Reach Out in Good Times and Bad

Sue BerginSue Bergin, President, S Bergin Communications

It’s no secret that clients like to hear from their advisors. In fact, failure to communicate is one of the top five reasons why clients become dissatisfied with their advisor. According to a Spectrum study, 40% of clients said they consider leaving when the advisor makes them do all the work (make all the calls).[1]

A recent study by Pershing, however, shows that advisors do make the calls—when they have bad news. Here are some of the key findings when it came to communication choices.

  • 58% of the advisors contacted clients during market downturns, yet only 39% reached out to discuss market gains.
  • 68% of advisors reached out to clients when personal investments declined, while only 53% initiated contact with the client in instances when personal investments increased in value.[2]

Bergin_Reach Out in Good Times and Bad_6.19.14How News is Delivered
The telephone is the most frequently used communication vehicle for both good and bad investment performance news. A quarter of the advisors surveyed used email and face-to-face meetings to communicate market losses, while 58% of the advisors picked up the phone. The only type of communication that happened more frequently in person than any other message was in the area of education. 52% of advisors said that they scheduled face-to-face meetings to educate clients while 48% did so over the telephone.

“No News is Good News” Applies Better to Weather than Client Relationships
Communication work is fundamentally about two things: trust and relationships. Good communication can strengthen relationships and deepen trust while poor communication can have the opposite effect. The “no news is good news” approach many advisors seem to take is problematic for a few reasons. It robs the advisor of the opportunity to score relationship-building points. It also increases the risk of clients feeling neglected. Finally, it makes it more difficult for the advisor to identify opportunities proactively because they become somewhat out-of-touch with what is happening in their clients’ lives.

[1] http://www.onwallstreet.com/gallery/ows/client-switching-advisor-top-five-reasons-2681390-1.html

[2] The Second Annual Study of Advisory Success: A New Age of Client Communications and Client Expectations, Pershing.

The views expressed are those of Brinker Capital and are for informational purposes only.

How Behavioral Finance Can Help You Set and Keep Financial Goals

Dr. Daniel CrosbyDr. Daniel Crosby, President, IncBlot Behavioral Finance

If you’re ever having trouble sleeping, spend some time researching financial goal setting online and you’re sure to be snoozing in no time. It’s not that the advice you’ll find is bad per se, it’s just that it is fundamentally disconnected from an understanding of how people behave. Most resources will give you some great meat-and-potatoes stuff about setting specific, attainable and timely goals. You will nod your head, go home, and forget all about it, doing what you’ve always done before.

If financial goal setting is to be truly successful, it must account for the way in which people behave, including the really stupid stuff we all do from time to time. What’s more, it must be infused with elements that make it motivational, because let’s face it, you’d probably rather get a root canal than lay out a spreadsheet with some dry figures about Set Your Goalsyour savings goals. To help in this important step, we’ve mixed some best practices in financial planning with some truths about human nature that will add a little, dare we say it, excitement into your financial planning process. After all, your financial goals are only as good as your resolve to adhere to them is strong.

The next time you go to set a financial goal, consider the following:

Plan for the Worst – Cook College performed a study in which people were asked to rate the likelihood that a number of positive events (e.g., win the lottery, marry for life) and negative events (e.g., die of cancer, get divorced) would impact their lives. What they found was that participants overestimated the likelihood of positive events by 15% and underestimated the probability of negative events by 20%.

What this tells us is that we tend to personalize the positive and delegate the dangerous. We think, “I might win the lottery, she might die of cancer. We might live happily ever after, they might get divorced.” We understand that bad things happen, but in service of living a happy life, we tend to think about those things in the abstract. A solid financial plan cannot assume that everything will be wine and roses as far as the eye can see.

