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Serving Financial Advisors Worldwide
the
Vol. 8 No. 5 • May 2007 Official IARFC Publication www.IARFC.org
Foreclosure Scams and ShortSales Increase ... 10
The Archive Options: IARFC Member Benefit — New Practice Tools ... 14
How Small Firms Can Make a Large Local Splash ... 23
IARFC 2007 Alaska Cruise ConferenceVancouver to Alaska August 17-24, 2007
Get Your CE at Sea and Network with Leaders of the Profession
Begin in Vancouver, British Columbia and cruise the calm and scenic Inside Passage, stoppingin Ketchikan, Juneau, historic Skagway, and Alaska’s wilderness port Icy Strait Point, HubbardGlacier and on to Seward. View the majestic peaks and thousands of untouched wooded islands.Short wildlife trips get you close to whales, moose, harbor seals, bald eagles and mountaingoats. Watch bears fishing for salmon. You’ll be awestruck as you sail alongside the constantlycalving Hubbard Glacier. Enjoy a local salmon bake and embark at Seward for transfer toAnchorage and optional tours.
800 532 9060 www.IARFC.org
The Register • May 2007 Page 1
The Register is published monthly by the International Association of Registered FinancialConsultants ©2007, 2507 North Verity Parkway, Middletown, Ohio 45042-0506. It includesarticles and advice on technical subjects, economic events, regulatory actions and practicemanagement. The IARFC makes no claim as to accuracy and does not guarantee or endorse anyproduct or service that is advertised or featured. Articles, comments and letters are welcomed bye-mail to: Wendy M. Kennedy, Editorial Coordinator, [email protected] ISSN 1556-4045 Periodicals Postage Paid at Mansfield, Ohio.POSTMASTER: Send address changes to, P.O. Box 42506, Middletown, Ohio 45042-0506
Financial Planning Building2507 North Verity Parkway
P.O. Box 42506Middletown, OH 45042-0506
800 532 9060 • Fax 513 424 5752www.IARFC.org
BOARD OF DIRECTORS
Edwin P. Morrow, Chairman & CEOCLU, ChFC, CFP®, CEP, RFC®
Judith Fisette-Losz, Executive [email protected]
Lester W. AndersonMBA, RFC®
H. Stephen Bailey, PresidentLUTCF, CEBA, CEP, CSA, RFC®
Jeffrey ChiewDBA, CLU, ChFC, CFP®, RFC®
Vernon D. GwynneCFP®, RFC®
Derek D. KlockMBA, RFC®
Edward J. LedfordCLU, RFC®
Constance O. LuttrellRFC®
Ruth LyttonMS, Ph.D., RFC®
James McCarty, SecretaryCLU, RHU, LUTCF, RFC®
Burnett Marus, TreasurerRFC®
Rosilyn H. OvertonMS, CFP®, RFC®
Ruben RuizChFC, CLU, MSFS, CSA, RFC®
Michael ZmistowskiRFC®
in this issue3 Providing Guidance to Would-be Millionaires
Ruben Ruiz — Advisor, Manager, Author
6 From the Chairman’s Desk
7 Jack Walsh to Receive the Loren Dunton AwardMember News
9 Stop Sending LTC Quotes to Your Clients!by Wilma G. Anderson
10 Consumer FocusForeclosure Scams and Short Sales Increaseby Paul Richard
11 Compliance-Friendly Marketing!Golden Haloby Katherine Vessenes
13 Increasing Your Referrals Without Ever Asking!by Maribeth Kuzmeski
14 The Archive OptionsIARFC Member Benefit — New Practice Toolsby Ed Morrow
18 Successful Habits Depend on Detailsby Connie Luttrell
19 Business Mirrors LifeConsultants Get Hired To Do All the Dirty Workby Hesh Reinfeld
20 Cato Comments - About Your ImageEvery RFC Needs a Press Kit!by Forrest Wallace Cato
21 Quick Tips to Ensure Better Phone CallsProvided by SunGraphics, Inc.
22 IARFC Member In the NewsMorris G. Sahr, RFC® — Makes Who’s Who
22 Study RightFrom Kinder Brothers International
23 How Small Firms Can Make a Large Local Splashby Lisbeth Wiley Chapman
24 You Can Prevail Against Legal AttacksHow to Protect Yourself from Litigious Clientsby Forrest Wallace Cato
28 Are You On the Map?Make Sure You Are on Google Mapsby Sylvia Todor
INTERNATIONALIARFC COORDINATORS
Jeffrey Chiew, DBA, CLU, ChFC, CFP®, RFC®
Asia [email protected]
Liang Tien Lung, RFC®
China Development Organization (IMM)(Taiwan, China, Hong Kong & Macao)
Ralph Liew, RFC®
Philippines [email protected]
Tony BalmoriExecutive Assistant
Jerry Tan, LLIF, CIAM, CMFA, RFC®
Singapore [email protected]
Choo Siak Leong, RFC®
China Chair, [email protected]
Samuel W. K. Yung, MHCFP®, MFP, FChFP, CMFA, CIAM, RFC®
Hong Kong and Macao [email protected]
Teresa SoPhD, MFP, FChFP, CMFA, CIAM, RFC®
Advisor, Hong Kong and [email protected]
Allan Wan, RFC®
Ng Jyi Vei, ChFC, CFP®, RFC®
Malaysia [email protected]
Aidil Akbar Madjid, MBA, RFC®
Indonesia [email protected] Soemarto, MA, RFC®
Richard Wu, RFC®
Taiwan [email protected]
Nora [email protected]
Preecha Swasdpeera, MPA, MM, RFC®
Thailand [email protected]
Demetre Katsabekis, MBA, PhD, RFC®
Greece [email protected]
Ingram Jeffrey Eshun, PhD, RFC®
Canada [email protected]
George Flack, CFP®, FPNA, AFAIM, RFC®
Australia and New [email protected]
Page 2 The Register • May 2007
Register LettersWe welcome your thoughts and ideas.Please direct correspondence to:[email protected]
Last month’s Cato Comments feature on“How to Make Your Articles Work Harder”was one of the most useful guides forfinancial professionals that I have everread. This alone is worth more than theprice of IARFC membership. I hope allyour future article writers use it. Thankyou for this.
Albert J. K. Perkins, RFC®
Kaneohe, Hawaii
As a participant in the RFC Course Part 1 — Client Engagement, I think Ibrought a unique perspective. I work withfinancial planners as a professional writer;but I am not a practitioner. I found thecourse presented the basic marketingtools needed by a financial advisor in aconcise manner. I realize time waslimited; however, having the participantsrole play an initial meeting with a prospectwould have been helpful.
The keys to engaging a client often hingeon one’s soft skills. Do you listen well? Do you maintain eye contact? Do youcome across as empathetic? We all think we have these traits. However,having a chance to be critiqued by one’speers would have been helpful.
Hesh Reinfeld
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IARFC Staff Directory
Judith Fisette-Losz, Executive [email protected]
Wendy M. Kennedy, Editorial [email protected]
Stephanie Langster, Admin. [email protected]
James Lifter, Educational [email protected]
Nida Thompson, Shipping [email protected]
We recently interviewed IARFC Director,Ruben Ruiz — author of a unique newbook — The One Hour HispanicMillionaire. Ruben is a financial advisor,manager, recruiter and now an author.While he serves a very diverse market, hisniche of serving fellow Hispanics isproving quite transferable.
How, when and where did you first enterfinancial services?
Ruben: My first opportunity to enterfinancial services came while I waswaiting to become a permanent Federal IRS Employee in Tax Examination.I had already passed the Civil ServiceExam and had been working as aseasonal IRS employee. In that onemonth period, before being accepted as apermanent IRS employee, I answered anad about marketing products to collegeseniors and graduate students. Since Ijust graduated from Southwest TexasState University in my hometown of San Marcos, I answered the ad and wentin for the interview.
I was sold almost immediately on the opportunity. It’s a little funny in that the company I started with, Fidelity Union Life of Dallas (and severalother successor companies) had beentrying to see me, as a college senior, tooffer me the same products for sale. Iprobably set up three or fourappointments to meet with a sales rep,but like many other college seniors, didnot keep the appointment.
What was your educational background,before and subsequent to entering the profession?
I grew up in San Marcos, Texas (betweenAustin and San Antonio) and we wereaccustomed to having a college,Southwest Texas State University (nowTexas State University) in our backyard.Every week my father stressed that I wasgoing to attend the local university. Myfather was in business and ever sincejunior high, my goal was to be a businessmajor, and naturally I received mybachelor’s degree in Marketing.
I became a member of the then AustinLife Underwriters Association immediatelyand started the process of becoming aCLU. I passed about half the courses,before I was sidetracked into otherbusiness ventures.
After a few years I decided that thefinancial services industry was for me, anddove back in with a much deeper positiveattitude. I completed my CLU designationand then the ChFC designation with theAmerican College. It was about this timethat I saw the coming financial planningmovement, and I started to research theindustry. After about two years, I foundMoney Concepts International, andinvested in a franchise in financial services,and started to build a business. After a fewyears in the financial services industry, Iwent after the RFC designation and theCSA designation. Then, it was back to theAmerican College to receive the Masters ofScience in Financial Services (MSFS)diploma. I am currently researchingseveral other special designations. Younever stop learning this business.
What jobs did you hold prior to this?
Prior to entering the financial servicesindustry I had worked in construction, as abusboy and waiter, picking cotton, at apool hall, and multi-level sales. There wasa period in which I left the industry andworked in a convenience store, liquorstore, funeral home, and selling AccountsReceivable systems. I also sold Property& Casualty Insurance for many years.
What were your early job duties and howdid you like or dislike them?
When I was selling life insurance tocollege seniors & graduate students, whatI disliked the most was the cold calling onMonday nights. Years later I realized thatit was really a great system, because wehad a list of seniors and graduatestudents (a good niche), and all we had todo was follow the phone script to answerobjections and it really worked. Since themajority of students were from out oftown, I felt that I wanted more clients frommy hometown of San Marcos, plus I likedthe idea of selling P&C insurance,because it was required.
Were you successful at first? What influenced you the most?
I don’t think my early years were verysuccessful. I usually ended up makingjust enough money to pay my bills andloans, and never would save any money.As I look back on what I did, I probablyshould not have stayed in the industry, butthere was always the challenge and goalof unlimited income, so I stayed.
What were your major obstacles?
Major obstacles, there were many. Someof which I did not even think that I couldget over or find a solution, because I didnot know enough. I know I had low self-esteem for a long time, and didn’t evenknow what it was. Call reluctance was thenumber one obstacle because of my lowself-esteem. I did know how to set goals,but I was to scared and reluctant to setthem. I never did a business plan, until Ijoined Money Concepts and they said itwas required, which today I am so verythankful for. Now I stress this with all myassociates and it continues to be veryeffective.
Tell us about your current practice or position:
Today I have a financial planning practicewith Money Concepts Wealth Managementand Financial Planning and The RuizFinancial Group, LLC, and have beenpracticing for over 22 years. My businessconsists of Baby Boomers, BusinessOwners and Seniors. We continue to buildour practice primarily in San Marcos,Austin, San Antonio, and South Texas. As Ideveloped my business plan throughoutthe years the financial planning industrystarted to expand and mature. When I
Providing Guidance to Would-be MillionairesRuben Ruiz — Advisor, Manager, Author
continued on page 4The Register • May 2007 Page 3
Ruben Ruiz, CLU, ChFC, MSFS, RFC®
at his Alma Mater, Texas State University
continued from page 3 Providing Guidance
looked back on those years those at MoneyConcepts were really writing the book onthe young financial planning industry.
Later, I was given the opportunity tobecome a Regional Director for MoneyConcepts International for Texas, and Istarted a new business plan on recruitingprofessionals from the insurance,investments, banking, tax, and educationindustries to become CEO’s of their ownwealth management and financialplanning business. Today, it’s aboutfinancial planning and wealthmanagement education and training forclients and associates.
What is unique about the way youmarket for new clients?
There is a big difference in running your practice as a CEO of a business, or as a financial professional. While bothwill market to get new clients, the CEOthinks differently than the financialprofessional. Both will get new clients byprospecting and marketing, but the CEOwill use systems to make the business aturn-key business.
This was one of the main reasons thatattracted me to the Money ConceptsFranchise Business System. It offered aturn-key system and I was the CEO. Thereare many ways a CEO can market for newclients; Seminar Marketing, ReferralMarketing, Joint Ventures with otherProfessionals, Recruiting, and DripMarketing. The CEO uses all or most inrunning their successful business.
What are you enjoying most about this position?
As a CEO of my Wealth Management &Financial Planning Business, theopportunities to do new business andunlimited amount of business each weekis so exciting. Every week I learn that nomatter who the individual prospect is,whether they have a high school diplomaor a Ph.D., they need our help, our advice,our coaching, our mentorship, and ourfriendship for the development of theirfinancial and wealth goals.
What are your major frustrations?
Frustrations, that there is only one of me. Irun out of time every week and wish Icould do more. There is always somethingto do in our industry, you never run out ofconcepts, strategies, recommendations,marketing campaigns, planning events,and so on. It’s a great business.
What attracted you initially to the IARFC?
I found out about IARFC through EdMorrow. We had been a client of the TextLibrary System, now know as PracticeBuilder, and had visited with Ed severaltimes, and finally realized that I had readmany articles in several financialpublications that Ed was the author. So Ialready respected Ed, and when he invitedme to join IARFC, I joined immediately. Butas I started to explore the benefits and theresources of the IARFC, I found that it wasexactly the organization I had been lookingfor, an organization for CEO’s of theirfinancial services business.
What feature or benefit of the IARFChas been of greatest value to you?
I can think of two great benefits rightaway, the monthly Register magazine isalways full of great personal stories andarticles on increasing the success ofyour practice. The other one isnetworking with the members atevents, especially the Financial AdvisorsForum. I attend a lot of meetings andconferences, and I really enjoy theForum because the agenda is sodiverse and there are many topics onour business. I mean you can hearfrom speakers that have been in thebusiness for 50 years, and you can also hear from speakers about the latest technology to support our business success.
