eNewsletter






Even The United States Military is Using Social Networking

Top officials in certain branches of the US Military actively use social networking sites such as Facebook and Twitter to keep the public informed and up to date, a recent article in the Los Angeles Times reported. While certain branches are deciding on an official policy, most top ranking officers maintain that the obvious benefits may counterbalance the possible risks. Keeping the public informed is a critical task that the US Government must maintain, and the use of social networking assists the Government in doing that. With this knowledge, other industries, including the financial services industry, must be aware of the advantages maintaining a social networking site offer. Essentially, financial planners, advisors and insurance professionals must have a web-presence lending to credibility and a personal touch. As the public becomes more and more comfortable and dependent on technology, a carefully thought out and crafted web presence becomes essential for advisors who wish to stay relevant in this new era.

August Sets the Pace for New Births

According to the National Center for Health Statistics, more babies are born in August than in any other month. As a new child joins a family there are many adjustments. Most of the adjustments we think about are: buying diapers, hooking up car-seats, getting used to lack of sleep, to name a few. How many of us think about making the proper adjustments to our estate plan, will, health insurance, and life insurance? In life, a lot of people tend to live reactively rather than pro-actively - which at times is absolutely necessary. This is why an insurance professional or financial advisor needs to be the pro-active one. We know this because when something changes in the lives of clients, they don’t immediately pick up the phone and call their insurance advisor. Clients need their trusted advisors to actively reach out to them a few times each year, otherwise by the time an advisor knows about a life change, it may be too late. Perhaps September is a good month to reach out to clients each year? It may turn out to be a congratulatory call after all!

What is the Media Saying About Advisors?

In a recent Google search for "Financial Advisor", 3 of the top 7 results in "News" involved fraud or imprisonment of some kind. From the latest Ponzi scheme to shell companies; these thieves have adversely impacted an honorable and professional industry. What does this tell us about the current market climate for Advisors? Investors are extremely wary. Fear of risk is one thing, but fear of the unknown is something far more menacing. This is the biggest challenge advisors face in the market today, fear of the unknown. If the risks are clearly laid out and understood, an analytical decision can be made. When the risks are not clearly known or presented, no decision can be made, and generally sales do not occur. So how does an advisor deal with this challenge? Prior to attracting new clients, an advisor should be aware of his/her reputation in the market. Become a member of official organizations, affiliations and obtain logical designations. These lend to increased credibility. Present references from respected individuals and offer those in writing to prospects. When possible, allow prospects to speak with a reference.
Once a prospect is in the office there are a new set of challenges. When sitting down with a client, NEVER dance around the risks. Focus in on the non-guaranteed portions of a plan and clearly explain the worst case scenario. Keep your explanations simple and easy to understand. Do not try and impress clients with your achievements or understanding of complex structures. Be yourself. An advisor with integrity should create predictable plans that get results. Lastly, be willing to admit to a mistake. This may be uncomfortable, but accepting responsibility builds trust.