feed - Part 102

MailBag: How To Get Started On Twitter As A Busy Financial Planner

March 28, 2013 11:03 am 7 Comments CATEGORY: MailBag

Many readers of this blog contact me directly with questions and comments. While often the responses are very specific to a particular circumstance, occasionally the subject matter is general enough that it might be of interest to others as well. Accordingly, I will occasionally post a new "MailBag" article, presenting the question or comment (on a strictly anonymous basis!) and my response, in the hopes that the discussion may be useful food for thought.

In this week's MailBag, we look at a question about how to get started using Twitter (and other social media) as a busy financial planner. What are the tools for efficiency, and what are the tips and tricks to get started easily?

Weekend Reading for Financial Planners (Mar 23-24) – Practice Management Edition!

March 22, 2013 04:01 pm 1 Comment CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's issue is focuses on practice and career management issues, and starts off with some notable regulatory news, including a discussion of whether the landscape is shifting for potential adviser oversight as Congresswoman Maxine Waters may re-introduce SEC user fee legislation in the coming days that could put FINRA on the defensive, and some updated guidance from the SEC on the use of social media that should make it easier for advisors under an RIA to use social media.

From there, we have a long list of practice management articles, including a review of a recent Schwab survey that shows the primary desire of young advisors is to work with clients (sooner rather than later), a discussion by Angie Herbers about how to restructure your firm's org chart to facilitate associate advisors getting more face time with clients, some insights from Philip Palaveev about the importance of balancing both practice management research and good old trial-and-error to improve your firm, a look at some of the challenges to consider for brokers who wish to break away and transition to independence, and how to handle prospective situations where friends and family want a discount.

There are also two technology articles, including some guidance from Bill Winterberg about how to get a better return on investing in your website by going a step beyond just making it look prettier and being more mobile-friendly, and a discussion by consultant Craig Iskowitz about how client portals are changing and a look at the JunxureCRM ClientView platform in particular.

We wrap up with three articles: the first is from the Harvard Business Review blog, providing some guidance and advice about why you should not try too hard to fast-track your career; the second by Philip Palaveev suggesting that it's time to stop talking about "practice management" and start looking at "business management" instead; and the last is a nice list of productivity and anti-procrastination tips and techniques from Psychology Today - including a few common ideas, but also a few you may not have seen before.

Enjoy the reading!

News Highlight – SEC Issues Request For Cost-Benefit Analysis Information on Uniform Fiduciary Standard

March 5, 2013 03:01 pm 1 Comment CATEGORY: Planning Profession

In the next key step of the progression towards a uniform fiduciary standard for all brokers and investment advisers in the delivery of personalized investment advice, the SEC has issued a request for data and information to conduct a cost-benefit analysis on the potential consequences of implementing such a rule. The analysis is expected to include not only an evaluation of the potential benefits to the consumer, and costs to the industry (which become indirect costs to consumers as well), but also the prospect costs and benefits of various approaches to harmonize regulation and oversight between the rules-based broker-dealer system and the principles-based fiduciary RIA approach.

What the outcome of the cost-benefit analyses will be, though, is still anyone's guess. While fiduciary advocates tend to emphasize the weaker advice and conflicts of interest inherent in the broker suitability framework, it's less clear how to precisely quantify the financial impact of such conflicts, and the exact amount that consumers could benefit from a fiduciary standard. Yet the reality seems to be that demonstrating a cost-benefit analysis that favors consumers may be crucial if fiduciary rulemaking is to move forward.

On the other hand, a strong cost-benefit analysis may show surprising results as well - for instance, is it really true that the fiduciary model is more costly, or could it actually be less costly to administer as so many gray ambiguous areas that result in consumer complaints would simply be outright disallowed? If the fiduciary model is more costly, why are so many brokers breaking away to start independent RIAs that appear to be more profitable, not less? Why is it that the volume of complaints appears to be greater against suitability-based brokers than fiduciary-based investment advisers if fiduciary is really a "higher cost" model? Could the truth really be that a higher standard that eliminates ambiguity may actually result in lower costs to consumers?

Ultimately, the comment period will remain open for four months, so expect to hear a lot more about this issue as various organizations submit their own cost-benefit studies. And if you're interested, you can submit your own comments as well through the SEC's website.

Weekend Reading for Financial Planners (Mar 2-3)

March 1, 2013 07:01 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's issue starts off with a few regulatory articles, including a discussion of the SEC's regulatory examination priorities for 2013 - with a special warning to hybrid advisors - and a look at whether RIA firms need to reconsider how they check off the boxes of what services they offer on their From ADVs.

From there, we look at a few practice management and business succession articles, including a look at the HighTower model used to acquire advisory firms, a look at the so-called "valuation gap" between what most advisors think their firms are worth and what a buyer is really willing to pay for them, and a very frank discussion from a veteran advisor who has been through four failed succession planning attempts and can speak first-hand to the problems that arise in the process. We also have two technology-related articles, including a nice recap of the financial planning software panel from the recent Technology Tools for Today (T3) conference, and an industry-star-studded technology trends roundtable from the Journal of Financial Planning.

