How smart entrepreneurs future-proof their legacy.
Most entrepreneurs who have built a corporation to a valuation in the hundreds of millions (or higher) will tell you about a beginning filled with hard work, sleepless nights and worry over whether or not their business would survive. We work with many family businesses that are now worth over a billion dollars, but they all started somewhere.
Those early days are the ideal time to strategize for future success by shielding yourself and your business from unnecessary tax burdens, maximizing the impact of your legacy and creating terms that fulfill your vision. However, many of those same entrepreneurs who are so good at building a business from the ground up fail to forecast 20 or 30 years into the future. They're too focused on the now. Unfortunately, by the time a business reaches the pinnacle of its success, it may be too late to fully take advantage of the opportunities that existed early on.
That's where an experienced multifamily office comes in: they are specialists in helping individuals, entrepreneurs and families think far ahead and lay the necessary groundwork for a best-case scenario. The goal is to maximize potential returns and help “future-proof” clients' legacies, allowing them to fully enjoy the fruits of their hard work.
Easing Tax Burdens
When a company isn't worth a fortune, it's easy to forget about what might happen when its value rises. One important step is to qualify for Qualified Small Business Stock (QSBS) when the business is worth less than $50 million. Setting up a business to qualify for the QSBS isn't overly challenging. The entity must be a domestic C Corp, at least 80% of the corporation's assets must be used to conduct one or more qualified trades and originally acquired stock must be held for a minimum of five years, among other requirements. However, this process must be diligently undertaken to ensure entrepreneurs can reap the benefits down the line.
With QSBS, 100% of the gain from a sale can be excluded from federal income tax (subject to certain limitations), which can amount to a fortune if a company is sold for a high value. A number of multifamily office — and, more specifically, those with robust trust services — can both serve in an advisory capacity and handle the execution of the necessary steps (such as engaging and managing the right tax and legal professionals), allowing the entrepreneur to focus on growing the business.
Location, Location, Location
If there's any flexibility regarding where a business is located, multifamily offices can help set owners up in the most tax-advantaged position. For example, businesses located in California are subject to one of the highest corporate tax rates in the nation at 8.84%. If the income is generated by California real estate or headquartered in California, there's no way to escape that rate.
However, if the business can be headquartered in a more tax-advantaged state such as Nevada, which does not levy a corporate income tax, it might be worth considering. To help smooth the generational transition, some families utilize a trust situs in Nevada to hold their shares of the business. Nevada situs can help avoid California income taxes and California capital gains taxes (which amount to 13.3%) upon the sale of the business.
Mitigating Future Estate Taxes
If businesses grow inside a taxable estate, the government takes 40% of the value upon the owner's passing. For entrepreneurs who are building a successful corporation, it can be beneficial to allocate some shares into a trust outside of the taxable estate, where they can grow in value without being subject to the estate tax. There are a variety of trusts that allow owners to reap the benefits of the assets during their lifetimes, while shielding the estate from an onerous tax burden.
Preserving Family Harmony
Finally, it may not be obvious, but it's important to coordinate the estate plans of all family members who are involved in the business to ensure that they are aligned with the overall succession plan. The goal is to put a master plan in place that balances financial, corporate and relational goals so that the business — and the family attached to it — will thrive in perpetuity.
Start Early for Maximum Benefits
If you're reading this and your business isn't (yet) close to the multimillion-dollar threshold, it's still important to take the time to be thoughtful about how you'll set it up for future success. You may be spending your days working on improving the current bottom line, managing staff and investing in refining your product and service offerings. Still, we've seen companies quickly catapult from a few million in assets to a much higher value, so it's important not to wait. Having a go-to team of advisors who can provide both strategy and execution to file necessary paperwork, think critically about the company's financial trajectory and maximize the benefits as it grows.
Written by Brian Bissell, Senior Vice President, Client Advisor in the Orange County office of Whittier Trust.
Featured in Family Business Magazine. To learn more about how Whittier Trust can support you, your family and your legacy through our family office services, start a conversation with a Whittier Trust advisor today by visiting our contact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
Whit Batchelor, from Whittier Trust's Newport Beach Office, is set to lead the expansion, strengthening client and community bonds within the region.
Whittier Trust is excited to announce the opening of its newest office in San Diego, reinforcing its deep commitment to serving clients in the region with a local, personalized approach. With a legacy rooted in Southern California, Whittier Trust has long advised clients and worked closely with charitable organizations based in San Diego. This expansion is a direct result of the wealth management company's continued growth in the region.
"Our decision to establish a full-time presence in the San Diego area reflects both the incredible growth we've seen here and the deep trust San Diego's most successful families have placed in us for decades," said David Dahl, President and CEO of Whittier Trust. "Our expansion into San Diego is also a reflection of our long-standing ties to the community," said David Dahl. "The Whittier family has a deep history in the region, and we are proud to strengthen our presence here, not just to better serve our clients, but to be closer to the charitable organizations and causes we have supported for years."
Whittier Trust's commitment to San Diego extends beyond wealth management, as the firm actively supports a variety of local organizations integral to the community. This includes the Helen Woodward Animal Center, which promotes animal welfare and pet adoption services; Scripps' Mericos Eye Institute and Whittier Diabetes Institute, advancing medical research and patient care; the San Diego-Imperial Council of the Boy Scouts of America, fostering leadership and service among youth; and the University of San Diego, where Whittier Trust contributes to higher education and leadership development initiatives.