What would you personally like to see for the association in the next five years?
To be the largest financial servicesorganization in the USA and the world.Now, you may ask ‘What about the otherorganizations that have more members?”Here is my belief, many organizations arebased on certain type of product sales, orcertain types of designations. I believethe IARFC is focused on the individualprofessional making their businesssuccessful, by providing the right type oftools and education. All professionalswant to become successful both in termsof income and services to their clients. Asmore professionals know what the IARFCis about, they will join, and some will alsostay members of their other organizations.
What do you think will be the majortrends in the financial services field inthe next five years — and how shouldRegistered Financial Consultants bepositioning themselves?
Ruiz knows it’s a bull market
Daniel Cavazos, Ruben Ruiz, Mario Monteiro, and Terry ThillMoney Concepts International
Financial Planning Congress — Cancun 2006
continued on page 5Page 4 The Register • May 2007
There will be more money in motion, moremoney available, and more help needed,in the trillion dollar financial servicesindustry. The Baby Boomer Generation(which I am one), and the SeniorsGeneration will have more moneyavailable in our industry over the next 25 years, than the previous 200 years ofAmerican History.
Where will the economy be moving in thenext 3-5 years, and what should financialadvisors be doing NOW about it?
Many Americans believe that the USA is the greatest country in the world,and that America will continue to grow very positively each year. FinancialAdvisors will just need to continue toprovide consulting, mentorship,friendship, and answers to their clientsquestions concerning their money andgoals, that’s it.
What will be the impact of technologyon the practices of financial advisors?
Technology is what helps to make CEO’smore successful. Not keeping up with
continued from page 4 Providing Guidance
technology makes you just anotherfinancial salesperson. It will help yourbusiness do things quicker, which will inturn make you more profit per hour.
What would you advise a RFC toconcentrate on to have the greatestimpact on the next three years?
First, action planning. Weekly, youshould set aside 1-3 hours every week toplan your week, month, quarter, and year.I believe all financial advisors know whatplanning means, but the majority of themdon’t plan.
Second, speed up your income and networth goals. I think we have all beentaught or we have received advice fromour accountants that building a businessand a net profit takes time. In fact youare suppose to not make a profit for a fewyears! You can make a profit in your firstyear, and a bigger profit in future years.Our industry is made up of commissionsand fee based income, and a lot of theincome can be passive. Make sure yourepresent companies that you docommission and fee type business. Buildyour business and marketing plan to do alot of action marketing.
Third, knowledge & training. You neverstop learning this business or you will beleft behind or be an uneducatedprofessional. Go after other designations,increase your education and training inboth marketing your business and thetechnical parts of your business. Makeconferences and forums fun, you get outof the office to refresh your mind, and youlearn a lot.
Do you see any problems looming on thehorizon for our profession?
No, I don’t think that there or any moreproblems than any other industry orbusiness. While there is more and more
Ruben Ruiz with wife Amanda
Ruben’s 12 Action Steps for Financial Success1. Do you believe that you can achieve a Million Dollar or more Net Worth and a large
monthly income? If you have doubts or maybe your self-esteem is not where youwant it to be, then your action step is to read and listen to as many Books, CD’s,DVD’s on motivation, self-esteem, goal setting and leadership.
2. Set your weekly ‘Planning’ session with yourself for 1-4 hours, to plan your day, week,month, quarter, and year. You have to set this as an appointment on your calendarfor the next 52 weeks. The ‘P’ word is understood by all and implemented by few.
3. What does your Cash Flow or Income Statement look like today, this year? Have youprojected your income for the year? How About the next 5 years? 10 years? Youhave to draw up your future income stream on what your financial income goals are,and then reverse it back to the present.
4. Do the same with your Net Worth or Balance Sheet Statement. What do you wantyour Net Worth to look like in 20 years? In 10 years? Then you reverse back eachyear to your present net worth. And then every year you do new projections.
5. Have some of your personal Net Worth in all of the four major opportunities in theUSA. Real Estate, Business Equity, the Market, and Qualified Retirement Plans.Learn how to implement this step and then teach it to your clients.
6. It is the easiest to do, yet is the one that usually does not get done. Maximize yourPension or Retirement Plan, whether it be a IRA, SEP, Profit-Sharing Plan or 401K.
7. Write out your Business & Marketing Plan every year. You have to write outeverything that you and your business will do for the coming years. We are nottaught to do business plans, so you will have to learn yourself.
8. For success in your business have a Contact Marketing Data Base System to get appointments, referrals, leads, and keep in contact with your clients for futurenew business.
9. Unless you have all the clients and referrals you want, Seminar Marketing will turnSuspects and Prospects into Qualified Prospects for new business.
10. Hire a Personal Assistant (PA). Most advisors say they will hire one when they getmore sales, which may not happen. You have to take the Leap of Faith and hire anassistant to do many of the non-paying parts of your profession. This will give youmore time to be in front of qualified prospects.
11. Set up a Infopreneur system that will help you create Articles, Reports, Books, CD’s,to market your business and maybe make you ‘Famous.’
12. Create your own ‘Master Mind’ Advisory Team for success. You will probably need aTax-Professional, Attorney, Banker, Realtor, Insurance Agent, Technology Consultant,Business Consultant, and Financial Advisor. Once you have your team helping youbuild success you can do the same for your clients, and you become part of their‘Master Mind’ Advisory Team.
compliance for us, it is part of ourbusiness. Deal with it, and move on.There are really no limitations to buildingour business.
What one or two items did you do, or wishyou had done, early in your career thatyou would suggest for new entrants?
I would recommend the following: Choose another designation and start on the program. Second, learn how to do a business plan in your first month or year in business. If you have neverdone a business plan, do one ASAP, youcan get a lot of info online. There areseveral great business plan softwareprograms available in the market. Third, build a prospect list of at least1,000 and always have a 1,000 prospectsin your database.
What is the most important thing youhave done to create a reputation, image,or brand in your professional practice?
Over the past 20 years it was acquiringseveral designations, and recentlybecoming the author of my first book, TheOne Hour Hispanic Millionaire. It’s about30 chapters or steps on how anyone can(Hispanic or otherwise) build a MillionDollar net worth. Distributing, the book tolocal media and civic organizations hasprovided valuable publicity and that haslead to more clients. I’m sure I have notyet seen all the benefits yet of being abook author — but it has been a greatcredibility builder. ?
Contact: 512 396 [email protected]/rruiz
The Register • May 2007 Page 5
Domestic RFC Course. The second session, reflecting Parts 2 and 3 of the fivepart curriculum will be held next month, June 6-8. Classes will be held inMiddletown on Wednesday, Thursday and Friday. Most of those who attended Part1 were able to arrange their schedules to attend, and so we have only fourvacancies still remaining. The topics will be Part 2 – Gathering Information, andPart 3 – Problem Identification. To register for one of the remaining freevacancies, contact IARFC Education Director, Jim Lifter at 800 532 9060 [email protected].
New Archive Boxes. As a result of the conversations at the RFC Part 1 course, wehave organized the tools that you can use in making your initial presentation toprospects. Please see the article on page 14 and order form on page 17.
Marketing Plan. Do you have one? Is your plan under periodic reassessmentand activation? If not, you will be pleased to learn that we are developing the framework for each RFC to develop their own Marketing Plan. For example,you have been reading the excellent articles in the Register by Wally Cato About Your Image. Many of our association members are implementing hissuggestions to increase their local visibility. But without an overall plan,fragmented efforts will not have as much effectiveness as if you were addressing all the issues, on a priority basis. As we are developing this prototypefor you, we would welcome suggestions and we would especially appreciatereceiving one or two Marketing Plans that have been effective in advancing afinancial advisor’s practice.
Expansion Down Under. In February, under the leadership of George Flack, RFC®,and Ralph Liew, RFC®, we launched the organization of IARFC in Australia and NewZealand. Soon we will be offering continuing education events and RFC courses,focusing initially on educated financial advisors looking for practice managementand marketing, and eventually on the new entrants into the profession. InFebruary of 2008 George plans to hold a major Forum. Would you like to attend,and perhaps be a speaker or panelist?
RFC Classes in India. These were launched in March and the premier class of 32students enthusiastically participated in the discussions and group calculations.They are completing their comprehensive plans for submission, and there will be alarge one day RFC Forum and a second round of classes in July. While there wemet with a software development firm that has wide experience in convertingPowerPoint presentations to a Flash format which, will provide easiercustomization and protect their use from non-IARFC members.
RFC in Korea and Japan. We have discussions underway to organize the IARFC ineach country. Financial planning is well accepted in Japan, but is virtuallyunknown at this time in South Korea. I have been asked to address the MDRTExperience to be held in Chiba, Japan in February 2008, and this should move ourefforts further, just as did the session at MDRT Experience 2006 in Bangkok.
Financial Advisor magazine. You will soon be receiving a free copy and anopportunity to subscribe to his outstanding publication—at no cost. Also look formore information on the Financial Advisor Max program.
There is Barely Time! There is still time for you to register to attend the Forum inLas Vegas. We suggest you IMMEDIATELY call Judith at 800 532 9060.
Are you a Cruiser? If you want to Get Your CE at Sea, you can still join us on theCruise to Alaska which will be August 17-24. We still have some of the cabinsavailable, and you can take a tax write-off for your professional education.
You can E-mail Ed at: [email protected]
From theChairman’s Desk...
Page 6 The Register • May 2007
Calendar of Events
Financial Advisors ForumMay 15-17, Las Vegas, NV
RFC Course Part 2 & 3June 6-8, Middletown, OH
Trinidad RFC ForumMay 21, Trinidad Tobago
MDRT Annual MeetingJune 10-13, Denver, CO
RFC — Forum and GraduationJuly 12, Mumbai, India
RFC Course Part 4 & 5July 25-27, Middletown, OH
RFC Forum and GraduationAugust 3-4, Manila
International Dragon AwardsAugust 10-12, Xiamen, China
IARFC Cruise/Conference — AlaskaAugust 17-24 Cruising fromVancouver, BC to Anchorage, AK
RFC Forum — ThailandSeptember 11, Bangkok
RFC Forum and Graduation — MalaysiaSeptember 15-16, Kuala Lumpur
Financial Service ForumSeptember 27-29, Montreal, Canada
Financial Advisor Magazine ForumOctober 8-10, Chicago
MDRT Top of the TableOctober 17-20, Phoenix, AZ
RFC Forum — Dalian, ChinaOctober 26-28
MDRT Experience 2008April 11-13, 2008, Chiba, Japan
Worldwide Chinese Life Insurance Conf.June 4-7, 2008, Singapore
The Loren Dunton Memorial Award will bepresented to Jack Walsh at the FinancialAdvisors Forum, one of the year’ssignature professional gatherings. TheInternational Association of RegisteredFinancial Consultants presents this awardto recognize and honor those who havemade “significant and outstandingcontributions to the financial servicesprofession.” Loren Dunton was thefounder of financial planning in the U.S.
A true pioneer in financial planning, JohnP. Walsh, RFC®, the founder and chairmanof Money Concepts International, is one ofthe most significant contributors to theprofession. From the outset he has been a strong supporter of the financialplanning process as delivered byindependent advisors. You can find Jack in the new offices of Money Conceptsin Palm Beach Gardens, Florida, near thefamous PGA center.
“Born in Chicago in 1928, Jack was thefirst of five children for the Walsh
family…and was just in time to usher inthe Great Depression of 1929.”
Jack’s first selling job was as a salesengineer, right out of college, calling onexecutives of various automobilemanufacturers such as General Motors,Chrysler, Ford and their divisions. Thenhe shifted into the direct sales field,formed U.S. Marketing Corp. and built anorganization of more than 300salespeople. While at Franklin Life, Jackwas named General Agent of the Year.Joining American Banker’s Life asExecutive Vice President in 1969 andadvancing to the Presidency of thecompany in 1973.
Jack stayed at American Bankers until heresigned in January of 1979, and then hefounded Money Concepts, in Miami, Florida.In 1985 Jack moved Money ConceptsInternational to West Palm Beach, (PalmGardens), Florida, where it is today.
From the beginning, Money Concepts was a “turnkey financial planning center business opportunity” based onthe franchise model. Qualified individualswith basic training could be President oftheir own company; and after 60 to 90days of training be up and running. Themodel provided a full product portfolio, amarketing system, a proven businessplan, a seminar marketing system, andcomplete support from technology andadvisory personnel to help guide them.They would be in business for themselves,but not by themselves.”
The Money Concepts opportunity providestrue ownership. By contract, it’s yourbusiness, you own it, you run it, you canpass it on to your children, or sell it, it’s up
to you. You receive a proven businessplan, follow it and you will succeed as somany others have. The business includes a total product portfolio withprescreened products that have cleareddue diligence.
A Money Concepts Financial PlanningCentre is part of an International Financial Service organization dedicatedto entrepreneurship. The franchisebusiness model provides true freedom in financial services to those who wish to serve their clients professionallyand build their futures in an environmentthat knows no bounds. There are many regional directors and associatesthat have been with Jack and Money Concepts over twenty years and feel they are an extension of theMoney Concepts family.
Several years ago Jack was diagnosedwith Parkinson’s disease. Some peoplejust quit when they face something likeParkinson’s, others keep going. With hisfamily’s encouragement and support andthat of his associates, Jack chose tocontinue and keep going. Their goodwishes and constant encouragement hasadded years to Jack’s life. MoneyConcepts has always been a family. Manyof Money Concept’s most outstandingassociates grew up with the company.Jack’s oldest son Denis has taken on theleadership of the company. Denis hasproven to be a very talented man andJack is extremely proud of his progress.Jack has three daughters, Kara, Susie,and Terri and two more sons, Jim andLiam who also are active in the company.
Please join in saluting a great contributorto our profession.
