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Volume 17 No 6 November-December 2016

Stephanie Bailey, RFC

®

Transitioning with Understanding

Official IARFC Publication www.IARFC.org

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

IN THIS ISSUE 10 Secrets to Affordable Advertising Which Stock Market Do You Follow? International Update


Ethics Approved

IARFC Code of Ethics Brand Your Ethics Approved Status Set yourself apart from other consultants • Affix your Ethics Approved Seal to your framed RFC® Certificate • Send an IARFC Ethics Approved media release to your contacts • Order business cards with the Ethics Approved Seal • Place digitized Seal on your website in a prominent position • Mention this program in client newsletters • Order additional Ethics Approved Seals as a visual reminder • Display the IARFC Code of Ethics plaque in office • Put a link to the IARFC Code of Ethics on your website Visit the IARFC store for these valuable branding tools www.IARFC.org/Store or contact 800.532.9060, info@iarfc.org

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS


DOMESTIC BOARD OF DIRECTORS Chairman, H. Stephen Bailey, LUTCF, CEBA, CEP, CSA, RFC® CEO, Edwin P. Morrow, CLU, ChFC, RFC® Vice Chairman, Nicholas A. Royer, RFC

Director, Isabel J. Cooper, MBA, RFC® Director, James B. Moss, CEP®, RFC® Director, Angie D. Trandai, CFP®, RFC®

®

www.IARFC.org/Register 1046 Summit Drive Middletown, OH 45042-0506 800.532.9060

Director, Mayo M. Woodward, CRPC®, RFC®

President, Peter J. D’Arruda, RFC

®

Editor-in-Chief Wendy M. Kennedy editor@iarfc.org

Treasurer, Jon M. Rogers, Ph.D., CLU, ChFC, RFC®

Editor Susan M. Cappa susan@iarfc.org

Secretary, Michelle Blair, RFC®

Editorial Advisory Committee

INTERNATIONAL LEADERS

Peter J. D’Arruda, RFC®

Asia Chair, Jeffrey Chiew, DBA, CLU, ChFC, CFP®, RFC®

India Deputy Chair, Vijay S. Wadagbalkar, RFC®

China Development Organization (IMM) (China, Hong Kong, Macao & Taiwan), Liang Tien Lung, RFC®

Indonesia Chair, Aidil Akbar Madjid, MBA, RFC® Malaysia Chair, Ng Jyi Vei, ChFC, CFP®, RFC®

Australia and New Zealand Chair, George Flack, CFP®, FIPA, AFAIM, RFC®

Pakistan Chair, Zahid Khan, RFC®

Bermuda Chair, Antony Francis, RFC®

Philippines Chair, Ralph Liew, RFC®

China Chair, Kai Tu Yuan, RFC®

Taiwan Chair, Richard Wu, RFC®

Hong Kong and Macau Honorary Chair, Samuel W. K. Yung, MH, CFP®, MFP, FChFP, RFC®

Trinidad Chair, Inshan Meahjohn, RFC®

INTERNATIONAL WEBSITES

IARFC US OFFICE ASSOCIATE TEAM

China — www.iarfc.cn

Membership Services, Vicki Caplinger

Hong Kong — www.iarfc-hk.org

Operations Manager, Charlotte Isbell

India — www.iarfcindia.org

Public Relations, Susan M. Cappa Editorial Coordinator, Wendy M. Kennedy

Philippines — www.iarfcphils.org

IT, Randy Kriner

Taiwan — www.iarfc.org.tw

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

The Register | November-December 2016

The Register is published by the International Association of Registered Financial Consultants ©2016, It includes articles and advice on technical subjects, economic events, regulatory actions and practice management. The IARFC makes no claim as to accuracy and does not guarantee or endorse any product or service that may be advertised or featured. Articles, comments and letters are welcomed by email to: Wendy M. Kennedy editor@iarfc.org

Hong Kong and Macao, Chair, Teresa So, Ph.D., MFP, RFP, FChFP, RFC®

Indonesia — www.iarfcindonesia.com

Michelle Blair, RFC®

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 service to this dedicated audience. To advertise contact: 309.483.6467 advertise@iarfc.org www.iarfc.org Page 1


New IARFC Members Domestic Members

International Members

Kenneth L. Agee, RFC®, LA Bryanna Andrews Partsch, RFA®, FL Dennis J. Arietta, RFC®, CA Earl R. Borders, RFC®, OH Terry R. Coapstick, RFC®, FL Peter J. Gauthier, RFC®, FL Craig J. Horvath, RFC®, IL Edward Krakovsky, RFC®, GA Laura R. LaBarbera, RFC®, TX Eric Mangold, RFC®, NJ Bradley K. Maples, RFC®, UT Joshua G. Marcum, RFC®, TN George A. Marwieh, RFC®, TX Jerry W. Michael, RFC®, OH Kenneth John Russo, RFC®, CA Brandon Setlock, RFC®, FL Travis Michael Sherman, RFC®, AL Robert J. Shlesinger, RFC®, GA Peter Silvis, RFC®, NJ John M. Sklencar, RFC®, PA

Taiwan 13

Members Who Recommended Members Les Anderson, RFC® Don Moore, RFC® Stephen Oliver, RFC® Thomas Patston, RFC® Rick Stanzsione, RFC® William Watson, RFC®

Member Referrer Recognition

Lester Anderson, RFC ®

Stephen Oliver, RFC ®

In Memoriam In reverence, we would like to remember our passing member(s): Robert Gerald Williams, RFC®, Duluth, GA

Events Calendar 2016 November Loren Dunton Memorial Award Nominations close November 30, 2016

Journal of Personal Finance 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

December Board of Directors phone conference December 13, 2016

IARFC Blog: http://iarfc.org/iarfc-blog Contact susan@IARFC.org for assistance with IARFC Blog

2017 March

Join the IARFC on LinkedIn

Board of Directors March 14 – 15, 2017 Charlotte, NC

Contact editor@IARFC.org for assistance with IARFC LinkedIn

2016 Loren Dunton Memorial Award Presentation March 30, 2017| Utah Valley University, Orem Utah Page 2

Follow us at Facebook.com Contact editor@IARFC.org for assistance with IARFC Facebook The Register | November-December 2016


In This ISSUE

Volume 17 No. 6

Cover Story

Columns

Register Cover: Stephanie Bailey

Chairman’s Desk

22 Transitioning with Understanding

Features 10 Secrets to Affordable Advertising 9 By Paul Mallett

IARFC Group Insurance Available 10 By Susan Cappa

6 By H. Stephen Bailey

Marketing Unplugged 15 Helping Clients Leave Their Financial Footprint By Bryce Sanders

Consumer Focus 31 It's A Jungle Out There… By Peter D’Arruda

To Comment or Not To Comment… 34 Let’s Talk Politics By Jon M. Rogers

Which Stock Market Do You Follow? 12 By Christopher Hill

The Value of Association Membership 18 By Michelle Blair

International Update 20 By Kai Tu

The Reality of Planning and Preparing for the Family Members Left Behind 26 By Michelle Blair

Departments 1 IARFC Domestic and International Directors

2 New IARFC Members 2 Events Calendar 4 From the Editor 5 Register Round Up

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

The Register | November-December 2016

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From the EDITOR The editorial theme this issue is Legacy. Our Editor, Susan Cappa did not fall short, our delving right in with Register Profile Stephanie Bailey, RFC® and questions that pull the true story and heartfelt answers. (p. 22) As this year comes to a close, the editorial staff plans for the future as well. We were so pleased with the Editorial Calendar format from this year that we started working on the 2017 version in September. The response of the membership participating in the cover stories and in the inside sections of the Register have been quite pleasing. The Comment or Not Comment… section from the IARFC Board has been received well. This coming year we are continuing a Board column with the theme of Current Events. We are looking forward to growth and original articles that will help the IARFC professionals grow their practice. Below you will find the themes of the upcoming calendar.

Wendy M. Kennedy, Editor-in-Chiefr the Register

the REGISTER, Editorial Calendar 2017 Issue

Theme

Possible Topics to be Covered

January/February

Ethics

Importance of Being Ethical IARFC Ethics Approved Program Ethics in the Mind of the Consumer

March/April

Building Business with Referrals

Secret of Obtaining Referrals Making the Most of a Referral What Makes a Consultant Referable Material? Networking with Business Connections.

May/June

Value of Membership Connection

How a Member Can Make a Difference Value of Belonging to an Association Where the IARFC Should Be Headed, Future of the Industry

July/August

Continuing Education

Why Continuing Education is Important Keeping Track of CE The Value Function of Academic Journals

September/October

Insurance

Role of Insurance in Financial Planning Using the RFC® Designation in Insurance Marketing Determining Client’s Insurance Needs

November/December

Communication

The Written Word – How Has It Changed In Marketing? Branding Through Writing The Good and Bad of Utilizing Social Media

Issue

Copy Deadline

January/February

November 1

March/April

January 1

May/June

March 1

July/August

May 1

September/October

July 1

November/December

September 1

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IARFC 1046 Summit Drive P.O. Box 42506 Middletown, OH 45042 800.532.9060 • editor@IARFC.org www.IARFC.org/Register

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

The Register | November-December 2016


Round Up IARFC Members and Financial Industry Experts were asked for their insight and advice on issues facing consultants in today’s economy. Note: Responses are printed in no particular order.

