Small-Business Owners Plan to Exit, but Unprepared to Do So

June 14th, 2016, Comments Off on Small-Business Owners Plan to Exit, but Unprepared to Do So.

Small-business owners planning to exit their businesses for retirement or other reasons may be in for a rude awakening.

New research conducted by Securian Financial Group shows that the vast majority of small-business owners are unprepared for exiting their businesses. The financial ramifications, especially for business owners counting on their companies to fund their retirement, could be significant.

“While 54 percent of business owners plan to leave their business in the next 10 years, 72 percent have taken no exit planning action,” said Andrew O’Brien, who directs Securian’s business owner client solutions group. “For most small business owners, the business is by far their largest asset. Not properly planning for the sale or transfer of their business can leave a lot of people—including the business owner—in a very difficult position.”

The study found that 50 percent of small -business owners want to sell their business to a partner, a key employee or a third party, while 37 percent want to transfer the business to family members.

“A sale or transfer of a business involves multiple financial and legal steps that tend not to work well for the owner when rushed,” said Channing Schmidt, who leads a team of Securian associates who advise financial professionals and their business-owner clients on advanced planning. “A written exit plan developed by a team of experts working in concert with the business owner is the best way to prepare for a successful transition.”

Six hundred small business owners with an average of 27 employees and annual revenue ranging from $250,000 to more than $20 million were surveyed in August and September of 2015 for the Securian Small Business Owner Life Stage Study. More information is available at

Ayo Mseka

New Workshop: Serving your Clients With Fiduciary Compliance

June 9th, 2016, Comments Off on New Workshop: Serving your Clients With Fiduciary Compliance.

If you are an advisor working with qualified plans and IRAs, you do not want to miss NAIFA’s Skill Builders Series Workshop, “Serving your Clients with Fiduciary Compliance.” This four-hour course will give you the information and training you need to succeed in today’s complex regulatory environment.

By now, you have heard of the DOL’s new fiduciary rule, which will greatly impact your practice and your clients. The rule fills more than 1,000 pages and creates complicated requirements and restrictions. By attending the DOL Workshop, you will understand the rule’s requirements and restrictions, develop strategies to implement the rule within your practice, and become compliant while serving the needs of your clients.

Learning objectives

When you complete the course, you will:

  • Understand the DOL objectives as well as the details of the new rule as they affect advisors and financial institutions. You will know your fiduciary duties and obligations under a best interest standard when dealing with your clients, and you will ensure that your compensation is reasonable and conflicts are disclosed.
  • Define a decision-making process that provides clear guidance to practical, readily identifiable, and easily adaptable steps to satisfy the requirements of the DOL fiduciary rule.
  • Identify the stewardship attributes essential to understanding your role as a fiduciary.
  • Learn best practices and skills associated with a procedurally prudent investment process.
    Overview of the program

The “Serving your Clients with Fiduciary Compliance” workshop will teach you how to define your roles and responsibilities as fiduciaries. It will also explain specific provisions in the rule, including the Best Interest Contract (BIC) Exemption and Prohibited Transaction Exemption (PTE) 84-24 requirements.

Using case studies and interactive exercises, the course will provide strategies and tactics for identifying your clients’ goals, objectives, risk tolerance, time horizons, expected outcomes and other details necessary to comply with the rule. The workshop will also help you develop client-stewardship attributes required of fiduciary advisors.

Structure and cost

This DOL Workshop is a four-hour program delivered in a live classroom format that includes lecture, case studies, and interactive participant exercises. The cost of the program is $195 for NAIFA members and $295 for non-members. Included in this fee is free access to monthly live chat sessions with NAIFA Government Relations experts during which you may pose questions about the rule and how it affects your practice.

For information about a DOL Workshop in your area, contact your State or Local NAIFA Association.

Ayo Mseka