listen, think, respond
Financial Insights and Growth Strategies | Winter 2020
COVER STORY:
Elevate the Client Experience Page 18
Building Portfolios to Benefit Clients
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Educate 401(k) Plan Participants and Receive Compensation
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26
Three Ways to Take Your Planning Business to the For Advisor Only | JoinProEquities.com NextUse Level
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listen, think, respond
Elevate the Client Experience As you pursue their financial objectives The client experience can transform the ordinary into opportunity, not just in retention but also into growth through targeted prospecting. There are many resources available to support your service delivery, boost your reputation and lift your brand. This issue revolves around the resources you need to elevate your client experience, including:
Chris Flint, President & CEO
• In-house consultants who deliver tailored advisory solutions, evidenced by the ProEquities 2018 Advisor of the Year, Chad Hatter (pages 6 and 7); • An advisory team that offers product variety balanced with due diligence processes that identify trusted solutions (pages 10 and 11); and,
Chris Flint SVP Distribution Companies and CEO ProEquities
• Examples from ProElite Advisory Board members on how they retain and delight their clients (pages 18 and 19). In addition to service delivery support, digital enhancements continue with Docupace. The Docupace platform will streamline the client onboarding process, digitize account processing and support e-signature capabilities. A group of advisors piloted the platform in November 2019 and a staged rollout is scheduled for the next several months. I look forward to seeing you in Dallas at the 2020 APEX conference, February 24 – 26. In the meantime, we’ll keep you informed about what is taking shape in our industry and the actions ProEquities is taking to enhance your business. Our quarterly webinars, the redesigned Weekly Digest with a “Did You Know” feature and our events like the 2020 APEX conference, all help serve this purpose.
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Contents Cover Story Elevate the Client Experience
18
Building Portfolios to Benefit Clients Educate 401(k) Plan Participants and Receive Compensation Three Ways to Take Your Planning Business to the Next Level
6 16 26
Wealth Management
Practice Management
4 Client Solutions Crafted by In-house Consultants
22 There is No Good Excuse for Failing to Have a Contingency Plan
10 Five Ways to Balance Product Choice and Due Diligence,
Client Acquisition
Resources and Support
12 Develop a Newsletter to Engage Clients
30 2020 Conferences: APEX and The Elite Summit 32 ProEquities Fast Facts 33 Welcome New Advisors
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Client Solutions Crafted by In-house Consultants by Chris Phillips, MBA, CFAÂŽ
Do you ever need support for investment analysis or portfolio construction? Email the PESolutions team of in-house consultants for help. Think of PESolutions as your one-stop shop for advisory, planning and product questions.
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Wealth Management Our PESolutions team recently worked with a group of advisors who wanted to transition a large piece of advisory business onto the ProEquities AMPSM platform. They were able to start fresh with the entire client group because they were new, so they had the opportunity to develop their portfolio construction process from the ground up. Due to the size and scope of the portfolio construction process, the advisory team reached out to PESolutions for help.
In-House Portfolio Construction Expertise
UMA Structure Boosts Efficiencies
We began the process with an in-depth review of how the assets were currently managed, referencing our own strategic asset allocation models and due diligence criteria of fund managers. This allowed us to map the portfolios needed for their clients based on relevant risk categories.
Ultimately, we built nine model portfolios for the team comprised of three risk categories for three investment ranges: $250K $500K, $500K - $1M and $1M+. These portfolios were added to the Unified Managed Account (UMA) structure on AMP, giving the team flexibility and efficiencies of the trading platform.
At the same time, we considered portfolio sizes, as different investments require different minimum investment amounts. For example, the ProEquities CorETF strategies require only $5K to open an account while some fixed income managers require $250K.
This example is one of the many ways the PESolutions team can help you deliver tailored solutions that elevate the client experience. Connect with us at PESolutions@proequities.com to build an effective investment advisory business personalized for your business model and your clients.
Chris Phillips Advisory Investments Director 205-268-7040 Chris.Phillips@proequities.com
“ They were able to start fresh with the entire client group because they were new, so they had the opportunity to develop their portfolio construction process from the ground up."
