Falcon Wealth Planning - Fastest Grwoing RIA 2022

Erwin E. Kantor

Headquartered at: 2598 E. Sunrise Blvd., Suite 2104, Fort Lauderdale, Florida, 33304 (718) 675 4060

Advisors Magazine is published bi-monthly and printed by Magcloud, Inc. Reproduction of any material from this print issue or our digital issue or transmitted in any form of by any means without prior written consent of the publisher in whole or in part is strictly prohibited. ©2022 by Advisors Magazine. All rights reserved.

For a free digital subscription email: editorial@advisorsmagazine.com To obtain a print issue, visit: www.magcloud.com/user/advisorsmagazine

ADVERTISING lsubasic@advisorsmagazine.com

QUESTIONS & COMMENTS info@advisorsmagazine.com

By Regina Johnson

Early Financial Literacy Brings Lifetime Benefits

Education and government join forces with support of the financial industry

With all the advantages their generations afford, including education and technology, there’s one thing the millennials and Generation Zers lack: financial literacy, according to financial advisors.

Without a fundamental knowledge of how money works, members of these generations could be marred with financial pitfalls, including high debt and an inability to buy a home or save for retirement.

“The early adulthood is when many critical decisions are made that can affect outcomes for decades to come, but few people are properly prepared to make them,” Jona than Freeman, managing director of Stonebridge Financial Group, a Pennsylvania-based financial services firm focusing on wealth management for families and corporate retirement plan consulting told Advisors Mag azine.

Martin A. Federici, Jr., CEO and financial advisor at MF Advisers, Inc., agrees that financial literacy is essen tial for all, especially young adults and teens.

“The more educated people are regarding smart personal financial moves, they lessen the chances of putting themselves in difficult finan cial positions,” Federici said.

Both Federici and Freeman say

taking on too much debt, having a lack of savings, investment mistakes, falling for get-rich-quick schemes, and not saving enough for retire ment can all be attributed to a lack of financial education.

Freeman sees a trend developing with younger people trying to learn about personal finance and invest ing, but he is cautious.

“These new investors may only be following headlines and not have any idea about the companies they’re investing in,” he said. “Or, as has been the case recently, they might be investing all their savings into cryptocurrencies they heard about from friends or celebrities.”

Freeman suggests that people without financial expertise learn to tune out all the noise, seek sound advice, and develop strategies and long-term goals.

“The early earning years are crucial for setting good habits and getting a head start on financial stability. Even if money can’t buy happiness, finan cial stability can be the difference between surviving and thriving,” Freeman said.

According to Federici, financial literacy rates are inadequate across the U.S.

Data from Florida-based annuity. org, an online financial educational resource shows that 75% of Amer

ican teens lack confidence in their knowledge of personal finance, and 25% of Americans say they don’t have anyone they can ask for trust ed financial guidance. Data from the Florida-based digital platform also shows that in 2021, Americans reported losing an average of $1,389 because of a lack of personal finan cial knowledge.

“We must address these financial topics with all U.S. children, espe cially in high school. Dealing with finances is one of the most important skills young adults need to master,” Federici said.

The call to improve financial liter acy is being heard in many circles.

Universities, high schools, and some financial institutions have begun to offer classes. Several states are in the process of implementing regulations that would require financial educa tion to be a part of the curriculum.

According to the National Confer ence of State Legislatures, 37 states, Guam, Puerto Rico, and the District of Columbia, have bills focused on fi nancial literacy in the 2022 legislative session. For example, starting in the 2024-2025 school year, the state of Georgia will require students to take a half-credit financial literacy course in the 11th or 12th grades.

Federici says the U.S. Department of Education should set concrete

goals to increase young people’s basic financial knowledge to manage personal financial matters success fully.

“I know that we try to educate our clients – no matter the age or experi ence level – whenever possible, and usually, they are quite appreciative. After all, knowing is half the battle!” Federici said.

Rosana Guardavaccaro, a financial planner at Barnum Financial Group, a Connecticut-based planning and consulting services firm, thinks schools should teach young people what to do with their income once they have started their careers.

“Getting started in my career was

not so easy, but I knew it was what I wanted to do. I learned, too, that people don’t have to wait until high school or even college to begin to become financially literate,” she said.

To help teach financial literacy, Guadavaccaro created a series of children’s books titled, “Peter Saves For A Rainy Day,” and “Peter Takes the Train.” To help keep a child interested and entertained while with teaching them financial concepts, her books were created with visuals using color and a natural storyline according to Guadavaccaro.

Everest Consulting is a management and growth strategy consulting company that focuses on advising consumer branded lifestyle companies, from Fortune 500 companies to mid-sized organizations. With over 25 years of operating and management expertise, Everest Consulting provides the industry expertise along with the strategic and operational know how to help your brand achieve its fullest potential.

Everest Consulting is a management and growth strategy consulting company that focuses on advising consumer branded lifestyle companies, from Fortune 500 companies to mid-sized organizations. With over 25 years of operating and management expertise, Everest Consulting provides the industry expertise along with the strategic and operational know how to help your brand achieve its fullest potential.

www.everestconsultingcompany.com

www.everestconsultingcompany.com

Actionable

Breakthrough Strategies

by chris hobart

3 Questions to help find a financial advisor you can trust

When it comes to financial planning, most Americans take a do-it-yourself approach.

