search
cart
facebook twitter linkedin youtube instagram Spotify Podcasts Apple Podcasts Spotify Podcasts Apple Podcasts
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • TOPICS
    • Cool Roofing
    • Event News
    • Latinos in Roofing
    • Low Slope
    • Legal
    • Metal
    • Project Profiles
    • Roofing Supply Pro
    • Roofing Safety
    • Steep Slope
    • Sustainable Roofing
    • Technology
  • EXCLUSIVES
    • Best of Success
    • Contractor Profile
    • IRE Show
    • Roofing Contractor of the Year
    • Top 100
    • Young Guns
    • State of the Industry
    • Century Club
  • MULTIMEDIA
    • Videos
    • Podcasts
    • Interactive Spotlights
    • Roofing Quizzes
    • IRE Videos
    • Webinars
    • Photo Galleries
  • PRODUCTS
    • New Products
    • Featured Products
  • COLUMNS
    • Editor's Note
    • Exit Planning
    • Legally Speaking
    • Safety Advice
    • Technical Details
    • Guest Column
  • EVENTS
    • International Roofing Expo
    • Webinars
    • Best of Success Conference
    • Industry Events
  • DIRECTORY
    • Associations
    • Distributors
    • Manufacturer/Supplier
    • Business Services
    • Get Listed
  • MORE
    • Roofing Contractor eNews
    • RC Store
    • Roofing Supply Pro
    • Custom Content & Marketing Services
    • Market Research
    • Sponsor Insights
    • Company Spotlights
    • Classifieds
      • Auctions
      • Business For Sale
      • Business Opportunities
      • Equipment For Sale
      • Positions Available
      • Products
      • Safety
      • Software
      • Services
      • Training
    • Contact Us
  • EMAGAZINE
    • eMagazine
    • Advertise
      • Media Kit
      • Editorial Calendar
      • Contact
    • Archive Issues
  • SIGN UP!
Low Slope RoofingSteep Slope Roofing

Wealth Management for Roofing Contractors

A Q&A Between A Top 100 Roofing Contractor and Financial Advisor from TruNorth Wealth Partners

By Ken Kelly
wealth management
April 9, 2018

Roofing Contractor interviewed Peter Rekstad of TruNorth Wealth Partners to learn more about wealth management in the roofing industry.

Q: What is wealth management and how does it differ from investment management?

A: Investment management is the process of managing financial assets like stocks, bonds, cash and mutual funds in order to achieve a specific goal like retirement or college funding. Wealth management expands the focus considerably by looking at virtually everything that impacts an individual’s net worth: a privately-held business, personal residence, vacation property, insurance, loans, taxes and so on.

A good wealth manager saves the client time and helps the client address those issues that create the most value.

 

Q: When business owners consider this total net-worth package, what do they tend to overlook?

A: Business owners seldom pay enough attention to estate planning because it’s difficult and, to a certain extent, it’s unpleasant. They also tend to forget that retirement benefits and life insurance policies should be treated as part of an overall estate. If these assets are managed improperly or ignored, the IRS will gladly pay attention to them.

 

Q: What’s the most common mistake business owners make when it comes to managing personal wealth?

A: Neglect. They simply don’t have the time to handle the tremendous number of details wealth management requires. If you’re already working 80-hour weeks, how much time can you can spend considering how assets are titled, or whether there are methods of shifting tax burdens to family members in lower brackets, or whether there’s too much risk in an investment portfolio?

 

Q: Since most business owners already have relationships with tax advisors, lawyers and bankers, why do they need wealth managers?

A: Wealth management pulls all the disciplines together on the client’s behalf. You can have the greatest players of all-time on your team, but if they don’t play together you won’t win any championships. So a wealth manager works with a lineup of legal and financial advisors to implement an agreed-upon game plan.

 

Q: Is there a one-size-fits-all approach?

