Podcast by Vest COO: Don't Screw up your Client's Legacy

In this podcast, John Zetterstrom (our COO) speaks to investment advisors about legacy planning. It covers:

  • What is Vest Financial and what makes them experts in the Legacy Planning field?

  • What is legacy planning? Why is it important and why aren’t clients thinking about it?

  • How could advisors introduce legacy planning to their clients?

  • What does it mean to partner with a registered investment advisor? And why is it so important to understand your client base?

  • How would Vest Financial get involved working with an RIA? What different takes are there to work with them?

  • How you could contact John to possibly work with him.

Check out this quick 7-minute podcast here.

Nasdaq: Why do 70% of Families Lose Their Wealth in the 2nd Generation?

Generational wealth is an aspect of financial planning that is geared toward passing down stable, significant financial resources to future generations. But can anyone really teach wealth? If all it took was knowledge to become wealthy, then most business people, professors, financial planners and others would be very wealthy. The reason they’re not is because becoming wealthy requires a lot more than knowledge. It requires hard work, discipline, sacrifice and many other traits that are very hard to teach and pass on.

It is estimated that 70% of wealthy families will lose their wealth by the second generation and 90% will lose it by the third. There are a variety of reasons why this happens:

  • Generations are taught not to talk about money

  • The prior generations worry that the next generation will become lazy and entitled

  • Many have no clue about the value of money or how to handle it

Read THE FULL Nasdaq article HERE.

Nasdaq: Why You Need a Will

The importance of having a will begins to resonate with people when a celebrity passes away without one. Most recently, Aretha Franklin passed away. After a decades-long career, with a voice that crowned her the Queen of Soul, she was able to accumulate a substantial wealth. Between concerts, recordings, investments, music rights etc., her estate was vast.

The one thing she didn’t have was a will or any kind of trust to manage it. It is more than likely that her 4 sons will eventually split the estate but it will be up to a Michigan judge to determine who gets what. In addition, since there is no plan anyone can make a claim against her assets and it will be up to the courts to decide the validity of their claims, which could take years to settle.

The majority of these issues could have been avoided with proper estate planning, beginning with a will. 

Read THE FULL Nasdaq articlE HERe.

Nasdaq: The Importance of Carrier Ratings

Insurance is a very special industry. Its whole value is a very simple promise: To pay a potentially large benefit in the event of a claim. But this claim may occur many years in the future, sometimes decades after the purchase of the policy. One of the questions you need to ask yourself is, Will the carrier be able to keep this promise? Will they still even be around many years in the future? You really have no way to be sure.

There are many factors that go into the selection of the right insurance carrier. Since this will be a long-term investment, you need to make sure that the one you’re selecting will meet all of your needs. Whichever carrier you choose, you should review the company’s pricing, explore it’s policy offerings and read all the consumer ratings. It is also very important to research the company’s financial health.

Read the full Nasdaq article HERE.

Forbes: Why An Audit of your Life Insurance Policies is Important

When a person hears the word “audit,” it almost immediately brings to mind the panic and fear of a call from the IRS. A life insurance audit, however, is a comprehensive study of your existing coverage to make sure it still fits your needs.

Back in your parents' or grandparents' day, they might have purchased a life insurance policy, put it in a file and only thought about it when the bill came for the annual premium or when the insured passed away. And that was usually fine. Today, however, policies are a more complicated financial tool that needs to be monitored -- much the same as any other assets you hold in your portfolio. The goal is for your life insurance policy to be there for your beneficiaries when they need it most. That is not the time you want them to be surprised, so it's vital to perform a policy audit on an annual basis and take any corrective action that is necessary.

The audit itself is about more than just the policy. This is an annual opportunity to review your plan and identify any gaps in your coverage resulting from any occurrences from the previous year. It allows you to address any lifestyle changes and answer such questions as:

  • Is the policy's original goal still valid?

  • What type of policy do you have?

  • Are the original beneficiaries still valid?

  • Is the ownership structure of the policy still correct?


Forbes: The Benefits Of Premium Financing For Life Insurance

What is premium financing for life insurance? It is borrowing money from a third party to pay the policy premiums. Once the policy generates enough surplus cash value in later years, the owner of the policy can then pay back the premium finance loan from policy values. This arrangement is widely accepted by life insurance companies and is utilized by consumers with a minimum net worth (generally at least $2 million) who have a need for insurance and prefer to retain their capital rather than liquidate assets to pay the premiums.

Premium financing can be an attractive option to anyone who:

  • Needs a substantial amount of insurance for estate-planning, wealth accumulation, liquidity at death, asset protection or business purposes

  • Doesn’t want to use their existing capital to pay the premiums

  • Is insurable at standard rates or better

  • Satisfies the carrier’s underwriting regulations


Forbes: Using Life Insurance For Retirement Purposes

When people hear the words "life insurance," they immediately turn away from even discussing the matter. But what they may not understand is that it's an asset -- there to provide a stream of cash to help fund retirement tax-free and to pay for long-term care if you become ill.

The one fear we all have when getting close to retirement, even with all our planning, is whether we'll have enough to last us through it. When doing your planning for retirement, you need to accept the reality that you could be retired for a long time and, if married, your savings may need to last for two lives -- not just one.