AARON SMITH Financial Planning Step-by-Step
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Efficient Technology — Mastering Your Business Social Networking — The Five Biggest
Document Information Sharing ... 10 in a Down Market ... 17 Mistakes Nichpreneurs™ Make ... 22
the
Vol. 10 No. 7 • July 2009 Official IARFC Publication www.IARFC.org
AARON SMITH
Financial Planning
Step-by-Step
Serving Financial Advisors Worldwide
Proven results from the
Financial Planning Process™ course
Financial Planning Process
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800 532 9060
www.IARFC.org
• IN THIS ISSUE •
2 Register Letters
Financial Planning Building 2 Calendar of IARFC and Industry Events
2507 North Verity Parkway
P.O. Box 42506 3 Register Interview — Aaron Smith
Middletown, OH 45042-0506 Financial Planning Step-by-Step
800 532 9060 • Fax 513 424 5752
www.IARFC.org 4 More from Norm
6 From the Chairman’s Desk
BOARD OF DIRECTORS
7 Spotlight on IARFC Benefits
IARFC Brainstorming Session
Edwin P. Morrow, Chairman & CEO
by Amy Primeau
CLU, ChFC, CFP®, RFC®
edm@iarfc.org
8 Tele-Sales… Can It Work for You?
Lester W. Anderson, V.P. by Wilma Anderson
MBA, RFC®
ande1024@bellsouth.net 10 Efficient Technology
Wilma G. Anderson Document Information Sharing
RFC® by David Lawrence
wilma@theltccoach.com
H. Stephen Bailey, President 12 Cato Comments — About Your Image
LUTCF, CEBA, CEP, CSA, RFC® Afraid, Evasive or Scared!
steve@hbfinancial.com
14 Listening Eyes
Antoinette Francis Bolden by Jim Lifter
CA, MBA, RFC®
abolden@emerald.bm 17 Mastering Your Business In a Down Market
Jeffrey Chiew Why a Sound Budget Means the Difference
DBA, CLU, ChFC, CFP®, RFC® Between Profits and Disaster
jeffreychiew@yahoo.com
by Peter Vessenes
Vernon D. Gwynne
CFP®, RFC® 20 A Question of Ignorance
fsxfirst@aol.com by Jonathan Neal
Derek D. Klock
MBA, RFC® 22 Social Networking
ddklock@vt.edu The Five Biggest Mistakes Nichpreneurs™ Make
Edward J. Ledford, V.P. by Susan Friedman
CLU, RFC®
eledford@gmail.com
24 Dear Mr. Fantasy
by Barry Ferguson
Ruth Lytton, V.P.
MS, Ph.D., RFC® 27 Business Mirrors Life
rlytton@vt.edu Is It Brainstorming or Just Another Crazy Idea?
James McCarty, Secretary by Hesh Reinfeld
CLU, RHU, LUTCF, RFC®
jim@showbizselling.com 27 New IARFC Members — Referror of the Month Richard J. Staszak
William L. Moore
Pharm D., CLU, ChFC, FIC, RFC® 28 IARFC Staff and International Coordinators
wmoore@kbigroup.com
Rosilyn H. Overton
MS, Ph.D., CFP®, RFC® The Register is published monthly by the International Association of Registered Financial Consultants ©2009,
roverton@nyfinancial.com 2507 North Verity Parkway, Middletown, Ohio 45042-0506. It includes articles and advice on technical subjects,
economic events, regulatory actions and practice management. The IARFC makes no claim as to accuracy and
Ruben Ruiz, Treasurer does not guarantee or endorse any product or service that may be advertised or featured. Articles, comments and
ChFC, CLU, MSFS, CSA, RFC® letters are welcomed by e-mail to: Wendy M. Kennedy, Editorial Coordinator, Editor@IARFC.org SSN 1556-4045
rruiz@moneyconcepts.com Periodicals Postage Paid at Mansfield, Ohio.
POSTMASTER: Send address changes to: P.O. Box 42506, Middletown, Ohio 45042-0506
The Register | July 2009 Page 1
Register Letters
We welcome all your comments, suggestions,
ideas and articles. Please direct correspondence
to: editor@iarfc.org. Letters may be edited
for length and clarity.
Dear Register, Dear Register,
Once again I thoroughly enjoy articles One of the first things I do when I receive
written for the Register by Jim McCarty. the Register is read it from cover to cover.
This last one however, Custer Wore an I know I am prodigious on the subject but
Arrow Shirt, in Vol. 10 No. 6 caused me to I believe it is one of the best journals for
question the math concerning the worth financial planning in the world.
of every hour and every minute. Knowing
I was especially delighted to see the
Jim seldom if ever makes mistakes I asked
article from Ed Morrow, From the
for some clarification. I love your
magazine continue the great work.
Chairman’s Desk… on estate planning. CALENDAR OF EVENTS
As I travel and speak around the United
Richard Kuriger, RFC®
States, I see more and more Financial IPS Workshop Fact Finding
Houston, TX
Planners and Estate Planners going back July 29-30, 2009, Atlanta area
Response: to their clients to make sure the plans are
concurrent with the Federal tax laws. One International Dragon Awards
Thank you so much for your August 6-9, 2009, Taipei
planner told me he has added 31 new
observations concerning the math
clients in the last 6 months, not as much IARFC Graduation
in Custer Wore an Arrow Shirt.
for full financial planning but for Estate Continuing Education Event
As I am used to saying, the story is
Planning. He went on to point out that August 13, 2009, Taipei
completely true (and so is the chart)
several of his clients have financial
it just isn’t truly complete. The chart Pacific RFC Conference
planners, but they had not had any
is based upon 8 hours a day times August or September, 2009,
contact with them for several years. “Call
244 working days per year. I trust this Australia & New Zealand
all of your clients for Estate Planning
will solve the mystery for you.
updates,“ he recommends.