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Building Portfolios to Benefit Clients Chad Hatter, the ProEquities 2018 Advisor of the Year, stays busy every day servicing client accounts and conducting the due diligence and analysis necessary to purposefully make recommendations.
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Feature “Perhaps we were doing due diligence on the front end, but ultimately allowing ease of use and convenience to win out.”
Chad Hatter, CLU®, ChFC®, CASL®, RICP® President, Weaver Insurance & Financial Advisors, 540-943-1221 chad.hatter@weaveradvisors.com
With a sizeable client base, Chad wanted to make some changes to the breadth of selections he considered, yet change was going to demand deep analytics for which he feared he didn’t have time to properly conduct. On the horizon were the opportunities Envestnet offered, as Chad knew he did not wish to self-manage accounts.
PESolutions Gets Your Vision Several years ago, Chad heard about the PESolutions team and what their investment experts could do for advisors. While in Orlando at the ProEquities national conference, APEX, Chad had
coffee with Chris Phillips, Director of Advisory Investments.
some real ‘aha!’ moments for my whole team.”
Chris explained, “Chad, I’m your guy. I’ll take the time to understand your vision, the needs of your clients, and resources on our platform, and I won’t give up until you say, ‘That is it!’”
“One such moment was when we realized how often we (as advisors) get caught in a cycle of convenience,” said Chad. “Perhaps we were doing due diligence on the front end but ultimately allowing ease of use and convenience to win out.”
Steering clear of checking "style boxes," the relationship between advisor and internal consultant formed. Their ongoing collaboration led to outcomes that aligned with Chad's vision for his clients' needs — the best results he'd seen in a very long time. Chad remained in direct contact with his clients, always performing the due diligence from the top down, while Chris supported his efforts from the bottom up.
Due Diligence Reveals Innovative Ideas “There was a lot of give and take over several months with output being matched up according to the clients’ needs. But Chris and the team handled all the research and we handled all the customization,” explained Chad. “Our first comparisons showed some improvements in what we used to do but the hook was set; several iterations later produced
Advisors must be alert about ending up in a comfort zone. Ongoing due diligence and research are table stakes to being a reputable advisor – one who challenges themselves to consider ideas outside the box. Contacting PESolutions is one of the easier ways to get this review completed. “Chris took a lot off my plate,” said Chad. “He knew how to let ProEquities act as my personal finance committee. With more minds at work, how can you go wrong in enhancing client service and satisfaction?”
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IN-HOUSE CONSULTANTS FOR ADVISORY & PLANNING
PESolutions@proequities.com
Our dedicated PESolutions crew is your . . . • • • • •
Go-to investment research and due diligence team One-stop for advisory, planning and product questions AMPSM geek squad Annuity consultants Retirement plan consultants
Email PESolutions@proequities.com, and we’ll match you with the right professional.
WHO WE ARE Designations Include: 10
CFAs, CIMAs, CPFAs, CRPCs, CFPs, MBAs
Subject Matter Experts Dedicated to Serving You
147 53
Combined Years of Industry Experience
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Combined Years Practicing as Financial Advisors
Advisory Resources — SM
AMP Things to Know and How-Tos Best Interest Lists SM Personalized AMP Dashboard Portfolio Solutions Quarterly Spotlight Strategist and SMA Status and Quick Reference Guides Weekly Digest Newsletter
HOW DOES YOUR BUSINESS STACK UP? Find out with insights from the Loring Ward/ Dimensional Benchmarking Study KEY STATS FROM 2018 SURVEY
1,150 29% 15% 51%
participants in the survey Average profit margin Average Annual revenue growth rate Average revenue spent on human capital
TOP 3 CHALLENGES OF ADVISORS:
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Systematizing workflow processes
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Developing a marketing strategy
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Recruiting and hiring qualified employees
DFA Benchmarking Quick Summary, 2018 | 2018 Advisor Benchmarking Study, Business Assessment, Loring Ward | Survey responses are not exclusively from Loring Ward advisors/clients. Dimensional Fund Advisors (DFA) conducts the study, and provides the infrastructure and reporting. Loring Ward provides consulting, insights, and perspectives. | © 2018 BAM Advisor Services LLC d/b/a Loring Ward (“Loring Ward”) R 19-006
TO LEARN MORE ABOUT THE BENCHMARKING SURVEY AND LORING WARD, PLEASE CONTACT NRG@LORINGWARD.COM For Advisor Use Only | JoinProEquities.com | 9
Five Ways Advisors Can Balance Product Choice and Due Diligence by Libet Anderson, CIMAÂŽ
As seen on ThinkAdvisor.com July 2019
The onus is on firms to best coordinate the need for choice with processes that ensure that only the most appropriate solutions make it onto their shelves.
