Volume 19 No 2 March-April 2018
2018 IARFC BILTMORE Conference National Financial Plan Competition
Image used with permission from The Biltmore Company, Asheville, NC
IN THIS ISSUE Are You Making An Impact? Competing Against Wall Street
Asheville, NC April 17 – 19, 2018
The 5 Words Top Producers Shouldn’t Use
IARFC and CFP® credits will be available
A B C Ain’t For Me
TAKE THE MRFC EXAM Join an elite group of financial consultants integrity • education • experience Contact mrfc@IARFC.org or 800.532.9060
How to become an
MRFC
Join an elite group of financial professionals who have met stringent requirements set forth by MRFC Board: • F our years of professional experience as a full-time practitioner in the field of financial planning or financial services. • An educational requirement which can be satisfied in various ways. • Evidence of having met local licensing requirements for your type of planning services. • D ocumentation of a sound record of business integrity with no suspension or revocation of any professional licenses or designations. • Completion of the application in its entirety with application fee. • E vidence of competency in the form of one of the following: Essay, Risk Analysis or Comprehensive Plan. • Submission of examination fees. • Pass the MRFC examination with a score of 67% or better.
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
Founded in 1984, the IARFC’s mission is to serve, educate and train financial practitioners to help their clients wisely “spend, save, invest, insure and plan for the future to achieve financial independence and peace of mind.” www.IARFC.org
DOMESTIC BOARD OF DIRECTORS Chairman and CEO, H. Stephen Bailey, LUTCF, CEBA, MRFC
Director, Michael Jay Markey, Jr., MRFC Director, James B. Moss, CEP®, RFC®
Vice Chairman, Nicholas A. Royer, RFC®
Director, Rick B. Stanzione, RFC®
President, Peter J. D’Arruda, MRFC
Director, Mayo M. Woodward, CRPC®, RFC®
Secretary, Michelle Blair, RFC
®
Editor-in-Chief Wendy M. Kennedy editor@iarfc.org
Director, J. Christopher Dixon, RFC®
INTERNATIONAL LEADERS Asia Chair, Jeffrey Chiew, DBA, CLU, ChFC, CFP®, RFC®
Hong Kong and Macao, Chair, Teresa So, Ph.D., MFP, RFP, FChFP, RFC®
Greater China Chair (China, Hong Kong, Macau & Taiwan), Liang Tien Lung, RFC®
India Deputy Chair, Vijay S. Wadagbalkar, RFC®
Australia and New Zealand Chair, George Flack, CFP®, FIPA, AFAIM, RFC® Bermuda Chair, Antony Francis, RFC
Indonesia Chair, Aidil Akbar Madjid, MBA, RFC® Malaysia Chair, Ng Jyi Vei, ChFC, CFP®, RFC®
®
China Chair, Kai Tu Yuan
Philippines Chair, Ralph Liew, RFC® Taiwan Chair, Kai Tu Yuan, RFC®
Hong Kong and Macau Honorary Chair, Samuel W. K. Yung, MH, CFP®, MFP, FChFP, RFC®
Trinidad Chair, Inshan Meahjohn, RFC®
MRFC CERTIFICATION BOARD Chairman, Barry L. Dayley, CFP®, MRFC
Director, Julie Friend
Secretary, Walt Woerheide, Ph.D., ChFC, CFP®, MRFC
Director, Justin Martin, RFC®
Director, Louise Fallica, RFC®
WEBSITES
IARFC US OFFICE ASSOCIATE TEAM
United States — www.iarfc.org
COO, Charlotte Isbell
China — www.iarfc.cn
Editorial Coordinator, Wendy M. Kennedy
Hong Kong — www.iarfc-hk.org
Membership Services, Vicki Caplinger
India — www.iarfcindia.org Indonesia — www.iarfcindonesia.com Philippines — www.iarfcphilippines.org Taiwan — www.iarfc.org.tw
Membership Services, Judi Nelson Public Relations, Susan M. Cappa Information Technology, Randy Kriner
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
The Register | March-April 2018
www.IARFC.org/Register 1046 Summit Drive Middletown, OH 45042-0506 800.532.9060
Editor Susan M. Cappa susan@iarfc.org Editorial Advisory Committee Peter J. D’Arruda, MRFC Michelle Blair, RFC® The Register is published by the International Association of Registered Financial Consultants ©2018, It includes articles and advice on technical subjects, economic events, regulatory actions and practice management. The facts and opinions in the IARFC’s Register articles represent their author’s views and are not endorsed by the publisher. The IARFC makes no claim as to accuracy and does not guarantee or endorse any product or service that may be advertised or featured. Articles, comments and letters are welcomed by email to: Wendy M. Kennedy editor@iarfc.org Periodicals Postage Paid at Mansfield, Ohio. POSTMASTER: Send address changes to: P.O. Box 42506, Middletown, Ohio 45042-0506 SSN 1556-4045
Advertise The Register reaches 4,000 financial professionals every issue. Register advertising is an easy and cost-effective way to promote your company’s products and services to this dedicated audience. To advertise contact: 309.483.6467 advertise@iarfc.org www.iarfc.org Page 1
In This ISSUE
Volume 19 No. 2
Cover Story
Columns
Register Cover: IARFC Biltmore
Chairman’s Desk
8 Why Biltmore? Why Now?
5 Making News Now – Influencing the Future By H. Stephen Bailey
MRFC Certification Board
Features
6 Election Notice
Are You Making An Impact? 16 By Cliff Walsh
Competing Against Wall Street 18 By Dale Ledbetter
Reverse Mortgage Update 20 By Wade Pfau
The 5 Words Top Producers Shouldn’t Use
Marketing Unplugged 14 Longevity – We Are Living Longer, But Can We Afford It? By Bryce Sanders
International News 24 Event and Educational Program Highlights
Consumer Focus
22 By Michael J. Markey., Jr.
28 Watch Out For Inflation By Peter J. D’Arruda
A B C Ain’t For Me
IARFC – Viewpoint
27 By Evan Cole
Variable Annuities Have 3 Key Ingredients (Not Just 2) 30 By Christopher P. Hill
From Scratch to Millennial Millionaire 32 By Bryan M. Kuderna
34 We Are Already There By Rick B. Stanzione
Departments 1 IARFC Domestic and International Directors
3 New IARFC Members and Designees
IARFC Blog: http://iarfc.org/iarfc-blog Contact susan@IARFC.org for assistance with IARFC Blog Join the IARFC on LinkedIn Contact editor@IARFC.org for assistance with IARFC LinkedIn
3 Events Calendar 4 From the Editor
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
Follow us at Facebook.com Contact editor@IARFC.org for assistance with IARFC Facebook Page 2
The Register | March-April 2018
Biltmore Conference
N e w M R F C s, R F C s, R FA , and General Members Domestic MRFC Loran S. Coffman, MRFC, MI Barry L Dayley, MRFC, FL Lisa D. Ford, MRFC, TX Roger S. Green, MRFC, GA Nancy E. Greene, MRFC, NJ Michael R. Henry MRFC OH James Kotagides, MRFC, OH Pamela K. Mah, MRFC, HI Scott W. Ringland, MRFC, NH Steven R. Sanson, MRFC, PA
Used with permission from The Biltmore Company, Asheville, North Carolina
Events Calendar 2018 March RFC® Conferment Ceremony March 16, 2018 Beijing, PRC 4th Greater China Conference March 18-20, 2018 Sanya, Hainan China April
Domestic RFC®, RFA®, General Members George N. Acheampong, RFC®, NC Oakley J. Allen, RFC®, KS Kenneth R. Behm, RFC®, WA Stefan A. Chrzanowskí, RFC®, FL Keneny N. Conwell, RFC®, GA Thaddeus J. Derendal, RFC®, SC Matthew J. Dixon, RFC®, SC David Brian Dooley, RFC®, MI Louis C. Ford, RFA®, TX William L. Gaines, RFC®, MD James A. Hopper, RFC®, IN Cathy Hu, RFC®, CA Noah B. Kelsch, RFC®, UT Jeffery W. Kesting, RFC®, TX Jarrett D. Lang, RFC®, OH Gavin Merwin, RFC®, GA
Board of Directors Annual Meeting
IARFC Biltmore Conference & National Financial Plan Competition April 17–19, 2018 Biltmore Estate, Asheville, NC June Board of Directors Phone Conference June 12, 2018
Members Who Recommended Members Scott M. Dougan, RFC® Lisa Dionne Ford, RFC® Chris Dixon, RFC® David Hardin, RFC® Gavin Merwin, RFC® James B. Moss, RFC® Jeremy Nason, RFC® Frank A. Snyder, RFC® James M. Taegel, RFC®
Member Referrer Recognition
Gavin Merwin, RFC®
April 17, 2018 Biltmore Estate, Asheville, NC
Terry A. Moore, RFC®, GA Paul Partridge, RFC®, NJ David Joseph Schall, RFC®, MI Steven G. Schramm RFC®, GA Joseph A. Siragusa, RFC®, NJ Rebecca T. Sizelove, RFA®, TX Ronald L. Stephenson, RFC®, IN Mark C. Trawick, RFC®, GA Henry J. Wieniewitz, RFC®, TN
In Memoriam In reverence, we would like to remember our passing member(s): Michael D. Shea, RFC®, Mission Visjo, CA Joseph E. Schnetzka, RFC®, Dover, PA Terri L. Gilmoure, RFC®, Morris, IL
Journal of Personal Finance
September Board of Directors Phone Conference September 18, 2018 December
Access the full online version by visiting journalofpersonalfinance.com or by joining the IARFC. Hard and Adobe PDF copies are available to Members and Non-Members: Order today. http://store.iarfc.org/publications.aspx
Board of Directors Phone Conference December 11, 2018
The Register | March-April 2018
Page 3
From the EDITOR
Advertise in the
As we go to print in late February, the IARFC Biltmore Conference registration will begin to come to a close. However, there is still time for IARFC members and non-members to take advantage of this event. Writer and Co-Editor Susan Cappa does an excellent job at showcasing the Biltmore and balancing the attention paid to the venue, awards banquet, educational programs, and inspiring events like the National Financial Plan Competition. If you are considering to register, read Susan’s cover story and contact us today. In the past at IARFC events, I’ve enjoyed meeting not only consultants, but other financial professionals and the Plan Competition students. These financial pros are of all ages, and the networking and opinions shared give the IARFC members the skills to succeed. I look forward to shaking your hand at the Biltmore in Asheville, April 17-19, 2018.
Wendy M. Kennedy, Editor-in-Chief
Advertise in the Register, published by the IARFC since 1999 and circulated in print and electronically around the world.
Advertising Representative Bill Spilman, President Innovative Media Solutions 320 W. Chestnut St., P.O. Box 399 Oneida, IL 61467 P: 309.483.6467 F: 309.483.2371 advertise@iarfc.org
Reprints
Our custom reprints produce highly attractive color or black & white copies of articles previously published in the Register and Journal magazines or on the IARFC website. Reprint cost is determined by the number of pages, quantity ordered, color usage, and photography used in the article. All reprints will include a Register or Journal masthead (unless a cover is included in the order). Reprints can be customized to include your company logo and/or disclosure. A watermarked PDF proof will be emailed to the specified contact person for final approval. Once approved, the watermark will be removed, and the order will be sent to the IARFC printer. The printing process takes approximately 7-10 business days to complete. Our standard shipping is UPS Ground. Rush orders are available for an additional charge. Invoices are sent immediately after the quantity and size of the order reprint order is decided. For more information or a price quote contact: Wendy M. Kennedy, Editorial Coordinator at 513.261.6047 or editor@iarfc.org
Page 4
The Register | March-April 2018
From the
Chairman’s Desk… Making News Now – Influencing the Future “This is a place and [Vanderbilt] is a man that we must do our best for. It is far and away, the most distinguished private place, not only for America but of the world, forming at this period. It will be critical and reviewed and referred to for its precedents and for its experience, years ahead, centuries ahead”… Biltmore Landscape Architect – Frederick Law Olmsted. Your Estate Invitation… According to Forbes…Asheville, NC is on its list of the 15 Coolest Places to Go in 2018, a distinction it shares with Milan, Egypt and Cambodia among others. The list highlights Asheville’s “gorgeous scenery”, its historic mansion such as “Biltmore Estate” and its “remarkable arts scene.” * If that is not an inducement to come to the IARFC 2018 Biltmore Conference, I don’t know what would convince you — maybe our lineup of industry speakers including international participants? Judging the National Financial Plan Competition? Continuing Education and Ethics Program Opportunities? A celebrated Keynote Speaker? A venue known for its opulence, beauty and natural elegance? Enjoy the Biltmore in its Springtime Glory. Make your reservation and be part of the experience. Awards on Tap On an International Biltmore note, we have two esteemed leaders traveling from Malaysia/China to address our audience: Dr. Jeffrey Chiew, RFC® — IARFC Asia Chair and Kai Tu Yuan — CEO/IARFC China Development Team — both recipients of IARFC International Ambassador Awards. This recognition goes to Association supporters who have continually pushed the IARFC to the forefront in their respective countries. Our US Ambassador Awards this year go to present and former Board Members: Michelle Blair, RFC®, Dr. Jon Rogers, MRFC and Isabel Cooper, RFC®. Congratulations to our 2018 Dunton Award Winner, Dr. William Gustafson – a visionary, leader and mentor who has served many roles during his 30+ years in the development of personal financial planning degree programs across the United States. Dr. Gustafson has taught over 25 different courses during his long university career and The Register | March-April 2018
has educated thousands of students in both personal financial planning majors’ courses and personal finance courses designed to enhance financial literacy.
classroom setting or online settings? What about setting up an institute for our Association? The educational world is changing and we need to adapt and plan.