In fact, various surveys and studies over the years have shown that anywhere from 60 to 70 percent or more don’t have a financial advisor.

But does that mean the

remaining minority who do hire someone are more confident about what the future holds for them financially?

Maybe. But maybe not.

Most of those people say they don’t completely trust that their advisor is always acting in their best interests, according to a poll by the

American Association of Individual Investors.

That distrust could even be part of the reason some people decide to forgo using an advisor at all.

“People see headlines about shady practices that exist in the financial word, and as a result they become leery of working with any financial advisor because they no longer know who to trust,” says financial Chris Hobart, a financial professional and financial

commentator.

It was the shady practices of one such advisor that put Hobart on the path to a career in financial services. His grandmother placed her trust in an advisor who “advised her right out of her life savings,” he says.

“I think it’s important for those of us in the industry to demand more of ourselves, because investors deserve more from us,” he says. “We must call out questionable

practices when we see them.”

But what can the average person do to improve the odds that they are working with an advisor they can trust? Hobart suggests a few questions to ask yourself about the person you rely on to handle your finances:

Is your advisor honest when discussing how they are paid? Financial professionals are paid in a number of ways, but the financial industry hasn’t always been forthcoming about compensation, Hobart says. Some are paid on commission. Some charge fees. Some work based on a combination of commissions and fees. It’s important to know just what you are paying for the services. “Clients often are hesitant to ask how their advisors make money,” he says. “Don’t be. A trustworthy advisor will have an honest, open conversation with you about this.”

Does your advisor encourage questions? “Any good relationship is built on open, two-way communication,” Hobart says. “It’s your money.

You deserve to know exactly how it’s being invested and why.” But a good advisor will do more than answer your questions, he says. They will also proactively provide information to your about your accounts, whether you ask or not.

Does your advisor know you?

Everyone is different, with their own goals and dreams about the future. “The right financial plan for you isn’t the right plan for anyone else,” Hobart says. “Your advisor should offer personalized financial planning that fits your life, not cookie cutter advice that’s the same for everyone.”

“Now, more than ever, investors are demanding honesty from not only individual advisors but also larger financial institutions,” Hobart says. “There is no longer space within the industry for financial professionals who are motivated only by their own financial gains.”

About Chris Hobart

Chris Hobart (www.hobartfinancialgroup.com) is CEO and founder of Hobart Financial Group. A graduate of the University of North Carolina, where he earned a bachelor’s degree in business administration, Hobart is a nationally-recognized financial commentator, an Investment Advisor Representative (IAR), and a licensed insurance agent. Senior Market Advisor Magazine named Hobart one of the nation’s top independent financial advisors. He’s been a featured guest on CNBC and Fox Business and a regular guest on WCNC’s “Charlotte Today.” Hobart has also appeared in The Wall Street Journal, Reuters, The Associated Press, MSN Money, The Charlotte Observer, Men’s Health, Kiplinger, Market Watch, The Street, The New York Times, USA Today and Forbes.

cover story

by joe innace

No 1

By Joe Innace

PEOPLE& PROCESS:

The Wings Beneath Falcon Wealth Planning

Falcon Wealth Planning took flight in early 2015. Flash forward seven years and the Ontario, California financial planning/tax specialist firm is ranked among the fastest growing registered investment advisors (RIAs) in the country.

Especially, since December of 2021, Falcon Wealth Planning has been soaring. Consider:

• Ending 2021 with nearly a half-billion dollars in assets under management (AUM) Falcon Wealth was recognized on Citywire’s 50 Grower’s Across America list for 2021, noting it as one of the fastest-growing RIAs in the state of California.

• In mid-May, Falcon Wealth Planning was cited by Arizona State University’s Sun Devil 100 Class of 2022. The program is an annual awards ceremony that honors the fastest-growing

businesses that are owned or led by ASU Alumni. For the first time in the Sun Devil 100 history, Falcon Wealth Planning became the only business to win this award twice. Gabriel Shahin, CFP® and Falcon’s CEO, graduated from ASU’s W.P. Carey School of Business in 2006 with a degree in business administration.

• Less than a week later, on May 20, Avantis Investors honored Falcon with the opportunity to tour the New York Stock Exchange and attend the Closing Bell ceremony. Although he was not standing on the podium, Shahin was overjoyed to be there. “It’s too big of a deal to miss,” Shahin said at the time. “Ringing the closing bell is a bucket list item for almost everyone in the financial industry. It’s definitely one of mine. Falcon will get

there one day.” He was joined by several of Falcon’s CFPs to represent the company.

• The very next month, Falcon Wealth learned it was a finalist in WealthManagement.com’s 2022 Industry Awards as a Rising Star of the Year. The 2022 Wealthies marked WealthManagement. com’s eighth annual awards program that honors individuals, organizations, and companies that help financial advisors create excellent outcomes for their clients and build better businesses. Out of a historymaking 1,000 nominees, Falcon Wealth Planning was chosen as one of the 225 organizations to be selected as finalists.

• Also in June, Falcon Wealth Planning’s CEO and founder Shahin was cited as a Leader of Influence in the LA Business Journal. He was nominated in the category for Wealth

Managers and was selected based on his impact on the profession and within the Los Angeles community.

