Frequently Asked Questions

Below are some of the questions we hear most frequently from prospective clients. If you have a question that is not addressed here or would prefer to ask us personally, don't hesitate to contact us directly. We're always here to help. Simply expand the category titles below to view all of the questions listed within that category.

+ Understanding Wealth Management

What is wealth management?

Wealth management is a consultative process establishing close and trusted relationships with high net worth clients to sustain and grow long-term wealth. Wealth advisors offer customized solutions designed to fit the specific needs of each individual, non-profit or business. The wealth manager works in close consultation with clients and their other advisors, such as their CPAs, estate planning attorneys, and insurance providers, on an ongoing basis to identify their specific needs and design custom solutions.

What is the difference between financial planning and wealth management?

Financial planning is the development of a plan for evaluating a client's current financial situation, identifying areas of need, and planning for future life events. Wealth management is a comprehensive approach that focuses specifically on higher net worth individuals, including advice on investment management, estate planning, asset protection, and private banking. You will find experienced Certified Financial Planners at Enterprise Wealth Management, as well as our broker partner, Enterprise Wealth Services.

+ Wealth Management Terms

Below are some commonly used wealth management terms that you may find helpful.

A | B | C | D | E | F | I | L | M | P | R | S | T | V

529 Plan

A tax-advantaged education savings plan operated by a state or educational institution. These plans are categorized as either prepaid or savings, and each has separate characteristics.

401(k) Plan

A profit sharing plan that allows employees to reduce their taxable income by investing a portion of their pre-tax income, which is often matched by the employer. Earnings compound tax free and employee contributions are excluded from federal income tax for the year in which they are contributed. These tax benefits do not extend to withdrawals.

403(b) Plan

A salary reduction plan for employees of nonprofit organizations and government entities such as schools, hospitals, and educational organizations. Similar to the operation of a 401(k), contributions and earnings are tax-deferred until the money is withdrawn from the plan.

Aggressive Growth Fund

A mutual fund that primarily provides capital gains, often by investing in more volatile stocks, instead of current dividend income.

Annual Report

A report required by the Securities and Exchange Commission (SEC) of any company issuing registered stock, that describes a company's management, operations, and financial reports. Annual reports are sent to shareholders, and must also be available for public review.


A contract, usually with an insurance company, for guaranteed periodic payments for life or for a predetermined number of years.


The amount an asset grows or increases in value.


Any item that may be sold or exchanged by its owner for a value.

Asset Allocation

A method of allocating funds to pursue the highest potential return at a specific level of risk. Asset allocation normally uses sophisticated mathematical analysis of the historical performance of asset classes to attempt to project future risk and return. Asset allocation is an approach to help manage investment risk. It does not guarantee against investment loss.

Asset Class

A specific category of investments that share similar characteristics and tend to behave similarly in the marketplace.


An examination of the accounting and financial documents of an organization by an independent accountant for accuracy, consistency, and adherence to legal and accounting principles.

Balance Sheet

A detailed statement of the assets and liabilities of an individual, family or business organization at a given moment in time.

Balanced Mutual Fund

A mutual fund offered by an investment company which attempts to hold a balance of stocks and bonds. Mutual funds are subject to fluctuation in value and market risk. Shares, when redeemed, may be worth more or less than their original cost. Mutual funds are sold only by prospectus. Individuals are encouraged to consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.


The person or entity who will receive benefits from a life insurance policy, qualified retirement plan, annuity, trust, or will upon the death of an individual.


A long-term debt instrument issued by a corporation or government entity evidencing the issuer's promise to repay interest at a guaranteed rate on a specified maturity date.

  • Short-term Bond - A bond maturing in less than three years from the date of issue.
  • Mid-term Bond - A bond maturing in three to ten years from the date of issue.
  • Long-term Bond - A bond maturing in ten or more years from the date of issue.


A person or firm registered with the Securities and Exchange Commission to buy and sell securities.