Picture Yourself at 90 – One of the reasons that we tend to under prepare for the future is that we value comfort now more than we do in the future. Simply put, the further out an event is, the less valuable we esteem it to be. Let’s say I offered you $100 today or $110 tomorrow. Odds are, you’d use a little bit of self-restraint and go for the extra ten dollars. What if I changed my offer to $100 today or $110 in a month? If you are like most people, you’d take the $100 today rather than wait the extra 30 days. The official term for this devaluation over time is “hyperbolic discounting” and it can have disastrous consequences for managing wealth over a lifetime.

Crosby_BeFi_Help_Set_Goals_2After all, if today’s needs and today’s dollars always perceived as more valuable than tomorrow’s wealth and wants, we’ll make hay while the sun shines. While this can be fun in the moment, your older self is not going to be too happy eating Top Ramen every night. One of the ways to decrease our tendency toward hyperbolic discounting is to make the future more vivid. Researchers at New York University did this by using a computer simulation to age peoples’ faces and found that “manipulating exposure to visual representations of one’s future self leads to lower discounting of future rewards and higher contributions to saving accounts.” Basically, if you can picture yourself wrinkly, you’re more likely to save. Making your own future vivid might include having conversations about your future with your partner, speaking with aging relatives or simply introspecting about your financial future.

Bake In Motivation – Daniel Pink’s seminal work, “Drive” is a concise treatise on what he believes are the three pillars of human motivation – mastery, autonomy and purpose. By including each of these three pillars in the financial goal setting process, you “bake in” motivation, thereby increasing the likelihood of meeting those aspirations. Mastery is all about fluency with the language of finance. While you may never be Warren Buffett, achieving mastery is the first step toward staying motivated. We procrastinate what we don’t like or don’t understand. Once you are facile in the language of numbers, you’ll stop putting your finances on the back burner.

The word “autonomy” is derived from the Greek word “autonomia”, the literal translation of which is “one who gives oneself their own law.” Being autonomous does not mean going it alone. What it does mean is having enough of an understanding of financial best practices that you can select financial professionals whose goals and approaches mimic your own. Finally, and most importantly, is purpose. One of the biggest culprits in bad financial planning is disconnecting the process from the things that matter most to the person making the decisions. Coco Chanel said it best when she said, “The best things in life are free; the second best are very expensive.” Financial solvency facilitates all manner of good, from charitable giving to family vacations to funding an education. If your financial goals are intimately connected to things that matter most to you, saving will cease to be a chore and begin to be a joy.

Views expressed are for illustrative purposes only. The information was created and supplied by Dr. Daniel Crosby of IncBlot Behavioral Finance, an unaffiliated third party. Brinker Capital Inc., a Registered Investment Advisor

Why Some Fizzle, While Others Go Viral

Sue BerginSue Bergin, President, S Bergin Communications

Have you ever wondered why a silly email gets passed around the office, yet you can’t get a client to forward an interesting article you wrote to a colleague? Does it frustrate you that sports fails get millions of views, yet you’ve only had two people view your LinkedIn profile in the last 20 days? Ever wonder why your tweets don’t get favored, shared or retweeted?

The New Yorker’s recent article, “The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate You,” takes a stab at solving these mysteries.

The article, which cites studies conducted by two Wharton professors, reveals the common characteristics of widely shared stories. These stories or messages typically evoke an emotion from the reader, with happy pieces faring better than sad. They also create a social currency and make the viewer feel “in the know.”

Shareable stories also typically have memory-inducing triggers. They are easy to pass along because they can be found and retrieved.

Gone ViralThe final predictor of whether a story will go viral is the quality of the content itself. The Holderness family rivaled Santa himself in spreading holiday greetings because their “Christmas Jammies” YouTube video was so well done. Otherwise, over 13 million people would not have invested the 218 seconds to watch.

So before you make your next LinkedIn post or tweet something on Twitter, make sure the content you are providing is relatable to your followers and will elicit a response. Then you can begin the journey of becoming a social media influencer and setting yourself a part from the crowd.

