A Wiser Retirement®

175. Passing Down Generational Wealth

• Wiser Wealth Management • Episode 175

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Ever wondered how wealthy families preserve their fortune for multiple generations? On this episode of A Wiser Retirement™ Podcast, Casey Smith and Missie Beach, CFP®, CDFA® talk about ways to ensure you can successfully pass down your assets to create multi-generational wealth.

We kick off our conversation by understanding the concept of generational wealth and how important education and communication are in ensuring a successful transfer of wealth to the next generation. We share the inspiring story of a client who sought our help to protect their parent's legacy, and we delve into how you could be a catalyst for building wealth in your own family.

As we navigate the complex journey of generational wealth creation, we discuss how establishing a trust can insulate your wealth from external threats. If you've ever faced failure on this journey, don't worry! We chat about the inevitability of setbacks and the wisdom they impart. It’s all about learning and growing. Together, we look at setting realistic goals and persevering, because building generational wealth is, at its core, a labor of love.

In our final segment, we concentrate on strategies to preserve multi-generational wealth. From the importance of independent trustees and tax planning to the intricacies of succession planning for a business, we cover it all. Having the right team of advisors in place is vital, and we emphasize how essential they are in ensuring a smooth transition of wealth. We highlight how pre-nuptial agreements and trusts can be powerful tools to safeguard your wealth. So, tune in for an enlightening discussion that could inspire you to start building your own multi-generational wealth and legacy.

Podcast Episodes Referenced:
- Ep 152: 10 Tax Planning Strategies for High Net Worth Individuals
- Ep 128: Transferring Wealth from Generation to Generation
- Ep 117: What is Generational Wealth & How Do You Preserve It? With James E. Hughes Jr.

YouTube Videos Referenced:
- Asset Protection for High-Net-Worth Individuals
- Building a Legacy BEYOND Financial Wealth

Learn More:
- About Wiser Wealth Management
- Schedule a Complimentary Consultation: Discover how we can help you achieve financial freedom.
- Access Our Free Guides: Gain valuable insights on building a financial legacy, the importance of a financial advisor for business owners, post-divorce financial planning, and more!

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- A Wiser Retirement® YouTube Channel

This podcast was produced by Wiser Wealth Management. Thanks for listening!

Hadley:

Welcome to a Wiser Retirement Podcast. Before we get started with the episode, I want to tell you about a new ebook available on our website called Buyer Beware why do they keep trying to sell you that annuity? This ebook covers the various types of annuities, negatives to owning annuities and better investment alternatives to annuities. To download this ebook, you can click the link in the episode notes or go to wisere investorcom and you'll find it at the bottom of the page. Now on to today's episode.

Casey:

Welcome to a Wiser Retirement Podcast. We believe the best financial advice should always be conflict free. I'm your host, casey Smith, guiding you to financial freedom. Today is my co-host, missy Beach. Hey, missy.

Missie:

Hey Casey.

Casey:

So today we are going to talk about ways to be growing and passing down generational wealth. I feel like we've touched on all different angles of this topic. This is episode 175,. Missy, that's a lot. We've covered just about everything at this point, but I'll reference some podcasts here in the past. Well, I'll go to reference one is if you really wanted to learn about passing on generational wealth and how to do that, we have a great one with James E Hughes. Brad and I did that interview, episode 117.

Casey:

What is generational wealth and how do you preserve it? James Hughes has written multiple books on the topic. So we really focus in on passing down generational wealth and how to do that. We'll touch on some of the highlights of that here. But I feel like a lot of clients today that we're meeting with have really good incomes and they're doing really well, and I think they are thinking about hey, I want to make sure our kids are taken care of, that they have the ability to be educated in almost any school they want to go to. Maybe we can start a fund for them, because you think about you know, I don't know what your first house cost, but my first house was, I think, less than $100,000. And you know, for the young people joining our firm now to buy a house around here, probably at least a half million.

Casey:

Oh yeah, and you got to put down you got to be putting down 20%, but even just 10%, to come out of school and then have $50,000 that you got to put down on a home. That's tough, that's crazy.

Missie:

Yeah, times have changed.