The LA Business Journal article described Shahin as the ‘heart, soul, and visionary’ of Falcon Wealth, but he is the first to credit his team of financial professionals.

“This is not the Gabriel Shahin show,” he told Advisors Magazine in a recent interview. “Even though I founded the company and initially ran the company, this is not Gabriel Wealth Planning. It’s Falcon Wealth Planning and everyone is empowered,” Shahin added. “I consider every advisor as a CEO, and they are empowered to make many decisions on their own.”

In just a few short years, Falcon has increased its staff from 11 team members to 32 and set up shop at a new location between LA and San Bernardino, which has plenty of room to expand.

The company may be headquartered in California, but its

client base is nationwide. And just recently, Falcon Wealth established a foothold in the Chicago area with an eye on creating a Midwest hub.

“Collectively as a team we set high goals for ourselves,” Michael Jensen, CFP® and managing partner, said. “We are a growth firm and still in the early innings of reaching our potential. We want to be intentional about our growth without compromising our mission and service offering to help our clients,” he added. “We will continue to invest heavily in our people and processes, and we have high hopes for 2023.”

Case in point: David Smith, CFP® and PhD — who is heading the Chicago initiative — is one of the people Falcon is banking on. “Falcon had the most exciting growth potential out of all of the companies I considered working for,” Smith said. “I am sure we will do big things as we continue to grow our outreach nationally.”

A no-nonsense, straight-shooter advisor, Smith says his aim is to build an office space in the Chicago area

“You work too hard to let your finances keep you up at night.”

- Gabriel Shahin

R/L: Min Joseph Song CFP®, Michael Jensen CFP®, Gabriel Shahin CFP®, Zackary Tyler Royce CFP®, Kevin Mayo CFP®

where people know they can access true fiduciary advice regarding their finances. “David is so dedicated to his work, I think that he will help the company reach a national network of clients,” Shahin said.

A team of advocates

Falcon’s trademarked tagline is ‘Planning Made Simple.’ And each member of the staff will tell you they take pride in being their client’s financial advocate. In short, they strive to organize and simplify a client’s financial life.

“As a fee-only, true fiduciary, we have our client’s goals and needs as the core focus of our company,” Mariah Trujillo, operations manager, said. “We build the relationship with our clients to provide clarity, education, and make the financial planning process simple.”

She noted that Falcon’s mission is to provide clients with the tools they need to enjoy their wealth now while also planning for their future.

“We do this by creating and implementing strategies to set up our clients on the path to wealth accumulation, retention, and tax reduction,” Trujillo explained. “Each client receives customized advice from qualified Certified Financial Planners.”

In fact, Falcon’s client-first philosophy is adhered to even before a prospect becomes an actual client.

“Prior to agreeing to become a client, a prospect is given two free assessments in order to understand their financial well-being and how Falcon Wealth can provide them with assistance to navigate through their financial situation, if they so choose,” Ray Bartolome, COO, told Advisors Magazine. “Our assessments are given at no cost because we believe that our clients and prospects find value and understanding in what it means to have a financial plan established with no strings attached,” he explained.

“This client-centered approach

grasps the definition of a fiduciary as we serve our client’s best interest by both managing their financial needs and handling their service expectations,” Bartolome added.

The foundation of the freeassessment phase is education.

“We know that there is a ton of jargon out there in the industry and we know how it’s used and understood by others in our field,” Jordan Mayo, marketing coordinator, noted. “Our goal is to help bring our clients up to speed.”

She said Falcon Wealth will never just swoop in, take clients’ assets and fly off. “Everything that happens in their accounts is their decision,” Mayo said. “We’re simply the narrated guidebook on how to get where they wish to go in their retirement.”

She added: “It’s part of the reason why we offer our free assessment with no obligation; this is when prospects will receive the knowledge and tools to make the best-educated decisions with their finances.”

After, prospects can decide to move forward on their own or should they express interest in getting more help, Falcon Wealth’s advisors are happy to step in and accompany them on their journey.

And of course, everyone’s journey is different.

“The way we start the process is a full meeting of listening to the clients’ goals and where they are currently at in achieving those goals,” Zackary Tyler Royce, CFP® and senior financial planner, said. “Our process is a lot different than a typical investment manager,” he continued. “We are truly comprehensive; we believe in helping in all aspects of our client’s life, not just investments.”

Royce emphasized that Falcon Wealth enjoys collaborating with clients who are willing to learn.

“You don’t need to have a financial background to meet with us,” he

“As a fee-only, true fiduciary, we have our client’s goals and needs as the core focus of our company.”

- Mariah Trujillo

said. “We start with the basics and work up from there—from someone that has never balanced a checkbook to those who have done the bookkeeping for the household for years.”

Royce added: “We love the opportunity to help; just as long as you are ready to learn and implement.”

Taxation expertise

Helping clients solve three risks for retirement is a mainstay at Falcon Wealth. It views risk as a triangle — the sides being market volatility, individual longevity and the impact of government programs, laws and regulations.