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Independent advisors look to their firms to empower their success. This includes everything from providing practice management expertise, to marketing support, to the most modern technology tools, along with a host of other invaluable services. Many, however, would likely say that no consideration is more important than having a reliable menu of investment products. This puts the onus on firms to balance the need for choice with processes that ensure that only the most appropriate solutions make it onto their shelves. Here are some challenges firms typically face when trying to pull off that balancing act and five ways they can best help advisors:
Providing Ongoing Due Diligence Every firm should perform due diligence on the front-end. The more difficult task is carrying out the necessary ongoing due diligence on existing products and investment strategies, which is a never-ending process.
Wealth Management Once a quarter, at a minimum, firms need to audit their platforms. When a mutual fund, for instance, undergoes a management change, often times it’s not front-page news, but it’s frequently the type of event that could lead to under performance. Alternatively, what if a high-yield bond fund did poorly after an interest-rate reduction, just when logic would suggest that such a fund should do well? Firms owe it to their advisors to let them know when investments on the platform may begin to deviate from previous performance.
Recruiting-Related Demands During the recruiting process, advisors often will make a specific product or manager a condition of their transition. Firms should fully evaluate whether such requests are worth hastily considering in this circumstance. Often, though, it’s clear why something isn’t available. For example, a manager has limited history or too few assets under management. Another common reason is a like option is already available that is performing just as well, or better. Typically, when firms assist advisors with understanding these factors, product-related ultimatums tend to disappear.
Firm Soliciting Informal RFPs When a firm feels like it has a void on its platform, sometimes they will routinely solicit requests for proposals from wholesalers to fill a gap. However, rather than tipping their hand by letting thirdparties know precisely what they are looking for, firms should ask for an explanation on what funds or managers they would invest in themselves. With this approach, it’s likely they’ll introduce their best offerings versus saying what they think the firm wants to hear, helping to ensure a more durable outcome for advisors and their clients.
Cleverly Designed Sales Pitches When fund managers and wholesalers present marketing materials or fact sheets, there may be a tendency to minimize unflattering details. A manager says they beat the index. Well, great, but how did everyone else do during the same period? Did they beat it, too, and maybe by a significant percentage? Their rolling average over three-years was off the charts. Why didn’t they disclose the calendar-year returns? There’s likely a reason why. Firms should be able to sift through these types of distinctions by taking an analytical, dispassionate look at each offering to determine whether they live up to marketing promise, and then find a way to communicate their findings to advisors.
Clients Asking Advisors For Access To Emerging Investment Strategies With impact investing sparking interest among clients, advisors are getting more and more inquiries about these strategies. Today, firms need to be aware of what products are available. The same is true about investing in cannabis, Bitcoin or opportunity zones as laws and attitudes toward these products further soften around the world. The dilemma for firms is that many of these investment vehicles that provide access to these emerging areas remain relatively unproven. Still, firms owe it to themselves and their advisors to better understand what’s out there. From an advisor’s perspective, perhaps nothing highlights the value of independence more than having a wide variety of product choices. Equipped with limited options, an advisor may feel, even if they are affiliated with an independent firm, that they are independent in name only. For firms, this type of unquenchable thirst for flexibility can create challenges, though nothing that honest communication and a set of robust due diligence processes can’t solve.
