The Million Dollar Round Table (MDRT)

Premier Association of Financial Professionals

The Center For Estate & Financial Planning Inc.
PETER L. BOROWSKI, President
CERTIFIED RETIREMENT FINANCIAL ADVISOR (CRFA)
CERTIFIED SENIOR ADVISOR (CSA)

*Investment Advisor Representative
Registered Health Underwriter (R.H.U.)
Life Underwriter Training Council Fellow (LUTCF)
Insurance Consultant, Broker, Agent
*Registered Representative
*Registered Principal (SECURITIES)

Life Member of THE MILLION DOLLAR ROUND TABLE

Live Q & A

Click to hear introduction.

Many hard-working, successful people have found that earning a living and getting ahead requires so much time and effort, they have little or no time to learn about retirement and financial planning. This is a complex process of accumulating and protecting their assets. It involves making decisions about the various components of their financial situation such as retirement, taxes, insurance, investments, mortgages and how they all fit together.

In the following interview, you’ll meet Pete Borowski, President of the Center For Estate & Financial Planning, Inc., who will share with you a few secrets of his success, that is, reasons why so many clients have come to depend upon him as a source of guidance in matters relating to a wide array of financial services.

Since 1976, Pete has been dedicated to helping clients accumulate, manage and preserve their assets. He achieves this through comprehensive financial planning based on quality investments and financial products, combined with exceptional knowledge and long-standing experience. His focus is on retirement planning, estate and business planning, pension rollovers, tax reduction strategies and investments. "Successful people," says Pete, "have learned how to earn and accumulate money. I help them use little-known tax reduction strategies to legally enhance their net worth, keep more of what they earn and preserve that wealth for their heirs by keeping it in the family."

Pete holds a bachelor's degree from the University of Baltimore, Maryland. He is a Registered Health Underwriter, A Life Underwriter’s Training Council Fellow, Licensed Mortgage Broker, Stockbroker and Registered Principal in the Securities Industry. He has also earned and been awarded the Certified Senior Advisor designation. In addition, he has also been a member of the prestigious Million Dollar Round Table for the past 15 years. This achievement makes him a Life Member and places him in the top 8% of all financial planning people in the United States. Since 1982, Pete has taught continuing education credit seminars for CPA's, attorneys and accountants on financial planning and tax planning concepts since 1985. He has conducted more than 100 seminars on retirement and investment issues and has appeared as a radio talk show financial expert.

And now let's listen to the interview.

Question 1:

Pete, I understand that you had a specific reason for naming your company - "The Center for Estate and Financial Planning." What was it?

Answer:

The reason I chose that name is that I wanted the client to be in "The Center". This allows the client to discuss his or her goals and bounce things off just one person, rather than having to see a series of financial advisors to get recommendations. Finding a trusted advisor can be time-consuming and complex but finding a dozen different people to trust a dozen different financial areas is mind-boggling.

I think of "The Center" as the quarterback. He tries to help you make the plays, he knows what else is happening on the field and knows what should be done next. It's critical that all aspects of a person's financial situation be looked at when making any decisions, because you know, you can sometimes "shoot yourself in the foot" when you think your helping yourself.

Question 2:

You mentioned "trust". The title of your presentation is "Trust, Integrity and Service". Trust seems important to you.

Answer:

Trust is important in life in general but I think trust is of paramount importance in this business. This title seemed appropriate because the vast majority of my clients refer me to members of their family, friends or colleagues and without that all-important trust along with integrity and service, I probably would not be referred as often as I am. I'm still working with a number of clients that I have worked with for over 20 years and I'm quite proud of this fact.

Question 3:

Pete who are the clients that you work with; do they share any common problems?

Answer:

Most of my work is done with seniors, and people who are retired or are nearing retirement. People come to me with assets in 401(k)s, IRA's or pension plans or other accumulated funds. They need to make retirement distribution decisions or maybe evaluate decisions that they made a number of years ago to see if they're still on track with their money.When meeting with people who thought that everything was ok and they didn't need my help, I've frequently found problems that would have had serious repercussions for either them or their heirs.

Question 4:

Now Pete, you told me earlier that the fastest growing population in America is Seniors. What special problems does that present to this group?

Answer:

Wow, I'd need 30 minutes to try to do justice answering that question, but let's just take two very important issues for seniors. Steve, I've taken the time to become a Certified Senior Advisor, a designation that less than 50 percent per state have obtained so far. So, I've had special training in helping seniors. First Steve, the old concern about dying too soon has been replaced by the concern of living too long and running out of money. Second, we know people are living longer today, and as a result we understand that long-term care may well be needed so we can retain our independence and preserve our assets. You probably already know that long-term care insurance is very expensive, often costing over $5,000 a year. This is a real problem for seniors. Should they spend the money for LTC, something they may certainly need, or save those dollars, because we are all living longer? One way I can help clients is to share a new unique annuity plan that make three dollars available for LTC for every dollar they put into the annuity. So a $50,000 deposit instantly becomes $150,000 available for LTC. However, and this is the key, if the money is not needed for LTC or home health care, it's still an asset of theirs, which is available for income needs anytime or to pass on to their heirs. Few financial planners know about this new opportunity for seniors, armed with this strategy I can help my clients retain their independence and preserve their assets. I think most seniors need to be on the safe and conservative side of things and their money and independence is really important to them.

