MAG A

TH ZI
MAKE GROW LIVE
What entrepreneurs need 10 new strategies for 10 exotic adventures for
R
O

N
W

E
W to know about social media. high net worth investors; philanthropic travelers;
Plus: Could AT&T survive crucial questions for your how to fight back
without the iPhone? financial advisor. against a blackmailer.
ES

92
A
9
T

BL 1
ISHED

THE EVOLUTION OF FINANCIAL INTELLIGENCE

ARE WE OUT OF THE WOODS YET?

WORTH.COM

06VOLUME 19 | EDITION 03
Los Angeles—Newport Beach, CA
GR Capital Asset Management
Todd Rustman, CFP®, CFA®, CLU®, CWPP
Senior Wealth Manager
Would rising interest rates be a good
thing for tax-free municipal bonds?
By Todd Rustman
Given the low interest rate environ-
ment, common sense tells us that
interest rates can head only two ways:
sideways or up. Down cannot be con-
sidered, unless we start paying the
government to keep our savings!
For many of our older clients, rising
interest rates means good news if prop-
erly handled. Higher interest rates mean
higher rates of income. We believe in
examining the municipal bond market,
both from state and national perspec-
tives. Higher taxes are likely, regardless
of political bent, so the double tax-free
nature of investing in your state’s munic-
ipal bonds becomes very attractive. In
essence, the higher taxes go, the more
attractive the after-tax equivalent yield
of municipals becomes.
But not all is easy in the municipal
world. Many states, including California
where we are headquartered, have
queasy credit ratings. The municipal
bond market involves risk—perhaps
more now than ever as the “debt cancer”
has affected consumers, businesses,
states and the federal government.
We have two simple (simple in con-
cept, perhaps tougher in execution)
guiding principles in this potentially
Investment income from municipal bonds may be subject to the alternative minimum tax (AMT), and capital
appreciation from discounted bonds may be subject to state or local taxes. Capital gains are not exempt
from federal income tax.
Securities are offered through NEXT Financial Group Inc., member FINRA/SIPC. GR Capital Asset
Management is not an affiliate of NEXT Financial Group.
Leading Wealth Advisor
tax-hostile and higher interest rate
environment.
Stay short. In a rising interest rate
environment, temper your appetite for
long-term bonds because, after pur-
chased, those bonds can suffer more
severe principal declines during the
holding period than shorter-maturity
bonds. Furthermore, it is tough on the
psyche to see others getting higher
yields while you wait (if you do not want
to accept a principal loss) for your bond
to mature.
Watch spreads. In what looks likely
to be a time of higher taxes and interest
rates, be careful in reaching for more
yield, even within the short-term matu-
rity market. Not all issuers are the same.
We are effectively lending money to dif-
ferent entities with varying abilities to
repay. It is important to look at a multi-
tude of factors (including cash flow) to
rationalize higher-than-market yields.
Higher rates can give you a better,
more comfortable sense of where and
when your income will come; however,
the road to these higher rates can be
wrought with pitfalls. Staying close to
your advisor in a partnership is the best
way to face the challenges.
D I S C E R N M E N T I S PA R T O F
THE NEW NORMAL
As the economy and political
environment provide more volatil-
ity and uncertainty, it is good to
discern what is important to you
and your family. Ask:
• What is more important to
you, earning 100 percent of future
stock market gains, or avoiding
100 percent of future losses?
• What potential or rate of
return is worth risking your retire-
ment lifestyle or life savings for?
• If you knew your personalized
longevity expectation—not a
generic bell curve—what would
you do differently in your risk
tolerance?
In this environment, we believe
an introspective look at what is
important to you will make all the
difference in making sure the
roller coaster of life is as bumpy
as you want it to be—and no
more. With the wealth manage-
ment tools available today, one
can put on as many bumper
guards as needed.
 MAKE
How to reach Todd Rustman
I prefer face-to-face meetings with prospective clients.
“Wealth is the ability to Please feel free to call me at 800.805.PLAN (7526)

GROW
or email me at trustman@gr-cam.com.
fully experience life.”
– Henry David Thoreau

LIVE
GR CAPITAL ASSET MANAGEMENT
WHAT’S ON M Y DE SK…

Pictures of my family and four computer

screens—never enough information!

I N EV ER L EAV E H O ME W IT H O U T. . .

Kindle, BlackBerry and a passion for

making an impact each day M Y HOBBI E S ARE …

Learning, traveling, all sports, wine

and picking my battles

About Todd Rustman

Todd Rustman, president of the GRCAM team, has more than 16 years of experience in providing wealth
management and MFO services. He has CFP, CFA, CLU and CWPP certifications, as well as his pilot and
real estate licenses. He is a cofounder of several companies, sits on the board of Gen-Next, and is the California
representative for the Asset Protection Society. He has been named a top wealth advisor nationally with Worth in
2007 and 2008 and was named a five-star wealth manager by Crescendo Business Services for 2009 and 2010.

Compensation Method Asset-based, fixed and hourly fees; commissions

Confidential (investment and insurance products)
Assets Under Management

Primary Custodian for Investor Assets Pershing and Charles Schwab

None required
Minimum Fee for Initial Meeting
Professional Services Provided Planning, investment advisory, money
management and asset protection services; life settlements
$5 million
Minimum Net Worth Requirement
Association Memberships Financial Planning Association, CFA Institute,
California representative for the Asset Protection Society, and Gen-Next
$500 million
Largest Client Net Worth

www.gr-cam.com trustman@gr-cam.com
Website Email

16 years
Financial Services Experience

GR Capital Asset Management 660 Newport Center Drive, Suite 770, Newport Beach, CA 92660 800.805.7526

WORTH.COM J U N E - J U LY 2 0 1 0 091
 W

Todd Rustman, CFP®, CFA®, CLU®, CAPP, MMB, CWPP

Senior Wealth Manager

GR Capital Asset Management (GRCAM)

660 Newport Center Drive
Suite 770
Newport Beach, CA 92660
Tel. 800.805.PLAN

Email: trustman@gr-cam.com
www.gr-cam.com

REPRINTED FROM

THE EVOLUTION OF FINANCIAL INTELLIGENCE

About the Worth Leading Wealth Advisors

The Worth Leading Wealth Advisor admittance process is based on, but not limited to, the Advisor’s experience, education, fiduciary status, compliance record, wealth management services,
methods of compensation and scope of current business. In order to be considered for the Worth Leading Wealth Advisors Program, financial professionals must be willing to provide complete
and full disclosure to investors so that independent analysts from Paladin Registry can thoroughly screen and evaluate their credentials, ethics and business practices. Once admitted,
Advisors pay a fee to be included. Investors and potential investors are solely responsible for the decision to select particular Advisors.