Q: How do you stay in touch with your clients? Are regular, meaningful communications still a foundation to build relationships? Do you send personalized notes? A: The old adage, “Out of sight, Out of mind” applies here. Keeping the lines of communication open in every relationship, be it business or personal, can only improve with regular contact. Your clients will eventually begin to expect a message from you in different forms — email, regular mail or phone. Getting in touch for no reason at all, just to say hi, could open the door to something that they have been meaning to address with you. Reaching out to them before they reach out to you, avoids issues and keeps you on the top of their minds for when the need arises. Michelle Blair, RFC® Farmingville, NY By every means possible! We have a weekly short email, a monthly long email a quarterly email, a yearly lecture, a recap for the past year and what the next year looks like; and at least once a year, a face-toface review meeting. H. Stephen Bailey, RFC® Charlotte, NC

Staying in touch is an art. It applies to both prospects and clients. The object is to be “top of mind”. Years ago, managers passed along two excellent rules; 1. People feel they are getting good service if they are contacted (touched) 6+ times annually. Contacts must be meaningful. 2. Everyone has a preferred communication channel. Learn which gets their attention. In my business I use a combination of: a) Quarterly personal letters — since email replaced surface mail in many cases, physical letters stand out; b) Emails — it’s a handy way to share article links; c) Phone calls — usually monthly. The bottom line – Client or Prospect, if they see your name and it’s not intrusive, you are top of mind. Bryce Sanders New Hope, PA

The Register | November-December 2016

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From the

Chairman’s Desk… Are You Ethically Approved? While we, as financial professionals may overlook the simplicity of the question – it is not our perspective that counts. It is what your prospects and your clients want to know most. To reassure these stakeholders, we developed a conscientious program that backs your RFC® designation with a clean history and record. Starting in September, we began scrutinizing member renewals and awarding our Ethical Seal of Approval to those meeting our criteria. How is this endorsement helpful to you as an RFC®? It is one more arrow in your quiver as you target your marketing and branding. Apply the Seal to your RFC® Designation Certificate. Purchase an IARFC Code of Ethics plaque from our store and display it prominently. Make your prospects and clients aware that ethics is a #1 priority in our business and your practice. Importance of Academics The Fall edition of the Journal of Personal Finance was recently released and is available for download or purchase. The Journal presents information with facts, figures, graphs, charts and in depth research — in contrast to the Register that mulls it over and hands it down for practical application in the day-to-day world. We feel it complements the Register as a publication benefit to our members with its academic viewpoints. Visit www.journalofpersonalfinance.com Legacy – Professional and Personal Our November/December Register theme is Legacy. First, I want to hash out once again the Legacy that defines our Association. I keep going back to the fact that we are CONSULTANTS — professional people doing professional work. I am determined to stay on track with the mission of the IARFC by adhering to our roots and promoting our designation as Registered Financial Consultants. The MRFC or Master Registered Financial Consultant will enhance this status quo – measurably. That is why we are working hard to get it finalized in 2017. As for a personal Legacy — I feel a commitment to help any young person who is working in financial services. On my own journey up the ladder, I had many unselfish mentors – people who took their time to show me what they were doing and how they were doing it. I knew I could call on Page 6

these experienced professionals for advice anytime. That is what I will be doing for my daughter and for any young person in need of mentoring. If I help my daughter to succeed, then I help my grandson etc. After all is said and done, the Legacy we leave is our most cherished gift to family, friends and colleagues. Dunton Award Nominations We are looking for another professional to honor with the Dunton Award for 2017. Loren Dunton was the person who set up the present financial system that we utilize for our clients. Obtaining the award means you are considered tops in our industry. Nominations close on November 30th so be sure to fill out the form and send in your suggestion. Throwing Down the 2016 Gauntlet To the Members – finish what you started at the beginning of this year. Have you delivered on your promises to your practice, your clients and your family? Start drawing up plans to make 2017 a year of improvement and call the IARFC Team for ideas on how to better utilize member benefits. Make an appointment to take the MRFC exam. To the IARFC Board and Support Team – finish tidying up the loose ends. The past six months have been a monumental change of direction and an organizational challenge. As I look back to April of this year, we have significantly revamped our focus. The meetings with the Board Directors scattered all over the country and our

dedicated Team in Middletown are enjoyable and are instrumental in carving out a new direction. I will continue to challenge them to give the IARFC their best! As a Southern euphemism charmingly expresses – the horses are ready to go but not hitched up. My job is to get us going and make 2017 a year of extreme progress and forward strides. 

H. Stephen Bailey, CEBA, LUTCF, CEP®, RFC® H. Stephen Bailey, “Steve” Bailey, CEBA, LUTCF, CEP®, RFC® 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 The Register | November-December 2016


The Loren Dunton Memorial Award Call for Nominations The Award is made, in honor of the founder of the financial planning profession, Loren Dunton, to a person who has made a substantial contribution to the financial services profession and/or the financial interests of the public. Generally regarded as the father of financial planning, Dunton organized financial professionals in the late sixties. With their help he created the financial planning movement — including the formation of associations, magazines, colleges, university programs and foundations. Some persons believed that “planning” was totally separate from the “sale” of insurance and investment products, but Dunton always recognized that they were but different roots of the common tree, and that products are necessary elements in the implementation of the financial plan. Dunton was able to use his experiences to frankly explain what all of us now recognize. Having been a successful businessman, although never a financial advisor, his comments were obviously from the heart. Dunton realized and publicly espoused that salesmanship be taught by the managers and trainers of the financial services industry, and that the ethical sale of financial products and the delivery of competent advice is a very noble calling. In 1969 Loren Dunton convened a group of financial professionals in Chicago and founded an industry of outstanding service and commitment. From this event and from Loren’s leadership and interactivity with many persons now in the IARFC, such as Vernon Gwynne and Ed Morrow, would come an educational institution, the College for Financial Planning, and the personal financial planning curricula now taught on over one hundred campuses. As the first editor of Financial Planning magazine Loren helped to publicize an emerging profession, bringing various practitioners together to a common cause, sharing practice and marketing techniques and promoting ethical conduct. That respected magazine has continued, contributing to the profession for thirty years. Two associations came initially from this effort, the International Association for Financial Planning and after the first class of Certified Financial Planners graduated in 1973, the Institute of Certified Financial Planners. These organizations have since merged to become the Financial Planning Association. Using Loren’s model, more than forty countries have formed similar organizations. Loren continued to promote the value of the financial advisor as a professional whose quest for knowledge should never cease. He authored seven books that have helped to shape the careers and services of financial advisors. Loren’s commitment to these principles was evidenced in the Institute for Consumer Financial Education that he nurtured for many years, and which earned a Presidential Citation for public service. It is in Loren’s tradition of recognizing the value of professional advice and service that the IARFC presents the Loren Dunton Memorial Award to persons who have made a significant contribution to the financial services profession and to the public. Page 7

Criteria for the Dunton Award Candidates must hold a professional designation (i.e. ChFC, CFP®, CLU, RFC®, CPA/PFS, CEBS, MSFS, MSFM or Doctoral degree) and must have disseminated their comments by having been widely published on financial topics in articles, journals, books, etc. They must have provided outstanding personal service or leadership in the financial services industry. Nominees must have participated in some aspect of financial education, to the public or to other members of the profession. Candidates must have demonstrated effectiveness in carrying the message of responsible financial stewardship to the public, and naturally they will have high ethical and professional standards. Their career must be a support of Loren’s mission, “to help people do a better job of spending, saving, investing, insuring and planning for the future, in order to achieve financial independence. 2017 Nomination Committee (2010 Recipient), H. Steven Bailey, LUTCF, CEBA, CEP, CSA, RFC® (2014 Recipient), Lester W. Anderson, MBA, RFC® (2006 Recipient), Bill Carter, CFP®, ChFC, CLU, RFC® (2005 Recipient), Ed Morrow, CLU, ChFC, RFC® (2016 Recipient), Jerry Mason, Ph.D. (2015 Recipient), Jon M. Rogers, Ph.D., CLU, ChFC, RFC® The Register | November-December 2016


Nominees for the

2017 Loren Dunton Memorial Award You may use this form to nominate a recipient for the Loren Dunton Memorial Award, presented annually to a person who has made significant contributions to the financial services profession and to the public. This form may be supplemented with additional information of your choosing. Nominations close on November 30, 2016 Nominee Name: _____________________________________________________________________________________ Nickname: _____________________ Address: ___________________________________________________________________________________________________________________ Phone and email: ___________________________________________________________________________________________________________ Professional designations: ____________________________________________________________________________________________________ Current position/title: ________________________________________________________________________________________________________ Firm/organization/institution: __________________________________________________________________________________________________ Positions of responsibility in associations, etc: _____________________________________________________________________________________ ___________________________________________________________________________________________________________________________ How has this person benefited the general public? ________________________________________________________________________________ ___________________________________________________________________________________________________________________________ How has this person benefited the profession? ___________________________________________________________________________________ ___________________________________________________________________________________________________________________________ Publishing credentials: _______________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________ Speaking and/or teaching credentials: __________________________________________________________________________________________ ___________________________________________________________________________________________________________________________ Nominator Name: ______________________________________________________________________________________ Nickname: ____________________ Address: ___________________________________________________________________________________________________________________ Phone and email: ___________________________________________________________________________________________________________ Mail this form to: IARFC Loren Dunton Award Committee c/o staff liaison, Wendy Kennedy International Association of Registered Financial Consultants P.O. Box 42506 Middletown, OH 45042

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The Register | July-August 2016


10 Secrets to Affordable Advertising Marketing is more than advertising, but a good marketing plan almost always includes advertising. Webster defines advertising as “the action of calling something to the attention of the public, especially by paid announcements.” The key word is paid. Now, I don’t know about you, but I don’t like parting with any more of my hard-earned cash than necessary. But, sometimes it is necessary. Sometimes we have to invest in paid advertising, and if we’re smart about it, we’ll see a decent return on that investment. The best way to see a positive return is to avoid overspending, and here are a few other suggestions that should help you get the greatest results: 1. Share ad costs with another noncompeting business or referral partner. You can include links to each other’s websites on your own website, split the cost of a direct mail piece, or share a booth at a local trade show. If your referral partner isn’t up to it, ask a local trusted supplier. 2. Reduce the size of your print ads or length of your radio spots. It's generally better to get your message in front of your target prospect daily with a small ad, than monthly with a big, flashy one. 3. Run your ads during off hours or in unusual locations. Quite often, your message will still be seen or heard by your target market and for a lot less cost. 4. Establish positive relationships with your local ad sales reps for newspapers, radio stations, magazines, etc. Persuade them to alert you of last minute deals. You may have to pay full price from time to time, but do it just enough to stay on their “hot list.” However, you must be ready to act quickly when an opportunity presents itself. 5. Don’t overlook the classifieds. As long as you do it consistently, classified ads can draw as many prospects as more expensive ads. It’s all about consistency and persistency! 6. Concern yourself less with the style and aesthetic of your ad and more with the message. Remember: You’re in this to generate sales, not win design awards. The Register | November-December 2016

7. Consider running an editorial style ad. They’re the ads that look like stories in a newspaper or magazine, but are marked "advertisement" in small print. These ads typically draw far more eyes than other ads of similar size. A good headline is critical for this approach, so take time to get it right.

consistent, persistent, and multi-channeled in your efforts. Invest, but invest wisely. Sound familiar? 

