2. Serving High Net Worth Clients through Centers of Influence
Mark Thomas, Owner & Principal
Capstone Wealth Management, Inc.

3. Goals tend to be a glassy dreamlike statement of alleged desires and outcomes, while plans focus entirely on inputs; the activities that lead to meaningful, enhanced outcomes. We, the team of Capstone, already have the business we want. If we did not want what we have – if we were passionately desirous of and wholly committed to a higher achievement, we would have already been achieving it. The business that we have achieved is the business that we have earned. The extraordinary outcome of a financial planning practice achieves exactly what we deserve. It cannot and does not deny us the precise levels of achievement which we have rightfully earned over the last 10 years. (Paraphrased from Nick Murray)

5. Interactive Conversation
One hour conversation – 30 ideal clients, 12 CPA’s, 3 Attorneys
Client and Center of Influence business meeting agenda
Capstone’s capabilities
Capstone’s growth objectives
Learn who wants to introduce me to friends and family to assure they get the help they need and deserve.

6. Interactive Conversation (cont.)
B. Take-A-Way
27 clients want to introduce me to family and friends.
My clients and closest COI can not articulate what I do for them.
Can NOT differentiate my service from Stock Broker, Insurance Agent or Trust Officer.
COI’s trust our communication process and we are the catalyst to move planning process forward.

7. Interactive Conversation (cont.)
C. COI’s and clients told me what they wanted from Capstone to support their introductions of clients’ friends and family.
Communicate regular examples of how others have introduced Capstone
Social and client appreciation events to invite others to meet staff and me
COI receive a 58 point of annual contact to teach and support

8. WIPFLi HNW Client Service Client Solutions for Life Insurance
HNW Clients Own Life Insurance
AICPA tool to manage client life insurance portfolio
At client’s death family will look to CPA for insurance carrier and beneficiary assistance
Life Insurance Needs Analysis, Solutions
No longer need life insurance
Example: Mr. Client Age 74, retiring business owner - $1 million term, cash value $0, life expectancy 10 years, sale of policy to secondary market $175,000.
Maintain Coverage – consider alternative with a 1035 exchange

12. Client’s Family Estate Transfer Plan

13. Minimizing & Eliminating Threat to Wealth
Plan by Default vs. Plan by Design
Wealth Preservation Planning is Gift Planning
Estate Planning is gift planning
Identify threats to wealth
Taxes
Divorce (children)
Creditors
Predators (Wealth attracts flies)
Beneficiaries
Sometimes we have to protect Beneficiaries from themselves
Spendthrift – can’t manage money
Spoil with too much too soon
Anti-social behavior (drugs/alcohol, wrong crowd, cult)

14. Minimizing & Eliminating Threat to Wealth
Planning Basics
First and foremost, identify assets in Consumption Bucket for husband & wife’s security
Second, identify assets in Contingency Bucket
Third, identify $4.25M to $16.2M of income producing and appreciating assets in Contingency Bucket to gift to Defective Grantor Trust in Custodial Bucket

15. Three Buckets: Establish Irrevocable Life Insurance outside of your estate in Custodian Bucket
Grantor advances cash to DGT to help pay insurance premiums until investments in DGT can pay premiums and pay back previous advances.
Cash advances from Contingency Bucket transfers appreciation out of estate tax free.

19. Questions?