My last post, “Roth IRA Conversions May Trigger a Lawsuit”, addresses the unnecessary tax consequences of Roth IRA conversions. In this blog, addressing the conversion to life insurance is a big wake up call to those insurance agents and advisers that use it. Some investment advisers take a holistic approach to retirement, including the tax consequences now and in retirement. Few of those advisers use cash value life insurance, they generally use mutual funds and/or ETFs. They seem to have a … [Read more...]
Did You Clear Your FaceTime/Skype Video with Compliance?
Schedule a face to face appointment is fraught with problems, not to mention seminars which are near impossible. Often financial professionals don’t record appointments or seminars. The general rule of thumb is to submit an outline or power point to compliance before the scheduled event. But these days, during the pandemic, much of the unapproved communication to consumers and clients is via FaceTime, Skype and Zoom. Somehow these forms of video contact seem to escape oversight. But they’re not … [Read more...]
Fraud Alert: Pandemic Creating “Window Tracing” Signatures?
Financial professionals are in a tough spot. They generate fees and commissions to earn a living. Most marketing strategies call for face to face appointments or seminars. Right now, that’s on hold. Some have used Facetime, Skype or Zoom to continue meeting with clients and prospects, but the administration of new and existing business has been exacerbated by social distancing and the fear of exposure to susceptible seniors to potential infection from outsiders. During this time, securing client … [Read more...]
Exaggerating the Claims of Indexing
On the security side of indexing: There are many indices both foreign and domestic. The S&P 500 Index is the most popular in the U.S. It’s been called the poor man’s portfolio because of its diversity and low-cost fees. But diversity in and of itself is not a hedge against market losses. The index is comprised of 500 large cap companies that reflect equities and are subject to market gains and losses. So, it’s important to convey the risks involved with using indices. On the insurance … [Read more...]
Your Silence During a Black Swan Event is Deafening
Sometime silence is golden. Other times it’s just plain yellow. During turbulent times many advisers, money managers and insurance professionals go dark on the web and silent with their clients. Unreturned phone calls from financial professionals during unprecedented drops in the market only fuel client dissatisfaction, which can lead to legal action. Communication is best. Service is a cornerstone to the financial industry. Better to take a tongue lashing from your angry clients then to dive … [Read more...]
Time is No Longer a Cure All for Recovering Losses
The term long haul investor or long-term horizon is still a good benchmark to measure when assets will be used such as in retirement modeling. But the Ibbotson mountain chart that highlights long term gains could be misleading if the clients are unaccustomed to experiencing losses. Again, a risk tolerance test can help determine your client’s disposition towards market exposure. A young conservative couple may have time on their hands, but not the heart to go through down markets, bear … [Read more...]
Risk Tolerance Test is a Part of a Client’s Profile
A risk tolerance test may not be scientific, but it can indicate your client’s psychological disposition towards money and help you draw some conclusions. There are several online examples that use scenarios to reveal your client’s psychonomics, their mindset on money. Consumers actually appreciate taking the test to discover insight on how they may feel during a down market, a bear market or black swan event. Married couples should take the test as individuals. This can demonstrate the … [Read more...]
Few Financial Professionals Use a Client Engagement Letter
An engagement letter is part of best practices when you’re on a first contact appointment or the front end of the discovery process. An engagement letter basically outlines what the adviser and client will do. Sometimes it addresses items the adviser won’t do. It’s part of the defensive posture to identify the rules of the relationship between adviser and client, especially for new relationships. That being said, an adviser should create an engagement letter for existing clients as well during … [Read more...]
The Movement to Preserve Principal is Shifting into High Gear
The pandemic popped the clutch and downshifted the mentality of investors and savers alike to principal preservation. If that indeed is the client’s psychonomics and is verified by a risk tolerance test, then ok. But to sideline everyone from market driven products to annuities and participating whole life insurance better be confirmed in writing or you’ll be open to the accusation of just selling insurance products and high commission contracts. On the other hand, if you’re telling seniors … [Read more...]
Second Opinion Marketing to Gain Prospects while Clients Lose
The online claims of advisers who said they had exit strategies ready to offramp from the broad road of the market destruction are way overblown. Marketing to new clientele by promoting exit strategies that your existing clients were “timed” out of the market, when in fact they lost like everyone else is fiction, fraud and prosecutable. By the time, the public observed the market’s accelerated decent, the institutional money managers had exited the building. Few if any small firms or … [Read more...]
- 1
- 2
- 3
- …
- 7
- Next Page »
