© Tim Voorhees, JD, MBA, 1996-2008 1 Summary of Best Practices Session E Updated February 10, 2008...
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Transcript of © Tim Voorhees, JD, MBA, 1996-2008 1 Summary of Best Practices Session E Updated February 10, 2008...
© Tim Voorhees, JD, MBA, 1996-2008
1
Summary of Best Practices Summary of Best Practices Session ESession EUpdated February 10, 2008Updated February 10, 2008
Generating More Generating More Referrals from the Top Referrals from the Top
Target MarketsTarget Markets
© Tim Voorhees, JD, MBA, 1996-2005
2
Focusing the Adviser’s Unique Ability
• Reviewing the need for the CAPABLE Team
• Coaching to develop unique ability– Wealth Counselor– Wealth Coach– Wealth Design Counselor– Licensed Implementer – Educator– Other
© Tim Voorhees, JD, MBA, 1996-2005
3
How Successful Advisers Position Themselves in the
Market• Maintaining an inventory of tactical
tools• Offering virtual back office support• Doing educational seminars• Planning joint cases• Working with accountants, bankers,
charitable development officers, attorneys, and other referral sources
© Tim Voorhees, JD, MBA, 1996-2005
© Tim Voorhees, JD, MBA, 1996-2005
4
Best Sources of Referrals• CPAs• Bank Trust Officers• Charitable Development Officers• Attorneys• Insurance agents• M&A brokers• Real Estate brokers
© Tim Voorhees, JD, MBA, 1996-2005
© Tim Voorhees, JD, MBA, 1996-2005
5
Developing Professional Partnerships
With Accountants
© Tim Voorhees, JD, MBA, 1996-2005
© Tim Voorhees, JD, MBA, 1996-2005
6
Major Trend Toward Professional Partnerships
With CPA’s• ValMark • Merrill Lynch• Raymond James• HD Vest• Equitable• First Global• Lincoln• Minnesota
Mutual• PartnersFinancialSee http://vfos.com/Journal_of_Accountancy-BestPractices.pdf
© Tim Voorhees, JD, MBA, 1996-2005
7
Why Form Partnerships with CPAs
• Proven Models Exist. Many CPAs already moving to integrate financial services into their practices.
• CPA firms known for high level of financial expertise and service.
• Client Trust Is Inherent – Recent studies rank the CPA as the client’s most-trusted financial adviser.
• Client Knowledge Exists – Most CPA firms familiar with the information needed for proper planning.
© Tim Voorhees, JD, MBA, 1996-2005
8
Distinctions of Successful CPA Alliance Programs
• Clearly address roles and goals of planning team members
• Carefully address the key issues of independence and objectivity
• Clearly define client expectations • Comply with state and regulatory
requirements • Conform to CPA Standards of
Professional Conduct
© Tim Voorhees, JD, MBA, 1996-2005
9
Distinctions of Successful CPA Alliance Programs
• Define equitable and proper compensation arrangements.
• Distinguish firm from other BD's by providing tactical plans as well as comprehensive plans
• Maintain the highest professional standards of technical competence and long-term commitment to clients
© Tim Voorhees, JD, MBA, 1996-2005
10
Distinctions of Successful CPA Alliance Programs
• Offer a full range of non-proprietary financial services
• Offer Independent Assessments – provide independent review of amount and type of insurance or investments
© Tim Voorhees, JD, MBA, 1996-2005
11
Distinctions of Successful CPA Alliance Programs
• Offer strong local representation backed by comprehensive national resources
• Provide clear written client disclosures
• Support clients with comprehensive technical, marketing, and computer services provided by professional specialists
© Tim Voorhees, JD, MBA, 1996-2005
12
Distinctions of Successful CPA Alliance Programs
• Maintain RIA affiliations in accordance with the 1940 Act.