12 Holiday Card Musts

Sue BerginSue Bergin, @smbergin

You probably covered holiday cards in Client Communication 101. The holidays provide an opportunity to show clients you are thinking of them, and appreciate the role they play in your life. It’s important not to approach this as a “bah-humbug” type of task

Even though it may be a tedious task to undertake during the year-end crush, holiday cards are an important marketing and brand-building tool.

Here are a dozen things to consider when selecting your card:

  1. Display-worthy. Your holiday card is one of the most on-display items you’ll send to your client. After all, no matter how satisfying their investment performance, they won’t tape a recent statement to the wall. Yet, business owners hang the holiday cards in their lobbies. Company employees display them on their desks or in their cubicles. Retail clients put them along a mantelpiece, place them on bookshelves, and some even win a coveted spot on the refrigerator door. Keep the display aspect in mind when selecting your card. For example, horizontally-oriented cards tend to fall over more easily than their vertical counterparts. If it keeps falling down, it is a nuisance and will end up in the trash faster than a fruitcake.12.3.13_Bergin_HolidayCards
  2. New year, new card. Even if you have a stockpile of cards left from past years, fight the urge to use them. If you absolutely can’t resist, then only send last year’s card to new clients. Current clients just might remember, and reusing a card sends one of two messages: you are too cheap to buy new ones, or you are lazy.
  3. Awareness. Unless you know for certain of the religious holidays your clients celebrate, stick with a “Happy Holidays” or “Season’s Greetings” message.
  4. Quality. There are a tremendous number of low-cost, do-it-yourself options out there. Use them cautiously. Make sure the output reflects your professional standards.
  5. Test the system. If you are using an automated system, make sure it works. Build enough time into your process so that you can generate test cards to make sure the process works (quality check addresses, salutations, signatures, postage, etc.).
  6. Destination. In most instances, you’ll want to send the card to your clients’ homes. Exceptions can be made for centers of influence and corporate clients and contacts.
  7. Old-school charms. Modern conveniences like electronic signatures and address labels hint of a mass-mailing campaign. They may seem impersonal. Take the time to hand sign each card. For bonus points, write a personal sentiment.
  8. Respect the sanctity of the time. If your standard practice is to ask for referrals every time you communicate in writing with clients, consider taking a break on the holiday card. You don’t want to leave the impression that you’re simply trying to drum up business.
  9. Timing. The later the card, the more competition it has for your clients’ attention and display space. To stand out, start early.
  10. Spice it up. Anyone can pick up store-bought cards, or pull from the standard greetings in the online templates. The result is a forgettable and insincere greeting. Be creative and design something distinctive. Take the time to select a design and message that reflects your brand.
  11. Be inclusive. Forget about selectivity. Dive deep into your CRM. You don’t want to be on the receiving end of a game of card tag whereby you scramble to get a card in the mail for someone who has sent one to you.
  12. Get personal. This is an opportunity to connect with clients on a personal level. Give details about favorite holiday memories or the traditions you hold dear.

12.3.13_Bergin_HolidayCards_1

Social Media Strategies: Yield to Client Preferences

Sue Bergin@SueBergin

Every investor has his or her unique communication and learning style.  Some prefer face-to-face meetings, while a quick text message will suffice for others.  Some investors are highly analytical and need to understand the data behind their investment philosophy while others take a “just give me the bottom line” approach.

Most successful advisors have become adept at assessing the communication and learning styles of their clients and adapting accordingly.  When it comes to a social media strategy, advisors should use a similar approach.

