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The Hoopis Performance Network has formed alliances with industry organizations that complement our existing resources, products and services. Course Catalog Our digital resources are designed to be scalable and customizable depending on your organization’s virtual learning and development needs. For more than a decade, we have been providing digital learning solutions when, where and how your financial professionals and employees need it. Clients in over thirty countries throughout the world leverage our digital content to help them keep pace with the ever-evolving challenges of learning and development in the new world. HPN University helps getting new advisors off to a fast start or reignite experienced advisors to get to the next level? Either way, our digital content and learning solutions are designed to fit your organization’s unique needs. Our content solutions are scalable, customizable and designed to increase advisor productivity and retention. View Catalog EDGE helps leaders succeed at every stage of the leadership journey. This comprehensive digital content library teaches essential skills for building a thriving business, creating a highperformance culture, and everything in between. Whether you want to strengthen your own leadership skills or build your leadership team, and whether you are new to leadership or have years of experience, EDGE has a solution for you. View Catalog Try It Free for 14 Days Get full access to the platform—risk-free. No credit card. No commitment. Just results. Start building your advisor bench today. Start Your FREE Trial

Financial Wellness Save or Pay Off Debt Calculator: Saving vs using the money you have in savings to pay down debt. Try Our Save or Pay Off Debt Calculator Having savings is important, especially when the savings are part of an emergency fund or a hedge against a loss of income. However, when you also have debt, in the form of an outstanding credit card balance or loan, you might want to consider whether you are better off using the money you have in savings to pay down debt. Back to Financial Calculators We Invite You To “Test Drive” Our Financial Wellness Content Today! Test Drive

Next Item Previous Item Go back to White Papers List Advances in computer technology have been dizzying — from fixed desktop websites to responsive design desktop sites, mobile web sites and now apps (applications). In 2017, according to training and development firm Vantage Path, sales of tablets will be greater than those of computers and laptops combined, a worrisome trend for the traditional web, set in motion, ironically, by the successful inclusion of the Internet on mobiles. The traditional web is constantly losing ground to apps. It gets worse — the surge in the use of apps has resulted in a showdown of many mobile websites. Even many web companies are confessing their preference for mobile app users over web users. Still, some organizations, including many insurance and financial services companies, continue to view the use of mobile websites and applications as merely a supplement to traditional web-based e-commerce. Big mistake! The companies that embrace a complete shift to mobile devices and apps gain a competitive advantage because they can satisfy their customers’ needs and desires anywhere, any time, on any mobile device. Also, they can act more quickly on the information they learn from their customers as they make financial decisions. Use of IT is efficient only when it is distributed adequately to those who need the technology at the right moments. Apps further enhance such accessibility at a time when more and more of the world’s population has access to smartphones. Shifting to Mobile Has a Big Impact on B2C Communication Early in the short history of mobile devices, the thought was that people would use them only for going to social websites — and maybe for checking email and conducting online searches. That was then. Now consumers also use applications to shop, scoping out companies to educate themselves before buying any products or using services. This includes products and services offered by the insurance and financial services industry. Customers use mobile apps to learn all about a given company or firm, including such information as how products work, educating themselves on their potential need and seeking educational opportunities. To do this effectively, consumers must check up on a company regularly and constantly keep in touch. Likewise, today’s financial professionals seek information, resources and training on a 24/7 basis, with only a few clicks of their fingertips. For financial professionals who are both mobile and constantly on the go, these requirements are as basic as the old rate book (remember them?) of only a few decades ago. Adoption of mobile technology and the use of business-to-consumer (B2C) apps are led chiefly by company executives and firm field leadership. They’ve done this to validate the need for the digitization of organizational assets, to show that mobile app content can serve everyone’s needs on a 24/7 basis and to demonstrate that apps eliminate the restrictions that regular business hours place on an organization’s operations. With apps, customers and their financial professionals can complete transactions at any time of the day and from any location. The apps also provide a digital copy of the transaction, which those in the firm can access at any time. This improves company record keeping