The Paragon Advisor

Independence Day

As we prepare for the 4th of July weekend, think for a moment of what your founding fathers went through.  They risked their life, liberty and pursuit of happiness for their and your long-term freedom.  For that, I want to thank them.

Looking back on that courageous decision, we realize without hesitation that it was the right thing to do.  While there were challenges during and after the battles and still to this day – not a single American would doubt the merit and benefit of their courage.

Why then, do advisors--subject to a proprietary set of products, arcane compliance implementation or ridiculously low payouts--not make the break for their independence?  Didn’t anyone tell them that they are self employed? 

Once upon a time I would have agreed that the brand and other benefits provided by such large employers may have been worth the high cost of membership – but what is the value today?

Just like your clients keep thinking, I ask you to do the same with respect to your firm.  What’s in it for you?

I could ask questions all day – but for the benefit of all the “employee advisors” out there, please share your thoughts.  You may support my notion that being independent is the only way to go, support the old fashioned large firm employee model or shed some new light in between here and there. 

It is your future.  It is your business.  They are your client relationships.  And there are many independent firms out there ready to show you the not so new, brave world and change your life and business forever.  You owe it to yourself as the fiduciary and chief stakeholder of your business to investigate your options.

What a Dentist Can Teach Financial Planners

I was in the steam room at my daily hangout – the South Shore YMCA--and after getting the room quite hot and steamy, the door opened with another heat seeking exerciser.  And on this rare occasion, the new roommate was a sharp, middle-aged woman who was quite talkative.  She talked about her great swim and the comfort of the steam, and somehow the topic of her career came up.  She was a dentist in the local town of Hanover, MA.  I’ll call her Dr. Y.

With my coaching experience in the financial professional space and my prior life as a CPA where we had a few dentists as clients, social contacts with a few dentists and my observations of dental practices over the years, I know more than the average Joe about practice management of a professional practice – including Dentistry.

So I asked Dr. Y if she had a coach or practice management consultant.  From what I would consider a naturally outgoing and personality laden professional came even more exuberance.  “Of course I do,” she proclaimed.  “I have a coach for me personally, one for my practice and yet another one for my staff.” She went on to say that she can’t imagine running a successful dental practice without these consultants and coaches.  Then she paused, and said, “Yes I can.” 

Dr. Y attends the local dental conferences and the large regional and national conferences as well.  She talked about her discussions with dentists in their early 60’s, who have been practicing for nearly 30 years.  They made good money throughout their careers, but many had practices that were waning during this age of vanity and we-can-fix-anything in dentistry. They did not keep up with technology, they did not have a coach, and they did not have a practice management bone in their body.  They were pure practitioners – working with many of the old tools used by retired craftsmen before them.

I mentioned that in our advisory practice, the ideal rep is one who holds themselves out as a proactive and holistic wealth advisor, who craves coaching, mentoring and is always focused on better service for their clients resulting in a better business for the advisor.  In fact, the advisor who isn’t interested in coaching or mentoring in any way is one not likely to consistently grow or be long for our firm.

She then segued back to how she wonders why all advisors don’t do that.  She was surprised to see that advisors, business owners in their own right, aren’t willing to invest in their businesses like a dentist would.  Ironically, dentists think that the average financial advisor makes way more than they do – but the reality is probably the reverse. She went on to say how she is thrilled with her CPA firm who only serves coachable dentists interested in state of the art practice management and technology.  This firm requires her to hop on a plan to Texas at least once a year, sends people from Texas to her 2 or 3 times per year… and they do everything.  During her annual visit they do a complete financial X-Ray.  They look at everything business and personal down to the last cent, including all insurance policies, documents, investments and life plans.  Dr. Y is one raving fan of her service provider… and not once did the issue of cost or price come up.

How many of your clients would rave about you like this?  Would you take the advice of this savvy Dr. and invest in your business? Why don’t more CPAs realize that their clients would love for them to take control and oversee EVERYTHING?  Do you have a coach?  Is your firm supporting you in a way to be able to implement this type of practice management advice? Would you like to be in the steam room at 9 AM on a Wednesday morning?

The Paragon Advisor is a Year Old!

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A body in motion stays in motion – so get moving

I can’t even tell you how many times I’ve heard this comment in the past few months.  “I’m going to wait to get my financial house in order when things return to how they normally are.”

To that, I must ask, "What is normal?"

Is refinancing your home so you can buy another to strike it rich on that leveraged piece of speculative property normal?  I don’t think so.

Is the unprecedented bull Market from 1982 to 1997 normal?  I don’t think so.

Is "sign and drive" your life away with brand spanking new wheels normal when you have to borrow to send your kids to college?  I don’t think so.

Is a bank giving you a mortgage to buy your dream home without any verification of your earnings or assets normal?  I don’t think so.