8. Consider pay-per-click advertising with search engines like Google AdWords and Yahoo! Sponsored Search, or social media sites like Facebook and LinkedIn. Done well, the value is terrific and can be targeted precisely to your niche. 9. Deliver your message wherever you go. Put your agency name on a customized license plate, license plate frame, or window decal. It’s easy to do this tastefully and affordable these days. 10. Set aside a portion of your advertising budget for surprise opportunities or current events that may trigger interest in your agency. Most insurance agents and financial consultants have no idea how much time and effort they need to spend on marketing when they get into the business; not many entrepreneurs do. It’s critical to have a plan. Know your goals. Set a budget. Be

Paul Mallett, RFC® Paul Mallett, RFC®, is a Senior Vice-President and Chief Operating Officer of Postema Marketing Group, an independent marketing organization providing product support and business consulting services for independent insurance agents and advisors. In addition to his growing personal practice, Paul is a regular blogger, speaker, and business coach and contributes to a variety of industry publications and social media platforms. Contact: 419.852.8817 pmallett1980@gmail.com www.pmg1.com Page 9


IARFC Group Insurance Available

Insure What Matters Most… Assuring the stability of you and your family’s welfare is imperative. Protection against life’s challenges is a responsible part of your financial preparedness. Obtaining coverage for emergencies, illnesses and disabilities is giving yourself and your loved ones the safety net they need to continue life on a forward track. To that end, the IARFC is partnering with The Standard Insurance Company and Michael Insurance Planning Company to offer Life, AD&D and LTD for IARFC members and their families. Eligibility is based on a current membership with the IARFC. Key benefits include: • H  ighly affordable premiums with core coverage • Guaranteed Issue/no medical or financial underwriting • Designed for consultants with competitive premiums • Travel benefits and employee assistance programs Page 10

These benefits are especially attractive to anyone who has a medical condition that would prevent them from buying their own insurance at a standard rate. The group rates are at least 10% cheaper and you can obtain insurance for your spouse and children at very competitive rates.

help people achieve financial wellbeing and peace of mind.” Standard was chosen after a competitive bid process. It is a specialty, out of the ordinary as most companies do more background checking and do not offer an open enrollment or their open enrollment is once a year.

Apply Now! For new members, these plans are available up to 30 days after joining the IARFC — no medical form required, guaranteed issue up to $250,000.

About Michael Insurance Planning Those who sign up will be working with Michael Insurance Planning. Owner Jerry Michael states “I think that everyone should look at this offering closely because of the guaranteed issue provision.” The company is committed to building a mutually beneficial partnership with clients to meet their needs and manage their benefits by the most effective and competitive means possible.

For current members and those who go past the 30 days, you can still apply by providing a medical history. There is no physical required, but the questionnaire is in-depth and then sent to underwriting to make a determination. Medical questionnaires vary from state to state. Contact Michael Insurance Planning for a link to your state. The Standard Insurance Company For more than 100 years, The Standard has been dedicated to this core purpose: “To

More Information? If you would like an informational brochure, contact Michael Insurance Planning.  Contact: 800.932.4075 ja@michaelinsurance.com www.IARFC.org/insurance The Register | November-December 2016


Competitive Group Insurance Offered to IARFC Members L i f e A D & D LT D K EY B E N E F I T S I N C L U D E :

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

Voluntary Benefit

• 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


Which Stock Market Do You Follow? The DJIA, S&P 500, Nasdaq, or NYSE?

Imagine you are sitting in your office and the phone rings. It’s one of your top clients, and they ask you; “How’s the stock market doing?” Maybe your client wants to know how the stock market is doing right then. Maybe they are wondering how it has performed over the past month, quarter, or year. Or maybe they are asking for your current or future stock market outlook.

However, this story should not end there. As the famous Paul Harvey used to say; “And now…for the rest of the story.” There is actually another historical, major, and all-important stock market index. In fact, this particular index is the oldest, largest, and most reputable measurement of the overall stock market. Which index could this be? The New York Stock Exchange (NYSE).

In either case, where would you turn for your answer? Which index do you believe tells the most accurate story of the overall stock market?

FACT: The NYSE is, without question, the single most reputable, meaningful, and valuable stock market index.

For the last 100 years (particularly the last 50 years), investors and investment professionals have gauged the stock market by using: 1. The Dow Jones Industrial Average (DJIA) 2. The Standard and Poor’s 500 Index (S&P 500) 3. The Nasdaq Composite (Nasdaq)

I have found most people are surprised to learn the history of the NYSE and how it compares to the other three benchmarks. This is especially true when you consider the fact that the NYSE is: • Largely overlooked and ignored • Rarely mentioned or acknowledged • Extremely hard to find and follow

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The NYSE — Compared to the DJIA, S&P 500, Nasdaq As you will see from this exercise, the NYSE has always been the leading indicator for the stock market’s overall health and long-term trend. The best way to prove this fact is by comparing and contrasting the NYSE to the other popular benchmarks. The Dow Jones Industrial Average (DJIA) The DJIA was created by Charles Dow, editor of the Wall Street Journal and co-founder of Dow Jones & Company. The “Industrial” part of its name is merely historical, since very few of today’s DJIA stocks have anything to do with the traditional heavy industry. The DJIA is arguably the most notable stock market index. For example, when the media states “the stock market is up or down today”, they are generally referring to the DJIA. The Register | November-December 2016


DJIA key details and characteristics: • The DJIA was founded in 1896 — dating back only 120 years. • The DJIA is the second oldest U.S. stock market index. • Commonly referred to as “Dow Jones”, “Dow 30”, and “Dow”. • The DJIA began with 12 stocks, which expanded to 30 in 1928. • The stocks that make up the DJIA have changed a total of 51 times. • The DJIA consists of 30 stocks that are among the largest publicly-owned stocks based in the United States. • Each of the 30 DJIA stocks also trade on the NYSE. • The DJIA is a price-weighted index. What this means is the stocks with the highest prices are given a greater weight and, have a greater impact on the index. The Standard and Poor’s 500 Index The S&P 500 is often considered the most accurate gauge of the performance of large-cap American equities. While the S&P 500 focuses on the large-cap sector of the market, many consider this index as representative of the stock market because it includes a significant portion of the total value of the market. Over the past several decades, the S&P 500 has become the preferred index for U.S. stocks, unseating the DJIA. Since the S&P 500 is made up of 500 stocks (versus 30 in the DJIA), it is perceived as a bigger, broader, and better measurement of the overall stock market. S&P 500 key details and characteristics: • The S&P 500 was founded in 1957 — dating back only 59 years. • The S&P 500 is the second youngest U.S. stock market index. • Commonly referred to as the “S&P Composite” and “S&P”. • The S&P 500 consists of 500 stocks selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor’s. • The criteria for stocks to be added to the S&P 500 include: being a U.S. company, market capitalization in excess of $4 billion, a public float of at least 50%, financial viability, adequate liquidity and reasonable price, sector representation, and company type. • The S&P 500 is a market capitalization weighted index. This means the stocks with the highest capitalization are given a greater weighting and, therefore, have a greater impact on the index. (Note: A stock’s capitalization is determined by multiplying the stock’s share price by the number of shares outstanding. The Register | November-December 2016

The Nasdaq Composite Index The Nasdaq is mostly known as the benchmark index for U.S. technology (and growth) stocks. Some of the world’s most notable tech stocks traded on the Nasdaq include: Facebook, Amazon, Netflix, Google (commonly referred to as “FANG”), Microsoft, Intel, and Oracle. The Nasdaq was created by the National Association of Securities Dealers (NASD) to enable investors to trade securities on a computerized, speedy, and transparent system. As the technology sector explosively grew during the 80’s and 90’s, the Nasdaq was the most followed market index during that time frame. Nasdaq key details and characteristics: • The Nasdaq was founded in 1971 — dating back only 45 years. • The Nasdaq is the youngest U.S. stock market index. • Unlike other major market indexes, the Nasdaq Composite is world-wide, which is not limited to just U.S. based companies. • The Nasdaq is also known as a global electronic marketplace to facilitate the buying and selling of stocks. • Commonly referred to as the “Nasdaq Composite Index”. • The Nasdaq’s computerized trading system was created to serve as an alternative to the “specialist” system. • The Nasdaq consists of approximately 2,500 small, medium, and large-cap growth stocks. • Similar to the S&P 500, the Nasdaq is also a market capitalization weighted index. Again, this means the stocks with the highest capitalization are given a greater weighting and, therefore, have a greater impact on the index. The New York Stock Exchange Since the inception of the stock market, the NYSE has maintained a set of uniquely stringent listing requirements. Therefore, any stocks listed on the NYSE have earned an inherent “seal of approval”. NYSE stocks are perceived as more reputable, credible, and well-established than the stocks listed on other exchanges. For many, the NYSE is a symbol of all that is Wall Street. It is the place where fortunes are made and lost, and where the free market can be seen in its most tangible form. NYSE key details and characteristics: • The NYSE was founded in 1792 — dating back 224 years.

• T he NYSE is the oldest U.S. stock index. • The NYSE is the largest world-wide stock index (in terms of the U.S. and globally). • The NYSE has the largest and oldest publicly traded companies. • The NYSE consists of over 3,000 of the world’s largest, most reputable, and heavily-traded stocks. • Commonly referred to as “The Big Board” and “NYSE Composite” • The NYSE ensures an “orderly” market for the trading of stocks. • The NYSE is distinguished because its stocks are traded using an auction market where brokers and specialists buy and sell securities for people by matching the highest bidding price with the lowest selling price. • Unlike other exchanges, the NYSE has an actual trading floor (11 Wall Street in New York). Who Actually Follows the NYSE… and Where? To illustrate how under-recognized and allusive the NYSE is, here are two interesting challenges. Challenge 1 Ask at least 20 people (family, friends, investors, clients, fellow investment professionals, etc.) the following questions: “How did the stock market do today?” “Which index do you refer to as the stock market?” “How did the NYSE perform today?” “ Can you tell me the difference between the NYSE and the other three popular indexes — DJIA, S&P 500, Nasdaq?” “Do you regularly follow the NYSE?” “ If you had to choose one index to follow the market, would you choose the DJIA, S&P 500, Nasdaq, or NYSE?” Once you’ve completed this challenge, how many people quickly and easily identified with the NYSE? How many said they really understand the NYSE? How many claimed they regularly follow the NYSE? How many would choose the NYSE as their main stock market index? Challenge 2 Search the internet for popular places that offer stock market performance updates. In other words, go online and visit the most widely-recognized websites for quick and easy access to the stock market, such as; CNBC, CNN, FOX News, Wall Street Journal, Money, Bloomberg, Schwab, YAHOO Page 13


Finance, etc. Then, type “stock market update” into a Google search.