and eliminates the cumbersome, space-wasting process of keeping physical company transaction records. Benefits of Apps Here are just some of the powerful benefits apps provide. Increased user engagement — All mobile apps operate in what can be called their own interface environment. Mobile users tend to be immersed in the personal experience of using these apps. A company icon — the shortcut to the app — is constantly featured on the home screen of the user’s device, making the app not only readily accessible but also strongly integrated with the owner’s mobile device behavior. Apps are task focused, so as users continue to visit an enterprise app, associating the company with the success of the task, the company’s products get increasingly promoted. The brand’s values and nature are only strengthened in terms of users’ perception. In addition, there is ever-improving interaction, often daily, between the consumer or the financial professional and the company. Enhanced customer care — Whether the day-to-day focus is on management, sales, marketing, advertising or social media, mobile devices can help you gain a competitive advantage in both financial advising and customer relations. In the financial services sector, in particular, consumers mostly judge a company through the customer care they receive. Poor customer care leads to a reduction in the number of customers and eventually to a total decline in profitability. Apps are like supplements to an organization’s customer care. Improved customer service — The information provided within apps and their ability to enhance business-to-consumer (B2C) communication, at the convenience of the customer, automatically improves customer service. Training and education — Apps can be powerful platforms for training financial professionals and staff members. According to a 2015 LIMRA study, it is much more effective for companies to recruit quality candidates and give them the training and support they need than to hire large numbers of people, hoping some will succeed. Prior LIMRA research shows that reduced spending in areas such as training and management support may increase companies’ long-term expenses. Companies that recruit many candidates, accepting the fact that only a few will survive, risk creating a poor work environment among those they hire, which may lead potentially successful candidates to choose other firms. Strong security — This is a feature that most websites still lack. Apps can integrate with an electronic device’s existing security system. This improves the level of security a company can provide for its information, as well as for its field force and customers. The mobile device’s management software enables information on the app to be deployed or retracted, and apps provide a platform for information that is more secure than what can be found on the mobile websites. Potential workforce reduction — The use of mobile apps can change an organization’s structure and redefine required skill sets for financial professionals and other employees. And, because most processes and transactions will be automated, apps will greatly reduce the size of the workforce needed. Fewer workers will be required. Those who remain will provide tech support to ensure that the applications and related devices are maintained adequately so that no one will encounter errors. Increased productivity — Because mobile apps enable organizations to minimize waste, complete tasks efficiently and reduce costs, they lead to increased productivity. It’s important to stay on top of this technology with fast, flexible and effective organizational structure within your organization’s apps. The development of an app is never a done deal; it should constantly be adapted to ever-changing needs, desires and preferences of customers and financial professionals. It’s the only way a company can maintain a competitive advantage. Within their apps, companies should also attempt an ever-increasing level of product differentiation. Companies that don’t embrace applications are losing out. They may perceive the move to apps as too costly. As with any new technology, there are indeed costs to app development and maintenance. But the longterm benefits of using apps can greatly outweigh the costs incurred to develop and implement them. Hoopis Performance Network Can Develop Your Customized Educational App Today, how financial professionals can access their training and educational resources is just as important as the material itself. We know from LIMRA that 24/7 access is of key importance, not only for millennials but for women and veteran associates alike. Benefits of Mobile Apps vs. Websites

Next Item Previous Item Go back to White Papers List Having a strong organizational culture enables you to hire, conduct business and attract clients in a consistent way that aligns with your overall values. With the fast pace of technological change today, a training culture can give you a competitive advantage when it comes to recruiting and retaining the best talent. Imagine that a quality candidate is considering your organization and another one, but you offer continuous training as a benefit. That will normally make the candidate’s choice simple and obvious. Investing in training for everyone in your organization shows them that you value their professional development and advancement potential. According to Arie de Geus, head of Shell Oil Company’s Strategic Planning Group and a visiting professor at London Business School, a learning