Russell Luna, ChFC, CLU, CDFA, AEP, CLTC (800) Investment Advisor Services Offered Through First American National Investment Advisors, LLC

Accreditation  Chartered Financial Consultant  Chartered Life Underwriter  Certified Divorce Financial Analyst  Accredited Estate Planner  Long Term Care Certified  Financial Fiduciary  Held to the highest financial standard of trust

OBJECTIVE INDEPENDENT ADVISOR  Financial Practice – 30 Years  Holistic Approach – Multi-Disciplined Practice  Develop Strategies, not just products  Preserve Wealth and Protect Lifestyles  Tax-Efficient Approaches  Estate Planning

Affiliations  International Academy of Collaborative Professionals  Colorado Collaborative Divorce Professionals  Colorado Bar Association  National Association of Insurance and Financial Advisors  Colorado Association of Insurance and Financial Advisors  The Estate Planning Council of Southeast Denver, LLC  The Corporation for Long Term Care

Life Transitions  Address the financial implications of every life transition  Look at the current financial state  Identify future potential risks  Develop detailed financial plans that help meet your family’s needs/goals  Position your family for financial success from one generation to the next  Assist client and divorce attorneys Cataloguing assets Review divorce documents to help maximize your portion of the divorce settlement  Examine custodial arrangements for children and the associated financial considerations  Work with trust and estate attorneys to implement or update wills, trust documents, power of attorney documents, and health care proxies

The Division Of Assets What is the Strategy? What you don’t know Can’t Help you!

High Income Earner  What Exemptions will they benefit from? It depends!

Example #1 H – income $350,000 (after 401k contribution) W – income $50,000 One child Home Market Value - $750,000 Mortgage balance - $400,000 Property Taxes - $18,000 Monthly Mortgage - $4,000 H – 401K Contribution $15,000 H – 401K Value - $350,000 Joint Accounts - $200,000

Proposed Settlement Spousal Support - $5,000 per month Child Support - $2,500 per month Equal share of marital assets

Decisions To Be Made Who claims the child? Who claims the mortgage? Who will pay for child’s college? How to split marital assets?

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 The importance of Basis  Section 1041Transfers of Property, Retirement Plans and QDROS  Tax issues on the sale of a Residence  Spousal and Child Support  Carry Forward Rules  Social Security  COBRA Practice Areas “Help clients with financial issues that will affect the rest of their lives”

High Net-Worth Concerns  A primary residence which may be valued at millions of dollars  Rental property, residential or commercial properties or land  Vehicles including cars, watercraft, etc.  Stock or brokerage accounts  A business or businesses  401K, IRA or Pensions  Life insurance policies  Trademarks, patents and copyrights, otherwise known as intellectual property  Deferred Compensation  In some cases, investment opportunities that have not yet come to fruition.

HIGH NET WORTH INDIVIDUALS  Manage cash needs by tracking inflows and outflows  Develop net worth statement to document assets and liabilities Provide a clear picture of net worth  Develop or revise estate plans to help minimize estate taxes  Guide through potential estate tax issues around gifts and the Generation-Skipping Transfer Tax rules  Develop tax efficiencies in investment portfolios and estate plans  Evaluate current investments  Develop a suitable portfolio asset mix that can help meet needs over time  Select the appropriate investment managers and manager structures  We will help keep the client on track with regular reporting and monitoring, making portfolio adjustments as needed

Philanthropic Planning  Evaluate various charitable giving vehicles Donor-advised funds Private foundations Charitable trusts Charitable gift annuities

Workable Settlements  Settlements can be reached without worrying about taxes  Tax problems are not always apparent at the time you reach settlement  A settlement that does not follow the Internal Revenue Code could be in violation of Public Policy  CDFA goal: to assist in creating settlements that work

Strategist/Litigation Support  Be part of the divorce team on financial issues  Provide data that shows the financial effects  Client Risk Tolerance Assessments  Bring an innovative and creative approach to settling cases

Client Expectations Manager  The short-term and long-term effects of dividing property  Knowledgeable about certain tax laws  Analyze pension and retirement plans  Calculate the present value of a pension  Determine the cost basis and capital gains on the sale of the marital home  Evaluate the insurance needs of the client and COBRA qualification

Data Collector/Budget Preparer  Develop a budget  Determine earning capabilities  Establish assumptions for inflation and rates of return  Collect financial expenses data  Set retirement objectives  Determine what kind of education they want for children

Evidence Presenter  Provide expert testimony in court, mediation or arbitration  Trained to interview clients