• Recognize how 1940 Act exemptions lost if you share commissions with the CPA
© Tim Voorhees, JD, MBA, 1996-2005
13
The Adviser Must Assist the CPA
• In spotting estate planning opportunities• In spotting insurance sales opportunities• In spotting investment sale opportunities
© Tim Voorhees, JD, MBA, 1996-2005
14
The Adviser Must Assist the CPA
• In communicating the message with brochures, web sites, and sample plans
• With conducting Discovery Sessions and Family Retreats
• With plan design and illustration• With advanced sales support
© Tim Voorhees, JD, MBA, 1996-2005
15
Developing Alliances With
Bank Trust Officers
Listen to additional audio clips on slides 23, 33, and 43
© Tim Voorhees, JD, MBA, 1996-2005
16
Developing Alliances With Bank Trust Officers
• Banks often want to benefit from lucrative opportunities to sell insurance to top private banking clients.
• Banks want to overcome perception of clients that the banks lack objectivity when offering insurance.
• Banks realize that they lack sophisticated planning expertise such as is offered by VFOS.
© Tim Voorhees, JD, MBA, 1996-2005
17
What Joint Venture Relationships Appeal to
Banks• Banks more likely interested in
relationship with a firm that is national in scope and has established protocols for sophisticated cases.
• Banks want want to be assured that members of the planning team will be around to service the business in the future.
• Banks want to retain client control.
© Tim Voorhees, JD, MBA, 1996-2005
18
Benefits to Advisers
• Gain access to high net worth banking clients
• Favorable introductions• Control over process via comprehensive
wealth design or tactical plans
© Tim Voorhees, JD, MBA, 1996-2005
19
Developing Alliances With Bank Trust Officers
Continued • Offer a turn-key solution with
brochures, protocols, etc. • Focus on your unique abilities
© Tim Voorhees, JD, MBA, 1996-2005
20
Prepare a Marketing Kit for Presenting Concepts to Bank• Pre-approach letter from Adviser to bank
officer• Brochure outlining concept for use by
Adviser firm with Bank • PowerPoint slide show with notes for
producer to use with bank to sell program• Sample Family Wealth Blueprint• Sample Tactical Plan customized with bank’s
name• Outline of marketing suggestions• Sample brochure from Bank to customer
outlining program
© Tim Voorhees, JD, MBA, 1996-2005
21
Prepare a Marketing Kit for Presenting Concepts to Bank
• Sample letters from bank to customer outlining reason to come in for visit
• Sample introductory Data Organizer (to be provided by the bank to the customer to initiate the fact-finding process.)
• Outline of the work flow process from fact finding to family education
• Sample Costs and Benefits of program for Bank
• Enrollment Notebook detailing compliance issues and procedures
© Tim Voorhees, JD, MBA, 1996-2005
22
Steps in Process
• Marketing• Financial Checkup• Planning Process• Implementation Process
© Tim Voorhees, JD, MBA, 1996-2005
23
Developing Alliances With
Charitable Development
Officers
Listen to additional audio clips on slides 33 and 43
© Tim Voorhees, JD, MBA, 1996-2005
24
Embrace the 21st Century Role of the
Donor’s AdviserTransactions versus RelationshipsPlanned Giving Person versus Planning Team Strategies versus Optimized Wealth PlansOrganizational Needs versus Donor Needs/VisionLimited Resources versus Abundant ResourcesDisposable Income versus Unneeded AssetsFixed Income Tools versus Tax-efficient PortfoliosLimited Donor Control versus Much Donor ControlBarbarians at the Gate versus CollaborativesZero Estate Taxes versus Zero Income/Estate
Tax
© Tim Voorhees, JD, MBA, 1996-2005
25
Developing Alliances With
Charitable Development Officers
• Most charitable development officers focus on the 7% of assets that are liquid
• You can help the CDO focus on the illiquid 93%
© Tim Voorhees, JD, MBA, 1996-2005
26
7%7%
Difficult to Give Out of Cash Flow
Illiquid Assets
Liquid Assets
© Tim Voorhees, JD, MBA, 1996-2005
27
Developing Alliances With Charitable Development
Officers• Display the sample plans• Prepare initial plans for board
members• Provide current gifts equal to twice
the fees paid• Provide millions of deferred gifts
© Tim Voorhees, JD, MBA, 1996-2005
28
Developing Alliances With Charitable
Development Officers• Identify the development officers with
the best relationships • Offer turnkey support with brochures,
slide shows, etc. • Position your firm as the objective third
party• Target the over-taxed and charitably-
inclined• Communicate the message to the donor
© Tim Voorhees, JD, MBA, 1996-2005
29
Offer an Attractive Package
to the Board• Offer Ten VPLs if the charity pays you
$5,000 and refers donors to you. • Assume that donors will pay you to
upgrade the VPLs into whole plans.• Assume that the ten plans will generate
current gifts of more than the $25,000 that you guarantee to the charity.
