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Vol. 7 No. 8 • August 2006 Official IARFC Publication www.IARFC.org
Serving Financial Advisors Worldwide
Originator: Positive Mental AttitudeW. Clement Stone
IARFC Philippines Graduation Ceremony – July 8, 2006
RFC® graduates, pictured above, donned caps and togas for the graduation ceremony upon completion of the Philippines RFC® course. The IARFC Philippines regularly conducts RFC® courses for the financial and insurance industries in Metro Manila and Cebu areas.
Financial Advisors ForumBally’s Hotel, Las Vegas
May 15–17, 2007
Finding Security in an Uncertain WorldMark your calendar now!More information soon.
Discovering the Riches of Life throughNapoleon Hill’s Timeless Principles
Napoleon Hill Associates of Malaysia & The Napoleon Hill Foundationjoin in sponsoring the first
Napoleon HillInternational Convention
March 12, 2007Putrajaya International Convention Center, Malaysia
Keynote Speakers:Bob Proctor, Vic Conant, Charlie “T” Jones, Dr. William Tan
and “Surprise” Keynote
Event Highlights:• Surprise Guest Speaker with not-to-be missed
World Premier Event • Book Expo featuring the latest in Self-Help
Literature featuring Dr. Napoleon Hill • Mingle with like-minded positive people
from around the world• Gala Evening Black Tie Dinner with
Charlie “T” Jones and Special Guests• 11 day /10 Night Malaysian Tour available —
March 4th to 14th, 2007
Discover the Riches of Life! For more information,visit: www.naphillconvention.comwww.napoleonhill.com.my • www.naphill.org
The Register • August 2006 Page 1
The Register (ISSN 1556-4045) is published monthly by the International Association of RegisteredFinancial Consultants, Financial Planning Building, 2507 North Verity Parkway, P.O. Box 42506,Middletown, Ohio 45042, ©2006. It includes articles and advice on technical subjects, economicevents, regulatory actions and practice management. The IARFC makes no claim as to accuracy anddoes not guarantee or endorse any product or service advertised or featured. Articles, comments andletters are welcomed by e-mail to: [email protected].
Application to Mail at Periodicals Postage Rates is Pending at Mansfield, Ohio 44901.POSTMASTER: Send address changes to: The Register, P.O. Box 42506, Middletown, Ohio 45042.
Financial Planning Building2507 North Verity Parkway
P.O. Box 42506Middletown, OH 45042-0506
800 532 9060 • Fax 513 424 5752www.IARFC.org
BOARD OF DIRECTORS
Edwin P. Morrow, Chairman & CEOCLU, ChFC, CFP®, CEP, RFC®
Judith Fisette-Losz, Executive [email protected]
Lester W. AndersonMBA, RFC®
H. Stephen Bailey, PresidentLUTCF, CEBA, CEP, CSA, RFC®
Jeffrey ChiewDBA, CLU, ChFC, CFP®, RFC®
Vernon D. GwynneCFP®, RFC®
Derek D. KlockMBA, RFC®
Edward J. LedfordCLU, RFC®
Constance O. LuttrellRFC®
Ruth LyttonMS, Ph.D., RFC®
James McCarty, SecretaryCLU, RHU, LUTCF, RFC®
Burnett Marus, TreasurerRFC®
Rosilyn H. OvertonMS, CFP®, RFC®
Ruben RuizChFC, CLU, MSFS, CSA, RFC®
Michael ZmistowskiRFC®
[email protected]_________________________________
Wendy M. Kennedy, Editorial [email protected]
Stephanie Langster, Administrative [email protected]
in this issue
2 Register Letters
3 The Last Interview with Industry Legend: W. Clement Stone by Forrest Wallace Cato
6 IARFC Calendar of Events
6 From the Chairman’s Desk by Ed Morrow
9 The Secret of Prospecting — Create A Board of Advisorsby I. David Cohen
10 Compliance Friendly MarketingLake Woebegone meets Starbucks — the Model Client Experienceby Katherine Vessenes
12 A New Way of Planning for Your Retirementby Bruce Helmer
13 Courts Upholding Higher Standardsby Peter E. Liu
15 Bankruptcy Awareness
17 It Tastes Expensive… And Is.by Ed Morrow
20 Intriguing Introductionsby Teresa Easler
21 Consumer FocusFor Veteran and Active Duty Service Members Credit Monitoring is a Feel Good Answer, but False Sense of Securityby Paul Richard
22 Will Federal Regulators Shut Your Seminars Down?by Larry Klein
23 Alaska Cruise Conference August 17-24, 2007Mark Your Calendar Now!
Page 2 The Register • August 2006
Register LettersWe welcome your comments, suggestions and ideas.Please direct correspondence to: [email protected] may be edited for length and clarity.
To the Editor:
The July 2006 Register alone was worthfar more than the cost of our annualdues! In “Cato Comments — ClownsWho Want To Sell ‘Services’ To You”,Forrest Wallace Cato has done it again.Cato is one of the few super-talents whohas the courage to speak the simpleand quite obvious truth even when themyths are prevailing. For over 33 yearsI have been in this profession and Ihave never seen writing like this in anyother financial association publicationor any financial advisors magazine.
During my years as a financialprofessional I learned to sell myselffirst, needs second, and then resolve asmany problems as I could. When I seethe “in-your-face” ads, or the screamerson DVD, I just move on. My reaction is:“If your methods are so much better,then why aren’t you using them insteadof selling them to us?” This should beobvious even to those who actuallybelieve “There must be an easy way.And this must be it.”
As long as there are lazy people in ourprofession — there will be a market forthese endless ways to riches for agentsand planners — especially for thosefolks who don’t care what they sell. Anyalleged quicker, easier, and better way,offered by any guru, for the lazy or forthose who are deficient in commonsense, is a sure sell for the many gurus.
I work one at a time with families but Iam not interested in getting anywooden blocks. I use stories,analogies, and life’s experiences to findour common ground. My easy-to-understand but honest strategy helpssell — me, needs, and solutions. This isnot rocket science and this is not likelyto eventually blowup on you!
Earl A. Thompson, RFC®
Houston, TX
To the Editor:
The June 2006 Edition of The Registeronce again provided very valuableinformation to readers regardingincreasing income and productivitydramatically.
The suggestion by Katherine Vessenesto throw a top client surprise retirementparty was ingenious and certainly wouldbe a profitable venture. In addition,Theresa Easler's quote “7Communication Strategies for DoublingYour Sales in Half the Time” was directand to the point when she stressedincorporating a call to action in thesales process. Those two articles aloneare worth my membership fee.
Jim McCarty, RFC®
Daytona Beach, FL
To the Editor
Once again the Register hit the nail onthe head with an excellent issue. Thepicture of Jack Gargan on the cover andthe complete story was very informative.I'm not sure his predictions of financialdoom will occur...(“probably within threeto five years”)... as quickly as heenvisions. However, he is right to be soaware of the financial problems endemicin the U.S. economy. The balance ofpayments, national debt and a congressthat continues to overspend. All forwardthinking financial planners shouldbalance their thinking with a respect forthe financial problems the U.S. facesand not continue to write the same plansas years ago. Congratulations to JackGargan, a great American.
I was glad to see the Prudent BearFund's attendance at the last IARFCannual meeting.
Vernon Gwynne, RFC®
Jacksonville, FL
The IARFC Register would appreciate articles of 300 to 1,500 words. Submit via e-mail, along with any charts or graphs and an electronic photo
and short bio of less than 100 words to: [email protected]
Register correction: It has come to our attention that Vol. 7 Issue 7 page 23 article byLisbeth Wiley Chapman was incorrectly titled. The title of this excellent article shouldhave read: Make Your Media Kit Available on Your Website
INTERNATIONALIARFC COORDINATORS
Jeffrey ChiewAsia Chair
DBA, CLU, ChFC, CFP®, RFC®
Liang Tien LungChina Development Organization (IMM)
RFC®
Ralph LiewPhilippines Chair
RFC®
[email protected] Manalo
Executive [email protected]
Jerry TanSingapore Chair
CIAM, CMFA, RFC®
Zhu Xu LongChina Chair, Shanghai
RFC®
Samuel W. K. Yung, MHChair, Hong Kong and Macao Chair
CFP®, MFP, FChFP, CMFA, CIAM, RFC®
[email protected]. Teresa So
Advisor, Hong Kong and MacaoPhD, MFP, FChFP, CMFA, CIAM, RFC®
RFC®
Ng Jyi WeiMalaysia Chair
ChFC, CFP®, RFC®
Aidil Akbar Madjid Indonesia Chair
MBA, RFC®
[email protected] Soemarto
MA, RFC®
Jeffrey ChenTaiwan Chair
RFC®
Preecha SwasdpeeraThailand Chair
MPA, MM, RFC®
Demetre KatsabekisGreece Chair
MBA, Ph.D, RFC®
The sales legend is gone, long live thesales legend! Known world-wide as“Mister Positive Mental Attitude,” Stonestarted-out with nothing, saved a hundreddollars as a young man, then went on bethe founder of Combined InsuranceCompany a subsidiary of Aon Corporation,which today has agents and employeesworldwide.
In the process of achieving major successwith insurance he became both a tycoon,and a philanthropist, plus an inspirationfor the entire fraternal industry. Hebecame a friend to Loren Dunton (founderof financial planning) and such IARFCmembers as Mehdi Fakharzadeh, LewNason, Norman G. Levine, Phil Calandra,Jack Gargan (the founder of IARFC), EdMorrow (IARFCs current CEO), LesAnderson, Vernon D. Gwynne, Joseph A.“Big Joe” Clark, and other RFCs. When W.Clement Stone died, after reaching theage of 100, be was highly respected inmuch of the world and a belovedAmerican citizen.
Mr. Stone’s Funeral
The limousines discharged prestigiouspassengers at Stone’s funeral, in solemnprocessions, one after another.Dignitaries from around our globe enteredthe First Presbyterian Church in theChicago suburb of Evanston, onSeptember 6, 2002. They came to mournthe death and also to celebrate the life ofthe great man, a world famous insurancemagnate, book author, and a life-longdisciple of Dr. Napoleon Hill.
Throughout his life, Stone continuallycredited the self-help teachings ofNapoleon Hill for his success in the highlycompetitive insurance industry. Stoneserved as Chairman of the Board of TheNapoleon Hill Foundation for over 40years. Stone credited the principlescontained in Dr. Hill’s classic best-sellingbooks, Think And Grow Rich and How ToSell Your Way Through Life for his abilityto grow a $100 start-up company into atwo billion dollar insurance empire.
During his life, Stone lost track of thenumber of copies of Think And Grow Richand his famous best-selling book How ToSell Your Way Through Life that he gaveaway to individuals, organizations andfinancial planners.
Attending Stone’s funeral were peoplefrom all financial disciplines, e.g., financialplanners, insurance agents, bank trustofficers, broker dealer executives, taxlawyers, accountants, estate attorneys,mutual fund managers, etc. From allwalks of life, people across the nationmourned when they learned of hispassing. Many considered “the late(positive mental attitude) PMA advocate”to be a beloved influence in their lives and careers.
The final services were conducted by Rev.Dr. Robert H. Schuller, Senior Pastor ofThe Crystal Cathedral. Also present wheretop officials from the former NixonAdministration, radio commentator PaulHarvey, and others, both known andunknown. Among the mourners was DonM. Green, Executive Director of theNapoleon Hill Foundation.
Stone Gave Away $277 Million Dollars!
Clement, married for 78-years to Jessie,loved to talk about self-help, inspirationalguidance, and personal motivation. Heenjoyed dancing and motivating others togreater achievements. During his lifetimehe gave away over $277 million to civicgroups, charities, and worthy causes,including money to help the needy. Stoneenabled large numbers of children tocomplete their schooling. For over 50-years he was associated with the Boys Clubs of America and the Girls Clubsof America. He requested that, at hisdeath, in lieu of flowers, memorialcontributions be made to the Boys andGirls Clubs of Chicago.
He gave one million dollars to Rev. Dr.Robert Schuller to begin construction onthe now world-famous Crystal Cathedral.When the church was completed, Rev.Schuller invited Stone to be first to speakas a lay person to those attending. Stonetold the congregation: “You need to readSuccess Through A Positive MentalAttitude. I will get each of you a copy.”Later a truck delivered over 7,000 copiesof this book co-written by Napoleon Hilland W. Clement Stone.
The Napoleon Hill Foundation teaches Dr.Hill’s success principles, and also licensesthem to be taught around the world.Stone’s financial legacy still supports thefoundation. This writer was especially
proud of the fact that W. Clement Stonewas a regular reader of FinancialPlanning, a magazine I formerly edited.
