Best Practices in the Financial Services Industry

2011-06-29T04:25:12.028-05:00

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He also says risk tolerance has changed for client...

2011-05-25T23:22:32.684-05:00

He also says risk tolerance has changed for clients and that the industry needs to "get it right this time" if we are to restore trust after the erosion caused by recent Wall Street scandals.

These are really great tips. I also believe that c...

2010-08-19T21:50:47.873-05:00

These are really great tips. I also believe that creating many web assets and getting maximum online presence is essential. Thanks.

Fascinating stuff....This post is very useful to u...

2010-08-11T06:39:41.086-05:00

Fascinating stuff....This post is very useful to us....Its really very appreciated....Thank you so much.....

trading

I love your blog! You will be in our prayers and t...

2010-08-11T01:16:47.391-05:00

I love your blog! You will be in our prayers and thoughts! Nice and informative post on this topic thanks for sharing with us.Thank you!

Business locater service provided by Google is a r...

2010-06-24T14:00:04.796-05:00

Business locater service provided by Google is a really great service. Any one can find your business from the ease of their homes.

Well done video. I really like the idea proposed ...

2010-02-22T18:32:53.196-06:00

Well done video. I really like the idea proposed of utilizing facebook to communicate with clients. Just another means of even more fully serving a community of Ideal Clients. Also, noting your client's facebook (or Linked In) friends & connections and then asking them about each at your next meeting could yield referrals to Potential Ideal Clients.

Wow, amazing stats that bring to life the massive ...

2009-08-21T03:17:12.962-05:00

Wow, amazing stats that bring to life the massive impact of social media.

Wow - I'm sending this to my leadership team A...

2009-08-20T14:08:45.765-05:00

Wow - I'm sending this to my leadership team ASAP - definitely helps me make a case for more headcount as a one-person marketing team (at a software company) cannot scale!

Quoting from the article: "Of course, all th...

2009-08-03T12:18:13.366-05:00

Quoting from the article: "Of course, all the empathy in the world doesn’t make any more money for clients."

Maybe not directly, but maybe indirectly. Possibly the client is able to follow through on plan implementation if they realize where their personal pitfalls are. Maybe they'll stick with their advisor and their plan if they have a firmer grasp on what's really important to them.

Cheryl Krueger
Growing Fortunes Financial Partners
www.GrowingFortunes.com

Here is a link to additional comments from financi...

2009-07-23T18:21:14.116-05:00

Here is a link to additional comments from financial planners and Smart Money readers - including one from long-time financial planner Rick Kahler, author of Conscious Money.

http://www.smartmoney.com/comments/?EntryID=26011&EntryType=SMStory#loginform

In response to the Smart Money article, in which I...

2009-07-23T17:17:58.676-05:00

In response to the Smart Money article, in which I and one of my client-families were featured:

I have set up my own blog to provide an online dialog about not just the issues in the article but about life planning as well. You can join me and other commentators here:

http://dowleyandcompany.blogspot.com

Chris Dowley,RLP, CLU, ChFC, CFS
Dowley & Company, Inc.
Marblehead, MA
cdowley@dowleyandcompany.com

Janet Paskin’s insights and conclusions were inter...

2009-07-21T19:03:55.979-05:00

Janet Paskin’s insights and conclusions were interesting and thought-provoking. There were several things I agreed with including the fact that from the consumer point of view (regardless of the level of trust one might have with their financial adviser), all investors need to be educated and informed prior to making financial- and investment-related decisions. That said, I feel compelled to respond to a few points that truly bothered me.

I have been a professional financial planner for 22 years. During that time, I have counseled hundreds of people and families on their finances. Many of my clients today have been with me for 15 to 20 years. In many cases, our relationship has morphed into friendship. Many times, I serve as a trusted confidante. This in no way alters the quality of my advice, nor the professionalism of our relationship.

To go a step further, I have come to believe that most people have dysfunctional relationships with money. When I, as a financial adviser, can help them uncover those issues, I am able to give them a much better chance of achieving financial success. In no way do I consider this “therapy”, which I am unqualified to perform. Rather it is a clarification process of goal setting and discovering what has and hasn’t worked for them up until now. The truth of the matter is that money issues are oftentimes personal issues; personal issues stir up emotion. So whether or not I want to hear their personal stuff or deal with the emotional aspects, it is a very common occurrence. On the “plus side”, knowing what makes them “tick” helps me do a better job creating a solid roadmap and guiding them along their financial journey. Getting some sort of professional training on how to be a better communicator, counselor and guide (via something like the life planning organizations discussed in the article) simply makes sense – it’s a win/win for both the client and the adviser.

It is a shame that Bernie Madoff and other sham artists frequently “make the news” more often than the ethical, professional financial planners who work on a daily basis to build both a strong relationship and to provide good advice to their clients. Some readers of this article may wrongly surmise that all financial advisers are not to be trusted and that anyone who tries to get close to them is up to no good. What they really need to be taught is how to meticulously pick an adviser who has the appropriate credentials, no prior egregious convictions, and to insist on transparency of the investments that they will be entering into.

I plan to continue helping people reach their financial and lifestyle goals for another 20 years; it is the human connection that keeps me loving my work – and them listening to my advice!

Karen Lee, CFP, CLU, ChFC, MSFS, AEP

Karen Lee and Associates
Planning for Life!

Author of the forthcoming book: It’s Only Money -- So Why Does It Cause So Many Problems?

http://www.karenleeandassociates.com

It's an interesting discussion. Clearly, more...

2009-07-21T11:02:52.660-05:00

It's an interesting discussion. Clearly, more knowledge about clients can be an aid to helping them. But it might be a hindrance as well. Knowing that a client is neurotic about money doesn't really change the best financial solution for them. You might devise some strategies that keep them more comfortable, but it probably won't grow them more money for retirement.

Understanding their fears and concerns might help communicate or educate them (good!), but it's far from certain that that yields tangible results.

I'm just unclear about the benefits of this. Nick Murray says that 80% of financial success is behavioral, and I think that's likely true. But I'm not sure how all this fits together to benefit the client. I'd say it has as much to do with the advisor's personality as the client's.

Dan Danford
www.familyinvestmentcenter.com

Marie, In my two-decades-plus working with client...

2009-07-17T11:48:45.378-05:00

Marie,

In my two-decades-plus working with clients and their money, I've always taken the "personal approach". Without knowing what the money means to clients and their belief system around money and it's meaning in their life, the best practically-developed plans may not be implemented due to some unconscious belief or deeply-rooted pattern which is not evident from the typical planner-client discussions. It's certainly not part of the information required to be gathered under the "Know Your Client" rule.

While there may be some discomfort -- an an aversion -- in financial professionals getting "too personal" in the area of "why you do what you do with your money", there is a way to assuage the discomfort and develop a skill-set appropriate for this very important discussion. We at the Money Coaching Institute have developed a training program for financial professionals in our Cor Process, and it was recently granted 8 hours of CEU by the CFP Board and several other accrediting organizations.

We soon will be offering this training program via webinars, and those who successfully complete the course will have a better understanding of a process which gently and compassionately helps the client recognize and shift unconscious beliefs and patterns which keep them from having a healthy and satisfying relationship with money.

The resulting "financial triage" may result in an extended financial- or life-planning engagement with the client for financial professionals, as well as referrals to and from aligned professionals who have skill sets needed in guiding the client through the next steps for which the financial professional is not trained nor qualified, such as therapists, counselors and coaches. The benefits to the client are immeasurable as they become fully aware and conscious, enabling them to move forward with clarity, confidence, and conviction.

Thanks for bringing the Smart Money article to your follower's attention!

Shags