Capital Asset

An economic resource that is owned or controlled by an entity or person. Some examples include cash, securities and real estate.

Capital Gain (or Loss)

The difference between the price at which an asset was purchased and the price for which it was sold. When the sale price is higher than the purchase price, the difference is a capital gain; when the sale price is lower than the purchase price, the difference is a capital loss.

Certificate of Deposit (CD)

A deposit with a bank, thrift institution, or credit union that promises a fixed interest rate on funds deposited for a specified period of time. Bank savings accounts and CDs are FDIC insured up to $250,000 per depositor per institution and generally provide a fixed rate of return, whereas the value of money market mutual funds can fluctuate.

Certified Financial PlannerĀ® (CFP)

Awarded by the Certified Financial Planner Board of Standards, this designation is characterized by the CFP board as a license. Candidates must pass a comprehensive 10-hour examination testing the candidate's knowledge of financial planning, investments, estate planning, tax and retirement planning, and ethics. Preparation for the examination is via five or more educational courses under a curriculum approved by the CFP Board and offered at more than 100 institutions throughout the United States. Candidates must have three years financial planning experience plus an undergraduate degree to qualify for the award of the license (five years without a degree). CFP licensees are required to renew their license every two years through the completion of 60 hours of continuing education.

Certified Public Accountant (CPA)

Awarded by the 54 U.S. state and territorial boards of accountancy upon the successful completion of four separately scored examinations covering auditing, business law, accounting and reporting on business enterprises, and accounting practices for taxation, managerial, government and nonprofit organizations. CPAs must meet individual state standards for continuing professional education every two years.

Certified Trust & Financial Advisor (CTFA)

A professional credential offered by the American Bankers Association for financial professionals. This mark provides training and knowledge in taxes, investments, financial planning, trusts and estates.

Charitable Lead Trust

A trust established for the benefit of a charitable organization under which the charitable organization receives payment of a specified amount (at least annually) from the trust. On the death of the grantor, remainder interest in the trust passes to his or her heirs. Using a trust involves a complex set of tax rules and regulations. Before moving forward with any trust, we collaborate with your attorney and/or tax advisors to determine if it is line with your financial goals and overall wealth plan.

Charitable Remainder Trust

A trust established for the benefit of a charitable organization under which the grantor can designate an income beneficiary to receive payment of a specified amount, at least annually, from the trust. The grantor may also be the income beneficiary. On the death of the grantor, remainder interest in the trust passes to the charitable organization. Using a trust involves a complex set of tax rules and regulations. Before moving forward with any trust, we collaborate with your attorney and/or tax advisors to determine if it is line with your financial goals and overall wealth plan.

Chartered Financial Analyst (CFA)

Awarded by the Association for Investment Management Research, this technical designation is designed for investment professionals to support the skills required for portfolio management and investment analysis. Candidates for the charter must pass three levels of examination (one exam may be taken per year). Preparation is via self-study of a body of knowledge published by AIMR and includes financial statement analysis, securities regulations, ethics, capital markets, asset allocation, and application of theoretical concepts. Candidates must accrue three years of related experience and establish AIMR membership prior to award of the charter. AIMR does not mandate continuing professional education for maintenance of the CFA charter.

Chartered Financial Consultant (ChFC)

Awarded by The American College, this designation is based on the completion of eight graduate level courses offered by the College. Candidates qualify sequentially through separate post-course examinations. Courses, five of which are approved by the CFP Board as preparation for the CFP license, include financial planning, investments, estate planning, tax and retirement planning. Candidates must have two years related business experience plus an undergraduate degree to qualify for award of the ChFC (three years without a degree). Designees who matriculated after June 30, 1989 must renew their designation every two years with the completion of 30 hours of continuing education (designees who began their ChFC studies prior to the 1989 deadline may not be required to prove their attendance at continuing education programs).