Jack Walsh to Receive the Loren Dunton AwardAt the Financial Advisors Forum, Las Vegas
John P. Walsh, RFC®
The Register • May 2007 Page 7
Dunton Award Prestigious Recipients
Ben Baldwin2000
John Keeble2002
Vernon Gwynne2004
Jeffrey Chiew2005
Bill Carter2006
Donald Haas2001
Alex Armstrong2003
Liang Tien Lung2004
Ed Morrow2005
Samuel Yung2006
Financial Advisors Forum 2007, May 15-17, Bally’s Las Vegas
Thanks to our Exhibitors and Sponsors
Page 8 The Register • May 2007
Are you getting tired of sending outquotes for LTCI to your clients andprospects and never hearing from themagain? Or, worse yet, do you follow-upafter preparing the proposal and sendingit to your client….. and then they won’teven give you an appointment to talkabout a Plan? This method of‘marketing’ LTC plans will only give youconsistent headaches and build up yourfrustration about how to actually sell longterm care insurance.
It doesn’t make any difference howcommitted you are to selling LTCI to yourclients and prospects if you can’t be infront of them to make a salespresentation. Let’s face it. No one reallywants to think about needing long termcare services. Every client I’ve had overthe past 14 years doesn’t see a NEED forlong term care insurance before I visitthem. They might be curious. Theymight know of someone whose healthchanged instantly with a stroke or aheart attack or cancer, but they reallydon’t think it will ever happen to them.It’s up to us, as Agents and Advisors, totake a client or prospect through aspecific sales process to sell long termcare insurance to them.
The clients who are price shopping and only want a quote will call your office and think they can get an instantquote like a Medicare supplement, orhome insurance. Others will call youroffice because they don’t know whereelse to get a quote. It is critical toremember that if you send out a quote to a client for LTCI, all they will look at is the costs. And 99 out of 100times, the client or prospect will then
tell you later that they’rejust not interested.
Remember that the mostcritical component in theLTCI sale is creating theNEED for an LTCI plan inthe client’s mind. Youcan’t do that by sending aproposal through the mailor the fax machine. Evenbreaking down thepremium to a nominalmonthly fee won’t work.While we can always hopethat a client will wake upone day and exclaim“Today’s the day! I needto get long term careinsurance!”, the reality isthat it just won’t happen.You must be able to askquestions about theirfamily, what they plan todo in the future when their health changes,create NEED, and show them how to find the money to pay their premiums BEFORE you show your client or prospect thepremiums for a Plan.
Selling LTCI plans doesn’t have to giveyou more gray hair. But it does requirethat you approach your clients andprospects in a completely different waythan you have been doing in your annuityand life sales, or other investmentproducts. Once you learn how to sellLTCI, your clients will appreciate youforever and know that this special part ofplanning for their future was done withan Agent whom they trust and value.
Here’s what I would recommend to you:1. If a client or prospect calls you and wants to know what an LTCI plan would cost,
DO NOT give in and quote a premium over the phone. Instead, tell your client orprospect that you represent several different companies and that you can help themdesign a Plan that fits their budget very easily.
2. Tell your client or prospect that the premium rates are different for every company.
3. Tell them that the premiums are not like getting a Medicare supplement where there’sone flat price or one common benefit package.
4. Even if he client or prospect BEGS you to give them a ballpark quote, don’t do it.
5. Tell your client or prospect that you would like to meet with them for an easyappointment, find out about their health, and then you can show them 2 or 3 companyplans that might fit their needs.
Wilma Anderson, RFC®, is known as TheLTC Coach, one of America’s leading LTCIsales trainers and a practicing producerwho sells 400 LTC policies a year. Sheoffers personalized tele-coachingsessions, workshops, speeches andseveral sales tools to help Advisors learnhow to master the LTCI sale. Wilma is awidely published author and frequentspeaker at conferences and salesseminars, including this year’s Forum.
Contact: 720 344 [email protected]
Stop Sending LTC Quotes to Your Clients
Wilma G. Anderson, RFC®
The Register • May 2007 Page 9
Discouraging news about the housingindustry seems to be everywhere. Thenumber of buyers who are becomingdelinquent on their home mortgagesincreases daily. According to DataQuickInformation Systems, foreclosures in SanDiego County, for example, soared upwardfrom 212 in 2005 to over 1,600 in 2006.
Notices of default are growing in leapsand bounds too. They are the early stepsof foreclosure and, in San Diego County,they more than doubled from the previousyear zooming upward to 8,816 from 3,933in 2005. This is largely the result of aweaker housing market and thewidespread use of creative financing andinterest only loans.
According to a report fromForeclosureS.com, an online provider of comprehensive U.S. foreclosure data, the southwest led foreclosuresnationwide in 2006 with one out of every2.2 foreclosures happening within thestates of Arizona, Arkansas, California,Louisiana, Nevada, New Mexico, Texas,Oklahoma, Oregon, and Washington. Thereport also says California, Texas, andColorado were hit the hardest withCalifornia topping the nation with 157,417 foreclosure filings, a 94.3% percentincrease over prior year. Meanwhile,Colorado and Texas experienced 55.4%and 35.2% increases, respectively.
ForeclosureS.com says manufacturinglayoffs are partly to blame for the Midwestregion experiencing a 70-percent increasein foreclosure filings last year.ForeclosureS.com says the region, whichincludes Illinois, Indiana, Kansas, Iowa,Michigan, Minnesota, Missouri, Nebraska,North Dakota, Ohio, Oklahoma, SouthDakota, and Wisconsin, had 204,656foreclosure filings in 2006 compared to120,298 in 2005.
Part and parcel to the rise in foreclosuresis an equal rise in scams, aimed attroubled homeowners, looking for a fastexit to their financial difficulties.Consumers who suffer from these scamshave mortgages they no longer can affordand home prices that won’t bail them out.
Many of these foreclosure scams begin witha cold call on the telephone or your frontdoor. These crooks pass themselves off aseither a foreclosure specialist or some sortof debt elimination counselor; all promisingimmediate assistance so distressedconsumers can avoid foreclosure. First off,notices of default are a matter of publicrecord and therefore are printed in somenewspapers. They become a laundry list ofpotential victims for the scamsters.
A common approach is where the imposterpromises to negotiate with a homeowner’slender in exchange for a fee, often equal toone month’s mortgage payment. It is notuncommon for the thief to take the moneyand run. Another, more insidiousapproach is to talk desperate homeownersinto letting them take over their paymentsor, worse, signing over the title. Somecons tell homeowners the transfer will justbe for a year or two until the mortgage isbrought current. What happens next isthat the home is often sold, almostimmediately to an investor, the equity isstripped away in the deal and the formerhomeowner is evicted.
Another popular version is the mortgageelimination scheme. Sometimeshomeowners are duped into alteringpayment terms of their loans, while others have been told the bankingsystems are illegal and they do not haveto repay their loans.
Some readers may remember a companyfrom the 1990s known as Boston Harbor.They were big-time operators with aplausible pitch. When a loan balancebecomes larger than the current value ofthe property, homeowners were told todeed their property to Boston Harbor,which suspended mortgage paymentsand then hastily arranged for a quick saleof the property at a discount. Then theyseek to pay off the lender with an amountfar less than the original loan. The issuewith this approach is that homeownersare liable for debt-relief taxes. If amortgage balance of $500,000 iseventually reduced and paid off for say,$450,000, the owner has incurred debtrelief taxes of $50,000.
A number of homeowners are resorting to “short sales” in which a lender allowsthe home to be sold for less than theamount due. Short sales aren’t used that much when housing prices are high and rising and delinquencies are low. Short sales are now more appealing to lenders because they can be less costly than foreclosing, especiallyin a declining market.
For borrowers, the short sale helps avoidhaving a foreclosure on their credit files —which is less of a black mark than aforeclosure because it indicated theborrower was working with a lender toameliorate the delinquency. There is stillthe issue of debt relief taxes, however,with a short sale.
“Foreclosures often come with a complexset of circumstances, buying a foreclosurecan involve an unorthodox purchaseagreement where the sales price isminimal but the seller agrees to take onother costs such as expensive repairs, or loans encumbering the property,” said Jim Saccacio, chief executive officerof RealtyTrac, which provides a plethora of data for professionals in real estate and default servicing. “That said,foreclosures still provide an amazingopportunity to buy real estate belowmarket value,” Jim added.
Clients of financial advisors rarely findthemselves in foreclosure situations, butthat does not necessarily apply to theirchildren, parents, or co-workers who donot have financial advice. You may wantto send a copy of this article to yourclients — for the benefit of those they careabout.
Paul Richard, RFC® isthe Executive Directorof the ICFE, foundedby Loren Dunton.Paul is the author ofthe Certified CreditReport Reviewer, andhe is nationallyregarded as anidentity theftprevention specialist.
CONSUMER FOCUSwww.ICFE.infoPaul Richard, RFC®
Foreclosure Scams and Short Sales Increase
Institute of Consumer Financial Education 619 239 1401 www.ICFE.info E-mail [email protected]
Page 10 The Register • May 2007
relationship with the clients. Many times,they do not discuss their retirement ortheir finances at all. Donato will just sitand chat or perhaps they will go out todinner. His purpose is to really, thoroughlyunderstand his clients before the big day.
“I get to know them first, then I get thenumbers. I believe if you cancommunicate with people, you can helpthem, and they will be satisfied.” SaysDonato, “I also explain that my job is tohelp them through any financialturbulence they may experience, and I seethis as my lifetime commitment to them.”
Over the next year, he worked with Johnand Mary to increase their pensionpayouts by using life insurance, and herolled their 401K into an IRA. By thattime, due to good communication and theextra attention, Donato and the Smithshad become close. He had met the Smithchildren, who lived out of state, and evenhelped a number of their relatives withtheir finances. Donato’s entire familywould get together with the Smith clan fordinner. They had become more than justconsultant and clients, they had becomefamily friends.
“When you have that level of trust,” saysDonato, “it is no longer just business. Themore you increase the trust, the strongerthe bond, and the easier it is to do what isright for the client.”
During the next few years, Donato providedall the help that he could. No request wastoo small. Donato would providebudgeting advice for a relative or work withthem to roll their CDs. As a result, therelationship with the Smiths became evenstronger and more personal.
By January of ‘96, John Smith was notfeeling well. He was diagnosed withpneumonia and was in and out of thehospital. By May of ‘96, it developed intolung cancer shortly after hearing the poorprognosis, Donato was able sit down withboth John and Mary and have a veryserious conversation about their future.He was very straightforward with them.Looking them right in the eye, he askedthem “What can I do to ease the pain andhelp allay your fears? What can I do tomake sure that the two of you and your
Golden HaloBy Katherine Vessenes, JD, CFP®, RFC®
About a year after I became a financialplanner, a startling question came to mind:
Whom could I trust to handle mymother’s financial affairs?
In other words, which planners had theskill, the expertise, and the professionalethics, to be good enough for my ownmother? My own answer to myself waseven more startling than the question. Icould only think of 3 people!
Fortunately, over the last 10 years I havemet many wonderful planners andadvisors good enough for dear old mom.Although they each have unique abilitiesand philosophies, one thing they share isa passion for helping their clients. Let metell you about one planner who would beon the short list for Mom: DonatoLupacchino of Meriden, CT who has beenin financial services for sixteen years.When I tell you about two different casesDonato has handled, I think you will agreewith me, he is just the kind of planner youwant handling your mother’s affairs.
The Smith Family.* About eight yearsago Donato was referred to John andMary Smith. They were both preparing toretire from their jobs and needed soundretirement advice. Typically, Donato likesto meet with this type of client three tofour times in the six months before theyactually retire. During this time period henot only collects data, but he focuses agreat deal of attention on building his
family will be okay?” Of course this kindof direct communication would not havebeen possible if Donato had not spentyears developing a close personalfriendship with the Smiths.
John asked Donato to run through thenumbers once again. Which Donato didin short order. He reported that Marycould live to be 120 and have absolutelyno change in her lifestyle. In addition, shewould have no problems providingfinancial support for the grandchildrenand even her ‘wish list’ would be possible.You can imagine the relief when theSmiths received this good news.
Over the next few months Donato went tothe hospital and visited John on a regularbasis to relieve Mary, who was John’s full-time caretaker. Sometimes he wouldactually feed John ice cream or just sitwith him and watch television. At thesame time, John and Mary’s childrenwould call from around the country, allasking Donato the same thing: “Will Mombe okay?” Donato was pleased to assureeach of them that she would be fine.
When John died, the family called Donatofirst. Donato immediately jumped in to dowhatever he could to make the processeasier. He called the funeral home toassure them there would be absolutely noproblem being paid since the Smith familywas expecting cash within a few weeks.All of the children flew into town, andDonato spent three days with them duringthe wake, the funeral, and the aftermath.It was his great honor to be asked to be a pallbearer.
Donato then suggested to Mary that shetake a week for herself and then he wouldhelp her through the probate process. Incomplicated situations Donato likes to usean attorney, of course, to resolve probate.However, in situations such as John andMary’s, where the spouse is inheritingeverything, he finds he can help steerthem through the process, and save thema lot of money, heartache and hassle inthe process. Donato does not chargeclients for this service. He feels it savesthem money and it is all part of thereason that he is working with them: he
Katherine Vessenes, JD, CFP®, RFC®
The Register • May 2007 Page 11
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wants to be there to help them throughany of the financial turbulence of their life.So, working with clients to re-title theassets is just part of fulfilling his promiseand obligation because no one knowsthese assets better than he.
On the date of the probate hearing,Donato typically picks up the client andtakes them to court. The day he pickedup Mary was no exception. He used thattime together to make sure Mary wascalm and feeling comfortable, and thateverything was okay.
Result: Today, the Smith family stillmisses John, but thanks to Donato’sspecial attention, they have a securefinancial future, and the confidence thatDonato will be with them through goodtimes and bad.
The Blue Family.* Donato had anothercase where he really had to go the extramile to take care of his client. In thiscase, an accountant referredGeorge Blue, whose wife, Jane*,was recently killed in amotorcycle accident.There was no will andwith children from twodifferent marriages, itwas going to be acomplex probate action.In addition, Georgedecided that he did not wantto sue the driver who causedthe accident that killed his wife,Jane. Apparently the driver was a closefamily friend and George did not want tomake the friend personally liable.