Casey:

It's the Californians come here. So you know, having that head start, you know, and I'm sure there might be some listeners that say, well, I did this on my own, they can do that on their own, but that's not how you build generational opportunity, generational wealth where something's passed down. So maybe we should start by defining that. How would you define generational wealth, missy?

Missie:

Well, obviously you hear generational wealth and I think the one name that comes to mind is Rockefeller wealth, and that's the trap that people fall into, thinking like, oh, I don't have generational wealth, I'm not a Rockefeller, but it's not just like the Uber wealthy that have generational wealth. I think really, the base definition is if you're not going to spend all your money during your lifetime and you're passing some on to the next generation, well hey, that's generational wealth. So any family, any client that has more than they could reasonably spend during his or her lifetime has generational wealth and, I would argue, a duty to impart his or her wisdom to the next generation and how that money should be spent or saved or used to better the family, the business, the world, an educational institution, a cause, just whatever it might be.

Casey:

And accumulating to that point is something that if you say, man, I want to stop, kind of like living from generation to generation, then if you're a young person listening to the podcast, you have the ability to do that and it's called saving early, because you have that ability to compound even it's just a few thousand dollars a year that you're putting into the side account for the next generation.

Casey:

You're able to do that, but you have to do that and also teach about financial literacy, money management, right. There was a study here that TIA did. 61% of people in the study could identify, like a loan slight, how to borrow money and pay it back, but beyond that they didn't. They didn't do so good like understanding the risk related to that, understanding a risk reward. They didn't test as well or have as much knowledge about about that.

Missie:

And I think that's sad because if you go way back, go into the way back time machine, you have cavemen. Okay, and during the time of cavemen, like nobody had secret bank accounts.

Missie:

No one was uber wealthy but, like from that time period to today, like some men and women figured out how to accumulate wealth and to pass on generational wealth. So there's no reason why someone young and in the accumulation mode can't be the one in their family to begin accumulating generational wealth. So that goes back to what you just said to the young people out there like, okay, be that person, be that change agent in your family to begin the accumulation of generational wealth and you be the impetus and you get to decide, like, what it means to you and the people around you in your world.

Casey:

Yeah, and but there's other ways you can. Well, it's about education when, especially when they're young. But then having family meetings and telling a story and communicating about this is what my wishes are and this is what I would like for you guys to get on board with, and I would think most of the time, that family members are willing to do that. But we've had. I came here. Which client was? I just remember the story. Not that we would say their name anyway, but I remember a new client that came in and said well, this is, this was from my mom and my dad and they worked really hard for this and I just want to make sure I protect it for the next generation. And I noticed they had other siblings. I said, oh, do your other siblings have advisors that they're using? And she said, oh, no one booked private flights for like five years everywhere he went and all the money's gone. I was like man, how sad is that? And so there are.

Casey:

There are trust that you can set up to help protect from certain things like that, and James Hughes's book. When he talks about generational wealth. He talks about the ability to create. Basically, you eliminate the banks, so this is obviously bigger. You sold a business or something happened and and so you'd have. So I have one sister, so maybe she and I were, we paired together, and we put money 5050 into this, some type of a of a of a trust account that is. Then they are for one single purpose and that's loaning money to the family. So you get super low interest mortgages. You get someone who wants to start a business. They come and pitch it to the family and the family says, okay, I think we can, we can help you. You know, start that.

Casey:

And so you know and in his book he also talks about a family back in World War II that the dad sent the kids to different parts of the country before World War II, started to create banks Because they were really, they were a banking family and they're really good at creating banks. And only one of those banks ended up surviving after World War II, because Europe is so decimated that you know, most of those banks didn't survive. Obviously, everything's in love. It was in rubbles, right so. So in the end that one branch I believe it was maybe in Australia was unable to kind of prop up the rest of the family and continue that generational wealth. So it's it's it's thinking bigger than yourself, and I think in today's society that's tends to be a little harder, especially when things are so expensive now. But for you know, we're not really talking this podcast probably to everyday Americans. We're talking to people who either want to make a change in their family or they already have. They've created businesses that will generate this wealth for future generations.

Missie:

Yeah, how did expand outside your own footprint and impact others?

