ADVISOR CONNECT | Spring 2017 by ProEquities

ADVISOR CONNECT Financial Insights and Growth Strategies | March 2017

The Graying of America, Human Greed, & Your Clients

Laws Enacted to Prevent Elder Abuse pg. 22

Will You Be Hired or Fired by the New Widow?, pg. 18 Contingency Planning Now Considered a Fiduciary Responsibility, pg. 30 Two Financial Planning Approaches that Differentiate Advice, pg. 6

Our Commitment to Excellence Helping Advisors Optimize their Practice

Welcome to Advisor Connect, our newest ProEquities digital communications vehicle. In any partnership, communication is critical for a thriving, vibrant, and ever growing relationship.

Chris Flint President & CEO

Our goal with this publication is to keep you abreast of elements underway to enhance our standing as a forward driving financial services platform, a thought leader on wealth management advice, and a stable, albeit nimble, organization backed by strong parent companies. Our intent is to keep you informed of the investments and actions we are taking to help you, help your clients achieve shared goals. Our financial health is solid with some vital measurements above industry norms. Regardless of a delay or complete repeal of the Fiduciary Rule, ProEquities remains steadfast in its commitment to provide all investors access to quality and confident advice. We are equally committed to ensuring a consistent standard of care for all investors regardless of the account type and compensation structure. Our future is indeed bright. Client investible assets are expected to grow by $23T by 2020, while the number of advisors is expected to shrink to about 300,000. Full-service platforms, like many wirehouses, have approximately $600B in IRAs with balances less than $100,000. With assets in motion, collectively, we will gather them. We are committed to this business and will routinely evaluate and strengthen our value proposition by making the necessary investments to transform, alongside YOU, to better serve your clients. Please enjoy this publication. We always welcome your call, thoughts, and feedback.

For Advisor Use Only

JoinProEquities.com

The Graying of America, Human Greed, and Your Clients

Financial Planning: Two Approaches that Differentiate Advice

pg. 22

pg. 30

Contingency Planning Now Considered A Fiduciary Responsibility Will you be Hired or Fired by the New Widow?

pg. 6

pg. 18

Contents WEALTH MANAGEMENT Managing Risk in Fixed Income Investments

RETIREMENT READINESS Potential DOL Implications on Retirement Accounts 10 CLIENT ACQUISITION 3 Ways to Leverage Digital Media for Lead Generation

PRACTICE MANAGEMENT Cultivating the Ideal Book of Business

RESOURCES AND SUPPORT ProEquities Gives to Ronald McDonald House 34 2016 Equity Leaders Snapshot 36 New Website Launched to Facilitate Recruiting Efforts 37

For Advisor Use Only

JoinProEquities.com

Managing Risk in Fixed Income Investments Many financial advisors recommend bonds and bond funds as part of their client’s investment portfolio, both for their perceived safety and yield. We can help you manage risk in the fixed income component of your clients’ portfolios. Needless to say, not all bonds and bond funds are the same. Investors are often lured by higher yields into high-risk bond strategies, only to expose themselves to increased losses. While interest rates continue to hover near their all-time lows,

we continue to get calls from our reps asking how to reduce the risk of rising interest rates and the associated price deterioration that would result. First, let’s define the magnitude of that risk. If long term interest rates were to rise by 100 basis points, the resulting negative impact on that bond’s price would be as follows:

For Advisor Use Only

20 year maturity: 13.70% 25 year maturity: 15.73% 30 year maturity: 17.40% HOW DO WE MINIMIZE THIS RISK? When everything looks expensive, get defensive.

by Rory Hartley Director, Protective Securities

Consider restructuring the bond portfolio by selling longer duration bonds and using the proceeds to build a laddered portfolio. Laddering tends to perform very well against other bond strategies because it simultaneously accomplishes two goals: • Protects against price depreciation as the bonds age and their remaining life shortens JoinProEquities.com

wealth management • Reinvests principal from maturing bonds (low yielding bonds) into new longer-term bonds (higher-yielding bonds) An example of a laddered portfolio is shown below. EXPERIENCE AND SERVICE The fixed income department of ProEquities, called Protective Securities, has seasoned bond traders to support fixed income strategies for our advisors. In addition to bond ladders, they provide other services. These include: • Credit research • Portfolio analytics • Distribution portfolios This team has the ability to help reps compete favorably with major Wall Street firms. They conduct business in the following products:

• Municipal Bonds • US Government and Agency Bonds • Corporate Bonds • Mortgage Backed Securities • Brokered Certificates of Deposit The speed and price quality of execution is better than any other independent broker/dealer in America. This team can help you enhance your business, while providing the collateral benefits to your clients. Protective Securities is one of the value-added services offered at ProEquities. Rory Hartley is the Managing Director of Protective Securities. He can be reached at 205.268.3099 or Rory.Hartley@protective.com.

Protective Securities is one of the value-added services offered at ProEquities.

EXAMPLE BOND LADDER Below is an example of a bond ladder built for a client. Contact Protective Securities to discuss how we can help some of your clients achieve their financial goals.

For Advisor Use Only

JoinProEquities.com

Financial Planning: Two Approaches that Differentiate Advice â&#x20AC;&#x153;Clients want an advisor who can deliver not just on the investment side, but who can also be part life coach and cheerleader, part therapist, and part sage,â&#x20AC;? according to a global survey1 of individual investors. The financial services landscape continues to evolve, and more advisors are offering financial planning services in an effort to differentiate themselves from their peers. As the quote above demonstrates, clients are increasingly seeking advisors who can provide a comprehensive planning approach versus those who only provide asset management services.

they feel like they are on track to achieve their financial goals and live the type of lifestyle they desire more than those who do not have a plan.2

Especially in the post-DOL fiduciary rule environment, planning

It has also been shown that advisors who provide planning services typically produce more revenue than their peers. Based on a 2015 ProEquities business review, there was a 142% increase in production for planning advisors versus those who do not provide the service.3

will become a valuable tool to demonstrate how advisors are acting in their clientâ&#x20AC;&#x2122;s best interest. Clients will benefit from planning, because studies show that people who have a financial plan are more likely to report

TWO PRIMARY SCHOOLS OF THOUGHT When it comes to financial planning there are two primary schools of thought: cash flow versus goals based planning. Just like the portfolio manage-

For Advisor Use Only

by Mac Frasier, CFP Business Development Analyst

JoinProEquities.com

wealth management ment philosophies of active versus passive investing, both approaches have their advantages and disadvantages. In truth, a combination of philosophies may be best for your practice when determining which style of planning to adopt. CASH FLOW PLANNING CAPTURES GRANULAR DETAIL Financial planning’s roots can be traced back to budgeting and cash flow management, which make up the core of cash flow based financial planning. In general, advisors following this philosophy will begin by examining all sources of income and expenditures for a client and assume that the surplus is saved in order to reach the client’s financial goals. This approach can be very time intensive but does allow for a tremendous amount of detail. Cash flow based financial plans can be extremely helpful in a variety of scenarios such as: illustrating the impact of business installment sales, detailed estate planning, charitable giving, working with analytical clients, working with high net-worth clients, and working with clients without clearly defined goals.

to fund their retirement. Some of the more popular software solutions for cash flow based planning are E-Money, NaviPlan, and Finance Logix which actually allows for both types of planning approaches. GOALS BASED PLANNING PROVIDES OVERALL GUIDANCE In the early 2000s, financial planning underwent a major change with the rise in popularity of goals based financial planning

software. This type of planning can best be defined as looking at the end goal initially and then working backwards to see what needs to be done in order to achieve it. Many advisors have adopted this form of planning beA great example of a case in cause it requires less time than which an advisor would want to cash flow planning, yet can still use a cash-flow plan is when a provide clients with guidance on business owner is using an in- what needs to be done in order stallment sale of the business to achieve their goals. For Advisor Use Only

Based on a 2015 ProEquities business review, there was a 142% increase in production for planning advisors3 versus those who do not provide the service.

