Tax Warrior Perspectives
Tax Warrior Perspectives

Episode 1 · 10 months ago

Risk Management for High-Net-Worth Families

ABOUT THIS EPISODE

Today's wealthy families are growing assets at a record pace. And, we are on the precipice of the largest transfer of generational wealth in American history. Yet, this wealth is at risk like never before. Underinsured or mis-insured families may not even know the scale of their exposure. So what is a family to do? Risk management expert Tamar Silberberg Shiffman, CEO of Concierge Insurance Solutions, joins us to give her insights on protecting the wealth families have worked so hard to build and what you can do to protect yours.

Get the full show notes and more resources at TaxWarriors.com/Podcast.
 

Welcome to tax warrior perspectives, where our goal is to bring you insights for building, sustaining and growing your wealth. Join our expert discussion of the most crucial ideas and strategies for including tax in your financial plants. And now here's your host, Jane sketchetty. Hello, I'm Jane Sketchetti and this is tax warrior perspectives. This is our first podcast, so we're very excited. Today we have a great guest. Tomar Silberberg, Shiftman, will be joining us and I thank all of you for joining. We think we have an interesting topic, not one that you generally hear much discussed. So tomorrow is the CO founder and CEO of CONCIERGE's insurance solutions. That's a mouthful. Prior to cofounding concierges insurance solutions, she and her husband built a multi million dollar real estate business which she developed the luxury residential side of the company. So tomorrow, we are so excited to have you here and excited to get started into how you went from the sexy real estate business to maybe a little blander industry of insurance. Well, Jane, first of all, thank you so much for having me it's a true honor. I have the utmost respect for you, your partners and everything you guys do. So how did I go from real estate to personal insurance? It's a very, very, very interesting want to hear about this journey. Hm. Well, I believe that everything in life, you know, is about luck and timing and how capitalize on them. So I think our stars aligned. It's really a three prong story, right. The three prongs are my three partners, the three founding partners of concierge insurance solutions. It's me, Aaron Tobin, and my dad, Paul...

Solberberg. So let me set this scene. Okay, it's two thousand and sixteen. I was in a real estate and on maternity leave, you know, after having my fourth child, and I was questioning all of my life decisions, because that's what you do when you have a fourth are, and we should say that tomorrow, all your children are under the age of eleven right now. So sure we are dealing with a stay in place with four children under the age of eleven. Correct. I enjoy a lot of chaosis, the way I'm going to put it. So, Aaron, he's a technical giant in the personal insurance field. I call him my insurance grew and he was an intersection in his life. He could continue climbing the corporate ladder or he could start his own broke bridge. And then there is my dad, and he's an interesting story, but I'm going to look back to him in a moment. So one day in two thousand and sixteen, my parents chimney gets struck by lightning. Now, there was so much frustration around the way this claim was handled that I called my buddy Arran, and you know, he gave me some insight into what was going on. But not only do you give me specifics in regards to the actual incident, he also highlighted some major concerns regarding the PNC personal lines market in general. First, the insurance market is a reactive industry. Shocker right there, right right. Second, there's a lot of benign neglect that results from the way in which most brokerages are structured. You See, the problem is that most people in the industry sell the insurance, pass it on to an administrator and then don't really pay attention. You don't even really get an annual review. You just kind of expect an annual increase in the mail I was shocked by all of this. That's so true. I love the benign neglect at that. It's a perfect description. Yeah, and we approach my dad the third prong right.