Casey:

Um, so you know, I think step number one is always understanding that you're always building towards something and setting goals. And so you know, my kids roll their eyes at me, but I make them. My son's really obviously into golf we've talked about this in the past but every year I make him write down what his goals are for this, for this. This year, my daughter's an equestrian and I'm like look, we're not driving to horse shows just to drive the horse shows for the fun of it. We go to horse shows and have a purpose. And so I want you to write down what your goals are, where you want to be on 1231, 23. And then every decision that we make will be based off of. Does that help us achieve our goal? And it really cuts down a lot of the Amazon purchases for the barn. Yeah, because she has to. She could buy stuff on Amazon. I'll pay for it, but it has to come through approval, through me. And then my comment is always how does it achieve? How?

Hadley:

does it help achieve our goal?

Casey:

Right so um, one of the horses keeps uh stepping on his own feet, and so he ripped off a shoe yesterday. Now he's like lame for like a week until he, you know well, you can have covers put on like their feet. I don't know exactly term, but that's a good purchase. I'll pay $17 for the hoof covers because he's done this twice now.

Missie:

Oh, second time.

Casey:

We can't go run a show A lame horse, so that makes sense, right? $17,? What's it's been? It's the same thing when it comes down to setting your own personal goals, like what are your career goals this year? What are your family goals this year? What is it you want to accomplish? And and does that? Does that meet that purpose? Right?

Casey:

So, in your business, if you're growing a business and you want to liquidate it someday, you know what is the purpose. That's a great opportunity to create the trust that you need and funnel assets into the next generation. When something like that happens Um, so there's. You know, financial success is intentional that's the theme of our podcast and so this stuff doesn't just happen by accident. You might be born into it, and that seems a little more like okay, it's the lottery, right? True, if you're the person creating the wealth and you want to change your generational trajectory, then it's a, it's a, it's a purpose, and you don't have to be a rock and file to do it. You don't have to own a business to do it, you can just be a really good saver.

Missie:

Exactly. You know, while financial success is intentional, I think families need to realize that it's not always a positive outcome and during these family meetings, talk about your success but also talk about your failures and what it is that has come out of that, and maybe talk about amongst yourselves like how you could better address that the next time and what it is that you have learned from that and how you can make yourself better. Because I feel like in a lot of highly successful families, like the failures just kind of get swept under the rug Like oh, no one really saw that, did they you?

Missie:

know, that didn't happen. But when you're passing down generational wealth, I feel like you have a duty to yourself, to the family, to the money, to do what's right and to address what went wrong and to optimize everything and don't be afraid or ashamed or upset that something went off the rails, but like that's your biggest chance to right a wrong and to figure out hey, like we didn't know everything, but let's figure out how to fix it from here. We're smart people.

Casey:

Right.

Missie:

And so that takes away the arrogance out of a lot of it, and that's the biggest stereotype that outsiders will think about generational wealth is like oh, all these people are so arrogant can't admit that they're wrong about anything. So I think, coming at it from a humble perspective and knowing, when you know, maybe we weren't right on that call, so this next time we'll approach it a different way.

Casey:

Yeah, the you also create had to create a sense of a strong family unit for that to happen. And what I see a lot of times is the kids are kind of pitted against each other. Maybe it starts off with just time you want time with mom and dad and then maybe they're not getting that, but ultimately it comes. It translates into dollars as they get older. It's like they're owed that for some reason, and it's a sense of unity where everyone in the family is working together and the end of one successful, then either they're all successful or they're happy that the other one is being successful. Because you're going to do different things. I mean, everyone's going to have different interests. There may be some people in the family can generate more income than the other, but that's not. That's not what it's really about. And once you establish that multi-generational asset which we should probably talk about what that looks like Then that kind of supports everyone in the group equally. So on that note, I think it's not just stocks and bonds.

Casey:

I think so many times we listen or read articles that people have written from our industry and they always assume it's the money's in their company. Right, build multi-generational income with whole life insurance. That's not going to happen. Build multi-generational income with my mutual funds or my stock picking or what have you, and we were definitely not self-serving in that manner. But I see it as a multi-prong approach.

Casey:

And if you have a family business, it's building successful business. So maybe it's hiring a business coach to really help you understand how to run and operate and scale a business. Most people can run a business but they can't scale it. That's a very small percentage. It could be taking the profits from the business. So let's say you have 20, 30, 40% profit margin. Where does that money go? Because you're probably already paying yourself a salary, so the profit margin has to go somewhere. So maybe that's in a vacation property, which maybe that vacation property gets traded out for another one or multiple ones, and so those properties will continue to grow in value. Maybe they generate income because they're out there on the rental market. So those are assets can pass down and held by the family.