A drawback to goals based planning is the lack of detail that can sometimes cause major issues or opportunities to be overlooked. For example, in a goal based plan, an advisor may not see that there are years of large projected cash flow surpluses that could be used to fund other goals. Occasionally goals based planning can be problematic if clients do not have a good JoinProEquities.com

wealth management nderstanding of their financial u situation, causing them to set unrealistic goals which can lead down the path of having to create multiple “what-if scenarios.” Goals based planning is best suited for: clients who have a good understanding of their financial situation, younger clients who are getting started with financial planning, and clients who have simple goals. In terms of software options, MoneyGuidePro is the most widely used financial planning software and is known as the firm who pioneered goals based planning. Finance Logix is becoming more popular, based on its ability to handle both cash flow and goal based plans.

styles of financial planning or would just like to discuss how to incorporate financial planning in your practice, initiate the conversation by emailing PESolutions@proequities.com. References 1 Global Survey of Individual Investors, reported in Financial Advisor IQ, July 18, 2016. 2 The Value of Financial Planning, 2013, Financial Planning Standards Council 3 Statistic based on ProEquities’ Financial Planning Services Agreements and Financial Advice Services Agreements submitted in 2015.

Regardless of what type of financial planning philosophy you decide to follow, the most important thing you can do for your clients is create a plan and update it regularly.

Mac Frasier is a Business Development Analyst. He can be reached at 205.268.2056 or William.Frasier@proequities.com.

CREATING THE BEST OF BOTH WORLDS As financial planning continues to grow and evolve we are seeing more blending of the two planning styles in an attempt to combine the best of both worlds. Regardless of what type of financial planning philosophy you decide to follow, the most important thing you can do for your clients is create a plan and update it regularly. Financial plans should always be living documents that evolve to reflect changes in the client’s life. If you have questions on the difference between the two For Advisor Use Only

JoinProEquities.com

TOGETHER WE

Help make your clients’ “some day” possible

Loring Ward is dedicated to the simple proposition that everyone deserves a better retirement. Investing helps make it possible for your clients to achieve important lifetime goals, such as retirement. That’s why we believe a better wealth experience requires a consistent investment approach based on financial science and grounded in real-world results. Let us show you what a better wealth experience can look like for you and your clients.

For your copy of The Wealth Solution and to learn how Loring Ward can help you provide a better wealth experience, visit www.LoringWard.com/ WealthSolution

Advisor Use Only — Not for Public Distribution

THE

WEALTH SOLUTION Bringing Structure to Your Financial Life THIRD EDITION

Steven Atkinson, Joni Clark & Alex Potts Afterword by DR. HARRY M. MARKOWITZ, Recipient of the Nobel Prize in Economic Sciences

All investments involve risk, including the loss of principal and cannot be guaranteed against loss by a bank, custodian, or any other financial institution. © 2016 LWI Financial Inc. All rights reserved. The material in this communication is provided solely as background information for registered investment advisors and is not intended for public use. Unauthorized copying, reproducing, duplicating, or transmitting of this material is prohibited. LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions are offered through its affiliate, Loring Ward Securities Inc., member FINRA/SIPC. 16-114 (05/18)

Leading as a Fiduciary: Potential DOL Rule Implications on Retirement Accounts

The Department of Labor (DOL) has released new standards for how investment advisors will provide advice for employer retirement plans, plan participants, and individual retirement account owners. Based on President Trump’s executive order in February 2017, the Rule is currently being reassessed. In April 2016, the DOL published the final version of the Conflict of Interest rule, which broadened the previous definition of a “fiduciary.” A designated fiduciary over employer retirement plans has been required since the mid-seventies. The real impact of the new DOL standard, or “fiduciary rule,” is that even Individual Retirement Accounts (IRAs) will be subject to the same fiduciary mandates. The Secretary of Labor is currently examining the Rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice. This article outlines the DOL standards published last April. The recent DOL effort was initiated to review a 40-year-old mandate which was originally designed to protect employees enrolled in company retirement plans. During the next few months, the financial industry will need to make necessary adjustments to comply with the enhanced fiduciary definition, which becomes applicable on April 10, 2017. The rule does provide for a phased implementation approach which allows the more complex components of For Advisor Use Only

the rule to be fully implemented by January 1, 2018. WHO IS A FIDUCIARY? The DOL has defined a fiduciary as: a person who receives compensation for providing advice with the understanding it is based on the particular needs of the individual being advised OR that it is directed to a specific plan sponsor, plan participant, or IRA owner. An advisor becomes a fiduciary when he/she provides individual investment advice (verbal or written) for which they are compensated. For example, the following scenarios will constitute fiduciary actions beginning April 10, 2017: • Recommending a buy or sell of a commission-based product in a brokerage account or non-brokerage account direct with a product sponsor; • Recommending investment management services or a particular money manager for investment advisory accounts; • Suggesting a rollover from an employer retirement plan to an IRA brokerage or investment advisory account; and, • Suggesting the transfer of

by Beth Anderson, CPFA Director, Retirement Services

ProEquities believes client relationships should be built on trust and a documented financial plan, not just selling products. We are carefully monitoring the impact of President Trump’s executive order and will provide information as it becomes available.

JoinProEquities.com

retirement readiness an existing brokerage account to a level fee investment advisory account.

quite simply, no. Relevant factors to determine suitability include ensuring that the recommendation is reasonable based

on the individual’s investment profile, time horizon, and liquidity needs. Advisors will still need to ensure that a particular retirement product or recommendation is suitable for a client. The fiduciary rule will focus on ensuring that advisors make recIf an advisor is strictly engaged ommendations that are solely in in educating clients about gener- the best interest of the client by al retirement readiness and rec- eliminating potential conflicts of ommends that a client “hire me” interest and prohibiting preferenas their personal advisor, the tial transactions. advisor is not considered a fiduciary under the new rule. Once WHAT IS A PROHIBITED the conversation turns toward TRANSACTION? investment recommendations Prohibited transactions are deand receiving compensation for signed to prevent conflicts of financial advice, the advisor will interest between fiduciaries and need to be aware the new proce- retirement investors. A prohibdures necessary to establish the ited transaction is any transacaccount. tion that might benefit someone other than the client and thereDOES THE FIDUCIARY RULE fore creates a conflict of interest. REPLACE THE SUITABILITY Fiduciaries are prohibited from STANDARD? transactions that include: The answer to this question is For Advisor Use Only

• Self-dealing – advice to buy, sell, or transfer one product for another which would result in increased compensation; and, • Third party payments – compensation is received from an outside party in connection with a transaction involving plan assets or individual retirement assets. That said, an advisor must ensure that all compensation resulting from an investment recommendation is provided without this type of conflict or work under a legal exemption provided through a Best Interest Contract.