“Most retirees solely focus on market risk while underestimating longevity risk and government risk with potential changes to the tax code and entitlement programs such as Social Security and Medicare,” Managing Partner Jensen said. “We stress test our financial plans for longevity and events such as long-term care, which can have a devastating impact on financial independence later in life.”

Jensen also pointed out that the power of compounding taxfree inside of a Roth IRA account is often underestimated and can serve as a longevity hedge as

part of a comprehensive planning approach.

“Investments should be diversified to incorporate a blend of taxable, tax-deferred and tax-free components to optimize a tax-wise portfolio,” Pete Gautreau, CPA and managing partner, elaborated.

He stressed that individuals meeting a financial planner for the first time should ask what level of tax advice is directly available to clients.

“Important questions would include,” Gautreau said, “‘Do you have easy access to a trusted CPA?’ Better yet, ‘Do you have an inhouse CPA that will participate in developing my financial plan? Can I reach out to him at any time with

questions or concerns.’”

CEO Shahin emphasized that the firm’s niche is at the intersection of tax planning and wealth management.

“Peoples’ biggest expenses, whether they know it or not, are their taxes,” Shahin said. “And a lot of investment strategies are based on a client’s tax bracket. Yet, very few people insist on having their financial advisor look at the most important piece of their financial documentation, which is their taxes.”

The taxation side of the wealth equation is a big part of Falcon’s DNA. “We tackle taxes head-on as part of a financial plan,” Shahin said. “Our industry says, ‘please consult

“WE WANT TO BE INTENTIONAL ABOUT OUR GROWTH WITHOUT COMPROMISING OUR MISSION AND SERVICES OFFERED TO HELP OUR CLIENTS. WE WILL CONTINUE TO INVEST HEAVILY IN OUR PEOPLE AND PROCESSES.”

— MICHAEL JENSEN, CFP®

L/R: Jagruti Ravindra Sawant, Michelle Haddad, Mariah Trujillo, Jordan Mayo

with a tax advisor.’ Well, we are that tax advisor. We look at the taxes, we give advice. We are the ones you should be talking to.”

Falcon Wealth, in fact, has a sizable number of clients from the tech-giant world who work for companies including Google, Apple, PayPal and others. Savvy tax planning is vital to such clients employed by industries where restricted stocks and incentive stock options are commonplace.

“Business owners are another huge client base for us, given our strength in tax planning,” Shahin said. “Once a business owner sits down at the table with us, it’s over— they are our client.”

As noted earlier, Falcon provides two meetings at no cost. “These are usually two, hour-long meetings— or whatever it takes,” Shahin explained. “Once a prospect becomes a client and we start to develop their own financial plan, the minimum fee is $5,000,” he added.

As a fee-only advisory firm, Falcon Wealth will not charge commissions, will disclose all fees fully, and will work as a fiduciary to assure that financial plans are in the client’s best interest. “The minimum for assets under management depends on the situation,” Shahin noted. “But generally, our business philosophy is we should be making a minimum of $5,000 annually.”

Education is valued highly at Falcon and the subject of taxes also serves as a perfect example of learning in action.

“We literally walk clients through their tax return and every single line item,” Shahin said. “We might be recommending a complex tax strategy so it’s important to take 20 or 30 minutes to explain it. And we’re all drawers here—no slick brochures. We have a yellow notepad or we’re on Zoom with the whiteboard and we draw it all out for them.”

By delving into such core principles clients feel empowered, according to Shahin.

“But most importantly, they understand; And that understanding is a breath of fresh air, because most people in our industry don’t have the time to do that or don’t care to do it,” Shahin said.

Process and people

Shahin takes enormous pride in both the team he has assembled and how they’ve grown. And he’s also always looking for the next generation of CFP talent.

“Working here is an absolute fire hose for people who want to be the best in the profession,” he said. “Any CFP thinking about joining our company should know that we commit the resources and invest so much into our CFPs,” Shahin beamed. “If you’re a CFP with only a few years of experience, after one year at Falcon Wealth you’ll be a more competent financial planner than 95% of those in this industry.”

Ask Shahin the secrets to Falcon’s soaring success of late and he points to two: its people and the company’s focus on process.

“Our people are really great at what they do,” he said. “And they are not your typical sales types; more like engineers with analytical minds to help clients find their unique solutions.”

Shahin added: “The other secret sauce is our tight process. We are very methodical in how we have our first meeting, second meeting, review meetings—and all the elements that go into our planning process.”

That process, however, is flexible enough to be a work in progress.

“A great business plan today can be a bad one tomorrow,” Royce, the senior financial planner, added. “You need to always question your process for you and your clients.”

He noted that the pandemic period of 2020-2021 was a revelation -- in a good way -- for both Falcon Wealth Planning and him.

“There were some things that we could not have imagined,” Royce said, “which only occurred because we have constantly questioned the best practices for our business.”

And by so doing, Falcon Wealth Planning continues on its a highperformance flight path.

For more information, visit: www.falconwealthplanning.com

In a world of fast food and one-size-fits-all sensibilities, how often does something feel made especially for you? The "Made for You" section celebrates those items that are created with such high quality of hand workmanship and degree of customization that they become individual to you. In each issue, our editors will endeavor to bring you special things from anywhere on the globe, choosing them solely on the basis of outstanding quality. Our goal is to give you guidance on the best of everything.