Hadley:

Correct.

Casey:

You know, imagine it's harder to do that now, but you know, 30, 40 years ago you could pick up rental homes for, you know, 50 to 80 grand. Right, you were the slumlord, yeah, but still you know, accumulating that. There's a lady involved at Berry College, one of the trustees. I only met her a handful of times, but I know people who know her well. I think she has over 100 rental properties, like in Floyd County alone. What a great way to pass on generational wealth, because that's all at a very low debt or if any debt, yeah. So that's all income being passed on to the next generation.

Casey:

And then obviously you still have to have liquid assets. You can't have all your money in your business, you can't have all your money in real estate. You got to have enough on liquid assets to be able to maneuver. So obviously a trust account that's well diversified can generate, you know, 3, 4% a year very easily today, and that's not even taking the account growth. And so that's, those are assets can be passed down.

Casey:

So it's kind of those three areas I feel like is what you're looking to build to then send to the next generation and then how you're going to do that is really multiple ways, but number one and we've said this on many podcasts is you have to tell your story. You have to create a sense of my dad started this business and he was never home. He worked all the time, but he created this for our family and it's a sense of legacy for us and we're going to maintain the business and maintain these values. Or the business was liquidated and now we own these properties. When we have this portfolio and we're going to, we get an income stream, but the principle is always protected. Yes, that's that's the kind of story Did you want to? You want to be proud that we're legacy? Yes, correct.

Missie:

And in fact I was just talking to clients this morning who had a recent inheritance and you know they were worried about doing the right thing and this and that, and I said it doesn't matter. You know we are going to put together a plan and you are using the inheritance from your dad to carry on. You know your best life and your dad, I'm sure, will be happy with whatever it is that you decide to do that's going to make your plan work out the best for the rest of your lifetime.

Hadley:

Right.

Missie:

And it's you know, this special gift that he's provided you with that's going to give you relief from your normal life in this rat race, and this legacy that he's bestowed upon your family now gives you the financial freedom to have choices. You know before it might have been this, you know more prescribed route towards a traditional retirement. Now you know you've got more years on your side, more spending on your side, and it's truly a gift and there's not going to be wrong answers. It's just going to be how you go about finding your path.

Casey:

Right, exactly A lot of times with inheritance I try to figure out ways to get like real estate paid off, because I feel like that they can actually see it.

Missie:

Yeah, like you know that this house is paid off and it's still appreciating value.

Casey:

It's not like you spent it.

Hadley:

Exactly.

Casey:

What I hate doing with it is having to eliminate debt. Oh, the credit card debt Right, because you're never going to, never going to really get that back.

Missie:

And it might come back.

Casey:

It might come back. Yeah, exactly. Obviously that's not what our target audience is doing, but but yeah, that's always sad, I feel like to have to do it, but but you have to at least give it a shot. And I give him a good lecture.

Missie:

That's all you can do, that's all you can do, All right.

Casey:

So you know there's other ways to preserve this, and this is where it gets more into estate planning. But it all starts with the story and your legacy and it's being passed down from generation to generation. The second part is setting up the structure right so you can just divide by three. Maybe you have three kids, you divide by three. He goes with three kids and you told your story and that's important. But if you have significant wealth, you really need to go a step beyond that.

Hadley:

Oh yeah.

Casey:

And that's to creating the right kind of trust. And there's multiple trusts that you can try to Navigate through them. We could do five podcasts just on the various trusts and how to set those up.

Missie:

Yeah, you know, I'm even of the opinion now. I just worry about these kids inheriting substantial sums of money really at any age, even adult kids. With all of marriages gone wrong these days and lawsuits and everything that, I'm kind of recommending clients leave money to adult kids in trust, maybe even for perpetuity, and letting them name a friendly trustee at an earlier age, and that just keeps the family money in a trust and protected from creditors you know bad spouses and it just has that extra layer of protection where they can get it out if they really want to, because they have got a friendly trustee that'll say sure, you know, buy your Ferrari, that's fine.