The fiduciary rule broadens the scope of communication that qualifies as investment advice and expands the DOL’s oversight to include rollover activity from employer plans to individual retirement accounts. THE BEST INTEREST CONTRACT EXEMPTION The use of a Best Interest Contract (BIC) exemption will allow advisors who do not have discretion on accounts to continue to receive variable compensation from investment product JoinProEquities.com

retirement readiness recommendations. Common third party payments like front or back end commissions, 12(b)1 fees, and indirect payments are considered variable compensation. With various products and compensation structures, it can appear that an advisor was incentivized to recommend one product over another for higher compensation.

• A website hosted by the broker dealer must be updated quarterly and provide information about any third party or product company arrangements, all advisor compensation, and a description of the broker dealer business model; • Policies to disclose material or potential conflicts of interest and procedures to ensure Without an exemption, advicompliance with the new fisors would be prohibited from duciary rule; and, receiving variable or increased • A Best Interest Contract procompensation on retirement acvided to the client (prior to counts. The BIC exemption can or at the time of the recomalso be used when an advisor mended transaction) that recommends a rollover from a states the best interest stanlower cost employer plan to a dard used and describes any level-fee advisory account where material conflicts of interest. the advisor’s compensation is increased. THE IMPACT TO CLIENT RELATIONSHIPS ProEquities believes client relationships should be built on trust and a documented financial plan, not just selling products. As we approach the April 2017 and January 2018 deadlines, additional information and training will be provided to assist advisors with establishing retirement accounts. ProEquities is currently analyzing product offerings and compensation associated The broker dealer will bear the with those offerings. As a result, brunt of the effort and cost to the list of product offerings may acquire necessary technology, be reduced. Product providers develop procedures, and create that serve the financial industry BIC exemption documentation may find it necessary to modify for advisor use. The following or eliminate products as well as items will need to be in place by payout structures. January 2018 for advisors to take full advantage of the exemption: Understandably, there are a For Advisor Use Only

large number of retirement accounts which were created prior to the rule, and these accounts could continue to receive contributions. ProEquities is working now to develop procedures to properly notify existing clients of their rights under the new rule. Beginning April 10, 2017, ProEquities and its advisors will need to comply with the new rule, and qualified accounts established on or after this date must be compliant. PROEQUITIES ADVISORS ARE WELL POSITIONED FOR THE DOL FIDUCIARY RULE There are changes ahead for retirement investors and the advisors who will support them, and ProEquities is committed to ensuring our advisors are informed and prepared to continue their practices efficiently. ProEquities President and CEO, Chris Flint, shared this message recently with all ProEquities advisors “…we are confident the investments we are making in technology, process improvement, and talent, support the many upgrades we anticipated making, with or without, the DOL’s Fiduciary Rule. These enhancements will ensure our value, and yours, regardless of any shifts in financial services and investor preference.” Beth Anderson is the Director of Retirement Services. She can be reached at 205.268.8316 or Beth.Anderson@proequities.com. JoinProEquities.com

T I T T I O G T O L G L I ST t n a W u o Y ou Want t n e m e r i ement Y t e R # e h e T he #Retir Liv Live T SM

You’ve always been a generation of rule breakers and change makers, so it’s no surprise that you’re redefining retirement, After all,ofyou’ve still got it. Aschange the Boomer generation breaks freethat of the 9-to-5, You’ve always been a too. generation rule breakers and makers, so it’s no surprise you’re ® Jackson will be there to help you explore new possibilities. redefining retirement, too. After all, you’ve still got it. As the Boomer generation breaks free of the 9-to-5, be to there to help youU.S. explore newofpossibilities. Jackson®is will Jackson proud be the official sponsor Exhibitionism – The Rolling Stones, the band’s first ever global touring exhibition. Jackson is proud to be the official U.S. sponsor of Exhibitionism – The Rolling Stones, the band’s first ever global touring exhibition.

Visit Jackson.com to learn more.

Visit Jackson.com to learn more. Jackson is the marketing name for Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase New York). Jackson National Life Distributors LLC.

Jackson is the marketing name for Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase New York). Jackson National Life Distributors LLC. CMC17868 11/16

3 Ways to Leverage Digital Media for Lead Generation Before the Information Age took hold, it was likely effective to have great face-toface communication with your clients and reach out to prospects through meetings and seminars. But today, these measures aren’t enough to attract and retain your client base. HubSpot studies1 show that 61% of internet users research products and services online before purchasing, which means they’ll be researching their service providers as well. And now with the new DOL fiduciary rule, it’s more important than ever to have a legitimate and reputable online

show there’s a high correlation between consumer trust and a business’ online presence. On average, 70% of people would not do business with a company if their website has an outdated or unappealing design, and twothirds of business owners said that the design of their website

presence and to leverage digital media — from social media to email — to generate leads and referrals.

was more critical to their business’ success than the physical location of their business.2

Let’s look at three digital media essentials financial advisors can use to gain more traction online: 1. COMPANY WEBSITE A website serves as the hub of your digital media strategies and is the foundation of your web presence. Countless studies For Advisor Use Only

Craig Faulkner CEO, FMG Suite

Another study reveals that 80% of people judge the credibility of a company by its website design.3 Why? Because we all judge books by their covers, and consumers immediately distrust an outdated website (or lack thereof) and assume the business is either unsuccessful or a scam. JoinProEquities.com

client acquisition Remember, even if your business is primarily referral based, 9 out of 10 prospects referred to you by their family or friends will Google your firm’s name and check out your website before they make an appointment.4 If they can’t find you online, there’s a good chance they won’t give you a call. 2. SOCIAL MEDIA Social media is a goldmine for you to connect with new prospects, maintain strong relationships with clients, and encourage referrals. Millennials and Baby Boomers flock to LinkedIn, Facebook, and Twitter to find advice, read news, get recommendations, and interact with connections around the world. More than 80% of financial advisors use social media for business, and more than 79% have acquired new clients through social media.5 The key to generating leads on social media is consistency. The most effective social media efforts require a balance of three types of content: Evergreen Content includes information that doesn’t go stale. These can be articles about the basics of investing or facts about estate planning. FMG Suite helps advisors lay the foundation by providing evergreen, educational content that never goes stale. For Advisor Use Only

Curated Content includes articles you share from news sites, like The Wall Street Journal or WealthManagement.com. Personal Content includes firm updates, event announcements, and other timely information. If you post a blog, make updates to your website, or hire a new team member, share it on social media to build your community.

9 out of 10 prospects referred to you by their family or friends will Google your firm’s name and check out your website before they make an appointment.