culture is not only a strong source of sustainable competitive advantage; it is a critical corporate asset. He says, “Learning is the only source of sustainable competitive advantage.” Instead of investing in training once in a while — when someone requests it or when compliance requires it — make training a key element of your company’s or firm’s makeup. So how do you build training into your culture in such a significant way that it defines your organization? Here are some tips to get started. Survey everyone in your organization to find out what types of training they want to take. What skills do they want to improve, and what type of training do they prefer — online courses, webinars, on-site classes or off-site classes? Offer training to everyone. Instead of focusing only on advisors, for example, offer training to managers and support staff as well. Hire a training manager. Or assign the job of assessing, scheduling and evaluating training to one of your existing team members. This will show the people in your organization that you are committed to making training an integral part of your culture. Establish a mentoring program. Have your senior advisors mentor newer advisors and offer jointwork arrangements. Consider participating in the MDRT/GAMA International Mentoring Program. Create a coaching program. Coach everyone. Many managers make the mistake of focusing their coaching efforts on the rookies or poor performers. Offer coaching to your top performers. They will value the extra guidance on top-level issues, and it’s important to keep them happy. Leverage the expertise of your own people. Build a company e-learning program that enables your more experienced team members to share their expertise with newer employees. Let them be the subject-matter experts who provide some of the training, and reward them for doing so. Offer training in both “hard” and “soft” skills. Some of your team members need training in skillbased areas, while others probably need training in “soft” skills like negotiation, resolving conflicts and being more customer-focused. Attach specific goals to the training. Ask every team member what he or she hopes to gain from the training and how it can also benefit the organization. After the training, have your managers find out to what extent the training lived up to those expectations. This will help you evaluate the ROI. Communicate and celebrate training outcomes. If a training program was at least partially responsible for a team member being promoted, let everyone in the organization know about it. This is an effective way to reinforce the connection between the training you offer and the advancement of those who take the training. Measure the effectiveness of your training program. Consider using a feedback app, which can contain different sets of several questions for different situations. You can repeat the questions at various intervals to create a trend analysis. Use a SharePoint-based intranet to help employees track the progress they make in implementing improvements. Building a training culture requires an ongoing commitment and strategy. Unfortunately, too many agencies, firms and companies have a set-it-and-forget- it formula, which does not move the needle in the proper direction. The rewards of establishing a training culture will help turn each of your top goals and objectives into reality, in increased productivity, expanded markets, recruitment and ultimately retention. An Effective Training Platform for Managers and Advisors An effective resource for training financial advisors is Hoopis Performance Network, which features online, on-demand, total video-based training built on four Disciplines of Success with access to more than 400 sessions. The coursework can be either self-study or facilitator-led, and it complements any firm, agency or company training programs and marketing selling systems. Your advisors can access the video training anytime, anywhere, on their computers, smartphones, or tablets. It’s a cost-effective, time-efficient way to increase productivity, thus retention. An effective resource for training new or experienced sales leaders is HPN, an innovative virtual platform designed for financial leaders who are building a region, an agency or firm, a sales unit, or a sales team. You can get access to hundreds of high-impact sessions for all levels of experience, divided into five distinct elements of success. These sessions are short and easily digestible, averaging less than 10 minutes. Your managers can access the video training anytime, anywhere, on their computers, smartphones, or tablets. 10 Tips for Building a Training Culture

Course Catalog Go Back to Main Catalog Page The Art The Science A Leader's Philosophy The Art - Classics The Science - Classics Classics The Art - Foundational Principles of Leadership - General The Art - Foundational Principles of Leadership - Office Systems and Processes The Art - Foundational Principles of Leadership - Visions, Missions, Value Proposition The Science - Foundational Principles of Leadership - Creating a Collaborative Environment The Science - Foundational Principles of Leadership - General The Science - Foundational Principles of Leadership - Office Systems and Processes The Science - Foundational Principles of Leadership - Utilizing Resources The Science - Foundational Principles of Leadership - Visions, Missions, Value Proposition Foundational Principles of Leadership The Science Pre-Management Orientation The Art - The Accountability