Register Volume 18 Issue 6

Volume 18 No 6 November-December 2017

Laura H. Stover, RFC® Delivering Your Brand Official IARFC Publication www.IARFC.org

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

IN THIS ISSUE Taking Retirement Spending Out Of The Portfolio Vacuum How To Obtain Pre-Qualified Referrals Who Are Expecting Your Call Holistic Planning With A Unique Business Model

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DOMESTIC BOARD OF DIRECTORS Chairman, H. Stephen Bailey, LUTCF, CEBA, CEP, CSA, MRFC

Director, Isabel J. Cooper, MBA, RFC® Director, James B. Moss, CEP®, RFC®

Vice Chairman, Nicholas A. Royer, RFC®

Director, Rick B. Stanzione, RFC®

President, Peter J. D’Arruda, MRFC

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

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

Treasurer, Jon M. Rogers, Ph.D., CLU, ChFC, MRFC

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

Secretary, Michelle Blair, RFC®

Editor Susan M. Cappa susan@iarfc.org Editorial Advisory Committee Peter J. D’Arruda, RFC® Michelle Blair, RFC®

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

India Deputy Chair, Vijay S. Wadagbalkar, RFC®

Greater China Chair (China, Hong Kong, Macau & 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®

Philippines Chair, Ralph Liew, RFC®

Bermuda Chair, Antony Francis, RFC®

Taiwan Chair, Kai Tu Yuan, RFC®

China Chair, Kai Tu Yuan

Trinidad Chair, Inshan Meahjohn, RFC®

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

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®

INTERNATIONAL WEBSITES

IARFC US OFFICE ASSOCIATE TEAM

China — www.iarfc.cn

Operations Manager, Charlotte Isbell

Hong Kong — www.iarfc-hk.org

Editorial Coordinator, Wendy M. Kennedy

India — www.iarfcindia.org

Membership Services, Vicki Caplinger

Indonesia — www.iarfcindonesia.com

Membership Services, Judi Nelson

Philippines — www.iarfcphilippines.org

Public Relations, Susan M. Cappa

Taiwan — www.iarfc.org.tw

Information Technology, Randy Kriner

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

The Register | November-December 2017

The Register is published by the International Association of Registered Financial Consultants ©2017, It includes articles and advice on technical subjects, economic events, regulatory actions and practice management. The facts and opinions in the IARFC’s Register articles represent their author’s views and are not endorsed by the publisher.

The IARFC makes no claim as to accuracy and does not guarantee or endorse any product or service that may be advertised or featured.

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Advertise The Register reaches 4,000 financial professionals every issue.

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To advertise contact: 309.483.6467 advertise@iarfc.org www.iarfc.org Page 1

In This ISSUE

Volume 18 No. 6

Cover Story

Columns

Register Cover Profile: Laura H. Stover

Chairman’s Desk

12 Delivering Your Brand

7 Connection

By H. Stephen Bailey

Marketing Unplugged

Features Taking Retirement Spending Out Of The Portfolio Vacuum 10 By Wade Pfau

Is Using Proper Grammar Out of Vogue?

19 By Michelle Blair

How To Obtain Pre-Qualified Referrals Who Are Expecting Your Call 22 By Max Bolka

8 Communications — How It Distinguishes The Financial Consultant

By Bryce Sanders

Consumer Focus 20 What The Villains From Batman Can Teach Us About Identity Theft

By Peter D’Arruda

International News 32 2017 Event and Educational Program Highlights

IARFC – Viewpoint 34 Just the Sports Please

By Peter D’Arruda

More Than Money Wealth Management: Puts Success In Succession Planning 24 By Roey Diefendorf

Are You Chasing Yields For Your Clients?

If So… Don’t Get Caught Naked 25 By Christopher Hill

Holistic Planning With A Unique Business Model 27 By Rick Stanzione

Make Your Seminars More Memorable And Effective Beat Your Competition By Standing Above All Others In Your Area 29 By Jorge Villar Page 2

Departments 1 IARFC Domestic and International Directors

3 New IARFC Members 3 Events Calendar 4 From the Editor

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

The Register | November-December 2017

Biltmore Conference

N e w M R F C s, R F C s, R FA , and General Members Domestic MRFC

Members Who Recommended Members

Marcus Henderson MRFC, TN

Domestic RFC®, RFA®, General Members John W. Bucher, RFC®, IL Gerald J. Butts, RFC®, ME Michael W. Christopher, RFC®, IN Patrick B. Edwards, RFC®, NJ Alan K. Hyatt, RFC®, SC Mickey P. Jordan, General, AR Alan J. Levine, RFC®, NJ John M. Mileszko, RFC®, MA Mark J. Moss, RFC®, IN Durrette A. Ofosu, RFC®, GA Timothy D. Reeves, RFC®, MO Scott B. Self, RFC®, FL Michael H. Stewart, RFC®, IL

Jim Harris, RFC® James B. Moss, RFC®

Member Referrer Recognition

James B. Moss CEP®, RFC®

Members In the News Used with permission from The Biltmore Company, Asheville, North Carolina

Events Calendar 2017 November IARFC Exhibits Money Concepts Conference November 12 –15, 2017 Hollywood, FL December Board of Directors Phone Conference December 12, 2017

2018 February Board of Directors Phone Conference February 13, 2018 April IARFC Biltmore Conference & National Financial Plan Competition April 17 –19, 2018 Biltmore Estate, Asheville, NC

The Register | November-December 2017

Members In the News. Keep us informed on your recent accomplishments. Have you added staff, certifications, seminars, celebrated an anniversary in the business? Send a brief description and a print-quality photo when available to editor@iarfc.org.

Dr. Rosilyn Overton Receives Financial Association Founder’s Award. The International Association of Registered Financial Consultants (IARFC) is proud to recognize Dr. Rosilyn Overton, Ph.D., CRPS, LTCP, CFP®, RFC® of Mid Atlantics Securities in Great Neck, NY with the Founder’s Award. In honor of the IARFC Founder John J. Gargan, this tribute is presented to members who have delivered significant service to the operations and growth of the IARFC. Those considered as recipients of this prestigious award must have been a past or present Board Director, Officer or Committee, member, have held a professional designation award by the IARFC, a clean regulatory record or been a member of good standing for a minimum of 5 years. They must possess a high ethical and professional standard. Most important, they must have contributed to the growth of the IARFC membership by referring members and by holding or attending events that additionally help expand (above and beyond) the visibility of the organization.

Dr. Overton has been a member of the IARFC since 2006. She currently holds the RFC® designation and has been a past Board Director and Vice President of the Association.

“I am so honored to receive this award,” states Dr. Overton. “I joined the IARFC even though I was already participating in other Financial Planning organizations because I felt it offered unique benefits to its members and gave solid information on practice management and business consulting that was needed. The IARFC continues to offer these benefits to its members and it is my privilege to continue to participate in its activities.”

Page 3

From the EDITOR There seems to be no end to the excitement at the IARFC home office. We are in full swing planning the IARFC Biltmore Conference and National Financial Plan Competition. The agenda of educational presentations is filling up and the Conference is beginning to draw interest from exhibitors. We look forward to networking with many IARFC members. This will be a great opportunity to meet the IARFC leadership, as the IARFC Board will be in full attendance for their Annual Board meeting.

The Awards Banquet during the Biltmore Conference will be an event you will not want to miss as well. The Loren Dunton Memorial Award will be presented by the 2017 honored recipient, Ric Edelman of Edelman Financial. As the Award’s Committee Liaison, I am pleased to be part of the recognition of IARFC leaders with our Founder’s Award and the Member-Award-Program to be presented to our IARFC Members who have referred the most members in 2017.

The National Financial Plan Completion will allow you to mentor upcoming financial consultants. Be part of the future and help strengthen the financial consulting industry.

You may support the student participants by sponsoring the Competition. Contact the IARFC with your contribution now.

Advertise in the Advertise in the Register, published by the IARFC since 1999 and circulated in print and electronically around the world.

Advertising Representative Bill Spilman, President Innovative Media Solutions 320 W. Chestnut St., P.O. Box 399 Oneida, IL 61467 P: 309.483.6467 F: 309.483.2371 advertise@iarfc.org

The 2018 Biltmore Conference has me anticipating the future of the IARFC with great promise and growth. I enjoy being part of this Association and look forward to seeing you at the Biltmore, April 17-19.

Reprints Wendy M. Kennedy, Editor-in-Chief the Register

Register Statement of Circulation 13. Publication Title

14. Issue Date for Circulation Data Below

the Register

15. Extent and Nature of Circulation

October 2017 IARFC Membership

a. Total Number of Copies (Net press run) (1) Mailed Outside-County Paid Subscriptions Stated on PS Form 3541 (Include paid distribution above nominal rate, advertiser’s proof copies, and exchange copies) b. Paid Circulation (By Mail and Outside the Mail)

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* If you are claiming electronic copies, go to line 16 on page 3. If you are not claiming electronic copies, skip to line 17 on page 3.

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Our custom reprints produce highly attractive color or black & white copies of articles previously published in the Register and Journal magazines or on the IARFC website.

Reprint cost is determined by the number of pages, quantity ordered, color usage, and photography used in the article.

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Journal of Personal Finance The Register | November-December 2017

Loren Dunton Memorial Award Dunton continued to promote the value of the financial consultant 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 consultants. Dunton’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.

What Dunton Recognized… Having been a successful businessman, although never a financial consultant, his comments were from the heart. He used his experiences to frankly explain back then, what we recognize now, that…

Planning is not separate from the “sale” of insurance and investment products, but are different roots of the common tree.

Products are necessary elements in the implementation of the financial plan.

Salesmanship should be taught by the managers and trainers of the financial services industry.

The ethical sale of financial products and the delivery of competent advice is a very noble calling.

Honoring the Recipient The Loren Dunton Memorial 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.

Father of Financial Planning Loren Dunton, generally regarded as the “Father of Financial Planning”, organized financial professionals in the late sixties.

In 1969 he convened a group of financial professionals in Chicago and founded an industry of outstanding service and commitment. From this event and from Dunton’s leadership and interactivity with many persons now in the IARFC 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 Dunton helped to publicize an emerging profession, bringing various practitioners together for 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 Dunton’s model, more than forty countries have formed similar organizations.

The Register | November-December 2017

Criteria for the Dunton Award Candidates must hold a professional designation (i.e. ChFC, CFP®, CLU, RFC®, MRFC, CPA/PFS, CEBS, MSFS, MSFM or Doctoral degree) and have 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 have high ethical and professional standards. Their career must be in 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.”

2018 Nomination Committee H. Stephen Bailey, LUTCF, CEBA, CEP, CSA, MRFC — (2010 Recipient) Lester W. Anderson, MBA, RFC® — (2014 Recipient) Bill Carter, CFP®, ChFC, CLU, RFC® — (2006 Recipient) Ric Edelman, RFC® — (2017 Recipient) Jerry Mason, Ph.D. — (2016 Recipient) Jon M. Rogers, Ph.D., CLU, ChFC, MRFC — (2015 Recipient) Page 5

Nominees for the

2018 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, 2017.

Nominee Name: _____________________________________________________________________________________ Nickname: _____________________ Address/City/State/Zip________________________________________________________________________________________________________ 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: ___________________________________________________________________________________________________________ Email: wendy@iarfc.org or; Mail this form to: IARFC Loren Dunton Award Committee c/o staff liaison, Wendy Kennedy International Association of Registered Financial Consultants P.O. Box 506 Middletown, OH 45042

Page 6

The Register | November-December 2017

From the

Chairman’s Desk…

Connection It only took a singular visit overseas to appreciate the differences and similarities with our International Chapters and change my viewpoint. If there is one basic concept that I wish to get across to our members it is that the International Chapters and the US based membership are in this TOGETHER! First Word in I…A…R…F…C The first word of our Association is INTERNATIONAL. Rather than visiting our international peers with the intent of “showing them how we do things”, I felt I needed to sit back and listen. Reality check - I did not need to tell them how to do anything…they were way above the curve of professionalism. All I had to do was look at them with different eyes and figure out how we could help them in their efforts. But isn’t that the beauty of traveling and personally connecting with others? There are more ways than our ways.

