What’s driving “gray” divorce?

What’s driving “grey” divorce? More women are risking leaving the safe harbor of their long term marriages and launching out into the unknown waters of being single again after the age of 50.

Newly single women in the "grey" demographic are discovering that the new challenges can bring a wonderful time of renewal. The challenge is to shift their old mindsets and patterns. Once they get going in the new direction and stop looking backwards, their new lives are surprisingly positive.

What is driving this "grey" divorce trend?

1. Women are more financially independent. More than half of women ages 55 to 64 currently work. Women would rather be single or seek a new partner than remain unhappily married.
2. Staying together “for the kids” is less of an issue when children are grown adults.
3. Online dating creates hope for new and better relationships.
4. Gray divorce no longer means being alone forever.
5. With increased longevity, the prospect of another 20 or 30 years in an unhappy marriage is no longer acceptable.

What do golf and investing have in common?

What do golf and investing have to do with each other? To start, a good golfer needs to be patient, make solid strategic decisions and be able to focus on long-term goals. Seems pretty in line with what it takes to be a successful investor. When it comes to actually playing a good game of golf, there are a number of other similarities. I "tee up" five of them here:

1. There's more than one way to succeed

Brooke Henderson chokes up a few centimeters or two on an extra-long driver to rank in the top 20 in driving distance on the LPGA tour. Jim Furyk has won nearly $68 million in his career using a swing that golf analyst David Feherty famously described as resembling "an octopus falling out of a tree." Good golfers come in all sizes and shapes.

With investing, you can go heavy on stocks, bonds or foreign exchange, or have a portfolio that consists of several asset classes. While a mix of assets can offer some level of protection compared to an all-or-nothing-type strategy, there is no single right way to invest your money — it's all about knowing your own style and comfort zones.

2. Keeping your cool

It's easy to get upset and frustrated with a double or triple bogey. And responding by taking unnecessary risks will almost certainly compound your problems. The best way to deal with any golfing setback is to try to make a solid shot, followed by another solid shot. Before you know it, you're back on track.

Investing will definitely have its ups and downs. Think about the most recent market decline. Did you panic and sell off many of your investments? Or did you double down on previous investments because you were sure that the decline created bargains? Either response could be considered an overreaction. A calm and reasoned approach to your investments, always keeping an eye on your long game, is generally considered the best way to proceed.

3. Past performance doesn't predict future performance

You'd be hard-pressed to find a golfer who doesn't agree with this one. One good round doesn't make you a golf pro and one bad round doesn't mean you should give up the game.

Same with investing. It's best not to become too confident just because of some winning investments, but don't become gun-shy if you have a couple of losers. Research is the key to understanding your investment choices.

4. Process is crucial

When you're facing a crucial situation in golf, one of the worst things you can do is tell yourself "I have to make a good shot now." That extra pressure can cause you to become tense, which can lead to a poor result. Focusing calmly on following your shot-making process can increase your chances of success greatly.

Likewise, when making an investment, it's not productive to say "I have to make money on this one." That is piling on the pressure! Instead, a disciplined process – careful research and thoughtful analysis — can help with reasoned investment decisions. If your process is sound, there's a better chance your investments will be sound as well.

5. Learn from the experts

Charity Golf and Jacoline Loewen

How many times have people in your foursome offered advice on your golf game? People are generally well-intentioned, but just because something works for someone else doesn't mean it's right for you.

The same goes for those dinner parties where friendly stock tips pile up from people who just happen to know someone who knows someone. Investment advice that seems too good to be true often is. I often hear clients say I got this tip from this wealthy person and I want to invest into that stock. Do a bit more of a deep dive before getting off track from your investment strategy.

Follow me on Twitter @jacolineloewen
My books can be found on Amazon: amazon.com/author/loewen

Top Market Forecast Award for Jacoline Loewen

Jacoline Loewen
receiving the trophy from
The Ticker Club
for #1 Market Forecast 2017

Jacoline Loewen was awarded #1 Top Market Forecast by The Ticker Club, and received a trophy January 2018. 