Casey:

Right.

Missie:

But if your wife wants to open like that nail salon, you know you could say I'm sorry, my trustee won't let me do it.

Casey:

Right, exactly.

Missie:

So I feel like you know you have to think about that structure. Even though your kids are perfect and great, the people around them might not always be perfect and great as they go through the decades.

Casey:

Or they might trust people that aren't trustworthy. You know trying to take your inheritance and put it majority of it in annuities and whole life insurance. Right, they're protecting it.

Missie:

Casey, that's that.

Casey:

It happens, unfortunately. Yeah, no, yes, I agree with that. I don't think we see that here as much. You know, I think a couple of cases we're working on now is like a family limited partnership, because the business is over the exclusion and gifting and gifting and so trying to. So basically they're passing down shares to the next family, so certain kids will be operating or directors at the company and some will just be shareholders. So it's getting really creative in setting that up, which is really kind of. Another point that we had for our podcast is assembling a team. You need a good financial planner that is able to direct traffic and say, OK, this is what the goal and mission is. Now I'm going to bring in this estate business specialist and then I'm going to bring in the appropriate CPA, which could be multiple. Really, if you have a personal CPA versus business CPA, those are two different expertise. Generally, our CPAs here we work with are more geared for the complicated.

Casey:

So we don't have to do that as much. But some people do have different CPAs one for the business, one for personal.

Missie:

Yeah.

Casey:

And then obviously even like an insurance agent really, and you have to keep them in their lane, no, but just making sure that you've protected your assets. I mean, I think the most common recommendation we're making in our financial planning right now is people don't have umbrella policies, so they haven't had worth of $5 to $10 million, but they don't even own protection past a half million dollars and they have very little debt. So that means that all their assets are up for grab if they were a terrible accident that they were responsible for, yes, so you want to be caring, typically your household insurance. The state farmers all say it's a stop around $5 million for an umbrella, some stop at $3.

Missie:

Yeah, it's hard to get $5.

Casey:

Yes, so I tell them, is that you and I say this very jokingly is like you've worked really hard. You still have common people insurance. You need rich people insurance and I hate that word rich, but I use that in that context Just to provide some humor to the situation. But yeah, there's chub vaults, purer. Those are all insurance companies that if you have a home worth over $1 million, you should not be using a state farm Get away from the mass market, correct, correct.

Casey:

The rest office would have homes less than $1 million. It's different. But after you pass that $1 million threshold, or if you have really nice cars, you should not be using your standard insurance. So we have a process for that too. We use Kimberly over at the Dickerson Agency to help us shop for that, and she can do the high end as well. And then we also have an agent that we'll use occasionally for the ultra high net worth when it comes down to making sure that they're properly insured and it's not. You're not looking for cheap insurance at that point, you're just looking for quality of insurance.

Missie:

Oh yeah.

Casey:

When your net worth is over those $3, $5 million ranges. So, anyway, the point of all that is assembling your team. So who is on your team? Is your team working in your best interest? Is your team understanding what your goals and objectives are? That's the important part and that's what our roles as financial planners are is to direct traffic and making sure that everyone's moving in the right direction.

Missie:

Absolutely. You know. One technique that I see less of these days is just randomly writing annual gift checks.

Casey:

That has kind of dropped off.

Missie:

I've noticed that too, and I don't know if that's because people want more control or they don't feel like they've got the excess that they just want to freely give away. Right now they're holding it tighter to the vest.

Casey:

I think it's a COVID result. Maybe that is when we had that big drop in the market. Everyone's worried about their health.

Missie:

You're right, that's when it's it dwindled off. Yeah.

Casey:

I think it's a covet thing now that people aren't writing the, because you do 17,000 a piece. Yeah, if you have two children, mom can write a check for to each child for 17,000. Dad can write a check for 17,000 Reach child and pass it to the next generation. Now it's a drop in the bucket for most families, but it does high net worth it does help move, move money out of one estate to the other and and.

Casey:

But yeah, I think that's because it's people are still like I get in protection mode. This 21 was kind of an adjustment year and then we had the big losses in 2022. No one was so no one feels like they can give, get, do gifting now they're trying to earn it back. Exactly, exactly. Well, that's what again? That's where planners are able to make suggestions. Yes and it's always hard for me to suggest that when they're younger, I know when they're in their 50s.

