where we at NNP stand.

Since its founding, NNP has pledged to always do what we believe to be in our clients’ best interests. Rather than just saying this, we have built an organization to support this commitment. A few of the cornerstones of this structure include:

• Being independently owned

• Choosing investment vehicles objectively while not representing any particular companies

• Charging fees for advice versus commission

• Compensating our advisors with a salary and share of NNP’s profits

According to NNP partner Al Cannon, “ Much of our service model and wealth consulting is organized around the principles and standards of the Certified Financial Planning Board.” Our commitment includes having four CFP® certificants on our team along with several other highly regarded financial designations. The CFP® certification mandates placing a client’s needs ahead of one’s own.

As the rules, regulations, and laws of our industry continue to evolve, our clients can rest assured that we are always committed to trying to do what’s right.

As an ongoing effort to continue our education and training in the wealth management industry and better service our clients, several of our associates have recently attended conferences:

The landscape of the West End continues to change. Earlier this year, a neighboring property at 1100

S. Main Street and the current address of Pendleton Street Baptist Church, was sold. Yeargin Potter Smith has been selected as the general contractor for the upcoming new structure, a West End apartment project. Demolition of the existing Pendleton Street Baptist Church building is scheduled for mid-July and the new project, a 271-unit, 5-story multifamily residential building and parking garage, is expected to be completed over the next 18 months.

While we expect heightened activity and noise from the new construction, access to our front and back parking lots will remain as is. Yeargin Potter Smith has requested closure of the eastbound lane of Rhett Street as well as closure of the sidewalks that border the project; however, both lanes of South Main Street and Perry Avenue should not be impacted.

This newest project underscores the redevelopment of Greenville’s West End—further bolstering the case for our relocation to the area in 2009.

The 22nd Annual Atlanta Senior Invitational Tennis Tournament took place May 11-15. Our own Al Cannon, a nationally ranked amateur tennis player, won in Men’s 55 Doubles and was runner-up in Men’s 55 Singles.

On June 12, Bob Nachman completed the Great Chesapeake Bay Swim, one of America’s premier open water swim challenges. The race consisted of a 4.4 mile swim across Maryland’s Chesapeake Bay. This year marked the event’s 25th anniversary.

We are thrilled to announce that our own Anna Beninate and her husband, Tony, are expecting their first child! Baby Beninate is due to arrive in late December. Congratulations, Anna and Tony!

Neighborhood News

Associate News

Wells Fargo Advisors Financial Network is not a legal or tax advisor. Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates.

Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Nachman Norwood & Parrott is a separate entity from WFAFN. ©2016 Wells Fargo Advisors, LLC. All rights reserved. CAR #0716-02132

Doing What’s Right

Wes Boyce• Davis Advisors Investment Forum,

New York City, May 19-21• Pinnacle Conference, Atlanta, June 20-22

Al Cannon • FiNet Forum, St. Louis, May 16-18

Maura Copsey • Barron’s Top Independent Women’s Conference, New

Orleans, May 18-20

Virginia Crider • FiNet Operations Conference,

St. Louis, June 27-29

Russ Miller • FiNet Forum, St. Louis, May 16-18

Gary Davis • National Association of Plan Advisors (NAPA) 401k

Summit, Nashville, April 17-19

Bob Nachman • FiNet Forum, St. Louis, May 16-18• Pinnacle Conference, Atlanta, June 20-22

Ben Norwood • Investment Management Consultants Association

(IMCA) Conference, Orlando, April 18-20

John Parrott • Investment Management Consultants Association

(IMCA) Conference, Orlando, April 18-20 • Pinnacle Conference, Atlanta, June 20-22