10.15.13_Men are From LinkedInAccording to the recent survey[1] sponsored by MassMutual and conducted by Brightwork Partners, “women are from Facebook, men are from LinkedIn,” various demographic groups are congregating around their social media channel of choice.  Consider these stats:

  • 70% of women routinely use Facebook vs. 59% of men
  • 57% of survey respondents over the age of 50 use Facebook
  • 32% of men use LinkedIn, compared to 15% of women
  • 17% of men versus 10% of women rely on Twitter as an information source
  • 36% of LinkedIn users have household incomes that exceed $100,000
  • 15% of LinkedIn users have household incomes of $50,000 or less
  • Survey respondents in their 30s are 14% more likely to use social media for retirement and investment education than their older counterparts
  • 80% of Pinterest’s 70 million users are women[2]

MassMutual’s study is the latest in a line of research that demonstrates the role social media can play in educating clients.  From a tactical perspective, it is helpful to note that a Tweet, Facebook post, LinkedIn message or Pinterest post will reach only the audience following that channel.

From a practical standpoint, you may want to synchronize your social media messages.  So, for example, if you sync your Twitter and LinkedIn files, LinkedIn contacts will see your Twitter updates and vice versa.  Keep in mind that some content is more appropriate for certain channels over others.  For example, tweets can only accommodate 140 characters but Facebook posts may be more extensive. Pinterest is most appropriate for visual content, like the inspiring image below originally pinned by ForexRin.

10.15.13_Men are From LinkedIn_1In the end, social media is about listening and engaging with your clients.  Services like Hootsuite, Tweetdeck and GoGoStat can help monitor and track your social media engagement so that you will know which channels are most valuable to your practice.

Show and Tell: Five Points to Make with Prospects

Sue Bergin@SueBergin

The best storytellers are the ones that have mastered the art of “show, don’t tell.” Their ghost stories, for example, have descriptions of settings and physical manifestations of emotions. Sentences like “it was a scary place,” serve only to punctuate what the reader or listener already concluded.

The same can be said of advisors. Telling someone that you can help them achieve their financial goals does not make nearly as big of an impact as when you show them how.

The following are five areas where it is important to show clients why you are the best choice.

Five Points to Make with Prospects:

  1. How you will organize their financial lives. While most clients don’t come out and admit it, their financial lives are chaotic. They may not know how many assets they truly have and how they can put them all to work to increase purchasing power. The first step for advisors is to show clients the before and after. Explain to them what they currently have now versus what their potential growth may look like. Demonstrate how you will make them feel more in control of their financial lives. It could be something as simple as taking out your iPad and showing them the client portal of wealth management tools.
  2. 6.11.13_Bergin_Show&TellHow you will help them make good investment decisions. The term “good investment decisions” is too opaque to resonate with clients. Instead, walk clients through the process used to create an Investment Policy Statement (IPS). Talk to the client about how an IPS helps to guide future decisions. In the recent Brinker Barometer, we learned that 72% of advisors use a written IPS to help clients make non-emotional investment decisions when the market is in flux. The IPS is tangible proof of a disciplined process that will benefit the client.
  3. What you do to ensure that clients get the best advice and service possible. Marketing-darling phrases like independent, objective and unbiased, fall flat. Instead, describe the process that you go through to ensure that your recommendations are appropriate for the need you are trying to solve.
  4. You have been there, done that. Your experience does not speak for itself. You have to give it a voice. If you just say, “I have been an advisor 22 years,” you miss the opportunity to highlight what you have seen throughout your career. It is more impressive to learn that you have helped others thrive in all market climates than to know that you’ve been at this for a while.
  5. You appreciate their business. It’s easy to say “I value your business,” but to convey that message through action takes a concerted effort. Personal touches such as the just-checking-in phone calls, handwritten notes, and occasional invitations to social events let clients know that their business and their well-being matter to you.

Secrets of Professional Presenters

Bev Flaxington@BevFlaxington, The Collaborative

Unless you are growing your business by giving presentations, you might not think about the importance of learning strong presentation skills. But it’s important for financial advisors to realize that each time you speak to a client or prospect, host a seminar or educational event, or speak to your team about firm goals and objectives, you are presenting. Being able to present your ideas in an effective manner is critical to success. You might be very intelligent and even creative, but if you cannot communicate in a manner that “wins over” your audience, you might be missing opportunities.

