Here’s what gets you business:
- Knowing things other advisors don’t know
- Providing solutions other advisors don’t provide
- Coming up with ideas that other advisors could never come up with
- Being the only advisor that can put the client in a better position
So what are you doing to accomplish those things? Here’s a quiz right out of the Journal of Financial Service Professionals, on ROTH IRA Distributions. How many of these True/False questions can you answer correctly? (Answers below article)
- A distribution of earnings from a Roth IRA can be taxable to the participant after age 59 ½.
- A distribution of earnings from a Roth IRA paid to a spouse due to the death of the participant, which the spouse then claimed as his/her own Roth IRA, qualifies as an exception and therefore is not subject to taxes or the 10% penalty.
- When a contribution to a Roth IRA is distributed back to the participant, it can never be subject to taxes or the 10% penalty.
- In January 2006, Jane, age 51, made a $5,000 contribution to her Roth IRA for the calendar year 2006. When also made a $5,000 conversion to the same account in 2007, 2008, and 2009. These were all the deposits she made to her Roth IRA. In March of 2012, Jane’s account was worth $23,000, and Jane received a distribution of $20,000 from her Roth IRA to purchase a new car. $10,000 of the distribution would be subject to the 10% penalty but the entire $20,000 would not be subject to income taxes.
- Each contribution to a Roth IRA must remain segregated from an accounting standpoint due t the five-year waiting period.
So what can you do to use your knowledge of Roth IRA distributions? Use it in your elevator speech. Use it in the referral spiel you give your clients to talk about you with. Use it in your newsletters. Use it in your marketing. Set yourself apart from your competition.
1) True 2) True 3) True 4) True 5) False
Source: Journal of Financial Service Professionals, January 2012, “Roth IRA Distributions: HOF Accounting and the Three Layer Gravy, by Jordan P. Gates, MSFS, CFP, ChFC, CFS
Looking to close more clients with assets of $500,000 to $7 million? If so, you must read this paper that shows you why traditional marketing does not work on this demographic… but more importantly shows you what does!
The best part about the solution is that it is relatively inexpensive giving you an astronomical ROI by bringing on large clients at a low-acquisition cost.
If you’d like to receive your free copy of “How to Market to Middle Class Millionaires” just If you’d like to receive the letter I used, just CLICK HERE and we will get it sent right over to you.
The Holy Grail of referrals is the CPA referral. I used this letter to bring in 5 or 6 CPA referrals a year. Now you might think 5 or 6 new clients isn’t much but guess what kind of clients CPAs refer… pretty good size ones. The average case size was well over $250,000… my average compensation was over $10,000 per case so it added more than $50,000 income to my bottom line each year…
Total annual cost? About $130.
Not a bad return on investment, eh? So what did I do?
I simply sent a letter I designed to my new client’s CPAs within 2 days of them becoming my clients… and
another letter to the CPAs once a year in December. That’s it. This letter worked so well because many of the clients I brought on shared accountants. So when these accountants got 4 or 5 letters from me for each of the clients… what did they wonder?
Hey, how come this is the only advisor that does this? And presto, my name pops into their heads the next time they see a situation that needs a financial advisor. I might get only 1 referral from one accountant… 0 from 6 more… 2 from another… 1 from another… but they all added up to a great income stream with virtually no work or cost.
If you’d like to receive the letter I used, just CLICK HERE and we will get it sent right over to you.
What should you do when the cover on Time Magazine says, “Buy Now! The Market is Going Up!”
Run for the exits, right?
Here is a recent headline:
- USA Today - Business section headline, “With Stocks This Hot, Why Worry?”
Here’s a great, simple explanation of this for your clients.
This is an amazing study. I think we all know the importance of being confident but read this study:
A company set up “secret” dummy offices, manned by company personnel. The company then had new salespeople go out on 5 sales call… the last of which would be to the dummy office. As you might expect, being new salespeople most failed to sell their first 4 appointments.
Their 5th sales appointment was with the dummy office. The salespeople had no idea that these were dummy offices. The people managing the dummy office were instructed to make it difficult for the salesperson to sell them… but to always let the salesperson win in the end with a sale.