• Assume that the ten plans will generate deferred gifts of at least one-fourth the net worth of the ten donors; e.g. 25% of $100 million = $25 million.
© Tim Voorhees, JD, MBA, 1996-2005
30
Target the Over-taxed Donors
• Business owners• Individuals selling appreciated assets• Families with estates larger than $2
million• Athletes, lottery winners, executives,
and others with high income• Singles or wealthy people with no heirs
© Tim Voorhees, JD, MBA, 1996-2005
31
Target the Charitably-inclined
• Board members• Major donors• Former board
members• Prospective donors
© Tim Voorhees, JD, MBA, 1996-2005
32
Communicate the Message to Donors
• Private Viewings with board members
• Presentations to donors during charity events
• One-on-one meetings scheduled by the development officers
• Wealth Counseling retreats
© Tim Voorhees, JD, MBA, 1996-2005
33
Developing Alliances With
Attorneys
Listen to an additional audio clip on slide 43
© Tim Voorhees, JD, MBA, 1996-2005
34
Who Are Attorneys?
• 1 out of every 300 Americans• 75% of lawyers would choose
another career.• Many lawyers are eager to find a
career path that lets them move from Success to Significance
© Tim Voorhees, JD, MBA, 1996-2005
35
Why Do Attorneys Question Everything and Act Superior?
• We were trained that way in law school.
• We are trained to question every fact in a story or every word in a document.
• We are part of a system based on adversarial relationships.
• The job has “winners” and “losers,” making a “team” of advisers a difficult change.
© Tim Voorhees, JD, MBA, 1996-2005
36
What Do Attorneys Know about Advanced Estate Planning?
• Most attorneys stick with areas they know, but most attorneys think they can do estate planning.
• Even experienced estate planners get into habits and ignore the more complex, confusing or risky advanced planning techniques.
• Attorneys do not assume the responsibility of “updating” a client’s estate plan. That is up to the client.
© Tim Voorhees, JD, MBA, 1996-2005
37
Can You Find a Way to Work with Lawyers?
• What share of the case compensation will the attorney want?
• How much control will the attorney want?
• Million Voorhees LLP is unique! We have user-friendly ways to work with financial advisers to plan sophisticated cases.
© Tim Voorhees, JD, MBA, 1996-2005
38
Why Aren’t Attorneys Good Referrers?
• Often they are the last professional picked, leaving no referral to be made.
• Often the attorney gets his referrals from the same profession.
• Liability issues based on historical ideas of “control.”
• No longer protected by the “attorney brotherhood.”
© Tim Voorhees, JD, MBA, 1996-2005
39
What Will The Attorney Think When I Ask For All Estate
Planning Documents?
• They will hate your request and be stressed about it.– Will they find errors?– Will my reputation be harmed?– Could I lose this client?– They might question your motives.– Initial Reaction – Nip it in the bud.
• They will need to comply with Model Rule 1.6. Client consent needed.
© Tim Voorhees, JD, MBA, 1996-2005
40
What Will The Attorney Think When You Are Presenting Your
Proposal With The Client?