4 BOWLUS TRAVELR TRAILER — BEST LUXURY RV

The best protection against power outages is a home standby generator. When the power goes out, day or night, a home generator takes over within seconds, keeping all your important appliances including your HVAC system, sump pump, refrigerator and freezer running - Home standby generators such as Briggs & Stratton connects to a natural gas or liquid propane. BriggsAndStratton.com

The Superocean Héritage II takes its name from Breitling’s original 1957 Superocean line of watches—iconic diving timepieces that have been catching the attention of watch enthusiasts for decades now. The ceramic bezel is unidirectional to ensure nothing messes up your measuring. And the sapphire crystal is domed and antireflective. It’s available in black as shown above, or silver blue. mrporter.com

Step into your Bowlus travel trailer for the first time and prepare to feel a little overwhelmed by all of the possibilities running through your mind. Wake up in the Zen Master Bedroom and make a coffee using the two-stage water filtration system. You can even bring a furry friend along, thanks to this camping trailer’s seamless features: remote temperature monitoring, bowls that slide out seamlessly from a drawer and a coordinated pet bed. bowlus.com

5 250 GTO — ANTIQUE FERRARI

In 1964, the 250 GTO won the Tour de France Automobile – marking the ninth year in a row that Ferrari won that race. Only 36 of these cars were made between 1962 and 1963; the specific Ferrari that’s the most expensive in the world, at an unbelievable $70,000,000 price point, was victorious not only in the Tour de France, but it also placed in the Le Mans. www.ferrari.com/en-US

6 HEATNGLO — PRIMO

Some men’s jackets are just designed to look expensive. Some of them might look incredible but not actually do the job of keeping you warm. Fortunately, Loro Piana’s Cashmere-Trimmed Shearling Bomber Jacket fulfils both parts of the deal: not only does it look soft and suave, but it’ll actually keep you just as warm as its buttery material would suggest. In fact, if there’s one brand that breezily guarantees top-notch quality it’s Loro Piana, thanks to its textile specialism. us.loropiana.com

SEE-THROUGH FIREPLACE

Electric fireplaces like SimpliFire Electric Fireplaces by Heat & Glo can be operated with or without heat, so you can enjoy the ambiance year-round, even during the hottest months. On chilly days or cold evenings, if you want some heat, turn on the electric fireplace so you can get quick warmth in the spaces where your fireplace is located, often a living area of the home. heatnglo.com

3 LORO PIANA BOMBER JACKET CASHMERE-TRIMMED SHEARLING

By Ty Young, the CEO of Ty J. Young Wealth Management

5 Tactics to Boost a Retirement Strategy

Setting up a well-designed retirement strategy is not easy. While many people rely on their company 401(k)s or IRAs for retirement income, the reality is that simply contributing to these vehicles is often not enough to save for retirement.

To make your investment dollars stretch further, consider these 5

Most employers who offer a 401(k) or IRA to their employees also match their contributions up to a certain percentage. For example, an employer may provide a matching benefit of 5% to employees who contribute 5% or more of

their salaries to their 401(k). This means that they will match your contribution up to the 5% amount.

If you’re able to, make sure that you at least contribute the minimum amount to obtain the matching benefit from your

tips:

employer. This benefit is literally free money that is put into your retirement account. It’s also free from IRS taxation, as it’s not included as part of your regular income for the year.

Everyone has a different risk tolerance when investing towards their retirement. A mix of investments can be used to achieve high returns while also incurring low fees. Some of the most common types of investments that can potentially result in high returns include:

Stocks

Stocks are issued by corporations that are seeking to raise money by selling equity shares. When you buy a stock, you purchase a percentage ownership in the company.

Over time, you’ll receive dividends from the shares that you purchase. When you finally decide to sell your shares of stock, you may find that they have significantly increased in value.

This growth allows you

to realize a return on your investment. However, realize that the value of a stock may just as easily decline in value. If you decide to hold on to your shares over the long term, make sure you pay attention to the company’s activities and the value of your shares.

ETFs

ETFs are traded on a market exchange just like stocks. However, they usually consist of a variety of investments, such as stocks, commodities, or bonds.

One ETF may bundle fractional ownership of a number of companies or bond types. While they sound similar to mutual funds, they are different in that they rise and fall in value throughout the trading day.

ETFs can offer all of the benefits of owning stocks but

are less expensive to purchase than purchasing shares in each individual company or bond since doing so would result in individual broker fees and commissions.

Fixed Index Annuities

A fixed index annuity is an agreement between an investor and an insurance company. When the investor makes either a lump-sum purchase or agrees to make regular payments to the insurance company, they are able to receive regular disbursements when the annuity comes into force.

Fixed index annuities are generally tied to a market index, such as the S&P 500. This connection means that your distributions will be determined by the market performance and can result in enhanced returns.

MANAGE CASH FLOW

Another way to maximize your portfolio return in retirement is by minimizing how you live today. This approach requires you to live below your means.

To live below your means, you can reduce your expenses in any area

— housing, transportation, food, or entertainment. For example, you may purchase a used car with cash rather than purchasing something brand-new that has a monthly payment. The money that you save by living below

your means can be used to invest towards your retirement. If you have a credit card or other revolving debt, you can use the extra money to pay it off quicker.

