Joe Walters is a highly regard Wealth Advisor, managing and directing Legacy Wealth Management. Over the last 23 years, he has been successful in assisting families and businesses in developing a sound plan that might help to grow and preserve their assets. He is active in the community serving his church and mentoring youth.
Episode Highlights Here:
Joe
And the deferred sales trust is by far the most efficient way of transferring a high, highly appreciated asset into a diversified portfolio without paying the capital gains, which is monumental in California, where you’re going to hit a level of taxes on a, you know, on a sale of 37-38%.
Brett
What would you say the biggest secret is to building a legacy with your wealth using a deferred sales trust?
Joe
Well, I mean, first of all, is building your assets, typically high net worth families build their assets through business development through a real estate development. And so as these kinds of private placement type assets, they are highly concentrated. And they have started from nothing to something incredible. And the goal for any family to help them live out their legacy is to how do you diversify them? How do you transition them from active Lee involved in the development of a business or a real estate portfolio to being able to transfer into a passive or semi passive environment where they’re no longer under the burdens of this environment? You know, especially here in California, the burdens are increasing, not decreasing. COVID was an acceleration of, of burdens and administrative pain. But it’s just been increasing year by year or cycle by cycle of new government regulations and challenges. So a lot of our clients are getting to a point where they want to change and to make a change, they need to transfer assets and move assets around. And in order for them to do that efficiently, they need to know about tax, capital gains tax solutions, and the deferred sales trust, is by far the most efficient way of transferring a high, highly appreciated asset into a diversified portfolio without paying the capital gains, which is monumental in California, where you’re going to hit a level of taxes on a on a, you know, on a sale of 37 38%. So to give up 40 cents on the dollar, when you’ve been paying your taxes fairly every year to build this asset is something that we don’t want to see happen, we want to see a different we want to see grow it and receive more income off of it to you and your your family and your the causes you care about all of this is a legacy for you and your family. So
Brett
and I love the way you put that you said it felt like it feels like and it does be from taxing Fornia for all these years growing up there in Sacramento, in the bay area as well. The burdens seem to be increasing. Right. And, you know, the government, I think we all agree, has a spending problem. I think it’s around 31 $32 trillion of debt, which means we have a tax problem, right? Because those are the government’s money. And so those burdens are increasing as in the right COVID has accelerated those burdens, and, and is flushed a lot of a lot of printed dollars into the economy, which inflated some things. And now we’re seeing the effects of that here a couple years later, and everything is shifting, which creates more reasons to diversify, and to not have all your eggs overly concentrated in one single asset. And so I love the way you put that, and it also sounds like clients are wanting a change, right? They’re wanting a change in location, they’re wanting to change in the way that they, you know, build wealth and or if they’re having to be active versus you know, a little more passive and wanting an efficient way to do that. And the DST has been that solution. Is that a fair summary, Joe? Yeah, absolutely. And,
Joe
You know, we have baby boomers who are reaching an age where, you know, a lot of them would probably have made this move five years ago, but assets were appreciating so quickly over the last five years until we hit 22. And then once we saw this kind of inflationary environment hit acid started depreciating. It was like a wake up call for a lot of our clients. You know, we gotta get off these assets, we got to transition and move them into something safer and diversify it. Not only that, but we have an interest rate environment where you can get, you know, six month t bills for 5%. And so, the competition for your dollar, you know, as far as getting a return on your money is looking a little bit sweeter on the safer end of the spectrum. So
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About Joe Walters
Joe Walters is a second-generation Financial Advisor and the founder and principal of Legacy Wealth Management. With over 15 years experience (Morgan Stanley and Wells Fargo Advisors, LLC), Joe has been successful in assisting families and businesses in developing a sound plan that aims to build and preserve their assets.
Joe is active in the community, serving in his church and mentoring local youth. Joe lives in Sacramento with his wife, Sue, and his four sons; Mason, Ethan, Gideon, and Titus.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP(R), CERTIFIED FINANCIAL PLANNER(tm) and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Joe lives in Sacramento with his wife, Sue, and his four sons; Mason, Ethan, Gideon, and Titus.
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