Leading the new San Diego office is Whit Batchelor, newly appointed Executive Vice President, Client Advisor and San Diego Regional Manager. A longtime leader in Whittier Trust's Newport Beach office known for his dedication and accessibility to clients, Batchelor has worked extensively with ultra-high-net-worth individuals and families in San Diego, crafting tailor-made, multi-generational wealth management strategies. His leadership ensures a seamless transition for existing clients while setting the stage for further growth in the region.
"With this new office in San Diego, I am eager to build upon the legacy of trust, integrity and boutique service that Whittier Trust has cultivated for generations," said Batchelor. "I look forward to expanding our connections within the community, enhancing our ability to serve clients locally with tailored financial strategies and contributing to the vibrant culture of San Diego."
Complimenting this milestone of growth, this year also marks the 25th anniversary of Whittier Trust's Seattle Office. The firm also recently opened offices in Menlo Park and West Los Angeles and relocated its headquarters to a larger space in Pasadena to accommodate an increasing number of experienced professionals dedicated to serving a growing client base. As Whittier Trust continues to grow, its focus remains on providing the highest level of personalized service through a relationship-driven, client-first approach.
The office will be located at: 12770 El Camino Real, Ste 120, San Diego, CA 92130, twenty miles north of Downtown San Diego in Del Mar.
For more information about Whittier Trust's wealth management, estate planning and family office services, start a conversation with a Whittier Trust advisor today by visiting our contact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
The momentum from two years of remarkable economic resilience and strong market returns came to an abrupt halt in April 2025. The catalyst for market turmoil this time around was an unexpected turn in the administration’s global trade policy.
April 2, 2025 was touted as Liberation Day in anticipation of the long-awaited details on President Trump’s reciprocal tariff policy. The President used his executive authority to address the lack of reciprocity in U.S. bilateral trade relationships and to “level the playing field for American workers and manufacturers, re-shore American jobs, expand our domestic manufacturing base, and ensure our defense-industrial base is not dependent on foreign adversaries—all leading to stronger economic and national security” (Office of the United States Trade Representative).
However, the scope and magnitude of the proposed tariffs exceeded all expectations. In the initial Liberation Day proposal, all countries were subject to a minimum tariff rate of 10%. Countries with whom the U.S. has a large trade deficit were subject to even higher reciprocal tariffs.
The immediate reaction to the announcement was an immense fear of a global recession and a spike in inflation. Consistent with these fears, stocks sold off dramatically after the initial announcement. A temporary pause in reciprocal tariffs for all countries except China then halted the stock market decline. However, the U.S. dollar and bond market both fell sharply and unexpectedly during the week of April 7, 2025 in contrast to their conventional safe haven status.
We address concerns about higher inflation, higher rates, a recession, a bear market, and a weaker U.S. dollar in this article.
We are aware that this is a highly charged and contentious topic. We will, therefore, refrain from any ideological, philosophical, political, or moral judgment on the subject. We also realize that public disclosures on the topic may lack full transparency for reasons of national security. In a rapidly changing world, our views here have been penned in mid-April 2025.
How Did We Get Here?
The original impetus for higher tariffs is likely rooted in the fact that almost all of our trading partners charge a higher tariff on our exports to them than we do on their exports to us. For example, 2023 World Trade Organization data estimates that China, India and the UK have tariff rates of around 17%, 12% and 5% respectively on U.S. exports to them. In contrast, our corresponding tariffs on their exports to us are around 10%, 2% and 2% respectively. This mismatch in tariffs is probably further exacerbated by other unfair trade practices such as non-tariff barriers and currency manipulation.
The administration’s policy on tariffs may have been further emboldened by the perceived leverage of the U.S. over many of its trading partners. Figure 1 shows how this leverage is achieved. It compares the importance of a country’s imports to us (x-axis) versus the importance of U.S. exports to its own global trade (y-axis).
Figure 1: Leverage in Trade Relationships
Source: Wolfe Research, World Integrated Trade Solution as of 2022
This chart helps us understand where the U.S. has more leverage with its trading partners. We explain Figure 1 with an example. Take Vietnam for instance. All imports to the U.S. from Vietnam account for only around 4% of total U.S. imports. However, those same Vietnam exports to the U.S. account for almost 32% of its total exports. In light of this imbalance, Vietnam is far more likely to negotiate than retaliate.
In Figure 1, it is clear that Mexico, Canada and several Emerging Markets countries in Asia and South America are most dependent on trade with the U.S., while countries in the EU have more equal trading relationships. China has the most trading leverage against the U.S.; its retaliation has, therefore, been fast and furious.
These salient data points had already been priced into expectations of a higher tariff rate of around 8% prior to Liberation Day. Nonetheless, markets were caught off guard on April 2nd at two levels—by the methodology of tariff calculations and the resulting magnitude of reciprocal tariffs.
Contrary to expectations of a more targeted approach, the reciprocal tariffs were derived from a rudimentary framework that aimed to reduce bilateral trade deficits. Each country’s tariff rate was determined by dividing the U.S. trade deficit with that country by total imports from that country. This number was then cut in half to create the new U.S. “discounted” reciprocal tariff. Here are some of the initial proposed reciprocal tariffs from Liberation Day: China 34%, EU 20%, Japan 24%, India 26%, Vietnam 46%, Switzerland 31% and UK 10%.