He built his former company, cms too amusing heights before he retired in two thousand and thirteen, at which point he wrote a book and he taught and it was all great. But Trust me, this man is not suited for retirement. I Know Your Dad. I know that is an accurate state it. So this is perfect right. The opportunity allowed him to access is prior network while not competing with this prior partners to build another amazing company and to help people by properly structuring their safety nets. Another part was it gets to work with me. Now he has nicknamed Me Pharaoh, so I'm not really sure where he scans at this point, but we are adding real value. Yeah, so tell me what. So you're in insurance. You're in that personal and casualty insurance area. What distinguishes your company from what's out there in the market? What do you provide that is so different and valuable? We take a holistic and multigenerational approach versus the traditional transactional approach. So we perform a comprehensive analysis in order to properly structure our clients portfolios. I mean it's scary how many people who have significant wealth walk around with only like two or three million and excess liability, which is commonly known as umbrella coverage, you know. But the verdicts, they just keep getting larger and larger, which means that these very smart and sophisticated and hard working people are vulnerable. So, like I said, we do this comprehensive analysis, we properly structure our clients and I know that insurance, especially for someonal insurance we can be very boring, but there's actually a lot of excitement around this profit that right, I can proudly say to this point we've saved over ninety percent of our clients anywhere from ten to forty percent in annual premiums while doubling their coverage. I...

...mean, that's tremendous. But that excitement, the safety net and the cost savings, you know, that's only our starting point. It's really the concierge level service, it's our multiple touch points a year, it's our annual face to face reviews with our clients. These are the things that create that long term value. At the end of the day, families and their assets and the insurance market itself is it constantly in fluffs. So really it's having these high level touch points throughout the year that differentiate us and add that long lasting value. Yeah, and I've watched that. But what amazed me was we had asked you tomorrow to write a short blog for us and the blog talked about are you over or under, and short and some of the things that you were just discussing. But then it says is your vacation home listed in your umbrella policy? I can tell you my partners and I all stopped and said, you mean it's possibly not. So these are the kinds of quote holes. It's one thing to save someone a premium, but I think you're talking about really saving them exposure to multimillion dollar lawsuits. Yeah, it's so crux. These people are so vulnerable and for no reason. So it's really a matter of you looking at the policy, either changing the insurer or expanding the coverage or adding riders, I mean all the traditional ways, but it's done in a thoughtful process, is what I'm hearing. Yeah, exactly. It's being proactive, which gets us to the next question. So this isn't for everyone. Right like it's and not that not everyone should be paying attention to it. But what you've built, this high touch, this pay attention to what's going on, this looking at the level of service. Tell me more about that ideal client that really appreciates what you have built at concierge's insurance solutions. Well, I like to classify our clients into three buckets. So...

...our first is our ideal client. It's someone who has two to three homes and that person or their homes can be located anywhere. The second is our rising stars. These are the people who have the base at which we can at value from a monetary perspective. You know, they have that million dollar plus home and are working their way towards being our ideal client. And the third is our centers of influence, such as yourself. You know we would go above and beyond for you or any of your clients, even if they don't fall into the prior to buckets, because there's nothing more important in life than relationships. And what I liked to was, can you talk a little bit, have a how you talk to your clients about how to mitigate the risks that they're trying they're paying costly insurance to cover. Yeah, so a lot of it has to do with our it starts, I should say, with our comprehensive review, right. So what does that include? Tell me what what's you say? I want to comprehensive review. What does someone need to do? Well, I like to believe we make it as easy as Sunday morning. Right, just get us the copies of your declaration pages and we do the rest. I mean behind the scenes, we're doing a deep dive into the details of your portfolio, while taking that holistic and multigenerational approach to the solutions we provide. It really has to do with educating you as to what is out there, what the insurance carriers are pushing, what devices and technologies out there so that you can mitigate risk. Cyber security is a massive issue that we're talking about with our clients in today's Day and age, family risk management education. That has to do with the excess liability. Most people don't understand that. Like I said, you know personal insurance, while it is personal, it is a multigenerational conversation. So how do we affect one another? And then I really think it has to do with US focusing on some of the major gaps that we've seen. In the end, sure you know, in people's safety ness, you know it has to do with...