Stone contributed significantly to TheNapoleon Hill Foundation and directed thefoundation’s operations for forty years.Today The Napoleon Hill Foundationaccomplishes worthy objectives world-wide. Judith Williamson, Director of TheNapoleon Hill World Learning Center,explains, “Courses such as the distancelearning course, the home study course,and the “live” courses taught at PurdueUniversity Calumet and the University ofVirginia, College at Wise, all contributegreatly to the dissemination of Hill’ssuccess philosophy.”
Ms. Williamson adds, “Specializedcourses offered at correctional institutionsby trained onsite counselors help enableinmates to turn their lives around prior to,and more importantly, after release.Prisoners generally are people who do nothave the needed skills to make a goodliving. Many prisoners can barely read atthe standard 6th grade level. Researchshows that people who cannot read have the odds for success stackedagainst them.”
According to Williamson, “Studiescontinually indicate that ninety percent ofpeople lose their jobs because ofinabilities to get along with other people.It is pitiful that so many people go throughlife and don’t learn the elementary basicsfor succeeding.”
Napoleon Hill was commissioned byAndrew Carnegie in 1908 to research anddistill the principles of personalachievement. The industrial magnatewanted to learn why many failed, yetothers without advantages achievedsuccess. Accepting the commission,Napoleon Hill spent over twenty yearscompiling the material for his inspirationalbest-sellers Law of Success (1928) andThink And Grow Rich (1937). These andother works by Dr. Hill earned world-wideacclaim and many credited Dr. Hill’sphilosophy as the blueprint for achievinggoals and success.
It was W. Clement Stone who stated,“Regardless of what you are or what you
The Last Interview with Financial Industry Legend: W. Clement Stone (May 4, 1902 — September 3, 2002)
The Register • August 2006 Page 3
continued on page 4
continued from page 3 Interview: W. Clement Stone
have been, you can still become what youmay want to be.” This vision of furthersuccess in the future was the reason W.Clement Stone coaxed Dr. Napoleon Hill tocome out of retirement.
Because of Stone’s strong insistence thatDr. Hill’s work was not yet complete, thiswell-proven and highly respectedphilosophy has since spread to privateschools, corporations, associations,prisons, and college and universityclassrooms both nationally andinternationally. Japan, Malaysia, China,South Korea and India are just a few ofthe international associates that supportthe instruction conducted by theNapoleon Hill Foundation. Additionally,the Foundation maintains a unique self-help library that houses multi-volumesowned by W. Clement Stone and donatedto this library that bears his name.
New Musical Play Based onW. Clement Stone and Napoleon Hill
A special Open House Week was held atPurdue University Calumet in May 2003 inhonor of W. Clement Stone in appreciationfor his involvement in The Napoleon HillFoundation. Stone’s many friends andassociates in the financial services andfraternal industry were invited to attend.The insurance agents, financial plannersand financial advisors, numbered in the thousands.
The week honoring Stone began with theworld premier of a new musical stageproduction called Nap! on the evening ofMay 4th. Nap! is a full-length new musicalplay that showcases Napoleon Hill with hisfamous ‘bookends in life.’ The playwrightwas O. J. Stutte, and the director was J. Allen Johnson, Executive Assistant tothe Chancellor of Purdue UniversityCalumet. An additional luncheon/matineeperformance of Nap! was held for invited trustees and guests from Japan,Malaysia, China, Thailand, Canada,England and Korea.
W. Clement Stone is featured very visiblyin Nap! as Stone’s character develops asignificant part of the musical. The dramabuilds upon the comprehensiveunderstanding of the relationship ofNapoleon Hill and W. Clement Stone, andthe importance of Andrew Carnegie toboth of these now-famous men.
The Napoleon Hill Center
For free, no-obligation details about theNapoleon Hill courses and services, plus
their benefits for Registered FinancialConsultants, all offered nation-wide,contact Judith Williamson, Director, TheNapoleon Hill World Learning Center,Hammond, IN, phone 219 989 3173,e-mail [email protected] or
visit www.naphill.org
The famous line, “Whatever the mind ofman can conceive and believe, the mindof man can achieve, through a positivemental attitude.” was created byNapoleon Hill and later embellished by W. Clement Stone.
The Last Interview With The Great Insurance Sales Pioneer
W. Clement Stone
Forrest Wallace Cato: What does PMAmean today?
W. Clement Stone: Those letters stillstand for positive mental attitude. At theage of six, I sold newspapers on 31st andCottage Grove in Chicago. Today I amChairman Emeritus of a vast insurancegroup. There is a relationship betweenthe newsboy and the chairman.Experience, know-how, and sales activityknowledge! It is also true that asuccessful president, or financial planner,insurance agent, executive, teacher,lawyer, professional speaker, doctor,inventor, scientist, philosopher, or artist isnot born to success. Each is self-made!Each is measured by the results heobtains in achievements. There arerelatively few true geniuses.
Every normal person has a brain and anervous system and is, therefore,endowed with great mental capacities.Few use and develop their natural abilitiessufficiently to reach the many goals theycould achieve. They don’t or won’t paythe price to learn the art of motivationwith a positive mental attitude. Thisapplies to many of us. You can developyour abilities more fully in the future if youare motivated to pay the price. This iswhat PMA means today!
You can begin right now to acquire thenecessary activity knowledge. Your price?Regular investment in study, thinking, andplanning time, plus following through withaction work! Given the necessaryexperience of doing the right thing the rightway, you get the right results consistently.And when you do, work becomes fun. ThisI learned from experience.
Cato: Would you explain your theory thatevery problem has a solution?
Stone: As a paper-boy, I learned a lot thathelped me later as a salesman, salesmanager, and executive, even though Ididn’t realize it at the time. I know nowthat I began to learn then. I tried to sellpapers at 31st and Cottage Grove, then avery busy intersection. The newsboys whowere older and bigger than me beat meup to keep me from interfering with theirsales. That’s why I walked into the oldHoelle’s Restaurant and completely soldout my stock of newspapers. I did notexperience a personal defeat.
Cato: What is a personal defeat for atypical reader of The IARFC Register?
Stone: A personal defeat may be a finalend, a stepping stone, all according to theway you accept it.
Cato: Can you tell Register readers moreabout your work as a paper-boy?
Stone: As a paper boy, I also began tolearn how to overcome fear throughdirect action. I learned the value ofpersistence, and how to sell by using amethod others were afraid to use! Coldcanvassing! Calling on business people inbusiness places without an appointment.That’s the way I sold newspapers.
How Stone Sold Insurance!
That’s the way I sold insurance! Andthat’s the reason I sold as many accidentpolicies in a single week as manyinsurance men sell in months. Why?Because I had learned how to recognizethe principles of a given activity, relatethem to the needs of a different activity,assimilate them into the newcircumstances, and apply them effectively.
Cato: Do you think the principles you learned long ago still apply to RFC’s today?
Stone: As a paper boy, I was motivated bynecessity. I had borrowed the money tobuy the papers. I had to sell them torepay the loan and make a profit. Lateras an executive, necessity became awholesome motivating factor in thesolution of problems. In many of mybusiness activities, I have been able toapply the principles I learned between theages of 6 and 14, selling newspapers.
Here are a few examples: As a newspaperboy, I had borrowed money and paid offmy loan. As a businessman, I borrowed
Page 4 The Register • August 2006
continued on page 5
continued from page 5 Interview: W. Clement Stone
large sums from banks and, like thenewspaper boy, I recognized the value ofrepeat business and returned to Hoelle’sRestaurant daily.
As an insurance man, I called back at therenewal date of the accident policy toservice my customers and sell themadditional insurance. I realized the value,as a newspaper boy, in selling crowdedplaces of business, and I applied thisknowledge later. As a paper boy, and as abusiness man, I always made it a practiceto get the money at the time of sale.
Cato: Register readers may wonder, is afinancial sales career worth it?
Stone: When endeavoring to come to anydecision concerning your future, you mayask yourself whether it is worth it. This isan especially trying vocation. Is it worthit? A traveling salesman may ask himselfwhether he is doing poorly or wellfinancially. This applies to executives, too,at all levels. I know from experience.
Many years ago I was selling in Macomb,Illinois. I awakened at three o’clock in themorning. The idea of being away from myfamily was particularly disturbing. “Is itworth it?” I asked myself.
In my thought process that night, I sawthat I could achieve wealth throughbuilding an organization and savingmoney. Money could do a great deal formy children, my wife and me. Also, wecould be benefactors to others. I realizedthat within a specific period of time, whenmy debts were cleared and the businessarrived at a given point, I wouldn’t have tomake the sacrifices. On weighing thedisadvantages and the advantages, Idecided that yes, it would be worth it. And it has been.
Cato: What tips or advice would you liketo leave for those in financial planning?
Stone: There are six important keys.
1. Direct you thoughts, control your andemotions, an you ordain your destiny!
2. You can develop your abilities morefully in the future in if you are willing topay the price.
3. Use you mind power to achieve highobjectives through developing yourPMA and eliminating your negativemental attitudes.
4. Learn how to use the greatest
machine ever conceived, so awesomethat only God Himself could create it;your brain and nervous system.
5. A part of all you earn is yours to keep,and if you cannot save money, theseeds of greatness are not in you.
6. Set a definite major goal. When youset a definite major goal, you are aptto recognize that which will help youachieve it.
Cato: How did you acquire yourphilosophy of success motivation?
Stone: When I was twelve years old, I didnot realize it then, but the fifty or moreHoratio Alger books I read that eventfulsummer had a lasting, wholesome effectupon me. They stimulated myimagination. They subsequentlymotivated me to desirable action.
The theme was constant in each HoratioAlger book: From Rags to Riches. Theprinciples in each: The hero becomes asuccess because he was a man ofcharacter, the villain was a failurebecause he deceived and embezzled.The poor boy could go from poverty towealth, from failure to success; he alwaysstrove to do the right thing because it wasright.
The teenager of today has personalproblems. As a high school freshman, Idid too. And because I had personalproblems, I wanted to develop selfdiscipline and will power to acquire goodhabits and eliminate those I felt wereundesirable. But I found no books in ourlibrary that would inform me how to dowhat I wanted to do. There were plentythat told me what to do but not how to doit! However, when you know what youwant you are apt to recognize that whichwill help you get it.
Because I knew what I wanted, Irecognized what might help me get it! Acoupon advertisement in a Chicagonewspaper promoted The Power of Will byFrank Channing Haddock; I bought it. Thiswas my first inspirational, self-help, actionbook. The Power of Will gave me insightinto the functioning of the human mind.More importantly, I began to see theprinciples that are so obvious they aren’tgenerally seen.
What a thrill it was to know that Ipossessed the greatest machine everconceived, so awesome that this machinecould only be created by God Himself — a
brain, nervous system, and the un-definable human mind!
And even more exciting to know how Icould operate and use this machineeffectively to deliberately direct mythoughts, control my emotions, andachieve a worthwhile goal that didn’tviolate the laws of God or the rights of myfellow man. I learned how to motivateothers and how to motivate myself, at will,through such simple techniques as theuse of suggestion and self suggestion!
Cato: What is motivation?
Stone: Motivation is that which inducesaction or determines choice. It is thatwhich provides a motive. A motive is anurge within the individual, such as aninstinct, emotion, habit, impulse, desire,or idea that incites him to action. It is thehope or other force that moves theindividual to attempt to produce specificresults.
Cato: What are these principles ofsuccess?
Stone: It isn’t necessary to think as youread. But it is imperative to think, study,and learn how to consciously use yourbrain power to motivate yourself andothers to desirable action. If you do, youcan achieve anything in life you maydesire that doesn’t violate the laws of Godor the rights of your fellow men.
To motivate yourself to desirable action inthe future, prepare yourself now. Beready to recognize and grasp eachopportunity when it comes. To be ready,decide now whether it is worth it to you topay the price to think, concentrate,understand, comprehend, and relate toyourself the principles applicable to you.
Do this as you read self-help literature, beit an inspiring poem, story, newspaperarticle, a feature in the Register, a book,or when you listen to a motivatingcassette, lecture, sermon, the advice ofan expert of proven experience who istrying to help you!
Cato: How does a Registered FinancialConsultant motivate himself or herself?
Stone: By learning how to better use thegreatest machine ever conceived! The machine that is so awesome only GodHimself could create it — your brain andnervous system!
continued on page 7The Register • August 2006 Page 5
Where the IARFCwill be represented:
Worldwide Chinese Life Insurance Congress - RFC CongressAugust 12, Chengdu, ChinaMoney Concepts AnnualRegional Planning Congress August 16-19, San Antonio, TXRFC WorkshopAugust 19, Shanghai, ChinaMarketShare SymposiumAugust 20-22, Indianapolis, INRFC WorkshopAugust 21, Guangzhou, ChinaRFC WorkshopAugust 23, Taipei, TaiwanNAIFA Annual MeetingAugust 26-30, San FranciscoIARFC Cruise/ConferenceSeptember 16-23, 2006 “Fall Foliage”Through New England and CanadaMDRT Top of TableOctober 18-21, 2006 Palm Desert, CAMillion Dollar Marketing WorkshopNovember 6-7, 2006, Minneapolis Heckerling Estate ConferenceJanuary, 2007, OrlandoAPfinSA ConferenceApril 13-15, 2007, TaipeiFinancial Advisors ForumMay 15-17, 2007, Las VegasMDRT Annual MeetingJune 10-13, 2007, DenverInternational Dragon AwardsAugust 11-13, 2007IARFC Cruise/Conference — AlaskaAugust 17-24, 2007Vancouver, BC to Anchorage
If you are going to attend any ofthese events, please let us know.