Explaining the Financial Planning Process A well mapped informational flow for a successful and lasting relationship between You and Your Clients/Prospects. All financial consultants use a planning process. But what does that mean to the consumer?

Finally, use your iPhone to ask Siri for a stock market update — and also check to see which indices are listed on your iPhone “stocks” app. Once you’ve completed this challenge, how many of these places actually list the NYSE? How many make the NYSE’s performance readily and easily accessible? How many display the NYSE in the same location as the DJIA, S&P 500, and Nasdaq? The NYSE Must Be Followed I sincerely hope this article provides enough of the necessary facts to reveal the NYSE’s untold story and unspoken truth. Even though the NYSE is rarely talked about in public, and rarely visible or accessible, we cannot forget this index is the oldest, largest, most notable measurement of the stock market. 

The IARFC has a new trifold brochure The Financial Planning Process product number (SG107) that clarifies expectations and sets a roadmap to financial success. It is directed to the consumer, written in an easy-to-understand, organized manner. The brochure defines: • Why use a process • The benefits • The steps to follow • The financial areas it addresses The information is adaptable to any practice. It is generic, yet specific enough to guide the consumer through the essence of Financial Planning.

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

Order your IARFC brochures at: www.IARFC.org/Store or call 800.532.9060, info@iarfc.org

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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 Securities offered through O.N. Equity Sales Company Member FINRA/SIPC. Investment Advisory services offered through ON Investment Management Company. The Register | November-December 2016


Marketing Unplugged Helping Clients Leave Their Financial Footprint People crave immortality, but only the right sort. “The evil that men do lives after them; the good is oft interred with their bones.” (William Shakespeare, Julius Caesar) How can you help wealthy clients leave their legacy in the community? For starters, it depends on how much money you have. If you are a billionaire property developer who puts his name on buildings, your legacy is secure. If you run a business that trades under your name, Wilkinson’s Wacky Windy Washers will live on. But what if this isn’t you? Nine Ways to Be Remembered Before we list ways to spend money to be remembered, let’s start with the obvious one your children. Teach them the right way to live their lives. Teach them about integrity and compassion. Provide them with the best education possible. Give them the space to make their own decisions. They will carry your name with integrity and communicate those values to the next generation.

4. Trust to Fund Education for Future Generations: Establish your own family scholarship program. It’s designed to pay all or part of the education costs for future generations. Part is better than all because families can grow geometrically over decades. You are fondly remembered within the family. 5. Family Foundation: Establish and fund your own private foundation. Family members choose the charities to receive contributions consistent with the beliefs of the founder as spelled out in the documentation. Charities benefit from your generosity for years to come. 6. Naming Opportunities: Museums and hospitals conduct capital campaigns to build new wings or initiate new programs. They usually offer a shopping list of naming opportunities for rooms and buildings. This involves big money, so it’s usually pledged and paid over a three to five year period. Be

sure to ask how long your name stays up. Buildings get replaced too. 7. Name on the Wall: Don’t worry if getting a room named after you is too expensive. There’s a cheaper alternative. These institutions usually chisel names on marble plaques listing supporters of the project. You don’t get a room, but your name is there for your family and their friends to see. 8. Golf Trophy at Country Club: Your passion is golf. Sponsor a trophy at the club tournament. It’s given out year after year. Names are engraved annually. Perhaps it has a modest cash prize which you also fund for years into the future. A family member presents it at the dinner following the tournament. 9. Scholarship for Local Child: Is it OK to be remembered by just one person outside your family. There’s a teenage bagger at

Now let’s look at some others: 1. Company Name on Sign: Your client owns a business. Their children are groomed to step into management roles and eventually run the place. Armbruster Tool and Die becomes Armbruster & Sons Tool and Die. 2. Statue or Bust at Firm: “Vanity of vanities! All is vanity.” (Ecclesiastes 1:2) You could have a bronze head and shoulders bust produced at a foundry and unveiled at the company headquarters. It’s not that bad if it’s the children’s idea. (Or sounds like it.) 3. Scholarship at College: You strongly believe your alma mater taught you how to think and got you started on a great career. Contact their development office and ask about establishing a named scholarship. It might be for full tuition or a substantial amount. It’s likely the school will want either a lump sum sufficient to fund the scholarship in perpetuity or enough to cover a five or ten year period, at which point the scholarship stops. A family member presents the scholarship at a school event each year. The Register | November-December 2016

“The evil that men do lives after them; the good is oft interred with their bones.” William Shakespeare, Julius Caesar Page 15


your local supermarket. She works really hard. You know money is tight in their family. Without any fanfare you include money in your will to send them to college or at least partially defray the expenses. Five Less Expensive Ways to Be Remembered Not part of the top 1% of the US population? Here are some other ideas: 1. Scholarship at High School: Your local school likely awards a couple of dozen awards and scholarships at graduation. Fund a $1,000 or $2,000 annual scholarship. Setup an arms-length account to hold the assets funding the scholarship or work with the school on a similar arrangement. If they award other scholarships, you aren’t the first with this idea. 2. Historical Societies: There are smaller community groups conducting capital campaigns and building projects on a smaller scale. Often these also involve brass plaques listing donors. Keep your ears open for opportunities. A gift in the low thousands should get you a line.

remembered for generations. “You know Phil. He’s the son of Tom Jones, that swindler who lived here thirty years ago…”

them and how much money they want to commit to this project. 

2. Win a Major Battle: Military honors count for a lot. O’Hare airport in Chicago is named after “Butch” O’Hare, the first naval recipient of the Medal of Honor in WWII. (1) 3. Kill a Lot of People: Mass murderers and other serious criminals become cult figures. Who hasn’t heard of Charles Manson? 4. Become a Famous Actor: Ever fly into John Wayne Airport in Orange County, CA? The most famous actors have name recognition that lives on long after they have left this world. 5. Hold High Political Office: Many US presidents get something named after them. Think about Reagan National Airport in Washington, DC or the Hoover Dam. There are many ways your client can establish a legacy. Learn what’s important to

Bryce M. Sanders 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

3. Art Society Award: You appreciate artistic talent in others. Most towns and cities have an established art society. They present awards, often sponsored by locals or awarded in their honor. A cash prize is often included, since the words “starving” and “artist” usually go together. Your family attends an annual awards ceremony. No, they don’t get to judge. 4. Parties in the Future: In certain European cultures it’s common to gather family and friends to remember the deceased at the one year (and other) anniversary of their death. You set aside money to fund these blowouts for the first few years. 5. Buy a Brick: Fundraisers for smaller community groups often involve “buying bricks” which are stamped with your name. The courtyard at their building is paged with those named bricks. They are usually inexpensive, priced in the hundreds of dollars. Five Other Ways to be Remembered (not all are good) Let’s get back to “The evil than men do lives after them; the good is oft interred with their bones.” There are ways you don’t want to be remembered: 1. Cheat Someone: In small towns honesty and morality are self-policed. People stay in line for one simple reason. If you do something really bad, it’s Page 16

The Register | November-December 2016


The Value of Association Membership

To many people, belonging to an Association like the IARFC, is a door opener in a conversation with a prospect or a new acquaintance. Whether they are familiar with the group or not, just knowing that you are part of something bigger than yourself, gives them a stronger sense of confidence in you. Most people are members of more than one organization, association or professional group. The value of these groups needs to be part of your presentation and your membership signage should be proudly displayed. When you walk into a doctor’s office — what is the first thing you do? You look on the wall and read the diplomas and certifications! Representing yourself as a true professional by participating in local, national and international Associations will further cement your expertise to your prospect or client. Every RFC® has a beautiful certification to hang on their wall to demonstrate their acceptance in a well-respected and international Association. The recent introduction of the MRFC exam gives you the opportunity to further express your expertise. When the MRFC designation becomes accredited, each MRFC will receive a Master Registered Financial Consultant certification. Once it is framed and displayed in your meeting room, the value of your IARFC membership will be further enhanced. If a possible client wants to “check you out”, they will go to your company website, LinkedIn and/or Google for information. Page 18

Why not list your memberships on those sites as well as on your business card? Be proud of the strides that you have made and view your memberships as the way you can express to your clients the new and innovative things you are learning about the industry. Most Associations offer educational literature designed to assist you in better approaching your possible target market. This allows you to explain your qualifications verbally, but gives them something to take home and read over. At the IARFC, they have professionally laid out literature designed to be distributed for consumer use. The style of writing generates a feel of professionalism for you and the Association that stands behind you. Brochures listing The Code of Ethics, The Requirements to be an IARFC member, and clear explanations of why a person would need a Professional Financial Consultant are available for you through the IARFC. Today everyone runs to the Internet to do their research prior to making the decision as to whether to become your client or not. Make sure that your profile is accurate and up to date. Old company information or email addresses show that you are not actively maintaining your online image. I have learned from the organizations that I belong to that it is critical to become the go to person when someone is looking for information. If you don’t have the answer, and many times you won’t, being a member of those respected Associations, gives you the opportunity to recommend someone

with confidence because you have built a relationship with them. Use your memberships to actively promote your networking and become a resource to your client or prospect. They will appreciate your referral and you will feel comfortable in giving it. The bottom line is to take advantage of your connections within an Association and participate in the variety of opportunities they offer to their membership. 

Michelle Blair, RFC® Michelle K. Blair, RFC® is an office administrator specializing in management and relationship building. She is a Board member of the IARFC as well as the Secretary of the Financial Planning Association, Long Island Chapter. Michelle devotes quite a bit of time to promoting professional and personal growth in the industry. Contact: 516.639.5078 michelleblairrfc@gmail.com The Register | November-December 2016


EDUCATION • EXPERIENCE • INTEGRITY

RFC® ® R FA

Life Insurance License Qualifies Education Requirement

The Registered Financial Consultant – RFC® Designation Registered Financial Associate – RFA® Designation are testaments to education, experience and integrity. In a world of constant economic, political, and social change, consumers engage the guidance of financial consultants to achieve financial security and independence. An RFC® or RFA® designation sets you above your peers as a qualified and trained professional that meets a high level of competency.