These initial reciprocal tariffs have since been suspended for 90 days for all countries except China from April 10th. In sharp contrast, tariffs with China have escalated exponentially through a sequence of retaliations; they now stand at 145% on Chinese exports to the U.S. and 125% on U.S. exports to China. U.S. tariffs on all other countries temporarily stand at the minimum baseline of 10%.
We summarize the revised April 10th levels of tariffs in Figure 2 before turning to our inferences and forecasts.
Figure 2: Average Effective Tariff Rate as of April 10, 2025
Source: The Budget Lab, Yale University
The average global tariff rate for the U.S. is now projected to go up more than 10-fold from 2.4% to approximately 27%. We label this average tariff rate as a “pre substitution” rate since it assumes that all flows of global trade remain constant and intact at 2024 levels. However, higher tariffs on Chinese goods may well trigger substitution to other cheaper imports. The resulting “post substitution” average tariff rate is lower and estimated to be 19%.
Thoughts on Current Trade Policy
We appreciate the desire to increase the U.S. manufacturing base and reduce foreign dependencies in industries critical to national security. We also applaud the pursuit of fairer terms for global trade.
Nonetheless, we initially believed that it was sub-optimal to achieve these goals with an aggressive trade policy alone. A number of tenets in the opening approach seemed misaligned with our global leadership role, created by our own dominant economy and strong alliances with others.
The costs of high fixed trade barriers are well-known, e.g. higher prices, slower growth, less competition, less innovation, and lower standard of living. The expansive and punitive trade war in its initial formulation on April 2nd risked a U.S. recession and an alienation of our allies.
The singular focus on reducing bilateral trade deficits through high imputed tariffs also felt misguided. A large portion of the U.S. trade deficit is driven by principles of comparative advantage where cost of production is often lower overseas and by cultural differences in our lower propensity to save and greater desire to consume. Besides, the large foreign trade surpluses eventually make their way back into U.S. dollar-denominated assets giving our stocks, bonds and currency hegemonic power.
These thoughts may also have preyed on investors’ minds as they indiscriminately sold risk assets. The S&P 500 suffered a 2-day decline of -10.5% on April 3rd and 4th. It was remarkably the first ever decline of such magnitude to be triggered by a policy initiative during benign times – as opposed to an existing endogenous fundamental crisis (e.g. Global Financial Crisis) or an unexpected exogenous shock (e.g. Covid).
Two recent developments have opened up a different possibility for the intent and scope of the current trade war: 1) The U.S. has rapidly escalated tariffs against China all the way up to 145% and 2) The U.S. has rapidly deescalated tariffs on all other countries down to 10% for 90 days. There may now be some credence to a scenario where the trade war is focused on curtailing China’s economic, manufacturing, scientific, technological, and military might while actually strengthening all other global alliances through reconciliation, collaboration and some coercion.
Future Evolution of Trade Policy
We have maintained since the elections that the bark of proposed tariffs will eventually be bigger than its final bite. We have been clearly surprised by the much louder bark and greater magnitude of the new reciprocal tariffs and the damage they have inflicted on the markets so far. Nonetheless, we still believe they will eventually be implemented at lower levels than the ones proposed on April 2nd.
Excluding China, we reckon that global tariffs will settle in at the 8-18% level. While an extensive and protracted global trade war remains a possibility, it is not our base case.
It would serve both the U.S. and China well to find an off ramp towards a more stable co-existence as the world’s two leading economies. If that doesn’t happen for any reason, it is conceivable that the U.S. may largely shift its trade dependence on China to other countries. As supply chains re-adjust, we expect the tariff shock to fade and be subsumed by the positive fundamentals of higher productivity growth, fiscal stimulus and deregulation.
Impact on the Economy
The direct impact of higher tariffs is clearly inflationary and recessionary. We also understand that high levels of policy uncertainty can take an indirect economic toll from reduced consumer spending, slower hiring and lower capital expenditures.
Since higher prices are tantamount to a tax on households, we begin by estimating the impact of tariffs on disposable incomes. Figure 3 shows the likely impact of the April 10 package of tariffs on disposable incomes across different deciles of household incomes.
Figure 3: Impact of Tariffs on Disposable Income
Source: The Budget Lab, Yale University
The top 10% of households by income (highest decile #10) in Figure 3 is expected to see the smallest disposable income decline of -2%. On the other hand, the lowest decile of household income may see disposable income fall by almost -5%.
Any reduction in consumer spending from a decline in disposable income will likely be uneven and disproportionate across income categories. A -2% decline in disposable income for the highest income households may have virtually no effect on their spending. Since most of the aggregate consumer spending takes place in high income households, we are optimistic about a relatively muted impact of tariffs on growth.
We expect up to a -1% direct impact of tariffs on GDP growth and up to a -0.5% indirect impact. Therefore, we expect GDP growth to be reduced by -1% to -1.5% in 2025. From a strong starting point of 2.5% real GDP growth, we expect 2025 growth will still be above zero even after our anticipated reduction.
