What if the secret to true financial abundance isn’t found in a textbook, but in Italian tradition? Michael Angiletta, Founder of Movative Financial Services, introduces us to the “Art of Abbondanza” - a holistic approach to wealth management rooted in Italian tradition. This philosophy balances financial security with life enrichment and generational prosperity, going beyond conventional wealth accumulation. Angiletta reveals how this unique cultural perspective shapes innovative strategies, offering clients a path to true financial abundance.
BY LF ITALY
October, 2024
You often talk about the ‘lost art of abbondanza” why lost?
MICHAEL ANGILETTA: Unbeknownst to me, I was born and bred for my current role. I grew up in a home where my family and I openly discussed money, personal finance, and many other topics at the dinner table together. Everyone knows Italian culture is centered around food and family, and much more. Unfortunately, today, only 3% of families discuss money openly at home.
This creates a knowledge gap. When I walk into someone’s home or office, I feel right at home discussing money topics over an espresso, maybe a cookie or pastry if I am very lucky, and provide clarity and honest advice. Every goal-based plan I create for people, whether it be for retirement or a future home purchase, I always leave some money for their unknown future self and those future needs, such as saving for an emergency fund or long-term savings.
How did your heritage impact your financial philosophy?
M.A: I grew up with ultra-frugal paternal grandparents and extravagant maternal grandparents. I was able to see the folly of both extremes. I believe I am in the middle, leaning more towards frugal with an ability to invest and go all the way, not missing out.
My father told me when I was about 12 years old that I was going to be “responsible” for continuing the family wealth. By founding my company, I have my own family legacy, and through my work, I help other families create their family legacy.
What methods do you recommend for managing personal finances?
M.A: In the past, many people would use the “cash in an envelope” method to manage their budget and expenses. Today, we can create various accounts and manage this way, or my personal favorite: “pay yourself first.” Save before you spend. Every goal-based plan I create for people, whether it be for retirement or a future home purchase, I always leave some money for their unknown future self and those future needs, such as saving for an emergency fund or long-term savings.
Italians have a tradition of passing on financial knowledge through 5 pillars:
Family businesses: Italy has a strong tradition of family-owned businesses, especially small and medium-sized enterprises. This suggests a culture of passing down not just the business itself, but also the financial knowledge needed to run it successfully.
Generational wealth: In many Italian families, there's a focus on building and maintaining wealth across generations. This often involves teaching younger family members about financial management.
Frugality and savings: Many Italian families, especially those who lived through difficult economic times, have traditionally placed a high value on frugality and saving money. This knowledge would typically be passed down to children.
"La Famiglia": The strong emphasis on family in Italian culture often includes financial support and advice across generations.
Apprenticeship system: Historically, many trades in Italy operated on an apprenticeship system, where young people would learn not just the craft, but also how to manage the financial aspects of the business.
Can you share some practical financial tips?
M.A: Here are some practical tips and rules of thumb to live by:
1. Create an emergency fund of 3-6 months of fixed expenses.
2. Buy income replacement insurance. Have your company pay for it if you can.
3. Save 10% of your gross income.
4. Buy the most cost-effective life insurance.
5. Get incorporated sooner than you think if you are self-employed. Talk money with your children.
How do you approach insurance
discussions, particularly with the Italian community?
M.A: The Italian community has mixed emotions about insurance, even more so for their children. Sometimes they have very negative feelings about this topic, from simply not knowing or understanding, to negative experiences. I help defuse those feelings with facts, evidence, and a practical approach. I like to use personal examples from their reality, whether it be work, family, or personally related. Group insurance allows the companies I work with to retain their employees, provide financial security, and we help add a fair dose of practicality. Let’s start small and build the plan as the company grows.
How do you align your services with clients’ values and goals?