RFC®

RFA®

Experience

Experience

Education 1 of the following

Education 1 of the following

Examination

Examination

4 years of experience as a full-time practitioner in the field of financial services.

√  Bachelor’s or advanced degree in a related field √ Designation in financial services √  Securities license; Series 65 or combinations √ Life Insurance license

A proctored exam (MRFC only).

Licensing

Granted to recent graduates of an approved academic curriculum in financial services.

√  Bachelor’s or advanced degree in a related field √ Designation in financial services √  Securities license; Series 65 or combinations √ Life Insurance license

A proctored exam (MRFC only).

Licensing

Required licenses necessary for mode of practice.

Required licenses necessary for mode of practice.

Conduct

Conduct

Ethics

Ethics

Sound record of business integrity.

Adherence to IARFC Code of Ethics.

Sound record of business integrity.

Adherence to IARFC Code of Ethics.

Grow with US! Apply Today! Enhancing the professional skills of our members is an important part of IARFC strategic plan. The IARFC Ethics Approved Programs is designed to promote adherence to our Code of Ethics. This program scrutinizes the practice history of each member and will award recognition to those who serve the public’s interest when dealing with their financial future. Contact the IARFC for an application and a detailed listing of requirements.

International Association of Registered Financial Consultants 800.532.9060 • info@IARFC.org • www.IARFC.org

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS


International Update Interview with Kai Tu

(L-R) Kai Tu - IARFC China Development Centre, Wang Jian Xuan – Founder of New China Charity Foundation, Ed Morrow – U.S IARFC CEO, Leone Vai Tac- Secretary for Economy and Finance, Macao Special Administrative Region of P.R.C., Liang Tian Lung – Chairman of IMM International.

International events from this past August showcased the 11th Annual Worldwide Chinese Life Insurance Congress hosted by the Insurance Marketing Group International in Macau. This is a Congress for Chinese Speaking life insurance and financial services professionals, elite agents, agency managers, and corporate executives. The delegation was over 7500 strong, which included 300+ Chairpersons, CEOs, senior executives from 17 countries and over 200 insurance and financial services institutions. About 5% of the delegates were RFC®s. This conference provides the highest standards and awards of its kind. Many delegates feel it is an honor to attend and treat the conference as an important part of their career growth. The first Congress was held in Taipei, Taiwan in 1996. The conference adopted the theme “Embracing Change”. The message was played out to mean taking different attitudes, learning new skill sets, expanding vision to face challenges and grasping opportunities. The key takeaway was to “Pursue Professionalism and Continue Learning.” IARFC CEO Ed Morrow gave a presentation entitled "Key Steps of Financial Planning." Overall, 100+ training sessions were held Page 20

during the 4 day conference from various areas of the industry. Other topics included personal selling, technology, attitudes, agency economic trends and others. During the conference, Ed Morrow was further recognized by receiving the 2016 Lifetime Achievement Award. This annual award is given to a role model in the community who has demonstrated a long-lasting commitment in a financial services career. The criteria is at least 40 years working in the industry and being currently active. Ed being a strong supporter of the IARFC in Asia is greatly appreciated by the Asian RFC® community for his contributions to their needs and progress. As one of the largest Life Insurance and Financial Services Assembly ever held in Macau and Hong Kong, the Congress significantly boosted the local economy and tourism. The Chief of Melbourn City and Deputy Mayor of Kunming (site of the 2017 Conference) gave their warmest welcome for the upcoming year. An Important Bond The RFC® stands out as one of the most recognized professional designations in the Greater China area. As many delegates wish to transform from agents to Financial

Consultants, it is very important to have the U.S. leaders of the IARFC visible and networking with their Asian counterparts. China is one of the most promising Life Insurance and Financial Services markets in the world. There is need for advanced knowledge and experience from the U.S. Associations — especially in the Financial Planning area. This type of Congress bridges the Pacific Ocean for both. “We are especially grateful to Ed Morrow and his time spent nurturing relationships within international community,” comments IARFC Chairman H. Stephen Bailey. “The IARFC looks to the future to continue supporting RFC®s with whatever resources they need to move forward as a respected part of the Association.” Kai Tu, IARFC China Chair, born in 1957, Taipei Taiwan, Kai Tu looked to the U.S. for his advanced degree in the 1980s where he earned an MBA and MS in Computer Sciences. He joined the insurance industry in 1987 as an agent of New York Life, earned his CLU, ChFC in 1992 and then returned to Taiwan in 1993. He has worked for a number of International Financial Services institutions: Zurich, MetLife, Prudential-UK, AIG, Standard and Generali as their senior executive. Since 2013, he has worked for IMM as CSO at the IARFC China development center.  The Register | November-December 2016


technology client-ready communications practice management professional development wealth management turnkey marketing programs compliance oversight financial assistance conferences interactive websites customizable materials thought leadership

I

n an industry where most firms offer the same laundry list of services, we believe our ability to listen is the most important business development tool we offer. It’s how we learn your vision for the future of your practice—so we can help you make it happen.

Go ahead. Test our listening skills at 720.509.2447, or see our extensive laundry list at ceteraadvisors.com.

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The Register | November-December 2016

Cetera Advisors LLC, Member FINRA/SIPC 4600 S. Syracuse Street, Suite 600, Denver, CO 80237 © 2016 Cetera Advisors LLC 16-0078 03/16

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Register Profile

Stephanie Bailey, RFC® Transitioning with Understanding German-born psychoanalyst Erik Erikson (and a follower of Sigmund Freud) maintains that every person must pass through a series of eight interrelated stages over their lifetime – from birth to death. Much of life, he espoused, is preparing for the Middle-aged Adult Stage 7 (35 to 55 or 65) and Late Adult Stage 8 (55 or 65 to Death). Erikson used the terms Integrity vs Despair to define this last stage. The question challenging us at that point is — will most of us look back on our lives with contentment and fulfillment, making valuable contributions to our family and society? Or, will we experience a sense of despair, trying to determine what our purpose was and reflecting upon our failures? Coincidentally the end-of-year issue of the Register chooses to dwell on leaving a legacy and preparing a succession plan. As Financial Consultants, it is important to start that process early so that one can look back in meaningful reflection.

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The Register | November-December 2016


The Register | November-December 2016

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Interestingly enough, we have asked a younger person, Stephanie Bailey, RFC® of HB Financial in Charlotte, NC to help us explore this topic. Stephanie is the daughter-component of a legacy team with her father, IARFC Chairman H. Stephen Bailey, RFC®. Through her own growth and development at HB Financial, she can relate the experiences in carving her own path into helping others as they find their own measure of integrity.

different way. I have met some absolutely wonderful people and continue to learn. The added bonus is I get to work with my father. It is not easy working with family all of the time but I would not trade it for anything!

Register: Immediately delving into the topic of legacy – what does that term mean to you and how do you relate your personal experiences to the needs of your clients?

Stephanie: A wise client of mine put it this way once and I have never forgotten its truism — “In life, we learn, we earn and then we get to return as in help others and do for ourselves.” I love the philosophy and use it all the time. We help our clients with the earning and returning years financially.

Stephanie: Legacy can be defined as something we receive from the past. A legacy of love, money, family stories and respect to name a few. As consultants, we mainly help clients define their financial legacy. It is only natural that in helping our clients we should also look to ourselves. I want to leave a legacy for my family - to “provide” something for future generations. I love what I do. We have and continue to develop a legacy succession plan for Steve (Dad) and one for me. The markets and investments do not stop if something happens to us and/or we retire. Quite frankly, I take the personal legacy of my clients very seriously. Part of my own legacy is to ensure that they are taken care of, their goals are concise and that they are not judged as a number or by their assets. I don’t work with assets, I worked with people. Whoever comes after me, I pray, feels the same. It is part of my legacy. Register: Tell us why you decided to enter into the family business in the first place, and give us relevant background information. Stephanie: This is a long story, but the essence is I was going to “sink or swim.” My background is in education. I was a teacher when Steve suggested I come to work for him. I was very honored and excited at the opportunity so I resigned my position as an elementary school teacher. Well, Steve meant for the summer and I thought he meant full time. Thus I had better “sink or swim” and fast! So I learned the mortgage industry first as a mortgage broker, life insurance with LTC, and became an OSJ and wealth manager. I figured if I learned everything, then I would gain the respect instead of everyone looking at me as nothing but Steve’s daughter. I worked very hard to learn and I love it! In addition, I have been very fortunate that this profession allows me to use my teaching skills but in a Page 24

Register: If we are subscribing to Erikson’s philosophy of integrity, what do you think an integrity-defined life means to most of your clients and how does that manifest itself, financially?