However, the friend’s liability insurancepolicy would pay to the limit of $100,000provided that the claim was filed withinone year of Jane’s death. Since theamount of settlement was so small,George’s law firm referred the case to arookie attorney. The rookie did not keeptrack of the time limits and the one-yeardeadline was rapidly getting closer.Donato started getting nervous. Herealized that if the one-year deadlinepassed, in order to get the $100,000 thatwas rightfully George’s, they would have tosue not only the insurance company, butalso the driver of the vehicle — the onething George did not want to do.
The rookie attorney tried unsuccessfully toget the case on the court docket withinthe time limit. When that failed he startedto prepare George emotionally for suinghis friend, the other driver. BecauseDonato had been following the case
closely, he had a clear mission. In orderto fulfill George’s wishes not to sue thedriver, this case had to get on the courtdocket and get resolved within the one-year time limit. Donato, knowing howimportant it was to George not to sue thefriend, refused to let a little thing like acrowded court calendar get in the way ofhis client’s best interests.
Donato personally called the judge andarranged a private lunch. During lunch,Donato explained the facts of the case ingreat detail and asked the judge if hecould help expedite matters on George’sbehalf. The judge was mostunderstanding and got the case on thedocket before the deadline. The result:due to Donato’s efforts, George receivedthe $100,000 to which he was entitledand did not have to go through theemotionally draining experience of suinghis close friend.
Lessons to be learned
Donato Lupachino has a number ofphilosophies that I think are important forall of us to remember:
He has a serious passion for thebusiness. He thoroughly enjoys hiswork — helping people. “You needcompassion in order to have a passionfor this job. If you have compassion younever question what you’re doing andyou always put in the extra effort tomeet the client’s needs.”
If you want to help your clients with areas outside of planning, doyourself a favor and really learn thoseother areas. Whether it is, taxes, realestate or probate, become an expert foryour clients’ sake. Donato became anexpert in estate planning and probateby meeting with probate judges,attorneys, reading a lot and becoming
thoroughly familiar with the procedures.This extra level of expertise not onlybrings a great sense of comfort to hisclients but also helps save them a greatdeal of money.
Fulfill your promises. At the beginningof every relationship Donato explains toclients that his purpose is to help themthrough the financial turbulence of life.He is with them no matter what. Thiskind of dedication is quite rare todaybut very refreshing and comforting tohis clients.
“I give expecting nothing back because this is true compassion and unconditional love. These things fulfill you more than makingmoney,” says Donato. Donato believesthat it is the total commitment tohelping your client that makes you aprofessional. “Let’s face it” he says,“The client doesn’t care how much you know, until they know how much
you care first.”
According to Donato, someindustry companies reward
the wrong things.Financial advisers getpraised and rewarded forshort term results when it
should be recognition oflong term success that canonly come with commitmentto the relationship.
Thank you, Donato, for setting such agreat example to the industry. If Momwere still alive, I would have no qualmsabout you handling her finances.
*This is obviously a pseudonym, althoughthe cases are true.
Donato G. LupacchinoLupacchino Financial AssociatesMeriden, CT Contact: 203 235 7776
Katherine Vessenes, JD, CFP®, RFC®, is anationally known author and speaker,focusing on sales, marketing, complianceand practice management issues forbroker/dealers and advisors. Look forher latest book: Become a MultimillionDollar Financial Advisor.
Contact:: 952 401 [email protected]
Page 12 The Register • May 2007
Have you ever sat through a workshopdesigned to improve your referralgenerating skills? Did you develop yourscript, role-play, ask yourself if you’rereferable, etc.? Of course, this exercise isextremely valuable for acquiring referrals.The reality is, however, that most financialadvisors — and most professionals ingeneral — don’t like to have to ask forreferrals. It’s the same reaction most ofus have to cold calls — if we don’t have to,we won’t!
Most things that we don’t feel comfortable doing are discontinued after a period of time. So, I decided tolook for referral generating strategies thatdon’t require asking. Below are threeproven, referral-boosting strategies thatdon’t require you, the advisor, to be anexpert at asking for referrals:
It’s about the relationship
Some of this industry’s top advisorsreceive 100 or more referrals each yearwithout ever directly soliciting for them.How do they do it? They tell me it’sbecause of the relationships they havewith their clients. The clients simply wantto introduce their friends, family andcolleagues to the advisor.
Ask yourself a few questions: Do myclients know I care? How do I show or tellthem? Do my clients like me? Well, thetruth is that if they like you, they will refermore business to you. Performance aloneseldom gets you the number of referralsyou deserve.
One of the best ways to develop therelationship is through systematic clientreviews. Determine how many times youwant to meet with each client, record thisin your database, schedule the reviews,
and schedule their next review while theyare in your office for their current review.When you build the relationship in apersonal and impactful way, the referralswill start coming in. It’s not magic, but itseems like it!
Your staff may be repelling referrals
If you believe you are a great financialadvisor (which I hope you do) ask yourselfa question: “Does my staff think I’m agreat financial advisor?” If the answer is“no,” then guess what? They may have togo! It might sound harsh,but a staff personthat is notpassionate aboutwhat you do mayactually behindering yourreferrals andsending thewrong messageto yourprospects andclients. Whenthey arepassionate, manyreferrals will begenerated byyour staffdirectly. So, ifyour staffdoesn’t thinkyou’re all thatgreat — why wouldyour clients? It’smore transparent than you may think.
Seminars in a niche
Consider developing a “5-5-5-20”seminar. Pick 5 or more of your clients that are in a niche (ie. they retiredfrom the same company). Mail eachclient 5 invitations to an upcomingworkshop or a seminar like How to Retire from LOCAL COMPANY WithoutMaking Big Mistakes. Then make phonecalls to the 5 clients personally askingthem to pass those invitations along toothers who are getting ready to retire from this company.
This has been done hundreds of times and on average 20 people will be in attendance at your workshop. It costs very little, attendees actually want the information, and often you don’t even need to serve dinner! Thisstrategy doesn’t replace public seminarsthat work to generate lots of newprospects for your firm, but is a
complementary strategy. The “5-5-5-20”allows you to receive referrals without everasking for them directly.
Just because you don’t like to ask for referrals doesn’t mean you can’treceive them. Just find alternative ways of getting them — without asking. It maybe a much more sustainable strategy inthe long run.
Maribeth Kuzmeski, MBA, RFC® is anational keynote speaker, marketingconsultant, author and personal coach,who has been working with and studyinghighly successful financial advisors for 12years. She consults with some of the topfinancial advisors in the United States.Maribeth has spoken at the Million DollarRound Table, and has been featured inhundreds of publications.
Maribeth is the author of 4 books,including 85 Million Dollar Tips forFinancial Advisors, and is the creator ofClient Delight® communicationtechniques. Her passion, at Red ZoneMarketing is to help increase theeffectiveness of marketing for financialadvisors so they can use their brilliance tosee and serve more clients.
Contact: 847 367 [email protected]
Increasing Your Referrals Without Ever Asking!
Maribeth Kuzmeski, MBA, RFC®
The Register • May 2007 Page 13
Sounds a bit like a Robert Ludlum or IanFleming spy novel, doesn’t it? But ratherthan playing Jason Bourne or JamesBond, the use of organizational Archiveswill dramatically help you do three things:
• Engage New Clients Quickly• Gather Information More Effectively• Increase High Quality Referrals
What’s not important about that?
The use of the Archive “Option” isn’t new.In fact, we started using it in 1979 — butin a less attractive and more expensiveformat. It was very effective at helping usclose new engagements with affluentclients and business executives — on afee for plan payment basis.
During the initial presentation of financialplanning services to a prospective newclient you have a number of objectivesthat the new RFC Archive System will helpyou achieve:
Distinguish Yourself From Other Advisors.At first all prospects are naturallywondering, “What is unique about you?”They are looking for re-assurance that youoffer services that are not available fromyour competitors.
Demonstrate Value. The Archive casesfor Documents and Tax Records are notexpensive and your clients will recognizethat. However, they will appreciate thethoughtfulness that it substantiates. Youare obviously trying to help them get andstay organized on a long term basis.
Accelerate Data Collection. Clients haveindicated that one issue that makes them
reluctant to engage a financial advisor isthat they know they’ll be asked to gatherand furnish the various documents andrecords needed to prepare a professionalreport. They feel this will be a painfulprocess and is one reason for them toprocrastinate. The Archive Option willreduce this resistance.
Substantiating Your Professionalism.Each step in your presentation is abuilding block that creates confidence inthe mind of your prospective client — yourpre-meeting preparation, your meeting filefolder, your graphic presentation, yourwritten plan and, of course, yourdemonstration of the Archive cases.
Making the Intangible into a Tangible.Everyone finds it easier to pay a fee whenthey can physically handle portions of theprocess. This is why it is so important tohave a client file folder, already prepared,containing all the documents and formsyou will be presenting. The prospect willalso be able to handle (but not keep) thesample financial plan. The Archives givethem another item to “handle” andsomething which they can take with them.It provides Immediate Buyer Gratification.
The Archive System. This consists of two black plastic cases with silver lids.Inside the Documents Archive case are 25 pre-labeled hanging files and in theslightly smaller Tax Archive there are 15 pre-labeled folders.
Testing the Waters. When you presentprospective clients with the Archives, theywill have an opportunity to briefly handlethem, and examine the titles of theSections. It is extremely unlikely that yourprospects are this well organized. Theywill instantly want to be better organized.When they have finished glancing at thesection labels of the Archives they mustdo something with the Archive cases.
1. They can hand them back to you.This indicates that they are not yetresolved to proceed with the planning.They have some reservation or somequestion that is still unanswered. Youhave some more probing to do.Maybe you’ll need to ask morequestions to get at the reasons fortheir indecision. The issue is not, “Dothey like the Archives?” It issomething else — and you need todiscover it, and overcome their
The Archive OptionsIARFC Member Benefit — New Practice Tools
Ed Morrow, CLU, ChFC, CFP®, CEP, RFC®
objection or reservation beforeattempting to close the engagement.
2. They set the Archive Box down next tothem. This indicates they are veryfavorably inclined to engage yourservices. It is a “buying sign” ofvaluable proportions. In fact, it is veryunlikely that any prospect will set theArchive Boxes down next tothemselves and then later decide notto engage your services.
Think of this as if someone wasshopping in a grocery store and theyreceived a product from the butcher –all wrapped and packaged for them.Yes, they could take it back beforecheckout and not buy it, but it is veryunlikely they will do so, after placing itinto their “possession” in the shoppingcart.
Changing the Atmosphere of theInterview. When you realize that yourprospect has indicated this favorabledisposition you’ll start to relax. You’ll smile.The tone of your voice will become warmer.You’ll become even easier to buy from.
Our first version of the Archive optioninvolved using bulky, brown accordion filefolders made by Smead. They had 26alphabetical sections and were closedwith an expansion band. The brownmaterial was easily stained. We hadadhesive tabs printed – one set for TaxRecords and another set for PlanningDocuments. Each looked exactly alike.The labels were hard to affix in alignmentand they frequently came off. But thesefolders still worked very effectively!
High net worth clients and corporateexecutives really appreciated theseorganizational tools, and ourthoughtfulness in furnishing them.
We also recognized that many clients donot need 26 separate sections for theirTax Archive records and that a smaller(15) number would help draw thedistinction between the Document Archivefor continuous use and the Tax Archivewhich might be used annually.
New Archive Materials. The IARFCEducation Director, Jim Lifter, startedshopping at all the major office supply
Page 14 The Register • May 2007
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outlets and after examining about tenoptions, it was apparent that two productsmanufactured by Rubbermaid offered thebest compromise between appearance,widespread local availability and price.
Jim also located navy blue hanging filefolders that were complimentary to thenavy blue 3 ring binders we recommendfor the Plans. He selected an attractivetype font that matched the one we wereusing for the Plan Table of Contents andlaid out all the file labels in the printformat required by the Avery label sets forthe Archive sections.
Options for You. You might prefer othercolors — for your binders, Table ofContents and for your Archive file foldersand labels. You could also edit the labelswe provide. But, we made a real effort toplace them into alphabetical order —and include the topics we consider to bemost appropriate.
Use the System First. Before you spenda lot of effort and time (which is of coursequite valuable) we suggest you use theformat that the IARFC has developed foryou. Then, based on your experience,consider making changes.
Color Selection. If you have a “signaturecolor” such as forest green or dark red, oreven black, then you may want to changefolders and label colors.
Section Titles. If most of your clientsprove to have very complex tax mattersyou might decide to create a set of 25 taxsections and use the larger Archive casefor both versions. We felt that there wassome perceived value to have differentsizes, and that 25 tax sections was a bitof “over kill.” But that’s up to you.
Wording and Spelling. In your country orcommunity you might want to make someedits to the Word file we have preparedfor your labels. If your plans arepresented in a language other thanEnglish, you will need to translate theterminology into your local language —and re-alphabetize the sections accordingto your custom.
A-4 Alternatives
In many countries the standard pages forlegal documents, correspondence, reportsand contracts are A-4 size (8.27” x11.69”) rather than the U.S standard of8.5” x 11.” However, A-4 size papers anddocuments will fit in the standard filefolder used in the U.S. — because the
folders are just large enough. Thehanging file used in the U.S measures9.25” x 11.75” and it fits in into rails thatare 12” apart. The A-4 size hanging fileversion is a bit wider, measuring 9.25” x12.4” and the rails are 13” apart.
Therefore you can use whichever productsare most easily available in yourcommunity. There are excellent options.However, the IARFC has already done theshopping for you — to locate the bestavailable sources, prices and formats.
