Wealth Management in Indiana

Wealth management without the jargon

Most people with a large balance sheet already have specialists. A CPA files the return, a lawyer drafts the will, an agent sells the policies and a broker handles the stock. What is usually missing is someone whose job is to ask whether those pieces pull in the same direction. A wealth manager plays that role, bringing investments, taxes, insurance and inheritance into a single discussion with one set of numbers.

According to the U.S. Census Bureau, 2020 to 2024 American Community Survey, Indiana has a median household income of about $71,957 and a median home value of about $218,200, with about 70.6 percent of homes owner occupied. Those are modest figures, and they hide a lot of wealth held in ways the census does not count: a farm worth seven figures, an owner-operated machine shop, shares in a company a grandparent worked for, or a long-held position in a pharmaceutical employer.

Who tends to hire a wealth manager

People usually come after a trigger. A parent dies and leaves a farm. A founder sells a company. A manager reaches a senior role with stock awards. A couple nears retirement with a pension, two 401(k) plans and a paid-off house. The common feature is that several large decisions interact, and a mistake in one is costly in another.

If your finances are simpler, a planner or an investment advisor may serve you better at a lower price. A good wealth manager will tell you so.

Farmland and the family operation

For many Hoosier families the biggest asset is land. It rarely produces much cash relative to its value, and the family disagreements it creates can be sharper than money disputes. Several tools help. A written farm lease, with rent set by market conditions, protects the landowner. A limited liability company can hold the land and give heirs shares instead of a deed to a fraction of a field. A buy-sell agreement lets the child who farms purchase siblings’ interests over time, and life insurance can provide the cash to equalize an inheritance. Federal rules allow special valuation of farmland used for farming in certain estates, which can reduce federal estate tax, though conditions apply. Indiana adds no estate tax of its own. Heirs generally receive a stepped-up cost basis at death, so a decision to sell land during life or hold it until death can change the tax result by a large amount.

Owners of manufacturing and service firms

Family-owned machine shops, trucking firms, auto parts suppliers and building contractors dot the state. The owner’s net worth is usually concentrated in the business, which may be hard to sell and can swing in value with a single customer. A wealth manager helps build a plan years before an exit: clean financial statements, a management team that can run the firm without the owner, a valuation from a qualified appraiser and a decision about who should buy it, whether children, employees or an outside firm. An employee stock ownership plan is one route for some firms. Meanwhile, the owner should build wealth outside the company through retirement plans and a taxable portfolio.

Employer stock and executive pay

Indianapolis, Columbus, Fort Wayne and Evansville have large employers in life sciences, engines, insurance and logistics. Managers and engineers at such firms often receive restricted shares, stock options or deferred pay. The planning issues include the timing of sales, tax withholding that falls short of the actual bracket, limits on trading during blackout periods and the risk of having both paycheck and portfolio tied to one company. A written plan that sells on a schedule and invests the proceeds in a diversified mix is the common answer. Our investing guide explains why diversification matters.

Ready for a second opinion?

An advisor who serves Indiana can review your plan, your costs and your coverage. The review is free and carries no pitch.

Request a free review →

Taxes at the state and county level

Federal tax is the larger bill for most people, yet Indiana adds a flat state rate plus a county rate. Because the county is set by your residence on January 1, a move late in the year does not change that year’s rate. Retirement account withdrawals are taxed by the state, while Social Security is not. Charitable giving, retirement plan contributions and the timing of capital gains all affect your bill. A wealth manager coordinates these with your accountant.

Protecting what you have

Several risks threaten a larger balance sheet. An umbrella liability policy adds protection above auto and home coverage for a modest premium. Disability insurance protects income. Long-term care is the largest unplanned cost in later life. Property coverage needs wind, hail and, where relevant, flood protection. Farm and business owners need commercial liability and key-person coverage. A manager checks each of these against your assets. Our estate planning guide explains documents that support the protection plan.

How wealth managers charge

The common arrangement is a percentage of the money the firm oversees, often around one percent on the first million with a lower rate on the next slice. Families whose wealth sits mostly in land or a company, and who have few liquid assets, may be better served by a flat annual retainer. Some firms will take on a defined project, such as a farm transition, for an hourly or fixed price. Commissions on insurance and annuities are a separate matter, because the seller is paid when you buy. Run the figures on $1.5 million: one percent is $15,000 a year, every year. That can be a fair price when the work includes a succession plan and real tax savings, and a poor one when all you get is a handful of index funds.