The recipient of this years Founder’s Award is current Board Director, Jim Moss. This award particularly hits home because of Jim’s commitment to the Association. He has enriched the IARFC through sharing his vast experience and by his dedication to improving our mission and goals.
Springtime in Asheville Springtime brings new life to the mountains and to me personally. I remain positive, inspired and hopeful for the future of the IARFC and look forward to problem solving the challenges we face. I wish I were 40 – so I could see what the end result will be. Let’s start by convening together at the Biltmore.
Our Member’s Award speaks to those who have referred the most consultants who then became members: First Place – Barry L. Dayley, MRFC of Money Concepts International; Second Place – Patrick Masterson, Sr. RFC® of Money Matters; Third Place (tie) – Christopher J. Dixon, RFC® of Black Harbor Wealth Management and Chris Dantin, RFC® of Dantin Financial. Members referring others is the best way I know to increase the membership numbers. Management Team Changes The Board of Directors voted to title me with CEO and Charlotte Isbell of the IARFC Middletown team as the COO. Still, our main focus is our members. Anytime you take the position of Chairman, CEO or COO you are subservient to the membership and committed to doing your very best. I greatly appreciate Charlotte’s tenacity in leading the IARFC team in Middletown, OH. Education Committee In development is our Education Committee facing a daunting agenda. There are needs to approve broker/dealer education courses. There are trainings of other planning courses to be reviewed. They will be tasked to investigate alternatives to the traditional college degree (which is one of the options to the education requirement) and answer the following questions: What kind of training can our association support? How can it be delivered – through traditional
H. Stephen Bailey, CEBA, LUTCF, MRFC H. Stephen Bailey, “Steve” Bailey, CEBA, LUTCF, MRFC started HB Financial almost 30 years ago after already having a life insurance career. Steve is an elected member of the IARFC Board. He is also the 2010 recipient of the prestigious Loren Dunton Memorial Award. When not working with his clients you will find Steve on a golf course, spending time with his grandson or traveling with his wife, Bobbi. Contact: 704.563.6844 chairman@iarfc.org www.iarfc.org *Exert from the citizen times: http://www.citizen-times.com/ story/news/local/2017/12/27/forbes-asheville-among-15coolest-places-go-2018/983826001/ Page 5
Are you interested in serving on the MRFC Certification Board
This is an exciting opportunity for people who are interested in helping the Association with the Master Registered Financial Consultant (MRFC). The MRFC Certification Board has been responsible for creating the policies which will govern the MRFC designation. To put forth your own name or nominate someone for the MRFC Certification Board, please contact the elections committee staff liaison: Susan Cappa susan@iarfc.org 513.424.1589
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
Page 6
The MRFC Certification Board needs to fill two positions on their Board of Directors. One Board member Louise Fallica is up for re-election and another Board member Walt Woerheide is retiring. The positions are for a three year term, beginning July 1, 2018. IARFC members who hold the RFC® or MRFC designation may nominate themselves or a fellow candidate. To serve on the MRFC Certification Board, the candidate: • MUST Hold the MRFC designation (once the accreditation has been approved. Until then, they must hold the RFC® designation). • May not be a current Board Member of the IARFC. • May not provide service to IARFC prospects or Members as an educator of, trainer of or writer of materials related to designation requirements. • May not serve on the IARFC Education Committee. Nominations open March 1, 2018 and will close March 31, 2018. Biographies and photos of nominees will be compiled in early April. A ballot will be presented by email to the MRFC Membership for a vote. Elections will run May 1–15, 2018. Nominees must send in: • Professional photo • Agree to intent to serve (available to meet monthly by phone and to attend any special meetings as may be needed) • Statement of how nominee will promote the MRFC • CV or Bio Once the results have been tabulated, the new MRFC Certification Board members will be notified; with the rest of the membership of the IARFC being notified in July. The Register | March-April 2018
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
Membership Building
Enhance Your Designation The value of your own IARFC designation continues to grow by increasing members of highly qualified consultants using and displaying the MRFC, RFC®, and RFC®. The IARFC recognizes members who have brought in the most new members with our Membership Program Award, presented annually in appreciation to top IARFC members who have recruited new members.
Share the Opportunity The IARFC is looking to enrich the careers of your professional peers with the same membership benefits you enjoy. By referring potential IARFC members, you offer them an opportunity to tap into the premier network of consultants who share, strategies to help grow their business and techniques for better practice management.
Recruiting a Member is Easy! Help increase your network of the Registered Financial Consultants. Enter the names, addresses and emails of your most qualified colleagues in the fields below and return the form by fax or email to the IARFC or call: 800.532.9060. This program is not available in conjunction with any other referral campaign and applies to US members only, (program subject to change). Please print or type the information below. __________________________________________________________________________________________ First Name Middle Name Last Name Prefix:
Mr.
Ms.
______________________________________ Referred by:
Mrs.
__________________________________________________________________________________________ Address
______________________________________ Phone
__________________________________________________________________________________________ City State Zip Code __________________________________________________________________________________________ Phone Email
__________________________________________________________________________________________ First Name Middle Name Last Name Prefix:
Mr.
Ms.
Mrs.
__________________________________________________________________________________________ Address __________________________________________________________________________________________ City State Zip Code __________________________________________________________________________________________ Phone Email
The Register | March-April 2018
______________________________________ Email
International Association of Registered Financial Consultants — IARFC Attn: Membership Services P.O. Box 506 Middletown, OH 45042 E: info@IARFC.org P: 800.532.9060 W: IARFC.org
Fax to: 513.325.9479 Page 7
Why Biltmore? Why Now? “Gradually and silently the charm comes over us; we know not exactly where or how”… Biltmore Landscape Architect – Frederick Law Olmsted.
Timing… The IARFC decided to emulate the charm and beauty of its traditional cruises and focus towards exploring an old world elegance within the continental U.S. The time was right to make this switch and set up a conference that was accessible and feasible to more members and guests. The standards are just as high, the scenery just as breathtaking with facilities more adaptable to a bigger group. Our last conference was over 10 years ago. With the change in leadership, the increased participation of the Board of Directors and the dedication of the IARFC Team, we offer the 2018 IARFC Biltmore Conference members and guests. Professional Networking Invigorate your mindset and stimulate your overall financial practice ways of doing business by networking with other Page 8
professionals. The caliber of speakers, exhibitors and guests for the Biltmore Conference are incredible opportunities to learn. Through exhibitor time, welcoming receptions and conference breaks, you can connect with our diverse group of professionals and return to your own setting with new ideas and contacts. International Presence We are an international organization. Chairman and CEO H. Stephen Bailey, MRFC has been traveling to the international chapters, giving presentations and observing how they conduct their operations. We have the distinct pleasure of having at least two presenters at the Conference from the Greater Asia and China chapters. International chapters are always interested in learning how we operate in the US and we are discovering their strengths. To the Biltmore, the IARFC welcomes Dr. Jeffrey
Chiew, RFC® and Kai Tu Yuan as visiting ambassadors from overseas. Continuing Education Everyone is required to complete CE. Because of it being an attended IARFC conference venue, two IARFC CE units will be issued per 50 minutes of presentation time. The subject matter is relevant and instructive delivered by industry professionals. Great care was taken when choosing the subject matter and making sure it is significant to our conference attendees. National Financial Plan Competition It is a privilege to watch these college students in action. From past experience, we know the judging of the competition is fun and entertaining with a seriousness of purpose. You walk away overwhelmed at the team presentations and with an outlook The Register | March-April 2018
of professional pride. These students are competent, talented and well coached. Your participation and sponsorship gives back to the Association and supports the next generations of financial consultants. Awards Recognition comes in the form of the Dunton, Ambassador, Founder’s and Members awards. Our highest award, the Loren Dunton Memorial Award will be presented to Dr. A. William “Bill” Gustafson this year by Ric Edelman, RFC®, of Edelman Financial, our 2017 recipient. These recognitions of individuals who truly support the industry and the IARFC is the highlight of the banquet. At this time, the winner of the National Financial Plan Competition will be announced.
building and the landscape. Ahead of its time, the Biltmore has modern conveniences at the request of George Vanderbilt – making it even more worthy of scrutiny as mechanical and structural processes are on display. Spring Beauty of Mountains Lastly, wherever you are – either in a conference presentation, having lunch, attending a welcoming party, you are enveloped in the Biltmore ambiance and
the beauty of the North Carolina Appalachian Mountains. The views from the house verandas, the scenic approaches so purposefully designed by Frederick Law Olmstead take you back in time and acclimate you to the beauty and inspiration that is Biltmore. Contact: 800.532.9060 info@iarfc.org www.iarfc.org/events/biltmore-2018
Ethics Program Everyone needs to include ethics in their continuing education requirements. The conference has a program scheduled – taught by Barry Dayley, MRFC of Money Concepts. This will be a two hour session and includes a modest fee for those who wish to apply it to CFP® ethics requirement. Venue/Touring/Vacation The conference is nestled within the Biltmore Estate. There is much to see and experience. Included in your conference fee is a length-of-stay pass. This pass is good from the moment you check into your hotel or inn to when you check out – no daily fees to visit the attractions. If this venue is not on your Bucket List – it should be. Stay a few extra days and treat it as vacation. The estate has many activities and natural areas to explore. Of course, the crowning beauty is the house itself. Surrounded by mountains, the touring of the structure and its contents is a treat — appealing to your sense of opulence and excess. Historical Worth Beyond the bricks and mortar lay the story of the Vanderbilt family and their history of amassing the fortune that is the foundation of the Biltmore Estate. When you add that to the chronological timeline of building the house, the gardens, the estate outbuildings, you have a story that captures the imagination and fascinates even the casual visitor. The construction did not just affect the Vanderbilt family, but added a local historical lore of North Carolina families and tradesman. Technological Advances In addition to the bricks, mortar and history, the Biltmore is an engineering marvel. Innovative advances of the time were incorporated into the construction of the Images used with permission from The Biltmore Company, Asheville, NC
The Register | March-April 2018
Page 9
IARFC
Keynote Speaker Ric Edelman
INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
2018 IARFC BILTMORE Conference
RFC® Edelman Financial Services The Truth About Your Future IARFC CE credit
National Financial Plan Competition Asheville, NC April 17 – 19, 2018
Join us at the Biltmore
Featured Speakers Barry L. Dayley
CFP®, MRFC Money Concepts
Ethics Program for Financial Planners
Dr. Jeffrey Chiew
Kai Tu Yuan
RFC® IARFC Asia Chair
CEO/IARFC China Development Team
Financial Technology (Fintech) in Financial Planning
Discussion of IARFC China Development IARFC CE credit
IARFC/CFP CE credit
IARFC CE credit
Harlan Accola
Max Bolka
Tom Dickson
RFC® Fairway Independent Mortgage Corporation
Comprehensive Business Consulting
Reverse Mortgage Funding LLC.
A Reverse Mortgage Cinderella Story
Comprehensive Legacy Planning
Reverse Mortgage Solutions for Today’s Retirement Risks
IARFC CE credit
IARFC/CFP, RICP, CLU and ChFC CE credit
Julie Friend
Dale Ledbetter
eFriend
RFC® 1st Global Trust
IARFC/CFP CE credit
Monroe Diefendorf, Jr.
CFP®, RFC® 3 Dimensional Wealth Advisory The Super (“Values Based”) ILIT: Creating a beneficiary designation on steroids.
