| The WPI is the oldest established “wealth preservation” and "asset protection" educational institute in the country. Having said that the WPI is the oldest wealth preservation educational institute of its kind, it sounds strange to state that the WPI was established as recently as 2004.
Why did it take so long for a wealth preservation institute to be created? That is a good question and one without a definitive answer. It would seem logical that in this country where personal injury lawsuits run wild that someone would be educating attorneys, CPAs, financial planners, insurance advisors, and real estate brokers on what could be the most important topic to any client with wealth, that topic being “asset protection.”
The WPI, the CWPP™ and the CAPP™ certification programs were created out of frustration of many of the best “advanced” planning specialists from around the country. While it might sound strange to create such an extensive educational institute and certification program out of frustration; that is exactly what happened.
Think about the following question:
Can ANY client’s estate or financial plan be complete if the plan does not address the problems of asset protection?
We at the WPI believe the answer is an emphatic NO.
Think about the following fact scenario:
Dr. Smith who is age 55 and lives in Tennessee goes into a local law firm to implement the finest estate plan he can buy. His goal is to pay no estate taxes and he does not want to worry about running out of money in retirement (due to poor investing). Assuming the team approach to help this client is implemented, Dr. Smith also brings in the finest CPA in town and the person who is considered the best financial planner.
Assume Dr. Smith has a $2,000,000 brokerage account, a paid off $500,000 vacation condo in Florida, $1,000,000 in local rental real estate, a $1,000,000 home and a $1,000,000 IRA all in his name. (There are many Dr. Smith’s in this country).
Dr. Smith pays the attorney $5,000, the CPA $3,500, the fee only financial planner $3,000 and he is given the “finest” estate and financial plan that can be purchased in his area.
Dr. Smith feels good about his plan due to the fact that the advisors used have great reputations, he paid a lot for the “comprehensive” plan and everything in writing looked very official.
Ignoring the fact that none of the three advisors know many of the “advanced” techniques in the CWPP™ program (which would have been more beneficial to Dr. Smith to make his traditional estate and financial plan better); what is the problem with the above situation?
The answer is that the topic of asset protection was totally and completely ignored.
Let us now look at that bad fact scenario that is happening daily around this county to the Dr. Smith’s who practice medicine.
Assume Dr. Smith (orthopedic surgeon) went into surgery the day after his new estate and financial plan is put in place and accidentally cut off the wrong foot of a diabetic patient.
What is going to happen to Dr. Smith? He is going to get sued for $5,000,000.
Assume that Dr. Smith has $1,000,000 worth of malpractice coverage and ultimately loses the medical malpractice suit where a jury does in fact award the plaintiff $5,000,000.
How did the $11,500 world’s greatest estate and financial plan protect Dr. Smith from the $5,000,000 verdict? It did NOTHING to protect his assets. If the plaintiff with the $5,000,000 verdict goes after Dr. Smith’s assets, there is little Dr. Smith can do to prevent the court from directing Dr. Smith to give his assets (including the IRA money which is not protected in Tennessee) to the plaintiff/creditor to satisfy the judgment.
Are the CWPP™ and CAPP™ certification courses needed?
If your answer is not a resounding "YES" just because of the above fact scenario, we at the WPI would be quite surprised.
There are many other reasons why anyone with wealth needs asset protection and those fact situations are explored in detail in the certification programs.
In addition to the very important topic of asset protection, there is NO educational entity nationally that deals with what we at the WPI call “advanced” planning. It is important to define advanced planning and the following is a summary of the WPI's definition of advanced planning:
Advanced planning is planning for high-income/net worth clients that is derived from topics that few advisors in the country are aware of (or if they are aware of the topics, advisors know too little about the topics to incorporate them into a plan for clients).
What are some examples of advanced planning techniques (besides asset protection)?