The Ticker Club is a 100 year old club with leading members of the finance community, including the Canadian banks,  large funds such as Blackstone, Teachers and wealth managers such as Gluskin Sheff. 

Jacoline says her secret to winning was Pierre Ouimet. This is the second year UBS placed in the top 3 forecasts.

The importance of the client experience for Wealth Management

I found this to be a useful report by Scorpio Partnership on the trends of Wealth management. Below is my pick of the most important trend.

Google the phrase “client centric wealth management” (no hyphen) and you’ll be rewarded with hundreds of thousands of results. After all, the client is always at the center of the relationship between financial advisers and their investment portfolio, and wealth management firms focus on clients’ needs. Right?

Apparently not.

In a recent report, Scorpio Partnership struck at the heart of what it says is lacking in the wealth management industry: the client experience, or as one executive put it, placing “the customer at the heart” of the service experience.
“Wealth management should absolutely be built around client needs,” the report said. “Given the intimacy of the client/advisor relationship it may be hard to believe that it isn’t already, but the truth is that while many firms invest in listening to their clients, few put what they learn to work delighting customers day-in-day-out.”
As 2018 gets underway, we asked April Rudin, founder and president of The Rudin Group, about this disconnect between clients and firms; the “new” client experience; and why she believes 2018 will be the “Year of the Client.”
Below is a lightly edited transcript of the conversation.

CFA Institute:

I’m a little surprised that it’s 2018 and we find ourselves still talking about the importance of the client experience. What have you observed over the past year that makes you think this is an area that needs attention?

April Rudin:

Over the past year, I have noticed that while many wealth managers, and other financial services executives, are high-end consumers who value the client experience offered by luxury brands, for example, they struggle with translating that same experience to their own client offerings. For many firms and advisers, it means doing a 180 to see things from the clients’ perspective and how they value services, offerings, and even client communication. Something else I have seen is that some people who are using their smartphones and a variety of apps in their personal lives are reluctant or slow to adopt technology in their professional lives.

With $32 trillion (estimated) in the wealth transfer clearly underway, women and the next generation are reshaping the client experience. They value being treated and understood as individuals, yet much of wealth management remains in the “one-size-fits-all” mentality. Reconciling what clients want with what firms are offering will be the single most important area for the wealth management industry to focus on in 2018 and beyond.

The good news is that firms that get this right stand to have the greatest advantage in 2018 and beyond to grow assets under management (AUM) and gather new assets. And by the way, it’s iterative; not “one and done” — there is no single action or magic bullet. It must be an ongoing effort.

It is key for firms and advisers to keep their online/digital best foot forward. And on all channels. Today’s global investors are online and connected. They want their advisers to be as well.

Has Elon Musk's launch impacted the energy of entrepreneurs?

Money and scaling up your business is a key part of early day businesses. Self funding is one of the options, and then crafting the business and product until it is proven. Getting validation is a common characteristic of most of my best investments.

Holy Moly, Elon Musk achieved epic market validation for Space X by showing his Falcon Heavy launch to the world. 

Not only that, Elon has just executed what will become the text book case for branding with the video of the launch posted on Instagram. As I watched these videaos, the incredible achievements of reusable rockets returning to the launch pad, the cars lined up to watch just like the landing on the moon days, the thrill of seeing that iconic shot of the world with the astronaut sitting in a red Tesla, hood down, cruising through space on its way to Mars, my eyes filled with tears.

Suddenly,  Musk's crazy Tesla in space made on Earth by humans became obvious. This crazy, eclectic big dreamer, Elon Musk, just achieved his crazy goal. For attracting investors, crypto currencies seem dull by comparison.

The rocket launch highlight videos were created by Westworld co-creator Jonah Nolan. "The only way I know how to share [the Falcon Heavy launch] is a trailer," Nolan said. "It’s not for TV or a movie, it’s for the next part of the human story."

Elon Musk says your business should be about, "things that inspire you, that make you glad to wake up in the morning and be part of humanity."