Custodial Account

An account established in a bank, brokerage firm, or mutual fund on behalf of another, particularly an account established by a parent for a child.


The practice of accounting as a non-cash expense the cost of an asset over time, even though the asset may, in fact, be appreciating in value.


A payment made from corporate net profits to shareholders, on the vote of the board of directors. Common share dividends usually fluctuate according to profit levels; preferred shares usually pay fixed dividends.

Dividend Reinvestment

In lieu of receiving a cash dividend, dividend reinvestment allows investors to use their dividends to purchase additional shares of the same stock or mutual fund.


The market value of property or a business, less liens and other claims against it; the owner's interest in an asset.

Estate Administrator

The person or institution appointed by the court to distribute the estate of a decedent when there is no will or when the will fails to name an appropriate executor/personal representative.

Estate Planning

The preparations necessary to manage a person's financial and healthcare matters during his or her lifetime and to effectively and economically distribute the assets within that estate upon his or her death.

Estate Tax

Federal and/or state taxes that may be levied on the assets of a deceased person upon his or her death. These taxes are paid by the deceased person's estate rather than his or her heirs.

Executor/Personal Representative

The person named by will to carry out the wishes of the decedent.

Financial and Wealth Planning

A process of money management that may include any or all of several strategies, including budgeting, tax planning, insurance, retirement and estate planning, and investment strategies. In effective financial planning, all elements are coordinated with the aim of building, protecting, and maximizing net worth.

Individual Retirement Account (IRA)

A retirement savings program that allows certain individuals to make tax-deductible contributions up to a specified limit each year; earnings are not taxed until the funds are withdrawn, usually during retirement.

Irrevocable Trust

A trust in which the grantor gives away all rights of ownership and that may not be revoked.


The ability to easily exchange an asset for cash; generally an asset is considered liquid if it can be converted to cash in 30 days or less.

Liquid Asset

An asset that can be easily and quickly converted to purchasing power without loss of value.

Living Trust

A trust created by a living person which allows that person to control the assets he or she contributes to the trust during his or her lifetime and to direct their disposition upon his or her death.

Lump-Sum Distribution

The one-time disbursement of the complete proceeds of a profit sharing or pension plan, an annuity, or similar account.

Market Capitalization (Large-Cap, Mid-Cap Small-Cap)

The total value of the tradable shares of a publicly traded company; it is equal to the share price times the number of shares outstanding. As outstanding stock is bought and sold in public markets, capitalization could be used as a proxy for the public opinion of a company's net worth and is a determining factor in some forms of stock valuation.

  • Large-Cap: Greater than $10 billion
  • Mid-Cap: $5 - $10 billion
  • Small-Cap: Less than $5 billion


The date on which a debt instrument, such as a loan or bond, becomes due and payable.

Money Market

The market that exists for short-term debt instruments such as negotiable certificates of deposit (CDs), commercial paper, banker's acceptances, Treasury bills (T-bills), and other short-term instruments characterized by safety and liquidity.

Money Market Fund

A mutual fund that invests in short-term debt instruments.

Municipal Bond

A long-term promissory note issued by a state or local government. Usually, interest is exempt from federal income tax and state tax within the state where the bond is issued.

Mutual Fund

A fund created by a management company in which the money of many individual investors is pooled to purchase a diversified portfolio of securities.


A group of investments held by an individual or an institution. A portfolio implies holdings of more than one stock, bond, commodity, or real estate investment for the purpose of diversification.

Revocable Trust

A trust that can be altered or canceled by its grantor. During the life of the trust, any income earned is distributed to the grantor; upon the grantor's death, the contents of the trust are transferred to its beneficiaries according to the terms of the trust.


The ability to move funds from one investment vehicle to another similar vehicle without incurring a gain or loss; usually refers to the transfer of retirement funds from a qualified retirement plan into a rollover IRA or to the gains from the sale of a principal residence that are used to purchase a new home.