Make sure that your retirement portfolio contains a mix of investments that can protect you in the event of a market downturn but also allow for growth. Investing in fixed index

annuities is a great way to achieve a balanced portfolio. These types of investments allow for regular distributions during retirement. You’ll receive a regular minimum

payment when the annuity begins, but the value of the distribution can increase since it is tied to the performance of a specific market index.

Finally, you’ll want to minimize the taxes that you pay throughout your career and in retirement. There are a variety of ways to do this, and each person’s strategy will be different according to the income that they earn,

investments that they hold, and exemptions that they may qualify for. The best way to strategically minimize taxes is to speak with someone who is an expert in U.S. tax laws and investment

strategies. They can help you to understand the deductions you may be eligible for, as well as recommend appropriate investment strategies that are designed to reduce taxation expenses.

A FAMILY

OFFICE

EXPERIENCE

CURATED FOR BUSINESS OWNERS

If you own and operate a business, farm, or ranch, you have firsthand knowledge of how much time it takes to keep things going. The majority of business owners work more than 50 hours a week.

After years of hard work and stress, you’re probably looking forward to having the freedom to do whatever you want. To reach that point, you’ll need to sell your company or transfer it to the next generation.

Do you have a transition plan in place? If you don’t have a plan yet, you are not alone. Two-thirds of U.S. business

owners are over 50, yet 53 percent of them don’t have a transition plan— probably because they haven’t had time to get started. That’s where a wealth management firm can make all the difference. Capstone Wealth, a registered investment advisor (RIA) firm in Billings, Montana, helps business owners, farmers, and ranchers make

the transition from ownership to retirement.

“Many of our clients are approaching the single greatest financial event of their lives—the sale of their business in the next few years,” explains Mark Thomas, founder and owner of Capstone Wealth. “Our clients have created wealth through years

of determination, commitment, and hard work. We partner with them to maximize the profits from the sale of their business, ranch, or farm and help them manage the liquidity over the long term.”

Capstone Wealth provides a private family office experience to financially established families, acting as a fiduciary in addressing their risk management needs. The value of

the businesses sold by Capstone’s clients ranges from $5 million to more than $50 million.

Capstone’s team focuses on helping business owners before, during, and after the sale. Their expertise ranges from estimating the current and potential value of a business to evaluating the tax impact of the sale, mapping future cash flow, managing liquidity, preparing for unanticipated scenarios, and identifying the most effective ways to transfer wealth to family members and charitable organizations. Working collaboratively with each family’s attorneys and accountants, Capstone Wealth takes a comprehensive approach to wealth management.

Capstone’s team helps clients understand their current financial situation and implement a plan that pays attention to three crucial “buckets.” Bucket

1 is the cash flow required to maintain the client’s lifestyle after the sale. Bucket 2 covers potential “what if” scenarios so that clients will be equipped to deal with unanticipated

53% OF BUSINESS OWNERS HAVE NOT THOUGHT THROUGH A TRANSITION PLAN, EVEN WHEN TWOTHIRDS ARE OVER 51 YEARS OLD.

challenges. Bucket 3 takes care of “what’s left” in ways that will minimize taxes.

Clients often find their way to Capstone Wealth through referrals from their accountant or from other clients. They are happy with the outcomes they’ve achieved from partnering with the firm. One husband and wife expressed appreciation for Capstone’s help in managing multiple aspects of selling their company. They said, “In addition to helping us understand the valuation of our business, they recommended a few things we could do to increase its value. The buyers ended up being two of our key employees, and Capstone also guided them through each step of the sale, explaining everything and making the

process as simple as possible.”

Another couple said, “Capstone helped us understand our future cash flow with greater clarity. This clarity gave us greater confidence in engaging industry buyers based on our knowledge of what would be needed from the sale to provide for our lifestyle. After the sale, Capstone and our accountant helped us think through tax strategies, and the Capstone team shared suggestions for reducing the impact of taxes on our investments. Thanks to Capstone’s advice, we were able to use both our tax savings and some of the proceeds from our sale to fund our philanthropic wishes with confidence.”

Capstone Wealth’s experienced team focuses on delivering a family office experience

If you are interested in exploring how Capstone Wealth’s team of advisors can help you make a smooth transition from business ownership to retirement, visit www.capstoneretire. com

At Trupiano & Associates, we are dedicated to people first - you as a Family-owned business and your employees.

Our priority is to help your Family Business thrive! That means that as an Independent Fiduciary Firm, we must by law do what is in our clients' best interest. We bring our exclusive approach, expertise, and experience to help your business and your employees work in a thriving and abundant environment.

Brianna

We can help you do just that.

Do you want to attract and retain employees and build the company you've envisioned?

BY NICK VOROBYOV

CANNABIS LEGALIZATION STOKES ENTREPRENEURIAL OPPORTUNITY

How can you position yourself in this growing industry?

The legalization of recreational cannabis use is on the rise throughout the United States. In fact, five states will be voting on legalizing recreational use of cannabis in the 2022 midterm elections. If these states approve of legalization, almost half of the country will have approved of recreational cannabis use.

