"Non-Financial Assets: A Differentiating Factor" by Lisa Gray Many advisors in the financial services industry concentrate on what they do best: managing financial assets. However, advisors who position themselves as a resource for all of their clients’ wealth needs should at least be aware of other assets—including non-financial assets—their clients may have in their portfolios. Such assets may affect a client’s tax liability, estate planning parameters, and risk tolerance. Improperly treated, they also can drastically affect your clients’ net worths and the successful transfer of their estates. Art collections, coin collections, and many other types of collections are examples of assets clients own that advisors may not know about. Such collections may be quite valuable. According to Michael Mendelsohn, founder and president of Briddge Art Strategies, Ltd., advisors may end up being forced to become “involuntary curators” if the children are not interested in the collections. And liquidating a collection upon the owner’s death can be a huge mistake. Most advisors do not know which auction house has the best track record of selling a particular type of collection, so the collection may be sold by the wrong agents at much less than their true value. It can even make a different which part of the country a collection is sold in,   And who says a collection has to be sold? There are strategies for monetizing part of a collection or even giving the collection to charity. In the latter case, the collection may then be used to establish a legacy for the family, setting up a foundation through which younger family members may be educated about managing the family wealth.   How the collection is gifted can also make a difference. In some cases, gifting the collection in small pieces of as little as ten percent can create an annual tax savings for the collector. Those savings may then be used for additional donations or to facilitate intergenerational planning through an irrevocable life insurance trust.   In essence, by looking at a client’s entire portfolio—not just the financial assets—the advisor can more appropriately set up an asset allocation based on everything the client owns. He or she can do a more effective job with tax management and estate planning, as well. And it positions the advisor to work with the family’s other advisors such as CPAs and attorneys. Paying attention to a client’s non-financial assets can readily differentiate an advisory practice. One might even go so far as to say that such awareness falls within the fiduciary responsibility camp of really knowing a client and what may or may not be suitable, considering the scope of the investor’s assets, net worth, and investment experience. And advisors don’t have to become experts on various types of collections. They just have to be able to know what a client has when they see it.   Lisa Gray is president/CEO of graymatter STRATEGIES LLC, a consulting firm based in Memphis, TN whose purpose is to help advisors raise the level of their relationships with their clients. She has 18 years' experience in wealth management and is the author of "The New Family Office: Innovative Strategies for Consulting to the Affluent,” http://www.euromoneybooks.com/default.asp?page=4&productID=3178    **** Since our inception we have helped over 400 financial consultants make the move to independence. "I cannot express to you the joy and the increase in quality of life that I have found since leaving the wirehouse world." Shane Merritt, Branch Manager Merritt Capital Management Tired of Searching for the Right Independent Broker-Dealer? Want to find your next Broker-Dealer the EASY way? Want a professional to research your options and preserve your confidentiality? Want access to an informed search executive that can narrow your options and save you time and hassle? With over 10 years experience placing reps with independent broker dealers, we are able to offer many unique opportunities and there is no cost to you. For example: Companies with deferred compensation or profit sharing Producer groups that provide marketing programs Independent Broker-dealers that offer Transition funding Independent Broker-dealers with 100 percent payout on VA and VUL Independent Broker-dealers with 95 percent pay out on investment advisory services Firms with proprietary research in Mutual funds, asset allocation and stocks Firms offering Equity participation via options or common and preferred stock Broker-dealers that can accommodate compliance issues Firms specializing in stocks and bonds Independent Broker–dealers that are successful with large producer groups A firm with 11 years experience in hedge funds that will create your own fund of funds Firms who are friendly to custodying assets at Schwab, Fidelity, TD Waterhouse & Fiserv Firms with lower ticket charges and monthly fees Firms with Syndicate offerings, IPOs, and market making **For a FREE "Guide to Moving Your Book", please visit: www.goingindependent.net. This Month's Registered Representative Opportunity: This independent broker-dealer has been supporting advisors for over 27 years. Thier focus and philosophy is simple: Create value. The true purpose of a broker dealer is to serve the interests of its representatives. Many firms lose that focus over time and shift to self-interests, proprietary products, and/or parent company demands. This BD will always focus on you! They run an efficient back-office, provide big-firm services with a small firm touch and offer the most competitive payout schedule in the country. At this BD, they understand your independence, and that their role is only to perpetuate your success. They also understand that the client relationship is between you and the client and that they work for you. With that said, they feel that 27 years of independence, solid financial foundation and resourceful philosophy are a perfect fit for the representative that needs no boundaries. With this BD, independence is paramount. Allowing their representatives to conduct their business without obstruction or the introduction of proprietary products is important to them. Because of this value, their independent representatives have certain freedoms and access to outside resources not generally provided or promoted by other broker dealers. This BD has no proprietary products, advisory services or technology. They rely on outside resources for the things they should, those things best left to the vendors that specialize it such items. They have a strong and experienced Compliance, Brokerage Service, and Licensing & Commissions Department. Those are the areas they specialize in. This BD understands that transitioning your practice is a HUGE decision and requires a great deal of planning as well as attention to detail. Their goal is to ensure to the best of their ability that your transition experience to the firm is successful, quick and efficient. They try to make it easy to do business with them and will treat you like a part of their family, before, during and after your transition.   If you know someone who might be interested in the above opportunity or who might be ready to go Independent, please have them contact Jason Burke directly at 727-725-8876.

Here's some additional information from Turning Point, Inc...

www.BrokerBestPractices.com
www.BankBrokerBestPractices.com
www.IndependentRepBestPractices.com (*Sept 2005 REPORT AVAILABLE!)
www.FABestPractices.com (Financial Advisors)
www.InsuranceAgentBestPractices.com

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