First Realization — RFC®, a Defined Track In learning their path to becoming an RFC®, the designation was the result of a defined track and it is a VERY BIG DEAL. Hours/ years of study are involved. I attended a graduation ceremony in the Philippines and was honored to present the keynote address at the start of a full day of activities.

You could not help but buy into their excitement of the completion of their RFC® course studies.

In Hong Kong they took me to the university where I was introduced to the Chair of the Financial Department. Their courses can take up to two years to finish. Now, I fully realize why they look on their RFC® as a type of degree.

Second Realization — Professionalism In Taiwan I was introduced to Liang Tien Lung who is the Chair for China, Hong Kong, Macao & Taiwan. Their facility was impressive and I met his two children both of whom were educated in the US. Mr. Liang’s daughter served as my interpreter.

The Register | November-December 2017

will look at the membership costs in these countries as compared to the US. With that trip behind me, I now look forward to building a cohesive association where we all work together. With a better understanding, we become stronger and grow with grace. Look for exciting developments in 2018.

It’s a little early, but I want to wish everyone a peaceful and happy holiday season.

Me? I gained a new perspective and will be contemplating what is in store for the New Year. 

There is only one way to see things until someone shows us how to look at them with different eyes.

— Pablo Picasso

He has built an impressive organization with equivalent associations much like what we have in the US. Other chapter leaders such as Kai Tu Yuan and Ralph Liew not only were recognized for their business success but were generous philanthropic benefactors involved in charitable works in their communities. What an outstanding group of individuals.

Changes to Consider With a new viewpoint or rather a better understanding of the scope of the international chapters, I had to suggest changes to our Board in order to help the offshore entities stay competitive with other associations such as the CFP and the RFP (Registered Financial Planners). Because of their strict educational requirements, the IARFC Board will be looking at the experience and CE requirements to balance the needs of the offshore groups. We also

H. Stephen Bailey, CEBA, LUTCF, CEP®, MRFC H. Stephen Bailey, “Steve” Bailey, CEBA, LUTCF, CEP®, MRFC started HB Financial almost 30 years ago after already having a life insurance career. Steve is an elected member of the IARFC Board. He is also the 2010 recipient of the prestigious Loren Dunton Memorial Award. When not working with his clients you will find Steve on a golf course, spending time with his grandson or traveling with his wife, Bobbi.

Contact: 704.563.6844 chairman@iarfc.org www.iarfc.org Page 7

Marketing Unplugged Communications — How It Distinguishes The Financial Consultant From the client’s point of view, most consultants sell the same thing. Health insurance covers you when you get sick. Life insurance pays off if the situation gets worse.

Many of these products offer standardized features. How does the consultant differentiate them? Make one a better fit than another? That’s communication.

Communication is also listening. It’s the back and forth exchange between two people sitting face to face. It’s more impactful than a letter. Consultant can explain complicated products like insurance better than a webpage. Consultant can answer questions.

One of the drawbacks of sales is the consultant’s desire to be always selling. They put out a squirt of information (and keep squirting) until they are finished. That’s not communication. That’s talking. Let’s consider fourteen rules to maximize communication with clients and prospects:

1. Let the Clients Talk — How much time should the consultant spend listening vs. talking? It’s been said the work “Listen” includes the word “ten”. This implies the client should speak ten times as much as the consultant. That might be extreme, but the object is the client should do most of the talking.

Consultant Mistake: Diagnosing the problem early. Immediately offering a solution before the client has the opportunity to explain why their problem is unique.

2. The Gang’s All Here — Let’s assume married couples make important financial decisions jointly. Remember insurance is complicated. Get both people in the room.

There are two logical reasons: Joint accounts require both signatures. If the spouse is missing, the client will need to explain how they just spend money. They often can’t make a compelling case as well as you can.

Consultant Mistake: “You bought WHAT without my agreement? You can’t explain

it? Call him up and tell him you changed your mind?”

3. What’s on Their Mind? – Most clients rarely see their consultants. When you meet for a portfolio review, it’s likely they have a few questions they want to ask about unrelated matters. If you immediately start with item #1 on the agenda, they may not be on the same page. Their question is the first thing on their minds.

Consultant Mistake: Midway through their presentation, they realize the client isn’t on board. They haven’t gotten the chance to ask their question yet.

4. What’s Important to Them? – Everyone feels their problem or situation is unique.

They want to take their time explaining aspects they consider important. From your experience, you’ve seen this dozens of times. Let them talk as long as they want.

Consultant Mistake: Not saying “I can see why this is important to you. Let me make sure I’ve got all the facts right.”

5. Talk at their Level — You are a professional. You use industry jargon, assuming everyone knows as much as you. Here’s a simple test: your business card likely has initials after your name.

Do clients know the full titles of your professional certifications? Do they know what it means? They will often “zone out” because they don’t understand the concepts but are ashamed to admit it. Go as slow as necessary.

Consultant Mistake: NOT saying: “I’m sure you understand bonds, but I’m going to take a little extra time explaining what the terms mean…”

6. Speak to Both Parties — Often in new relationships, we don’t know the identity of the ultimate decision maker.

We often present to the person with whom we identity, the person that makes us feel comfortable. Often we answer their questions, while ignoring the spouses.

That’s not communication.

Page 8

The Register | November-December 2017

Consultant Mistake: NOT dividing time equally between both parties and getting them engaged in a joint decision.

for thought. Let me get back to you.” You need to tell the client what you would like to do on their behalf.

7. Does This Make Sense to You? — Also called ‘trial closes.” You want to know they are onboard, not hopelessly lost.

Consultants usually learn a valuable lesson.

A string of “yes” answers is rarely followed by a “no”.

Consultant Mistake: Skipping “Does this make sense to you?” until the close.

Being surprised when they say “No.”

12. Reading it Back — Sometimes you can be so smooth the client doesn’t realize they’ve agreed to something. (Signed paperwork and a check are good clues.)

Read back exactly what they agreed to and what you will be doing.

Consultant Mistake: NOT saying: “Here’s what I’m going to be doing…”

8. Objections — They aren’t like flies, meant to be swatted away. They can be legitimate concerns. Make sure you understand exactly what the clients are asking before you answer. That shows you were listening.

Consultant Mistake: “Hmmm… that sounds like # 4 in my objections handbook.

I’ll just parrot back that answer…”

9. What Will it Cost? — That’s a huge issue! What people pay for financial services has been all over the news. There are plenty of DOL related stories out there. Clients know your time doesn’t come free.

Consultants often make four mistakes: a. “ There’s no extra charge. It’s all included.” The charge may be built in, but it’s still a charge. b. “I just won’t bring it up.” It’s the elephant in the room. c. “I’ll tell some, but not all of the fees.”

They will eventually find out you withheld information. d. “I’ll present them while assuring the client they won’t apply to you.” Times change. Sometimes they have to sell.

Consultant Mistake: NOT starting with “Let me tell you how we make money…”

Offer scenarios.

13. Congratulate Them — Sales is often considered a zero sum game with a winner and a loser. Congratulate them on making a good decision. Restate how this should help solve the problem.

Consultant Mistake: Getting out of there with signed paperwork before the client has a chance to change their mind.

14. What Happens Next? — “Let sleeping dogs lie” is very bad advice. Clients who don’t hear from you assume the worst.

They talk with their friends. No one takes your side.

Consultant Mistake: NOT making a few phone calls afterwards letting them know the process has started and they will be receiving mail. You still see yourself as part of the solution.

The common thread of communication is listening. Being confident that everyone is on board. Clearly asking for the order.

Keeping in touch afterwards. Do you do all 14 steps? 

The Register | November-December 2017

INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

Member-Refer-A-Member Enhance the Designation "The only way that an Association grows is by attracting new members,” confirms IARFC Chairman H. Stephen Bailey.

Encouraging your peers to join is the best recruiting effort an Association can utilize. We salute your pride in being a Registered Financial Consultant and are proud to have an award recognition program dedicated to members who have contributed to the growth of the Association. The Member’s Award is presented annually in appreciation to top IARFC members who have sponsored the most qualified professional consultants that subsequently joined the ranks of the Association.

An Ongoing Opportunity The IARFC is looking to enrich the careers of your professional peers with the same membership benefits you enjoy. By referring potential IARFC members, you offer them an opportunity to tap into the premier network of members who share best practices, strategies to help grow businesses and techniques for better practice management.

10. Problem — Solution — Action — Return to the earlier part of the conversation where the client described their unique problem.

Repeat it back. Show your solution addresses each of these issues. Explain how we need to put the solution into action.

Consultant Mistake: Assuming the client “gets” that this is the obvious solution.

11. Asking for the Order – You need the go ahead from the clients. Usually this means signing papers, getting a check or transferring assets. There are many ways of doing it: “I want to work for you. I need the go ahead from you?” or “Can we proceed with the plan?” are two examples where the logical answer is yes.

Consultant Mistake: Stopping after your presentation. Waiting for the client to say: “Great! I’ll take it.” Often they say: “Food

IARFC

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

Referring a member is easy!

Take a few minutes to grow our network of the Registered Financial Consultants.

Fill out the Referral form by going to: www.IARFC.org/ReferMember Call: 800.532.9060 Email: info@iarfc.org

For details go to: www.IARFC.org/ReferMember Page 9

Taking Retirement Spending Out of the Portfolio Vacuum

Retirement income studies that focus on success rates and failure rates have tended to build into our collective psyche the idea that one’s retirement is a failure if the investment portfolio depletes. This has put too much emphasis on the portfolio and on spending conservatively to keep failure rates low. This is not the whole story for retirement income. Certain circumstances may allow retirees to accept a higher probability of “failure” and, thus, spend more aggressively from their investment portfolio. Depleting the investment portfolio is not always catastrophic.

We must evaluate the trade-off between reducing spending today to better protect future spending potential and seeking to enjoy the highest possible living standard today even if that creates greater risks for having to make cutbacks later in retirement.

Withdrawal rate studies have typically focused on the probability of depleting the portfolio while still alive, without considering what is lost in terms of life satisfaction by using a lower withdrawal rate and spending less. The fact is that when using low withdrawal rates, retirees will typically leave behind a large pot of wealth (unless their retirement returns sequence matches the Page 10

worst-case scenario). This is not usually included in the analysis, other than to recommend using a higher stock allocation to increase the average legacy.

When taking portfolio spending out of the vacuum, there are four interrelated factors that we must consider: • Longevity

Risk Aversion — How fearful is a client about outliving the investment portfolio in retirement? This is an emotional characteristic unrelated to whether one may outlive the portfolio in an objective sense.

• Reliable

Income Sources — What proportion of retirement spending is covered through reliable income sources from outside the investment portfolio?

• Spending

Flexibility — Is it possible to reduce portfolio distributions without harming the client’s standard of living in a significant way?

• Availability

of Reserves — What other resources are available that have not been earmarked to manage spending and can be used to cover contingencies?

These factors all relate to what is an acceptable probability of success, or probability of failure, for the retirement plan.

For someone who worries and loses sleep about outliving his or her portfolio, does not have much additional income from outside the portfolio, mostly faces fixed expenses without much room to make cuts, and does not have much in the way of backup reserves, it may be necessary to plan for a quite high probability of success. This will imply using a lower stock allocation and a lower spending rate. However, for someone who has less fear about outliving his or her portfolio, has adequate additional income sources from outside the portfolio, has the flexibility to cut portfolio spending without adversely impacting lifestyle, and has sufficient additional reserves, a higher spending rate accompanied by a lower probability of success could be quite satisfactory and “optimal.”

The first to explore this were Moshe Milevsky and Huaxiong Huang in their March/April 2011 Financial Analysts Journal article titled “Spending Retirement on Planet Vulcan: The Impact of Longevity Risk Aversion on Optimal Withdrawal Rates.” By referring to Planet Vulcan from The Register | November-December 2017

Experience Education Integrity

Star Trek, they mean to discuss the decisions made by a fully rational investor when facing longevity risk but not market risk. The individual does not know how long he or she will live, but the investment returns are known in advance.

The retiree has to decide how much to spend from the portfolio each year in the face of an uncertain lifespan. The authors summarize the rational investor’s decisionmaking process as follows: “Wealth managers should advocate dynamic spending in proportion to survival probabilities, adjusted up for exogenous pension income and down for longevity risk aversion.”

