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Christenson Wealth Management LLCJeff Christenson, President, and Ike Devji, JD, ExecutiveVice President, The Wealthy 100
Phoenix—Scottsdale, AZ Leading Wealth Advisor
What is an alternative to mycurrent cash position that willprotect my money from litigation?By Jeff Christenson and Ike Devji
R I S K V S . R E W A R D , O RT H E G O L D F I S H A N D T H E S H A R K
Investors often evaluate invest-ment strategies on a risk vs.reward basis, so I wanted tocreate a simple and easy wayto explain this very esotericconcept. Consider the following:
Pretend that you have twoswimming pools. Each has a$100 casino chip at the bot-tom, but you can go after onlyone of the chips. However,there’s one important differ-ence between the pools:
• Pool A has a goldfish in it.• Pool B has a man-eating
shark in it.
Which pool would yourather jump into for the samepossible reward?
All investment opportunitiesare not created equal, which iswhy you might want to keepthis allegory in mind duringyour decision-making process.
In our current economic environment,many clients want their money safe andliquid. When most people consider “safe”and “liquid,” they immediately think of theirbank. However, what most people do notknow is that their checking or savings accountis unprotected from a very real threat: theexposure to an increasingly hostile andpredatory litigation system. Consider this:There are tens of thousands of lawsuits filedeach day in this country. The average legalcost of defending a frivolous lawsuit is$91,000, plus the settlement amount itself.The number of lawsuits increases in tougheconomic times as people look to yourwealth as an additional source of income.
Our team often takes commonly used toolsand redesigns them to provide protection ofclient assets, while allowing clients to retaincontrol and liquidity. The situations belowdemonstrate the benefits of a strategy we areusing in which we take a universal life insur-ance policy and design it to provide 98 to 102percent cash surrender value in the first year.
Current Situation—Cash in the Bank: A healthy 45-year-old male client has abank checking account with $1 million.He rarely uses this account, but he keepshis money there because he likes to have acertain amount of funds liquid in case heneeds to access it quickly. Here is how thisaccount works:
• The account earns about 1 percentinterest per year, with income taxableas ordinary income.• If the client is sued for any reasonand loses, the judge can order the
transfer of the assets from the client’schecking account and into the plain-ti�’s pockets. This may sound like anunlikely scenario, but we see it, and thethreat of it, often.• If the client dies, the named benefi-ciaries will receive the $1 millionminus the taxes due.• If the client needs to use the money,he is able to take the amount needed.
Creditor-Protected Cash Alternative:The strategy our team has designed allowsthe same client to place the $1 million into aspecially designed universal life insurancepolicy and insurance trust structure bypaying a premium amount of $500,000 ineach of the first two years. The policy willprovide the following benefits:
• The account will earn a net interest ofabout 1 percent annually invested in thepolicy’s fixed account, and the gains areallowed to grow tax-deferred. • If the client is sued for any reason andloses, the money in this account is 100percent creditor-protected from day one. • If the client dies, the named benefi-ciaries will receive a death benefit of$10,624,682, the face amount associatedwith this specific example.• If the client needs to withdraw all orpart of the money in the account, he isable to do so at any time with no feesor surrender charges, and he will haveaccess to the money within a week. Our strategy, needless to say, is a very
powerful tool that keeps a client’s moneyliquid and safe.
Securities offered through Multi-Financial Securities Corporation,Member FINRA/SIPC. ChristensonWealth Management and Multi-Financial Securities Corporation areseparate companies. Please consultwith a qualified tax advisor prior to implementing any tax-related strategy.
084_WOR_WC_1009Christenson_WOR_1009_084-085:Layout 1 9/25/09 11:46 AM Page 084
Christenson Wealth Management LLCJeff Christenson, President, and Ike Devji, JD, ExecutiveVice President, The Wealthy 100
Phoenix—Scottsdale, AZ Leading Wealth Advisor
What is an alternative to mycurrent cash position that willprotect my money from litigation?By Jeff Christenson and Ike Devji
R I S K V S . R E W A R D , O RT H E G O L D F I S H A N D T H E S H A R K
Investors often evaluate invest-ment strategies on a risk vs.reward basis, so I wanted tocreate a simple and easy wayto explain this very esotericconcept. Consider the following:
Pretend that you have twoswimming pools. Each has a$100 casino chip at the bot-tom, but you can go after onlyone of the chips. However,there’s one important differ-ence between the pools:
• Pool A has a goldfish in it.• Pool B has a man-eating
shark in it.
Which pool would yourather jump into for the samepossible reward?
All investment opportunitiesare not created equal, which iswhy you might want to keepthis allegory in mind duringyour decision-making process.
In our current economic environment,many clients want their money safe andliquid. When most people consider “safe”and “liquid,” they immediately think of theirbank. However, what most people do notknow is that their checking or savings accountis unprotected from a very real threat: theexposure to an increasingly hostile andpredatory litigation system. Consider this:There are tens of thousands of lawsuits filedeach day in this country. The average legalcost of defending a frivolous lawsuit is$91,000, plus the settlement amount itself.The number of lawsuits increases in tougheconomic times as people look to yourwealth as an additional source of income.
Our team often takes commonly used toolsand redesigns them to provide protection ofclient assets, while allowing clients to retaincontrol and liquidity. The situations belowdemonstrate the benefits of a strategy we areusing in which we take a universal life insur-ance policy and design it to provide 98 to 102percent cash surrender value in the first year.