CE at Sea IARFC Caribbean Cruise
Jim McCarty, RFC® September 6-13, 2009
Bill Moore, RFC®
Daytona Beach, FL
Dallas, TX
___________________________________ NAIFA Annual Conference
September 12-16, 2009, Orlando
Norman Levine Interview
Journal of RFC Accelerated Course
As someone I had the pleasure to meet
and hear on several occasions during MDRT Personal Finance September 21-24, 2009, Middletown
IPS Workshop Fact Finding
meetings, LUTC events, etc… I always
Sept 30 – Oct 1, 2009, Atlanta area
appreciated the simplicity of your thoughts
and message. Not easy (if it was easy
Call for Papers
Financial Advisors Symposium
everyone would be doing it!)… just simple November 9-11, 2009, Orlando
to understand and grasp. I found that with Get Involved:
Tom Wolff, John Savage and many other We welcome the submission of articles Critical Illness
“giants“ in this industry like yourself. Always from IARFC practitioners. This is a great Insurance Conference
generous to give advice and such a strong way to contribute to the profession. January 6-8, 2010, Taipei
advocate for the profession. Professional Articles: The Journal is Critical Illness
Thank you for that! seeking articles by practitioners that Insurance Conference
may deal with the application of January 6-8, 2010, Bangkok
This article is so YOU! How can someone financial planning techniques,
call themselves a full time professional marketing and practice management. MDRT Annual Conference
only seeing five people a week, only These are expected to be very high June 13-17, 2010, Vancouver, BC
offering one product without a fact find? level papers and/or articles. RFC Sessions at WCLIC
Classic Norman!
Publicity Opportunities: Naturally, August 5-8, 2010, Chongquin, China
Your thoughts about the global economy we encourage published authors to
is so right on as well: “I want it now“ “I
advise their clients and the media of
want it yesterday“ and “I don't want to
their published articles by sending a
pay for it“ ! Wow… you talk about hitting The IARFC is proud of our members
press release and copies.
the nail on the head! and in reverence we would like to
Contact: Dr. Ruth Lytton remember our passing members:
Anyway… thank you so much for all
you've done and all you do. Call: 540 231 6678 Alfred L. Filippini, RFC®
E-mail: rlytton@VT.edu Carpinteria, CA
Mike Coy, RFC®
Austin, TX
Page 2 The Register | July 2009
Register Interview — Aaron Smith
Financial Planning Step-by-Step
Aaron W. Smith, RFC® is a long time
member of the IARFC and he is the
founder and president of A. W. Smith
Financial Group, Inc. With economic
uncertainty reaching unprecedented
levels, Aaron is reaching out to help
the public take control of their
financial future. His new book, “In The
Black“, sparked our interest in his
thoughts and how he is helping his
clients and other financial advisors.
How did you first enter
financial services?
I started in the business on a part time
basis. I was collection/credit manager at a
credit union and I routinely assisted the loan
department with new applicants. In
assisting and service the members I was companies that I was doing business with to What do you see for the association in
instrumental in offering them different ways learn their products. the next five years?
to utilize their income to assist with lowering
their debt. I found that I had a gift of talking Tell us about your current practice: Continued growth through membership and
and educating them and making them feel recognition. I always encourage fellow
comfortable discussing their current My target group of individuals is retirees. My representatives to contact IARFC for
situation with me. focus and concentration is values-based membership opportunities.
planning. Knowing what is important to my
With this new found knowledge of credit clients, their goals, and their lifestyles assists What should financial advisors be
and personal finance, combined with the me in establishing a custom financial plan doing in this economy?
information I was learning working in the that fits each individual’s needs.
insurance industry, I decided to move out Communicating more often with their clients
on my own on a full-time basis. How do you market now for and prospects. Continue a focus of
new clients? prospecting, prospecting. Now is a great time
What was your educational background? to build your clientele, because other advisors
By using my website, referrals, have been neglecting to communicate.
I am a graduate of the University of boulevardR.com, seminars, book and
Richmond with a Bachelor Degree in speaking engagements. What will be the impact of technology
Sociology. In addition to the RFC, I also on the practice of financial advisors?
have a designation as an Accredited What are your major frustrations?
Investment Fiduciary. Wonderful! The time is approaching for us to
The one thing I can say frustrates me the utilize technology to assist client via internet
Were you successful at first? most are the financial planners that go back (association and personal website, webinars,
and forth with each other in a bickering all lead to more person-to-person meetings.
In the beginning, it was a challenge; learning fashion about what product is best suited
the different products, staying focused, for Americans without ever sitting down and What should advisors to concentrate on?
approaching prospects and marketing. But talking and learning about the people. It’s
the key to getting past the first hurdle was always about the client and their well-being. Continue your education. Study all the
focus and consistency. I never thought about No one product solves a problem for financial issues regarding industry changes
giving up, I just kept at it. everybody. There are just too many and policies. However, you must also study
variables in life that will not allow that. the social and psychological effects of all the
What were your major obstacles? financial issues. How are your clients and
What feature of benefit of the IARFC prospects reacting to current events?
Lack of experience. At the outset, I was has been of greatest value?
making mistakes based on lack of What’s looming on the horizon for
knowledge. Many times, I had to go back to The monthly publication has been a great our profession?
clients with corrected items. It forced me to source of information and knowledge in
read, read, read, and to utilize the support assisting me to educate myself, which in
persons and the marketing/staff force of turn always helps my clients. CONTINUED ON PAGE 4
The Register | July 2009 Page 3
CONTINUED FROM PAGE 3
More from Norm
REGISTER INTERVIEW: AARON SMITH
In my opinion, we will soon be facing even
more regulation and the consolidation of
smaller broker/dealers.
