It’s Not About the Answers. It’s About the Questions.

BY CHIC COMPASS STAFF

Chic Compass sat down with Joe Pantozzi of Alpha Omega Wealth recently. We talked about questions to ask yourself in preparing for your future. Here are some of the insights that came out of our conversation.

CHIC: What keeps your clients up at night?

JOE: I’m getting very consistent answers on this: independence, taxes, government chaos, markets, their children’s security, charitable intent, and choosing the right planner! I have seen that these kinds of concerns are foremost for 95% of my people.

So, with 500,000 financial professionals in the US, why are most having difficulty reaching financial Nirvana? The pros can’t agree on the meaning of SUCCESS and how to achieve it. More urgently, neither can the client, who should be calling the signals. (Hint: It’s not just “more money”.)

CHIC: Where do you start?

JOE: One primary question is: Are they prepared for the future? For 30, 40, even 50 years of independence? As an advisor I must identify my client’s primary issues so that we can craft effective strategies to meet their needs into the indefinite future and those issues rarely involve dollars!

Can they tolerate another 30% market correction and if so, how long can they tolerate it? Is diversification for cowards, as Warren Buffett says?

I ask many direct questions of my clients in order to find the best solution for their personal lifestyle and family makeup before making recommendations.

THE UNMANAGED MANAGERS

CHIC: Give me an example of a real client scenario

JOE: This scenario involves a client’s business and who should succeed him. The client wants his heirs to manage his business the way he’s done it, hands-on, ten hours a day, six days a week for the last forty years. Not practical, on many levels.

He is concerned that his heirs won’t be grateful and at peace no matter what he leaves them. The business might need intervention or a cash infusion; he might own raw land producing no cash flow; or a bundle of securities managed by some codger (me) his kids have never met! The business might not be worth what he thought it was the last time he thought about it, which could be years ago. The kids might not accept their father’s business partner who has been there for decades.

CHIC: Doesn’t a will help?

JOE: I have to say, that depends. I’ll ask my client’s attorney to evaluate these issues, which do play a huge role in the disposition of the business. (Do they have a proper family trust in place? Who was that lawyer again? Didn’t she retire, move away or relocate to Costa Rica? We nominated trustees, didn’t we Sweetie? No, I didn’t, I thought YOU did!)

More questions! If the client named trustees, were they informed? Did they accept? Do they know what they got themselves into? How long are they willing to serve? Who serves if they quit? This a crucial component in planning a client’s family’s future, yet it goes ignored 80% of the time.

CHIC: What’s the plan in the long run?

JOE: Clients ask often the following questions. How far out should our Master Plan take us? Age 85? Age 100, just in case? Do the kids know that we just might need or want to move in with them if one of us got ill? What’s our Plan B? Are we prepared to leave our kids THAT much money in a lump sum? How can I make sure they don’t blow it, or just run out of money? These are just a few of the questions with which your financial advisor must assist you.

CHIC: At the end of the day is it really all about the who, what, when, why and how?

JOE: Yes, it truly is. Clients main concerns on these issues are usually the following questions. What about us? What do we really want to create as our legacy? Why? Who needs to be brought up to speed today, right now, on our desires? If money were no object, what would we be doing? Is there anything besides money that is holding us back? If I found out that I have only 2 or 3 years left, what would I do differently? Finally, I’ll ask my client to polish up their crystal ball: If we were sitting here three years from today, looking back on the 36 months that have just passed, what would have to have happened in our lives, both personally and professionally, for us to be deliriously happy with our progress? This question helps us dive deeply to our clients’ motivations and true desires for a sound financial future. So, just as we begun…

It’s Not About the Answers – It’s All About the Questions. Just ask us!

Joe Pantozzi is the CEO of ALPHA OMEGA WEALTH, a financial advisory firm with nationwide reach. His focus is creating, protecting and transferring generational wealth by intention, and assuring that every master plan for every client succeeds under every and any scenario, whether foreseen or unseen.

Reach him at (702) 430-4400 or www.AlphaOmegaWealth.com