Why Local Businesses Need to Give a Damn About Reputation Management
Competing Against Wall Street IARFC/CFP CE credit
IARFC CE credit
IARFC CE credit
Rick B. Stanzione Conference presentations and /or speakers are subject to change. Image used with permission from The Biltmore Company, Asheville, NC
RFC® R & R Group, Inc. The List Book a Financial Advisors Best Friend IARFC CE credit
Biltmore – Guest Specialty Tours Package Includes All Three Tours
Legacy of the Land Go back in time with a narrated tour on a Biltmore motorcoach. Learn about the history of the land, structures, and former residents from a guide while visiting areas of the estate not usually open to guests. 90 minutes
Wednesday, April 18, 10:00am
Red Wine & Chocolate Program Hosted by the winery staff. Discover why chocolate and red wine is a match made in heaven. Including locally produced artisan chocolates from French Broad Chocolate and Chocolate Gems, the program centers on production of wine at Biltmore and chocolate where you will taste and experience the tactile attributes of a raw cacao bean and the process of farming origin-specific cacao and its influence on the finished product. You will sample dark and milk chocolates accompanied by four award-winning Biltmore red wines to determine which is more pleasing to the palate. A must-do for any serious chocolate or wine lover. 30 – 45 minutes. Guests must be 21 years or older to attend.
Wednesday, April 18, 1:00pm
Guided Garden Walk Enjoy a meandering walk through the estate’s Italian Shrub and Walled Gardens with a Biltmore host offering insights into the landscaping history behind the estate’s world renowned gardens, grounds and Conservatory. You will discover the choices made by George Vanderbilt and acclaimed landscape architect Frederick Law Olmstead and see how their designs have endured for more than a century. 60 minutes, ¼ – ½ mile
Thursday, April 19, 10:00am
Omni Grove Golf Outing Golf Outing sold separately
Golf Outing – Legendary Golf at the Omni Grove Park Inn Swing into a round of golf on the legendary 18-hole course at The Omni Grove Park Inn. The 6,400-yard championship course has been played by PGA stars Bobby Jones, Ben Hogan and Jack Nicklaus and even President Obama. Feel a sense of pride and accomplishment after navigating the tree-lined fairways and bent greens with amazing views of the Blue Ridge Mountains all around. Elevated tee boxes on the par-70 course provide perfect sight lines for each drive. Includes golf fees and shuttle from Biltmore Village to Omni Grove Park Inn.
Tee Time, Thursday, April 19, 2:00pm The Register | March-April 2018
Images used with permission from The Biltmore Company, Asheville, North Carolina
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
call 800.532.9060 or visit www.IARFC.org Page 11
Agenda
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
Tuesday, April 17 5:00pm – 6:00pm 6:00pm – 7:30pm
Registration Welcome Reception
Shuttle Departures Village Hotel Lobby
Biltmore Conference
Lioncrest Lobby
April 17 – 19, 2018 Asheville, NC
Lioncrest Veranda
Networking and Exhibiting
Wednesday, April 18 7:30am 8:00am – 8:30am 8:30am – 9:20am
Exhibitors
Registration
Lioncrest Lobby
Breakfast, visit with Exhibitors CE Session
Lioncrest Veranda Lioncrest Grand Ballroom
9:30am – 11:40am
National Financial Plan Competition 3 Finalist Plan Presentations
11:40am – 1:00pm 1:00pm – 1:50pm 2:00pm – 6:30pm 6:30pm – 9:00pm
Luncheon, visit with Exhibitors Lioncrest Veranda CE Session Lioncrest Grand Ballroom Relax & Explore the Estate IARFC Awards Banquet Lioncrest Veranda ® Keynote Speaker – Ric Edelman, RFC
Thursday, April 19 8:00am – 9:00am 9:00am – 9:50am 10:00am – 10:50am 11:00am – 11:50am 12:00pm – 1:00pm 1:00pm
Breakfast, visit with Exhibitors Lioncrest Veranda CE Session — Ethics Program (2 hour credit) Barry L. Dayley, MRFC CE Session CE Session Luncheon, visit with Exhibitors Closing
Lioncrest Grand Ballroom
Lioncrest Veranda
Added Tours
Behind-The-Scene Guest Tours & Golf Wednesday, April 18 10:00am 1:00pm
Shuttle Departures Village Hotel Lobby
Legacy of the Land Tour Red Wine And Chocolate Program
Thursday, April 19 10:00am 2:00pm
Guided Garden Walk Golf Outing, Legendary Omni Grove Park Inn
Agenda is subject to change. All Attendees and Guests receive a Length of Stay Pass, allowing you to take in the Biltmore House Tour, and gives access to our Guest Package which, includes: Legacy of the Land Tour, Red Wine and Chocolate Program, Guided Garden Walk. Golf Outing at Grove Park is separate. Page 12
The Register | March-April 2018
IARFC Biltmore Conference Registration Admission Item
April 17 – 19, 2018, Asheville, NC
IARFC Member Registration fee Registration Deadline: February 15, 2018 $595 Discounted Price $545
If Registered By
Biltmore Length of Stay Ticket
Thursday, January 18, 2018
CE Sessions, Ethics Program National Financial Plan Competition, Judge the Finals
Non-Member Consultant Registration fee Registration Deadline: February 15, 2018 $795 Discounted Price
If Registered By
Registration Deadline: February 15, 2018
Optional Items
Indicate Quantity Needed Indicate Quantity Needed
April 17, Reception, Wine & Hors d’oeuvres
Total Amount due
$
(Total Registration, Shuttle, and Tour fees)
Payment Options
Package Tours (includes all three, per person) Indicate Quantity Needed
Credit Card# (Visa, MC, Amex, Discover)
Legacy of the Land Tour, Wednesday, April 18, 10:00am Red Wine and Chocolate, Wednesday April 18, 1:00pm
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The Register | March-April 2018
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Continuing Education Credits: Each state has different insurance and securities CE regulations. This event has not been pre-registered for CE. Varying credits will be available for IARFC, PACE, and state credits, depending on sessions attended.
Recommended Attire: Business casual is appropriate. A jacket or dress is optional, but recommended for the Awards Banquet April 18.
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1. Mail Registration with payment to: IARFC P.O. Box 506, Middletown, OH 45042 2. Fax Registration to: 513.345.9479 (credit card only) 3. Email Registration to: info@iarfc.org Make Checks payable to: IARFC
Departing Biltmore at 9:00am EST, Friday, April 20 to CLT
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April 18 & 19, Luncheon with Exhibitors
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Cancellation: A refund (less 20% administration fee) will be made if notice of cancellation is received in writing up to three weeks before the event. We regret that no refunds can be given after this period. A substitute delegate is always welcome at no extra charge. Disclaimer: The program may change due to unforeseen circumstances, and the IARFC reserves the right to alter the venue and/or speakers. IARFC accepts no responsibility for any loss or damage to property belonging to, not for any personal injury incurred by attendees at our conference. The IARFC reserves the right to publish pictures and or video of this event and its attendees. A list of attendee contact information, will be shared with Exhibitors.
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Marketing Unplugged Longevity – We Are Living Longer, But Can We Afford It? Here’s a conversation you don’t want to have with your clients: People are living longer. But can they afford to live longer? CNN News referenced a 2016 report by the National Center for Health Statistics indicating Americans can expect to live 78.6 years. This breaks down to 76.1 years for men and 81.1 years for women. (1) Statistics from the World Bank indicate the average life expectancy in the US was 69.77 years in 1960. In a mere 45 years, American lifespans increased by almost 10 years!
restaurants. That third segment might just as easily be an income from consulting work or starting a small business. The website retiredbrains.com references stories about people who have started businesses in fields as diverse as catering, relocation and pet transport. (4) That third income stream could be fun.
offset by overoptimistic projections of future returns. They might feel they will do just fine if the stock market returns 10% a year going forward. For how long? Well, forever.
The second income stream involves cash flow from their investments. This includes IRAs, 401(k)s and other tax deferred vehicles along with their taxable investment portfolio. Another of their fears of living longer is being unable to produce an adequate return or keep up with inflation. This might be
however the numbers mask two problems. The first is the impact of inflation. Over that same 50 year period, inflation brought the return down to 5.38%. (5) The second problem is the stock market doesn’t move in a straight line. It has good and bad years. Meanwhile, clients need to pay
The Motley Fool website ran the numbers from 1966 to 2015 for average returns on the S&P 500. It came out to 9.69%,
Where you get older matters. Live in Hawaii and you might reach 81.3 while life expectancy in Mississippi is 74.96 years. (2) This sounds like a comfortable retirement is waiting to unfold as your client ages gracefully. The financial firm UBS sees it differently, dividing retirement into three phases: Transition, My Time and The Last Waltz. (3) As a professional in the insurance of financial services industry, you have a good idea what each step involves. What’s A Client to Do? There’s a pretty good chance your client is not adequately prepared for a long retirement. If they took early retirement at 60 (or were downsized) they might need to self-fund their next 20 years in retirement. A financial services manager observed that retirement in the 21st century might be funded through three income streams: Social Security, cash flow derived from a client’s 401(k) and a small income from a part time job on the side. Your clients might consider the third segment as their worst nightmare because they’ve seen older people working as greeters in big box stores or behind the counter at fast food Page 14
The Register | March-April 2018
their power, cable TV, and phone bills the first of every month. How can clients address this problem? This is where you prove your value as their consultant. Traditionally people have a “don’t spend the principal” mindset, preserving it as an inheritance for the next generation. They likely earned their wealth themselves. It didn’t come as an inheritance. It’s logical to plan to spend their money on themselves, letting their children make their own way in the world. This means spending interest and principal in a sensible manner. Annuities are probably another alternative that comes to your mind. They give up the ownership of the portion of their principal they choose to invest, yet receive an income stream for their lifetime. Another approach is the concept of total return. If you own $ 100 worth of a stock and it pays a 4% dividend, that’s $ 4.00 in annual income. If the stock rises in price by 10% over a two-year period and the client sells it, that’s an additional $10.00 before commissions and taxes. Adding $ 4.00 and $ 5.00 is a $ 9.00 or 9% annualized return for each of those two years. Under these conditions their principal should also be intact. Ideally, the company increases their dividend payout as time goes on. Is it the same as collecting interest on a CD or Treasury Bond? Absolutely not. Can dividends get reduced? Yes. Do stocks go down too? You know the answer to that question. This leads you into the diversification conversation. Finally we get to the first income stream: Social Security. First instituted in the US in 1935, it was designed to produce an income in retirement for workers aged 65 and over. It’s been tweaked over the years. It is basically funded by contributions from the retirees themselves, although talk about “Will Social Security run out of money?” means it needs plenty of younger workers paying into the program today to keep it going. Payouts have historically been adjusted for inflation. FYI: Prussian Chancellor Otto Von Bismarck introduced “old age pensions” in 1889. He initially set the retirement age at 70. (6) At the time, life expectancy in Prussia was 45 years. You can point your client in the right direction when they consider taking a lower payout at the lowest eligible age or holding off to get higher payouts in the future. The Register | March-April 2018
Americans are living longer. The UBS example referenced above also talks about the third stage, The Last Waltz, when illness or severely decreased mobility becomes a problem. You know how to have the long term care conversation. It’s not something that should wait for the last minute.
IARFC’s CAREER CENTER at
careers.iarfc.org
For many Americans, retirement was the pot of gold at the end of the rainbow, when they could enjoy life without having to go to work every day. Then it became a period of life to be feared because many hadn’t saved or were unprepared. It doesn’t need to be that way, if they consider three income streams and three phases to retirement. You add value by helping them prepare for each one.
JOB SEEKERS, YOUR NEXT Financial Planning CAREER OPPORTUNITY COULD BE CLOSER THAN YOU THINK.
Bryce M. Sanders
Job Seeker Benefits
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book Captivating the Wealthy Investor is available on Amazon. Contact: 215.862.3607 brycesanders@msn.com www.perceptivebusiness.com
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(1) http://www.cnn.com/2017/12/21/health/us-life-expectancystudy/index.html
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(2) http://www.worldlifeexpectancy.com/usa/life-expectancy (3) https://www.forbes.com/sites/ubs/2016/12/20/the-threephases-of-modern-retirement/#6d2eb41a6faf (4) https://www.retiredbrains.com/suggestions-from-readers.html (5) https://www.fool.com/investing/general/2016/04/22/ how-have-stocks-fared-the-last-50-years-youll-be-s.aspx
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Are You Making An Impact?