3. EMAIL MARKETING Email may be one of the oldest forms of digital communication, but that doesn’t mean the practice is outdated. Email marketing yields an average 4,300% return on investment for businesses in the US,6 making it an essential component in developing a strong online presence. Studies show that client satisfaction and referrals are highest when an advisor proactiveJoinProEquities.com

client acquisition

ly reaches out to a client 12 to 18 times per year.7 Email campaigns are a great way to fulfill this need. Keep your contacts engaged by providing a variety of email campaigns with different content formats: Lifestyle. Everyone loves lifestyle content, such as “10 Ways to Maximize Your Social Security Benefits” or “5 Signs You’re Not Ready for Retirement Yet.” These are always engaging pieces that you can create yourself or curate from another source. Market Updates. If investing is a significant component of your firm, or you know your clients are interested in market trends, send a monthly market commentary to demonstrate your expertise. Birthday and Holiday Wishes. Everyone wants to feel appreciated during special times of the year. You can remind your prospects and clients that they’re in your thoughts with a personalized email message. Firm Updates. Send an invite for your upcoming event, highlight your new team member, share the opening of your new office location, and more. Some advisors are hesitant to share this type of news, but it’s an excellent way to cultivate client relationships.

dia activity, and email marketing campaigns work together to create an online footprint. You will be more accessible to your clients and build trust in your firm. Digital efforts are far-reaching by design, and the electronic format facilitates wider, more cost-effective distribution. Traditional marketing methods are still viable options, but with a strong digital presence, clients will know that you can adapt to technology and embrace new, innovative ways of doing business.

Craig Faulkner is the founder and CEO of FMG Suite, offering a complete inbound marketing solution for independent financial advisors. Connect with him on Twitter @craigfaulkner_.

References 1 http://www.hubspot.com/marketing-statistics 2 http://www.ronswebsite.com/blog/peopledont-trust-companies-with-crappy-websites/ 3 http://www.ducttapemarketing.com/ blog/10-reasons-people-dont-trust-website/ 4 https://fmgsuite.com/market-in-motion/ brochure-website/ 5 https://www.putnam.com/about-putnam/ press-releases/over-80-percent-of-financial-advisors-use-social-media-for-business-according-to-2015-putnam-investments-social-advisor-study.jsp 6 http://www.outboundengine.com/blog/20shocking-email-marketing-stats-businessowners-know/ 7 https://fmgsuite.com/market-in-motion/ email-marketing-for-advisors/

A company website, social meFor Advisor Use Only

JoinProEquities.com

Embrace Digital. Grow Your Practice. Investors today are actively engaged. They want to know more about their investing options and better understand their personal finances. They want control, transparency, and access. In this 24/7 information driven environment, advisors need to embrace digital solutions. They need to connect with investors on different levels and demonstrate that their advice is essential.

Leverage Envestnet’s Client Portal It’s a digital platform with configurable modules that aggregates personal finances with investment accounts, all white-labeled for the advisor.

A set of online tools gives end-investors greater insight and control to chart their expenses and income, monitor cash flow and determine net worth—all while providing a holistic view of their wealth.

And, a digital storefront allows end-investors to experience a personalized approach to investing and to open an account on their own.

Join the digital revolution. Learn more at envestnet.com/clientportal. ENVESTNET RESERVES THE RIGHT TO ADD TO, CHANGE OR ELIMINATE ANY OF ITS SERVICES WITHOUT PRIOR NOTICE. APPROVED FOR INVESTMENT PROFESSIONALS ONLY. IT IS NOT INTENDED FOR PRIVATE INVESTORS. © 2017 Envestnet, Inc. All rights reserved.

Will You Be Hired or Fired by the New Widow?

More than 1 million women are widowed every year in our country. According to the U.S. Census Bureau, widows will soon total 13 million. Considering 70% of widows fire the couple’s advisor after their spouse dies, it’s critical to meet the needs of this growing population. Early on, your meetings will be short and focused on the personal side rather than the technical side of money. by Kathleen Rehl, PhD, CFP, CeFT Widow and Grief Counselor

“So, how do you want to celebrate our 20th anni- 2. 80% of men die married. Conversely, 80% of versary, honey?,” asked my husband. “Should be women die single. special. How about a Caribbean cruise?” But we 3. The average age a wife becomes a widow is didn’t go on that cruise. I became a member of the 59. A widow may need to make financial deciclub no woman wants to join — the widows club. sions for many years on her own. 4. Many widows will be double inheritors in the More than 1 million women are widowed every coming decades, as up to $41 trillion dollars year in our country. According to the U.S. Census passes from deceased spouses and parents. Bureau, widows will soon total 13 million. It’s predicted that 70% of this money will go to women — many who are widows. Here are several more stunning statistics that 5. And finally—70% of widows fire advisors they may impact your business: used with their spouse before he died. They 1. 70% of all married women, on average will exleave . . . along with their money! perience widowhood. For Advisor Use Only

JoinProEquities.com

70% of widows fire the couple’s advisor after their spouse dies. If you want to be the advisor a widow is attracted to and stays with . . . and not the one she fires . . . continue reading. ENHANCE YOUR RELATIONSHIP WITH WIDOWS As a widow and Certified Financial Planner™, I’ve spent almost a decade helping other financial professionals serve widowed clients. Below are recommendations to enhance your relationship with widows — to help keep their business and expand your reputation as an advisor who works well with widows.

client acquisition transition, she will feel more comfortable. Encourage taking time with non-urgent decisions — don’t rush. A new widow doesn’t need to rebalance her portfolio immediately when she’s in early GRIEF. That comes later, in the second stage of widowhood — GROWTH. Rather, concentrate on financial triage activities, such as checking her cash flow and making sure bills are paid. Start helping her to organize information in different

Ask about her story and really LISTEN — being present. She has a rich story, and she wants to share this with you. Don’t try to “fix it” in these early conversations by mostly talking about what she “should do.” It’s not a time to present your financial solutions. You might begin by asking how she met her husband or what special qualities about him she would want others to remember about him. We widows learn to live with the death of our spouse, but we never “get over” his death. Indeed, a widow will love her late husband forever, although in a very different way after his passing. Early on, your meetings will be short and focused on the personal side rather than the technical side of money. Sharing memories of her husband can colored folders—such as estate settlement, death help a widow’s emotional healing process. benefits, and financial statements. Assist her to file for certain death benefits, but don’t invest the Help widows feel safe and secure. Her husband payouts until you’ve later planned with the widow might have really enjoyed “beating the market,” how this money should be used. but that’s not a new widow’s concern. She’s thinking: “Am I going to be okay financially?,” “Do I have Skip clichés and avoid communication mistakes. to go back to work . . . or look for a higher paying Don’t say, “At least you had many good years tojob?,” “Can I afford to stay in my house?” She’s gether” or “time heals all wounds.” Those words mainly concerned about her new financial posi- aren’t helpful. Better to say, “I can’t imagine the tion and wants to continue a similar lifestyle. It’s pain you’re experiencing now. How is today gocommon for even some multi-millionaire widows ing for you?” Or, “I’m here to help you on this new to fear becoming a bag lady. As she understands journey.” Or, “It’s good that you have family and you have processes and tools to assist widows in friends who love and care for you during this diffiFor Advisor Use Only

JoinProEquities.com

client acquisition

cult time.” Remember that thoughtful hand-written cards and notes are appreciated months after the funeral or memorial service.

women are inspired by reading publications by other widows. I created “Moving Forward on Your Own: A Financial Guidebook for Widows” as a gift book you can give clients when the time is right. Be her thinking partner and guide. Initially a wid- You also might accompany a widowed client to her ow’s attention span may be short, memory weak, attorney’s office to settle the estate, if that would and decision making downright difficult. Forget the be emotionally supportive and helpful. fancy charts and financial jargon. Speak in plain English. Wait to discuss new ideas when she’s ESTABLISHING A NICHE past the overwhelmed and numb phase of grief. Working with widows in transition can be a won(Even very smart women may have problems derful niche for an advisor focusing on this stage that most women will experience. When widows trust that you’re there for them and understand Give your widowed client a one-page them, they will be clients for life. Plus, they’ll tell summary of meetings, including just a their widowed sisters how much they appreciate few action items with general timelines your guidance.