Several important points are packed into that sentence. The first idea is that retirees should intentionally plan to spend more when they are sure to be alive, while planning for reduced spending later on when survival is less certain.

Since survival probabilities decline with age, it is rational (on Planet Vulcan) to spend more earlier on while one is more likely to be alive, and to spend less later on when the probability of still being alive is lower. One should intentionally plan to decrease spending as ones ages to account for the lower probability of living to each subsequent age. Otherwise, retirees sacrifice too much by cutting spending in early retirement to allow for the same spending much later on when the odds of still being alive are low. With lower future spending, the initial withdrawal rate can be increased. This idea will resonate with some readers, and it will sound like a terrible idea to other readers. Simply, a greater desire to reject this notion implies that someone has greater longevity risk aversion. Even if the probability is low, this person does not want to be in a position to make significant spending cuts or to become a burden to his or her children at an advanced age.

IARFC Brochures – a well mapped informational flow for a successful and lasting relationship between You and Your Clients/Prospects.

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

Order your IARFC brochures at: www.IARFC.org/Store or call 800.532.9060, info@iarfc.org The Register | November-December 2017

As well, most retirees will have income streams available from outside their financial portfolios (“exogenous pension income”), such as Social Security and other defined-benefit pensions or annuities.

These income streams reduce the lifestyle impact of depleting the investment portfolio, which could make a retiree more comfortable with the idea of spending more aggressively than a “safe” spending rate analysis would suggest. Finally, both of these factors will be tempered somewhat to the extent that a retiree is particularly fearful of outliving his or her financial portfolio.

Greater longevity risk aversion requires spending less in order to maintain the portfolio over a longer time horizon.

To be more explicit about what all of this means, we must distinguish between “safe” withdrawal rates and “optimal” withdrawal rates. I have concerns that the 4 percent rule may be too high for those focused on identifying a sustainable withdrawal rate that will not deplete the portfolio over a thirty-year period. This does not necessarily forbid the use of a 4 percent or higher withdrawal rate. Retirees may still choose higher withdrawal rates as a part of downplaying the potential impact of investment portfolio depletion.

A simple focus on a retirement income strategy that applies a low failure rate for the investment portfolio is woefully incomplete. This narrow focus ignores the lost potential enjoyment from spending more even if it means having to cut back later, it ignores how much flexibility retirees may have to cut their spending at a later date, it ignores the availability of other spending resources outside the financial portfolio, it ignores the lowered survival probabilities in late retirement, it ignores any goals to leave a bequest, and it ignores how long the “failure” condition may last. An overreliance on only spending at a “safe” withdrawal rate may unduly sacrifice lifestyle in early retirement. The end result will be that in the majority of cases, retirees will die with a lot of unspent money that they had intended to use to support their lifestyle. Bequests will be unintentionally large at the cost of fully enjoying retirement. 

Wade D. Pfau, Ph.D., CFA, RFC® Wade D. Pfau, Ph.D., CFA, RFC® is a professor of retirement income at The American College in Bryn Mawr, PA, and a principal at McLean Asset Management.

He is also a co-editor of the Journal of Personal Finance.

Contact: wadepfau@gmail.com www.retirementresearcher.com Page 11

Register Cover Profile

Laura H. Stover, RFC® Register: Tell us about your path to becoming a successful Financial Consultant. How did you develop a passion for your calling?

Laura: I was a professional concert pianist and my focus was on music throughout high school and my early college years. I was very successful for over eight years along with my sister and brother-in-law in the Contemporary Christian Music industry. We appeared with nationally acclaimed Contemporary Christian artists that were well known through the 80’s and 90’s. We also hosted and produced a radio show (the Mid-West Gospel Hour) that featured interviews with icons in the Christian arena and within the music industry. I had a brief stint in banking, and management experience with a large Cincinnati based insurance company prior to becoming an independent advisor.

The thought of this was a bit frightening in the beginning from being an employee having benefits and overhead paid for by the corporation. I soon realized however, this made more sense in the big picture, that the relationships I had cultivated and developed, I could do so under a different platform. The idea of being able to offer so much more was the true passion in making the switch, along with moving into more of a true financial planning firm with written plans opposed to the Generalist approach emphasizing products as I previously was accustom to under the broker dealer model.

Delivering Your Brand Communication can either reflect society or cause it to change an opinion.

Keeping up with current methods of disseminating information can be challenging when ideas and news stories are instantly tweeted, posted or “YouTubed” for all to read and digest. The correct, written words and the creation of a powerful message can be a daunted task.

This month we interview Laura H. Stover, RFC®, Founder and CEO of LS Wealth Management LLC™ in Bryan, OH for advice on how to connect through writing and the spoken word to deliver your brand.

Page 12

Register: What evolved first, your financial consulting practice or your ability to communicate on a fairly sophisticated level, through the various media venues?

Laura: Definitely my ability to communicate.

With the music career, performing in front of hundreds, and thousands of people through the years, TV appearances, radio interviews, performing at fairgrounds, having a flare for running an entrepreneurial business, working in the recording studio etc., I already had developed skills that would be necessary to run and manage a successful financial practice.

To this day communication skills are the number one most important aspect to being The Register | November-December 2017

successful. It is imperative my staff is able to properly convey the image and quality of what I want. As we all evolve as I evolved, I was able to successfully prepare for media interviews, memorize, read, and acquire the necessary training to have a thorough and comprehensive understanding of the topics.

As a concert pianist, this paralleled as I perfected my craft and my ability to articulate with a large latitude and scope of various personalities to engage and establish trust. In music, interpretation and perception are developed at a very high level, along with detail. This benefited me enormously.

Also, as a woman in this industry throughout the years, I realized quickly my knowledge needed to exceed the ordinary realm of status quo and the people I encountered it had to exceed their expectations.

Register: What is your secret to clearly communicate to your audience?

Laura: As technology advances, so must the way we function in this industry. I actually “practice”. Before every event, I practice just like I did with the piano.

Some tools that enable me and compliment my communication are things like utilizing Apple and showing clients software and evaluation reports that many have never seen or have experienced with their current advisor, utilizing multiple quarterly client meetings once you have an audience (or clientele) continuing to keep them engaged, and communicating at a high level often and consistently.

income plan, no grasp on how to manage income, budget, cash flow, or protect the growth side of their portfolio implementing something different such as strategy diversification which assists my clients in achieving competitive returns, and avoiding large max-drawdowns. This has been a repetitive theme for my conversations. Times have changed, my message is more centered on topics relevant to ongoing issues of our day and time. The same message of protecting retirement income, having a written income plan, employing strategy diversification utilizing name brand money managers and boutique managers, having a tax efficient approach to the income plan, and not losing too much nearing or during retirement” has been consistent.

People have a limited understanding from my perspective on the different types of money management. They have a limited understanding knowing how to change their philosophy once they near or are in retirement. They also have “Short Term Memory Syndrome” they forget the pain of 2008. My message now employs a demonstration that percentage returns and dollar losses are two very different scenarios. My message now is that in order to geometrically compound your portfolio, you must avoid losing large of sums of your retirement nest egg. Targeting the return we

need is the focus vs. on what the S&P 500 is doing. We must become benchmark agnostic in order to be successful in limiting too much max drawdown. My message has centered around this for many years.

Register: What do you like to do best in terms of communication?

Laura: Face to face meetings. Being in front of a client or prospective client is always number one for me. That also has the highest success rate in an effective positive outcome. My favorite is having the client at my conference table, with the Apple TV technology and going into our LS Server case prep folder showing a walkthrough of the client’s situation through our evaluation appointment. This provides an income plan with Case Design Pro, a Hidden Levers Stress Test, RiskAlyze in some instances to show their true risk number, a fee analysis, budget and cash flow. We use this as effective communication tools along with my presence.

Register: Explain the relationship of communication to marketing one’s Brand. Your style your image, your process.

Laura: From the moment, a person walks through the door, the feeling I want

We continue to work to exceed expectations.

My radio show is very different in this regard as well. I utilize interviews, soundbites, and incorporate an entertainment aspect to the financial planning process with the radio show. An consultant does not have to be boring. Being a non-conformist has always been easy for me.

Register: How do you craft your message now versus years ago?

Laura: More confidence, experience and passion with what I know now. I see so many people each week completely unprepared for their retirement, in products they do not understand, they have no The Register | November-December 2017

Page 13

them to have is WOW. We have a beautiful, yet comfortable, lobby. A gorgeously lit electronic fireplace along with our chandelier that is a centerpiece. My staff greets all guests by shaking their hand, welcoming the guest like a family member, offering them a menu with a beverage freshly prepared. Many times, the quality of our evaluation meeting is so complete they often say “we have never been shown this before!”

Steve Jobs called it “a thousand songs in your pocket.” Wow. That’s captivating. He didn’t have to explain any further. We wanted it already! I want to be captivating, different, unique, knowledgeable and fun.

People don’t care about how something works. They want to know what it’s going to do for them. This is what I do best showing them what I am going to do for them and how, and it is different than what they have.

But presented so it is not scary or where they have difficulty relating. It has to feel comfortable and logical.

Register: In your opinion, what are the good and the not so good aspects of social media? How do you relate to clients who are not comfortable with current technology?

Laura: Most of our clients are pretty comfortable. A few are still desiring paper statements, they have trust issues, afraid of security issues, or their ability to navigate through or with technology intimidates them. I have my staff assist them, show them, this really helps with hurdles. Some people are lazy and need their hand held.

Once they take the step they are usually perfectly happy. Social media is good to stay connected, promote events, create blogs, and promote your successes. We use digital marketing now a lot, it is a great tool for us.

It also can help people get to know you more intimately which will build trust. It is bad when there is too much negative political commentary on a frequent basis. I think people become keyboard warriors. I have seen people say things they would never have said to a person’s face. To me this is some of the negative. Freedom of speech can go too far. It does not replace the need for humans to interact with one another personally, more intimately.

Register: What do you feel is being lost through the present methods of communications?

Laura: Personalization would be the main thing seeing all sides of an individual. I believe potential and existing clients want to be entertained, they want to know you are Page 14

knowledgeable, they want to understand and like the person communicating. You must seem approachable. The client has much higher expectations these days. With the evolving communications available, there is much more competition. It is not necessary to live in the same town any more. Clients have many choices. The best communicator is the most successful consultant. The best-known consultant is the most successful consultant. Ironically, as advances in telecommunications increase people’s ability to communicate, the quality and depth of their interaction is rapidly degenerating in my view. This trend is especially true among the vast majority of people who spend their lives “speaking” to each other through instant messaging, “grammarless” blurbs of text messaging, and short comments on social networking sites, such as Twitter and Facebook. I personally, despise conversations via text messaging. A conversation needs to occur in person anything or topic that is meaningful must have direct interaction in my view. Emailing documentaries, or texting monologues is very distasteful.

Register: How do you craft your communications to relate to clients personally and also address a broad audience?

Laura: I am consistent with my presentation. I train my staff as I am not able to do personal notes anymore due to how busy I am. We have branded notepads, yellow pad style what I used to use years ago. We modernized it, but the same personalized message is used from me. My handwriting is available on font, we found a great program to use this and transfer it to a printed note pad. My staff constructs a personalized note that seemingly comes directly from me. We have pre-approved templates, the notes are approved or adjusted and customized as needed. This is usually simple correspondence.

I am huge on personal touches. Personality and people win people. It may lean a little more high level or meticulous with a real detailed type of personality. In our appointment process, I may use a little more fact, data to support the information.

This would apply in our in-person evaluation meetings. We may utilize more numbers, math with an engineer, CPA, or professor who makes judgements based on fact.

Other clients we have to make comfortable, easy, and concise but still show the same thorough information. I occasionally pull over my long yellow pad and draw visually, this always has helped all levels of clients understand concepts, and information.

Register: Back to your own personal story and goals, how does the IARFC and your RFC® designation fit into this picture?

Laura: The educational process I have adhered to, The Wall Street Journal interviewed me regarding my client educational events. The RFC® has an emphasis on financial planning, and income planning. This is the core basis of LS Wealth Management. Our clients all need written income plans. Some do not realize when they look at their statements they have accumulated assets, but lack an income plan. We show them consistently why everyone regardless of wealth needs a written income plan.