Impact investing — it’s a new term for an investment strategy that’s been around and evolving for decades. What is it? Why is it important? How can you talk about impact investing with your clients? These are all questions that will be answered in this article. Some of you may be familiar with impact investing, but I do want to define it, because it can get a little confusing with so many different terms: impact investing, socially-responsible investing or SRI, and the selection criteria used like ESG and exclusionary/inclusionary selection processes. What is impact investing? Impact investing is the new term in an area that continues to evolve. I define it as an investment approach that aims to generate both positive financial returns and social impact. You may be more familiar with the criteria used to identify such companies, which is called ESG, the acronym that stands for Environmental, Social, and Governance. Socially-responsible investing or SRI has a more narrow focus than impact investing, focusing obviously only on the social aspect of ESG, and was the foundation that ESG built upon. ESG has become a solid framework that can be used to evaluate companies for impact. Companies score based on the positive attributes that they bring to the table. This is a significant change compared to what was done previously. For a long time, the industry only focused on exclusionary processes, meaning “sin” stocks were excluded from investment. But once industries like defense, guns, and gambling were avoided, the work was done. Over time, managers started to realize that wasn’t enough. So managers started rating stocks based on positive attributes. The focus shifted to how sustainable are they? How do they test products? Do they run sweat shops overseas? How is the Page 16
product or service helping people? They also started to focus on corporate governance. How are the boards structured? Are there board conflicts? Sometimes the governance piece creates confusion among investors. In the equity strategy I ran at my last firm, people would sometimes ask us, why is there a clothing company in this ESG portfolio? They sell jeans. They’re not saving the world. I would agree with them and then point out that they treat their stakeholders and shareholders extremely well, and have a solid environmental foundation, so they rank well on the ESG trifecta, even if the product doesn’t necessarily have a distinct positive social impact. Later on, I’m going to discuss what I call the ESG spectrum and why it’s important to understand when dealing with clients. There is also a common misconception about impact investing. Some believe that returns and impact are mutually exclusive. Years ago as I was just getting
familiar with impact investing, I was surprised to learn that many studies showed outperformance of ESG criteria over common benchmarks and I started to think about why that was the case. As an investment manager, I price risk and potential reward and as I thought about it, I realized that’s why ESG outperforms. You reduce risk because the companies you invest in avoid negative industries, put a greater focus on safety, environmental and corporate controls, which lowers risk. Also, by treating employees well and potentially working in an area that helps people, it connects employees to their work. They get more satisfaction and the company and shareholder get more out of the employee, meaning higher returns. Why is impact investing important? Impact investing is important because it is growing in importance with clients. In the last decade, impact and sociallyresponsible investing has led to huge growth in the retail side of the business. Growth of impact investments in SMAs and mutual funds from 2012 to 2016, increased The Register | March-April 2018
from $1.4 Trillion to $8.1 Trillion, a whopping 470% increase in five years. This is not a fad. This is something that is going to persist for the foreseeable future. The problem is that consultants and clients are likely not discussing the issue and because of that, there are still some disconnects going on in the marketplace. Morningstar did a study and asked both consultants and clients how much they were interested in impact investing. Consultants in 2016 responded with minimal interest. A little over half had little or no interest in impact investing and less than 10% were highly interested. Yet the interest level on the investor side was significantly higher, particularly among women and millennials. 75% of women and nearly 90% of millennials said they were interested in impact investing. Millennials are set to play a major role in the economy and financial markets in the coming decade. As a group, they total 75 million in population and due to immigration, that number is expected to grow. The oldest millennials are just entering their prime earning years. They are already the largest generation and the only one growing, both in absolute numbers and even more so on a relative basis. Millennials are expected to have $7 trillion in liquid assets by 2019/2020. They are already having an impact now and this is just the start. And according to Accenture, Millennials are also twice as likely to invest in a stock that is socially responsible. 80% say they would stay in an ESG investment longer than a traditional one. And ESG factors are as important as investment outcomes. This is likely quite different than the average client you’re dealing with today. Women are also a key part of the impact investing discussion. Most consultants I work with typically meet with both husband and wife, but the husband is usually the driving force of the couples’ finances. If that’s the case in your practice, you need to pay attention. A recent study showed that 70% of women leave their financial consultant after the death of their spouse. That’s a surprising number, but not when you consider that 67% of women feel misunderstood by their financial consultant. Now even if that number is 50% for you or less, I think you can understand how important it is to get your women clients more involved in what you’re doing and make sure that you are considering their needs and wants. The Register | March-April 2018
Impact investing is also a way to involve your clients’ children. What are we all deathly afraid of? The wealth transfer from our clients to the next generation and losing that business in the process. It happens every day. You can use impact investing to engage your clients’ children and grandchildren in the process for greater client retention. How can you incorporate impact investing into your practice? The process begins by gaining an understanding of the investment options available to you and the ESG spectrum. When I first began learning about impact investing, I was really surprised at how poorly defined it was. The ESG spectrum is something I use that focuses on the balance between reward and impact. A few years ago, I saw a study suggesting there was $16 trillion invested in ESG-related strategies. I knew that was impossible and the definition was too broad. If you took all of those strategies, they owned 493 companies in the S&P 500. I was pretty certain that there were more than seven companies in those 500 that weren’t operating with sound ESG principles. So that’s one end of the ESG spectrum, so wide that the fund companies are just pretending to incorporate impact investing principles into their process and it doesn’t really mean much. On the other end, I think you can go too far and focus too much on the impact and not enough on the return on the investment. You may love wind energy. It’s green and great in theory, but investing in has a lot of challenges, including high cost and inconsistent power generation, leading to disappointing returns. So I like to have a balance. But that’s something you as the consultant need to determine with your clients. How strict do you want to get with your definitions? Going back to the jeans example, is that okay or does every investment need to be making a social impact? Disconnects between what the client expects and what they get causes problems regardless of the issue at hand, but when it comes to impact investing, which many clients are passionate about, you need to take the time to understand where the client wants to be on the ESG spectrum. Once you’ve done that, the process is simple. Just ask the client what they know about impact investing and if it’s important to them. If they don’t want to learn more about it or incorporate it into their investment philosophy, move on. If they do, figure out how important it is to them, where they want to be on the ESG spectrum, and
present them with investment options that fit with your practice. It doesn’t matter how you handle the investment function in your practice, there are options for everyone to incorporate impact investing. Our business is growing more and more complex each year. For something like impact investing, which is poised to have a huge influence on our business, the effort it takes to manage it is quite minimal. With a little bit of research about what the investment options are and a few client questions, this new tool can help you avoid a potentially significant risk. How can we tie this all together? There is no doubt based on the numbers I’ve presented, that impact investing is here to stay and will be a major driving force in our business for years to come. It is going to play a role in your client’s satisfaction with your understanding of their needs, and ultimately how much income you generate. I urge you to learn more about the topic, what investment options are out there, and how you can incorporate impact investing into your client meetings. There is more disruption going on in our industry than ever before, from impact investing to passive investing, new technology, the aging of the baby boomers, the emergence of the millennials, and all of the regulatory hurdles. We can’t control any of these things outright, but we can adapt to them. Dealing with impact investing is probably the easiest. Start by incorporating it into the investment conversation and take it from there. I urge you to make an impact with impact investing.
Cliff Walsh, CFA, RFC® Cliff Walsh, CFA, RFC®, is the Vice President of Asset Management at American Portfolios Financial Services, a 100+ employee Broker-Dealer serving 800 financial advisory businesses. Contact: 631.439.4600 ctwalsh@americanportfolios.com www.americanportfolios.com Page 17
Competing Against Wall Street IARFC members have one thing in common regardless of their areas of concentration. The main competitor they have is Wall Street. Whatever your area of focus is, your greatest obstacle is prying money out of the clutches of Wall Street. In my book, How Wall Street Rips You Off – and what you can do to defend yourself, these issues are delved into in depth. In this article I want to help you understand some of the most effective techniques Wall Street uses to keep control of clients’ funds and provide some ideas on how you can fight back. 1. FINRA – Friend or Foe Broker/dealers tell clients that better protection is available because the firm is regulated by the Financial Industry Regulatory Authority (FINRA). Let’s peek behind the curtain of this façade. FINRA was formerly known as the National Association of Securities Dealers (NASD). That name made clear that this was a trade association. FINRA is not a governmental regulatory body. It is a TRADE ASSOCIATION whose primary function is to protect the interest of its members. FINRA members are “registered” broker/ dealers. The organization is dominated by major Wall Street firms. Protecting trusting investors is not the focus of the organization. knowledgeable and better equipped to protect the interests of your clients.
to disclose these costs as part of the expense ratio.
In the first six months of 2016, claimants were awarded “something” in slightly over 50% of the cases that went to a hearing. That meant that slightly under 50% got NOTHING. For those who “win” their case, the awards have, historically, averaged about 40% of the losses they were seeking to recover.
Actively managed mutual funds are one of Wall Street’s main tools of abuse. These funds rarely outperform the passive funds which have far less fees. In actively managed funds, the true expense costs of operating the fund are hidden by broker/ dealers. The typical “expense ratio” in actively managed funds is approximately 1.15%. However, investors are seldom told about the hidden costs that cut into their returns. These hidden costs heavily impact “real returns”.
Investors receive a prospectus when purchasing a mutual fund which discloses the “basic” costs of operating the fund. The more onerous expenses are disclosed in a Statement of Additional Information (SAI). Unlike the prospectus, the SAI is only provided to investors upon request. A minute percentage of investors have ever heard the words “Statement of Additional Information.” The same is true of almost all brokers employed by FINRA registered firms.
2. The Truth About Mutual Funds If mutual funds represent a portion of your practice, this article will help you be more
Investors are not aware of the additional costs of operating a mutual fund, primarily because firms are not required
When a client asks for the broker to supply the SAI for an individual fund, the broker will have to ask a supervisor in order to get the
Every client who opens an account with a FINRA broker/dealer agrees to arbitrate any disputes before a FINRA panel. The panelists can only serve if approved by FINRA to be part of the arbitrator pool.
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The Register | March-April 2018
document. There are usually excuses, delays and reasons why the document is not readily available. The SAI is usually a shocking eye opener. Substantial additional fees are normally disclosed in the SAI. The SAI also lists risk disclosures that the Wall Street firms prefer not to call to the attention of investors. It is an interesting exercise to tell clients, who have mutual funds with a Wall Street firm, to request the SAI on the funds they own. I can give you many specific examples but, in just one recent case, the numbers are revealing. The prospectus for this heavily marketed fund showed an expense ratio of 1.1%. The SAI for the same fund showed true costs of 4.25%! This means that the uninformed investor has to get a 4.25% return just to break even. There is, of course, usually a “management fee” charged by the broker/dealer which goes on top of the 4.25%. The client is entitled to know the real costs. The negative impact of these costs cannot be over emphasized. The SEC website states: ”Higher expense funds do not, on average, perform better than lower expense funds.” Russell Kinnel, long-time director of mutual fund research at Morningstar, offers similar thoughts: “If there is anything in the whole world of mutual funds that you can take to the bank, it’s that expense ratios help you make a better decision. In every single time period and data point tested, low-cost funds beat high-cost funds.” Sadly, most clients of Wall Street funds don’t know what those costs really are. A study done a number of years ago by the Zero Alpha Group provides shocking confirmation: “The study found that 43 percent of the firm’s expenses were omitted from their expense ratios and that the transaction costs of some funds exceeded 400 percent of their expense ratios.” In financial circles the most frightening word in the English language is “fees”. In competing with Wall Street educate yourself and inform clients about the real cost of investments they hold. Make valid comparisons with any alternatives they may be considering. There are many other ways Wall Street dips into the pockets of your prospects The Register | March-April 2018
using actively managed mutual funds. Here are just a few: 1). Breakpoint Discounts – Suggest that your clients ask about breakpoint discounts. Brokers will often advise splitting investments to prevent investors from reaching a breakpoint, resulting in higher commission costs to the investors. Investors are usually told this provides increased diversification when, in fact, the funds are often closely correlated. 2). Redemption Fees – The costs are deducted from redemption proceeds but are not considered a deferred sales load which would have to be disclosed. 3). Exchange Fees — Some funds charge an “exchange fee” for transfers even within the same family of funds. Again, if you are involved in using mutual funds, separate the way you conduct your business from what is done on Wall Street. Be a reliable source of accurate information. Contrast deceit with transparency. In funds under management, stress the advantages of ETF’s and passively managed funds over the high costs and the lower returns of actively managed funds. 3. Margin Accounts Margin accounts are a large source of income for Wall Street firms. They are seldom beneficial for clients. Make clients aware of risks involved in maintaining and using a margin account. If any of your prospects have a margin account, ask why they have it and what they expect the account to do for them. Provide them with an example of a margin disclosure statement. That alone will inform and frighten them and cause them to ask if that account was really set up in their best interest.
