Wellspring Selected as E!C Generation Next Award Recipient

We are thrilled to announce Wellspring Financial Advisors has been selected as an Engage! Cleveland Generation NEXT Award Recipient in the ‘Company of the Year’ category.

Engage! Cleveland’s Generation NEXT Awards honors the companies, organizations, and individuals working diligently to attract, engage and retain up-and-coming talent to Cleveland. Winning companies and individuals are recognized for their efforts in helping transform the region into a premier community and making Cleveland a great place to live and work.

Wellspring has been involved as an employer member with Engage! Cleveland since 2022. On an individual level, Mac McLaughlin serves on the Board, Andy Siciliano serves as a member of the Leadership Council, and Laura Capuozzo is a former mentor of the mentorship program for E!C.

Wellspring is honored to earn this award as it showcases our commitment to providing opportunities for our employees to grow and thrive.

For the full announcement, click here: https://engagecleveland.org/generationnext/

The Connelly Decision: Why Closely Held Business Owners Should Review Their Buy-Sell Policies

  • The Connelly v. United States decision changes how company-owned life insurance affects the estate tax valuation of a deceased owner’s shares (or other interests) in that entity.
  • Until Connelly, most believed company-owned life insurance did not increase the estate tax value of the shares (or other interests) in the company, so long as the company was subject to a buy-sell agreement requiring it to use the insurance proceeds to redeem (buy back) the deceased owner’s shares.
  • Business owners should review their buy-sell agreements with their professional advisors, both to avoid unexpected estate tax surprises due to Connelly, as well as potential issues regarding step-up in income tax basis, which might result in capital losses for the estate.
The Connelly Decision

Family Engagement: Moving From Fear-Based to Wish-Based Conversations

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Since the establishment of our firm, our founding philosophy has been to focus on both the head and the heart. What does this mean? For us at Wellspring, it means that we strive to focus not only on the numbers (the head) involved in managing wealth, but also to focus on the emotional issues (the heart) that surround wealth management with our families. In other words, “preparing the family for the money is just as hard as preparing the money for the family”.

Family Engagement: Moving From Fear-Based to Wish-Based Conversations

The Driving Change Podcast with Guest Michael Novak

On this episode of the Driving Change Podcast, Michael Novak shares his expertise in understanding the communication required to pass on family values and wealth through generations. He emphasizes the importance of transparency and communication within families, regardless of their wealth. Novak discusses different generations’ challenges and the need to address them to ensure successful wealth transfer. He also introduces two exercises that can help families improve communication and identify shared values: a communication exercise that helps family members understand their communication styles and a values exercise that encourages families to discuss and prioritize their core values. He discusses emotional intelligence and the soft skills required to navigate the complexities of family dynamics and values, and emphasizes the significance of communication, vulnerability, and intentional conversations within families. The conversation also touches on the balance between success and significance. The conversation ends with Michael highlighting the role of philanthropy in creating a meaningful legacy.

Takeaways

  • Transparency and communication are crucial in passing on family values and wealth through generations.
  • The challenges faced by different generations must be addressed to ensure successful wealth transfer.
  • Two exercises can help families improve communication and identify shared values: a communication exercise that helps family members understand their communication styles and a values exercise that encourages families to discuss and prioritize their core values. Legacy planning involves more than just financial considerations; it requires emotional intelligence and the ability to navigate family dynamics.
  • Communication and intentional conversations are crucial for families to define their values and create a meaningful legacy.
  • Success should be defined on a personal level, beyond financial achievements, and significance is the outcome of living according to those values.
  • Philanthropy plays a significant role in creating a lasting legacy and giving back to the community.
  • Organizations like Bluecoats provide support to families of first responders who have lost their lives in the line of duty.
Philanthropy: Creating a Lasting Legacy

Wellspring President & CEO Michael Novak Recipient of Distinguished Estate Planner Award

Wellspring President & CEO Michael Novak Recipient of Distinguished Estate Planner Award
The Estate Planning Council of Cleveland honors individuals for their exceptional contributions to the estate planning profession

May 1, 2024 – Wellspring Financial Advisors (Wellspring), a registered investment adviser and multi-family office catering to ultra-high-net-worth individuals and families, is thrilled to announce President & CEO, Michael Novak, has been named the Estate Planning Council of Cleveland’s 2024 Distinguished Estate Planner (DEP). This award honors local accountants, attorneys, financial planners, insurance professionals, philanthropic professionals, or other related professionals, for their outstanding contributions to their respective fields. The Distinguished Estate Planner Award is presented to one individual annually.

To be considered for this award, candidates must be engaged in practice or recently retired with 15 years involvement in their respective field of estate planning and must also have been a member of the Cleveland Council for at least five years. Those eligible to receive the award are required to hold one of the following certifications: Accredited Estate Planner®, Attorney (licensed to practice in State of Ohio), Certified Financial Planner®, Certified Public Accountant, Certified Trust & Financial Advisor, Certified Wealth Strategist®, Chartered Advisor in Philanthropy®, Chartered Financial Analyst, Chartered Financial Consultant®, and/or Chartered Life Underwriter®.

Recipients reflect, in practice, the goals for which The Estate Planning Council of Cleveland was created, which includes furthering the education of the members of the council and of the public, fostering a better understanding of the proper relationship among professionals of various disciplines, and providing a better understanding of estate planning. As such, the criteria for the award may include teaching, speaking, authorship, service to the Council, professional, civic or charitable service and creativity or accomplishment in development of services, products, solutions, legislation.