— NOW, SOON, and LATER.

reading their brokerage statement or balancing a checkbook.) Give your widowed client a one-page summary of meetings, including just a few action items with general timelines — NOW, SOON, and LATER. Raise open-ended questions about her situation. By helping your widowed clients think through options and what’s really best for them, you’ll enhance your relationships and reputation as a trusted advisor.

Reference: Kathleen M. Rehl, Carolyn C. Moor, Linda Y. Leitz and John E. Grable, “Widows’ Voices: The Value of Financial Planning,” Journal of Financial Services Professionals, Vol 70, No 1 (2016): 53-60.

Kathleen M. Rehl is the author of the multi-award winning book, “Moving Forward on Your Own: A Financial Guidebook for Widows.” She is passionate about inspiring her widowed sisters in transition and helping advisors work effectively with these women.

Show compassion and care. Along with your em- To learn more about working effectively with widpathetic support, encourage widowed clients to ows, including practical tools and ideas, contact consider participating in support groups hosted your Protective Life representative. by hospices, congregations, or online sites. Many For Advisor Use Only

JoinProEquities.com

Learn more about JAForlines at ETF Trends Strategist Channel, hosted by State Street Global Advisors See Chairman and CIO John Forlines discuss 2016 and What Lies Ahead for 2017

Awarded

2016 “Strategist of the Year” by Envestnet, Inc. and Investment Advisor magazine

The Tactical Core for Client Portfolios A Risk-Managed Core Holding JFG Portfolios are designed to lower costs and volatility, while producing long-term capital appreciation. We are asset allocators, not market timers—our portfolios evolve over time to manage risk and capture opportunities, rather than switching quickly between assets. Our portfolios are used as the risk-managed core of a client’s portfolio.

We offer 4 risk-adjusted Global Tactical strategies ranging from Income to Growth. Global Tactical Allocation is our flagship moderate risk portfolio.

Global Tactical Income

Global Tactical Conservative

63 Forest Avenue, Locust Valley, NY 11560

Global Tactical Allocation

Call us (516) 609-3370

Global Tactical Growth

Visit www.jaforlines.com

The material contained herein is not an offer or solicitation for the purchase or sale of any financial instrument. It is presented only to provide information on investment strategies, opportunities and, on occasion, summary reviews on various portfolio performances. Returns can vary dramatically in separately managed accounts as such factors as point of entry, style range and varying execution costs at different broker/dealers can play a role. For broker/dealer use only.

The Graying of America, Human Greed, and Your Clients Hearing that seniors lose at least $3 billion annually to financial exploitation probably doesn’t come as a surprise to many. More eye-opening, however, is that 55% of that financial abuse is committed by family members, caregivers, and friends. If you haven’t experienced the strange withdrawal request that comes out of left field from a client you’ve known for 25 years, it’s probably just a matter of time until you do.

by Steve Youhn Chief Compliance Officer

Willie Sutton, shackled on his way to prison, famously exclaimed he robbed banks because “that’s where the money is.” The odds are that some of your senior clients have their own Willie Sutton, and they may be sitting directly across from them at Thanksgiving dinner.

wealthier (somewhere between 33-50% of our nation’s wealth is held by seniors), and they are more prone to suffering from some form of cognitive impairment (more than 16 million in the US alone), whether mild or severe. Wealth and memory loss are a dangerous combination, or an irresistible aphrodisiac. Depends on your moral compass.

America is graying as evidenced by the fact that 10,000 Americans will turn 65 every day for, like, None of us wants to think that our Willie Sutton forever (or at least the next 15 years). But other may be a son, daughter, life-long friend, or livethings can happen as people get older: they get in caregiver, but the numbers suggest otherwise. For Advisor Use Only

JoinProEquities.com

practice management What is certain is that your clients are getting older, and if you haven’t experienced the strange withdrawal request that comes out of left field from a client you’ve known for 25 years, it’s probably just a matter of time until you do. THE NASAA MODEL Individual states, the US government, FINRA, the SEC, AARP, SHIELD, Phil, Oprah, you name it, are all talking about senior exploitation. Many states have enacted laws designed to prevent senior exploitation, with varying degrees of effectiveness. ProEquities’ home state, Alabama, enacted one of the more effective laws in 2016 based on the North American Securities Administrators Association (NASAA) model. Besides Alabama, few states have enacted laws based on the NASAA model: IN, VT, DE, MO, and WA.

ble adult has occurred or is being attempted, the Alabama law imposes an obligation on the qualified individual to promptly notify the Alabama Securities Commission (ASC) and the Department of Human Resources (DHR). The term “qualified individual” includes representatives of broker-dealers and RIAs. If the qualified individual reasonably believes that financial exploitation has occurred or is being attempted, the individual may reach out to a trusted contact previously identified and authorized by the vulnerable adult. This person may be a relative,

What makes the Alabama law so effective in combating potential senior exploitation isn’t just one factor. Instead, it is a combination. Let’s review the mechanics. WHO IS COVERED UNDER THE LAW? The Protection of Vulnerable Adults from Financial Exploitation Act defines “vulnerable adult” as anyone 65 years of age or older. It’s that simple….if someone is 65 or older, they are a vulnerable adult. The law also protects individuals over the age of 18 who suffer from intellectual or developmental disabilities. WHAT DOES THE LAW PROTECT AGAINST? The law guards against “financial exploitation,” which includes, among other things, the wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of a vulnerable adult. WHO IS RESPONSIBLE FOR IDENTIFYING FINANCIAL EXPLOITATION AND WHAT MUST THEY DO? When a ”qualified individual” reasonably believes that suspected financial exploitation of a vulneraFor Advisor Use Only

trustee, have power of attorney authority, etc. The key factors here are that this person must have been previously designated (in writing) by the vulnerable adult or have legal authority with respect to the account (e.g., trustee, POA) and, importantly, the qualified individual should NOT notify the trusted person if he/she is the individual suspected of trying to exploit the senior. From ProEquities’ perspective, representatives who suspect financial exploitation of a vulneraJoinProEquities.com

You don’t need to be an expert on the law to protect your clients. If you suspect something, call Compliance and we’ll help you navigate. ble adult should contact Compliance. The firm will then be the “qualified individual.” WHAT HAPPENS AFTER THE NOTIFICATION? CAN I REFUSE TO EXECUTE THE TRANSACTION OR SEND THE MONEY? If after an internal review the firm determines the requested disbursement would result in financial exploitation, it may delay the disbursement and is required to: 1. provide notification within two business days to all persons authorized to transact business on the account (unless one of the parties is suspected of the exploitation); 2. provide notification to ASC and DHR within two business days; and, 3. continue the internal review and provide an update to DHR within seven days. Important to note is the law permits the delayed disbursement, but it does NOT allow the delay of the transaction. You must execute the transaction, but you can then delay sending the funds. HOW LONG CAN THE DELAY LAST? The delay expires at the earlier of fifteen business days or upon the firm’s determination there is no financial exploitation occurring. Note, however, the ASC or DHR may request the firm to extend the delay.

provide notification or delay disbursements in accordance with the requirements of the law. If you live in a state that hasn’t implemented a financial exploitation law, contact ProEquities’ Compliance department, and we can help determine next steps. FINAL ANALYSIS Laws like the Alabama law provide firms the latitude to investigate when something seems amiss and the ability to potentially protect a vulnerable adult from someone trying to take advantage of them. They also provide protection to firms acting in good faith who guess wrong. Keep in mind, however, the rule doesn’t protect against client foolishness. You can’t prevent the sanest client in the world from making a poor decision with which you disagree, absent evidence of exploitation. You don’t need to be an expert on the law to protect your clients. If you suspect something, call Compliance and we’ll help you navigate.