This week, I am going to a startup lunch with top Toronto investors. I will be bringing that Elon Musk inspiration to fuel up my impact.

Game changer leadership of President Cyril Ramaphosa

Foreword by Cyril Ramaphosa

Since Cyril Ramaphosa became president of South Africa, many people know he wrote the foreword to one of my technology books and ask me about his character. What is he like?  If I were to sum up Cyril Ramaphosa, it would be to say he is all about disruptive leadership.

Cyril has an incredible mindset which is full of appreciation. He has emotional sense, people sense, but also an economic mindset. Gold appreciates, bitcoin appreciates, Cyril appreciates. What appreciation really means is that you give value. That is Cyril. He is not worrying about how he is going to get paid back. He is constantly giving greater value with generosity.

I was very fortunate enough to know Cyril when he wrote the foreword to my book on technology's impact on businesses and society in South Africa. He wrote about the changing potential for wealth in South Africa to reach more of the people.

Cyril's reflected on his own track record which was the accelerated African dream where he went from a poor Venda boy to President of South Africa. On that journey, Cyril had the courage to set up and run South Africa's first black union. It is easy to forget the brutal power of the government at that time and organizing any group could have resulted in death. Yet Cyril's inclusive leadership style helped the black union grow in power, He gained the respect of the union members and the management teams, becoming an essential part of the mining world. Cyril ran these union organizations for many years.

After being passed over by Mandela for the leadership of the ANC, Cyril went on to become the leading business man of South Africa, married into the wealthiest African family.

I was looking at Cyril's declared investments which give his stock ownership of South Africa's blue chip companies and also his private investments. It is great to see Cyril does private equity investments into exciting businesses such as Fever Tree consulting and McDonalds. This is a business man who understands all sides of the negotiation table. This is what will be the game changer for South African politics.

How did Cyril managed this meteoric rise in his level of success?

Cyril is a giver.

He has the mindset and behaviour of a man committed to win/win. As the head of the first black union, his ability to engage all people with his humour and warmth did its magic.  Mine owners and managers started to realize that their black workers were thinking people who could be brought on board for productivity boosts and better work practices to benefit all. Their opinions could be asked and they would no longer be silent. This is a happier work world. Win/win.
  

Women in South Africa were just beginning to rise up in the business world. At that time, I already had been the strategist for Investec Bank and my first book, The Power of Strategy, was a best seller and award winner. I remember Cyril was delighted to help me with my book. His foreword is full of the promise of the wealth of South Africa.  He gave me, a female, such support which in turn made me dedicated to my time in South Africa and to contribute to its economy and more.

Cyril was always making a bet on the future without concern about the returns. He is super succesful but also super generous. He now has become the leader of South Africa and he will bring that abundance of opportunities to the economy but also the society. The speed of change is accelerating. Cyril is the leader South Africa needs. He is the change South Africa needs and deserves. I am grateful to Cyril for believing in me and for all of his support.

Happy Valentine's Day

First step for business owners preparing for sale is to get a valuation

Perhaps that is why the recent research by Investor Watch reveals that nearly 60% of wealthy investors would consider starting their own business.

At the same time, the favorable economic environment is spurring some business owners to cash out. And it remains to be seen who will fill the void.

• 41% of business owners plan to exit their business.
• 80% will sell or close the business—or they’re not sure what to do. 
• Another 20% intend to give the business to family.

Business owners who plan to sell are far too often unprepared for the process. Less than half have had their business appraised, for example. I am always shocked by how many business owners think they only need an accountant and a lawyer to sell their business, The first step of getting a valuation by a professional advisor would quickly show them the value of their business.  Equipped with a reality check on their assumed price for their business, they can then see if their cash flow of their business will be a better long term wealth strategy or time to sell and invest the payout. Having an investment banker on the team to do the sale of their business becomes obvious after the sale of the business.

At the same time that business owners are thinking of exiting, 58% of wealthy investors would consider starting a business. Together, these trends are increasing the need for advice and creating growth opportunities for Financial Advisors.

Please give me a call if you are thinking about how to maximize the wealth of your business.  

