Brochure Web Updated 08302010 4
- 1. John P. Barringer, CFP® Executive Financial Services Director Vice President, Financial Advisor & Investment Consultant Personalized Financial Solutions for Executives Morgan Stanley Smith Barney © 2010 Morgan Stanley Smith Barney
- 2. Mission Statement Our team is dedicated to building and preserving the wealth of our corporate executive clients by tactically managing their equity compensation in conjunction with their life-long, strategic financial planning goals. We understand the unique challenges faced by executives of public companies. Wealth concentrated in company stock portfolios must be managed with utmost care and sensitivity to the client’s needs as well as the corporate culture in which they work. The numerous types of equity compensation as well as the complex reporting requirements associated with its issuance and disposition require attention to detail. We have the experience and tools to address the diversification process that is an essential ingredient in overall portfolio performance. Our clients’ family investment objectives and financial needs ultimately govern all portfolio decisions. We take pride in our commitment to building successful, long-lasting relationships and delivering excellent value to our clients.
- 3. Investment Philosophy The accumulation of wealth is not an easy task. But it is made somewhat easier if the executive who receives equity compensation manages his or her portfolio of company stock within the framework of a disciplined financial plan. The management of equity compensation wealth requires diligence and attention to detail. It all starts with a written plan defining customized solutions against a backdrop of your lifetime financial needs. My objective is to assist each client by giving them advice on how to accumulate wealth over time with a comfortable level of risk. Risk mitigation requires systematic disposition of large portions of your concentrated company stock position. I work with you and the other professionals in your financial life to accomplish your tax, estate planning, education and gifting goals as your equity compensation is tactically diversified. We believe that diversification is the key ingredient to long-term wealth accumulation success. The diversification process is based on decades of research into the relationship between risk and return. Collectively, these findings are known as Modern Portfolio Theory. Diversification is achieved through asset allocation – the process of defining what share each major asset class (cash, stocks and bonds) should have in your personal portfolio. Because returns on different asset classes often offset each other, combining them tends to produce lower overall portfolio volatility. Lower volatility tends to promote compound growth over time, leading to higher risk-adjusted returns.
- 4. Our client-centered Our Client-Centered Approach approach includes Help you develop a thorough understanding a disciplined five- step process that of your financial goals and objectives enables us to help you craft a solution that can help you meet your individual financial needs and goals. Maintain an ongoing Help you review and Throughout this commitment to you analyze your current process, we will and periodically review financial situation provide you with information and strategies alternatives to help you determine whether a brokerage and/or advisory relationship with Morgan Stanley Smith Barney is most appropriate for you. Help you implement your Help you identify and tailor customized strategy, including solutions that can help you meet personalized services and benefits your individual financial needs and goals
- 5. Investment Process Step One: Getting To Know You The first step in this process is to get to know and understand you. It is important that I have a clear idea of your financial situation and goals. We will explore issues of time horizon, risk tolerance, liquidity and other unique needs you may have. Step Two: Developing the Plan Once I know where you are financially and what your goals are, including any company imposed ownership guidelines. I formulate an investment policy and a tactical diversification plan that coordinates with a financial strategy designed to meet your investment objectives. We will discuss our strategy so that you not only understand it but are comfortable with it as well. Step Three: Systematically Liquidate Appropriate Portions of Your Company Stock. This is an ongoing process that is dependent on the stock reaching specific goals as outlined in our tactical plan. The liquidation plan’s parameters will change as your holding age and as you receive additional grants. A 10b5-1 PDP may be employed to facilitate this process. (Please see next page.) Step Four: Asset Allocation in Your Diversified Portfolio. With our strategy agreed upon, I allocate the funds made available by the liquidation of your company stock within each asset class defined in our investment policy to specific investments that match your profile. Your assets will be deployed in a disciplined, strategic manner among the asset classes considered most appropriate for your situation. Step Five: Ongoing Review. I will review your investments and financial plan on a regular basis, relative to short-, intermediate-, and long- term goals, and against the broad backdrop of market and economic conditions. I will recommend adjustments or portfolio rebalancing as appropriate.
- 6. Preset Diversification Programs Earnings Released 1/1 4/1 9/1 10/1 Restrictions Typical Corporate Blackout Schedule • Blackout periods (Trading permitted only during open trading window) severely limit ability to sell stock • Access to nonpublic information further limits Senior Events May Close Windows Managers and key (Such as possession of “inside” information) executives Solution • PDPs may overcome these Preset Diversification Program restrictions and (Trading permitted pursuant to terms of plan regardless of blackout) facilitate the orderly sale of stock PDP Litigation Insider Receives Acquisition Implemented Settlement Clinical Trial Negotiations Negotiations Results Blackout Events Open Trading Window Morgan Stanley Smith Barney 12
- 7. List of Services Personal Financial Services Concentrated Stock Position Management Financial & Retirement Planning Tactical Diversification Plans Estate and Wealth Related Services Pre-paid Forward Contracts Charitable Giving Planning Exchange Funds 10b5-1 Plans Portfolio Management Institutional Money Managers Private Investments Investment Advisory Services Stock, Bond & Mutual Fund Portfolios Asset Allocation Municipal Bonds Individual Retirement Plans Insurance Traditional & Roth IRAs Variable and Fixed Annuities Lump Sum / 401(k) Rollovers Life, Health and Long-Term Care College Funding 529 Plans Alternative Investments UGMA/UTMA Hedge Funds Managed Futures
- 8. Profile John Barringer joined Morgan Stanley in 1986 in the Denver Tech Center Branch as a Financial Advisor. He moved to the Lakewood, Colorado Branch in 1996 to become the Branch Manger, a capacity in which he served until 2001. He moved to the Downtown Denver branch in 2002. In June, 2009 the Global Wealth Management Group of Morgan Stanley & Co. Inc. and the Smith Barney division of Citigroup Global Markets Inc. combined to become Morgan Stanley Smith Barney LLC. John is a nationally known author of articles on the topic of stock as compensation. As a contributing editor and advisory board member at MyStockoptions.com, John’s “Stockbroker Secrets” series focuses on managing employee stock options wisely. John graduated from The University Of Colorado-Boulder with a degree in Economics and Public Administration in 1981 and currently holds his Series 3, 7, 8, 63, 65 and Colorado insurance licenses. He is registered to conduct securities business in all U.S. states & territories. In addition to being a CFP® practitioner, John is a designated Morgan Stanley Smith Barney Executive Financial Services Director, an in house program certifying him to handle the accounts of individuals who are subject to SEC Section 16(b) and Rule 144, including corporate executives, officers and directors. John’s team has extensive experience in the implementation of 10b5-1 plans as part of our Pre-set Diversification ProgramSM (PDP) Born in Denver, John is a 3rd generation Colorado Native and lives in Lakewood with his wife and child and enjoys cycling and skiing in his spare time. He is an active supporter of Public Television KRMA Channel 6 in Denver and a founding member of the National Association of Stock Plan Professionals (NASPP) Rocky Mountain Chapter where he currently serves as Chapter President. John also is the Denver chapter contact for the Global Equity Organization (GEO) and a member of both the Financial Planning Association (FPA) and the National Center for Employee Ownership (NCEO).
- 9. Contact Information John Barringer CFP® Executive Financial Services Director Vice President, Financial Advisor, Investment Management Consultant 370 17th Street Suite 5100 Denver, CO 80202 800.767.9983 (toll free) 303.595.2022 (direct) 303.595.2127 (fax) john.barringer@mssb.com