While the odds of a recession or “stagflation” have gone up, neither scenario is our base case. We estimate the odds of a recession to be 30%, which is well below the consensus expectation of 60-70%.
It is evident that inflation will likely be higher in 2025, but we expect it to subside in 2026 as the world adjusts to a new global trade order. On a positive note, we observe that inflation expectations for a 5-year period starting in 2030 have actually declined from 2.3% to 2.1% as of April 11, 2025. We believe current Treasury bond prices are overestimating long-term inflation risks.
Impact on the Markets
U.S. Stocks
The U.S. stock market has seen some wild swings in 2025. Here is the most striking statistic we have found on recent stock market volatility: If you add up all the absolute intra day moves of 3% or more in the 3 trading days between April 7th and April 9th, the S&P moved a monumental 52%!
In the midst of such high volatility and uncertainty, it is difficult to form an outlook for U.S. stocks. We give the task at hand our best analytical effort and intuitive judgment by forecasting both expected S&P 500 earnings and P/E multiples.
We have observed over the years that earnings growth for the S&P 500 tends to be 3-4 times U.S. GDP growth. Based on our view above that GDP growth may be lower by -1% to -1.5%, we expect S&P 500 earnings growth may also be lower by around -4% to -5%. Despite a reduction in the earnings growth rate because of tariffs, earnings will still rise in the next 12 months.
We have a more differentiated view on where trough multiples will likely end up. In prior recessions, they have fallen to as low as 10-13x. In non-recessionary growth scares, they have fallen to 15-16x.
We believe trough multiples will be higher during this growth scare. The current economic and market crisis is policy-induced; up to a certain point, the antidote for the crisis also remains in the hands of policymakers. And as a beacon of hope and optimism, we already have light at the end of the tariff tunnel in the form of fiscal stimulus and deregulation. Therefore, we strongly believe the trough P/E multiple will be higher this time at about 18x.
We also know that trough earnings and trough P/E multiples are never coincident; you cannot see them simultaneously. You typically see trough prices first, then trough multiples and finally trough earnings.
With these building blocks in hand, we estimate that a viable floor for the S&P 500 may exist at the 4,900-5,000 level. While we obviously cannot rule out lower prices, we may just about avoid a bear market by remaining above its closing price threshold of 4,915.
Our base case rules out a bear market, expects the current correction will not be protracted and predicts the S&P 500 will deliver a positive return in 2025.
U.S. Bonds and Dollar
The manic turmoil in the U.S. bond and currency markets during the week of April 7th could well be the topic of an entire article. We confine ourselves to a few key observations here.
Treasury bond prices and the U.S. dollar both fell significantly in the second week of April. This is an extremely rare occurrence, and it triggered profound fears that we were at the beginning of the end of U.S dominance in global bond and currency markets. Critics attributed the selloff to fundamental factors ranging from heightened U.S. fiscal risks caused by an imminent recession to a devastating loss of confidence in U.S. institutions and leadership.
We do not believe those factors were central to the meltdown in U.S. bonds and the dollar. Instead, we believe it originated from a more nuanced and niche event in the bond market. It is widely understood that hedge funds were unwinding a very large and highly leveraged “bond basis” trade in the face of low liquidity and high volatility. This forced and rapid liquidation created significant price dislocations in both Treasury bonds and the U.S. dollar.
We expect U.S. Treasury bonds and the dollar to stabilize in the coming weeks. We believe the 10-year Treasury yield should be closer to 4.1-4.2% in the near term and around 4.5-4.6% in the long run.
Summary
We close out our discussion on a positive and optimistic note.
We know from prior experience that high levels of consumer pessimism, policy uncertainty and fear gauges tend to be contrarian in nature. In other words, stock market returns in the aftermath of high pessimism or fear have historically been high. Figure 4 shows the contrarian nature of consumer sentiment.
Figure 4: Consumer Sentiment is Contrarian
Source: University of Michigan, JPMAM, as of April 2025
The latest reading of consumer sentiment nearly reached its all-time low mark of 50.0 on April 11, 2025. While it accurately reflects coincident pain in the economy, it sadly lags the direction of future stock prices.
The stock market tends to look 9-12 months ahead and generally bottoms out when things are at their worst and about to get better. If history is any indication, stock returns over the next 12 months may be handily positive.
We summarize our key takeaways below.
We believe final tariffs will be lower than those proposed currently; their impact on inflation, GDP growth and corporate profits will also be lower than currently feared.
We assign a low probability to a recession, “stagflation” or a bear market.
We do not anticipate a protracted correction in stock prices; we expect the S&P 500 to deliver a positive return in 2025.
We believe fears of “de-dollarization” and significantly higher Treasury yields are overblown; we expect the bond market and the U.S. dollar to halt their declines in the coming weeks.
Within client portfolios, we are focused on adding to or buying new high quality securities that have sold off disproportionately in this “tariff turmoil”. In these uncertain times, we remain careful, prudent, disciplined, and prepared to act on emerging opportunities.
To learn more about our views on the market or to speak with an advisor about our services, visit our Contact Page.
How high-net-worth families can protect their legacy while supporting their heirs.
Every parent dreams that our children will grow up to be happy, productive, contributing members of society. We envision a path that may include youth sports, music and the arts, faith and culture, and of course, education. Our fervent hope is that our efforts to provide the best possible resources to our children will result in highly functioning adults who love us and share our values of family and community. Still, despite the best parenting efforts, highly functioning adults don’t always happen.