Here’s the amazing thing! The salespeople were then sent back to the same 4 real prospect offices that rejected the salesperson the first time… and many sold all 4! That is the power of confidence!
(This very factor has allowed many of our advisors to sell huge amounts because they use a script that have been tested in the field successfully – not hundreds of times – but thousands of times. Over a dozen advisors using the script have made over $1 million a year. Now that’s a script worth having! If you’d like to know how to get the script, give a 5Q Specialist a call at 1-877-941-9710)
Sometimes it’s hard to get a client to really understand our point… that’s why the table below is so powerful. If you specialize in either income planning or annuity sales this table helps people understand the importance of working with you very quickly.
Here are 6 psychological research studies that are bound to put more money in your pocket… even though they may be counter-intuitive and most of us have been doing them backwards! Gregory Ciotti of SparringMind put together the research synopsis and you’ll see my two bits on how to use the info to bring in more business:
- Be the Devil’s Advocate—A recent study showed that by playing the Devil’s Advocate and voicing all of your clients objections and concerns for them (instead of waiting for your client to bring them up) increased salespeople’s closing ratio significantly!
- You Have to Give them Step-by Step Instructions—A study by Howard Leventhal gave two different groups brochures about the dangers of tetanus, encouraging people to get vaccinated. One pamphlet did not tell the readers how to take action… the other just gave very rudimentary instructions on how to take action. The people that received even rudimentary instructions were MUCH more likely to take action than those that received no instructions. You have to tell your clients exactly what to do!
- Talk about Your Mistakes—Most of us avoid speaking about our mistakes… especially to our clients, but it ends up doing so is a very good thing! By admitting your faults and how you corrected them… instead of blaming outside forces—you show your clients that you are able to both understand and control future adverse situations.
- Call Your Clients Names—It ends up that labeling your clients is a really good thing. People love to belong to groups, especially when those are groups with special standing. A recent study showed that just labeling people as “politically active” increased the percentage of voters among the group significantly. How can you use this? How about calling your clients, “The Smart 10% of Investors” or “World Dominating Stock Investors”. Either one could be a great way to make a client a long term investor instead of an investor that is calling your office at every market hiccup.
- Immediate Gratification—A multitude of research has shown that people want immediate pleasure and delayed pain. What are you doing to capitalize on this phenomenon? You should be using words like “instantly”, “immediately”, and “over-night”… now I know you can’t talk about returns that way but there are many ways you could refer to service, information and communication with your clients with those words.
- If You Don’t Have an Enemy You are Doing Something Wrong—You need to have a named enemy… it creates a sense of loyalty and “us against them” mentality among your client base. History is filled with examples of how well this works (unfortunately)… but business has many great success stories as well—think of the Miller beer commercials making fun of “unmanly” guys trying to drink Miller. You need to find something that you and your clients can stand against! Weird but true!
It’s things like these 6 psychological principles that I constantly help the advisors I work with to leverage. It’s amazing how a little change in phraseology or twist in your main thrust can accelerate your business almost overnight.
A study of 2,000 recent retirees featured on Journal of Financial Planning’s website reveals a few tidbits you can use to close a lot more business in a hurry… if you pay attention. And pay attention you should with over 75 million people retiring in the next twenty years!
Here are some of the findings and the lessons to be learned:
- Only 16% of retirees have a written retirement plan when they retire
- Only 54% of retirees with over $500,000 net worth have an advisor
- Lesson: You have a wide open playing field if you know how to get in front of retirees.
(Hint: it isn’t by offering to teach them about financial issues)
- Only 20% of retirees are withdrawing systematically from their retirement accounts
- Lesson: All this talk about emphasizing income planning may be out of whack
- More than 75% have no LTC protection
- Lesson: This is obviously the reason that the hybrid (no premium) LTC products were the financial industry’s fastest growing product the last two years.
- Social Security makes up 41% of their retirement income
- Lesson: You are missing a big opportunity if you are not using Social Security heavily in your marketing plan
At 5Q we are having terrific success on all of these fronts. Our no upfront cost marketing is putting advisors in front of an average of 61 new people a month and they are selling a tremendous amount of the hybrid LTC at 6% to 15% commission and Fixed Indexed Annuities.