The Rast Group at Morgan Stanley Smith Barney Principle Driven Wealth Management
1501 Main Street Suite 715, Columbia, SC 29201 803-251-3300 / MAIN 800-786-7866 / TOLL-FREE www.therastgroup.com ben.rast@mssb.com matthew.mcfadden@mssb.com kathryn.robinson@mssb.com Twitter @benrast_mssb
The Rast Group at Morgan Stanley Smith Barney Our clients invest their money with us. We invest our time in them. Ben Rast Our clients are interested in investment guidance that is intelligent, professional, and based on sound principles. They also want someone they can trust to help them with all their financial decisions, not just investing leaving a legacy, transferring wealth to the next generation, planning for retirement, educating their children. Finally, they prefer to work with a group that is highly personal, that understands their unique needs, and that is passionate about helping them succeed. We at The Rast Group at Morgan Stanley Smith Barney are singularly focused on providing this level of service to those who value it. THE RAST GROUP 3
Meet the Professionals The Rast Group at Morgan Stanley Smith Barney 4 MORGAN STANLEY SMITH BARNEY
Ben Rast, CFP, CIMA Portfolio Manager Senior Vice President - Wealth Management Ben is the founder and senior partner of the Rast Group. He is a Certified Financial Planner (CFP) and a Certified Investment Management Analyst (CIMA). Ben graduated from the University of South Carolina, where he earned his MBA in International Business and Finance. He has completed executive education programs in financial planning and wealth management at Stern NYU, Wharton, the University of Chicago, and Stanford University. Ben is a co-founder of the Bastiat Society, a not-for-profit business education foundation. He enjoys boating and target shooting, and is a voracious and adventurous reader. Ben and his wife Peggy attend Our Lady of the Lake Catholic Church. Matthew Mcfadden Financial Advisor Matthew is a partner at the Rast Group. He began working at the Rast Group while still in college in 2002. He quickly developed a reputation for accuracy, efficiency and enthusiasm. Upon his graduation, he joined the firm. Matthew attended the University of South Carolina s Honors College with a full merit-based scholarship. Nevertheless, he worked his way through school as a Resident Advisor and a restaurant manager. Matthew s father was a physician in the military, so his family has lived all over the world. He and his wife Grace attend First Presbyterian Church, and enjoy sailing, travel and spending time with their friends. Kathryn Robinson Senior Registered Client Service Associate Kathryn works with clients on operations and service requests. She started handling operations and client service for the Rast Group in 1995. Her outstanding work earned her a position on the National CSA Council, where she served as Chair for two years. Kathryn attended Erskine College and completed her studies at the University of South Carolina where she earned a degree in economics. Upon her graduation, she was accepted into the highly competitive management training program at Southern National Bank. A native of Columbia, Kathryn and her husband Randall are members of the Mt Horeb United Methodist Church. They enjoy running, swimming and cycling. THE RAST GROUP 5
Our Principles The only way to deal with uncertainty is to have an adaptable process for managing your wealth one based on sound principles. Ben Rast At The Rast Group at Morgan Stanley Smith Barney, we have identified Four Principles that we use to help our clients achieve their goals. The Principle of Surprise "Life will be what life has always been; one surprise after another." The Principle of Protection "Prudent investors must take steps to protect themselves from catastrophic surprises." The Principle of Cost Effectiveness "It's not what you make that counts; it's what you keep." The Principle of Rebalancing "Markets are very good at telling investors exactly what to do, but investors don't always like what they hear." 6 MORGAN STANLEY SMITH BARNEY
The Principle of Surprise "Life will be what life has always been, one surprise after another." Ben Rast No one, no matter how smart or skilled or knowledgeable, can consistently predict the future. There are just too many variables, too many random events, too much complexity. This is true of every human endeavor. From the point of view of a prudent investor, understanding this simple but profound concept leads to some important conclusions: Don't place big bets on being right about an uncertain future. Invest in markets. Let them pick the winners. Markets give investors the opportunity to share in entrepreneurial gain, while avoiding catastrophic entrepreneurial loss. You can see this principle at work every day after all, some of the largest and most important companies in the world today didn t exist 20 years ago -- and might not exist 20 years from now. 8 MORGAN STANLEY SMITH BARNEY
The Principle of Protection "A prudent investor must take steps to proctect himself from catastrophic negative surprises." Matthew McFadden As an investor, it s important to protect yourself against unpleasant surprises. We protect our clients in a number of ways: Avoiding concentrated positions. Diversifying across a wide range of asset classes. Establishing and adhering to a strict asset allocation strategy. Using low-cost investments as our primary portfolio building blocks. 10 MORGAN STANLEY SMITH BARNEY
The Principle of Cost Effectiveness "It's not what you make that counts; it's what you keep." Ben Rast John Bogle, the founder of the Vanguard Group has said that the typical mutual fund investor earns about 3 percentage points less per year than the typical fund itself. What happens to the rest? It is consumed by fees. At the Rast Group, we know that a wealth management plan must be cost effective. Therefore, we will: Execute your trades on the most cost effective platform. Use low-cost investments wherever possible. Work closely with tax advisors to ensure that investment plans and tax plans are well-coordinated. Report your results net of fees. 12 MORGAN STANLEY SMITH BARNEY
The Principle of Rebalancing "Markets are very good at telling investors what to do, but investors don't always like what they hear." Matthew McFadden Establishing an asset allocation strategy is important but not nearly as important as following it. The original plan often gets out of balance rather quickly, so it s important to rebalance regularly. Accordingly: Four times a year, we will rebalance your accounts to maintain the proper asset allocation. In taxable accounts, we will carefully consider the tax consequences of rebalancing before placing any trades. Rebalancing leads us to sell what is doing well, and to buy what is not yet doing well. This may feel counterintuitive, but it is central to a wellexcuted asset allocation strategy. 14 MORGAN STANLEY SMITH BARNEY
Can We Help You? "At the Rast Group at Morgan Stanley Smith Barney, we provide personal, professional wealth management to a select, carefully chosen group of clients." Kathryn Robinson We follow the specific principles outlined in this brochure, providing our clients with a disciplined approach and proven expertise. As needed, we are backed by the strength and vast resources of Morgan Stanley Smith Barney. We welcome the opportunity to discuss your needs with you. We are now interviewing new clients with at least $2,000,000 in investable assets. 16 MORGAN STANLEY SMITH BARNEY
Morgan Stanley Smith Barney strives to offer clients the finest in financial thinking, products and execution to help them meet their individual needs and achieve their personal financial goals. When we work together, you ll benefit from personalized advice, objective guidance and dedication to your success as an investor. With access to Morgan Stanley Smith Barney s renowned global resources and investment opportunities, we can help you develop and maintain an optimal investment strategy. Our wealth management strategy will address key areas of your financial life beyond traditional investments and may incorporate diverse recommendations for building and protecting your wealth. 18 MORGAN STANLEY SMITH BARNEY
Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney Financial Advisors do not provide tax or legal advice. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters. Morgan Stanley Smith Barney offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please contact us to understand these differences. Morgan Stanley Smith Barney has entered into arrangements with banks and other third parties to assist in offering certain bankingrelated products and services. Unless otherwise specifically disclosed to you in writing, investments and services offered through Morgan Stanley Smith Barney, member SIPC, are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, banks and involve investment risks, including possible loss of principal amount invested. Asset allocation and diversification do not guarantee a profit or protect against loss. Morgan Stanley Smith Barney LLC (Morgan Stanley Smith Barney) is a registered brokerdealer, not a bank. Where appropriate, 2011 Morgan Stanley Smith Barney LLC. Member SIPC. 234616 12/2011