About The College Diversity, Equity & Inclusion Insights
Lang Dixon and the Origins of CAAFP
Established in 2018, The College’s Lang Dixon Leadership and Excellence in Achieving Diversity (LEAD) Award is given annually at CAAFP to an African American financial services professional who has significantly impacted the financial services profession. For 2024, two men received the Lang Dixon Award posthumously: Maceo A. Sloan, CLU®, and Calvin F. Vismale, CLU®, two of The College’s first Black alumni in the Chartered Life Underwriter® (CLU®) Program.
Along with recognizing Sloan and Vismale, those offering tributes to them at CAAFP 2024 took time to reflect on the man who provided the inspiration for the award in the first place. Lang Dixon was a successful life insurance agent and mentor who believed in giving back to his profession, and was part of The College’s inaugural African American Advisory Committee dedicated to increasing diversity and inclusion in financial services.
When Dixon passed away in 1994, the members of the still-active committee decided to commemorate his legacy with a Lang Dixon Education Day – and, thanks to the backing of some generous corporate sponsors, the idea evolved into the first CAAFP event held in 2001!
See the full story in this year’s tribute video.
About The College Diversity, Equity & Inclusion Podcasts
Sowing the Seeds of Financial Success
In this episode of our Shares podcast, host Lindsey Lewis, MBA, ChFC®, CFP® speaks with Valencia Gabay, program director for financial educational and wellbeing at The College and one of the many minds behind Know Yourself, Grow Your Wealth®: a non-credit certificate program that helps improve financial decision-making, increase financial security, and put into practice strategies to achieve financial goals. She discusses the ideas and goals behind Know Yourself, Grow Your Wealth® and how the program is fundamentally engineered to help learners take control of their financial future.
Also featured is Tony Sanchez, a community affairs specialist at OneAmerica Financial in Indianapolis and graduate of the program, to speak about the program benefits he has seen personally and in his capacity as a mentor for others.
Valencia Gabay is the program director for financial education and wellbeing at The College. With a dedication to fostering partnerships and guiding community engagement, she strives to enhance financial wellbeing for diverse populations. As an accomplished learning experience designer and academic professional, she excels in creating inclusive learning environments through a design thinking approach. An organizational leadership scholar, her research interests lie in humility and inclusive leadership practices that promote team resilience, creative thinking, and innovation within the virtual workforce. With over 20 years of experience in higher education, she has contributed significantly to academic literature and has shared her expertise on international platforms. Gabay is also the co-author of Group Coaching and Mentoring: A Framework for Fostering Organizational Change. She completed her undergraduate and graduate work at the University of Florida and is completing her doctoral studies in Organizational Leadership at Indiana Wesleyan University.
Antonio “Tony” Sanchez is a community affairs specialist at OneAmerica Financial. He serves on the community affairs team, helping run the groundbreaking Pathways Program which provides students in underserved areas of Indianapolis with journeys that build skills, connections, and a path to sustainable income through jobs, mentorship, and opportunities in the financial services industry. He is a former OneAmerica Financial intern and is now a OneAmerica Financial full-time associate. Before joining OneAmerica Financial full-time, he also worked as an accountant intern at Mutual Savings Bank in Franklin, Indiana. Sanchez graduated from Franklin College with two degrees in economics and has worked and volunteered at the Boys and Girls Club in Franklin.
Any views or opinions expressed in this podcast are the hosts’ and guests' own and do not necessarily represent those of The American College of Financial Services.
Financial Planning Tax Planning Insights
Learn About the Fundamental Principles of Tax Planning
In the financial services industry, and most other industries, the goal is to provide value to your clients. In today’s financial landscape, tax planning has emerged as a growing service. In fact, according to the 2023 Herbers & Company Service Market Growth Study, tax planning is the most demanded service among clients with at least $250,000 in household assets. As such, there has never been a better time than now for financial advisors to familiarize themselves with the key concepts of tax planning. Fortunately, The American College of Financial Services and tax expert Jeffrey Levine cover these key concepts in Principles of Tax Planning for Financial Advisors.