What do you wish you had done early
in your career? Shortly after the distribution of
the last Register magazine we
Fortunately, the mistakes I made help received calls and emails from
contribute to the person I am today, so I members who said, “Your profile
would not change anything. I am a better on Norm Levine was great — tell us
person because of the lessons learned. more about his attitudes toward
professional service.“ So here is
What have you done to more from Norm…
create a reputation in your
professional practice? Advisors must be technically
efficient. The real secret is compassion
Recently, had my book, In the Black for your prospects and your potential
released through Harper Collins publishing clients. They each have dreams and
the sub-title tells it all: Live Faithfully, aspirations and your job is to help obtain
Prosper Financially, the Ultimate 9 Step them. Most of the education and training
Plan for Financial Fitness. in our profession is geared to technology
and methodology. Far more important
What motivated you to write a book? for the beginning practitioner is
developing people skills which are very
In my desire to help as many people as I different from sales skills. For example,
could I realized that I must break down the sales people are taught to sell products,
appearance of the complexity of financial to do needs-based selling, and how to Norm. G. Levine, CLU, ChFC, RFC®
planning in a manner that is understandable deliver a memorized sales presentation.
and attainable for all people.
Good advisors don’t do any of the because you like people. From among
What can financial advisors get from above. Instead of pushing products, they the masses will come many prospects.
your book? provide solutions. Instead of needs that This is a people business.
they perceive, they find out what the
They can have accessibility to my process, prospect needs — then help them get it. Your image and your brand is built on
which has been a successful one for me Instead of talking non-stop, they listen by a 24-hour a day, 7-day a week basis. Not
to obtain and maintain clients. The book asking questions and finding out what are just when you are working. As a
can be used as a tool for the RFC to attract the interests of the client. All of which professional practitioner in financial
new clients. Soon a workbook will be means they listen a lot and talk a little. services, the most important word to
forthcoming for financial advisors to directly remember is “trust“. If people don’t trust
use the book with their clients, one-on-one, An important issue for all you, they will never accept your
and in groups. practitioners is prospecting. When suggestions. In order to achieve trust you
I speak to audiences, and I ask them must work at it 24 hours a day. I have
What is your availability to assist RFCs how many people they see in a week, defined necessary attributes with the
to teach them your process? most hands don’t go up until my count acronym WINE CASK:
gets down under 5. But the truth is every
I do offer seminars to audiences of person in the room sees hundreds of W — stands for Work ethic. If you are
registered representatives and insurance people every week. The difference is that not hard working and disciplined and first
and annuity brokers. I try to stress the when you are not in our business, if I in, last out, every day — you will never be
communication techniques and the asked a high school student how many as good as you could be.
principles that are outlined in the book. people they see in a week, they would
say hundreds. If you ask a professional I — Involvement. Involvement in the
The book can be purchased at Amazon.com. financial advisor how many people they community, involvement in politics, and
The list price of the paperback edition is see in a week, they say four or five. involvement in our industry. Living a life
only $15.99, and single copies can be being involved helps you meet the right
purchase for $10.97. If you want larger You see, they only count people where kind of people, but it also develops an
quantities please contact me. they can anticipate a potential client image of your giving, not taking.
relationship. I suggest that the other
Contact: 804 346 5900 thing new people should do is talk N — No Broken Promises. You tell
aaron@awsmithfinancial.com to everybody they see, just to be socially anybody you are going to do something,
www.awsmithfinancial.com friendly. At least 30 times a week
www.inthblackretirement.com have a conversation, not necessarily
www.boulevardr.com/advisor/AaronWSmith motivated with a sale potential, but CONTINUED ON PAGE 5
Page 4 The Register | July 2009
CONTINUED FROM PAGE 4 MORE FROM NORM
have it done in a timely way or perhaps People desperately
early. If you don’t do it effectively, you will need what we have to
get a reputation for not being dependable. share. There are more
people today with
E — Ethics. Without a doubt the most more problems than
absolute and essential ingredient. You ever before in history
cannot be half-pregnant; you cannot be and there aren’t many
half-honest. Either you are 100% straight or of us qualified to help
you are going to get a reputation of being them address
untrustworthy. One bad mistake in the those problems.
ethical area will destroy a career, and no
matter how many good things you do, you It is important for each
will never build an ethical reputation on the of us that we bring
good stuff. Therefore, I respectfully suggest more bright, ethical
that if you ever have to ask the question, “Is and dedicated young
it all right to do it?“ don’t do it, even if it persons into this
turns out later to be ethically correct. profession. We are in
People have the same questions and make the position to make a
the same judgments about you. tremendous
contribution to the
C — Compassion. It is not what is in it for future well-being of
you; it is what you can do for others. Every our society and to the
day of your life give, don’t take. individuals that we have the
opportunity to assist.
A — Attitude. If you are not a positive
person, you are headed for heartbreak a Your Responsibility
negative person does not get many friends
and many people following them. When you help build the numbers and growth and the contribution it will make
quality of personal financial advisors — you to the well-being of the financial industry
S — Skills. People skills, interrelationships will be elevating the profession and also and the impact it will have on those who
with other people is based on your capacity yourself — the respect and public esteem seize it as an opportunity for their
to interrelate with large diversified groups you should receive. professional presentation.
of people. Yes, technical skill must be
there, but skills in dealing with people are When I have nominated persons for the Levine Enterprises
far more important. RFC designation, the association has been 2162 Silverado Circle
quick to respond with a prospective Palm Springs, CA 92264
K — Knowledge. You must be recognized membership kit and personal follow-up.
as an intelligent individual who knows a lot My nominations benefit the association, Contact: 760 416 9424
about a lot of things not just business. And the financial advisor and the hundreds levineents@aol.com
somebody who people turn to when they of clients he or she will serve more www.levineenterprises.com
have a question or they are not certain effectively. Are you nominating
about what to do in a certain situation. You members on a consistent basis?