A: There are significant differences for each type of business. A family farm, for example, can utilize a family limited partnership, where a publicly traded tech firm cannot. On the other hand, the shareholder of a publicly traded firm can sometimes gift stock options to an irrevocable trust. There are hundreds of income and estate tax strategies. The job of a wealth management team is to pick the right approach for the individual situation.

 

Q: Does wealth management include succession planning for family-owned businesses?

A: Absolutely. You can’t manage wealth if you’re not paying attention to a client’s largest asset. Succession planning is typically something that needs a team of players and considerable clarification of personal values. What does an individual ultimately want to do with a business? What’s important to them? It’s really a decision based more on principles than economics.

 

Q: Stock options have become an increasingly popular. What do option holders need to consider?

A: Most people know they have to consider the regulatory and tax issues carefully before making a decision to exercise. What many option holders don’t think about is that a small change in the underlying stock price can override those issues. In addition, option holders usually have what amounts to an unhealthy concentration in the stock, and those securities tend to be restricted as well. So managing stock options needs to be part of an overall wealth management plan.

 

Q: You’re suggesting that option holders worry primarily about tax consequences when the real issue is far broader?

A: People get so focused on deferring $200,000 of taxes that they ignore the fact that a one dollar drop in the price of the underlying stock can result in a paper loss of $500,000. Taxes are an issue, but they’re not the only one.

 

Q: Speaking of taxes, are there some estate planning approaches that are useful for entrepreneurs?

A: One program that’s particularly effective is split-dollar life insurance. As an individual, I can own either the cash value or the death benefits associated with a policy. The other portion can be owned by somebody else. For example, the corporation can own the death benefits and a beneficiary can own the cash values. It’s a method of getting life insurance for an individual at a very low cost.

 

Q: What about the outright gifting of assets?

A: There are many ways to accomplish that, but each needs to be looked at extremely carefully because there are complex rules that govern the permanent shifting of assets. That said, I’d cite transferable stock options as one example of an effective gifting strategy. If you pay the tax on the difference between an option’s current value and the strike price, you can then gift that option to a charitable remainder trust or a family member. If the stock then appreciates significantly over time, you’ve transferred value out of the company while avoiding a significant amount of the tax bite.

 

Q: Does a wealth management strategy get implemented all at once or are there a number of gradual steps?

A: It’s a process, not an event. It’s taken years for the business owner to build the company and gain the wealth the company represents. By the same token, it may take years to properly enhance and protect that wealth. A good wealth management team takes the time to evaluate all the issues, then starts with those that are easy for the client to do. At the same time, the team should be emphasizing the strategies that are most critical for the client whether they’re easy to accomplish or not.

 

Q: Are you suggesting that the implementation of a wealth management strategy is difficult for the business owner?

A: I don’t want to make this sound like a root canal procedure. As part of a wealth management team there are many things I handle for my clients without them getting involved. A good wealth manager saves the client time and helps the client address those issues that create the most value.

 

Q: After the implementation of a good wealth management strategy, does the business owner find that there’s a flow-through benefit to the company?

A: Most of our clients tell us they value our advice on issues like employee benefits, cash-flow management, improving returns on accounts and business tax management. You can’t separate a business from its owner; it’s one package. The entrepreneur’s the expert in his particular area of expertise, but most business owners find there’s a beneficial transfer of knowledge to the areas where they’re not experts.

 

Q: What should an owner look for in a wealth manager?

A: A good wealth manager needs high levels of expertise and an ability to work alongside professionals who are currently serving a client’s legal and financial needs. By the time I finish looking at a client’s situation, I understand cash flow, their tax bracket, projections for the next 15 years, the risk involved in the business.

KEYWORDS: business management business owners financing Florida

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Kenkelly
Ken Kelly is president of Kelly Advisors and a CII Advisors Consultant, CCN Consultant, and Owens Corning Consultant.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Roofing Contractor Group Publisher Jill Bloom

    Physics, the Power of Authenticity and You

    In February's Publisher's Note, Jill Bloom describes a...
    Editor's Note
    By: Jill Bloom
  • The Family Food Fare supermarket in Midland, Mich.

