Pure Perspective: Beyond True Expertise

Malcolm Gladwell’s 10,000-hour rule states that “the key to achieving true expertise in any skill is simply a matter of practicing, albeit in the correct way, for at least 10,000 hours.”   When you break this down, 10,000 hours is the equivalent to a little shy of five years at 40-hour work weeks. We believe that pure perspective is essential for “true expertise” to be relevant. ​Combine the definition of true expertise with our belief that experiences through generations served, thousands of case studies, and decades of witnessing our industry evolve, and you begin to see why we believe that true expertise isn’t enough without pure perspective. You need both. 

So, what is Pure Perspective?

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​I used to tell my kids that their perspective on a particular subject is different than mine. My perspective is different because of the experience I have from what I have been exposed to over a longer lifetime. However, perspective is also gained through the stories told by others based upon their experiences. Experiences are where perspective is gained and evolves. Your experiences. My experiences. Others’ experiences. We all bring enlightenment to the table. We can all learn from one another. 

Usually there is no single correct answer. There are choices and options to consider. It might be a family looking to transfer their wealth to the next generation, a business owner looking to create the right incentive for their key people, a company looking to transition to the next generation, a couple concerned with their “retirement journey” or just simply a family looking to get started with a plan for protecting what they have while building for the future.  Each of these scenarios carries with it a series of decisions and choices. Those decisions are based upon their circumstances. Their choices are based on gaining insights and being educated. The past experiences an advisor can share with clients help form a basis for better decision-making.

​Case Brief: One Plan, Three Generations

A widow with a financial plan in place established 20 years earlier was seeking to make sure that what was put into place was still working to her advantage two decades later. The client had multiple trusts and did not fully understand how to manage them from a tax liability and cash flow standpoint.  An audit of her insurance policies revealed that they were not performing and would require six times the premium than was currently being paid to maintain. Review of assets, cash flow, and available gifting resulted in establishing a new business structure to protect her real estate assets and to make it more efficient for gifting to the next generations. Current gifting was redeployed in order for the second generation to protect and build their estates for allocation to their third generation. The overall plan analysis helped produce more consistent cash flow, avoid unneeded risks, save significantly on future estate taxes for her family, and more adequately protect real estate holdings meant for the next generation. Currently monitoring the generational wealth plan on a quarterly basis, small tweaks are made periodically to take advantage of current tax laws. The entire family remains involved in the process, receiving quarterly reports, empowering them to make informed decisions for long-term wealth strategies into the future. 

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A comprehensive, holistic approach to your wealth planning should focus on the unique intricacies of your life, goals, and desires. Guidance and solutions should be based upon what matters most to you. What is in your best interest today and tomorrow helps guide our advice. Possibilities are formed by experience, time, changing environments economically, changes in tax code, and the stages in life you go through. However, it is our Pure Perspective approach to financial planning realized over decades and generations being shared with you that makes a difference in the informed choices you make for your future.  

That’s why we have also named our blog, Pure Perspective. Thank you for reading our first edition.
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Empowering generations,

Matt

Matthew Hudack, CLU, ChFC

P.S. In addition to this blog, we have added an Insights Library to our website featuring articles from trusted resources. We plan to add to it monthly with each edition of our blog. 

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