Secret Sources of Credit Revenue - Financial Planners Hold The Keys

Private Wealth leaders on the divisional, regional and team levels are all looking for new sources of revenue.  One typically untapped source sits in the office right down the hall.

Your Financial Planning colleagues know it all!  They are invited into your client and prospect families' current and future worlds.  For them to rationally introduce and eventually recommend future financial  stratagems they are given a level of information not typically reached by any other member of the advisory team. 

"Credit Opportunity Discovery"education is not often offered to the planning staff.  You can change that paradigm.   Those companies' that do formalize a opportunity discovery training approach for this constituency have enjoyed significant gains in Private Wealth Management credit production.  As strategies are designed to provide either wealth preservation, wealth accumulation or both, previously undiscovered possibilities will come to light.  Situations will arise where the use of a Strategic Credit Facility, as an alternative to the "standard" financial solution, can provide the client and their family with substantial  Economic Benefit.  Benefit that can and should be quantified by a member of the Credit Advisory group prior to presentation to the client. 

Credit Opportunity Discovery education in today's Client Team approach to the Private Wealth market is essential to the team reaching its full success potential.  In this team structure the Planners are not asked to become experts in providing Credit Advice but only to become aware of apropos credit concepts and then to recognize situations where a Strategic Credit Facility potentially could provide Economic Benefit. 

Do your Financial Planners encounter situations where an Strategic Credit alternative could aid their client?  Experience tells me that your Financial Planners encounter them everyday.  

For instance, do your clients:

-Use GRATS to pass low basis, easily valued, marketable securities to future generations?
Consider a Strategic Credit Facility to "insure" GRAT success

-Gift low basis stock to subsequent generations and there-by loose its potential  step-up in basis?
Consider a Strategic Credit Facility to fund the gift and maintain the basis step up

-Purchase high dollar life insurance within an ILIT?
Consider a Strategic Credit Facility for the ILIT itself to:
1. to defer or potenitally avoid creating tax liability for the insured when gifting premiums
2. keep cash otherwise used to pay premiums invested

-Incur Estate Taxes where prudent financial planning has isolated the client's liquid assets from the estate’s executor/administrator?
Consider a long term fixed rate Strategic Credit Facility to actually reduce estate tax liability and pay the total tax due in a timely manor

These concepts and many others can be covered in a scalable and repeatable seminar designed to significantly stimulate growth in the credit related revenue achieved by your company's  Private Wealth organization.  Your Financial Planning constituency is one of the keys to meaningful credit production success.  Once armed with this education immediate opportunities will result.  While not all opportunities will result in "at bats" or subsequent credit production, those that do will very rapidly increase the team's comfort in recommending the use of Strategic Credit Facilities leading to increase in overall team productivity.  

For a deeper level of detail on the Strategic Credit uses I've mentioned here please review the previously published articles my LinkedIn profile page or on my blog.


I am ready to discuss the delivery of an "Credit Opportunity Discovery"educational offering for your Financial Planners.  Please don't hesitate in contacting me at 404-909-5167.  Thank you.

Mark S. Johnson
Strategic Credit Solutions

mark.johnson@strategiccreditsolutions.com

The Hardest Bucket To Fill - Stimulating Wealthy Individual Credit Revenue

With the high level of private banking focus on increasing Assets Under Management (AUM/A) or Advisement the potential revenue increases that robust Credit Outstandings can provide sometimes take a back seat.  It's understandable in that the clients themselves don't often think of borrowing a their financial solution.  More often than not the High Net Worth Individual thinks borrowing is, at best, costly and at worst places undo risk on their financial plans.  By showing the client the Economic Benefit potentially gained through the use of a Strategic Credit Structure the Adviser's role is truly enhanced and the client gains a viable alternative financial solution.  A solution that not only provides the client with substantial Economic Benefit but also increases the bank's credit balances outstanding and maintains or potentially enhances the current level of AUM. 

Hopefully, this short discussion will stimulate your interest.  There are many Wealthy Individual Client situations the will give rise to substantial and measurable Economic Benefit through the use of a Strategic Credit Facility as an alternative to the client's original approach.

A few examples would include:

Your client plans to draw down cash or liquidate investment assets to fund “Private Equity Investments" -Consider the use of a Strategic credit Facility so as to keep cash and investment assets invested

Your client is planning the purchase of or already owns Life Insurance within an Irrevocable Like Insurance Trust - Consider the use of a Strategic Credit Facility to avoid Gift Tax and/or investment asset liquidation

Your client uses GRATS to accomplish inter-generational transfer residual assets - Consider the use of a Strategic Credit Facility to "insure" the GRATS are successful

Your client seeks to finance or refinance an asset purchase (or desires 100% financing) - Consider the use of a Strategic Credit Facility to avoid typical market "closing costs" and obtain a lower rate of interest


To review a short PowerPoint on the subject please click the Link embedded here.

For a much deeper level of detail on the Strategic Credit uses I've mentioned here please review the previously published articles my LinkedIn profile page or on my blog.

I am ready to discuss the delivery of an "Credit Opportunity Discovery"educational offering for your the many advisory constituencies that make up your team.  Please don't hesitate in contacting me at 404-909-5167. 

Thank you.

mark.johnson@stategiccreditsolutions.com

on Twitter @creditstrategic