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Are You in Retirement Without Even Knowing It?

Advisers deal with pre-retirees every day. Some of these clients are anxious to quit working, but many more say they’d like to work in some capacity once they retire. The 2015 Work in Retirement: Myths and Motivations study, conducted by Merrill Lynch and Age Wave, found that 7 in 10 pre-retirees want to work in retirement. In fact, it’s becoming so common that people now talk about “Retirement 1,” “Retirement 2,” and “Retirement 3,” with each stage representing a reduced schedule and set of responsibilities.

For advisers, this is easy to understand: “dying with your boots on” is an industry norm. Work in retirement may be different or happen at a different pace, with many tenured advisers putting in fewer hours and taking more time off, including sabbaticals. In any case, there’s a clear trend of advisers staying in the business longer—or not leaving at all.

The problem is when you slip into retirement mode without even realizing it.

Maintaining a Viable Lifestyle Practice
Many advisers are comfortable with the idea of running a lifestyle practice but bristle at the suggestion that they’ve entered “Retirement 1.” Whatever you call it—Retirement 1 or a lifestyle practice—there are several key points to consider if you want to keep your business healthy.

  • Am I still growing? By definition, healthy businesses are growing businesses. In our industry, that’s generally measured by assets under management or overall production. At a certain point in an adviser’s career, it becomes difficult to recruit new clients. Existing clients pass away or move into the distribution phase. Attracting new business to replace lost AUM becomes challenging as clients seek an adviser who will outlast them. When AUM starts shrinking, the business owner needs to assess whether the practice has begun to die on the vine, making it less attractive to potential buyers.
  • Am I keeping up with industry developments? Regulatory requirements, new technology, marketing strategies, emerging products that deliver answers to complex client issues—staying on top of all the developments in our industry requires a certain amount of time and commitment. Downshifting to a lifestyle practice shouldn’t mean letting your focus slip or becoming nonchalant about certain aspects of the business.
  • Do I have a documented continuity plan? No matter what kind of practice you have, going without one borders on unethical. The need for a continuity plan is well known, but unfortunately, many advisers still don’t take this essential step to provide for their firm’s (and their clients’) future.

A Personal Choice (But it’s Not Right for Everyone)
Mid-career advisers may observe the attractive lifestyle of more tenured advisers and think, I want that, too! For their part, millennial advisers entering the industry may look around and assume a lifestyle practice is the norm. But if significant growth is on your agenda (and for many younger advisers, it is), the activities that will get you there generally require putting in some evening, weekend and summer work.

Of course, how you balance work and life is ultimately a personal choice. In the independent world, as long as you’re compliant and your clients are protected, it’s no one’s business but yours. Just be sure you’re making the decision deliberately rather than simply falling into it.

Joni Youngwirth_2014 for webJoni Youngwirth
Managing Principal of Practice Management
Commonwealth Financial Network
Waltham, Mass.


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Don’t Have a Bad Online Presence

If you don’t have a website or LinkedIn profile—or you have them but they’re not very strong—then you’re doing the equivalent of inviting prospects and clients to a meeting in a messy office space.

Consumers are hesitant to make even minor purchases (shoes, household appliances, etc.) from companies with a bad online presence because they view those companies skeptically and can’t build initial trust. How do you think this same scenario plays out with someone looking to entrust someone with their life savings?

There are many various studies you can find regarding an investor’s purchase journey and the importance of having a strong website and LinkedIn profile. A strong online presence allows potential clients the opportunity to: (A) get to know you a bit before contacting you; (B) build a level of trust regarding your expertise; and (C) provide them a mechanism for contacting you. But you don’t need to read those studies—common sense should tell you that if you’re going to trust someone with something as important as financial planning, you want to know the financial planner is legitimate. Not existing online or having a weak online presence sends the prospect a signal that you might not be legitimate. Would you trust a professional service provider if you couldn’t find any information about them online?

Taking simple steps like ensuring your web content is up-to-date and reflects your value proposition can help people decide to take the next step in their journey toward finding a financial planner. 