Libet Anderson Advisory and Planning Managing Director 205-268-7085 Libet.Anderson@proequities.com
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Develop a Newsletter to Engage Clients Contributed by FMG Suite
A newsletter, whether it’s sent weekly or monthly, is the best way to keep clients updated on your firm and the industry while nurturing prospects with engaging content. When you send out a regular email newsletter, you keep yourself top-of-mind and remind your audience they’re part of your circle of connections. You might have a prospect who quietly reads your newsletter for months, then finally pulls the trigger and gives you a call because of a particularly interesting article or update you sent.
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Client Acquisition
Follow our step-by-step guide to write a compelling newsletter:
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Select Topics
Curate Your Sources
Drive Traffic to Your Website
When creating your financial advisor newsletter, we recommend including a mix of topics. This could include:
Your newsletter shouldn’t just be a mix of topics, it should be from a mix of sources as well.
In most cases, you should not include full articles in a newsletter. It is better to tease the article so that the user decides to follow the link back to the original source. Each item in a newsletter should include a short blurb, around two to three sentences, a link to the full piece and ideally a picture.
• News about your firm (new hire, office move) • Industry news • Community information • Summaries and links to insightdriven content (yours or from reputable thought-leaders) • Personal news (recent vacation) While the exact mix is up to you, depending on the advisory’s tone, you should absolutely include both firm-related news as well as industry updates. This ensures that every reader will find something that interests them.
Curating valuable content is less time consuming than creating your own articles, but still is a great service to provide your readership. Remember to always credit the work and provide a small commentary on what they will read. Even though you aren’t driving traffic to your website, you are providing value, and that’s what counts.
This is the ultimate goal of your newsletter: take people to your site where you have a better chance of converting them to a client. By driving readers to your site, you’re able to increase traffic, increase the chance they’ll read your other content and eventually drive SEO and increase page rank.
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Find the Right Tone
Use Simple Design Tools
Create an Email List
Your clients are busy, just like you, and might get turned off from a newsletter that’s boring or too long. Your newsletter should tell your clients, “you’re part of our family” while still providing valuable information.
You may think it requires a graphic designer to create a newsletter. Luckily, building the newsletter in your FMG Suite dashboard is simple, no matter your design skill level, and only takes a few minutes. Make sure your newsletter includes branding elements like your logo, plus a few images to keep it visually interesting.
Now that you have your email, who do you send it to? Start with the email addresses of your clients and staff. Then, look through your notes for all your prospect contacts. Look through business cards you’ve collected, the connections you’ve made on LinkedIn, and referrals from current clients. Include their first and last name when you upload their information to your email provider, so you can auto-fill their name when you send it out.
Varying the source of your content can also add breadth to your voice. Some aspects of your newsletter can certainly be pre-created, such as the market insights you can find in your FMG Suite campaigns. For other parts, it should absolutely be written by you or another member of your team. This ensures your message feels personal and specific to your brand – not like it could have come from any other financial advisor in the world.
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You might want to consider organizing your list by syncing it with a CRM system like RedTail. CRM allows you to segment your audience and track your relationship with clients and prospects.
Client Acquisition
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Commit to a Delivery Schedule
Grow Your Contact List
It’s important to stay consistent in how often you send your newsletter, so your readers know what to expect. Sending during the first week of each month is a great place to start. If you notice strong open and click-through rates, you might want to consider sending updates bi-weekly. Just don’t get in over your head, as you may frustrate readers if you are too inconsistent.
Don’t forget to keep adding to your email list! If you collect some business cards at a community event, add them to your contacts. If you get an email from a potential prospect with questions about your business, make sure they get your next newsletter. Take your newsletter growth to the next level by installing a form on your website inviting users to subscribe.
Be cognizant of how many emails you are sending. If you have a message you need to get to clients, try not to send it on the same day a newsletter is scheduled. Over saturation of email messages results in unsubscribes and a shrinking email list.
Sending a regular newsletter to your clients and prospects keeps you top-of-mind every month. You never know when your newsletter will land in an inbox that gets you an exciting new client!
