HSGrove.com - CULTIVATING THE AFFLUENT - October 2007 Online Bonus Content

OCTOBER 2007 - ONLINE BONUS CONTENT


	Your Biggest Opportunities with Business Owners

The most reliable way to become wealthy is to own a business. In fact, in a recent survey of ultra-affluent individuals 76 percent attributed their wealth to owning all or part of a public or private business. But big money is usually accompanied by big complications; most business owners face a number of issues that prohibit them from realizing and maximizing their wealth. If you are the advisor that delivers - or takes part in the development of - a solution to these challenges you can benefit greatly.

Opportunity #2: Estate Planning


	While most business owners had estate plans, the majority had let the plans become severely outdated (Exhibit 2). The accuracy and effectiveness of an estate plan can be greatly impacted by a change in the tax code or a significant change in the client’s life. And when a plan won’t work as intended or no longer reflects a client’s desires, it’s worse than not having a plan at all. Given the nature of the regulatory environment and the frequency of milestone events, most private client attorneys believe estate plans are typically outdated in just three years. Three-quarters of business owners have plans that are almost twice as old, meaning a check-up with their primary advisor and an estate planning specialist is long overdue. Your Actions: 1. Identify the business owners in your client base with estate plans. 2. What is the age of the existing plans? 3. Do you know who drafted them? 4. Contact business owners with plans over three years old to discuss any changes in their personal and financial circumstances that may have an impact on their plan. 5. Encourage them to check-in with the attorney that drafted the plan and ask to be involved in the process. 6. Contact those that don't have plans to gauge their interest in estate planning. 7. If appropriate, schedule a meeting to discuss their goals and recommend a trusts & estates attorney that will keep you involved in the process.

Opportunity #3: Retirement Assets


	A good portion, 88 percent, of business owners offer retirement planning benefits to their employees but most feel there is room for improvement. When asked about their satisfaction level with their retirement provider and the overall offering, just 38 percent considered themselves very satisfied (Exhibit 3). This means that 63 percent are open to ideas about how their plan could operate more effectively and their investments could deliver better results. With an average of $12.7 million in each plan, you can capture more assets for your business with the delivery of a viable solution for business owners. Your Actions: 1. Identify the business owners in your client base with retirement plans. 2. Assess their level of satisfaction with the plan. 3. Ask specifically about their satisfaction with investment performance and employee participation levels. 4. Determine their willingness to consider investment-only opportunities versus total plan administration. 5. Ask them to discuss their top concerns and how they plan to address them. Approaching these subjects with business owners will demonstrate your understanding of their issues and your commitment to their well-being. Providing any solutions will certainly strengthen your relationship with them and increase their appreciation for your expertise - but involvement with business succession, estate planning and employee benefits can carry the opportunities for more products, more assets and more income.

HOW TO SUBSCRIBE
You can subscribe online or by contacting Steve Kimball at Charter Financial Publishing Network at 732-450-8866 x29.

The cost of an annual subscription is $245. Payment can be made by major credit card.

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Who Should Subscribe
Cultivating the Affluent is written for any type of advice professional at any stage in their career as long as they have ambitious personal and professional goals including:

• Fee-Based Planners
• Life Insurance Agents
• Registered Investment Advisors
• Wirehouse and Regional Brokers
• Property & Casualty Agents
• Independent Advisors
• Advanced Planning Specialists
• Private Bankers
• Portfolio Managers
• Investment Professionals
• Private Client Attorneys
• Trusts & Estates Attorneys
• Accountants
• Trust and Business Development Officers
• Tax Planners and Specialists

If you want to build your high-net-worth client base and earn more money, this is the publication for you. Cultivating the Affluent can also be a valuable resource for the managers and home-office personnel of distribution and advisory firms, and other professionals or institutions that rely on advisors for business such as asset managers and custodians.