know you are doing well with knowledge Norm Levine’s Books:
when people come to you for advice and Through my extensive activity in A Passion for Compassion
counsel that is not related to your business, professional associations I have made Past is Prologue
as well as those that come to you because thousands of friends. My speeches Selling with Silk Gloves — Not Brass Knuckles
of your recognized professional status. and books have influenced many — The Norm Levine Reader
and I hope they have benefited both Yes You Can (English, Chinese, Thai)
Am I Optimistic About Our Future? the professionals and all their clients. From Life Insurance to Diversification
And along the way I have grown from How to Build a $100,000,000 Agency
Obviously, there is much more we could the army veteran ecology graduate to High Trust Leadership
review. But, I believe that, despite all the a career of fulfillments and rewards.
negative economic issues the future is still Audio Cassettes or CD Sets:
very bright. I have eight books in print that Therefore, I am enthusiastic about The Formula for Successful
unto themselves indicate that we could go the International Association of Financial Advising
on for hours. The bottom line is we must Registered Financial Consultants Past is Prologue
address the issues that are of most value. because it has the potential of If You Sell Well — There Are No Impossible Dreams
making a worldwide difference in Basic Sales Skills —
This is the greatest profession on this planet exactly all areas about which I am The Common Denominators of Success
and I think despite the current meltdown, truly concerned. I thank you for the High Touch Management Skills
the potential for the future now is even opportunity to have had and I look Re-Dedication for Success
greater than it was before. forward to the IARFC’s continued
The Register | July 2009 Page 5
From the Chairman’s Desk…
More Regulations! In addition to all the clients — or risk the loss of their business Concerned about the possibility of a
proposals from FINRA and the SEC the IRS and their future referrals. Van Morrison economic slowdown, the Chinese
now wants to get into the act — to broaden and Rod Stewart made the song Have I government is taking a capitalistic
the scope of its control over practitioners. Told You Lately? popular in its second approach, one somewhat reminiscent
On June 5th, IRS Commissioner Doug reprise, after Elvis performed it in the of Franklin Roosevelt. The project to
Shulman announced he intends to propose early seventies. build 22 dams north of the giant Three
a comprehensive set of recommendations Gorges Dam on the upper Yangtze River
to ensure “uniform and high ethical Plan some simple touches to take (the world’s largest — originally proposed
standards of conduct for tax preparers“ in place while you are arranging for more by an American) has been accelerated.
order to increase taxpayer compliance. comprehensive and personal contact. Rather than start one per year, they are
For example, on page 21 there is an ad for starting eight. All other money is being
Some of the potential recommendations a Mid-Year Planning letter and 4-page poured into the construction of bridges,
of the IRS include a new model for memo, for only $145. You could also plan dams, canals, highways, schools and public
regulation of tax preparers, as well as to send a Financial Independence card or buildings. So when the money is spent,
increased service, outreach, education letter to all clients on the Fourth of July. there will remain all the infrastructure
and training of tax preparers, along with And by all means plan to design and send a improvements. Sounds like “trickle down
stepped-up enforcement to deter tax Labor Day card in September. capitalism“ but of course they would never
preparer misconduct. use that term.
Economic Stimulus in China. Last
Shulman will submit the recommendations month, at the invitation of the Chinese I am sorry to relate that the Chinese Army
to Treasury Secretary Timothy Geithner Institute of Certified Financial Planners, I is still in hiding. None could be seen
and President Obama by the end of the visited Beijing, Shanghai and the city of anywhere. No truck convoys, no military
year. He claims that, “Tax return preparers Nanning. I saw the Bird’s Nest Athletic jets overhead. Because there are more
help Americans with one of their biggest Stadium in Beijing and went on to the cars, there are more traffic police —
financial transactions each year. We playing field to see an illustration of the who appear to be unarmed. Passage
must ensure that all preparers are ethical, flag wavers. In Shanghai everything was in the airports is swift and convenient.
provide good service, and are qualified. being re-built and re-furbished for the Their version of ATA is competent and
At the end the day, tax preparers and the forthcoming World Expo in 2010. Since I polite, including the temperature
associated industry must be part of our was invited to address an audience of check of all immigrants who might be
overall game plan to strengthen the integrity financial advisors, I did my research on the carrying viruses.
of the tax system.“ small, rural town of Nanning in the southern
province of Guangxi. The flight into Beijing was delayed
Not to be outdone, the new head of SEC, because it left the U.S. late. The
Mary Schapiro, has proposed changes to the The official population in 2006 was 24-member Japanese virus inspection
custody rule for federally Registered 1,200,000 in the city and 3,200,000 in the team in Tokyo Narita airport was most
Investment Advisers that would subject province — ranking Nanning 51st in size. meticulous in their haz-mat suits, gloves,
them to a yearly “surprise exam“ by an But Nanning has been growing. The goggles, temperature measurement
independent accountant if the adviser has population is now 6,480,000 in the greater devices and cameras. Medical inquiries
asset management fees deducted by a city area. But I suspect that the city proper and screening onboard the plane took
third-party custodian. is only about 4,000,000. Nanning is a nearly two extra hours.
regional distribution center on the north
Client Re-Distribution. That means bank of the Yong River, and a new high Upon arrival four hours late, can you
clients leave one financial advisor or vendor speed rail almost complete will soon imagine processing through the Beijing
and take their business elsewhere. Why is shorten the connection time between Visa office at 3:30 am — one that had
that an estimated 40% of the American Nanning and Guangzhou (the old city of closed at midnight? The Chinese kindly
consumers are likely to make this switch? Canton) from 13 to 3 hours. re-opened the office, took photos, issued
Lack of attention! Everyone understands the visa, and then got a currency exchange
about the market meltdown. No one is From my hotel room I could count over booth to re-open since payment was
happy about it. But the reason consumers 200 tall building cranes dotting the required in RMB (People’s Money).
will switch is lack of communication. landscape, testimony to the future growth I was not required to remove my belt,
of the city. The streets are wide, bordered shoes, cell phone or metal cufflinks.