Roth IRA

An individual retirement account in which a person can set aside after-tax income up to a specified amount each year. Once invested for 5 years, contributions and earnings on the account are tax-free. In addition, there is no mandatory withdrawal - like with a traditional IRA.

Spousal IRA

An individual retirement arrangement under which an IRA is established for a non-working spouse and is funded with contributions from the working spouse. Spousal and non-spousal IRAs are subject to combined annual contribution limits and must meet certain requirements.


An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation's assets and profits. Ownership in the company is determined by the number of shares a person owns divided by the total number of shares outstanding.

Tax-Deferred Investment

An investment whose earnings are not taxable until they begin to be withdrawn.

Treasury Bill

A short-term U.S. government paper sold in minimum denominations of $10,000 at auction through the Federal Reserve Banks; maturities range from 13 to 52 weeks.

Treasury Note

U.S. Government paper with a maturity of not less than one year and not more than 10 years; issued in denominations of $1,000 and $5,000.


A legal arrangement that creates a separate entity which can own property and is managed for the benefit of a beneficiary. A living trust is created while its grantor is still alive. A testamentary trust is created upon the grantor's death - usually by another trust or by a will. Using a trust involves a complex set of tax rules and regulations. Before moving forward with any trust, we collaborate with your attorney and/or tax advisors to determine if it is line with your financial goals and overall wealth plan.


An individual, corporation, or other entity that manages property held in a trust.

Variable Annuity

A contract with the insurance company and the purchaser (or annuitant). Earnings accumulate tax-deferred and are based on the performance of the sub-accounts selected by the owner.

+ Why Enterprise Wealth Management?

What is the mission of Enterprise Wealth Management?

Enterprise Wealth Management offers our clients peace of mind and security as we help build, manage, and preserve their wealth through client-centered, comprehensive services for high net worth individuals, businesses, and non-profit institutions. Our team of highly qualified and seasoned wealth management professionals provide local access to world-class research and investments, holding themselves to the highest fiduciary standards. We put our clients' interests before our own, adhering to the founding principles of Enterprise Bank, a true community bank that measures success not by transactions, but by our relationships with our customers and the positive impact we make in their lives and in our communities.

Why choose Enterprise Wealth Management?

At Enterprise Wealth Management, we understand that there is no single, cookie-cutter approach to managing wealth. Whether you're an experienced investor or new to wealth management, we meet you where you are with solutions tailored for your needs, advisors who work in your best interest, and access to the most experienced investment managers. We offer something very special:

  • Our Trust: As a division of Enterprise Bank, we were founded on trust. As a trust company, unlike a broker or agent, we do not sell products and do not generate sales commissions based on our business relationships. Our trust company is a corporate fiduciary and has a legal obligation to put our client's interest above our own. This structure allows us to manage your assets without any undue influence of product quotas or commissions on specific products.
  • Our Commitment to the Client: Enterprise Wealth Management's philosophy is deeply rooted in the tradition of providing personalized investment services to each client. Our mission is to design and maintain portfolios that provide the income, growth potential, and risk tolerances that match our clients' comfort levels and exceed their financial expectations.
  • Our Team: At Enterprise Wealth Management we believe high-quality service begins with a well-trained, diverse staff. Our team consists of professionals adept in a number of financial and investment disciplines. Our staff of professionals has been managing investment portfolios for nearly 20 years.
  • Our Experience: Our staff is comprised of seasoned professionals with experience in the fields of banking, trust and investment services. We are recognized in our field as leaders in estate planning, employee benefits, trust administration and portfolio management.
  • Our Objectivity: At Enterprise Wealth Management our investment philosophy includes an open architecture approach to investing your funds. An open architecture system adapts to your needs, rather than forcing you to adopt the limitations of the financial institution. Our process of investment analysis results in a portfolio that includes the most suitable investments based on your goals.
  • Our Discipline: In delivering investment management services, our goal is to provide clients with a comprehensive personalized investment program that considers sound economic financial principles and adheres to the Prudent Investor Rule. Our decision-making process will focus principally on long-term investment results within the confines of our client's risk tolerance.
  • Our Independence: As a locally based financial institution, our overriding mission is to serve the financial needs of each client. Successful completion of our mission supports the communities we serve and ultimately enhances shareholder value.