The extension expires ten business days later unless ordered by the ASC, DHR, or court order to end sooner. A court may also extend the delay Reference: North American Securities Administrators Association. (2016). A Guide for Developing Practices and Proceeven further if petitioned by ASC or DHR. CAN I BE LIABLE IF I REPORT EXPLOITATION AND IT TURNS OUT THERE IS NO MISCONDUCT? The law provides immunity to individuals and firms that, in good faith and exercising reasonable care, For Advisor Use Only

dures for Protecting Senior Investors and Vulnerable Adults from Financial Exploitation.

Steve Youhn is the Chief Compliance Officer. He can be reached at 205.268.3369 or Steve.Youhn@proequities.com. JoinProEquities.com

When it comes to alternative investments, you can’t put a dollar value on confidence. CNL Securities has spent decades earning that confidence from leading financial advisors.

CNL Securities | Member FINRA/SIPC (866) 650-0650 | CNL Center at City Commons 450 S. Orange Ave. | Orlando, FL 32801-3336

Investors should be advised to consider the investment objective, risks, charges and expenses of an offering carefully before investing. There is no assurance the stated investment objectives will be met. FOR BROKER-DEALER AND RIA USE ONLY. This information does not constitute a solicitation of an offer to sell and/or buy any specific security offering. Such an offering is made by the applicable prospectus only. A prospectus should be read carefully by an investor before investing. Financial advisors are advised to consider investment objectives, risks, charges and expenses carefully before recommending an investment. There are no assurances an investment’s stated objectives will be achieved. Broker-dealers and other firms are reminded that offering-specific communications distributed by a financial advisor should be accompanied or preceded by a prospectus in accordance with federal securities laws. Investments in non-traded real estate trusts (REITs) and non-traded business development companies (BDCs) are subject to significant risks. These risks include limited operating histories, reliance on the advisors, conflicts of interests, payment of substantial fees to the advisors of the company and their affiliates, limited liquidity, and liquidations at less than the original amounts invested. Investing in these products is not suitable for all investors. Investors should consult a financial professional to determine whether risks associated with an investment in the shares are compatible with their investment objectives. © 2017 CNL Intellectual Properties, Inc. All Rights Reserved. CNL® and the Squares Within Squares design trademarks are used under license from CNL Intellectual Properties, Inc. CSC-0217-16532-BD

Cultivating the Ideal Book of Business Over the past 30 years, my business partners and I have found the best way to never have to fire a client is to never hire one that may be undesirable. It is never easy ending a client relationship. Each circumstance is generally unique, so I hope you can take my experience as a guideline and use it to d evelop your own techniques. by Mike Hughes President and Senior Advisor at Innovative Financial Solutions

We are a fee-based financial planning firm. We are consultants and not salesman. What satisfies us is the value we provide to our clients through long lasting relationships, not by generating commissions. We are not portfolio managers, we are planners.

want to make sure we have the experience and skill set to solve the client’s issues or help them accomplish their goals. We want them to hear our core philosophies and to be sure they align and resonate. We share with them in detail our processes, what we cost, and what they can expect. We listen to what is most important to them and let them know our experience in those areas.

FINDING DESIRABLE CLIENTS Our first client meeting is literally called a FIT meeting. We let the prospect know in advance that our Most importantly, we share our expectations of first meeting is all about interviewing each other to them. We underscore the goal of working togethmake sure there is alignment of several things. We er is to create a successful long-term relationship For Advisor Use Only

JoinProEquities.com

practice management which includes relieving them of the stress that comes with trying to manage their own affairs and their money. Once we have these FIT meetings, everything discussed is put in writing, then we actually do the things we’ve promised. This helps create rewarding and lasting relationships that are virtually competition proof.

cumstances change. They may have gotten divorced, married, received an inheritance, or lost a spouse. When that happens, they recall what we told them and now feel there is value in what we can do for them. We then turn those clients into more successful, long-term relationships and everyone wins.

TWO DISTINCT CLIENTS TO AVOID If you find it necessary to “fire” a client, our experience has been there are two distinct clients that are involved. One is the client who is no longer a good fit based on profitability, and the other is the client who is no longer a good fit based on philosophies or expectations.

ENDING A CLIENT RELATIONSHIP When a client is no longer a fit due to a conflict with our philosophies or expectations, this is an entirely different issue. In our litigious society, the

If your career started like mine, you took on any client who could fog a mirror. It was what you had to do to survive. As my practice grew, we had the ability to refine our processes. This led us to develop an ideal client profile. THE IDEAL CLIENT PROFILE Once you apply the desired attributes of your ideal client to your current business base, you will quickly see many of your early clients no longer align with your business model. Rather than giving them to a junior advisor or selling them to another advisor, we use a different technique. We have a meeting with those clients and tell them about all of the exciting changes we’ve made and how we can benefit them moving forward. That discussion usually involves charging fees for creating a plan and ongoing advice, because the client asset levels are too small to compensate us at the new level. We let the clients know what we do and the associated costs and most of the time, frankly, these clients decline to move forward. In that case we let them know that we will try to contact them once every 24 months to review their portfolio. We do this because many times the client’s cirFor Advisor Use Only

last thing you want is an unhappy client, especially when they continue complaining about performance. When this happens, we have a meeting to re-evaluate why they hired us and what our role is in their world. We go to great lengths to be sure they understand what we are saying and try to get to the root of their unhappiness. If it is something we can fix that is within our philosophies, processes, or planning strategies, we will do it. If it is not, we let the client know that is not how we work, we are no longer a good fit and it is in their best interest to either manage their own financial affairs or JoinProEquities.com

practice management

to seek out an advisor who is a better fit for them. We say all of this in a matter-of-fact manner and keep emotion out of it. We do not want to create any animosity; we simply want to help the client be as successful as they can be and allow them to be happy and satisfied along the way. We are careful to document everything we do and when the client decides to move, we will facilitate moving their money and end the relationship as seamlessly and amicably as possible.

Our first client meeting is literally called a FIT meeting. We let the prospect know in advance that our initial meeting is all about interviewing each other to make sure there is alignment of several things, including financial philosophy and expectations.

It is never easy ending a client relationship. Each circumstance is generally unique, so I hope you can take my experience as a guideline and use it to develop your own techniques. I canâ&#x20AC;&#x2122;t emphasize enough that if you want to avoid the unpleasantness of firing a client, hire only those that are a good fit. Strengthen the onboarding process and make sure your philosophies and expectations align upfront. Mike Hughes is President and Senior Advisor at Innovative Financial Solutions. Learn more about his practice at ifsincaz.com. For Advisor Use Only

JoinProEquities.com

SSGT CLOSING SOON CLOSING TO NEW INVESTMENTS

ONCE IT REACHES $200 MILLION IN ITS PRIMARY OFFERING

A public non-traded REIT focused on growth oriented self storage facilities.

