Wealth Actually

Life insurance is one of the core tools in wealth management. It replaces income for families, funds the payment of estate taxes, and, given its tax advantages, can serve as an investment vehicle. However, the culture of life insurance, its sales process and its regulatory framework live apart from the world of stocks and bonds. To that end, there is a new framework in New York that is changing the way life insurance is presented to clients: Rule 187. This rule and the law that surrounds it is in contrast to the way in which life insurance has been traditionally presented. It imposes a new "best interest" standard and recognizes the importance of an accurate demonstration of the COSTS of insurance to clients. And for the wealth advisers and fiduciaries out there, Rule 187's reach goes far beyond the borders of New York. Enter STEVEN ZEIGER https://frazerrice.com/wp-content/uploads/2022/06/TRIMMED-Rice-Zeiger-4-29-22-r-187-video-1920x1080-1.mp4 Steven serves as a Managing Director of Wealth Management at KB FINANCIAL and is a recognized expert in applying prudent investor guidelines to life insurance product selection. He works with large clients and advises individual and corporate trustees on their responsibilities around life insurance. Steve will help us understand the practical application of Rule 187 and some of the potential future impacts on the business of life insurance nationwide. After this podcast, you should have a new appreciation for the way life insurance should be bought . . . and sold. (As a reminder, this podcast is for education purposes and not investment advice. Securities Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer, Member FINRA/SIPC. KB Financial is independently owned and operated.) Outline: Fiduciary Responsibilities Around Life Insurance in NY- Steven's Background- How is life insurance used?  Income Replacement, Estate Tax Funding, Business Succession, Investment Vehicle How do most people think the word "fiduciary" works with life insurance? How is it regulated nationwide? By state with guidance from NAICWhy is NY different?  RULE 187 and the New "Best interest" standardWhat court cases should high end advisors keep in mind?Which advisers are affected? Trustees? NY Why are the costs important? And to whom? What is the important information in an insurance projection?What information is usually missing and why is that important for NY compliance purposes?The problem of co-mingling cost and performance metricsFrom a 30K ft. level, how does that impact the allocation of premium dollars for clients?*Either save premium on current DB, or by more DB/current premium- At what levels should this cost-based interaction be engaged? What does look like for the NY advisers? The advisor community in general? RIA's? The Life Insurance Industry? How do we stay in touch?(Contact info etc . . . ) STEVEN ZEIGER Useful articles around Life Insurance and RULE 187 Trust & Estates -A Shot Across the Bow - Veralytic Inc.  - (Using independent research) DownloadDocumentFile.ashx (uniformlaws.org) - (Investigating Insurance Costs) FINRA: 2210. Communications with the Public | FINRA.org - (Don't compare illustrations side by side, disclose costs) NYSDFS Regulations - Insurance: Final Adoption of First Amendment to Insurance Regulation RULE 187 (11 NYCRR 224): Suitability and Best Interests in Life Insurance and Annuity Transactions (Care skill prudence diligence cost performance risk) CFP: standards-of-professional-conduct.pdf (cfp.net) (care skill prudence diligence cost performance risk) (Disclosure: Securities Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer, Member FINRA/SIPC. KB Financial is independently owned and operated.) https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

This latest podcast is special because it harkens back to 2000 when I wrote a paper in law school about the use of securitizations to disrupt the music industry.   I mused about the disruption of the music industry and the demise of the traditional way of doing business.  I wasn’t far off! The music industry has undergone enormous changes with the advent of streaming. The demand for content has never been higher with new ways to monetize content.Add to that the fascination of NFT’s and the new attention into the divisibility of artists rights. Finally, with rock-bottom interest rates and an insatiable hunger for non-correlated returns, music rights have become a popular asset class for investors. To help think about this, I went to the source, DAVID PULLMAN. David is a pioneer in music industry finance. His firm THE PULLMAN GROUP covers many aspects of the music industry including publishing and mechanical rights, royalty management, loans, advances and securitizations. We get into: Pullman's background in finance and investment bankingWhat went into the Bowie transaction and why it was contemplated in the first place The challenges of working with complicationWhat the later transactions with artists like James Brown and Holland Dozier Holland were likeHow streaming services like Napster and then iTunes, Pandora and Spotify changed the dynamicsHow the Bowie Bond has come out the other side and is relevant to new players in the industry. (For some context into the Bowie Bond and the concept of Intellectual Property Securitization, here is Quick Synopsis from INVESTOPEDIA and a Summary from WIKIPEDIA) We also talk a lot about what it was like to work with someone like David Bowie. Bowie himself was not only the driver of musical trends, he was a savvy businessman, futurist and technologist as well. His vision for the scope and power of the internet and its impact on the accessibility of music and the music business itself was extraordinary. Listen here: https://www.youtube.com/watch?v=JPpiYG9_058&t=1s Finally, and some of the issues with future music financings and his thoughts on the impact of NFT’s. Without further ado . . . DAVID PULLMAN. As an extra bonus . . . . Here is a 5 minute outtake of the podcast with David Pullman- in this morsel, we talk about his experience with David Bowie and how the song “Fame” represented a major pivot in Bowie’s career AND Pullman’s! https://frazerrice.com/blog/preview-david-pullman/ The bonus 5 minute outtake on working with Bowie and the gift of "Fame" Finally, here is a list of the 2022 GRAMMY NOMINEES: https://nypost.com/2021/11/23/grammy-nominations-2022-full-list-of-nominees-new-categories/ https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