M.A: I bring these lessons to my clients to help align them with their values. You want to buy a Ferrari? Okay. If you change your mind or want to get out of it, try this or that. Can no longer afford it because business is not doing so well? What is the downside to sell? Can your company pay for it? Can we sell the life policy to your corporation and get some money tax-free and purchase that boat? Want a villa in Umbria? Let’s invest and create the income to support it, not use your paycheck.
How do you involve the next generation?
M.A: We work with the children of our clients to allow them access to advice and help the family values come true. With better information comes better decisions, and better decisions allow for better outcomes.
How does culture impact your role?
M.A: Being Italian in financial services is good. I have been told by many clients from different ethnicities that we have a good reputation and are both inspirational and aspirational to many communities. I have this framework: I need to show the way and help you go the way, perhaps in new ways, or to a potential destination you did not even know about.
How has your background shaped your approach to serving diverse communities?
M.A: Many things have changed and will continue to change. I cannot even begin to imagine the struggles of immigrating communities. My grandparents told me about it, and I was very young and not always understanding those unique and difficult realities. I believe they had to adapt and adapt quickly, without all the tools we have today. Somewhere inside me, a spark, a legacy from that struggle, allows me to grow in a world of abundance. They grew up often in a scarcity mindset, and their context justifies it.
I hope with all I have learned, the 15+ years of banking, 10,000 appointments, thousands of calls, and my Italian heritage and family have shaped me into the person I am today. This heritage is something I cherish and pass on to my own family. My wife Sophie, my son Luca (10), and my daughter Mia (7) support me in my mission by understanding when I’m occasionally late for dinner. I do my best to be home every evening for supper so we can eat together. They love my cooking, especially the recipes from Nonna, which keep our Italian traditions alive. I’m even hoping to add an Italian-style wood-burning oven in our yard - keep your fingers crossed for us!
I am proud to be who I am and proud to serve the community and members of every community who want to rise up and be a better version of themselves. This drive to help others is balanced by the love and support of my family, who understand the importance of my work while also keeping me grounded in our shared heritage and daily life together.
How do you align your services with clients’ values and goals?
M.A: We bring these lessons to my clients and help align with their values. You want to buy a Ferrari” Okay. If you change your mind or want to get out of it, try this or that. Can no longer afford it because business is not doing so well? What is the downside to sell? Can your company pay for it? Can we sell the life policy to your corporation and get some money tax-free and purchase that boat? Want a villa in Umbria? Let’s invest and create the income to support it, not use your paycheck.
What recent changes have you made in your business model?
M.A: We recently made a big change. We left the mutual funds world and have elevated our clients to portfolio management. This
has changed the game for all stakeholders. This move has allowed our firm to remove all the barriers to client experience and the client relationship, which are the true essence of an advisor/client relationship. We can now deal with clients on their terms, wherever they are. With this new model, we are actually one of the first in Quebec to offer this approach, and I am the first Accredited Financial Counsellor of Canada in Quebec. This certification allows me to work with clients on their needs without being obliged to recommend a financial product to monetize the relationship. To maintain my AFCC certification, I complete 30 hours of approved continuing education credits every two years and adhere to my professional code of ethics and standards of practice annually in my promise to the clients within my care. This is a testament to my ongoing professional development and leadership. A requirement I take pride in, as I hold space for the significance and impact for the lives of all clients that I support.
How do these changes benefit your clients?
M.A: Currently, a client “must” buy something for me to be paid. This does not always work for all clients. Further industry changes have forced us to work with clients with a minimum investment amount of $300K. You cannot work with a community if your minimums are so high; most people are priced out. Clients who need the more traditional model, we can service them on their terms. Younger or non-traditionally served groups by financial services can now be served, coached, helped, and then allowed to graduate, if they want, into a traditional model.
As an AFCC professional, I specialize in all areas of personal finance but especially, the applied approach of counselling and credit guidance. I help clients develop sustainable financial strategies that are future focused, offering support within the framework of my AFCC’s ethical standards. I am here to support the varied needs of all individuals and can walk with them throughout that lifecycle as determined through my client-centric approach.
Not sure where to start? Call me.
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