We have much to offer business owner clients and prospects. From lending, insurance and retirement plans to pre-sale planning, Employee Stock Ownership Plans and more, All good conversations to have when it comes to building your long term wealth.

 

 

Join me on Twitter @jacolineloewen

 

Check out my book for business owners wanting to sell to private equity.

Money Magnet: How to Attract Investors to Your Business

Planning is a bore compared with running a business but 3 simple questions can help a lot

Business owners make their wealth through concentrated efforts. The key to successful transitions involves focusing that same energy on planning the next stage of life and putting their wealth to work through investments outside their own companies.

Planning is a bore compared with running a business. If owners want to fully benefit from their lives' work, they need to grit their teeth and start tackling those three life questions before they get answered for them by life's forces.

The problem is, most owners avoid thinking about their next stage, their businesses don't get sold properly, and they lose the wealth they spent their lives building.

"One business owner that we came across had no transition plan, no successor, a son in the business who did not have an interest in running it, and no estate plan at all," says Maria Milanetti, a partner at MarchFifteen, a consulting practice specializing in business transitions.

"The owner was 70 years old, running a highly successful business, and utterly oblivious to the risks for his family's future wealth."

This scenario is common in Canada.

Too often, the only part of a business that can be salvaged are its assets, but not a great deal more, leaving the family in a precarious position. The economy also loses a company that could have continued under new leadership.

Why is this sad lack of transition such a common scenario for too many privately owned businesses?

Milanetti says, "It's quite natural for founders and those running the business successfully to 'want to keep a good thing going' and to feel that they need to keep running the business themselves." 

 "Often they want to 'protect' others from this responsibility."

 But their reluctance to share how they make decisions or influence stakeholders with their next generation leaders can have long-term negative effects. Milanetti acknowledges it can be difficult to start the conversation around transition or succession. She recommends starting with the following three questions:

Have you thought about the next chapter in your business?
This question may prod an owner to be able to describe verbally a picture of the business within the next five years. As an extension of this question, it can be useful to include the next generation of leaders if there are any tapped to take over the business. Ask them to share how they want to build the business in the longer term. Like the son working with the 70 year old owner encountered by Maria, the truth will come out that they have no interest. Many next generation family members are not wanting to take over the business and doing this type of exercise will bring this urgent issue into the light sooner than later.

How can we plan that future together?
Suggest setting aside some time with a facilitator or business adviser and describe how critical conversations can be shared in a relaxed, reflective and safe situation. It makes it a safer process. It also means someone else brings energy and an outsider perspective to winkle out those tough questions business like to avoid but that need to be addressed.

What will your life look like in three years?
It can not be underestimated how difficult it can be to step away from a business, even if the Chairman role is still offered with a desk at the office. The emotional challenges of giving up control over a privately owned business and transitioning into a new role as “ex-entrepreneur” – whatever this new role may be – requires reflection about one’s identity and about other family members. This is not a natural state for most high-action owners. Dealing with this identity change can be very important to helping the transition to take place. However, this can be the most tricky question to bring up as it starts to deal with the prickly topic of the business transition. Peter Pan whispers that planning for life after the business means retirement, and that's for old people, not a dynamic business owner, no matter the biological age. That way of thinking can be disastrous for a family if the owner is forced to reduce his or her time at the business or stop altogether. It is better to address changes while everyone is healthy and has the time and energy.

 

"At every juncture," Milanetti says, "We recommend planning. That is planning for the mentoring of next generation leaders, for the transition between current leadership and successors and, most importantly, planning for the owner to be clear what will make their lives meaningful in their next chapter. These are not people who are used to doing nothing. they need to see the door opening to welcoming place."

 

Jacoline Loewen is director of business development of UBS Bank (Canada). 

She is also author of Money Magnet: How to Attract Investors to Your Business. 

You can follow her on Twitter @jacolineloewen.

  

The article above first appeared in the Globe and Mail online.

Learn from the Best

If I had asked people what they wanted, they would have said faster horses. - Henry Ford