The College Admission season is in full swing and it brings it usual stresses. However in the world of intergenerational planning, it’s a unique opportunity for families to discuss their core values and the development of their kid’s personal narratives.  It is chance for families to collaborate on a life changing decision around the kids future- a process in which the engaged kids have a vested interest! Finally, it’s often the first instance where kids experience the judgment of their personal narratives by the outside world. To help us dive deeper into this concept, I’m going to speak with LINDSAY TANNE Lindsay is the Founder and CEO of LOGICPREP. As a leading College Admissions Advisor, Lindsay helps students around the world develop and tell their stories and identify their best-fit schools. Over the past decade, she and her team have helped thousands of families successfully navigate the college application and higher education landscape. There's been so much news coverage around college admissions and how last cycle was the most competitive one ever. Is it really as crazy out there as it seems?  Yes and no...More applications for the same number of spots - which means lower acceptance rates are a realityImagine you were applying to Columbia 2 years ago - you were one of 40,000. Well, last admissions cycle, you’re up against 60,000 other students. At MIT, for example, applications were up 66%Simply put, at highly selective schools in particular, the pond expandedIt’s not that you’re a smaller fishIt’s just that the pond got biggerBut there’s one thing in particular I want to point: only 2.4% more students applied BUT applications were up 11%Basically, this means that the increase came from students applying to more schools rather than more students applying overall Less data available Transcripts were less reliable in this last admissions cycle as education moved onlineAdditionally, during the pandemic, almost every school had to go test optional - meaning they wouldn’t require the SAT/ACT - as a temporary accommodation since the tests kept getting cancelled As a result, students did not feel constrained by test score ranges and more students were open to the possibility of applying to highly selective schools than ever beforeIn a sense, it’s like the lock on the front gate appeared to be loosened at the most competitive universities - since test scores no longer stood as a barrier to entry -more students felt emboldened to applyUltimately, not as full of surprises as people might think (90% acceptance rate for LP to 1 of top 3 schools)Why? The criteria for evaluation hasn’t fundamentally changed, but the weight assigned to each category has More subjective, less quantifiableTest scores were optionalTranscripts were less reliable - online school, pass/fail Plus, with limitations on extracurriculars, there were even fewer avenues to demonstrate leadership and passion What actually counts in the college application process? How do you help your child stand out?  Basically, the college admissions process is founded upon three pillars: Academic Record - transcript and its rigor, what classes you take and your grades Standardized Test Scores - SAT/ACT Personal Narrative - your activities, how you spend your summers, teacher recommendations, what it is what makes you who you are2020, of course, was an unusual year - but things are changing slightly….These pillars still stand (though some might be shakier than others) However, the weight or emphasis, of each of these pillars has been challenged  So what is the impact on the test-optional trend on college admissions?  First, let’s define: what is test optional? SAT/ACT not required; considered if submittedWhat is test blind? SAT/ACT not evaluated at all; very few schools fit into this category, though it does include the UC systemThe 2021 admissions cycle has really been an extension of 2020 - more schools offering test optional admissions a tem...