Charlotte Spangler Marketing Strategist FMG Suite
“ This is the ultimate goal of your newsletter: take people to your site where you have a better chance of converting them to a client."
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Educate 401(k) Plan Participants and Receive Compensation The primary reason employees don’t take full advantage of employersponsored retirement plans boils down to complexity around asset allocation. What if you were equipped to deliver education and personalized recommendations while being compensated for your time?
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Feature Clients often ask advisors to review their employer plan options and help select the appropriate investment mix. Previously, advisors were limited to very broad references on asset allocations, like 60% equity and 40% fixed income, when describing a “balanced” portfolio.
Get Specific with the Plan Participant Tool ProEquities has a practical approach to deliver client education for asset allocations in employer-sponsored retirement plans. The Education Model for Retirement Plan Participants is available to advisors that have no connection to their client’s plan. The model allows you to educate clients about their investments and provide instructions on how to allocate assets to meet personal goals. To begin the education process, discuss and document the client’s risk tolerance. Then find out when the retirement plan assets will be distributed and if there might be other assets to consider for retirement planning like an inheritance. Now the investment strategy can begin. To populate the model, the client provides a list of employer plan investment options. After your allocation recommendations are delivered, your clients will sign the Financial Services Agreement acknowledging they understand the proposal.
Charge for Education Services Advisors can charge up to $500 annually for this service. To receive payment, a signed copy of the Education Model for Retirement Plan Participants and the Financial Services Agreement must be submitted via STP Transaction code 2300. This process empowers clients to make modifications to their retirement accounts based on their risk tolerance and the specific investments offered in their employer’s plan. Because advisors deliver recommendations without accessing the client’s plan, some modifications may not be implemented by the client.
Download education services forms from Advisor Portal > Advisory, Planning & Product > Financial Planning > Tools & Resources > Financial Planning Tools and Forms.
Delivering education for retirement savings is a great way to elevate the client experience. Clients are more engaged in reaching their long-term retirement goals when they understand their personal risk tolerance and appropriate asset allocation.
Beth Anderson Retirement Accounts Director 205-268-8316 Beth.Anderson@proequities.com
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Elevate the Client Experience Members of the ProElite Advisory Board demonstrate service excellence in different ways. Whether it’s leaning on their sales team to customize meetings, community events for ongoing engagement, handwritten notes to stay in touch or a unique segmentation structure, these advisors share tips for retaining and delighting clients. In their own words, here are practical examples to help elevate your clients’ experiences.
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Troy Perkins Perkins Financial The Woodlands, Texas “Perkins Financial recently bought a practice with an RIA that had a team of very detailed-oriented office staff. They have kept the new business in fine shape and have made such a positive impact on the overall organization.” “I’ve gone back and forth about the need for assistants, but this recent experience has been so incredible, I know the investment is well worth it to enhance the client experience. Our team
Cover Story prepares thorough notes prior to client appointments, including family updates and discussion recaps. This allows me to deliver personalized service to our clients, keeping track of what’s happening with their finances as well as their personal lives.”
Danica Ansardi, CLU®, ChFC®, MBA Ansardi Financial Services Belle Chasse, Louisiana “I hired a marketing and community coordinator to support a number of client appreciation events throughout the year for ongoing engagement. Shred Day is a mini festival designed to safely dispose of sensitive documents. I do a press release, underpin that with social media and invite members of the community, promoting the event alongside the firm’s brand and mission statement. I also host an annual cocktail party at my home for all new clients and their referrals. And our Yappy Hour invites clients to bring their dogs, enjoy wine and appetizers and donate to a local animal shelter.” “I also feel strongly about the office environment and think that has a significant impact on client experience. When you walk in our lobby, it feels just like my home — it’s warm and inviting with candles burning and warm cookies on the table. My staff offers several options for coffee and tea to make them feel comfortable. We also
have a reserved parking space for clients near the entrance, and I’ve even noticed some take a picture of it and post it to Facebook! I know we want our work to be the real ‘wow factor’ but extras definitely set the stage.”
Kim Hellerman-Hersman, ChFC® HB Wealth Advisors Mentor, Ohio “Comfort is key for a positive client experience. I have a super staff who enjoys laying out pastries and an assortment of beverages to prepare for client meetings. I also encourage clients to bring their kids, and if they become too distracting, a staff member keeps them company in the next room. My philosophy is that initial meetings are for building trust — sharing, listening and getting to know one another. There is no pressure for checks to be written, because that happens when it happens.” “To let clients know I’m thinking about them throughout the year, I send cards for birthdays, holidays, anniversaries and sympathy notes. I also customize the American Lifestyle magazine and mail to clients each quarter in addition to leaving a few copies in waiting rooms for prospective clients to find. My staff also contacts clients quarterly to ensure their needs are met and schedules a meeting to address any questions or concerns.”
Robin Lawson, CFP® Financial Solutions La Grange, Kentucky “We have a structured approach to serving the client experience. I divide clients by revenue or assets into A, B, C and D segments to define different levels of service. Clients that are A, B or C have scheduled reviews and D clients are service-only without planned calls or reviews. We meet with A clients four times a year, B clients biannually and C clients annually. Clients may request a downgraded service level and sometimes are upgraded based on growth potential.” “We had a very talented summer intern, now an employee, who developed a key client initiative called the First 100-Day Experience. The program focuses on the onboarding process and clearly defines touchpoints throughout the first three months of acquiring a new client, including handwritten thank you cards, phone calls and emails with social media invites and setup instructions for online account access. I’m happy to share our template if you’re interested.”
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Based on data from LIMRA Secure Retirement Institute, The Inner Workings of Retirement Timing, Consumer Behavior and Attitudes (2018). Protective® is a registered trademark of Protective Life Insurance Company (PLICO) and Income Builder is a trademark of Protective Life Insurance Company. All payments and guarantees are subject to the claims paying ability of Protective Life Insurance Company. Neither Protective Life Insurance Company nor its representatives offer legal or tax advice. Purchasers should consult with their legal or tax advisor regarding their individual situations before making any tax related decisions. Annuities are long-term insurance contracts intended for retirement planning. Protective Income Builder is a limited flexible premium deferred indexed annuity contract issued under contract form series FIA-P-2011 or FIA-P-2010. The Guaranteed Income Benefit is provided under form series FIA-P-6048. Protective Income Builder is issued by Protective Life Insurance Company located in Birmingham, AL. Contract form numbers, product availability and features may vary by state. Protective Income Builder is not an investment in any index, is not a security or stock market investment, does not participate in any stock or equity investment, and does not contain dividends. 1
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There is No Good Excuse for Failing to Have a Contingency Plan by Tammy Robbins
As seen on WealthManagement.com, October 2019
The number of advisors who have comprehensive plans spanning short- and long-term disability, death and even disaster recovery remains frighteningly low. That needs to change now. 22 | JoinProEquities.com | For Advisor Use Only
Whether it’s hurricanes like Dorian that routinely pummel the Southeast and parts of the Atlantic coast or the wildfires that wreaked havoc up and down the West Coast last year, summer has a way of reminding everyone in our industry about the importance of having a disaster recovery plan. Thankfully, many advisors have taken the time to cover this aspect of contingency planning, putting procedures in place that protect against devastating weather events, a fire or even a terrorist attack. When it comes to other elements of contingency planning, however, most advisors haven’t been quite as proactive, slow to draw up plans that deal with short- and long-term disability, as well as death. Theories abound for why this is the case. One is that advisors are very protective of the businesses they have built and are uncomfortable imagining anyone else running them. Another is that they don’t want to consider their own mortality.
Practice Management Whatever the case, there is no good excuse for failing to have a contingency plan. Advisors devote their entire professional lives to helping others plan for the future but then don’t do the same for themselves? It’s nonsensical. With that in mind, consider the following essential contingency planning questions:
Is My Plan Valid? Often, advisors think they have a plan that covers them in case of death or disability, but upon closer inspection, they either haven’t filed it with their broker-dealer, or it lacks the required language that makes such agreements valid. While many in our industry came of age at a time when back-ofthe-envelope agreements were commonplace, a more formalized approach is the best way to protect your business, your clients, your heirs and your staff. Check with your firm to see whether they have a template to use to make sure you are using the mandated verbiage. Otherwise, you’ll have to pay a securities attorney to draw up your paperwork, which can be costly. Then, once you have drafted a formalized agreement,
take the time to discuss it with the appropriate person at your firm and put it on file. Without taking that step, broker-dealers have a limited ability to compensate would-be contingency plan partners, allow them to service existing clients and ensure your heirs and/or estate are receiving the compensation you intended.
When is The Last Time My Practice Was Valued? Some firms have tools that not only allow advisors to find out what their practice is worth but also what steps they can take to boost its value. However, most consult these services too infrequently, using them only as they near retirement or on a one-time basis when they want ideas for how to improve growth. But these tools also help with contingency plans. Contingency plans should include not only the beneficiary information and current contingency partners but also reflect the current valuation of the business. If an advisor doesn’t regularly value their practice, it could end up hurting their estate. By continuously leaning on tools that benchmark and appraise businesses, advisors can better avoid that pitfall.
Can Someone Support My Business in a Pinch if Something Happens to Me? For many advisors, it’s not possible to have a contingency partner who lives and works in the same town. That could be because they are in a remote area or merely because they couldn’t find the right fit for their clients. So, they look outside the city limits. In these cases, it may not be possible for the contingency partner to assume the sidelined advisor’s responsibilities immediately. This is where firms should step in to fill the void by servicing clients, managing staff and communicating with beneficiaries. But what happens if an advisor has a contingency plan on file with their firm but no partner? A firm should be able to find a suitable match to take over the business, allowing an advisor’s estate to benefit if a long-term disability or death occurs.
" Advisors devote their entire professional lives to helping others plan for the future but then don't do the same for themselves? It's nonsensical." For Advisor Use Only | JoinProEquities.com | 23
Contingency planning resources are available on Advisor Portal to prepare your business for the unexpected.
Should I Have an In-House Contingency Partner? Critics always say that it’s very selfserving for firms to tout the benefits of having an in-house contingency partner. Nonetheless, the reality is that such an arrangement is no doubt more beneficial to all interested parties because the transition is far simpler. That’s due to a variety of reasons, including: • Advisors are incapable of servicing out-of-network accounts, even in the shortterm;
• Clients, familiar with the firm and its process, will face far less disruption, underscored by the fact that they would not have to repaper their accounts; • Client-facing technology, service center support structures and account statements remain the same; and, • Because broker-dealers are limited in how they can compensate outside partners, in-house advisors better protect the practice’s value and, thus, the estate.
The good news about contingency planning is that as clients begin to age, more of them are asking advisors about their plans for the future. That has sparked a greater sense of urgency across the industry. At the same time, the number of advisors who have comprehensive plans spanning short- and long-term disability, death and even disaster recovery remains frighteningly low. That needs to change now.
Tammy Robbins Business Development Managing Director 205-268-1796 Tammy.Robbins@proequities.com
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How can we help you deliver financial wellness? Learn more
The services and materials described herein are provided on an ‘as is’ and ‘as available’ basis, with all faults. Nothing contained in this presentation is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Envestnet reserves the right to add to, change, or eliminate any of the services and/or service levels listed herein without prior notice to the advisor or the advisor’s home office. © 2019 Envestnet, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT INTENDED FOR PRIVATE INVESTORS.
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Three Ways to Take Your Planning Business to the Next Level by Libet Anderson, CIMA®
As seen on InvestmentNews.com, June 2019
It’s no secret that there’s been a trend toward providing advice and planning. This has been a good development, reflecting not just evolutions in the regulatory world but the preferences of an increasing number of investors. 26 | JoinProEquities.com | For Advisor Use Only
Feature For advisors who are making this shift — or those who have focused on planning for years but are in the process of reevaluating their practice — here are some ways to jump-start your planning business.