What makes the difference between a good presentation and a poorly delivered one? Often times it is the material; either we like what we hear or we don’t. Often times it is the presenter – if they are engaging and interesting, we pay more attention. Whether your next presentation is sitting one-on-one with a client, presenting to a board for a not-for-profit client, or standing in front of a roomful of people you’d like to gain as clients, the following six secrets from professional presenters may help:

  1. Establish what you want to accomplish at the outset. Is your presentation meant to persuade or to inform? Are you hoping to gain a client’s agreement on something or just wanting to tell your staff about a new change that’s happening? Always think about why you are doing the presentation and what the desired outcome is before you put together your material.
  2. What does the listener want from you? What are their goals in the exchange? Learn as much as you can about your listener or group. In a meeting with several people, ask them to raise their hands to questions about the material: How much do they know already? What prior experiences have they had? What do they hope to learn? In a one-to-one, get the other person talking. What do they hope to accomplish? The more you can engage and learn about your audience, the more engaged they will be with you.
  3. Put your information into a segmented format so that your audience can follow along with you. If, for example, you are presenting on the first-quarter market activity, you might segment: (a) Last year’s first quarter, (b) This year’s performance, (c) Changes from one year to the next and the meaning, Impact on you as the investor, and (e) Next steps you as the investor want to take in your portfolio. You want to take your material and put it into chunked segments so the audience knows where you are, and what you are talking about, at all times.
  4. Don’t assume the audience knows what you mean and why the material is relevant to them. It’s critical to provide context. Help the listener understand why they should care – the “so what?” and relevancy for their lives. If you are simply offering information, that’s fine, but let the audience know. When hoping to persuade a listener or set of listeners, it is absolutely critical to make the connection and allow them a clear window into the “why?” of the information to their needs and their lives.
  5. 5.13.13_Flaxington_Secrets of Professional PresentersCheck for understanding. Watch body language as you speak. Are people staying engaged? Are they nodding or shaking their heads? Are they focused on you? You want to make eye contact, smile and be engaged, and you want to watch the listener, too. Find ways to put questions in, or ask the audience to raise their hands. Work on engagement throughout your presentation and ask for questions to allow for deeper understanding.
  6. Have a clear next step. What do you want the audience or listener to do as a result of your presentation? Be clear what you want the listener to do. If you stated a desired outcome at the beginning of the dialogue, refer back to it now. And if you can get the listener to commit to a next step, have them do so in writing or to you verbally. A public commitment is always best.

Find ways to work on your presentation skills, and incorporate some of these ideas the next time you have an opportunity to present.

What to Do With All Those Receipts?

Sue BerginSue Bergin

There are many little annoyances that an advisor must deal with as a cost of doing business. Tracking expenses is a prime example. Out of necessity, advisors have developed systems for tracking expenses that vary in sophistication. Ranking high on the list is the empty-the-pockets-on-the-assistant’s-desk-and-let-her-deal-with-it system and the stack-the-receipts-in-a-pile-for-a-slow-day-project approach.

While these systems are second nature, the beauty of living in the digital era is that annoying tasks have spawned clever digital solutions.

Such is the case with tracking business expenses. For those who have embraced mobile devices, the days of the crinkled and barely legible receipts can be gone forever. Shoeboxed, Lemon Wallet and ABUKAI Expenses are some of the apps available that make managing receipts painless and efficient. You can download these apps on your Apple, Blackberry or Android device(s), and then simply take photos of your receipts. The expenses are digitally categorized and stored, and in many cases, the data can be imported into a spreadsheet or an accounting program like Quickbooks. With Shoeboxed, you can mail in old receipts and they will make digital copies for you. You can even get multiple “seats” on an ABUKAI account, allowing staff members in your office to contribute to the expense report. Other expenses management software programs, like Expensify and Xpenser, also have mobile applications that result in efficiency gains.

shutterstock_111610157Neat Receipts takes a slightly different approach. They offer a mobile scanner and digital filing system that allows you to scan receipts, business cares and documents. The Neat Receipts software system then identifies, extracts and organizes key information. While these applications might help you to make your practice more efficient, they could also help clients who own businesses. Clients often look to their advisor for tips on how to gain more control over their financial world.