I’ve seen a number of situations where elderly clients were sold these complex products by registered broker/dealers. The sale is justified by having the client sign an account opening application stating that they are a sophisticated investor and that speculation is an objective of the account. 5. Documentation Offer to review prospects’ opening documents with their Wall Street firm. You will usually find the documentation is more concentrated on protecting the firm than the investor. I had a client who was 90 years old. The brokerage firm had documents stating that the elderly lady was a sophisticated investor with a primary investment objective of “speculation”. In competing with Wall Street, never disparage the individual broker or the firm. Analyze documents, answer questions, be informed and knowledgeable. Be fully informative and descriptive about the products you are marketing. If your practice sector permits, help clients develop a plan both for retirement and for overall financial goals. Analyze the existing plans they have. Offer constructive input. If you agree with the existing plan, be sure that whatever you do complies. If you disagree, offer constructive advice without being personally critical of the broker or the firm. Don’t be intimidated by the prospect of competing with Wall Street firms. Welcome the challenge.
4. Structured Finance Products Wall Street has a passion for structured finance products. The complexity of such products is made clear by the SEC’s published partial definition: “…securities whose cash flow characteristics depend upon one or more indices or that have embedded forwards or option…” Read this definition again. Ask yourself if the average investor can decipher those words. In fact, the products are far more complex than even this simple quotation reveals. These products are illiquid and can seldom be sold prior to maturity without taking a substantial loss. It is extremely difficult to calculate returns or to value the assets at any point prior to maturity.
Dale Ledbetter, J.D., RFC® Dale Ledbetter, RFC® is a best-selling author and frequent speaker at Financial Forums throughout the country. His book, How Wall Street Rips You Off - and what you can do to defend yourself has served as a guide for many agents and financial advisers. Contact: 954.540.3642 ledbetter@kolawyers.com www.kolawers.com Page 19
Reverse Mortgage Update All of this may sound too good to be true, and it probably is to some extent. Perhaps this is why it is difficult to grasp the concept of line of credit growth throughout retirement. I’ve already noted that unused lines of credit work for borrowers to the detriment of lenders and the government insurance fund. Such use of a reverse mortgage still exists today and would be contractually protected for those who initiate reverse mortgages under the current rules. At some point in the future, I expect to see new limitations about line of credit growth, especially as more people start to follow the findings of recent research on this matter. Line of credit growth may be viewed a bit like an unintended loophole that is strengthened by our low interest rate environment. The rules will probably be changed someday for newly issued loans. Until then, research points to this growth as a valuable way reverse mortgages can contribute to a retirement income plan. —From the first edition of my book Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement, page 72
And so it goes with governmentadministered programs: financial consultants use their acumen to find uses and strategies that government policymakers do not anticipate. It happened with Social Security in November 2015, when sophisticated Social Security-claim strategies were phased out in response to financial consultants catching on about how to obtain additional spousal benefits from the program. And it happened with reverse mortgages in October 2017, because financial consultants had seen how setting up a growing line of credit with the Home Equity Conversion Mortgage (HECM) program offered invaluable options for building more efficient retirement income plans.
announced new rules effective on October 2, 2017 that reduce some of the momentum and value from reverse mortgage line of credit uses. Under the new regime, it will be a tougher psychological hurdle to pull the trigger on opening a reverse mortgage before it is needed, in order to let the line of credit grow. Up-front costs will be higher, primarily because of an increased initial mortgage-insurance premium, and the line of credit will grow more slowly and from a lower initial base. For those who initiated reverse mortgages prior to October 2, the old rules still apply. But new borrowers opening a reverse mortgage after October 2, 2017, will face a less generous program.
On August 29, 2017, the Department of Housing and Urban Development (HUD)
Not all is lost, though, for those who did not get their applications for a reverse
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mortgage submitted by that October 2017 deadline. Though the initial costs of setting up a reverse mortgage will be higher due to a larger initial mortgage-insurance premium and the growth for the line of credit will be less due to a lower initial borrowing amount and a smaller ongoing mortgage-insurance premium, the line of credit still remains as a viable option and use for a reverse mortgage. Nonetheless, setting up lines of credit for future use was never the most popular way to use a reverse mortgage. People generally open reverse mortgages because they wish to spend the proceeds sooner rather than later. Refinancing a traditional mortgage into a reverse mortgage to reduce the fixed payments in the early years of retirement has been the most popular use for a HECM
The Register | March-April 2018
reverse mortgage. Arguably, the new rules have made using a reverse mortgage in this way more attractive, especially when the remaining mortgage to be refinanced is a larger percentage of the available reversemortgage proceeds. More generally, when discussing reverse mortgages, I have been changing my emphasis a bit away from reverse mortgage uses that open a line of credit for distant potential uses and toward using a reverse mortgage to spend the proceeds more quickly, such as by refinancing a traditional mortgage, purchasing a new home with the HECM for Purchase, and building a bridge to help support the ability to delay Social Security benefits to age seventy. As well, when it comes to coordinating retirement spending with a reverse mortgage, before the rule change the most effective way to do so was to open a line of credit as early as possible but to spend from it only in the event that the portfolio is depleted. With the new rules, emphasis shifts toward more coordinated strategies that draw from the reverse mortgage throughout retirement. These coordinated strategies now have a greater benefit, because some of the value of just letting a line of credit grow endlessly before using it has now been diminished. Briefly, the new reverse mortgage rules implemented in October 2017 include: • The initial mortgage-insurance premium when opening a reverse mortgage is now 2 percent of the home value up to the $679,650 (as of January 1, 2018, and subject to change) lending limit. This has changed from a previous dueling-premium approach that depended on the amount borrowed in the first year; it was 0.5 percent if less than 60 percent of the allowed borrowing amount was taken in the first year and 2.5 percent if more than 60 percent of the allowed borrowing amount was taken in the first year. • The ongoing mortgage-insurance premium on the loan balance has been reduced to 0.5 percent from the previous 1.25 percent. • A new table of principal limit factors was issued, and these generally result in a reduced initial borrowing amount with the reverse mortgage, at least when interest rates are low. • The floor on the expected rate used to calculate initial borrowing amounts on a reverse mortgage was reduced from The Register | March-April 2018
5.06 percent to 3 percent, which does have some interesting implications in our low-interest-rate environment. Home equity is a very important asset for many retiring clients, and it is worth making a careful examination about the best ways to incorporate home equity into a comprehensive retirement income plan. At present, reverse mortgages are underutilized by the US population. Since the beginnings of the HECM program, more than one million loans have been initiated, and the FHA reports that there were 560,023 outstanding HECM loans at the end of September 2017. Mark Warshawsky reports that in 2015, there were about thirty-six million US households with someone aged at least sixty-two, and roughly 1.6 percent of these are using HECMs. He estimates, however, that about 12 to 14 percent of these households are suitable candidates for HECMs: their homes are eligible, have mortgages of less than 40 percent of the home’s value, and could generate at least 10 percent more overall retirement income with a HECM. So, there is still plenty of room for growth with the HECM program and you may have some clients that could potentially benefit.
Education Experience Integrity
Interest in reverse mortgages is growing, and financial consultants should strive to have a solid understanding of the program and its current rules. Those seeking updated knowledge might consider reading the newly updated second edition of my book, Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement.
IARFC Brochures — a well mapped informational flow for a successful and lasting relationship between You and Your Clients/Prospects. Wade D. Pfau, Ph.D., CFA, RFC® Wade D. Pfau, Ph.D., CFA, RFC® is a professor of retirement income at The American College in Bryn Mawr, PA, and a principal at McLean Asset Management. He is also a co-editor of the Journal of Personal Finance. Contact: wadepfau@gmail.com www.retirementresearcher.com
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
Order your IARFC brochures at: www.IARFC.org/Store or call 800.532.9060, or email info@iarfc.org
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The 5 Words Top Producers Shouldn’t Use Have you ever noticed everyone thinks they’re authentic, regardless if they are or aren’t? Being authentic with your clients’ means being real, being genuine, or in other words, being the same person in front of them as you are when you’re not in front of them. People become disappointed, or dissatisfied, when they discover something isn’t what they thought it was. Said differently, consumer dissatisfaction occurs when experience is not aligned with expectation, regardless if the expectation was positive or negative. Authenticity has no favorable bias towards politeness or rudeness. Mean people can be genuine, in fact they can be genuinely mean yet still be authentic.
Consider this, do you remember the “locker-room” audio clip that was released during the 2016 Presidential campaign? I know you do! It contained derogatory comments made by Donald Trump. So, why wasn’t this clip more impactful? Simple, I’ll bet even before hearing the audio clip, both supporters and non-supporters could’ve imagined President Trump using those “locker-room” terms. Therefore, voter expectation was concurrent with experience; President Trump is the same person behind the curtain as he is in front of it. Like him or not, he is who he is. Let’s bring this back to the financial world. There are certain words, phrases,
or terms used in our industry, which while widely used and accepted, would cause clients to lose trust in a consultant who uses them. These terms are not aligned with clients’ expectations of a consultant’s professionalism. Here are the top 5 words or phrases authentic producers, top producers should never use… 1. One-Legged Appointment. This is on the more benign side of our list, but I remember the first time I heard this term. I was inexperienced and was joining a ‘seasoned’ agent for a day of appointments. After a bad day, the day before, he started our day by saying, “I’m sick and tired of these one-legged appointments.” I thought to myself, “why are we meeting with a one-legged person and is it polite to refer to them that way…maybe the client prefers Bob, or Robert…?” This term isn’t a huge deal, it’s just one of my pet-peeves. Kind of like when an consultant says ‘x’ days are my office days and ‘y’ days are my field days. Ah, silly me I was unaware some consultants trudge out into the fields to meet clients. Dumb, inaccurate, and shouldn’t be used. Moving on! 2. Lay-Down Appointment. Imagine you just completed an application for (insert whatever product or service you’d like) with Mrs. Jones. Afterwards, you get a phone call from your spouse who asks, “how did it go?” Before you can answer, your phone buzzes, it’s Mrs. Jones calling you. Instead of answering, you swipe left to ignore, and reply “oh — it was easy, she was a lay down.” The voice on the other end of the phone says “excuse me,” at which point you realize you swiped left when you should’ve swiped right (or vice versa I’m not sure).
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The Register | March-April 2018
Embarrassed you back-track and apologize because you would’ve never used that sentence, those terms, with Mrs. Jones. In other words, you’re fake, not genuine, untrustworthy, certainly not authentic. I’m sorry to offend, but if the shoe fits…
If you’re okay with that, then here’s a logical follow-up… “and do you have any lowhanging fruit you’d like me to take care of today?” Sounds like a snake oil salesman doesn’t it…
Take It Off And Be Authentic!!!
Being authentic isn’t a part-time decision. You are who you are, good or bad, you decide.
3. Low-Hanging Fruit, and Close.
5. Plate Licker
Sorry I couldn’t keep myself to one word.
I saved the most cringe-worthy term for last. At a conference recently, I had a fellow producer, George, complain about all of the “plate lickers” he gets at his workshops. Wanting to be authentic, I didn’t disguise my disdain for this idiotic and offensive viewpoint.
Maybe you’ve heard the term, “lowhanging fruit,” to describe what product or service to offer a consumer first. Come-on, I know you have. Here is what you’re potentially saying. Mrs. Jones had several things that needed to be done. Some of which were more important than others, but I took care of the ‘low-hanging fruit’ first, not because it was necessarily the best, but because it was the easiest, and gave me a higher assurance of making a sale. Not exactly the philosophy of a consultant who is in this for the long haul; or, an advisor who’s always acting in his or her clients’ best interests, is it? Just as important, stop using the word ‘close,’ or the phrase ‘did you close any sales today,’ or the question ‘did you close them?’ Imagine after several meetings you’ve finally agreed to have Jill, a well-respected attorney represent you for a legal matter. Later that day, you see Jill at a restaurant, so you walk up to Jill to say, ‘hi.’ Before she sees you, you hear her say “yeah I had a pretty good day, I finally closed Mr. Markey.” Would you still feel like Jill was acting in your interests, or on your behalf? I wouldn’t. 4. Buying Unit Marketing companies often ask consultants “how many buying units do you want at the event?” Yes, this is a term accepted by the masses in our industry, but I plead with you — don’t follow the masses, because the masses aren’t authentic. Here’s an example: let’s say Bob and Nancy Parker are headed to your office for a first appointment. Bob walks in first, but you don’t see Nancy. Curiously you ask Bob, “is the other half of your buying unit coming today or is this just a onelegged appointment?” The Register | March-April 2018
Instead I asked George about the mailers he sends out. After 5 minutes of playing Ring Around The Rosie, he finally admits — the biggest item, the area designed to draw each mail-card recipient’s attention first, is a picture of a mouth-watering delicious steak served at one of the area’s finest, most well-known restaurants.
made an appointment unlike those plate lickers who just ate my food and didn’t set an appointment.” Nancy feels badly, so she says, “well we did bring you some low-hanging fruit.” These five words, phrases are widely accepted within our industry. They’re used by the masses…but the masses aren’t well respected and aren’t trusted. Our industry is often accompanied by negative connotations. For the betterment of our industry, we need to change this. You don’t have to change who you are. If you’re a turd, then be a turd…be the same turd with your clients that you are with your family and that you are with your friends. For better or for worse, be authentic, because if clients can’t trust something as basic as you being authentic, real, or genuine with them, then how on earth can they trust anything else you say.