Here is sneak peak of my podcast with David Pullman- in this outtake, we talk about his experience with David Bowie and how the song “Fame” represented a major pivot in Bowie’s career AND Pullman’s! A fascinating tidbit into Bowie's prescience- A must listen for the NFT crowd. The full interview will drop shortly . . . DAVID PULLMAN https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

You can’t go two minutes without hearing about the allure of venture capital and private equity or the cult of entrepreneurship and the start-up. However, these things are hard!  Venture and P/E require large pools of patient capital, deep expertise and long time horizons. Entrepreneurship requires a unique angle, force of will, operational deftness and a 24/7 personal commitment to success. This has led to the development of SEARCH FUNDS – pools of capital designed to invest in small and medium sized businesses (SMB's) businesses that have gotten off the ground but aren’t exercises in organizational change.  STANFORD has done extensive work investigating their attractiveness. These small and medium-sized businesses stretch across many industries and usually have annual revenues of between $200,000 and $20 million. These businesses are past the start-up stage and usually profitable but could use help in professionalizing certain operating aspects. This has attracted the attention of investors looking for outsized returns and many entrepreneurs looking to run a business without the “startup experience.” Enter STEVE RESSLER- Steve is a serial entrepreneur with 3X exits in GovTech and Software as a Service (including his sale of his first business to Vista Partners). His work has taken him deep into the SEARCH FUND and SMB operator space. He has lots to tell us about both ends of the “search fund” experience, the SMB phenomenon and where it is going. We also cover some great work he's doing with Veterans in the operator space. Background Experience as a founder Having an early exit Software and Government Services- What are the competitive advantages/niches you're looking for here? The appeal of SMB space? Running a Fund vs being an Operator? Expected returns? What is the timeline / exit strategy for your investments? How do the family dynamics differ in search investing from starting the business? When buying the businesses how do you deal with the personal dynamics? Do you get involved in the family dynamics? How do you analyze that? What's next? Involvement with Veterans programs: SEARCHACQUIRE How do we keep in touch? STEVE RESSLER TWITTER STEVE RESSLER NEWSLETTER STEVE RESSLER WEBSITE

Quan is the author of his memoir “SPARROW AND THE RAZOR WIRE” His is an amazing story of redemption, the importance of second chances and the power of entrepreneurship. https://www.amazon.com/Sparrow-Razor-Wire-Finding-Sentence-ebook/dp/B08F34LBXL Quan spent twenty-two years in and out of correctional institutions, including a life sentence for murder. He was paroled 2015 and created his first company six months later. The following year, he received the Peace Fellowship Award for his work with the Alternatives to Violence Project. He is the post-release program manager for Defy Ventures, a nonprofit helping those with a criminal past transform their lives through the journey of entrepreneurship. (I first met Quan when participating in an entrepreneurship program with DEFY VENTURES at Kern Valley State Prison). We’ll be talking about: Quan's Story His Vietnamese background and his early path to gangs and run-ins with the law The Role of Taking ResponsibilityThe Horrors of PrisonGetting Out and the Transition to "Civilian Life"Rebuilding everythingHis company and his work with Defy Ventures . . .Writing his bookThe problems with the criminal justice systemThe path to a better life through entrepreneurism And what’s next for Quan . . . . (A movie deal I hope!) Meeting Quan changed my worldview (More about my visit to KERN VALLEY STATE PRISON here). I hope you learn something from Quan's experience and reconsider the role of the criminal justice system in our society. More About Quan Quan on PBS NewsHour https://www.youtube.com/watch?v=CNuSFwR5wzw His uplifting story on Google Talks: https://www.youtube.com/watch?v=WkhlbGrYTAo How Do We Stay In Touch? Website: www.quanxhuynh.com Twitter: @quanxhuynh Facbook: QUANXHUYNH Linkedin: QUANXHUYNH IG: @quanxhuynh https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

