8 episodes

Attorney Paul Deloughery believes that if you truly want to differentiate yourself and show your High Net Worth clients how you add value to the investing equation, then Family Dynasty Planning is the key. If you want to prepare for the coming Great Wealth Transfer – the $30 trillion that will pass from baby boomers to Generation X and millennials – then keep listening. Because Paul will teach you how to double the lifetime value of your accounts, and how to increase the value of your practice in the process.

Dynasty Advisor Paul Deloughery

    • Investing

Attorney Paul Deloughery believes that if you truly want to differentiate yourself and show your High Net Worth clients how you add value to the investing equation, then Family Dynasty Planning is the key. If you want to prepare for the coming Great Wealth Transfer – the $30 trillion that will pass from baby boomers to Generation X and millennials – then keep listening. Because Paul will teach you how to double the lifetime value of your accounts, and how to increase the value of your practice in the process.

    Bridging the Information Gap with Clients’ Heirs

    Bridging the Information Gap with Clients’ Heirs

    Up to 90% of children fire their parents’ advisors after an inheritance. And Millennials represent 55 percent of assets held by investors who are “at risk” of leaving their current firm, according to a recent J.D. Power study. In this episode, you’ll learn three key insights that are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice.
    Lean in as Paul addresses one of the main challenges associated with serving the next generation and how to turn it into an opportunity for long-term growth – namely, that many younger investors lack financial education.
     
    Bridging the Information Gap with Clients’ Heirs
    This is the show devoted to financial advisors, fee-based investment advisors, and wealth managers who want to increase the value of their practice by attracting more premium clients and reducing client attrition. Now if this sounds like you, all you need to do is lean forward and listen carefully.
    Family Dynasty Planning is central to our discussions, and you and I will also explore other fascinating and important topics such as attracting wealthy clients, dealing with increasing competition, continuity planning and succession planning, growing and building your business, understanding the true worth of your business, and leveraging technology, just to name a few.
    In this episode, you’ll learn three key insights that I believe are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice. First, you’ll hear one of the main challenges associated with serving the next generation – namely that many younger investors lack financial education, and you’ll find out how to turn this challenge into an opportunity. Second, you’ll find out the single most important thing you can do to effectively teach your clients’ heirs about investing and the role that you play. And it’s probably not what you think! And finally, you’ll learn one great way to engage millennials in the process of learning about investing.
    So please read carefully. Because this episode could have a significant impact on your future success.
     
    A cherished mentor
    It was my first semester at the Iowa College of Law, a top-tier law school in Iowa City, Iowa. I was sitting in the middle of the lecture hall for Contracts class. The professor was Alan Widiss, who was a co-author of several national treatises on Insurance Law. He also wrote the nationally used textbook that we happened to be using for this class.
    At the end of this particular class, he announced that he was looking for a research assistant. That the position required working 10 hours per week, and one of the benefits was that it would qualify the student for in-state tuition.
    I ran down to him at the end of class and asked if I could apply. We made an appointment for me to meet with him at his office. I got the job.
    My responsibility as research assistant was to find and photocopy all cases from around the country that mentioned uninsured or underinsured motorist insurance coverage. There were usually 30 or 40 cases each week. Each case was usually 5 to 15 pages long. He read them all, and then continually incorporated cutting edge cases into his multi-volume treatise on the subject.
    I admired Professor Widiss’s work ethic and his dedication to perfection within his profession. It’s 25 years later, and I still remember the little nuggets of wisdom that he mentioned. (Professor Widiss in 2001. He had been one of the foremost experts on insurance law.)
     
    New investors need you to be a mentor
    I mention this story because mentors play an important role in our lives.  Your clients’ heirs probably need someone like you to teach them. I say this because the basics of financial planning are lost on many new investors.
    Only about a quarter of millennial

    • 12 min
    The Importance of a Positive Family Culture

    The Importance of a Positive Family Culture

    Creating a Family Dynasty takes more than some documents. There are intangible things that typically aren’t taught to families with less than $500 million. In this episode, you’ll learn three key insights that are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice.
    Lean in as Paul shares a story from his childhood and also reveals how a family dynasty needs both technical things (like proper legal documents) as well as and intangible things like having a positive culture, shared values and ground rules for how it operates.
    The Importance of a Positive Family Culture
    This is the show devoted to financial advisors, fee-based investment advisors, and wealth managers who want to increase the value of their practice by attracting more premium clients and reducing client attrition. Now if this sounds like you, all you need to do is lean forward and listen carefully.
    Family Dynasty Planning is central to our discussions, and you and I will also explore other fascinating and important topics such as attracting wealthy clients, dealing with increasing competition, continuity planning and succession planning, growing and building your business, understanding the true worth of your business, and leveraging technology, just to name a few.
    In this episode, you’ll learn three key insights that I believe are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice. First, we’ll discuss the difference between laws on one hand, and social norms on the other, and why that’s relevant in the context of Family Dynasty Planning. Second, you’ll discover that you need both a dynasty trust and a positive family culture. Just like a stable society needs both laws and positive social norms). Third, you’ll find out one thing you can do this week to start implementing what you’re learning in these podcasts.
    Please read carefully. Because this episode could have a significant impact on your future success.
     