In additon, there are a couple of retirement planning articles this week, including a look at the top 5 issues in retirement research and policy, a fascinating analysis from Moshe Milevsky showing how the best strategy for variable annuity guaranteed income riders may be to start taking withdrawals immediately (even if the client doesn't need them!), and an analysis from retirement researcher Wade Pfau on whether we may be over-projecting retirement returns.

We wrap up with two much lighter articles: the first provides a great reminder that a client complaint should be viewed as an opportunity to improve your business for all your clients, and the second provides an important reminder of the value of saying "thank you" from time to time, whether to a boss, co-worker, or especially employee; while offering nice pay and benefits (and a job in the first place) is a great start, don't underestimate the positive motivating effects of showing simple gratitude, too. Enjoy the reading!

Weekend Reading for Financial Planners (Feb 23-24)

February 22, 2013 09:01 pm 2 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's issue starts off with a great article for newer advisors (although experienced practitioners will it relevant as well!), providing guidance on how to cultivate new relationships with centers of influence.

From there, we look at a number of practice management articles, including one looking at the costs and challenges of starting up an independent advisory firm, another that includes an interesting discussion of whether the new training programs being rolled out by large firms will help to bring in the next generation of advisors or is more like rearranging deck chairs on a sinking wirehouse Titanic, a third providing a fantastic summary of the various rebalancing software platforms discussed at the Technology Tools for Today (T3) conference, and the last an interview with technology consultant Bill Winterberg.

We also have a few more technical articles on advanced financial planning issues, including one from Jon Guyton on how to structure client retirement accounts to help them manage their own discretionary expenses (so the planner isn't stuck in the position of parenting client spending), another from Wade Pfau looking at how to craft an "efficient frontier" of retirement income products, a discussion of a recent tax court case the IRS lost that may lead to a significant boost in deferred private annuity estate planning strategies, and a look at how managing online accounts (or just trying to access them!) after death can lead to a lot of new world estate planning problems.

We wrap up with three very interesting articles: the first takes a deep look at the history of hyperinflations for the past century and how the government just printing money alone does not lead to an inflationary spiral; the second takes a look at how to rebuild consumer trust in financial services globally, making the notable point that just increasing disclosures may provide more/better information to consumers but may also be providing them more reasons not to trust; and the last providing a poignant reminder for all planners that being a good advisor also means living your own advice, which means make sure your own financial house is in order and that you're fitting your business into your life, not the other way around. Enjoy the reading!

Weekend Reading for Financial Planners (Feb 2-3)

February 1, 2013 07:30 pm 1 Comment CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's issues starts off with a fascinating article that studied brain images of investors working with CFPs or non-CFPs in volatile markets, and found that those following a CFP-credentialed advisor were more likely to stick with the advice and less likely to second guess than with a non-credentialed advisor. A second article looks further at some recent brain research and what it's beginning to tell us about not just how clients behave in general, but about how they interact with advisors and why they often don't implement an advisor's recommendations.

From there, we look at a few articles on the regulatory front, including one that suggests the SEC's recent crackdown on advisors misrepresenting AUM may be partially the regulator's own fault for having such a poor and ambiguous definition of what constitutes AUM in today's complex marketplace, a second looking at how fiduciary rulemaking is very likely to proceed this year from the DOL even if the SEC's own rulemaking progress has slowed, and a third striking piece by Don Trone suggesting that the real roadblock to moving forward on the fiduciary issue is that fiduciary advocates are spending too much time talking about principles the industry already agrees with and not enough time focusing on developing the fiduciary best practices and safe harbors that are really necessary for wider fiduciary adoption.

We also have a few technical articles this week, including guidance from Joe Tomlinson about how to craft better asset class return expectations for financial plans, a fascinating look from John Hussman at how the "great rotation" from bonds to stocks is a myth, a look at how "career asset management" is a new frontier for financial planners to deliver value to clients, and a deep look at the new "play or pay" tax rules for employers offering health insurance (or not) that will kick in starting next year.

We wrap up with three articles looking more broadly at the industry - the first suggests that financial advisor conferences are broken and need to be fixed (with a few suggestions about how to do so), and the last two provide a striking look at the research that's come out in recent years trying to quantify whether or how much value financial advisors really bring to the table for their clients - research that shows promising signs for the value of a financial planner, but research that is unfortunately confounded by the fact that apparently researchers often can't tell who's an advisor and who's a salesperson any more than consumers can! Enjoy the reading!

Weekend Reading for Financial Planners (Jan 19-20) – Practice Management Edition!

