The Essence of Bhagavad Geeta: The Art of Self Realization

 

Growing the Financial Planning Practice: Cracking the Code. 

By: Mahendra S. Rathore. MBA BA (Hons) CFP CRPC ChFC

 Today’s Dynamic: Focus on Achieving Exponential Financial Planning Practice Growth.

We see that most successful business owners today are not getting the financial advice they’ll need to achieve their biggest, most meaningful goals. Many of the prospective clients aren’t getting the advice, insights, and solutions they need from their current advisors. That’s because most professional advisors who work with successful entrepreneurs do not provide the wealth management strategies and products that can maximize these people’s Long-term financial wellbeing. You have a distinct value proposition to make by delivering prudent wealthy-strategies suitable for the super-rich and by ultra-wealthy business owners for growing their wealth, minimizing the taxes they pay on their wealth, transferring the wealth as they see it fit and protecting their wealth from being taken from them unjustly.

Understanding Priorities:

Moving beyond a desire for becoming wealthy for the sake of being wealthier, several reasons that motivate accomplished business owners to create and nurture personal fortunes.

·        Taking care of loved ones

·        Being meaningful more supportive of the charitable cause

·        Changing the world for better

·        Make positive contributions to the society.

It is highly likely that the financial professional with whom wealthy client currently works are not equipped to give them those kinds of tailored solutions they seek. These clients deserve to maximize the probability that where the Advisors can help clients on the true path to acquire, grow, protect and tax -efficiently pass on wealth and guide such clients every step of the way.

Where’s the need for Financial Planning?

Financial planning is the skillful leveraging of legal, regulatory, and financial expertise to enhance client’s wealth and financial wellbeing. The objective and benefits of advance financial planning are indisputable. The planners can help in many ways to legitimately capitalize on the tax code and legal system, protecting and enhancing sophisticated estate and charitable planning.  

Advisors need to work proactively with Financial Planning tools, strategies and matching products to help clients with substantial assets to build and maximize their personal wealth. However, holistic planning strategies require a team of right specialized expert working in close and ongoing collaboration with each other to build the optimal solutions, implement correctly and monitor them regularly to ensure the clients are achieving the desired results. Financial advisors who do not have the relationship with the right teams of experts find it difficult, if not impossible, to implement Super Rich Solutions – so they simply ignore them when making recommendations to their clients.

Adopting a Consultative Approach:

 Successful financial advisors are those who have the team of experts in their circle of influence. Further, they can work collaboratively with a team of specialists to deliver the full range of investments as well as advanced financial and legal solutions crucial to effective wealth management. As one person no matter however smart, hard-working advisor-possess, the expertise needed to address the myriad complex financial issues that many successful business owners and/or various other clients with varied needs face can’t be fulfilled without leveraging the expertise, skills, and resources of a team of experts.

Collaboration & Agility is the Key:

By being consultative Financial Advisor can you can hone-up your approach to be truly client-centric and focus your skills & resources in understanding the varied needs and priorities of each successful business owner client. A Financial Advisors true success depends on developing and implementing customized solutions to meet their client's diverse needs, goals & Priorities. Financial planning and Wealth Management is a consultative process of meeting the needs, wants and preferences of successful business owners by skillfully providing the most appropriate financial and related solutions.

The success of the practice entails coordinating a team of talented specialists to address the diverse needs, wants and priorities of clients. Thus, there are there components: Wealth Management, Investment Consulting and Advance planning and above all, Relationship Management. Financial Planning and Wealth Management are intensely client-centric. Therefore, Relationship Management also entails assembling and managing a network of financial, accounting, estate planning and legal specialists who are ideally suited to address your client’s entire spectrum of financial situations as a successful business owner and then building and cementing deeper understanding of clients most critical needs, values, goals, preferences, challenges, concerns and dreams.

Delivering Holistic Solutions:

Wealth Management includes providing services as Investment specialists, Life Insurance providers, Trusts & Estate attorneys, Administrative and CPA’s and tax professional, Asset Protection authorities and Retirement planning specialists. The relationship management also entails assembling and managing a network of financial and operations specialists who enable the financial planner to identify opportunities and potential high-impact comprehensive solutions to deliver ongoing optimal solutions and more specifically in variable annuities and Life Insurance solutions.