Register: What is on your professional “bucket list”? Your personal “bucket list?

Laura: My personal bucket list, is taking time for myself. As an entrepreneur, working long hours, it is difficult to find time for personal needs. I have put a state of the art gym in my home, and have a membership at my local gym, which is a nice new facility here in Bryan, Ohio. I am working on getting back to my fitness level from 2008-2010. I was an amateur body builder. I merely did it for enjoyment, stress relief, and pure relaxation.

I have a good friend who I work out with now, she has offered amazing organic diet tips. I am seeing great progress.

Professionally, I am seeking to add another employee, delegate more work on my business running itself so it is not centered around me personally as much. We are looking to add LS Tax LLC in the very near future. This is a bucket list I am excited about. I am hopeful to author a solo book in the near future. I think every consultant should consider this. My story, our processes, our message is unique. Putting it down in writing gives a visual to a client. We also want to be more involved with our local community. Giving back to the area I grew up in and to make a difference in people’s lives as I become older, this becomes more important to me. Financial literacy within the community is a vision I have. I also want to alleviate stress and enjoy life more. The best is yet to come.  Contact: 419.633.0955 office@lswealthmanagement.com www.lswealthmanagement.com

Investment Advisory Services offered through Virtue Capital Management, LLC; An SEC Registered Investment Advisor. Virtue Capital Management LLC, is independent of LS Wealth Management LLC™.

The Register | November-December 2017

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

2018 IARFC BILTMORE Conference National Financial Plan Competition Asheville, NC April 17 – 19, 2018 Keynote Speaker

The IARFC invites you to Biltmore Conference held on the Biltmore

Ric Edelman, RFC®

Estate in Asheville, NC. Opportunities will be available to network,

Edelman Financial Services

attend CE sessions and judge the Finals of the IARFC National Financial

The Truth About Your Future

Plan Competition.

IARFC CE: 1 credit hour

Featured Speakers Dr. Jeffrey Chiew RFC® IARFC Asia Chair IARFC CE: 1 credit hour

Barry L. Dayley RFC® Money Concepts Ethics Program for Financial Planners IARFC/CFP CE: 2 credit hour

Julie Friend eFriend IARFC CE: 1 credit hour

Rick B. Stanzione RFC® R & R Group, Inc. IARFC CE: 1 credit hour

To learn more call 800.532.9060 or visit www.IARFC.org Conference presentations and /or speakers are subject to change.

Image used with permission from The Biltmore Company, Asheville, NC

Biltmore – Guest Specialty Tours Package Includes All Three Tours

Legacy of the Land Go back in time with a narrated tour on a Biltmore motorcoach.

Learn about the history of the land, structures, and former residents from a guide while visiting areas of the estate not usually open to guests. 90 minutes

Wednesday, April 18, 10:00am

Red Wine & Chocolate Program Hosted by the winery staff. Discover why chocolate and red wine is a match made in heaven. Including locally produced artisan chocolates from French Broad Chocolate and Chocolate Gems, the program centers on production of wine at Biltmore and chocolate where you will taste and experience the tactile attributes of a raw cacao bean and the process of farming origin-specific cacao and its influence on the finished product. You will sample dark and milk chocolates accompanied by four award-winning Biltmore red wines to determine which is more pleasing to the palate.

A must-do for any serious chocolate or wine lover.

30 – 45 minutes. Guests must be 21 years or older to attend.

Wednesday, April 18, 1:00pm

Guided Garden Walk Enjoy a meandering walk through the estate’s Italian Shrub and Walled Gardens with a Biltmore host offering insights into the landscaping history behind the estate’s world renowned gardens, grounds and Conservatory. You will discover the choices made by George Vanderbilt and acclaimed landscape architect Frederick Law Olmstead and see how their designs have endured for more than a century. 60 minutes, ¼ – ½ mile

Thursday, April 19, 10:00am

Omin Grove Golf Outing Golf Outing sold separately

Golf Outing – Legendary Golf at the Omni Grove Park Inn Swing into a round of golf on the legendary 18-hole course at The Omni Grove Park Inn. The 6,400-yard championship course has been played by PGA stars Bobby Jones, Ben Hogan and Jack Nicklaus and even President Obama. Feel a sense of pride and accomplishment after navigating the tree-lined fairways and bent greens with amazing views of the Blue Ridge Mountains all around.

Elevated tee boxes on the par-70 course provide perfect sight lines for each drive. Includes golf fees and shuttle from Biltmore Village to Omni Grove Park Inn.

Tee Time, Thursday, April 19, 2:00pm

Images used with permission from The Biltmore Company, Asheville, North Carolina

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

call 800.532.9060 or visit www.IARFC.org

Agenda

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

Tuesday, April 17 5:00pm – 6:00pm 6:00pm – 7:30pm

Registration Welcome Reception,

Shuttle Departures Village Hotel Lobby

Biltmore Conference

Lioncrest Lobby

April 17 – 19, 2018 Asheville, NC

Lioncrest Veranda

Networking and Exhibiting

Wednesday, April 18 7:30am 8:00am – 8:30am 8:30am – 9:20am

Registration

Lioncrest Lobby

Breakfast, visit with Exhibitors CE Session

Lioncrest Veranda Lioncrest Grand Ballroom

9:30am – 11:40am

National Financial Plan Competition 3 Finalist Plan Presentations

11:40am – 1:00pm 1:00pm – 1:50pm 2:00pm – 6:30pm 6:30pm – 9:00pm

Luncheon, visit with Exhibitors Lioncrest Veranda CE Session Lioncrest Grand Ballroom Relax & Explore the Estate IARFC Awards Banquet Lioncrest Veranda ® Keynote Speaker – Ric Edelman, RFC

10:00am – 10:50am 11:00am – 11:50am 12:00pm – 1:00pm 1:00pm

Financial Plan Competition Biltmore House Guest Tours Golf

Thursday, April 19 8:00am – 9:00am 9:00am – 9:50am

Attend CE Sessions

Breakfast, visit with Exhibitors Lioncrest Veranda CE Session — Ethics Program (2 hour credit) Barry L. Dayley, RFC® CE Session CE Session Luncheon, visit with Exhibitors Closing

Lioncrest Grand Ballroom

Lioncrest Veranda

Added Tours

Behind-The-Scene Guest Tours & Golf Wednesday, April 18 10:00am 1:00pm

Shuttle Departures Village Hotel Lobby

Legacy of the Land Tour Red Wine And Chocolate Program

Thursday, April 19 10:00am 2:00pm

Guided Garden Walk Golf Outing, Legendary Omni Grove Park Inn

Agenda is subject to change. All Attendees and Guests receive a Length of Stay Pass, allowing you to take in the Biltmore House Tour, and gives access to our Guest Package which, includes: Legacy of the Land Tour, Red Wine and Chocolate Program, Guided Garden Walk. Golf Outing at Grove Park is separate.

Images used with permission from The Biltmore Company, Asheville, North Carolina

IARFC Biltmore Conference Registration Admission Item

April 17 – 19, 2018, Asheville, NC

IARFC Member Registration fee Registration Deadline: February 15, 2018 $595 Discounted Price $545

Thursday, January 18, 2018

CE Sessions, Ethics Program National Financial Plan Competition, Judge the Finals

Registration Deadline: February 15, 2018

Optional Items

April 18 & 19, Luncheon with Exhibitors

Biltmore Length of Stay Ticket April 17, Reception, Wine & Hors d’oeuvres April 18, IARFC Awards Dinner Banquet

Shuttle Service, Charlotte Douglas International Airport (CLT) Departing CLT at 2:00pm EST, Tuesday, April 17, to Biltmore Estate $75

Total Amount due

$

(Total Registration, Shuttle, and Tour fees)

Indicate Quantity Needed

Payment Options

Departing Biltmore at 9:00am EST, Friday, April 20 to CLT

1. M ail Registration with payment to: IARFC P.O. Box 506, Middletown, OH 45042 2. F ax Registration to: 513.345.9479 (credit card only) 3. E mail Registration to: info@iarfc.org Make Checks payable to: IARFC

Indicate Quantity Needed

Guest Specialty Tours $80

April 18 & 19, Breakfast with Exhibitors

Guest Registrations Includes

Guest Registration fee Guest/Spouse/Friend

$75

April 17, Reception, Wine & Hors d’oeuvres

April 18, IARFC Awards Dinner Banquet

Thursday, January 18, 2018

$275

Member and Non-Member Registration Includes Biltmore Length of Stay Ticket

If Registered By

$745

INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

If Registered By

Non-Member Consultant Registration fee Registration Deadline: February 15, 2018 $795 Discounted Price

IARFC

Package Tours (includes all three, per person) Indicate Quantity Needed

Credit Card# (Visa, MC, Amex, Discover)

Legacy of the Land Tour, Wednesday, April 18, 10:00am Red Wine and Chocolate, Wednesday April 18, 1:00pm

Exp. Date

Guided Garden Walk, Thursday, April 19, 10:00am

Golf Outing - Legendary Omni Grove Park Inn $140 Outing (includes shuttle and golf fees, Thursday, April 19, 2:00pm, Tee Time) Indicate Quantity Needed

Attendee Information First Name

Middle Initial

Ste/Apt#

Business Phone

Cell Phone

Last Name

Salutation

Middle Initial

Special Rate $179 per night online: villagehotel.biltmore.com Click Promo Code and Enter Group Code: 19P6DI, click Update, click Find Rooms, Select Option

City

State

Zip

Email Address

Last Name

Continuing Education Credits: Each state has different insurance and securities CE regulations. This event has not been pre-registered for CE. Varying credits will be available for IARFC, PACE, and state credits, depending on sessions attended.

Lodging: IARFC is not responsible for attendee/guest hotel fees and/or taxes.

Guest Information First Name

Lodging: Village Hotel on Biltmore Estate

Call: 866.779.6277, mention 2018 IARFC Biltmore Conference

Business Name Street Address

Security Code

Salutation

Recommended Attire: Business casual is appropriate. A jacket or dress is optional, but recommended, for the Awards Banquet April 18.

Cancellation: A refund (less 20% administration fee) will be made if notice of cancellation is received in writing up to three weeks before the event.

We regret that no refunds can be given after this period. A substitute delegate is always welcome at no extra charge.

Disclaimer: The program may change due to unforeseen circumstances, and the IARFC reserves the right to alter the venue and/or speakers.

IARFC accepts no responsibility for any loss or damage to property belonging to, not for any personal injury incurred by attendees at our conference. The IARFC reserves the right to publish pictures and or video of this event and its attendees. A list of attendee contact information, will be shared with Exhibitors.

Is Using Proper Grammar Out Of Vogue?

When I was in elementary school it was a given that we were taught spelling and grammar. All the rules of writing were drilled into us over and over again. We were taught the differences between their, there and they’re; the rule of I before E except after C; when to use to, too, and two, plus a ton of other grammatical needs when writing a letter, a story or anything that required spelling properly. How many times have you or your staff been confused as to when to use effect or affect? One being a noun and the other being a verb. Today grammar is pushed by the wayside. Most students are not even taught how to write in script or cursive--all because they are usually typing into a computer, tablet or phone. There really needs to be a return to the old way of thinking so that the next generation is prepared for real life.

When it comes to the business world, a handwritten note in script, spelled correctly, goes a long way. If a resume crossed my desk with improper use of the English language in spelling or grammar, it was an automatic decline. Reason being, if someone didn’t take the time to check their resume to get a job, then what type of job would they The Register | November-December 2017

be doing for me? Would I need to go over everything they wrote before it went out, so as not to be embarrassed by the way it was written? That would be impossible.

Communication is a key in any sales or customer/client related business. Being able to carry a conversation with both your peers and work staff, is something that is critical in the workplace. Transposing a conversation in to a written piece requires a good command of the English language. This follows through to your LinkedIn profile or any posted pages that represent you. Make sure that your marketing team is aware of the importance of proper capitalization, grammar and spelling. How many times have you come across a written piece that was printed professionally, only to see a typo or incorrect punctuation? After spending your money on the mass printing, what do you do? Send it out and hope that no one notices or discard it and start over? Reinforcing the importance of communication, both written and verbal, helps to open the door to many opportunities. Remind your staff that when communicating in writing that they are not only a reflection of you, but a reflection of themselves.