To Learn More About Self Storage, Please Contact Us At: (877) 327-3485 | www.StrategicREIT.com BROKER DEALER USE ONLY: This is neither an offer to sell nor a solicitation of an offer to buy any scanties. Only a Prospectus makes such an offer. This literature must be read in conjunction with the Prospectus in order to fully understand all of the implications and risk of the offering or securities to which it relates. Please read the Prospectus in its entirety before investing for complete information and to learn more about the risks. No offering is made to New York residents except by Prospectus filed with the Department of Law of the State of New York. The Attorney general of the Ste of New York has not passed or endorsed the merits of this offering. Shares offered through Select Capital Corporation (Member FINRA and SIPC)

Contingency Planning Now Considered a Fiduciary Responsibility More so than ever, both individuals and businesses need help decoding the complexities of the financial world around us. As global consumer and financial markets continue to become more closely linked, the unending stream of technological innovations challenge traditional business models, and the ever changing political landscape makes it incumbent upon the financial industry to help our clients find the safest and most beneficial path forward. As financial professionals, we have accepted the responsibility of caring for our clientsâ&#x20AC;&#x2122; financial wellbeing, and to provide the highest standard of care and concern when helping them achieve their long-term goals.

mandate, understand the importance of treating their clients with the same level of care as their own family. But as so many financial professionals work day in and day out to protect clients from unknown risks and estabby Chris Phillips, CFA, MBA Director of Investments

For those of us in our industry who provide any number of product/service models, including financial planning and consulting, customized asset management solutions, risk management strategies, and relationship focused client service activities, ultimately our goal is to serve as the chief financial officer for each one of our clients. Advisors who truly take on the fiduciary standard of care because they want to, not because it is a regulatory For Advisor Use Only

lish strategies to meet long-term goals, they miss one of the easiest and possibly most underappreciated pieces of their overall service model: their contingency plan. FORMALIZED BLUEPRINT FOR THE UNEXPECTED Everyone has probably heard about some version of what a contingency plan is, although it is often referred to as a: succession, continuity, or death/disabilJoinProEquities.com

practice management ity plan. Regardless of what it’s called, the plan itself is essential for ensuring there is a formal, documented blueprint for what will happen with a financial professional’s business if they were to die or become permanently disabled. In terms of that representative’s personal life, I would assume that they have properly prepared for such an unfortunate event -- creating a will, purchasing the appropriate amount of life insurance, and basically doing their best to ensure that loved ones are cared for properly.

as well as, discuss the logistics of making an actual transition between firms will build a strong foundation for a smoother transition should such an event occur.

WHERE THE REGULATORS STAND The importance of having a formal plan of action for a firm in the event of death or permanent disability has not gone unnoticed by regulators either. During 2015, the North American Administrators Association, the group that represents state securities regulators, proposed a “model The contingency plan takes this rule that would require investsame level of care but injects the ment advisors to create and business context. The minimum implement written procedures components of a formal plan to address business continuity would address (1) the specific and succession planning” in the triggering event for the plan to event of a natural disaster, advigo into place (death / permanent sor death/permanent disability, disability), (2) the nature of the or other cause of business distransition of the firm or book of ruption. Not to be left out of the business (outright sale / owner- conversation, the Securities and ship interest), and (3) the meth- Exchange Commission recentod of payment or deal terms ly proposed a similar require(lump sum / seller’s note) for the ment for firms registered with purchasing advisor. This type of the SEC. Both groups believe agreement would at least provide it is a fiduciary responsibility of the minimum amount of direction for both the impacted representative’s business and their broker/dealer. That being said, the best executed plans between financial professionals do not end with the simple signing of a formal document. Those individuals who take the next steps to properly communicate this new relationship with current clients, For Advisor Use Only

The importance of having a formal plan of action for a firm in the event of death or permanent disability has not gone unnoticed by regulators.

JoinProEquities.com

practice management the financial advisor to ensure the well-being of their clients no matter the situation. Be sure and also understand, the SEC has taken the additional step to say that failing to prepare a viable plan could be viewed as a breach of that duty. I would find it very difficult to argue why a financial professional should not have some kind of formal plan established in the event of a catastrophic event like death or permanent disability. I know of some reasons why reps go without formal plans, as it requires some proactivity on the part of the advisor. Common excuses often include busyness, they already have life insurance, theyâ&#x20AC;&#x2122;ll eventually get to it, itâ&#x20AC;&#x2122;s on my list of things to do, they have a handshake agreement with a colleague, and so on. Contingency planning, in truth, is a selfless act, very similar to life insurance. You are preparing for events that will deeply impact

loved ones and therefore need to take the utmost care in seeing that plan is formally constructed. NOW IS THE TIME TO BE PROACTIVE We at ProEquities have understood the importance of having a formal plan for many years now. We have engaged with an industry leader in contingency and succession planning, Succession Resource Group in Portland, Oregon, to help us build a customized contingency document for our financial professionals. We work regularly with our advisors to find ways to properly protect their firms, their clients, and most importantly their families, in the event something should happen and they would be unable to continue to serve as a financial advisor. If you need to develop a contingency plan, now is the time to be proactive.

Chris Phillips is the Director of Investments. He can be reached at 205.268.7040 or Chris.Phillips@proequities.com.

For more information on contingency planning or other advisory products and services, email PESolutions@ proequities.com.

Contingency planning, in truth, is a selfless act, very similar to life insurance. You are preparing for events that will deeply impact loved ones and therefore need to take the utmost care in seeing that plan is formally constructed. For Advisor Use Only

JoinProEquities.com

Chicago â&#x20AC;&#x201D; Sept 17-20

2017

NATIONAL BUSINESS BUILDERS CONFERENCE

SAVE THE DATE National Business Builders Conference September 17-20, 2017 Chicago Fairmont Join fellow ProEquities advisors for our revitalized, annual event. This is the premiere conference engineered for all levels of advisors and supporting business members. Multiple tracks will be offered to discuss financial industry hot topics and meet diverse business goals: Learn how to transition to an advisory-based practice Discover client acquisition secrets Benefit from top advisor insights and best practices Participate in peer-to-peer networking

Upgrade your practice! Donâ&#x20AC;&#x2122;t miss the 2017 National Business Builders Conference. Registration information will be released in a few months. In the meantime, mark your calendar! ProEquities, Inc., Member FINRA & SIPC

JoinProEquities.com

One Night of Art, Countless Lives Touched: ProEquities Gives to Ronald McDonald House What happens when you combine real-time art with a group of people gathered in a room to celebrate success and raise money for a good cause? A little bit of magic. That’s what happened when nationally recognized artist Erik Wahl painted in real-time during an evening recognizing top advisors of ProEquities. The Equity Leaders Conference banquet, a celebratory dinner for high-performing ProEquities independent advisors in Monterey, raised funds for the good causes of the Ronald McDonald House through an auction, drawing, and giveaway of Wahl’s highly valued art.

said Chris Flint, president and CEO of ProEquities. “Erik encouraged our advisors to think about new ways of creating innovative solutions. And we, in turn, got to help an organization that helps families in need.”