• Need to protect the prior estate plan’s perceived quality
• Need to keep the client• Need to appear knowledgeable
– Question everything– Shoot your proposal down– Look for revenue generation
opportunities
© Tim Voorhees, JD, MBA, 1996-2005
41
Keep The Attorney’s Needs In Mind And You Will Have Far Greater Chances Of Success:
• The situation has them on the defensive.• They need to save face with the client.• They need to show their professional
value (past, present and future) to the client.
© Tim Voorhees, JD, MBA, 1996-2005
42
How Can You Make The Attorney Work With You
Rather Than Against You?
• Ease their fears as soon as you can.
• Prepare your client.
© Tim Voorhees, JD, MBA, 1996-2005
43
Best Sources of Referrals• CPAs• Bank Trust Officers• Charitable Development Officers• Attorneys• Insurance agents• M&A brokers• Real Estate brokers
© Tim Voorhees, JD, MBA, 1996-2005
44
Best Practices CD - Session E Resources
81 Charity seminar invitation
82 Contract for use with charity
83 Donor Letter Charity
85 Charity - Post-Meeting Letter 1
86Charity letter to replicate successes experienced
elsewhere
87 Charity Post-Meeting Letter 2
88 Charity Post-Meeting Letter 3
90 Prospecting Letter - Bank
98Prospecting Letter - Network Member to Referral
Source
99 Prospecting Letter - Post CPA meeting
© Tim Voorhees, JD, MBA, 1996-2005
45
Best Practices CD - Session E Resources
102 Prospecting Letter- Low Planning Costs
104 Prospecting Letter - Blueprinting Process
106 Prospecting Letter - Zero Tax Plan
108 Prospecting Letter - Investment Mgt
115 Best Practices Session E
136 Brochure License - Fund Dreams
155 Seminar Room Layout Diagram
160 Rainmaker Meeting Agenda
161 Splitting Cases with Rainmakers
170 Rainmaker Graphics
© Tim Voorhees, JD, MBA, 1996-2005
46
Best Practices CD - Session E Resources
180 Workshop Hosting Benefits
193 Letter to charity board to promote an alliance
194
Financial Checkup Prospecting Letter- Longer Version
208 Prudent Investor Act Fiduciary Response. - Letter
211 Life Insurance Review Letter
368 The 12 Roles of the Planning Team
809 FAQs- Training
810 FAQs- Service Bureau Case Planning
811 FAQs - Marketing
813 FAQs- VFOS Clients
814 FAQs - Allied Advisers
853 Outline of slides to use with charities
© Tim Voorhees, JD, MBA, 1996-2005
47
Best Practices Training
Session AAdapting to Planning Trends and Presenting Valuable Deliverables to Clients
Session B Charging Fees and Using Appropriate Engagement Letters
Session CDelegating Technical Work to a Virtual Back Office and Advanced Sales Department
Session DDeveloping the Value Proposition Letter after a Discovery Session, and Preparing the Family Wealth Statement During/After a Client Retreat
Session EDeveloping Relationships With CPAs, Bankers, Lawyers, Charitable Development Officers, and Other Referral Sources
Session FPresenting Your Materials During Client Seminars, Training Workshops, and One-On-One Presentations
Session GComplying with IRS, SEC, NASD, AICPA, ABA, FPA, and Other Relevant Guidelines
Session HFocusing on Your Unique Talents by Delegating “Administrivia” to a Relationship Manager
Session IConducting a Strategy Session to Integrate Tools Needed to Achieve All of Your Clients' Wealth Optimization Goals
Session JTracking cases and portfolios with web-based project management and CRM systems
© Tim Voorhees, JD, MBA, 1996-2005
48
Phone: 800-447-7090 or 949-453-2900
Fax: 949-453-2916 or 866-447-7090
Email: [email protected]
Brown & StrezaFamily Office ServicesTim Voorhees, JD, MBA