Be sure that they will tell you that is the reason why they invented Spellcheck! 

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 19

Consumer Focus What The Villains From Batman Can Teach Us About Identity Theft Identity theft has been a problem for ages.

Now, in the electronic age, it is even more of a threat. There are simple remedies and common-sense strategies to minimize the possibilities of becoming a victim. Let’s look at some of the villains of the comic and movie series Batman and see what we can learn from them.

I remember when I first started watching Batman way back in the 70’s, one of my favorite villains was Cat Woman whose secret identity was Selina Kyle. She was a jewel thief and “cat burglar”.

As far as ways to help keep your identity private, you must make sure that your personal information in your home and office is locked away in a safe or filing cabinet. This includes things such as tax returns, passports, credit cards, bank cards, SS cards, and credit card bills. Make sure to take pictures of all credit and debit cards front and back and keep those pictures in a safety deposit box.

Just in case your cards are stolen, you now have a list of all cards and contact information to cancel those cards.

I recommend not carrying any more than 2 credit cards with you at all times. There are special wallets you can carry your cards in that block the ability of identity thieves to steal your card information electronically.

When using a card to pay for things at a terminal (such as a gas station) jiggle the device with your hand to make sure it isn’t flimsy to the touch. If it is, it could be a sign that an identity thief has installed a skimmer.

These skimmers read your card information so the thief can clone your card. One strategy I use at gas pumps when I pull in, I pull up the WiFi option on my phone, if I have a very strong signal, there is a possibility that an identity thief is nearby as they need to be close to the skimmers to download the information when your card is skimmed. If you notice a strong WiFi signal, Page 20

it may be a good idea to go to a new pump or station.

One of Batman’s most enduring enemies was the Riddler. He took great delight in incorporating riddles and puzzles into his plots and left them behind as clues for the authorities and Batman to solve.

These days, it is up to us to play the part of the Riddler to the identity thieves. One of most potent weapons we have is our passcodes. It sounds basic, but coming up with a strong password is vital these days. Do not make your passcode anything that could be guessed by someone who would have a bit of information on you. Like using your hometown or street address. Never use your Social Security number as a password. Think about what would happen if someone did steal your password, they could get into your bank and brokerage accounts and hit you before you even knew it was happening.

Change your passcode periodically. Make sure your passcode has letters, numbers, some capitalizations and symbols too.

Many use a password autofill program on their computers. This is fine but you must require a password before someone can access. I know, it’s your home computer or the one in your locked office and it is inconvenient to have to enter a password but just think what would happen if someone broke into your home or office and was able to sit down in front of your computer and not have a password requirement to stop them?

The time always comes when it is time to get a new computer. What should you do with the old one? You could donate the old computer but first, take out the hard drive and either store in a safe or smash with a hammer. The information on that hard drive

is probably a lot more valuable then you realize and in the wrong hands, could cause a ton of problems.

Harvey Dent was one of Batman’s closest allies and Gotham City’s district attorney until he had acid thrown into his face by bad guy Sal “Boss” Maroni. The acid not only scarred him, it also damaged his mental state and caused him to become a two-faced, schizoid criminal mastermind obsessed with duality.

Keep this in mind when you receive letters, emails, phone calls, or any other form of contact from someone claiming to be with a company or organization. Sometimes, people aren’t who they say they are. Never respond to an email that asks you to “verify” your personal information. Same with people who call you. Always assume those folks aren’t who they say they are, even if their email, email address, web address or name sounds official. A common trick is to hide behind an official mask and use the intimation factor as someone in authority to steal your information. White collar criminals are really good at making things look and sound real, going as far as having a phony caller ID appear on the phone when they call.

The best strategy if you are unsure is to get the person’s name and contact information The Register | November-December 2017

they wait to be shredded. The main idea is to keep all private information private and out of view from the folks that don’t need to see it. A small investment in a good shredder can help out tremendously.

Special Note to companies: There have been stories of companies going out of business or doing a spring cleaning and dumping all old client folders in a dumpster. This could lead to those clients being in danger of identity theft and you liable to a fine of up to $5000 per file or more. Never do this. and then do a Google search for the actual company they claim to be with. Ronald Reagan said it best back when he was the President, “Trust but verify!”

Bane is an escaped convict from an island prison in South Africa. He is a villain and an assassin and has abnormal physical strength. With his bare hands he could shred a document to an unreadable level.

Since most don’t have his strength, a heavy-duty confetti-cut shredder would be a good alternative. Don’t not cut corners on the shredder. Cheap shredders may make it easy for a motivated thief to piece together the information.

A good path to stay off of identity thieves’ radar is to not make it easy for them.

Anything that you are planning to throw away that has any information on yourself, family, or clients should be instead shredded. Yes, this includes all those unsolicited credit card offers you get. Don’t want to buy a shredder or worried about messy cleanups? You can always subscribe to a bonded shredder service that comes to your office once a week/month and shreds all your documents. Just make sure they give you a locked box to deposit all documents as you wouldn’t want documents sitting in the open for days as The Register | November-December 2017

There is no better way to protect your identity than by freezing it. Some states require the credit agencies to offer this at no charge while others do charge for this service. The freeze prevents big purchases being made by you (your identity and SS number are frozen from big purchases). The main question is what happens when you want to make a big purchase? You simply enact a “thaw” of your credit and then refreeze when done.

As the commercial I hear for a national identity theft protection service always ends with a disclaimer saying that no one can be protected 100 percent of the time, it is important to note that the more vigilant you are, the less identity theft should be a problem. 

The Joker was a criminal mastermind with a warped and sadistic sense of humor. He was a constant thorn in Batman’s side.

These days, the joke is on us when we shop online if we aren’t careful. Always shop on secure sites. How do you know if the online site is secure? Take a look at your browser, if the web address starts with “https” rather than “http”, you know it is secure. The “S” stands for secure. If you still aren’t sure or don’t trust online, the site should have a toll-free number. You could always call the number and give the person at the trusted company your credit card information.

One great way to make sure the financial joke isn’t on you is to get a free credit report every four months. Each of the 3 agencies offer a free one each year.

No need to get them all at once, stagger every four months and you’ll always be entitled to a fresh one. Make sure not to go to the phony sites that charge, go to annualcreditreport.com for your free reports.

Mr. Freeze was a former cryogenics expert in Gotham City who had a laboratory accident that lowered his body temperature to the point where he must wear a cryogenic suit. He utilized a freeze gun that froze his targets solid.

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: www.iarfc.org/consumers/consumer-resources Page 21

How To Obtain Pre-Qualified Referrals Who Are Expecting Your Call Are you looking for a proven way to ask for referrals where you don’t feel like you’re begging and your clients won’t feel any pressure? I’ve been teaching this successful method for over 20 years.

Why The Old Ways Don’t Work Usually, consultants have been taught by sales trainers to ask a client: “Who else do you know?”

“Name three people at your country club (church, work, etc) whom I can call.”

The latest variation instructs clients to write down the names of three people, as if the act of writing the names down somehow makes them better qualified. These are not referrals. At most, these are names your client thinks could use your services. More often than not, it’s just a list of people your client knows. There is no connection to you or your services. Here’s what it looks like (see Diagram) In this triangle there is no connection between YOU and the REFERRAL. What’s needed is for the bottom line to be filled in. You want clients actively referring interested people to you on a regular basis, completing the triangle. Here’s how you do it.

Step 1: Make Sure Your Client Is Happy Happy clients tend to refer others. Unhappy clients don’t. “Mr./Ms. Client, are you happy with what we’ve done for you today? Has this been helpful? Useful? You get the idea.

Step 2: Confirm The Benefit This assumes that you give something of value to your client. Any relationship is based on giving. Each time you speak with a client, you should be thinking in terms of what you can give. What are you looking to provide?

“By the way, would you do me a favor? If you know anyone else who would value (this is the only place where you have to think) a plan that cuts their estate taxes to zero like we did for you, so that they can leave money to their favorite charity while Page 22

making sure their heirs enjoy the same or more than they otherwise would, would you let me know?

for a quick 10-15 get acquainted call.

Would you do that for me? Would you pave the way?

Step #3: Get Them To Pave The Way “Great, thank you. With their permission, I’d be happy to call and introduce myself.” This completes the bottom of the triangle and connects you with the referral. This is what makes it a pre-qualified call. You must train each client exactly what you want them to say and do.

Unlike many systems being taught, asking for referrals should not be a condition of doing business. Under no circumstances should you say, “I get paid three ways; fees, commissions and referrals” because you haven’t given anything of value to your client yet.

You can add the following. “In fact, I’ll send you an email you can put a note on top of and forward to them. It might be more convenient that way. And like I said, if they’re interested, with their permission, I’d be happy to call and introduce myself, just Diagram

Take The Initiative Your client says, “If I know anyone, I’ll definitely have them give you a call.” How many of those calls do you think you’ll get?

That’s right, zero. Again, you must train your clients exactly what you would like them to do.

CLIENT

YOU

REFERRAL The Register | November-December 2017

You can respond, “Thank you, but you know, I have found that even the most well meaning clients can get distracted. You know how it is. Many times, it’s hard to pick up the phone. So if it’s alright with them, with their permission, I’d be happy to call THEM and introduce myself, just for a quick 10-15 get acquainted call. Would you do that for me? Would you pave the way?”

Who & When To Ask Begin asking clients for referrals as soon as they sign paperwork and write a check, or as soon as the check arrives and you thank them for their business. (You do thank your clients for their business, don’t you?) Also you can ask when you call to verify receipt of a confirmation, statement, invoice, or any other paperwork or distribution check. (You could do this every month if you are currently short on clients.)

Also, ask for a referral upon completion of a client service request.

How Often To Ask The short answer is: Ask everyone all the time. How many clients do you speak to in an average day? Two? Three? Five per week? Ten? Each and every time you speak to a client, you should ask for a referral. If you speak to ten clients in a week, you should be asking for referrals ten times.

That’s 40 times per month. This will generate new business.

tell you what. This Friday, when you see them, go ahead and let them know you found someone you like and trust. And like I said, if they’re interested, just let me know, and with their permission…

If at any point your client says, “Oh, you want ME to ask if it’s OK for you to call” you can always respond, “Well, yes, I don’t want to waste their time (or mine for that matter) if they’re not really interested.

If you’re golfing on Friday, why don’t I check back with you Monday and see if they’re interested. Of course, anyone you refer will receive special attention and the finest service.”

The Numbers: What To Expect With this method, you end up with every client representing, on average, one viable referral. Some will be ongoing advocates for you. Out of every five clients, one or two can’t or won’t give you referrals.

You receive far more than just a list of names your client thinks can use your business. You get pre-qualified, interested referrals who have given you permission to call. Try it, it works!. 

JOB SEEKERS, YOUR NEXT Financial Planning CAREER OPPORTUNITY COULD BE CLOSER THAN YOU THINK.

Job Seeker Benefits •

Access to high quality, relevant job postings.

No more wading through postings that aren’t applicable to your expertise.

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Personalized job alerts notify you of relevant job opportunities.

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Career management – you have complete control over your passive or active job search. Upload multiple resumes and cover letters, add notes on employers and communicate anonymously with employers.

Max Bolka

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Anonymous resume bank protects your confidential information. Your resume will be

Bounce Back “Fake” Referrals For clients who give you a name the first time you ask, go ahead and take the name, number and email address. Then, bounce it back to them.

Max Bolka, is a 34-year veteran of the financial services industry who developed and served nationwide financial planning and investment clientele. For the past 20 years, he has also been “Building First-Class Financial Advisors” of all kinds through his industry professional speaking, writing and one-on-one mentoring program. For more visit his website.

“This is great. Thank you. Where do you know Mr./Ms. Referral from? Golf? Terrific!

How often do you go golfing together? I’ll

Contact: 828.713.4116 max@maxbolka.com www.maxbolka.com

The Register | November-December 2017

careers.iarfc.org

The third may be neutral, but the fourth and fifth, or about 40% of your clients, will be your advocates. You’ve probably seen these people before, but now you have a systematic way to identify and train them.