With tax deadlines rapidly approaching, the inefficiencies of traditional approaches are top of mind. Take this opportunity to suggest this small way to remove one of the little annoyances in their lives. You may find that they are quite receptive and appreciative of your efforts.

Search and Selection: Finding the Right Hire for Your Firm

Bev FlaxingtonBev Flaxington, The Collaborative

It is often said that this isn’t a numbers business, it is a people business. Understanding the criticality of the human factor, it is interesting how often an advisory firm will simply hire to fill a role instead of putting the time and energy into search and selection to determine the right candidate, for the right role, in the right culture.

Success in a job comes from a number of factors. Let’s touch on a few and then talk about one in more detail, that of search and selection:

  • Behavioral fit – is the employee’s natural style right for the role? If he or she is a deeply analytical person, but the job calls for constant people interaction, will she or he be able to modify for success?
  • Cultural fit – are the values of the company in line with the employee’s values? Does the employee show a willingness to understand and uphold the company’s values?
  • Clarity of job expectations – does the employee know exactly what is expected of them? Has the employer clearly identified what success looks like for this role?
  • Compensation and motivators – are the right ones built in for this person, in this job?

In addition to these factors, advisors must consider where they find candidates (search) and how they determine who they will hire (selection). When looking for a new job, oftentimes people will focus on networking. However, in hiring for a new role networking may not be the best approach. In many cases, a person may get referred to the advisory firm and because they came from someone the advisor knows and trusts, they are assumed to be a good fit. An advisor may not go through as rigorous of a screening process in that case.

When searching for a candidate, ensure that you are pursuing all available avenues to locate candidates. In addition to the traditional posting options, be sure to include posting to groups such as the CFA Institute, or the FPA, or other financially oriented organizations. LinkedIn is growing in popularity and can be an excellent place to find candidates. Interview a minimum of three people for a role just to get an idea of different people.

Finding the Right Hire

Before you begin the interview process, establish how you will select the person. Who will be involved in interviewing? How much weight will each person have? Will you have an organized list of questions for each person to ask, or a matrix to assess feedback? What will be the feedback loop and how will people follow up on their thoughts? You want to establish final criteria for making the decision. In many cases a firm has a set of requirements but makes an exception based on “liking” a candidate. This might be okay, if all other criteria are met. Define this in advance.

Be sure to ask behavioral questions. Don’t just take a person’s “track record” for granted – ask how they found clients, what they did to work with them, how they go about generating referrals, how they work with COIs, etc. Pick those things most relevant to your firm and be sure to dig, dig, dig in your questioning until you really understand the background.

Lastly, be sure to check references. Don’t just do a cursory check-in with the three or four people that were listed on the person’s resume. Instead, try to do some digging on your own and find others to speak to. If the person is on LinkedIn or has relationships at prior firms, see if you are able to use your connections to learn a bit about the person outside of the given references.

It can sound like a great deal of work to find the right person, but the truth is that making a bad hire is costly for any firm.

There’s Mud on Your Face: The Advisor Smear Campaign

Sue BerginSue Bergin

Remember when you were a kid how snowball fights typically erupted totally unannounced?  You’d be hanging out at the bus stop when – WHAM! – out of the blue you got smacked right on the side of the head with a snowball that you didn’t even see coming.  When it happened, you’d quickly dust the snow out of your eye, set your sights on the assailant, and launch your counterattack.

While you didn’t know it at the time, you were, in fact, honing an important skill that might now come in handy to help you defend your practice.

