At Capstone Wealth Management

our focus is on

you.

Our firm provides a family office experience that serves a select number of clients, allowing us to design wealth management solutions that work for you.

As your fiduciary, our job is to collaborate, execute, monitor, and report so that you'll have more time to enjoy life.

Since 2003, Capstone has been serving as a fiduciary for financially established families like yours. Our team is known for our methodical processes, transparent fees, and reliable outcomes.

Family Office
Experience

What is a family office experience?

A family office experience engages a collaborative team of professionals to deliver integrated, highly customized wealth management services to a limited number of clients. Goals and values-based services include investment strategy and management; tax, estate, and philanthropic planning; and multigenerational financial education. The collective buying power of Capstone's clients provides access to institutional pricing on investments.

Wealth Management

Capstone's approach to wealth management (WM) encompasses three key areas of service provision:

IC
Investment Consulting
AP
Advanced Planning
RM
Relationship Management

WM = IC + AP + RM

Investment Consulting (IC) involves managing your investments in a way that will maximize your chances of achieving your goals. We provide risk evaluation, portfolio performance analysis, asset allocation advice, assessment of the impact of investment costs, and assessment of potential tax impact.

Advanced Planning (AP) consists of expert guidance in four key areas: Wealth Enhancement (tax mitigation and cash-flow planning); Wealth Transfer (transferring wealth effectively to family members or other beneficiaries); Wealth Protection (risk mitigation, compliance with legal structures, and transfer of risk to insurance companies); and Charitable Giving (maximizing the impact of your financial contributions to the organizations of your choice).

Relationship Management (RM) focuses on taking time to understand your priorities, concerns, and values, as well as building and maintaining a team of professionals who are able to collaborate and communicate effectively to serve you as our mutual client. We will work closely with your existing accountants and attorneys to achieve this goal.

Fiduciary

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A fiduciary is a person or business that has the power and obligation to act for someone else under circumstances that require total trust, good faith, and honesty.

When you decide to work with Capstone, we will serve you under an oath of fiduciary responsibility. As your fiduciary, we will always put your interests first whenever we provide information and recommendations.

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Fees

As your fiduciary, Capstone works for you rather than for an insurance company or investment firm. Transparent advisory fees are earned by Capstone Wealth Management for financial planning, investment advice and wealth management services. The advisory fee represents a small percentage of the value of the portfolio and is withdrawn from the portfolio each quarter. Consulting services are available on a subscription basis to help you prepare for financial transitions such as selling your business.

Advisory Fees

Capstone’s advisory fees are based on the size of your portfolio. The fee is stated as a percent of the total portfolio. The fee earned by Capstone Wealth Management is withdrawn quarterly from your account.

Below are examples of Capstone’s advisory fees for various portfolio sizes:

Portfolio
Size
Quarterly
Rate (%)
Annual
Rate (%)
$2.5 million* 0.22375% 0.895%
$5 million 0.18062% 0.7225%
$10 million 0.15906% 0.63625%
$15 million 0.1185% 0.4742%

*We are pleased to serve clients whose portfolios are smaller than $2.5 million.

Subscription Service

Capstone Security Builder

Want to make a smooth transition out of your business, commercial property, farm or ranch? Capstone’s Security Builder service is available to you on a subscription basis ($750 per quarter). Capstone Security Builder service is also available if you are an executive or professional who could benefit from financial planning advice as you prepare for retirement.

Investment Costs

Transparency about investment costs is integral to a great investment experience. We’ll talk with you about the effects of expense ratio, turnover, cash drag, and income tax friction so you are empowered to make decisions that minimize the impact on your investments.

Our Team

To get acquainted with the members of Capstone's team, click on each of the photos below.

Case Studies

Capstone's clients realize that time is their most valuable resource. Instead of constantly monitoring their investments and keeping up with changing tax laws, they want to enjoy the benefits of their hard work.

Business Owners

Background:

Running a successful company can be so time-consuming and stressful that very few business owners want to continue working until they are no longer physically able to do so. Taking time to develop a well-thought-out exit strategy can allow you to enjoy a comfortable lifestyle in retirement.

Capstone worked with a married couple who started thinking about their exit strategy after they received an unsolicited phone call from an out-of-state competitor who offered to purchase their business. The husband had just turned 50 and their children had no desire to run the business, so they decided to sell their company to an outside buyer. Their initial plan was to sell the company’s building and inventory without making any changes to the business.