January 18, 2013 06:01 pm 3 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's "Practice Management" edition starts off with a nice Journal of Financial Planning Focus article by marketing consultant Stephen Wershing about how to refine your referral process to improve growth, a great list of tools for digital age marketing from technology consultant Bill Winterberg, and a good reminder that digital age marketing strategies should focus not just on building social media followers but ultimately converting them into clients. From there, we look at an interesting article about the rise of "wealth databases" that advisors can engage to find affluent prospective clients, a profile of some firms that are aiming to serve younger clients not just with different services but an entirely different office atmosphere, and a review from Bill Winterberg about the Fox Financial Planning Network and the resources it provides to help firms with workflow efficiency.

We also look at a few articles highlighting some of the difficult challenges that advisors face, including two warnings from both Mark Tibergien and Angie Herbers that the advisor marketplace is becoming more challenging and competitive and that advisors and the vendors who serve them must step up to compete, a discussion from Pinnacle Advisor Solutions highlighting the emerging number of outsourcing providers that are trying to help advisors get past the growth wall, and a look at how some advisors are joining close-knit study groups where they "open the kimono" and share everything in an intimate group setting to get feedback about how to improve their businesses and professional lives.

We wrap up with two interesting articles: the first suggests that while financial planning is slowly moving beyond just focusing on the numbers to look at client personal issues, we're still a long way from truly integrating behavioral finance and a more holistic look at well-being; and another that shows how storytelling may be a more effective way to activate our brains, which is relevant for everything from marketing your services to prospects to helping persuade clients to change their behaviors and implement your recommendations. Enjoy the reading!

Why Every Financial Planner With A Blog Needs A Google+ Page, Now

December 17, 2012 12:03 pm 11 Comments CATEGORY: Marketing

As consumers increasingly turn to the internet for information about potential products, the ability of a company and its products to turn up at the top of search engine results is increasingly crucial for success and growth - leading to an explosion of consultants that will help companies with their "Search Engine Optimization" (SEO) to ensure that their products and services come up first. A similar process occurs when consumers search for information about services and people to work with, although the process is more complicated due to the fact that many experts may appear prominently on lots of sites, not all of which are necessarily tied to their business.

To better understand not just where influential content is, but the influential people who create it, Google has begun to develop a new system for its search engines to track authors and determine who's influential, called "AuthorRank", which is intended to supplement the "PageRank" algorithms it uses to identify and rank influential websites and content. The upshot of this change is that for the first time ever, financial planners and other service professionals will be able to start establishing their own online "webutation" as they tie content they have produced to their personal profile and business, regardless of where it is published. The caveat, though, is that Google accomplishes "Google Authorship" tracking by having authors tie their content and websites to a specific Google+ profile - which means any financial planners that produce a blog or other content who hadn't already established a Google+ profile need to go create one, now!

Weekend Reading for Financial Planners (Dec 8-9)

December 7, 2012 07:30 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's edition starts off with a few big industry news items, including NAPFA's decision to restrict membership to only CFP certificants, the CFP Board's decision to NOT implement the proposed CE changes put forth earlier in the year, and a look at the SEC's announcements of what it intends to focus on next year - which still includes a uniform fiduciary standard for advisers and brokers. From there, we look at a number of additional articles about industry developments, including a review of the coming financial services reforms in the UK that will take effect in 2013 (and how it may become a template for future reform here in the US), an advisor who was ordered to pay $1.8M and may become barred from the industry BECAUSE he bought and held certain ETFs for his clients, an update from Investment Advisor magazine about whether the CFP Board's public awareness campaign is having any results, and a continuing discussion from Bob Veres about the industry's attempts to define who is a "real" financial planner. We wrap up with a few more offbeat articles, including a striking marketing discussion from Stephen Wershing that points out how a good brand should actually repel more prospects than it attracts, a review of election statistics guru Nate Silver's book and how it may be relevant for advisors, a look at how conflicts of interest are creating problems in dentistry despite the fact they generally are "fee-only" providers of services to their patients, and a discussion from financial planner Carl Richards about why financial planners should themselves be hiring financial planners. Enjoy the reading!

Weekend Reading for Financial Planners (Dec 1-2)

November 30, 2012 07:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's edition starts off with a negative review of President Obama's decision to appoint Elisse Walter as a replacement for SEC Chair Mary Schapiro. From there, we look at a number of practice management and career related articles, including a discussion of how the ranks of dually registered advisors are growing ever faster than pure RIAs, some tips from Sallie Krawcheck for new advisors, a review of the rising trend of ETF asset managers, a look at some of the little things you can do to help build trust with a new client, how Google AuthorRank is changing the face of Search Engine Optimization, and a discussion of survey results from Bob Veres about the greatest fears of financial advisors in today's environment. From there, we have two more technical articles, including a discussion of the tax rules for Master Limited Partnerships (MLPs), and a response from Laurence Siegel to the rather economically forboding article last week by Jeremy Grantham. We wrap up with two more offbeat articles: one suggesting that the primary reason clients have trouble saving for retirement is that their brains physiologically think of their retired selves like a stranger; and the other that there's an important difference between persuading and convincing, with the implication that we as planners may focus too much on the latter. Enjoy the reading!