New York City residents have the highest State and City tax burden in the country (it's over 15% at the top level, recently overtaking California). It's no surprise that New Yorkers are constantly strategizing around their tax burden and potential moves to other states- especially for high earners or those looking to sell a business. But a lot of New Yorkers suffer from 'advice by cocktail party" and many misconceptions float around as people assume that being out of NY for more than 183 days is "enough". Getting out of New York's tax grip is a lot more complicated than that.So we’re going to one of the top experts in the field, MARK KLEIN of HODGSON RUSS.Mark is Partner and Chairman of the Firm and concentrates his practice in New York State and New York City tax matters. He has more than 35 years of experience with federal, multistate, state and local taxation –He may be best known for his public speaking on tax topics. Mark splits his time between the Firm's New York City and Buffalo offices.For New Yorkers listening, you are going to learn a lot on how to arrange your affairs when for state tax purposes. We're also going to talk a little bit about the "Convenience Rule" which is impacting a lot of New Yorkers who have "relocated" due to Covid.What do New Yorkers face?-Income and Capital Gains Tax that is the highest in the nation (Over 15%)-Estate TaxWhat are the typical options when reducing the tax bill? What do you have to show?When moving to a non-tax state, what does a client have to think about? What about the new normal with COVID? What if I'm not working in NYC anymore? Mark and his team at HODGSON neatly sums up the issues here: https://www.hodgsonruss.com/what-to-expect-in-a-new-york-residency-audit.html WHAT TO EXPECT IN A RESIDENCY AUDIT A New York State residency audit is one of the most difficult, intrusive, and document-intensive of all personal income tax audits. And the New York Tax Department has one of the most sophisticated and aggressive residency-audit programs in the country. This handbook follows a question-and-answer format that should tell you everything—ok, almost everything—you need to know about what happens in these audits. You’ll have to call us if you want to know everything! WHAT IS A RESIDENCY AUDIT? A residency audit is designed to determine whether you correctly filed as a nonresident or part-year resident of New York. Because New York residents are subject to tax on their worldwide income while nonresidents are subject to tax only on that portion of their income attributable to (“sourced to”) New York, the difference in tax liability can be significant, particularly if you have substantial investment income. If there is a possibility that you were also a New York City resident, the difference in potential tax can be even more significant since New York City residents also pay tax on their worldwide income while New York City nonresidents pay no tax to the City at all, even if they work there. The audit will generally cover three areas. First, the auditors will focus on the first residency test, called the “domicile” test. Second, the auditors will look to the alternative residency test, called “statutory residency.” And finally, even if you are able to establish nonresidency, the audit will also examine whether you properly “allocated” your sourced income to New York on your tax return. We usually don’t see the New York auditors examining other underlying components of a tax return—such as the income and deductions reported. But in more recent years, as auditors have become better trained (and more aggressive), there has been more of a shift in focus to the ENTIRE tax return, so you should be ready for such questions as well. HOW LIKELY IS IT THAT I WILL BE AUDITED? Very likely. If you are a high-income taxpayer claiming a move into or out of New York, it’s a near certainty you will be audited.

GRIFFIN BRIDGERS wears two hats – estate planning attorney, and content creator.  He is a partner with the law firm of HUTCHINS & ASSOCIATES in Denver, Colorado, and also is piloting a fledgling media venture centered around bespoke tax and estate planning education in the digital age.   IN THIS EPISODE: Quick tour of the changing estate planning landscape and the legislative shifts.Why GRIFFIN has started his media companyTrends in the business models of the wealth management industryA couple new developments in outside (private equity ownership) of LAW FIRMS and ACCOUNTING FIRMS that bear monitoring. This could have wide ranging "aggregator effects" similar to what we have seen in the RIA space. Will these be good for the industry? LEGISLATIVE FLUX Chaos and disorder with legislative flux right now . . .What are you seeing? Crystal Balls often don't help . . . INSIDE BASEBALL IN THE WEALTH MANAGEMENT INDUSTRY Service ModelsWhat are the models that are out there that you like?What "should" services include?Is there an optimum model?What is the value proposition?  Does it change?The Importance of Transparency ("Truth in Speaking")Appropriate Fees- how "at risk" is the 1% AUM fee? CONTENT CREATION AND ESTATE PLANNING Let’s get into the media side of things . . . you have a terrific Youtube channel that sets out various concepts in estate planning- How does that help your practice?What slot were you trying to fill? Somewhere between Estate Planning 101 and Hypertechnical?Is there a Michael Kitces of estate planning?Media- what has worked for you? Effective amounts of time?What problems did you try to solve?Youtube- how did you stumble onto this s your platform of choice?Substack How do you think about the platforms?What are your plans on this front? For Griffin’s YouTube channel: https://www.youtube.com/channel/UCRaGK2J72zXDvLLcy2aPl-w/videos https://www.youtube.com/watch?v=UBEHBK1ebmY FUTURE TRENDS- LAW FIRM AND ACCOUNTING FIRM AGGREGATION? Non Practitioner Ownership-Law firms AZ, UT, FLPrivate Equity's Push into Accounting firms - ex. EISNER AMPERconflictsturmoil with departing partnersPrivate Equity timetables for ownership and investmentscustomizationpersonalizationwho "owns" the clients HOW DO WE STAY IN TOUCH? For GRIFFIN's NEWSLETTER: https://griffinbridgers.substack.com For GRIFFIN's LAW FIRM website: www.hutchinslaw.com For GRIFFINS LINKEDIN: https://www.linkedin.com/in/griffin-bridgers-a4a26a15 https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