Register: How do you help your clients prepare for this phase of their lives and the legacy they wish to leave? Stephanie: Sometimes we have very difficult conversations. We learn, at times, family secrets, turmoil and the joys our clients have had in life. These things always are a guiding force in our clients’ mindset and something we have to understand to help structure the legacy our clients want to leave. It is not always as simple as putting a beneficiary on a form. Register: In a legacy/succession situation, someone has to give up control and someone has to assume the new leadership role. How have those dynamics played out in your situation? Stephanie: In our situation, it has happened gradually as I took over more responsibility and taken a role in each “client relationship” as well as on our business side. I know every file and every client. I sit in on most, if not all, of Steve’s appointments now. We have done this so that his clients know who his successor and back-up is going to be. I have found it amazing how many clients have told us that they were wondering and are so appreciative to know. It has not always been easy, you have to gain trust in every aspect, sometimes there is the typical push and pull but by planning ahead we have and continue to navigate the transition. Register: How has legacy planning changed in this present time? What would your father say is the biggest challenge that you face that he did not have to address in his career? Stephanie: When I started 20 plus years ago, you had to really reach for the help to navigate a succession plan. As an industry,

we now want to plan our succession. There are people to help and broker/dealers are dedicating the time to work with reps to ensure a transition plan is in place. I am thrilled about the change because it protects all of our clients and the legacy we are helping them to build. Navigating through new regulations is most likely what Steve would say is going to be my biggest challenge. As an industry, we are facing a new world in the way some do business. Register: When dealing with younger clients – what do you advise they do during their Young Adult Stage (18 to 35) to their Middle-Aged Adult (35 to 55 or 65) Stage to ensure a long lasting comprehensive financial plan later in life? Stephanie: I love working with new investors! It is exhilarating watching them get excited about their investing future. My first words of advice to someone in the Young Adult Stage or learning years, is try not to accumulate debt. You can work yourself through college; you might not be able to work yourself through retirement. To clients that are in the Middle-Aged Adult Stage or the earning years, we give the same advice. Many are settled with new families so we help navigate the questions that come along with the new responsibilities while looking at the overall financial picture. You cannot wait to start looking toward the retirement years. What you do now in relation to your finances will directly impact your future and the finances you accumulate later in life. Register: How would you help someone who comes to you with fear regarding their financial future — a despair of a lifetime of no preparation? Stephanie: In my opinion, the most important thing we do literally every day in our industry is listen. When there is fear, we need to walk together to navigate it. We must go through it with a plan and set realistic expectations, walking one step at a time. The retirement years might not “look” as someone wants, but by being honest and communicating concisely, we can work through the clients’ fear. Register: Moving to a more businessoriented legacy, explain the important issues when discussing a succession plan. What issues can turn objective details into an emotional experience? Stephanie: It is hard to answer this question because it really is subjective. I feel the biggest issue representatives face in our industry is “letting go” and when to “let go”. The Register | November-December 2016


The objective details are the easy part. The hard emotional experience comes in letting go of their vision that most have spent the majority of their life creating. When talking with other reps, it is usually that they are retiring but “keeping” a select few clients, or will come in a “few hours a week”. We get emotionally invested with our clients, their success, failures, future and sorrows. It is not easy to let go and trust someone to feel the way you do. You can’t just walk out the door and shut it never to look back or at least I wouldn’t be able. We deal with people and the one thing that affects them for their entire lives — money! I may be different than most but setting up the business aspect of the succession, again, is the easy part. Register: Quoting from your mission statement: “Our independence is vital to delivering objective unbiased recommendations.” How has that independent thinking influenced your decisions in regards to building a financially secure plan for a client? Stephanie: I want and have to put the client first. I need to listen, communicate and be a guide in achieving financial independence for my clients. Independent thinking helps me achieve this for my clients. I have had other reps trust me with their clients and other clients they refer. I am not a salesperson. I don’t sell and I don’t want to sell. My goal is to get our clients to the end of their life having met what they say is their goals, needs and wants in retirement. I will always feel that I need to be independent in order to do that. Register: What have you learned from your father as you both cater to clientgenerations of family and friends? Stephanie: To adapt, learn, research, reach out to peers, listen, gain trust, communicate and always put the client first even if that means referring them to someone else.

When there is fear, we need to walk together to

Register: What is the financial footprint that you are working towards personally?

navigate it. We must go through it with a plan and

Stephanie: Like my clients, I have a financial goal in mind for my retirement years and a roadmap to retire to the islands leaving my legacy. By facing the same issues as my clients, they teach me every day. I hope in working toward my goals I have helped, taught, and earned the respect of others and that I never stop learning.  Contact: 704.56.3.6844 stephanie@hbfinancial.com www.hbfinancial.com The Register | November-December 2016

set realistic expectations, walking one step at a time. The retirement years might not “look” as someone wants, but by being honest and communicating concisely, we can work through the clients’ fear. — Stephanie Bailey, RFC® Page 25


The Reality of Planning and Preparing for the Family Members Left Behind From the point of view of a beneficiary, trustee and daughter

On July 10, 2016 my loving and devoted father passed away. As the oldest of his children and the person he confided in about his end of life plans, I was so grateful for the assistance of both his financial consultant and attorney. On the day after his passing, they both spent hours with my husband and me on a spur of the moment appointment to help and guide us with “first things first” and “what comes next” projects. While we had much to handle, the biggest burden of all was relieved by the assistance and support of these professionals. My father began end of life planning for my mother and himself at least 20 years Page 26

earlier. During those years, every time my husband and I got on a plane to visit, my Dad took us into his home office, went drawer by drawer to remind us of where things were and then room by room to look over his possessions and what he wanted done with them. My Dad was the ultimate planner and the most organized person I ever knew. Does anyone know someone with one drawer for white socks and a different drawer for dark socks? Or how about someone who writes their deposits in red and checks and auto deductions in blue when putting them in the check registry? His desk was impeccable and everything had their place. He had

every owner’s manual to every product he had — all filed neatly and labeled, including the serial number of each item. This was a man who kept his life in complete order. His attention to detail never surprised me. Everything was just so!! He not only planned and prepaid for his final expenses, but it was arranged down to paying for the inscription on his mausoleum. I didn’t have to decide on the type of casket, amount of limos, whether or not to have a chapel service or a grave site service...all this was pre-done and paid for years in advance. A copy of the layout of the mausoleum, noting which compartment belonged to my mother and him, was left in an envelope at The Register | November-December 2016


his home besides being sent to me by mail many years earlier. As the detail-oriented person that he was, I knew his financial affairs were also in order. His trust was set up many years ago and updated as needed. His will, power of attorney documents, health care directives and all his important papers were mailed to me years in advance by his financial consultant and/or his attorney, as applicable. Every change in his life required more paperwork and more things for me to review with him. We were co-trustees and he made it a point to always remind that he and I carried the same status on all his holdings and that he depended on me and trusted me to follow what he set up. He knew that when the time came, emotions would be involved and he didn’t want me to worry about anything. He also realized that having me as his equal partner in the trust, allowed for proper and quicker distribution of his estate. My name and signature were everywhere that was needed. He left no stone unturned. Years ago he mailed me the business cards for his financial consultant, attorney AND the funeral director. When his financial consultant moved his office, I got a phone call from that office and new business cards from my Dad. He even went as far as putting some cash in a rubber band and hiding it so that when food or other gifts were delivered after the funeral, I had tip money!! Of course, he showed me the hiding spot at each visit. As financial consultants, you are always thinking about your client and making their wishes a reality, but it is the survivors that must thank you for this preparation. Without your proper planning, a beneficiary or survivor would not know where to begin. It is difficult enough to deal with the tragedy of death and the loss of a loved one, but the overwhelming amount of plans to be made at an emotional time is usually more than many people can handle. Even with all the arrangements that were made long in advance, the amount of final “closeouts” was mind boggling. The list of companies and places that need to be notified is enough to make a survivor physically ill from the stress. Many want a copy of the death certificate - either an original or an emailed copy. Some want their own form filled out, as well, and yet others want copies of trust or Letters of Administration documents. Knowing why someone would need a death certificate with or without cause listed, is something that the average survivor would not know without your guidance. While my Dad had prepaid for The Register | November-December 2016

death certificates also, based on the advice of the professionals, we were able to determine the correct amount needed in both the cause or no cause category. Thankfully, my Dad’s financial consultant and attorney supplied me with everything that I needed years in advance. I was prepared because of the work that my father did with them over these last 20 years. His consultant told me that he met with my father every quarter like clockwork and they made decisions together. These meetings showed me that their teamwork and constant updating was extremely important to keeping my father’s wants, needs, and goals current. I never thought that I would ever need the folder that I, many years ago, labeled “Mom and Dad’s Life Plans”. That time was never supposed to come! My mother passed away a year and half before my father. My Dad and I handled it all together, but he was the one making all the calls after I left and went back home with my family. When a new amendment to the trust was done, removing my mother and changing everything over to only my Dad and me, new checkbooks, new documents, more forms, and more papers to have notarized were required! He took care of arranging everything, so when it was his passing, I was in the situation that he had recently been through. I have 2 sisters and a brother, but as the trustee, I was the one who had the ability and authority to take care of everything. When my father asked to be put into Hospice, I as the health care surrogate, needed to provide the proper paperwork to take care of this. My sisters and brother did what they could do, but the majority of the work could only be done by me. The burden of following what I knew he wanted also fell on me, as I knew more about his situation and desires than they did. We were and still are, very close as siblings, but as the trustee, he told more to me than to them. He gave me the legal authority to make sure that I was able to do everything. I took notes each time we visited. More than 15 years earlier, my father typed out a long letter and mailed it to my husband and me, giving a copy to one of my sisters. She put it away in her safety deposit box and never read it until his death. I kept my copy in their folder and read it many times over the years. His detailed description of exactly how much it would cost for every extra letter of inscription over what he prepaid, was a testament to his level of organization and concern that we not have anything to decide on or worry about! Everything was arranged for us. He was meticulous in his

planning and knew that by doing this, it would ease our minds in such a difficult time. Each hour that passed after the funeral, I thanked my father for being so prepared in his planning. While I had to make lists of every aspect of his life, from cancelling the Sirius radio in his car to closing out his cell phone to halting the newspaper delivery, I knew that the plans he laid out so long in advance were followed through exactly as he wanted, due to the proper planning. Helping the survivors and/or beneficiaries by guiding them through this rough and difficult road is the secondary role of the financial professional. Understandably, the professional’s first obligation is to their client, now passed on. Their next consideration would then be to assist the survivors. A suggestion would be to make a checklist of all the places that are required and/or needed to be notified of the passing so that the survivors can review it and see what applies to their situation. This list would need to include memberships, magazine that auto renew, and the usual places like credit cards etc. Add this to your client’s financial planning packet, so that when death occurs, there are some guidelines for loved ones to follow. Hats off to every financial professional that has taken on the responsibility of shepherding the next generation. My Dad’s team of consultant made parts of my journey more bearable. Prepared planning is something that can never be stressed enough. In loving memory… 

Michelle Blair, RFC® Michelle K. Blair, RFC® is an office administrator specializing in management and relationship building. She is a Board member of the IARFC as well as the Secretary of the Financial Planning Association, Long Island Chapter. Michelle devotes quite a bit of time to promoting professional and personal growth in the industry. Contact: 516.639.5078 michelleblairrfc@gmail.com Page 27


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Consumer Focus "It’s a Jungle Out There…"

The name of the radio talk show that I host, “Financial Safari,” was inspired by an observation a client made while he was visiting my office with a tale of woe. He told me that he had changed jobs a few years ago but had neglected to roll over his 401(k), as was his prerogative. He said he meant to do it, but it wasn’t “all that much money” and after a while, he got wrapped up in work and just forgot about it. The name of the radio talk show that I host, “Financial Safari,” was inspired by an observation a client made while he was visiting my office with a tale of woe. He told me that he had changed jobs a few years ago but had neglected to roll over his 401(k), as was his prerogative. He said he meant to do it, but it wasn’t “all that much money” and after a while, he got wrapped up in work and just forgot about it. “I just didn’t pay any attention,” he said. “I just assumed it was in competent hands.” The Register | November-December 2016

“I just didn’t pay any attention,” he said. “I just assumed it was in competent hands.”