1) WealthBuilder® Annuity is a program that allows small to medium size business owners (or individuals in some circumstances) to defer taxable income of between $50,000-$5,000,000 a year into a wealth building program where the money can grow deferred for up to 30 years (this is ideal for business owners looking for supplemental retirement benefits).
2) International Tax Planning. Just saying international tax planning will make many people uncomfortable. Why? Because they do not have even a basic knowledge of the subject matter. There is nothing complex about using an international life insurance policy to help clients reduce or eliminate short and long term capital gains taxes or income taxes. When advisors learn how simple and beneficial international tax planning can be to many clients, then they can call themselves "advanced" planners who are armed with the knowledge to provide the "best" advice to their clients.
3) The QPIP™ is a plan that helps clients mitigate the worst tax problem they have in their estate plans, i.e., the 70-80% tax trap of money in IRA (that occurs upon death of a client with an estate tax problem).
4) Section 79 Insurance Plans are a good way for medium to small business owners to write off, through the business, a significant amount of cash value building life insurance premiums where the life policy is individually owned by the client. The cash value life policy can be used by the client for supplemental retirement benefits, if needed.
5) Accounts Receivable (A/R) Leveraging when done right (which is rare due to the many poorly constructed plans in the marketplace) is a nice tool to asset protect a business’s A/R while at the same time creating a potentially large supplemental retirement benefit.
6) Closely held Insurance Companies (CICs) are a nice tool for many clients to take large deductions for needed insurance coverages where the premiums are paid (and deducted from the client’s company) to the client’s own insurance company. A CIC is a terrific business tool for many medium to small businesses and can function as a nice wealth building tool (with good claims history) for the owners.
The main issue that makes “advanced” planning "advanced" is that the topics are not widely known to the general public or to the advisor. If someone does not know of a topic, it is either no good or simply too advanced for the average client and therefore not worth learning.
As stated in the proceeding paragraph, the main reason “advanced” planning topics are not known is because they mainly help the top 5-7% of the income earners in our country or the top 10-15% in built up wealth. Because topics do not apply to the masses, educational entities of all kinds (the bar and CPA/Accounting associations, insurance and financial planning educators) do not deal with the topics.
Additionally, because “advanced” topics are perceived to be technical and complicated, educational entities shy away from those topics because of the perception that the topics will be “over the head” of most of those they are educating.
We at the WPI believe there is nothing terribly complicated about the “advanced” plans available to help clients. What is lacking in the educational community (until now) is an educational entity that focuses on “advanced” planning and has taken the time to break down the supposed complicated topics into material that is easy to understand, learn and apply to our most important clients (the ones that have high-income or wealth).
What are the key powers of education through the WPI?
One key to education through WPI is that the certification programs cater to advisors that either have or want to cultivate the high-ncome/net worth client. If you are reading this and you do not have clients (or do not want to cultivate) clients with income in excess of $150,000 a year OR a net worth in excess of $2,000,000, you probably are not a good candidate for education through the WPI.
While we believe that many advisors will go through a certification program at the WPI simply to have alphabets after their name to build credibility, we believe those that will benefit most from the certification program are what we would consider the high-end advisor (who does or wants to deal with wealthy clients).
The Second key (with equal importance) is that relatively speaking a small percentage of the advisors (CPAs, attorneys, financial planners, insurance advisors and real estate agents) in this country will take the time to go through a WPI certification program. While we at the WPI believe every advisor looking to provide the best advice possible for their clients should go through a certification program, that is simply not going to happen.
Therefore, those that take the time to go through the course and pass the examination will have huge leg up when competing with local advisors. It does not matter if you are currently a CFP, CLU, J.D., CPA, MBA or carry another designation. If you do not have the CWPP™ or CAPP™ designation, you do not know many vitally important topics that are a must when dealing with high-income clients or those with sizable estates.
The vast majority of the material in the WPI courses are absolutely unique and has come from specialists in their field from all over the country. We invite you to look over the curriculum for the three day course and will let you decide for yourself if obtaining an education and an educational certificate from the WPI is worth your time and money.