In this regard, Private placement Life insurance (PPLI) and private placement variable annuities (PPVA) help clients mitigate the tax bite from a variety of different types of investments. PPLI and PPVA’s make it possible to capture returns tax-free. Further, these investment options can be tailored to your client's needs as successful entrepreneurs or business owners besides, the cost of insurance per dollar of coverage is significantly reduced.

Moving Beyond the simple Answers- Finding a Niche:

Qualified retirement plans, and Defined Contributions Plan and Defined Benefits can be greatly beneficial for your clients. The Defined Benefits (DB) plans can potentially be very economically rewarding. And Non-qualified (NQ) retirement plans may be an even better approach as you seek to help your small and mid-size business owners maximize their personal wealth and achieve all that is truly important to your clients.

High-quality estate planning solutions for transferring wealth to family and loved ones helps to minimize the state and federal estate tax bite and enable maximum planning for the future of the family. Such as freezing the value of the business for estate tax purposes and most tax efficiently transfer wealth to loved ones. Similarly, the Life insurance can play an integral role when the time comes to pay significant estate taxes. You can use premium- financed Life Insurance Policy and integrate it into a business owner’s larger financial situation to achieve their key business objectives & goals.

Protecting wealth and Asset protection planning is a highly specialized field. There are a wide array of financial planning and wealth building strategies and products. Equity stripping- where your clients can protect their assets from unjust and frivolous lawsuits by using bank loans to strip out the equity. Equity stripping is most effective asset protection strategy but often underused wealth-building strategies that may well be used by Financial Advisors for their clients.

Assets & Human Life Protections Strategies:

Captive insurance companies are often yet another great asset protection solution for wealthy clients. Business owners could benefit by design of a customized P&C insurance coverage for their business. This strategy can enable business owners to gain greater control over the cost of insurance and improve claims handling and improve Cash Flows.

Captive Insurance is a closely held insurance company set to ensure the risks of the parent company. The owner of parent company wholly owns the captive insurance company- including underwriting, claims decisions and the investment policy. Thus, business owners can create their own customized P&C solution while receiving full tax benefits and no longer being completely subject to the decision of the larger insurance companies. Clients can manage their business risks in a much more systematic, tax efficient and potentially profitable way than they could possibly achieve through traditional insurance providers. Some of the key benefits include lower insurance costs, favorable tax treatment, an incentive to control losses, have coverage for otherwise uninsurable risks in the retail market, and opportunity to reinsurance. The business owners can get to profit from premiums he or she otherwise would have had to pay to traditional insurance companies.

Serving for a greater cause- Charity and Estate Planning:

The advisor can help their clients with tax-wise charitable planning. By making significant intervivos and or at death financial or estate plan tax efficiently. A primary reason for establishing a revocable intervivos trust is to avoid a probate of one's estate upon one's death. To the extent that one’s property is held in one’s trust, then those trust assets will not be subject to probate upon one’s death. There are many ways to make charitable gifts but some of the most common strategies are Will, bequest, Charitable Gift Annuity, Private foundations and Donor-advised funds. All these strategies would empower clients with control, expenses, family involvement and thereby creating an enduring legacy. Private foundations give the donor complete control and flexibility in other ways.

How can you open the Door? Offering a Unique Value Proposition:

The bottom line though is that there are niche markets and more particularly in “HNW” individuals and business owners and medical practitioners where you can bring tremendous value to currently unexploited and underserved high-end client’s markets. You can take client relationships to the next level by embracing a broad-based approach to Financial planning. It is never too late to prospect and build High Net worth clients base by having meaningful deeper conversations. 

You can provide them with comprehensive financial planning solutions and thereby penetrate such fast-growing niche market segments and build the enduringly successful practice. With the flagship Products and Services backed blended with the reservoir of deep expertise, extensive research, and planning tools. Using the financial planning tools and support, you can help your clients with the wealth management, investment management, tax environment, retirement planning, estate planning & Life Protections solutions thus, empowering our clients and their families pursue financial peace and achieve their financial life dreams. As the Walt Disney has said, “Do what you do so well that they will want to see it again and bring their friends".