The Secret Report

The Secret Report

Happy Thanksgiving everyone, this is Pete Secret with your industry update for the month of November.

We've arranged some articles that I think you would find interesting and compiled some research & recent advisors moves to keep you up-to-date.?


High-Net-Worth Highlight

Where the Richest Americans Live—From Elon Musk to Bill Gates:

Elon Musk, known for his minimalist pledge, has a history with multimillion-dollar estates. Jeff Bezos enjoys a luxurious Miami waterfront residence alongside vast Texan lands. Larry Ellison boasts a $173 million Florida mansion and almost an entire Hawaiian island. Warren Buffett opts for simplicity, residing in his longstanding Omaha home. Google's Larry Page owns several properties, including the Pedro de Lemos House in Palo Alto. Rounding out the list, Bill Gates maintains a grand Medina estate and a California oceanfront property.

Read more here.


Art

Enthusiasm Returns to Auctions as Sotheby’s Contemporary Sales Total US$306 million:

Sotheby's recent contemporary art auctions in New York concluded two weeks of sales with a robust total of nearly $306 million. The auctions, which included ultra-contemporary and contemporary art, surpassed the low presale estimate of $243.2 million. This marks Sotheby's highest total in four years, contributing to its $1.1 billion sales in November. The sales demonstrated a strong appetite for quality contemporary art, bouncing back from a weaker spring season. The overall success of the auctions, with several artist records set and consistent interest from buyers, indicates a rejuvenated art market.

Read more here.


Invest

The IRS Is Cracking Down on an Insurance Strategy Commonly Used as a Tax Shelter:

The IRS is increasing its enforcement against micro-captive insurance used by businesses as potential tax shelters. Enhanced by the Inflation Reduction Act, the agency is using advanced technology to audit these schemes. Micro-captives, which offer tax benefits for insuring business risks, are under scrutiny for being misused as investment tools rather than legitimate insurance. Recent court cases have varied in outcomes, reflecting the complexity of determining the legitimacy of these structures. The IRS's intensified focus could lead to challenges for businesses with existing micro-captives, facing possible audits and legal issues.

Read more here.


Growth

Using content to scale your reach:

Financial advisors can effectively scale their online presence on LinkedIn by consistently posting insightful content such as market analyses, industry updates, and thought leadership articles.?

  • Consistently Post High-Quality Content: Share insightful articles, industry news, and thought leadership pieces regularly. Consistency is key to keeping your audience engaged and attracting new followers.
  • Engage with Your Network: Actively comment on and share posts from others in your industry. This not only fosters relationships but also increases your visibility to their networks.
  • Use Relevant Hashtags: Incorporate trending and relevant hashtags to broaden the reach of your posts beyond your immediate network.
  • Participate in Groups: Join and actively contribute to LinkedIn groups related to your industry. This can help establish you as a knowledgeable authority in your field.
  • Leverage LinkedIn Analytics: Utilize LinkedIn’s analytics tools to understand what content resonates with your audience, and tailor your strategy accordingly.
  • Create Multimedia Content: Diversify your posts with videos, infographics, and images to make them more engaging and shareable.


Research

Research from Top Firms:

Goldman Sachs - The global economy will perform better than many expect in 2024

Goldman Sachs Research forecasts that the global economy will surpass expectations in 2024, building on a stronger-than-anticipated performance in 2023. Key drivers include robust income growth, diminishing impact of rate hikes, and a rebound in manufacturing. The report predicts a 2.6% global GDP growth, higher than general consensus, with the U.S. leading among developed markets. Central banks may cut interest rates in the latter half of 2024 to support growth, particularly in emerging markets. Japan and China are unique cases, with Japan adjusting inflation control measures and China facing ongoing economic slowdown challenges despite short-term stimulus.

Read more here.


Firm Highlight

Goldman Sachs' RIA Platform:

Goldman Sachs' RIA platform stands as a beacon in the wealth management landscape, catering to discerning clients with a need for bespoke financial solutions. Here’s a snapshot of what sets them apart:

  • Extensive Global Reach: Operating from numerous offices worldwide, Goldman Sachs' RIA platform is synonymous with global financial acumen.
  • Robust Asset Management: Entrusted with managing a substantial volume of assets, reflecting their trusted position in the market.
  • Specialized Client Focus: Primarily serving high-net-worth individuals and institutions requiring sophisticated investment strategies.
  • Industry Recognition: A significant portion of their advisors are consistently featured in top industry rankings, underscoring their expertise.

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Goldman Sachs RIA platform is more than just a wealth management service; it’s a partnership that aligns with your financial journey. From intricate investment strategies to customized wealth preservation plans, their approach is centered on understanding and fulfilling unique client aspirations. They combine their vast resources with a personal touch, ensuring every financial decision is made with your best interests in mind.

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Curious about the finer details? Click here to schedule some time for a no-obligation call over the platform.


Deals & Models

Current landscape:

W-2 firms are still attracting top performers with lucrative deals +340%, influenced by various business factors. Deals have not softened at all in the w-2 to w-2 moves.

Independent channels offer variable deals from 15% to 150% up front with standard back-end opportunities. The payouts range from 80% to 93% based on many factors. ? Entrepreneurial advisors could consider Hybrid or Pure RIA models, less too little upfront bonuses but offering significant long-term enterprise value. Some firms we work with are offering unique liquidity options through equity or loans as up-front incentives. ? Meanwhile, the RIA market (selling or buying) market has shown some pressure and decreasing multiples. High-value advisory firms with assets over 1Billion are still commanding up to 10-13x of EBITA based on business strategy strengths.

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Want to see what a deal looks like for your business? Click here to see what specific offers look like for your unique situation.


Marketplace

Noteworthy moves:

Every month we compile a list of some recent advisor moves that we would like to spotlight. Here are some examples:


Rockefeller Reels in $3-Mln Merrill Broker in D.C. Suburbs

Rockefeller Global Family Office has scooped up a Merrill Lynch private wealth advisor who produced $3 million in annual revenue, according to a source familiar with the move.

Read more


Steward Partners’ Second Act Starts with Buying Indie Firm Managing $3.2 Billion

Steward Partners Global Advisory has signed an agreement to purchase Freedom Street Partners, an independent practice with $3.2 billion in client assets, Steward CEO Jim Gold said on Tuesday.

Read more


RBC Reels in Merrill Team Managing $1.37 Billion in Miami

RBC Wealth Management-U.S. on Thursday landed a Merrill Lynch team in Miami that oversaw $1.37 billion in client assets, according to an announcement.?

Read more

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