A “Budding” Industry with Unique Challenges

Sweeping change brings opportunity. Entrepreneurs have been ecstatic about the potential that exists in the cannabis industry, and for good reason. In the United States alone, cannabis sales are projected to grow from $25 billion in 2021 to $40 billion in 2026. The question is, how can you position yourself in an industry that presents the challenges that the cannabis industry poses?

The short answer is this: knowledge and planning. Without an understanding of what is going on in terms of cannabis legalization and the risks that come with the industry, entrepreneurs are putting themselves at risk for

failure.

“Many ‘budding’ entrepreneurs come to us with stars in their eyes, unaware of the requirements to plan, open and operate a successful business, much less a cannabis business which is far more complicated,” Nick Scalera, the founder of NJ Cannabis Consulting, a New Jersey-based cannabis consulting firm, told Advisors Magazine.

Education is Key for Cannabis Entrepreneurs

When it comes to educating yourself about the cannabis industry, there are two governing bodies to focus on that dictate the regulations for a cannabis business: the federal government and local state governments.

While history has shown that changes to federal cannabis regulations have been slow, there are some things to keep an eye out for. For instance, SAFE Banking Plus (an updated version of the Secure and Fair Enforcement Banking Act) has a good chance of being passed by Congress. This bipartisan bill would enable cannabis businesses to more easily access banking services and loans.

“I think this thing’s going to get passed this cycle, so I’ve got my fingers crossed,” said Rep. Ed Perlmutter of Colorado, who first introduced the bill in 2019, in an interview with The Hill in mid-October 2022.

The passing of this bill would certainly be exciting for the cannabis industry. However,

until the change happens, entrepreneurs should tread slowly. Cannabis is still technically “federally illegal.” However, the federal government is, and has been, taking a handsoff approach when it comes to cannabis regulations, leaving things up to the states.

As the CEO and founder of a cannabis consulting firm, Scalera said his clients often underestimate the power that states hold when it comes to cannabis regulation. However, keeping on top of your state’s policies and requirements is crucial to succeeding within the industry.

“First, they [states] can ban the possession and/or sale of cannabis. If they do choose to legalize it, they control exactly how the program will be run. Therefore, we must be aware of (and strictly comply with) their requirements,” Scalera explained.

Plan Before You Jump In

There’s no denying the excitement and potential for success the cannabis industry presents to entrepreneurs. It perhaps is a once in a lifetime opportunity, but planning is key for those looking to have success in this growing market. Understanding the different sectors of the cannabis industry and planning your operation accordingly is the way to go.

For instance, there’s the cultivation of cannabis, retail operations, and even delivery businesses for cannabis. Each of these different sectors present unique challenges that can’t be overcome without an in-depth understanding of the sector. If you’re trying to get involved in cultivation, you’ll have to learn about different soils, nutrients, and other related areas. Retail operations focus more on the experience of the buyer, from layouts to decor. Delivery businesses involve managing drivers and vehicles.

This is where that knowledge and planning as an aspiring cannabis entrepreneur shines. If you come into the market with a plan and the necessary knowledge to succeed, the opportunities are plentiful.

By BPT / Advisors Staff

online higher education

Increasing tuition and mounting student debt is making a college degree more difficult to achieve. While policymakers are implementing debt forgiveness, nothing is addressing the root cause of the problem - traditional colleges and universities have built unsustainable cost models that can only be supported with ever increasing tuition. This leads to students believing they have no options, so they continue to willingly incur mountains of debt.

While some students choose to forgo college or dismiss the value of a graduate degree, many students are discovering a better way. One that doesn’t sacrifice the proven value of education to provide career-enhancing skills and advancement. Fully online institutions provide low-cost tuition models, largely due to lower operational costs, without sacrificing quality of education. Further, online higher education remains an affordable and attainable option for many students or working adults wanting to

advance their career paths affordably.

High-cost education is often confused with quality, especially regarding four-year or advanced college degrees. But with historic levels of student debt combined with a significant shortage of skilled job applicants, isn’t it time to redefine how we measure the worth of a college degree?

Online higher education institutions offer degrees that are significantly less expensive than traditional colleges or universities and offer substantial value and quality. A reflection of that value and quality is within graduation rate statistics where the norm for institutions is around 46 to 64 percent, according to Education Data Initiative and the National Center for Education Statistics.

The New York Times’ The Daily podcast recently aired “The College Pricing Game,” that suggested federal student aid programs, which are covered under Title IV, unfortunately exacerbate the affordability of education. In fact, one could argue that these programs have caused

the student debt crisis because they have made students and parents desensitized to cost. At the same time, these federal loan programs incentivize institutions to raise tuition year after year. Student loan forgiveness, which has been touted as a potential saving grace, is at most a temporary solution and doesn’t truly address the central issue: traditional colleges and universities are too expensive.

Tuition, fees and housing at many state-funded universities

Remains a compelling, affordable option for a degreestep on a full financial journey

range from $10,000 to almost $30,000 a year, depending on whether students are in-state or out-of-state. Including student loans and loss of income, the cost of a bachelor’s degree can exceed $400,000.

Affordable, accessible higher education solution

Fully online and nontraditional colleges and universities are filling that widening gap within the fractured education system, allowing students from all

backgrounds and financial means to achieve success.