    Laws vs. culture
    It was early evening. I was in the back seat of my step-dad’s Mercury Zephyr with my German grandma, Alma Meinen. My step-dad was driving. He went by the nickname “Dee,” because the guys in the Navy always butchered his last name of Deloughery. He was a big man who had been the feather weight boxing champion in the Navy as a teenager. My mom was sitting in the passenger’s seat.
    I had just played the alto saxophone in my first band concert, and we were just starting to drive away from the school.
    I rolled down the window because I saw one of my friends walking on the sidewalk. “Bite me!” I yelled to him. He looked shocked. My grandma looked shocked. My dad became instantly angry. And I wondered what just happened.
    You see, during the previous couple of days, the Sixth-Grade boys had been saying “Bite me” to each other. It was just what we did. I didn’t know what it meant, other than that it was a way of showing camaraderie and being “cool.” You know how young kids can be, right?
    My step-dad immediately said, “Don’t you ever say that again. We’ll deal with this when we get home.” And deal with it “we” did. I was grounded for a week, which wasn’t the real punishment. Having my parents that upset at me was enough. They explained how it shocked my grandma, and that we just don’t yell things like that in public. I didn’t figure out that “bite me” was a short version of “bite my [blank]” until years later.
    I tell this story because it’s relevant to our discussion of creating family dynasties in which your clients’ heirs continue to retain the investments with you, despite their inner urges to quickly spend it.
    You see, in society there’s a difference between laws, ethics and social norms. When I was growing up, there was no law against rolling

    • 12 min
    The Danger of Direct Distributions

    The Danger of Direct Distributions

    Death is a major taboo. No wonder that most people want to be quick and to the point when dealing with who gets what when they die. In this episode, you’ll learn three key insights that are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice.
    Lean in as Paul shares a story about how a direct distribution (which sounds simple on the surface) can actually turn into a fiasco in real life. Make this information work for you so you can double the lifetime value of your accounts and increase the value of your practice.
     
     
    The Danger of Direct Distributions
    This is the show devoted to financial advisors, fee-based investment advisors, and wealth managers who want to increase the value of their practice by attracting more premium clients and reducing client attrition. Now if this sounds like you, all you need to do is lean forward and listen carefully.
    Family Dynasty Planning is central to our discussions, and you and I will also explore other fascinating and important topics such as attracting wealthy clients, dealing with increasing competition, continuity planning and succession planning, growing and building your business, understanding the true worth of your business, and leveraging technology, just to name a few.
    In this episode, you’ll learn three key insights that I believe are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice. First, you’ll learn what an outright distribution in a trust or will is. You’ll learn how to spot this in a client’s estate plan document. Next, you’ll find out why outright distributions don’t work, especially when dealing with significant wealth. Finally, you’ll learn how talk to your clients who have Wills or Trusts that give everything outright to their heirs.
    Please read carefully. Because this episode could have a significant impact on your future success.
     
    Squabbling over $30 million
    I’m in Probate Court in Phoenix, Arizona. “Objection!” I said, as I stood up to break the opposing attorney’s rambling opening argument. “None of what the opposing counsel is saying is relevant to today’s hearing,” I said.
    The opposing attorney was an overweight man who loved to hear himself talk. Our clients were the two beneficiaries of their parents’ trusts. The opposing attorney represented the son and I represented the daughter. My client –let’s call her Clarissa -- had flown in from New York to attend this hearing. Clarissa was wearing a nice dress that looked like it was new.
    The hearing on this occasion concerned Clarissa and her brother’s dispute over division of their parents’ $30 million worth of investment properties. They were arguing over who should receive a particularly lucrative strip mall. I had tried to convince my client and the other attorney that it didn’t really matter who received what asset, as long as they each received roughly 50%. After all, whoever received the less lucrative commercial property could simply sell it and purchase a more profitable one.
    But they each had a story about how their father had promised that strip mall to them. Never mind that this was complete hearsay and is not admissible in court. This case dragged on for over THREE YEARS. Clarissa eventually fired me and hired two subsequent lawyers. The brother did the same, but I think he went through three more lawyers.
    During this entire time, the commercial properties had no clear owner. Tenants started to leave because the properties were not being properly maintained. Also, during this time, both the daughter and the son were anxiously requesting partial distributions from the trusts. They each went on vacations (though not together, I’m sure). They were spending the money as fast as they could get it. But because the properties were t