Have You Touched Them Lately? All of by shrubbery and trees and there are many The immigration officer smiled, welcomed
the studies indicate a need for advisors to parks, justifying Nanning’s claim to be the me to China, and joked, “Please spend
drastically step up the rate of contact with “Green City of China.“ lots of money here!“
Page 6 The Register | July 2009
Spotlight on IARFC Benefits
IARFC Brainstorming Session
Amy Primeau, Domestic Membership
I am frequently asked ‘what makes the advisors take time out of their day to come looking at include breaking the course into
RFC different?’ One of the things that to our office in Middletown? Many drove modules, extending the course over a
sets the IARFC apart is something you two hours each way, coming from as far longer time span, and making the software
won’t find mentioned in our Member away as Indianapolis and Columbus. They an optional, not required portion of the
Benefits & Services book. You won’t find it spent an afternoon with us — time they course. We are also exploring offering the
on our website. But if you get a chance to could have been spending with their clients. course through universities, community
spend time with any other RFCs, you will colleges and adult learning facilities. Finally,
quickly see that it is our membership itself The advisors came because they care we are working to get Broker/Dealers to
that sets us apart. about the organization. They are dedicated either sponsor the course or mandate it for
to their profession, and value the RFC® their Representatives.
For two years, we have been trying to get designation. We asked them to give us a
our course, the Financial Planning Process™, few hours of their valuable time and share The RFCs in attendance also gave us
rolling. Attendance has been lower than we with us their ideas. We simply offered them ideas to improve the effectiveness of our
anticipated, and we keep looking at our a chance to help make a difference in the marketing. We are applying this feedback as
marketing trying to get better results. We organization. It was also an opportunity to we look at possible target audiences, as well
decided to call on those who know best do a little networking with other RFCs. Their as work to get referrals from students who
what advisors in the field want — the experience levels ranged from 16 years to have previously taken the course.
advisors themselves. A brainstorming 50 plus years in the field. If you added all
session was scheduled for May 7, and we of the years’ experience together — it We are very grateful to the members who
started calling members who were nearby, would total more than 400 years of took time away from their practice to help
hoping we would have six that were willing experience in financial planning! This is us. Those attending were: Steve Bailey,
to come. We were pleasantly surprised to just a sampling of our many wonderful, Jeff Battles, Ben Evans, Brian Fenstermaker,
have 18 members tell us “Yes,“ they’d like knowledgeable members; which is why our Mike Moeller, Jim Moss, Bill Nelson,
to help. A couple had a change of plans membership, while an intangible benefit, is Paul Nenni, Don Oldham, Don Owens,
leading up to the event, but our session still what makes the IARFC different. John Pickarski, Jim Rudolph, Jerry Suver,
had 15 advisors present. Wes Sykes, and Debborah Wallace.
The brainstorming session gave us a lot of
You’re probably thinking we offered them a insight into why the course was not initially Thank you all for your time and your
chance to meet Angelina Jolie or Brad Pitt. as successful as we like. We are considering feedback. With your help, we can make
Maybe we offered a sizeable cash bonus for ways to modify the course that would be the Financial Planning Process™ course
those who came. Why else would so many more appealing to advisors. Options we are a success!
IARFC Member Services: Amy@IARFC.org or call 800 532 9060 x34
The Register | July 2009 Page 7
Tele-Sales… Can It Work For You?
an override on their business if that’s at final expense plans could be the
your business model. The established door-opener that you haven’t had
advisor who’s looking for a door-opener before. Most individuals haven’t looked
could easily devote a morning or at this insurance yet and the person over
afternoon to making calls. 65 knows that it’s part of the planning
they have to do.
2. Final expense isn’t a difficult product
to learn how to sell. Phillip Gallant • reate a Focus Group within your
C
has perfected the phone prospecting own office. Ask 15 of your best
process with a well-structured sales clients to come in for coffee and
presentation and gives ongoing training dessert one afternoon and ask them
and coaching to his captive advisors and if they’ve looked at this type of insurance
to other advisors who contract with his before. Gauge their response to
national organization to sell the final the subject of Final Expense.
expense product he represents. Talk about estate planning concepts
Advisors who work with this process and what decisions the family will
Whether we like it or not, change is here to can easily earn $40-60K per year. face immediately after their death.
stay in the financial services industry and we Many individuals work from home Listen carefully. For this Group, give
need to respond. The products improve selling just this product. them a To-Do Check-up List which
and get more complicated to sell and the would include updating the beneficiaries
old stand-by door-openers for prospecting 3. Final expense offers a marketing on their accounts (IRAs, annuities,
are changing too. opportunity to a those persons also that mutual funds, etc), completing a review
bought term insurance and never of their LTC plans. Their old LTC policies
I recently interviewed an old friend in invested the difference, or even worse, might need to be updated, or perhaps
the LTC market, Phillip Gallant, who lost it and now have a need for some now they’ll consider purchasing one!
has developed a new sales model for plain vanilla life insurance to pay for their Their Wills might need to be updated,
increasing sales in his financial practice. inevitable final expenses. and perhaps you need to call on their
It’s worth considering if you’re looking attorney to remind him or her that
for an additional product for your agents Phillip Gallant’s advisors typically sell you’re on top of planning needs for your
or staff to start selling. If you’re a sole 8-10 policies per week consistently over clients and you’d appreciate more
practitioner, it might be a product to add the phone. Could you make that work in referrals from them. It’s impressive!