Featuring Pioneers. The IARFC is fortunate to have as our advocates and asmembers persons who have and who are shaping financial services.
Unfortunately, many organizations pay no heed or homage to those uniquepersons. Their loss!
This month’s feature article on W. Clement Stone, is not because of hisincredible rise from a newspaper boy to multi-millionaire. Nor because of thegiant corporation he created. It was because Stone rose to success byembracing the success and concepts of others. Yes, he was an original thinker— but he built his empire and his beliefs on the business and mentalachievements of others. He never said, “I’m a success because of me!” Hesang gloriously of the mental stimulation he received from other writers andthinkers. He was proud to stand on the shoulders of giants — and that madehim a giant.
You can forget his millions — or even the hundreds of millions he gave away.What Stone really created — and gave to the world was the capacity of PositiveMental Attitude — PMA.
No — he was not a planner — but he was a personal friend and strongsupporter of Loren Dunton who established the original institutions of financialplanning in the U.S.
No — he was not a Registered Financial Consultant — but in the last years of hislife he was a reader of our Journal of Personal Finance and the Register. It issad that we did not publish his thoughts in those years. However, veteranjournalist and media advocate, Forrest Wallace Cato did interview him.
Readers of the Register would not be aware of this, but Cato is the literaryagent for both the Napoleon Hill Foundation and the literary archives of W.Clement Stone. When he interviewed Stone — Before his death at age 100 in2002 — Cato asked Stone many critical questions, and some related toRegistered Financial Consultants.
On a worldwide basis few men have had the impact of Andrew Carnegie,Napoleon Hill, Frank Channing Haddock and W. Clement Stone. You probablydon’t recognized Haddock’s name — but his book, Power of Will was thepredecessor and thought stimulator for Success Through a Positive MentalAttitude.
What determines success as a financial planner? It would be easy to say –knowledge, training, organizational systems, software, and technology. But thereal answer is probably, mental attitude.
Negative — you’ll be a failure Positive — and you’re a success!Neutral — you barely get by
Other leaders have incorporated the principles of W. Clement Stone. They areextraordinarily successful financial advisors. They may not be of the wealthstatus of Stone – but persons who have achieved noteworthy success in theirmarket niche, in their community.
Every reader of the Register can achieve these levels of success. If a destitutenewspaper boy like W. Clement Stone can build a financial empire and athought movement, you can exceed your goals.
From theChairman’s Desk...
Page 6 The Register • August 2006
continued from page 5 Interview: W. Clement Stone
Master the art of tapping into the powerof your subconscious through yourconscious mind regarding emotions,instincts, feelings, tendencies, moods, theformation of desirable habits, and theneutralizing, or elimination of theundesirable.
Learn how to use your mind power toachieve high objectives throughdeveloping PMA and eliminating negativemental attitudes.
Cato: Do you have instructions for RFC’swho want to achieve this?
Stone: Memorize the self motivator “Do ItNow!” When “Do It Now!” flashes fromyour subconscious to your conscious mindconcerning desirable matters, small orlarge, act immediately!
The habit can easily be established byrepeating “Do It Now!” several times in themorning, several times in the evening for aweek or ten days to indelibly imprint thesuggestion in your subconscious mind.
Memorize the two self motivators thathave helped countless thousandsmotivate themselves to desirable action:
“What the mind of man can conceive andbelieve, the mind of man can achieve forthose who have PMA.” “Aim High!”
Cato: Do you believe PMA is essential forRFC’s success?
Stone: A positive mental attitude isnecessary for achieving worthwhilesuccess. Achievement is attained throughsome combination of PMA anddefiniteness of purpose with one or moresuccess principles. PMA is the rightattitude in a given environment. We inAmerica know what it is for us, for we haveinherited the tenets of the Judeo-Christianfaiths on which our Constitution, laws andcustoms have been based. A fewillustrations on how you can develop PMA:
Strive to understand and apply thegolden rule, be considerate andsensitive to the reactions of others, besensitive to your own reactions bycontrolling your emotional responses toenvironmental influences.
Believe that any goal that doesn’tviolate the laws of God or the rights ofyour fellow men can be achieved.
Develop what are understood to beeffective habits of thought and action.
Cato: Is more required? I mean, whatcomes next?
Stone: Definiteness of purpose combinedwith PMA is the starting point of allworthwhile achievement. Some authorsuse the term “singleness of purpose” toindicate definiteness of purpose. Howeverexpressed, it means that you should haveone high, desirable, outstanding goal andkeep it ever before you.
You can have many goals that are non-conflicting which help you to reachyour major definite goal. It is advisable to have immediate, intermediate, anddistant objectives.
Cato: After PMA and definiteness ofpurpose, what is needed?
Stone: A burning desire suggests acompulsive intent, an ardent, intensefeeling. An effective way to turn a want,wish, or desire, into a burning desire is towrite down your goal — and each dayreview it to constantly keep your goalbefore you. As you develop successfulhabits and learn through experience, anevolutionary process will take placewhereby you will be warranted in selectinghigher goals. Aim higher and higher witheach achievement.
Your Extra Miles Bring Your Success As A Financial Planner!
Cato: What is essential for achievingfinancial goals?
Stone: Have PMA. To achieve anyobjective, or goal, including that ofcreating a burning desire, it is imperativethat you go the extra mile. You mustapply extra concentrated effort in yourthinking and planning time with regularity!Establish desirable goals by learning howto tap the power of your subconsciousmind through the conscious!
Learn and apply successful techniquesthat motivate you to action at will! Andengage in personal inspection withregularity to determine whether you areon the right track and headed in the rightdirection so that you don’t deviate fromthe path that leads to the achievement ofyour objectives.
Cato: What is the new dimension ingoing the extra mile that will prove mostbeneficial?
Stone: It is the deliberate application ofadditional effort to think and act in order
to achieve worthwhile goals for self-development through the use of yourmind powers, to establish desirable habitsof thought and action in following theprinciples of universal law pertaining toyour mind and body. You can do it. Youcan prove it. You can start right now.
Anything in your life worth having isworth working for, and anything worthworking for is worth praying for.
Many authors in the inspirational self-helpaction field, such as Dr. Norman VincentPeale and the great Napoleon Hill,encourage people to visualize theachievement of the goal they sincerelydesire.
To guarantee success, engage in dailystudy, thinking, and planning time withPMA regarding yourself, your family, andhow you can achieve your definite goals,and learn how to use the power ofsuggestion to influence others and selfsuggestion to influence yourself as well.
Cato: What are the two most importantself motivators that you advocate forRFC’s?
Stone: The two additional self motivatorsapplicable to those who like RFCs controltheir destiny are:
‘With every adversity there is a seed ofan equivalent or greater benefit for thosewho have PMA’
‘Success is achieved and maintained bythose advisors who try with PMA.’
Cato: Is personality important?
Stone: To think and grow rich it isimperative that you develop the habit ofbeing sensitive to your reactions toindividuals, circumstances, and events,and to the reactions of individuals andgroups to what you say, write, or do. Toacquire the true riches of life, it isessential that you develop a pleasingpersonality, pleasing to yourself and toothers. And when you sense yourpersonality is displeasing to yourself, youcan make a change for the better bydeveloping inspirational dissatisfaction.
Cato: Do you advocate any ‘self-toughlove?’
Stone: Yes! Why always argue, or try toprove another person wrong, regardless of
continued on page 8The Register • August 2006 Page 7
continued from page 7 Interview: W. Clement Stone
how foolish his or her logic may seem toyou? In the words of Frank Bettger, in hisbook, How I Raised Myself From FailureTo Success In Selling, “Oh Lord, help mekeep my big mouth shut!”
When you have a problem with anotherperson, client or prospect — instead ofalways blaming him or her, start withyourself. Analyze what you can do to bringabout harmony, friendship, respect, anddesirable results. It’s an interestingphenomenon: Those individuals who areinsensitive to the feelings and reactions ofothers are generally persons whose ownfeelings get hurt the easiest.
To effectively be sensitive to the reactionsof other persons, memorize the essenceof the golden rule as a self motivator.Repeat this many times daily until thisbecomes indelibly imprinted in yoursubconscious mind and flashes to yourconscious mind in time of need: Do untoothers as you would have others do untoyou, and don’t do unto others that whichyou wouldn’t want others to do unto you.The last portion contains the principlesthat will help you become sensitive to thereactions of others.
Cato: What are “cosmic habit forces?”
Stone: Cosmic habit forces are thepowers that you apply with PMA when youuse universal laws or principles. Cosmichabit forces are employed when you useyour mind powers whether they pertain toyour conscious or subconscious mind.This is how you think and grow richer orachieve anything in life you desire (inprinciple) that doesn’t violate the laws ofGod or the rights of your fellow men.
In reading inspirational self-help actionmaterial, don’t be like the editors of apublishing company who must read self-help books from an editorial viewpoint —but who don’t recognize, relate,assimilate, or apply the principles thatcould change the course of their own livesfor the better.
Also, the essence of perfection is neverreached, but you become more perfect bystriving for it.
Cato: How important are habits orpatterns for financial planners?
Stone: Habits? Patterns? You alreadyhave them. All financial professionalshave them. Everyone has them. Somehabits are good! Perhaps others habitsare bad!
Many of you are aware of them, but somethat are undesirable you are blinded to.Each begins in your mind consciously orsubconsciously, and each can bedeveloped and neutralized or changed atwill through the proper use of your mindpowers. You have this power.
In school we are taught deductive andinductive reasoning and the fallacy thatwill result in starting with the wrongpremise in the one instance and makingthe wrong inference in the other. Accuratethinking and common sense are in partthe result of experience. You can learnfrom your own experience as well as thatof others when you learn how torecognize, relate, facilitate principle, andapply them in order to achieve your goals.
Cato: What is the price an RFC® mustpay for mega success?
Stone: For mega-success you must paythe price — this means you mustrecognized, understand, comprehend,relate, assimilate, and apply the followinguniversal truth to our advantage and toyou client’s advantage. Use a dictionary ifnecessary, and check on the synonym ofany word that does have a synonym.
You are the product of your heredity,environment, physical body, consciousand subconscious mind, experience,habits or patterns of thought and action,plus your particular position and situation,and direction in time and space, andsomething more, involving powers knownand unknown.
Cato: If a RFC® could ask you, “Who isresponsible for my success?” Whatwould you answer?
Stone: You are! You are responsible foryour own success. Every RFC® isresponsible for his or her own success!
Cato: Starting When?
Stone: Starting now!
Remember Your Enthusiasm For Helping Your Clients!
Cato: Does every person really have theability to become successful?
Stone: Yes! Absolutely yes! Yes, mostcertainly! You have the power to affect,use, control, or harmonize, with all of theunique elements I just mentioned. Youcan direct your thoughts, control youremotions, and ordain your destiny. You
can do it. You can do it starting now. Foryou are a mind with a body.
Applied faith means action, specifically,the habit of applying your faith under anyand all circumstances. Faith in your God,yourself, your fellow man and theunlimited opportunities that are availableto you in America.
Football coach Lou Holtz says, “The firstingredient that I believe is absolutelynecessary for a successful, efficient, andcompetent individual is enthusiasm.”
Coach Holtz also explained, “Enthusiasmcomes from Greek words. Let’s look intothe root of this word, into the basic,fundamental, and original meaning. Thefirst is Theos, which means God. Theother words are En-Tee, which in the earlyusage of this term of the Ancient Greeksliterally meant ‘God within you.’ Further,no battle of any importance can be wonwithout enthusiasm.”
To become enthusiastic for achieving adesirable goal, keep your mind on yourgoals day after day. The more worthy anddesirable your objectives, the morededicated and enthusiastic you willbecome. Understand and act on WilliamJames’s statement: “The emotions arenot always immediately subject to action.”As Frank Bettger reminded us, “To beenthusiastic, act enthusiastic!”
Cato’s Note: I conducted this interviewwith W. Clement Stone not long before hisdeath. When transcribing my notes Ithought that it did not have an end — thepunch line you might expect from “Mr.PMA.” But in fact, it does. Stone ends,just as he started his life — building onand crediting others. If the Registerreaders can capture his concentration ofpurpose, and his enthusiasm, they’llachieve great personal heights — just asStone did….