At some point, while with his previous employer, he had chosen to allocate more than half of his portfolio to high-risk growth stocks. Then, long after he had left the company, a sudden market downturn caused him to lose almost half the value of his account, or around $11,000. While that figure did not represent a vast portion of his overall savings, and thus not a huge loss, it was enough to get the man’s attention. He vowed from that moment on to pay more attention to the details of his personal finances. When discussing the loss with me, he said with a slow shake of his head, “It’s a jungle out there, Pete.”

For the rest of that day, I thought about how many bright people there are in the world that just aren’t particularly savvy when it comes to handling money. There are brilliant doctors and scientists who are right now hovering over microscopes, finding ways to prevent and cure diseases, the names of which I probably couldn’t pronounce. But for all their genius and talent, they know little about market trends or income planning strategies. There are educators who have stacks of diplomas and degrees, but who couldn’t pass a 25-question true and false test on estate planning basics. I wondered how many engineers and architects are there, who can calculate the load-bearing capacity of a suspension bridge, but don’t know the difference between a large cap and a small cap stock? That’s what put me in mind of a safari. In my mind, a safari is a trek through unfamiliar territory in pursuit of a goal. If our goal is to have that ridiculously reliable retirement income plan, then we are on a safari of sorts. We have to make our way toward that goal while treading uncharted territory, where the terrain is full of pitfalls to avoid and predators to watch out for. In the old jungle movies I used to watch as a boy, there was always a guide who knew how to lead his party through the morass of vines and scary predators. These guides always wore pith helmets and khakis, a detail that still puzzles me. But it is my opinion that a competent financial consultant should be like those guides. I don’t mean that they should wear khakis and a pith helmet. I mean that their job is to lead those through the confusing financial jungle, with all of its potential hazards and pitfalls, to protect them from moneyhandling missteps, and help them reach their goal of a worry-free retirement. Finding a Reliable Guide The times in which we live have been called the “information explosion” era. We have access to unlimited information to just about everything, including how to manage our money. The problem is not that we don’t have enough advice floating around out there; it’s that we have too much. It’s like playing a sport and having 15 coaches on the sidelines, all shouting out different instructions on what to do with the ball. It’s overwhelming. There is an old saying — “Opinions are like noses; everybody has one.” That is certainly true when it comes to financial advice. If you want to see all those opinions in living color, just type in the words, “financial advice” into the Google search bar and, before you can blink your eyes twice, about 400,000,000 Page 31


responses will pop up. You couldn’t read them all in a lifetime. The first order of business in finding the right financial advice is to narrow the search. Just deal with information that is relevant to you and your unique, individual financial goals. Secondly, carefully inspect the credibility, reliability and capability of the ones giving the advice. It is easy for an individual to set up a website these days, or obtain “certification” from a website and hang out a shingle saying they are an expert. That doesn’t mean they are qualified to give advice to you on how to manage your money, especially if you are in or nearing retirement. If you are considering working with a financial consultant, make sure you obtain satisfactory proof of their education and training. If you are retiring, ask about the financial consultant’s experience in working with retirees and their philosophy about safety versus risk. A competent financial consultant will rarely make a recommendation to you at your first meeting. They will spend most of the time during the first interview listening, not talking. A competent consultant will want to fully understand your unique, individual circumstances before proceeding. Just like the lesson learned from Aesop’s fable of the tortoise and the hare, slow and steady wins the race when it comes to building, maintaining and preserving our wealth. If you are urged to take immediate action on a strategy that promises big, quick returns, run the other way. Don’t Be Crippled by Indecision Sometimes, you can be too cautious. Sometimes, deciding not to decide is the worst decision you can make. Taking decisive action after you have done your due diligence is on the “do” list of just about every success coach out there from Stephen Covey to Tony Robbins. One of the best stories I have ever heard to illustrate the point, however, comes from Zig Ziglar in his landmark self-help book, See You at the Top. In his inimitable homespun style, Zig tells the story of the cook who brought out a pan of biscuits that were no bigger than a silver dollar. When Zig asked what happened to the biscuits, the cook laughed and said, "Well, those biscuits squatted to rise, but they just got cooked in the squat." The point he was making was that unless and until you do something with what you have learned, you might as well not have learned it. Just like those biscuits, some people are always getting ready to take Page 32

If you are considering working with a financial consultant, make sure you obtain satisfactory proof of their education and training. If you are retiring, ask about the financial consultant’s experience in working with retirees and their philosophy about safety versus risk.

action. They are almost ready to make some decisions and establish a course of action. And like those biscuits, they fail to rise because they never get past their good intentions. I second that notion. I have seen individuals squander opportunities because they wanted to collect one more opinion and gather one more report or have one more analysis run of an ever changing body of data. I don’t know who came up with the expression, but I like it — “paralysis by analysis.” At some point, the line shifts from prudent caution to outright procrastination, which becomes the thief of our time and thereby our resources. When it comes to putting a retirement plan into place, time has a tendency to bend. Time is literally money in this case. When we are young, planning is just as important as it is when we are in our middle years, but because time is a slow moving stream, we don’t sense the current at that age. But time is flowing just the same. By the time we reach our middle years, every month that goes by without our having a plan in place costs us, not then, but down the road. That cost compounds as we near retirement age. Why? Through our inaction, we are failing to put the “time value of money” to work for us. On Sept 11, 2001, when the hijacked jet airliner hit the North Tower of the World Trade Center in New York City, many people in the other tower knew instinctively that it was time to get out. Some began taking immediate action to leave their offices and put as much distance as they could between themselves and trouble, whatever its cause. It was not immediately clear what had happened. But they had collected enough information to know that all was not right and that it was time to move. Others were unsure and decided to wait and see. What if it was just an accident and everything was under control. Some well-meaning souls advised people to stay put and that there was no cause for alarm. Then the South Tower was hit and many of those people lost their lives. Some of those who procrastinated until they had more information died while they were pondering what to do.

Thus, in order to preserve your financial life, it is important to collect enough information to make a sound decision, but it is important to balance that with understanding the time value of money. Otherwise, you can just become a professional information gatherer and miss the point of why you are collecting it. Knowledge, Understanding and Wisdom I have heard the difference between the three perceptive cousins, knowledge, understanding and wisdom, described this way: Knowledge is a collection of facts. You know that you are standing on a train track. You know about trains, that they are made of steel and move very fast. You know that this train is approaching the spot in which you are standing and that it is moving very swiftly. Those are facts. Understanding is the capacity to put two and two together, so to speak. You understand the relationship between one particle of knowledge and another particle of knowledge. You understand that steel is hard. You understand that tissue is soft. You understand that if hard steel, moving fast, impacts on soft tissue, you’re a goner. Wisdom is taking the appropriate action under the circumstances. Here, it would be altogether appropriate to get off the tracks. The point is that collecting knowledge is important. Never make an uninformed decision when it comes to money. Understanding what we learn as it relates to our retirement and our income needs is crucially important too. But all the knowledge in the world won’t help us, and neither will understanding that knowledge, if we don’t wisely take action on what we know and understand to be accurate and true. Consider the Source Where you get your information from is important. It reminds me of a commercial where the doctor, who is not a doctor, performs an operation. When everyone discovers he is not a doctor, he brightens and informs them that what gave him the The Register | November-December 2016


confidence to do things that were outside his sphere of knowledge and experience was the fact that he stayed at a particular hotel the night before. The commercial is clever. But what is not so funny is when people who have no idea what they are talking about pass out financial advice and, in so doing, put the financial lives of others in jeopardy. Well-meaning relatives and good friends can be the worst when it comes to this. They will sometimes offer hot stock tips they heard at work, and are adamant that this or that strategy is a sure bet. They sound so confident of it that you are a fool not to follow their counsel. Why you would think they had spent months researching it, when if the truth were known, it is mere rumor and speculation. When it comes to that kind of advice, allow me to suggest building an information source tree. Find out where the information came from and see if you can nail down the original source. There is a game that my six year old daughter plays known as “telephone” where people sit in a circle and whisper a phrase into the ear of the person next to them. The humor comes when the phrase is written down and read, first as it originated, and then as what it had become after having been repeated a number of times. “No, I didn’t say to short petroleum futures. I said to purchase shares of off-shore petroleum for the future!” More often than not, when you track it down to its roots, you find that there is no starting place. Like so many things, it is just going around. Some financial advice is like that. It’s an impulse with no beginning, unfounded and floating in the wind. It would be funny if it weren’t so harmful. I once heard it called “taking advice from a pronoun — they.” As in, “Where did you say you heard that?” “Well that’s what ‘they’ said.” How Will I Feel About My Decision Later? Suzy Welch, in her book, 10-10-10: A Life Transforming Idea, suggests this test when it comes to making decisions — Ask yourself how you will feel about your decision in 10 minutes? In 10 months? In 10 years? Of course, with some decisions, there is no way of knowing how you will feel years from now. But it does make you think. Take having children for example. Babies are so cute and cuddly. But getting up repeatedly at all hours of the night is no fun. Then The Register | November-December 2016

comes teething, followed by the “terrible twos.” Child rearing is a delight, but it is also an awesome responsibility. It is difficult for a young couple contemplating raising a family to imagine all of the difficulties that accompany the joys. But at least asking the how-will-I-feel questions forces them to think. Imagining that precious bundle of joy you bring home from the hospital as anything but a cooing little baby is a mental stretch. But if you are going to really “count the cost,” you must at least try. “I wouldn’t take a million dollars for any one of my three children,” said one man about his teenagers. “But I wouldn’t give you a nickel for another one.” When it comes to large purchases and decisions involving money management, invoking the 10-10-10 rule may not be a bad idea. If you have reservations, by all means clear them up. Get second opinions. Consult with others until your yellow lights either turn red or green. If the lights are red, then stop. Pick a new course. If your lights are green, that’s a signal to go ahead and make a decision. Inaction and indecision when something is right for you, can be just as damaging to your wealth as the wrong kind of action. 

