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THE EVOLUTION OF FINANCIAL INTELLIGENCE

ARE WE OUT OF THE WOODS YET?

WORTH.COM

06VOLUME 19 | EDITION 03
Los Angeles—Newport Beach, CA Leading Wealth Advisor
GR Capital Asset Management
Todd Rustman, CFP®, CFA®, CLU®, CWPP
Senior Wealth Manager

Would rising interest rates be a good


thing for tax-free municipal bonds?
By Todd Rustman

Given the low interest rate environ- tax-hostile and higher interest rate D I S C E R N M E N T I S PA R T O F
ment, common sense tells us that environment. THE NEW NORMAL
interest rates can head only two ways: Stay short. In a rising interest rate
As the economy and political
sideways or up. Down cannot be con- environment, temper your appetite for
environment provide more volatil-
sidered, unless we start paying the long-term bonds because, after pur-
ity and uncertainty, it is good to
government to keep our savings! chased, those bonds can suffer more discern what is important to you
For many of our older clients, rising severe principal declines during the and your family. Ask:
interest rates means good news if prop- holding period than shorter-maturity • What is more important to
erly handled. Higher interest rates mean bonds. Furthermore, it is tough on the you, earning 100 percent of future
higher rates of income. We believe in psyche to see others getting higher stock market gains, or avoiding
examining the municipal bond market, yields while you wait (if you do not want 100 percent of future losses?
both from state and national perspec- to accept a principal loss) for your bond • What potential or rate of
tives. Higher taxes are likely, regardless to mature. return is worth risking your retire-
of political bent, so the double tax-free Watch spreads. In what looks likely ment lifestyle or life savings for?
nature of investing in your state’s munic- to be a time of higher taxes and interest • If you knew your personalized
ipal bonds becomes very attractive. In rates, be careful in reaching for more longevity expectation—not a
generic bell curve—what would
essence, the higher taxes go, the more yield, even within the short-term matu-
you do differently in your risk
attractive the after-tax equivalent yield rity market. Not all issuers are the same. tolerance?
of municipals becomes. We are effectively lending money to dif- In this environment, we believe
But not all is easy in the municipal ferent entities with varying abilities to an introspective look at what is
world. Many states, including California repay. It is important to look at a multi- important to you will make all the
where we are headquartered, have tude of factors (including cash flow) to difference in making sure the
queasy credit ratings. The municipal rationalize higher-than-market yields. roller coaster of life is as bumpy
bond market involves risk—perhaps Higher rates can give you a better, as you want it to be—and no
more now than ever as the “debt cancer” more comfortable sense of where and more. With the wealth manage-
has affected consumers, businesses, when your income will come; however, ment tools available today, one
states and the federal government. the road to these higher rates can be can put on as many bumper
We have two simple (simple in con- wrought with pitfalls. Staying close to guards as needed.
cept, perhaps tougher in execution) your advisor in a partnership is the best
guiding principles in this potentially way to face the challenges.

Investment income from municipal bonds may be subject to the alternative minimum tax (AMT), and capital
appreciation from discounted bonds may be subject to state or local taxes. Capital gains are not exempt
from federal income tax.
Securities are offered through NEXT Financial Group Inc., member FINRA/SIPC. GR Capital Asset
Management is not an affiliate of NEXT Financial Group.
MAKE
How to reach Todd Rustman
I prefer face-to-face meetings with prospective clients.
“Wealth is the ability to Please feel free to call me at 800.805.PLAN (7526)

GROW
or email me at trustman@gr-cam.com.
fully experience life.”
– Henry David Thoreau

LIVE
GR CAPITAL ASSET MANAGEMENT
WHAT’S ON M Y DE SK…

Pictures of my family and four computer


screens—never enough information!

I N EV ER L EAV E H O ME W IT H O U T. . .

Kindle, BlackBerry and a passion for


making an impact each day M Y HOBBI E S ARE …

Learning, traveling, all sports, wine


and picking my battles

About Todd Rustman


Todd Rustman, president of the GRCAM team, has more than 16 years of experience in providing wealth
management and MFO services. He has CFP, CFA, CLU and CWPP certifications, as well as his pilot and
real estate licenses. He is a cofounder of several companies, sits on the board of Gen-Next, and is the California
representative for the Asset Protection Society. He has been named a top wealth advisor nationally with Worth in
2007 and 2008 and was named a five-star wealth manager by Crescendo Business Services for 2009 and 2010.

Compensation Method Asset-based, fixed and hourly fees; commissions


Confidential (investment and insurance products)
Assets Under Management

Primary Custodian for Investor Assets Pershing and Charles Schwab


None required
Minimum Fee for Initial Meeting
Professional Services Provided Planning, investment advisory, money
management and asset protection services; life settlements
$5 million
Minimum Net Worth Requirement
Association Memberships Financial Planning Association, CFA Institute,
California representative for the Asset Protection Society, and Gen-Next
$500 million
Largest Client Net Worth

www.gr-cam.com trustman@gr-cam.com
Website Email

16 years
Financial Services Experience

GR Capital Asset Management 660 Newport Center Drive, Suite 770, Newport Beach, CA 92660 800.805.7526

WORTH.COM J U N E - J U LY 2 0 1 0 091
W

Todd Rustman, CFP®, CFA®, CLU®, CAPP, MMB, CWPP


Senior Wealth Manager

GR Capital Asset Management (GRCAM)


660 Newport Center Drive
Suite 770
Newport Beach, CA 92660
Tel. 800.805.PLAN

Email: trustman@gr-cam.com
www.gr-cam.com

REPRINTED FROM

THE EVOLUTION OF FINANCIAL INTELLIGENCE

About the Worth Leading Wealth Advisors


The Worth Leading Wealth Advisor admittance process is based on, but not limited to, the Advisor’s experience, education, fiduciary status, compliance record, wealth management services,
methods of compensation and scope of current business. In order to be considered for the Worth Leading Wealth Advisors Program, financial professionals must be willing to provide complete
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