This article was prepared for the Register by Forrest Wallace Cato, who regularly prepares his CatoComments column, “About Your Image”for the Register. Cato, former editor ofFinancial Planning and Trusts & Estatesmagazines, is author of the book Sales And Success Secrets of The Great Motivators. Cato can be reached at: Intergroup II/Atlanta, Inc.,phone: 770 516 9395, e-mail [email protected] or visit website: www.CatoMakesYouFamous.com
Page 8 The Register • August 2006
At approximately 8:30 am on June 10,1958 I attended my first training sessionas a brand new life insurance agent. Iwas twenty-three and a college graduatein the school of business. The trainingsupervisor explained the differencebetween whole life and term insurance.He covered everything from non-forfeitureprovisions to the convertibility of terminsurance. I was excited to learn so muchabout our products.
At the end of our two hour session heasked if we had any questions. As youmight expect there were the usualquestions concerning the product featuresbut no one in class asked the mostimportant question, so I did: “Who do Isell these policies to and how do I get tothem in order to have a meaningfuldiscussion?” His response was what Ilater found to be the norm — we will get tothat next time!
As you might guess the next time nevercame. I quickly found that very few, if any,in our profession are truly experts onprospecting. It occurred to me from thatfirst day that if I didn’t determine how tofind prospects, all the product knowledgewould mean absolutely nothing. Therefore,I decided that I was going to spend most ofmy efforts not on product knowledge, buton prospecting. It worked! Some 48 yearslater I am still here and still thriving.
Action Steps. Let’s take a look at an ideathat you can put into place today toenable you to sit down with qualifiedprospects. However, you first need to:
• Identify your Target Market.• What are this market’s primary
needs and wants?• Have a deep understanding of your
products and services.• Understand how your products and
services help your clients.
Once you have identified your market theage old dilemma rears its head — how do Iget to see these people and businessesunder favorable circumstances?
Create a Board of Advisors. Companies,universities, and non-profit organizationshave boards of advisors, directors, ortrustees — it’s required by law. Why? Theanswer is simple: accountability. After all,leaders in positions of power can not haveabsolute power. They must answer tosomeone — especially in situations wherethe leaders are responsible for managingassets that belong to others (such aspublicly held companies and non-profitorganizations).
There is a process of checks andbalances that occurs in effective boardswhich creates a sense of accountabilitythat holds senior management’s feet tothe fire. This is one important value ofcreating a personal board of advisors. Agroup of three to five (or more) centers ofinfluence who share your vision and wantto see you succeed. To this end, youradvisory board should be available to give you:
• Advice• Counseling• Encouragement• Pressure to follow through on
your commitments
To begin, ask three to five of your best,most influential clients to serve on yourboard. Why clients? The answer is simple— only a client can truly grasp andunderstand the value of what you offer.
Organize to work with your board.You share your mission statement andbusiness plan with your board. Theircommitment is to meet with you as agroup two to three times a year. This isnot a new concept. In his book “Love TheWork You’re With”, author Richard Whitelydescribes six key “jobs” that together canmake up an effective board of advisors.
Mentor.Your mentor should care about yoursuccess and have ownership in yourfuture development.
Strategist.A person who can anticipate future
challenges and opportunities, and canthen alert you to them.
Solution Provider.Someone who would be focused on thepresent.
Coach.It’s someone who helps you stay focusedon what you need to achieve and how youare going to achieve it.
Butt Kicker.He or she can motivate you to challengeyourself in ways you never imagined.
Cheerleader.A person who always reinforces a positiveattitude.
Your board of advisors should be “elite”members of your centers of influence.They may or may not have a professionalrelationship with you. They can besuppliers, clients or work associates.Once you have created your board ofadvisors you need to make certain thateach person takes their role as youradvisor seriously. They need to see thatyou mean business. Follow these stepsand I assure you that you will have plentyof qualified prospects to see!
Getting leads or nominations. This willcome naturally. As your board memberssee you grow and develop your servicesthey will voluntarily suggest persons youshould be calling upon.
I. David Cohen, CLU, ChFC, LUTCF, RFC®
David has written a text book andcurriculum course entitled, “Prospect orPerish”. The purpose of this effort is tohelp financial service professionalsenhance their prospecting skills so thatthey can achieve the results they desire.The IARFC is planning to incorporate thisinto the new RFC® course within the ClientEngagement part of the curriculum. TheProspect or Perish materials have beenadopted by NAIFA — Ohio as part of aprogram to be presented by associationleaders. David has been a member ofMDRT since 1962 and has been apopular instructor of LUTCF and estateplanning programs. You can obtain hisbook or inquire about instructing coursesin your community. Contact David at: e-mail address: [email protected] 614 258 0444
The Secret of Prospecting — Create A Board of Advisors
I. David Cohen, CLU, ChFC, LUTCF, RFC®
The Register • August 2006 Page 9
Page 10 The Register • August 2006
wonderful referrals. Also, it makes theselling process so much easier. If yourprospects are having their expectationsmet at every step of their relationship,your closing ratios will increasedramatically and the sales processbecomes so painless, I call it the No-SellSale™. There is no selling — you justsystematically deliver exactly what theclient wants at every stage. Net result? Alife time relationship with a happy,satisfied client.
We were hired over two years ago tocreate the model client experience for H & R Block Financial Advisors. Our firm,Vestment, fixes broken companies, ortakes healthy ones to the next level. Ihave the privilege to be in business withmy husband, Peter.
Over two years ago,the president, BrianNygaard called us.His problem: H & R
Block had bought adiscount brokeragefirm a few yearsbefore and they hadbeen having a difficulttime making thetransition into a
financial services firmthat meshed with
Block’s tax base. Theywanted to move fromdoing transactions overthe phone to face to face
consultations.
I’ll never forget what Nygaard said to me:“I am concerned about the clientexperience. What does the client expectfrom us?” The question was simple butprofound. What he was really asking is“How do our clients want to feel,experience and act because they aredoing business with us?” One thingNygaard knew for sure, it had to beconsistent across the country. They have100,000 tax pros and 1,500 financialadvisors — they all had to be on the samepage, delivering the same message.
Part of our engagement was to create theClient Experience Model for H & R BlockFinancial Advisors, which they are justnow starting to roll out to 10 marketsnationally. Regrettably, creating the
Lake Woebegone meets Starbucks — the Model Client ExperienceBy Katherine Vessenes, JD, CFP®, RFC®
No matter where we live, we are all fromLake Woebegone — where all the men aregood looking, all the women are strongand the children are all aboveaverage. The stark truth is: Wegenerally think we are doing awhole lot better than we are. I callthis the Lake Woebegone effect.
Frankly, we have all beenspoiled. Who spoiled us?Starbucks for one. We allknow we could make coffee athome for about 50 cents a cup.We could also get it in arestaurant for about buck. Why dowe spend 3 or 4 dollars at Starbucks?Because of the experience.
How would you describe the Starbucksexperience? Here are the words thatcome to my mind: consistent, predictable,comfortable, warm, friendly, secure, safe,and a way to pamper myself.
I think Starbucks has done something fewcompanies have done — they havethought about the experience their clientswould want to have — and then theydelivered it. They have taken acommodity, something that costs about50 cents, sold it for $3.50 and made uscrave it, almost become an addiction. Wecan’t wait to get back.
This is exactly the same experience everyFinancial Advisor should be creating fortheir clients. Why? For a number ofreasons. First, clients who are wildlyhappy with your experience, will not onlystick with you, they will send you many
Starbucks experience is not always fast,but it is a sure way to improve sales andcreate clients who become raving fans.
All this process has a lot of moving partsand can take a long time to execute.However, in its most basic premise isincredibly simple. What do you want yourclients, to experience by being in arelationship with you? If your clients arehaving Starbuck — like experiences thatrate an 8, 9 or 10 at every stage, it ishighly likely that you will not only make theinitial sale, you will create a raving fanthat refers many more clients.
If the experience is only a mediocre LakeWoebegone, 5, 6 or 7, it will be muchharder to close the sale and even moredifficult to generate referrals. If yourclients are experiencing a 2, 3 or 4, youcould be looking at investors who are sounhappy, in the best case they will leaveyou and in the worst, they will be lookingfor an attorney to make them feel better.
Here are the steps that we take to helpour advisory clients or broker/dealers,create the ideal client experience for theirinvestor clients. I call this the SecretDecoder Ring, because once you have theRing, you can look at all of your clienttouch points and determine if you arecreating the experience you want yourclients to have.
Meet with your staff and coworkers andbrainstorm on these questions:
1. What do your clients want in theirrelationship with you? It is likely to be alot like being in Starbucks: A consistent,predictable, comfortable, warm, friendly,secure, and safe relationship that helpsbring them a sense of peace about theirfinancial future.
Make a list of the most commonattributes your clients desire because you will use this to evaluate your entireservice continuum. This is the secretdecoder ring for your firm. Once you haveidentified the secret decoder ring, use it toevaluate all aspects of your firm.
2. Compare client touch points with theideal client experience. Next make a list
continued on page 11
Katherine Vessenes, JD, CFP®, RFC®
The Register • August 2006 Page 11
of the major touch points your clientshave with your firm in chronological orderand evaluate them from the clients’perspective with your secret decoder ring.It may look something like this:
a. A marketing presentation in a seminar or brochure
b. An initial meeting in your officec. Follow up meetingsd. Client appreciation eventse. Quarterly reviewsf. Service requests
At each point, think about what the clientwould want at that stage in theirrelationship with you. It may be helpful tophysically walk everyone in your firm, eventhe file clerks, through the office, coveringeach step in your process, with the secretdecoder ring. Make sure they are thinkinglike a client.
Let’s take the first initial meeting in youroffice as an example. In working with oneof our financial advisory firms, I washaving some trouble getting the conceptof the Model Client Experience across tothe financial advisors and field managers.Finally, I took the managers out into theparking lot and said, “Let’s pretend youare a brand new prospect to the firm andthis is your first visit here. You arestanding in the parking lot. How are youfeeling about the firm so far? On a scaleof 1 to 10, how would you rate yourexperience?”
Their answers were very insightful: Thesignage was poor so it made it difficult tofind the firm. They recognized this wouldmake a prospect uncomfortable becausethey may not be sure they are at the rightlocation. A little stress makes the salesprocess more difficult. On the other hand,the parking was easy and close to theoffice. The outside of the building wasneat and clean. The parking lot score wasan 8; so far so good. What happenedafter we got into the reception was moredisturbing. The receptionist was AWOL.The space was dark, dingy and messy.There was no artwork or plants. Thechairs were uncomfortable and therewere no reading materials. They offeredtheir prospects water served in aStyrofoam cup.
The advisors and managers scored thispart of the experience a 4. I thought theywere being too generous! In my mind itwas a 2. They had just taken their scorefrom an 8 to a 2 in less than 50 feet! Thismade their entire sales process moredifficult. All the other prospect contactpoints would need to be 8s or above, to
have a good chance at solidifying arelationship with a new prospect, and tomake up for the bad initial impression.
We then went through a few other steps:what the entire office looked like as theprospect walked back to the financialadvisors office, meeting the other staffand then sitting in the advisor’s office.
Everyone said the same thing to me: “But Katherine, this is so much betterthan it use to be!” My response: “Thatmay be true, but does a new prospectknow that or even care?” They had notyet gotten used to looking at everythingthrough the secret decoder ring of theclient’s perspective. These FAs were stillthinking about the office from what suitedthe advisor.
My recommendations on the receptionarea: clean the place up! Change thepaint color from insane asylum white, tosomething rich and warm, like, camel oreven navy. Order some better furniture.Make sure the lighting is bright andcheery. Provide decent reading material.All of this would get the score to a solidmediocre, Lake Woebegone 5.
If you want to get up to a Starbucks 9 or10, then you should add these extratouches:• Go to Tuesday Morning or Home Depot
and get an oriental carpet for the floor.(Cost: about $250)
• Buy a small toaster oven andrefrigerator cookies. Make sure everyclient and prospect gets a fresh bakedcookie when they arrive. (Costs about$60.)
• Also offer cheese and fruit for those onthe South Beach Diet.
• Serve juice, bottled water and coffee incrystal glasses, or china cups. Theseare available at Mikasa for about $3per glass. Make sure you use a trayand nice napkins.
• Play soft music. Not elevator music,but soft jazz or classical.
• Teach the receptionist to say: “Youmust be Miss Jones, we have beenexpecting you.”
Note the expensive part of this processwas just getting to Lake Woebegone. Itwas the paint and furniture that cost themost money. Creating a Starbucksexperience was not expensive; it just tooksome planning, and making sure everyone in the office understands they are inStarbucks, not Lake Woebegone.I happened to be in a field office of one ofour b/d clients during a firm wide
conference call. To free up the advisors,one of the sales assistants was answeringthe phone. It was painful to watch himdeal with clients who called in with serviceissues. He was short tempered, rude andfar from helpful. You could tell he did notthink responding to service requests waspart of his job. Clearly this did not evencome up to Lake Woebegone. Forgetabout getting referrals from this client.They had gotten a level 2 experience andafter enough of them, they will be lookingfor another advisor.