In this episode, MATTHEW MCCLINTOCK joins us. Matthew is a high end estate planning attorney and is a Principal at EVERGREEN LEGACY PLANNING which is based in Colorado. He has built his practice at the cutting edge of Cryptocurrency and Estate Planning, a field that is evolving by the day. This is Matthew's second appearance and he's on again for a good reason. We last recorded Oct. 2nd 2020. Bitcoin was around $10,000 . . . it's now valued in the $48,000 range (having spiked over 60K!). Many other cryptocurrencies and digital assets like Non-Fungible Tokens (NFT's) have seen similar value increases. We're going to find out: What if anything is different around legacy planning in the crypto world?What is involved with estate planning in the white hot NFT space? How does one properly staff the roles in crypto estate planning structures? Matthew is an amazing resource and is one of the top experts in the field of estate planning and digital assets. Since this is his second appearance, we skipped the usual introduction and went straight into it. Finding experts and prepared vendors to administer trusts with digital assets Staffing Trust Functions Communicating Responsibility at the intersection of Digital Assets and Analog Trust Law Estate Planning for Digital Assets: What's changed, if anything? Low interest ratesVolatility of PricesCurrent legislation?Potential New Deadlines?Use of Traditional Tools like GRATS, IDGTS and CRUTS amongst othersTaxation IssuesExchange issues / security issues401K / IRA plans - Peter Thiel?Best practices- use of entities?Prudent Investor issues? NFT’s (Non-Fungible Tokens) What is in an NFT? Fungible vs Non Fungible What do you actually own when you buy an NFT? The Actual File (and where is it held?)The "Certificate of Authenticity" on the BlockchainThe Copyright to the Work??? (Very Uncertain) What re the main types of assets sold in NFT form (so far?) Digital file / collectiblesConventional art tokenizedGaming characters/terrain - rent or sell   The Bitcoin Standard and what bitcoin did Crypto-asset "succession" planning A Quick Note on Regulation Major Players in Sen. Cynthia Loomis WY & Erik Voorhees, Founder of Shapeshift Balance of intelligent Reg and chilling effectLogical points of regulation: On and Off Ramps, TaxationWho realistically is responsible for KYC in the dark pools? Which Agency gets this "plum" assignment? OUTRO EVERGREEN LEGACY PLANNING https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

The LGBTQ+ community has always been an important part of American fabric. But it's only in last two decades that society, the law and the financial services industry have started to catch up to the community's unique planning needs.  To help us put context around these features and the evolution of the law, I spoke with estate planning attorney, Brian Balduzzi Brian is a lawyer in Philadelphia at the international law firm FAEGRE DRINKER.  Among many other activities, Brian serves as the Vice President of the Cornell Pride Alumni Association, where he holds his MBA. I'm thrilled to have him on to discuss this important topic. BACKGROUND We start off talking about Brian's background and a little bit about his practice. Then we dive into some specifics. LGBTQ+ TRENDS - Demographic Shift - more need, more complexity - Court decisions in review - Windsor/Obergefell planning and post-planning, and (perhaps) re-planning - Planning Needs: Concepts around DINK (Double Income No Kids) lifestyles, urban lifestyles, chosen family, estranged from biological family, dignity under the law/hospitals/banks SPECIFICS - Documents: Extra durable, trust planning (privacy, avoid/minimize probate), ILITs (insurance to cover unexpected costs or taxes?), Power of Appointments, no contest clauses, guardians - Holistic Advisor: gender-neutral terms, no assumptions re: marriage, family tree dynamics, privacy/confidentiality/outing - Some Must Review/Updates for all LGBTQ+ families: Pre-2015 planning, beneficiary designations, decisions to marry/adopt, prenups, separation/divorce planning OUTRO You can find Brian here: BRIAN BALDUZZI LINKEDIN