An IFA is a Team Sport: Is Your Advisory Team Built to Win?

(Part of the IFA Master Curriculum)

As a successful business owner, incorporated professional or individual, you understand the power of a great team. The same principle applies to your financial life, especially when implementing a sophisticated strategy like an Immediate Financing Arrangement (IFA).

An IFA is not a product you simply buy; it’s a complex process that requires a coordinated team of independent experts working in concert on your behalf. A breakdown in that teamwork can cost you dearly.

This guide is for you, the client. It will help you understand the roles on your team and empower you to ensure they are built to win. For a more detailed look at the team structure, you can read our foundational article, The IFA Core Advisory Team: A Requirement for Success.

The High Cost of a Disconnected Team

Are you the primary conduit of information between your advisors, relaying messages and forwarding documents back and forth? When it comes to an IFA, this lack of direct collaboration can be detrimental.

When your advisors work in silos:

• The insurance structure might be based on investment return assumptions your wealth advisor has never seen.
• The investment portfolio might be structured in a way that your accountant can’t defend for tax purposes.
• The legal ownership structure might not align with your estate planning goals.

In short, a disconnected team puts your entire strategy at risk.

Your Role: The CEO of Your Financial Plan

To ensure success, you must take on the role of CEO for your financial plan. Your job is to assemble and manage your Core Advisory Team, ensuring every member understands their role and communicates effectively.

Your team consists of four key specialists:

• The Architect (Insurance & Modeling Specialist): This is our role at Taxevity. We design the foundational insurance policy and create the sophisticated financial models that drive the strategy. To learn more, see The Arthitect’s Role on the IFA Core Advisory Team.
• The Guardian (Your Accountant): They protect you by ensuring the strategy is tax-compliant and that all financial assumptions are realistic. You can share our detailed guide with them: The Accountant’s Role on the IFA Core Advisory Team.
• The Strategist (Your Wealth Advisor): They design and manage the investment portfolio for the borrowed funds, balancing growth with critical tax rules. You can share our detailed guide with them: The Wealth Advisor’s Role on the IFA Core Advisory Team.
• The Advocate (Your Legal Counsel): They protect your interests by reviewing all contracts and ensuring the legal structure is sound. You can share our detailed guide with them: The Legal Advocate’s Role on the IFA Core Advisory Team.

The Integrator and A Note on Conflicts

Furthermore, your team needs a designated Integrator—a coordinator responsible for keeping the team aligned and the process moving forward. This role is often filled by your wealth advisor or accountant. However, if you have the time and project management skills, you may choose to take on this role yourself. The key is that someone must be formally responsible for coordination.

As you assemble your team, be aware of potential conflicts of interest. An advisor may have pre-existing relationships or forced to use an in-house person without the niche expertise required for a successful IFA. As the CEO of your plan, you have the right and responsibility to ensure that each role is filled by an independent specialist with deep, verifiable experience in this specific strategy.

Your Playbook: Questions to Ask Your Team

As the CEO, you need to ask tough questions to ensure your team is up to the task.

• To the whole team: “Have you all met to discuss my IFA strategy? Are you working from the same set of assumptions?”
• To your accountant: “Have you reviewed the investment plan from my wealth advisor to ensure it meets the requirements for interest deductibility?”
• To your wealth advisor: “How are you collaborating with my accountant to ensure the investment strategy is tax-efficient?”
• To your lawyer: “Have you reviewed the policy ownership with my accountant to ensure it optimizes my estate plan?”

Their answers will tell you a lot about how well your team is truly collaborating.

Conclusion: Build a Team That’s Built to Win

An IFA is a team sport. Winning requires more than just having good players; it requires a coordinated strategy and flawless execution. By taking on the role of CEO, you can ensure your advisory team is working as one cohesive unit to protect your interests and maximize your success.

At Taxevity, we are the Architect on your IFA team, and we thrive on collaborating with your other trusted advisors.

Is your team ready for an IFA? If you are exploring this strategy, contact us. We can help you and your advisors understand the process and our role in building a successful plan.

Promod Sharma (FSA, FCIA) and Jeevan Sharma (CFP) YOUR FAMILY TEAM

At Taxevity Insurance, we’re passionate about bringing clarity to complex financial decisions. Let us empower you with personalized strategies to achieve your goals. We focus on life and health insurance solutions to protect your business, your family, and your legacy.