Why Should You Care About Tax Planning
As Levine points out, the ability to offer sound tax planning advice is a valuable differentiator. Clients are unique individuals, but they all share one common trait: “All clients have the common thread of wanting to pay as little in taxes as possible.”
In addition to guaranteeing that advisors have desirable advice that clients want, knowing the principles of tax planning offers several other advantages as well. Tax planning aligns the interests of the advisor and the client, creating a unified goal of minimizing tax liabilities.
Furthermore, being a strong tax planner offers a financial advisor a significant amount of market resiliency. Paying minimal taxes is a common goal regardless of market conditions, and by mastering these principles, financial advisors will have something to offer clients in any market.
Ultimately, financial advisors should care about tax planning because it is a universal goal shared by nearly every client in nearly every situation, regardless of circumstances.
Key Principles of Tax Planning
Levine goes on to dispel several tax myths and share key insights that are important for financial advisors to remember as they look to help their clients achieve their goal of minimal tax payments. Included amongst these topics are several of the following key ideas:
- Tax rate and tax bracket are not the same. Levine points out a common misconception in tax planning, stating that advisors can often fixate on what tax bracket a client is going to be in. However, as Levine states, “The tax bracket is just one of the components, if you will, that goes into informing what the client’s true tax rate is.”
- There is no such thing as permanent when it comes to taxes. When arguing this point, Levine begins by emphasizing how often tax law changes. Essentially, even laws stated to be “permanent” are only permanent as long as Congress doesn’t change their mind. For this reason, Levine believes that advisors must take advantage of provisions that exist today, because: “We don’t know how long it will stick around for. What’s here today should be used when we have that opportunity.”
- The lowest lifetime tax bill wins. Obviously, everyone wants to pay as little in taxes as possible. However, we all have to pay them eventually. Levine argues that instead of looking to pay the least taxes year after year, advisors should plan for their clients to determine their payment schedule based on rates, saying, “The name of the game is simple: Pay taxes when your rates are the lowest.”
By mastering these principles, advisors can help clients achieve lower lifetime tax bills and navigate the complexities of tax laws with confidence. Levine goes into greater detail on these ideas and more in Principles of Tax Planning for Financial Advisors, available exclusively on Knowledge Hub+.
To access this learning opportunity, visit Knowledge Hub+ and unlock the potential to transform your financial advisory practice today.
To learn more about the Tax Planning Certified Professional™ (TPCP™) program, sign up for the program demo.
Register now for Jeffrey Levine's upcoming webcast, "Planning Strategies to Mitigate the Impact of the 10-Year Rule," on Tuesday, October 29, 2024, 2 - 3 PM EDT.
This live webcast is exclusively available on Knowledge Hub+. To register, access Knowledge Hub+ via your Learning Hub or learn more about Knowledge Hub+ and subscribe today.
More From The College
- Watch the Webinar on How to Integrate Tax Planning Into Your Practice
Retirement Planning Special Needs Planning Insights
Long-Term Care Trends and Strategies
According to the most recent iteration of the Retirement Income Literacy Study, a survey conducted by The College every four years to measure older Americans’ financial literacy in 12 knowledge areas related to retirement income, one of the top areas of concern facing Americans as they head toward retirement is paying for long-term care. A number of factors contribute to this, including cuts in Social Security, inflation, and the rising costs of healthcare.
However, despite their concerns related to long term care, many Americans have not reflected it when making their plans for retirement. In fact, a staggering nearly 80% of respondents did not have a plan in place to fund their long-term care needs. Furthermore, 60% of respondents stated they had not even looked into policies or explored their long-term care options. As a reminder, these respondents were between the ages of 50 and 75, meaning that three in five Americans between the ages of 50 and 75 had not even given serious consideration to their long-term care needs in any capacity.
Additionally, the study found that a significant number of Americans severely underestimated their need for long-term care, with only 44% of survey respondents expecting they would need long-term care as they grow older. In reality, Americans need some form of long term care at a rate of 70%. According to James Karthaus, CFP®, CLU®, ChFC® these numbers represent “nothing less than a crisis.”