The Interview Presentation
During your Presentation of Services (theIntroductory Interview) to initiate a newClient Engagement you will display sevennumbered “action” slides on the planningprocess. Your goal is to change yourprospect into a client — on a veryfavorable basis:
• They know what to expect• They have confidence in you• They have agreed to pay a fee• They are anxious to receive their plan• They are prepared to implement
the plan
During the Graphic Presentation that ispart of the Client Builder package you willhave two opportunities to introduce theArchive cases. The first opportunity isearly in the presentation when you areshowing the more pictorial images (1, 2,3, 4, 5, 6 and 7) of the planning process.
Step two in the planning process is“Gathering All the Information.” Followingeach “action” slide there is one withbullets that explains further what you willbe doing. We feel this is the mostappropriate place to introduce the ArchiveSystem — rather than later during themore complex multi-box Process Chart.
In fact, we have inserted two slides youcan use if you like. The first slide showsthe Documents Archive case for“Documents, Legal Agreements, andImportant papers.” The labels are notvery readable, and so the logical step isfor you to hand the actual Archive case toyour prospects. The following is what youmight say:
It has been our experience that manypersons are frustrated with all of therecords and papers they must retain. Infact, they often lose important papers orcontracts, especially when moving. Thiscan be very time consuming. It can alsobe expensive.
Some persons have lost legal papers —and had to pay an attorney to draw new documents or get a court to re-issuea certificate.
Many persons have paid too much in taxes, because they could not filereturns with confidence. They hadforgotten about payments or lost therequired evidence.
We furnish our clients with an ArchiveSystem, for preventing this from everhappening to them.
This is our Document Archive. (Open thelarger Archive box and display the folders.)You’ll notice that these are “hanging” filefolders. As you gather all of theinformation we will be using to prepareyour personal financial plan, just place theitems into the appropriate file folders.
(Hand the Document Archive box to the client).
Wouldn’t you agree that this is a veryeffective way to gather and retain allthose important items? (Wait for theircomment or answer.)
This will be your Tax Archive. (Notice wehave changed from “Our” to “Your.” Youcould use similar phraseology with theDocument Archive – especially if you havedecided to give your clients only one, nottwo Archive cases.)
During the year you will place into themost appropriate folder all of the records,receipts checks and statements that arepart of the Tax System. This way youwon’t miss any deductions – and will notbe over-paying your taxes.
Our clients all tell us that having theirrecords all in one place helps get their tax returns prepared — but moreimportantly, it gives them a great feelingof confidence. If they get audited by theIRS — which can happen to anyone —they are ready! (Hand the box to theprospect.) Wouldn’t you feel morecomfortably having a system like this touse every year?
(You might also say the following,especially if it is your custom to chargeyour clients an ongoing fee for your adviceand service.)
Furthermore, each year we’ll give you anew Tax Archive case — so you’ll have a
The Register • May 2007 Page 15
continued on page 16
Page 16 The Register • May 2007
continued from page 15 The Archive Options
system that enables you to review each prior year’s return — to be sure youwill have all the records. This way you willbe certain you aren’t missing anyimportant deductions.
Watch What the Client Does Next!If they make positive statements, or nod their heads, you are moving ahead. If they set the Archive cases down on their side of the table, they are indicating a favorable “buying sign.” However, if they hand the Archive case(s) back to you, then you know they still have somereservations or questions.
Should You Present Two Archives?This is a matter of choice and cost.Obviously it will cost you a bit more to give clients two cases, rather than justone. However, if you are charging anadequate planning fee, the cost is not an issue.
Archive Costs. You can purchase the Archives (in the U.S.) from the IARFC at a cost of $55 for the 25 sectionDocument Archive, $45 for the 15 sectionTax Archive, $20 for the supplies, $18 for shipping and handling — total$138 for the complete set. With yourinitial purchase you will receive the CD-Rom with the pre-formatted Sectionlabels, customizable Client labels andanother copy of this article. Those prices include all the hanging files andpre-printed file labels, and shipping byground UPS.
If you order all the materials directly fromStaples you’ll pay from $70 to $75 for theset, and you can manage the inventory.
What About Personalizing the Archives?You can do this easily with special Avery self-adhesive labels, and we areproviding a pre-formatted template. The biggest name that should appear on the Archive label is that of the Client. Since the labels are easilyremoved, you would create quite animpact by offering the two Archive cases to your prospect with their name already affixed. If they do notbecome clients, you can replace the name labels. Can you really imaginethem handing them back?
Should You Equip the Archive System?The larger Archive case lid contains twoclosable compartments with 8 sections.You can demonstrate your helpfulattention to detail by filling them withsupplies for use by your new client:
• A 6 inch ruler• A small stapler, with staples• Large paper clips• Small paper clips• Binder clips• Small roll of tape• Post-It notes • Ball point pen (your imprint)• High-lighter pen (optional)• Roll tape measure (optional)
Is this a good idea? The cost of the supplies is only about $8-10, plus the labor to fill the compartments. It is not the cost or the time that matters to your clients — it is the impactof your thoughtfulness.
Future Purchases. You can buy theArchive Systems from the IARFC —or order online or by fax from your closest Staples store at www.staples.com.They offer free delivery and quantitydiscounts. When you buy a starter set, we will include all the supply items, but you’ll probably want to order somepens with your imprint. If you decide tovisit a local Staples store, we suggest youcall first to be sure they have all theseitems in stock.
Let’s Summarize! By using the Archivecases you will be dramatically enhancingthe perceived value of your services whenmaking your first presentation to aprospective client.
You will be immediately offering a tangiblebenefit to new clients — one that they canimmediately appreciate.
You will facilitate and accelerate thedelivery of the financial information thatyou need to prepare the initial financialplan. You will be distinguishing your andyour firm from your local competitors, whodo not deliver such a professional andtangible benefit.
Ed Morrow is the chairman and chiefexecutive of the IARFC and he speaksfrequently at professional conferences ontopics related to his practice experience —and enabling financial advisors toincrease their sales production and clientservices, by building their practicesthrough effective client relationshipmanagement. He first used computers in‘70 and he has authored seven computerprograms and 21 operation manuals.
Contact: 800 666 1656 ext. [email protected]
Document Archive Sections
Annuity & Pension Contracts /Rights
Bank Certificates, Safe Deposit BoxBirths Adoptions and GenealogyBusiness AgreementsCemetery, Funeral & Burial RecordsCharitable Gifts and BequestsCorrespondence of ImportanceCredit and Debit Card RecordsDebts, Loans & Lease AgreementsDisability & Sick Pay BenefitsEducation Plans and DocumentsEmployee Benefit Records & FormsHealthcare Forms / Power of
AttorneyInvestment and Portfolio ReportsLife Insurance Contract & ReportLong Term Care Insurance or PlanMarriage Records / Divorce
AgreementMedical Insurance Cards &
PaymentsProperty, Auto & Liability InsuranceReal Estate Tax and Deed RecordsRetirement Plan Info. & ReportsSocial Security & Earnings RecordsTax Returns & InformationVeteran’s Records / Prior
EmploymentWills, Trusts and Letters to Family
Tax Archive Sections
1099, W-2 and W-4 Notices &Records
Business and Property ExpensesCharitable ContributionsCredit Card & Loan Statements &
RecordsEducation Expenses and
ContributionsEmployee Benefits and ExpensesInsurance Reports, Payments &
FilingsInterest & Dividend Income
ReceivedMedical & Dental Expense RecordsMiscellaneous Expenses & FeesRetirement Plan Payments &
IncomeSecurities Gains, Losses &
ExpensesSocial Security & Medicare RecordsTax Estimates, Payments & RefundsTax Return Copies — Federal, State,
Local
The Register • May 2007 Page 17
As a member of the IARFC, we are making available to you a specially developed Client Archive System. Thissystem is designed to be given to your clients at the time of engagement and will enable them to maintain a levelof organization that is unsurpassed in our industry. You, as the financial professional, will ensure that they areable to accurately maintain their financial records for both their personal finances and their tax-related issues. Inthis special from the IARFC you will receive a full set of cases ready for immediate use. You will soon be able toprovide your clients a new value-added benefit that will enhance your already lofty status.
The RFC Client Archive System includes two archival storage cases, hanging file folders, pre-printed sectionlabels, blank labels, customizable client labels, a set of client supplies, instructions for use, and a CD-ROM withtemplates for producing additional labels.
Complete the form below and send it back to us to purchase your RFC Client Archive System today. You maypurchase as many as you wish at this special rate.
RFC CLIENT ARCHIVE SYSTEM
How to Purchase YourRFC® Client Archive System
Fax this form to the IARFC: 513 424 5752
E-Mail: Jim Lifter, IARFC Education [email protected]
Name: ______________________________________
Address: ____________________________________
___________________________________________
___________________________________________
Phone:______________________________________
E-Mail: ______________________________________
Number of Sets:______________________________
Credit Card #: ________________________________
Expiration Date: ______________________________
IARFC Special Price $ 120.00Shipping & Handling 18.00
Total $ 138.00
Set Includes:2 Archive Cases 1 Set of Supplies
40 Hanging Folders 1 CD-ROM 40 Pre-printed Tabs 1 Instructions for 14 Blank Tabs using the Client
2 Client Labels Archive System
IARFCFinancial Planning Building2507 North Verity Parkway
Post Office Box 42506Middletown, Ohio 45042-0506
P: 800 532 9060 F: 513 424 5752www.IARFC.org
Working on your practice instead of working for your practice.
Develop high quality comprehensive financial plans — Retirement Planning,Insurance Needs, Education Funding, Estate Distribution Create unlimited “what-if scenarios”— including Monte Carlo simulationsPresent product solutions powerfully, swiftly and dramaticallyEasily justify a substantial planning fee
Track prospects, clients, follow-up tasks, appointments, and planning stepsSelect from hundreds of letters, articles and agendasRun Targeted Drip Marketing CampaignsIdentify clients and prospects by needed products, services or interest areasImplement Due Diligence and Liability Protection
The presentation system for financial advisors that motivates the prospect to engageyour services on your preferred basis. It is ideal for helping you charge a separate feefor the financial plan. A sample Plan Fee Schedule and all correspondence is included.
Solutions creatively designed, continuously enhanced, well-trained and supported to help build your success.
[email protected] 800 666 1656www.FinancialSoftware.com
It’s all in the details! How many timeshave you heard that expression? Whetheryou are trying to plan a vacation or developan investment strategy, if you don’t get thedetails right you might wind up inFrankfort, Kentucky rather than Frankfurt,Germany; or you might wind up with junkbonds rather than US Treasuries.
It holds true in almost all aspects of life,but especially in a business or professionwhere you deal with the public. Withpeople, the devil is in the details.
In interpersonal relationships, we all want to be made to feel important, andafter all, we are! We just hope others feel the same way about us. We can help with that desire by making othersfeel important, too.
So, never forget to see if someone is, or hasbeen, ill, had a new child, lost a familymember, or had a promotion. A simple card(home-made makes it more personal) or acall can be so reassuring. When a joyousevent occurs, a congratulatory article thathas been laminated for posterity shows youtook the time to notice and respond. Onthe occasion of the loss of a loved one orfriend, a plastic covered obituary article as abookmark when you cannot attend afuneral says so much.
Positive reinforcement is an importantaspect of successful networking, andgiving it can be as satisfying as getting it.Whether your success is in dollars or inself worth — these little attention “givers”(not “getters”) mean a lot in your own lifeor in that of others.
Contact: 615 591 [email protected]
Securities offered through Wall StreetGroup, Inc. Member NASD/SIPC
Successful Habits Depend
on Details
Connie Luttrell, RFC®
Page 18 The Register • May 2007
My new client told me that I was the firstfamily business advisor he had ever hired.He had always been reticent about hiringan outsider but I came with props from hisclosest buddies at the Family BusinessLeadership Council.
The first morning on the job, I kept it lowkey. I stopped at his son’s office. “So Bill,what is it like working with your sister?” Itwas an innocent question. I just wantedto get the conversation going.
“My older sister,” Bill corrected me. Andwith that he stood up from behind hisdesk, and walked quickly to the door. Hesaid to his secretary “Forget the coffees!”and closed the door deliberately. For meanything that happens so deliberatelybefore 8:00 am and before my first cup ofcoffee is a challenge to my equilibrium.
Instead of returning to his chair behindthe desk, Bill joined me on the couch. Hegot very close. He was in my space. Likemany others, I get very uncomfortablewhen someone is in my space. I pushedback six inches.
“Have you ever met Judy?” he asked. The question was garnished with morethen a hint of years of psychotherapy. I did know that she was an MBA from Harvard, the company CFO, and that she had co-chaired this year’s United Way campaign.
He continued, “She is six years older thanme and she treats me like I am stilltwelve. She was bossy when we werekids, and she’ll be even bossier when dadhas her run the company.”
I was surprised. “What do you mean runthe company? Aren’t you the Executive VPand heir apparent once your dad retires?”
“No, once dad retires Ms. Mussolini willbe the CEO,” he lamented.
“Do you want the job?” I asked.
“Sure I do, but dad keeps on hinting thatit’s going to be hers and not mine,” hesaid.
I was the family business coach. I wassupposed to be able to clean up all thistype of mis-communication. So,immediately I went to Bill’s dad, thecompany founder, and asked him straightup, “Why are you giving your daughtercontrol of the company rather then havingher share it with your son?”
“Hesh, she’s smarter and a betterbusinessman,” he remarked (as if he wascommenting on the weather.)
“Does your son know that?” I asked.
“Honestly, no.” He answered.
“When are you going to tell him?” I asked.
“Well, actually that is why I hired you asour family business advisor.” He said.
I was getting very uncomfortable with ourconversation. I played dumb. “I don’tunderstand.” I said.
“Hesh, your first assignment is to tell myson that he isn’t qualified to be the CEO.”
“Shouldn’t you tell him? I said. “It’s yourcompany; and he’s your son.”
“I don’t want to hurt his feelings.” Now hewas sounding like the caring father andnot the heartless entrepreneur. This guywas a modern day Jekyll and Hyde.
“So, you want me to tell him; you want me to be the bad guy?” I asked in astonishment.
“Yes, Hesh that is why I agreed to youroutlandish fee.” he said. “Do you think I’dpay all that money just for a successionplan that everyone would ignore?”
