Hey Sunday Brewers!
Here’s a quick sip of what’s inside…
⚡How to overcome a retirement deficit with a 6-figure move
⚡Why you should rethink a “cute” approach to branding
⚡Precise tactics that FAs can use to generate leads in a world of robo-advisors
The First Sip
The owner of a New York property management company recently became the guardian of a 93-year-old woman he’d never met.
As you can probably guess, it was an unusual set of circumstances that led to this unlikely pairing.
It all started when Brock Cvijanovich made a bid to buy his first apartment building in upstate New York.
His bid came in roughly $100,000 less than the highest bid.
Yet the owner of the property told Brock he’d slash $50,000 off the list price if he agreed to a very specific contractual term…
He had to take care of a 93-year-old resident named Alice Schuman.
Brock happily agreed to those terms and bought the property.
As he explains, “[The owner] took a $50,000 haircut to make sure this woman is being taken care of.”
Come to find out, the former property owner had spent the last few years taking Alice to the bank, supermarket, and doctor’s appointments.
And he was only charging her $200 per month for rent (while other similar units were going for $2,000 or more).
Alice had lived there for 60 years and the previous owner never had the heart (or nerve) to raise her rent.
Neither did Brock.
He continued charging her the $200 for rent and took over the errand duties.
A few months passed and Alice had to be taken to the hospital, where the staff deemed her unfit to care for herself.
With no living friends or relatives able to care for her, they made the decision to put her in the state’s care.
Doubtful that she would receive the best care under this setup, Brock hired a lawyer and went through the process to become her legal guardian.
“I was visiting her every single day. They actually had a joke on the floor that she had a young boyfriend,” he said. “I’d bring her food, I’d bring her flowers.”
While Alice recently passed away earlier this year, Brock and his mother were there by her side – holding her hands until the end.
Along the way, they redefined what it means to extend kindness…even when it doesn’t make financial sense.
1 Caffeinated Neurohack
Want to stretch your retirement savings?
Or want to help your clients stretch their nest eggs?
New research from Vanguard Group shows that relocating can be a lucrative way to shore up retirement savings.
In fact, it can give you a 6-figure boost.
This “retire and relocate” strategy works when you sell your home in an expensive market and move to a cheaper housing market.
The average homeowner age 60 or older who makes this maneuver is able to access an extra $100k in equity (which can make up for a deficit in retirement savings).
Those in the top 10th percentile tap an average of $347k in extra equity.
There are obviously other factors to consider – like healthcare costs, whether you know people in the new city, and what sort of plans you have for your retirement lifestyle.
However, for those who aren’t afraid of change, this retirement housing hack can create some extra breathing room.
Reverse mortgages are another option, but with so many misconceptions about this financial maneuver, it’s helpful to have another option at your fingertips.
You can read the full research study here.
☕ TL;DR: Overcome a retirement deficit with a move and potentially tap 6-figures of equity.
What’s New in SHIFT Nation?
With the increasing use of robo-advisors and AI-powered financial tools, you have to find new ways to attract and retain clients.
In this video, we explore the precise tactics that FAs can use to generate leads.
🔹 Tax hike. President Biden’s proposed 2024 budget calls for a top marginal tax rate of 39.6% (up from 37%) for single filers making $400k+ and married couples bringing in and $450k+. However, experts say the tax hikes are unlikely to pass. The bigger issue? Trump-era tax cuts ending in 2025.
🔹 Can we get a buyer? The parent company of SVB Financial sent shockwaves through the financial services industry on Friday by seeking a buyer (after failing to raise capital in a Thursday offering).
The company’s stock collapsed more than 60% on Thursday and another 63% in Friday’s pre-market session before trading was halted.
🔹 New jobs report. The February jobs report shows a U.S. labor market that continues to outperform expectations. 300k+ new jobs were created last month, despite stubborn inflation and aggressive rate hikes.
Enjoy your Sunday,
Jeremiah D. Desmarais
#1 in ROI-Driven Training for Advisors