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Because money is often a touchy subject, families who’ve accumulated wealth and built enterprises likely don’t spend enough time considering how to discuss money with their children. To further complicate the situation, older and younger generations often have different questions and concerns about their own financial futures. This disparity—and the challenge of clear communication between generations and each side seeing the other’s concerns, needs, and perspectives—often causes issues during the transition of a family business.

This article discusses when and how to have these conversations, recommending planning a series of conversations, each with a different focus, in an environment where all parties feel comfortable sharing their perceptions and questions.

At TAG, we are often asked to advise on Transgenerational Wealth management, including Trust and Estate Planning and other wealth transfer strategies to directly benefit their grandchildren. Some clients are looking for ways...

Empower Them to Adopt a Healthy Philosophy About Wealth

Paul Getty once said, “My wealth is not a subject I relish discussing.” He’s likely not the only one! Talking about money is a conversation that requires a delicate balance and some strategy. Affluent parents, leery of creating entitled children, may hesitate to talk about the details and nuances of their wealth. But keeping too many secrets can cause...

To improve America’s poor Infrastructure score, the current administration’s proposed infrastructure bill has garnered support. It recommends committing and investing over $2 trillion to improve the country’s infrastructure—like roadways, bridges, and public transportation—through the next eight years. Some experts suggest investors would also benefit from investing in the infrastructure. First, the plan will expand well beyond the initial infrastructure components to include other elements like potable water, education, broadband, and communication networks. Second, infrastructure asset owners/operators have offered reasonable yields some investors may like, considering 10-year U.S. Treasury bonds currently generate a paltry 2%. Learn more by reading the article.

The US loses about 6 billion gallons of treated water a day—enough to fill more than 9,000 swimming pools. And somewhere nationwide, a water main break occurs every two minutes—that’s 770 breaks per day. The country’s infrastructure—from aviation and bridges to broadband and energy to hazardous waste and levees and more—needs serious attention. The American Society of Civil Engineers’ Report Card for America’s Infrastructure, published every four years, details the condition of America’s infrastructure based on physical conditions of each category, and required investments for improvement. Let’s take a look at just one state, Massachusetts: of its 5,233 bridges, 9% were deemed structurally deficient just two years ago; the state will accrue $12.2 billion in drinking water infrastructure needs over the next 20 years, and the average motorist pays about $640 extra per year due to the effects of driving on bad roads, 25% of which are in need of repair.  Read the report to learn more.

According to a 2018 UBS Investor Watch global survey, 81% of respondents want to align consumer spending patterns with their values. About 39% have sustainable investments, and 86% felt sustainable investment strategies encourage companies to implement better business practices. Of those surveyed, 82% felt good investing in sustainable companies which they believed to be more forward-thinking and better managed.

 As a result, some of the worlds’ largest institutions, individual investors and asset managers are taking a closer look at sustainable investing. This investment approach incorporates environmental, social, and governance (ESG) criteria into investment decisions. A 2019 UBS survey found 48% of respondents have already applied ESG in anticipation of a positive impact on financial importance. Read the article to learn more.

Imagine if your child came home with a report card full of Cs and Ds. You might be a little concerned! But that’s exactly what our country’s infrastructure has “earned.” A new bill moving through Congress has, if passed, earmarked trillions of dollars to shore up this infrastructure which could present a range of opportunities for investors. Improvements and repairs in areas such as roads, dams, bridges, broadband and water, means companies directly or indirectly involved in these areas...

Many people think they need to be a millionaire to hire a financial advisor. Guess what. You don’t necessarily have to! 

Few people wake up one morning and think, “Hmm. I should hire a financial advisor.” It’s often a life event—like a new job, marriage, the birth of a child, an inheritance—that propels them to seek advice. 

It might feel counterintuitive to think...

While most advisors recognize the value of developing and implementing a business continuity and succession plan, fewer than 30% of advisors have a formally documented plan in place and the regulators are starting to take notice.

It’s akin to the plumber’s own pipes leaking — or the shoemaker’s kids going barefoot. Just as sticking buckets under the leaks or telling the kids to wear flip flops isn’t a viable long-term solution, neither is ignoring the inevitable time when you’re...

Financial advisors help their clients plan for the near- and long-term future. And yet many of these same advisors — one study suggests 60% of advisors within five years of retirement — have not taken time to create succession plans for their own business. Gary Campbell at Forbes thinks it’s likely that many of these advisors have similar reasons for delaying creating succession plans as their clients offer for waiting to get serious about their own financial plans.

Many experts caution that waiting too long to develop and execute a succession plan can delay an advisor’s exit strategy for years. It’s recommended that advisors begin planning early — as much as 5 to 10 years in advance of retirement — to avoid some of the main reasons why succession plans fail.

  • Unrealistic expectations for a business valuation
    Advisors may be unfamiliar with all the factors that contribute to calculating their business’s value. Conducting valuation in plenty of time gives advisors an opportunity to strategize and implement changes to increase the value.
  • Not finding a good match
    Advisors want to align with a successor with similar values. Finding that successor who will nurture and care for clients equally well takes time.
  • Inadequate successor mentoring
    Advisors who leave their businesses to younger, less experienced successors must prioritize mentoring. It takes time to teach a successor how to lead, delegate, make decisions, and resolve conflicts.
  • Not integrating successors soon enough
    Experts recommend starting the integration practice months — if not a few years — before actively retiring. This slow transition helps advisors’ successors to understand the brand, processes, teams, and clients.
  • Not accounting for what-if scenarios
    Advisors encourage their clients to plan for the unexpected — unforeseen health issues or market fluctuations. It’s only logical for advisors to incorporate those scenarios into their own succession planning, too.
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