Why Should You Commit Your Firm to a Program of Change that Expands your Wealth Management Practice?

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By Tony Batman, chairman and CEO, 1st Global

To address this question in a meaningful way, we need to take a long-term and broad perspective. First, your firm is probably experiencing a rush of activity, new business and revenue and profits growth. Sarbanes-Oxley has proven a boon to the profession.

Retirement and succession planning present challenges

In the long term, however, how will your firm position itself for the bigger factors at work in our industry and in our society? The changes brought on by Sarbanes-Oxley may pass and there are other demographic and business factors to consider as you set a course for your firm. Chances are, most of your clients are baby boomers. As this generation of your best clients retires between 2006 and 2025, it will demand more than tax and audit work from your firm.

Your clients probably aren’t the only ones with changing goals and wealth management needs. What about the partners at your firm? Many of them are probably baby boomers, too. How well-prepared is your firm to pass on ownership to another generation of partners? If yours is a smaller firm, how will you continue to monetize your practice?

Wealth management answers these challenges

Wealth management is one of the best answers to the challenge of building a business with transferable enterprise value. Clients benefit from advice that is framed by a comprehensive perspective of their financial lives. Wealth management organizes your clients’ financial issues into three main categories: wealth accumulation, wealth protection and distribution, and wealth transfer. Clients have most likely devoted most of their time and energy and sought advice in the first area, wealth accumulation – the planned growth of wealth through savings and investment programs and strategies.

For your clients who have met their accumulation goals, especially those of the baby boomer generation, new issues emerge. These issues go beyond the simple label “retirement planning.” Baby boomers are faced with key issues, such as:

  • How to coordinate their assets to create a comfortable, predictable income stream once their earned income stops and throughout their retirement years
  • How to navigate the tax ramifications of taking distributions from IRAs and other qualified plans
  • How to liquefy the wealth held inside a business
  • How to protect wealth inside qualified plans and the income strategy they are part of in the event of death or disability
  • How to protect and enhance the transfer of wealth to heirs and other future beneficiaries like charity, educational, or religious organizations

An advisor who addresses these issues for clients with a wealth management approach has a substantive advantage. By adopting a wealth management practice and philosophy, you are able to provide your clients with more comprehensive and customized service. You can become their trusted advisor for all of their current and future financial planning needs.

This article and its content have been provided by 1st Global. With more than 500 firms affiliated with 1st Global, it is one of the largest wealth management services partners for the tax, accounting and legal professions. 1st Global delivers the required capabilities essential for wealth management excellence including progressive ongoing education, which places the firm in a unique position to offer wealth management knowledge.
1st Global was founded by CPAs on the belief that accounting, tax and estate planning firms are uniquely qualified to provide comprehensive wealth management services to their clients. Each affiliated firm is provided with education, technology, business-building framework and client solutions that make these firms leaders in their professions through dedicated professional client relationships built around wealth management.
1st Global Capital Corp. is a member of FINRA and SIPC and is headquartered at 8150 N. Central Expressway, Suite 500 in Dallas, Texas,(214) 265-1201. Additional information about 1st Global is available via the Internet at www.1stGlobal.com.



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