to your sales arsenal. What’s a new your own office to generate more sales? With your Focus Group clients you’ll be
door-opener for more LTC and financial Maybe you’ve been looking for a new generating new appointments and
sales? Final Expense. system to help get more new prospects staying positioned as the Proactive
to walk through your doors. Even better, Advisor, the BEST of the BEST. What
76% of the people in America who the first sale to a new client might be client could ask for more?
are 65 or better in age have no plans completed over the phone by a new staff
for their burial expenses and haven’t member that you hire. • F inding new clients that need you.
thought about how to prepare for The client who buys a Final Expense
the costs that their family will have. Perhaps, most important, the sale of plan is the middle market person who
As advisors we’re seeing final expense financial expense coverage could this needs help. Start with a Final Expense
advertising in our mailboxes every week. lead to more sales in your office: Yes! sale and then inquire about their other
Rather than just deleting those messages, Here’s how: investments. You’ll probably uncover
let’s consider the market and how you old annuities that could be 1035’d
might be able to take advantage of both • T o find out more about final expense into a better product, you might find
the need for the product and getting in insurance and tele-sales prospecting, CDs earning a very low interest rate,
front of more prospects for the other sales first give Phillip Gallant of The Optimus there might be inherited accounts
you wants to make like LTC, mutual funds, Group a call and ask about his program: that the individual has just not done
annuities, etc. 518 688 9006. anything with… yet.
1. If you’re recruiting new advisors, • ext, look within your database and
N Opportunities abound in the final
teaching them how to sell final expense identify your clients who are 65 or expense market! Start by taking a step
plans to prospects over the phone might better in age. Yes, they’ve been your
be a great start. The new advisor can prospects for LTC sales, but maybe
earn an income easily, and you can get calling them and asking if they’ve looked CONTINUED ON PAGE 9
Page 8 The Register | July 2009CONTINUED FROM PAGE 8
TELE-SALES… CAN IT WORK FOR YOU?
back and look at what you can do to
The Suite
generate new business for your practice
with a product that’s easy to sell and
Software, Training and Support for Financial Advisors
needed by millions. Would 8-10 new
final expense policies sold every week by a
new agent in your office make a big Make Your Sales Soar!
difference to the revenues in your practice?
And, if you can access a system that’s
already working, by hiring a new advisor to
20%
do tele-sales for you, you might be able to IARFC Member
open up 10 new clients a month for even Discount
bigger sales than the final expense plan they INRA Reviewed
F
bought as you opened their door. It’s worth Develop high quality, colorful, comprehensive financial plans
some consideration. Create unlimited “what-if scenarios“ — including Monte Carlo simulations
Present product solutions powerfully, swiftly and dramatically
If you’re a sole practitioner, 2 new final Easily justify a substantial planning fee plus product sales!
expense plans sold to new clients every
week can generate 3 BIGGER sales to those “Plan Builder is intuitive and easy to use. I love the traffic light checker
same new clients after that final expense that let’s me know if I’ve forgotten some important detail. Plan Builder
plan is issued. A Bonanza! lets me create a concise, client-friendly proposal using great graphs to
quickly illustrate problems and solutions. I have doubled my planning
To learn more about the Final Expense fees and doubled my life and annuity sales.“ — Dave Williams, IL
Tele-sales, contact Phillip Gallant at The
Optimus Group, 518 688 9006.
ommunicate more but with less effort
C
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P
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The Register | July 2009 Page 9Efficient Technology
Document Information Sharing
There is a new world of technology Several companies offer a lockbox service.
emerging to support financial advisors in In most cases, it is either tied to a client
light of increased demand for additional, relationship management program or tied to the password management service. This
value-added services to clients. a website service. In some cases, the tool allows you and/or your clients to
Competition, a word not often discussed in offering is quite simple, in others way too securely store and access business and
the financial profession, has driven the complex. The major players in this space personal passwords and numbers. Clients
desire to deliver more to clients at a lesser are Junxure ClientViewTM live, Advisor have the ability to store credit card numbers,
cost. Perhaps, even more important, to be Products Client Portal, and other firms that Social Security card information and
able to deliver services to clients with a have incorporated the lockbox feature into passports as well. Clients can choose to
minimum of complexity and a high degree their software, such as eMoney Advisor. share/not share this information with the
of usability. A tall order, some would say. There is one company, however, that advisor. In today’s world of password
However, there are examples of such things operates on a platform independent basis, protected websites, this is a unique feature
already existing. that offers a sensible balance of features that adds a distinctive, understated value to
along with a simple, easy to understand and your offerings to clients.
One such example is the ‘client lockbox’. As use interface, the Family Office Network®,
a concept, it is fairly simple. It is, in essence, www.familyofficenetwork.com. The Family Office Network permits the
a password protected, encrypted and secure advisor to co-brand the site showing your
location where the financial advisor can The concept of the Family Office Network logo and linking into your existing website.
upload and store documents and other (FON) is simple, provide web-based (no need to change providers) It also
information of relevance to a client. Items document and information sharing that permits you to import and export data, such
such as wills, trusts, powers of attorney and can be fully utilized by both the advisor as client lists from Outlook or other CRMs.