Leading online college American College of Education (ACE) breaks the link between the cost of tuition and the quality and accessibility of education. ACE’s funding is rooted in how much it costs to deliver a quality education rather than the maximum amount of government loans accruable through Title IV.

Global insights from HolonIQ Smart Estimates are projecting online education to grow by more than 12 percent annually

through 2025. While it’s easy to directly correlate this growth with the COVID-19 pandemic, online (not remote) education has been growing for years, and there is a larger shift that needs to be recognized and addressed. Higher education should be accessible rather than exclusive and online colleges are pioneering the use of technology to increase academic quality and reduce cost. Without significant real estate and overhead expenses, these universities offer highquality education programs, from micro-credentials to doctoral degrees, at a fraction of the cost of traditional colleges and universities. With affordable programs, fully online universities offer graduates the ability to cover the cost of their degrees within the first year or two of graduating.

“ACE has an unwavering commitment to putting students first, and this involves intentional attention to their concerns from cost to quality to flexibility,” said Geordie Hyland, ACE President and CEO. “Our low cost doesn’t require sacrificing quality, and we want to be a solution to the student-debt crisis and not a contributor. At the end of the day, many of our students graduate with minimal or no debt while earning a quality education that enhances their career development and contributions to society. We hope our efforts can inspire other institutions to do the same.”

By BPT / Advisors Staff

SURVEY SAYS:

If you’re asked for names of well-known entrepreneurs, a few obvious contenders might come to mind, like Bill Gates or Steve Jobs.

A recent survey asked questions about who are the most successful entrepreneurs - revealing insights into what people think it takes to make it big.

In the new survey,

commissioned by Herbalife Nutrition, respondents were first asked to identify entrepreneurs they felt were the “greatest of all time.” Historical luminaries like Henry Ford, Alexander Graham Bell and Thomas Edison featured multiple times in their answers. Interestingly, the survey found that nearly half of the respondents (48%) believed modern entrepreneurs are more

influential than their historical counterparts were, while only one-fifth (20%) believed that modern entrepreneurs are actually less influential.

How can you identify people who are top entrepreneurs? One result is clear: from their innovations that make a difference in the lives of others.

“Entrepreneurs change our world for the better with their

What it takes to become a successful entrepreneur

out-of-the-box thinking,” said Ibi Montesino, executive vice president of distributor and customer experience at Herbalife Nutrition. “And their inventions have a great impact on our lives and society.”

Regarding today’s best known entrepreneurs, here are the top 10 names that came up in answer to the question: “Which modern entrepreneurs have

made the most positive impact on society?”

* Bill Gates (founder of Microsoft, co-founder of the Bill and Melinda Gates Foundation) - 21%

* Jeff Bezos (Amazon founder) - 18%

* Steve Jobs (co-founder of Apple) - 18%

* Elon Musk (founder of SpaceX, CEO of Tesla) - 17%

* Mark Zuckerberg (Facebook founder) - 17%

* Oprah Winfrey (co-founder of Oxygen, founder of O, The Oprah Magazine) - 15%

* Melinda Gates (co-founder of the Bill & Melinda Gates Foundation) - 14%

* Sam Walton (Walmart and Sam’s Club founder) - 13%

* Larry Page (Google cofounder) - 12%

* Ted Turner (CNN founder)11%

While many of these are household names, there are countless other Americans who make a real-life impact through their entrepreneurial efforts every day, whether they are groundbreakers in terms of building their own small businesses, helping their communities, creating something new or simply using their energy and talents to provide for themselves and their families.

What does it take to become a top entrepreneur?

The survey also asked what is most important when it comes to entrepreneurial success. The top two results showed that each entrepreneur’s personal accomplishments (24%) and their contributions to society

(22%) mattered most. And when asked what it takes to become a successful entrepreneur, the most popular responses were that it required specific character traits (19%), having one “great idea” (15%) - and a commitment to hard work (14%).

Character traits that matter

When asked to clarify what specific character traits were considered vital for being a successful entrepreneur, these were the four top contenders:

* Creativity * Intelligence * Confidence * Motivation

Perhaps the most surprising result of the survey was that nearly half (45%) reported having their own aims to become an entrepreneur - and 42% of them said they believed they had what it takes to be successful in that endeavor, claiming to have a “big” idea that they could turn into a successful business. Perhaps the secret for entrepreneurial success is combining their ideas, creativity and their passion, with hard work, in addition to gaining strength from the support of family, friends and colleagues.

“While there are numerous character traits that go into making a successful entrepreneur, the ones we work with, day in and day out, all have a common theme: they demonstrate a commitment to hard work and surround themselves with a supportive community,” added Montesino.

Give Your Employees Financial Education, And They’ll Give You More Productivity

Recent studies all point to one conclusion that impacts employers across the U.S.: The majority of employees worry more about their finances, now more than ever. That stress makes them less productive today, and every day. In fact, 15.3 hours of productivity and engagement are lost by each financially-stressed employee each week. And that affects the bottom line.

The Harmonize™ Retirement Planning Program partners with Vanguard® to customize retirement plans to fit the needs of each individual at every level. To find out more, contact Pat Harmon at harmonizefinancial.com.

The sooner you start, the sooner your workforce gets more productive.

Small Business Retirement Plans

HarmonizeFinancial.com