Past recipients of the Distinguished Estate Planner Award include: Janet L. Lowder (2023), James A. Goldsmith (2022), Lisa Roberts-Mamone (2021), Don Laubacher (2020), Ginger F. Mlakar (2019), Alan D. Gross (2018), Patrick J. Saccogna (2017), Howard B. Edelstein (2016), Joseph M. Mentrek (2015), Radd L. Riebe (2014), M. Elizabeth Monihan (2013), Matthew F. Kadish (2012), Gary A. Zwick (2011), M. Patricia Culler (2010), Stephen H. Gariepy (2009), Marcia J. Wexberg (2008), James G. Dickinson (2007), Herbert L. Braverman (2006), Roger L. Shumaker (2005), Jeffry L. Weiler (2004), Robert M. Brucken (2003), J. Donald Cairns (2002), and P. Thomas Austin (2001).

The Awards celebration will be hosted by The Estate Planning Council of Cleveland on June 10th.

Additional information on the Distinguished Estate Planner Award can be found on the Estate Planning Council of Cleveland website: https://www.epccleveland.org/members/directoryAddl.

Building Your Retirement Portfolio: Traditional vs. Roth IRA

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When you think of saving for retirement, what is the first thing that comes to mind? For many individuals, it is their employer-sponsored 401(k) plan. However, you cannot complete the conversation around retirement planning without addressing Individual Retirement Accounts (also known as IRAs). Over $15 trillion of the U.S.’s wealth is held in IRA accounts, and over 28,000 Americans have IRA accounts with balances over $5 million. When planning for retirement, contributing to an IRA can be a useful addition to your retirement portfolio – and you can make IRA contributions in conjunction with contributions to your employer-sponsored retirement account (such as a 401(k)) to maximize retirement savings. This makes the IRA a viable option for a wide range of individuals at various ages and income levels.

This article will review the different types of IRA accounts, the rules behind withdrawing from and making contributions to these accounts, how an IRA could fit into your overall retirement portfolio, and what an IRA account could potentially grow to if you contribute the maximum amount to it each year.

Traditional vs. Roth IRA

Wellspring Appoints New President and Chief Operating Officer

Wellspring Financial Advisors Appoints New President and Chief Operating Officer
Jeff Kadlic joins the Cleveland-based multi-family office to provide strategic leadership and operational management while supporting its expansion of services

CLEVELAND – Aug. 26, 2024 – Wellspring Financial Advisors (“Wellspring”), an independent, fee-only multi-family office offering comprehensive wealth management services to ultra-high-net-worth individuals and families, has appointed Jeff Kadlic as its new President and Chief Operating Officer. Kadlic will provide strategic and operational direction for the firm, with a particular focus on expanding the firm’s suite of services for its clients and driving operational efficiencies.Kadlic joins from Evolution Capital Partners, where he served as Founding Partner. He brings over 25 years of professional experience across disciplines, including strategic leadership, operational management, client relations, alternative investments, financial management and stakeholder engagement. His insights will support the ongoing development of Wellspring’s client-first culture, rooted in excellence and collaboration. He will report to Wellspring founder and Chief Executive Officer Michael Novak.

“We have a clear vision for Wellspring’s ongoing evolution, firmly anchored by our founding mission and core values,” said Novak. “Jeff shares our team’s enthusiasm for our client-first philosophy and fully supports our mission of delivering quality services that help our clients achieve wellbeing throughout every aspect of their lives. We are excited to welcome him to the team and benefit from his experience and expertise.”

Novak founded Wellspring in 2007 and sought to apply an entrepreneurial and holistic philosophy to working with wealthy families, specifically providing the services and support they need in one place. Built on a culture of trust and client-first mentality, Wellspring has 25 full-time employees who serve client families across the U.S.

“Wellspring has designed a client-first service model that rests on a foundation of strong relationships, trust, personalized service and a deep understanding of its clients’ unique needs,” said Kadlic. “The leadership team is dedicated to continued innovation and evolution, all with the client’s needs and goals at the forefront. I am excited and energized to join the team and align in advancing their mission.”

Kadlic assumes the new role as of Sept. 3, 2024. He holds a Masters of Management Studies from the Kellogg Graduate School of Management at Northwestern University and a Bachelor of Science in Finance from Miami University (Ohio).

About Wellspring Financial Advisors
Wellspring Financial Advisors is an independent, fee-only multi-family office offering comprehensive wealth management services to ultra-high-net-worth individuals and families. The firm was founded by Michael Novak in 2007 and seeks to meet the multidimensional needs of wealthy families. Its core services include investment management and oversight, integrated wealth planning and family governance and education. Headquartered in Cleveland, Ohio, Novak serves as the firm’s Chief Executive Officer.

Media Contact
Marissa Foy Comerford
Gregory FCA for Wellspring
WellspringFinancialAdvisors@GreoryFCA.com
610-228-2104

Wellspring 2023 Impact Report

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At our core, Wellspring serves to improve the lives of others. Our mission is, and always has been, to work hard everyday to make a difference. We accomplish this through our dedication to providing professional guidance to our clients, giving back to the community through donation of time, talent, and treasure, and creating a collaborative and inclusive environment for employees to thrive.

This report focuses on two of Wellspring’s core values: give back and cultivate inclusivity, outlining our commitment to serving the community on a firm and individual level and creating a workplace where differences are embraced.

We welcome you to review our 2023 accomplishments and goals as we continue to grow and evolve as a firm centered on serving others.

2023 Impact Report