advanced medical directives form some of and the client. FON can do all of the
the legal type of documents that might be functions of the more expensive services Best of all is the mobility aspect of this
stored in such a place. Copies of business such as file management. Sharing software. It is fully available through the
and employment agreements, executive documents such as quarterly reports, internet, which means you and/or your
compensation plans, passports, visas and financial statements, tax returns, wills, clients can access it from anywhere in the
other travel-related papers could also be trusts and other types of contracts is a world. Some advisors may choose to load
stored there. snap. As access is 24/7, anyone can use presentation materials, slideshows,
the service on their own schedule. important documents and other papers to
The value of such accessibility cannot be show/deliver to a client at a remote
understated. There is the potential scenario For the advisor, you can batch upload location. With the SEC and FINRA having
where a client might be traveling overseas numerous files, share with other ruled on the acceptability of electronic
and lose their passport and/or visa. If this professionals and customize file folders to signatures (some broker/dealers still do not
has ever happened to you, you are no doubt match the way your filing system works. accept this, check with yours), you could
aware of how difficult and lengthy the The advisor has full control over who can conceivably deliver a presentation and all
process is to get it replaced at the US access what with the knowledge that FON applications, documents and deliverables
Embassy if you do not have a copy available. uses state of the art security and data electronically. You could even have the
In the old days, travel agencies cautioned protection methods. client sign the documents electronically with
travelers to pack the copies in the luggage. the use of a touch sensitive screen (Tablet
But, if it is the luggage that is lost, what does This security extends to communications with PC or other), press a button and their
the client do? In the case of the lockbox, it is clients. The advisor can use the system to copies are emailed to them automatically.
simply a matter of visiting an internet cafe, request and remind clients to complete tasks, (again, depending on Broker/Dealer rules
downloading the appropriate document and send clients encrypted e-mail for secure and State and/or Federal regulations)
then printing it for delivery to the Embassy. messages (yes, your regular e-mail is
That could save days of pain and probably not secure), and FON complies with On a cheaper and probably less secure level,
aggravation. Generally, with a copy, you can SEC and FINRA’s e-mail retention regulations. there is Google Docs www.docs.google.com.
get your passport replaced within 48 hours. Currently, it is a free online word processor,
FON has account aggregation built into spreadsheet and document sharing portal.
But, there are many more ways for clients the system. The system, provided by The concept of Google Docs is simple, you
to benefit from a “client lockbox“. Many Advisor Exchange, provides balances, can either create a basic document or upload
financial advisors routinely upload quarterly positions and transactions updated one from your computer and then set sharing
investment statements to such lockboxes. daily. You can also utilize fully automated levels for either your clients or other
And, some of the lockbox services offer nightly exports. professionals to view and edit. While far from
the ability to auto-generate an e-mail
alerting the client there is something new One favorite feature of this software,
in the lockbox. missing from most all other offerings, is CONTINUED ON PAGE 11
Page 10 The Register | July 2009CONTINUED FROM PAGE 10
EFFICIENT TECHNOLOGY
the sophisticated and secure environments of
such services as the Family Office Network,
o w To S e l l M o re
Google Docs can act as an online document
H th!
M o n
storage and retrieval, making access to select
documents and information that much easier.
You are able to save and export copies in a
Annui t i e s E v e r y
variety of formats including DOC, XLS, CSV,
k le tp r ospectin g.com
ODS, ODT, PDF, RTF and HTML formats.
Additionally, you can organize your w w w.b o o
documents using unique folder names that
could match what you already are doing on
your local computer. You control who can
see your documents, the whole world, a few
people or no one. It is up to you. You can
also un-publish at any time. For the smaller
firm on a tight budget, this might be one way
to create a document sharing environment
with trusted colleagues, professionals and/or
select clients.
The advantage of using such sharing
environments as the Family Office Network
and, to a lesser extent, Google Docs is no
more lugging around 50 pounds or more of
client files, applications, prospectuses, etc.
You may even save a few trees along the
way. Oh, and maybe this state-of-the-art
approach will prove to be impressive with
your referral-generating clients.
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The Register | July 2009 Page 11Cato Comments — About Your Image…
Afraid, Evasive or Scared!
Has your secretary been instructed to Why are they afraid to give a caller
carefully screen all the incoming calls you their address? Would you do business
receive? When your staff answers your with a planner or agent who refused to
phone are they very cautious and guarded? reveal his or her address? Not only does
Has the person who first “talks“ to people the person on the other end-of-the-line
who call your office been instructed to refuse to divulge the address, but that person
“not be very responsive“ unless the caller is also will not tell me if the person I am calling
well known? is an insurance agent, or a financial planner,
what services they offer, or the number of
If this is SOP (standard operating procedure) people working there. They volunteer
at your place of business, then I ask you nothing and reveal nothing. They appear
the following question. Do you do this to be very suspect.
because you are busy and important or
because you are hiding from collection I’ve learned that these people are not worth
agencies, process servers, investigators dealing with as they are always a waste of
or unhappy clients? time. Rather than give me the most basic of
information, or allowing me to speak with the
The impression this type of phone reception person who first called me, they ask me for
gives is that you are hiding, scared, and seek recommendations from people I work for.
to avoid un-expected callers. do this on a day-to-day basis not allow others
Of course, this behavior is rude and places to do this with them?
Right now you can call Henry Kissinger’s me on the defensive. I promise every client
office, or the office of any responsible that I will remain a low-profile background Obviously the people who act as I have
professional. A polite, intelligent and friendly member of their team. My work for him or described above are indeed the industry
person will answer your call and appropriately her is confidential. This is written into my losers they appear to be. I cannot understand
screen your call without acting like she is engagement agreement. To use my clients how they stay in business or why anyone
protecting Mister Kissinger from a potential as a reference I must first obtain their would trust them or do business with such
maniac. The person answering the phone permission. This requires still more time. ignorant types.
will be of assistance and not act like a guard
in a blocking position. So, I tell the person on the phone that my Actions for You
website has over thirty current references,
How is Your Phone Answered? but this is rarely sufficient. Those more than You are listed on the IARFC website.
thirty people can easily be contacted. Update your profile and be sure you have
Routinely I get calls from people who do an appropriate photo. Then you and your
not even introduce themselves. Often they When I ask the caller for references in return I staff can offer that as a place for callers to
just say “Send me stuff on what you do.“ am always promised their references. “Sure. learn more about you.
