For the Aligned Capital Strategy™ to work, you need to optimize your Human & Relationship Capital. In this chapter, we’ll explore how to build a team of financial professionals who can help you Get Wealthy For Sure™.
What level are your coaches playing at?
I played sports in high school and college, and I had great coaches at every level. My college coach wasn’t better than my high school coach. They were each great at coaching at a certain level. My high school coach knew how to coach high school kids to excel at that level and get chosen for college teams. My college coach knew how to coach players to excel at college sports. Meanwhile, an Olympic coach knows how to train players for the Olympics.
If my high school coach and an Olympic coach traded places for a week, they might not get the best results. Sure, the Olympic coach has more prestige, but he may not know how to work with young, non-professional players who are honing their skills for the first time. Meanwhile, my high school coach may not be able to help Olympic athletes with more advanced techniques. One isn’t better than the other. They’re just experts at different levels.
It works the same in business. The financial professionals who helped you thrive when you were just launching your business were great for that stage of your business. But now that you’ve grown, you may be playing at a level that these professionals don’t have much experience with. As your business changes, you need to fill your financial team with professionals who are experts at working with business owners on your “level.” For example, if your CPA is telling you that the best strategy for minimizing your taxes is maximizing your qualified plans, he’s not playing at your level.
Not only do all of these professionals need to be playing on your level, but they need to be playing on the same level as each other so you have an aligned, unified team. If you have a high-quality life insurance professional who only works with business owners of your caliber and a generic banker, it would be like having Tom Brady as your quarterback with a high schooler playing defense.
Who should be on your team?
The people you need to protect you and position you for success are:
- A tax strategist & CPA
- A tax attorney
- An accountant
- A business attorney
- A bookkeeper
- An asset protection person
- An estate planning attorney
- A captive insurance attorney
- A life insurance agent
- A property and casualty insurance agent
- A business insurance agent
- A medical insurance agent
- A Registered Investment Advisor (RIA) & Fiduciary
- A real estate professional
- A stockbroker
- A mortgage broker
- A banker
- A mentor
- A life coach
All of these professionals are an investment… Yet too many business owners view them as an expense and try to cut corners. This comes from a scarcity mindset. If you consider the amount of money these professionals can save you over a lifetime, you’ll understand that they’re well worth the investment. And the return on investment is so much more than money… What if you get sued and a creditor takes your assets? What if you pass away without a properly set up estate plan and the assets you worked a lifetime to build pass to the government? Working with trusted, high-quality experts throughout your life helps you prevent these catastrophic scenarios.
Not All Advisors Are the Same
There are several different types of life insurance advisors, and they definitely aren’t created equal.
First, we have advisors who sell retail life insurance to the general public. They sell straightforward, cookie-cutter insurance policies off the shelf. There’s nothing wrong with this–people need insurance, and they sell it. But if you’re looking for a more complex, specialized service, these advisors won’t be able to help you.
Then you have life insurance advisors who are riding the hype of social media or network marketing. This is your TikTok life insurance advisor who creates catchy videos… But none of his followers know that he’s just a bartender who sells life insurance as a side hustle. Nothing against bartenders. I have bartended in my life and loved it, but if you’re a high-net-worth individual trying to execute a complex strategy, you need an advisor who works in life insurance full-time.
There are life insurance advisors who specialize in serving affluent markets. They’ll be familiar with sophisticated, advanced life insurance strategies such as high cash-value policy designs. These advisors don’t sell “cookie cutter” or “off the shelf” policies. Instead, they customize policies to achieve the goals of the specific client.
Some life insurance advisors specialize in specific strategies. The challenge with specialists is that you have to find one who specializes in the strategy you’re looking for. Otherwise, they may not know how to execute it because they’re only trained in one niche. For example, in my peer group, I know an advisor who specializes in bank-owned life insurance (BOLI), another advisor who specializes in corporate-owned life insurance (COLI), and a third advisor who specializes in setting up executive compensation packages for high-level CEOs. These advisors are fantastic, high-quality professionals, but they wouldn’t be able to help you with anything outside of their niche. Only go to a specialist when you need their specialty—you wouldn’t ask a heart surgeon to perform brain surgery.
Even if you find the right advisor, someone who practices full-time, specializes in what you’re looking for, and works with high-net-worth clients, you need to find someone who practices what they preach.
If your goal is to get healthy and fit, you’re not going to work with a dietician who eats McDonald’s every day or a personal trainer who’s out of shape. When you seek out mentors to help you achieve a goal, you want to work with people who have already achieved your goal.
The person giving you financial advice shouldn’t be broke. If you want to execute the Aligned Capital Strategy™, you want to work with someone who has been successfully leveraging that strategy for years. My team and I all use this strategy in our personal lives, which allows us to see what works and optimize the strategy.
As a business owner, you should take financial advice from another business owner, not a financial salesperson.
If a professional doesn’t use the strategy they sell, it’s a red flag. Why would someone proclaim a strategy to be the greatest thing ever in a sales meeting with a client…and then not use it themselves? It’s like a chef who doesn’t eat their own cooking because they don’t like the taste.
But when you work with an advisor who has used this strategy for years, you’ll be able to harness their expertise to Get Wealthy For Sure™.
Don’t Forget Your Family
The most important part of your team is your family.
Your assets are yourself, your family, and your business. Your family is the reason you’re doing all of this, and the business is your tool to create wealth and security for your family.
Through this strategy, you’re going to make sure your family is protected and set up a family bank.
Personally, I’ve set up a family bank using this life insurance strategy. This has provided my family and me with clarity, certainty, predictability, and protection. We’re not reliant on third parties to get financing when we want to invest in assets or grow the business.
And, if executed correctly, this strategy can have an exponential impact on your family, passing through the generations for years to come.
Tip: Pay Your Kids
Want to fund your children’s life insurance policies? Employ your kids in your business and pay them up to the legal limit without incurring taxes. In 2024, you can pay your kids up to $14,600 without them incurring any taxes. Your kids can help you with tasks like filing paperwork, taking out the trash, and cleaning the office. Your business can write off the amount you pay them on taxes, and you can use this money to fund your children’s life insurance policies. Meanwhile, your children can learn about responsibility and gain their first work experience in the family business–it’s a win-win situation.” Please consult with your tax professionals when exploring this strategy.
Disclaimer and Waiver
Michiel Laubscher & Laubscher Wealth Management LLC is not an investment advisor and is not licensed to sell securities. None of the information provided is intended as investment, tax, accounting, or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, of any company, security, fund, or other offerings. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information contained herein is at your own risk. The content is provided ‘as is’ and without warranties, either expressed or implied. Michiel Laubscher & Laubscher Wealth Management LLC does not promise or guarantee any income or specific result from using the information contained herein and is not liable for any loss or damage caused by your reliance on the information contained herein. Always seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, or other content.