I felt like I was reading a bad script of anold gangster movie. I said “It’s like you’ve
Business Mirrors LifeConsultants Get Hired To Do All the Dirty Work
Hesh Reinfeld
taken a contract out on your son and I amthe hit man!”
“Hesh, that’s actually a good analogy.”The dad commented.
“So you want me,” I said in disbelief, “Totell Bill that you’ve decided that he isn’tqualified to be CEO.”
“Of course not, you can’t blame me.”He said. “You need to come up with adifferent scenario.”
“What did you have in mind?” I wonderedout loud.
“Maybe you could give him a battery ofpsychological tests — and then tell him hejust has the wrong personality to be theleader and CEO of a company.”
“And you think he’ll believe me?” I asked.
“I think it will create just enough doubt inhis mind for me to get away with thedecision,” he said.
“Boy, you are a devious guy. How did youever come up with this shrewd scenario?”I asked. He answered, “Bill’s momsuggested it.”
Hesh Reinfeld uses his story telling skillsto help financial advisors with marketingbiographies that transform their imagefrom financial calculators into authenticand appealing people. Hesh prepared theBusiness Success Profiles for Gary Storieand Jim Zalenka.
As an experienced journalist, Heshpassionately believes that a properlycrafted bio or marketing profile will causea prospective client to be sufficientlyattracted to read it, and to feel, “I’d like to meet this person.” If you would likeHesh to help you prepare a similarbiography for you, or to assist you withwriting assignments that will help you inyour market.
Contact:: 412 421 [email protected]
The Register • May 2007 Page 19
Page 20 The Register • May 2007
Every highly successful professionalhas a Press Kit! Anyone with a highprofile has a Press Kit! Norm Levine,RFC®, a very successful financialmanager and president of threeinternational organizations, says,“Across our world, and in your localmarket area, financial planning is abooming industry! The leadingproducers — those who help the most clients — even in China and thePac-Rim countries, all haveimpressive Press Kits! Our leadingplanners and agents in the USA havePress Kits. Readers of the Registershould be using and benefiting froma Press Kit! Your Press Kit is animportant tool.”
Your Press Kit Is Your Identity!Your Identity Is Your Destiny!
Monroe M. “Roey” Diefendorf, MI,CLU, ChFC, CFP, CIMA, C3DWP, RFC®,of 3-Dimensional Wealth Internationalexplains, “Anyone in America who is aleader, now has a Press Kit!” EveryFortune 500 CEO has a Press Kit!Every member of Congress has aPress Kit.
No matter where you are located, you are important. You are anachiever. You are advancing yourcareer. It’s time you started usingyour own Press Kit in the mosteffective fashion!
Even in major cities, Harvey C. Fuchs,ChFC, LUTCF, RFC®, the respectedfinancial expert who serves New YorkCity police officers explains, “YourPress Kit positions you as unique andspecial. Your positioning becomesyour true identity. Your identitybecomes your desired reality. Yourreality becomes your destiny.”
If you do not have a Press Kit thenyou are announcing that you are not important, not a leader, not well-known, not highly established,not recognized, etc. With No PressKit, How can you expect to get free publicity?
At this point in your life, career andprofession, you should be well awarethat you need a Press Kit. It is the
most cost-effective way to enhanceyour image. You use your Press Kit to better market your services andimprove your image and advance your earnings.
Any successful person of prominencecan immediately send their Press Kit to you. That’s what you do with Press Kits. You give them out.You distribute them at everyopportunity. Since your goal is tobecome ever more successful andhelp many more clients, you shouldassemble your Press Kit immediately,not soon — now.
Show What is Unique and Special About You!
Your Press Kit works for you byhelping establish you in your market area and in the financialservices industry! If you do not have a Press Kit then the leaderamong your competition will use his or her Press Kit to surpass you in local perception. Yes, yourleading competitors have Press Kits! And they know how to use their Press Kits.
Insert items into your Press Kitaccording to what you are going touse it for, i.e., how you desire to bepositioned to the person(s) receivingyour Press Kit. Some advisors havethree versions: one for prospectiveclients, one for media and a third forpersons considering them for aspeaking engagement.
Your Press Kit is created by placingitems inside a paper folder that haspockets! Your Press Kit shouldcontain any items that convey yourdesired destiny, status, prestige,image, accomplishments — anythingpositive and impressive about youand your work! Your Press Kit shouldreveal what is unique and specialabout you.
Your Press Kit is both your identityand your destiny! For young plannerswho did not yet have much to use intheir Press Kits I inserted a handwritten poem by a seven-year oldchild (suggesting the planner was a
proud father and nice guy) or apicture of a planner’s dog with a note about how smart the dog was.(a “warm and fuzzy” item making the planner look human andapproachable.) Use the best of what you’ve got now.
Of course, you should have your name, address, your slogan (or theme) and various contactnumbers, on all, or most, of thepieces in your Press Kit. You should have and use, as appropriate,your slogan, your motto, theme,elevator statement, USP, missionstatement, etc.
You do have a slogan don’t you? Your slogan should suggest yourpersona and how you want to bepositioned. It reveals why you areunique and special. For example oneof America’s most successfulfinancial planners used America’sFirst Lady of Financial Planning. She wanted to be perceived as ageneralist who did not specialize inany market segment.
Are you targeting seniors, truckdrivers, association members, etc.?Lew Nason, LUTCF, RFC® the salestrainer, uses The Nine-Out-Of-TenGuy! because this alludes to why hebecame famous in the first place.Steve Bailey, RFC®, the highlysuccessful North Carolina financialplanner uses The SouthernGentleman of Financial Planning. Heis now well known for his relaxed andnon-threatening “Andy of Mayberry”type of charm.
Mehdi Fakharzadah, RFC®, theworld’s most successful activeinsurance sales agent, uses, “IfMehdi can you can!” Mister Mehdichose this line because hesucceeded despite almost impossibleodds and most of his clients did notthink they could afford insurance. Hestarted in Hell’s Kitchen andeveryone said he would fail! Createand use the one-line slogan, motto ortheme-line that works best for yourunique situation.
Cato Comments – About Your Image...Every RFC Needs a Press Kit!
continued on page 21
The Register • May 2007 Page 21
1. Your color photo(s). Size 5x7 is most often used. You also need to have severalexcellent, high-resolution photos available to send electronically.
2. Your lengthy biographical sketch. This contains “everything” about you as aprofessional. It is critical that this does not include “puffery,” embellishments.Include all your designations and degrees. Don’t call your book a “best-seller”unless it made The New York Times top-ten list.
Always be specific and precise. Never say you have been published in leadingfinancial magazines. Indicate precisely which journals you were published in. Ifyou want to be considered an objective advisor, you must avoid production andproduct-related references.
3. Your short bio-sketch (a condensed version) limited only to the most importantcredits you have. Be specific and precise. This might be used for an article by orabout you.
4. A copy of your Speaker’s Introduction to be used when you are speaking. Thisimplies you are frequently introduced to audiences.
When you are introduced have the person doing the honors read this sheetseveral time in advance. Usually that person fails to study your material andmerely “wings it.” In the process your introduction is bungled. Your intro copyshould be specific and precise, not too long.
5. Copies of any print media exposures you have received, especially a cover of amagazine or large-space feature articles. Reprint “inserts” separate the “menfrom the boys.” They are considered “proof” that enable important decisions to bemade in your favor.
As an RFC you can be published in either the Register or in the Journal of PersonalFinance. Either of these can be reproduced and inserted into your press kit — evenafter you have sent copies to local media immediately after being published.
6. Proof of anything else that is impressive or enhances your credibility, such asproclamations, awards, honors, recognition certificates, etc.
7. Optional is a list of your memberships and especially the leadership positionsyou hold or have held, Rotary Club, Optimist, BBB, etc.
8. Letters of recommendation or letters of praise from satisfied clients.
9. Try to include a CD or DVD of you in “action.”
10. Your Press Kit should also include your business card, and if you have a “dual cut”folder, by all means insert the card of your assistant.
Forrest Wallace Cato, RFMA, RFC® has over 25-years experienceas a multi-national Media Advocate for financial professionals.He is former Editor-In-Chief of Trusts & Estates, the Journal ofWealth Management and Financial Planning magazines. Catowrote the Introduction to the classic book, How To Sell Your WayThrough Life by Napoleon Hill, author of the all-time best sellingmotivational book Think And Grow Rich. He presents The Cato Award at the IARFC Forum. As a media advocate he helps financial advisors receive the local publicity they deserve by promoting and publishing their services in an effective manner.
Contact: 770 516 9395 [email protected] www.CatoMakesYouFamous.com
Ten Items Your Press Kit Should Contain
continued from page 20 Cato Comments
Talking on the phone is a part of any professional’s day. To make your phone calls more effective, try the following:
Plan ahead. If you’re making a call,decide in advance what you need to sayand how you want to say it.
Take deep breaths first. Deepbreathing will help to open yourdiaphragm, so your voice will soundclearer and more distinct.
Slow down. Many of us have atendency to talk fast when we’re on thephone. Make a conscious effort tospeak slowly and enunciate carefullyotherwise, your party is liable to misssomething important.
Listen carefully. Don’t try to multi-taskwhile you’re on the phone. Instead,give the other person your undividedattention, so you don’t miss anythingthey’re trying to say.
Wrap-up and review. Before endingthe call, review the key points discussedwith the other person, so you’re certaineverything’s resolved. Then discuss anyfollow-up steps required, and thank theperson for their time.
Let’s review. I’ll send you thatarticle on college costs. Then I’ll forward the summary onalternatives for college funding.And then I’ll call you after yourreturn from summer vacation toschedule an appointment… .
Receiving calls. Have a friendly and inviting greeting already prepared for how every incoming call is to be answered by you and your staff.
Take notes during all your phone calls — if the call turns out to beunimportant, then discard themimmediately.
Reprinted with permission fromSunGraphics, Inc., who prints theRegister magazine for the IARFC.
Quick Tipsto Ensure
Better PhoneCalls
Registered Financial Consultant, Morris G.Sahr will be entered in the forthcomingedition of Who’s Who in America. Sahrwas the founding president of theWashington, D.C. chapter of theInternational Association of FinancialPlanners. He was a former chapterchairman of the American Red Cross, pastpresident of the Fairfax Virginia RotaryClub and chairman of the Fairfax Planningcommission.
He also served as a director of the Fairfax Planning Commission and of the Fairfax Development Authority. Forten years he has been an adjudicator forthe American Arbitration Association. Heis a member of the International
Association of Registered FinancialConsultants and the CharlottesvilleChamber of Commerce.
Morris is a U.S. Navy veteran andgraduate of the University of Oregon. Hiscompany (of which he is the president),DMS, Inc. based in Charlottesville, wasfounded in 1978. As a financial advisoryorganization, DMS. specializes inguaranteed retirement income planning.Morey has been a member of the IARFCfor many years and frequently attends theFinancial Advisors Forum.
DMS, Inc.1289 Courtyard Drive Charlottesville, VA 22903
IARFC Member in the NewsMorris G. Sahr, RFC® — Makes Who’s Who
Note for IARFC members; this articleappeared in local papers in Virginia as a result of a press release sent by our member, Morey Sahr. It is anexcellent example of how a small article,created with little effort, can result inpowerful image building results.
Many of Morey’s clients and friends commented to him about seeing thearticle that appeared, usuallyaccompanied by his photo. Naturally the complimented his other publicrelations activities and naturally produced some business for him.
Contact: 434 970 [email protected]
There is one straight road to success inselling. It’s paved with knowledge.Competency never lacks opportunity.
You create a future, characterized byhigh performance and fulfillment, bymaking a responsible commitment tothink right, work right, sell right, studyright, and live right. Here are tenstrategies for forming the habit ofstudying right.
Be a student of your profession.
In a world of change, you are nevercompletely educated. You must keepeducating yourself to cope with change.The more you learn about your job, theless fear there is. Fear is born out ofignorance. Your study must include theprinciples of salesmanship as well asall the technical areas.
Prepare well.
Spectacular performances are alwayspreceded by spectacular preparation.Cultivate the will to prepare.
Develop a mentor.
When selecting a mentor, search for theindividual traveling “the same road” you’retraveling — and one who is out in front!
Watch your self-talk.
Self-talk shapes your selling life. Takecharge of your thoughts. Monitor what youare telling yourself about your situationand about your potential in selling.
Stay brilliant on the basics.
Rely on these fundamentals: Buildcredibility, be well mannered, simplifyyour recommendations, speakprospect’s language, speak as onehaving authority, sell at your buyer’space, avoid exaggeration and dogmaticstatements, use repetition, make it theprospect’s idea, summarizestrategically, and close with confidence.
Achieve competency levels.
Become known for what you know.This is the high payoff. Now, yourreputation precedes you.
Write effectively.
Simplicity is the formula for successfulcommunication.
Develop the slight edge.
This principle has to do with what aslight improvement in one skill can do to
Study Right — Advice from Kinder Brothers International
your performance over a period of time.
Out-distance competition.
To out-distance your competition youmust learn more and better ways to out-serve them. You then become your ownbest recommendation.
Build your Research and Development Department.
Develop a library of sales supportmaterial to stay current on yourproducts and keep you sharp on newselling techniques. Subscribe to salespublications, and utilize the resourcesavailable on the Internet.
Kinder Brothers International teachessales and management professionalshow to experience lasting success.Both Jack and Garry are members ofthe IARFC and authors of books andcourses on financial services.
Their associate, Bill Moore, delivers theProfession Patterns course and isdeveloping the Registered FinancialManager workshop.
Contact: 927 380 [email protected]
Page 22 The Register • May 2007
Many financial advisors put marketing onthe back burner because they don’t knowwhat to do to drive traffic and inquiriesabout their services. Many practice inrelative obscurity, depending on referralsthat trickle in. There are many ways toramp up your marketing strategies to buildreputation, referrals and revenues thatcan be both relatively easy and fun! Manyof these ideas are web based.