Question 5:

A while back you shared some letters you received from clients about problems you helped solve for them. I have to tell you that I've interviewed many financial people over the years but I was particularly impressed by the number and the tone of these letters!

Answer:

That's the kind of business I have, Steve. My business has never been "one product fits everybody". I'm a problem solver. I've often said that if we all got sick and went to the same doctor, who gave us all the same prescription drug, half of us would probably die. The point is that no single plan or product can solve everyone's problems. We all have different needs and concerns and that requires different solutions. Over the years I've acquired numerous industry designations, license and a great deal of knowledge in many financial specialties. This is an educational process that required many years of college and post graduate study. I've done this because I want to help my clients in every way that I can. If one tool doesn't do the job, I want to have other tools or skills to get it done. With my experience, training, and knowledge I can look at the clients situation and give some thought to a lot of different areas that are affected, in an unbiased way. I know that I have the ability to provide the best solution for that particular client's needs, and as a fully independent financial planning firm I can pick and choose what is best for that client.

It really upsets me when I hear about people losing most of what they worked for their entire life, simply because they didn't know the rules of how to protect their assets, and play the game of money. Think about this - if you don't know the rules of the game, how can you possibly win?

Question 6:

I understand that there was a particular incident that helped you decide to get into financial planning, over 25 years ago. Can we talk about that?

Answer:

Sure. It's something that hits very close to home. Someone I knew had spent over 28 years in the military, worked his way through the ranks from an enlisted man at Pearl Harbor to a Lieutenant Colonel in Vietnam. He retired and 14 days later was in an auto accident and 14 days after that, he dies. Steve, his widow doesn't receive a nickel from his military pension after going through three wars and 28 years of service in the United States Army.

Steve: That's terrible! Why not?

Answer:

Basically, because he made several mistakes. Before he retired he went down to the Veteran's Administration to make changes in his retirement paperwork and he was told he had six months to make these changes. Well at that time, he was in the process of selling a house in Maryland, and having a home built in Florida and moving his family here. So he didn't do it right then, after all the VA told him he had six months to make changes. Sadly, he didn't have six months; he didn't even have 30 days. Fortunately, he had a good-size life insurance policy, but that pension of over $3,000 a month would have made a big difference in his widow's life. The reasons this happened was his priorities were not in the order of real importance and his lack of planning.

Question 7:

Pete, there's a letter here from someone you helped receive a fairly large court settlement.

Answer:

Yes. This was a case where I had been recommended to an Attorney who needed to locate an expert witness. His client Mildred had lost $122,000, almost 17 years earlier. She had given $250,000 to a stockbroker to invest for the future security of a disabled child. That broker had placed the money in inappropriate investments and had lost half of it. The Attorney was not just looking for a stockbroker to help him. He knew that I wasn't just a plain financial planner or stockbroker, but that I have a lot of overall knowledge in a variety of different financial areas.

Steve: So what did you do?

Answer:

Because of my education and knowledge I was able to do the necessary research which I turned over to the Attorney's firm. I was told that as a direct result of my work the Attorney was successful in obtaining $122,000 as an out-of-court settlement. Mildred, you can imagine, was ecstatic, she thought she had lost these funds forever. You see there is no time limit to file suit when a disabled person's funds are involved. By the way, I now have two new clients: Mildred and the Attorney.

Question 8:

I can see that you have a larger body of knowledge than the average financial professional. How else does this help you help your clients?

Answer:

I've always felt that having knowledge in many different areas of my profession helps me look at the problem from many different angles. As a result, I sometimes see things that other financial people overlook. As an example, I helped an older retired couple, Harold and Cora. When Harold retired, after 40 years as a municipal employee, he took an option on his pension that would only pay him for the rest of his lifetime. Upon his death, there would be no pension for Cora, his spouse. When I met them and looked over their financial affairs, I pointed out that the loss of this pension money would cause a serious shortfall in income if Harold dies first, and Harold was perhaps 12 years older than his spouse. They agreed this was a problem that concerned them. I suggested several changes that resulted in immediate income tax savings and also removed the government tax on their social security income. They really liked that! These changes also allowed them to save additional money every year. About 10 years later Harold did die first. I then met with Cora and explained that because of our work she had accumulated enough money over those years and that she was going to be all right financially, for the rest of her lifetime. I really enjoy working with seniors and people near retirement.

Question 9:

You would probably agree, then, that people about to retire should seek the advice of a financial professional before making these serious decisions?