You’re not forcing anyone. Just ask as many times you need to until you find out where they stand. You’re positioning yourself with top of the mind awareness, because nobody wakes up in the morning, rolls over and says to their spouse, “Honey, we’ve got to get our Financial Consultant some new business today!”

But along about the second or third time you ask at the end of a call or meeting, “Would you do me a favor? Would you...” your client will interrupt you and say, “Oh yes, you know my brother-in-law and I were talking. He received the same inheritance I did. I told him all about you and he said to go ahead and call him, he’s interested.” Congratulations, you just got a pre-qualified referral.

IARFC’s CAREER CENTER at

displayed for employers to view EXCEPT your identity and contact information which will remain confidential until you are ready to reveal it.

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Value-added benefits of career coaching, resume services, education/training, articles and advice, resume critique, resume writing and career assessment test services.

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Page 23

More Than Money Wealth Management Puts Success In Succession Planning Once upon a time, a long, long time ago, you started as a rookie consultant. You hustled to get new clients. You studied to learn the trade. And you actually added clients to your database! These clients were just like you; starting from nothing and trying to grow “it” into something. You both succeeded and now it’s 30+ years later and you’re both trying to figure out “what’s next.”

The sub-plot to the story is that the 30+ years of striving to accumulate financial resources to achieve “success” has often created more problems than satisfaction.

Yes, many have concluded that more money is not the answer and they are frustrated with their traditional money management/estate planning.

Fortunately, the story need not end here. Your clients who are searching for significance will find this attainable only from “more than money” wealth management (your personal and social wealth.) In fact, as I write this, understand that your clients are actively looking for a consultant who has a broader understanding of wealth management.

Here’s where YOU can be such a consultant to provide this added perspective and truly distinguish yourself from the pack of traditional planners.

The buzz word for the 60-somethings is “succession planning.” This is true for YOU, just as it is for your clients. You love what you’re doing but you want to slow down the pace. So, each of you looks to a younger generation, perhaps one of your children, to be the solution.

But for the story to have a happy ending, you need a way to connect with your client and “scratch where they itch.” So we re-wrote the script. At 3D Wealth Family Office Services, we have incorporated “more than money” advising along-side of our traditional money advising. Here are the elements that go into the mix: 1. A shift in focus from the Individual as the client to the Family as the client.

2. Incorporating multiple generations of the Family into the planning process (yielding to a more likely successful succession plan).

3. Incorporating multiple generations of the Advisory practice into the planning processes (yielding to a more likely successful succession plan).

4. Utilizing digital technology (using the NextGen’s preferred mode of information processing) to connect consultant with the Family and the members of the Family to one another.

Or conversely, one day the older consultant “doesn’t show up,” but the family client knows precisely what consultant to call upon because they have been working with the NextGen advisor for hopefully years.

This is the ultimate succession plan for a truly successful transition of your consulting practice. And they lived happily ever after.

Key Initiatives: Differentiate yourself from the traditional advisors by moving towards “more than money” wealth management.

Turn your individual clients into multigenerational family clients.

Create a multi-generational advisory practice to serve your family clients. 

5. Separating the “More Than Money” family office practice from the “Money” practice.

This will help the consultant from falling back into the traditional “transaction trap.”

Take Two: To that end, you bring in a younger consultant to lighten your load. As a multi-generational team, you introduce this younger consultant to your older client of 30+ years and his family. The relationship is solidified through the digital technology platform. Your “value added” is dramatically expanded and so are your fees!

Back To The Story: Take One: To that end, you bring in a younger consultant to lighten your load. You send this younger consultant to your older individual client of 30+ years. Would you be surprised if your client’s reaction is something like this? ”I’ve known you a long time. I’m really not interested in having a kid advise me on my affairs.”

Would you be surprised if your client’s reaction is something like this? ”I’ve known you a long time. I’m really glad that you have brought in the next generation as your successor to work with me and my next generation successors”.

I know this happens. It has happened to me!

Not the happy ending I was looking for.

Finally, one day the older client “doesn’t show up,” but the Next Gen of the family

Page 24

knows precisely what consultants to call upon because they have been working with your team for hopefully years.

I know this happens. It has happened to me!

This IS the happy ending I am looking for.

Monroe “Roey” Diefendorf, Jr. CLU, ChFC, CFP®, CIMA, CAP, RFC® Monroe “Roey” Diefendorf, Jr. CLU, ChFC, CFP®, CIMA, CAP, RFC® active since 1970, Roey is the 4th generation of his family in the business. He has authored over a dozen books, including 3 Dimensional Wealth: A Radically Sane Perspective On Wealth Management. Roey, in conjunction with Shawn Barberis, JD, has introduced “MoreThanMoneyVault.com” a technology tool to deliver “total” wealth management.

Contact: 516.759.3900 roey@3dwealthadvisory.com www.3dwealthadvisory.com The Register | November-December 2017

Are You Chasing Yields For Your Clients?

If So… Don’t Get Caught Naked Do you hold yourself out as an investment professional? If so, here is a very important question for you: What percentage of your clients’ current portfolios are truly safe and/ or risk free?

As an investment professional myself, I know part of our job is helping our clients increase their yields (aka rates of return) and grow their wealth over time. However, another key role we have is helping our clients avoid large losses.

Today We are in Uncharted Waters The best way to begin this article is to review these all-important facts: FACT 1: The stock market has substantially risen for many years.

FACT 2: Interest rates have remained very low for many years.

Why is this important? Because the combination of these facts proves that today we are experiencing a very unusual, unprecedented, and most importantly, dangerous time frame. For example, I think every investment professional can relate to this statement; “There has never been a time in my career (like these past several years) where safe money yields are not even enough to meet — or beat - my client’s fees.”

Please understand that when I refer to “safe money” yields, I am talking about investment options that carry very little or zero risk.

What is the Risk-Free Rate of Return?

According to Investopedia.com, the risk-free return is a “theoretical” rate of return attributed to an investment with zero risk.

This risk-free return is the interest an investor receives on their money from investing in an absolutely risk-free investment over a specified period of time.

What is a Risk-Free Security?

Although a risk-free security is “theoretical”, below are what I believe to be the three most widely-recognized truly “safe money” options: 1. Treasury bills (T-bills) – The most widely recognized risk-free investment is a T-bill because they have these characteristics: The Register | November-December 2017

• T -bills are assumed to have zero default risk because they represent and are backed by the good faith of the US government.

• T-bills are sold at auction in a weekly competitive bidding process and are sold at a discount from par.

• They don’t pay traditional interest payments like their cousins, the Treasury notes and Treasury bonds.

• They’re sold in various maturities in denominations of $1,000.

They can be purchased by individuals directly from the government.

Note: According to Treasury.gov, below are the current T-bill rates (approximate): • 6-mo. = 1.10% • 1-year = 1.25% • 2-year = 1.40% 2. Money Market Accounts and Funds — Although money market accounts and money market funds are not considered to be risk free, they are among the safest places to invest monies. Most money market accounts purchased through banks are insured by the FDIC.

I should note that money market accounts are different from money market funds.

Money market funds are offered at brokerage or investment firms. Although money market funds are also largely perceived to be among the safest investment options, they are not insured by the FDIC. Note: According to Ally.com and Vanguard. com, below is the current 1-year money market rate (approximate): • .75% - .85% 3. Certificates of Deposits (CD’s) — A CD is a known as a time deposit because you are committing your monies for a period of time (such as 6 months, 1 year, 3 years, etc.). Here are some common CD characteristics: • Among the safest investment option • Largely available through banks and credit union.

• Pay higher interest rates than a typical savings accounts.

• Almost always FDIC insured.

Note: According to my research among most of the largest banks, below are the current CD rates (approximate): • 1-year = 1.25% • 2-year = 1.50% Page 25

Two Ways to Chase Higher Yields As investment professionals, traditionally we have two options for seeking a higher yield/ rate of return for our clients over time: 1. Taking risk — usually investing in the stock market 2. Locking up money — usually investing in the bond market The Stock Market Has Risk The stock market is one of the best investment mediums for achieving higher rates of return. On the other hand, as growth potentials increase…so does risk.

What causes the stock market to become riskier? Just like every investment medium, the stock market moves in two long-term directions, which nearly everyone refers to as Bull and Bear Markets.

Historically, the greatest risk for large losses occurs after a prolonged period of rising prices. In other words, every great Bull Market has been followed by a Bear Market where large losses occurred. So the longer and stronger a Bull Market extends itself, the closer you are getting to a Bear Market.

Over the past 7+ years, the stock market has experienced a prolonged Bull Market that ranks among the longest and strongest in history. If you sit back and think about this objectively, what this means is that if the stock market continues to increase, so does the potential for large losses.

The Bond Market Has Risk Most investors and investment professionals perceive the bond market as an investment medium that offers “interest and safety”.

However, the fact of the matter is the bond market offers “interest and risk”.

For example, Vanguard Total Bond Market Index is the largest US bond fund by assets.

The fund has an average bond duration of 6 years. That means that, if rates were to rise by just one percentage point (which has almost occurred), this mutual fund could lose as much as 10 percent. If rates were to rise two percentage points, this fund could lose as much as 25 percent.

What causes the bond market to become riskier? Bonds and interest rates have an inverse relationship. What this means is that when interest rates rise, bond prices decline.

This helps explain why, historically, the greatest risk for large losses in the bond market occurs during a prolonged period of rising interest rates.

Until recently, for over 30 years interest rates had been trending lower — Page 26

plummeting from approximately 20% down to 0%. Along the way, bonds yields surged and so did the popularity of bonds.

However, over the past year the Federal Reserve Board reversed their long-term trend of lowering interest rates and embarked on a series of rate hikes. They have also expressed the likelihood of future rate hikes, and possibly at a much faster pace.

In March of 2017, Federal Reserve Chair Janet Yellen left little doubt that the Fed will increase interest rates — and likely at much faster pace. In a speech to The Executives’ Club of Chicago, Yellen said, “We realize that waiting too long to scale back some of our support could potentially require us to raise rates rapidly sometime down the road, which in turn could risk disrupting financial markets and pushing the economy into recession”.

Important Questions: • Do most of your clients have welldiversified portfolios?

• Do most of your clients own a large number of mutual funds?

• What percentage of your clients’ mutual funds are stock or bond market related and, therefore, “at risk”?

• What percentage of your clients’ portfolios are truly safe?

only find out who is swimming naked when the tide goes out.”

Please consider this: If the large majority of your client’s wealth is chasing yield in the stock and bond markets, this means the bulk of their hard-earned wealth is also exposed to risk and the potential for large losses.

My Two Cents…and Worth Every Penny My advice is to consider increasing the amount of “safe money” for your clients.

Yes, I understand today’s meager “safe money” yields will not help your clients grow their wealth — but they will provide increased protection against risk.

During the past several years, most investment professionals have been advising, recommending, and guiding their clients to venture out into deeper and dangerous waters – with less regard and respect for risk.

As an investment professional, the only thing we can guarantee our clients is that things will change. When the stock and bond markets change, and the tides inevitably go back out, yet again we will find out who was aggressively chasing yields and, as a result, is left naked. 

Our Clients Don’t Like Low Yields As previously noted, today’s “safe money” yields are extremely low, unattractive, and unpopular. Truth be told, most of our clients are not comfortable or confident when their portfolios are: 1. Heavily invested in “safe money” places 2. On the sidelines — out of the stock or bond markets 3. Moving sideways or decreasing in value To add insult to injury, when you factor in inflation and investment fees, “safe money” investments are bound to, at best, produce neutral or negative results.

Chasing Yield Has Risk Let’s be honest. Given today’s prolonged Bull Market and period of low interest rates, investment professionals are literally being forced to “chase yield” by venturing into the stock and bond markets. Why? Because “safe money” alternatives are rarely an option or consideration — since they don’t produce enough yield.

However, it is critical for us to put this into a “big picture” perspective. Back in December 16th, 2008 (during the eye of the 20082009 Bear Market storm and financial collapse), the legendary investor Warren Buffet made the following statement; “You

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 The Register | November-December 2017

Holistic Planning With a Unique Business Model It is important to create a unique business model. This requires thoughtful planning and persistence. The process of developing a sustainable and honorable business is eventful and rewarding.

