|
|
Keith Wetjen, a member of Simsbury High School's class of 1991, and Peter Pabich, a graduate of Simsbury High in 1992, have joined with an East Granby man to form APW Wealth Advisors, LLC.
Wetjen is currently head coach of the high school's baseball program. He also played baseball for Simsbury High, which included a state championship in his four years at the school.
Wetjen also played baseball at UConn. He furthered his education with a law degree at Western New England. Pabich graduated from Northwest Catholic High School in West Hartford before attending St. Anselm College. Both Wetjen and Pabich are Simsbury natives and avid baseball fans.
Wetjen said people in Simsbury are passionate about two things: sports and politics.
Pabich is a former president of the Chamber of Commerce.
Both drifted from discussions on sports and business on a summer afternoon on the patio of Cosi in Avon. APW helps its clients wade through the sometimes detailed and complex world of accounting, insurance, investment and legal matters so they can make wiser decisions about financial issues facing them. These may range from retirement, divorce, estate planning, or others.
"We feel we're able to provide the personalized service of a small firm ... we're not value based. We're relationship based," Wetjen said.
Wetjen and Pabich got their idea for a wealth management firm after attending Rotary meetings. The Rotary, they explained, helped to emphasize that making decisions on financial matters locally could work.
"You almost can't separate your client base from community events," Wetjen said. "You can't separate business from everything else you do, which is good for us. We like working locally."
The main culprit that brings APW's clients to Wetjen and Pabich is the tax man. Often, in the case of estates, 50 percent of assets can be taken by the government, Wetjen explained.
APW helps protect client's assets from tax levies while providing for unforeseen circumstances like a car accident or failed business venture. The corporation uses coordination of Pabich's accounting experience, Wetjen's legal experience, and investing, insurance and business know-how by the corporation's third partner, J. Rockwell Allen of East Granby.
Wetjen pointed out that in the current financial climate, after retirement, with diminished or no income, as much as $1 million would be needed to secure a comfortable lifestyle in the Valley for many residents. He also said, in the next 10 to 15 years, the baby boomer generation will transfer the greatest amount of capital down to the next generation in the history of the United States.
Most future retirees will receive benefits from a defined benefits plan like a pension or Social Security, or get the proceeds from the sale of a business, Wetjen said. He said shifting financial assets to the next generation extends to personal values and the ability to save money.
"Be a good steward of that money. Be a good steward of that transfer. That's a large challenge for this generation to pass it on to the next generation," Wetjen said.
For small businesses, Wetjen said, less than 20 percent of assets are passed onto the second or third generation. Many small businesses don't do serious planning because of a lack of confidence over what they want to do, Wetjen said.
Pabich added that putting the plan together is just a first step before finding a catalyst to make things happen.
"That's where we come in to help people make decisions," Pabich said. "Our challenge is to take ... complex tax law and complex needs for our clients and mesh them together."
This service becomes even more vital with the estate tax expiring in 2010 and then coming back in 2011. Wetjen said there is growing confusion over state and federal estate tax law.
"They're (APW clients) are doing what they do best and we do what we do best," Pabich said. "The only way we're going to add value to our clients is by spending time with our clients."
Currently, APW has about 150 clients with 15 to 20 new clients coming on board each year.
"There are two certain things in life - death and taxes," Wetjen said. "Keeping up with the latest and greatest of tax laws is clearly critical."
Wetjen said APW's wealth managment functions are not reserved for the very rich. On a few occasions, a client's annual income has been just above $40,000.
Wetjen and Pabich, both Yankees fans, may hope baseball springs eternal, but for now they'll settle for being a positive force in the general public.
"When you go to the grocery store and they (clients) feel you've helped and you feel you've helped, it's a good feeling," Wetjen said.