Questions to ask

1. What size household do you usually take on? Some firms set a minimum, and it is better to hear it early.
2. What is my yearly bill in dollars? Get it in writing, with fund costs included.
3. Do you act as a fiduciary every time you advise me? A written yes beats a verbal one.
4. Who is my contact after the first meeting? Ask to meet the person who will run your account day to day.
5. How do you work with my CPA and attorney? Good teams swap documents and deadlines without being asked.
6. Who has custody of my assets? An independent custodian with accounts in your name is standard.
7. Have you handled a farm transfer or a family business sale? Ask for a described case with details removed.

Checking credentials

Letters after a name tell you what someone studied, and nothing about how well they work. A CFP has been trained in planning, a CPA in accounting and tax, a CFA in security analysis and an attorney in law. Confirm each claim with the group that issues it. Then pull the firm’s Form ADV from the SEC site, run the name through FINRA BrokerCheck, and ask the Securities Division of the Indiana Secretary of State about state registration and any complaint history.

Giving through church, school and community

Hoosier families give heavily to churches, schools, hospitals and local foundations. A community foundation can hold a donor advised fund, accept gifts of land or stock and make grants for decades. Gifts of appreciated shares avoid the capital gain, and gifts of farmland to a charity can provide a deduction and relief from a taxable sale, though valuation and timing need an appraiser and an attorney. Indiana offers a state tax credit for gifts to certain qualified organizations, so ask your advisor whether any of your giving qualifies. Older donors can direct required withdrawals from an IRA straight to a charity.

Caring for parents while funding children

Households in their fifties often support both a parent and a young adult. Costs include assisted living or in-home help, a child’s tuition or first apartment and their own retirement saving, which can be squeezed. A plan puts numbers on each demand, decides how much help is sustainable and identifies benefits the parent may be missing, such as veterans benefits, Medicaid waiver programs or property tax deductions. Be careful about paying a parent’s bills from retirement accounts, because withdrawals are taxable and cannot be put back.

What to expect in the first year

Expect a document hunt first. Returns, brokerage and bank statements, insurance policies, LLC operating agreements, wills and loan papers all go to the firm, which turns them into one balance sheet. Within roughly three months you should hold a written assessment and a ranked list of changes. Moving accounts takes a few more weeks, and a careful advisor will not sell a holding with a large taxable gain until the tax effects are mapped. After that, plan on two meetings a year plus a call whenever the law or your life shifts. By the first anniversary, you should be able to name three specific things done for you.

Talking with heirs

Fights among siblings usually grow out of surprise rather than greed. Tell your children what the plan is while you can still explain it. If one child gets the farm and another gets cash or a brokerage account, say why. Pick an executor who is organized and calm. A meeting with the advisor and the attorney in the room gives everyone the same facts at the same time. Keep a letter of instruction that lists accounts, advisors and where papers are kept, and revise it each year.

When one stock holds your wealth

Long-service employees at Indiana’s large public companies sometimes find that 40 or 50 percent of their net worth sits in one ticker. A couple in Columbus, both retired from an engine maker, might hold shares bought through payroll plans over thirty years at very low cost basis. Selling all at once triggers a large tax bill, yet holding everything risks a bad year for the company. A wealth manager may suggest selling in yearly slices, gifting shares to a donor advised fund, using shares to fund charitable gifts and moving new money into a diversified mix. Each choice depends on the cost basis, the person’s tax bracket and the county rate, so run the numbers before selling.

Trusts and titling for Hoosier families

A revocable living trust can keep a home or farm out of probate and let a successor trustee step in if you become unable to manage affairs. An irrevocable trust may protect assets from creditors or help with long-term care eligibility, though it gives up control. Titling matters as much as the document: a trust that never received the deed does little. Indiana allows a transfer on death affidavit for real estate, which is a simpler alternative for some families. Ask an estate attorney which fits, because the right choice depends on the size of the estate, family structure and the kind of assets involved.

Frequently asked questions