Process - Activity Monitoring The Science - The Accountability Process - Activity Monitoring The Science - The Accountability Process - General The Science - The Accountability Process - The Power of Goals The Accountability Process The Science - The Alternative Distribution Process - Banking The Science - The Alternative Distribution Process - Multi-Line Firms The Science - The Alternative Distribution Process - Wholesaler The Alternative Distribution Process The Art - The Development Process - Experienced Associates The Art - The Development Process - General The Art - The Development Process - Ongoing Training & Development The Art - The Development Process - Production Growth The Science - The Development Process - Building Markets The Science - The Development Process - Experienced Associates The Science - The Development Process - General The Science - The Development Process - Inexperienced Associates The Science - The Development Process - Management Teams The Science - The Development Process - Ongoing Training & Development The Science - The Development Process - Production Growth The Science - The Development Process - Staff, Functional Specialists and Contingency Planning The Development Process The Art - The Recruiting Process - General The Art - The Recruiting Process - The Finding Stage The Art - The Recruiting Process - The Momentum Building Stage The Art - The Recruiting Process - The Selection Stage The Science - The Recruiting Process - General The Science - The Recruiting Process - The Finding Stage The Science - The Recruiting Process - The Momentum Building Stage The Science - The Recruiting Process - The Selection Stage The Recruiting Process EDGE: The Leader's Journey EDGE: Developing Leaders EDGE: Emerging Leaders EDGE: Excelling Leaders EDGE: Growing Leaders EDGE: Tools and Resources Menu Close Try It Free for 14 Days Get full access to the platform—risk-free. No credit card. No commitment. Just results. Start building your advisor bench today. Start Your FREE Trial

Course Catalog Go Back to Main Catalog Page Accountability and Difficult Conversations Best Practices on Terminating Underperformers Creating a Culture of High Expectations & Accountability Driving Behavior through Expectations and Accountability Performance Indicators and the GAP Analysis Conversation Accountability Coaching Tips and Best Practices Three Levels of Training Interaction: Coach and Consultant Phase Development - Coaching Best Practices for Recruiting Women Educating Yourself on Diversity and Inclusion Practical Tips for Diversity & Inclusion Understanding Implicit Bias Understanding Organizational Diversity and Inclusion Development - Collaboration Building a New Team Building Effective Teams Creating a Team Selling Model Creating Development Plans Creating Study Groups in Your Organization Development Training - General Development - Training Developing Your Organization's Culture Developing Your Vision, Mission and Value Proposition Growing Your Team of Leaders Leader Philosophy Creating an Ideal Candidate Profile Differentiating Your Brand to Attract Top Performers Diversity Recruiting Generating Advisor and Center of Influence Referrals Recruiting Finding - General Recruiting Militaty Veterans Recruiting Millennials and the Next Generation Recruiting Recent College Graduates and Campus Recruiting Recruiting Top Performers The Three R's of Agency Building Recruiting - Finding ALPS Leadership Principles for Success Best Practices for the Recruiting Process Developing a Recruiting Culture Recruiting and Selection Insights from the GAMA Hall of Fame Recruiting - General Onboarding and Building Momentum with Experienced New Advisors Understanding Onboarding and Momentum Building for New Advisors Recruiting - Momentum Building How to Determine When Someone Is Not a Fit How to Screen an Experienced Candidate Selecting Top Performers The Science of Selection Tips and Best Practices for Selection Understanding Recruiting Activity Utilizing Reverse Selling in Selection Recruiting - Selection EDGE: The Leader's Journey EDGE: Developing Leaders EDGE: Emerging Leaders EDGE: Excelling Leaders EDGE: Growing Leaders EDGE: Tools and Resources Menu Close Try It Free for 14 Days Get full access to the platform—risk-free. No credit card. No commitment. Just results. Start building your advisor bench today. Start Your FREE Trial

Next Item Previous Item Go back to White Papers List Nearly nine out of 10 Americans aged 65 or older currently receive Social Security. The Social Security Administration estimates that 21 percent of married couples and 43 percent of single seniors rely on Social Security for 90 percent or more of their income. Whether you are planning to retire in 20 years or 20 days, it’s crucial to understand Social Security, how to qualify for benefits, taxation of Social Security benefits and how working after retirement might affect your Social Security income. This broad overview of the most important aspects of Social Security will help you make the best decisions for financial security during retirement. Social Security Basics Social Security is the largest U.S. federal insurance program that provides benefits to retirees, those who have disabilities and those who lose a spouse or parent. According to the Social Security Administration (SSA), more than 60 million people received monthly benefits as of 2018; 46 million of those recipients are retirees and their families. The Social Security Act was part of President Franklin Roosevelt’s