Some children come into the world with special needs. Others experience developmental delays or challenges. Still others make it to teen or young adult years relatively unscathed only to experience mental or emotional difficulties, or perhaps even substance abuse, later in life. It is part of the human experience to go through struggles in life and family; financial status is not a guarantee of better outcomes. What is a family to do then, when planning for a multi-generational wealth transfer amid the specter of children (or grandchildren) who are currently incapable of being good stewards of wealth? How does a family plan around a child with severe emotional limitations or addictions?
Where there are obvious physical and developmental difficulties that will require lifetime care and consideration, estate planners frequently suggest “special needs” trusts designed to provide maximum flexibility to support the beneficiary as their needs change throughout life. Far more challenging, however, are situations where alcohol and drug addiction present ongoing issues.
Of course, a family member with substance abuse issues is disruptive on many levels. For parents or grandparents who are planning to transfer assets to younger generations, addiction presents an extra element of complexity. Even if there are not any current issues among family members, we hear from clients all the time that they want to protect their heirs from harm in the event addiction presents itself in the future. Finally, the addict may not be a direct descendent but the spouse or partner of one of our children.
It is well known that irrevocable trusts can be an effective tool in protecting assets from creditors. They are also effective in protecting beneficiaries from their own worst impulses. Since creditors cannot generally reach the assets of the trust, the beneficiary may not use the assets as collateral for a loan. The trustee usually has the power to make distributions on behalf of the beneficiary so funds may be made available for treatment centers and other rehabilitative services. If a family is concerned about the trustee having the power over distributions, they can name a special distribution trustee for this purpose. This allows for professional management and administration of the assets while placing a trusted family member or family friend in the position of making discretionary distribution
decisions.
An alternative (or additional) solution could be to make gifts of limited interests in family entities. For example, a limited partnership interest carries with it an ownership stake but typically no management interest nor the ability to compel distributions. Buy/sell agreements among the partners can help ensure that the ownership stays in the family.
When thinking about how to make funds available for the benefit of a family member with addiction issues, it is important to understand that treatment options are typically quite expensive and insurance may be limited, particularly for residential treatment facilities. Also, it is not unusual for an addict to cycle in and out of treatment and sobriety, requiring multiple stays. Sometimes families will hire a “sober living companion” to live with the individual, and take them to therapy and treatment appointments and even 12-step meetings, if those are part of the recovery plan. The people who provide this service are frequently in recovery themselves and have practical experience navigating different situations. Keep in mind that there is no certifying or accrediting agency to provide credentials for these companions so careful monitoring is appropriate.
The trustee with the power to make distributions for the benefit of the family member will need to take these factors into account when making decisions. It’s not an easy task and there is a high degree of uncertainty. This should be expected, so leniency and flexibility towards the decisions of the trustee should be built into the trust documents. Perhaps the most important job of the distribution trustee is to try and prevent additional harm by making direct distributions to a beneficiary who is under the influence or who is experiencing a particular episode of struggle.
These types of concerns arise in situations outside of clinical addiction. Sometimes it’s not substance abuse but some other kind of distress such as cults or psychologically abusive spouses and partners. In these scenarios, providing a trustee with the discretion to do what they think is in the best interests of the beneficiary is critical. Drafting a trust instrument with highly restrictive provisions, while tempting, may undermine the trustee’s ability to provide resources and care for the intended beneficiary.
These are not happy things to think about, and they certainly are not our minds as we spend sleepless nights with newborns and toddlers. Yet we all know the reality of the world we live in. Even if our own families are not facing these situations, we know of others who do. Careful planning and consideration of all the factors is an important part of safeguarding a family’s legacy for multiple generations.
At Whittier Trust, our experience in serving as a trustee and dealing firsthand with beneficiaries who are suffering from addiction and other behavioral issues has provided us with tremendous knowledge that informs how we advise clients in the planning stage.
To learn more about how Whittier Trust can make a difference for you and your loved ones, start a conversation with a Whittier Trust advisor today by visiting our contact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
Three key questions to strengthen your investment strategy.
At its core, investing is straightforward: Buy low, sell high. But additional factors such as taxes, along with your risk tolerance and asset mix, can significantly impact your returns. Three key questions can help ensure your investment strategy is positioned to maximize your long-term after-tax returns and legacy goals.
1) Is your wealth concentrated in just one or two businesses, asset classes, or stocks?
At Whittier Trust, new clients frequently come to us having created significant wealth through a single asset—perhaps their own company or stock from an employer. As the oldest multi-family office headquartered on the West Coast, we have seen this position time and time again. But that doesn’t mean that we respond in the same way each time.
“Conventional wisdom tells us that reducing the concentration and diversifying the proceeds is the appropriate way to mitigate an investor’s risk,” says Nick Momyer, Senior Portfolio Manager at Whittier Trust. “But while that may work for one client, it could be all wrong for another.”
At Whittier, we never take a one-size-fits-all approach. “The first step,” Momyer explains, “is to leverage our expertise as fundamental investors to gain a foundational understanding of your assets.”
The Whittier investment team will study the tax characteristics of your holdings and factor in the exposures that inform potential risk and return. “Then, armed with this deep knowledge, we craft personalized portfolios comprised of uncorrelated assets, minimizing the overlap with your existing holdings,” Momyer says.