“This is not an industry statistic. This is a governmental statistic, and it’s actually a little dated. … 70% of folks 65 and older are going to need some type of long term care service. … The average, not the high end, is three years. … 80% of folks don’t have a plan. To me, that’s nothing less than a crisis.”
- James Karthaus, CFP®, CLU®, ChFC®
In this discussion, featured in a recent webcast hosted by The College on their subscription-based learning platform Knowledge Hub+, Kaylee Ranck, PhD, director of research at The College, Karthaus, assistant professor of financial planning at The College, and Joellen Meckley, JD, MHS, ChSNC®, managing director of the American College Center for Special Needs and associate vice president of Centers strategy and operations at The College explored this disconnect between the average American’s expectations and the realistic need for long-term care, reviewed how exactly long-term care is defined, analyzed trends in the industry relating to long-term care, and discussed several real world examples relating to long-term care.
What is Long-Term Care?
In order to better understand the discrepancy between Americans’ expectations and the realities of long-term care, Meckley provided the audience with additional information as to what exactly long-term care is and how to determine if someone is in need of long-term care. According to Meckley, long-term care occurs when an individual needs assistance with two or more activities of daily living. These activities include:
- bathing
- dressing
- eating
- toileting
- transferring / mobility
- continence
Meckley also pointed out long-term care manifests in a number of different forms and the long-term care one person receives can look significantly different than what another individual receives. These different forms of long-term care can include in-home care, hospice care, and therapy, as well as others.
As Karthaus said, these different forms of long-term care are important to consider when choosing a policy that suits the goals of your client. “Make sure, if you do elect a policy, you’re meeting the clients in the space they want to be,” he said. “If they want to go to an assisted living facility, fantastic. Just make sure the policy that you’re paying for or having them pay for, can meet them where they want. If they want to be at home … (with) an unpaid caregiver, they need informal care on their policy.”
Trends in Long-Term Care
Karthaus went on to emphasize the importance of considering trends in long-term care and the history of different policies when electing the one that best suits your client. Karthaus offers comparisons between traditional long-term care insurance, hybrid policies, life insurance policies with long-term care access, employer-sponsored long-term care insurance policies, and others. Each of these has a variety of pros and cons, and he said it’s important to measure these when considering which policy is the best fit.
Meckley explained what happens when clients actually begin needing long-term care, indicating that many people seem to be unprepared for the experience:
“Only one in three … respondents to our survey knew that it was not true that Medicare would pay for a year of nursing home care. … That’s often shocking to people. So there’s a huge knowledge gap out there. And unfortunately, it’s not just with clients, it’s also within the profession.”
Meckley continued by discussing other issues people face when attempting to use long-term care benefits, warning individuals of the 90-day elimination period in which they are waiting on long-term care benefits to become active, issues brought on by inflation, and the likelihood that an individual in need of long-term care will likely see that need increase over the course of their life, thereby seeing an increased cost they may not be prepared to pay.
Want to learn more about this important topic? Watch Ranck, Karthaus, and Meckley as they discuss the importance of long-term care, different forms of long-term care policies, and the challenges that can arise within families as the need for long-term care arises. Meckley also offers case studies that can be used to apply this knowledge during the discussion, allowing for a more interactive learning experience. You can gain access to this informative discussion on Knowledge Hub+, now available for free to members of The College’s Professional Recertification Program and as an open subscription to others!
18th Annual Conference of African American Financial Professionals to Focus on Expanding Our Collective Impact
KING OF PRUSSIA, PA – July 29, 2024 – The American College of Financial Services is proud to announce the 18th annual Conference of African American Financial Professionals (CAAFP) taking place from August 12-14 in Atlanta, Georgia. This year’s conference will center around the theme “Expanding Our Collective Impact” – a call to action for professionals to work together to advance strategies for economic empowerment that transcend generations, strengthen impact, and power transformational change.