Missie:

Yeah, these biggest states, because you just don't know.

Casey:

You just don't know what's around the corner sometimes or what the client's gonna want to do. But yeah, certainly in in your 70s and 80s gifting gifting sort of definitely makes sense. So I guess other ways to protect it. So let's just be blunt about this. I mean, if you have significant assets, you're moving to the next generation. Have your kids get pre nups.

Missie:

Oh gosh, yes, that's and.

Casey:

I think that's one way and you can make yourself the bad guy. You look at the future spouses. They would love you very much. It's always had to have you here. But we're also gonna protect our our interest business transaction.

Casey:

Correct. So having having children sign pre nups would be one. Obviously, you can control some of that through a trust. That was an irrevocable trust. You can name who those beneficiaries are and what the criteria is for for a drawing. You can't name if you don't have a close family friend or a successor to that friend. Even Cumberland Trust, based out of Tennessee in Georgia. Here are great companies to have as as as trustees yes, independent corporate trustees correct, they don't manage assets, not a bank.

Casey:

They don't manage assets, they simply just are the administrators and typically you want to make sure you have at least two million dollars that would be under their Perview to make that worth it.

Missie:

But trustees like that know you as a client, as the beneficiary of the trust, and We'll make good on everything. I mean it's amazing what some of those trustees will do.

Casey:

Yep. And then Obviously, looking at tax planning for the next generation. So right now, if you leave a large IRA to the next generation, it has to be withdrawn over a 10-year period. So if you look down at your kids and you see that your kids are in a very high tax bracket, perhaps it's better for you to do a conversion into a Roth now In a lower tax bracket, before it's transferred to them. That protects the dollar. If they're in lower tax brackets, then the opposite is true. You want to keep it on your side as long as possible and then, once they withdraw, there'll be a tax strategy for them. But having having multiple generations at a firm also helps. We have several multi-generational families here and so when I'm working with dad and and and I can see the transition he's ready to transition out of the business. I can immediately see the what's happening at the kids accounts and their tax returns, and so you're very able to kind of direct when assets should go versus the family being scattered with multiple advisors.

Missie:

Yeah, you're not guessing about tax rates and generations.

Casey:

It's so helpful and and independent advisors. I think for the most part we play pretty well together. Oh yeah but if you're asking me to go to like a Merrill or An ever Jones guy, they are super defensive, super defensive and they're not gonna know. No, yeah, they're not gonna work well with independent advisors. We're evidently a big threat to them. That's because we do real financial playing. Yeah, we're doing real work, not in on our project just collecting an assets under management fee.

Casey:

But yeah, north, I had to work with a Northwest mutual recently, or I tried to, and like the guy wouldn't even take my phone call. So it's it's just really strange how, how that works, where if I called another independent RA it'd be like all buddies, I mean really another nap. Exactly, working jointly with a family together. That usually goes pretty well, but so, yeah, so so having having your team understanding a tax strategy team also. Obviously I think I didn't mention attorneys, but Show up in every case, but you want.

Casey:

You want to have an attorney as part of your Group to understand what's happening, and maybe different multiple attorneys, because that same attorney your corporate attorney is not the same as your Is your estate planning attorney.

Missie:

No, might be a life insurance trust for a second to die policy. Right over some estate taxes, that's an issue Correct.

Casey:

And then I think, lastly, I'll add succession planning for your business.

Casey:

Oh, so you know a little, I know a lot about that and I'll say it is one of the hardest things. I you know I haven't. I have a, we have a rough rough draft I guess, but you know it's really difficult, especially if it's a business like like ours at wiser that's, that's growing and so we're adding great people like you, missy, but we don't have like we don't have like that five-year track history and and you're still learning a lot, a lot of things we do here, not the planning side you got that down but just like the operationally and procedures and stuff corporate wise, and so it's. It's very tough, and especially for me, because this is my baby, this is, this is the product, this is a reflection of me, right, this company. And so for any other business owner it's the same. For them it's not any different, and so that's where it goes back into your counsel for Business and and how you transition. That is very different than what I would do if I was an employee here.