Unfortunately, this situation could havebeen easily resolved with little to no cashoutlay. By bringing the assistant into themodel client experience discussions, hewould have known his job was to love upclients, and go beyond the serviceprovided by other firms. Like everyone inthe firm, he was responsible for makingevery contact a client has with the firm, aStarbucks experience.
Once you have looked at all the clienttouch points in your office through yoursecret decoder ring, start to think aboutyour ads, marketing materials, seminars,and telephone staff. These, too, willprobably need to be reworked to matchyour model client experience. Over timeyou should notice happier clients, easiersales, and a more referrals.
©Katherine Vessenes, 2006 Katherine Vessenes, JD, CFP®, RFC®
has the greatest job in the world. She helps advisors become multimilliondollar superstars. The Million DollarWorkshop is presented quarterly and there is a discount for IARFCmembers. For information on seminars, books or consulting: contact: VestmentAdvisors.com or phone: 952 401 1045, e-mail: [email protected]
continued from page 10 Compliance-Friendly Marketing
Page 12 The Register • August 2006
When the topic is money, few thingscommand more attention thanretirement planning. Despite all thetime we spend thinking about ourretirement income, most Americansare very poor at saving and planningfor retirement.
Most discussions of retirement planningbegin with an estimate of how muchincome we will need to survive. Many so-called experts would have us believe thatwe need 70% of our working income tolive on at retirement. I do not believe inplanning for a minimum “need”. I believein planning for “want”. Why limit yourselfto your perceived need rather thanrealizing your full potential? I believe that100% or more of your working incomemay be possible at retirement.
How to Determine Your “Want”
Instead of planning to meet your needsbased on some percentage of yourworking income, ask yourself what youwant from life. What life have youimagined? What is your dream?
Few people hesitate when asked abouttheir dream. For some the dream is anearly retirement with the time and goodhealth to enjoy family and friends. Othersimagine the opportunity to pursue theirpassions: art, music, travel. Some dreamof chasing that infuriating dimpled whiteball or landing the wily walleye.
Perhaps you dream of assisting yourchildren and grandchildren with theireducation or helping your son or daughterto start a business. It could be thatleaving a legacy in your community and
improving life for future generations isyour goal. Your retirement plan beginswith your dreams, because they are thetrue currency of your life.
Once you have determined what you wantin retirement, you have made a goodstart. You at least know where you wantyour retirement plan to take you. But,how do you determine the most efficientway to achieve your objectives? And, howdo you know how much is enough?
How Much is Enough?
In the face of this great unknown, efficientretirement planning requires you toconsider three phases of your financiallife: accumulation, distribution, and legacyor transfer of wealth. Nearly everyonefocuses on the first phase, accumulation,and ignores the others until they are at ornear retirement. In reality, a single-minded focus only on the accumulation ofassets is not much better than notplanning at all. It is a bit like jumping inyour car to start your vacation, yourmoney tucked in your pocket, but withoutany idea where you are going.
Accumulation concentrates on gatheringand growing assets. There are many waysto accumulate wealth: saving what youearn, being the beneficiary of a lifeinsurance policy, receiving an inheritance,investing in stocks, bonds, and real estatethat appreciate in value, or building abusiness and increasing its value -- just toname a few. During the accumulationphase your asset allocation should befocused on growth investments.
There are also many different types ofplans or strategies like 401(k), SEP, IRA,Roth IRA, Simple IRA, 403(b), 457 plans,etc. Determining which investments andplans that make sense for you requiresself examination. Here are some of themany questions you should ask yourself.What is my time horizon? What is my risktolerance? What is my desired rate ofreturn? What date should income start?How much income will I want?
Keys to Good Distribution Strategies
Distribution focuses on how you spendyour assets when the time comes that youno longer live from your wages. There areseveral keys to good distributionstrategies, including an estimated cost ofliving adjusted for inflation, the order thatyou tap into various assets, tax deferred
investments, tax advantaged investments,legal tax avoidance techniques, andcertain types of insurance products.
The key to efficient distribution is tomaximize your income while minimizingyour tax liability. You also want to makesure that your distributions do not causeyou to run out of money before you runout of breath. To be successful at thisrequires a different asset allocation onyour investments then what you had inthe accumulation phase. Duringdistribution you are less concerned withgrowth and more concerned with incomeand protection of your principle.
What Happens When You're Gone?
Legacy or transfer addresses what youultimately wish to do with your assetswhen you leave this world. I ampresuming you will not spend your lastdollar the day you take your last breath.What happens to what is left? How doyou get it where you want it to go? How do you make this transfer of wealthgo smoothly, quickly and with minimal tax impact?
There are investment tools and also legaldocuments that can be drafted to assurethat this phase of your planning goessmoothly. Many people choose not to gothrough the extra effort. Ultimately, it isup to you and how much effort you arewilling to put forth. Your decision againwill be impacted by your dreams andvisions and probably someone that youlove very much.
Bruce Helmer, RFC® is the author of thenew book Money and the People YouLove: A New Approach to FinancialPlanning Based on What Matters to youMost (Syren Book Company). He is thehost of the popular radio show called Your Money on WCCO radio servingMinneapolis-St. Paul. This article iswritten for the consumer, of course, rather than for advisors. We included itbecause it would be very effectivereproduced for your clients. You can go to www.IARFC.org to access the Adobe PDF file of this issue and print just the pages you wish. Bruce ispresident of Wealth Enhancement Group,a financial consulting firm. For moreinformation, go to www.brucehelmer.com
A New Way of Planning for Your Retirement
Bruce Helmer, RFC®
Susan Field, a British citizen living andworking in Hong Kong, was aninexperienced investor, so she turned to alocal advisor for professional assistance.She used the services of a firm calledBarber Asia to advise and assist her to setup a “conservative” investment portfolio.This was done initially with a Sterlingdominated conservative portfolio.However, a few months later, Barber Asiarecommended that she “gear up” herexisting portfolio with a Japanese Yen loan.
Unfortunately, in the months that followedthe Yen appreciated against the Sterling,and Ms. Field was required to provideadded security for the loan. Withoutfurther assets to provide such security Ms.Field was eventually forced to cash inother assets to pay the required sums dueunder the loan, and practically lost herentire investment.
Normally, that would be the endof the matter. She, like many
other investors receivingnegligent and inappropriate advice,would simply lose all her money.But Ms. Field was made of sternerstuff — she filed suit. A complaintwas entered against Barber Asia Ltd,
a private financial advisory firm, claimingshe lost a significant amount of moneyowing to investment advice she receivedfrom her financial advisor, Andrew Barber.
In 2003, Susan Field, she won her caseagainst Barber Asia. The judge found thatalthough Barber did not violateprofessional standards as written, he didviolate a professional's duty of care.
The Field vs. Barber Asia Ltd. decisionwas the first time in Hong Kong a financialadvisor was held liable for giving negligent
advice. The gravity of the situation rested on the fact that Field, a relativelyinexperienced investor, who desired a low-risk strategy, was advised to enter into a risky scheme unsuited to her statedobjectives. The High Court concluded that Barber should compensate Field forher loss.
The Court of First Instance. In alandmark 92-page judgment, Deputy High Court Judge Aarif Barma, SC,awarded Ms. Field damages for BarberAsia's negligence in the sum of£219,890.25 plus interest and costs. It isnow the case that in the modern era ofsophisticated and complex investmentschemes, the burden is upon investmentadvisors to ensure that productsintroduced by them heed to the realintention of the investor. A mere generalintroduction is no longer enough todischarge their duty of care.
Duty of Care for Investment Advisors.The court found that an investmentadvisor owes a duty of care in tort to theirclient, the investor. It confirmed thatwhere an investment advisor:
“assumes the responsibility of providingadvice to a plaintiff (Ms. Field), and knowsor ought to know that the Plaintiff is likelyto rely on that advice, a duty of care islikely to arise. Pertinent factors to takeinto account will also include the relativeskill and knowledge of the parties, thecontext in which the advice is given,whether the giver of the advice is doing socompletely gratuitously or is getting areward, whether in some direct or indirectform, and whether or not there are anyexpress disclaimers of responsibility(which would negate any assumption ofresponsibility by the defendant).”
“There can be no doubt that Barber Asia,as professional investment advisors, werein possession of special skills andknowledge which Ms. Field, a whollyinexperienced investor, did not have.”
“It seems to me … that Mr. Barber andBarber Asia considered themselves to befinancial advisors to Ms. Field. BarberAsia did fall short of the standard of careto be expected of them in a number ofsignificant respects.”
Appellate Review of the Field Case.Despite the findings of the Judge at firstinstance, Barber Asia proceeded toappeal the Judgment and the hearing of
the appeal has taken place. The HongKong Court of Appeal dismissed BarberAsia Limited’s appeal with costs, affirmingthe earlier Judgment where Barber Asiawas found to have been negligent.
The Hong Kong courts concluded andclarified a financial advisor's duty of careto investors. It was previously thoughtthat so long as financial advisorscomplied with the regulatory rules thatgovern them, they would not be liable forlosses an investor suffers in a fluctuatingmarket. This is no longer the case.
Observations of the Court. Barber Asiabreached its duty of care, as it had failedto warn Ms. Field of the particular risksinvolved in gearing, which were seen to becontrary to Ms. Field's “conservative”investment strategy. The obligation towarn of such risk is reasonably expectedfrom a prudent investment advisor. It isnot sufficient for the investment advisor to merely bring such risk to the attentionof the investor. This is so even whenBarber Asia had complied with all theregulatory rules and Ms. Field signed allthe application forms, explanatorydocument, declaration and risk disclosure statements. The Court noted“… it seems to me unlikely that a detailed explanation of the various risksinvolved was provided …”
After the hearing, Ms. Field, said “I amoverjoyed at this result. It has been a veryhard fight but I felt that it was the rightthing to do. I would have preferred not totake this matter to Court but Barber Asialeft me with no alternative. I was very
Courts Upholding Higher Standards
Peter E. Liu, OAM, RFC®
continued on page 14The Register • August 2006 Page 13
fortunate in finding Ian De Witt of TannerDe Witt, Solicitors, to represent me in thismatter. The firm has supported methroughout, in what has been a verytraumatic time and I cannot thank them enough.”
Solicitor Ian De Witt commented, “We areof course very pleased with the outcome,which we feel is the correct outcome. It isunfortunate that sometimes investmentadvisors do not take their duties seriouslyenough and that these matters have tocome before the Courts.”
Implications of the Field Case. This typeof media coverage encourages moreinvestors who have lost money to seek alegal remedy, both in Hong Kong andelsewhere, because the Field case hasachieved international notoriety. At worse,it makes our profession look bad.Prevention is better than a cure. We mustdo whatever we can to raise the bar of standards.
The Response of Advisors. Whatmessage does this ruling send to financialprofessionals in Hong Kong, elsewhere inAsia and the rest of the world? Does itindicate more supervision, detection, andenforcement at the regulatory level?Clearly, this case has far-reaching impacton the commercial relationship betweeninvestment advisors and investors. TheField case has even been covered by theHarvard Review, so it is not simply anissue for Hong Kong.
Ethics and Training. Since the standardof performance is clearly being elevated,advisors of all backgrounds are going tohave to respond — or they risk theirpersonal assets and also theirrelationship with the firms they represent.Better quality training is the answer, andinstitutions like the IARFC play animportant role in education and settingstandards which are acceptable.
It was previously thought that so long asfinancial advisors complied with theregulatory rules that govern them, theywould not be liable for losses an investorsuffers in a fluctuating market. This is notthe case, and will probably not be so in thefuture. Had this been an inappropriatelyinvested Unit Linked (variable) LifeInsurance policy or Annuity, the likelihoodmight well have been the same.
Peter E. Liu, OAM, MBA, Grad. Dip.Corporate & Institutional FundsManagement, Certified InvestmentManagement Analyst CIMA (Ret), F Fin,RFC®, JP. He has served as a foundingfather and National President of the IAFPand was the Chair responsible for theintroduction of tertiary standards, code ofethics and disciplinary body for financialplanning professionals in Australia. Hehas been involved in corporatemanagement and securities throughoutAsia, currently based in Hong Kong.Phone: 852 9026 1183 or e-mail:[email protected]
continued from page 13 Courts Upholding Higher Standards
Page 14 The Register • August 2006
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When the new bankruptcy law passed in2005, critics vigorously attacked thelegislation. Consumer advocates,bankruptcy attorneys and somelawmakers blasted the act as unfair andanti-consumer. But supporters of theBankruptcy Abuse Prevention andConsumer Protection Act, which went intoeffect in October, counter that the law'sdemands are reasonable and address amushrooming problem with bankruptcyfraud that was costing consumers billionsof dollars.