New Deal, a series of programs his administration instituted to bring prosperity back to Americans during the Great Depression. The Social Security Act passed in 1935. Those who work pay dedicated payroll taxes authorized by the Federal Insurance Contributions Act (FICA), which funds Social Security benefit payments. As of 2019, each dollar you pay in FICA taxes goes into two separate trust funds. One fund receives 85 cents for retirees, their families, surviving spouses and surviving children of workers who passed away. The remaining 15 cents funds those with disabilities and their families. Qualifying for Social Security Retirement Benefits Most people must work 10 years at a job where they pay FICA taxes to receive Social Security retirement benefits. As of 2019, the SSA awards one credit for each $1,360 in earnings, with a maximum of four credits per year. The required earnings normally increase each year. The 10-year, 40-credit rule applies to all workers who were born after 1929; those born before 1929 did not need as many credits. Workers cannot earn credits at all jobs. The following are some examples of jobs where workers do not qualify for Social Security retirement benefits: The majority of federal employees hired prior to 1984 Railroad employees who have more than 10 years of service Some employees of state and local governments who have chosen not to participate in the Social Security programs Social Security Retirement Benefit Amounts The amount you receive for Social Security retirement benefits depends on your age and the amount of your lifetime earnings. As you earn more, your benefit amount increases. You can begin to receive your retirement income anytime from age 62 to age 70. The retirement benefit program is designed to pay out the same amount of lifetime benefits, no matter when you choose to file your claim. Of course, how long you live is the factor that has the most impact on total lifetime benefits. The SSA will reduce your retirement payment if you take it early. The longer you wait to collect benefits, the greater the monthly benefit amount will be. The principle behind this is really quite simple. If you start to receive your monthly retirement benefits early, you will receive more payments over your lifetime. If you begin taking them later, you will receive fewer payments, but the payments will be larger. There are many factors to consider when making this decision. But before you can even think about this, you need to know if, how and when you can receive benefits. So, let’s talk about the full retirement age. The full retirement age (FRA) is the age you must attain to be entitled to your full, unreduced Social Security retirement benefit. The FRA for those born between 1943 and 1954 is exactly age 66. For those born between 1954 and 1959, their FRA will increase by two months each year. For example, the FRA for those born in 1955 will be 66 years and 2 months. The FRA for those born in 1956 is 66 and 4 months, and so on. The FRA for those born in 1960 or later is exactly 67. So, to receive an unreduced retirement benefit, which is referred to in Social Security jargon as the “Primary Insurance Amount” (PIA), you must wait until you reach your full retirement age. If a retiring worker with an FRA of 66 and a PIA of $1,000 chose to receive his retirement benefit at age 62, his benefit would be reduced by 25 percent, or $750 (75 percent of his $1,000 Primary Insurance Amount). If they wait until he reaches his FRA, he will receive his full PIA benefit of $1,000. The terms the Social Security Administration uses to describe your benefit can be confusing. For example, the word “full” in the term “full retirement age” does not mean the maximum benefit. The maximum benefit occurs at age 70, which is always later than full retirement age, regardless of when you were born. Now let’s talk about what happens if you wait beyond full retirement age to claim your benefits. For each year you wait beyond full retirement age to receive your benefit, you receive what’s called a “delayed retirement credit.” This is set in law, so it does not fluctuate with interest rates or the equity markets. It’s 8 percent simple interest per year, based on your primary insurance amount for each year beyond your full retirement age. Another way to look at this is that your benefit will be 76 percent higher at age 70, compared with age 62, regardless of the PIA. That is, you will receive a monthly retirement benefit from Social Security that is 76 percent higher every month for the rest of your life if you wait until age 70 to receive it. This happens automatically. All you have to do to get your maximum benefit is wait until you reach age 70. No forms, no calls — just wait. If you want a better idea of what your benefits might be at different ages, visit the SSA website and look up your Social Security statement, or use some of their calculators. Income Taxes and Social Security Some people who collect Social Security retirement benefits must pay income tax on a portion of their benefits. The government will tax a portion of their benefits if their total combined income (combined income = total amount of income, including any taxexempt interest, plus half of one’s Social Security benefits) exceeds Social Security’s set base amount. Keep in mind that your “total income” includes more than just your work income. The SSA will tax 50 percent of your Social Security benefits if either of the following statements is true: Your combined income amount is