But usually they are not intelligent enough Of course! No problem. How many would
to say, “Please send me information about you like?“ But I have never received one You probably have a website. If not,
your services.“ Then they leave their single reference from a single one of the go to IARFCwebsites.com and check out
phone number. No address. I then search people who require references from me. the powerful website you can get on a
for them under memberships at IARFC, discount basis. Edit the credentials and firm
NAIFA, FPA, etc., but this takes lots of time. When You Appear identification portions carefully. This is a
Usually they are not listed as they have no Suspicious — You Are! great opportunity to brag on yourself without
significant designations. seeming too egotistical.
On occasion, these people who do not
So I call the number and ask for their mailing give-out their address over the phone also Develop a one-page Advisor Profile. If you
address. I have learned that most agents have websites that may include their address. don’t have one, I’d be happy to send you
and planners who call in such a clumsily These websites are always canned sites one, or contact: editor@IARFC.org
manner are barely scraping by and where they fill-in the copy with vague and
cannot afford anything from anyone. guarded content, like, “I’ve been in business Prepare a small brochure on you and or your
They do not invest in themselves. a number of years.“ and “We specialize in firm. This does not need to be a big
serving the area.“ Note that both of those undertaking, just write it carefully and have at
So to avoid wasting more time I ask the two claims are meaningless. least two photos, one of you in a traditional
person who answers their phone (often their pose, and the other in a more relaxed,
wife or a teenager) for the caller’s address so One reason for routinely not accepting calls, planning mode, in your office.
I can send a written explanation of my or not giving-out addresses over the phone,
services. But the person who answers the may be to avoid a proposal from a
phone often refuses to give me the address. salesperson. Why would sales people who CONTINUED ON PAGE 13
Page 12 The Register | July 2009CONTINUED FROM PAGE 12 CATO COMMENTS
Coach your phone answering staff to always
be friendly and assume that all callers will
want to invest with you. Because that might
be why they really are calling!
®
Forrest Wallace Cato, RFMA, RFC®
Business made easy.
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The Register | July 2009 Page 13Listening Eyes
When it comes to discussing how the • Focus 100% on the person speaking
concept of listening eyes enters into our
profession, perhaps it is best to look at the • hen your mind wanders, make eye
W
two words separately first. We’ll start with contact with the speaker
listening and how this skill can best be
utilized by the financial advisor. As with any • T ake notes and write down what you
new skill, there are certain things we can do hear word for word
to ensure that we are gaining ground.
Listening is a skill that is far too often • uiet your body and your mind and
Q
overlooked in our busy business keep them both from speaking
environment. Real listening is an active
process that has three basic steps • Delay judging what you hear
associated with it including hearing,
understanding and discerning. • erify that you understand what has
V
been said
Hearing is simply the act of listening enough
to catch what is being said by the speaker. Do you still have your listening eyes
This is far too often the most common thing on? Good. Let’s talk now about the
How many times, as children, were we that we as advisors do during the visual part of listening; the part that is all
told to “put on our listening eyes“? information gathering process. We are alert too often overlooked by even the most
What, you never heard that phrase in enough to know when the person has experienced advisor. When it comes to
school? That’s unfortunate, because it stopped talking so that we can move on to listening, we rely too much on our ears
is something that now, as adults and the next question on the fact-finder, but we and not enough on our eyes. The whole
especially as financial advisors, we need don’t really listen. idea behind listening eyes is to share equal
to understand and commit to memory. time between the two senses and allow
The students of the Financial Planning Understanding is what occurs when we take both to work for you.
Process™ (FPP) course learn quite well what we have heard and comprehend it in
what it means to use their listening eyes our own way. We are able to process the When we are meeting with a client, it is
and how this will make them more information, analyze, and repackage it in our vitally important that we remain cognizant of
successful in their careers. own words. This is where the idea of the non-verbal clues being provided. It is
reflection and paraphrasing come into the these clues that will help you differentiate
When it comes to the financial planning picture. It becomes important that during between what is being said and what is
process, the step that most clearly takes the information gathering stage you make it really meant. It also aids you in determining
advantage of the listening eyes concept is clear to the client that you are both awake how a couple might actually feel about the
the gathering information or fact-finding and interested. topic you are discussing at the moment.
stage. It is here that it is most important Are they fidgeting while they listen to you
we learn and utilize the skills taught in During the FPP course, time is spent on talk? Is one spouse nudging the other
the FPP course. It is in this step that a the idea of note taking and the importance spouse? How are they physically seated
planning engagement can be made of providing the client with a copy of the during the meeting? Are they sitting back
successful or a waste of both time and notes. This allows all parties to be sure or leaning forward? These are all things
energy. Which outcome would you that what was said is the same as what to be considered as part of using your
rather see occur? was heard. This is the final step in the listening eyes.
listening process which is discerning.
Despite what we have all been taught, You as an advisor take on the role of a During the Financial Planning Process™
the ultimate goal of any good fact-finding judge. After you are sure you understand course, time is spent discussing the ins
session should not be the gathering of what the speaker has said, think about and outs of proper physical set-ups
facts. It should instead be the cementing whether it makes sense. Do you believe for both offices and meeting rooms.
of a relationship between the client what you’ve heard? Is there something It is by the use these techniques that
and the advisor. This is the time in the missing or something that appears to be full disclosure can be achieved. You will
financial planning process that you, as the out of place during the conversation? learn more about a couple by watching
soon to be “most trusted advisor“, can These are all decisions that you as the them during the data gathering stage than
show the client just how worthwhile it listener need to make. you will by just listening to the words
is to have someone of your expertise coming from their mouths. As the old
working for them. This is where the client When it comes to listening, there are some
goes from a customer to a full-fledged things we can all do to make ourselves
partner in the planning process. better at this skill. These include: CONTINUED ON PAGE 15
Page 14 The Register | July 2009You can also read