What types of clients do you serve?

Enterprise Wealth Management provides long-term guidance and advice to high net worth individuals, non-profits and businesses.

Do you have a minimum investment portfolio?

We are full-service wealth management firm, able to serve you wherever you are in your journey. Enterprise Wealth Management does not have a strictly defined asset minimum for new clients, but our brokerage partner, Enterprise Wealth Services typically caters to clients with liquid investable assets of $25,000 to $500,000, while Enterprise Wealth Management typically services those with $500,000 or greater. During our initial meeting, we will get to know your current position and future goals to make sure we are a good fit to take you where you want to be, regardless of account size.

What is the difference between Enterprise Wealth Management and Enterprise Wealth Services?

Both Enterprise Wealth Management and Enterprise Wealth Services are divisions of Enterprise Bank. Enterprise Wealth Management provides advice and guidance to higher net worth individuals, including investments and trusts, as well as non-profit organizations and businesses. Enterprise Wealth Services provides investment products and advisory services to individual clients and institutional investors; their focus is on brokerage services, including investments, insurance, 529 college plans, and 401(k) services.

How are you compensated?

Our Relationship Managers are compensated through the bank's annual incentive program. They are not paid commissions or trail fees, nor do they receive any other form of compensation from third-party vendors. All of our fees are fully disclosed in a simple and understandable manner. There are no hidden fees at Enterprise Wealth Management. None.

Will you work with my other professional contacts?

Absolutely. Working with your professional team is critical to the success of your wealth management strategy. Our clients consider us the quarterback of their financial team, watching that the various components of your financial health are working cohesively.

How do I get started?

We make it easy. Send us an inquiry or call us at 877-325-3778 to set up a free financial consultation so we can learn more about each other. We can review where you are now and show you what you're doing well and where you might be able to improve. And you can decide if we're the best fit to get you where you want to go.

+ Investments

Who makes investment decisions and what role does my Advisor play?

All assets are managed by our Investment Committee, with support from our research partners. Your Advisor will help you manage your money and sync your finances with your life and stated goals. Your Advisor is also responsible for communicating all aspects of our service to you in the method and frequency you desire.

What resources does Enterprise Wealth Management have in making investment decisions?

The best opportunity for world-class investment management is to use world-class managers. That's why Enterprise Wealth Management taps into the resources of the world's leading asset researchers, including Northern Trust, Goldman Sachs, and Credit Suisse. Armed with this wealth of information, our team can deliver comprehensive solutions to navigate even the most difficult market environments.

What is your investment management philosophy?

We believe in rigorous investment discipline, regardless of the economic winds, favoring prudent investing for long-term performance.

How often will you review my portfolio?

We review portfolios on at least a quarterly basis. Certain events may trigger more frequent internal reviews, including portfolio re-balancing, tax-loss harvesting, and specific investment changes.

Why is asset allocation important in investing?

The asset allocation decision, or how a portfolio's investments are divided among different asset classes, has the largest impact on overall performance of your account. Asset allocation has a more significant impact on performance returns than industry weighting, stock selection, market timing or any other portfolio management decision.

How often should I change my asset allocation?

Your asset allocation should reflect your current investment objective. An investment mix that suited you when you began investing may not be appropriate today. Your investment plan is a long-term investment commitment, but changes in your personal, professional, and financial life may create a need for change to your investment mix.

Why should I diversify my portfolio?