The advisor profession has been hit on the proverbial head by a whole lot of mud.  Our credibility, integrity, and worth have been called into question in a smear campaign launched by companies that profess a noble mission: to help Americans become better financially prepared for the future.

They are going about it by “reinventing” financial services and eliminating the need for an advisor.  They are giving consumers tools to learn more about financial management, become better organized, and evaluate the effectiveness of their portfolios.

The functionality and sophistication of these personal financial management sites and mobile applications are evolving at warp speed.  Take SigFig, for example.  SigFig aggregates all investment holdings and then makes recommendations based on current holdings.  It compares the holdings in a user’s portfolio against other investments in the same category and share class.  It then suggests different, less expensive investments that perform better than the user’s current holdings.  It even goes a step further.  After reviewing the user’s trading patterns, it evaluates the brokerage fees.  Advisors are evaluated according to the fees assessed and the performance obtained.  This functionality has led to all kinds of provocative headlines, such as the one inviting you to “Find Out if Your Financial Advisor is Overcharging You.”

Another media darling is Jemstep, which served up this headline: “Use Jemstep to See if Your Broker is Wasting Your Money.” Jemstep’s ranking engine analyzes 80 attributes of more than 20,000 mutual funds and ETFs.  Jemstep helps clients identify their financial goals, provides a ranked list of the “best investment options,” and tracks aggregated investment performance.

While the functionality of these tools may have been the baton that the media picked up in launching the smear campaign, Personal Capital marched to the front with its own marketing efforts.  Personal Capital is a little different from some of the other personal financial management sites because it actually manages money.  It positions itself as the next generation of financial services that has evolved by moving away from a paternalistic, craftsman-like approach.  Its pitch is that clients should move money to them because they can invest it in cheaper, better performing funds while giving clients full transparency.  One of its hooks is the “How Much is Your 401(k) Costing You?” calculator.

These services and dozens of others are gaining in popularity.  They are free or come at a modest fee, and they have seized the attention of both venture capitalists and the media.

If we have learned anything from schoolyard snowball fghts and political campaigns, the best way to deal with an attack is to launch an immediate counterattack.  If the suspicion, exaggerations, and fear prompted by the smear campaign are left to linger, credibility is destroyed.

It’s time for those in the business of giving financial or investment advice to wipe the mud from their faces and launch a counterattack.  Here is an effective, three-pronged approach to take with clients:

  1. Ask clients whether they would be willing to turn over their life savings to a computer program. Most personal financial management services offer a mathematical approach to an emotion-filled process.  They aggregate holdings, use algorithms to evaluate investments, and spit out recommendations based on a computer model.  It is not only black and white and cold; it ignores the uncertainties of life.  It also ignores the single most important role that a financial advisor fills: to act as a sounding board for clients throughout their lives.
  2. Demonstrate the enduring value of the professional advice model. The premise of many personal financial management sites  is  that  the computer can do all the work better than an advisor.  It has never been more critical than now, therefore, that you demonstrate your worth.  You are your expertise.  You are the knowledge, resources, and guidance that you provide.  A computer program can’t begin to offer the sense of comfort and confidence you deliver to clients.  Remind your clients that you are savvy and accessible, and that you genuinely care about their goals.  Because the smear campaign seeks to create doubts about your motives in recommending certain products and solutions, make sure to remind clients that you always have their best interests in mind.
  3. Deliver a better online experience. An estimated 30,000 Americans are flocking to personal financial management sites every day! The word has spread.  An organized, online financial view helps make money management easier.  Personal capital, however, is asserting that advisors are unable to offer clients an online experience.  The CEO has been quoted as saying that personal financial advisors are still stuck in “pre-electronic practices.”

Prove him wrong. Show clients that an organized, online financial view is most beneficial when it is part of a wise collaboration with a trusted advisor

Republished with the permission of eMoney Advisor.  For more information about eMoney, visit http://www.emoneyadvisor.com/emacorp/default.aspx.