Current Situation—Cash in the Bank: A healthy 45-year-old male client has abank checking account with $1 million.He rarely uses this account, but he keepshis money there because he likes to have acertain amount of funds liquid in case heneeds to access it quickly. Here is how thisaccount works:
• The account earns about 1 percentinterest per year, with income taxableas ordinary income.• If the client is sued for any reasonand loses, the judge can order the
transfer of the assets from the client’schecking account and into the plain-ti�’s pockets. This may sound like anunlikely scenario, but we see it, and thethreat of it, often.• If the client dies, the named benefi-ciaries will receive the $1 millionminus the taxes due.• If the client needs to use the money,he is able to take the amount needed.
Creditor-Protected Cash Alternative:The strategy our team has designed allowsthe same client to place the $1 million into aspecially designed universal life insurancepolicy and insurance trust structure bypaying a premium amount of $500,000 ineach of the first two years. The policy willprovide the following benefits:
• The account will earn a net interest ofabout 1 percent annually invested in thepolicy’s fixed account, and the gains areallowed to grow tax-deferred. • If the client is sued for any reason andloses, the money in this account is 100percent creditor-protected from day one. • If the client dies, the named benefi-ciaries will receive a death benefit of$10,624,682, the face amount associatedwith this specific example.• If the client needs to withdraw all orpart of the money in the account, he isable to do so at any time with no feesor surrender charges, and he will haveaccess to the money within a week. Our strategy, needless to say, is a very
powerful tool that keeps a client’s moneyliquid and safe.
Securities offered through Multi-Financial Securities Corporation,Member FINRA/SIPC. ChristensonWealth Management and Multi-Financial Securities Corporation areseparate companies. Please consultwith a qualified tax advisor prior to implementing any tax-related strategy.
084_WOR_WC_1009Christenson_WOR_1009_084-085:Layout 1 9/25/09 11:46 AM Page 084
085W O R T H . C O M O C T O B E R - N O V E M B E R 2 0 0 9
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T LLC
“Our clients don’tcome to us to make
them rich. They cometo us to help keep
them rich.”– Jeff Christenson
Assets Under Management ConfidentialMinimum Fee for Initial Meeting None requiredMinimum Net Worth Requirement $500,000 (for investments) Largest Client Net Worth $400 millionFinancial Services Experience15 years
Compensation MethodAsset-based fees and commissions (investment and insurance products) Primary Custodian for Investor Assets Pershing LLCProfessional Services Provided Planning, investment advisory, money management services and asset protectionAssociation Memberships FPAWebsite Email [email protected] [email protected]
About Jeff Christenson & Ike Devji Jeff Christenson, president of Christenson Wealth Management LLC, has over 15 years experience as a financialadvisor. Mr. Christenson manages investments and life insurance planning for a wide range of affluent businessowners, executives, and entertainment clients nationwide. When not working with his own clients, he helpsprovide advanced planning solutions to other advisors. Asset Protection Attorney Ike Devji, JD, is of-counselwith the asset protection-only law firm of Lodmell & Lodmell P.C., which he formerly managed. Executive VPof The Wealthy 100, Mr. Devji helps protect billions of dollars in assets for affluent families, business owners,physicians and C-level executives across the U.S.
How to reach Je� Christenson & Ike Devji
If you would like to discuss this strategy in greater detail, please call Jeff directlyat 602.808.5580. If you prefer, Jeff is available to discuss and implement thisstrategy with your financial or insurance advisors. Reach Ike at 602.343.2272.
Christenson Wealth Management LLC 2575 East Camelback Road, Suite 700, Phoenix, AZ 85016 602.808.5580
WHAT’S ON MY DESK…
Jeff: Oodles of family photosand kids’ art, a custom humidor, financial reports, a couple dozen music CDsto transfer to my iPod andbusiness magazines
Ike: Information on issuesthat threaten the wealth ofthose I protect
MY HOBBIES ARE…
Jeff: My beautiful children andwife, travel and music. I play
several instruments and have a band called the All-Star
Garage Band
Ike: Spending time with familyand friends, cooking, exploringnew cuisine, live music, shoot-
ing sports and art
I NEVER LEAVE HOME WITHOUT…
Jeff: BlackBerry, iPod, a sense of humorand, of course in Arizona, sunglasses
Ike: iPhone 3GS, a plan, giving thanks,Kimber Ultra CDP
Jeff Christenson Ike Devji
MAKE
GROW
LIV
E
085_WOR_WC_1009Christenson_WOR_1009_084-085:Layout 1 9/25/09 11:48 AM Page 085
Jeff ChristensonPresident, Christenson Wealth Management
Ike Devji, J.D.Executive Vice-President, The Wealthy 100
Christenson Wealth Management and The Wealthy 1002575 E. Camelback Road
Suite 700Phoenix, AZ 85016
Contact Jeff Christenson: [email protected] or 602.808.5580
Contact Ike Devji: [email protected] or 602.343.2272
R E P R I N T E D F R OM
THE EVOLUTION OF FINANCIAL INTELLIGENCE
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About the Worth Leading Wealth AdvisorsThe 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 com-plete and full disclosure to investors so that independent analysts from Paladin Registry can thoroughly screen and evaluate their credentials, ethics and business practices. Once admitted,Advisors pay a fee to be included. Investors and potential investors are solely responsible for the decision to select particular Advisors.
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