    ‘Rooftop Ninja’ Discovered Living on Roof, Inside Grocery Sign

    A bizarre tale out of Midland, Mich.: a woman dubbed the...
    Roofing News
    By: Bryan Gottlieb
  • A before and after heat measurement comparison

    How Hot is Too Hot in the Attic?

    If the ventilation is working, how hot should the attic...
    Steep Slope Roofing
    By: Paul Scelsi
You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • eMagazine Subscription
  • Sign Up for the eNewsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Roofing Contractor audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Roofing Contractor or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • An overhead view of a residential block
    Sponsored byCBIZ CompuData

    From Spreadsheets to Strategy: How Roofing Companies Can Transform Financial Operations

  • Snow Guard Solutions for Metal Roofs by S-5!
    Sponsored byS-5!

    Safeguard Your Building: How Snow Guards Prevent Costly Roof & Property Damage

  • A hand holding a wooden block that reads 'EVOLVE'
    Sponsored byWatercress Financial

    Embracing Change: A New Era for the Roofing Industry

Popular Stories

Agentes de ICE arrestaron a casi una docena de empleados de una empresa de techos en Lowell, Massachusetts. Los arrestos son parte de una redada federal más amplia contra la contratación no autorizada y las violaciones migratorias en Boston.

ICE Redondea a Equipo de Techos Afuera de Boston

QXO CEO Brad Jacobs will share the company’s strategic vision today at the Wolfe Research Global Transportation & Industrials Conference in New York following its acquisition of Beacon Roofing Supply..

QXO’s Brad Jacobs Charts Growth at Wolfe Research Conference

A new study by TalentLMS and WorkTango on employee morale and mental health asserts that communication is key.

The Roofing Consolidation Boom—and Its Impact on Workers

Roofing Contractor Webinar

Events

December 3, 2025

The Premier Roofing Conference: Best of Success

Join roofing professionals from across the nation at the 2025 Best of Success conference, the ultimate destination for roofing professionals seeking the latest industry insights and networking opportunities. Pick up strategies for critical challenges like workforce shortage with innovative solutions, explore the latest advancements in roofing technology and sustainable practices, and gain valuable insights from industry leaders on navigating the evolving roofing landscape.

View All Submit An Event

Related Articles

  • Ken Kelly (center) with his wife, Jennifer, in Japan at a roofing company

    What the U.S. Can Learn from Roofing in Japan

    See More
  • If workers are not particularly aware of observable details, acts and conditions on their specific worksite, they are unprepared to react using pre-determined responses adapted to the situation and tools-at-hand.

    Why Situational Awareness (S/A) is Important for Roofing Contractors

    See More
  • Roofing Safety during the pandemic

    Restart Safety Plan for Roofing Contractors

    See More

Related Products

See More Products
  • roofingconstructionestimatingrevised_web_1.png

    Roofing Construction & Estimating Revised

  • 007145828X.jpeg

    Manual of Low-Slope Roof Systems Fourth Edition

  • guyed-steel.gif

    Guyed Steel Stacks

See More Products

Events

View AllSubmit An Event
  • December 3, 2025

    The Premier Roofing Conference: Best of Success

    Join roofing professionals from across the nation at the 2025 Best of Success conference, the ultimate destination for roofing professionals seeking the latest industry insights and networking opportunities. Pick up strategies for critical challenges like workforce shortage with innovative solutions, explore the latest advancements in roofing technology and sustainable practices, and gain valuable insights from industry leaders on navigating the evolving roofing landscape.
View AllSubmit An Event

Related Directories

  • FRSA - Florida Roofing & Sheet Metal Contractors Assn.

    FRSA is an association of roofing and sheet metal contractors and industry-related companies including manufacturers, suppliers and roofing consultants. The Association offers membership, code and technical support, educational seminars, the largest regional roofing expo and advertising opportunities in Florida Roofing Magazine. FRSA - Florida's Association for Roofing Professionals.
×

Be in the forefront of the roofing industry!

Join thousands of professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing