LTC — A Quality of Giving the Media Life Decision 8 the · 2017. 10. 9. · February 19–23, 2007, Australia February 24-28, 2007, New Zealand MarketShare Leadership Convention

Serving Financial Advisors Worldwide

theLTC — A Quality ofLife Decision ... 8

Don’t Do It! (Yet)Microsoft Releases ... 16

Giving the MediaWhat They Want ... 21

Vol. 8 No. 1 • January 2007 Official IARFC Publication www.IARFC.org

IARFC 2007 Alaska Cruise ConferenceVancouver to Alaska August 17-24, 2007

Get Your CE at Sea and Network with Leaders of the Profession

Begin in Vancouver, British Columbia and cruise the calm and scenic Inside Passage, stoppingin Ketchikan, Juneau, historic Skagway, and Alaska’s wilderness port Icy Strait Point, HubbardGlacier and on to Seward. View the majestic peaks and thousands of untouched wooded islands.Short wildlife trips get you close to whales, moose, harbor seals, bald eagles and mountaingoats. Watch bears fishing for salmon. You’ll be awestruck as you sail alongside the constantlycalving Hubbard Glacier. Enjoy a local salmon bake and embark at Seward for transfer toAnchorage and optional tours.

800 532 9060 www.IARFC.org

The Register • January 2007 Page 1

The Register is published monthly by the International Association of Registered Financial Consultants ©2006, 2507 North Verity Parkway, Middletown, Ohio 45042-0506.It includes articles and advice on technical subjects, economic events, regulatory actions and practice management. The IARFC makes no claim as to accuracy and does not guarantee or endorse any product or service that is advertised or featured. Articles, comments and letters are welcomed by e-mail to: Wendy M. Kennedy, Editorial Coordinator, [email protected] SSN 1556-4045 Application to mail at periodical postage rates is pending at Middletown, OH and additional mailing offices.POSTMASTER: Send address changes to, P.O. Box 42506, Middletown, Ohio 45042-0506

Financial Planning Building2507 North Verity Parkway

P.O. Box 42506Middletown, OH 45042-0506

800 532 9060 • Fax 513 424 5752www.IARFC.org

BOARD OF DIRECTORS

Edwin P. Morrow, Chairman & CEOCLU, ChFC, CFP®, CEP, RFC®

[email protected]

Judith Fisette-Losz, Executive [email protected]

Lester W. AndersonMBA, RFC®

[email protected]

H. Stephen Bailey, PresidentLUTCF, CEBA, CEP, CSA, RFC®

[email protected]

Jeffrey ChiewDBA, CLU, ChFC, CFP®, RFC®

[email protected]

Vernon D. GwynneCFP®, RFC®

[email protected]

Derek D. KlockMBA, RFC®

[email protected]

Edward J. LedfordCLU, RFC®

[email protected]

Constance O. LuttrellRFC®

[email protected]

Ruth LyttonMS, Ph.D., RFC®[email protected]

James McCarty, SecretaryCLU, RHU, LUTCF, RFC®

[email protected]

Burnett Marus, TreasurerRFC®

[email protected]

Rosilyn H. OvertonMS, CFP®, RFC®

[email protected]

Ruben RuizChFC, CLU, MSFS, CSA, RFC®[email protected]

Michael ZmistowskiRFC®

[email protected]_________________________________

Wendy M. Kennedy, Editorial [email protected]

Stephanie Langster, Administrative [email protected]

in this issue

2 The 2007 IARFC Calendar of Events

3 Extending Financial Planning Throughout China The Mission of Liang Tien Lung

6 Growth Continues at Money Concepts

6 From the Chairman’s Desk by Ed Morrow

7 IARFC Financial Report for Years 2005 - 2006How the Association is Spending Your Money

8 Long Term Care Insurance… A Quality of Life Decision by Louise Fallica

10 Cato Comments – About Your Image... Why Is This Young Financial Planner So Successful? by Forrest Wallace Cato

12 RFC Executive Honored in ChinaDr. Teresa So — One of 100 Outstanding Women Entrepreneurs

13 What’s Your Intellectual Status Quo?Would You Like to Be an RFC Instructor?

14 Compliance Friendly Marketing Helping Children Reach Prosperity Thinkingby Katherine Vessenes

16 Don’t Do It! (Yet) —Review of the New Software from Microsoftby Ed Morrow

20 Consumer Focus — Identity TheftA Growing Opportunity for Financial Advisorsby Paul Richard

20 RFC Part One Course — to be held in Middletown in January

21 Giving the Media What They Want: the Dos, Don’ts and Pitfallsby Lisbeth Wiley Chapman

22 Business Mirrors Life — Cloning Warren Buffetby Hesh Reinfeld

23 Internet Marketing Starts with Key Wordsby Sylvia Todor

The Register • January 2007

Register LettersWe welcome your thoughts and ideas.Please direct correspondence to:

[email protected] may be edited for length and clarity.

INTERNATIONALIARFC COORDINATORS

Jeffrey ChiewAsia Chair

DBA, CLU, ChFC, CFP®, RFC®[email protected]

Liang Tien LungChina Development Organization (IMM)

RFC®

Ralph LiewPhilippines Chair

RFC®[email protected]

Tony BalmoriExecutive Assistant

[email protected]

Jerry TanSingapore Chair

CIAM, CMFA, RFC®[email protected]

S. L. ChooChina Chair, Shanghai


Samuel W. K. Yung, MHChair, Hong Kong and Macao

CFP®, MFP, FChFP, CMFA, CIAM, RFC®[email protected]

Dr. Teresa SoAdvisor, Hong Kong and Macao

PhD, MFP, FChFP, CMFA, CIAM, RFC®[email protected]

Allan WanRFC®

[email protected]

Ng Jyi WeiMalaysia Chair

ChFC, CFP®, RFC®[email protected]

Aidil Akbar Madjid Indonesia Chair

MBA, RFC®[email protected]

Lisa SoemartoMA, RFC®

[email protected]

Richard WuTaiwan Chair


Preecha SwasdpeeraThailand Chair

MPA, MM, RFC®[email protected]

Demetre KatsabekisGreece Chair

MBA, Ph.D, RFC®[email protected]

You Can Write A Great Articlefor the Register

We are accepting articles from500 to 2,500 words on planningand practice management topics.Please submit your copy by e-mail,along with an electronic photo andshort bio statement of less than100 words to: [email protected]

Your fine article can be sent toclients, prospects and centers ofinfluence in your community —either as a reproduction, or as acomplete copy of the entire issueof the publication. Get Noticed!

RFC Course — Part OneClient Acquisition & EngagementJanuary 16-17, Middletown, OhioSee page 20 for Information

Critical Illness Insurance ConferenceFairmont Hotel January 25-27, 2007, Victoria, BCwww.Criticalillness.ca

Organizational Launch MeetingsFebruary 19–23, 2007, AustraliaFebruary 24-28, 2007, New Zealand

MarketShare LeadershipConventionMarch 6-9, 2007, Las Vegas, NV

Financial ExpoSponsored by the FPA, SFSP, NAIFAand the IARFCMarch 22, 2007, Tampa, FL

APfinSA ConferenceApril 13-15, 2007, Taipei, Taiwan

IARFC Financial Advisors ForumMay 15-17, 2007, Las Vegas, NV

MDRT Annual MeetingJune 10-13, 2007, Denver, CO

International Dragon AwardsAugust 11-13, 2007, Xiamen, China

IARFC Cruise/Conference — AlaskaAugust 17-24, 2007Vancouver, BC to Anchorage, AK

RFC Forum — ChinaSeptember, 2007, Dalian, China

RFC Forum — MalaysiaSeptember, 2007, Kuala Lumpur

Get Involved: We welcome thesubmission of articles from IARFCpractitioners. This is a great way tocontribute to the profession.

Professional Articles: The Journalof Personal Finance is seekingarticles by practitioners that maydeal with the application offinancial planning techniques,marketing and practicemanagement. These are expectedto be very high level papers orarticles.

Publicity Opportunities: Naturally,we encourage published authors toadvise both their clients and themedia of their being published bysending a press release.

Contact Dr. Ruth LyttonE-mail: [email protected]: 540 231 6678

The Journal ofPersonal Finance

Call for Papers

2007 Calendar of Events:

The mission of Liang Tien Lung, RFC®, a native of Taiwan is quite modest —to increase the professionalism of lifeinsurance agents and financial advisorswho serve one and one half billionChinese speaking persons in Asia… and he is doing it!

After a career in agency training at one ofthe most prominent companies in Taiwan,Cathay Life, he formed InsuranceMarketing Magazine in 1983. But swiftlythe focus of the company expanded fromprint media to a variety of educationalopportunities and outreach programs. Asthe range of the company reachedSingapore, Malaysia, Hong Kong, Macauand China, the name of the firm waschanged to IMM International.

Magazines and Books

IMM now publishes three magazines, eachfrom 100 to 126 pages in full color andbeautifully illustrated. Advisers magazineis published in two editions — one intraditional (Mandarin) Chinese for themarket in Taiwan, Hong Kong, Malaysiaand Singapore. A different version ofAdvisers is published in “Simplified”Chinese for distribution in China and thetext of the articles are a bit less technical,since the financial services industry is notyet as mature in mainland China.

Both editions of Advisers include articleshelping the agents transition to financialadvisory focus, frequently including copyfrom Ed Morrow, the Chairman and CEO ofthe IARFC — who often speaks toassociation meetings across Asia.

IMM still continues to publish InsuranceMarketing magazine which is very popular

with supervisors, managers and homeoffice executives as well as agents.

IMM also publishes and distributes books — some written by the outstandingand elites from the industry throughoutTaiwan, Hong Kong, USA, Malaysia,Mainland China and many by notedinsurance agents and financial advisors,such as Jack and Garry Kinder, RFC®, BenFeldman, Norman Levine and John Savage.

Events and Recognition

Recognizing the need for Chinese speakingagents to have a localopportunity formotivation andeducation, Mr. Liangfounded the World Wide Chinese LifeInsurance Congress(WCLIC), with the first bi-annual session beingheld in 1996 in Taipei.The featured speakerthen was MehdiFakharzadeh, RFC® ofNew York City — whoagain addressed the

6,400 attendees at the 2006 Congress inChengdu, China.

The WCLIC symposium is a four day eventwith the number attendees ranging from6,000 to 8,000. Until 2004, all sessionshave been presented in MandarinChinese. Translated sessions in Englishon the topic of Financial Planning wereadded in 2004 and these will beexpanded in future years as the financialplanning format becomes morewidespread in Asia.

IMM also provides consulting and trainingservices to life insurance companies —aimed at advancing agents, supervisorsand agency managers.

Liang also identified that life insuranceagents need a way to receive industryrecognition for their achievements andservice. So he created the IDA(International Dragon Awards) and they rapidly increased in popularity. Last year over 2,000 persons qualified for the Gold, Silver or Bronze Awards. In 2007 a new level, the Platinum Awardwill be presented for significant and

Extending Financial Planning Throughout China

continued on page 4

Liang Tien Lung, RFC (right) is shown conferring with Bo Xilai, outside the Convention Centerat Dalian, China, during the Worldwide Chinese Life Insurance Conference organized by IMMInternational. Bo was then the Governor of the 83 million population Liaoning Province, andhe is now one of the most influential men in China, as Minister of Commerce. He openedthe Conference, and his remarks were followed by those of IARFC Chairman, Ed Morrow.

Liang Tien Lung, RFC, in the center, shown with Siak-LeungChoo, RFC®, on the left and Richard Wu, RFC®, at a ceremonyhonoring their appointments as Chairs for the 2008 WCLIC inSingapore and the 2007 IDA in Xiamen, China, respectively.The Register • January 2007 Page 3

continued from page 3 Expanding Financial Planning

sustained production — at levels aboveMDRT Top of the Table.

The International Dragon Awards arepresented at WCLIC and on alternateyears at an IDA conference — usuallyabout half the size of WCLIC, where focusis really more on CE than recognition.

For example IDA 2007 will be held in thecity of Xiamen (population 1.5 million) onthe east coast of China — a beautiful andhistoric maritime city. Attendance is nowfully subscribed for the maximum 2,000for August 10-12, 2007. The 7thWorldwide Chinese Life InsuranceCongress will be limited to the first 5,000registrants, to be held in Singapore,September 4-7, 2008 — and there’s nodoubt it will be fully subscribed.

To produce each of these events the staffof IMM usually includes over 100 of thecompany’s 275 employees, plus morethan 100 students recruited from localuniversities. Normally these are graduatestudents majoring in communication,marketing, business, economics orfinancial services.

Education and Training

In 2002 IMM accepted the challenge toextend financial planning throughoutgreater China and the results have beensignificant for the IARFC.

In Taiwan, under the leadership of RichardWu, RFC®, there are offices in four cities,Taipei, Kauhsiun, Taichiumg and Tainan.RFC® classes have been held in each, aswell as in the cities of Hualien andTauyun. Special classes and enrollmentprograms are in place for 15 companiesand the number of RFCs in Taiwan willtotal 1,300 by the end of 2006.

To penetrate the Hong Kong and Macaomarket, Liang formed a separate firmincluding highly respected local insuranceprofessionals Samuel Yung and Dr. TeresaSo. With the administrative support ofAllan Wan, the organization partneredwith the General Agents and ManagersAssociation and the Poon Kam KaiInstitute of Hong Kong University. Classesare being formed in Macau with adifferent educational sponsor, the MacauInter-University Institute.

In China, under the leadership of S. L.Choo, RFC®, there are office in Shanghai,Guangzhou, Beijing, Hangzhou, Dalian andChengdu. In order to provide the betterservices to the RFC members in China, the

IARFC China Region haddeveloped the Code ofEthics and ProfessionalResponsibility,Disciplinary Rules andProcedures, financialplanning practicestandards, authorizationto use the IARFC and RFCMarks, the requirementas a RFC member. RFCclasses are being offeredin Beijing, Shenyang,Tianjin, Guangzhou,Shenzhen and Dalian,with more classes beingorganized. Theeducational sponsor isBeijing Union University,one of the largestinstitutions in the capital city.

Personal Background

Mr. Liang has threechildren, each of whichwas educated in theUnited States. His eldestdaughter, JJ Han-YingLiang, who holds boththe RFC® and CFP®designation, graduatedfrom San Diego StateUniversity, San Diego, CA,where she acquired twoMBA degrees (BusinessAdministration andInformation SystemMSBA), and previouslyworked with CrowellWeedon, Corp. in theUnited States as aFinancial Planner and currently with FortisWealth Management Taipei, as anInvestment Professional.

His son, Ben Chia-Ho Liang, is a graduateof Grossmont College, San Diego, CA, whoholds a Bachelor Degree in ComputerScience, and currently works at IMM as aSales Executive. He has been especiallyeffective helping with al the technology atthe large events produced by IMM.

His youngest child, Jackie Chia-Tzu Liang,is a graduate of San Francisco StateUniversity, San Francisco, CA, who holds aBachelor Degree in News Broadcasting,and she is currently advancing her studiesin Japan.

We visited with Mr. Liang at the recentWorld Wide Chinese Life InsuranceCongress in Chengdu, China where

he successfully orchestrated all of the IMM employees, volunteers, speakersand the 300 executives of the lifeinsurance companies. We asked him the following questions…

Do you feel the life insurance industrywill continue its rapid expansion in Asia?

Yes, especially in the emerging markets such as India, Vietnam andMainland China.

What do you feel will be the role ofRegistered Financial Consultants in thedelivery of financial services in China?

The life insurance industry in China hasgrown rapidly in the past 13 years andnow is the time for transition — in order tobuild the professional image of the

Page 4 The Register • January 2007

continued on page 5

Liang Tien Lung, Mehdi Fakharzadeh, and Ed Morrow at theFinancial Advisors Forum 2006.

Shown here are Siak-Leung Choo, Charlie “Tremendous”Jones, Liang Tien Lung, and Richard Wu following the well-received presentation by Jones at the Financial AdvisorsForum 2006.

continued from page 4 Expanding Financial Planning

industry. The RFC emphasis on theclient’s interest, integrity, ethical, fairness,professionalism, competence is based onthose principles to help people benefitfrom financial planning. The core valuesof RFC will increase the healthiness of theindustry and finally, benefit the clients.

Does IMM plan to continue publishingbooks and are you looking for more titles?

Yes. Besides the Chinese authors, wework closely with the MDRT PowerCenterto bring the intelligence of the MDRTmembers to the Chinese underwriters.For example, IMM worked with the MDRTPowerCenter to translate and publishbooks, such as Million Dollar ClosingTechniques, Million Dollar ProspectingTechniques, Million Dollar SellingTechniques, Expecting Referrals, TheMDRT Objections Handbook, Savage onSelling and with other publishers fromUSA, UK, Japan and Korea.

We have published more than 100 bookswhich coverage the topic of motivation,sales ideas and technique, handlingobjection, prospecting, selling process,insurance story, insurance writing,recruiting, biography, trend analysis,management and we are looking for moretitles on practice management andfinancial planning.

You now have six offices in China, five inTaiwan, Hong Kong and also Malaysia.Do you plan to continue expansion toother countries in Asia?

I will focus on the management anddevelopment on the existing IMM offices.However, if the opportunities presentthemselves, we will consider and plan tocontinue the expansion of IMM to othercountries.

Do you feel that life insurance companiesin Asia will add the marketing ofsecurities as they have in America?

It depends on the market in each differentcountry and region. The maturity of thelife insurance industry is very different invarious countries and regions. I think thatwhen the Asia market is as mature as inAmerica, most insurance companies willbe offering securities.

What do you feel will be the greatestneeds of Asian insurance agents andfinancial advisors in the next few years?

The values and principles of integrity,fairness, ethical selling and client’s

interest. Besides that, theprofessionalism of the industry is veryimportant also because it will help theunderwriters be competent and supportthe healthiness of the industry.

What can the IARFC do to help agentsand financial advisors in Asia?

Emphasize and promote the principles ofRFC. Advocate the right ethical andservice values to be a professionalfinancial advisor. What the IARFC is doingright now in Asia is to help agents totransform from a life insuranceunderwriter to a professional financialadvisor through the training, educationand continuing education programs.

You have delegated responsibility for the2007 IDA conference to Richard Wu,RFC®. What do you feel will be hismajor challenge in presenting nextAugust’s conference in Xiamen?

Before Richard Wu took over as the IDA Chairman, he served the committeeas the Vice Chairman and Chief Executive. He is a very creative andtalented leader. The major challenge for Richard will be to advocate andpromote the spirit of IDA, which is thespirit of Paragon, Perfection, and Noble pursuit of high-quality life,obedience to professional principles,practice of moral integrity, establishmentof occupational dignity, and cultivation ofa sound career environment. IDAadvocates and promotes its members’ lifequality as well as builds up their statusand honor internationally. I am sureRichard has very good ideas to bring theIDA and will lead this event to a higherstandard. I have the confidence thatRichard will lead his outstandingcommittee members to organize the 2007 conference in Xiamen as the best IDA ever.

The responsibility for the 2008 WCLIC in Singapore has been placed with S.L. Choo, RFC®. Do you expect him to present any unique events or opportunities?

S. L. Choo has vast experience inorganizing major conferences. Since theWCLIC was founded, he served thecommittee as the Vice Chairman,Executive Vice Chairman and ChiefExecutive. The spirit, values and theprinciples of WCLIC will be continued byhis leadership. Choo will aggressivelylead all of his committee members toinvent, plan and organize effectively.

Whether the topic is to be discussion, orformal presentation, the educationalcontent of the conference will beoutstanding. The speakers at WCLICrepresent many countries and companies,and Choo will invite the very best to coverthe most important topics. Further, allregions will be embraced at a higher levelthan in the past. I have confidence in himand surely he will serve and reward theattendees and the industry, and the nextWCLIC will be the best event that we haveever produced.

You’ve recently had some IARFC staffchanges in Taiwan. How will this affectRFCs there?

Our firm has been in operation since1983 and we are blessed with more than275 associates. That’s a great depth oftalent — and I’m pleased we have manyloyal and enthusiastic young men andwomen. Under Richard Wu’s guidance wewill continue all the periodic CE meetingsfor RFC graduates and launch neweducational programs. We are veryexcited to be planning new marketingtools for all our RFC associates — that willhelp them acquire new clients andincrease their production even further.

You may contact Liang Tien Lung, RFC atIMM International: [email protected]


Liang Tien Lung was the recipient of theLoren Dunton Memorial Award in 2005.

This Year is Full of Promise. This will prove true — for our Association, and for all thefinancial advisors that we serve — on a globally expanding basis. Across the worldthose who provide financial advice are prospering in a career of service.

You are Engaged in a Noble Calling. You help people realize, achieve and preservetheir dreams. You secure their families and their businesses, you help them develop self-reliance, you pave the way for them to have a better life. What could bemore important?

This was brought forward to me by a young lady in Hong Kong — at the RFCgraduation ceremony held at a venerable auditorium on the campus of Hong KongUniversity. After the presentation of certificates and the many photographs, shecame up to me, accompanied by her husband and small daughter who had enjoyedcelebrating her achievement. What she said to me was really a message to you:

Please thank all the members of our association for sponsoring this courseand sharing with me all of their wisdom and experience. And tell them thathere in Hong Kong we will carry on their tradition of serving others.

I must admit that I felt proud to be a part of this professional delivery – for my rolepersonally, and for the support of thousands of financial advisors who are helping usdeliver a quality education and superior practice management tools.

We are Making a Difference. In many countries, in many communities. And thistrend is continuing… It is accelerating… It is becoming clearer… It is becoming nearer.

What Can I Do To Help? This was a question asked by an RFC at our exhibit boothat the NAIFA-Chicago “Taste of MDRT” one-day conference. We talked for a fewminutes, and I soon learned that he had grown disappointed teaching CFP classes.

He said, “I have been teaching the materials and conveying academic concepts, butthe students aren’t learning how to deliver plans. The curriculum just doesn’tprepare them for the profession — they can’t market their services, don’t know howto prospect, aren’t ready to close a fee-based engagement, and most important —they haven’t learned how to build a financial plan!” When I described the nature ofthe RFC course we are developing he grew very excited, and said, “Count me in, Iwant to teach that course!”

Not Everyone Wants to Teach. Many members are better at writing, some atselling, others at speaking. Where can you make the best contribution? Maybe youwould like to help out at the Financial Advisors Forum. We need helpers in theRegistration Booth and to position the signs guiding attendees to each of theworkshop sessions.

You can Always Recruit! Our strongest source of new members and new courseenrollees is from our existing members. No one knows better how much the IARFChas to offer and how dedicated we are to supporting our members. You can do thisquite easily — in two ways.

• Get the prospect to sign up instantly on line. They just go to IARFC.ORG anddownload the RFC Application, fill it out, and fax or mail it back.

• We will be happy to send a comprehensive membership kit to all the advisorsyou recommend. Just call 800 532 9060 and give us the information.

Next month we will run a Business Success Profile — a two page feature on a member that will be interesting reading for you as a fellow professional, and also by the prospects, clients and area professionals of our featured RFC. Look for this profile, and imagine yourself appearing here, and sending out several hundred reprints.

From theChairman’s Desk...


Growth Continues at

Money Concepts

The October issue of the Register featuredthe career accomplishments andpioneering back ground of Jack Walsh. Hiscontinued development of managementskills among the Money Conceptsorganization continues with theannouncement of Denis Walsh, CFP™, RFC®as president and Chief Executive Officer.Denis is uniquely qualified for thisexpanded responsibility. He is a trueprofessional in the field of FinancialPlanning and Wealth Management, havingstarted with the company in its third year ofexistence, more than 25 years ago.

Throughout those 25 years Denis has madesignificant contributions to every aspect ofoperations of the company, particularly intechnology, money management, financialplanning, sales and marketing andInternational development. Mr. Walsh is agraduate of Florida State University with aBS degree in Business. He, his wife Aliceand their two children reside in Palm BeachGardens, Florida.

Money Concepts was founded in 1979 withthe principle objective to deliver professionalfinancial planning services to individuals,families, and businesses by establishing andsupporting an international network ofidentifiable Money Concepts financialplanning “centres.” Money ConceptsCompanies now has over 1,000 licensedrepresentatives and 615 franchise locationsworldwide. Franchise locations are inCanada, Hong Kong, China, Malaysia, NewZealand and the Republic of Ireland.

561 472 [email protected]

Denis Walsh, CFP®, RFC®

IARFC Financial Report 2005 - 2006As a non-profit professional association, the financial records of the organization are open to review by the members. The accounting ismaintained in the offices of the IARFC and is carefully reviewed by James Hendricks, CPA, who prepares the filings with the IRS for theassociation’s continued non-profit status. The fiscal year for IARFC ends June 30. The two most recent periods are summarized below.


Miscellaneous $32,808 Investment $1,219

Materials $17,649

Conferences $31,474

Membership Fees 81%Conferences 7%Materials Sold 4%Miscellaneous 8%Investment 0%

Membership Fees $347,521

Conferences $24,329

Marketing $14,518

Consulting Fees $1,225

Conferences 6%Printing 32%Postage & Shipping 14%Payroll 15%Consulting Fees 0%Marketing Expense 4%General Overhead 29%

GeneralOverhead$109,164 Printing

$117,079

Postage& Shipping$54,410

Payroll$56,737

Conferences $107,172

Marketing $15,014

Consulting $42,245

Conferences 17%Printing 26%Postage & Shipping 12%Payroll 12%Consulting Fees 7%Marketing Expense 2%General Overhead 24%

GeneralOverhead$152,822

Printing$158,494

Postage& Shipping

$74,989

Payroll$74,103

Miscellaneous $30,174 Investment $3,590

Materials $21,442

Conferences $100,567

Membership Fees 76%Conferences 15%Materials Sold 3%Miscellaneous 5%Investment 1%

Membership Fees $505,483

2005 2006Sources of IARFC Revenue

Uses of IARFC Funds

Dad retired at age 62 and my parentsmoved west to Arizona to start the nextchapter in their lives — and, boy, were theyready for it! They had worked hard, saved,invested and now looked forward topension checks, Social Security andgrandchildren on the way. Mom and Dadthought they had everything covered:Wills, Living Trust, Health Care Proxies,Powers of Attorney. They even upped their life insurance at this time (something Dad swore he would never do, even if his daughter and son-in-lawwere in the business).

Dad was always active and retirementyears were no different. At age 65, hereceived a baseball bat and glove forChristmas; he had discovered SeniorSoftball and we had to worry aboutbroken arms. But on June 10, 1995, lifechanged forever: Mom called to tell methat Dad was diagnosed with AmyotrophicLateral Sclerosis (ALS) better known as“Lou Gehrig’s Disease.” I didn’t knowanything about the disease and the more Iread that evening at Borders, the morefrightened I became. There is no cure ortreatment, and death is certain. Thisonce healthy and vibrant man was nowbecoming depressed and withdrawn.

The disease took hold fast. Within ninemonths, Dad lost his ability to speak.Within one year, he lost the ability to eat.There are those who eat to live and thosewho live to eat: Dad fell into the lattercategory. Throughout his life, food hadsymbolized love; dinnertime at an Italianhousehold is a big deal. Now he wasreduced to eating pureed meals whichcould take three hours to finish. Have youever had to watch someone struggle toswallow, choking? On May 13, 1997, Dadhad a feeding tube installed. It was an

important decision. He was still wellenough to swim daily and ride his bicycle,and he enjoyed playing with hisgrandchildren. He was just tired ofstruggling to maintain his weight.

Another difficult chapter of this sagastarted. Dad’s insurance carrier refusedto pay for his liquid nutrition. It wasn’t asupplement, it was all he could eat —and the cost was $1,400 each month!After two weeks of calls, we finally got itcovered. Of course, as time wore on,Mom was relied upon for more and morecustodial care. Dad’s medical insurancedidn’t provide sufficient home health care,and Mom didn’t like these “strangers”constantly entering her house. For her,sleep became a luxury.

On October 10, 1997, Dad fell. It was5:00 am and Mom was asleep. Dad layon the kitchen floor, panic-stricken,unable to yell for help or move. Momfound him almost two hours later, but shewas unable to lift him. Mom had to call911, and then she placed her call to me,2,500 miles away.

My husband and I had made frequenttrips to Arizona during Dad’s illness; now it

was a medical necessity. Mom needed abreak. She couldn’t leave Dad for morethan an hour at a time. How could sheshop for groceries or arrange to obtain hismedication? What about her needs? OnNovember 20, 1997, we flew to Arizonaand sent Mom to bed for some muchneeded rest.

During the evening, we would take two-hour shifts caring for Dad. Mygreatest fear was that my father wouldhave to use the bathroom on my shift. Iwould do anything for Dad, but I certainlydid not want to embarrass him.Thankfully, my husband was able to assisthim at those times.

On Thanksgiving morning, Dad couldn’tbreathe. He had to go to the hospital, butafter his treatment, the doctors wantedhim discharged. We knew he had to beadmitted for at least three days. Have youever tried to reach your primary carephysician at 8:00 am on Thanksgivingmorning? Mercifully, the doctor came tothe hospital and had Dad admitted. Atfirst he felt better, but he soon contractedpneumonia which extended his stay. After ten days in bed, he was too weak togo home.

Long Term Care Insurance... A Quality of Life Decision

Louise Fallica, RFC®


continued on page 9

Louise Fallica on the right with her parents, Ralph and Marie DeLuca, at Ralph’s 70thbirthday party which was thrown several months early, just in case his illness wouldprevent him from being well enough to celebrate on the actual date.

continued from page 8 Long Term Care Insurance

I was still there, in Arizona. Alone in the hospital with Dad, I spoke with him at the doctor’s request. He had becomewell enough to leave the hospital, butcould not go home. He needed rehab to regain his strength. In crisis mode,Mom, my sister and I visited severalnursing homes. Mom selected a facilitynear their house so she could spendentire days with her husband. Care at the facility was inadequate at best. On December 7, 1997, Dad aspirated and hospital physicians said he had to be intubated. We asked Dad. He

looked at us and wrote weakly on the hospital sheet,“I WANT TO LIVE.” Thus began another chapter.

On December 31, 1997, Dadwas transferred to an acutecare facility. The cost was$245 daily and increased to$360 per day on February 1,1998. Dad had HMOinsurance that covered 100%of the first 100 days in anursing home, but that wouldrun out fast and we werescared. We reviewed andaudited bills in an effort to seejust how much Dad’s carewould cost us. Incidentals,including respiratory care,nutrition, and the facility,averaged $1,100 daily. Who could possibly sustainthis expense?

Mom feared we would gobroke. Privately we askedourselves, “Why couldn’t Dad just die, now, quickly?”Then guilt followed. How could we even be thinking like this? Dad worried

too. You see, with ALS, the mind is still fully functional. We tried to quell his fears.

Dad’s medical insurance would haveexpired on April 14, 1998. He had the good grace to die on April 1. On what was the last day of his life, we hadspent five hours speaking with hisinsurance carrier, trying to determineexactly what it would cover. Being therethroughout his illness, this was not whatwe had envisioned. It was a rough road.It was time to let go. You want to hold

your father’s hand, tell him that you lovehim — not spend hours on the phonelearning the intricacies of his medicalinsurance plan.

If only they had purchased long term careinsurance, we could have held Dad’s handon his last day with us. Mom would nothave tried to handle everything herselfbecause they couldn’t afford to hire help.If only we had known, Dad could havekept his independence longer, his familycould have spent more time with him…reminiscing with him, loving him, justbeing with him during his illness. In timesof sickness, your body’s daily needsshould be left to the health careprofessionals. Make choices now to helpensure that you and your family won’t loseprecious time with each other when youneed it the most.

Louise Fallica, RFC®, has worked infinancial services for over thirty years and speaks publicly about her father’sthree-year battle with Lou Gehrig’sDisease. She has addressed audiencesat Yale University, Adelphi University,Dowling College and other organizationson topics such as Investment Planning,Money Management, and Long Term Care Planning. Ms. Fallica has lectured at Yale on “Practical Applications ofCharitable Remainder Trusts.” She is aregistered principal with and offerssecurities through Securities ServiceNetwork, Inc., member NASD/SIPC, andshe is Vice President of The DesignCapital Planning Group, Inc. She is aregistered investment advisor and worksclosely with her husband, Richard Fallica,RFC®. Phone: 631 979 6161 or e-mail:[email protected]


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The Jakarta Financial Record recentlyreported, “Aidil Akbar Madjid is the expertfor Islamic Syariah financial planning inIndonesia and he may also be the mostsuccessful financial planner in Indonesia.”Aidil Akbar Madjid, MBA, is an RFC whoearned his Bachelor of BusinessAdministration from Loyola MarymountUniversity in Los Angeles. He graduatedfrom Woodbury University of Los Angeles,with a Masters in Finance and CapitalMarkets. His financial career began inL.A. at Sun American as a junior financialplanner before becoming a stockbrokerfor AmeriTrade in Los Angeles.

While living in Santa Monica, California,he worked for the international financial PR firm of Lazar and Associates.Then he began his career as a financialadvisor at American Express in LosAngeles, until his return to Indonesia.Today he is the youthful host of thepopular Indonesian TV program RichGame. He is also the successfulManaging Director of Pavillion Capital, anasset and wealth management companyof Global Financial Service Holding,located in Jakarta Pusat, Indonesia.Akbar currently serves as Chairman ofIARFC Indonesia. He credits personalimage branding for playing a key role inhis success as a financial planner.

Cato: What is personal image branding,or PIB, all about?

Aidil Akbar Madjid: Having worked at aninternational PR company’s office inSanta Monica, California for some years, Ilearned well the many important aspectsof personal image branding that benefitedmy eventual financial planning practiceand everyday professional advancement.

Personal image branding is aboutbeing yourself and making prospectsmore aware of who you are andwhat you can do to help them. PIB also reassures your existingclients and helps encourage them to stay with you.

Planners must not pretend to besomething they are not. On a positivebasis, they must: (1) Continuallycommunicate effectively in their marketarea, (2) Be able to deliver precisely whatis conveyed by the image they create, (3)Establish and reinforce a positive image.

Is Branding important for success as anRFC in Indonesia?

Here in the Indonesian markets, personalimage branding is essential for attainingprofessional leadership status plusreaching maximum success servingclients. Personal image branding is ofsuch vital importance, that I believefinancial advisors in every country muststrongly create, establish, and maintaintheir desired image within their marketarea. If you are qualified and dedicated,then this becomes the formula for your greater success. But,, if you do notclearly define and establish your image —then your competition will define you totheir advantage.

What is unique about your markets inIndonesia?

Our Indonesian market contains manyhighly competitive sectors withinidentifiable segments. The middle and high net-worth people of Indonesiabelieve that price and establishedoverseas brands mean desirability andwell-proven quality.

People in Indonesia do not mind to pay extra to get top quality financialproducts or services. They prefer this.Therefore, it is important for me to always project the appropriate high or up-scale image.

Only a highly skilled media advocate can actually build your just right and most effective image. A media advocatecan even build upon my overseasaffiliations with the IARFC and myoverseas media exposures, to makeadditional positive impressions here in my local Indonesian market area. This is in addition to my local targetedmedia recognition.

With personal image branding, itbecomes acceptable to charge aplanning fee, and logical to earnappropriate compensation forpremier services.

My branding efforts and writing activity all combine to attract qualified prospects.This even gives special attraction andunique advantage to my practice.Branding has definitely contributed to my bottom line.

What is your ultimate bottom line?

In the end, I must always deliver superiorquality advice and service that bestbenefits my clients and helps them toachieve their stated objectives. Since ourIndonesian market is very “fragile” I alsouse personal image branding to stimulatepositive ‘word of mouth’ — this alsosupports my practice.

People here, like people everywhere, dotalk. They ask questions, and gossip, andshare notes, and compare experiencesand swap information. Negativecomments even if not justified or accurate,can easily spread. PIB helps me preventthis. If less scrupulous competitionspreads negative comments about you,then PIB helps counter that. With PIB I amable to obtain many thousands of dollarsworth of valuable targeted mediaexposures. PIB promotes my practice andgives me the edge in my market.

Personal image branding helps meto manage people’s expectations.

This sets the tone prevailing at any time.My prospects have mental positions thatparallel my philosophy before we begin arelationship. This remains during ourrelationship. This makes me largely pre-sold. Now I do not have to work so hardat selling myself. I already did thisthrough image branding.

However, I must admit that I struggleduntil I placed personal image branding to work for me. Then I surpassed

Cato Comments – About Your Image...Why Is This Young Financial Planner So Successful? … In Indonesia?

continued on page 11


Aidil Akbar Madjid, RFC®

established financial advisors who hadthree times my age and far surpassed mein years of experience.

After returning from U.S. to Indonesiahow did you advance so quickly?

I moved-up by helping clients achieve theirgoals. After working for a couple of yearsat Manulife Asset Management inIndonesia as one of the Senior Managers,I advanced to Managing Director forPavillion Capital. Pavillion is an asset andwealth management company.

What licenses do you have?

I hold Capital Market Licenses from theUS such as series 7, series 65, and series63, plus other licenses in insurance. Ialso hold the Indonesian InvestmentManager License (Wakil ManajerInvestasi), Broker-Dealer License (WakilPerantara Pedagang Efek), and MutualFund Selling Agent License (Wakil AgenPenjual Efek Reksa Dana). I am aRegistered Financial Consultant (RFC) anda member of the IARFC. I specialize inserving high net-worth investors. Myfinancial planning practice largely involvesasset allocation, trusts, privateinvestment, and estate planning.

I Moved Up — By Helping Clients to Move Up!

Can you please explain in the mostsimple of terms how you becamesuccessful in Indonesia?

My IARFC affiliation and the RFCdesignation denote my standing as aquality advisor. The IARFC is rapidlybecoming better known and respected inIndonesia.

As for the simple stuff it is all the samehere as in any other section of ourcivilized world. I have to brush my teethoften, wash, shampoo, condition and stylemy hair. I must attend to all aspects ofproper personal grooming and hygiene.

I must always be neat, clean, dress forsuccess, choose and wear jewelry withtaste. It is essential to displayprofessionalism in everything I do and say,and use the appropriate male groomingfragrance products at all times. I have toshow by my appearance, health, body,social skill, stature, talk, and movements,that I am a disciplined and intelligentperson who thoroughly knows his specialty.

My car must always be clean. Punctualityis important. I always mean what I say. Iam not ashamed to acknowledge that Imay need to research something beforemaking statements with confidence.

Being a “know-it-all” doesn’t work inIndonesia any more than it works in America.I even have to speak slower at times and usethe right pronunciation. I have to be patientand never overly aggressive, lest I offend orannoy my prospect or client. I have to ask the right questions and listen, andappear to listen, very carefully to learn truecircumstances of the prospects, or clients,and to fully understand their desires, actualpotential, and to help them best visualize alltheir options.

Do you find that you need to helpmotivate your clients?

I find that more and more I must help myclient maintain his or her motivation.Personal motivation, self-help, andinspirational guidance are subjects thathave always interested me.

Do you read any American materials?

Yes, I read American business andmotivational authors like Dr. KenBlanchard, Napoleon Hill, Zig Ziglar, Dr.Robert H. Schuller, Al Altmann, Dr. WayneDyer, Dale Carnegie, W. Clement Stone,Harvey Mackay and others.

Also I read the American financial legendslike Mehdi Fakharzadeh, Loren Dunton,and Norman G. Levine. And I studywritings by the proven American salestrainers such as Lew Nason and JackKinder. I have consumed their workssince I lived in California as a young man.I read nonfiction for business purposes.This is my pleasure. I am seldom involvedwith fiction for pleasure reading.

Regarding personal image branding,what specific PIB actions were you ableto accomplish for yourself?

Just like any other highly successfulfinancial professional in the United States,I use professional help. I did not start-offat the top. I never thought that I was aninstant expert at getting the right kind ofpublicity and effectively merchandising mymedia exposures. I knew that this was aspecialty discipline that requires a certaintype of proven creative talent withfinancial and media industry contacts andknowledge, plus related experience.

It is important that I did not tell the mediaadvocate what to do. I had enoughcommon sense that I knew to allow him totell me. Time and again I had seen otherplanners in the US louse-up their personalimage branding with excessive control andover-directing that smothered their mediaadvocate and killed their results evenwhen they had a major financial PR firmworking for them.

I began building my image by writingcolumns in one small publication. Now Iam writing monthly for the two largestbusiness magazines in Indonesia. Mediaimpact takes time! Plus, I frequently writefor our leading economics tabloid. I alsoparticipate in interviews by radioprograms. I am involved with newspaperarticles from time to time. And I amworking on a book.

I learned how to get the appropriatemedia contacts in Indonesia to use me asan information source, or as a reference,regarding various financial aspects,especially personal financial planning.This proved to be very helpful indeed.

Were you a “national” speaker?

Gradually I became a more accomplishedpublic speaker. Again I started small andworked myself up. Now I host successfulpublic seminars, participate inconferences, workshops and regionalgatherings conducted by others, androutinely I appear on TV talk shows.

I Strive To Always Think Carefully Before I Speak!

For all media exposures and all of myother conduct I always-always follow acardinal rule. I know the criticalimportance of being accurate andprecisely correct and never embellishing,never exaggerating, never over-promising,never bragging, and above all, neversaying anything that is not entirely true.

I try to think before I speak. When I speakI mean precisely what I say. I select everyword carefully. I never make snap-statements then later change them. Thisis very serious. Speaking very quicklythen having to revise your comment latercan harm a professional far more thanmost advisors realize. Don’t say you willdo something when you know you will onlylater make an excuse for not doing it. I

continued from page 10 Cato Comments



consider such action as this to be a partof communication that is not honest. It ishuman nature to dislike this practice thatwe see so often. Doing this suggests alack of discipline, a less than controlledmind, and may even reflect negatively onthe character of an agent, or a planner.This is a proven turn-off that kills you withclients and prospects. Could you respecta surgeon or attorney who did this?

You can bank on my word. People inIndonesia are offended by pomposity andsuspicious of self-aggrandizement. To bedishonest is the kiss of death. Heredishonesty is not an acceptable part ofselling one’s service. Couching, or “shaping”the truth does not work here. While livingand working in the US I often saw muchabuse in this area by financial planners.

I have been in the middle of the creationof the Indonesian Television series “Rich Games.” This is a TV game show. Weteach people about personal financialplanning and investing by using gamesthat are fun to play and to watch. Theconcept we use is a combination ofRobert Kiyosaki’s famous game and theAmerican game of Monopoly.

This is all part of my Personal ImageBranding program. My PIB program doesnot just stress that I am a qualifiedfinancial planner. We seek to convey that Ican enable others to rather quicklyunderstand financial concepts andpractices that will highly benefit them. Ihelp people to realize how they can takecorrect action beginning from any startingposition. I strive for long-term relationshipsas opposed to selling something andmoving on. I appreciate the benefits fromthe IARFC. Life is good....

Forrest Wallace Cato, RFMA,RFC® has over 25 yearsexperience as a multi-national Media Advocate forfinancial professionals. Heis former Editor-In-Chief ofTrusts & Estates: The

Journal of Wealth Management andFinancial Planning magazines. Cato wrotethe Introduction to the classic book, HowTo Sell Your Way Through Life byNapoleon Hill, author of the all-time bestselling motivational book Think And GrowRich. Contact: Intergroup II/Atlanta, Inc.Woodstock, GA., 770 516 9395,[email protected] or website:www.CatoMakesYouFamous.com

continued from page 11 Cato Comments


Dr. Teresa So, RFC®, of Hong Kong wasrecently honored as one of the”100Outstanding Women Entrepreneurs” inthe entire country of China. She wasjoined by other honored women businessowners and founders from Hong Kong,Macau, Taiwan and China at a ceremonyheld on October 29th in the Great Hall ofthe People in Beijing.

The recognition and awards werepresented by government officials inappreciation for the important roleplayed by these outstanding womenentrepreneurs who were nominated fortheir excellence in business innovationsand services to their communities andnation.

Dr. So is the Chief Executive Officer of General International Agency, Ltd. andis affiliated with the AmericanInternational Group. She has built anorganization of over 100 associates andstaff who are involved in financialplanning and insurance.

She is also one of the executive advisorsfor the Hong Kong and Macau branch ofthe IARFC, and she has served as aprimary lecturer for the RFC coursesoffered in conjunction with Poon KamKai Institute of the University of HongKong. In addition to a Ph.D. in BusinessAdministration she holds manyprofessional designations, including the MFP, FChFP, CMFA, CIAM, RFP, CIFPand RFC®.

Standing in front of the Great Hall of ThePeople in Beijing is Dr. Teresa So, MFP,

FChFP, CMFA, CIAM, RFP, CIFP, RFC®

The China Association of WomenEntrepreneurs was established in 1985and it is registered with the Home AffairsDepartment of China. It is the onlynationwide entrepreneur’s organizationand is a member of the China EnterpriseConfederation and also the All-ChinaWomen’s Federation.

Presently, the Association has a nationalleadership body of 46 corporatemembers from provinces, municipalitiesand self-administered regions, and over10,000 full and associate individualmembers who are all very accomplishedwomen entrepreneurs and outstandingmanagers of famous enterprises.

The mission of the Association is toprovide services to womenentrepreneurs. The Association bridgescommunications between womenentrepreneurs and government agenciesand among women entrepreneursthemselves.

Dr. So has been very active inprofessional associations in Hong Kongand is highly respected as a leader withgreat enthusiasm.

In the picture below, she is joined by EdMorrow, chairman of the IARFC, outsideof a recent meeting where the RFCdesignation was conferred on over 190recent course completers in Hong Kong.She is also pictured holding theCertificate presented to her, in front ofthe imposing Great Hall of the People —the most prestigious convocation facilityin Beijing.

RFC Executive Honored

Dr. Teresa So and Ed Morrow

We often hear people refer to Status Quo,which is Latin for “How things are today”or as a diplomat might phrase it, “Thecurrent state of affairs.” They frequentlyindicate that we should pay a lot ofattention to the Status Quo to considerjust how matters are today and perhapsthen we could make plans for the future.

But, I hate to tell them, “There is NOStatus Quo!” Why? Because things arechanging rapidly. Even as we try tomeasure something (be it the stockmarket, real estate values, computersoftware ability or computer hardwareprices) it is changing.

Laurence J. Peter, author of The PeterPrinciple, is reported to have said,“Bureaucracy defends the status quo long past the time when the quo has lostits status.”

What’s Your Status Quo? I sincerelyhope it is changing rapidly.

Are You Progressively Intellectually? Youshould be able to answer, “Yes!” You maybe taking courses or chasing anintellectual pursuit that is not businessoriented. One advisor is aggressivelystudying and recording his familygenealogy. First, he had to acquire andlearn a new software program. Then learnhow to access major sources ofinformation. Now he is writingbiographical profiles on all his ancestors,going further and further back into history.He is meeting distant relatives — who areinteresting and talented people — andmeeting new kinfolk is exciting.

Are You Progressing Intellectually inBusiness? We did some surveys offinancial advisors who have been inbusiness between ten and forty years.Many responded, “No — years ago Istudied (CLU, ChFC, CFP, CFA….) but I

really haven’t been studying much inrecent years.” Does that apply to you?

Other advisors cheerfully told us of theirbusiness-oriented intellectual activities,and you could see their eyes light up asthey described their endeavors.

The IARFC has recognized this problem, aneed for intellectual enrichment, and wehave taken several initiatives to help you:

• We adopted Business Source as aresource to help our members accessthe most critical thinking and writing.

• Helped develop three additionaldesignations RMA — RegisteredMortgage Advisors, REP — RegisteredEducation Planner and RCA —Registered Clergy Advisor, for yourcontinued study and expanded marketopportunities.

• Formatted the new RFC course so thatit can also be offered as refresher tocurrent RFCs.

• And we are developing a MBA inPersonal Financial Planning on aninternational basis — in cooperationwith World Trade University, an agencyof the United Nations.

Teachers Learn the Most! Many IARFCmembers have been instructors – for CLUand ChFC study groups, CFP classes. Verymany have served as LUTC instructors,and enjoyed the opportunity to guide newentrants into the profession.

Teaching a professional course is anincredibly rewarding experience. It is agift of your time that keeps on giving.

First, you are paying back, or perhaps it is paying forward, to your profession.This is activity that makes you feel

good — about yourself, about yourstudents and about the clients they serve. You’re making a positive and farreaching difference.

Second, you are advancing your ownunderstanding and your own knowledge.When you are preparing for your class orlecture and realize you will be thepresenter — you read or re-read thematerial far more closely. When studentsask you challenging questions — you re-think your previous understandings, yousee new applications.

Third, you become rejuvenated in thefinancial planning process. Theenthusiasm from the classroom will carryyou for the rest of the week. It will spuryou on to achieve more, learn more andgive more.

Fourth, you receive public recognitionwhen the course you are teachingannounces the initial organization or thelist of graduates the instructor is normallyreferenced. But if not, you can alwayssend your own press release.

Fifth, you receive professional recognitionbecause other advisors always respectthose financial professionals who haveaccepted the responsibility to educate anduplift their peers.

Get Ready for Action. Later in the yearthe IARFC will be offering classes tofinancial advisors — new entrants tofinancial services, to those making atransition from strictly sales to advise and sales, and to those who what to re-embrace the planning process with thelatest tools and technology.

Do you want to be an Instructor? It iseasy — just complete the small box on theon the bottom of this page and fax it backto the IARFC. We’ll be in touch.

What’s Your Intellectual Status Quo?


Yes! I’m Interested in Being an RFC Course InstructorName:____________________________________________________ Designations: _____________________________________________

Email:____________________________________________________ Phone:___________________________________________________

Please briefly describe any academic or professional teaching experience:

___________________________________________________________________________________________________________________

___________________________________________________________________________________________________________________

___________________________________________________________________________________________________________________

Please fax to: 513 424 5752

• Even young children can have afinancial plan. It can be as simpleas three envelopes for gift moneyand allowance: part for charity, partto be saved for big items likecollege or a car, and some instantgratification money to blow now onentertainment or clothes.

• Make charitable donations part ofyour child’s plan.

• Help a child create their ownbudget. Teach them to track theirspending. Older children couldlearn to track the entire family’sfinances on one of the fine financialprograms available. It can be an eye-opener to children to see just how much it costs tosupport a family.

• Even children as young as 8 or 12can learn about investing. A parentmay start by helping a child investin mutual funds. For a few yearsyou may want to treat it like a gameand just do paper transactions.

• You can encourage savings bycreating your own matchingprogram. Every time your child puts money into long term savings,you can match it. This reallystimulates thrift.

• Once children get older, encouragethem to take jobs outside the homeor in the family business. Teachthem how to negotiate for good pay,and how to pay themselves first.

We have used most of these techniqueswith our own children as they weregrowing up. One year we paid one of oursons to enter all of our spending data intothe computer so we could track ourexpenses. He did a great job at this, but Idid not realize how much it was impactinghim until that summer when I wanted tosend him to church camp. Hemagnamously said he did not think hewanted to go that year. The commentpuzzled me because they had such a funtime with this group. A little probingbrought out the truth: He did not think wecould afford it. After all, he knew exactlywhat it cost to keep a family of 5 going!

Helping Children Reach Prosperity ThinkingBy Katherine Vessenes, JD, CFP®, RFC®

One of the most profound gifts we cangive our children, is not great wealth, but“prosperity thinking.” The examples weset for our children can be much morepowerful than the money itself. Here arefive things you can do to help createprosperity thinking in your children.

1. Set the example of ProsperityThinking. Look in the mirror first.Review your own thinking on finances. Look at the questions on how your family treated moneywhen you were growing up. Thenrephrase these questions and askyour children what they think aboutmoney and what they think their ownparents feel about money. This can be very revealing.

2. Create A Series Of SuccessfulFinancial Experiences. For youngchildren, you may want to work withthem on a money plan that is morethan just an allowance. Suggestions:

• Create a matrix of good habits thatyou want to enforce. Children getmoney each week for successfullycompleting their chores, being niceto mom and dad, avoidingarguments with their siblings, andgetting good grades in school.

• As they get older, hire them forspecial tasks around the house. Payextra for a job well done and with agood attitude.

(He went to camp. It was so important tous that I was more than willing to makesacrifices in other areas.)

One thing we did as each of our childrengraduated from college was sit down withthem to help them to develop a detailedbudget on Excel. It took into account theirestimated expenditures and actual ones.It also encouraged them to pay theirschool loans off in a short period of time.The model included putting money asideevery month for savings and emergencyfunds. The projections were fun, becausethey could see that in a few months, they could save enough for a downpayment on a house.

3. Establish Healthy MoneyCommunications. We all knowfamilies where no one ever talks aboutmoney. These children never reallyfeel comfortable discussing finances.However, this is a great topic for dinnerconversation or for the car when youhave uninterrupted time with youroffspring. You may want to talk aboutrelatives and how they are handlingmoney and how you feel about it. Getthe kids’ input. This shouldn’t be ahard conversation since kids todayhave an opinion about everything.

4. Discover Risk/Reward and TheConsequences. This is a techniquewe used with our children from a veryyoung age. The key thought is theycan’t have their cake and eat it, too, orall spending has consequences. Wehad planned a trip to Disneyland whenthe children were very small, and wehad talked a lot about saving themoney for the vacation. The childrenwere all aware that spending funmoney now would jeopardize theirfunds for the family Disneyland trip. I didn’t realize how seriously thismessage had entered our 5-year-olddaughter’s subconscious until she and I were garage sale shopping. I wanted to buy a game that costabout 75 cents. Sarah became veryupset. She kept pulling on my skirt.Finally her fears came out, “Mom, ifwe buy this game, can we still go toDisneyland?” I realized then that we


Katherine Vessenes, JD, CFP®, RFC®


continued from page 14 Compliance-Friendly Marketing

were making headway in conveying the message, that you cannot spend and save the same dollars.There are consequences to spendingmoney now.

Fourteen years later, when Sarah wentaway to college, one of her bigconcerns was that she could notcontinue to put enough money everymonth into her mutual funds. Thesechildhood experiences do have lifelong consequences.

5. Teach Children Good ConsumerShopping Techniques. A few yearsafter this garage sale incident wewanted to send all three children tosummer camp. The job of choosing acamp seemed overwhelming. So wecreated a checklist of things toconsider about the summer campoptions. It included where they werelocated, what the activities were, andof course, the fees for going to camp.We took the checklist with us andwent to the summer camp fair held ata nearby shopping mall. The childreninterviewed each of the camps andmade comments on the checklist,including a numerical ranking system.By the time we had finished this, theywere very clear about which campscored highest and which would bethe best value.

Don’t forget to instill the moral compassabout money.

One of the services Arnie Abens, aplanner from Edina, Minnesota, does withhis wealthy clients is offer to meet withtheir children. He does this at no extracharge because he wants to help instill amoral compass. For very young children,he might start them on a simpleinvestment program. For older childrenhe has a series of thought provokinginterviews. Sometimes Abens is left withthe chore of explaining to the childrenthey will be very wealthy some day. “Onething I always want to cover,” says Abens,“is how they can recognize a true friendfrom one who is just after their money.We also talk about why money isimportant. I try to explain it is not justabout buying things, but using it to makean impact on the lives of others. I stronglyencourage them to develop a moralcompass with their money and to makecharitable gifting a high priority.”Frequently, he says, the childrenunderstand this message much betterthan the parents who spent their wholelives accumulating the wealth.

For the older child. If your children are grown, it is not too late to impart some values about money. The discussionpoints listed below can further familydialogue. I sometimes see wealthyparents make serious mistakes with their legacies. It can include a number of things:

1. Exchange Information. Sometimesfamilies do not share any detailedinformation about their finances.When they die, children have to “pickup the pieces”. They have no ideawhere assets are located, the extent ofany debts and what bills need to bepaid. They also are unaware of theirparents wishes regarding a funeraland the use of their inheritance. If thisis your situation, sit down with yourchildren and discuss your plans for aninheritance. If this is difficult for you,work with your adviser to explainthings to your children.

2. Solicit their information. Sometimeseven older children do not have the

financial maturity to handle largesums of money. If you stop to thinkabout it, it is hard to think of peoplewho inherited great wealth and stillmade a significant contributionthemselves.

3. Is great wealth involved? This group,people who inherit large sums ofmoney, is the sole focus of financialadvisor Myra Salzer’s practice. Oneway to help preserve the money fromthe grave is with a good trust. Workwith an experienced attorney to set upa trust that will protect your childrenfrom themselves.

Katherine Vessenes, JD, CFP®, RFC®, is anationally known author and speaker,focusing on sales, marketing, complianceand practice management issues forbroker/dealers and advisors. Look forher latest book: Become a MultimillionDollar Financial Advisor. She can bereached at [email protected] her website: www.vestment.net. Or by phone at: 952 401 1045


Discussion questions for children:

Is money important? Why? Why not?

How do feel about money?

What is important about money to you?

How can you manage your own money well when you grow up?

What should you do if you want to buy something but you don’t have the money tobuy it now?

Why is it important to have savings?

What should you use your savings for?

How do you think we (your parents) react to financial crises or financialabundance?

What would be a better way to react?

What would you do differently? The same?

If you have a lot of money, do you think this will affect the kind of person whowants to be your friend?

How should you deal with a person who pretends to be your friend but is reallyonly interested in your money?

How much of your earnings should go to charity? Why?

How can you be a better steward of your money?

When you think about money, what do you think about?

Will it be easy or hard for you to make a lot of money when you grow up? Why?

Microsoft has finalized the codefor its next release of MicrosoftOffice 2007. Larger corporatecustomers will be able to gettheir hands on a download ofOffice Small Business 2007 inDecember. However, smallerbusinesses and individual userswill have to wait until early in2007 to buy a boxed version ofWord, Excel, PowerPoint, Outlookand the other members of theOffice 2007 family. Theconsumer editions of MicrosoftOffice 2007 are expected to hit stores in spring, in step withthe Microsoft’s new Vistaoperating system.

You’ll be paying. Not only willOffice 2007 take a lot of time toget used to, it will cost youmoney. There will be eight levelsof release, each at a differentprice level. The Interface (theway you use and move aroundthe various programs) will be dramaticallychanged. Gone are the toolbars, drop-down menus, side-of-the-window TaskPanes and the customization featuresyou’ve been accustomed to usingregularly. The features are still there,merely rearranged. You will need to re-learn tasks, and may want to attend anew training program — offered byMicrosoft as well as third party vendors.Your total cost may range from $4,284 fora solo practitioner to $45,840 for a 15employee firm. (see chart on page 18)

First Look. We’ve examined the finalproduction version of Office 2007,released to software developers andcomputer manufacturers who bundle theirnew models with Microsoft software. Formore than a year, we’ve been followingthe development, with pre-release reviewsby industry publications, and slide showsfrom Microsoft. We have also testedrough-draft versions of Word, Excel,PowerPoint and Outlook. In fact, thisarticle was edited in Word 2007, but wemust save it in Word 2003 format to becompatible with editors and printers.

Installation. Placing the new Office 2007Suite onto each system took us about 10 minutes on a fast Windows XPcomputer. You’re allowed to install Office 2007 software on two computersfor your personal use. The user licenseagreement makes you agree that you will

download updates whenever Microsoftdeems necessary. Also at any time,Microsoft may now verify your license key to make sure that you’re not usingpirated software.

Don’t steal from Mr. Bill!

The updating of the new programs is important because each prior round of Microsoft Office versions hasexperienced more post-installationdevelopment needs — otherwise knownas “bug fixes.” You can expect frequentmessages as you open up your computerto install new updates.

Space Required — Yes, the new version ofOffice 2007 will require more hard drivespace. But not so much as to be likely tocause a problem for you. Beforeconducting the installation Microsoft saysit will check the hard drive and verify thatadequate space is available.

A New Appearance. Once you open eachnew Office 2007 application, you’ll begreeted by a dramatically different newinterface. Office 2007’s major programseach organize features into a Tab or“Ribbon” structure, rather than thefamiliar drop-down menus and dialogboxes. The fresh face of Office takessome time to get used to, but it alsosurfaces some useful tools that havebeen long buried within the dialog boxes.

All the internal menus will change andfamiliar icons will be will be replaced by a“ribbon” bar that goes across the top ofeach program, containing various smallericons — replacing the tool bars. Whatdoes this mean for you? Your customaryway of creating documents, spreadsheetsand presentations will be gone. You’llhave to re-learn how to do those jobs –and for you that means time, and yourtime means money.

Revised File Structure. Another bigchange to Office is its new XML-based files,which squeeze more data into fewerkilobytes. However, as with the release ofOffice 1997, you won’t be able to open afile in the new format immediately whenusing earlier versions of the programs. Thiscould cause grief if you have the newsoftware but need to share work withpeople who haven’t upgraded theircomputer with Office 2007. It is obviousthat one of Mr. Bill’s objectives is to forceall the world’s computer users to purchaseor upgrade to legal copies of Office 2007.

The 2007 applications let you savebackward-compatible files, but not bydefault. Those running, say, Word 2003that need to open Word 2007 DOC filethat you send to them, will first have todownload a one-time MicrosoftCompatibility Pack.

Don’t Do It! (Yet)New Software from your Friend Mr. Bill at Microsoft



continued from page 16 Don’t Do It! (Yet)

Macro Problems. We’re gladthat you’ll be able to run all ofyour familiar Office 2003programs side by side with thenew Office 2007 apps, with theexception of Outlook, on thesame hard drive. This would beuseful if you want to compare,say, how a macro was created in2003. Unfortunately yoursmoothly working Office 2003Macros will have to bereconstructed in Office 2007.These costs are not included inthe chart I have provided. If youhave done a lot with Word orExcel macros this will be a majortime waster for you. Microsoftsays the result will be better —but initially it will take more ofyour time.

Outlook 2007 will totally replaceyour prior versions — and you will have toadjust quickly. If you frequentlysynchronize Outlook with your PDA,Blackberry or Treo — it may not functionas before, until those developers revisetheir synchronization routines.

New Style Sheets. Office 2007’s othernotable features include a strongemphasis on style templates, with theability to preview on the fly changes madeto fonts and graphics. There are moreoptions usually offered by top-end desktoppublishing software for dressing updocuments with charts, diagrams, andpictures. Microsoft is becoming a strongercompetitor to other publishing programs.

For instance, new shortcuts for analyzinginformation within Excel let you displaypatterns of data as a colorful heat map.Will this feature be of benefit to financialadvisors? Not likely. There’s new supportfor blogging within Word, useful providedyou are a committed Internet blogger.Outlook gets deeper search and taskmanagement abilities in addition to SMStext messaging. Do you send, receive andstore lots of text messages generated bythe cell phones of your clients or friends?

Improved Security. Microsoft Office 2007claims that it features easier-to-manageoverall document security. This isimportant, since every year theircustomers face far more SPAM and other objectionable e-mail plus identitytheft intruders.

New Document Format. The way thatdocuments from all the Microsoft Officeprograms will be saved and then re-opened

will be changed. You can expect it will bebetter, and perhaps safer as Microsoftpromises, but different, and that may stillslow down your usage for a while.

Summary of Changes. If you were justgetting started with Office, you’d definitelyprefer 2007. However, experienced userswill find the learning curve is likely to betime-consuming, frustrating and steep.

When to Install Office 2007. Unless youwant bragging rights in your personal orbusiness neighborhood — postponeinstallation for a while. There are severalreasons: training sessions may be offeredlocally on a cost effective basis. Bugs willbe encountered by other users andMicrosoft will get them fixed.

Check with your key vendors. Thisespecially includes your broker dealer. Ifthey don’t want you to move right away toOffice 2007 by all means don’t do so.They may have valuable, or even criticalreporting or operational tools that haven’tbeen updated to work with Office 2007.Also, any vendors that use Microsoft fordocuments (Word) or calculations (Excel)or display (PowerPoint) will have to altertheir programs to accommodate Mr. Billl’snewest version – and that includes thelast minute “bug” fixes.

A New Vista for You

But the most dramatic change will beMicrosoft’s new Operating System whichis due for release in spring of 2007. Itwas first announced in April 2002 as“Longhorn” that would roll out later thatyear. As timetables were extended, the

name was changed to Vista and thescheduled release postponed to 2005.The new operating system replacesWindows and is called, “Vista.” This newVista has supposedly been “optimized” forOffice 2007 — and vice versa.

Vista replaces Windows XP andWindows Net. It requires more hard drivespace, really likes a fast hard drive to loadlarger programs swiftly, and it requiresmore RAM (memory). Most especially itneeds to be running on a fast computerprocessor, because it has many morefunctions — most of which you’ll never see or use.

New Processor Requirements. Microsoftrecommends a minimum level ofprocessor power. But if you want blazingperformance you’ll need a faster systemand more memory. Unfortunately this willmean some of your computer systemshave just now reached their lifeexpectancy – perhaps much earlier thatyou had thought they might.

You Can’t Upgrade Hardware.Technically you can upgrade oldequipment — swapping motherboards andinstalling new processors or more RAMchips — but it isn’t cost effective. Youhave to pay retail price for thecomponents, plus labor for the retro-fit —and you still might not have a system withmaximum performance. Despite the bestof intentions and skill, computertechnicians often find new componentsaren’t truly 100% compatible. So, tryingto have an old unit upgraded can take the




system out of your office for a while — andit may produce a controversy if the speedimprovement doesn’t seem to justify theparts and labor costs.

Michael Dell is Deliriously Happy! TheNew Vista operating system is going toforce a lot of businesses to buy newsystems. That’s because you needseveral power components. Manycomputers that perform quite adequatelynow lack them and they simply will not beeffective later in 2007 for heavy use. Forexample, in addition to the fastermotherboard, faster CPU and more RAM,you’ll need a “Vista-Compliant” video card.Without one, your screen refresh andmouse functions will drag. Yes, you canreplace the old video card if you arecomfortable “inside” your desktop — butretrofitting isn’t possible with your oldreliable laptop.

Many financial advisors, even those whoprimarily practice by themselves, havethree or four computers:

• Advisor’s desktop — where most ofyour operating programs reside and alot of your files. It must work smoothlybecause your office time is at apremium. You need speed andreliability.

• Assistant’s computer — critical toproduction of documents, maintenanceof customer files and storage ofhistorical service data. Needs a good video display and a verysubstantial amount of storage that is easy and swift.

• Laptop — this is the unit you takeoutside the office for remotepresentations, seminars and largeproposal delivery. It must staycompatible with the two office

machines so that it will accuratelyreflect what you have already workedhard to develop.

• Home Computer — this may be theslowest of the three, but compatibilityof files is essential — if you are going to get any meaningful work done after hours. This unit might be where you test all your backup CDs or tapes.

When to Purchase Vista? Again, ourresponse is, certainly not right away, ifyou can avoid it. By waiting you’ll get anoperating system that has first been inuse on millions of other computers —and debugged — before you startinstalling it in your firm.

Furthermore, if there is a price spike innew computers you’ll be purchasing fasterand cheaper pieces of equipment thelonger you can postpone your newhardware purchases.

Special Warning. Do not buy any new computers — either desktop or laptop — that do not now exceed theminimum requirements of Vista. You can see on the next page Microsoft’spublished minimums.

The visual aspects of Vista have twointerfaces, Basic and Aero. If yourhardware is Aero compliant, a minimizedprogram will subtly animate to a specificlocation on the task bar. New task barthumbnails will reveal the contents of awindow if you pause your cursor over thewindow tile. You can also flip openprograms and arrange them in a 3Dstack. Do you need this 3D effect?Maybe not, but the dynamic contentdisplay requires a 1 GB dual-channelprocessor and a 256 MB video card fromATI or nVidia.

By all means, consider only the BusinessVersion. The Ultimate version has somefeatures you may not need on businesssystems, but you’ll have to be the judge.

• Windows Media Center — linking yourbusiness photos and CDs from yourbusiness computer to your living roomsystem. Do you need this?

• Gaming and active entertainmentusing Microsoft, XBox 360 and otherdevices. Do you want these featureson business computers?

• Drive Encryption to secure your datafrom intruders. Great for drug dealers

or Enron executives, but a complicationfor backups, and not really the type ofprotection you could get with a physicalfirewall device.

When You Do Upgrade

Remember to back up very thoroughly.And retain your back up CDs or tapes long after the new Vista has beenoperative. One advantage of all newhardware — you can save the oldcomputers as your back-up — ready to go at a moment’s notice.

For More Info see Charts on page 19

You can be selective regarding whichsystems to upgrade to Vista, but when youmove to Office 2007 you probably need tomove all your associates and all yourcomputers to have file compatibility.

Change is inevitable and technologyadvances faster than we mightexpect or wish. Eventually you willenjoy the Vista and Office Suiteenhancements — but there is muchto be gained by your making athoughtful upgrade — later.

Ed Morrow is the chairman and chiefexecutive of the IARFC and he speaksfrequently at professional conferences ontopics related to his practice experience —and enabling financial advisors toincrease their sales production and clientservices, by building their practicesthrough effective client relationshipmanagement. He first used computers in‘70 and he has authored seven computerprograms and 21 operation manuals.For information on his speaking services e-mail: [email protected] phone: 513 424 1656 ext. 14


Five Pricing Levels of Vista

Purchase Upgrade

Home Basic $199 $99

Home Premium $239 $159

Business $299 $199

Ultimate $399 $259

Enterprise Version Not Available

Ed Morrow, CLU, ChFC, CFP®, CEP, RFC®



Absolute Minimum Microsoft Recommends We Recommend

CPU Processor Speed 800 MHz 1 GHZ 2.66 GHz

RAM Memory 512 MB 1 GB 2 GB

Hard Drive Size (capacity) 20 GB 40 GB 250 GB

Free Hard Drive Space available 12 GB 15 GB 200 GB

Hard Drive Access Speed Fast!

Video Graphics RAM (on the Card) 32 MB 128 MB 256 MB

Aero Graphics Card No Yes Yes

Office 2007 Purchase Upgrade Word Excel PPt. Out. Pub. Acc. 1note BCM

Basic OEM only n/a n/a

Home & Student 149 n/a

Standard 399 239

Small Business 449 279

Professional 499 329

Ultimate 679 539

Professional Plus volume n/a

Enterprise volume n/a

As you can see, when PowerPoint, Outlook, Publisher and Access are added, the price goes up sharply. Most financial advisors will probably find the Small Business version to be adequate – at an upgrade cost of $279 per computer. However, if you want the Outlook Business Contact Management (BCM) and Access, you’ll need to get the Professional version – for an extra $50

Solo Advisor Small Firm Larger FirmNumber of Persons 1 4 15

Total Computers (desktop, laptop, home) 3 10 30

Upgrade to the Small Business version of Office 2007 * 837 2,790 8,370 **

Acclimation Costs — (5 hours @ $75 an hour/per person) 375 1,500 5,625

Vista Upgrade - (Business version $199) * 597 1,990 5,970

Upgrade Installation - (2 hours @ $75 hour/per PC) 450 1,500 4,500

New Hardware (Average per unit $600) *** 1,800 6,000 18,000

Training (no tuition included) 3 hours @ $75/per person 225 900 3,375

Total Estimated Costs 4,284 14,680 45,840

* Costs are for upgrade of current licensed software. New version costs may be higher, depending on the hardware “bundle.”

** May receive some savings by using an Office 2007 Enterprise version, mixed with some single station upgrades.

*** New hardware assumes half the systems will need to be replaced, plus a new Vista-compliant video card installed for the rest.

The public, fueled by news reports ofidentity theft reports, is keenlyconcerned about the loss of privacy andproperty through the ballooning numberof identity thieves. The Institute ofConsumer Financial Education (ICFE),an award winning San Diego basedpublic education organization reportsthe “ICFE Certified Identity Theft RiskManagement Specialist™” (CITRMS™)training and certification program isbeing very well received. It has beenaccepted for 30 Continuing Education(CE) credits by the IARFC, the CFPBoard and the Society of FinancialService Professionals PACE continuingeducation requirements.

The ICFE Identity Theft educational and certification testing programcomprehensively prepares and equipsfinancial planners, law enforcementprofessionals and CPA’s, resolutionadvocates, lawyers, credit and debtcounselors to help the public. Thecourse offers well prepared education,testing and computer software training, combined with the knowledgeand skills necessary to help consumers and businesses fully assess and minimize their present risk of credit and identity theft.

There are 15 CE units on the generalprinciples of financial planning and 15 CEs deal with insurance planningand risk management.

Financial planners, insurance advisorsand counselors are on the front lines ofhelping their clients secure their financialfutures. The rampant epidemic of IdentityTheft, cyber-crime, and other types ofconsumer fraud poses a serious threat tothat financial security, and the impactcan do be truly devastating.

The acceptance of this course by theprofessional bodies clearlydemonstrates that in today’senvironment, it is critical for financialservices professionals to educate andassist their clients in addressing allaspects of risk management.

Today this means not merely in thetraditional sense, it must include credit

and identity theft risk management.Most consumers are simply unaware ofthe extent of their risk

Documents

LTC — A Quality of Giving the Media Life Decision 8 the · 2017. 10. 9. · February 19–23, 2007, Australia February 24-28, 2007, New Zealand MarketShare Leadership Convention