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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.

According to Gary Stern at RIAIntel, Registered Investment Advisors (RIAs) spend their careers helping clients to achieve and maintain strong financial health. Yet many RIAs give little thought to protecting their own financial health through the creation and implementation of succession plans.

A range of factors is at play:

  • Many advisors are working well past retirement age — even into their 70s — and have no plans to retire
  • Other advisors feel that the informal succession plans they’ve created will suffice
  • Some advisors have given little thought to their own mortality, choosing to bury their heads in the proverbial sand

But when advisors become incapacitated suddenly, or pass away, a whole host of issues arrises. Clients wonder how to access their assets and financial plans — and find a new advisor whom they can trust. The advisor’s own financial future — and the future of his family and loved ones — is in jeopardy, too.

Since many advisors are at or above 52 years of age, and 40% of advisors are expected to retire within the next 10 years, experts recommend that advisors take steps sooner — not later — to protect their books’ values. “A seller’s market will turn into a buyer’s market,” cautions Marina Shtyrkov, a Boston-based research analyst at Cerulli. And that potential glut of financial practices saturating the market as more analysts retire will shrink the value.

One way to preserve a book’s value, protect valuable client assets and the analyst’s own best financial interests is for those analysts without a concrete succession plan to take steps to create one — admittedly a challenge for those solo practitioners outside larger cities or working in remote zip codes. But while a challenge, it just makes good financial sense to make the time to create and put that plan in place.

Article Excerpt:

#FASuccess Ep 164 with Julia Carlson on how transitioning out of a financial advisor role and adopting EOS helped give her time to focus on growing her...

TAG Advisory Services's Insight

This podcast features Julia Carlson, founder and CEO of Oregon-based Financial Freedom Wealth Management Group. She shares her personal experience of an unexpected life event that resulted in a quick transition from the firm’s lead advisor to its business owner instead. Carlson talks about the real-world challenges of trying to let go of the significant control over your own businesses when life throws a curveball.

Article Excerpt:

Valuation expert Carla McCabe said at the Investments and Wealth Institute conference Monday are overvaluing their...

TAG Advisory Services's Insight

Carla McCabe, valuation expert and vice president of Truelytics, says that advisors are robbing themselves of finding external buyers by demanding too much money for their book of business. She says the best succession plans result from 7 - 10 years of strategy and preparation — and regular updates as things change.

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