...being over and short. Are you over in short? Right? Again, in the homeowners policy, there is a formula that's set your homeowner's dwelling limit. From that you have a formula for fifty percent of that dwelling limit being contents and twenty percent being other structures. Most of the time there's no conversation that's being had around those numbers and we're seeing a lot of overinsurance there. You could be under insured, as I said, you know in regards to access liability and in today's Day and age, to increase that number is relatively nominal, especially when you think about what could happen in relation to an event. So that's another area. You know valuable articles, your fine arts and your jewelry, your collections. There's a lack of discussion that's happening. We believe that you need to have a combination of scheduled and blanket coverage in order to really avoid any gaps. So we work with our clients to find what's the right threshold for which type of coverage. And then, Jane, you know you and your partners do an amazing job at being proactive. So all trust and LLC's they should be listed as named insures to cover their assets and liabilities. They should be listed on that excess liability. But again, that's a discussion that you need to have with your broker in order to determine what goes where. So tomorrow, not to interrupt you, but as you're saying that, I'm thinking about how I even added all these elements of insurance in my life. Not of that was done comprehensively, thoughtfully interactively. It was done that I had my house insurance. Oh, I do have a vacation home, I have my vacation home insurance. Gee, I better add a rider. Oh, I have the in car insurance. Well, now I need to have some jewelry, because I did have that break in once and...

...it wasn't covered. That wasn't a good situation. Right. Like all these pieces are separate. And then if you do add for the higher net worth clients that we have who do have airplanes, who do have boats, who do have more than two properties, they have three or four properties. Sometimes young children driving multiple cars. I'm like, as I'm set thinking this and as we have seen working with you, clients are doing insurances one offs and they're not comprehensively putting it as a showcase as part of what they're trying to do. And yet most of these clients are very conscious about risk, aim to mitigate it, aim to really, you know, do the right thing. But there's not anyone that helps you with this until you I'm sure there are some gems out there. I can't be the only one, but but she's you're the only one on our my podcast right now. So that's okay and we do a really good job. I like to believe we do a really good job. It's interesting because most people, again, the insurance industry is reactive and it has taught us to be from day one. Right, it starts with those middle market commercials, you know, find the best price shop around and you start with your renters insurance right. Then you go to your car, then you buy a home and slowly, slowly, you accumulate. Well, if you're lucky enough to be an entrepreneur and own a business, a broker will come and try and go for that business and take you on as well, right, claiming to give you this holistic approach, but really it's two different beasts. This the way I like to see it. Your personal insurance, you need an advisor in this space, just as you can do advisor exactly just as you would, and actually one of the things I think we share in common, Jane, is our ideal client, right and I think that what would be most appropriate for an ideal client of tap,...

...you know, the tax warrior client. Moving forward, I think that they need to have an independent broker who is not tied to any insurance company so that they are always putting their client first. The broker should be contracted with the top high net worth carriers, who are currently Chub, AIG, pure vault and nationwide private client. The broker needs to be doing a comprehensive analysis and shopping the market every one or two years for your clients, and they should provide the entire emily with white glove confier service. Right now, I'm thinking of how many times you look at your insurance and I think you're right. You just look at the renewals and unless there's an outrageous increase, you probably aren't inclined to go through the pain of replacing it and hence why you your business has a real need, you know, truth be told. So I knew to Mar's dad and Paul asked me to meet with Tamar and then after he told me or asked me to meet with Tamorrow, he didn't have to tell me to meet with her a second, third, fourth or how many times we've met or worked. I just enjoyed her energy. We hit it off immensely. We talked about being MOMS, we talked about being businesswomen and we talked about our clients and tomorrow. What I do like is how much you care about your clients and how that independence, just like our independence, matters and in the end you're trying to do the same thing for your clients that we're trying to do. We try to reduce taxes, we tried to see tax as a business strategy. You're looking at insurance, you're trying to be strategic in the types of insurance they need, and all of that is to sustain their net worth or increase their net worth. Right like. That's the bottom line. We want the family to benefit from this. So I think that's why we hit it off so well. In addition, to the fact that we just like to chat and talk together. In fact, we had to make sure we had specific topics to cover because we might...