Is just showing up for work enough to have your business prosper and grow or for you to get a promotion?  I don’t think so

So I ask you, what is normal?  And if you agree with my prior comments about what is not normal, what exactly are you waiting for?  You surely can’t be happy with earning less than 1% on cash deposits?  You surely can’t think that what you earn on your money is the only part of your financial life that matters.  You surely can’t think that mortality is something that may hit you some day. You surely can’t think that your business is in the toilet exclusively because of the current economy, and that it will come back when everything else does

Our economy will stay in the crapper as long as people have these rose colored views of how, when and what they are going to do to get out of this financial mess that we are in.  Do something constructive for darn sakes.  What can you do?

• Pay down debt.
• Save for future needs
• Re-balance your portfolio
• Invest in

  America

• Speculate only when you can afford to loose
• Teach your kids some of the tough lessons that boomers are learning for the first time as they approach age 60
• Reinvent yourself and your business
• Be the person that you want to see when you look into the mirror

Everyone looks at the WW I and II generation as the true superstars that they were.  They are admired for their courage, tenacity, loyalty, family values, and toughness – both mental and physical and last, but not least, their willingness to do what it takes to move up a notch.  Is there some of that ethic of old days needed here for us spoiled boomers and privileged, politically correct workers of the 21^st century.  I think so.  I, for example, hate to paint.  But if I lived in a house that looks like it just came through a war – you bet your butt I’d be out there with a scraper and a brush to make it look good.

For all of our benefit, please stop sitting on your butt waiting around to see how the stimulus bill will help you, or how some ambulance chasing tort lawyer can help you get what is rightfully yours.  If you have a job – love it or leave it.  Don’t be the one sitting around so worried that the next pink slip is yours.  Adopt the attitude of gratitude that your unemployed neighbor would have if sitting in your seat, if only for a temporary few weeks.

JFK said it best years ago, you know the “ask not what your country can do for you" talk.  Well, it is time to hear it again, but in my words.  Stop hanging around with your head down or looking for handouts, and get off your butt and make something happen for you and those that you love.  And do it today. 

Are You a First-Class Version of Yourself?

Think About It

"Today you are You, that is truer than true. There is no one alive who is Youer than You."
-Dr. Seuss

Are You a First-Class Version of Yourself?

One of the common refrains from motivational speakers is "find out what other successful people are doing then copy them." The rationale is, rather than reinvent the wheel, you can simply take other peoples' successful strategies, implement them yourself, and voila, success is within your grasp. That is partly true. There are indeed common success attributes that we should all follow and can benefit from.

However . . . if all you do is mimic other people, you will end up as a second-rate copy of someone else instead of a first-class version of yourself.

Part of the beauty of life is that we are all unique individuals yet still connected through the thread of our humanity. Our differences make us attractive and define us. Two halves make a whole, so to speak.

If you think for a moment, you can probably identify people who you would like to emulate. Ask yourself what attributes they posses that you'd like to posses as well. Their compassion? Their positive attitude? Their authenticity? Their loving spirit?

Whatever those attributes are, by all means, become a better living example of them. However, don't stop there. Take the next step and think about what makes you unique. What are your gifts to the world? What are your talents and interests? What makes you, "you?"

Each of us is a valuable human being who is here for a reason and a purpose. We have contributions to make, lives to affect, and legacies to leave. We're not here to be clones. We're not here to be slaves to our jobs or our bosses. We're here to be alive to life, to positively impact our family, our neighbors, our faith, and the greater society around us.

There is only one Mona Lisa. Make sure there is only one "you" out there.

Today's post was reprinted by gracious permission from Steve Sanduski, CFP^®, a writer, speaker, co-author of Tested in the Trenches and Avalanche: The 9 Principles for Uncovering True Wealth, and the Managing Partner of PEAK, a financial advisor training, coaching and software firm.  PEAK offers a coaching program, which teaches advisors how to improve their practice and enhance their quality of life.  To learn more, call PEAK at (800) 514-9116 or visit their website at www.succeedwithpeak.com and www.truewealthcommunity.com.

The CPA Financial Planner

Last week I had the pleasure of spending time with 500 CPA Financial Planners in sunny San Diego.  There are many financial advisors out there who may be thinking, "There was only one pleasure in that trip – the sunny San Diego part!"  But I am happy to report that there were many pleasures to be found in the AICPA PFP (Personal Financial Planning) annual conference.

First was the outstanding content at the conference.  There were great speakers covering a wide array of topics; from technical to practice management.  There was even a track set up as a pre-conference session on Sunday for rookies.  This all day program was perfect for the CPA who wants more from their practice and is desirous of delivering a higher standard of care to their already loyal client base.

I spoke to Bob Veres, Sheryl Garrett, Andy Gluck, Gregg Leslie, Mark Bonner, Michael Schulman, Ted Sarenski, Randy Thurman, Jimmy Williams, Dan Snyder, Amy Gavartin, Ken Smith, Luann Colosimo, Stuart Kahn, Mark Tibergian, Doug Duerr, Randy Franklin, Jim Shambo… and the list goes on and on.  The attendees were a virtual who’s who in the financial planning world – and totally dedicated to the financial planning world. 