What the Client Accomplished (Plan by Design) with the Guidance of Capstone:

This couple initially came to Capstone for advice on how to invest the proceeds of the sale of their business in a way that would enable them to achieve their financial goals. Capstone started a discussion on ways to increase the value of the business prior to selling it. Over the next three years, this couple worked hard to increase the value of their company. Consultants helped them expand their customer base, update their computerized inventory system, increase their online sales, and strengthen their management team. Taking a team approach to advance planning, Capstone’s financial professionals worked closely with the couple’s CPA. The wife focused primarily on working with the team of advisors, while her husband continued to run the business.

Pie Chart - Sale with unsolicited offer
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Pie Chart - Sale through collaborative team approach

In Summary:

Through conversations with this couple, opportunities were identified that could potentially increase the business’s value that maybe otherwise would not have ben pursued. The decision was made to implement those changes with the collaboration of business consultants and other advisors, then seek to sell; versus accepting an unsolicited offer.


CASE STUDIES DISCLAIMER

Names, locations, and ages have been changed in these case studies. These case studies are presented to demonstrate the scope of our wealth management services and the benefit of collaborating with our clients’ tax and legal advisors and other centers of influence. We do not just provide investment advice and in presenting these case studies we do not claim any benefits of our investment advice. Not every client we serve experiences the levels of service provided in these case studies; nor do they achieve similar outcomes. There are many factors and/or specific industry circumstances our clients present that we cannot control but will directly affect a client’s experience and outcome. Therefore, in retaining our services, DO NOT expect similar experiences or outcomes.

Executives and Professionals

Background:

Peter Griffin was a computer engineer working out of San Jose, CA. When he started working for his employer, Peter’s focus was on the future: He was helping to build something special that would be on the forefront of transportation. The company valued talent like Peter’s, and they always reminded their employees that somewhere in the future the payout would equal their effort. As Peter worked for the company, his life continued to evolve. He had started as a young engineer and now he was older, married, with a young family. As his situation continued to change, Peter worried that he might need to leave the company to attain a more reliable financial future for his family.

What the Client Accomplished (Plan by Design) with the Guidance of Capstone:

Capstone helped Peter understand his long-term prospects. Utilizing current data about what the family had saved and spent, Peter was able to see the future with greater clarity. Peter was also able to see the long-term opportunities that would be available to him if he stayed with the company. A few years later, that magic day arrived: Peter’s company rolled out an Initial Public Offering of stock. The benefits of Peter’s long-term commitment to his employer had become abundantly clear: he now held shares worth several million dollars.

Capstone worked with Peter to clarify new goals. Peter established a plan to lower the risk to his portfolio through sales of company stock and diversification of the proceeds. He and his wife developed a plan to fund charitable causes that were important to them. Working collaboratively with Peter’s accountant and attorney, Capstone’s financial professionals designed a long-term tax-efficient plan that would secure the finances of the Griffin family for multiple generations.

Pie Chart - Sale with unsolicited offer
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Pie Chart - Sale through collaborative team approach

In Summary:

Peter presented uncertainty about his family’s financial future and his current employment situation. Capstone assisted Peter in assessing his current financial situation, his financial goals, and the opportunity staying with his current employer presented. An Initial Public Offering was completed and Peter was able to exit at a target value that has set him on a path to achieve his family’s financial goals. Had Peter not come to Capstone, he maybe wouldn’t have understood or seen the value of staying with his current employer.


CASE STUDIES DISCLAIMER

Names, locations, and ages have been changed in these case studies. These case studies are presented to demonstrate the scope of our wealth management services and the benefit of collaborating with our clients’ tax and legal advisors and other centers of influence. We do not just provide investment advice and in presenting these case studies we do not claim any benefits of our investment advice. Not every client we serve experiences the levels of service provided in these case studies; nor do they achieve similar outcomes. There are many factors and/or specific industry circumstances our clients present that we cannot control but will directly affect a client’s experience and outcome. Therefore, in retaining our services, DO NOT expect similar experiences or outcomes.

Farmers, Ranchers & Owners of Commercial Real Estate

Background:

Margie Clark, a 70-year old widow, was ready to sell the ranch she and her late husband had worked on for 35 years. They had bought the ranch for $2 million, and its current fair market value was $11 million. Margie also wanted to set aside some cash from the sale of the ranch, but she was aware that there would be serious tax consequences as a result of the sale. Margie turned to Capstone Wealth Management for guidance. After researching her options, Capstone suggested using several financial tools that would reduce tax friction while providing a comfortable lifestyle for Margie.