Jeremy Jackson

 

Jeremy Jackson
Owner/founder
SKY Marketing Consultants
Kirkwood, MO

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Financial Planning Association members can get 50 percent of SKY Marketing Consultants‘ digital audit services (a discount of up to $300). For more information visit MyFPA

Look for the Journal of Financial Planning’s July issue for more marketing tips for financial planners. 


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The Experience Story: In Reverse

It’s no secret that telling a great story can help prospects better understand your recommendations. Story-based selling is the art of using metaphors, analogies or stories to do just that. However, what is little known is that you can have a similar effect when you set the stage by having a prospect share an experience about themselves or about someone they know who has used a particular product or service. Many times you get them to buy into the products or services you are about to recommend based on a story they have just shared with you, so that there is little need for you to go down the path of a typical closing. This process is a reversal of sorts as the standard practice is for advisers or agents to have to share their existing client’s experiences in order to “sell” to a prospective client. So I refer to this as “the experience story: in reverse.”

During a recent group coaching session on story-based selling, I had asked all the attendees if they told stories during their presentations to help close the sale. I had coached on this material dozens of times before, asking this question each time, but what was new that day was what one adviser said, “I don’t tell them stories but instead I have them tell me stories.”

She went on to explain that the reason she did this was so that the prospect could eventually tell her the benefits that the individual in their story received from having a product or service. Once that occurred, the prospect often came to the conclusion that they could also receive the exact same value. In other words, they sold themselves on why they should buy.

Let’s take a brief look at how this process works:

  • Uncover the Prospect’s Experience: It’s important to begin by asking a great question to identify if the prospect has any personal experience or has known anyone who has had an experience with what you are about to recommend. The key is not to formulate your question around the product or service but rather about a situation or scenario that would prompt the need for that product or service. An example of what NOT to ask would be, “Have you ever known anyone who had long-term care insurance?” However, DO inquire, “Have you ever known anyone who went into a nursing home or assisted living?” Remember to make this question common enough to ensure that they will have some type of a story to tell you.
  • Invite the Prospect to Share their Experience: Once the prospect answers your question, invite them to tell you more. Some examples of good “cue” questions would be, “Why did they go to the nursing home or assisted living in the first place? How long were they there? What do you think it cost them to stay there? How do you think they paid for it?” Make sure you sprinkle in these types of questions to more readily “cue” the prospect to share more of the story and create a strong dialogue.
  • Uncover the Benefits and Tell a Story: After you let their story unfold, it’s time to help them uncover the benefits of the product or service that you will be recommending. Use questions such as, “Do you know what it currently costs for one month in a nursing home or assisted living situation? What do you think it might cost in ten to fifteen years if you or a loved one would need to stay in one? How would you pay for it?” At this point, explain your own experience of helping a client who was in a similar situation and the recommendation you made to them. Here is an example of how to make a seamless transition, “I am here to help assist my clients so that don’t have to worry about the cost and here is why…” Then, explain the product or service and how it has helped your current clients.
  • Ask for the Order: All that is left to do at this point is to help them come to the conclusion that they can benefit from this product or service just like your existing clients. Simply, ask a question such as, “Based on what we just talked about, what do you think is the best course of action for you?”

Why the Prospect Will Buy
If you have followed these aforementioned steps, the prospect will typically come to the conclusion that they want to buy because they want the same benefits as your clients. You have strategically led them to uncover their own need(s). In this case that was to be financially prepared for either themselves or a family member to go into a nursing home or assisted living facility, as well as the solution, with this example, long-term care insurance.

If you read this article and would like helpful techniques about how to create your own experience story: in reverse, email Melissa Denham, director of client servicing at melissa@advisorsolutionsinc.com to schedule a free complimentary consultation with Dan Finley.

Dan Finley

Daniel C. Finley
President
Advisor Solutions
St. Paul, Minn.

 

Daniel Finley presents an FPA webinar titled “Beyond the Production Plateau: The Solution to Your Business Evolution” from 2 to 3 p.m., EDT, June 8. Register for the webinar here