Um, can we pause for a minute? Throw the flag and go to instant replay. George is complaining that the people attending his event are there for the very thing he intentionally put on his mailer. They came for the food, which was marketed to them as a lure, a draw to grab their attention and entice them to attend. Shocking! Hopefully this marketing genius never buys a putt putt golf business because he’ll probably market it as an 18-hole golf course and then be shocked, appalled, and offended when people bring all of their clubs. Said another way, we’ll use Bob and Nancy again. This time let’s have Nancy keep her maiden name, say, Schnabel (yes, that’s a Gold Rush reference, don’t judge me!) Once again, they attended your workshop, but since they had different last names you assumed they were two — ugh — buying units.
Michael J. Markey, Jr., MRFC Michael J. Markey, Jr., MRFC, is a cofounder and owner of Legacy Financial Network and its associated companies. His vision has expanded the organization from one location to three, with the hopes to make Legacy a national company. He attained his Bachelor’s degree from Eastern Michigan University while playing baseball for the Eagles.
So, when they come in together you ask, “I didn’t know you guys were a couple?” Nancy laughs and says, “I’d hope so, we’re married.” With a dejected tone, you say “oh, I didn’t know that.”
In addition to being an investment advisor representative for LFN Advisors LLC, and an insurance agent for Legacy Financial Network, Michael’s main passions are his faith and his family. He shares his faith with his clients and incorporates the values it instills into Legacy’s Four-Step System.
“Is something wrong?” she asks. “No, I just thought you were two buying units, not one, but that’s okay at least you
Contact: 616.589.4004 mmarkey@legacyfinancialnetwork.com www.legacyfinancialnetwork.com Page 23
International News Event and Education Programs
Highlights IARFC Hong Kong, Macau December 29, 2017 RFC Education Programs Professional Diploma in Financial Consulting Program (PDFC) Professional Certificate in Financial Consulting (Executive Program) (PCFC(EP)) By approval of Monetary Authority of Macau, insurance intermediaries who study any one of the two education programs in Macau for attaining the RFC professional designation, namely (PDFC) and (PCFC(EP)) are granted ten Continuing Professional Development hours for each year’s studies for up to six years. Monetary Authority of Macau is the government body which regulates the monetary, financial, foreign exchange and insurance markets in Macau. The Authority’s approval signifies its value given to the PDFC and the PCFC(EP) in the elevation of the Financial Planning standards in Macau. The PDFC and the PCFC(EP) are jointly organized by IARFC Hong Kong and Macau Centre, Macau Institute of Financial Services and City University of Macau. They consist of essential subjects in Financial Consulting: (i) Personal Financial Planning, (ii) Finance and Investment, (iii) Risk Management and Insurance, (iv) Law and Tax and (v) Practical Aspects of Financial Consulting and Case Studies. Program graduates who meet the RFC admission criteria are eligible for the award of the RFC professional designation. January, 2018 IARFC Hong Kong and Macau Centre, Macau Institute of Financial Services and City University of Macau signed an agreement to renewal their cooperation on the PDFC and the PCFC(EP) Chairman and CEO H. Stephen Bailey, MRFC announces that the appointments of Mr. Samuel Yung, RFC® and Dr. Teresa So, RFC® as Honorary Chairman and Chairman of IARFC Hong Kong and Macau have been extended for another two years. Mr. Samuel Yung was appointed Chairman August 2005 and Honorary Chairman March 2016. His current duties include public relations, networking and contributing personal guidance to the development of IARFC Hong Kong and Macau, and meetings with the Chairman and Executive Director. Page 24
IARFC Hong Kong Macau — Dr. Teresa So, Chairman, Hong Kong and Macau, IARFC, Professor Shu Guang Zhang, Rector of City University of Macau, Mr. António José Félix Pontes, Chairman of the Executive Board of Macau Institute of Financial Services
Dr. Teresa So was appointed Adviser in August 2005 and Chairman in March 2016 succeeding Mr. Samuel Yung. She provides executive leadership to IARFC Hong Kong and Macau through meetings with the Honorary Chairman, Executive Director and the Membership Development Committee. As a representative of IARFC Hong Kong and Macau, she officiates at ceremonies such as signing of agreements, RFC Graduation cum Conferment Ceremonies and other public relations events. Encouraged by their renewed appointments, Executive Director Allan Wan is confident that the IARFC Hong Kong and Macau will advance to further milestones under their leadership. “I am privileged to serve IARFC Hong Kong and Macau under the competent and dedicated chairmanship of Mr. Samuel Yung and Dr. Teresa So,” related Mr. Wan. “They have set a good success foundation for our operation – having recruited reputable partners, including: the University of Hong Kong, Hong Kong Baptist University and General Agents and Managers Association of Hong Kong, and so far turned over 2,000 practitioners to RFCs.” The appointments are for a two year term and are effective March 2018. The Register | March-April 2018
Upcoming Events IARFC Hong Kong, Macau US Chairman and CEO on the Road Again Accompanied by Kai Tu Yuan, CEO of IARFC China Development Team, US Chairman and CEO H. Stephen Bailey, MRFC will be making a visit to international IARFC chapters in March. He will be an honored guest and presenter at the following events: IARFC China March 16 , 2018 Beijing, PRC RFC® Conferment Ceremony US Chairman presents, Primer for Financial Consultants March18-20 Sanya, South China Sea 4th Greater China IARFC Conference US Chairman presents, Career Advice from a Veteran Consultant
Kai Tu Yuan CEO/IARFC China Development Team Discussion of IARFC China Development
Dr. Jeffrey Chiew RFC® IARFC Asia Chair Financial Technology (Fintech) in Financial Planning IARFC CE credit
International Presentations April17-19 IARFC Biltmore Conference Asheville, NC, US Dr. Jeffrey Chiew, RFC® - IARFC Asia Chair presents, Financial Technology (Fintech) in Financial Planning Kai Tu Yuan, CEO/IARFC China Development presents, Discussion of IARFC China Development These exchanges of international visits strengthen the international scope of the IARFC and promote the Association’s mission both overseas and in the US. IARFC Hong Kong and Macau April 26 IARFC Education Program — Certificate in Financial Consulting Executive Development Center of Hang Seng Management College, Hong Kong IARFC China August 2018 Worldwide China Life Congress Kunming, China
The Register | March-April 2018
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• Life, AD&D and LTD Insurance • Highly affordable premiums with core coverage • Guaranteed issue/no medical or financial underwriting • Competitive premiums designed for consultants • Travel benefits and employee assistance programs For new members, these plans are available up to 30 days after joining the Association with no medical form required – guaranteed issue up to $250,000. For current members, applicants must provide medical history. There is no physical required, an in depth questionnaire is sent to underwriting to make a determination. Medical questionnaires vary from state to state. Questions? Call plan administrator: Michael Insurance Planning 800.932.4075 download program brochure www.IARFC.org/Insurance partner program with The Standard Insurance Company and Michael Insurance Planning Company
Ain’t For Me Introduction I wasn’t born into a family financial practice so I earned my book through my own blood, sweat and tears. I remember well the day I signed up my first client. He was a community college professor and he wanted to diversify his account by starting a new 403b plan with me and my company. My company specialized in 403b retirement plans for k-12 and higher education and they did a lot of target marketing plus buying endorsements to gain market share in this space. But I digress. I was hired in April and trained in the field with my district manager for 8 weeks placing me on my own in June. I did what my regional manager told me and I saturated my territory with self-addressed, stamped reply cards. I did that for June and July without one card being returned. I continued this practice in August but then I received my first reply card back. I called the prospect, booked the appointment and made the sale. It was $150/pay or $1800 annualized. My commission was 3% on the annualized amount. The commission didn’t matter so much as making the sale and having my first client. I still remember that feeling I was ecstatic. And, I remember how important that one client was to me. Moving Along and Moving Up I stayed probably longer than I should have with this company but that’s another story. I did become their national number one salesman because it is as Tom Hopkins taught me, through his tapes which I listened to every day memorizing his sales techniques: “You can’t criticize your company unless you’re number 1”. And I was naïve enough to believe not only that statement but that I could be number 1. It was 6 years later when I did become their number one producer. As is typical in our profession, attention is given to those who produce and as my book of business grew so did the attention my company gave me. Drinking the Kool-Aid It wasn’t long before my company told me I couldn’t service all of my clients and that I The Register | March-April 2018
needed to attend a seminar on the ABCs of segmenting my clients. I dutifully follow their instructions and attended. It was a seminar presented by a mutual fund company and they proceeded to indoctrinate me with their client service wisdom. It went something like this: You have achieved a level of success and expertise. You deserve to spend your time with the clients that pay you the most and not the ones that absorb most of your time and pay you the least. Sounded good to me and the more I listened the less I thought of my first sale and the feeling this professor gave me. Now it’s all about the Benjamins in my pocket and not about the satisfaction I feel when I helped another family or person. I didn’t realize how ugly I was becoming. I also didn’t realize that these companies had no business teaching me how to service my clients when they did and still do a terrible job of servicing their own. Embrace the Change… OR ELSE “You’re either on the bus or off the bus.” “It is what it is.” “Perception is reality.” “T it up for management.” These were some of the corporate sound bites making their way through the ranks of the sales force as our business models changed along with our senior leadership as they wanted to increase profits for a potential merger because they kept on stating we were too small and needed to find a larger name brand in our industry. Nothing wrong here and increasing profits is sound business management but absurd profits so that top executives can take obscene payouts to the disadvantage of our clients…well, I fundamentally disagree with this business practice. Time for me to change… change companies that is. It’s the Independent Life I know I swim against the corporate tide most of the time. I tend to believe if you take care of your clients, your clients will take care of you. I embraced the fiduciary rule long before it was a rule and more of a creed of mine. I also believe the majority of consultants believe this way too, but top corporate senior executives?... not so much.
I inherently distrust them. I have found my place though as an independent consultants aligned with an independent broker/dealer who has “kindness” as one of its core values. Kindness is not such an unusual word in business. We Rotarians state it as one of ours when we recite our four truths along with believing in being honest and having integrity. I no longer subscribe to ABCing my clients the corporate way. I don’t have a client minimum when working with one but I do have a good motivational fit model. And I don’t align myself with any mutual funds, investment banks, separate accounts, insurance companies, third party money managers or any other firms unless they are a good investment fit for my clients. In my world, I do what is in the best interests of my clients because I know if I do what’s in their best interests, my own interests will follow. Now, for me, this way of servicing my clients is a simple as: A, B, C.