between $25,000 and $34,000 and you are single. Your combined income amount is between $32,000 and $44,000 and you are married. The SSA will tax 85 percent of your Social Security benefits if either of the following statements is true: Your combined income is greater than $34,000 and you are single. Your combined income is greater than $44,000 and you are married. Working After Retirement To maintain a comfortable lifestyle into retirement, Social Security retirement benefits plus savings and other investments are often not enough. This means that many individuals must keep working for a while, even after claiming an early Social Security retirement benefit. Others keep working just remain active and engaged. At your full retirement age, there is no limit on the amount of money you can earn and still receive your full Social Security retirement benefit. However, if you decide to begin to receive your benefit early and continue to work, be sure to understand how this extra income might impact your Social Security benefits. Social Security will reduce $1 of benefit for every $2 you earn over a set limit. In 2019, this limit on earned income is $17,640 ($1,470 per month), and this limit will go up each year. This continues until you reach full retirement age. Reduced, but Maybe Not Lost Forever The amount of reduced benefits lost due to income earnings that exceed the limits are not necessarily lost forever. Once you reach your full retirement age, Social Security will automatically recalculate a new retirement benefit amount, taking into account any of the lost benefits due to the earned income rule. This calculation will eventually pay out the lost benefit amount, a little bit each year. It normally takes up to 15 years to fully recoup the lost benefit. Social Security and Retirement

Next Item Previous Item Go back to White Papers List As business owners age without a plan for their business when they die, they risk years of hard work going down the drain because of their departure. Sometimes tragic accidents occur before a business owner can put a plan in place, but many times advanced planning gives business owners the opportunity to realize their business’s maximum value and develop a plan for those who succeed them. Advanced planning also helps avoid arguments, emotions, and feelings which can lead to family and business turmoil after the death of a loved one. This blog offers considerations for business owners who want to put an executable plan in place after they die, but those who have recently inherited a business from a loved one might also find some helpful guidance. Letting Your Vision Live On If you are in the process of succession planning for your business, it means you have created an organization successful enough that it is worth passing it on to a new owner after your death. Depending on the type of business, you have a vision, mission, and/or purpose for the product and the service you provide. When making choices about the succession of your business, you need to think about long-term goals for your business and the legacy which you want to leave. Specifically, think about how you would continue to expand, grow, and serve if you were to continue living well beyond your years. Let your desired legacy drive your decisions about who your successor will be and how you wish to transfer the business to them upon your death. Who Will You Choose as Your Successor(s)? When you create a succession plan for your business, and you don’t wish to liquidate upon your death, you have three main options for successors to keep the doors open. Family members. If you choose your family to succeed you, it’s important to think about the roles one or more family members might take in your organization. Specifically, you need to make a firm decision about who will own and manage the business. It’s also in your best interest to have this discussion with your family long before your death, especially if multiple family members are involved in the business or want to be upon your death. Managing expectations will curtail any hard feelings and emotions which sometimes accompany the mixture of family and business. If more than one family member will own the business, you also need to determine the split of ownership. What percentage of the business will each owner have? Co-owners. You might already have co-owners with whom you started and operated your company. A succession plan might include your estate selling your interest to non-family co-owners, who will carry on the vision you started together. In other cases, you might choose for a family member to take control of your interest and share the business with already existing owners. It’s crucial for you to discuss these plans with your current business partners to ensure they have no reservations about your succession plans. If disagreement and turmoil occurs as a result of your decisions, you risk damaging the longevity of your business. Third-party buyer. Selling to a third-party buyer upon your death is the riskiest move you can make if you want to see your business continue to thrive upon your departure. Yet, if you are the sole owner and you have no family to take over or monitor your interests, you might be forced to take the gamble and sell to a third-party buyer when you die. This doesn’t stop the buyer from eventually liquidating the business, but if you plan far enough ahead and find the right person, you have a good chance of finding someone who wants to carry on with your vision for the