“This bill would not have gotten anywhereif it was as extreme as the critics aretrying to make it out to be,” says PeteLawson, director of congressional andpublic affairs at the U.S. Chamber ofCommerce in Washington, D.C. Othersargue that it is too early to evaluate thelaw's impact since it is less than a yearold. “Those who would have beenadversely affected by the law most likelyhave filed prior to the law going intoeffect,” commented Todd Zywicki, visitingprofessor of law at Georgetown UniversityLaw Center.
The cause for filings. Consumeradvocates argue that most bankruptciesare caused by medical problems,unemployment or divorce. Proponents ofthe new law acknowledge these factorsplay a role, but say they are greatlyoverstated. A national bankruptcydatabase identified no correlationbetween bankruptcy rates andunemployment rates, but it found a closecorrelation with a number of other factors.Among them were the percentage ofadults who were divorced, the percentageof the population not covered by healthinsurance, overall consumer debt levels,ages, nearness of gambling casinos,lawyer advertising, minimum autoinsurance coverage requirements by stateand growth of adjustable-rate consumerdebt.
The bankruptcy database comparesbankruptcy rates in local areas to otheravailable economic and social statisticsfrom the Census Bureau, the Bureau ofLabor Statistics and other sources. Youcan search for which economic and socialdata actually correlated with high or lowbankruptcy rates. Zywicki argues thatthere are other factors that play asignificant role: unemployment has beenlow; divorce rates have been falling andinterest rates are relatively low. “We'vehad 20 years of economic growth, yet
on Banking, Housing and Urban Affairs onMarch 25, 1999, a banker from New Yorksaid that a lawyer in his area advisedclients to pay their non-dischargeable debtwith credit card cash advances and thenfile Chapter 7. The credit card balances,which are unsecured debt, could then bedischarged. “The system had gotten to apoint where, some wealthy people wereusing it as a financial planning tool,” saysLaura Fisher, spokeswoman for theAmerican Bankers Association, whichrepresents financial institutions. TheAmerican Bankers Association estimatesthat 5 percent to 10 percent of bankruptcyfilers under the new system will have topay more of what they owe.
Tightening credit terms. Proponents saycosts resulting from the abuse ultimatelymean higher down payments, higherinterest rates and higher costs for goodsand services. Mallory Duncan, lobbyist forthe National Retail Federation inWashington, D.C., says a lot of retailersextend credit to customers. When acustomer files for Chapter 7 bankruptcythe retail cards get wiped out. “When acustomer wipes out the two or threehundred dollars, that isn't going to hurtthe local retailer. But if tens of thousandsor even if millions of people are doing it,
Bankruptcy Awareness
continued on page 16The Register • August 2006 Page 15
people are filing because ofeconomic distress. What seems tohave changed is the willingness forpeople to file. Bankruptcy laws havepreviously been so generous thatthey have provided people withgreater incentives to file.”
Secondly, the change in social normsand social stigma have reduced orremoved the degree of disapproval ofbankruptcy. This seems to be thelargest examples given the lack ofother economic variables. StuartFeldstein, of SMR Research says,“The database has shown that oncea place develops a very high filingrate, it typically stays high no matterwhat improvements occur in the localeconomy. Memphis is a primeexample. The only possibleexplanation was loss of stigmaattached to bankruptcy. That is, oncebankruptcy becomes very commonand everyone knows someone whohas filed, a bankruptcy filing nolonger seems very mysterious,embarrassing or shameful.”
Misuse of the law. Supporters ofthe law frequently cite fraud as thecatalyst for change and point to findingsby the Federal Bureau of Investigation,which estimated that 10 percent ofbankruptcies have involved fraud, with“hiding of assets” as the most commontype. Feldstein believes that percentageis an understatement based onbankruptcy petitions his researchers haveexamined. He says the researchers foundnumerous incidents where the person'sincome was actually much higher thanstated. “A man on one petition we readowed a single large debt for the purchaseof a hot tub,” says Feldstein. “He soughtto have this debt and others expunged,but he also claimed he no longer had thehot tub, so it could not be repossessedand sold. He claimed it had been stolen.We found that claim stretched credibility,since a typical hot tub contains about 400gallons of water, weighing about 3,200pounds, takes several hours to drain, andeven when drained requires at least sixmen to lift and move. You would need ateam of thieves, a large truck and a fullday time to commit this theft.”
Many advocates for the reformedbankruptcy law argue that consumers“gamed the system” too often. Intestimony from the American BankersAssociation before the Senate Committee
continued from page 15 Bankruptcy Awareness
that adds up,” she says. Those costs areultimately passed on to all customers.
Eviction. Jeanne Delgado, vice presidentof property management for the NationalMulti Housing Council in Washington, D.C.,says that the eviction of a resident forlawful reasons, such as failure to pay rent,illegal drug use or property destruction, isa time-consuming and expensive processwhen you consider court fees, lost rentand utility costs. She says prior to thebankruptcy reforms, the automatic-stayprovision in the law, which stops collectionefforts, created problems. “While theautomatic-stay provision applied to allcreditors, it imposes more hardship onapartment owners because while the stayis in effect, not only can the owner notseek back rent, but they must continue to,in a sense, grant credit in the form of freehousing, something credit card companiesor retailers are not required to do.”
Steve Bartlett, president and CEO of TheFinancial Services Roundtable, a tradeassociation of consumer credit andfinance companies, says abusivebankruptcy filings have negatively affectedresponsible consumers. “It has beenestimated that, before bankruptcy reform,every U.S. household paid, on average, ahidden $400 annual 'tax' for abusivebankruptcy filings.” That estimated “tax”has been cited by congressmen andlobbyists repeatedly in congressionalrecords. However, opponents of the lawhave referred to the “bankruptcy tax” as amyth and say there is no evidence tosupport the number.
Combating abuse. Financialorganizations and researchers have listedmany ways they believe the newbankruptcy law combats consumer fraud:
• A petitioner's lawyer must agree toreview all financial claims and mustsign off on the accuracy of the claims.
• Both lawyers and petitioners can bepenalized for fraud.
• Petitioners must file copies of theirrecent tax forms. This filing eliminatesfalsification of income and rids thebankruptcy system of criminals andother persons who don't file income taxreturns.
• The U.S. Trustee program, whichregulates bankruptcy laws, will contractwith a third party to conduct audits for atleast one out of every 250 bankruptcyfilings in each federal judicial district.
• Mandatory bankruptcy creditcounseling before filing providesdebtors with alternatives to bankruptcy.
• It's designed to deal with “bad-appledebtors' attorneys” and “bankruptcymills” that push people into bankruptcywithout telling consumers all theiroptions.
• The required counseling after a debtorfiles is intended to cut down on repeatfilers. In addition, the counselingprovision adds an additional paper trailfor fraud investigators.
• The means test measures whetherconsumers can pay off their debts. Thetest assumes that debtors can repaydebts if they earn more than themedian income in their state and havemore than $100 per month left aftertaking out basic living expenses andother important payments.
• Repeat filers are obstructed bylengthening the minimum timebetween bankruptcies. The minimumtime between sequential Chapter 7discharges has gone from six to eightyears. If they want to file for Chapter13, they will not receive a dischargewithin two years of a previous Chapter13 discharge and within four years ifthey were discharged from a Chapter 7,11 or 12 bankruptcy.
The ability of debtors to “load up” onluxury items before filing bankruptcy islimited. Consumer debts that surpass$500 for luxury goods or services incurredwithin 90 days of filing are non-dischargeable, which is more restrictivethan the previous limits of $1,075 andservices incurred within two months.
• The law revises the automatic-stayprovision to recognize that when anapartment owner has obtained adefault judgment, which is the finaldecision where the judge rules in favorof the apartment owner in an evictionproceeding, the resident can't file abankruptcy petition to further delay theeviction. Thus, the owner can proceedwith removing the resident.
Caps placed on homestead exemptions.Wealthy filers attempting to protectmillions of dollars from creditors bypurchasing pricey homes in a state withan unlimited homestead exemption nowwill face an additional hurdle. The newlaw states that debtors are bound by thehomestead exemption of their prior state
of residence until they have lived in thenew state for two years.
Child support and alimony paymentshave higher priority. In addition tostopping the abuse, Zywicki says the newlaw protects consumers, “It's got anumber of consumer-protectionprovisions, such as greater restrictions ofdebtors to reaffirm debts and penaltyprovisions for creditors that don't acceptgood-faith efforts for debtors to repayvoluntary payment plans.” Bartlettbelieves the new bankruptcy law forcesbetter decisions and earlier choices and isultimately about responsibility forcreditors, consumers and the legalsystem. “The legal system has theresponsibility to protect people in need,while at the same time offering vitalsafeguards for consumers,” he says. “Theindustry has the responsibility to provideeducational information to supportconsumers' financial education, and theconsumers have the responsibility tohonor their debts when they are able andto be aware of their options so thatbankruptcy is a last resort.”
Future changes. It is likely that Congress,the bankruptcy interests. and attorneyand major credit or groups will closelywatch the impact of the new laws for fiveyears. If the new legislation reducesbankruptcies without harshness, then youcan look for more tightening.
Application to your clients. Hopefully theclients of financial advisors will neverneed to consider bankruptcy — butstrange events might cause it to happen.However, some clients may have familymembers who are consideringbankruptcy. Or your clients may haveloaned money or sold a property on termsto someone about to declare bankruptcy.Therefore, we recommend you save thisarticle for future use with thoseapplications.
Page 16 The Register • August 2006
One of the world’s most successfuladvertising campaigns was built aroundthis message. You can employ the samepsychology and techniques in yourpractice — to elevate it to another level.
First, you’ll want to know how this admessage was used to change themarketing of bottled spirits, in particularKentucky Bourbon Whiskey.
In 1943 a young man returned frommilitary service intending to join thefamily’s T.W. Samuels distillery. Thefamily enterprise traced its roots back tothe earliest recipe for Kentucky Bourbonwhiskey, traditionally made from a mixtureof grains — primarily corn, with some rye, wheat, malt, barley and yeast topromote fermentation.
The manufacturing process, the samenow as it was then, requires storage incharred oak barrels for four or more years.The result depends on many factors — thegrains, the recipe, the sour mash whichincludes portions previously cooked, thelimestone naturally filtered water, thecharred oak barrels, the rise and fall oftemperatures during storage and theselection of the ideal time to decant the
product. There are no artificialingredients, whatsoever. The longer thewhiskey barrels are stored and rotated inricks, the more expensive it becomes.Every year there are heavy property taxesto be paid, and gradually some of thewhiskey evaporates. But the longer itages, the smoother the taste.
Historically distillers always compromised,making trade-offs of quality versus cost.Young Bill Samuels realized that manypersons were seeking the highest qualityand price was not a consideration. He setabout producing the finest bourbonwhiskey without any consideration ofprice. So he left the T.W. SamuelsDistillery and started developing a newrecipe, based on locally grown maize(corn) and malted barley coupled withwinter wheat, not the harsher rye.
Samuels bought and renovated a smalldistillery located on Star Hill Farm in thecentral Kentucky town of Loretto. Hisfamily and other Kentucky distillers mayhave worried about his sanity — or at leastabout his judgment, because purchasershad always been presumed to beconcerned about the price of a drink.
Of course, there were other products thathad been successful with an approachbased on quality, not price, such as RollsRoyce and Rolex. However, marketing thishighest price whiskey was presumed to beflying in the face of tradition — andtradition counts for a lot in the South.
To make his whiskey package unique, hiswife Marge designed a new roundedsquare bottle format that had never beenused. Then the top of the bottle wasdipped in hot red wax, similar to fineFrench cognac, as if to seal in the
superior flavors. The label bore hisunique mark, his suffix as thefourth in line with the T.W. Samuelsname, IV. The IV was embossed
with a circle, with an “S” and a star forStar Hill Farm — thus being his unique“Maker’s Mark.”
The name, the bottle, the red wax and themark were all very unique, as was thesuperb quality of the deep cherry-coloredwhiskey — and the higher price. Howcould this whiskey be sold against thetraditional brands of Jim Beam, J.W. Dant,Old Crow, Old Forester and Seagrams?The first bottle of Maker’s Mark wasdipped, sealed and introduced in 1958 —priced at $7 per bottle, well above the market.
Samuels and the family came up with theslogan that bragged about the price —flaunting the consumer with an assertionof quality!
The first billboard ads appeared in 1965.All they showed was the distinctivelyshaped bottle of whiskey with the red waxtop and the slogan, “It tastesexpensive…and is!” What was theimplication? A discriminating drinker andhost would buy Marker’s Mark, assuming,of course he or she could afford thehigher price. Prestige would be acquiredsimply by paying the highest price andserving the best. It was a way of saying “Ican afford it,” and also implying that theguest was highly valued.
