BNB Wealth Management, LLC offers a fully integrated wealth management solutions are critical to satisfying growing client demands and to securing long-term relationships. Leverage support services that can provide you with the help you need to navigate the many considerations and requirements that are inherent in successfully supporting high-net-worth clients:
Employee Stock Option Exercises
Many companies offer their valued employees stock options in order to encourage ownership, foster commitment to the company, and share in the company's success. Options that are "in the money" may represent sizeable elements of compensation at executive or management levels. If you wish to exercise their employee stock options without funding the transactions independently, BNB Wealth Management, LLC can facilitate a variety of alternatives. You have the option to exercise your stock options in a full or partial sale, with the ability to margin all or a portion of the shares. BNB Wealth Management, LLC can provide prompt access to liquidity and allowing you to take advantage of these rewards, as available funds may be used for further investment and diversification.
Restricted and Control Stock
Maintaining large holdings of restricted or control stock has its rewards if a company does well, its recipients benefit greatly. These recipients may reap even greater rewards by selling all or a portion of their restricted or control shares and diversifying their portfolios. These types of securities are not freely saleable in public markets, and may be subject to applicable SEC Rules, such as 144, 701, 903, or Shelf Registration. BNB Wealth Management, LLC can guide you through the complexities of selling restricted or control stock.
Liquidity Solutions, Restricted and Control Stock Loans, Hedging Strategies
Restricted and Control Stock Loans
Liquidating large, concentrated holdings may not always be the most advantageous alternative for you. Significant tax ramifications may result if the stock was acquired at a low cost basis and has appreciated over time. You can leverage these holdings by borrowing against them. Under qualified circumstances, you can pledge your shares as collateral and use the loan proceeds to diversify your portfolios or satisfy other financial needs. You can liquidate funds, while maintaining ownership of the securities.
Corporate Executive Services can facilitate participation in hedging strategies on concentrated equity holdings. In some circumstances, accompanying liquidity solutions, such as cash advances and loans may also be structured on a hedged position. Restricted and control securities may also be eligible. Corporate Executive Services can coordinate participation in the following vehicles for you:
- Zero Premium Collars--you may opt for this combination of a long put and a short call, which offers downside protection and limited upside participation.
- Variable Prepaid Forwards--you may opt to sell some or all of the underlying shares at a future date in exchange for a cash advance in this strategy which reduces the risk of stock-price depreciation while maintaining stock-price appreciation up to the threshold level.
As you approach retirement age, you will likely begin to shift your planning emphasis from capital accumulation to capital preservation, and may consider moving substantial portions of your assets into a trust. Trusts are one of the most effective tools you can use to help protect your assets, manage future estate tax liabilities, and help ensure the efficient distribution of your assets to their heirs.
Common Reasons for Establishing a Trust
- Provide for family members now and in the future
- Ensure effective management of assets in the event of incapacity
- Protect assets
- Fund philanthropic interests
- Potentially reduce future estate taxes
- Direct the disposition of assets upon death
Through Pershing LLC, you have access to the following providers:
Reliance Trust Company
Reliance Trust Company (Reliance) is one of the largest independent trust companies in the nation, with more than $69 billion in trust assets. Reliance offers integrated trust solutions designed to help investment professionals provide their clients with industry-leading personal trust services.
Santa Fe Trust, Inc.
Santa Fe Trust, Inc. is an independent trust company that offers full trustee and directed trust account administration, charitable planning and record keeping services. Santa Fe Trust does not provide investment management services and administers over $500 million in trust assets.
Wilmington Trust Company
With more than a century of trust expertise, Wilmington Trust currently administers over $40 billion in client assets as of September 30, 2009, and is recognized as one of the nation’s leading experts in exercising fiduciary judgment in complex family situations.
BNB Wealth Management, LLC can help you to create a lasting legacy that perpetuates your family name and values. Through an arrangement with American Endowment Foundation (AEF), you have access to donor-advised funds.
- Qualifying for a tax deduction in the year the contributions are made, regardless of when grants are recommended*
- Receiving an annual contribution summary for tax purposes
- Donating a variety of assets, including closely held stock, real estate, and restricted stocks
- Involving family members in recommending grants
LoanAdvance and CreditAdvance
- LoanAdvance is a securities-based lending product that offers you the ability to increase your purchasing power by taking advantage of competitive interest rate loans that are collateralized by the value of the securities held in your LoanAdvance account. This flexible line of credit allows you to borrow up to 70% of the value of your qualified securities. Corporate Executive Services enables you access to credit for most personal, consumer, or business needs with LoanAdvance.
- CreditAdvance is a margin lending tool that enables you to use the marginable securities in your account to obtain a loan for any purpose, including the purchase of additional securities. Margin loans are subject to Regulation T requirements whereby federal law permits an investor to borrow up to 50% of the market value of the qualified securities in his or her account.
BNB Wealth Management, LLC through Pershing LLCs Corporate Executive Services provides access to alternative investment vehicles that can include the following:
- Hedge Funds/Fund of Funds,gain access to significant fund managers in smaller increments than generally required for direct investment with a manager.
- Private Equity, gain access to leading private equity managers through Single Manager Funds, which offer access to individual private equity managers, or Fund of Funds, which offer investment with several equity managers at the same time.
BNB Wealth Management, LLC and/or Pershing LLC do not provide tax or legal advice. Investors should contact their tax advisors regarding their specific situations.