This complementary method delivers tax efficiency and enhanced downside protection, safeguarding your wealth.
2) Is your investment portfolio tailored specifically for you? Or do you sometimes feel you’re just another account number to your wealth manager?
At Whittier Trust, we believe our clients deserve a more calibrated approach that can significantly improve the compounding power of your portfolio: the use of individual securities for tax-efficient wealth management. Unlike mutual funds, individual securities offer granular control over your portfolio, selecting each holding with detailed knowledge of its track record, integrity, and growth potential.
“Our client-centric approach starts with your objectives,” Momyer says, “which guide our management of a customized portfolio, tailored specifically for your unique needs and desired outcomes. This gives us great advantages for capital gains management and tax-loss harvesting. We can identify assets to complement and diversify a legacy portfolio of concentrated positions, then manage capital gains on a security-by-security basis. This allows us to potentially defer, transfer, or even avoid capital gains taxes through calculated selling and tax-efficient gifting strategies.”
The market will always have ups and downs, and at Whittier, we use these fluctuations to your advantage. By strategically harvesting tax losses on underperforming stocks, the Whittier team offsets taxable gains from other investments, reducing your tax bill and freeing up capital for reinvestment. “Think of it as tax alpha,” Momyer says, “Actively using tax-efficient strategies to boost your after-tax investment returns.”
These stratagems are particularly beneficial for ultra-high-net-worth clients with complex portfolios that include concentrated and highly appreciated assets. Individual securities allow us to navigate these situations effectively, minimizing tax drag and preserving more of your wealth to compound over time.
“One recent example was a client who inherited a concentrated technology holding with a looming tax burden,” Momyer recounts. “We saw an opportunity for a multi-pronged approach. By expertly harvesting tax losses elsewhere in their portfolio and leveraging the client’s donor advised fund, we reduced their tax liability, diversified their portfolio, and honored their charitable wishes.”
3) Are your investments aligned with your long-term financial and legacy goals?
Many investors focus on growing their wealth but may not have a clear roadmap for sustaining it over generations. At Whittier Trust, we integrate portfolio strategy with estate planning, philanthropy, and wealth transfer goals.
“Our approach goes beyond returns. We help clients structure their investments to support their broader objectives, whether that’s leaving a legacy for their family, supporting causes they care about, or simply enjoying financial freedom,” Momyer says. “By considering factors like trust structures, estate planning, and tax implications, we help ensure your portfolio works in concert with your long-term vision.”
At Whittier Trust, we take a holistic approach to wealth management, ensuring that your investments align with your evolving financial needs and legacy aspirations. By combining deep investment expertise with thoughtful estate and tax planning, we help clients not only grow their wealth but also secure their financial legacy with confidence and purpose.
Getting Started
At Whittier Trust, our history and experience become your advantage, directing you to the strongest market performers while making sure taxes don’t erode your wealth. Once our investment team gains a clear understanding of what matters most to you, we craft a customized, efficient portfolio of individual securities, to maximize your after-tax return and meet your objectives. You gain greater control with less effort and stress, knowing you can rely on your fiduciary advisor and family-office investment team to act in your best interests. We invite you to contact Whittier Trust today and discover how we can help you not only achieve your personal and financial goals, but perhaps surpass them.
If you’re ready to explore how Whittier Trust’s tailored investment strategies can work for you, start a conversation with a Whittier Trust advisor today by visiting our contact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
Bringing Decades of Wealth Management Expertise to San Diego’s Ultra-High-Net-Worth Families
Whittier Trust is pleased to announce that Whit Batchelor has been appointed as Executive Vice President, Client Advisor and San Diego Regional Manager, where he will lead the firm’s newest office in San Diego. This appointment underscores Whittier Trust’s dedication to internal leadership development and its commitment to maintaining a client-first culture and relationships spanning generations through experienced, long-tenured professionals.
“Whit’s deep expertise, strong relationships and dedication to client service make him the ideal leader for our official expansion into San Diego,” said David Dahl, President and CEO of Whittier Trust. “Having been with Whittier Trust since 2011, Whit has played a pivotal role in guiding our clients in Southern California. His time as part of the leadership in Newport Beach, coupled with his strong community involvement and extensive work already with clients in San Diego, ensures a seamless transition as we further grow our presence in the region to continue serving our clients locally.”
During his tenure at Whittier Trust’s Newport Beach office, Batchelor spent more than a decade expertly navigating the complex financial landscapes of high-net-worth individuals and families, crafting personalized, multi-generational strategies that align with each family's distinct goals and values. His expertise spans wealth and investment management, estate planning, tax optimization, balance sheet management and comprehensive financial advisory services, essential for a premier multi-family office. Known for his dedication and accessibility, Batchelor cultivated lasting relationships with clients and their families, ensuring continuity and a bespoke approach to financial services. His deep familiarity with the San Diego market, forged through years of building relationships and advising families in the area, further positions him uniquely for this role.
In addition to his expertise in wealth and investment management, estate planning and tax optimization, Batchelor has been an active participant in community initiatives throughout Southern California. While in Newport Beach, he was deeply engaged in service projects and philanthropic efforts, including his tenure on the board of Make-A-Wish Orange County & the Inland Empire, where he served as board chair. He brings this same spirit of community involvement and service to San Diego, where he envisions the office playing an integral role in both client service and regional philanthropy.
