Private Banking
Customized Financial Planning
For William Wyatt
– “Preparing for the Future”
Presented by Dr. Kai Poetschke, MBA
 Economist and Journalist
 MBA: London School of Economics, PhD: New York
University
 Worked for Bank of Scotland and Chase Manhattan
Bank
 Moderator of own TV-Show: “Your business is my
business” since 1967
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Excellence through Strength
- An uncompromising attitude to quality
 Founded in 1870, Deutsche Bank is currently the
largest financial institution in the world, with assets
exceeding USD 800 billion.
 a strength that is able to reach around the world,
identify opportunities and realize them for the benefit of
its clients.
 One of the most highly rated banks in the world.
 Pre-eminent reputation among world major banks,
based on the strength and depth of its business, on its
innovative approach to new opportunities, and on
enduring client relationships.
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Relationships
- Strong client partnerships
 Our aim is to establish an all encompassing financial
plan with expertise and care that addresses all issues
 With an appropriate wealth management strategy, the
overall objective is wealth preservation and
enhancement through a disciplined approach to
investment, combining:
1. A thorough understanding of your individual circumstances, income
requirements, return expectations, risk appetite and other objectives.
2. A complete and detailed analysis on your personal business including
recommendation regarding succession planning, buy-outs, IPOs & any
other customized solutions.
3. Asset allocation and selection expertise that reflects our client’s specific
goals.
4. A well-established, prudent investment philosophy.
5. Strong emphasis on client communication and reporting.
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Relationships
- Strong client partnerships
 Deutsche Bank Private Banking is able to access a
wide range of resources and expertise from its large
global network within the Deutsche Bank Group.
 Irrespective of location, the group works closely
together as a team in the interests of the clients and as
an integral part of Deutsche Bank Private Banking
worldwide network.
 Deutsche Bank Private Banking brings to you
professionals who have long and varied experiences in
private client work
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Added Value
Services
 Trust & Fiduciary Services - Deutsche Bank International Trust
Company Limited (DBITC), headquartered in Guernsey and with
presences in DB’s regional private banking centers, provides trust,
fiduciary and other related services to our private clients.
 Confidentiality & Privacy are key: Creditor Protection, efficient tax
planning
 Your Private Banker in Deutsche Bank can access and co-ordinate
with the professionals at DBITC who have expertise in Trust and
Estate Planning in order to safeguard your wealth and facilitate
effective wealth conservation.
 US based Trust & Estate Planning incorporating all aspects of US
laws & regulations are accessed through our local Trust experts in
NY
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Key Issues to be addressed
 Businesses: Plastic Company & French Restaurant
 Personal Investments
 Personal Retirement Plans
 Insurance
 Estate Planning
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Businesses:
(1) Plastic Company
(2) French Restaurant
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Presented by Dr. h.c. Joerg Sulimma, Attorney
 75 years of experience as international lawyer and tax
advisor
 Financial and law degrees of the universities of
Harvard, Capetown, Stockholm and Cuala Lumpur
 Over 150 publications in the main law and financial
magazins of the world
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Business
Presented by Dr. Samantha Ho
 25 years of experience advising top-tier clients on
business related issues
 Articles published in Leading Wealth Management
Journals
 B.S. Finance: Boston University MBA: Wharton
Business School PhD in Philosophy & Political
Science: Harvard University
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Business 1 : Plastic Company
Liquidity Planning / Re-capitalizing

Main objective: More access to capital & aggressive business plan
& to grow the business

4 partners with equal share

One partner is looking to sell

Strong cash position : $2 million EBIT

Possible Solutions for partner to :
(1) Buy-Sell Agreement (using Insurance)
(2) Management Buy-Out (MBO): Formal Buy-out Agreement, Stock
Options for employees
(3) Private Equity
(4) Strategic Partner