One painting was auctioned off to benefit Ronald McDonald House Charities. “We purchased the Eagle painting because our family feels a deep connection to the military,” says Sandra Dowell, “Creativity, innovation, and risk are critical to nav- whose husband Bill works with ProEquities. “It igate the future of business,” Wahl says. He daz- was wonderful to help Ronald McDonald House zled the crowd with a high-energy performance, while getting a unique piece of art that represents during which he painted three works while speak- patriotism.” ing about the connection between art, innovation, and business. The final result: three paintings of The other two paintings were given away through a iconic subjects — Albert Einstein, Abraham Lin- remarkable set of circumstances. Randomly selecting coln, and the American Eagle. an audience member, Wahl brought Darrin Preheim on stage, a Wichita-based ProEquities financial advi“This definitely wasn’t a typical business meeting,” sor, and asked him if he was willing to take a risk. For Advisor Use Only

JoinProEquities.com

resources and support Preheim was asked to choose between two envelopes — one that could win him a Wahl painting (valued at thousands of dollars); the other could win him $100 instead. Darrin won the cash, and another audience member won the painting. Preheim took the $100, bought five raffle tickets for the final Wahl painting and …won. When called back to the stage, Preheim explained why it was so special to him to win the painting of Albert Einstein. He shared that in 2002, when his

twin daughters were born prematurely, he and his wife Maureen spent seven weeks at the Ronald McDonald House near Wesley Medical Center.

“As a parent with a child in the hospital, you are in a very vulnerable place. The Ronald McDonald House provides such stability,” Preheim says. “The people at the Ronald McDonald House were amazing to us, letting us stay close to our daughters when they needed us the most.”

a fundraiser to benefit this place that helped my family enormously.” Ronald McDonald Houses allow families of hospitalized children to stay at little to no cost. This allows parents to be close to their children and their doctors, reducing the stress of commuting from home (which can be hours away) to the hospital. Community volunteers provide home-cooked meals and support.

Volunteers from ProEquities serve a meal to the families each month. “Many people don’t realize what all the Ronald McDonald House offers,” says ProEquities employee Shelley Rigby. “Every time I leave, I am touched by the parents I meet and how thankful they are to have a place to stay in a time of need.” Shelley’s been impacted so profoundly that she has now involved her two-year-old son Michael, asking guests at his birthday parties to bring items for donation to the house in lieu of presents. “It’s been such a gift to volunteer at the Ronald McDonald House,” Shelley says. “I want my son to grow up learning how to give back too.”

Today Preheim’s twins, Claire and Tessa, are thriving eighth graders, and Preheim remains thankful for Ronald McDonald House Charities. “It was re- Magic indeed. ally special to win this art work that was part of For Advisor Use Only

JoinProEquities.com

2016 Equity Leaders Snapshot The most recent rewards trip was held in Monterey, California on June 8-12, 2016. The Hyatt Regency Monterey Hotel & Spa was central to the many noteworthy golf courses in the area, including Pebble Beach, Spyglass, Del Monte, and Spanish Bay. Celebration trip qualifiers had access to some of the West Coast’s most beautiful beaches, ocean kayaking, hiking, biking, and tours of 17Mile Drive and Big Sur. This retreat provided a wonderful opportunity for ProEquities to celebrate with our top representatives and their guests. Mornings were spent with industry-leading speakers and entertainers discussing best practices and business development. The final night featured a live auction of Eric Wahl paintings, and proceeds were contributed to The Ronald McDonald House.

Longtime friends Russ and Mary John Clark brought his wife Lee Arman kayaked alongside Anne, daughter Sarah, and son Kristel and Steve Strittmatter. Joseph along to enjoy the event festivities.

Ross and Keri Massey proudly showed off their well-behaved, beautiful daughter Alden during parts of the trip.

Beulah and John Hess-Yoder pedaled their bike 886 miles from Wilsonville, Oregon to Monterey to join their peers for the reward conference.

Maureen and Darrin Preheim won the auction of Eric Wahl’s Einstein painting and contributed to The Ronald McDonald House a sizeable donation comprised of an event raffle, live auction, and a Protective Life Foundation match.

For Advisor Use Only

Todd Hamlin, Robert Coode, Matt Riebel, Chad Hatter, Timothy Vardamon, Mike Hughes, Tom Eisenzimmer, and Dave Allen demonstrated their drive and putting skills at Spyglass Hill Golf Course.

JoinProEquities.com

New Website Launched to Facilitate Recruiting Efforts As we refine ProEquities’ position as a premier financial services company supporting independent advisors, RIAs, and BGAs across the US, we continue to adapt and modify the tools and resources available to demonstrate our commitment to customer service and high quality performance. We are excited to launch JoinProEquities.com. The new website was created to grow your business and ours. We understand the need to present consistent, modern material that represents ProEquities as a strong, stable company your clients can trust. To support the refreshed brand elements demonstrated throughout the site, visit Advisor Portal > Marketing HUB to download updated marketing collateral that introduces ProEquities to your clients. NEW RECRUITING WEBSITE PROVIDES ENHANCED FUNCTIONALITY • More user-friendly experience • Intuitive navigation structure • Descriptive, practical content throughout the site This site sets the stage for future web development of our other sites, including ProEquities.com and ProtectiveSecurities.com. For questions about the updated materials or general marketing needs, contact the Marketing and Communications Department at 205.222.2176.

For Advisor Use Only

JoinProEquities.com

TOP

2 0 1 6 FINANCIAL ADVISORS

CONGRATULATIONS TO OUR LEADING ADVISORS Paul Jarvis Chad Hatter Dave Allen Frank Lovaglio Chuck Carrick Peter Becker Hunter Flack Russell Kizer Todd Hamlin Bob Coode Robert Coode Keith Mitcham Michael Black Tom Eisenzimmer Mike Hughes Jamie Turk Danica Ansardi

Sheryl Austin Kyle Atkins Bill Dowell Rudi Siela Doug George JR Showalter Russ Arman Paul Marks John Clark John Hess-Yoder Trip Whatley Jay Kready Wayne Copelin Steve Bacon Robin Lawson Jason Sims Tim Long

Jan Labonne David Lampe Matt Arbo Steve Herendeen Jeff Looney Jeffery Hwang Joy Watkins John Rehkamp Robert Nursey Ken Askew Ronnie Paulk Kim HellermanHersman Ryan Leroux Jeff Peterson Joey Elmore Mike Allen

Talk to a recruiter about making the transition to ProEquities. Call us at 866-933-2163, or email Join.Us@proequities.com.

Speak with a customer service rep or reach someone at the home office. Call 800.288.3035, or email by using this general rule: Firstname.Lastname@proequities.com.

About ProEquities Founded in 1985, ProEquities, member FINRA/SIPC, is an independent broker/dealer-RIA with headquarters in Birmingham, Alabama. This wholly owned subsidiary of Protective Life Insurance Company supports more than 750 independent advisors nationwide in serving their clients. ProEquities and its partner firms help you maximize your effectiveness as an independent financial advisor. Learn more about our advisor-centric financial services and find out how we can help optimize your business.

ProEquities, Inc. 2801 Hwy 280 South Birmingham, AL 35223

We Listen. We take the time to listen so we can work with you to develop a solution for your financial needs. We Think. We consider what you tell us and ask clarifying questions so that we truly understand your overall objectives and the unique challenges that stand between you and your dreams. We Respond. Only then do we reply...not with a cookie cutter answer but with a personalized action plan...a roadmap that will help lead you in the direction you want to go.

JoinProEquities.com