Whit Batchelor holds an undergraduate degree from the University of Vermont and an MBA with a finance concentration from California Lutheran University. He is a Certified Trust and Financial Advisor (CTFA) and a Certified Financial Planner (CFP). Outside of work, he enjoys spending time with his wife and three children, pursuing outdoor activities such as sailing, skiing and mountain biking.
As Whittier Trust officially opens this new office in San Diego, the wealth management firm remains committed to its tradition of thoughtful leadership selection, ensuring that every client continues to receive the personalized and sophisticated wealth management services that define the Whittier Trust experience.
For more information about Whittier Trust, start a conversation with an advisor today by visiting ourcontact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
Sandip engaged in a healthy debate with top industry professionals and economists about the recent turmoil in the markets as a growth scare threatens to devolve into a recession or stagflation.
Risk assets have sold off in the midst of high policy uncertainty and fiscal austerity from government job cuts. In the span of just a few weeks, concerns about the U.S. economy have shifted from being overheated to now plunging into a recession.
Sandip believes these fears are overblown and unwarranted. The bark of tariffs will likely be bigger than the bite. Renewed fiscal stimulus, deregulation and productivity growth will eventually push growth higher in the coming years.
Watch now to hear Sandip’s more balanced, strategic and constructive outlook in a discussion with Phil Mackintosh, Chief Economist at Nasdaq; Brian Joyce, Managing Director on the Nasdaq Market Intelligence Desk; Steven Wieting, Chief Economist & Chief Investment Strategist at Citi Wealth; and host of Nasdaq Trade Talks, Jill Malandrino.
To learn more about our views on the market or to speak with an advisor about our services, visit our Contact Page.
Whittier Trust Strengthens Client Service Excellence Within Reno and San Francisco Offices Through Advancement of Distinguished Internal Talent.
Whittier Trust is pleased to announce the promotions of Mathew N.S. Neben to Senior Vice President, Portfolio Manager, and Charlie R. Normandin to Vice President, Client Advisor. These advancements reflect Whittier Trust’s continued commitment to finding and developing top-tier talent and its dedication to providing personalized, relationship-driven wealth management services.
“Charlie and Mat exemplify Whittier Trust’s core values—deep expertise, a client-first mindset, and an unwavering commitment to excellence,” said David Dahl, President and CEO of Whittier Trust. “Charlie’s meticulous approach to fiduciary and financial planning and Mat’s leadership in investment strategy reinforce our mission to deliver highly personalized, long-term wealth solutions.”
Mathew Neben has been elevated to Senior Vice President, Portfolio Manager in Whittier Trust’s Reno office. With over a decade at the firm, Mat manages equity, fixed income, and alternative assets for high-net-worth individuals and foundations. As a member of Whittier Trust’s Investment Committee, he helps shape the firm’s overall investment strategy and conducts in-depth analysis of companies in the Communication Services sector. In his new role, he will continue to refine Whittier Trust’s investment approach while deepening client relationships through customized portfolio management.
Charlie Normandin steps into the position of Vice President, Client Advisor in Whittier Trust’s San Francisco office. Since joining the firm in 2020, Charlie has been instrumental in providing tailored family office services, fiduciary guidance, and financial planning for high-net-worth clients. His keen attention to detail allows him to craft optimal solutions to complex wealth management challenges. In his expanded role, Charlie will continue to deliver strategic financial advice while strengthening Whittier Trust’s client service capabilities in the San Francisco Bay Area.
Beyond their professional achievements, both Mat and Charlie are dedicated to their local communities. Mat serves on the Board of Directors of the Boys & Girls Club of Truckee Meadows, supporting youth development initiatives in Northern Nevada. Charlie is an active member of the San Francisco Estate Planning Council and a passionate advocate for youth organizations, including the Boys & Girls Club.
Whittier Trust views its employees as the foundation of the firm’s success. By fostering a culture of leadership, collaboration, and mentorship, the wealth management company enables team members to grow both personally and professionally. With diverse experiences and expertise, each team member brings fresh insights and innovative solutions that enhance the client experience. Through ongoing knowledge sharing and professional development, Whittier Trust empowers its advisors and portfolio managers in each office to deliver exceptional service, providing clients with local strategic guidance and personalized wealth solutions to preserve and grow their assets for generations.
For more information about Whittier Trust, start a conversation with an advisor today by visiting ourcontact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
Individual securities offer powerful advantages for ultra-high-net-worth investors.
If you’ve been investing for a while, at some point you were probably told that mutual funds were not only an easy answer, but also a wise one, promising a strong return with minimal effort and monitoring. This advice is not wrong, but it doesn’t apply to everyone.
After mutual funds rose to popularity in the bull market of the 1990s, they became a staple of individual retirement accounts (IRAs), which were rapidly replacing traditional pensions. IRAs and other mass-market purposes are exactly what mutual funds are designed for, and they typically perform well toward those goals. But they don’t make sense for investors with the resources to gauge the market on their own.