Evan F. Cole, RFC® Evan F. Cole, RFC®, has been working with people to keep their investments simple, easy to understand and successful since 1985. He is an investment advisor representative and registered principle of Cambridge Investment Research, Inc. He earned a Bachelor of Science from the University of New Hampshire and holds multiple security licenses and life insurance licenses in California and Oregon. Contact: 916.961.5553 evan@gfainvestments.com www.gfainvestments.com Page 27
Consumer Focus Watch Out For Inflation With 10,000 people retiring every day, we are reminded of the start of a big city marathon. The image of runners clogging the starting line stretches back into seeming infinity, waiting for the signal to start a 26-mile run. Some of them will sail, and some of them will fail. Others will make it, but not without a struggle. But one thing is sure. The ones who succeed are the ones who know what is in front of them and are prepared for it. The race for success in retirement similarly hinges on us knowing what challenges may confront us and learning how to meet them. When people talk about inflation, you will hear terms like “contained” and “under control” tossed about. That leaves the impression that it is a monster in a cage that could someday escape and wreak havoc on our retirement savings. That’s a pretty accurate assumption. The Frog and Inflation Another form of financial evaporation is inflation. The effects of inflation are not sudden and dynamic; they are slow and erosive. If you were to put a frog into a pot of boiling water, the frog would jump out right away. But put the frog in water that is room temperature, slowly turn the heat up, and the frog will allow itself to be cooked without protest. Now, before you sic the animal rights people on me, I have never done this…I have no intention of doing this…and I certainly don’t encourage anyone else to do this. I love frogs. I love all amphibians, as a matter of fact. I merely use this example to show the slow, insidious effects of inflation on our wealth.
currency is worth. The less the currency is worth, the fewer goods and services a unit of the currency will buy. Inflation is when prices of goods and services rise, usually followed by a rise in wages. When all currency was based on gold, there could be no inflation unless new gold reserves were located. There seems to be a movement underway to return to the gold standard. So far, it has received little traction toward becoming law. Those who remember the high inflation of the late 1970s and early 1980s can recall when interest rates were in the high teens. Demand raced ahead of supply, and by 1980, the inflation rate had surged as high as 13.5%. By comparison, the inflation rate of 2.2% in 2017 is probably considered downright attractive! But inflation is still a wealth killer. We may tend to take it lightly because it is benign. “Three percent? That’s no big deal!” you might say. “That’s only three cents on the dollar!” We have already illustrated the power of a few pennies continually compounded over time in a positive way. Just reverse the
process and see the financial evaporation that can result from a few cents. The math does not lie. Just 3%, if not adjusted for, can seriously erode our financial independence in retirement. Just ask those who have been retired for 20 or 30 years if inflation has had any impact on the purchasing power of their fixed incomes. A Penny Saved… One way to counteract inflation evaporation is through thrift. If inflation is at 3%, then save 3%. As a financial consultant, I love the concept of saving money. Benjamin Franklin is one of my personal heroes. He is the one who coined the timeless proverb, “A penny saved is a penny earned.” If prices are outrageous, wait for a sale. Beat the system by clipping coupons. If you have a dollar-off coupon for something you truly need, it’s jackpot time! However, beware of shopping just for shopping’s sake. That just defeats the purpose. Saving isn’t always saving. One way not to fight inflation is to stockpile your money into certificates of deposit that are paying 1% or 2% interest when inflation is around 3%. Not only do you have a net loss of the
Why Do We Have Inflation? If you could lay your hands on a 1913 fifty dollar bill, you would find across the bottom of the bill these words, “United States of America Fifty Dollars In Gold Coin Payable to the Bearer on Demand.” All paper currency in fact, used to be backed by pure gold. Over time however, the dollar was taken off the gold standard. All links with gold were officially severed in 1971. Eventually, the value of paper money was more or less set by a designated agency of the government and measured by a more complicated formula based on the economy in general. The government has the authority to print money, but the more it prints, the less the Page 28
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difference, but if you add in the interest you could have earned with a more sensible and still safe investment, then you are taking two giant steps backward. Losing money safely is still losing money. Competent financial consultants will be able to point you toward defined accounts that have contractually guaranteed growth that will still pay you more than the inflation rate. A desirable feature of these accounts is the ability to move from one interest generating environment to another inside the product. Learning from Mistakes One financial consultant is reported to have told his clients following the 2008 market crash, “You have to remember, all boats sink some in a falling tide.” The couple had just gotten the news that 40% of their life savings had been virtually wiped out overnight. Money counted on for retirement was now blowing in the wind like a dandelion poof. The reverse side of the axiom was then uttered, “And when the tide rises, all boats rise with it.” Please keep in mind that these folks were on the verge of retirement. They could not afford the loss of that much of their life savings at so critical a time in their lives. That one-liner about tides and boats is both insensitive and untruthful. It is tantamount to a surgeon losing a patient on the operating table, and shrugging to the grieving family, “Well, you win some, and you lose some.” I am not in the medical field, so I cannot speak to what should and shouldn’t be done in the operating room. But as a trained financial consultant, I can tell you that the advisor could have taken measures that would have prevented the couple’s loss.
threatens to come ashore. These areas are largely empty of boats until a major storm is predicted. Until then, boat owners leave their vessels bobbing peacefully in the harbors and marinas for convenience. However, once the storm surge is predicted, the dry docks fill up fast. Huge cranes hoist heavy boats out of the water and place them on blocks. Forklifts move smaller boats to warehouses where they are stored indoors until the storm passes. Owners who fail to take such precautions may have their boats severely damaged by the storm, or perhaps lose their boats altogether – all because of either inattention or poor decision making. So it’s not true that what happens to one boat has to happen to them all. Likewise, money can be protected from loss by making the right decisions as to its placement and use. There is an old proverb that makes a great deal of sense. “Smart people learn from their mistakes; geniuses learn from the mistakes of others.” Wise financial consultants know how to position the assets of those nearing retirement so that they do not experience unacceptable losses. To knowledgeable and competent financial consultants who are trained in retirement planning, the very idea of you losing your retirement savings because of the volatility of the stock market is patently unacceptable.
Being caught on the wrong end of a stock market downturn simply means that we were not proactive enough with the handling of our monetary affairs. There’s no way of getting around the pure and simple truth that we made a poor decision, even if it was deciding not to decide. Being proactive in a financial sense simply means positioning yourself in such a way that you can’t be hurt. The secret of success in this regard involves the dividing of our money into different strategies, or different buckets, so that in case we happen to make a bad decision, it only affects some of the money. The rest of the money is invested where it is safe from loss, so we stay well above “C” level.
Staying Above “C” Level My father, who was a college professor, was an exacting man when it came to the academic performance of his children. “You want to know why people drown?” he used to say. “Because they didn’t stay above ‘C’ level.”
I live two hours from the Atlantic Ocean, and I know a little about boats and tides. The falling/rising tide illustration the broker used to explain away the sudden loss of the couple’s money is clever, but it just doesn’t wash. It suggests that we should just accept the rising and falling of an economic tide as something that occurs every few hours and can do no lasting harm. It is as if to say, “Oh sure, you lose a little when the tide goes out; but you gain it all back when the tide comes back in.” That wasn’t the case here. The loss experienced by these people was not usual and customary. It was devastating and preventable. Fitting that kind of loss into a falling/rising tide scenario would require the ocean to leave the harbor entirely, expose the ocean bed for miles, and then come back in at the rate of a few feet per day.
If any of the D’Arruda boys came into the house with a “C” on their report card, it was not going to be a pleasant evening. I had two brothers - one was two years younger and the other was four years younger than I. On the rare occasions when one of us did bring home a “C”, we quickly learned that there were no excuses that would fly. We knew never to use the excuse, “But everyone else got a “C” too.” There were a string of reasons my father used to invalidate that theory. We were quickly informed it was ridiculous to think that our test results and grades were inevitably bound to equal those of our schoolmates. My favorite line of his was what I later dubbed the “lemming rebuttal.” Lemmings have had the reputation for going off cliffs in droves ever since they were portrayed doing so in the 1955 Disney film, White Wilderness.
At the coast, there are boatyards that are used as dry docks when a hurricane
“Is your last name Lemming?” he would ask. “If everybody else jumped off a cliff, would
The Register | March-April 2018
you do it too?” The point did sink in that just because everyone makes a mistake, that doesn’t condemn you to imitating it. There was no definition for it in those days, but today, we call it “tough love.” My father was exacting because his standards for us were high. I learned to simply study my lessons and do my homework. That way, I was never surprised by a pop quiz or a hard test. I knew the material going in. Study hard and do your work, and the grades will take care of themselves.
Peter J. “Coach Pete” D’Arruda, CTC, MRFC Peter J. “Coach Pete” D’Arruda, CTC, MRFC is a Financial and Tax Coach. He is host of the nationally syndicated weekly radio show, The Financial Safari, as well as the author of four books, including “Fine Print Fiasco”, “Financial Safari, 7 Financial Baby Steps” and “Have you been talking to Financial Aliens?” Themes of these easy readers include helping others avoid being taken advantage of and translating financial jargon for any layperson. Contact: 919.657.4201 pete@capitalfinancialusa.com www.capitalfinancialusa.com Consumer Focus articles are available to IARFC members. You may view and reprint Consumer Focus articles at: www.iarfc.org/consumers/consumer-resources Page 29
Variable Annuities Have 3 Key Ingredients (NOT Just 2) Variable annuities (VAs) are not only the subject of great debate in our industry, but also widely-recognized as “bad investments”. Note: For simplification purposes, this article solely refers to VAs with lifetime living benefit riders (LBRs). Throughout my career, here are the most common responses I receive when discussing VAs with clients: “I’ve heard or read bad things about them.” “They have very high fees and lock up your money.” “[Insert Financial Guru] says they are bad investments.” VA Challenges Truth be told, VAs often get a bad rap for good reasons. Given my decades of VA experience and extensive analysis, I have learned that many investors (and even investment professionals) do not fully understand how VAs really work. In its simplest form, a variable annuity is a product that combines investment companies (which offer growth potentials) and insurance companies (which offer guarantees). However, because VAs offer “financial guarantees”, they are far from simple. Since VAs are among the most sophisticated and complicated financial products in the marketplace, they (understandably) create challenges for financial professionals. For example, when any financial professional chooses to offer a client the “financial guarantees” associated with a VA, here are some of the challenging requirements; • Maintain the proper state-specific securities license with a Broker/Dealer • Provide clients with the required VA information and prospectuses • Provide “best interest” documentation to explain why this VA is a suitable fit for the client • Provide client signatures on all VA applications and other VA suitability forms Page 30
• Obtain the necessary compliance VA review and approval • Ensure the delivery of the client’s legally binding VA contract The contract of a VA can also create challenges. The only way to enforce the various “financial guarantees” offered by a VA is through a legally binding contract. These VA contracts usually contain volumes of pages, crafted by seasoned attorneys, covering a multitude of sophisticated details, moving parts, and disclaimers. Another challenge for financial professionals is providing clients with the best possible VA education. When it comes to complex products like VAs, our industry is constantly seeking the most effective and efficient ways to train, market, and sell their features and benefits (aka key ingredients). This can create the potential for financial
professionals to misrepresent VAs, and for clients to misunderstand them. Two Most Popular Key Ingredients Most financial professionals and clients choose a VA for two common key ingredients: Key Ingredient #1: Guaranteed lifetime income that never runs out. Key Ingredient #2: Guaranteed lifetime income that never decreases But… This 3rd Ingredient is KEY I think it’s fair to say that most of our clients like the concept of annual income that never stops or decreases. This concept is also very helpful for designing retirement income plans. However, I have learned there is an all-important third ingredient that simply cannot be overlooked or ignored: The Register | March-April 2018
Key Ingredient #3: The potential for the VAs assets and income to grow over time. If you take away anything away from this article, I truly hope and pray it is the following: Our primary focus should not be on whether our clients are invested in stocks, mutual funds, managed/advisory accounts, or VAs. Rather, our primary focus should be on making sure our client’s wealth is being managed by a product, and with a plan, that has the potential to outperform their annual income and fees. Arguably the #1 reason most choose a VA is their ability to transform retirement monies into an “investment pension plan”. In fact, do you ever wonder why VAs have higher fees than other investment options? It’s because no other investment provides the potential for growth - assumes the risk of large losses, and yet still guarantees a steady stream of income for as long as you shall live (yes, even in the event your VA account value drops to zero). Obviously, this kind of income protection and peace of mind cannot be free, right? However, I believe it is equally imperative that our client’s wealth and income increases over time. Why is this so important? Because our client’s need to keep pace with things like: • Inflation • Healthcare costs • Income and/or estate tax increases • Spousal income replacement needs • Long-Term Care planning • Legacy and estate planning The VA Product is KEY The financial collapse of 2008-09 significantly reduced the number of VA companies and products in the marketplace today. Nevertheless, there are still many companies that offer VAs, and also a wide variety of lifetime LBRs. Therefore, it is critical to understand exactly how the investment options really work within each VA and accompanying LBR. The main reason this is vitally important is because most VAs have (on average): • Guaranteed lifetime income (varies with age) = 5% per year • Fees (varies with VA and LBR) = 3% per year • Long-term growth needed to experience increasing wealth and income = 8%+ per year As you can see, the investment options of any VA must have the potential to grow more than The Register | March-April 2018
8% per year on a long-term basis. Therefore, these are just some of the key questions we should be asking before choosing any VA (assuming a lifetime LBR is also chosen): • Exactly what are all the VA investment options available? • Does the VA have any investment restrictions? If so, how do these restrictions work? • Does the VA require a certain percentage of bond-related investments? If so, how much? • Does the VA require the use of “model portfolios”? If so, how do they restrict the investment options? • Can the VA change your client’s investment allocation without their prior knowledge or consent? • Are the VA fees charged on your clients “guaranteed/protected income amount” or the actual account value? • What is the long-term performance of all investment options and/or model portfolios? The VA Plan is KEY Most VAs are non-discretionary investments. According to http://www.businessdictionary. com/definition/non-discretionary.html, the definition of “non-discretionary” is; “Not subject to or influenced by someone’s discretion, judgment, or preference.” Essentially what this means is that financial professionals do not have the authority to make any VA investment decisions without prior written or verbal consent from our clients. To use an analogy, financial professionals are merely the “co-pilot” of a VA – and our clients are the actual pilots. Therefore, it is our clients who maintain complete control over their present and future VA destination. Nevertheless, I firmly believe discretion should never restrict our efforts to help our clients achieve their VA investment goals and objectives. Why? Because most clients purchase a VA with the assumption that their financial consultant will be offering their professional investment advice and/or recommendations. Therefore, to help ensure our clients VA plan is successful over time, part of our job should be regularly; • Reviewing their VAs investment options and performance • Monitoring their VAs “guaranteed/ protected value” versus their actual account value
• Ensuring their VA investment options are coordinated and integrated with other investments • Offering investment guidance and/or recommendations • Sharing our current and future stock market outlook To determine if a VA is suitable, here are the three key ingredients to consider: 1. Income that cannot run out. 2. Income that cannot decrease. 3. Income that can grow over time. The first two key ingredients are guaranteed by the legally binding contract of a VA — not by any financial professional. However, the third key ingredient requires owning the most suitable VA product and implementing the best possible long-term investment plan. This is a fitting example of why our clients need our professional support and expertise. One the primary reasons our clients entrust their hard-earned wealth to us, and we have the privilege to serve them, is because we put forth the necessary time and effort to properly educate, empower, and equip them for life’s most challenging money matters — such as variable annuities.