Peter J. “Coach Pete” D’Arruda, CTC, RFC® Peter J. “Coach Pete” D’Arruda, , CTC, RFC® 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: iarfc.org/consumer_articles.asp Page 33


To Comment or Not To Comment…

Interview for the IARFC

As the Register continues delving into the discussion about what to say and when, we turn to Board Member Jon M. Rogers, Ph.D., CLU, ChFC, RFC® of Greenville, SC. He has more than 50 years in sales, management, marketing and wealth management. He is the author of the book 21st Century Wealth, and is Adjunct Professor at two local Universities. He teaches the Financial Planning and Financial Management courses in the MBA Program. More than 1,000 students have taken his classes in the past 17 years.

Let’s Talk Politics Most who know me can attest that I am not afraid to voice my opinions. Since this edition of the Register will come out right before the Presidential election on November 8, I am going to throw my consultant’s hat right into the political arena and discuss “sensitive” issues. Ironically, right before writing this column, I had attended a Royal Alliance breakout session that dealt with the upcoming election and what that would mean to my clients and their investments. The information handed out – the predictions, the truisms and the research – is exactly what I needed to calm client worries about the election outcome. The truth is, it really doesn’t matter who wins as long as your investments are positioned well with good companies that are diversified and valuable. Historical data concludes that the market does not perform any better when the pro-business party is in the White House. Investors should stay on course and not “jump ship” just because their candidate did not win. Again, remain focused on a diversified portfolio that meets your goals. I share with you and my clients the 6 Truths presented during our session that Won’t Be Affected by the Election’s Outcome*. 1. Gridlock Doesn’t Mean Nothing Gets Done. The volume of legislation passed may be less if the occupant of the White House does not have majority support in the House and Senate. Still it does not mean inaction. 2. Changes in Washington Don’t Typically Come All at Once But in Page 34

Jon M. Rogers, Ph.D., CLU, ChFC, RFC®

Increments. With a few exceptions, the U.S. changes policy not with one broad, sweeping effort but with small steps. 3. Campaign Rhetoric Doesn’t Always Influence What Happens During a President’s Tenure. Promises and realities can be affected along the way by economic changes. 4. Consumers and Businesses Have a Far Greater Impact on the Economy than the Government. The overwhelming majority of what happens in the U.S. economy depends on you, me and the businesses we work for and patronize. 5. The State of the Economy Influences Who Is President, Not Vice Versa. Decades of history prove that the state of the economy determines the President, not the other way around. In fact, the economy’s impact on elections can be stated in a fairly simple equation: Strong economy (declining employment and inflation) = a win for the incumbent party candidate.

Make Money Have Not Changed. Whoever wins the game we will support, you cannot continue to stay divided for economic reasons. To reiterate, my advice to my clients is adjust your investment plan if necessary but don’t abandon your well thought out goals. That is why you came to a professional in the first place – someone who stays with you, rebalances your portfolio when necessary and focuses on the original evaluations of your financial goals. It’s probably best not to let your reaction to who wins shape your investment decisions. Patiently compare your plan to changed circumstances but don’t let electoral disappointment turn into financial disappointment as well.* When the dust settles after the election conversation and my clients are more relaxed and smiling, we muse over the grandparent role that most of us are enjoying – you know, the role that we all prepared for when we planned our retirement future and our lasting legacy. 

6. The Stock Market Doesn’t Care if the Public is Happy with Who’s President. History suggests the market is resilient to a President’s current approval rating.

Contact: 864.250.1376 jon.rogers@rogersfinancialgroup www.rogersfinancialgroup.com

While I do feel the election will proceed smoothly, there remains dissention and division in the country. We are living in a media driven environment (much more open than when I first voted. Communication is instantly accessible. However, I will throw out my own 7. Truth – Dissention Has Always Been Around and the Fundamentals of How You

*Note: Exerts of this article are utilized with permission from OppenheimerFunds, Denver, CO – granted 9/21/16. The document is entitled: Everything Investors Need to Know and Should Ignore about the Upcoming Election. Securities offered through Royal Alliance Associates, Inc. Member FINRA/SIPC. Advisory services are offered through Rogers Financial Advisory Group, LLC, a registered investment advisor. Rogers Financial Group and not affiliated with Royal Alliance Associates, Inc. The Register | November-December 2016


IARFC

Post Office Box 42506 Middletown, OH 45042-0506

Fax: 513.345.9479 Phone: 800.532.9060 Website: www.IARFC.org E-mail: info@IARFC.org

INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

Application for RFC Membership

Annual Membership Dues: Nonrefundable Application Fee (one time): Total First Year:

$200 $50 $250

Please Print Your Name_______________________________________________________________________________________________________________ (Exactly as you want it to appear on your Membership Certificate, excluding degrees or other designations)

Mr.

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Other__________ Your Preferred Salutation/Nickname (i.e., "Bill")__________________________________________

First Name____________________________ Middle____________________________ Last___________________________________________ Check Enclosed $_______________ or

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Name of Business_________________________________________________________________________________________________________ Business Address_________________________________________ Ste #_________ City____________________ State____ Zip____________ Phone___________________________ Fax___________________________ Business E-Mail__________________________________________ Business Website URL______________________________________________________________________________________________________ Residence Address______________________________________________ City________________________ State______ Zip______________ Phone____________________________ Birthdate_________________ IARFC Sponsor, if any__________________________________________ Your Educational Background (Since High School) Name and Address of Institution

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Financial Services Education course(s): ���������������������������������������������������������������������������������������� ________________________________________________________________________________________________________________________ Financial Services Experience:

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Questions relating to business and ethical conduct Have you ever been refused a surety bond or other form of employment security?�������������������������������������������������������������������������������������������� Have you ever been denied or enjoined from selling or dealing in securities or from functioning as an Investment Advisor?������������������� Have you ever been arrested, indicted, or convicted for any felony or misdemeanor, except for minor traffic offenses?����������������������� Have you ever been known personally by any other name, or have you ever conducted financial activities, conducted business or carried brokerage or bank accounts in any other name?��������������������������������������������������������������������������������������������� Have you ever become insolvent, failed in business or compromised with creditors? If “Yes” – please provide the date name and location of court, disposition, liabilities, and assets.������������������������������������������������������������ Have you ever had a license, permit, certificate, registration or membership denied, suspended, revoked or restricted, or have you had an application of such type ever withdrawn for cause?������������������������������������������������������������������������������������������������������������ Have you ever been the subject of any order, judgement, decree or other sanction of a foreign court, foreign exchange, or have you ever been the subject of any action by a foreign or domestic governmental or regulatory agency?��������������������������������

Yes Yes Yes

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Yes

No

Yes

No

Yes

No

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES” PLEASE ATTACH A WRITTEN EXPLANATION

The following should be read carefully by the applicant:   1. I hereby certify that I have read and understand the foregoing statements and that my responses are true and complete to the best of my knowledge.   2. I hereby apply for IARFC registration and, in consideration of my application, I submit myself to the jurisdiction of the organization and hereby verify that I agree to abide by all the provisions of the bylaws and regulations of the organization as they are and may be amended; and I agree to comply with all such requirements, subject to right of appeal as provided by law, and I agree that any decision as to the result of any examination(s) that I may be required to pass or annual CE requirements will be accepted by me as final.   3. I further agree that neither the association nor its officers or employees shall be liable to me for action taken or omitted in official capacity or in the scope of employment, except as otherwise provided in the statutes, bylaws, or the association’s rules and regulations.   4. I authorize the organization to make available to any federal, state or municipal agency, or any securities or commodities industry selfregulatory organization, any information they may have concerning me or to request confirmation of my status, and I release those organizations, employees and agents, from any and all liability of whatever nature by reason of furnishing such information.   5. I further agree that any part of the information contained in this application and any subsequent documents in my IARFC registration file may be divulged to interested parties as part of the referral system for the benefit of members and the public.   6. I hereby certify that I have a sound record of business integrity with no suspension or revocation of any professional licenses, and I hereby subscribe to the IARFC Code of Ethics, a copy of which I have read and understand.   7. It is agreed and understood that any material misrepresentation of facts or information given in this or subsequent application or renewal may be cause for immediate revocation of membership and all its privileges, without refund of any dues or fees paid.   8. I understand that failure to disclose any regulatory event, including suspensions or revocations, may disqualify me.   9. I agree to maintain proficiency in my work by completing continuing education in the field of financial planning and counseling — which can include subjects relating to practice management, delivery of professional services, portfolio management or financial product application and service. 10. As an applicant for registration, I understand and agree that my RFC designation with the IARFC will not become effective until submission of all required documentation in proper order and upon written acceptance by the IARFC. 11. I understand that all IARFC Certificates of Registration remain the property of the Association and must be destroyed or returned to the Association should my membership or the right to display the designation certificate be suspended or terminated. 12. I understand that continuation of the RFC designation requires 40 hours of CE per year, which commences January of the year following acceptance. 13. I understand that if I do not meet the required professional experience of 4 years, the IARFC will qualify and award me the RFA designation. _________________________________________________ SIGNATURE OF THE APPLICANT (required) How did you learn about the RFC? Direct Mail

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IMPORTANT: Evidence of license, diploma or similar documents may be requested. However, you need not submit evidence with the application. The Association is compensation neutral regarding plan or portfolio fees, insurance, securities or real estate commissions, salary or bonus. The application fee is nonrefundable.

Please Mail this Application — or Fax to: 513.345.9479


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All �ecurities �rough Money Concepts Capital Corp. | Member FINRA��IPC 11440 North Jog Road | Palm Beach Gardens, FL 33418 | www.moneyconcepts.com

To Learn More Call or Email Allen Porter (561) 847-2113 | allen@moneyconcepts.com


IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

P.O. Box 42506 Middletown, Ohio 45042

Become an RFC

®

Registered Financial Consultant The IARFC is better than e ver. education • experience • integrity • ethics approved

Learn more about the RFC ® professional designation call 800.532.9060 or visit www.IARFC.org

Register Volume 17 Issue6  

The editorial theme this issue is Legacy. Our Editor, Susan Cappa did not fall short, our delving right in with Register Profile Stephanie B...

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