Many companies have rules and procedures that one must follow to provide continuity. Our office has guidelines that foster continuity in what we consider to be a “new normal.” Today I would like to share what we have found to be a basic but effective and natural process for holistic planning.

Our goals include: • Staying busy through good and bad economic times.

• Being diversified in our services in a natural way.

• Always marketing internally.

• Providing frequent client touches each year with little effort.

• Building strong relationships with our clients.

• Improving client retention with ease.

• Providing holistic planning more naturally.

• Having a more balanced life with less pressure or stress.

5. A nnual Payment List. Those who make annual payments.

6. Life Premium List. Those who have premiums due on 5, 7, or 10 payments to ensure retention and plan review.

7. 90-year-old list. This may be the clients’ last opportunity to contribute to an annuity.

8. 40-65-year-old List. Includes long-term care needs as well as chronic and critical care needs.

9. Wills and Trusts List. Estate planning and updates.

10. 64-65-year-old List. Senior health care supplement needs.

11. Birthday List.

12. Tax and Tax Completed Lists. This includes annual tax returns, payroll, quarterly taxes, estate taxes, etc.

13. Multi-generational Planning List. Clients who already are A and B clients might appreciate opportunities to plan for their children or grandchildren.

14. Divorce List. Clients who may need additional help due to their new circumstances.

15. Annual Review List. Guide to providing services and also identifying

16.

17.

18.

19.

20.

21.

22.

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new monies that could be available for investment.

Pending Sales Lists. These are used for tracking commissions, thank you cards, referral opportunities, and discussion of additional services.

Prospect Lists. Currently solicited.

Hot Prospects List. Appointments scheduled.

Seminar Lists. Adding to marketing potential.

Woman in the Workplace List.

Retirement Party List.

HO and Auto Lists.

Commercial Clients List.

Referral List.

These are just a few of the lists we have developed. We add new ones as we identify new categories.

Using this List Book approach affords us a 97% retention rate with our clients. I believe it helps us to see our clients more frequently and to be positioned to round out our services to them as appropriate. Our company motto for 36 years has been “Building Relationships to Last a Lifetime.” I

I have put together what we call a List Book.

This includes a master client list, which is divided into A, B, and C clients.

A = Clients that are larger, influential, and in a position to be approached for further business opportunities, referrals, etc.

B = Clients who are important and have a lot of potential for generating additional business that is identified but not yet completed.

C = Clients who offer fewer opportunities or require limited services.

We next put together the following lists to delineate all of the financial service needs a client might need personally or in his/her business.

1. 59½-year-old List. In-service withdrawals.

2. 70½-year-old List. Many clients take withdrawals but don’t need them so there are opportunities for reinvesting or repositioning their funds.

3. 62-year-old List. Social Security discussions.

4. 401K rollover Lists. Clients who have retired or will be retiring.

The Register | November-December 2017

Page 27

My company’s holistic business model affords us the opportunity to work as a team in assessing the needs of our clients, collaboratively generating the information needed to serve them well, and working with them to maximize and protect their financial interests.

As my mother-in-law once said to me, “When you’re green, you’re growing, and when you’re ripe, you’re rotten.” There is over 100 years’ experience between our team members. We truly value and respect each other’s opinions. We choose to remain “greenies” and to keep learning from one another. As far as our clients are concerned, there is never an attitude of “one size fits all.”

This is why I love what I do. It is all about our clients, not us. With this approach, we have enjoyed a 97% retention of our clients. hope our system gives you some sound ideas for enhancing your practices.

The financial arena as we know it traditionally has had a narrow focus. Clients in the upper-income brackets typically have had more exposure to a variety of professional services, and there has been more unity in what these professionals offer.

Upper middle- and middle-class clients have tended to have access to services but not so much in a unified fashion. Thus, their financial plans have been more piecemeal.

Financial consultants, accountants, trust attorneys, etc., have their separate priorities.

Communication between them many times has been weak or non-existent, leading to an estimated 85% failure rate for those plans.

Holistic planning is essential to providing the best protection for our clients and their well-being and to avoiding dangerous gaps.

It also strengthens our company.

What is holistic planning? It is the difference between offering a complete, customized financial plan and just a basic, boilerplate plan. If you don’t have a holistic plan, you usually are missing some key components.

It is like a puzzle that is missing some of its pieces.

Some of the key pieces in a holistic plan are a tax strategy, life insurance, disability insurance, long-term care insurance, financial planning, and legal guidance for wills and trusts to name a few. In addition, these key pieces must be customized to the individual needs of the client, and they must be in harmony with one another.

Coordination of all of these components is essential to meeting your goals and objectives as an ethical and responsible organization as well as the needs of your Page 28

clients. Holistic planning also assists in identifying any shortfalls that may exist in your process or services to clients and to assist with correcting them. Holistic planning helps with establishing priorities and overcoming procrastination.

Sound financial plans need to have sound financial strategies to meet the client’s goals and objectives. Holistic plans also assist in addressing such issues as paying too much in taxes or fees; risking the loss of everything due to a catastrophic event; or running out of money in retirement.

Do you want to create a holistic plan that covers all of your bases? If so, you must ask appropriate questions — or take a thorough financial inventory, as we say in our company. Our financial inventory will address the income needs now and later, assets, debts, shortfalls, and, most important, what the client’s goals and objectives are or need to be. All of this information helps guides you to the place where the client feels most comfortable. It also helps the client delineate his/her financial goals and develop a better understanding of the investment process. As the saying goes, “People don’t plan to fail but rather fail to plan.”

A basic holistic plan should include the following areas: 1. Investment strategies providing growth opportunities to meet long-term needs.

2. A strategy using life insurance protection to prolong the assets you have to meet your longevity.

3. Preservation of money through tax strategies that avoid unnecessary liabilities.

4. Complete estate planning to help ensure that your surviving spouse is protected and your final wishes are honored.

I have shared our business model with many professionals in the financial field. Ironically, they have all said it wouldn’t work for them because their shareholders don’t have the vision of unified services. We are the only company in Utah and California and probably many other states that utilizes the holistic planning approach with a unique model like ours. We are always green and growing! 

Rick B. Stanzione, RFC® Rick B. Stanzione, RFC®, President & CEO R&R Group, Inc. June 1981 to present. As President and CEO he is responsible for the day to day operation our 30 million dollar company. He specializes in the securities arena with regards to retirement planning using custom made strategies to assist our client in working toward being independent and rather than dependent in their retirement years. The company also offer other financial services with sister companies to include Business Insurance, Personal Lines Insurance, Accounting & Tax Services and exit strategies for business owners. Rick serves as a Director of the IARFC Board.

Contact: 801.622.5774 rstanzione@rrgroup.org www.rrgroupinc.net The Register | November-December 2017

Make Your Seminars More Memorable And Effective Beat Your Competition

By Standing Above All Others In Your Area

If you are concerned that many have caught on to the power of seminars as a “new client acquisitionâ€? strategy, you are not alone. There are thousands of events being held around the country and if you live in an area of wealth and well-to-do individuals, rest assured that they are continually getting invited to attend these presentations by many different industries‌ Financial Consultants, Estate Planning Attorneys, Franchises, The Register | November-December 2017

Home Improvement, Senior Living, Travel, to name a few.

They work, that is why you see so many being done. For over 22 years, the social dinner event approach we originated has drawn over 17 million individuals from that ideal target audience of 55+ Age with disposable money to invest or buy. The events give them a safe, ideal and comfortable setting

where they can get educated, a chance to shop, and the opportunity to gather more information about products and services that they are interested in. These are motivated individuals that respond to your invitations and willingly come see you present your services or products. Keep in mind; they are still very guarded since so many companies want their attention.

Knowing and understanding that psychological and social reality there are Page 29

techniques that you can utilize to break down the barriers by making your event stand out, more appealing, different, and more memorable.

Your new client opportunities will come from approximately 40% to 50% of your attendees. Please do not get overly concerned about the other 50% that do not make an appointment… it’s absolutely normal. Also, it does not matter why those folks came. They attended and helped you fill the room. That in itself is a great dynamic that makes you look very good.

You commanded a full room and that type of impression is invaluable on that day and even for later (I will explain.). You are never going to convince 100% of the audience. You did nothing wrong in your presentation, it’s just the math and the numbers of doing seminars. Making a great impression at your events will also help you for later because those that chose not to make an appointment with you, for whatever reason, will compare you and your event when they attend someone else’s. Remember, those folks are still shopping so they will see the difference if you did a good job. You will then have a greater opportunity to get that call when they finally decide to make a decision to meet with someone.

So here are some very simple and proven ways to elevate your event to a social and more memorable experience for the audience.

1. Play music while they are showing up and signing up at your table… as loud as you can (within the venue rules).

Many events I have attended are too quiet and solemn with folks whispering and just sitting there starring at each other while they wait for things to get started. That is a terrible way to kick off an event. Instead, create a welcoming atmosphere of comfort and sociability.

2. Hand out some credibility information before you start speaking… something like your accomplishments, testimonials, your professional bio, family background, Financial Tips, Trivia Facts about their age group… see www.americannostalgia.com, serve snacks, have a video playing in the background with facts/sayings (like in the movies), etc.

3. Open by explaining why you are hosting a dinner event and share how many you have done (or will be doing) tell them why you chose that non-selling, nonlecture approach. In other words sell the event. Clarify why it makes sense for Page 30

them to learn, gather valuable information, question, and get a second opinion on their current plan or what they had in mind for retirement. Start by easing their concerns before you present anything.

Set the mood.

4. At some point in your presentation, explain clearly what will happen when they meet with you privately, one on one. It is critical that they understand what they are going to experience and what to expect.

Explain who are the right types of people to meet with you… describe who you can help. What situation do they need to be in for you to be able to give them advice? Be transparent and genuine.

5. This one works really well. Include door prizes, raffles or giveaways at the end of your event. You will not believe the anticipation that this will create.

People LOVE to win things. It helps you create a fun, memorable, and comfortable environment. You could use these as a way to collect comment forms, feedback sheets or appointment cards as the entries to the raffle. YOU have most likely experienced this dynamic before.

Let me explain… you go to trade shows and pick up chachkis (for your kids, yeah right), you’ve probably have sat at clubhouses after a golf tournament and waited until dark when they raffle all of the sponsoring gifts, maybe you have attended Charity auctions and hope to land some of the top prizes displayed… right? We have all experienced that winning feeling. It makes people feel involved and it closes your event with a feel good ending. You can use Gift Baskets, Flower arrangements, Wine, Gift Cards, Pies (yes, pies), Books, Music CD’s, Picture Frames, etc.

In summary, it’s all about the setting, the mood, and your audience that day, not what’s convenient for you. You cater to them by creating a social environment where you can gain, trust, credibility and acceptance. That is what truly generates more appointments. Your presentation is important but more important is that they have a great experience. That is what will make your event memorable and more effective. I always say that it’s what you do and what you say between your slides that connects you to the audience. Without these dynamics it’s just another workshop, sales pitch or lecture.

Like I said at the beginning of this article, there are thousands of dinner presentation events being promoted around the country, many in your own back-yard. They really

work, that is why you see so many. You can fight it and not participate at all or you can take advantage of this proven social prospecting phenomenon by stepping up and standing out. If not you, your competition will. Following the marketing formulas you can realistically expect to get in front of 600 to 1,000 motivated prospects over 12 months using the dinner event approach… anywhere in the country, no matter what product or service you sell as long as the revenue for each sale exceeds $2,500 dollars.

Everything can be done for you except presenting and managing that audience in that room. That is where you come in. You determine your success. The amount of appointments you procure will be 100% in direct proportion to how you present and how you connect with the attendees that day. Focus on that part and call us to continually fill your rooms with motivated prospects.

That powerful marketing and sales combination will help you grow your business exponentially. 

Jorge Villar Jorge Villar is the President and Founder of RME360, a $24 million dollar marketing powerhouse. With more than 26 years of direct marketing experience, he is known in several industries for his ability to create campaigns that garner the highest response rates. He is the innovator of the National Seminar Success program that for the last 17 years has accounted for more than 65% of the seminar events being held nationwide, with over 17 million attendees. Mr. Villar has also been very successful marketing to physicians and business owners regarding Succession Planning and Asset Protection.