future. Transferring the Business After Death Once you decide on who will succeed you in your business after your death, you need to arrange how you wish to transfer the ownership of your business. Keep in mind that each option has different financial, legal and tax consequences for the new owner(s), your business, and your estate, so it’s imperative you discuss your plan with a trusted financial planner and attorney who has experience in this type of succession and estate planning. Leaving money and business to friends or non-family members in a “Will” is a risky endeavor, so you will need to make other arrangements. If your successor(s) are family members, you can leave your business to them via your “Will”, however, for many legal, financial and personal reasons a separate legal document can offer many advantages for transfers to family members as well. Regardless of the plans you make to transfer your business, you will need to ensure that the business and your estate has enough working capital to successfully go through the transition period and cover all of the interim expenses. Buy-Sell Arrangements A buy and sell agreement is a legally binding contract that stipulates how a business owner or partner’s share of a business may be sold or reassigned when they die. These arrangements are commonly used by sole proprietorships, partnerships, and closed corporations in an attempt to smooth the transition of the ownership when each partner dies, retires, or decides to exit the business. Typically, these agreements require that the business share be sold back to the company, to the remaining partners of the business, or to an key employee or competitor according to a predetermined formula. Unfortunately, for many small businesses, it is one of those things that is often pushed to the back burner, and never gets executed or funded. Buy and sell agreements are critically important not only the surviving business owner(s), but to the business’s employees and the deceased’s heirs. The transfer of an individual’s interest in a business can be either intentional or forced. Intentional transfers occur when an owner, partner, or stockholder decides that he or she no longer wants to be involved with the business or, for other reasons, decides that it is time to liquidate their business interest. These types of intentional transfers often occur when a business owner wants to retire or get out of the business to pursue other opportunities. Unfortunately, not all business liquidations are intentional. Unplanned or forced transfers can occur when a business owner, partner, or shareholder in a closely held corporation dies or becomes totally or permanently disabled. More often than not, death or disability forces a transfer under unfavorable conditions unless the owner or owners have planned ahead. The business owner who has not thought ahead to the day he or she will want to sell the business and retire may find it difficult to realize the full value of the business when the time for retirement finally comes. Even worse, business owners who have not planned to protect themselves, their families, and their business associates from the uncertain probabilities of disability and death, risk everything they have worked to build in the business, as well as the financial security of their loved ones. Planning for the orderly transfer of their business interests by exchanging the uncertainty that comes with a failure to plan with the certainty of a planned solution is one of the most critical action a business owner can take. These actions are referred to as planned intentional transfers. Because they are planned, the owner is in a position to make the most favorable arrangements possible in advance. Let’s consider a worst-case scenario: the death of one of the business owners. What will happen to their business if the key owner dies? Many small-business owners take out loans to help grow their businesses, and often have secured these loans with personal assets. If death occurs before the loans were paid off, one might think that the business owner’s family could just sell or liquidate the business in order to cover those debts and provide financial security to the survivors. In reality, this rarely happens. When the family is forced to sell the business quickly, it may have to be sold at a discount or during market conditions that make the business less attractive. In other cases, the business may be worth very little without the key proprietor or partner. Buy-Sell Agreements can protect the surviving family members by providing funds to cover those business debts, as well as ongoing living expenses, and funds for future plans. Ok, a reasonable question here is, if the new owners are not family members, where will the money come from to purchase the business interest? There is no one perfect answer but let me share a few of the common methods. Unfortunately, most businesspeople do not keep large sums of liquid assets which could be used to purchase the deceased owner’s business interest. Most of their available assets are normally reinvested into their business. It could may make sense to create a Sinking Fund to accumulate the needed cash. However, the premature death of an owner may not give the business time needed to accumulate enough funds to meet the financial obligation of the purchase price. They could always borrow the funds. Unfortunately, a bank may not be willing to lend money to a business that has recently lost an owner, and even if they were, the cost