Every idea will not work for you and yourparticular situation, but here are ideas inthree categories, selling what you do notdo, creating community, and going whereyour prospects go.
Selling What You Do Not Do
An advisor determined that he wanted toreach all of the parents of the LittleLeague teams his sons played on andagainst. He made up a business cardwith his website address and promisedpictures of every game he attended andall the scores in the league. He handed itout to parents at every game. Gamepictures and scores were prominent onhis home page. The buzz about hiswebsite and business ultimately led toquestions that led to clients.
Many advisors have important olderclients they wish were Internet savvy soimportant messages could be sent by e-mail. An advisor in North Carolina heldpizza parties for his senior high net worthclients, using the time to have his IT teamshow the seniors how the Internet worksand giving them advice on getting online.For his very best clients, the IT team madea home visit to install new computers andget the clients online. Seniors do twothings very well on the Internet —communicate with their grandchildren andcheck their portfolios.
Creating Community
Keeping a list of local art exhibits on hiswebsite let one advisor become wellknown for his calendar of art and theaterevents. His wife was a well-known potter,creating high end ceramics. He chose aunique piece of her pottery to feature onhis website every month.
Other advisors have discovered that theirclients and prospects are enthusiasticgrandparents and have a nearly insatiabledesire to find activities that are age-appropriate for grandchildren. What anadded-value service that everyone in youroffice can contribute information for, to beposted on your website!
You can choose to be “information central”for activities you and your family enjoy andcreate a community of people who visityour website for information that isgathered and written specifically for them.
Going Where Your Prospects Go
Affinity marketing has always worked wellin the financial planning industry.Consultants recommend that advisorsmarket to prospects that share the samesports and hobbies. This is good advicewhether your passion is restoring woodenboats, riding antique Harleys, floating in
hot air balloons, or riding in parades ofrestored antique cars. Each of theseactivities takes significant assets.
Look at your activities and the friends andcolleagues you rub shoulders with on aregular basis. It’s a good bet that manyhave assets to invest. Collecting oldlicense plates might not be the activitythat gets you close to someone in need offinancial planning assistance, but antiquemap collectors are another matter.
Periodic small ads in high-end programs(museum openings, art shows, symphony)are important for staying in the minds ofyour prospects. Buy a small ad, develop aprovocative question and direct thecurious to your website. Promoting yourwebsite in situations where prospectsgather allows you to attract their attentionto the full range of services you describeon your website.
Be Unique
Whatever route you choose, there aremany ways a small firm can attractattention locally without largeexpenditures. Think strategically andcarefully. You can create a low-costmarketing effort that will reach your target prospects. The effect of theseactivities is cumulative and repetition is important.
Lisbeth Wiley Chapman, Ink&Air, delivers clients and assets to investmentadvisory & financial services firmsthrough a blend of media and webcommunications strategies. She is theauthor of “Get Media Smart! Build YourReputation, Referrals & Revenues WithMedia Marketing,” a professionaldevelopment program.
Contact: 508 479 [email protected]
How Small Firms Can Make a Large Local Splash
Lisbeth Wiley Chapman
The Register • May 2007 Page 23
Display the IARFC Code of EthicsWhere does the IARFC stand? We solidly re-affirm our Code of Ethics. The simple,straightforward Code of Ethics is easily and clearly understood by consumers as well asother professional advisors visiting your office.
Proudly Display your Code of Ethics Plaque in the entrance of your office, waiting area,or in the room where you meet with clients. The Code of Ethics is handsomely placedbehind clear plastic on a walnut base, to hang or stand on a table.
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In 2005 Jerry Reiter, Chairman ofFinancial Advisors Legal Association (FALegal) and Financial Advisors AssuranceSelect, RRG gave a spellbindingpresentation at the Financial AdvisorsForum. This year he will again explain whylitigation is the greatest threat facingfinancial advisors, and what to do aboutit. Jerry’s successful experienceencompasses securities, insurance,regulatory, due diligence, compliance, andlegal issues — all related to the financialservices industry. For over 25-years hehas consulted and trained financialprofessionals from all specialty disciplines.Reiter serves as a contracted duediligence advisor to broker dealers.
His comments, evaluations, and publishedarticles relating to risk prevention issuesregarding financial professionals arepublished in The Wall Street Journal,Financial Advisor, Financial Services JournalOn-Line, Registered Representative,Investment Advisor, Horses Mouth, On WallStreet, Agent Media News, Advisors Edge(Canada), Senior Market Advisor, and DowJones Newsletter.
Reiter is a popular keynote speaker for major industry gatherings of financial professionals, such as the IARFC, FPA, NAIFA, SFSP, MDRT andbroker/dealer CE events.
Jerry Reiter served as the lead consultantin the development and design of thefamous eDefense Manager — a webbased tool to assist financial professionalsin structuring their practices to avoid andprevail against litigious attacks fromclients and regulatory agencies.
Cato: Research shows that clients ofRFCs are concerned, and often angry,about high federal taxes! Do you haveany comments on the IRS or federaltaxation today?
Reiter: Taxation has always been acritical component in the ability to plan fora client’s future. I don’t anticipatebeneficial change to the existing codes inthe near future, but we can always hope.Currently, there has been somemomentum in Congress regarding aNational Retail Sales Tax (NRST), alsodubbed the “Fair Tax.” The Value AddedTax (VAT) is another proposal beingbantered about. Both proposals areattempts at tax simplification. Pastattempts at tax simplification haveresulted in a more complex and morecumbersome system.
Obviously, any form of tax simplification is controversial and will inspire national debate. After all most Registerreaders are in favor of a federal taxsystem that would be much more fair, lessintrusive, and highly simplified, but don’thold your breath. Our Founding Fathersobjected to taxation withoutrepresentation. They should see it todaywith representation. The good news isthat while in transition a different taxwould create numerous planningopportunities for financial advisors.
What should RFC’s do to takeadvantage of the valuable and exclusiveopportunities available from FA Legal?
Since Register readers are financialservice professionals — they should joinour Association to better protectthemselves and their futures. There ispower in numbers, which makesaffordable benefits that are critical to theirlivelihood with respect to litigationprevention and defense.
Please elaborate on how FA Legalrelates to the typical RFC?
FA Legal is the industry leader in litigationprevention and legal defense to individualfinancial professionals. We focus onprevention. The old saying; “An ounce ofprevention is worth a pound of cure”especially applies to this industry. FALegal provides tools to make theapplication of systems to prevent andprevail against litigation — easy and
virtually brainless. Our systems areconsidered by many to be the GoldStandard with respect to “bullet proofing”a financial practice against a legal attack.
Are Registered Financial Consultantsamong FA Legal members?
Yes, members of the IARFC are among themembership and more RFC’s join us eachyear. The leaders of the industries arenow joining in record numbers. Most ofour members are among the top twentypercent of producers.
We are filling a valuable need, a criticalneed, an essential need, plus an urgentneed. The majority of our growth hascome from member referrals. I would liketo say this growth has been the result ofdynamic leadership, but that wouldn’t bethe case. We concentrate on deliveringexemplary services within an affordablepackage that appeals to all financialprofessionals. By giving exemplary service — the rest takes care of itself.
You Must Have Practical And Accurate Information!
Please comment on the value of theRegister for you and your staff?
Today, applicable information is the key tosuccess. Financial professionals areinundated with financial periodicals that,in my opinion, don’t always deal withpertinent issues. Time is not only critical — time is a valuable commodity! A financial professional can’t afford towaste time reading voluminous articlesthat are more fluff than substance.Today’s financial advisors need practicalinformation they can trust and use.
What are your non-business interests?
My family is first and foremost. I’m proudof my wife, two sons and two grandsons. I also value quiet time. Preferably, thistime being spent riding through themountains on a motorcycle. Reading isalso important to me. However any way to compete, be it card games or athletics,is a major release from the stresses of the day.
From a business standpoint, what areyou the most proud of?
You Can Prevail Against Legal AttacksHow To Protect Yourself from Litigious Clients An interview by Forrest Wallace Cato
Jerry Reiter
continued on page 25Page 24 The Register • May 2007
continued from page 24 Prevail Against Legal Attacks
Many would consider my approach tobusiness to be unconventional. I’m proudof being able to break the typical businessmodel by designing new ways to moreefficiently affect the end results for thegreater benefit. I do this by surroundingmyself with people that I consider more,intelligent, opinionated and who have skillsets outside my own. Giving up the creditfor an idea or concept is crucial inobtaining long-term success.
Discipline, work ethic, and not beingafraid of risk, have been most critical tomy personal progress. Some of theseattributes are instilled early in life, butgetting comfortable with risk is always an internal battle. I don’t think anyone is truly comfortable with risk, but business today demands that risk beprudently managed.
Also, I’m not afraid of what people might think. There’s an old saying; “You wouldn’t worry what people think ofyou if you realized how little they did.”Many people don’t achieve their fullpotential for fear of what people may thinkof their idea or plan. All successful peoplehave failed and have suffered severecriticism. Getting comfortable with myideas and moving forward with a plan(even with the risk of failure and criticism)has been the primary component of mypersonal success.
What industry development are you themost displeased with?
Litigation! Our industry is experiencing alitigious epidemic! This epidemic nowaffects every decision we make. Litigationwill continue to hinder innovative businessideas and capital growth. The RFC isespecially at risk!
The leaders of the industry are joining FALegal in large numbers. Over three-fourths of the financial professionalsreading this interview are not members ofFA Legal. In the scope of influence Iwould consider that a failure. When halfof the financial professionals are utilizingour services to better protect themselves,then I would consider that I’ve had animportant positive influence.
The Greatest Hoax Among Advisors!
What is your advice for Register readerswho desire to excel?
According to the American BarAssociation, RFCs and other financialadvisors are the Number One Litigation
Target Today! You mustbe proactive in preparingyour practice forlitigation!
Many statistics nowidentify financialprofessionals as thenumber one litigioustargets of any or allprofessions — even overDoctors! Unfortunatelymany financialprofessionalsprocrastinate aboutdoing the things theyneed to do to achievepeace of mind.
Statistics also show thatit’s not a matter of IF butWHEN you will be sued!This is also the numberone reason a financialprofessional will beforced out of the business or go bankrupt.In order to excel in this business today youhave to do what you advise your client todo — be proactive! Joining our Associationis your major first step.
You Are Very Likely To Be Sued!
What are the reasons that so many ofthe most successful financial advisorsare members of FA Legal?
Leading professionals join to protectthemselves and their practice. They wantto be around to serve clients for the long-term. They are aware that the cost tosettle the average lawsuit is now overforty thousand dollars!
You can even be sued now for somethingyou did not do! Your obligations and your liabilities now follow you into your retirement and old age, even after you are no longer in business.Regulatory agencies increasingly placeyou at risk.
Responsible advisors plan carefully andintelligently for themselves and theirbusiness. Honest, responsible, careful,and knowledgeable planners are likely tobe litigated against. This includes RFC’swho are totally dedicated to the bestinterest of their clients.
What are the other options for aprofessional who is sued?
To disappear, to be wiped-out, to flee andhide, to go to prison, to receive huge fines,
The Register • May 2007 Page 25
continued on page 26
to lose your home and business andassets, to be emotionally destroyed.Those are not acceptable!
What irritates Jerry Reiter?
The arrogance of some financialprofessionals. These types say they don’tneed our services because they run a“clean business.” Well, I haven’t seenanyone who intentionally runs a “dirtybusiness.” Many say they don’t needmembership in the Financial AdvisorsLegal Association because they just dealwith “friends and family.”
We routinely see lawsuits against financialprofessionals who have been in thebusiness forty plus years, run a cleanbusiness, and deal only with friends andfamily. These claims come from sisters,brothers, in-laws, close friends, and frompeople they would least expect to initiatea lawsuit. Trying to convince some ofthese arrogant types that they are notbullet proof can be very irritating.
How do you invest your own money?
With a specific plan. The old saying, “Ifyou fail to plan – you plan to fail” stillapplies to all folks who invest today.Financial advisors need to be verysensitive to the fact that people are living longer. This fact alone couldadversely affect every client’s futurelifestyle. Recently, I attended aconvention of Doctors where the
continued from page 25 Prevail Against Legal Attacks
statement was made that if you are alivetoday the odds are greater than fifty-fiftythat you will outlive your parents by morethan twenty years.
If that statement proves true, one can only imagine the adverse affects thiscould have on retirement planning, social security, and health care, especially long-term care without aprudent financial plan. By addressingthese issues with my own parents it hasbecome apparent that length of life doesnot necessarily mean quality of life.These are critical issues that need to beaddressed with respect to investment andfinancial planning.
To me there is no “quick fix” with respectto investing. I’m a proponent of a long-term conservative investment plan thatwill achieve financial security. Thisdoesn’t mean that I stay away from risk,but I try to keep risk in perspective withmy long-term financial goals andobjectives. Needless to say, I utilize afinancial planner to keep me on track.
Have any inspirational, or salesimprovement speakers, influenced you?
Most such trainers are rehashing thesame ideas and techniques that a feworiginal trainers introduced decades ago.Today there are hundreds of motivationaltrainers that have produced thousands ofbooks, many self-published.
When utilizing this type of training it isimportant to understand that the mostrecent trainer does not necessarily havebetter techniques in this area. With thatsaid, I’ve found some trainers stand headand shoulders over the rest because theyimpart timeless applicable knowledge.Zig Ziglar, Napoleon Hill, and DaleCarnegie are three whose ideas andtechniques still apply to all.
I required both of my sons to attend aDale Carnegie course because it gavethem the tools and self-confidence topublicly present their ideas. To me youcan have the best ideas, but if you are nottrained to publicly present and motivatepeople with your ideas, you will find itdifficult to advance in your career.
How important is it for agents and planners to work with otherfinancial disciplines?
Presently it is essential for broker dealers, tax accountants, bank trustofficers, tax lawyers, tangible investmentadvisors, estate administrators, recovery lawyers, appropriate bankers,and related specialist to work as a teamcoordinated by the financial planner. This is very important.