Casey:

Yeah so those are, but you have to have it in place. Are the employees gonna buy the business? Are you going to Transition the business to a competitor? Is there an? Is there an arrangement? You know? Do you have a business broker even picked out? It's hey, if something happens to me, I want you to broker this business. I would say you have to make the business as little as about you as possible, which is a whole another business coaching thing, right? So you know it's. It's Wait. I think our next episode is with Marty Paradise Paradise consulting down in Charleston, South Carolina. But that whole episode is gonna be about how to grow and scale business, Because that that's what business owners need. You need to understand that.

Casey:

It can't be just about them now End game so in the end, multi-generational Wealth can be passed on successfully from generation to generation. But you have to tell your story, you have to have plans in place and be intentional about it. Right, if you're not there, if you don't have multi-generation of wealth in your family, there are ways to do it, and it starts with living below your means, staying away from from debt Right and building an asset and teaching the next generation about money, and so maybe they can pick up and go from there.

Missie:

Yes, avoid lifestyle creep and stay educated.

Casey:

Yeah, absolutely.

Missie:

Cool.

Casey:

Before we wrap up this episode, missy, I just want to commend you on a job Well done. We had a person come in recently who Was being kicked out of there, being kicked out of their wealth manager firm and this is guys. This is where I get so frustrated with my own industry, but basically it's a very nice lady who had a good amount of money in her brokerage account. Then the money the advisor took the money out of the brokerage account to buy an annuity for her in a whole life policy but then the brokerage account depleted down quite a bit because of those two large purchases and then now he's kicked her off the platform Because she doesn't have enough asset center management to be on the platform anymore. But he is keeping the trailing commissions from the two products that he also sold, and this is a local independent financial planning firm. Is what they have on their website.

Missie:

Very local.

Casey:

There's no, I don't think there's any planning done other than his own income planning.

Missie:

Personal.

Casey:

Missy has taken the case on and she's done a great job of contacting a new company and trying to figure out what all the options are, which I think we've laid out some options for her, but ultimately this was all done. This was what hurts. This was all done by a certified financial planner. This is a CFP CFP certified financial plan. These are the people that are supposed to sign the oath that they're going to do in the best working, the best interests of the client, and that's not. That's not what happened and unfortunately, because they're in this broker dealer realm, you'd have to follow complaint through FINRA and the chances of winning are almost zero because probably somewhere along the way, she signed some some you know 5000 worded small print document that I know that cleared them to do all this.

Missie:

Even though it's totally unsuitable.

Casey:

Correct, correct.

Missie:

Puts her in an awful position now.

Casey:

So that, just to me, reminds me that fee only is the way to go. This is a fee based company, meaning that they're supposed to be fiduciary on one side, but then when they sell those products, they don't have to be fiduciaries. And who told her? And who told her when he was not going to be a fiduciary and when the sales person was going to be? No one does that.

Missie:

You can't tow the line Right there are, you're not exactly, but that's that's.

Casey:

That's a error in our structure in the United States anyway, and how people can set up their companies. But I was to say thank you for publicly, thank you for extending the heart of wiser in taking care of her.

Missie:

Sure, we're not out of the weeds yet, but we will get her there, that's for sure. We're not going to leave her hanging episodes.

Casey:

You might want to listen to episode 152 10 tax planning strategies for high net worth individuals. That one may have been with Jordan I think that's a good one to episode 128, transferring wealth from generation to generation. I already mentioned episode 117 generational wealth and how to preserve it with James E Hughes. That was a great, fast paced podcast we did a while back. Don't forget, we also have a YouTube channel, a wiser retirement available on YouTube. We have a couple of videos we linked here asset protection for high net worth individuals and building a less legacy beyond financial wealth. Thanks for listening today's podcast episode. If you're interested in learning more about wiser wealth management or want to schedule a consultation to meet with one of our fiduciary financial advisors, like Missy, you can do so by going to wiserinvestorcom or you can click on the link on the episode notes. Thanks so much, guys, for listening. I will see you next week.

Hadley:

Thanks for listening to a wiser retirement podcast. We hope you enjoyed today's episode. Make sure to subscribe wherever you're listening. That way you don't miss any new episodes. We'd also appreciate if you could leave a rating and review. If you have any questions about anything that was discussed today at the wiserinvestorcom, reach out. This episode was produced and edited by Ken Hoteley. Thank you.