...start talking about our vacation lands. So this is all very fascinating. I'm going to ask you to tell me what you think is the most important thing you want our listeners to take away from our conversation. But then, before we hang up, I do want to get back to the personal side. I think the most important thing for the listeners and for your listeners is one you know there's a hole in the PNC personal lines market and whether you are with a high net worth carrier at the moment or not, whether you have a longstanding relationship with your broker or not, it is always important to get a second opinion, and independent second opinion. It is important to continuously, on an annual basis, review your portfolio because, like I said, for families and their assets, along with the insurance, market is constantly in flux and you need to have an advisor that will properly guide you so that you are structured to mitigate rest so tomorrow, when people want to reach you, they can look for you on your linkedin but how else can they reach you. They can go to the website. There is a phone number there, my emails there and I'm available two seven, and there will be links on our tax warriorscom website so that all of you can reach out to tomorrow or you can reach out to me personally and I will put you in touch. So, Tamar, I love talking to people and what I'd like to do is ask you a personal question, because I think that's important, is that people can understand whom what you are. So maybe a question and give yourself a second to reflect. When did you realize that you can make a difference in our world? And I'm not talking about Your Business. Take a second and think. But when could Tamar shiftman realize that she can make a difference...

...in our world? So that's a really good and really tough question. If you'd ask my dad, he'd say right out of the womb. You're rush. I'm going to give you three ages. Okay, before I do, I'm going to give you a little context. I like always setting the scene. I was born into a family that has deep rooted values and continues to teach me to be there for the people I love and to give back to the community. So I was twenty three when I walked into a bar, thought the bartender was cute gave him my number for a free drink. Weather Fortunes later, I learned there's no such thing as a free drink. wrection, but you'll have my husband. I mean really, he is one of the most amazing, smart, rational and strategic people I know. He's an incredible entrepreneur in the real state industry and I am honor to have him as part of the concierge advisory board. Okay, that was one too. Is I was twenty six when I realized that Philly was lacking a stepping stone into philanthropy for young professionals, and that's when I started the spruce foundation. HMM. And then, thirty three, I was exposed to the huge hole in the PNC lines market and I knew I could help people with their safety nets. But so what you do is you look for little problems in the world and try to help and eat at each moment. It's nice that you reflect that it helps make a difference in the world. Yeah, I mean it goes back to, you know, the beginning of our conversation, right. I really believe that life is all about luck. And timing and you can capitalize on it. I mean I've been presented with opportunities and was lucky enough to see holes that could be fixed and I capitalized on them. But please note I don't do any of it alone. I just surround myself with the best. There you go. Well, we asked you to be on our first tax warrior perspective podcast. Again, people can reach to Mare suber Berke...

Shiftman, either on her website for concierge insurance solutions or her linkedin profile, or you can go to tax warriorscom and we will have links to reach to more directly or through our firm, drucker and Sketchetty, tomorrow. Thank you so much for joining us. I really really enjoyed hearing how the business started, listening to you distinguish what you do in the market. We talked about your ideal client. I think it's very much the ideal client is similar to what is, I drucker and Sketchetti's ideal client, and I think the takeaway is that we should pay attention to this, that someone needs to focus. I'm going to steal some of your words. I like benign neglect, comprehensive thoughtful review and the insurance industry is reactive. So, for those of you who might have been trying to make mental notes, I would say those are the three takeaway words, are phrases that I would recommend and tomorrow. Thank you so much, good luck to you, and thank you all for joining tax warrior perspective podcasts. This is Jane Scacchetti. Thank you for joining us today. We hope we've shared our expertise in a way that positions you to discover the best strategies and ideas to build, sustain and grow your wealth. If you like to listen to more episodes, you can subscribe on your preferred podcasting APP or visit our website, where you will also find show notes and important disclosures. Tax Warriorscom podcast. This has been a production of twin flame studios.

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