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How One Advisor Is Ahead of the Game After Retiring with TAG 2.0

We invite you to watch a video interview featuring Larry Faretta and Eric Majka, the latest successful TAG TEAM at TAG 2.0, moderated by TAG 2.0 National Sales Manager John Cadigan. Here are the highlights:

Successful longtime financial advisor Larry Faretta recently began thinking about transitioning his practice into retirement. As he said, “Age was probably the most dominant factor and motivator — the inescapable movement of the clock. It was time to start looking out for my clients and developing a succession plan that made sense.” When clients began asking “What happens to me if something happens to you,” Larry knew he had to have a good answer.

One of Larry’s most important priorities when thinking about transitioning his practice was finding someone to take over who would really take the time to get to know his clients and their dreams, goals and preferences, before he might have to leave his practice, either by choice or emergency. Fortunately, he...

What Will it Take to Finally Create a Succession Plan?

It is often not the lack of will, but the lack of impetus that prevents advisors from their own succession planning. Sometimes all you need is a  compelling enough reason to start! Financial advisors spend their careers assisting clients and helping create plans to drive and maintain financial wellness. But just like the proverbial shoemaker, they’re not planning for their own future unknowns.

From developing financial plans, to estate planning and risk management, financial planners play an integral role in their clients’ lives. And yet according to Cerulli Associates, fewer than 75% of advisors have their own written succession plan.

What Is Your Catalyst?

Financial advisors are feeling the impact of our current environment and more have realized the need to address their own practice’s future. Those forces include:

The uncertainty of increased market volatility?

Since the 1800s, the average secular bull market generally lasts about 12 years. We’re...

No Succession Plan? You Could Be Flirting with Disaster

Too many financial advisors are playing a dangerous game of “kick the can” with their business continuity or succession plans, whether through procrastination or a genuine fear of what that plan might look like. According to Cerulli Associates, 38% of advisors will age out of the industry over the next decade—that’s 110,000 advisors— and the Financial Planning Association finds that only around 11% of them have a comprehensive succession plan in place. And that’s a problem.

Why? Because the U.S. Securities and Exchange commission in 2016 proposed a rule mandating business succession and transition plans for all financial advisors overseen by the agency. And in 2019, Massachusetts Secretary of the Commonwealth William F. Galvin proposed updates to new regulations to:

  • Increase accountability in the financial industry
  • Protect investors by leveraging a strict fiduciary conduct standard on agents, broker-dealers, investment advisors, and investment...

How to Prepare for Transgenerational Wealth Transfer

Cerulli Associates anticipates a migration of $68 trillion to the next generation over the next 20 years. There are a number of things both parents and children should do to prepare if they expect to be part of this historic transgenerational wealth transfer.

Steps for Parents

1.   Ensure Your Estate Plan Is Up To Date

Planning for what happens to your estate after you die should be an integral aspect of your overall financial management strategy that can:

  • prevent unintended beneficiaries (including the government or a divorcing spouse)
  • protect families with young children
  • spare heirs a big tax bite
  • provide assurance at a difficult time
  • prevent family squabbles by outlining your wishes.

2.   Educate Your Children

A TIAA Institute survey finds only 11% of Millennials display a “high level of financial literacy” so starting to educate them early will help the younger...

Transferring Wealth to Your Grandchildren

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 to bypass their children altogether, while others are eager to provide monetary support to their grandchildren, especially while they’re still around to see them benefit from it.

The government doesn’t look kindly on gifts to grandchildren and has imposed numerous tax burdens on certain generation-skipping transactions. There are several strategies, however, that can help you (and them) avoid onerous penalties. 

Strategies for Talking About Money with Your Children

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 issues later on, especially when the children stand to inherit substantial assets and have to manage their newly-acquired wealth.

With an estimated $68 trillion in nonfinancial and financial assets