The goal of diversification is to protect the value of your overall portfolio against a decline of price in a single security and/or a market sector downturn. Diversification cannot eliminate the risk of fluctuating prices but it can reduce overall portfolio volatility. When a portfolio is diversified, investable dollars spread across different asset classes or types of securities, the different investment alternatives tend to counterbalance one another and help reduce risk.

+ Trusts

What is a trust?

A trust agreement is a document that spells out the rules that must be followed for property held in trust for your beneficiaries. Common objectives for trusts are to reduce the estate tax liability, to protect property in your estate, and to avoid probate.

A trust involves three parties:

Trustmaker - The person who creates the trust agreement, also commonly referred to as the Grantor, Trustor or Settlor.

Trustee - The person or entity responsible for managing the property that the Trustmaker decides to title in the name of the trust.

Beneficiary - The person or entity who is to receive the benefits of the property that is titled in the name of the trust.

Should I set up a trust?

Setting up a trust is an excellent way to control the right to determine what happens to your assets and the right to protect them from unnecessary estate taxes and from the aggravation of probate.

Some common reasons for setting up a trust include:

  • Providing for minor children or family members who are inexperienced or unable to handle financial matters
  • Providing for management of personal assets should you become unable to handle them yourself
  • Avoiding probate and immediately transferring assets to beneficiaries upon death
  • Reducing estate taxes and providing liquid assets to help pay for them
  • Maintaining privacy, as the terms of a will are public while the terms of a trust are not

Business owners can use trusts to save on estate taxes when passing along businesses to heirs.

What are specific benefits of setting up a trust?

  • Control of your wealth. You can specify the terms of a trust precisely, controlling when and to whom distributions may be made. You may also, for example, set up a revocable trust so that the trust assets remain accessible to you during your lifetime while designating to whom the remaining assets will pass thereafter, even when there are complex situations such as children from more than one marriage.
  • Protection of your legacy. A properly constructed trust can help protect your estate from your heirs' creditors or from beneficiaries who may not be adept at money management.
  • Privacy and probate savings. Probate is a matter of public record; a trust may allow assets to pass outside of probate and remain private, in addition to possibly reducing the amount lost to court fees and taxes in the process.

What is the difference between a will and a trust?

A big advantage of a trust is that it is generally a safe strategy to avoid probate and protect financial privacy. Wills must be validated by probate court, a lengthy and expensive process that can take six months to two years and, in some cases, even longer. Probating a will may involve attorney's fees, executor/personal representative's commissions, administrative and other court costs. Unlike wills, trusts are not subject to probate and therefore enable you to keep your affairs private and minimize settlement costs and estate taxes.

Why choose Enterprise Wealth Management as my trustee?

Many people prefer to name an independent trust company to handle their affairs. Trustees who don't deal with trusts on a regular basis can be overwhelmed by the duties required of them. Naming an independent trust company also removes the emotional element often associated with friends or family members. You can count on the professionals at Enterprise Wealth Management to conscientiously administer your trust according to your intentions. We have expertise in administering a wide range of sophisticated trusts to help families achieve their wealth management and wealth transfer goals.

+ Non-Profits & Businesses

What is an investment policy statement?

An investment policy statement (IPS) works as both a blueprint and report card, guiding a business or non-profit in effectively supervising, monitoring and evaluating the management of their assets. The IPS helps to clearly communicate to all relevant parties the procedures, investment philosophy, guidelines and constraints to be adhered to by the parties.

Can you help us build an investment policy statement?

Absolutely. Since investment policy statements are as varied as the organizations they serve, there is no one-size-fits-all solution. Your Enterprise Wealth Management team will help you build an investment policy statement that will meet your needs, now and in the future.

Do you specialize in institutional clients?

Yes, we do. We build enduring relationships with the non-profit organizations and businesses we serve as we help you strengthen your financial position and respond to new challenges and opportunities.

How often will my Advisor present to my boards or investment committee?

Your Advisor will be ready and available to present as often as needed.

Start the conversation about your financial future.