What the Client Accomplished (Plan by Design) with the Guidance of Capstone:

Margie was able to sell her home and surrounding buildings on the ranch for $1 million. The remainder of the ranch was sold to the same buyer for $10 million. The 121 Principal Residence Exclusion allowed her to avoid capital gains tax on her basis plus up to $250,000. Capstone guided Margie on placing $4 million of the property into a 1031 exchange, which avoided upfront capital gains on that portion of the transaction. To further assist Margie’s tax planning, Capstone worked with a charitable foundation and together they recommended to Margie and her tax advisor that she place $3 million of the proceeds from the ranch into a Charitable Remainder Trust, which not only avoided all capital gains tax but also generated a significant charitable deduction. Margie could use the deduction to offset much of the tax on the $4 million portion of the ranch she sold outright. The family secured a $3 million life insurance policy with some of the additional income generated by the charitable gift, 1031 exchange, and investment portfolio.

Pie Chart - Sale with unsolicited offer
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Pie Chart - Sale through collaborative team approach

In Summary:

Margie presented a significant capital gains tax liability situation; created only by her family’s hard work. Tools were identified and used to eliminate capital gains taxes, increase charitable giving, generate annual income, and retain wealth for the family and their legacy.


CASE STUDIES DISCLAIMER

Names, locations, and ages have been changed in these case studies. These case studies are presented to demonstrate the scope of our wealth management services and the benefit of collaborating with our clients’ tax and legal advisors and other centers of influence. We do not just provide investment advice and in presenting these case studies we do not claim any benefits of our investment advice. Not every client we serve experiences the levels of service provided in these case studies; nor do they achieve similar outcomes. There are many factors and/or specific industry circumstances our clients present that we cannot control but will directly affect a client’s experience and outcome. Therefore, in retaining our services, DO NOT expect similar experiences or outcomes.

High-net-worth Families

Background:

For a young couple raising a family, times were tough. But through years of hard work and scrimping on expenses, they started a business that began with a dream, a pickup, and a backhoe. The values of the lessons learned by their character, financial stewardship, perspective, appreciation, and work ethic transitioned them from having very little money to holding sizeable wealth. After years of hard work, Mom and Dad realized that their children would someday inherit a substantial sum. Like many of Capstone’s clients, the family was introduced by their accountant to the Capstone team to provide leadership and technical expertise on the estate plan design process. This couple wanted to reduce the estate transfer tax to the government and increase the benefit to their family and community. They wanted their children and grandchildren to understand the importance of community and philanthropy. They wanted their family’s legacy to have an impact on others whose life circumstances were not quite as fortunate as theirs.

What the Client Accomplished (Plan by Design) with the Guidance of Capstone:

Following several conversations with the parents and their accountant and attorney, the estate plan began to take shape. In the end, a couple of trusts were established to reduce the governments’ estate tax from $17.5 million down to $11.6 million. A family loan was created to move some money to the kids to pay for their existing life insurance. The insurance was moved out of the estate into a separate trust. Capstone modeled the “Plan by Default” compared to the “Plan by Design” of their team. Following the sale of their business in 2016, the impact of a well-constructed estate plan was significant.

Pie Chart - Sale with unsolicited offer
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Pie Chart - Sale through collaborative team approach

In Summary:

Through the collaborative efforts of their accountant, attorney, and the financial professionals at Capstone, this couple directed the impact of their wealth versus accepting conventional estate planning wisdom. Less tax was paid, more wealth was retained coupled with responsible financial management, and the family’s commitment to community and philanthropy through charitable giving was achieved. At the conclusion of planning, the couple also created a family partnership with investments and commercial real estate.


CASE STUDIES DISCLAIMER

Names, locations, and ages have been changed in these case studies. These case studies are presented to demonstrate the scope of our wealth management services and the benefit of collaborating with our clients’ tax and legal advisors and other centers of influence. We do not just provide investment advice and in presenting these case studies we do not claim any benefits of our investment advice. Not every client we serve experiences the levels of service provided in these case studies; nor do they achieve similar outcomes. There are many factors and/or specific industry circumstances our clients present that we cannot control but will directly affect a client’s experience and outcome. Therefore, in retaining our services, DO NOT expect similar experiences or outcomes.

Start A Conversation

For many individuals or couples who are successful, telling their story seems boastful.

We see things differently. We recognize that most people are not born into wealth, but rather their wealth was created through a lifetime of hard work. We want to hear your story because it reflects your values, passions, and work ethic.

What's on your mind, and what's keeping you up at night? You might see your concerns reflected in the case studies of clients we have helped.

Let's start a conversation. Contact Kerrie or Joette via phone or e-mail to set up a meeting.