    • 17 min
    The Problem of Too Many Heirs

    The Problem of Too Many Heirs

    There’s probably a reason that wealthy, educated people tend to have fewer kids. Ha ha! Having kids is a lot of work. And for families with significant wealth, figuring out how to transfer that wealth to the next generations without greed and entitlement taking over is increasingly more complicated the more heirs are involved. Add some businesses or commercial properties to the mix and you have a mess. In this episode, you’ll learn three key insights that are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice.
    Lean in as Paul shares a story about the complexity of having multiple heirs and a couple of strategies for dealing with this challenge. Make this information work for you so you can double the lifetime value of your accounts and increase the value of your practice. 
    The Problem of Too Many Heirs This is the show devoted to financial advisors, fee-based investment advisors, and wealth managers who want to increase the value of their practice by attracting more premium clients and reducing client attrition. Now if this sounds like you, all you need to do is lean forward and listen carefully.
    Family Dynasty Planning is central to our discussions, and you and I will also explore other fascinating and important topics such as attracting wealthy clients, dealing with increasing competition, continuity planning and succession planning, growing and building your business, understanding the true worth of your business, and leveraging technology, just to name a few.
    In this episode, you’ll learn three key insights that I believe are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice. You’ll discover why having a lot of heirs greatly complicates an estate plan, especially when one or more businesses are involved. You’ll learn the difference between single pot and separate pot trusts (and why this matters). Finally, you’ll hear how to suggest appointing a corporate trustee to your clients with multiple heirs. This would be a great referral if you have an affiliated trust company.
    Please read carefully. Because this episode could have a significant impact on your future success.
    When you can’t trust the trustee I was sitting in my conference room in Scottsdale, Arizona. It was mid-afternoon. Across from me were three adult siblings. They were concerned that their brother, Fernando, had taken over as trustee of their mother’s trust and that he was stealing money from the trust. The siblings in my office were ultimately to receive equal shares from this trust, so their brother stealing money from it was ultimately reducing their eventual inheritance.
    Decades earlier, their parents had started a tortilla factory, and multiple Mexican restaurants. The parents had given the tortilla factory to two of the kids. Each of the other kids had received a restaurant business. However, the actual real estate and building where each restaurant was located was still owned by the trust.
    The father then passed away. Fast forward to shortly before this meeting. The mother was getting dementia and could no longer manage the restaurants. So, Fernando took over as trustee. Years earlier, it seemed most logical for Fernando to be in charge of managing the trust. Fernando had convinced his parents that he was loyal and careful with money. But pretty soon the other kids noticed that Fernando was able to remodel his house and go on cruise vacations, even though his personal business income hadn’t changed.
    Fernando then demanded that the three siblings in my office start paying rent for the buildings that their restaurants were located in. The three siblings refused, because they didn’t trust that he would spend the money wisely.
    The siblings in my office were also concerned about a safe full of gold coins.

    • 10 min
    62 Years Old and The Trust Runs Out

    62 Years Old and The Trust Runs Out

    Being a Dynasty Advisor helps with more than just keeping AUM after a client dies. Behind the investment accounts are real people whose lives you’re affecting. In this episode, you’ll learn three key insights that are critical not only to doubling the lifetime value of your accounts and dramatically increasing the value of your practice – but to making a real difference in people’s lives.
    You’ll hear a story about someone whose parents cared too much, and in the process set their daughter up for a financial disaster. You’ll learn how an outdated tax consideration – and sloppy drafting -- has led to many trusts having a provision that no longer makes sense, and that can cause catastrophic results for the heirs.
    62 years old and the trust runs out
    This is the show devoted to financial advisors, fee-based investment advisors, and wealth managers who want to increase the value of their practice by attracting more premium clients and reducing client attrition. Now if this sounds like you, all you need to do is lean forward and listen carefully.
    Family Dynasty Planning is central to our discussions, and you and I will also explore other fascinating and important topics such as attracting wealthy clients, dealing with increasing competition, continuity planning and succession planning, growing and building your business, understanding the true worth of your business, and leveraging technology, just to name a few.
    In this episode, you’ll learn three key insights that I believe are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice. You’ll hear a story about someone whose parents cared too much, and in the process set their daughter up for a financial disaster. Second, you’ll learn how an outdated tax consideration – and sloppy drafting -- has led to many trusts having a provision that no longer makes sense, and that can cause catastrophic results for the heirs. Finally, you’ll learn the importance of having flexibility in a trust document. This is something you can immediately call your clients and their estate attorneys about.
    Please read carefully. Because this episode could have a significant impact on your future success.
     