Retirement plan for the firm: 401(k) Pension Fund (defined
contribution), defined benefit, Stock Options
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Suggestion (1): Buy-Sell Agreement
 Orderly transfer of business if any partners of the
partners wants to sell out or dies
 Permits co-owners to continue in their business roles
 Allows a fair-market price for the business to be agreed
upon today
 Who will fund this Agreement???
– Through an Insurance (Business has good strong cash position
able to buy this insurance)
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Suggestion (2) : Management Buy-Out
 Succession Planning
 Employees have possibility of putting money into
company:
 Stock Options (can also be included in the retirement plan)
 Issue new equity (voting vs. non-voting)
 Partners may sell out their shares but could remain
involved in the business as a Business Advisor or
Director => Consultant agreement
 Employees to purchase the shares of any partners
who want to sell-out => Possibly could get increase in
credit
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Suggestion (3): Private Equity Investor
 Non-traditional low-cost source of financing
 Adds discipline to management & possible expertise
know-how
 More contacts leading to new business opportunities &
new clients
 More access to capital from existing creditors
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Suggestion (4) : Strategic Partnership
 Raise additional capital
 Synergies
 Find a partner who could bring additional value to
the firm: Example, a firm / partner who is strong in
distribution or marketing
 Strategic partners – to consolidate with competitors
(although you may get the lower value)
 Could possibly get increase in credit
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Plastic Company: Retirement Plan
 401(K) : Defined Contribution & Defined Benefit
– Menu of portfolios to choose from
– Deferred income tax: low tax bracket vs. current tax income
 Stock Options
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Business: French Restaurant
 A 50% Co-Owner
 Earnings from restaurant: $10,000 per year
 Son: Chef & Manager. Would like to continue business
 Solution: Limited partnership (Father), General Partner
(Son) with a management contract: I.e. Bonus Base or
Fee Base (tax deductible)
 Son tax bracket: Low
 Gift from father: $10,000 worth of sharse of the
restaurant per year (up to $650,000 tax exemption).
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Personal Investments
Asset Allocation
Recommendations
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Presented by Professor Dr. Sandra Duncan
 BSc Finance, MBA, JD, PhD (Tax Efficient investments)
 Author of best selling book “Damn it, Take Control of
Your Finances – How to legally pay no taxes”.
 27 years of experience in structured investments with
Goldman Sachs, Merrill Lynch, Deutsche Bank
 Associate Professor of Tax planning New York
University
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Personal Investment
Used assets are not included
 Is your current investment asset allocation adequate?
Cash Equivalents
Certificate of Deposit
U.S. Treasury Notes
Municipal Bonds
Large Cap U.S. Growth Stocks
Commercial Real Estate
French Restaurant
Stock in Plastics Company
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$ 57,000
$ 100,000
$ 175,000
$ 310,000
$ 285,000
$ 375,000
$ 55,000
$ 380,000
(3.38%)
(5.93%)
(10.37%)
(18.38%)
(16.89%)
(22.23%)
(3.26%)
(22.53%)
Current Overall Asset Allocation
Businesses
25%
Cash/CDs
9%
Treasuries
10%
Bonds
18%
Real Estate
22%
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Equity
16%
Recommendations I
 Commercial real estate investment ties up too much
capital
 ROE (Cash Flow) too low (7.7%)
 Suggestion:
Refinance existing mortgage up to
maximum allowed value
Interest cost of mortgage is tax
deductible
 Solution:
Additional cash becomes available for
investment in company
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Current Financial Markets Asset Allocation
Cash/CD's
17%
Equity
31%
Treasuries
18%
Bonds
34%
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Recommended Asset Allocation
Conservative – Balanced Portfolio
Equity
40%
Fixed Income
50%
Cash
10%
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Recommendations II

Current financial market asset allocation is not balanced enough!

Goals:
1. Capital Appreciation on investments
– Restructure to a Balanced Portfolio: 10% Cash/CDs, 40% Equities,
50% Fixed Income
– Switch USD Large Cap Growth Stock Portfolio to globally diversified
Portfolio of Growth Stocks
– This allocation should produce stable returns on a risk-adjusted basis
– To reduce cash by approximately 7%
2. Minimize taxes
I.e. The Gift-Tax Annual: tax exclusion of $10,000 (preferably to
transfer to someone with a low tax bracket)
Suggestion:
– Enable you to give $10,000 p.a. to each grandchild
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Trust Structures
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Presented by Dr. Dr. HC Alexandra Schulz, Chief
Trust Officer
 29 Years of experience in Trust and Estate Planning
 Founder of Deutsche Bank’s Trust and Estate Planning
Division
 BSC, Astrophysics, MSc, Mathematics, PhD Financial
Planning M.I.T and Stanford University
 Voted “Best Financial Advisor”, Global Financial
Advisors Guild 1998
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Presented by
Dottore Filippo Pignatti Morano di Custoza
 Economist, MBA and PhD at University of Palermo
 Long time Specialist in Italian and Austrian economies
 Worked for NatWest Bank, Banco di Italia, Banco
Santander, National Westminster Bank and Banco di
Palermo, Banca Criminale Organizato Di Italia
 President of the Italian Communist Party, candidate for
the presidential elections in the year 2000
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QTIP Trust I
QTIP Trust
• To include the current life insurance
Property Owner
Bill Wyatt
Income Beneficiary
June Wyatt
Principal Beneficiary
Grace Wyatt (Daughter)
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QTIP Trust I
 Income to spouse for lifetime
 Daughter is principal beneficiary and receives the
property after death of her mother
 Grantor retains ultimate control over the final beneficiary
of the assets
 Trust ends after death of the spouse
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Charitable Remainder Trust I
Recommendation: To be included in the Will
Charity
Remainder
Trust
Property Owner
Bill Wyatt
Income Beneficiary
June Wyatt
Principal Beneficiary
College
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Charitable Remainder Trust II
Recommendation: To be included in the Will
 Assets will be transferred into the trust after grantor’s
death
 Trust will pay income to the spouse as beneficiary
 Trust ends after death of the spouse
 Principal beneficiary receives the property
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