Today the financial professional will find italmost impossible to be all things to alltheir clients. It’s important to establish aqualified network of individuals whospecialize in the various financialdisciplines. This approach to businessfrees up time and reduces liability.Furthermore, you are doing what’s rightfor the client. You may have to share thewealth, but I’ve discovered thatprofessional relationships of this type aremuch more beneficial financially.
What do you like most about the RFC’syou work with?
Besides their tremendous work ethic,discipline, and sense of humor, it wouldbe their intelligence. I continually learnsomething from the people I work with.I’m proud to be surrounded by individualswho are striving for the same causes and can contribute in areas where I amless capable.
What do you think the future will bring forfinancial planners and insurance agents?
More litigation, but also more opportunity.Successful people get sued. Financialprofessionals include manysuccessful people.Thus they attractlitigation! This goes with the turf!However for those that are prepared and ready for battle the spoils are many.
Do you see opportunities for RFC’s as aresult of evolving technology?
Most certainly! Technology today has freed up time and money onceexpended for administration and related mundane tasks. Time is our most valuable commodity andtechnological advancements have freedup more time to be more productive, not only in business, but in our personallives as well.
Many financial professionals now are attending educational seminars via the web whereas before they would have been forced to fly to adestination and waste valuable moneyand time attending the same seminar.Technology will continue to embolden us with more time to spend on how wesee fit and to be continually more andmore productive.
The client has changed from having apersonality to being evaluated onactuarial numbers by many publiccompanies. This opens a hugeopportunity for financial professionals tofill this gap. I believe in high tech, but Ialso believe in high touch. Many peopletoday feel out of touch — unimportant —or just a number.
Large institutions will always struggle with the difficult task of commoditizingtheir business and also maintaining hightouch with their customers. Financialprofessionals can fill this need through a partnership arrangement to their mutual benefit.
Do you see any special opportunities forRFC’s in the coming economy?
Over the next decade we will experiencechange that will surpass the last fiftyyears. For those prepared this change willcreate many opportunities. For example, Ipredict major changes in social security,foreign currencies, and longevity throughmedical breakthroughs, communicationtechnology, accounting rules, andtaxation. These changes will create manyopportunities and demand for personalfinancial expertise.
Are there options today for RFCs to change their practice that will provide protection?
Litigation is the number one reason afinancial professional will go out of
Page 26 The Register • May 2007
continued on page 27
continued from page 26 Prevail Against Legal Attacks
business or bankrupt! To me there is nothing more lucrative than keepingwhat you’ve worked hard for. The firstchange a financial professional needs tomake is a change in his or her mindset tobe proactive in order to prepare andprotect their livelihood. Voluntaryassociations have offered affordable ways for many to take advantage ofeconomies of scale for this protection.Our association has proven to be alucrative decision for financialprofessionals across our nation.
To Succeed You Can Not Be Intimidated!
To succeed in this life you cannot beintimidated by anyone. Everyone cameinto this world naked and will leave thesame way. I’ve been fortunate to knowand have friendships with many verysuccessful people only because I’munafraid to speak with them. I’ve alsodiscovered that no matter how successfulsomeone is (or what league they thinkthey’re in) they can always use at leastone more friend. I’m no exception to thisrule.
To Sell More You Must Educate Your Prospects!
Educational seminars for your prospectsresult in sales to clients! Today there isinformation overload. People are strivingto learn more, but they feel out of touchand confused. This can be veryfrustrating. You can create more salesopportunities by first giving a clienteducation and then selling them aproduct or service.
What is the most important advice youcan give to RFC’s about how to improvetheir service and sales?
To enhance your level of service go towww.falegal.com and learn how to protectyourself and your practice so you will be inbusiness for long-term relationships withyour clients. To increase sales -- educateyour prospects! Don’t always try to sellevery time you encounter a client orprospect. Be a resource for usefulinformation and become a mentor! In ourfast-changing environment people arerealizing that they don’t know all that theyshould know or understand.
Many people feel overwhelmed. Ourpolitical process and government systemshave taught many American citizens to be suspicious. By establishing yourselfas a trusted mentor dedicated to your prospects or client’s best interest,
you will solidify relationships and receivereferrals beyond your wildest dreams.Trusted people and trusted professionalsare rare today.
Has the Internet been helpful for you inmarketing FA Legal services?
Yes. We established a website from theinception of FA Legal. Our eDefenseManager is a web-based tool to “bulletproof” our members from groundless legalattacks from a client. By utilizing theInternet we are able to issue ourmembers legislative and regulatoryupdates in real time. This is extremelyimportant in today’s businessenvironment where a financial advisorcould be held accountable for notknowing critical information. With theInternet we are able to keep our membersahead of the curve with respect toknowledge management. Our websitecertainly helps us quickly explain ourbenefits and service to financial plannersand insurance agents.
What are FA Legal’s future plans?
To constantly increase benefits to ourmembers. As our Association grows weare able to impart more benefits withoutincreasing membership fees. Thiseconomy of scale is the advantage ofvoluntary associations. In short, there is“power in numbers.” The Association isrolling out an insurance product to ensurefinancial professionals nationwide.
The E&O Hoax
What do you consider a great hoax in the insurance or financial planning industry?
It’s the perception that if the financialprofessional has Errors and Omissions(E&O) insurance then they are protectedfrom litigation and liability. This is far fromreality! Today, E&O has exclusions andlimitations that many financialprofessionals are not aware of, especiallywith respect to legal defense.
Has sustaining the same level of FA Legal subscribers become moredifficult each year?
Actually, the litigious environment has resulted in incredible growth for our association. We are filling a need with litigation prevention and defensetools for financial professionals. I don’tsee litigation declining anytime in the future. They are going to have to
deal with this problem if they want to stay in business.
What is the biggest change you haveexperienced in your specialty disciplineduring the last twenty years?
The biggest change has been the abilityfor lawyers to advertise. This has had,and will continue to have, an adverseaffect on the financial industry, as well asthe country. It used to be lawyers werenot allowed to advertise, but today legaladvertisements outnumber most all otherforms of advertising both in volume andexpenditure. If you don’t believe me, lookat the yellow pages!
Obviously, when you advertise something,you anticipate that you will sell more ofthe product or service you advertise.Legal services and litigation is noexception!
Lawyers are constantly advertising formore litigation, mostly on a contingencybasis. You can chart the dramaticincrease in lawsuits back to the pointwhen lawyers were allowed to advertise.This advertising encompasses TV, radio,newspapers, magazines, yellow pages,and the Internet.
Over A Million Websites PromoteLawyers Who Are Seeking To Sue You!
There are now over one million websiteswith lawyers advertising for clients to suetheir financial advisor. This is a majorchange that has adversely affected thefinancial industry making financialplanners and insurance agents thenumber one litigious target.
Since many of the claims againstfinancial professionals are groundless —tort reform would be our most beneficialchange. “Loser pays” would inhibit theability of clients to legally attack theirfinancial advisor on a contingency basis.This would help reduce claims and holdthe client, and their lawyers, financiallyaccountable for their groundless actions.But, don’t hold your breath…
Be sure to be in the audience at theFinancial Advisors Forum May 15-17 when Jerry will be a speaker. The officesof FA Legal are located in Las Vegas.
Contact: 800 261 [email protected]
The Register • May 2007 Page 27
Local Internet search is one of the fastestgrowing areas of “search marketing,” andis especially relevant to businesses thatprovide financial services. People arelearning to search for services while usingthe search engines, narrowing theirsearch to a specific city or region. It’s as simple as adding those terms along with the rest of the search phrase.People are also learning to use GoogleMaps (maps.google.com), Local Yahoo(local.yahoo.com), Ask City (city.ask.com)and other local directories to quickly focusin on their region.
Maybe they can find you!! The biggestlocal search tool is Google Maps, and many of you have probably alreadyused it to find maps for specificaddresses. If you have a website, it isimportant that you make sure yourbusiness and website addresses are inthis directory. Google Maps is quitedifferent from the regular Google search, because it has a map feature (as do the other big local directories).Google also allows businesses to registerand control the listing information. Best of all, it will cost you nothing. That’s right — nothing!
There is no doubt that search marketing is very complex, but you can whittle away at it, and make steady progress with your online visibility, beginning withsome of the most important tasks.Google Maps is right up there at thepinnacle of importance.
See if You’re Already There
Google gets much of its listing informationfrom other online directories and sources.
So your firm may already be listed. The first step is to check it out athttp://maps.google.com. Enter yourcompany name, city, and state in thesearch window.
If your company name appears in thelisting, click on “more info.” Then reviewthe details of your listing to check foraccuracy. If anything is incorrect orincomplete, scroll all the way down thepage to “Edit this Listing.”
For example, website addresses are oftenmissing in local directories. This is aHUGE missed opportunity. You want asmany incoming links to your website aspossible. In this case, the link is comingfrom a very highly ranked source, so it is aVERY GOOD link, in addition to being asearch channel.
You will need to have a Google account, orwill set up a new Google account with apassword to make any changes to thelisting information. Simply follow the step-by-step instructions provided. Google will send you a PIN number toeither your office phone number or officeaddress to verify that you are authorizedto make the changes.
What if You’re Not Listed with Google?
Not to worry. Simply access your Google account or create a new one ifneeded. Remember to file and keep your e-mail and password information for this and all the directories on whichyou will be posting your companyinformation. Then go back tomaps.google.com, sign in, and click on “Add/Edit Your Business.”
Google will walk you through the process.Whether you are adding a new listing orediting a current listing, be sure toindicate as many categories as you canfor your business. You will be prompted toenter category terms, and Google will listpossible relevant options.
To get a feel for how this search tool is structured, enter a search term such as “financial advisors” along with your city and state, and see the listingsthat appear. Browse around a bit, and click on the “more info” text that is next to the other listings. Notice how some have website addresses indicated, but many do not.
Are You on the Map?Make Sure You Are on Google Maps
Sylvia Todor
Page 28 The Register • May 2007
As mentioned earlier, it is very importantthat your website addresses is includedwith your listing.
Click on the “Help” text in the upper rightcorner, and read some of the topics. Itwill give you a good idea of how simple itis to use this tool, and to get yourbusiness listed or updated.
Look at some of the other websites that are listed directly beneath the map of a specific listing. Often, these are other online directories. You may beable to list your business with thosedirectories and online yellow pages, as well. Visit some of them, and look for a place to sign in or set up youraccount. As with Google Maps, thereoften is no fee to add your listing.
Also notice how some “Sponsored Links”appear at the bottoms of these pages.These are paid insertions through theGoogle Adwords program, where theadvertiser has specified a geographicarea in which the ads will appear. Theadvertiser only pays when someone clickson the ad. Also, the advertiser specifiesthe amount paid for each click, and thetotal daily budget. For local Adwordscampaigns there often isn’t muchcompetition, so the cost-per-click mightonly be a few cents each.
Spending a little bit of time each week onyour website marketing efforts will slowlybut steadily improve your online visibility.For more tips on Internet marketing, visitwww.iarfcwebsites.com, and go toCustomer Central, and click on theMarketing Tips.
Sylvia Todor is the Marketing Director forFinancial Visions, an IARFC technologypartner that creates affordable, high-content websites. To view the websitethat hundreds of RFCs are using toconnect either prospects and clients, visit www.iarfcwebsites.com.
To learn more Internet ideas, attend theFinancial Visions workshop at the IARFCFinancial Advisors Forum, May 15-17 inLas Vegas, www.IARFC.org
Contact: 800 593 9228 [email protected]
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My signature indicates that I have read the cruise/conference policies and fully understand the charges involved, and if requested above, I am autho-rizing the amount indicated to be charged to my credit card. I agree to the terms and conditions of the IARFC Cruise/Conference refund policy.
IARFC Cruise Conference
Get Your CE at Sea
Vancouver, British Columbia to Seward, Alaska August 17—24, 2007 on the award winning Summit Celebrity Ship. Appropriately named, Summit will leave you feeling as if you’ve reached the absolute pinnacle of premium cruising. Large in size, yet intimately elegant in ambience, Summit boasts all the services and amenities that have made Celebrity the preferred choice of avid cruisers around the world. Come aboard and scale the heights of luxury on Summit.
This cruise features the most famous of Inside Passages in the world, virtu-ally everything you come to Alaska hoping to see, including rain forests, gla-ciers, fjords, American Eagles, bears and majestic white-capped peaks. All of which create a setting that’s perfect for viewing whales and sea lions.
� Vancouver, British Columbia � Juneau, Alaska
� The Inside Passage � Ketchikan, Alaska
� Icy Strait Point, Alaska � Seward, Alaska
� Skagway, Alaska � Glacier Bay
Professional Continuing Education. The presenters and the attendees will be among the most elite in the financial services profession: authors of many books, articles and popular speak-ers. You will spend seven exciting days and evenings in the com-pany of the world’s leading professional advisors.
Optional Pre and Post Tours. You can extend your trip in the beautiful city of Vancouver, in Anchorage or take the scenic train to Denali Park.
Airfare is not included in any of the quoted cruise prices. Consider using your frequent flyer credits. Contact Talgood Travel for airfare and the pre– and post– cruise options at: 877 651 9997
Deposit of $500 per person to secure space availability for a stateroom. Final payment is due May 25, 2007.
Cruise and IARFC Registration Refunds. Until April 1 — 25% penalty. April 1 - June 6 penalty of 40%. June 7 - July 15 - 50% penalty. After August 8 non refundable. You can purchase insurance (through Talgood or another agent) to cover unfore-seen medical circumstances that might require trip cancellation.
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Kosta Rafaletos, Afrodite Laoudi,John Pappas, Katia Vanden
Berghe, Christina Vlahaki, SavvasAveropoulos, Aggelos Fragiadakis,
the President of the ASPIS TopAgent Club Niko Kechagiaoglouand the former President NikoDermitzakis, Kosta Valavanis,
Kosta Panajiotides, IrenePapadopoulou, Simeon Makedos,
Antony Zyrilios, DemetreNikolaides and John Zervoudakis.
Greece Graduation