Listen! Don’t approach planning with all clients the same way, using the same technology, the same communication plan and the same fee structure. That might be a mistake. Many clients, for instance, will never read a detailed market data report, nor do they care about tech bells and whistles that provide granular insights into their plan. Indeed, they may just want something that will tell them whether they are on track to reach their goals, caring very little about the journey, only the destination. You could also encounter prospects who want help with just one of your services, such as college planning. If you have the scale, it could be worth coming up with a pricing structure for a la carte offerings like that. While most advisors listen to their clients, many don’t hear what they say.
Segment All Aspects of Your Business
clients log in to their accounts or make changes to their plan.
Advisors have used segmentation techniques to prioritize the clients who provide the best opportunities for growth, based on assets or in some cases potential assets.
Getting frequent alerts — especially during times of hyper-volatility — would be a surefire signal it’s time to pick up the phone or schedule a meeting. More and more advisors are being tasked with tempering their clients’ emotions, so it’s easy to see why they would want access to a platform like this.
Advisors should apply this basic concept to planning as well, segmenting clients, for example, based on the various stages of their life. When filling out a profile, use different technology tools in addition to varying fee structures. Find out what your clients want and then be sure to have the tools, platforms and flexibility that can deliver it to them.
If You Don’t Have What You Need, Ask for It If you are clamoring for a strategy or service that could help meet the needs of your clients, whether it’s a piece of technology or an investment model, talk to your firm and ask them to add it. With behavioral finance becoming more of a focal point, for instance, advisors are increasingly sensitive to the ways fear and anxiety can roil the investment process. New tech platforms are hitting the market that will alert advisors when
Advisors should always be willing to take a close look at their businesses to see where they have opportunities to improve. That’s true whether you’re relatively new to the industry or a longtime financial services industry veteran. At the same time, when advisors try to grow and evolve, firms must be a big part of that process, always searching for ways to help them.
Libet Anderson Advisory and Planning Managing Director 205-268-7085 Libet.Anderson@proequities.com
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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. The 2016 & 2018 "Strategist of the Year" awards are based on using the systematic, proprietary, and multi-factor evaluation methodology developed by Envestnet | PMC. The evaluation framework considers performance, firm profile, customer service, investment process and style, composite, tax efficiency, and other quantitative and qualitative criteria. JAForlines’s receipt of these awards is in no way indicative of any individual client or investor’s experience with JAForlines or W.E. Donoghue & Co., LLC or of future performance. For broker/dealer use only.
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Fast Facts We think like entrepreneurs, because that’s who we support. Founded in 1985, ProEquities is an independent RIA with a broker/dealer headquartered in Birmingham, Alabama. We have over 500 FINRA registered offices and support more than 700 independent financial advisors nationwide who, in turn, serve over 160,000 clients. Our advisors include investment advisor representatives, registered representatives, and registered investment advisors who work through hybrid RIA service models. ProEquities is a wholly owned subsidiary of Protective Life Corporation.
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Wade Cooper
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ProEquities
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ProEquities
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Living Legacy Financial Group
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Bank of America
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Messiah College
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Voya Financial Advisors
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ProEquities
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Your Vision for Success Demands More Your expectations are a starting point, not the finish line. ProEquities constantly raises the bar to help drive your success.
Advisors change firms because they’ve decided they want more — they need more, and they deserve more — to reach their future vision of success. And since 1985, ProEquities has been the destination of choice for ambitious and entrepreneurial advisors seeking a firm that can deliver more.
Our Story ProEquities is an independent RIA with a broker-dealer headquartered in Birmingham, Alabama. We have over 500 FINRA registered offices and support more than 700 independent financial advisors nationwide who, in turn, serve over 160,000 clients. Our advisors include investment advisor representatives, registered representatives and registered investment advisors who work through hybrid RIA service models. ProEquities is a wholly owned subsidiary of Protective Life Corporation. Talk to a Business Development consultant today about joining a firm that can deliver more.
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