    They should’ve seen this coming …
    It was a Tuesday afternoon. Sitting across from me at the granite conference table in my law office was an attractive, middle-aged lady with perfectly manicured fingernails, an expensive-looking dress, purple high heel shoes, and a necklace with a matching purple amethyst solitaire. She said she wanted to sue her trustee for mismanagement of the trust that her parents had set up decades earlier. At the time it was created, the trust has millions in it. But after years of being managed by a Las Vegas trustee who charged $1,000 per hour for his services, and giving out distributions freely to the daughter-beneficiary, the trust was now depleted down to $120,000. The lady in my office was 62 years old.
    According to the trustee, the trust would only last another two years at the current rate of distributions. She had never worked a day in her life, so she had limited social security benefits. And she had no marketable skills.
    She mentioned that she wanted to sell some of her jewelry in order to give me an advancement of legal fees. However, I was uncertain that I would be able to help her because the trustee hadn’t done anything obviously wrong. Her situation was mainly caused by lack of foresight on the part of her parents and the attorney who drafted her parents’ trust.
    As we continued to talk, I asked her how she planned to live once the trust ran out of money. She said she only planned to live another couple of years.
    She was serious.
    I asked if she was open to some advice. She agreed, and I suggested that she spend her remaining money to go to school and get trained to

    • 17 min
    Building Relationships With Your Clients' Heirs

    Building Relationships With Your Clients' Heirs

    The main reason clients’ heirs leave a financial advisor is not having a relationship. In this episode, you’ll learn three key insights that are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice.
    Lean in as Paul tells you a story about his personal experience of suddenly becoming an accredited investor, and who befriended him. He’ll also share who didn’t make any efforts to connect with him (namely any of the financial advisors he knew). Make these insights work for you so you can double the lifetime value of your large accounts, and attract more wealthy clients.
    This is the show devoted to financial advisors, fee-based investment advisors, and wealth managers who want to increase the value of their practice by attracting more premium clients and reducing client attrition. Now if this sounds like you, all you need to do is lean forward and listen carefully.
    Family Dynasty Planning is central to our discussions, and you and I will also explore other fascinating and important topics such as attracting wealthy clients, dealing with increasing competition, continuity planning and succession planning, growing and building your business, understanding the true worth of your business, and leveraging technology, just to name a few.
    In this episode, you’ll learn three key insights that I believe are critical to doubling the lifetime value of your accounts and dramatically increasing the value of your practice.
    You’ll learn that people make emotional decisions and then justify those decisions rationally. You’ll learn that you shouldn’t just choose emotion or logic in dealing with your clients or potential clients. You need to use both. Finally, you’ll discover the importance of calling your clients and other contacts. Not just sending them an email newsletter.
    Please read carefully. Because this episode could have a significant impact on your future success.
    An investment conference with no advisors (aka, shooting fish in a barrel)
    It’s Friday late morning in early February 2010. I’m at the Atlantis Resort in the Bahamas. It’s a sprawling complex of buildings, which is kind of funny considering that the weather in the Bahamas is usually always beautiful, but at this resort you could spend the entire time never going outside. I’m attending the FreedomFest conference, which is a libertarian-oriented investor conference.
    Why was I at this event? Because one of the most recent books that my father bought was called Investing in One Lesson, by Mark Skousen. At the end of the book, Mr. Skousen invites readers to attend conferences that he put on. One is in Las Vegas, and the other is in the Bahamas. I later put together that Professor Skousen made his money selling investor newsletters and putting on these conferences.
    Anyway, my father was a very successful investor – having built his military retirement into $28 million over 40 years. He had recently died, and I wanted to honor him by learning what I could about what he did. I thought that attending this conference would be a good way of getting introduced to the investing world.
    Little did I know that investor conferences are basically glorified flea markets. Only instead of selling old antique junk, an investor conference sells junky investments to accredited investors.
    Anyway, as I’m walking through the exhibition booths on my way to the lecture hall, I pass a booth with beautiful bronze and silver sculptures. The company was owned by a good looking fellow about my age by the name of Mark. Also assisting him was a beautiful girl who I later learned was his wife.
    Mark was very enthusiastic and immediately struck a conversation with me. He treated me like I imagine Bill Clinton would treat someone he just met. He was the personification of ebullient – cheerful and full of energy.
    He

    • 16 min

Top Podcasts In Investing