Answer:

Definitely! Human Resource Departments are not trained to help people do this, their knowledge in this area is limited or non-existent. Typically, they'll hand out a video or booklet when people are about to retire and leave it up to them to pick out what they think is best. This results in decisions being made without truly understanding all the choices, those stated choices and those that are not stated! This is much too important a decision to be made without knowing and understanding all that's involved. This can easily lead to what I refer to as "the pension trap". Steve, research studies indicate that over 85% of retirees make serious irrevocable mistakes in their pension choices that can be avoided with a professional's help. The solutions given by the Human Resource Departments are usually the ones mandated by the government as to how much money has to be taken out or rolled over but all options may not be obvious and they frankly are complex. My background enables me to provide my clients with all the solutions they need to know about for their benefit, NOT for the benefit of the company or pension plan they are in.

Question 10:

You are experienced in retirement planning, tax reduction, insurance and investments.How about estate planning?

Answer:

Estate planning and asset protection are really one in the same and they make up a large part of my practice.Our government loves people who procrastinate and delay planning. This just makes the government's share of your wealth greater and your family's share smaller. I know how to work through our complex tax codes and help someone to legally pay those taxes at a substantial discount. I have helped many clients save thousands and even hundreds of thousands of dollars in taxes by planning now. Remember if you know the rules you can win the game. The rules are all in the Tax Codes.

I find with the recent tax changes that people are really confused. Here's the bottom line, taxes are and always will be a concern, whether they call it Estate taxes, inheritance taxes, capital gains taxes, social security taxes, probate or something else tomorrow. We still need to plan to take care of you and your spouse and your children. It might be appropriate here to tell you about one of my clients who owned a large farm. When I first met them they told me that everything was fine and they didn't feel that they needed to look into anything. Ultimately, they did give me permission to look at some of their documents and I discovered a mistake that they told me would have torn their family apart because of the way they had set up their estate. Luckily it was discovered and straightened out ahead of time. I'm able to explain in easy to understand terms how various trust and legal documents can solve difficult financial and family problems... this is especially helpful in estate planning and probate avoidance issues. Steve, I had another situation where a client was retiring from the post office, he was getting the distribution from his 401(k) and he needed help making some decisions. At the same time, his wife was retiring after years of service with the VA; we did some planning and within one year his wife was diagnosed with cancer. Several things still hadn't been done, simply because they had put this off. As I frequently do, I brought a notary and all the proper documents to be signed to the client's home to get it all done. This client later told me that he felt I had gone, as he put it, "above and beyond the call of duty with the services I provided them at a very difficult time". Frankly, this is typical of the level of service I provide to my clients.

Question 11:

It's obvious that you've been very successful in helping people solve potentially devastating financial problems.What would you attribute your success to?

Answer:

Well, remember the story I told you about the Army professional Soldier, who retired, then dies, and his wife did not get his pension after 28 years of military service?

Steve: Yes

Answer:

Well, that was my Father. I decided a long time ago that helping even just a few individuals a month avoid making serious financial mistakes, would be a worthwhile career. In my practice I have the opportunity of helping people provide for their loved ones and in planning to make their own golden years financially secure. What could be better! I'm driven by a natural enthusiasm for what I do, I give the utmost care and attention to each and every client. I enjoy the challenges that are presented to me and I feel that I've armed myself with sufficient knowledge and tools to meet these challenges and make worthwhile contributions to my clients' lives. I derive a great sense of satisfaction from what I help my clients accomplish. My clients' benefit directly from the personal commitment I make to be the very best consultant I can possibly be, and many clients become close personal friends.

FINAL QUESTION:

As a final question, let me ask you this. For those who have listened to this interview and would like to discuss their problems or may feel that they need help in reviewing their assets, what would you suggest as a first step?

Answer:

I welcome anyone who wants to discuss their particular financial situation and concerns or is interested in investigating new investment opportunities. In any case, the first step is to meet for an initial no-cost, no-obligation consultation. I am available to meet in the client's home, business, or at my office. I've found that it's usually nest to meet under these circumstances to see if I'm the right person to help you. I would really encourage anyone listening, who is interested or has just a few questions about their situation to call me or someone right away. It's never to late to get started at any age. I've often said, "It is much less expensive and painful to learn from the mistakes of others than by making all those mistakes yourself". The first step is as close as your nearest phone. I welcome your call and look forward to hearing from you.

Benefits For You : At this time we invite you to hear directly from a few of Pete's clients and what they have to say about his work with them.

Thank you Pete.

 

This concludes our interview. Naturally the benefits you'll derive from this presentation depend entirely upon you. We invite you to listen to this recording again or share it with a friend that you feel could benefit from Pete's services.What you've just heard is a small sample of the many services that set Pete apart from stockbrokers, insurance agents, accountants, and other financial advisors. If you'd like to find out how he can help you, we cordially invite you to call today for a complimentary one hour consultation; one hour spent now could mean saving thousands maybe even hundreds of thousands of dollars for you and your family. Pete welcomes your questions and comments and looks forward to working with you. We invite you to call Pete today at the phone number listed on the enclosed business card. Thank you so much for listening. To hear directly from a few of Pete's clients and what they have to say about his work with them, click here.