I also spoke to about 100 rookies – seasoned CPAs who have never really launched a financial planning division.  That is either a good sign that there are more CPAs taking personal financial planning seriously or CPAs whose core accounting practice is beginning to suffer a bit from the economy.

As a recovering CPA, I have a soft spot in my heart for the CPA financial planner.  Over the years, that soft spot has hardened somewhat.  After all, most CPAs fail miserably in their financial planning practice.  They get sucked right back into the mayhem of a busy tax practice and never really have the time to deliver what their clients feel are the most valuable services that they could possibly provide.  Go figure.  The lure of another $300 tax prep fee is like a juicy bone to a dog.  My message to you tax prep factories out there – get a life and deliver the services that your clients will really value.  Just ask those who have successfully transitioned their business or launched a PFP division – fewer nights and weekends at the office, happier clients and greater profits for the firm. 

Kudos to those practitioners who took nearly an entire week away from their CPA practice to learn, network and give yet another effort at improving the quality of their client service offering.  I hope to see you next year in Orlando, as I surely plan to attend for the 16th time.

What do you think of CPA financial planners?  Do you know any?  Are you one?  How successful is the planning department of your favorite firm?  Have you any interest in a closer working relationship or even partnerships with CPAs?  For better or worse, there aren’t many professionals in the USA who know more about the CPA Financial Planner than yours truly.  Don’t be shy – and send me your questions.

Be the Information Source for Your Clients

If you are committed to helping your clients, then you want to make sure that they have access to the best information.  There are a lot of sites out there, but one of the most basic places to start is the Social Security Administration.  They offer podcasts, worksheets, and literature to help people plan.  What sites do you recommend?

Last-Chance 2008 Tax Moves

John's article is the number one Editor's Choice at Horsesmouth today!  This article is full of useful end of year information for you and your clients.  Here is a pdf of the article, or you can use the link below with your subscription to Horsesmouth. 

Last-Chance 2008 Tax Moves

http://www.horsesmouth.com/linkpo/82531_18.htm

You might be amazed at your clients' eligibility for certain tax credits and deductions. Don't assume anything until you've talked to clients about the AMT, energy tax credits, retirement plan contributions, tax-loss harvesting, section 179 deductions, cost segregation studies, and even first-time home buyers' credits. But act quickly. Time is running out.

This time things will different

For the last couple of months, we have all heard from economic and investment pundits that this time is different.  Market behavior, investor psychology, asset class correlation… everything is different.

Now that the seat in the white house will be occupied by someone new, just how different will things continue to be?

Historically, markets have performed well under democratic administrations.  Will things be different this time?

It’s no secret that President Elect Obama had plans to raise taxes.  Some back peddling in the last few weeks indicated that he understands that the economy may be in no shape to accept a tax increase.  Will the implementation be different than his campaign promise? Will capital gains taxes increase?  Will the estate tax exemption ever make it to the $3.5 million level as expected for the past 8 years?

And what about the war and defense spending in general?  Will we pull out of Iraq?  Will we increase defense spending to shore up our weakening forces and military infrastructure?

And now for the cabinet.  Early speculation is rather jubilant over the names being bantered about for the Obama cabinet.  Will he be able to put together the dream team that he wants?  Will everyone last?  Will everyone work well together?  Will their impact be felt in the short term, long term or at all?

Enough questions about things out of our control.  From this word forward I want you to realize that you only influence things within your control, and that is how you should spend your time and energy with clients.  How exactly might you do this?

How about by renewing your client relationships with a new comprehensive financial plan?  If you haven’t done it since client portfolios have faltered, what are you waiting for?  Sure, clients may not welcome the new realities with their financial lives, but most will be appreciative of knowing where they stand, and what they and you can do about it, rather than worry about the unknown.

This is your chance to be a leader.  I’m not asking you to be an economic or market forecaster, I’m asking you to do what clients want you to do.  Clients want your leadership, wisdom and solutions.  With all of the aforementioned uncertainty in our country, perhaps this exercise of renewing a financial plan may be an annual (or more frequent) ritual.

You have nothing to lose, and everything to gain.  Are you going to be a net loser of clients or a net gainer of clients during these trying times?

Things will always be different.  That’s what I love about being a financial planner.  Stuff happens, and it always will.  But how you deal with ever changing situations doesn’t have to shake you up if you are a true financial planner and puting your clients interests and concerns first.

Brave New World for Merrill Lynch Financial Advisors

The recent market turmoil has caused many companies to revise their business models.  These changes may not be in your best interest.  We invite you to consider the U.S. Wealth Management (USWM) business model when considering your future.  Listen to our CEO, Chairman and Founder describe the benefits of USWM and review the accompanying Brave New World for Merrill Lynch Financial Advisors.