Christopher P. Hill, RFC® Christopher P. Hill, RFC®, is the President of Wealth and Income Group LLC, with multiple branch offices in Virginia. Chris began his 28-year career in the financial services industry by spending his summers as a college intern for a major stockbrokerage firm. After graduating college with a B.S. in Finance, he spent over a decade working with the Senior Portfolio Manager of a leading money management firm. In 2001 Chris formed his own company with a primary focus on wealth management. Contact: 540.685.4321 chris@wealthandincome.com www.wealthandincome.com Page 31
From Scratch to Millennial Millionaire into clients. Obviously that process takes much more time with lower conversion ratio’s than calling your buddies from high school. As far as where to network, I do find it easier to get involved with associations or affinity groups that don’t have such a great exposure to financial professionals, immediately making your service scarce. Even if you do feel like it was a wasted event with little future potential, chalk it up as a honing of communication skills and an addition to your amount of public facetime. This is no different than missing every shot in a pickup basketball game, but accepting that least it was a good workout. So, embrace the adversity and enjoy the journey of meeting strangers. There is nothing more gratifying than thumbing through a big client book and saying, “How the heck did I meet this guy?”
“A candle loses nothing by lighting another candle” — James Heller
There are a multitude of “un’s” a newbie may use to describe a career in financial services — unfair, unpredictable, unforgiving, unsupported, unhurried, and perhaps unenjoyable. Yet if a recruit talks with any seasoned veteran, he/she is sure to hear of a career providing unthinkable impact, independence, and income. In this gap between unsatisfied rookie thinking of quitting (we’ve all been there) and unshakable old-timer lies a paradigm shift, one required to achieve a career of fulfillment. This shift is a recognition of the fact that we are salesmen, lifelong salesmen. In light of said observation, I am excited to share with you the exact skills and exercises which catapulted me from broke college kid Page 32
with no “natural market” (that term sound familiar?) into a thriving financial consultant. 1. Network The biggest gripe I hear about this is, “Well I went to the chamber last night, but there were 10 other Financial Advisors and I haven’t scheduled an appointment with anyone else yet.” That’s ok, keep going. With every insurance and wirehouse out their teaching newbies to make their “Target 200 List” or other natural market approach, it’s easy to get lured into a false sense of security that you simply pick up the phone and create clients. Networking is defined by transitioning strangers into acquaintances, acquaintances into prospects, and prospects
2. LinkedIn Senior consultant have often said to me, “Back in my day we had to go knock on doors, you kids got it lucky”. Yes we do! Every morning I check my LinkedIn invites and reach out to a few more common connections. I add a personal note to each invite to cut through the clutter. Once connected, I’ll check out their contact info to follow up with a phone call and/or e-mail asking to grab coffee and talk shop. If now’s not the right time I’ll ask if they can be added to my monthly newsletter recipient list. A few minutes each day has built a tremendous catalogue of prospective clients. LinkedIn is especially ideal for connecting with fellow professionals. 3. Facebook With over 1 billion users, there may not be a better channel to stay in front of people. Facebook has single-handedly become my tickler file, automatically reminding me who to wish a happy birthday, congratulate on nuptials, kids’ events, new jobs, etc. This is also your chance to show clients your human side which, you’re not the intimidating suit on TV dreaming of dollar signs, but also a normal Dad, Husband, or Mom with hobbies and a sense of humor. If you don’t know what markets a client can refer you into, check out their profile for a full breakdown of friendships and relationships. The Register | March-April 2018
4. Write and Speak Authorship is not for everyone, nor is public speaking, but if these arts are a pastime of yours take advantage of it. There is an immediate sense of credibility, warranted or not, that goes along with being published or standing on a stage. Many doors have opened just by referencing my book, even if the other party has never read it. There’s only so many times you can call a referral, and only so many hours in the day to chase prospects. Airing out a piece of your mind through a book or podcast instantly gives the public an opportunity to choose to tune into you. Writing is a unique opportunity to speak intimately with many, while not saying a word. These articles and videos can then become professional content to round out an otherwise ordinary Facebook or LinkedIn profile. As consumers crave speed and ease of transaction (i.e. Amazon), it’s critical for us consultants to cater to such behavior. Leveraging social media, word of mouth, brand development, and networking can create a smooth delivery mechanism for your financial education. This is the key to unlocking the dynamic duo of shared knowledge with confidence that provokes positive action. Now go do what works for you, do lots of it, and don’t unthink it!
RFC® Note Cards
Use the RFC ® Note Cards for quick personal Thank You notes. Order your RFC® Note Cards, packages of 25, $15 plus s&h, quantity pricing available Attractive, formal note cards. White exterior with RFC® logo in dark blue. Blank inside allows for handwritten
Bryan M. Kuderna, CFP® Bryan M. Kuderna is a CFP®, LUTCF with Kuderna Financial Team. He is a perennial qualifier for the industry’s prestigious MDRT, Leaders Club, and Inner Circle. He is the author of the best-selling book, “MILLENNIAL MILLIONAIRE — A Guide to Become a Millionaire by 30”. Bryan has a Bachelor of Science in Finance and Economics from The College of New Jersey. He has also studied at The University of Tampa and The University of Economics in Prague, Czech Republic. Contact: 848.456.3057 bryan_kuderna@planningalliance.com www.kudernafinancial.com
notes. The back side of the card displays the IARFC Code of Ethics. Envelopes have gold foil on the inside flap. 6.5” wide x 4.25 length folded. Visit the IARFC store for these valuable branding tools. store.iarfc.org or contact 800.532.9060, info@iarfc.org
IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS
The Register | March-April 2018
Page 33
IARFC Viewpoint: We Are Already There The Register taps into the experience and viewpoints of the IARFC Board. They come together from different backgrounds, with different goals and expressing different opinions. The constant is the respect and dedication given to their commitment to the IARFC.
Start with the Basic Premise The trends that should concern the Registered Financial Consultant start with a very basic premise-people are living longer. So what are the shortfalls in your clients’ current goals and objectives if they live longer? In the past, people didn’t think they would live into their 90s. Statistics prove that a couple at age 65, one in every two people, will live to be 91 years of age. 50% of those will live to be 95 years of age and 5% of those will live to be 100 years of age. Our challenge question to this increased aging solution-will our clients outlive their income? Most people are aware they need to do something about their future financial planning but are afraid they do not have enough knowledge. They depend on their consultant for advice. What we know is there will be corrections in the market and our clients want to know how this will affect them. In the downturn are they positioned to survive it? We are prepared for these challenges and we enjoy figuring out solutions to challenges like the everyday questions and concerns asked by our clients. Our philosophy at R&R Group utilizes the approach to allocate funds into a bucket plan approach based on our clients’ risk tolerance, time horizon, and most importantly their goals and objectives. The bucket plan approach allows specific buckets, to be turned on at the appropriate times with an inflation hedge built into some of the buckets. This allows for flexibility and protection. Additionally, to address the living longer premise, it is important to present the long term or critical care coverage as part of their overall portfolio. Regardless of their health conditions there are ways to get this protection, thus allowing better protection of other assets that could be better protected for their lifetime. Adjust to the New Tax Rates. We know the new tax rates. We do the same in 2018 as we did in 2017- address the tax laws in force at the time. The tax brackets are out of our control, we can only operate on what we can control. My job and every other consultant’s job is to assist the client in the staying in the same or into a lower tax bracket if possible, mindful not to bump them up into a higher tax bracket. In the clients’ retirement years, the three most important people they will interact with are: Page 34
1. A financial advisor 2. A tax person for tax advice 3. A Trust attorney for their estate planning documents; like their Will and Trust. Almost always, in this scenario, one of these advisors will want to be the point person. In our office we have two attorneys; we own a tax practice along with RFCs. We collaborate together as a team - The Financial Consultant, the Tax Advisor and the Trust Attorney for the client’s best interest. Get out of Debt Our consultants at R&R work hard to reduce and/or get rid of debt. Investing is always easier for one’s future when not in bondage to creditors. Most consultants use some type of a fact finding tool and in our office, we use our “financial inventory sheet”. This is our tool to help us determine the clients’ income, debts, assets, but most importantly their goals and objectives. From this we can reach a common benchmark to start one’s plan and to identify any shortfalls we can address. No one has the same financial circumstances and it is our commitment– not to turn anyone away. The DOL – No Issues Speaking personally, our firm is already on board and adhering to the fiduciary responsibilities. Our RFC© designation holds us to a fiduciary standard and we go forward knowing the DOL regulations will make the surviving consultants that much stronger. To enhance my own personal status, the RFC© has vetted me through their Ethics Approved Program – an additional scrutiny and proof of my ethical background. Embrace Change Embrace change rather than fight it. Most likely there will be changes under the Trump administration. Prepare for it. Rather than think” it does not affect me” or “I will wait until it happens” and then deal with it, prepare for how these changes may affect you. More importantly, meet this challenge. Work through the changes to better meet your clients’ goals and objectives. Follow Your RFC© Role As RFCs, we no longer provide just one service. Our goal is to be of total service – that is where I believe the role of a
consultant is for the future. The Future is NOW! In my practice we look at every aspect of a client’s financial picture, which could include retirement planning, life insurance, tax strategies, auto and home owner insurances, wills, trusts, LTC/Chronic Critical Care, exit strategies and more. We offer comprehensive plans, following clients’ budget needs, detailing how to deal with possible shortfalls, helping them to achieve their ultimate goals for both short and long term. More importantly, we focus on making our clients’ plans flexible to accommodate unexpected changes they may encounter. We are already there working to meet what the future brings. There are some things our clients may need to do by themselves, but they do not have to be alone as we are here to help them prepare for these challenges. You need to be the Change!
Rick B. Stanzione, RFC® Rick B. Stanzione, RFC®, President & CEO R&R Group, Inc. Rick is responsible for the day to day operation our 30 million dollar company. I have a specialty in the securities arena with regards to retirement planning using custom made strategies to assist our client in working toward being independent and rather than dependent in their retirement years. We also offer other financial services with our sister companies to include Business Insurance, Personal Lines Insurance, Accounting & Tax Services and exit strategies for business owners. Contact: 801.662.5774 rstanzione@rrgroup.org www.rrgroupinc.net Rick B. Stanzione, Registered Representative of ELE Wealth Advisors, Inc. Securities offered through ELE Wealth Advisors, Inc. (EWAI). Member FINRA. R & R Group, Inc. is not affiliated with EWAI. The Register | March-April 2018
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