Sales rocketed. The small distillery of StarHill Farm in Loretto could not makeenough to satisfy demand. They had toraise the price. In 1968 they ran theidentical ad in magazines. Competitorscaught on and produced new or modifiedbrands with improved quality and higherprice. So Maker’s Mark, to stay the mostexpensive, further raised their price.
Fifty years later the little distillery in a verysmall town keeps its high standards andhigh price — and sells all it can make.
Now, you might be askingyourself, “What has thisgot to do with financialservices?” The answer is,“A lot!” What’s more, Ican prove that to be true.Having entered financialservices in LouisvilleKentucky in 1963, I soondrove past the billboardspromoting Makers Mark…the distinctive bottle… the
It Tastes Expensive… And Is.
Ed Morrow, CLU, ChFC, CEP, CFP®, RFC®
The Register • August 2006 Page 17
continued on page 18
red wax, the IV maker’s seal and theslogan. And, yes, I enjoyed sips ofMaker’s Mark when I could afford it.
When I started to charge fees for financialplans in 1968, and was worried thatconsumers would not pay me for whatothers claimed to offer for free, I recalledthis slogan and I realized, FinancialPlanning is not price sensitive — it is amatter of quality and perception!
My plans had to lookgood. They had to
have distinctivefeatures. TheMaker’s Markbottle might have
cost a little bitmore than those of
other brands — butthat wasn’t the point — the
shape was different than standard roundbottles. It implied a higher quality. Thered wax didn’t seal in the flavors anybetter than any other bottle top — butlooked it like it might. The star “S” IV sealimplied that the maker was proud of hisproduct and that he was personally goingto offer me the best “sipping whiskey” inthe world.
So, I worked on making my financial plans look unique. We found high qualityvinyl binders and printed very attractivetabbed dividers. I used distinctive colorsof paper and printer ink. I placed a goldseal on the plans — my version of a“maker’s mark.”
In my initial presentations to prospectiveclients, I would always say, “FinancialPlanning isn’t price sensitive — it’s allabout quality. If we do a great job for you,the impact on your future will be many,many thousands of dollars — far abovethe fee we charge.”
We all know that the highest qualityproducts come with some type ofguarantee. Either “money back” refund or some guaranteed exchange. Such vendors, whether their product be appliances, clothing or cars, always command a superior price and they sell to the more discriminatingcustomers.
So I told my clients, “We guarantee 100%Plan Satisfaction.” Notice I did not say“guaranteed investment results” or“guaranteed return.” What weguaranteed was that they would be 100%satisfied with our financial plan — or wewould refund their planning fee.
Since this guarantee could be easilymisinterpreted later, we developed aGuarantee Certificate. When we got tothat portion of the initial presentation, wewould pull out the Guarantee Certificateand sign two copies with a flourish. Andwe’d have the client sign both copies —keeping one.
Naturally we worked very hard to produce accurate and attractive plans.Every plan clearly identified the client’sProblems (shortcomings) and theSolutions (recommendations) with anImplementation Checklist (action items).
If a plan wasn’t right we re-did it. And afew times we had to postpone the plandelivery interview because we hadn’tdone all the research or analysis orbecause we found errors and had torevise the plan.
But, in 35 years we never had to return a fee. We had each client sign the second half of the guarantee —a similar, one-page “Plan Satisfaction”agreement, which reduced our liability forthe plan itself, since the client accepted itin writing.
Furthermore, I have never heard of anyother financial planner who offers a PlanGuarantee ever being requested to makea refund of the fee.
But, what if a client did request the refundbecause they considered your plan to beinadequate in some respect? Well, first ofall — this isn’t a client. If someone isn’tvery pleased with your plan, they willnever buy products from you or place theirassets under management with you!Furthermore, if there are any doubts ontheir part, it would be better to refund thefee and quickly close the relationship.
Did everyone agree to pay the fee Iquoted? Of course not! There were avariety of reasons, and I’ll list them in theorder of likelihood:
• Some weren’t ready to reveal all oftheir facts and express their personalfears and dreams. This could havebeen due to a strong sense of privacy,or reluctance to expose debt levels.
• Some truly thought the fee was toohigh. A few of these people came back later, after visiting with otherfinancial advisors. One said, “Yourplan costs $4,000 and the brokeragefirm charges $275, but we want it done right!”
• A few weren’t ready — maybe they hadjob insecurity or were having somemarital or family discord, and they justweren’t prepared to express the truereason. They might use the “fee” asthe reason for not moving ahead, but itwas merely the stated excuse.
• A few were seeking “Something forNothing!” They were what carsalesmen call “tire kickers.” They liked to talk about planning servicesand personal finance and wanted “free advice” and wouldn’t ever pay for it. Nor would they have had any retention loyalty for productpurchases. Good riddance!
• Some prospects just don’t bond withthe financial advisor. It could be the“chemistry” just isn’t right. Or theymight have some prejudice about suchas the advisor’s age, education, sex,race, hair color or being from a smalltown sandwiched in between two large cities.
It doesn’t matter why a prospect objectsto the planning fee: the rejection justsaved the work and the disappointmentwhen they would fail to implement basedon our well-considered recommendations.I would guess that about 80-85% of thepersons to whom we presented, hired usto produce a plan. And 100% of themfollowed through on some or all of ourrecommendations.
For discriminating purchasers of fineKentucky Bourbon I recommend you tryMaker’s Mark — available all over theworld — at a very high price. Please don’tmix it with Coke, soda or fruit — just a fewcubes of ice and a splash of water — andsip it gently. As you think of yourprofessional practice — remember to bedistinctive, maintain the higheststandards, never compromise yourintegrity, charge the highest price —because the quality of your service,“Tastes expensive… and is.”
Ed is the Chairman and CEO of the IARFC.He specializes in enabling financialadvisors to increase their salesproduction and client service, by building their practices through effective client relationship management.For information on presentations andworkshops: 513 424 1656 ext. 11 e-mail: [email protected]
continued from page 17 It Tastes Expensive... And Is.
Page 18 The Register • August 2006
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In our office we have a motto“Innovate or die!” and use it asa means of always keepingtop-of-mind awareness thatthings are constantly changingand if we were ever to sit backand coast we’d be swallowedup in a very short time by ourcompetition so innovation is akey to our success. It appearsthat your Builder Suite has alsoembraced the same approachin your business model.”
Clint J. Struthers, RFC®, AAMS
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The Register • August 2006 Page 19
It’s been said that the fear of publicspeaking is the number one fear, followed by that of death and an IRSaudit! It’s for that reason that, last year, I was excited to launch my second book, A Guide to Breakthrough Presentations,with the intention of helping ease any fears you might have regarding public speaking.
In this article, I will share with you some ofthe guidelines from my book. Apply themto your next presentation and you willexperience the joy of getting in front of anaudience and speaking.
Creating an intriguing introduction
You may be asking yourself, “What dointroductions have to do with easing myfear of public speaking?”
Well, I can’t stress enough the importanceof an effective introduction, whether youare the one being introduced or the onedoing the introduction. The personmaking an introduction is essentially theopening act!
You may have had the experience as a speaker, when the individualintroducing you does not know youpersonally, and may have been introduced to you moments before they are to introduce you to the audience.You may also have been put in thisawkward position. The tendency in thiscase is for your introducer to read theresume as the introduction -- boring!!We’ve all sat through these types ofintroductions. Most of the time we tuneout, shuffle through our papers, engagethe person next to us in conversation, ormentally go through our To Do list. The
only thing we’re not doing is listening tothe introduction.
An introduction of this kind will leave you,as the speaker, with the difficult task ofhaving to re-engage a distractedaudience. This can start you off feelingmore nervous than you already were.
When making an introduction, there arethree important responsibilities:
I. To establish the credibility of thespeaker.
II. To introduce the speaker’s topic.
III. To begin building the relationshipbetween the speaker and theaudience.
When you are the speaker, you shouldtake four steps:
Find out who will be introducing you asfar in advance as possible.
Prepare an introduction for them thatincludes information that is relevant tothe audience.
Then, have a conversation with thatindividual, either on the phone or inperson, so they have a sense of you asa person. If you wan to be referred toas “Bill” rather than “William” or as“Mr. Smith” then be sure to clarify this in your conversation and your intro script.
You can even have your introducerprovide the audience with guidance onwhat you would like people to know orremember about you, like, “Usuallyaudiences find him or her to be funand energetic.”
Following these suggestions willaccomplish two things. First, it will givethe person introducing you a chance toget a feel for you as a person. Secondly,you’ll be able to craft an introduction thatis more engaging, begins to develop theconnection between you, as the speaker,and your audience. Most importantcreates anticipation and interest in thetopic you are going to discuss.
Your introduction is every bit as importantas your presentation in establishingrelationship with your audience.Remember that you have a small window of opportunity to engage them so
take the time to create an effective,intriguing introduction.
Teresa is the creator of The Power toConnect® workshop, author of the book, A Guide to Breakthrough Presentations,co-author of the book The Power toConnect® — Creating Communication thatgets Results and co-creator of the BravoPresentation Coaching® program. Shehas helped groom many successfulprofessionals to extend their speakingcapacity and has personally addressedmany associations, including the MDRTand CAIFA. You may learn more abouttheir services at: www.cvcomm.com, andyou can contact her at: 416 696 2020 orby e-mail: [email protected]
Intriguing Introductions
Teresa Easler
Page 20 The Register • August 2006
Get Involved: We welcome thesubmission of articles from IARFCpractitioners. This is a great way tocontribute to the profession.
Professional Articles: The Journalis seeking articles by practitionersthat may deal with the applicationof financial planning techniques,marketing and practice management.These are expected to be very highlevel papers or articles.
Publicity Opportunities: Naturally, weencourage published authors to adviseboth their clients and the media oftheir being published by sending apress release.
Call for Papers
Reviews, and practitioner insights on the assessment and measurement of financial risk
tolerance for a special issue
IARFC Quarterly Educational Publication
John Grable, Ph.D., Editor318 Justin Hall, FSHSKansas State UniversityManhattan, KS 66506Phone: 785 532 1486 E-mail: [email protected]
Veterans, Active Duty Service Membersand Consumers whose personalinformation was stolen have been offereda salve — credit monitoring — which is afeel good response, but provides a falsesense of security. Credit monitoring is toidentity theft, what bumper stickers areto politics, not very much.
Despite the hype, when it comes toidentity theft prevention measures,relying on credit monitoring is similar toplacing only one smoke detector in athree story home
This alert is for potential victims tocarefully review and understand thelimitations of credit monitoring. Creditmonitoring will not alert the consumer ifsomeone has obtained a driver’s license,birth certificate, Social Security card, orused their name during interactions withlaw enforcement, resulting in arrestwarrants or erroneous criminal records.
Many ID theft services companiesactually claim that their service“protects” or even “guarantees against”identity theft. This is a marketing claimproven wrong time and time again andalso one that is clearly disputed byprivacy experts and consumer advocates alike.
Credit Monitoring Services Limitations
Most credit monitoring services onlymonitor one bureau. Some servicesprovide an initial three-bureau report onthe first order, and then revert tomonitoring only one. Consumers shouldcarefully read the fine print beforesigning up. While major accounts suchas home and auto loans are typicallyreported to all three bureaus, non-majoraccount creditors often report to only onebureau. If the service only monitors onebureau, it will show only what is reportedto that bureau and may miss anythingand everything else.
Many creditors report to the bureaus onlyonce per month or quarter, and creditbureaus only report what is reported tothem. Expensive daily or weekly
monitoring may provide early notice ofinquiries, but many potential creditgrantors regularly make inquiries for pre-approved offers, and inquiries often arenot differentiated or explained. If anaccount is opened, it may still be sometime before it is reported. In casesinvolving in-store or utility accounts, theaccount may never be reported until afterit has been sent to collections.
With very rare exceptions, credit monitoring does not monitorspecialty-reporting companies, such asChoicePoint, or check verificationcompanies.
Credit monitoring will not alert theconsumer if someone has obtained adriver’s license, birth certificate, SocialSecurity card, or other such documents intheir name. It also will not alert theconsumer if someone has used theirname during interactions with lawenforcement, resulting in arrest warrantsor erroneous criminal records. Creditmonitoring will not report to the victim ina timely fashion, if at all, when an identitythief has taken a job using the victim'sname and Social Security number — insome States, this type of employmentfraud approaches one-third of all identitytheft cases, and causes significantfinancial cost, unexpected taxconsequences, and embarrassment tothe victim.
Conclusion: Credit monitoring may beuseful to alert the consumer that anaccount has been opened in his or hername, but afterwards the task ofdisputing the accounts and resolving thematter still falls squarely on theconsumer’s shoulders. In most cases,experts contend that consumers may be far better off ordering their reports themselves, and staggering their requests throughout the year.FACTA-mandated free reports areavailable in all fifty states, so this may be performed for free. If the consumer isa victim of fraud, or has been deniedcredit due to information on their creditreport, he or she can also obtain a copyof their report for free.