Mr. Villar is a frequent key note speaker at national financial symposium and marketing training conferences.

Contact: 813.885.8231 josh.danielson@rme360.com www.rmeleads.com The Register | November-December 2017

IARFC Ethics Approved Status

Ethics Approved Status means adherence to the IARFC Code of Ethics with a clear record for the past five years.

Members are biennially verified through FINRA, State licensing records and internet searches.

Brand Your Ethics Approved Status Set yourself apart from other consultants Order your Ethics Approved desk plaque today $10 plus s&h

(6”w x 4”h) VisitVisit the IARFC storestore for these valuable branding toolstools the IARFC for these valuable branding www.IARFC.org/Store or contact 800.532.9060, info@iarfc.org www.IARFC.org/Store or contact 800.532.9060, info@iarfc.org The Register | November-December 2017

IARFC IARFC INTERNATIONAL ASSOCIATION OF INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

REGISTERED FINANCIAL CONSULTANTS

Page 31

International News 2017 Event and Education Program Highlights Highlights Events pictured of the US IARFC Chairman, H. Stephen Bailey’s August 14-19 visit to International Chapters were listed in the September/October issue of the Register.

IARFC Hong Kong, Hong Kong August 15-16, 2017 IARFC Meetings with US Chairman H. Stephen Bailey IARFC Philippines, Makati City, Philippines August 17, 2017 IARFC Meetings with US Chairman H. Stephen Bailey IARFC Annual Forum, RFC Day and Graduation August 18, 2017 IARFC Meeting with U.S. Chairman Stephen Bailey Greater Asia Chairman, Jeffrey Chiew met with H. Stephen Bailey IARFC Taiwan, Taipei, Taiwan August 19, 2017 IARFC Meeting with U.S. Chairman H. Stephen Bailey

IARFC Hong Kong and Macau August 31, 2017 Professional Certificate in Financial Consulting (Executive Program) completed. Students who complete the program and meet the RFC® admission criteria, are eligible to apply for the RFC® professional designation. The four-subject program was taught by highly qualified trainers, including “Finance and Investment” by Dr. Victor Ng, Adjunct Associate Professor, Department of Economics and Finance, HSMC; ”Economics” by Dr. James Cheong, Assistant Professor, Department of Economics and Finance, HSMC; “Law and Tax” by Mr. Antony Sin, Barrister-at-Law; “Practical Aspects of Financial Consulting and Case Studies” by Dr. Teresa So, Chairman, Hong Kong and Macau, IARFC and an accomplished Financial Planning practitioner.

Lingnan Life educators welcomed the IARFC delegates, August 16, (center L-R) Dr. Teresa So, Mr. H. Stephen Bailey, Dr. Raymond Ng, Director, Lingnan Institute of Further Education

IARFC Philippines, Bicol Region, Philippines October 2-6, 2017 RFC® Course completed. Students who complete the program and meet the RFC® admission criteria, are eligible to apply for the RFC® professional designation.

IARFC Hong Kong, Welcome Reception, August 15, (front L-R) Mr. Thomas Cheung, Chairman, Professional Development Center, Mr. H. Stephen Bailey, MRFC, US Chairman, Dr. Teresa So, RFC®, Chairman, Hong Kong and Macau, (back L-R), Mr. Eugene Lam, Ms. Bobo Hong, Mr. Allan Wan, Mr. Alex Shum, Ms. Winky Cheung

Page 32

The Register | November-December 2017

IARFC Hong Kong and Macau Professional Certificate in Financial Consulting, August 31, 2017, Ms. Joanna Kwok, Director, EDC, HSMC (front row fourth), Dr. Teresa So (front row fifth) and the students who completed the program with satisfaction.

IARFC Philippines Annual Forum, RFCÂŽ Day and Graduation, August 18, 2017, US Chairman H. Stephen Bailey attends graduation ceremony

IARFC Taiwan August 19, (L-R) Ms. Liang, Mr. Liang Tien Lung, Chairman Greater China, IARFC, Mr. H. Stephen Bailey, US Chairman, Mr. KaiT u Yuan, China and Taiwan Chair

The Register | November-December 2017

Page 33

IARFC

Viewpoint

The Register taps into the experience and viewpoints of the IARFC Board. They come together from different backgrounds, with different goals and expressing different opinions. The constant is the respect and dedication given to their commitment to the IARFC.

Just the Sports Please Can I please just watch my sports without having drama enter the situation? I want to enjoy the game and not get a political rundown of who is staying in the locker room, who is taking a knee or who is locking arms with what owner. I finally realized that the politicians with their agendas don’t care about us, truly. They are happiest spending our money and encouraging dissention.

Can I just please process the news without having to determine validity? Although, these days the news media has made it easier for us. They don’t even hide the fact they are cheerleaders for their biased opinions. Fake news, real news, I swear by the words of wisdom from Ronald Reagan – trust but verify.

It makes doing business harder for people like us who rely on trust as the foundation.

DOL regulations are aimed at those who operate on the fringes of ethical behavior.

Proposed regulations do not make a difference to us at all. We have always done the right thing. If you are in it to help people out, your position is strong.

Now that the drama of the election has settled some, I realized the more things change, the more they stay the same.

Congress gets in the way just like they always do. My clients still worry, some people still panic and others still prepare — meticulously.

The future seems a little more positive especially with my business clients. Business owners recognize that President Trump is pro Business. Owners can invest money knowing they will not be taxed on the profits.

Page 34

Before they had no idea what the return would be with policy driven by a leader who had not owned a business. My own revenues have increased three fold because people are ready to make decisions.

What I also observe are people worrying about not having a pension, do they have enough money to outlast their longevity. We nicknamed our solution “Plan to 121”. I can’t say for sure, but I am thinking that will be adequate timing for protection. For those who need help in addressing the costs of these protections such as long term care insurance, there are hybrid life insurance policies with long term benefits attached.

Some of the death benefits are put towards financial issues while you are living — tax free. We help our clients find these solutions.

Have you ever heard the term “Financial Amnesia?” That means not remembering lessons learned from the financial downturn in 2007–2009. People are returning to the same pre crises mindset and we find ourselves assuming the role of “investment downers”, that is reminding people to pay attention to the risk factor.

We remember how the story ends even if they don’t. For those who feel they are way up in the market and still in the market — our reality check is… you are not up until you are out.

Our overall media message to address trust issues, fear of the future and risk attitudes is to treat them with humor. This is how we get people to believe in us. Thunderstorms discharge energy — laughter releases frustration. People are not as fooled by the

fake news stories. They see through the manipulation. We have fun and keep politics out of our message completely. Our listeners love it.

The moral of my story is that I am much happier come game time shutting down the political drama, fake news and media manipulations. I’m a simple guy…just the sports please. 

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 The Register | November-December 2017

MRFC

$150 Off E offer expir

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es Decemb

MASTER REGISTERED FINANCIAL CONSULTANTS

Master Registered Financial Consultant

n Fee

er 31, 201

7

MRFC Certification Application Applicant Information

Exam

(please print or type)

The Certification staff will review all candidate

Please provide your name only on the line above as you want it to appear on your Certificate.

applications submitted to determine if the candidate

Business Information

is eligible to sit for the MRFC credential and for completeness and

Prefix First Name

Middle Initial

Last Name

Suffix

payment of fees.

Business Name Preferred Salutation

Candidates will be notified of their eligibility to sit for the MRFC Exam. The candidate will have 90

Street Address Ste#/Apt City State Zip

days, after notice of application approval.

Business Phone Fax Cell Phone

Fee Schedule

Business Email Address

Non IARFC Member option

Primary

Yes

No

Website

Home Information

Please send all mail to my

$100

Examination/Certification Fee:

$300

Commence on anniversary of passing MRFC Exam MRFC Annual Recertification Fee $300

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Choose one

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$100

Examination/Certification Fee:

$300

Must have a minimum of four years of experience as a full-time practitioner in the field of financial planning or financial services: Full-time Part time

Commence on anniversary of passing MRFC Exam

Education (Education criteria requires an applicant to assert and document achievement in any one of the areas)

MRFC Annual Recertification Fee

Education, Professional Designations or Licensing

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Educational Background

$0

Nonrefundable Application Fee: Total payment

$200 $75

Payment Options Graduated

School, City, State (Since High School)

Yes

Major

No

Degree

1. Mail Application with payment to: IARFC P.O. Box 506, Middletown, OH 45042 2. Fax Application to: 513.345.9479 (credit card only)

(Evidence of license, diploma or documents may be requested. You need not submit evidence with the application.)

Professional Designations: RFC Other

AAMS

CFA

CFP

ChFC

CLU

CPA

EA

LUTCF

Check payable to: IARFC

Licensing Broker/Dealer Securities Licenses: Series 6 and 63 Series 65 Other Insurance Licenses: Life Health

3. Email Application to: info@iarfc.org

Credit Card: Visa, MC, Amex, or Discover Series 7 and 63

(Personal) FINRA CRD No. Series 6 and 66 Series 7 and 66 Credit Card#

Variable Contracts

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No

Code of Ethics (Applicants must subscribe and adhere to the IARFC Code of Ethics)

Signature

I will at all times put my client’s interest above my own. I will maintain proficiency in my work through continuing education. When fee-based services are involved, I will charge a fair and reasonable fee based on the amount of time and skill required. I will abide by both the spirit and the letter of the laws and regulations applicable to financial planning services. I will give my clients the same service I would give myself in the same circumstances.

Questions relating to business and ethical conduct (If you check "Yes" to any of the following questions please attach a written explanation)

Recommend a colleague for the MRFC Yes

No

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?

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If “Yes” – please provide the date name and location of court, disposition, liabilities, and assets.

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Attestations (Applicants please read carefully) 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 the MRFC credential and in consideration of my application, I submit myself to the jurisdiction of the Association and hereby verify that I agree to abide by all the provisions of the By-Laws and regulations of the Association as they are and may be amended. I agree to comply with all such requirements, subject to right of appeal as provided by law. I agree that any decision as to the result of any exam(s) that I may be required to pass or annual Continuing Education (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 regulations.

4. 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.

5. 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 the MRFC credential and all its privileges, without refund of any dues or fees paid.

6. I understand that failure to disclose any regulatory event, including suspensions or revocations, may disqualify me from initially obtaining the MRFC credential or could result in revocation of the credential.

7. As an applicant for registration, I understand and agree that my MRFC credential will not become effective until I have met all the eligibility requirements and had have successfully passed the MRFC exam.

8. I understand that the MRFC credential remains the property of the Master Certification Board, (MCB) and must be destroyed or returned to the MCB should my right to display the credential be suspended or terminated.

9. I understand that the continuation of the MRFC credential requires the successful awarding of forty (40) hours of financial services focused CE credits — of which four (4) hours every two years must be related to Professional Ethics commencing the January of the year following initial acceptance.

10. I understand this application is valid for sixty (60) days from the date of receipt by MCB’s home office and I have ninety (90) days upon application approval to schedule the MRFC exam.

11. I authorize the organization to make available to any federal, state or municipal agency, or any securities or commodities industry self-regulatory 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.

12. I further agree that my contact information contained in this application be divulged to interested parties as part of the member profile on the IARFC website for the benefit of members and the public.

13. I understand that except for my certification status, written authorization by me is required to release my information.

I attest that I have read and understand the above, that the information I have provided complete and accurate to the best of my knowledge and belief, and I further understand that my MRFC certification may be revoked if I provided any false or incomplete information.

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Date

How did you learn about the MRFC? Advertisement Article Association Broker/Dealer Direct Mail Email Exhibit IARFC Website Insurance Co. Referral Other

Referred by (if applicable)

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International Association of Registered Financial Consultants 1046 Summit Drive, P.O. Box 506 Middletown, OH 45042-0506 P: 800.532.9060 F: 513.345.9479 E: mrfc@IARFC.org W: IARFC.org

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

IARFC INTERNATIONAL ASSOCIATION OF REGISTERED FINANCIAL CONSULTANTS

P.O. Box 42506 Middletown, Ohio 45042

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