of loan including the interest may be excessive. The owner may agree to make Installment Payments to the deceased owner heirs. The heirs may not get the sum of money needed to meet their financial obligations in this manner, and there are no guarantee future payments will be received if the business fails. Finally, there is Life Insurance. There are many advantages life insurance offers that the other alternatives do not, such as: Life insurance annual premiums are often only a small fraction of the death benefit. The proceeds from the death benefits are available whenever needed, regardless of when the owner dies. And of course, properly established death benefits are generally federal income tax-free. Working with the business owner’s financial advisor and attorney well before the day comes to sell the business, whether intentional or not, you will be able save many dollars, headaches and maximize your legacy. Contact Hoopis Performance Network to Learn More About Buy Sell Arrangements HPN provides knowledge and skills training for management, producers, and staff in the financial services industry. We aim to help you succeed and grow your business by offering exceptional resources for you to share with your clients. Educating your clients increases their financial literacy and allows you to help them with life events they care about, such as planning for the future of their business after death. Contact us today for your training and education needs and to learn more about how you can guide your clients on the right actions to take to make sure their business stays open after they die. Keeping the Business Open After Owner’s Death

Course Catalog Go Back to Main Catalog Page Holding Experienced Advisors Accountable Holding Staff Members and Specialists Accountable Holding Your Leaders Accountable Accountability Coaching Best Practices Development - Coaching Engaging in Asian, Latino and LBGT+ Communities Understanding Organizational Diversity and Inclusion Development - Collaboration Developing an Activity Coaching System for the 1st 90 Days Development - Momentum Building Best Practices for Continuous Improvement Best Practices for Designing Sales Contests Best Practices for Leading Others Creating a Development Strategy Creating Study Groups in Your Organization Developing a Specialist Program Development Training: General Keys to Hiring Great Staff Underwriting Best Practices for an Organization Development - Training Building Firms by Creating Capacity Developing Your Leaders Harry Hoopis' Simple Rules of Life Keys to Building an Agency Keys to Effective Change Management Leadership Insights from GAMA Hall of Fame Members Leadership Insights from Ron Rosbruch - GAMA Hall of Fame Leveraging Resources to Build Your Organization Three Hero Habits: The Guide to Thriving in Business and Life Leader Philosophy Attracting Experienced Independent Advisors Developing Your Value Proposition for Experienced Independent Advisors Sourcing Independent Experienced Advisors Strategies for Recruiting Independent Experienced Advisors Recruiting - Finding Excelling: Recruiting - General Identifying and Developing a Recruiter Recruiting - General Understanding Momentum Building for Top Performers Recruiting - Momentum Building Identifying Leadership Potential Recruiting - Selection EDGE: The Leader's Journey EDGE: Developing Leaders EDGE: Emerging Leaders EDGE: Excelling Leaders EDGE: Growing Leaders EDGE: Tools and Resources Menu Close Try It Free for 14 Days Get full access to the platform—risk-free. No credit card. No commitment. Just results. Start building your advisor bench today. Start Your FREE Trial

Trustworthy Selling QuickStart Edition provides new recruits with the skills, language and confidence they need to be productive immediately and sustain that success in today’s market. QuickStart Edition Understand how today’s consumers really make financial choices. Engage consumers by aligning to their mindset and preferences. Internalize new language for obtaining favorable introductions and telephoning skills. Quickly build trust using proven engagement and collaborative discovery skills. Adopt peak performance psychology and productive habits for long-term growth. Your New Advisors Will: Get New Advisors Off to a QuickStart Today! Trustworthy Selling QuickStart Edition provides new recruits with the skills, language and confidence they need to be productive immediately and sustain that success in today’s market. It is a sales effectiveness program that aids the development of advisors so they can settle in seamlessly. The program was developed to be utilized in conjunction with your organization’s existing, proprietary onboarding and initial training program. The Language of Trust Applying Behavioral Economics Techniques Language Demo: Building Trust, Rapport & Credibility Digital Networking Why People Procrastinate with Financial Products Take a Look at Some of Our QuickStart Edition Content! Schedule a Demonstration Contact Us QuickStart Product Sheet Download Download Now It united LIMRA consumer research with field-tested language and techniques drawn from HPN’s network of successful new advisors. New skills are mastered through practice, role play, application projects and follow up coaching. Lessons are made memorable through use of real-life case studies. Content is easily incorporated into day-to-day activities with a language reference guide, demonstration videos and other online resources. Why QuickStart Edition Works: QuickStart Edition