Posted on June 19, 2012 by thecomplexestate
It is difficult for clients to talk to their children about the family’s wealth. However changes in generational behavior and each generation’s own needs are bringing that conversation to the table as the new US Trust 2012 survey reveals.
We have all heard stories about having to take a parent out of their homes kicking and screaming in order better manage their health and safety. Then there are stories about disinherited children, picking so-called favorites and leaving more money to charity than to family members. The tides are shifting to more purposeful planning and the economic climate has a lot to do with it.
So much has impacted one’s net worth today. Just read the newspapers and you’ll see that people have lost over 40% of their net worth. The younger generation is not holding back in seeking advice on how to best plan for their future. They have a feeling that they will be left bearing the brunt of ill prepared parents and needy children.
Alternatively, boomers are not creating comprehensive plans. While they describe themselves as very private people, they believe that their wills are adequate for their planning needs. Has any one informed them that a will is a public document?
Advisors need to think about how they are communicating with their clients and prospects. There’s a lot more on the minds of the high net worth these days. Getting them to share some of what is keeping them up at night can open the door to endless possibilities.
We agree with a lot of the survey’s findings and would like to hear what you are experiencing when working with a high net worth client.
Filed under: advanced tax planning, High Net Worth | Tagged: Advanced Estate Planning, Cash Flow planning, high net worth, InKnowVision, Legacy Planning, philanthropy | Leave a Comment »
Posted on June 11, 2012 by thecomplexestate
It was revealed in the 2012 Affluent Investor Study (Investors with $500K or more in investable assets) that if you maintain a business and social relationship with your client, there is an 86.3% chance they’ll introduce you into their spheres of influence.
In recent article provided by Wealthmanagement.com, maximizing referrals and introductions to the affluent are gained by focusing on your connectors. We couldn’t agree more.
It goes on to mention, that only 16% of affluent clients gave 3 or more referrals or introductions over the past 12 months. Not exactly a great result.
So what is one to do when trying to build their “A” list of affluent clients? Focus on the process. Here are the first few steps in a list of 12.
- Develop your Ideal Client Profile.
- Select who to ask—the helpers, who trust you and have influence.
- Determine how best to ask—set the stage.
- Share your Ideal Client Profile.
Join us on Thursday at 11:00 am Central for our first of 4 InKnowVision Summer Marketing Bonus webinars.
Getting More “A” Clients with Guest Speaker Mark Sheer Register here
Filed under: Advanced Estate Planning | Tagged: Advanced Estate Planning, InKnowVision, Sphere of influence | Leave a Comment »
Posted on June 7, 2012 by thecomplexestate
How we help our high net worth clients plan is the difference between success and failure. In this recent case, the advisors successfully came to together with some help from the InKnowVision team to meet the goals and objectives of their high net worth client.
Case Facts and Goals
Duncan and Tina are both 65. They live a comfortable lifestyle, spending about $1,600,000 a year after taxes. Their annual income exceeds their spending. With assets worth approximately $62M and annual income of over $7M, they currently pay just over $2M a year in income taxes and have an increasing estate tax and ongoing income tax exposure.
The primary planning goals are to:
- Make sure that they have sufficient funds to live on for the rest of their lives (approx. $1,600,000/yr. after taxes and gifts).
- Assure that Duncan’s, Inc. does not have to be liquidated as a result of their death.
- Provide a successful transition of the business to their son, Jason, while ensuring an equal inheritance for their son, Jeremy. They would like to leave 50% of their estate to Jason & Jeremy and another 25% to their grandchildren and other family members.
- They wish to continue annual giving to their family foundation and ultimately leave 25% of their estate to the foundation at death.
- Make sure the company buy/sell agreement accurately reflects the wishes of the family owners in the most tax efficient manner possible.
- Eliminate or reduce estate taxes.
Learn how the case actually evolved by clicking the link.
Filed under: Advanced Estate Planning | Tagged: Advanced Estate Planning, advanced tax planning, charitable planning, InKnowVision | Leave a Comment »