“We are excited to bring together such a dynamic community of professionals to discuss and develop strategies that will have a lasting impact on our communities,” said George Nichols III, CAP®, president and CEO of The American College of Financial Services. "The Conference of African American Financial Professionals is an important part of The College's strategic focus on representation, with an aim to help support a vibrant profession well into the future, and narrow wealth gaps through financial education and deeper relationships between financial services and the clients and communities it serves.”
Since its founding, the CAAFP has served to advocate and advance the charge for increased representation of Black and African American professionals in the financial services industry. Keynote sessions will feature thought leaders from a variety of backgrounds in financial services, including:
- Raphael Bostic, President and CEO, Federal Reserve Bank of Atlanta
- Donna Brazile, Author, Political Strategist, and Chair of Fulbright Foreign Scholarship Board
- Michelle Singletary, Author and Award-Winning Personal Finance Columnist, The Washington Post
- And other special guests
There will be over twenty breakout sessions led by change agents and industry experts with a focus on empowering Black communities and the advisors that serve them. Attendees will have the opportunity to participate in three tracks, each designed to provide in-depth knowledge and practical strategies to enhance their practice:
- The Client Experience - Deliver exceptional client service with topics like how to speak to clients based on their needs, financial psychology, service offerings, and inter-generational planning.
- Scalable Business - Build a sustainable, scalable business with strategies for organic growth, identification of niche markets, when/how to hire, and Artificial Intelligence [AI].
- Specialization - Specialize in complex planning to differentiate yourself from generalists with topics like retirement income planning, insurance, philanthropy, tax planning, and wealth management.
"The CAAFP is an invaluable opportunity for African American financial professionals to gain insights and strategies that can elevate their practice and positively impact their clients," said Deborah Eskridge Glenn, MA, MSM, SPHR, SHRM-SCP, Interim Executive Director, Center for Economic Empowerment & Equality at The American College of Financial Services. "We are honored to host this event and to contribute to the collective knowledge and success of our community."
The CAAFP embodies The College’s commitment to inclusivity, engagement, and fostering shared experiences. With a focus on career pathways and advancement, our programming empowers attendees to thrive in the financial industry. These endeavors are integral to The College's strategic roadmap, as we strive to create a more inclusive and prosperous future for all. To learn more about the CAAFP and register, visit TheAmericanCollege.edu/CAAFP-2024.
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ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES
Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.
Contact:
Sarah Tremallo
908-967-0381 / stremallo@jconnelly.com
Lindsey Allumbaugh
678-643-1310 / lindsey.allumbaugh@theamericancollege.edu
Retirement Planning Special Needs Planning Podcasts
Ensuring Equality in Retirement Planning
In this episode of our Shares podcast, host Joellen Meckley, JD, MHS, ChSNC® joins Ramsey Alwin, president and CEO of the National Council on Aging (NCOA), for a candid conversation on how older Americans – especially women – often face increasing financial challenges as they age. They also discuss new research from NCOA on economic stress among seniors and their caregivers, including saving for retirement, diminishing decision-making capacity, and more.
Ramsey Alwin is president and CEO of the National Council on Aging (NCOA), leading a nationwide movement to ensure equitable aging for every American. A seasoned thought leader and policy advocate, she designed a new measure of economic security for older adults that better accounts for out-of-pocket health costs and worked to introduce the Measuring American Poverty Act in Congress to redefine the federal poverty measure for the older population. Thanks to Alwin’s efforts, the U.S. Census Bureau formally implemented the Supplemental Poverty Measure nationwide, virtually doubling the elder poverty count and better demonstrating true needs among this population. She also led and organized efforts to enact state and local legislation and regulations that use the new measure of economic security when determining eligibility for means-tested programs.
Currently, Alwin serves on the executive committee of the United Nations NGO Committee on Aging, the America250 Health and Wellness Advisory Council, CVS Health Equity National Advisory Board, and the National Academy of Social Insurance Finance Committee. Alwin holds a Bachelor of Arts from Simmons University and a master’s degree from the McDonough School of Business at Georgetown University.
Any views or opinions expressed in this podcast are the hosts’ and guests' own and do not necessarily represent those of The American College of Financial Services.