Other options available include “opting-out” of pre-screened credit offers, “FraudAlerts”, and credit “Freezes”.
Fraud alerts are statements that may beincluded in the consumer’s credit reportintended to alert potential credit issuersthat the consumer is or may be a victimof fraud. A fraud alert is temporary, 90days in length, it may be extended,however, at the consumer’s writtenrequest for up to seven years. Fraudalerts are sometimes completely ignored,but an alert can stop many instant creditapplications. The alert should include arequest for potential credit grantors tocontact the consumer directly at aspecified number to confirm thelegitimacy of the application beforegranting credit.
Where available, credit freezes are apowerful tool that essentially preventsthird parties from accessing theconsumer’s credit file, until he or sheinstructs the credit bureaus to unfreeze or“thaw” the report. This request can begeneral or only for specific companies. Tobe effective, the consumer should placea freeze on their file at each of the threebureaus. States permitting all consumersto request a credit file freeze areCalifornia, Colorado, Connecticut, Florida,Illinois, Kentucky, Louisiana, Maine,Minnesota, Nevada, new Hampshire, NewJersey, new York, Oklahoma, NorthCarolina, Utah, Vermont, and Wisconsin.States that permit only ID theft victims torequest freeze are Hawaii, Kansas, SouthDakota, Texas and Washington.
The author,Paul Richard,RFC® is theExecutiveDirector of theICFE, foundedby LorenDunton. Paul isalso the authorof the CertifiedCredit ReportReviewer and is a highly regarded identitytheft prevention specialist.
For Veteran and Active Duty Service Members Credit Monitoring is a Feel Good Answer, But a False Sense of Security
CONSUMER FOCUSPaul Richard, RFC®
Institute of Consumer Financial Education [email protected] 239 1401
www.ICFE.info
The Register • August 2006 Page 21
If you have not heard, the SEC, the NASDand some State insurance departmentsare after seminar promoters that targetseniors. Could your whole marketingapproach disappear? While theregulators cannot ban freedom of speech,they can make your disclosures soonerous that you will not be able to attractattendees. For example, the State ofCalifornia requests that insurance agentsdisclose on their invitations:
“[an]advertisement for an event whereinsurance products will be offered for salemay use the terms “seminar,” “class,”“informational meeting,” or substantiallyequivalent terms to characterize thepurpose of the public gathering or eventunless it adds the words “and insurancesales presentation” immediately followingthose terms…”
Here are tips on how to give a cleanpresentation so that the public is servedand regulators are satisfied:
1 If you are an NASD licensee, realizethat the NASD regulates your
behavior, not just products. So even if yougive a presentation about fixed annuities,your presentation must meet the NASDguidelines as fair and balanced andprovide adequate disclosure. You cannotsay “fixed annuities are guaranteed.” You must add “by the claims paying ability of the insurance company.” Youcannot say “You cannot lose money”because it is possible to lose money whensurrender charges are subtracted. Notethat the presentation materials providedyou by an insurance company do notnecessarily meet NASD guidelines sodon’t automatically use slides,presentation materials or seminar
invitations until you have had thesereviewed by your broker dealer.
2 If you use visual aids (e. PowerPoint),it is not sufficient to provide the
necessary disclosure as a hand-out. Thedisclosures that the NASD requires mustbe on the slides: annuities have surrendercharges and fees, they are illiquid (theNASD requires this even though it’s notaccurate), there is a penalty forwithdrawal prior to age 59 1/2, annuitiesare long term commitments. If you missany of these disclosures on your visuals,you risk regulatory problems for you andyour broker dealer. Do not even thinkabout giving a presentation that has notbeen reviewed by your broker dealer evenif securities are not mentioned.
3 Do not mention securities if you arenot an NASD licensee or registered
investment advisor. What you believemay be a harmless comment like “manyseniors want to get away from the volatilityof mutual funds and that’s why fixedannuities are a good choice” could beconstrued as the solicitation to transactsecurities without a license. Therefore, anunregistered person should omit mentionof stocks, bonds, mutual funds, variableannuities or any security.
4 Don’t be one sided. Always mentionthe pros and cons of every
opportunity (you’ll get more appointmentsthat way also as the public is notinterested in a one-sided sales person;they want a consultant). For example, ifyou speak about immediate annuities,then explain that this would be a goodchoice for someone who wants tomaximize their income during theirlifetime and not a good choice forsomeone who wants to leave themaximum amount to heirs. Also makeclear that there is nothing left at the endof the annuity term. If you try and hidewhat you perceive as a “negative” feature,you could lose your license.
5 Know the definition of a securitywhich includes “investment
contracts”: and is defined as: [1] a contract, transaction or schemewhereby a person invests money, [2] in a common enterprise, [3] and is led to expect profits [4] solely from the efforts of the promoter or a third party. The following items are investment contracts in most states and if you don’t have a securities license, youcannot offer them: promissory notes,
automatic teller machines, pay phonesand viatical settlements.
6 Regulators look for suitability. Areyou making a presentation and using
your seminar to make suitable commentsand recommendations? Bank of Americawas forced to refund investments invariable annuities to people age 78 andhigher. To my knowledge, no state has arule about age limits on products and youmight wonder why the regulators don’tjust make a rule so you don’t need toguess what is “suitable.” It’s a good ideato make the following comment at thebeginning of your presentation and alsosupply a hand-out:
“Nothing in this presentation is designed tobe a recommendation. We cannot makerecommendations because we don’t knowyour circumstances and any financialtransaction can be recommended only by aknowledgeable professional who knowsand understands your financial situation.”
Such a disclosure won’t get you off the hook if your presentation is still asales pitch.
7 Don’t give a product presentation.The best type of seminar is
conceptual — ideas for saving taxes orincreasing income. Its okay to mentionproduct categories e.g. fixed annuities, but don’t mention product names orcompany names. That crosses the lineinto a sales pitch for a specific item whichmay not be suitable for many members ofyour audience.
8 Don’t bait and switch. Don’t getinvolved with a living trust seminar
that’s really designed to get you in theback door to sell an annuity.Professionals use the front door.
Think like a regulator that makes andenforces rules to protect the public and isunder political pressure to do so. Get outof your mindset of what you believe to beright. Yes, you may think the regulatorsare sometimes off course but do whatcomplies and you’ll keep your license.
Larry Klein CPA/PFS, CFP®, CertifiedRetirement Financial Advisor™, ispresident of NF Communications, Inc.Over 20,000 financial advisors use NFCommunications NASD reviewed andcompliant seminar and marketingsystems. Details at: www.nfcom.com.
Will Federal Regulators Shut Your Seminar Down?
Larry Klein
Page 22 The Register • August 2006
Financial Planning Building2507 North Verity Parkway
P. O. Box 0506 Middletown, OH 45042-0506
Begin in Vancouver, British Columbia and cruisethe calm and scenic Inside Passage, stopping inKetchikan, Juneau, historic Skagway, and Alaska’swilderness port Icy Strait Point, Hubbard Glacierand on to Seward. View the majestic peaks andthousands of untouched wooded islands. Shortwildlife trips get you close to whales, moose,harbor seals, bald eagles and mountain goats.Watch bears fishing for salmon. You’ll beawestruck as you sail alongside the constantlycalving Hubbard Glacier. Enjoy a local salmonbake and embark at Seward for transfer toAnchorage and optional tours.
IARFC 2007 Alaska Cruise ConferenceVancouver to Alaska August 17-24, 2007
Get Your CE at Sea and Network with Leaders of the Profession
IARFC CruiseConference
T h e I n t e r n a t i o n a l A s s o c i a t i o n o fRe g i s t e r e d Fi n a n c i a l C o n s u l t a n t s Professional Continuing Education. The presenters and
the attendees will be among the most elite in thefinancial services profession: authors of many books,articles and popular speakers. You will spend sevenexciting days and evenings in the company of theworld’s leading professional advisors.
Optional Pre and Post Tours. You can extend your tripin the beautiful city of Vancouver, in Anchorage or takethe scenic train to Denali Park.
Airfare is not included in any of the quoted cruiseprices. Consider using your frequent flyer credits.Contact Talgood Travel for airfare options at: 877 651 9997.
Deposit of $500 per person to reserve your stateroom.Final payment is due June 20, 2007.
Cruise and IARFC Registration Refunds.Until April 1 — 25% penalty. April 1 - June 6 — penalty of 40%. June 7 - July 15 — 50% penalty. After August 8 non refundable. You can purchaseinsurance (through Talgood or another agent) to coverunforeseen medical circumstances that might requiretrip cancellation.
Port Charges and Government Fees. Presently $295.These charges are subject to change and beyond our,or Celebrity Cruise Line’s control or authority.
Identification Requirements. A Passport is nowrequired by Homeland Security regulations.
Vancouver, British Columbia to Seward, Alaska August 17–24, 2007 on theaward winning Summit Celebrity Ship. Appropriately named, Summit will leaveyou feeling as if you’ve reached the absolute pinnacle of premium cruising.Large in size, yet intimately elegant in ambience, Summit boasts all the servicesand amenities that have made Celebrity the preferred choice of avid cruisersaround the world. Come aboard and scale the heights of luxury on Summit.
This cruise features the most famous of Inside Passages in the world, virtuallyeverything you come to Alaska hoping to see, including rain forests, glaciers,fjords, American Eagles, bears and majestic white-capped peaks. All of whichcreate a setting that’s perfect for viewing whales and sea lions.
Vancouver, British Columbia Juneau, AlaskaThe Inside Passage Shagway, AlaskaKetchikan, Alaska Glacier BayIcy Strait Point, Alaska Seward, Alaska
Per Guest (based on double occupancy)
Balcony Oceanview Interior $ 930
$1,280 $1,630
$295 Port & Government Fees Airport Transfer (optional)
Seattle $70 Vancouver $30 orFees & Transfers are Per Person only
Balcony Concierge
Financial Planning Building 2507 North Verity Parkway P. O. Box 0506 Middletown, OH 45042-0506
Phone: 800 532 9060 Fax: 513 424 5752 E-mail: [email protected] www.IARFC.org Signature
Expiration Date
Method of Payment
Discover American Express MasterCard VisaCheck payable to the IARFC
Credit Card Number
Name Address
Companion
Phone
City, State, Zip
Country
E-mail Fax
Number of Adults in your party
$1,780
Subtotal: Less Deposit: Balance Due: Deposit $500 Per Person
I am interested in Cruise Insurance.
Cruise rates are in U.S. dollars, per guest, based on double occupancy. Government taxes, fees and air transportation are additional.
My signature indicates that I have read the cruise/conference policies and fully understand the charges involved, and if requested above, I amauthorizing the amount indicated to be charged to my credit card. I agree to the terms and conditions of the IARFC Cruise/Conference refund policy.
DeductibleCE at Sea
Ports of Call and Side Trip OpportunitiesInside Passage. One of the most famouslybeautiful water ways in all of the world. Iffeatures virtually everything you came toAlaska hoping to see, including rain forests,glaciers, fjords and white-capped peaks. Allof which create a setting that’s perfect forviewing whales and sea lions.
Juneau. Alaska’s capital city boastsMendenhall Glacier, a meandering river of compressed blue that is 1.5 miles wide and hundreds of feet thick. It’s fed by a 1,500-square-mile ice field locatedoutside Juneau.
Icy Strait Point. Fifty miles west of Juneau and at the mouth of Glacier Bay.Travelers have the unique opportunity to experience Tlingit culture, superiorwildlife viewing opportunities, and years ofAlaskan history.
Ketchikan. Is the ancestral home of theTlingit Tribe, and the departure point forseaplane excursions bound for the wild 2.2million acres of Misty Fjords NationalWilderness. Also visit the Saxman NativeTotem Village, featuring the world’s largestcollection of totem poles.
Skagway. With its saloons and dance-hallreview, has managed to preserve a strongconnection to its historic Gold Rush daysand the legends of Jack London.
Hubbard Glacier. The one glacier in theworld that does not move at a glacial pace. This — the largest tidewater glacier on the North American continent moves an average of 5.5 feet per hour. Keep a watchful eye as you sail through theYakutat Bay.
Pre-Cruise — bus or train east of Vancouver from thecowboy city of Calgary to Banff, Kamloops and Whistler.
Post Cruise — from Anchorage past Mt. McKinley, the highest point in theAmericas through the fir forests of Denali Park and perhaps the slow trainon to Fairbanks near the Artic Circle — the land of the midnight sun.
Financial professionals helping people do a better job of spending, saving, investing, insuring & planning
the
International Association of Registered Financial ConsultantsFinancial Planning Building - 2507 North Verity ParkwayP.O. Box 42506 - Middletown, Ohio 45042
phone800 532 9060
fax513 424 5752
webwww.IARFC.org
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