Affluent

• “I know many of these advisers and here’s what they tell me their clients want: First of all, an approach that enables them (the clients) to think about all of their problems and issues- not just those related to their finances. Next, they want a greater sense of direction, confidence, and capability in all areas of their lives. Because of this, they want financial strategies to be part of much larger lifetime solutions. When it comes to solutions, they want everything based on their issues and concerns, not on the adviser’s need for commissions. It’s very important to these clients that the advisers are independent of bureaucratic dependencies. They want someone whose loyalty and commitment is to them, not to a corporation. It reassures them to know that the advisers are personally successful and confident. They place great value on long-term relationships. For this reason, they want financial advisers who can help them construct a lifetime plan and then be there continually to help them implement it.” The Right Side of the Table: Where do You Sit in the Minds of the Affluent?By Scott Fithian and Todd Fithian. Page XV
• “Consider the path the wealth holder has been on before they get to the planning table. When self-made people begin to achieve affluence, everything changes in their friendship dynamics. They find themselves with little safe haven to let their guard down about life, wealth, and family; about personal progress or demons. Their friends can’t afford to do the things they do and they can’t empathize with the wealth holder’s family or business issues.” The Right Side of the Table: Where do You Sit in the Minds of the Affluent?By Scott Fithian and Todd Fithian. Page72
• “The demand for the Intentional Team Model calls the bluff of the one-stop-shop. In the affluent marketplace, the one-stop-shop will cease to be viable for four key reasons. First, wealth holders have best-in-class expectations. They have the business acumen to know that no single organization can maintain this level of talent in every discipline. They recognize that top talent often feels stifled under the weight of bureaucracy and sets out to hang its own shingle. Second, today’s wealth holder encounters the need for very specific solution providers. There are so many intricacies to complex planning; a single organization can’t possibly house every facet under one roof in a financially viable business model. Third, some of the wealth holder’s planning needs are temporary. Third, some of the wealth holder’s planning needs are temporary. It isn’t cost-effective, and therefore it isn’t likely that a single institution would house all of the expertise to address every facet of future planning- both known and unknown. Last, every wealth holder has existing relationships. In the smoke-and-mirror media barrage of today’s financial services marketplace, it is tough to relinquish the one known commodity in his or her planning- the trust he or she places in longstanding advisers.” The Right Side of the Table: Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian. Page 86
• “We live in a world of both incredible wealth and startling poverty. There are more wealthy Americans than wealthy individuals from any other industrialized country. Thus, the moral, social, and economic responsibility of this country’s private sector to give of its excessive wealth to those in great need continues to intensify. While foundations and corporations get much of the visibility and recognition for their charitable giving benevolence, the vast majority, over 80%, of giving comes from individuals.” Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club. Bill Walace, CLU®, ChFC®, June 13, 2008
• “I have also come to realize that the key for any financial planner desiring to build and serve an affluent clientele is knowledge and credentials indicating that he/she has an appreciation and knowledge of the tools for philanthropy that can be helpful to more affluent prospects far more than most people realize.”Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club. Bill Walace, CLU®, ChFC® JUNE 13, 2008
• “For the Washington DC area, it is estimated that 1.604 million estates will occur during the 55 year period from 2001 through 2055. These final estates will be valued at 1.260 trillion (2005 dollars) at the time of death if wealth grows in the area at an average rate of 2%. If historical patterns hold, $47 billion will be distributed in estate fees, $321 billion to the government, $169 billion to charity, and $723 billion to heirs. The $169 billion of potential charitable bequests constitutes 13% of the $1.260 trillion value of final estates. In a 4% growth scenario, $1.175 trillion or 25% of a total of $4.665 trillion at the time of death will go to charity. Finally, the study indicates that the 1.935 million households in the metropolitan area in 2001 will contribute $207 billion before their deaths and $169 billion in charitable bequests during the55 yr period of simulation. WHAT AN OPPORTUNITY THIS REPRESENTS FOR EVERYONE IN THIS ROOM” .”Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club. Bill Wallace, CLU®, ChFC®, June 13, 2008