“One of the things that differentiates Whittier Trust is our belief that clients should own individual positions versus mutual or co-mingled funds,” says David Ronco, Senior Portfolio Manager at Whittier. “Buying individual securities for our clients allows us to save them money with respect to fees and taxes while creating a customized, transparent investment solution.”
“As a portfolio manager, I have an in-depth understanding of all major asset classes including equities, fixed income, real estate, and alternatives,” Ronco continues. “For each client’s portfolio, our team hand-picks the best individual investments to meet their goals.”
Here, Ronco explains four key benefits of owning individual securities.
Customization
Mutual funds are designed to reach a broad cross-section of market participants. “The only customization they offer is a choice between general goals such as growth or income,” Ronco explains. “They don’t take into account your philosophy, your risk tolerance, or the many other factors that can make you a standout investor. They are truly the lowest common denominator of investing.”
Overall Cost
Many mutual funds have high expense ratios, layered on top of wealth management fees. “We call that fee layering, and it’s not an issue with individual securities, which have no embedded fees,” Ronco says. “So right off the bat, moving to individual securities significantly increases the compounding return potential of a client’s portfolio.”
Tax Efficiency
“Individual securities are also more tax efficient than mutual funds by far,” says Ronco. “Mutual funds are essentially not concerned with tax efficiency. They generate capital gains and losses as they trade securities throughout the year, and they have to distribute those net capital gains evenly to all shareholders, even those investors that didn’t engage in any buying or selling.”
Whittier clients benefit from direct ownership of their holdings, which allows precise control over capital gains enabling flexible tax loss harvesting and tax-free compounding. Our portfolio managers strategically leverage these advantages through constant analysis of client positions, ensuring proactive, year-round tax optimization, not just a reactive approach at tax time.
Transparency
Individual securities offer Whittier clients ultimate transparency so their stakes in specific industries and companies are completely clear. “We can provide detailed, real-time information about every security our clients hold,” explains Ronco. “Mutual funds, on the other hand, are a bit of a black box, often reporting 60 to 100 underlying positions under a single, vague name or symbol.”
Growing Your Portfolio
At Whittier, no two client portfolios are the same, and the individual securities selected by portfolio managers and the Whittier investment team reflect the understanding we have of each client’s assets and goals, built through long-term relationships.
“We help families preserve and grow the wealth that they have worked hard to create,” Ronco says. “I consider it a privilege to share the expertise of our Whittier team and my own in-depth understanding of all asset classes—including equities, fixed income, real estate, and alternatives—to help clients build wealth.”
If you’re ready to explore how Whittier Trust’s tailored investment strategies can work for you, start a conversation with a Whittier Trust advisor today by visiting our contact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
Bringing 13 Years of Wealth Management Expertise, Edward Troy Will Continue to Enhance the Firm’s Legacy of Personalized Wealth Management.
Whittier Trust is pleased to announce the appointment of Edward Troy, CFA, as Senior Vice President and Client Advisor in the firm's Pasadena office. With over 13 years of experience guiding high-net-worth families and institutional investors, Edward Troy brings a wealth of expertise in investment management, tax strategy, and wealth planning.
As the oldest multi-family office headquartered on the West Coast, Whittier Trust has built a legacy of excellence in wealth management, providing personalized investment and advisory services to generations of clients. A hallmark of the firm’s success is its deep bench of expert Client Advisors, who serve as trusted partners in developing tailored solutions that preserve and grow wealth over time. Edward’s addition to the team reinforces Whittier Trust’s commitment to top-tier talent and its dedication to delivering exceptional, relationship-driven service.
“We’re excited to welcome Edward to Whittier Trust,” said Peter Zarifes, Managing Director–-Head of Wealth Management at Whittier Trust. “His ability to blend technical expertise with a personal, relationship-driven approach is exactly what sets us apart. Edward doesn’t just manage wealth—he helps clients build meaningful legacies that last for generations.”
Prior to joining Whittier Trust, Edward served as Vice President at Offit Capital Advisors, where he managed portfolios for multi-generational families, endowments, and foundations. His strategic approach and deep understanding of complex financial landscapes have earned him a reputation as a trusted advisor in the industry.
Edward holds a Bachelor of Science in Economics from the University of California, San Diego and is a Chartered Financial Analyst (CFA). He is an active member of the CFA Institute and the CFA Society of Los Angeles.
Outside of work, Edward enjoys traveling with his wife and children and spending time outdoors with close friends.
For more information about Whittier Trust, start a conversation with an advisor today by visiting ourcontact page.
From Investments to Family Office to Trustee Services and more, we are your single-source solution.
When a company isn't worth a fortune, it's easy to forget about what might happen when its value rises. One important step is to qualify for Qualified Small Business Stock (QSBS) when the business is worth less than $50 million. Setting up a business to qualify for the QSBS isn't overly challenging. The entity must be a domestic C Corp, at least 80% of the corporation's assets must be used to conduct one or more qualified trades and originally acquired stock must be held for a minimum of five years, among other requirements. However, this process must be diligently undertaken to ensure entrepreneurs can reap the benefits down the line.
If there's any flexibility regarding where a business is located, multifamily offices can help set owners up in the most tax-advantaged position. For example, businesses located in California are subject to one of the highest corporate tax rates in the nation at 8.84%. If the income is generated by California real estate or headquartered in California, there's no way to escape that rate.
Whittier Trust is pleased to announce the promotions of 
